2016 04 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
April 20, 2016
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, April 20, 2016, at 9:03 A.M., in the Council Chamber of the Baytown
City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Mike Wilson
Vice President
Wayne Baldwin
Secretary
Brandon Benoit
Director
Frank McKay
Director
Rick Davis
General Manager
Karen Homer
General Counsel
Leticia Brysch
Assistant Secretary
Vice President Wilson convened the April 20, 2016, Baytown Area Water Authority (BAWA)
Board Regular Meeting with a quorum present at 9:03 A.M., all members were present with the
exception of President Bradley Smith who was absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Board Meeting held on February 17, 2016.
A motion was made by Secretary Wayne Baldwin and seconded by Director Brandon Benoit
approving Resolution No. 2016 -08. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution awarding a construction contract to R &B Group, Inc., for the
Baytown Area Water Authority Plant Water Pump Station Project.
BAWA Board Regular Meeting Minutes
April 20, 2016
Page 2 of 5
General Manager Davis presented the agenda item and stated that Resolution 2016 -08 awards a
construction contract for the Baytown Area Water Authority (BAWA) Plant Water Pump Station
Project, to R &B Group, Inc. He stated that the pump station will include a packaged pumping
system and variable frequency drive control panel that will allow for continuous plant operations.
He stated that the original estimate was approximately $580,000, but by the bids being close in
the proximity of $650,000, the recommendation of such amount is requested for approval.
Director McKay inquired of the reasoning for this pump station. In response to Director McKay's
inquiry, Director of Engineering, Jose Pastrana stated that whenever there's an outing for
an extended period water is being used from the reserved tanks and currently water can't be
produced unless the high service pumps are running, in which the pumps can't run during an
outage. He further stated that this pump station is needed because it will allow for the water to be
made even when the high service pumps are off. Director McKay further inquired if this
capability will be incorporated into the new plant. Mr. Pastrana stated that the new plant will
have the capability of continuously producing water and additionally stated that once this item is
approved, the estimated timeframe for this pump station to be installed is approximately six (6)
months.
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
approving Resolution No. 2016 -08. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2016-08
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AWARDING BAYTOWN AREA WATER
AUTHORITY PLANT WATER PUMP STATION PROJECT TO R &B GROUP,
INC., IN AN AMOUNT OF SIX HUNDRED FIFTY THOUSAND AND
NO /100 DOLLARS ($650,000.00); MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
b. Consider a resolution approving the Baytown Area Water Authority's (BAWA)
Investment Policy and Strategy Statement in accordance with the Public Funds Investment
Act.
Finance Controller, Jeff Miller presented the agenda item and stated that Resolution No. 2016-
09 approves the Baytown Area Water Authority's (BAWA) Investment Policy and Strategy
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April 20, 2016
Page 3 of 5
Statement in accordance with the Public Funds Investment Act, Section 2256.005 (e). He stated
that the changes to the Investment Policy include: 1) Updating the Investment Officers to Carl
Currie and Brent Yowell, and 2) Amending the authorized broker /dealers to Hilltop Securities,
Inc., which was First Southwest and adding the new broker, Bonwick Capital Partners.
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
approving Resolution No. 2016 -09. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2016 -09
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ADOPTING THE BAYTOWN AREA WATER
AUTHORITY'S INVESTMENT POLICY; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
3. REPORTS
a. Receive an update regarding the Baytown Area Water Authority (BAWA) East
Plant Project.
General Manager Davis presented the agenda item and update regarding the BAWA East Plant
Project. He stated that the clearing and grubbing is about 90% done with approximately 30 days
left to be complete. Mr. Pastrana noted that the design plans to build the plant were being
delayed for approval from TCEQ being that the City of Baytown didn't have a contract with their
water supplier and because of such, TCEQ would only start reviewing the plans. Mr. Pastrana
stated that since those rights were secured with the City of Houston, TCEQ is proceeding with
the review of the plans.
Director Baldwin inquired of how much water was agreed upon with Coastal Water Authority
(CWA) for the BAWA plant. Mr. Pastrana stated that the City of Baytown and CWA negotiated
for six (6) million gallons of water. General Manager Davis stated for clarity that the initial
agreement secured six (6) million gallons of water and that the City will try to negotiate another
18 million gallons for future reserve. During further discussion, Director Baldwin inquired if this
was an addendum to the present contract or if there was a separate contract for the east plant. In
response to Director Baldwin's inquiry regarding the addendum, General Counselor, Karen
Homer stated that this would be amendment to the current contract.
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April 20, 2016
Page 4 of 5
b. Receive the Baytown Area Water Authority's Revenues and Expenditures Report
for the Quarter Ending March 31, 2016.
Mr. Miller presented the Baytown Area Water Authority's Revenues and Expenditures Report for
the Quarter Ending March 31, 2016. He stated that the revenues were overall 51 % of budget and
as it relates to expenditures that payroll was at an expected 41% while maintenance was a little
over at 60 %.
C. Receive the Baytown Area Water Authority's Quarterly Investment Report for the
Quarter Ending March 31, 2016.
Mr. Miller presented the agenda item and stated that the interest earnings were a little over
$13,000, which were also up approximately 13 basis points more than the previous quarter.
Additionally, General Manager Davis stated that the earnings came in more than what was
expected with everything pretty much being on track.
During further discussion, Director McKay inquired if the maintenance percentage would
increase once the east plant is put in and if the previously approved agenda item regarding the
pump station was budgeted for this year. In response to Director McKay's inquiries, Mr. Miller
stated that the percentage will increase and that the pump station was budgeted for this year.
Additionally, General Manager Davis stated that capital general expenditures has a trend of a
lump sum of purchases being at one time or another rather than the typical inclined trend,
but anticipate them to be in line with budget projections by the end of the budget year. He also
stated that the agenda item regarding the pump station will be on the May 26th agenda for
counsels' approval.
4. MANAGER'S REPORT
a. Reminder that the next Baytown Area Water Authority meeting is scheduled for
Wednesday, May 18, 2016, at 9:00 A.M. in the City Council Chamber, 2401 Market Street,
Baytown, Texas 77520.
General Manager Davis presented the agenda item and stated that the next Baytown Area Water
Authority meeting is scheduled for Wednesday, May 18, 2016, at 9:00 A.M. in the City Council
Chamber, 2401 Market Street, Baytown, Texas 77520.
5. ADJOURN
A motion was made by Secretary Wayne Baldwin and seconded by Director Brandon Benoit
approving to adjourn the April 20, 2016, BAWA Board Regular Meeting. The vote was as
follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
BAWA Board Regular Meeting Minutes
April 20, 2016
Page 5 of 5
Other: President Brenda Bradley Smith (Absent)
Approved
With there being no further business to discuss, Vice President Wilson adjourned the April 20,
2016, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:17 A.M.
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City of Baytown