2016 10 19 BAWA Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
October 19, 2016
The Board of Directors of the Baytown Area Water Authority(BAWA) met in a Regular
Meeting on Wednesday, October 19, 2016, at 9:05 A.M., in the Council Chamber of the
Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley Smith President
Mike Wilson Vice President
Brandon Benoit Director
Rick Davis General Manager
Karen Horner General Counsel
Leticia Brysch Assistant Secretary
President Bradley Smith convened the October 19, 2016, Baytown Area Water Authority
(BAWA) Board Regular Meeting with a quorum present at 9:05 A.M., all members were present
with the exception of Directors Wayne Baldwin and Frank McKay who were both absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Board Meeting held on August 17, 2016.
A motion was made by Vice President Mike Wilson and seconded by Director Brandon Benoit
approving the August 17, 2016, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Vice President
Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent), Director Frank McKay III (Absent)
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing the sole source purchase of a chain and flight
from Evoqua Water Technologies LLC, for the Fritz Lanham Surface water treatment
plant.
BAWA Board Regular Meeting Minutes
October 19,2016
Page 2 of 5
BAWA Superintendent, Zachary Lillie presented the agenda item and stated that Resolution No.
2016-15 authorizes the sole source purchase of a chain and flight from Evoqua Water
Technologies LLC, for the Fritz Lanham Surface Water Treatment Plant, in the amount of
$73,738.00, as these parts are necessary to refurbish sedimentation basin 3 at the treatment
plant. He stated that the chain and flight system removes the sludge from the bottom of the
sedimentation basin and that the existing chain and flight is over 15 years old and beyond its
useful life expectancy. Additionally, he provided to the board a sole source parts list and some
pictures of worn out parts.
A motion was made by Director Brandon Benoit and seconded by Vice President Mike Wilson
approving Resolution No. 2016-15. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Vice President
Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent), Director Frank McKay III (Absent)
Approved
RESOLUTION NO. 2016-15
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING PAYMENT IN THE AMOUNT
OF SEVENTY-THREE THOUSAND SEVEN HUNDRED THIRTY-EIGHT
AND NO/100 DOLLARS ($73,738.00) TO EVOQUA WATER
TECHNOLOGIES LLC, FOR THE PURCHASE OF A CHAIN AND FLIGHT
TO REMOVE THE SLUDGE FROM THE BOTTOM OF THE
SEDIMENTATION BASIN AT THE BAYTOWN AREA WATER
AUTHORITY TREATMENT PLANT; MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
3. BUSINESS ITEMS
a. Consider combining certain Baytown Area Water Authority (BAWA) projects that
are budgeted for fiscal year 2017, including (i) Replacement of Bulk Chemical Tanks
Project, (ii) Liquid Ammonia Solution Addition Project, (iii) Lime System Addition
Project, and(iv) Post Filtration Chemicals Project.
Mr. Lillie presented the agenda item and stated that this item allows the Baytown Area Water
Authority (the "Board") to consider combining the Replacement of Bulk Chemical Tanks
Project, the Liquid Ammonia Solution Addition Project, the Lime System Addition Project, and
the Post Filtration Chemicals g
Project that's budgeted for fiscal year 2016-2017, which results in
cost savings by consolidating the four(4)projects into one.
BAWA Board Regular Meeting Minutes
October 19,2016
Page 3 of 5
Director Wilson inquired if there was a reason not to combine the projects and why the board
would have to approve the combining of the projects. Mr. Lillie responded and stated that there's
a cost savings by combining the projects together and General Manager Davis stated that the
reason for bringing the combination of the projects for approval is to make the board aware
of elements involved in the design contract prior to consideration.
President Bradley Smith inquired if an RFQ for professional services will be issued. In response
to President Bradley Smith's inquiry, Director of Engineering, Jose Pastrana stated that they will
follow the standards established by the A&E Committee and deal with the rules as they exist to
date, and if any changes as there are some being considered, those changes will be implemented
then. Mr. Pastrana stated that the RFQ is typically used for larger projects and for smaller
projects selected qualified consultants provide presentations before the BAWA Board for
their input on a selection of their choice.
Director Benoit inquired if there were different providers that we would gain or lose by
combining or not combining. Mr. Pastrana stated that he believe there wouldn't be a gain or lost
being that these are in the same treatment process of the plant and because design continuity is
important, one designer completing the entire project appears to be more logical and it provides
costs savings.
A motion was made by Vice President Mike Wilson and seconded by Director Brandon Benoit
approving to combine certain BAWA projects budgeted for FY2017. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Vice President
Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent), Director Frank McKay III (Absent)
Approved
4. REPORTS
a. Receive an update regarding the Baytown Area Water Authority (BAWA) East
Plant Project.
General Manager Davis presented the update regarding the Baytown Area Water Authority
(BAWA) East Plant Project and stated that the clearing and grubbing was complete and will be
closed out by council on October 27th. He further stated that staff is still waiting on comments
from TCEQ.
During further discussion, Mr. Pastrana stated that some of the issues pending on this project
include the access road agreement with NRG and the coastal water authority easement
agreement for the intake point. He stated that NRG can't locate their agreement with UPRR;
therefore, that agreement can't be modified to be able to use their access road. He stated that staff
BAWA Board Regular Meeting Minutes
October 19,2016
Page 4 of 5
had the approval from TCEQ to take water from the CWA canal, but that the final approval from
CWA has not been received as of yet and further noted that the CWA requested that the City
relocate the intake point. Mr. Pastrana stated that staff will respond to the request and state that
the City requests to keep the existing location. He stated that staff is waiting for the approval for
the variances originally submitted and that the geotechnical investigation for the final design has
begun. He stated that staff has given up on the idea of having an access road through UPRR and
instead will use a clearing location through NRG. He stated that unless there can be an
agreement with NRG and UPRR there is hardly anything to modify; therefore,plans are
being submitted for modification of the existing crossing with a requested approval from UPRR
of such, and then enter into an agreement directly with NRG for joint use. Director Wilson
inquired if there were any issues that would cause the modification of plans for access to
be unsuccessful. General Manager Davis stated that staff does not anticipate any issues, but the
plan is to have the design consultant provide more updates at the next meeting. Additionally,
Mr. Pastrana stated that staff is considering to put in an access road from the southern portion of
the plant to highway 99, whereas there's an existing easement already for access and pipeline
crossing, in which staff is looking at the possibility of using this as the access road for
construction just in case the UPRR crossing becomes unmanageable.
President Bradley Smith requested that agenda items 4.b. and 4.c. be considered together.
b. Receive the Baytown Area Water Authority's Revenues and Expenditures Report
for the Quarter Ending September 30, 2016.
c. Receive the Baytown Area Water Authority's Quarterly Investment Report for the
Quarter Ending September 30,2016.
Finance Director, Wade Nickerson presented the agenda items and noted that the numbers
presented are preliminary and unaudited. He stated that the water sales received more revenue
than anticipated and came in at 106% of budget. He stated that the interest income also came in
more than anticipated and the operational expenditures came in at 96% with savings in the
majority of the categories. As it relates to the debt service, Mr. Nickerson stated that the
revenues basically transfers for operations and that the expenditures came in about 3/4 of what
was budgeted because of some delays in moving forward with the BAWA East Plant Project.
With regards to the Capital Improvement funds, he stated that the revenues also transfers for
operations and that because these projects are ongoing, currently there's a substantial amount of
funds not utilized.
During further discussion, Mr. Nickerson stated that there was $19,381,478 in the portfolio with
an ending rate of.5228% and interest earnings of$19,380.
5. MANAGER'S REPORT
a. Reminder that the next Baytown Area Water Authority meeting is scheduled for
Wednesday, November 16, 2016, at 9:00 A.M. in the City Council Chamber, 2401 Market
Street, Baytown,Texas 77520.
BAWA Board Regular Meeting Minutes
October 19,2016
Page 5 of 5
General Manager Davis presented the agenda item and stated that the next Baytown Area Water
Authority meeting is scheduled for Wednesday, November 16, 2016, at 9:00 A.M. in the City
Council Chamber, 2401 Market Street, Baytown, Texas 77520.
Director Benoit stated that he would not be in attendance at the next scheduled meeting.
6. ADJOURN
With there being no further business to discuss, President Bradley Smith adjourned the October
19, 2016, Baytown Area Water Authority(BAWA) Board Regular Meeting at 9:21 A.M.
I / I, ,
\\\\\illllllta�,.•�,,
Leticia Brysch, Assistant Se• = P q
City of Baytown
r{�t�hNlf 111111111\/\\,\