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2012 10 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY October 17, 2012 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, October 17, 2012, at 9:03 A.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brenda Bradley Smith Wayne Baldwin Mike Wilson Ron Bottoms Karen Horner Leticia Brysch President Secretary Director Deputy General Manager Assistant General Counsel Assistant Secretary President Bradley Smith convened the October 17, 2012, 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 Directors Mundinger and Benoit who were absent. 1. MINUTES a. Consider Approving the Minutes of the Baytown Area Water Authority Board Regular Meeting for August 15, 2012 - Assistant Secretary. A motion was made by Secretary Wayne Baldwin and seconded by Director Mike Wilson approving the minutes of the August 15, 2012, BAWA Regular Meeting as submitted. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Director Brandon Benoit (Absent), Vice - President Dan Mundinger (Absent) Approved BAWA Regular Meeting Minutes October 17, 2012 Page 2 of 7 2. PROPOSED RESOLUTIONS a. Consider Authorizing the General Manager to Negotiate and Enter Into the First Amendment to the Professional Services Agreement for BAWA Water Treatment Plant Improvement Project- Engineering. Deputy General Manager Bottoms presented that item and stated that Resolution No. 2012 -09 authorizes the General Manager to negotiate and enter into the First Amendment to the Professional Service Agreement with Malcolm Pirnie for the BAWA Water Treatment Plant Improvement Project. Deputy General Manager Bottoms asked the City Engineer, Jose Pastrana to present opening comments regarding this item. Mr. Pastrana stated that over the last two years, BAWA has been analyzing and planning for improvements to the plant as a whole. Malcolm Pirnie was originally hired to do a complete analysis, a preliminary assessment, and to establish improvement priorities. Mr. Pastrana stated that the two of the top rated priorities executed were (1) the power distribution improvements and (2) the emergency generators systems. He further stated that the next steps in the list of priorities are (1) the replacement of the high service pump, (2) structural repairs to the facility, and (3) improvements to the filtration system. Mr. Pastrana stated that the request was to modify the agreement and continue with the design and go beyond the preliminary. Mr. Pastrana stated that one of the "mag" drives at the BAWA Plant had failed, and its replacement would take up to 6 months for delivery and design. However, he also stated that replacement will be a temporary fix, as it is not considered the ultimate design, which calls for variable frequency drives to replace the "mag" drive. Mr. Pastrana stated that this initial agreement with Malcolm Pirnie is for the design variable frequency system, some preliminary design for the housing of the pumps in order to not have them exposed to the atmosphere, and some reconfiguration of the electrical system that would eventually be required. He further stated that the first step in this process was to repair the pump that is currently down, and undertake some preliminary designs for the pump system's ultimate design. Deputy General Manager Bottoms stated that the failure at the BAWA Plant was critical and had brought to light the need to replace the high service pumps. He recommended that the agenda be taken out of order to consider allowing Mr. Steve Fife to explain what happened with the pump failure, in order to give the Board perspective of this item's importance. President Bradley Smith stated that the agenda would be taken out of order at this time to allow for the Board to receive a report from Mr. Steve Fife regarding the high service pump electrical failure, item 5.a. under the Manager's Report. BAWA Regular Meeting Minutes October 17, 2012 Page 3 of 7 Mr. Fife stated that on September 26, 2012, staff decided, as part of their normal practice, to exercise a new generator system check, and when doing so discovered that there were some problems with the old high service pump station electrical gear. He stated that there was an un- operable power supply (ups), which provides control power to one of the pumps that, makes the contact move in and out had failed. He further stated that staff was unable to shut the pump off, which resulted in having to open the main breaker to remove power and allow staff to work on it. Mr. Fife stated that during their troubleshooting process, staff realized that one of the transformers and the relay had burned out because they had not fully disengaged or engaged with the bust, which provides power. Mr. Fife stated that the recommendation was to take the switch gear from the old transfer and move it to the high service pump, since the contactors are identical. During the process of this transfer, recommendations for a backup plan were being discussed with one of the recommendations being to run the pumps directly off the transformer. Mr. Fife stated that running the pumps directly off the transformer would work, but was not a good idea because there is no protection for it. Mr. Fife stated that as a result of this situation, two temporary contactors were rented that could be used to run the pumps without having to go through the main, more staff was provided to monitor the pressure, in order to stay within the designated perimeters, and an open and close switch was put on the main breaker to eliminate future problems. He further stated that staff worked all weekend to resolve and address needed changes to the mechanism in order to avoid future issues, which included putting in place 120 volts transformers to each of the contactors, so that the pumps could come off of being directly connected to the main power. Director Baldwin inquired of the timeframe from what's now in place until the high service pumps are eventually installed. Mr. Fife stated that the timeframe would be about 18 -24 months although they're going to try and get two of the UFD's ahead of time on a temporary basis. Mr. Fife stated that the new electrical building that is in place would house all of the new switch gears, which will protect them from outside environmental elements. Director Wilson inquired if this situation has happened before. Mr. Fife stated that in his 22 years of service in this industry, he has not seen this happened. Mr. Fife also stated that to the best of his knowledge, the BAWA plant has had some issues with the switch gear, but not to this extent. Deputy City Manager Bottoms stated that the proposed improvement needed to be made to the Plant at some point; however, he believes that the critical nature of the high service pump failure made them more urgent and recommended approval if the item before them. A motion was made by Director Mike Wilson and seconded by Secretary Wayne Baldwin approving Resolution No. 2012 -09. The vote was as follows: BAWA Regular Meeting Minutes October 17, 2012 Page 4 of 7 Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Director Brandon Benoit (Absent), Vice - President Dan Mundinger Absent) Approved RESOLUTION NO. 2012-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE AND ENTER INTO THE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH MALCOLM PIRNIE, INC., FOR THE PRELIMINARY DESIGN OF THE WATER TREATMENT PLANT IMPROVEMENT PROJECT SUBJECT TO THE APPROVAL OF THE CITY COUNCIL OF THE CITY OF BAYTOWN; AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN AN AMOUNT NOT TO EXCEED ONE HUNDRED THIRTY -TWO THOUSAND FIVE HUNDRED FIFTY -SEVEN AND NO /100 DOLLARS ($132,557.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider Awarding the Annual Lagoon Sludge Removal Contract - Public Works. Deputy General Manager Bottoms presented the agenda item and stated that Resolution No. 2012 -10 awards the Lagoon Sludge Removal Contract to Ezell Construction, L.L.C., in the amount of $69,217. He stated that the bids were opened Monday, September 24, 2012, at 2:00 P.M. with Ezell Construction, L.L.C., having the lowest bid in which the amount was more than what was normally paid but what was in the budget. Director Baldwin inquired if the amount also included the disposal. Mr. Fife stated that the sludge would be removed from the lagoon and placed on the property thereof. Additionally, Mr. Fife stated that although the bid is higher than previous years, the contractor is being required to remove more vegetation, and is on an as needed basis. A motion was made by Director Mike Wilson and seconded by Secretary Wayne Baldwin approving Resolution No. 2012 -10. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director Mike Wilson BAWA Regular Meeting Minutes October 17, 2012 Page 5 of 7 Nays: None Other: Director Brandon Benoit (Absent), Vice - President Dan Mundinger (Absent) Approved RESOLUTION NO. 2012-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF EZELL CONSTRUCTION, L.L.C., FOR THE LAGOON SLUDGE REMOVAL CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF SIXTY -NINE THOUSAND TWO HUNDRED SEVENTEEN AND NO /100 DOLLARS ($69,217.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. C. Consider Establishing a Purchasing Procedure for the Baytown Area Water Authority and Delegating Contracting Authority to the General Manager for Expenditures of $50,000 or less - Administration. Assistant General Counsel, Karen Horner presented the agenda item and stated that Resolution No. 2012 -11 establishes a purchasing procedure for the Baytown Area Water Authority ( "BAWA ") and delegates contracting authority to the General Manager for expenditures of $50,000 or less. For construction, equipment, materials and machinery contracts, the competitive bidding requirements contained in Section 49.273 of the Texas Water Code and those utilized by BAWA are as follows: < $25,000 No competitive bidding requirements. < $50,000 Solicit written competitive bids on uniform written specifications from at least three bidders. > $50,000 Solicit written sealed competitive bids on uniform written specifications by advertising the letting of the contract, including the time, and place of the bid opening, in a newspaper circulated in each county of the letting of the contract at least 21 days before the date of the opening of such bids. Solicit written competitive bids on uniform written specifications from at least three bidders. Solicit written competitive bids on uniform written specifications from at least three bidders. Solicit written sealed competitive bids on uniform written specifications by advertising the letting of the contract, including the time, and place of the bid opening, in a newspaper circulated in each county of the letting of the contract at least 21 days before the date of the opening of such bids. BAWA Regular Meeting Minutes October 17, 2012 Page 6 of 7 Director Baldwin inquired if there was a way of getting feedback on what actions were taken at any point and time or getting history after the fact. Deputy General Manager Ron Bottoms stated that the information could be included in the quarterly report. A motion was made by Secretary Wayne Baldwin and seconded by Director Mike Wilson approving Resolution No. 2012 -11. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Director Brandon Benoit (Absent), Vice - President Dan Mundinger (Absent) Approved RESOLUTION NO. 2012-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ESTABLISHING A PURCHASING PROCEDURE FOR THE BAYTOWN AREA WATER AUTHORITY; DELEGATING CONTRACTING AUTHORITY TO THE GENERAL MANAGER FOR EXPENDITURES OF FIFTY THOUSAND AND NO /100 DOLLARS ($50,000.00) AND LESS; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. REPORTS a. Receive the BAWA Revenues and Expenditures for the Quarter Ending September 30, 2012 - Finance. Finance Director, Louise Richman presented the update on the Baytown Area Water Authority's revenues and expenditures for the Quarter ending September 30, 2012 and stated that the revenues were up $1.1 million. She stated that the supplies and the chemical expenditures were over budget due to the increased sales of purchasing water. Ms. Richman stated that a proposal was being made to have an amendment, which would increase the revenues and offset increase the budget line for the expenditures to bring the budget to a positive amount. She stated the net amount would be zero and also stated that because the amendment requires a public hearing would be proposed at the November meeting. Ms. Richman stated that the debt service came in about $100,000 under budget and was due to the financing of several bonds. BAWA Regular Meeting Minutes October 17, 2012 Page 7 of 7 b. Receive BAWA Quarterly Investment Report for the Quarter Ending September 30, 2012 - Finance. Ms. Richman presented the Baytown Area Water Authority Quarterly Investment Report for the Quarter Ending September 30, 2012 and stated that the interest rate increased to .15 and was due to the diversification of the investments leaving an ending balance of a little over $9 million. 4. BUSINESS ITEMS a. Consider Setting the Date, Time and Location of the Next BAWA Meeting - Assistant Secretary. President Bradley Smith presented the agenda item and stated that the originally scheduled meeting was set for Wednesday, November 21, 2012, but was changed to Wednesday, November 28, 2012 at 9:00 A.M. in the Council Chamber. A motion was made by Secretary Wayne Baldwin and seconded by Director Mike Wilson approving the next BAWA meeting date of Wednesday, November 28, 2012. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Director Brandon Benoit (Absent), Vice - President Dan Mundinger (Absent) Approved 5. MANAGER'S REPORT a. Present Update on High Service Pump Electrical Failure at BAWA Plant - Public Works. 6. ADJOURN With there being no further business to discuss, President Bradley Smith adjourned the October 17, 2012, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:31 A-.M. eticia Brysch, Assistan ecretary City of Baytown