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