2018 04 18 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
April 18, 2018
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, April 18, 2018, at 9:01 A.M., in the Conference Room of the Baytown
Area Water Authority Facility, 7425 Thompson Road, Baytown, Texas with the following in
attendance:
Brenda Bradley Smith
President
Frank McKay III
Secretary
Harland Forrest Jr.
Director
Brandon Benoit
Director
Rick Davis
General Manager
Karen Horner
General Counsel
Alisha Segovia
Deputy Assistant Secretary
President Bradley Smith convened the April 18, 2018, BAWA Board Regular Meeting with a
quorum present at 9:01 A.M., all members were present with the exception of Vice President
Mike Wilson who was absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on March 21, 2018.
A motion was made by Director Brandon Benoit and seconded by Director Harland Forrest, Jr.
approving the March 21, 2018, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays: None
Other: Vice President Mike Wilson (Absent)
Approved
2. PROPOSED RESOLUTION
a. Consider a resolution amending the Baytown Area Water Authority Fiscal Year
2017-2018 Capital Improvement Program Fund (CIPF) budget in order to increase the
budget for the BAWA East Plant.
Finance Director Wade Nickerson presented the agenda item and stated that Resolution No.
2018-13 approves a budget amendment in the amount of $2,500,000 to move funds out of the
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fund balance account, so that they have the availability to use the funds for costs associated with
(i) the Cost -Share Agreement with TGS Cedar Port Partners, L.P., for the roadway and (ii) the
Purchase and Sale Agreement for Mitigation Credits with Gin City Restoration, LLC, and
Mitigation Solutions USA, LLC. Mr. Nickerson further noted that these expenditures were
planned for Fiscal Year 2018-2019, but will be spent, in part, in Fiscal Year 2017-2018. Mr.
Nickerson noted that approval of this item is necessary in order to move forward with these
contracts and the BAWA East Plant Project.
A motion was made by Director Harland Forrest, Jr. and seconded by Secretary Frank McKay III
approving Resolution No. 2018-13, regarding agenda item 2.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays: None
Other: Vice President Mike Wilson (Absent)
Approved
RESOLUTION NO. 2018-13
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER
AUTHORITY AMENDING THE BAYTOWN AREA WATER AUTHORITY'S FISCAL
YEAR 2017-2018 CAPITAL IMPROVEMENT FUND BUDGET IN ORDER TO INCREASE
THE BUDGET FOR THE BAWA EAST PLANT BY REPROGRAMMING TWO MILLION
FIVE HUNDRED THOUSAND AND NO, 100 DOLLARS ($2,500,000.00) FROM FUND
BALANCE TO SUCH PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
b. Consider a resolution authorizing a Purchase and Sale Agreement for Mitigation
Credits with Gin City Restoration, LLC, and Mitigation Solutions USA, LLC, for
mitigation credits associated with the 6 MGD Surface Water Treatment Plant Project.
Director of Engineering Jose Pastrana presented the agenda item and stated that the project site
for the MGD Surface Water Treatment Plant Project (the "Project") includes a little over
seventeen acres of wetlands area that will be disturbed in the building process. The mitigation
credits purchased from Gin City Restoration, LLC and Mitigation Solutions USA, LLC, in the
amount of $1,231,200, would be used to offset the impact of the wetlands area and that if this
item is approved it would go before Council for consideration and action. Deputy City Manager,
Ron Bottoms further noted that this item is related to the item that the Board just approved under
agenda item 2.a.
Secretary McKay noted that in the past there had been discussions of the possibility to using
other properties to offset the wetlands requirement. Mr. Bottoms noted that the Nature Center
was the property in question, and while staff had looked into this option, it was not feasible. Mr.
Bottoms also noted that it can take years to generate these types of credits and there might not be
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April 18, 2018
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an opportunity to purchase them at a later date. Mr. Pastrana noted that this purchase would
satisfy the mitigation credit needs for the entire build -out of the BAWA East Plant and
recommended approval.
A motion was made by Secretary Frank McKay III, and seconded by Director Brandon Benoit
approving Resolution No. 2018-14, regarding agenda item 2.b. The vote was as follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays: None
Other: Vice President Mike Wilson (Absent)
Approved
RESOLUTION NO. 2018-14
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER
AUTHORITY AUTHORIZING THE GENERAL MANAGER TO EXECUTE A PURCHASE
AND SALE AGREEMENT FOR MITIGATION CREDITS WITH GIN CITY
RESTORATION, LLC, AND MITIGATION SOLUTIONS USA, LLC, FOR MITIGATION
CREDITS ASSOCIATED WITH THE BAYTOWN AREA WATER AUTHORITY 6 MGD
SURFACE WATER TREATMENT PLANT PROJECT; AUTHORIZING PAYMENT IN AN
AMOUNT NOT TO EXCEED ONE MILLION TWO HUNDRED THIRTY-ONE THOUSAND
TWO HUNDRED AND NO/100 DOLLARS ($1,231,200.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
C. Consider a resolution approving the preliminary official statement and notice of sale
and appoints the paying agent/registrar for BAWA's issuance of Water Supply Contract
Revenue and Refunding Bonds, Series 2018.
Mr. Nickerson presented the item and stated that Resolution No. 2018-15 approves the
preliminary official statement, which would allow the notice of sale of the bond to be made and
appoints the paying agent/registrar for BAWA's issuance of Water Supply Contract Revenue and
Refunding Bonds, Series 2018, in the aggregate principal amount not to exceed $30,000,000 for
the purposes of (i) acquiring and constructing certain authorized equipment and improvements
for the BAWA East Project and (ii) paying the costs of issuing the bonds. Mr. Wade Nickerson
further noted that the numbers of the official statement are preliminary and are subject to change
as the sale date approaches.
A motion was made by Director Brandon Benoit and seconded by Director Harland Forrest, Jr.
approving Resolution No. 2018-15, regarding agenda item 2.c. The vote was as follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays- None
Other Vice President Mike Wilson (Absent)
Approved
RESOLUTION NO. 2018-15
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RESOLUTION BY THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER
AUTHORITY APPROVING THE PRELIMINARY OFFICIAL STATEMENT AND NOTICE
OF SALE; APPOINTING THE PAYING AGENT/REGISTRAR; APPROVING OTHER
MATTERS INCIDENTAL THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
d. Consider a resolution authorizing a sole -source purchase from with Purafd Inc., for
material replacement services for the Baytown Area Water Authority's emergency gas
scrubber system.
BAWA Superintendent Sterling Beaver presented the item and stated that Resolution No. 2018-
16 authorizes payment by the City of Baytown in the amount of $102,846 to Purafil Inc., for the
sole -source purchase of material replacement services needed to replace the gas scrubber for the
chlorine system at the BAWA Plant, as the current one is past its useful life. He further noted
that currently the system is working only about 40%, so in the event that there was a major leak
at the Plant, the scrubber could not hold or absorb the required amount of chlorine gas to protect
the citizens from being exposed to this very toxic gas, which has the potential of being fatal.
Mr. Beaver noted that this system is inspected on a yearly basis, and while last year there was a
decline in its performance, this year the decline was sufficient enough to cause staff concern.
The requested system is a safety measure for staff and the public, so staff moved quickly to
replace it and recommends approval of the item.
A motion was made by Secretary Frank McKay III and seconded by Director Harland Forrest, Jr.
approving Resolution No. 2018-16, regarding agenda item 2.d. The vote was as follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays: None
Other: Vice President Mike Wilson (Absent)
Approved
RESOLUTION NO. 2018-16
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A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER
AUTHORITY AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN IN AN AMOLJNT
NOT TO EXCEED ONE HUNDRED TWO THOUSAND EIGHT HUNDRED FORTY-SIX
AND NO'100 DOLLARS ($102,846.00) TO PURAFIL INC., FOR THE SOLE -SOURCE
PURCHASE OF MATERIAL REPLACEMENT SERVICES FOR THE BAYTOWN AREA
WATER AUTHORITY'S EMERGENCY GAS SCRUBBER SYSTEM; MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
e. Consider a resolution authorizing the sole -source purchase of a replacement chain
and flight sludge collection system from W WaterTech Services, Inc., for the Fritz Lanham
Surface Water Treatment Plant and installation such system by W Water Technology, Inc.
Mr. Beaver presented the item and stated that Resolution No. 2018-17 approves the fourth and
final replacement of the chain of flight, which if the Board remembers, staff has replaced one a
year for the last three years as a part of the Plant's expansion in 2003. Mr. Beaver further noted
that the is a different vendor from what was used on the last three chain of flights.
General Counsel Karen Horner clarified that originally the item was presented for both the
purchase and for the installation of the item; however, staff is still working on the installation
portion of the contract. Therefore, at this point, staff is pulling out the installation and is just
approving the sole -source purchase.
A motion was made by Director Brandon Benoit and seconded by Director Harland Forrest, Jr.
approving the amended Resolution No. 2018-17 as noted by General Counsel Karen Horner,
regarding agenda item 2.e. The vote was as follows:
Ayes: President Brenda Bradley Smith, Secretary Frank McKay III, Director
Harland Forrest Jr. and Director Brandon Benoit
Nays: None
Other: Vice President Mike Wilson (Absent)
Approved
RESOLUTION NO. 2018-17
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER
AUTHORITY AUTHORIZING PAYMENT IN THE AMOUNT OF ONE HUNDRED SIX
THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($106,500.00) TO W WATERTECH
SERVICES, INC., FOR THE PURCHASE OF A CHAIN AND FLIGHT SLUDGE
COLLECTION SYSTEM TO REMOVE THE SLUDGE FROM THE BOTTOM OF A
SEDIMENTATION BASIN AT THE FRITZ LANHAM SURFACE WATER TREATMENT
PLANT; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
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3. REPORTS
a. Present an update regarding the current BAWA Capital Improvement Projects.
Mr. Beavers presented the item and gave the Board an update regarding the BAWA Capital
Improvement Projects (CIP). He noted that in regards to the high service parts, this project is
probably scheduled for completion by the end of the year. He noted that so far, the new T which
allows staff to move down and tap off or build a new header for a new pump station has been
installed. So far, four taps have been performed on a line. Mr. Beavers showed the Board
pictures of said line and identified the cut outs, the new taps and new valves and noted that he
would point out the location during the plant tour at the end of the meeting. Mr. Beavers next
talked about the filter gallery. He noted that some weeks there were some safety issues down in
the filter gallery that staff wanted to address in order to ensure that nobody is hurt. Mr. Beavers
showed pictures of a staircase that was rotten towards the bottom due to some leaks that resulted
in that bottom stair giving away altogether. So, this has been replaced and the bottom step is now
concrete, so that in the event of it being exposed to large amount of water it will be fine.
Mr. Beavers also noted that there were some of the leaks on the roof of the filter gallery, which
was caused by a filter that had reached its useful life, had been degrading to the point where
leaks resulted.
Mr. Beavers stated that staff has made some great improvements and updates to the Plant that
include a new exterior paint; updates to the lobby; and the hallway, which leads from the lab, the
restrooms and the break room have all been renovated.
Mr. Beavers noted that in regards to ground source tanks, they are scheduled to have an 18
month lead time on the repair portion of the job. The contractor estimated that it is going to take
about six (6) months to rehabilitate each one, so they will need to be done one at a time in order
to continue operations uninterrupted, which give a total time frame for this project and about two
(2) years.
KIT Professionals, the consultant for the chemical feed improvements project gave an overview
of their progress. It was noted that this project is in the early stages of the design phase, but will
include items; such as: the replacement of the existing gas ammonia system with a liquid
ammonia system in order to rid of the hazard of having a compressed gas, the replacement of
many of the pumps, some of the piping and the storage tanks in the Plant that have reached their
limit of their service life, the design of the addition of a lime system at the head of the plant, and
other miscellaneous improvements associated with the replacement of valves, the sledge, and the
piping gallery.
b. Receive the Baytown Area Water Authority's Quarterly Financial and Investment
Reports for the Quarter Ending March 31, 2018.
Mr. Nickerson presented the item and stated that the quarterly reports BAWA revenues are right
by 50%, which is right where staff expects them to be this time of the year. He noted that
revenues will probably come in slightly ahead of budget if the area continues to go without a lot
of rain.
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Mr. Nickerson noted that there is not a lot to report on expenditures, and stated that once again
they right at 44° o for the budget. He noted that in the maintenance line item that is just under
60%, which is a bit high for this time of year; however, Mr. Nickerson noted maintenance issues
do not occur in a linear fashion and staff has dealt with some unplanned issues; such as pump
and brick and mortar replacement at the Plant.
Mr. Nickerson stated that in the Capital Improvement Project (CIP) portion of the budget,
BAWA has about 11.2 million dollars that is made up of some engineering services for the
BAWA East Plant Project, the high service pumps, all of the filtration and chemical feed stuff,
and other such items. Mr. Nickerson stated that to date, about 1.3 million dollars have been
spent and an estimated 6.4-6.5 million dollars have been encumbered, which leaves about 7.724
million dollars in that line item.
Lastly, Mr. Nickerson presented the investment report and noted that BAWA has $23,495,000
dollars in the bank that is being invested at about 1.655% with earnings for the quarter at
$83,255.64.
4. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, May
16, 2018, at 9:00 a.m., in the Council Chamber located at City Hall, 2401 Market Street,
Baytown, Texas 77520.
General Manager Rick Davis stated that the next BAWA meeting is scheduled for Wednesday,
May 16, 2018, at 9:00 A.M. in the City Council Chamber, 2401 Market Street, Baytown, Texas
77520.
Deputy General Manager Ron Bottoms presented drone video footage of the BAWA East Plant
project and noted that a special BAWA meeting may be called for mid May, in order to approve
the issuance of the bonds for the new plant.
5. TOUR OF FACILITY
a. The Board will tour the BAWA Surface Water Treatment Plant, 7425 Thompson
Rd., Baytown, Texas 77521.
President Bradley Smith stated that everyone was welcome to tour the facility.
The directors toured BAWA Plant located at 7425 Thompson Road, Baytown, Texas.
6. ADJOURN
Upon completion of the tour and with there being no further business to discuss, President
Bradley Smith adjourned the April 18, 2018, BAWA Board Regular Meeting at 10:21 A.M.
13,
Leticia Brysch, Assist ecretary
City of Baytown
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