2018 07 18 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July, 18, 2018
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, July 18, 2018, at 9:00 A.M., in the Council Chamber of the Baytown
City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley Smith
Mike Wilson
Harland Forrest, Jr.
Rick Davis
Ignacio Ramirez, Sr
Alisha Segovia
President
Vice President
Director
General Manager
General Counsel
Deputy Assistant Secretary
President Brenda Bradley Smith convened the July 18, 2018, BAWA Board Regular Meeting
with a quorum present at 9:00 A.M., all members were present with the exception of Directors
Brandon Benoit and Frank McKay III, who were both absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on April 18, 2018.
A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike
Wilson approving the April 18, 2018, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
b. Consider approving the minutes of the Baytown Area Water Authority Special
Meeting held on May 24, 2018.
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. approving the May 24, 2018, BAWA Board Special ;Meeting minutes. The vote was as
follows:
Ayes. President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
C. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on June 20, 2018.
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. approving the June 20, 2018, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
2. BAWA FY2018-19 PROPOSED BUDGET
a. Receive and discuss the Baytown Area Water Authority's Fiscal Year 2018-19
Proposed Budget.
General Manager Rick Davis presented a recap of the Baytown Area Water Authority Fiscal
Year 2018-19 Prosed Budget and stated that there is a 3% increase over the current year
projections and estimated sales are at an average of 13.5 million gallons per day. Total Operating
Expenses are increasing by I%, which is $75,773 over the prior year. Capital Outlay is budgeted
at 13.8 million dollars with the largest projects being the BAWA East Engineering at 1.05
million dollars, which is a continuation of expense from the previous year, and the BAWA East
Construction which is expected to cost anywhere between $4.9 and 5 million dollars.
Mr. David further noted that the Ground Storage Tanks Rehabilitation will also be included at a
cost of 1.4 million dollars, which is also a continuation form the previous year. As well as the
BAWA East Transition Line at 1.65 million dollars, and the Filter Scourer at 1.11 million
dollars. Mr. Davis asked any questions from the Board and stated that the next BAWA meeting
is scheduled for August 15th, 2018, and would include a public hearing and consideration of
approval for the Fiscal Year 2018-19 BAWA Budget.
b. Consider a resolution calling for a public hearing regarding the Baytown Area
Water Authority Fiscal Year 2018-19 Proposed Budget.
Finance Director Wade Nickerson presented the agenda item and stated that Resolution No.
2018-20 sets the public hearing regarding the Baytown Area Water Authority Fiscal Year 2018-
19 Proposed Budget, for August 15, 2018, at 9:00 a.m.
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. approving Resolution No. 2018-20, regarding agenda item 2.b. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
RESOLUTION NO. 2018-20
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ESTABLISHING THE DATE, TIME AND
PLACE FOR A PUBLIC HEARING ON THE 2018-19 PROPOSED BUDGET;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3. PROPOSED RESOLUTIONS
a. Consider a resolution awarding the Annual Liquid Cationic Polymer Contract to
Polydyne, Inc.
BAWA Superintendent Sterling Beaver presented the item and stated that Resolution No. 2018-
21 is to award the Annual Liquid Cationic Polymer Contract to Polydyne, Inc, in the amount of
143,500 (350,000 pounds @ $0.41 per pound.) Mr. Beaver stated that Staff submitted bid
requests to four vendors and that only one of those vendors submitted a bid. Mr. Beaver stated
that one of the vendors met with Staff and discussed the reason why they did not submit a bid,
which is due to cost increase for raw materials and an unstable market. Therefore, they did not
desire to place a bid on this item considering they could not project the cost for this product a
year from now. Mr. Beaver further noted that Polydyne, Inc. is a manufacture of the product and
the others are re -sellers, who purchase the product from other vendors or manufactures and re-
sale it. Therefore, this might be the reason why Polydyne, Inc. was the only one to submit an bid.
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. approving Resolution No. 2018-21, regarding agenda item 3.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other. Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
RESOLUTION NO. 2018-21
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ACCEPTING THE BID OF POLYDYNE, INC.,
FOR THE ANNUAL LIQUID CATIONIC POLYMER CONTRACT AND
AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER
AUTHORITY, IN THE AMOUNT OF ONE HUNDRED FORTY-THREE
THOUSAND FIVE HUNDRED AND N0/100 DOLLARS ($143,500.00);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
4. REPORTS
a. Receive the Baytown Area Water Authority's Quarterly Financial and Investment
Reports for the Quarter Ending June 30, 2018.
Finance Director Wade Nickerson presented the Baytown Area Water Authority's Quarterly
Investment Report for the Quarter ending June 30, 2018, and stated that Revenues on page one
are just under 77%, which is right where Staff wants it to be. Mr. Nickerson stated that the
Miscellaneous item is budgeted relatively low due to late fees collected from Entities that
purchase water from BAWA. He further stated that the bottom line on page 2 includes the
Expenditures, which is at little under 70%. He notes that the Supplies line item may increase as
the summer months approach because raw water is purchased from this line item. However, this
increase is expected and should still come within budgeted amounts. Mr. Nickerson stated that
the Service line item is relatedly low but is also expected it to come in at or below projected
totals.
Mr. Nickerson stated that the CIP Fund Expenditures are right on track at 75%, which includes
expenditures related to the purchase of Wetlands Mitigation Credits (1.2 million), BAWA East
Plant, and the High Service Pumps. He further stated that a lot of these totals are incumbent but
Staff will narrow down the number towards the end of the year. Lastly Mr. Nickerson presented
the quarterly interest earnings of 2% for total earnings of $87,020 and offered up any questions
from the Board. Vice President Mike Wilson questioned what the expected interest rate was and
Mr. Nickerson stated that it was budgeted at approximately 1.25%, and that the advantage of the
current fund is that the funds can be pushed out to invest in a variety of pools.
b. Receive an update regarding the Baytown Area Water Authority East Plant Project.
City Engineer Jose Pastrana presented the item by showing the Board a bird's eye view of the
access road and construction site. He noted that the ditches surrounding the access roads are
holding water and that Staff has addressed the issue with the contractor, Transglobal Solutions,
and the contractor stated that work will start in a few weeks to re -cut the ditches to drain into the
Sutton Gully. Mr. Pastrana also noted that a Groundbreaking Ceremony will be held on
Wednesday, August 1, 2018, at 9:00 a.m.
5. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
August 15, 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 Baytown Area Water Authority meeting is
scheduled for Wednesday, August 15, 2018, at 9:00 a.m., in the Council Chamber, at which time
the public hearing and consideration of approval for the budget will be held.
6. ADJOURN
A motion was made by Vice President Mike Wilson and seconded by Director Harland Forrest,
Jr. to adjourn the adjourning the July 18, 2018, BAWA Board Regular Meeting. The vote was as
follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland
Forrest, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Brandon Benoit (Absent)
Approved
With there being no further business to discuss, President Bradley Smith adjourned the July, 18,
2018, BAWA Board Regular Meeting at 9:21 A.M.
1"id��
Leticia Brysch, Assistant S eta
City of Baytown