2018 08 15 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August, 15, 2018
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, August 15, 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
President
Mike Wilson
Vice President
Frank McKay III
Secretary
Harland Forrest, Jr.
Director
Rick Davis General Manager
Ignacio Ramirez, Sr. General Counsel
Alisha Segovia Deputy Assistant Secretary
President Bradley Smith convened the August 15, 2018, BAWA Board Regular Meeting with a
quorum present at 9:00 A.M., all members were present with the exception of Director Brandon
Benoit who was absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on July 18, 2018
A motion was made by Vice President Mike Wilson and seconded by Secretary Frank McKay III
approving the July 18, 2018, BAWA Board Regular Meeting Minutes. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
b. Consider approving the minutes of the Baytown Area Water Authority Special
Meeting held on August 1, 2018.
A motion was made by Secretary Frank McKay III and seconded by Director Harland Forrest, Jr.
approving the August 1, 2018, BAWA Board Special Meeting Minutes. The vote was as follows:
BAWA Board Meeting Mmutes
August 15, 2018
Page 2 of 4
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
2. BAWA PROPOSED BUDGET FY 2018-19
a. Conduct a public hearing concerning the Baytown Area Water Authority Fiscal
Year 2018-19 Proposed Budget.
At 9:02 A.M., President Bradley Smith opened and conducted a public hearing regarding the
Baytown Area Water Authority Fiscal Year 2018-19 Proposed Budget.
Finance Director Wade Nickerson presented a summary of the Baytown Area Water Authority
('BAWA") Fiscal Year 2018-19 Proposed Budget and stated that the budget was unchanged
from what was presented and discussed at the July 18, 2018 BAWA meeting. He further stated
that the revenues were budgeted at $13,978,857 and the expenditures at $15,521,198 leaving an
ending working capital balance of $4,379,711, with approximately 235 operation days in the
fund balance.
With there being no one registered to speak regarding agenda item 2.a., President Bradley Smith
closed the public hearing at 9:04 A.M.
b. Consider a resolution adopting the Baytown Area Water Authority Fiscal Year
2018-19 Proposed Budget.
Finance Director Wade Nickerson stated that Resolution No. 2018-22 adopts the Baytown Area
Water Authority Fiscal Year 2018-19 Budget and staff recommends approval.
A motion was made by Vice President Mike Wilson and seconded by Director Harland Forrest,
Jr. approving Resolution No. 2018-22, regarding agenda item 2.b. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
BAWA Board Meeting Mmutes
August 15, 2018
Page 3 of 4
3. BUSINESS ITEMS
a. Consider the election of officers for President, Vice President, and Secretary; and
the appointment of an Assistant Secretary.
Deputy Assistant Secretary Alisha Segovia presented the agenda item to consider the election of
officers for President, Vice President, and Secretary; and the appointment of an Assistant
Secretary. She stated that each officer serves for a term of one year and the current officers were
as follows: Brenda Bradley Smith, President; Mike Wilson, Vice President; Frank McKay III,
Secretary; and the City Clerk serves as the Assistant Secretary.
A motion was made by Director Harland Forrest, Jr. and seconded by Vice President Mike
Wilson approving for the current officers to remain the same for another term as follows: Brenda
Bradley Smith, President; Mike Wilson, Vice President; Frank McKay III, Secretary; and the
City Clerk as Assistant Secretary. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
4. REPORTS
a. Receive an update regarding the Baytown Area Water Authority East Plant Project.
City Engineering Jose Pastrana presented the item by showing the Board a bird's eye view of the
access roads and construction site. He stated that work continues in a progressive fashion and
that currently staff is in negotiations with the contractor to reinstate the generator that was
removed from the scope of work as a value engineering effort. He further stated that the goal is
to get the cost down to where it was before the item was removed and if approved this would be
Change Order No. Three for the project
Mr. Pastrana further stated that the access road coming off of Highway 99 has been accepted
from Trans -Global Solutions, Inc. and is now a City owned road, which is currently functional
and being utilized by contractors and staff. Additionally, he stated that staff applied for an
extension to the access road from Farm to Market Road 1405, which would provide backup
access points to the site if approved by the property owner (NRG Energy Inc.)
Secretary Frank McKay III questioned the status of the High Service Pump Project at the BAWA
West Plant and Mr. Pastrana stated that electrical conduit was installed this week and the project
is moving along as expected, with an expected completion date of January 2019.
BAWA Board Meeting Minutes
August 15, 2018
Page 4 of 4
President Bradley -Smith questioned the difference of amounts for the Change Order No. Three
and Mr. Pastrana responded that the amount deducted through value engineering was 1.7 million
dollars; however, the contractor is now proposing a costs 2.6 million dollars He stated noted that
the contractor believes that this amount is appropriate considering a cost escalation at 18%, as
well as, additional profit, extended overhead, and other miscellaneous items. Mr. Pastrana further
stated that considering the contract was awarded several months ago that the price increase to
this magnitude does not seem reasonable. Vice President Mike Wilson further questioned if staff
feels a resolve may be achievable and Mr. Pastrana answered that some concessions might need
to be made and that staff would consult with the Legal Department if a resolve cannot be
archived.
5. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
September 19, 2018, at 9:00 a.m., in the Council Chamber located at City Hall, 2401
Market Street, Baytown, Texas 77520.
General Manager Rick David thanked the Board for their participation at the BAWA East Plant
Project Groundbreaking Ceremony held on August 1, 2018 and stated that the next Baytown
Area Water Authority meeting is scheduled for Wednesday, September 19, 2018, at 9:00 a.m., in
the Council Chamber.
6. ADJOURN
A motion was made by Vice President Mike Wilson and seconded by Director Harland Forrest,
Jr. to adjourn the August 15, 2018 BAWA Board Regular Meeting. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
With there being no further business to discuss, President Bradley Smith adjourned the August,
15, 2018, BAWA Board Regular Meeting at 9:16 A.M.
Leficia Brysch, As
City of Baytown