2018 12 05 BAWA Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December, 5, 2018
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Special Meeting
on Wednesday, December 5, 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
Brandon Benoit
Director
Rick Davis General Manager
Ignacio Ramirez, Sr. General Counsel
Alisha Segovia Deputy Assistant Secretary
President Bradley Smith convened the December 5, 2018, BAWA Board Special Meeting with a
quorum present at 9:00 A.M., all members were present.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on September 19, 2018.
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III approving the September 19, 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., Director Brandon Benoit
Nays: None
Other: None
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing Change Order No. 3 with Pepper Lawson
Waterworks, LLC, for the 6 MGD Surface Water Treatment Plant Project.
BAWA Board Special Meeting Minutes
December 5, 2018
Page 2 of 4
Assistant City Engineer Ajay Shakyaver presented the agenda item and stated that Resolution
No. 2018-23 authorizes Change Order No. 3 with Pepper Lawson Waterworks, LLC, for the 6
MGD Surface Water Treatment Plant Project to add the back-up generator and gear in the
amount of $1,658,000.00. Mr. Shakyaver stated that this change order is necessary to ensure that
the plant remains operational in the event of an emergency and that the original contract was in
the amount of $52,186,000.00; with subsequent change orders in the amount of ($6,054,777.09).
Secretary Frank Mckay III questioned a separate line that was previously discussed that would
run from the HL&P Plant and Mr. Shakyaver answered that there were some logistical issues
with CenterPoint Energy and TCEQ strongly recommended that the plant has an independent
secondary source of power. Deputy General Manager Ron Bottoms stated that the Board and
Council expressed some concern about this item and as such this item adds the back-up generator
and gear back into the project. Vice President Mike Wilson questioned if this item was taken out
of the 6 million and if this item would add it back and General Manager Rick David stated that
Capital monies will be used to bring this item back and that it would come out of the CIP Fund.
Vice President Wilson further questioned if the amount stayed the same as previously bided and
Mr. Shakyaver confirmed this information.
Secretary McKay III also quested if the generator would be raised above the 500 year flood plain
in order to avoid flooding and Mr. Shakyaver confirmed that generally it would be built above
the 500 year flood plain, plus two -feet.
A motion was made by Vice President Mike Wilson, and seconded by Director Brandon
Benoit approving Resolution No. 2018-25, regarding agenda item 2.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr., Director Brandon Benoit
Nays: None
Other: None
Approved
RESOLUTION NO. 2018-25
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING CHANGE ORDER NO. 3 WITH
PEPPER LAWSON WATERWORKS, LLC, FOR THE BAWA 6 MGD
SURFACE WATER TREATMENT PLANT PROJECT IN THE AMOUNT OF
ONE MILLION SIX HUNDRED FIFTY-EIGHT THOUSAND AND NOl100
DOLLARS ($1,658,000.00); AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
BAWA Board Special Meeting Minutes
December 5, 2018
Page 3 of 4
3. REPORTS
a. Receive the Baytown Area Water Authority's Quarterly Financial and Investment
Reports for the Quarter Ending September 30, 2018.
Finance Director Wade Nickerson presented the Baytown Area Water Authority's Quarterly
Investment Report for the Quarter ending September 30, 2018, and stated that there is not a lot to
report on revenues, with the exception of a few line items that are at 640% of revenues, which is
a very small amount of $3,400, which is due to late fees that were charged to several customers.
Overall the bottom line for revenues is at 104% of what was budgeted.
Mr. Nickerson further noted that expenditures came in at 95.11% of the budget and that all line
items came within the budgeted range and that CIP Fund Expenditures includes expenditures
related to the High Service Pumps, engineering of the BAWA East Plant, and construction, with
a total encumbrance of 10.3 million dollars, of which all will not be spent by the end of the year
because construction will be ongoing.
Lastly Mr. Nickerson presented the quarterly interest earnings of 3.22% on 17 million for total
earnings of $92,784 and offered up any questions from the Board. Vice President Mike Wilson
questioned how the funds are invested and Mr. Nickerson stated that it invested in numerous
places, such as commercial paper, TX Pool, Federal Treasuries, and etc.
b. Receive an update regarding the Baytown Area Water Authority East Plant Project.
Assistant City Engineer Ajay Shakyaver presented the item by showing the Board a bird's eye
view of the BAWA East Plant construction site that was filmed on November 27, 2018. Mr.
Shakyaver stated that there have been some issues with the construction of the dewatering intake
structure due to the elevation of the water table and that the low lift station is already
constructed. Additionally, Mr. Shakyaver stated that the water lines are being placed, the back
wash basin is already constructed, and preparation working is being done for the ground water
storage tank, as well ground stabilizing is continuing.
4. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for
Wednesday, January 16, 2019, 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, January 16, 2019, at 9:00 a.m., in the Council Chamber.
5. ADJOURN
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. to adjourn the December 5, 2018, BAWA Board Special Meeting. The vote was as follows:
BAWA Board Special Meeting Minutes
December 5, 2018
Page 4 of 4
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Harland Forrest, Jr., Director Brandon Benoit
Nays- None
Other: None
Approved
With there being no further business to discuss, President Bradley Smith adjourned the
December, 5, 2018, BAWA Board Special Meeting at 9:15 A.M.
Leticia Brysch, Assist `n Secretary
City of Baytown