2019 05 09 BAWA Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
May 9, 2019
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Special Meeting
on Thursday, May 9, 2019, at 5:00 P.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 May 9, 2019, BAWA Board Special Meeting with a
quorum present at 5:00 P.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 March 20, 2019.
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III approving the March 20, 2019, 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 Regular
Meeting held on April 17, 2019.
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III approving the April 17, 2019, BAWA Board Regular Meeting Minutes. The vote was as
follows:
BAWA Board Special !Meeting Minutes
May 9, 2019
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. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing the issuance and awarding the sale of the
Baytown Area Water Authority Water Supply Contract Revenue Bonds, Series 2019, for
the BAWA East Plant Project.
Finance Director Wade Nickerson presented agenda item 2.a. and stated that Resolution No.
2019-13 authorizes the issuance and awards the sale of the Baytown Area Water Authority
("BAWA") Water Supply Contract Revenue Bonds, Series 2019, in a par amount not to exceed
$18,000,000, for the purpose of purchasing, constructing, leasing or otherwise acquiring,
enlarging, expanding and modifying the BAWA East 6 MGD Surface Water Treatment Plant.
Mr. Nickerson further stated that the sale came in lower than expected and that JP Morgan
Securities LLC won the bid with a true interest cost of approximately 2.7° o and offered any
questions from the Board. Secretary Frank McKay III questioned the rate and duration of the
bond and Mr. Nickerson responded that the interest rate is 2.718 for a duration of 20 years.
RESOLUTION NO. 2019-13
RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING THE ISSUANCE OF THE
BAYTOWN AREA WATER AUTHORITY WATER SUPPLY CONTRACT
REVENUE BONDS, SERIES 2019 (CITY OF BAYTOWN PROJECT);
APPROVING OTHER MATTERS RELATED THERETO; AND PROVIDING
FOR TI1E EFFECTIVE DATE THEREOF.
A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike
Wilson approving Resolution No. 2019-13, 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.
Nays: None
Other: Director Brandon Benoit (Absent)
Approved
BAWA Board Special Meeting Minutes
May 9, 2019
Page 3 of 4
b. Consider a resolution authorizing the First Amendment to the Professional
Service Agreement with Terracon Consultants, Inc., for the material testing services for the
BAWA 6MGD Surface Water Treatment Plant Project.
Public Works Director Frank Simoneaux presented agenda item 2.b. and stated that Resolution
No. 2019-14 approves the First Amendment to the Professional Service Agreement between
BAWA and Terracon Consultants, Inc., for additional material testing services for the BAWA 6
MGD Surface Water Treatment Plant Project in the amount of $85,638.00. Mr. Simoneaux
further stated that the original agreement for material testing services was in the amount of
$114,247.00 and this amendment increase the contract amount to $199,885.00. He further
clarified that the reason for the amendment is due to the accelerated schedule that the contractor
is pursuing, has requires the testing firm to have additional testing personnel on site and that the
contractor has assured staff that this amount should cover the duration of the project.
Vice President Mike Wilson questioned the need for additional staff and Mr. Simoneaux
responded that due to the increased scheduled there contractor required additional testing
personnel to be on site in concurrent sessions and that essentially the contractor ran out of the
amount previously allotted and this amount should cover the additional testing personnel hours
for the duration of the project.
Director Harland Forrest noted his concern for what could potentially be down the road as far as
additional amendments. Secretary Frank McKay III questioned the benefits of the accelerated
construction timeline and Mr. Simoneaux responded that additional water coming online would
be a benefit and that the contractor is predicting a completion date a year in advance of the
agreed upon completion date. Secretary McKay also noted that the amount of time is comparable
for the amount of the cost for the amendment.
A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest,
Jr. approving Resolution No. 2019-14, 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
3. REPORTS
a. Receive an update regarding the Baytown Area Water Authority East Plant Project.
BAWA Superintendent Sterling Beaver presented an update on the Baytown Area Water
Authority East Plant Project by showing the Board a bird's eye view of the BAWA East Plant
construction site and stated that work continues to progress and that the project is on schedule at
a current completion rate of 40%' and that the contractor is still aiming to have the project
completed by Summer of 2020.
BAWA Board Special Meeting Minutes
May 9, 2019
Page 4 of 4
4. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, June
19, 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, June 19, 2019, at 9:00 a.m., in the Council Chamber.
5. ADJOURN
A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike
Wilson to adjourn the May 9, 2019, BAWA Board Special Meeting. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay II1, 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 May, 9,
2019, BAWA Board Special Meeting at 5:16 P.M.
144 j
L ticia Brysch, Assistan ecretary
City of Baytown