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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