2019 07 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July 17, 2019
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, July 17, 2019, at 9:00 A.M., in the Council Chamber of the Baytown
City If all, 2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley Smith President
Mike Wilson Vice President
Frank McKay III Secretary
Rick Davis General Manager
Karen fiorner General Counsel
Alisha Segovia Deputy Assistant Secretary
President Bradley Smith convened the July 17, 2019, BAWA Board Regular Meeting with a
quorum present at 9:00 A.M., all members were present with the exception of Directors Ilarland
Forrest, Jr. and Brandon Benoit, who were both absent.
1. BAWA FISCAL YEAR 2019-20 PROPOSED BUDGET
a. Receive and discuss the Baytown Area Water Authority's Fiscal Year 2019-20
Proposed Budget.
General Manager Rick Davis presented a recap of the Baytown Area Water Authority
("BAWA") Fiscal Year 2019-20 Prosed Budget and stated that there is a 2% increase in
Revenues over the current year projections and estimated sales are at an average of 13.5 million
gallons per day. Total Operating Expenses are estimated to increase by more than $2.3 million,
which is primarily due to bringing the BAWA East Plant online. Capital Outlay is budgeted at
$13.8 million dollars, with the largest projects being the BAWA East project completion at $6.8
million dollars; the Chemical Systems Replacement Project at 2.26 million dollars; $2.2 million
dollars for the filter scour; and the BAWA East Transmission Line Project at $1.45 million
dollars.
Mr. Davis further noted that these are some very sizable projects, but that staff has confidence
that the construction is ahead of schedule and that the contracted obligations for water is
supporting the need to bring the plant online as soon as possible. Lastly, Mr. Davis made note
that if the Board agrees with the budget, the next meeting would be August 21 ", 2019, which
would include a public hearing and consideration of approval for the Fiscal Year 2019-20
BAWA Budget. With that being said Mr. Davis turned the platform over to BAWA
Superintendent, Mr. Sterling Beaver to answer any questions that the Board might have and to
provide further detail in regards to capital projects.
Mr. Sterling Beaver provided the Board and update on the following Capital Projects that are a
carry-over from this year to the next Fiscal Year and where they are in the process of those
projects:
BAWA Board Regular Meeting Minutes
July 17, 2019
Page 2 of 6
1. Filter Air Scourer Project:
Scope: Filter air scour will provide a more efficient backwash by increasing solids
removal and decreasing amount backwash water used
Consultant: Ardurra Group
Schedule: Design completion December 18, 2019 and bid February 2020
2. Chemical Facilities Improvement Project:
Scope: Combination of Multiple projects which include: Replacement of Bulk Tanks;
LAS System; Lime System; Post Filtration Chemicals; and Sludge Room
Improvements. These projects will provide new chemical storage tanks; new
chemical feed lines; eliminate anhydrous (gas) ammonia; new pumps; and
valves for sludge and chemicals.
Consultant: KIT Engineering
Contractor: Angel Brothers Construction
Schedule: Bid in August 2019
3. BAWA East Transmission Line:
Scope: Water transmission line from BAWA East plant to FM 1405
Consultant: BHA Engineering
Schedule: Construction award in July 2019 and estimated construction completion in
January 2020
Mr. Beaver turned the platform over to Finance Director Wade Nickerson who offered to answer
any questions from the Board. Vice President Mike Wilson asked for clarification for the total
budgeted expenditures for Capital Improvements and the reason for the large increase in the
supplies line item. Mr. Nickerson responded that these items, as well as a few other items not
mentioned, create a combined total of 13.8 million dollars projected for Capital Improvements
and that the difference in the supply line item is due to the supplies that will be needed for the
plant startup projected for next year.
b. Consider a resolution calling for a public hearing regarding the Baytown Area
Water Authority Fiscal Year 2019-20 Proposed Budget.
Finance Director Wade Nickerson presented agenda item I.b. and stated that Resolution No.
2019-16 sets the public hearing regarding the Baytown Area Water Authority Fiscal Year 2019-
20 Proposed Budget, for August 21, 2019, at 9:00 a.m.
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III approving Resolution No. 2019-16, regarding agenda item l.b. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III
Nays: None
Other: Director Harland Forrest, Jr. (Absent), Director Brandon Benoit (Absent)
Approved
BAWA Board Regular Meeting Minutes
July 17, 2019
Page 3 of 6
RESOLUTION NO. 2019-16
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 2019-20 PROPOSED BUDGET;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
2. PROPOSED RESOLUTIONS
a. Consider a resolution awarding a construction contract to Angel Brothers
Enterprises, Ltd, for the Baytown Area Water Authority FM 1405 16-inch Waterline
Project.
Public Works Director Frank Simoneaux presented agenda item 2.a. and stated that Resolution
No. 2019-17 awards a construction contract for the Baytown Area Water Authority FM 1405 16-
inch Waterline Project to Angel Brothers Enterprises, Ltd, in the amount of $1,344,48. He stated
that the work consists of the construction of a 16-inch waterline on the west side of FM 1405, on
the south side of the Houston Light and Power discharge canal and FM 565, and noted that this
proposed waterline will connect to the existing waterlines at both ends.
Secretary Frank McKay III questioned if a 30-inch pipe would be needed and Mr. Simoneaux
responded that a water model was conducted and a 16-inch is the size that was recommended.
Furthermore, Mr. Simoneaux stated that there will be future projects to go along State Highway
99 to connect for future growth, as well an additional pipe to connect to CCID No. One, for
potentially a combined total of three pipes that will go out from different parts of the plant.
A motion was made by Secretary Frank McKay III, and seconded by Vice President Mike
Wilson approving Resolution No. 2019-17, regarding agenda item 2.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III
Nays: None
Other: Director Harland Forrest, Jr. (Absent), Director Brandon Benoit (Absent)
Approved
RESOLUTION NO. 2019-17
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AWARDING THE BAYTOWN AREA WATER
AUTHORITY FM 1405 16-INCH WATERLINE PROJECT TO ANGEL
BROTHERS ENTERPRISES, LTD; AUTHORIZING PAYMENT IN THE
AMOUNT OF ONE MILLION TIIREE HUNDRED FORTY-FOUR
THOUSAND FOUR HUNDRED EIGHTY-ONE AND NO' 100 DOLLARS
($1,344,481.00); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
BAWA Board Regular Meeting Minutes
July 17, 2019
Page 4 of 6
3. REPORTS
a. Receive the Baytown Area Water Authority's Quarterly Financial and Investment
Reports for the Quarter Ending June 30, 2019.
Finance Director Wade Nickerson presented the Baytown Area Water Authority's Quarterly
Financial Report and Investment Report for quarter ending June 30, 2019 and stated Revenues
came in as expected for this year and staff expects water revenue sales to come in on budget.
Mr. Nickerson stated that percentages for the Maintenance and Services line items look relatively
low but this is due to staff managing the funds relatively well. Furthermore, he stated that there
will be a couple of special contracts that are scheduled to come up soon that will come out of the
services line item. As it relates to capital, Mr. Nickerson noted that there is a vehicle purchase
and some screens that have been encumbered, but not purchased yet.
Mr. Nickerson further stated that Capital Improvements Funds are larger projects that are long
term, and as such a lot of money for this fund is going to carry over to the next year as these
projects are ongoing.
As it relates to the Investment Report Mr. Nickerson stated that at the end of the quarter,
including the bond funds, there was $45.3 million dollars that's being invested at an approximate
rate of 2.4° o, with a combined total earnings of just under $200,000 for the last quarter and
entertained the Board with any questions they might have.
Vice President Mike Wilson questioned the Investments as listed on page six of the Investment
Report and Mr. Nickerson responded that everything is pointing to rates dropping so rates may
be at the peak of earning potential right now.
b. Receive an update regarding the Baytown Area Water Authority East Plant Project.
Public Works Director Frank Simoneaux provided the Board with an update on the Baytown
Area Water Authority East Plant Project by presenting to the Board a financial overview of the
BAWA East Plant Project. He noted several key points to the Board as they relate to the
financials for the project. He stated that Staff is in discussions with the Bank to sell mitigation
credits that were previously purchased and not used. The funding for any of the mitigation sales
would go back to the fund. Secondly, Mr. Simoneaux stated that there will be changes in the
future that will be presented to the Board in the near future. Some items might need negations
with the vendors but reiterated that a good working relationship with vendors is important to
project success.
BAWA Board Regular Meeting Minutes
July 17, 2019
Page 5 of 6
BAWA East Plant Financial Overview 2014-Current:
R
Financial
Bond funds S44,884,214
CII' i unds 514,422,401
Design Cost
54,282,974
Clearing & Grubbing
5409,143
Construction
S52,186,000
Construction Change Orders
(53,615 633y
COI: Value frig $(6,093,6(k))
CO2: Seal Slab $38,822.91
CO3: Generator $1,658,000
C04: Partial Value Ung Add $221,161 30
C05: li.xtra Clearing & Grubbing $8,88175
C06 Radar I evel & SCADA $5%0,899
1 and
S2,588,639
Road (TGS Cost Share)
$1,190,000
Material Testing
$199,885
Waterline Design
S120,770
Waterline Construction
$1,344,481
Sewerline Construction (I stimated)
5300,000
Misc. Items
$244,838
7 1712019 •9
BAWA Superintendent Sterling Beaver provided the Board an overview of the construction and
timelines and noted that the NTP was issued in May of 2018 and that construction began in June
of 2019, with a current estimated completion rate of 5001.0. Start-up is estimated for May of 2020
and project completion is expected by July of 2020. Furthermore, Mr. Sterling noted the
following structures as nearing completion: Forebay, Sludge Lagoon, and Ground Storage Tank.
Lastly, Mr. Sterling provided the following percentages of completion and provided the Board a
bird's eye view of the BAWA East Plant construction site:
BAWA East Plant Percentage of Com letion:
Yard Piping
56%
Raw Water Intake
65%
Forebay & Low Lift Station
63%
Treatment Train
50%
Transfer Pump Station
35%
Ground Storage Tank
71 %
Sludge Lagoon & Decant Structure
70%
Backwash Equalization & Pump Station
85%
Sludge Pump Station
60%
Operations Building
38%
Underground Duct Bank
90%
Sanitary Sewer Lift Station
40%
Recycle Pump Station
60%
Primary Electrical Building
10%
LLPS Electrical Building
20%
HSPS Electrical Building
10%
BAWA Board Regular Meeting Minutes
July 17, 2019
Page 6 of 6
4. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
August 21, 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, August 21, 2019, 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.
5. ADJOURN
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III to adjourn the August 21, 2019, BAWA Board Regular Meeting. The vote was as follows:
Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank
McKay III
Nays: None
Other: Director Harland Forrest, Jr. (Absent), Director Brandon Benoit (Absent)
Approved
With there being no further business to discuss, President Bradley Smith adjourned the July, 17,
2019, BAWA Board Regular Meeting at 9:37 A.M.
- Vhi. 14"
Leticia Brysch, Assis nt Secretary
City of Baytown
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