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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 ;Uw