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2020 01 15 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY January 15, 2020 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, January 15, 2020, 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 Harland Forrest, Jr. Director Brandon Benoit Director Nick Woolery Assistant General Manager Karen Horner General Counsel Alisha Segovia Deputy Assistant Secretary President Bradley Smith convened the January 15, 2020, BAWA Board Regular Meeting with a quorum present at 9:00 A.M., all members were present with the exception of Director McKay who was absent and Director Benoit that arrived at 9:15 A.M. 1. MINUTES a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on July 17, 2019. A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike Wilson to approve the July 17, 2019, BAWA minutes as submitted. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr. Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved b. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on August 21, 2019. A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest, Jr. to approve the August 21, 2019, BAWA minutes as submitted. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr. BAWA Board Regular Meeting Minutes January 15, 2020 Page 2 of 8 Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved C. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on November 20, 2019. A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike Wilson to approve the November 20, 2019, BAWA minutes as submitted. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr. Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved d. Consider approving the minutes of the Baytown Area Water Authority Special Meeting held on December 11, 2019. A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest, Jr., to approve the December 11, 2019, BAWA minutes as submitted. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr. Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved 2. PROPOSED RESOLUTIONS a. Consider a resolution awarding the Annual Liquid Ferric Chloride Contract to PVS Technologies, Inc. Assistant Director of Public Works - Utilities Sterling Beaver presented the item and noted that there have been some changes in staffing and noted the Mark LeBlanc will retire from the City at BAWA Board Regular Meeting Minutes January 15, 2020 Page 3 of 8 the end of the week, and he would be taking over as the Assistant Public Works Director for the Utilities Division that includes BAWA, with Herschel Austin serving as the Acting BAWA Superintendent. Acting BAWA Superintendent Herschel Austin stated that the proposed resolution awards the Annual Liquid Ferric Chloride Contract to PVS Technologies, Inc., in the amount of $149,500.00. He stated that bids were opened Monday, January 6th, 2020, at 9:30 a.m. with PVS Technologies, Inc., having the lowest bid at $149,500.00 (500,000 pounds @ $0.2990 per pound). This product is used in the coagulation process at the BAWA Surface Water Treatment Plant. Director Wilson asked if PVS was the only bidder for this item. Mr. Austin stated that this company was the only bidder for this contract, but staff recommended approval as it is the same company that was used last year, and the bid was a fair price. A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest, Jr. to approve Resolution No. 2020-01, related to Item 2.a. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr., Director Brandon Benoit Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved RESOLUTION NO.2020-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF PVS TECHNOLOGIES, INC., FOR THE ANNUAL LIQUID FERRIC CHLORIDE CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($149,500.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider a resolution awarding the Annual Liquid Chlorine Contract to DXI Industries, Inc. Acting BAWA Superintendent presented the item and stated that the proposed resolution awards the Annual Liquid Chlorine Contract to DXI Inc., in the amount of $92,510.00. He noted that bids were opened Monday, January 6, 2020, at 9:30 a.m. with DXI Industries Inc., having the lowest bid at $92,510.00 (145 tons/per year @ $638.00 per ton). Mr. Austin noted that this was BAWA Board Regular Meeting Minutes January 15, 2020 Page 4 of 8 the company that was used last year and this year's price was lower than last year by one dollar per ton. A motion was made by Director Harland Forrest, Jr., and seconded by Vice President Mike Wilson to approve Resolution No. 2020-02, related to Item 2.b. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr., Director Brandon Benoit Nays: None Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved RESOLUTION NO.2020-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF DXI INDUSTRIES, INC., FOR THE ANNUAL LIQUID CHLORINE CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF NINETY-TWO THOUSAND FIVE HUNDRED TEN AND NO' 100 DOLLARS ($92,510.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. C. Consider a resolution awarding the Annual Sodium Hydroxide Contract to Brenntag Southwest. Acting BAWA Superintendent presented the item and stated that the proposed resolution awards the Annual Sodium Hydroxide Contract to Brenntag Southwest in the amount of $157,802.00 (407,000 pounds @ $0.2160 per dry pound at 50% and 290,000 pounds @ $0.2410 per dry pound at 25%). He noted that bids were opened Monday, January 6, 2020 at 9:30 a.m. with Brenntag Southwest, having the lowest bid. This product is used to control pH at the BAWA Surface Water Treatment Plant and in comparison to last year, the pricing went down significantly from $207,000 to $157,802. Mr. Austin noted that staff recommended approval of the item. A motion was made by Vice President Mike Wilson, and seconded by Director Harland Forrest, Jr. to approve Resolution No. 2020-03, related to Item 2.c. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Director Harland Forrest, Jr. Nays: None BAWA Board Regular Meeting Minutes January 15, 2020 Page 5 of 8 Other: Secretary Frank McKay III (Absent) and Director Brandon Benoit (Not Present for Vote) Approved RESOLUTION NO.2020-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF BRENNTAG SOUTHWEST INC., FOR THE ANNUAL SODIUM HYDROXIDE CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF ONE HUNDRED FIFTY- SEVEN THOUSAND EIGHT HUNDRED TWO AND NO100 DOLLARS ($157,802.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. REPORTS a. Receive the Baytown Area Water Authority's Annual Financial Report for the fiscal year ended September 30, 2019. Interim Finance Director Gina Guillory presented the Baytown Area Water Authority Annual Financial Report for the fiscal year ended September 30, 2019 and introduced Robert Belt, with the auditing firm to give the board an overview of the information. Mr. Belt thanked the board for their time and stated that they gave BAWA an unmodified opinion on the respective financial statements of the business -type activities, which is the highest level of assurance that can be given to the financials. Mr. Belt noted that as far as BAWA's statement of net position, BAWA ended the year with total assets at $116 million and total liabilities at $56 million, with a net position at $59 million at year end. Mr. Belt further stated that as it related to BAWA's results of operation, BAWA brought in a total of revenue of $13.5 million, operating expenses were at $8.2 million, and other non - operating expenses at $.57 million, giving BAWA the change in net postilion for the end of the year of $4.7 million. BAWA started the beginning of the year net position at $55 million with the change in net position, resulted in an ending net position of $59 million; this is a very good change for the net position at the end of the year. As it relates to BAWA's cash flow statements, Mr. Belt stated that it was important to note that cash went up for the year $8.3 million, which is a significant increase for the year. Lastly, Mr. Belt noted that in BAWA's budget to actual comparison, BAWA came in at the end of the year with a negative variance of negative $253,755, as revenues came in slightly less than what had been anticipated; expenditures also came in less than what had been anticipated by $340,000, which is a positive thing. Mr. Belt noted that after taking into account a difference in non - operating revenues and expenses of $172,000, the net positive variance for the end of the year was $258,000. BAWA Board Regular Meeting Minutes January 15, 2020 Page 6 of 8 The Board thanked Mr. Belt for his very clear and comprehensive presentation. b. Receive the Baytown Area Water Authority's Quarterly Financial and Investment Reports for the Quarter Ending December 31, 2019. Interim Finance Director Gina Guillory presented the Baytown Area Water Authority's Quarterly Investment Report, for the Quarter Ending December 31, 2019, is submitted for review in accordance with the Public Funds Investment Act, Section 2256.023 (a) and (b). Mrs. Guillory noted that for the first three months of the fiscal year, BAWA is on target for its revenues, which is at about 25% of budget, which is where it is supposed to be in the first quarter. She noted that as it related to expenditures, they are at about 21 % of the budget, which is slightly under from the projected numbers, but that would change once the purchases for trucks, a utility tractor and other capital purchases started coming in. As far as the revenues to the CIPF, revenues are right on track at 25%; however, expenditures are up to 62%, which is not alarming since most of these funds have been rolled over from last year and are related to ongoing projects. Lastly, Mr. Guillory noted that BAWA's investments being stable with a 1.65% interest and total earning of $141,503. In regards to a question by Director Wilson on how the interest rate compared to other similar entities, Ms. Guillory stated that while she did not have that information with her, she would make sure to provide them said information quickly. C. Receive an update regarding the Baytown Area Water Authority East Plant Project. Assistant Director of Public Works - Utilities Sterling Beaver presented the item and stated that staff would be presenting the item in two parts; the first will be an overview of the development using the drone video to show the project's progress, and the second will be an overview from Mrs. Andrea Brinkley, the City's new Assistant Public Works Director over Capital Projects that will hit the highlights of the project. The Board reviewed the fly over video with main components of the site being identified by Mr. Beaver. Assistant Director of Public Works - CIP Andrea Brinkley introduced herself and stated that she started with the City back in the fall and noted that she is getting her footing settled and planted with all of the many projects that are happening around the city. She stated that this was the first of many times that she would be coming before the board to keep them updated on the progress of BAWA related capital projects, of which the construction of the BAWA East Plant is the major one and she welcomed comments and suggestions regarding the type of information that they would want to hear more about in the future. Mrs. Brinkley stated that as it related to the offsite work for this project, there is a 20-inch waterline that is underway, which is about 25-27% complete; this is moving along well and this is a good contractor, so staff believes that this project will be completed within the designated timeline, even with the weather issues that have negatively impacted their schedule. Mrs. Brinkley stated that in terms of the drainage and roadway, she noted that the all-weather road is now in place and noted that staff recently had a very good meeting with CCID#1, who has been very receptive to some of staff s recommended solutions in order to deal with some outstanding issues with sanitary and drainage along the roadway. She also noted that power and services are BAWA Board Regular Meeting Minutes January 15, 2020 Page 7 of 8 going to be coming along, which will be coming off of the roadway, and noted that there is a lot of development in this area, so staff is working with CenterPoint and other agencies to ensure that the needed connections for the plant are put in place soon. Mrs. Brinkley stated that as it related to the on -site construction, she would give an overview of the buildings and answer any questions as she went along. Low Lift Pump Station and the Fore -bay: This structure is about 95% complete, and while a lot of the outside work is complete, all of the work inside of the structure is in full force, items such as electrical, plumbing, conduit, etc. Rapid Mixer and Pulse Bend Clarifier Structure: Staff has been water testing this structure to ensure that it is in fact water bearing and that there are no cracks or issues with the structure; no issues have been reported as of yet. She noted that mechanical equipment that is being installed; the barriers, screens and slide gates have been installed and they are working other items. The backwash equalization and clarifier is 90% complete and the contractor is currently working on piping and valves, which are smaller in the scope of work but equally as important to the function of those units. Electrical Building: The roof is now on the building which is good in order to protect the equipment inside the building, and the contractor is continuing to work inside the building and staff is awaiting that permanent power, in order to make all of the final connections. Operations Building: There is some work being done on the roof, which is at about 50% of completion; in terms of the whole building, it will look much more complete, once the structure can be closed in, and while they continue to work on this building, its schedule has been impacted by the bad weather; however, the contractors are currently working on the inside of the first floor, conduit, insulation, etc. Transfer Pump Station: All of the process piping has been installed; however, the building remains in construction and is at about less than 50% from completion. High Service Pump Station: Contractors are beginning to pour the top slab which should be completed by next month and they are currently working on the construction of the header. Sludge Lagoons and Ground Storage Tanks: These items have been completed. Generator: This is onsite and awaiting the transformer delivery to complete its installation. BAWA Board Regular Meeting Minutes January 15, 2020 Page 8 of 8 Mrs. Brinkley stated that overall, the project is tracking pretty well and staff is looking at a timeline in July 2020 for completion; however, this is tentative as there are a lot of items that have to be completed and things that have to happen in order to meet that deadline. 4. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 19, 2020, at 9:00 a.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. Assistant General Manager Nick Woolery reminded the board of the next meeting on February 19th, thanked the Finance Department for a successful end of the year audit and thanked the staff for all of their hard work to make this staffing transition in Public Works/BAWA successful. 5. ADJOURN With there being no further business to discuss, President Bradley Smith adjourned the January 15, 2020, BAWA Board Regular Meeting at 9:29 A.M. Leticia Brysch, Assistant 9ecrel Baytown Area Water Authority