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2013 06 19 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY June 19, 2013 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, June 19, 2013, at 9:04 A.M., in the Baytown Conference Room of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brenda Bradley Smith President Brandon Benoit Director Mike Wilson Director Ron Bottoms Deputy General Manager Karen Horner Assistant General Counsel Jason Cozza Deputy Assistant Secretary President Bradley Smith convened the June 19, 2013, Baytown Area Water Authority (BAWA) Board Regular Meeting with a quorum present at 9:04 A.M., all members were present with the exception of Secretary Wayne Baldwin and Vice President Dan Mundinger who were both absent. 1. MINUTES a. Consider approving the minutes of the Baytown Area Water Authority (BAWA) Board Meeting held on April 24, 2013. A motion was made by Director Brandon Benoit and seconded by Director Mike Wilson approving the April 24, 2013, BAWA Board Regular Meeting minutes. The vote was as follows: Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Secretary Wayne Baldwin (Absent), Vice - President Dan Mundinger (Absent) Approved BAWA Board Regular Meeting Minutes June 19, 2013 Page 2 of 4 2. PROPOSED RESOLUTIONS a. Consider a resolution authorizing the closeout and acceptance of the BAWA Power Distribution Improvement Project. Engineering Director Jose Pastrana stated that this project is the remainder of the electrical system. Deputy General Manager Ron Bottoms stated that this project is complete, bond funded, and staff recommended the release of retainage to T &C Construction, LTD. A motion was made by Director Brandon Benoit and seconded by Director Mike Wilson approving Resolution No. 2013 -05. The vote was as follows: Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Mike Wilson Nays: None Other: Secretary Wayne Baldwin (Absent), Vice - President Dan Mundinger (Absent) Approved RESOLUTION NO. 2013 -05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BAWA POWER DISTRIBUTION IMPROVEMENT PROJECT; AUTHORIZING FINAL PAYMENT OF THE SUM OF SIXTY -TWO THOUSAND EIGHT HUNDRED FORTY -THREE AND 47/100 DOLLARS ($62,843.47) TO T & C CONSTRUCTION, LTD., FOR SAID PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. DISCUSSIONS a. Discuss the development and financing of an additional water treatment plant in order to meet future water needs. Deputy General Manager Ron Bottoms presented the agenda item and stated that with the growth of the City, a second plant is planned to be located in Chambers County which will help free up the BAWA Plant North to provide water capacity with the expanded growth toward the north of I -10 and it will provide for the industrial growth in Chambers County. He stated that it takes about 3 -5 years to build an additional plant and RFQ's have already been sent out. He stated that an internal review of the qualifications would be done and then they will be submitted to the BAWA board. He stated that the estimated costs for the six million gallon a day plant would be $25 to $30 million dollars. He stated that BAWA is fortunate with the financing for the project as BAWA Board Regular Meeting Minutes June 19, 2013 Page 3 of 4 there will be debt capacity available. Deputy General Manager Bottoms stated that administration may also come to the board with a proposal to increase the rates to help fund the new plant. He stated that in summary the funding mechanism is in place. He stated that the project is a big deal for the board, the City and for BAWA and stated that the plan is for the BAWA board to select the engineering firm to move the project forward. Director Wilson asked what the $25 to $30 million for a new plant was compared to expanding the current facility. Engineering Director Jose Pastrana stated that there are some additional factors to consider with expanding the current plant, including the increased costs associated with pumping water if the current plant was expanded. The pumping would be a recurring cost as water would have to travel from the northwest side of the City to the southeast side. He stated that another important consideration is water pressure which decreases the further you get from the plant. Mr. Pastrana stated that the two locations that are being viewed for the new plant are the area south of I -10 along Needlepoint Road and the other one is south of that near Highway 99. Deputy General Manager Bottoms stated the City would be trying to partner with CCID #1 to perhaps provide the City with some land on the southeast side. Mr. Pastrana stated that a new water line that the City assisted in up- sizing is available for connectivity back into the city. During further discussion, Director Benoit asked what criteria the board will use to determine which site would be the best. Mr. Pastrana stated that a water model was developed with the alternative capacity requirements (ACR) for the city and stated that this model can be adapted to help guide the process for selecting a new plant location. In response to Director Benoit's question, President Brenda Bradley Smith believed that a major part of the location selection would hinge on land negotiations. Deputy General Manager Bottoms stated that as far as the water rights go, he believes that BAWA will be able to acquire enough water rights for the new location. Deputy General Manager Bottoms stated that from a real world perspective the City has enough water; however he stated that on paper it shows that the City needs to move forward with the additional plant. Director Benoit asked if there was any thought to making the plant larger than six million gallons a day up front considering all the expansions happening on that side of the City. Engineering Director Pastrana stated that staff looked into that question and he stated that it would be about $20 million more to expand the plant by another 6 million gallons a day capacity. He further stated that this capacity would not be utilized up front, thus costing more to operate. He stated the initial plans for the new plant are to make it modular, so it can be easily expanded. BAWA Board Regular Meeting Minutes June 19, 2013 Page 4 of 4 4. MANAGER'S REPORT a. The next Baytown Area Water Authority Meeting is scheduled for Wednesday, July 17, 2013, at 9:00 A.M. in the City Council Chamber, City Hall, located at 2401 Market Street, Baytown, Texas, 77520. Deputy General Manager Bottoms suggested and stated that there should be a time scheduled for the consultants to come and provide presentations for the new BAWA Plant. 5. ADJOURN With there being no further business to discuss, President Bradley Smith adjourned the June 19, 2013, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:28 A.M.