2013 08 21 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August 21, 2013
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a
Regular Meeting on Wednesday, August 21, 2013, at 9:03 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
Dan Mundinger
Vice - President
Wayne Baldwin
Secretary
Brandon Benoit
Director
Mike Wilson
Director
Robert D. Leiper
General Manager
Ignacio Ramirez, Sr.
General Counsel
Leticia Brysch
Assistant Secretary
President Bradley Smith convened the August 21, 2013, Baytown Area Water Authority
(BAWA) Board Regular Meeting with a quorum present at 9:03 A.M., all members were present.
1. RECOGNITIONS
a. Recognize Board Member Dan Mundinger for his years of service to BAWA and the
citizens of Baytown.
President Bradley Smith recognized Board Member Dan Mundinger for his years of service to
BAWA.
2. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority (BAWA)
Board Meeting held on July 17, 2013.
A motion was made by Director Mike Wilson and seconded by Director Brandon Benoit
approving the July 17, 2013, BAWA Board Regular Meeting minutes. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, President Brenda
Bradley Smith, Director Mike Wilson
Nays: None
Approved
BAWA Board Regular Meeting Minutes
August 21, 2013
Page 2 of 5
3. PUBLIC HEARINGS
a. Conduct a public hearing concerning the Baytown Area Water Authority (BAWA)
2013 -14 Proposed Budget.
At 9:13 A.M., President Bradley Smith opened and conducted a public hearing concerning the
Baytown Area Water Authority (BAWA) 2013 -14 Proposed Budget.
General Manager Leiper stated that the proposed 2013 -14 budget is a total of $11,443,503 based
on estimated revenues of $11,330,659 for an average of $12.25 million gallons a day. He stated
that the existing rate structure of $2.35 per 1,000 gallons for customers of the city of Baytown
and $2.39 for customers outside of the city limits of Baytown will increase to $2.53 and $2.57
which is a 7 1/2% increase and is in line with the rate study that was approved by the BAWA
Board in 2010. He stated that the increased cost of operations includes debt service, purchase of
raw water, and reserve for future capital funds. He stated that the rate increase is expected to
generate $804,825. He stated that the budget proposes to begin preliminary engineering for the
second Baytown Water Authority Plant - BAWA East and that the exact location of the plant will
be determined through the preliminary engineering design work. He stated that the estimated
costs of the first phase of the plant are $30 million and this budget includes $2.5 million for the
design. He further stated that the budget calls for the upgrades to improving the Supervisory
Control Data and Acquisition System (SCADA), includes $525,000 for improvements to the
equipment, improvements to the chlorine and maintenance room, reconfiguring and isolating
some of the parts to the chlorine scrubber system, and adds a plant operator position and a plant
maintenance operator position. He stated that the City of Houston submitted notification of a
3.6% rate increase effective April 01, 2013 for untreated water; therefore their rate went from
$.59 cents to $.61 cents per 1,000 gallons.
With there being no one registered to speak, President Bradley Smith adjourned the public
hearing at 9:19 A.M.
4. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing a 7.5% rate increase effective October 01, 2013,
as specified in the Final Rate Adjustment Plan adopted February 17, 2010, and amended
Plan adopted July 21, 2010.
A motion was made by Secretary Wayne Baldwin and seconded by Director Mike Wilson
approving Resolution No. 2013 -07. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, President Brenda
Bradley Smith, Director Mike Wilson
Nays: None
Approved
BAWA Board Regular Meeting Minutes
August 21, 2013
Page 3 of 5
RESOLUTION NO. 2013 -07
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING A SEVEN AND ONE -HALF
PERCENT (7.5 %) RATE INCREASE EFFECTIVE OCTOBER 1, 2013, AS
SPECIFIED IN THE FINAL RATE ADJUSTMENT PLAN ADOPTED
FEBRUARY 17, 2010, AND AMENDED PLAN ADOPTED JULY 21, 2010;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
b. Consider a resolution adopting the Baytown Area Water Authority (BAWA) 2013-
14 Budget.
General Manager Leiper stated that the Baytown Area Water Authority (BAWA) 2013 -14
Budget is for $11,443,503 in expenditures with estimated revenues of $11,397,197 leaving an
estimated ending working capital reserve of $4,350,464.
A motion was made by Director Mike Wilson and seconded by Secretary Wayne
Baldwin approving Resolution No. 2013 -08. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, President Brenda
Bradley Smith, Director Mike Wilson
Nays: None
Approved
RESOLUTION NO. 2013-08
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING
FISCAL YEAR, BEGINNING OCTOBER 1, 2013, AND ENDING
SEPTEMBER 30, 2014; MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
5. DISCUSSIONS
a. Discuss the Baytown Area Water Authority East Surface Water Treatment Plant
Feasibility Report.
b. Discuss the Baytown Area Water Authority (BAWA) proposed 6 MGD Surface
Water Treatment Plant.
General Manager Leiper recommended that agenda items 5.a. and 5.b. be considered together.
BAWA Board Regular Meeting Minutes
August 21, 2013
Page 4 of 5
Engineering Director, Jose Pastrana presented an overview of the report and stated that the city is
anticipating growth, as well as experiencing a lack of water production capacity. He stated the
TCEQ notified the city that the water production was lower than what it should be. He stated that
a consultant was hired to do the analysis and based on the results of the analysis, staff was able to
justify to TCEQ that the City's production should be no more than 22 million gallons per day,
justifying the capacity. He stated that excess capacity is less than a million and a half gallons
after the city's needs are met and does not allow for growth or errors in the operation. He stated
that TCEQ's requirement for ACR is .6 gallons per minute per connection, and the city's ACR
allows to produce .36 gallons per minute per connection. He stated that according to TCEQ, the
city is ok for today, but the City's analysis results show that we are not ok for tomorrow so the
consultant, KIT Professionals was hired to do the preliminary analysis of options to expand. He
stated that the recommendation was to expand the production capacity. He stated that the plant
will be connected to the overall infrastructure and distribution system which will service
everyone in the City of Baytown. He further stated that the new plant will provide an increase in
pressure distribution and better flow throughout the system, as well as, provide as a backup to the
existing plant. He stated that the cost is estimated at $30 million with the estimated costs of the
design at 10% of that.
Deputy General Manager Bottoms stated that because of the way the rate structure is in place and
combined with future debt capacity that will become available in 2020 and 2023, there should be
sufficient funds available to cover the costs for the plant. He further stated that staff will also be
looking into alternative strategies to help offset the costs for the plant.
During further discussion, there was an inquiry in regards to the possible location and who the
partners might be. General Manager Leiper stated that there is a location site owned by the
Chambers Liberty Navigation District and another location within the Chambers County
Improvement District #1.
Director Benoit inquired if there was a plan in place that would accommodate the growth of
customers prior to the new plant becoming operational. General Manager Leiper stated that there
is no anticipation of running out of water before the plant becomes available and that staff is
looking into some conservation measures to cut the down on the demand which adds capacity to
the plant.
President Bradley Smith requested that a fact sheet detailing information regarding the proposed
new BAWA plant be created and recommended that each member add any other questions to the
sheet if necessary.
6. REPORTS
a. Receive the RFQ Packets for the Baytown Area Water Authority - 6 MGD Surface
Water Treatment Plant.
BAWA Board Regular Meeting Minutes
August 21, 2013
Page 5 of 5
General Manager Leiper stated that the requests for qualifications were sent out for the design of
the plant and four (4) were received and will be presented at the next meeting. He stated that the
consultants will have 30 minutes to present their presentations.
7. MANAGER'S REPORT
General Manager Leiper presented the monthly capacity report and stated that the distribution
report reflects an average of between 11 and 14 million gallons of water per day.
ADJOURN
With there being no further business to discuss, President Bradley Smith adjourned the August
21, 2013, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:51 A.M.
Leticia Brysch,
City of Baytown