* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:19] AFTERNOON EVERYONE. I'D LIKE TO WELCOME YOU TO THIS REGULAR MEETING OF THE BAYTOWN AREA WATER AUTHORITY. CALL THE MEETING TO ORDER AND ANNOUNCE THAT WE DO HAVE A QUORUM, UM, WITH, UH, TWO OF OUR MEMBERS ON ZOOM. UM, OUR FIRST THREE OF OUR MEMBERS ON ZOOM. I'M SO SORRY, I'M SO SORRY. I LEFT OUT, UH, BRANDON AND MIKE AND FRANK, OR YOU CAN PICK WHICH ONE I LEFT OUT. , OUR FIRST ORDER [a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on January 20, 2021. ] OF BUSINESS IS TO CONSIDER APPROVING THE MINUTES OF THE REGULAR MEETING HELD ON JANUARY 20TH, 2021. DO I HAVE A MOTION? I MOVE. MOTION. DO I HAVE A SECOND? SECOND. SECOND. SECONDED BY FRANK. UM, ARE THERE QUESTIONS OR DISCUSSION? HEARING NONE, I WILL, UH, CALL FOR THE VOTE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? LIKE, SO. AYE, THE MOTION CARRIED UNANIMOUSLY. NEXT, WE WILL [b. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on March 17, 2021. ] CONSIDER APPROVING THE MINUTES OF THE REGULAR MEETING HELD ON MARCH 17TH, 2021. SO MOVE AGAIN. HAVE A MOTION FROM MIKE. DO I HAVE, I'LL SECOND FRANK SECONDS. UM, ARE THERE QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, UH, SAY AYE. AYE. OPPOSED? LIKE, SIGNED THE MOTION CARRIED UNANIMOUSLY. NEXT, WE WILL [a. Consider a resolution authorizing an Agreement for Consulting Services with Carollo Engineers, Inc., for a Baytown Area Water Authority (BAWA) Impact Fee Study.] CONSIDER A RESOLUTION AUTHORIZING AN AGREEMENT FOR CONSULTING SERVICES WITH COLO ENGINEERS, INCORPORATED FOR A BAYTOWN AREA WATER AUTHORITY IMPACT FEE STUDY. GOOD AFTERNOON. UH, MADAM PRESIDENT AND BOARD, THIS ITEM CONSIDERS AUTHORIZING A PROFESSIONAL SERVICES CONTRACT WITH COROLLA ENGINEERS TO CONDUCT AN IMPACT FEE STUDY FOR BYLAW. AN IMPACT FEE IS A ONE-TIME PAYMENT, UH, IMPOSED ON A PROPERTY DEVELOPER MEANT TO OFFSET THE FINANCIAL IMPACT OF NEW DEVELOPMENT, WHICH THAT, UH, NEW DEVELOPMENT PLACES ON PUBLIC INFRASTRUCTURE. CITY OF BAYTOWN CURRENTLY CHARGES WATER AND SEWER IMPACT FEES, UH, TO ENSURE THAT THE COST OF UTILITY UPGRADES IS SHARED BETWEEN EXISTING RATE PAYERS AND NEW DEVELOPMENT. CARLO HAS STARTED THIS WORK AND, UH, IS IN THE PROCESS OF COMPLETING IMPACT FEE STUDY FOR THE CITY. AND IN LOOKING AT BAY TOWN'S IMPACT FEE VERSUS IMPACT FEES CHARGED BY PIERCE CITIES, IT WAS NOTED THAT, UH, BAYTOWN IS CHARGING FAR LESS THAN THE PIER CITIES. UH, BIG PART OF THIS REASON IS BECAUSE THE CITY CANNOT INCLUDE COSTS ATTRIBUTED TO BAA SINCE BAA IS A SEPARATE ENTITY. AND SO THE EXISTING RATE PAYERS ARE PAYING FOR ALL THE COST OF EXPANSION OF THE SYSTEM RELATED TO WATER PRODUCTION. UH, SO STAFF WOULD LIKE TO STUDY THE POTENTIAL, UH, FOR BIO TO IMPOSE IMPACT FEES AND PRESENT THE FINDINGS TO THE BOARD. THE SCOPE OF THE WORK WILL INCLUDE A BIO SPECIFIC LAND USE, UH, ASSUMPTION PLAN, WHICH WILL ILLUSTRATE THE GROWTH PROJECTIONS AND EXISTING AND FUTURE CAPACITY NEEDS. IT'LL IDENTIFY, UH, BIO CAPITAL IMPROVEMENT PROJECTS THAT ARE ELIGIBLE FOR IMPACT FEE FUNDING. IT'LL IDENTIFY CAPACITY REQUIREMENTS REQUIRED TO MEET THE PROJECTED GROWTH NEEDS OVER THE STUDY PERIOD, AND IT WILL COMPARE WITH, UH, SIX PEER WATER UTILITIES, UH, FOR COMPARISON OF THEIR IMPACT FEES. THE CONSULTANT WOULD THEN, UH, PRESENT THE FINDINGS OF THE STUDY TO THE BOARD, UH, AND IF THE BOARD RECOMMENDS THAT WE PROCEED, THE RECOMMENDATION WOULD BE TAKEN TO, UH, P AND Z FOR PUBLIC MEETINGS AND CITY COUNCIL FOR FINAL APPROVAL. SO STAFF RECOMMENDS APPROVAL OF THIS CONTRACT IN THE AMOUNT OF $59,921. ALL RIGHT, THANK YOU. DO I HAVE A MOTION? I'LL MAKE THE MOTION. ALL RIGHT. I HAVE A MOTION. I'LL SECOND FRANK'S MOTION. OKAY. A MOTION AND A SECOND. ARE THERE QUESTIONS OR DISCUSSION? UM, 59,000, NOT KNOWING HOW MUCH WORK THERE REALLY IS INVOLVED IN IT, BUT THAT, THAT SOUNDS HIGH. AM I, AM I WRONG, FRANK? WELL, IT WELL, YOU HAVE EVERYTHING SOUNDS HIGH, BUT, OR YOU TALKING TO THE OTHER FRANK? SORRY. [00:05:01] YEAH. . UH, YES SIR. WE'VE LOOKED AT THEIR SCOPE OF WORK AND THEY HAVE TO DO A LOT OF, UH, PLANNING WORK AND LOOKING AT THE LAND USE, UH, FOR THE ENTIRE SERVICE AREA AND, UH, DO PROJECTIONS ON GROWTH. UH, LOOK AT OUR CAPITAL IMPROVEMENT PLAN AND PUT THOSE INTO A, A RATE OR IMPACT FEE STUDY MODEL AND THEN, UH, PRODUCE A REPORT RECOMMENDATIONS AND, YOU KNOW, BE AT THE PUBLIC MEETINGS. SO THERE IS, UH MM-HMM . WE, WE, WE FEEL THE CHARGE IS REASONABLE. YES. AND, AND I WOULD ECHO THAT AS A PROFESSIONAL ENGINEER WHO SPENT HER CAREER IN THE INFRASTRUCTURE PRACTICE AREA, UM, I THINK THAT IT SEEMS LIKE A REASONABLE AMOUNT OF MONEY. OKAY. SO, SO NOT ONLY ARE THEY, THEY LOOKING AT THE PLANTS, THEY'RE LOOKING AT THE WHOLE WATER DELIVERY SYSTEM. IS THAT, IS THAT WHAT YOU SAID? SO THEY'RE CURRENTLY DOING A IMPACT FEE, IMPACT FEE STUDY AND RATE STUDY FOR THE CITY, BUT THE CITY CANNOT INCLUDE THE, YOU KNOW, THE COST OF BA'S UH, INFRASTRUCTURE OR IMPROVEMENTS. OKAY. WITHIN THAT. SO WE, WE JUST NOTICED THAT THERE WAS A GAP THERE AND UH, SINCE BILE WAS A SEPARATE ENTITY, WE, THE CITY CANNOT COLLECT IMPACT FEES RELATED TO THE WATER PRODUCTION INFRASTRUCTURE. AND THAT'S WHY, UH, THE IMPACT FEES THAT THE CITY IS CHARGING IS MUCH LESS THAN, YOU KNOW, PURE CITIES WHO, WHO INCLUDE THAT WATER PRODUCTION COMPONENT. SO ARE THEY GONNA LOOK AT BOTH PLANTS OR PRIMARILY YES. YES, SIR. ALL, ALL OF, OKAY. BECAUSE I, I WOULD, I WOULD HOPE THEY'D LOOK AT BOTH, EVEN THOUGH WE DIDN'T HAVE AS MUCH AT THE EAST, UH, THE NEW EAST PLANT, BUT, YOU KNOW, THERE'S STILL SOME THINGS THAT COULD PROBABLY BE DONE TO INCREASE THE RELIABILITY AS WELL. WELL, IT, IT'S, IT'S JUST LOOKING AT THE COST. UH, AND, AND PREDOMINANTLY IT WOULD BE THE NEW PLANT, UH, COST. AND SO WHAT YOU'RE LOOKING AT IS HOW MUCH, UH, COST YOU CAN DISTRIBUTE TO NEW DEVELOPMENT. SO THEY WOULD PAY A ONE-TIME FEE WHENEVER THEY WOULD CONNECT TO THE SYSTEM. AND THAT FEE OFFSETS THE COST OF HAVING TO EXPAND THE SYSTEM TO PROVIDE, YOU KNOW, CAPACITY FOR THAT GROWTH. 'CAUSE RIGHT NOW IT'S JUST BORNE BY THE EXISTING CUSTOMERS WHO ARE HAVING TO PAY FOR THAT GROWTH. EVEN THOUGH THEY'RE NOT PART OF THAT GROWTH, THEY'RE HAVING TO FUND THAT GROWTH. SO, SO THIS TRIES TO, YOU KNOW, UM, ALLOCATE THE COST TO THE, TO THE CUSTOMERS WHO ARE CAUSING THE COST. AND UM, DO WE FEEL THAT, UH, WELL YOU'VE ALREADY SAID THIS WILL PUT US CLOSER TO PEER. UM, DO YOU THINK IT WILL DISCOURAGE IN ANY SIGNIFICANT WAY DEVELOPMENT? UM, I MEAN THAT, THAT WOULD BE PROBABLY AN OPINION REALLY. I MEAN, THE KIND OF OUTSIDE MY LANE. YEAH, MIKE, THIS IS NICK. UM, THE, THE PIERS WE'VE LOOKED AT ARE ALSO FAST GROWING CITIES. SO, YOU KNOW, I DON'T THINK THERE WOULD BE ANY IMPACT THERE. UM, 'CAUSE ANY, ANY DEVELOPER, ANY HOME BUILDER IS USED TO PAYING A HIGHER FEE THAN THEY'RE PAYING HERE IN BAYTOWN ALREADY. OKAY. SO IT JUST KIND OF BRINGS US IN LINE AND IT'S A REVENUE SOURCE AND LEGITIMATE REVENUE SOURCES ARE WHAT WE SHOULD BE GOING FOR. CORRECT? CORRECT. AND, AND AGAIN, YOU KNOW, FRANK'S EXAMPLE OF OF BWA EAST, SO CURRENTLY WE BUILT IT AND IT'S BEING FUNDED 100% BY EXISTING RATE PAYERS BASICALLY. SO YOU'VE GOT SOMEONE WHO, YOU KNOW, HAS NO IMPACT ON THAT, UH, NEED FOR A NEW PLANT THAT'S PAYING FOR IT. RIGHT. IDEALLY YOU'D LIKE TO HAVE NEW DEVELOPMENT PAY FOR THEIR PORTION OF THAT. UM, AND THAT'S ALL WE'RE TRYING TO DO WITH THIS. OKAY. AND STAFF FEELS THAT THE 59,000 IS A, A FAIR AND REASONABLE FEE FOR THIS STUDY? YES SIR. OKAY, COOL. THANK YOU. AND LIKE I SAY, WE WOULD BRING THE RESULTS BACK TO THE BOARD AND YOU CAN, YOU KNOW, ADVISE US IF YOU'D LIKE TO PROCEED OR NOT. ALRIGHT. THAT'S ALL I'VE GOT, MADAM CHAIRMAN. ALL RIGHT. THANK YOU FRANK. BRANDON, DO YOU HAVE ANY QUESTIONS? NO. SO THIS, THIS SOUNDS LIKE THIS IS DIFFERENT THAN THE UH, THE COLD WEATHER STUDY, CORRECT? THAT'S CORRECT. CORRECT. YES. OKAY. IT IS. I DON'T HAVE ANY, I DON'T HAVE ANY MORE QUESTIONS. ALRIGHT, THANK YOU. ALRIGHT. IF THERE ARE NO FURTHER QUESTIONS OR DISCUSSION, UH, [00:10:01] I WOULD UH, ENTERTAIN, UH, THE VOTE. SORRY, I GOT SIDETRACKED THERE FOR A SECOND. UM, CALL FOR THE VOTE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED LIKE SIGN THE MOTION CARRIED UNANIMOUSLY. NEXT, WE'LL RECEIVE [a. Receive the Baytown Area Water Authority’s Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2021.] THE AUTHORITIES QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING MARCH 31ST, 2021. GOOD AFTERNOON, MADAM PRESIDENT AND BOARD. FIRST I WANT TO INTRODUCE MYSELF. MY NAME IS MONEY O MARK. I'M THE CONTROLLER HERE IN THE FINANCE DEPARTMENT. AND SO I JUST WANT TO TAKE A MINUTE OR TWO OF YOUR TIME JUST TO GO OVER THE QUARTERLY FINANCIALS ENDING IN MARCH 31ST. AND SO AS WE TURN TO THE FIRST PAGE, YOU'LL SEE AT THE TOP WE HAVE OUR OPERATING SECTION, WHICH WE'VE NOW SPLIT UP INTO TWO DIFFERENT SECTIONS OPERATING IN CIP, JUST TO PROVIDE LESS PAGES AND MORE INFORMATION AT THE SAME TIME. AND SO AS YOU LOOK AT YOUR REVENUES, YOU'LL NOTICE THAT AS A WHOLE, THEY'RE IN LINE WITH BUDGET. ALSO, I WANNA POINT OUT THAT THE WATER SALES OTHER AREA IS A, IS A FEW PERCENTAGES DOWN, BUT THAT'S ONLY BECAUSE OUR HARRIS COUNTY WATER DISTRICT NUMBER ONE, WAS A LITTLE BIT BELOW EXPECTED FOR THE FIRST THREE MONTHS, BUT THE PAST THREE MONTHS HAVE BEEN MUCH BETTER. AND SO AS WE LOOK AT THE EXPENDITURES BELOW THAT, YOU'LL NOTICE THAT WE'RE BELOW BUDGET, WHICH IS ALSO A GOOD THING. BUT I ALSO WANT TO POINT OUT THAT YOUR PERSONNEL SERVICES ARE A BIT DOWN BECAUSE WE HAVE A COUPLE VACANCIES SUCH AS THE SUPERINTENDENT, OPERATIONS COORDINATOR, AND ALSO A FEW OTHER, UM, POSITIONS. MAINTENANCE IS A BIT UP THAT'S, THAT'S HIGHER THAN EXPECTED BECAUSE WE HAD A RADIATOR REBUILD FOR A GENERATOR TWO, AND THEN CAPITAL OUTLAY. I JUST WANNA POINT OUT THAT WE PURCHASED A FORKLIFT AND SO THE SECTION, SECOND SESSION RATHER THE CAPITAL IMPROVEMENT PROGRAM ONLY CONSISTS OF JUST THE MAJOR, MAJOR PROJECTS THAT WE WORK ON AT THIS TIME BEING THE CHEMICAL FEED BY EAST AND FILTER SCOUR. AND SO AS I TURN OVER TO THE QUARTERLY INVESTMENT REPORT, I JUST WANT POINT OUT HERE THAT OUR QUARTERLY INTEREST EARNINGS ARE $1,915 AND 45 CENTS. THANK YOU. ALL RIGHT, THANK YOU. DOES ANYONE HAVE QUESTIONS? NO MA'AM. NO. ALRIGHT. THANK YOU VERY MUCH. THANK YOU. UM, NEXT WE'LL RECEIVE [b. Receive an update regarding the Baytown Area Water Authority Chemical Feed Project.] AN UPDATE REGARDING THE AUTHORITIES CHEMICAL FEED PROJECT. HELLO. GOOD AFTERNOON BOARD. IF YOU BEAR WITH ME JUST A SECOND WHILE I BRING THE PRESENTATION UP. ALL RIGHT. CAN I BE HEARD? SO THIS IS THE MONTH OF APRIL. THIS WILL BE THE LAST REPORT ON THE PROJECT. WE JUST WANTED TO BRING EVERYTHING TO A KIND OF A, A NICE FINAL RESTING PLACE. WE ARE AT FINAL COMPLETION. IT'S THE LAST STEP AFTER SUBSTANTIAL COMPLETION. AND HERE'S SOME KIND OF ENDING NUMBERS. UH, THERE WILL BE A SMALL, UH, AMOUNT OF MONEY THAT IS RETURNED TO THE FUND. UH, WE DO HAVE SOME PLANS FOR THAT SMALL AMOUNT OF MONEY THAT WOULD BE, UM, DEALING WITH SOME OF OUR COLD WEATHER ITEMS, BUT WE'LL BRING THOSE, UH, FORWARD, UM, IN THE FUTURE. JUST A SUMMARY OF THE, UH, FOUR CHANGE ORDERS ON THE PROJECT. ALL UNDER $50,000 IN TOTAL, WE ARE AT 382 DAYS AND WE HAVE FINAL COMPLETION. SO WHAT DO WE DO SINCE THE LAST TIME WE TALKED IN THE LAST MONTH? SO THIS IS JUST A LITTLE SUMMARY OF ALL THE FINAL COMPLETION ITEMS. SO ONCE THEY, UM, DO THE PUNCH LIST, SOME ITEMS YOU MIGHT POP UP OR THERE'S SOME ITEMS THAT NEED FURTHER ADDRESSING. AND ONE OF THOSE ITEMS, UH, WAS OUR, OUR SLUDGE GALLERY WHERE WE NOTICED A LITTLE BIT OF WEEPING COMING BACK THROUGH THE, THE WALLS. AND WE AUTHORIZED A LITTLE BIT OF WORK TO, UH, FURTHER, UH, GROUT AND EPOXY GROUT, THOSE AREAS. SO THIS IS JUST A LITTLE BIT OF A LITTLE MORE, UH, PHOTOS ON THAT. AND THEN THIS IS THE RESTORATION WORK THAT THE CONTRACTOR HAS DONE TO HYDRO MULCH. ANY AREAS THAT WERE DISTURBED. AND OF COURSE IT'S ALWAYS GOOD TO HAVE, UH, FULL COVER AT THE END OF THE JOB THAT WE CAN GO AND MAINTAIN THAT. AND WITH THE SPRING WEATHER, EVERYTHING SHOULD BE, UM, GROWING GREEN. AGAIN, THIS IS JUST, UH, ONE ITEM THAT WAS REPLACED. WE NOTICED SOME KIND OF MOISTURE AND THAT WAS, UM, THAT ITEM WAS REPLACED. IT'S NICE, ALWAYS NICE TO HAVE THAT AS A, WITHIN THE CONTRACT, UH, CONSTRUCTION RATHER THAN A WARRANTY ITEM. SO WE'RE GLAD THAT THE CONTRACTOR WAS ABLE TO WORK WITH US. SO WHAT'S THE NEXT STEP, UM, IN TERMS OF THIS PROJECT? WE'LL BE BACK NEXT, UH, MONTH AND WE'LL BE, UH, REQUESTING FINAL ACCEPTANCE AND APPROVING FINAL PAYMENT FOR THE PROJECT. AND THEN WE'LL BEGIN THE WORK OF CLOSEOUT AND THAT'S, UH, PUTTING OUR RECORD DOCUMENTS TOGETHER AND MAKING SURE THAT THOSE ARE ON [00:15:01] FILE FOR THE FUTURE. AND THAT'S THE END OF MY REPORT. THANK YOU. DOES ANYONE HAVE QUESTIONS? HOW MUCH WILL FINAL PAYMENT BE AT THIS POINT? OH, GOTTA BRING UP MY SCREEN. I BELIEVE IT WAS ABOUT THREE POINT 11 MILLION. LET ME DO THAT REAL QUICK. SO THE, ACTUALLY THAT WAS THE FINAL TOTAL OF AMOUNT, BUT THE FINAL PAYMENT WILL BE JUST A LITTLE BIT LESS THAN THAT. SO THIS IS LARGELY THE RETAINAGE OF UM, 5% THAT WAS HELD ON THE PROJECT. SO I DIDN'T HAVE THAT IN THE SLIDE ACTUALLY. UH, WE'LL BE HAPPY TO PROVIDE THAT TO YOU AHEAD OF THE MEETING IF YOU LIKE. WE HAVE THAT NOW PROBABLY IN HAND. SO WE CAN DO THAT FOR NEXT, FOR NEXT MEETING. THAT'D BE FINE. YES SIR. ANY OTHER QUESTIONS? NO. ALRIGHT. WELL THANK YOU VERY MUCH. UM, THAT BRINGS [4. MANAGER'S REPORT] US TO THE MANAGER'S REPORT. OKAY. SO JUST A COUPLE ITEMS REAL QUICKLY. UM, SO THE BWA EAST PLANT, UM, WE'RE CLOSE. UM, WE'VE GOT A COUPLE ITEMS WE'RE FINISHING UP AND WE SHOULD HEAR FROM TCEQ HERE, UM, HOPEFULLY IN THE NEXT COUPLE WEEKS. SO YOU SHOULD BE HEARING FROM US, UM, PROBABLY IN A COUPLE WEEKS TIME ON SCHEDULING A RIBBON CUTTING. SO WE'VE GOT A FEW ITEMS TO FINISH UP THOUGH, SO DON'T WANT TO GET OVERLY OPTIMISTIC QUITE YET. BUT, UM, SO LOOKING AT YOUR, YOUR NEXT MEETING DATE IS MAY 19TH. SO DEPENDING ON WHAT ITEMS WE HAVE, WE MAY LOOK AT CANCELING OR KIND OF MERGING THAT INTO THE RIBBON CUTTING. UM, WE'LL, WE'LL LET YOU ALL KNOW THOUGH HERE OKAY. UM, OVER THE NEXT COUPLE WEEKS. AND THEN JUNE YOU WILL RECEIVE YOUR BUDGET AND WE'LL HAVE YOUR BUDGET DISCUSSIONS IN JUNE. SO THAT'S KIND OF THE LOOK FORWARD OVER THE NEXT COUPLE MONTHS. ALRIGHT. THANK YOU VERY MUCH. UM, AS THERE'S NO FURTHER BUSINESS TO COME, UH, ON THIS AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN. SO MOVED. SO MOVED. MOTION. DO I HAVE A SECOND? SECOND, SECOND. ALL THOSE IN FAVOR? AYE. THANK YOU. SEE YOU NEXT TIME. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.