[00:00:20]
LET CALL THIS MEETING'S ORDER
UH, IN FACT, WE'VE GOT ALL FOUR OF US WITH ONE VACANCY STILL NOT FILLED RIGHT, NICK? CORRECT.
HAVING CALLED US TO ORDER, LET'S GO TO, UH, ITEM ONE A AND CONSIDER APPROVING
[a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on May 19, 2021. ]
THE MINUTES OF THE BAY AREA WATER AUTHORITY REGULAR MEETING HELD ON MAY 19TH, WHICH IS IN YOUR PACKET.I HAVE SCOURED THEM AND THEY LOOK FINE TO ME, BUT YOU DON'T GET TO VOTE.
SECOND, I HAVE A MOTION TO SECOND ANY DISCUSSION, IF NOT ALL IN FAVOR? AYE.
ANY OPPOSED? MINUTES ARE APPROVED.
LET'S GO TO OUR PROPOSED RESOLUTIONS.
UH, WE ACTUALLY HAVE THREE OF THEM TODAY.
UH, AND EACH OF THEM, I BELIEVE, WILL CALL FOR A VOTE.
AND THE FIRST, UH, UH, ITEM TWO A IS TO CONSIDER
[a. Consider a resolution authorizing the Second Amendment to the Water Supply Contract - Treated Water with Harris County Water Fresh Water Supply District No. 27. ]
RE CONSIDER RESOLUTION AUTHORIZING THE SECOND AMENDMENT TO THE WATER SUPPLY CONTRACT TREATED WATER WITH HARRIS COUNTY FRESHWATER SUPPLY DISTRICT NUMBER 27, AND IF STAFF WOULD EDUCATE US.UM, THIS ITEM, UH, HARRIS COUNTY, UH, FRESHWATER SUPPLY DISTRICT NUMBER 27, UM, IS IN THE PROCESS OF DOING SOME DEVELOPMENT WITHIN THEIR DISTRICT.
AND THEY HAD REACHED OUT TO US TO REQUEST SOME ADDITIONAL WATER CAPACITY TO ALLOW THEM TO BE ABLE TO PROCEED WITH THAT DEVELOPMENT.
UM, THIS ITEM, UH, IS GRANTING THEM, UH, IF YOU GUYS SO CHOOSE, UH, GRANTING THEM THAT ADDITIONAL CAPACITY THAT THEY'RE REQUESTING.
AND THAT'S FROM THE 0.5384 TO THE 0.6624 MG DS? THAT IS CORRECT.
ANY QUESTIONS OR DISCUSSION FROM THE BOARD? I MAKE A MOTION.
GOT A MOTION AND A SECOND, UH, HEARING? NO DISCUSSION.
ANY OPPOSED? THE RESOLUTION IS APPROVED.
[b. Consider a resolution to approve the First Amendment to the Consulting Services Agreement with Carollo Engineers, Inc., for the Baytown Area Water Authority East Surface Water Treatment Plant Negotiation Support.]
TO ITEM TWO B.ITEM TWO B, UH, IS TO CONSIDER RESOLUTION TO APPROVE THE FIRST AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH, UH, COROLLO ENGINEERS FOR THE BAY AREA WATER AUTHORITY, EAST SURFACE WATER TREATMENT PLANT NEGOTIATION SUPPORT.
AND I THINK IT'S IMPORTANT TO SAY IT'S FOR THE NEGOTIATION SUPPORT, CORRECT? THAT'S TRUE, SIR.
THIS IS A FIRST OF TWO DIFFERENT TYPES OF CONTRACTS ON, UH, FOR CONSIDERATION TODAY.
THIS CONTRACT IS TO HELP US BRING THE PROJECT TO CLOSEOUT.
SO THERE'S A NUMBER OF ITEMS THAT HAVE TO BE SORTED OUT AND, UM, IN TERMS OF AUDIT OR JUST DIFFERENT SORTS OF, UM, ISSUES TO JUST BRING THE PROJECT TO COMPLETION.
AND WE'D LIKE TO BE ABLE TO, UM, EXTEND THAT CONTRACT JUST A LITTLE BIT IN ORDER TO GET US TO THE FINISH LINE.
SO WE WILL BE ADDING 40,000 TO GET TO A TOTAL OF 64, 872.
SO THIS ACTUALLY, UM, IT INCREASES IT BY 40.
WE STARTED OUT WITH A SMALL CONTRACT OF 28,000.
AND SO THE TOTAL AMOUNT, IF APPROVED TONIGHT, WE'LL BE 64,872.
BRENDA, BRANDON, ANY QUESTIONS FOR US? NO, NO.
GOOD TO GO? THERE WAS ONE MORE ITEM JUST TO ADD, IS IF WE DON'T UTILIZE THESE SERVICES IN TOTAL, THEN THE FUNDS WILL RETURN.
SO IT'S A, IT'S JUST AN TIME AND MATERIALS CONTRACT.
HERE WE, NO, THE DISCUSSION, UH, CALL FOR A MOTION FROM SOMEBODY.
ANY OPPOSED? MOTION IS APPROVED.
[c. Consider a resolution to approve the Third Amendment to the Consulting Services Agreement with Carollo Engineers, Inc., for the Baytown Area Water Authority East Surface Water Treatment Plant Project.]
TWO C, ITEM TWO C IS TO CONSIDER RE RESOLUTION TO APPROVE THE THIRD AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH GUILLO ENGINEERS FOR THE BAY AREA WATER AUTHORITY EAST SERVICE PLANT TREATMENT PLANT PROJECT.ALRIGHT, THIS CONTRACT IS FOR TECHNICAL ASSISTANCE.
SO THERE ARE A NUMBER OF OPERATIONAL CHEMICAL DISINFECTION NEEDS.
SO AS WE MOVE INTO DISTRIBUTION SYSTEM, THERE'S ADJUSTMENTS BOTH MECHANICAL AND OPERATIONALLY.
[00:05:01]
SURE THAT WE DO EVERYTHING, UH, WITH THAT SUPPORT.AND SO THIS JUST AMENDS THE CONTRACT, UM, A LITTLE BIT BY, UM, $25,000.
AND SO THE TOTAL AMOUNT OF THE CONTRACT WILL BE 125,645.
THE STAFF RECOMMENDS APPROVAL.
SO WE HAD HEARD A WHILE BACK THAT WE WEREN'T HITTING THE WATER RATES AS WE EXPECTED.
UM, FROM A THROUGHPUT STANDPOINT, DO EITHER OF THESE, ARE THEY HELPING TO FINE TUNE THE PLANT TO INCREASE CAPACITY? IS THAT YES.
UM, SO FROM A OVERALL STANDPOINT, WE THINK WE ARE MAKING PROGRESS.
AND SO IF THERE WAS A, A TIME TO ADJUST ANY OF THE, THE TREATMENT PROCESS, THIS IS THE TIME TO MAKE SURE THAT WE HAVE THE OVERSIGHT AND, YOU KNOW, JUST MAKE SURE THAT WE HAVE THE, UM, SUBJECT MATTER EXPERTS THAT CAN HELP US DO THAT.
AND SO, BOTH FROM A MECHANICAL OR CHEMICAL DISINFECTION STANDPOINT, THEY'VE BEEN A GREAT ASSISTANT SO FAR.
SO THEY'VE PERFORMED A NUMBER OF DIFFERENT, YOU KNOW, TESTING DUTIES OR EVEN TRAINING OF STAFF THUS FAR.
AND SO THIS IS THE FINAL PUSH TO GET US TO WHERE WE CAN THEN OPERATE HOPEFULLY VERY NEARLY IN AUTOMATIC MODE.
AND WHAT YOU'RE ASKING ABOUT FRANK, THAT THAT IS THIS CONTRACT, OKAY.
AND THIS IS, THIS IS SOMETHING THAT JONES AND CARTER WOULDN'T BE DOING AT ALL, IS THAT CORRECT? IS, UH, IT DEPENDS.
UM, MAYBE IN A NORMAL CASE THEY, THEY MIGHT BE, BUT, UM, NOT WITH OUR CIRCUMSTANCES.
THE, THE EXPERTISE THAT COROLLA HAS BROUGHT HAS BEEN VERY HELPFUL FOR US.
BRENDA, BRANDON, ANY QUESTIONS? NO, I'D CALL FOR A MOTION, PLEASE.
[a. Receive and discuss the Baytown Area Water Authority's Fiscal Year 2021-22 Proposed Budget.]
ITEM THREE A ON OUR AGENDA, UH, THREE A SAYS TO REVIEW AND DISCUSS THE BARRY WATER AUTHORITY FISCAL YEAR 20 21, 20 22 PROPOSED BUDGET.AND I'LL REMIND US THIS IS DISCUSSION AND, UH, RECEIVING OF INFORMATION, BUT NO ACTION, NICK.
SO, GOOD AFTERNOON BOARD MEMBERS.
UM, WHAT I WANTED TO START WITH WAS JUST GIVEN KIND OF A HIGH LEVEL SUMMARY OF WHAT YOU WILL SEE IN THIS BUDGET.
UM, THE FIRST THING IS THAT IF YOU RECALL LAST YEAR, COO DID A BA RATE STUDY FOR US.
UM, IT WAS THE FIRST ONE WE HAD DONE IN, IN QUITE SOME TIME.
AND WHAT THEY DID IN THAT WAS LOOKED AT NOT ONLY WHAT ARE THE CURRENT FINANCIAL NEEDS, BUT, YOU KNOW, PROJECTING OUT FIVE, 10 YEARS, WHAT ARE THE FINANCIAL NEEDS OF, UM, OF BAWA.
SO IN DOING THAT, THEY, THEY PROJECTED OUT WHAT RATES NEEDED TO LOOK LIKE IN THE FUTURE.
SO WHAT WE'VE DONE IN THIS BUDGET IS IMPLEMENTED THEIR RECOMMENDATION FOR FISCAL YEAR 22.
UM, AND INCLUDED IN THAT IS A, UM, IT'S NOT THE SAME RATE INCREASE TO THE CITY OF BAYTOWN AS IT IS FOR THE OTHER CUSTOMERS OF BAWA.
PART OF THAT WAS, UM, WHEN THEY DO THEIR ANALYSIS ON RATES, THEY DO WHAT'S CALLED COST OF SERVICE, AND THAT IS WHO SHOULD BE PAYING FOR THE REVENUE INCREASE THAT'S NEEDED.
BASED ON THAT, THEY WERE SHOWING THAT THE NON-CITY OF BAYTOWN CUSTOMERS WERE BEING UNDER BILLED OR UNDERCHARGED.
AND SO THEIR INCREASE IN FY 22 WOULD BE HIGHER THAN WHAT THE CITY OF BAYTOWN WOULD BE.
UM, YOU'LL SEE IF YOU'RE VIRTUAL YOU, YOU DON'T SEE IT.
UM, BUT I WILL GET THAT OUT TO THE TWO OF YOU.
UM, WE HANDED AN AMENDED, AN AMENDED BUDGET TO THE TWO THAT ARE HERE IN PERSON, AND THE CHANGE THAT WAS MADE WAS A CORRECTION TO THE, THE WATER RATES.
UM, AND IT, IT SHOWS WHAT WE, UM, MEANT TO, TO SHOW AS THE, UH, TREATED WATER RATES FOR FY 22.
UM, AND IT SHOWS AGAIN, THE, THE DIFFERENTIAL BETWEEN CITY OF BAYTOWN VERSUS ALL THE OTHER CUSTOMERS OF BAWA.
SO, UM, I WILL GET THAT OUT TO THE TWO OF YOU THAT ARE NOT HERE IN PERSON.
UM, BUT THAT'S, THAT'S THE FIRST THING WITH THE BUDGET IS LOOKING AT WHAT THE RATES WOULD BE.
UM, THE OTHER BIG ITEM WHEN IT COMES TO THE BUDGET IS THERE ARE REALLY THREE BIG CAPITAL PROJECTS THAT ARE NEEDED AT THE MAIN PLANT OVER THE NEXT COUPLE YEARS.
UM, THERE'S REALLY TWO WAYS TO FUND THAT.
YOU CAN CASH FUND THE THREE PROJECTS OR YOU CAN ISSUE DEBT, UM, BASED ON THE, THE COST OF THESE THREE PROJECTS AND REALLY THE NEED TO GET THE PROJECTS MOVING FORWARD.
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INTEREST RATES, WE FEEL LIKE THE MOST PRUDENT, UM, WAY TO FIND FUND THOSE IS TO ISSUE DEBT FOR BALL TO ISSUE DEBT.UM, THOSE THREE PROJECTS COME IN AT, AT ROUGHLY $14 MILLION COMBINED.
UM, SO WE WOULD NEED TO ISSUE ABOUT $900,000, UM, IN DEBT THAT'D BE OVER, OVER 20 YEARS TO, TO FUND THOSE PROJECTS.
UM, IN A MINUTE, FRANK, UH, SEMINO IS GONNA COME UP AND TALK ABOUT THOSE THREE MAJOR PROJECTS.
THE THREE OTHER KIND OF ADDITIONAL CAPITAL PROJECTS THAT WE'RE LOOKING AT THAT WOULD BE CASH FUNDED WOULD BE, UH, THE PLANT WINTERIZATION, WHICH WE'VE, WE'VE TALKED ABOUT BEFORE.
WE ARE STILL GOING TO BE SEEKING GRANT FUNDING.
I THINK THAT'S THE MOST IDEAL SCENARIO.
IF WE CAN GRAB FEDERAL MONEY INSTEAD OF USING LOCAL MONEY, THAT'S ALWAYS BEST.
UM, BUT WE'VE SET UP BAWA TO WHERE IF WE DON'T GET THAT GRANT FUNDING, WE CAN STILL DO THE WINTERIZATION.
WE JUST LIKE TO GET SOMEBODY ELSE'S MONEY FIRST IF WE CAN.
UM, THE ADMINISTRATION BUILDING AT BWA, UM, THE CITY DID A FACILITY MASTER PLAN.
ONE THING WE LOOKED AT WAS WHAT ARE THE A DA AND AND SAFETY NEEDS OF ALL OF OUR FACILITIES.
UM, THERE ARE SOME IMPROVEMENTS THAT ARE NEEDED AT THE BAWA OPERATIONS BUILDING, AND SO WE WOULD LIKE TO DO THAT NEXT YEAR.
THEN THE EAST PLANT TRANSMISSION LINE.
SO BASICALLY GETTING WATER FROM THE EAST PLANT UP BASICALLY UP GRAND PARKWAY TO THE NORTH, UM, PRIMARILY TO INDUSTRIAL CUSTOMERS, UM, THAT WOULD BE PRIMARILY FUNDED BY THOSE USERS, UM, AS THEY WANT TO CONNECT, BUT WE WOULD HAVE A SHARE OF THAT COST.
AND SO, UM, THERE IS CASH SITTING THERE AVAILABLE.
WE DON'T KNOW WHAT EXACTLY THE PRICE WILL BE AND, AND WHEN IT WILL BE NEEDED.
UM, BUT THE MONEY IS AVAILABLE, UH, WHEN THOSE CONNECTIONS ARE NEEDED TO BE MADE.
SO THOSE ARE THE MAJOR PROJECTS WE'RE LOOKING AT.
UM, WITHIN THE BALO FUND, IF WE DO THOSE THREE MAJOR PROJECTS, THERE'S NOT A LARGE CAPITAL PROJECT NEED REALLY UNTIL THE EAST PLANT GETS EXPANDED.
SO IT, IT REALLY GETS US IN A GOOD PLACE AT THE MAIN PLANT FOR, FOR QUITE SOME TIME.
AND OBVIOUSLY THAT LONG TERM HAS A POSITIVE IMPACT ON RATES BECAUSE WE DON'T HAVE A HUGE CAPITAL NEED TO CONTINUE INCREASE INCREASING RATES TO MEET THAT NEED.
SO, UM, I THINK IT SETS UP BAWA IN A, IN A GOOD POSITION FINANCIALLY.
YOU'LL SEE ON THE SLIDE, UM, NEXT YEAR WE WERE, WE WERE OUR, WE WOULD TECHNICALLY BE RUNNING AT A DEFICIT, UM, BUT WE HAVE ENOUGH CASH, UM, ON HAND THAT WE STILL FINISH THE YEAR WITH 3.4 MILLION, WHICH IS 131 DAYS OF, OF OPERATING EXPENDITURES, WHICH IS VERY HEALTHY.
UM, THE CITY'S POLICY IS 60 TO 90 DAYS, SO IT STILL PUTS US IN A, IN A GOOD POSITION.
SO, UM, WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS.
IF YOU DON'T HAVE ANY IMMEDIATELY, THEN I'LL LET FRANK COME UP AND TALK THROUGH THESE THREE MAJOR PROJECTS THAT WE'RE LOOKING AT, AT THE MAIN PLANT.
SO I'M NOT GONNA LET YOU OFF THAT EASY.
SO IT LOOKS LIKE YOU, YOU'VE INCREASED THE RATE DOUBLE FOR THE OUTSIDE OF THE CITY VERSUS UM, THE INSIDE.
AND IT LOOKS LIKE THE RATE THAT WE'RE PROPOSING IS ROUGHLY 5%.
SO THE, YEAH, THE, THE CITY, THE INCREASE TO CITY OF BAYTOWN IS ROUGHLY 5%.
THE OUTER CITY IS, IS ROUGHLY 10%.
SO IT'S ABOUT A 6% ON AVERAGE.
IT'S JUST HOW IT'S SPLIT OUT BETWEEN THE TWO OF THEM.
AND SO I GUESS MY QUESTION IS, IS THIS A ONE TIME HIT OR ARE WE GONNA EXPECT TO HIT 'EM 5% YEAR AFTER YEAR AFTER YEAR TO KEEP UP WITH THIS? OR IS THIS GONNA GET US IN A, IN A GOOD POSITION WHERE WE'RE GONNA BE ABLE TO LEVEL OFF AND, AND, AND BECAUSE IF INFLATION BLOWS UP, THEN THE, THE WATER RATES WITH THE CITY OF HOUSTON ARE GONNA GO UP AS WELL AND WE'RE GONNA BE PASSING THAT ON.
AND THAT'S, THAT'S OBVIOUSLY A CONCERN I HAVE.
I THINK THIS PUTS US IN A GOOD POSITION FOR THINGS THAT WE CAN CONTROL, UM, WHETHER IT'S CAPITAL PROJECTS, EXPANSIONS, YOU KNOW, OUR OWN OPERATING COSTS.
UM, THINGS OUTSIDE OF OUR CONTROL OBVIOUSLY ARE, IS CITY OF HOUSTON RATE.
UM, THAT'S A LITTLE BIT OUT OF OUR HAND.
UM, ALTHOUGH THAT IS A, YOU KNOW, THAT THAT'S MINIMAL IN THE GRAND SCHEME OF RUNNING A WATER SYSTEM.
IT DEPENDS ON HOW MUCH THEY INCREASE IT, BUT THIS PUTS US IN A, IN A GOOD POSITION.
WE WILL NOT SEE, YOU KNOW, A 10% INCREASE IN THE FUTURE IF WE, IF WE DO THIS.
THE OTHER THING WE'RE LOOKING AT IS ON THE, THE CITY SIDE, THE WAY THAT WE ARE BRINGING IN REVENUE AND TRYING TO LESSEN THE BURDEN ON SINGLE FAMILY, IT, IT SETS US UP TO WHERE EVEN WHEN BAWA IMPLEMENTS SAY A 5% RATE INCREASE THIS YEAR, IT'S NOT THAT 5% IS GONNA BE THE INCREASE TO A SINGLE FAMILY HOMEOWNER OR EVEN A MULTI-FAMILY, UM, RESIDENT.
[00:15:01]
SO WE'RE LOOKING AT ALL THOSE FACTORS.OBVIOUSLY THAT KIND OF TRICKLES DOWN, SO IT'S A LITTLE HARD FOR YOU TO SEE IT, BUT, UM, WE KIND OF OVERSEE BOTH OF THOSE BUDGETS AND, AND I'M TELLING YOU FROM A WATER RATE STANDPOINT, WE WOULD NOT BE PASSING ON, UM, 5% ON THE WATER SIDE TO OUR, TO OUR CUSTOMERS IN THE CITY.
SO IT'S A LONG ANSWER, BUT WE ARE VERY COGNIZANT OF THE RATES.
I CAN TELL YOU CITY COUNCIL'S VERY COGNIZANT OF WHAT RATES WE'RE CHARGING AND WE ARE WATCHING THAT VERY CLOSELY.
BECAUSE THE MORE OUT OF THE LIMELIGHT WE ARE, YOU KNOW, IT'S THE BETTER GENERALLY.
AND OF COURSE WE ALL PAY THOSE INCREASES OURSELVES, ME, YOU, EVERYBODY ELSE IN, IN A HOUSE.
IS THERE ANY NEGOTIATION CAPABILITY BETWEEN US AND THE CITY OF HOUSTON? KIND OF GOING BACK TO WHAT YOU WERE SAYING IS UNCONTROLLED BECAUSE THAT'S A LONG CONTRACT AND WE'VE BEEN PAYING, IT'S BEEN IN I BET, FOR 20 YEARS OR SO.
I, I DON'T KNOW OFF THE TOP OF MY HEAD HOW MANY YEARS WE HAVE LEFT ON THAT CONTRACT.
UM, AND IF WE HAVE ANY ABILITY TO, TO TO CONTEST, YOU KNOW, THEIR, THE INCREASES THAT THEY PUT PUT ON US, UM, EVEN IF, EVEN IF THEY'RE INFORMAL AS OPPOSED TO FORMAL.
JUST, JUST CURIOUS HOW THAT WORKS.
WE CAN LOOK INTO THAT AND WE'LL, WE'LL GET THAT TO YOU NEXT MONTH WHEN WE MEET.
THE CONTRACT GOES, GOES THROUGH 2040.
WE WON'T WORRY ABOUT IT FOR EXACTLY.
UM,
WE HAVE TO HAVE A CERTAIN AMOUNT OF CAPACITY.
OKAY, NOW WE'VE GOT IT BUILT, WE'VE GOT THAT CAPACITY.
NOW IT LOOKS LIKE WE'RE TRYING TO SELL THAT WATER AS QUICKLY AS WE CAN TO INDUSTRIAL USERS AND, AND BUILD PIPES.
SO IS THAT GONNA, BY DOING THIS, IT'S GOOD TO GET MORE MONEY IN WITH SALES, OBVIOUSLY, BUT IS THAT GONNA FORCE US TO START WITH PHASE TWO AND SPEND ANOTHER 20, 30 MILLION TO BUILD UP THAT CAPACITY? AND ONCE WE HAVE, HAVE SOLD THAT OUT, DEPENDS ON THE TYPE OF USER THAT WE'RE, WE'RE LOOKING AT.
UM, SOME OF OUR INDUSTRIAL DISTRICTS ARE LOOKING AT SOME MAJOR USERS, UM, YOU KNOW, UPWARDS OF TWO, 3 MILLION GALLONS A DAY.
OBVIOUSLY WHEN OUR EAST PLANT ONLY HAS SIX MGD THAT YES, THAT WOULD REQUIRE A MUCH SOONER EXPANSION THAN ANY OF US WOULD'VE EXPECTED.
UM, WHICH IS WHY ON THE CITY SIDE WE'VE MADE SOME ADJUSTMENTS TO WHAT IS CHARGED TO THOSE OUTTA CITY CUSTOMERS.
'CAUSE THEY DO HAVE A, A GREATER IMPACT THAN AN IN CITY USER.
SO WE'RE GETTING THE REVENUE ON THAT SIDE TO WHERE LET'S SAY A 3M GD USER COMES IN, UM, ASSUMING WE HAVE THE CAPACITY, IF IT REQUIRES A SOONER EXPANSION, WE WANNA MAKE SURE THAT THEY ARE GOING TO BRING IN THE REVENUE TO PAY FOR THAT EXPANSION AND NOT OUR CURRENT USERS.
I MEAN, A HOMEOWNER IN BAYTOWN SHOULD NOT HAVE TO PAY FOR A BWA EAST EXPANSION JUST BECAUSE A MANUFACTURING FACILITY COMES IN.
SO WE ARE ABSOLUTELY KEEPING AN EYE ON THAT.
UM, AND ARE COMMITTED TO NOT PASSING ON EXPANSION COSTS TO EXISTING REPAIRS BECAUSE PART OF, PART OF THE, THE PRICE INCREASE WAS BECAUSE OF THE EXPANSION COSTS.
AND, AND THAT GOES BACK TO THE OTHER CONVERSATION THAT WE HAD A COUPLE MONTHS AGO ON THE BAWA IMPACT FEES.
UM, YOU KNOW, IN REALITY MOST WATER SYSTEMS WOULD'VE BEEN CHARGING NEW DEVELOPMENT FOR COSTS THAT IMPACT THE SYSTEM.
SO THE ONLY WAY TO FUND AN EXPANSION WAS TO CHARGE EXISTING RATE PAYERS.
SO WE'RE TRYING TO KIND OF REVERSE THAT TREND WITH SOME OF THE CONTRACTS THE CITY HAS, UH, WITH WATER USERS.
AND I THINK OVER TIME WE'RE GONNA GET THERE.
IDEALLY OVER TIME WE GET IT TO WHERE WE'RE GONNA HAVE A POSITIVE IMPACT ON RATES FOR OUR EXISTING RATE PAYERS.
IT'S JUST, IT'S TAKEN A LITTLE BIT OF TIME TO GET THERE.
YOU KNOW, ONE OF THE OTHER THINGS THAT THE, THE CITY IS DOING IS WE HAVE A NUMBER OF CONTRACTS WITH WATER USERS, AND ONE OF THE ISSUES THAT WE'VE HAD IS PROVIDING OR ALLOWING EXCESS CAPACITY TO SOME OF THOSE USERS, WHICH ON PAPER REQUIRES THINGS LIKE PLANT EXPANSIONS.
SO WE ARE, UM, AND KAREN AND, AND FRANK, ESPECIALLY STERLING, HAVE DONE A GREAT JOB AT LOOKING AT ALL THOSE CONTRACTS AND WHEN WE HAVE THE ABILITY TO REDUCE THEIR CAPACITY IF POSSIBLE, WE HAVE DONE THAT.
UM, ONE OF THE THINGS ON THE ITEM TONIGHT WHERE YOU, UM, AUTHORIZE SOME ADDITIONAL CAPACITY TO A FRESHWATER
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DISTRICT, IT HAS AN ADJUSTED QUANTITY IN THERE NOW.AND WE'RE DOING THAT IN ALL OF OUR CONTRACTS.
SO EVEN IF WE SAY, HEY, YOU CAN GET CAPACITY UP TO ONE MGD IF THEY'RE ONLY USING 500,000, THEN THEY DON'T GET ANY MORE THAN 500,000 TIMES 110%.
SO WE'RE DOING A LOT OF THINGS LIKE THAT TO IDEALLY KEEP US FROM HAVING TO EXPAND OR NOT EXPANDING UNTIL WE TRULY NEED TO.
AND WHEN WE DO EXPAND THAT, IT'S THE PEOPLE REQUIRING THAT EXPANSION THAT PAY FOR IT, NOT OUR EXISTING.
AND THAT, AND THAT'S MY BIG CONCERN HERE IS MM-HMM
IF WE'RE GONNA HAVE TO EXPAND, MAKE SURE THAT THE, AND I'M ALL FOR INDUSTRY.
I'M VERY PRO INDUSTRY, SO I THINK IT'S GREAT THAT WE COULD HELP INDUSTRY AND BRING JOBS AND, AND, AND TO THIS AREA AND, AND, YOU KNOW, TAX BASE, BUT WE JUST NEED TO MAKE SURE THAT WE'RE NOT PUTTING IT ON THE BACKS OF THE PEOPLE.
AND LET'S BE SURE WE TELL THEM THAT WE'RE NOT, YOU KNOW, AS I, I'VE TALKED TO RICK AND OTHERS FROM TIME TO TIME, WE NEED TO BE SURE AND TOOT OUR HORN WHEN WE'VE DONE SOMETHING GOOD LIKE THAT.
ANYTHING ELSE, FRANK? NO, I'M READY FOR THE OTHER, FRANK.
ANY OTHER GENERAL QUESTIONS, I GUESS FROM EITHER BRENDAN OR BRENDA OR, UH, BRENDA OR MIKE BEFORE FRANK? I'M GOOD.
NO, I, I'M, I'M UP TO SPEED, I THINK.
SO, UH, BEFORE I MOVE ON TO THE, UM, THE LARGER PROJECTS, I WAS JUST GONNA ADD A LITTLE BIT ON THE, UM, THE ADDITIONAL CAPITAL PROJECTS DOWN HERE, THE PLANT WINTERIZATION.
WE ARE GONNA, UM, BE DOING SOME, UM, SMALL PURCHASES THIS, THIS SUMMER TO GET READY FOR NEXT WINTER.
UM, THERE'S SOME THINGS LIKE, UH, INSULATING BLANKETS FOR OUR CHEMICAL STORAGE TANKS THAT WE'RE LOOKING TO PURCHASE, AS WELL AS SOME, UH, BLANKETS FOR, UH, SOME OF THE PIPE, UH, THAT WE CAN DO AND BUY IN SOME HEATERS.
SO ALL THOSE SHOULD, UH, BE ABOUT 50,000 OR SO.
UH, NOT A LARGE EXPENDITURE, BUT IT WILL HELP US PREPARE FOR NEXT WINTER.
SO, SO THE INSULATING BLANKETS WILL WORK BETTER THAN HAY? UH, WELL, IT SHOULD.
UM, BUT THAT WOULD BE SOMETHING WE'LL LOOK TO GET GRANTS, UH, TO FUND THAT.
AND, AND, AND WE DO HAVE A POTENTIAL LOCAL VENDOR TO PROVIDE.
AND, AND WE HAVE LOOKED AT, UH, THAT VENDOR AND, UH, GOTTEN THREE QUOTES.
THEY APPEAR TO BE THE, THE LOWEST ONE.
WE'LL BE BY LOCAL, HOPEFULLY UTILIZING THEM BY LOCAL.
UH, SO I JUST WANTED TO MENTION THAT.
UM, NOW GOING ON TO, UH, SOME OF THE LARGER PROJECTS THAT WILL BE, UM, DEBT FUNDED.
UH, THIS IS A FILTER SCOUR IMPROVEMENTS.
UM, THE, UM, THE FILTRATION SYSTEM AT THE PLANT OCCASIONALLY, YOU KNOW, DURING NORMAL OPERATION HAS TO BE, UH, BACK WASHED.
SO IT, YOU REMOVE ALL THE IMPURITIES THAT HAVE BEEN FILTERED OUT, YOU KNOW, OF THE WATER.
SO YOU BACKWASH IT TO REMOVE, REMOVE THOSE IMPURITIES.
UH, OUR CURRENT BACKWASH SYSTEM DOESN'T HAVE THIS, UH, FILTER SCOUR, WHICH, UH, HELPS THE BACKWASH BE MORE, YOU KNOW, AGGRESSIVE AND DISLODGE MORE OF THE IMPURITIES THAT ARE CAUGHT IN THE FILTRATION MEDIA.
SO THIS WILL HELP THE PLANT OPERATE BETTER.
UH, IT WILL ALLOW THE FILTERS TO RUN LONGER BETWEEN BACK WASHES AND SO YOU GET REALLY MORE PRODUCTION OUT OF THE PLANT.
UM, SO THIS IS SOMETHING THAT WE HAD DESIGNED AND KIND OF PUT ON HOLD BECAUSE WE DIDN'T HAVE THE FUNDS, YOU KNOW, THIS YEAR TO COMPLETE, UH, CONSTRUCTION, UH, WE'RE LOOKING TO PROCEED IN, IN FY 22 WITH THE, THE DEBT FUNDING.
UH, THE NEXT PROJECT IS WHAT WE'RE CALL IN THE RAW WATER REHABILITATION.
IT INVOLVES, UH, SEVERAL THINGS OVER AT THE FOUR BAY IS ONE IS REPLACING THE LINER.
UH, YOU CAN BARELY SEE A LINER ON THE BANKS THERE.
UH, THERE'S A LINER SYSTEM THAT, UH, HELPS PREVENT WATER LOSS FROM, YOU KNOW, WATER INFILTRATING THROUGH THE SOIL.
UM, 'CAUSE WE'VE ALREADY PURCHASED THIS WATER ONCE IT GETS TO THE FOUR BAY AND ANY WATER WE LOSE IS, YOU KNOW, MONEY WE'RE LOSING.
SO WE NEED TO REPLACE THAT FOUR BAY LINER.
AND SO, SO WE'RE LOSING WATER.
WE ALSO NEED TO, UH, REPLACE THE PUMPS THERE.
THE PUMPS HAVE LIVED, YOU KNOW, THEIR USEFUL LIFE.
[00:25:01]
UM, THERE'S BEEN A LOT OF REHAB DONE ON IT, SO THEY NEED TO BE JUST REPLACED.SO THAT'S WHAT, UH, THIS PROJECT DOES.
THEN THE LAST PROJECT IS THE GROUND STORAGE TANK REHAB.
UM, IF YOU'LL REMEMBER A FEW YEARS AGO, WE PUT THIS INTO THE CIP, UH, AND WE JUST HAD TO PUSH, PUSH IT OUT BECAUSE IT WASN'T FUNDED.
UM, SO THIS, UH, DEBT ISSUANCE WOULD ALLOW US TO FUND THIS, UH, GROUND STORAGE TANK REHAB DURING FY 22.
UM, YOU KNOW, START THE DESIGN AND HOPEFULLY GET IT CONSTRUCTED AS SOON AS POSSIBLE.
GOING ALONG WITH REHABBING THE TANKS, WHICH WOULD, YOU KNOW, PRIMARILY BE THE INSIDE LINER AND THE COATING, WHICH IS KIND OF TORN UP.
THERE'S, YOU KNOW, SOME OF THE METAL COMPONENTS, UH, MAYBE RUSTED NEED TO BE REPLACED.
AND THE, UH, THE VALVES THAT ARE ON THE OUTSIDE OF THE TANK NEED TO BE REPLACED.
AND WE SAW THAT DURING THE WINTER STORM, THEY WERE VERY HARD TO OPERATE.
UH, YOU KNOW, THE, THE WHEEL TO OPERATE THEM BROKE.
SO, UH, THEY'RE PROVIDED, UH, YOU KNOW, PROBLEMS DURING THE WINTER STORM TRYING TO OPERATE THE VALVE.
SO THOSE WOULD BE REPLACED WITH THE TANK REHAB.
UM, AND THAT'S ALL THE PROJECTS.
I'LL LET, UM, NICK COME BACK AND WRAP IT UP.
ANY, ANY QUESTIONS ON ANY, ANY OF THOSE PROJECTS? THEY ALL SEEM VERY GOOD AND PROPER AND, UH, MAYBE EVEN A LITTLE BIT PAST DUE.
SO, SO IS ALL THE EXPENSE OF THOSE PROJECTS BAKED INTO THIS 17 NUMBER? YES, IT IS.
YEAH, WE WOULD PROBABLY, UM, WE'LL LOOK TO SEE IF THE BUDGET IS APPROVED.
WE WILL PROBABLY NOT EXACTLY SURE WHEN WE WOULD ISSUE THE DEBT, UM, BUT PROBABLY AS SOON AS WE CAN IN THE FISCAL YEAR TO TRY AND GET THE BEST RATES WE CAN.
AND, UM, THEY'RE GONNA, THEY'RE GONNA GO UP, TAKE ADVANTAGE OF WHERE WE'RE AT.
SO, UM, IF WE CAN DO IT SOONER, WE MAY EVEN LOOK TO LOOK TO DO IT SOONER.
SO WITH THAT, HAPPY TO ANSWER ANY OTHER QUESTIONS YOU MAY HAVE ON THE BUDGET.
BRENDA, BRANDON? NO, I DON'T HAVE ANY FURTHER QUESTIONS.
JUST REALLY QUICK ON THE RATES, UM, OUR CONTRACT SAYS THAT WE WILL PAY THE RATES THAT THEY ESTABLISH THE CITY OF HOUSTON ESTABLISHES IN THEIR ORDINANCE.
SO THEY ESTABLISH THE RATES IN THEIR ORDINANCE.
SO THAT'S HOW WE GET OUR RATES.
SO IF WE HAD ANY INFLUENCE IT'S WAY ON THE OTHER SIDE, WHICH MEANS WE PROBABLY DON'T.
WHICH, YOU KNOW, IN REALITY THAT'S HOW IT IS FOR US IN THE CITY OF BAYTOWN AND US AND OUR OTHER CUSTOMERS.
SO IT'S NOT TOTALLY SURPRISING.
UM, 'CAUSE WE WRITE OUR CONTRACTS THE SAME WAY.
SO, SO IS THERE A LIMIT OF TOTAL AMOUNT OF WATER WE COULD EVER TAKE FROM THEM? IS THERE LIKE A MAX IN THAT CONTRACT? YES.
YOU KNOW, 'CAUSE WE KEEP TAKING AND TAKING IT.
EVENTUALLY YOU FIGURE THERE'S GOTTA BE A CAPACITY NUMBER WHERE YES, RIGHT NOW OUR CAPACITY IS 20 MILLION AT THE TAKE POINT FROM THE FRITZ LANUM PLANT, UH, PLANT PER DAY.
AND THEN THE BWA EAST PLANT IS 6 MILLION PER DAY.
NO, I'M SAYING IS THERE IN THE HOUSTON CITY OF HOUSTON CONTRACT, RIGHT? THAT THAT IS, IS THE CITY OF HOUSTON CONTRACT? YEAH.
OUR LIMIT IS 26 MILLION TOTAL.
BUT WE CAN, BUT WE, WE CAN INCREASE THAT, CORRECT? YEAH, YEAH.
PER PENDING THAT WE PENDING, WE NEGOTIATED THE, THE, WHAT'S THE CONTRACT, THE, THAT WE WOULD BE ABLE TO TAKE FROM THEM IS THE QUESTION.
IS IT A 40, IS IT 35? DO WE KNOW? I THINK, I THINK THE CONTRACT GIVES US, UM, WELL WE'RE ALLOCATED, WE CAN EXCEED IT TEMPORARILY.
WE JUST HAVE TO PAY, UH, A HIGHER RATE WHEN WE DO.
UH, AND IF WE'RE EXCEEDING, YOU KNOW, UM, ON A REGULAR BASIS, THEN THEY'RE GONNA COME TO US AND ASK TO RENEGOTIATE THAT.
SO I GUESS MY POINT IS, SO WE'RE 26 WHERE WE'RE AT TODAY, RIGHT? RIGHT.
THE NEXT EXPANSION'S, ANOTHER IS, WILL IT BE SIX OR MORE THAN THAT? YOU, UH, THE NEXT EXPANSION WOULD BE SIX.
IT'S DESIGNED TO GO IN SIX AND I'M SAYING THE NEXT, ANOTHER SIX, BUT SO UP, UP TO FOUR, A TOTAL OF FOUR OR 24, I THOUGHT THAT'S CORRECT.
AND SO IS THERE A LIMIT TO THE CITY OF HOUSTON DOESN'T HAVE THAT CAPACITY AT SOME POINT? IS IT? I GUESS MY QUESTION, UM, THEY HAVE, THEY HAVE CAPACITY.
IT'S JUST A MATTER OF WE WOULD HAVE TO GO BACK AND WE RENEGOTIATE THE CONTRACT.
[00:30:01]
I MEAN, I MEAN IT, AND IT IS VERY SIMILAR, LIKE THE, THE CITY HAS CONTRACTS WITH LIKE, UH, CHAMBERS, COUNTY IMPROVEMENT DISTRICTS AND YOU KNOW, THEY KNOW FOR INSTANCE, THAT LIKE BA EAST HAS SOME ADDITIONAL CAPACITY, BUT WE DON'T JUST GIVE IT TO 'EM.SO IT'D BE THE SAME CASE FOR THE CITY OF HOUSTON.
IF WE NEED MORE THAN 26, WE GOTTA GO ASK FOR IT.
THERE'S GONNA BE A NEGOTIATION.
UM, PROBABLY NOT AN EASY NEGOTIATION AND WE'D HAVE TO FIGURE THAT OUT TO, TO GET BEYOND THE 26TH.
I WOULD JUST ADD, YOU KNOW, OUR AVERAGE IS REALLY NOW STAYING WITHIN THE 13 TO 14 MGD RANGE.
SO WE WE'RE NOT, YOU KNOW, IN, IN DANGER OF EXCEEDING THE 26 ANYTIME SOON.
LIKE I SAY, IF WE, IF WE EXCEED IT, YOU KNOW, ONE DAY, UH, THEY'RE NOT GONNA COME AND SAY YOU GOTTA DO A NEW CONTRACT, UH, WE CAN EXCEED IT, YOU KNOW, ON, ON OCCASIONS, BUT JUST PAY A HIGHER RATE.
I THINK WE'RE, I THINK WE'RE THROUGH WITH THAT ITEM.
ALRIGHT, IF WE ARE, I'LL MOVE ON TO ITEM THREE B, WHICH
[b. Consider a resolution calling for a public hearing regarding the Baytown Area Water Authority Fiscal Year 2021-22 Proposed Budget.]
IS TO CONSIDER RESOLUTION CALLING FOR A PUBLIC HEARING REGARDING THE BAWA FISCAL YEAR 20 21, 20 22 PROPOSED BUDGET.IT'S BASICALLY YOUR NEXT MEETING, UM, WOULD BE THE PUBLIC HEARING, RIGHT? UM, WHERE ANYBODY CAN SIGN UP AND, AND SPEAK ON THE, ON THE BUDGET AND PROVIDE COMMENTS.
SO WE NEED A MOTION TO, UH, YES, I MAKE A MOTION CALLING FOR A PUBLIC HEARING AND THAT WOULD BE SECOND.
AND THAT WOULD BE ON JUNE 29TH AT 9:00 AM CORRECT? NO, NO, NO, NO.
I'M SORRY, THAT'S THE RIBBON CUTTING.
I'M SORRY, YOU DISCUSSION? HOLD ON ONE SECOND.
LET ME, LET ME CHECK MY CALENDAR.
YEAH, I'LL BE, I'LL, I'LL BE FINE.
NEED A MOTION THEN TO, UH, APPROVE, UH, THE RESOLUTION CALLING FOR THE PUBLIC HEARING.
I MADE THAT MOTION IN A SECOND.
[a. The Baytown Area Water Authority East Surface Water Treatment Plant Ribbon Cutting Ceremony will be held on Tuesday, June 29, 2021, at 9:00 a.m., located at 5359 E. Grand Parkway South, Baytown, Texas 77523. ]
FOUR A MANAGER'S REPORT.UM, WE TALKED ABOUT YOUR NEXT MEETING AND BEFORE THAT, ON TUESDAY, JUNE 29TH AT 9:00 AM WE WILL HAVE THE OFFICIAL RIBBON CUTTING FOR THE BWA EAST SURFACE WATER TREATMENT PLANT.
SO EXCITING THAT WE'RE, WE'RE AT THAT POINT.
UM, LIKE ANDREA SAID, STILL WORKING THROUGH SOME OF THE OPERATIONAL, YOU KNOW, ISSUES OF OPENING A BRAND NEW PLANT AND FIGURING OUT, YOU KNOW, HOW YOU RUN IT THE BEST WAY POSSIBLE WITH THE CONDITIONS ACTUALLY ON THE GROUND.
UM, BUT WE'RE EXCITED TO CUT THAT RIBBON AND GET THAT EXTRA CAPACITY OUT IN THE COMMUNITY.
WHO, WHO ALL, WHO ALL DO YOU INVITE? HOW, HOW DO WE STRUCTURE THAT FOR THE CHAMBER, THE CITY OF FOLKS, UH, ET CETERA.
AND ARE WE TAKING A BUS LIKE THE LAST TIME
SO THE ENGINEER OF RECORD AND UH, DEFINITELY THE CONTRACTOR.
AND THEN THERE'S MAYBE SOME OTHER, FEW OTHER GUESTS THAT WE KNOW ARE, ARE GREAT CUSTOMERS.
SO THOSE HAVE BEEN SENT OUT AND WE HOPE THAT THEY ATTEND PROBABLY A LITTLE BIT SMALLER LIST THAN WE WOULD NORMALLY HAVE BECAUSE OF THE ACCESS RIGHT.
UM, AND PARKING, YOU KNOW, THERE'S NOT, NOT AN EXCESSIVE AMOUNT OF PARKING OUT THERE, SO, UM, IT'S MOSTLY YOU ALL ELECTED OFFICIALS AND ANYONE WHO IS INVOLVED WITH THE PROJECT.
UM, BEYOND THAT, WE'VE KIND OF LIMITED IT JUST TO MAKE SURE.
SO IT'S NOT REALLY A CHAMBER KIND OF EVENT.
OR WILL A CHAMBER? UH, THEY MAY, I, I'M NOT SURE THEY, THEY MAY HAVE BEEN ON THE INVITE LIST, BUT, UM, OPENING UP TO THE FULL CHAMBER MEMBERSHIP? NO, OF COURSE NOT.
THERE WILL BE A LARGE SCISSORS AND THERE WILL BE SOME FUN THINGS TO TAKE AWAY.
SO IN THAT REGARD, IT'LL BE A GOOD EVENT.
SO ON THE DIRECTIONS, I JUST WANNA CONFIRM THAT WE ACTUALLY NAMED THE ROAD LEADING TO THE PLANT BEAST ROAD.
IS THAT, IS THAT OFFICIAL? I BELIEVE IT'S ACTUALLY PLANT ROAD OR, OR BUA EAST PLANT ROAD.
BUT FOR ALL INTENTS AND PURPOSES, I THINK OUR GIS FOLKS HAD A, A GREAT HOOT WHEN THEY DECIDED THAT IT WOULD BE A LITTLE BIT OF A FUN NICKNAME.
[00:35:01]
SO WE HAD CALLED IT THE BEAST BECAUSE IT'S A LARGE PROJECT, BUT IT'S NOT, PROBABLY NOT OFFICIAL, SO.I WAS ALL EXCITED THAT IT WAS BEAST ROAD
IT, IT HELPS, IT'S HELPED US GET THERE.
AND THAT'S BEAST WITH A B, IS THAT WHAT HE'S SAYING? CORRECT.
[b. The next Baytown Area Water Authority meeting is scheduled for Wednesday, July 21, 2021, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]
OUR NEXT MEETING IS, UH, JULY 21ST AT FOUR 30 HERE IN THE COUNCIL CHAMBER.NEED A MOTION TO ADJOURN? SO MOVED.
I MADE THE SECOND LONG FOR YOUR AYE AYE, WE ARE ADJOURNED.