Jan 19, 2022 BAYTOWN AREA WATER AUTHORITY MEETING

[00:00:19]

MY TOWN AREA WATER AUTHORITY.

I'D LIKE TO CALL THIS MEETING TO ORDER AND ANNOUNCE THAT WE HAVE A QUORUM.

FIRST ITEM OF BUSINESS TODAY WILL BE TO CONSIDER APPROVING

[a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on December 15, 2021. ]

SO MOVED, SECOND.

MOVED AND SECONDED.

DO WE HAVE QUESTIONS OR DISCUSSION? HEARING NONE.

ALL THOSE IN FAVOR SAY AYE.

A AYE.

OPPOSED LIKE, SIGN.

MOTION CARRIES UNANIMOUSLY.

UM, NEXT WE WILL CONSIDER SEVERAL RESOLUTIONS REGARDING CHEMICALS FOR THE FACILITY.

THE FIRST RESOLUTION WILL BE TO AWARD THE ANNUAL

[a. Consider a resolution awarding the Annual Liquid Cationic Polymer Contract to Polydyne Inc.]

GOOD AFTERNOON.

UM, WE HAVE THE, UH, ANNUAL BID OPENING DONE EVERY DECEMBER AND WE TYPICALLY WILL BRING THOSE FOR YOUR CONSIDERATION IN JANUARY.

UM, THAT'S WHAT WE HAVE HERE.

UM, THESE ARE THE CHEMICALS THAT WILL BE USED FOR BOTH BWA MAIN PLANT, THE FRITZ LANAM PLANT AND THE B EAST PLANT.

UM, THE FIRST ITEM IS THE, UH, LIQUID CATIONIC POLYMER CONTRACT, WHICH IS USED AS A COAGULANT AID IN THE COAGULATION PROCESS FOR BOTH PLANTS AND STAFF.

WOULD RECOMMEND APPROVAL.

ALL RIGHT.

DO YOU HAVE A MOTION MOVE FOR APPROVAL? I HAVE A SECOND.

SECOND.

ARE THERE QUESTIONS? HOW, HOW DOES THAT LINE UP TO THE BUDGET AS FAR AS, IS THIS WITHIN BUDGET? YEAH.

YES SIR.

OKAY.

ANY OTHER QUESTIONS? ALL THOSE IN FAVOR SAY AYE.

AYE.

I OPPOSED LIKE SIGN MOTION CARRIES UNANIMOUSLY.

UM, NEXT WE'LL CONSIDER A RESOLUTION

[b. Consider a resolution awarding the Annual Liquid Zinc Sodium Polyphosphate Contract to Shannon Chemical Corporation.]

UM, THIS PARTICULAR CHEMICAL WE ARE USING IN OUR CORROSION CONTROL PART OF THE PROCESS.

UM, AND STAFF WOULD RECOMMEND APPROVAL FOR THIS CHEMICAL AS WELL.

DO I HAVE A MOTION TO MOVE SECOND QUESTIONS? ALL THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? LIKE SIGN MOTION CARRIES UNANIMOUSLY.

UH, WE WILL CONSIDER A RESOLUTION

[c. Consider a resolution awarding the Annual Liquid Chlorine Contract to DXI Industries, Inc.]

UM, THIS PARTICULAR ITEM IS FOR THE MAIN BALL PLANT IS FOR OUR, UH, CHLORINE GAS CONTRACT.

UM, WE'VE USED DXI FOR A NUMBER OF YEARS, AND, UM, SAME WITH THIS CHEMICAL STAFF WOULD RECOMMEND APPROVAL.

SO MOVE AGAIN.

I HAVE A MOTION.

SECOND.

MOTION, SECOND QUESTIONS.

HEARING NONE.

UH, ALL THOSE IN FAVOR SAY ARE AYE.

AYE.

OPPOSED? LIKE, SIGN MOTION CARRIES UNANIMOUSLY.

UM, THE NEXT CHEMICAL TO CONSIDER IS A RESOLUTION

[d. Consider a resolution awarding the Annual Liquid Sodium Hypochlorite Contract to Brenntag Southwest, Inc.]

UM, THIS PARTICULAR ITEM IS FOR OUR, UM, BLEACH CONTRACT, UM, FOR THE BALL EAST PLANT.

UM, AND IT'S USED IN BOTH THE, UH, PRE, UH, DISINFECTION AND THE POST DISINFECTION PROCESS.

AND STAFF WILL RECOMMEND APPROVAL FOR THIS AS WELL MOVE FOR APPROVAL.

SECOND, UM, I HAVE A QUESTION.

YES, MA'AM.

IT, IT APPEARED THAT THERE WAS ONLY ONE BIDDER FOR THIS TWO.

OH, I'M ON, SORRY.

I APOLOGIZE.

I WAS ONE SCREEN AHEAD OF MYSELF OR BEHIND MYSELF.

I, I HAVE NO QUESTION.

I I DO HAVE, DO I MADE A MOTION? HAS THERE BEEN A SECOND? YES.

YES.

OKAY.

SO THERE'S A PRETTY BIG DISCREPANCY BETWEEN THESE TWO BIDS.

IS THERE ANY EXPLANATION AS TO WHY ONE WAS IT LOOKED LIKE ONE HAD A DOLLAR 18 PER POUND AND ANOTHER HAD 18 CENTS.

IS THAT JUST YES.

SO THE, THE PARTICULAR BIDDER, UM, REACHED OUT TO US.

THIS IS, UM, A BIDDER THAT WE'VE HAD, YOU KNOW, NUMEROUS YEARS IN THE PAST AND FOR WHATEVER REASON HE MISREAD THE, UH, THE BID, UM, THIS TIME.

AND SO HE, UH, PRICED HIS BASED ON WET POUNDS VERSUS DRY POUNDS.

OKAY.

PERFECT.

ALRIGHT, ANY OTHER QUESTIONS? UM, HEARING NONE.

ALL THOSE IN FAVOR SAY AYE.

AYE.

AYE.

OPPOSED LIKE SIGN MOTION CARRIES UNANIMOUSLY.

UM, ITEM TWO E WE

[e. Consider a resolution awarding the Annual Liquid Sodium Hydroxide Contract to Univar Solutions USA Inc.]

WE'RE USING THIS FOR PH CONTROL, UM, FOR BOTH THE BWA EAST AND THE MAIN

[00:05:01]

UM, AND FOR THIS WE WOULD RECOMMEND APPROVAL AS WELL.

I'LL MAKE THE MOTION SECOND.

MOTION A SECOND.

QUESTIONS ALL OF THOSE.

HEARING NONE.

ALL THOSE IN FAVOR SAY ARE.

AYE.

AYE.

AYE.

OPPOSED? LIKE SIGN.

MOTION CARRIES UNANIMOUSLY.

AND FINALLY, ITEM TWO

[f. Consider a resolution awarding the Annual Liquid Ferric Chloride Contract to PVS Technologies, Inc.]

WE WILL CONSIDER A RESOLUTION AUTHOR AWARDING THE ANNUAL LIQUID FERRET CHLORIDE CONTRACT TO PVS TECHNOLOGIES INCORPORATED FOR THIS ITEM.

THIS IS FOR RIC CHLORIDE, WHICH IS OUR MAIN COAGULANT.

WE USE THIS FOR BOTH, UM, BALL EAST AND THE MAIN BALL PLANT.

IT'S, UH, ESSENTIAL COMPONENT TO, UH, OUR WATER TREATMENT PROCESS.

AND WE WOULD RECOMMEND APPROVAL FOR THIS AS WELL, BUT FOR APPROVAL.

SECOND MOTION IS SECONDED.

DO WE HAVE QUESTIONS OR DISCUSSION? HEARING NONE.

ALL THOSE IN FAVOR SAY A AYE.

AYE.

OPPOSED? LIKE, SIGN MOTION CARRIES UNANIMOUSLY.

WELL THANK YOU VERY MUCH, UH, APPRECIATE THAT.

HOW, HOW MUCH DID WE JUST SPEND A LOT ? MILLIONS.

YEAH, IT, IT IS WELL OVER A MILLION.

THAT'S WHAT I THOUGHT.

OKAY.

BUT THIS IS AN ANNUAL, THESE ARE ANNUAL CONTRACTS, CORRECT.

AND THIS IS ALL WITHIN THE BUDGET, I WOULD IMAGINE IT WAS.

YEAH.

SO NO SURPRISES BECAUSE OF INFLATION? KIND OF THE WELL, YEAH.

WE, WE WERE EXPECTING IN ANTICIPATING THE, THE INFLATION AND UM, UH, ONE OF THE BENEFITS OF US BIDDING IT WHEN WE DO, YOU KNOW, OUR FISCAL YEAR STARTS OCTOBER 1ST.

AND SO THIS HELPS US TO BE ABLE TO ANTICIPATE THOSE CHANGES A LITTLE BIT BETTER FOR WHEN WE GET TO THE BUDGET.

UM, BECAUSE THIS WILL CARRY OBVIOUSLY INTO THE NEXT YEAR'S BUDGET FOR THE FIRST QUARTER.

UM, SO WHEN WE'RE PUTTING TOGETHER OUR PRICING, UM, THAT HELPS US TREMENDOUSLY.

SO YOU KNOW HOW BAD IT'S GONNA BE IN OCTOBER FOR THE NEXT YEAR ESSENTIALLY TO SOME DEGREE? NOT, NOT YET.

BUT, UH, WE SAW, YOU KNOW, SIGNIFICANT INCREASES ON SOME OF THOSE CHEMICALS.

UM, LAST YEAR WE EVEN HAD A COUPLE PEOPLE CANCEL THE, UH, CHEMICAL CONTRACTS WITH US 'CAUSE THEY COULD NO LONGER FULFILL THE, UH, THE ORDER AT THE PRICING THAT WE, UM, HAD.

AND IT FORCED US TO HAVE TO GO OUT AND OBTAIN, UH, ALTERNATE PRICING TO BE ABLE TO GET US THROUGH, UM, THE END OF THE YEAR.

SO WE'RE REALLY FORTUNATE THAT WE EVEN HAD BIDDERS THAT WERE WILLING TO HOLD PRICING FOR A YEAR.

UM, THAT'S BEEN A, A CHALLENGE THAT A LOT OF SYSTEMS HAVE RAN INTO OVER THE COURSE OF, YOU KNOW, THE TIMES WE'RE IN RIGHT NOW.

YEAH.

'CAUSE 'CAUSE THEY'RE AT RISK OF THE PRICES IS STILL GOING UP AND THEY STILL HAVE A FIXED SALE AMOUNT AND, AND I REMEMBER IN YEARS PAST Y'ALL WOULD HAVE FOUR OR FIVE PEOPLE BIDDING ON A THING AND IT'S HARD TO EVEN GET TO NOW.

YEAH.

SO WITH CIDA LOT OF THESE SMALLER COMPANIES HAVE, YOU KNOW, WENT UNDER SOME OF THOSE BIGGER ONES HAVE PURCHASED THOSE COMPANIES AND, YOU KNOW, UH, SOME OF THEM YOU, YOU'LL SEE LIKE THE ONE YOU WERE REFERENCING POLYGON, UM, WITH THE ONE BIDDER.

UM, THEY'VE ESSENTIALLY, YOU KNOW, BOUGHT UP THEIR COMPETITION SO THEY UM, KIND OF HAVE THE MARKET CORNER AT LEAST IN THIS AREA FOR THAT CHEMICAL.

ALRIGHT, ANY OTHER QUESTIONS? DISCUSSIONS? THANK YOU VERY MUCH.

SURE.

UM, WE ARE NOW AT THE MANAGER'S

[a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 16, 2022, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]

YES MA'AM.

SO I'VE BEEN WAITING FOR THIS BECAUSE I WANT Y'ALL TO GO HOME TONIGHT, BE ABLE TO TELL YOUR FAMILIES THAT Y'ALL CHEWED OVER SOME REALLY, REALLY IMPORTANT STUFF.

SO I'M GONNA READ THE WEBSTER'S DICTIONARY FOR A WHILE JUST TO CHEW UP SOME TIME.

MIKE, GO FOR IT.

RICK WANTED ME TO MENTION THE FUTURE EXPANSION OF BAWA EAST AND FRANK MADE A PRESENTATION ABOUT COROLLO AND WHY WE NEEDED TO BE LOOKING AT THAT IN TERMS OF NOW.

AND SO WE'VE GOT A PROPOSAL FROM THEM.

THE PROPOSAL'S LESS THAN 50,000, SO WE'RE GONNA GO AHEAD WITH COROLLA.

THAT WON'T BE COMING BACK TO YOU OR TO COUNCIL 'CAUSE IT'S LESS THAN 50,000.

COROLLA WILL PROBABLY START THAT STUDY WITHIN THE NEXT COUPLE OF WEEKS AND THEY'LL BE LOOKING AT, WE'RE IN THAT SPECTRUM OF SIX MGD THROUGH PROBABLY 18.

MAKES SENSE.

HOW TO BEST FINANCE THAT THING AND THE DELIVERY METHODS FOR THAT, SUCH AS DESIGN, BUILD, OR CONS, CONSTRUCTION MANAGER AT RISK.

SO HE REALLY JUST WANTED TO REMIND YOU THE PRESENTATION THAT YOU HAVE.

WE'RE GOING TO GO ON WITH THAT STUDY.

YOU WON'T SEE IT BACK.

AND THEY'LL START THEIR WORK NOW.

NOW I'LL READ THE DICTIONARY, MIKE, WE WON'T SEE THAT, BUT, WE'LL, WE'LL, WE'LL WE'LL GET THE RESULTS.

RESULTS.

YOU'LL, YOU'LL GET THE RESULTS.

ABSOLUTELY.

ABSOLUTELY.

AND WITH THAT, THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 16TH, 2022.

4:30 PM HERE IN THE COUNCIL CHAMBERS.

THAT'S ALL I HAVE TONIGHT.

THERE HAS BEEN AN UPDATE ON FINANCE REQUESTED, UM, A SPECIAL MEETING.

THAT MEETING WILL BE JANUARY 26TH AT FOUR 30 HERE IN THE COUNCIL CHAMBERS.

WILL WE HAVE A QUORUM? YES.

OKAY.

VERY GOOD.

YOU'VE ALREADY POLL.

OKAY.

ALRIGHT.

AS, UM, THERE IS NO FURTHER, UH, BUSINESS ON OUR AGENDA, I'D ENTERTAIN A MOTION TO ADJOURN.

[00:10:01]

SECOND.

IT ALL IN FAVOR? AYE.

AYE.

WE DIDN'T DISCUSS.