* 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. [00:00:18] GOOD AFTERNOON EVERYONE. UM, I'D LIKE TO WELCOME EVERYONE TO THIS REGULAR MEETING OF THE BAYTOWN AREA WATER AUTHORITY. CALL THE MEETING TO ORDER AND ANNOUNCE THAT WE DO HAVE A QUORUM. [a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on September 21, 2022. ] THE FIRST ITEM OF BUSINESS TODAY IS TO CONSIDER APPROVING THE MINUTES OF THE REGULAR MEETING HELD ON SEPTEMBER 21ST, 2022. MOVE TO APPROVE. SECOND, A MOTION AND A SECOND. ARE THERE QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. UM, ITEM [a. Receive training regarding the Texas Open Meetings Act and Public Information Act, and provide an overview of the Baytown Area Water Authority's Rules of Procedure.] TWO A IS TO RECEIVE TRAINING REGARDING THE TEXAS OPEN MEETINGS ACT AND PUBLIC INFORMATION ACT, AND PROVIDE AN OVERVIEW OF THE BAYTON AREA WATER AUTHORITIES RULES OF PROCEDURE DIRECTORS. GOOD AFTERNOON. I'M SCOTT LAMONT, THE CITY ATTORNEY AND GENERAL COUNSEL OF THE AUTHORITY. UH, I WOULD ASK THAT YOU ALL TAKE NO ACTION ON THIS PARTICULAR ITEM TODAY. JARRIS MAPES, OUR, UH, ASSISTANT CITY ATTORNEY AND ASSISTANT GENERAL COUNSEL HAD INTENDED TO BE AT THE MEETING TODAY TO PROVIDE THE TRAINING, BUT SHE HAD AN EMERGENCY AND IT'S NOT GONNA BE HERE. AND UNFORTUNATELY, I AM NOT PREPARED TO GIVE THE TRAINING TODAY. UH, SO IF WE CAN MOVE THIS ITEM TO THE NEXT MEETING, WE SURE APPRECIATE IT. ALRIGHT. THANK YOU. THANK YOU. [a. Consider a resolution determining the alternative delivery method for the construction of the BAWA East Surface Water Treatment Plant Expansion Project and authorizing the issuance of Requests for Qualifications and Requests for Proposals for design-build services.] UH, MOVING ALONG TO THE RESOLUTION SECTION ITEM THREE A. WE WILL CONSIDER A RESOLUTION DETERMINING THE ALTERNATE ALTERNATIVE DELIVERY METHOD FOR THE CONSTRUCTION OF THE BA EAST SURFACE WATER TREATMENT PLAN EXPANSION PROJECT, AND AUTHORIZE THE ISSUANCE OF REQUEST FOR QUALIFICATIONS AND REQUEST FOR PROPOSALS FOR DESIGN BUILD SERVICES. GOOD AFTERNOON. UH, MADAM PRESIDENT AND BOARD. UM, YOU MAY REMEMBER, UH, LAST SEPTEMBER I MADE A PRESENTATION TO THE BOARD, UH, EXPLAINING THE NEED FOR THE EXPANSION OF OUR EAST PLANT AND GOING THROUGH OPTIONS ABOUT, UM, DELIVERY METHODS AND THE SIZE OF THE EXPANSION. AND WE MADE RECOMMENDATIONS AT THAT TIME. UH, WE RECOMMENDED TO, UH, EXPAND THE EAST PLANT BY ANOTHER SIX, UH, MILLION GALLONS PER DAY. UH, WE RECOMMENDED TO USE THE DESIGN BUILD DELIVERY METHOD, AND WE RECOMMENDED TO START THAT IN, UH, FY 23. UM, SO THE, UH, TEXAS GOVERNMENT CODE PROVIDES THAT IF A GOVERNMENTAL ENTITY, UH, ENTITY CONSIDERS CONSTRUCTION USING A METHOD OTHER THAN COMPETITIVE BIDDING, THAT, UH, THE BODY MUST FORMALLY SELECT A METHOD WHICH PROVIDES THE BEST VALUE. AND SO THAT'S WHAT THIS ITEM DOES. UM, MADAM PRESIDENT, I, I DO HAVE THE PRESENTATION FROM LAST SEPTEMBER, IF YOU WANTED ME TO REVIEW THAT AGAIN. UH, I DON'T KNOW IF ALL THE BOARD, WELL, I THINK IT MIGHT BE HELPFUL. MEMBERS. WERE HERE THEN WE HAVE NEW MEMBERS. YOU, YOU WEREN'T HERE. I, I'M SORRY. I WAS HERE. IT WAS SEPTEMBER THE, OH, IT WAS SEPTEMBER BEEN I THOUGHT OCTOBER SINCE, I THOUGHT, I THOUGHT OCTOBER WAS WHEN YOU CAME IN. I THINK YOU HAD DO IT FOR THE OLD TOWN MEMBERS TOO. OKAY. . ALRIGHT. I CAN JUST KIND OF GIVE A QUICK OVERVIEW OF THAT, UM, PRESENTATION. SO, UM, THIS WAS THE AGENDA. WE WENT THROUGH DEMAND PROJECTIONS CAPACITY, OUR CONTRACT EXPANSION OPTIONS, THE COST AND DELIVERY METHODS. UH, SO THIS CHART, UM, JUST SHOWS THE, UH, DEMAND PROJECTIONS AND OUR, UH, CAPACITY. AND WHAT, UH, WE DETERMINED WAS THAT, YOU KNOW, WE LOOKED AT BOTH A SIX MGD EXPANSION AND A 12 MGD EXPANSION AND DETERMINED THAT THE, UH, SIX MGD EXPANSION WOULD BE THE BEST, UH, VALUE AS IT WOULD TAKE US OUT TO, UM, REALLY OUT TO 2040. AND, UH, EXPANDING IT FURTHER WOULD, UH, REALLY KIND OF WASTE CAPACITY THAT WE WOULDN'T USE FOR A VERY LONG TIME. SO, SO WE DID SETTLE ON THE SIX MGD, UH, EXPANSION. UM, I WENT OVER OUR, UH, RAW WATER CONTRACT. UH, WE DO BUY RAW WATER FROM THE CITY OF HOUSTON. UH, I HAVE LISTED THERE OUR EXISTING, UM, UH, TAKE POINTS AND RESTRICTIONS AT EACH TAKE POINT. UM, AND THEN RECOMMENDED THAT WE, UH, DISCUSS WITH THE CITY OF HOUSTON TO ALLOW MORE, UH, WATER AT THE EAST PLANT. AND WE HAVE BEEN IN DISCUSSIONS WITH THE CITY OF HOUSTON. [00:05:01] UH, I DO HAVE A VERBAL, UM, AGREEMENT TO ALLOW MORE WATER AT, UH, THE EAST PLANT. HOWEVER, WE'RE TALKING ABOUT HOW TO ACHIEVE THAT, AND I'M TRYING TO, UH, GET THE BEST, YOU KNOW, MIX OF, OF, UM, OF VOLUME AT EACH PLANT FOR THE CITY. UM, SO WE'RE STILL IN DISCUSSIONS. I DON'T HAVE A, UM, YOU KNOW, A, A LETTER OF COMMITMENT YET, BUT I DO HAVE VERBAL THAT THEY WILL PROVIDE, YOU KNOW, ADDITIONAL CAPACITY AT THE EAST PLANT. HOWEVER, AS IT, UH, CURRENTLY STANDS, THEY'RE WANTING TO REDUCE THE, UH, ALLOCATION AT THE MAIN PLANT, UH, RATHER THAN JUST REMOVE THE RESTRICTIONS. AND SO, UM, REMOVE THE TAKE POINT RESTRICTIONS. SO, UH, SO WE'RE STILL IN DISCUSSION. UH, HOWEVER, I'M CONFIDENT THAT WE WILL HAVE WATER AVAILABLE WHEN WE DO, YOU KNOW, EXPAND THE PLANT. SO, COULD I ASK A QUESTION? SURE. JUST SOMETHING POPPED IN MY HEAD. SURE. HOW, HOW DO THEY MEASURE THE WATER FROM, FROM, SAY THE, THE THROUGH THE CANAL SYSTEM? HOW'S THAT MEASURED? HOW DO THEY KNOW HOW MUCH? SO THE, THE CITY HAS INSTALLED, UH, METERS MM-HMM . WHERE WE TAKE THE WATER OUT OF THE CANAL, AND IT'S A CITY OF HOUSTON OKAY. REQUIREMENT THAT, UH, I DON'T KNOW IF THEY PURCHASED THE METER OR WE PURCHASED IT. YEAH, YEAH. SO I'LL LET STERLING TALK ABOUT MM-HMM . THE METERING. YEAH. SO THE, THE METERING SYSTEM IS PROVIDED BY THE CITY OF HOUSTON AT BOTH FACILITIES. SO THEY OWN AND OPERATE, MAINTAIN IT. UM, WE JUST HAVE ACCESS TO IT, ESSENTIALLY. IT'S JUST AN OVERSIZED WHAT YOU SEE IN YOUR FRONT YARD. METER, RIGHT. I MEAN, IT'S INDUSTRIAL VERSION, RIGHT? IT'S A DIFFERENT TYPE. YEAH. YEAH. IT'S A DIFFERENT TYPE. IT'LL HAVE ITS OWN METER BOX, YOU KNOW, IT'S LIKE A, GOT A STAND ON PANEL, WHATEVER THAT YOU, YOU COULD SEE AND GET YOUR READINGS FROM 'EM. SURE. OKAY. THANK YOU. SO, UH, LIKE I SAID, I, I'M CONFIDENT THAT WE WILL HAVE WATER AVAILABLE TO EXPAND THE EAST PLANT. UM, WE JUST HAVE TO FINALIZE THAT, UH, NEGOTIATION AND CONTRACT. UM, BACK, GOING BACK TO YOUR PROJECTIONS, ARE Y'ALL TAKING INTO ACCOUNT THE CRAZY INDUSTRIAL GROWTH THAT'S GOING ON ON 99 OUT THERE? SO WE, WE HAVE LOOKED AT IT AND IT'S VERY HARD. UH, WE, WE'VE TALKED TO THE, UH, CHAMBERS, UH, COUNTY, UH, IMPROVEMENT DISTRICTS THAT ARE BASICALLY EXPANDING OUT THERE. UH, IT'S VERY HARD FOR THEM TO TELL US THE CUSTOMERS ARE, ARE, YOU KNOW, TENANTS THAT THEY WILL GET. UM, YOU KNOW, A LOT OF WHAT THEY, THEY BUILD IS JUST WAREHOUSES. AND THAT'S NOT HIGH WATER, YOU KNOW, DEMAND UNLESS THEY PUT A WATER FACTORY IN, UNLESS, UNLESS THEY BRING IN A, YOU KNOW, A WATER BOTTLING PLANT, WHICH THEY DID. AND SO, UH, SO IT IS JUST, THEY CAN'T TELL US WHAT KIND OF, YOU KNOW, UH, DEMAND THEY'RE GONNA GET. AND SO WE HAVE TO ARE THEY BUILDING THESE WAREHOUSES WITHOUT HAVING A CUSTOMER IN MIND? NO, BUT THEY, THEY HAVE, WELL, THEY DO THAT AND DO THEY LIKE SPEC SPEC WAREHOUSES? THEY BUILT, THEY HAVE BUILT THAT. UM, BUT ALSO THEY HAVE, YOU KNOW, VACANT PROPERTY AND THEY DON'T KNOW HOW IT'S GONNA DEVELOP. YOU KNOW, IT DEPENDS ON, YOU KNOW, THE, THE TENANT THEY CAN BRING IN. SO, UM, EVEN THOUGH WE'VE TALKED TO THEM, THEY, THEY CAN'T GIVE US REALLY ANYTHING MORE THAN WHAT WE CAN, YOU KNOW, ASSUME. AND, AND, AND THAT'S WHAT WE BASED OUR, UH, WE, WE WENT WITH, YOU KNOW, OUR, OUR BEST ESTIMATES KNOWING THE, THE TRENDS OF WHAT HAS DEVELOPED IN THE AREA. UM, BUT YEAH, IT, IT'S A, YOU KNOW, HARD TO FORECAST THE FUTURE . IT'S, SO, UM, SO WE LOOKED AT THE EXPANSION OPTIONS AND LIKE I SAID, WE, WE DID SETTLE ON THE SIX MGD UH, EXPANSION. UM, OUR CONSULTANT DID A COST ESTIMATE OF JUST OVER $60 MILLION, UH, FOR THE SIX MGD EXPANSION. AND THEN WE TALKED ABOUT, UH, DELIVERY OPTIONS. AND, UH, THERE'S, YOU KNOW, DESIGN BUILD CONSTRUCTION MANAGER, OR SORRY, DESIGN BID BUILD, WHICH IS THE TRADITIONAL METHOD. UH, WE HAVE A CONSTRUCTION MANAGER AT RISK, UH, PROGRESSIVE DESIGN BUILD AND FIXED PRICE DESIGN BUILD. AND, UM, SO LOOKED AT KIND OF THE STRUCTURE OF ALL THESE, UM, THE DESIGN BID BUILD, BASICALLY YOU HIRE AN ENGINEER TO DESIGN IT, UH, THEN ONCE THAT'S FINISHED, YOU BID IT OUT, UH, TO A CONTRACTOR AND HE, HE BUILDS IT. SO, UM, YOU KNOW, THE PROBLEM WITH, UH, AND THIS IS THE [00:10:01] METHOD WE USED ON THE ORIGINAL BAWA, UH, EAST SURFACE WATER TREATMENT PLANT. UH, AS YOU REMEMBER THOUGH, WE WENT THROUGH A PERIOD OF HIGH INFLATION, HIGH, UH, COST ESCALATIONS. UM, WHAT STARTED AS, YOU KNOW, A $25 MILLION PROJECT ENDED UP BEING LIKE ABOUT A $52 MILLION PROJECT, UH, ONCE WE WERE FINISHED. AND SO THAT COST UNCERTAINTY OF NOT, YOU KNOW, A, A BIDDING A PROJECT WHEN YOU'RE IN A HIGH COST ESCALATION ENVIRONMENT IS ONE OF THE, I THINK ONE OF THE DOWNSIDES OF USING THIS, UH, DELIVERY OPTION. UM, UH, THE CONSTRUCTION MANAGER AT RISK IS ANOTHER, UH, METHOD WHERE YOU BASICALLY HIRE A CONSTRUCTION MANAGER AND HE ADVISES THE, UM, HE KIND OF TEAMS UP WITH THE ENGINEER YOU'VE ALREADY HIRED AND ADVISES THEM ON HOW TO INCORPORATE, UM, THINGS WITHIN THE DESIGN THAT WILL MAKE IT MORE CONSTRUCTIBLE AND WILL HOPEFULLY REDUCE YOUR COSTS. SO IT'S KIND OF A FORCED, UH, PARTNERSHIP BETWEEN THE CONTRACTOR AND THE ENGINEER. AND THEN THE NEXT METHOD, WHICH, UH, IS THE ONE THAT WE RECOMMENDED WAS, UH, THE DESIGN BUILD METHOD WHERE, UH, UPFRONT YOU SELECT A TEAM WHO HAS CHOSEN EACH OTHER OF AN ENGINEER AND A CONTRACTOR WHO HAVE CHOSEN EACH OTHER, WHO HAVE A WORKING RELATIONSHIP ALREADY AND CAN, UH, DELIVER THE BEST PRODUCT FOR YOU. SO YOU HAVE BASICALLY ONE ENTITY THAT YOU DEAL WITH THAT'S THE DESIGN BUILDER AND, UM, THAT LIMITS YOUR LIABILITY TO ONE ENTITY. AND AS YOU KNOW, IN THE LAST, UH, ON, ON THE ORIGINAL PLANT, WE HAD, UH, ISSUES WHERE, YOU KNOW, THERE WERE PROBLEMS AND BOTH, BOTH THE ENGINEER AND THE CONTRACTOR SAID, NO, IT, IT'S THEM. AND, YOU KNOW, YOU GET INTO THOSE ISSUES WITH DESIGN BID BUILD, UH, WHEREAS A DESIGN BUILD, THERE'S JUST ONE ENTITY AND, UH, WHAT'S CALLED ONE THROAT TO CHOKE. SO YOU, YOU CAN GO AFTER ONE ENTITY AND YOU DON'T HAVE THAT, THAT ISSUE. UH, YOU ALSO GET A, UH, A QUICKER SCHEDULE, UH, DELIVERY SCHEDULE BECAUSE AS THE DESIGNER IS WORKING, THEY CAN ISSUE SOME, UH, EARLY WORK PACKAGES TO WHERE YOU CAN START CONSTRUCTING SOMETHING BEFORE YOUR DESIGN IS, YOU KNOW, FINALLY COMPLETE. SO IT COMPRESSES YOUR, UH, DELIVERY SCHEDULE SO THAT YOU GET A, A PLANT OUT SOONER. UM, AND, UH, I, I REALLY DIDN'T FOCUS ON IT IN THE, UM, IN THAT FIRST CHART WITH THE DEMAND, BUT, UH, WE ARE ON PAPER, UH, FORECASTED TO BE OUT OF DEMAND OR OUT OF CAPACITY WITHIN THE NEXT, YOU KNOW, FIVE TO SEVEN YEARS. SO, UM, IT'S, IT'S SOMETHING THAT, YOU KNOW, THE SCHEDULE IS IMPORTANT TO US. AND, YOU KNOW, UM, I'LL GO OVER THIS, UH, NEXT MEETING. UH, WE SAW DURING THE WINTER FREEZE THAT WE WERE, UH, EVEN WITH THE BOW EAST, UH, PLANT ONLINE, WE WERE VERY MUCH AT OUR PRODUCTION CAPACITY. SO, UM, IT, IT REALLY HELPED TO HAVE THAT, YOU KNOW, CAPACITY ONLINE. AND, UH, THERE ARE TIMES WHEN I THOUGHT WE DIDN'T HAVE ENOUGH. WE, WE WERE VERY CLOSE. SO, UH, GETTING THIS, UH, PLANT EXPANDED AS SOON AS POSSIBLE IS ANOTHER, UM, I WOULD SAY, UH, IMPORTANT CONSIDERATION FOR US. SO YOU DON'T REALLY MENTION COST IN, IN THIS AT ALL. SO WHAT, HOW DOES THIS FARE IN A RISING COST ENVIRONMENT? SO, UM, SO YOU CAN LOCK IN YOUR PRICE EARLIER WITH A DESIGN BUILD CONTRACT. YOU CAN LOCK IT IN AT, YOU KNOW, 30% OR 60% DESIGN, WHEREAS YOU DON'T HAVE TO GO ALL THE WAY TO A HUNDRED PERCENT DESIGN TO GET TO FIGURE OUT YOUR COST. SO IT, TO ME, IT GIVES YOU MORE PRICE CERTAINTY. UM, THAT'S THE NEGOTIATED GMP? YES, MA'AM. YES MA'AM. UNLESS YOU DO, UNLESS YOU'RE TOO, TOO GOOD. AND THEN THEY GO BANKRUPT AND THEY WALK AWAY, AND THEN YOU'RE STUCK EITHER WAY. WELL, YOU, YOU HOPEFULLY SELECT A TEAM THAT IS, YOU KNOW, FINANCIALLY, UH, STABLE AND, AND, UH, WITH THIS SIZE PROJECT WE'RE, WE GET, UM, VERY LARGE REGIONAL, UH, INTEREST IN THIS. SO, UH, HAVE, HAVE WE SEEN PRICES COMING DOWN? NO, I HAVEN'T, STILL HAVEN'T STARTED COMING DOWN YET? NO. UM, THERE, THERE, IF YOU LOOK AT MAYBE SOME OF THE INDIVIDUAL, UM, UH, MATERIALS SUCH AS LIKE, UH, I THINK LUMBER, YOU SAW SOME, UH, PRICE NORMALIZE AND COME BACK DOWN. UM, BUT PVC, UH, STEEL HAS NORMALIZED A LITTLE BIT. IT HASN'T COME DOWN, BUT IT, I THINK IT'S STOPPED GOING [00:15:01] UP. UH, PVC AND CONCRETE ARE, ARE, I THINK, STILL GOING UP. UM, AND WE'RE IN A REGION WHERE WE USE A LOT OF MATERIALS. YOU KNOW, CONSTRUCTION IS STILL BOOMING IN THIS AREA. SO, UH, I DON'T SEE AN END TO THAT TREND, YOU KNOW, IN THE NEAR FUTURE FOR, FOR SOUTHEAST TEXAS. SO TO ME, COST CERTAINTY IS, IS AN IMPORTANT FACTOR. YOU KNOW, SCHEDULE IS AN IMPORTANT FACTOR AND HAVING A TEAM THAT WE CHOOSE, YOU KNOW, UH, IS MORE IMPORTANT. HOW'S LEGAL FEEL ABOUT THIS? I ASK . UM, WE REVIEWED THE AGREEMENT AND, UM, WE HAVE NO PROBLEM WHAT THEY DO AGREE WITH STAFF THAT THIS RESOLUTION IS THE APPROPRIATE MECHANISM BY WHICH WE CAN ENTER INTO A DESIGN BUILD CONTRACT. SO, UM, I THINK, SO THIS KIND OF GOES OVER SOME OF THE, UM, PROS AND CONS OF EACH ONE. UM, AND AS I SAID, I THINK FOR OUR SITUATION, THE, UH, DESIGN BUILD IS THE ONE THAT, UH, I FEEL MOST CONFIDENT IN RECOMMENDING. UM, SO OUR RECOMMENDATIONS, UH, LAST SEPTEMBER WAS TO, UH, DO THE SIX MGD EXPANSION, UH, USE, UM, PROGRESSIVE DESIGN BUILD AND START THE PROCESS, UH, AS SOON AS POSSIBLE. THAT'S ALL I HAD. SO, UM, ANY OTHER QUESTIONS? SO ON THE, UH, ON THE METHOD, THE CONSTRUCTION MANAGER AT RISK, WHO, WHO WOULD BE LIKE THE OVERSEER FOR THE, ON THE CITY'S BEHALF TO ENSURE, YOU KNOW, ALL THINGS ARE GOING WELL, YOU KNOW, WATCHING OVER ON RB, SO THE CITY STILL HAS TO, UH, BASICALLY LOOK OUT, UH, I MEAN WE, WE STILL MANAGE THE PROJECT MM-HMM . UM, THE CONSTRUCTION MANAGER IS KIND OF AN ADVISOR. MM-HMM . UM, AND WE'RE, WE'RE RELYING ON THE ENGINEER AND THE CONSTRUCTION MANAGER. AND THE CONSTRUCTION MANAGER CAN EITHER, WHAT THEY CALL SELF PERFORM, HE CAN, UH, ACTUALLY CONSTRUCT THINGS HIMSELF OR, UH, HE WOULD BID OUT TO OTHER CONTRACTORS SO THAT THEY, THEY WOULD CONSTRUCT IT. OKAY. ALRIGHT. UM, IT'S ONE, WE, WE ARE USING THAT METHOD ON THE, UH, PUBLIC SAFETY BUILDING MM-HMM . THAT'S CURRENTLY BEING CONSTRUCTED. SO IT, IT, IT HAS ITS, UH, USES MM-HMM . OKAY. ALRIGHT. THANK YOU. UM, SO I, I I THINK IT'S BETTER, UH, TO SEE MORE. I THINK IT'S BETTER WHEN, UM, YOU'RE, UH, HAVE MORE QUESTIONS ABOUT THE DESIGN. SO IN, IN THE CASE OF, UH, THE EAST PLANT, THE DESIGN, UH, WE'RE EXPANDING A PLANT THAT'S ALREADY IN PLACE AND WE'RE NOT REALLY CHANGING THE, UH, THE BASIC, UH, YOU KNOW, UM, TREATMENT METHOD MM-HMM . UH, SO THERE'S NOT A LOT OF, UM, DESIGN QUESTIONS THAT WE HAVE. IT'S, YOU KNOW. RIGHT. MORE OR LESS JUST EXECUTING IT. YEP. THANK YOU. ALL RIGHT. THANK YOU. THANK YOU. OKAY, SO THIS, THIS IS AN ACTION ITEM THOUGH. PARDON ME? IT IS AN ACTION ITEM. YES. DO DO I HAVE A MOTION? I'LL MAKE THE MOTION THAT WE PROCEED WITH THE PROGRESSIVE DESIGN BUILD METHOD. IS THAT RIGHT? IS THAT, IS THAT WHAT WE'RE ASKING FOR? YES, SIR. OKAY. TO APPROVE THE RESOLUTION. APPROVE THE RESOLUTION. YES. UHHUH. ALRIGHT. I HAVE A MOTION. DO I HAVE A SECOND? I'LL SECOND. ALL RIGHT. A MOTION TO SECOND. ARE THERE ADDITIONAL QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. ALL RIGHT. NEXT, [b. Consider a resolution authorizing a water supply agreement with Lake Municipal Utility District.] WE WILL CONSIDER A RESOLUTION AUTHORIZING A WATER SUPPLY AGREEMENT WITH LAKE MUNICIPAL UTILITY DISTRICT. GOOD AFTERNOON EVERYONE. UM, AS STATED, THIS ITEM IS, UM, FOR RENEWAL OF AN EXISTING AGREEMENT, UH, WITH LAKE MUD. UH, WE ARE CURRENTLY THE PROVIDER TO, UH, THAT MUD DISTRICT. UH, THE PREVIOUS CONTRACT WAS FOR 1 MILLION GALLONS A DAY. UM, AS WE'VE TALKED IN MANY MEETINGS, UH, WE LOOK TO TRY TO CONSERVE WATER AND, YOU KNOW, THE CONTRACT CAPACITY AS MUCH AS WE CAN. SO IN THIS CASE, UH, WE WERE ABLE TO LOWER THE AMOUNT DOWN TO WHAT THEIR, [00:20:01] UM, ALTERNATIVE CAPACITY REQUIREMENTS ARE, WHICH IS, UM, 855,000 A DAY. SO WE WILL SEE A LITTLE BIT OF REDUCTION IN CONTRACT QUANTITY TO THIS PARTICULAR DISTRICT. AND SO THIS ITEM IS, UH, FOR APPROVAL OF THAT. ALRIGHT. THANK YOU. DO I HAVE A MOTION TO APPROVE? I'LL MAKE THE MOTION. HAVE A MOTION. SECOND ONE, SECOND MOTION AND SECOND QUESTIONS OR DISCUSSION? I HAVE A QUE. SO BASICALLY THIS IS JUST A CAPACITY NUMBER. THEY'RE, THEY'RE, WE'RE BILLING 'EM BASED ON WHAT THEY TAKE ANYWAYS, RIGHT? CORRECT. AND BY HAVING A LOWER CAPACITY THEN IT FREES UP MORE OF OUR CAPACITY. CORRECT. IS THAT, IS THAT HOW IT WORKS? THAT'S CORRECT. OKAY. YEP. ALRIGHT. ANY OTHER QUESTIONS? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE SIGN. MOTION CARRIES UNANIMOUSLY. THANK YOU. UM, [c. Consider a resolution awarding the Annual Liquid Ferric Chloride Contract to PVS Technologies, Inc.] NEXT WE WILL CONSIDER SOME CHEMICAL CONTRACTS. THE FIRST ONE, ITEM THREE C, CONSIDER A RESOLUTION AWARDING THE ANNUAL LIQUID FERRET CHLORIDE CONTRACT TO PVS TECHNOLOGIES INCORPORATED. ALRIGHT. HELLO EVERYONE. HAPPY NEW YEAR TO EVERYBODY AND HONOR TO OUR BOARD PRESIDENT AS WELL AS TO OUR BOARD MEMBERS. IT'S A PLEASURE TO SERVE WITH YOU. ALRIGHT. UM, I WOULD LIKE TO CONSIDER RESOLUTION AWARD THE ANNUAL LIQUID FAIR CHLORIDE CONTRACT TO PVS TECHNOLOGIES. UM, THIS PROPOSED RESOLUTION AWARDS THE ANNUAL LIQUID FAIR CHLORIDE CONTRACT TO PVS TECHNOLOGIES IN INC IN THE AMOUNT OF $1,416,000. UH, PVS WAS THE LOWEST BIDDER. UM, AND THIS PARTICULAR CHEMICAL IS USED IN THE COAGULATION PROCESS AT THE BAAH SURFACE WATER TREATMENT PLANT. UM, AS WELL AS THE BAWA EAST WATER TREATMENT PLANT STAFF RECOMMENDS APPROVAL. ALRIGHT, THANK YOU. DO I HAVE A MOTION TO APPROVE MOVE TO APPROVE SECOND. YES. MOTION AND SECONDED QUESTIONS. WHAT, WHAT WAS OUR CONTRACT LAST YEAR OUTTA CURIOSITY? THE CONTRACT AMOUNT, IT'S AN ANNUAL, IT'S AN ANNUAL CONTRACT AS FAR AS A DOLLAR AMOUNT. WHAT, WHAT WAS THE RATE? I CAN, I CAN REVIEW THAT INFORMATION AND BRING THAT BACK TO YOU EXPEDITIOUSLY. I DON'T HAVE THAT INFORMATION ON ME NOW, BUT WE CAN REVIEW THAT AND I CAN PROVIDE THAT TO YOU AS SOON AS POSSIBLE. I'M JUST CURIOUS TO SEE HOW THE DIFFERENCE IN COST. YEAH. WAS IT PBS TECHNOLOGIES AS WELL? IT WAS PPS TECHNOLOGIES AS WELL. SO WE ARE HAPPY WITH THEM. YES, WE'RE HAPPY WITH THEM AS WELL. ALRIGHT, ANY OTHER QUESTIONS? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? LIKE SIGN. MOTION CARRIES UNANIMOUSLY. [d. Consider a resolution awarding the Annual Liquid Hydrofluorosilicic Acid Contract to Univar Solutions USA, Inc.] ITEM 3D, CONSIDER A RESOLUTION AWARDING THE ANNUAL LIQUID HYDROFLUORIC ACID CONTRACT TO UNIVAR SOLUTIONS USA INCORPORATED. ALRIGHT. ALRIGHT. WE'D LIKE TO CONSIDER RESOLUTION AWARD THE ANNUAL LIQUID HYDROFLUORIC ACID CONTRACT TO UNIVAR SOLUTIONS INC. UH, THIS PROPOSED RESOLUTION AWARDS THE ANNUAL LIQUID HYDROFLUORIC ACID CONTRACT TO UNIVAR SOLUTIONS, UH, IN THE AMOUNT OF $71,636 AND 25 CENTS. ONCE AGAIN, UH, UNIVAR SOLUTIONS WAS THE LOWEST BIDDER. UM, IN THIS PARTICULAR CHEMICAL. IT IS PRIMARILY USED TO PROTECT THE DENTAL HEALTH OF ADULTS AND CHILDREN BY HELPING TO REBUILD AND STRENGTHEN, UH, TWO THEM. SO STAFF RECOMMENDS APPROVAL. THANK YOU. DO I HAVE A MOTION? I MAKE THE MOTION. FRANK MAKES THE MOTION. DO WE HAVE A SECOND? I'LL SECOND MAKES THE SECOND. UM, ANY QUESTIONS OR DISCUSSION? AGAIN, THIS IS THE SAME SUPPLIER WE'VE BEEN USING? YES. OKAY. ALRIGHT. UH, IF THERE'S NO FURTHER QUESTIONS, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. OPPOSED? LIKE, SIGN MOTION CARRIES UNANIMOUSLY. THIS WILL [e. Consider a resolution awarding the Annual Sodium Hydroxide 25% and 50% Contract to Univar Solutions USA, Inc.] BRING US TO ITEM THREE E TO CONSIDER A RESOLUTION AWARDING THE ANNUAL SODIUM HYDROXIDE 25% AND 50% CONTRACT TO UNIVAR SOLUTIONS USA INCORPORATED. ALRIGHT. ALRIGHT. THIS PROPOSED RESOLUTION AWARDS THE ANNUAL SODIUM HYDROXIDE 25% AND 50% CONTRACT TO VAR SOLUTIONS USA INC. AND THE AMOUNT OF 297 $500,038. UH, THEY WERE ALSO THE LOWEST BIDDER AS WELL. AND THIS PARTICULAR CHEMICAL IS USED FOR PH CONTROL AND TO MINIMIZE CORROSION. THANK YOU. DO YES. DO I HAVE A MOTION? YES, YOU DO. I HAVE A MOTION AND A SECOND. OKAY. UM, ANY QUESTIONS? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE SIGN MOTION CARRIES UNANIMOUSLY. [f. Consider a resolution awarding the Annual Liquid Zinc Sodium Polyphosphate Contract to Shannon Chemical Corporation.] AND LASTLY WITH THREE F, WE WILL CONSIDER A RESOLUTION AWARDING THE ANNUAL LIQUID ZINC SODIUM POLYPHOSPHATE CONTRACT TO SHANNON CHEMICAL CORPORATION. ALRIGHT, NOW THIS PROPOSED RESOLUTION AWARDS THE ANNUAL LIQUID ZINC SODIUM POLYPHOSPHATE CONTRACT TO SHANNON CHEMICALS CORPORATION IN THE AMOUNT OF [00:25:01] $370,882 AND 70 CENTS. THE BIDS WERE OPEN ON MONDAY, DECEMBER 19TH, 2022, AND OF COURSE SHANNON HAD THE LOWEST UH, BID AS WELL. ALL RIGHT, THANK YOU. I DO HAVE A MOTION. I'LL MAKE THE MOTION. A MOTION. SECOND, SECOND QUESTIONS. YOUR, YOUR BID PROCESS IS THAT, IS THAT, UM, HOW DO Y'ALL GO? HOW'S THE BID PROCESS WORK? YEAH, SO WE TYPICALLY GO THROUGH OUR CONTRACT COORDINATOR. OKAY. AND SHE ORGANIZES ALL OF THE BID PROCESS, THE BID PACKETS, AS WELL AS THE ADVERTISING FOR THE BID. OKAY. SO IT GOES TO LOCAL PAPER, EVERYBODY SENDS PACKETS, GO OUT, GOES IT GOES TO LOCAL. THAT'S RIGHT. OKAY. CORRECT. CORRECT. YEAH. SO SHE HELPS TO MANAGE THAT AND ONCE THAT INFORMATION IS SOLIDIFIED, UM, LIKE WE WERE SAYING, I WAS SAYING EARLIER ON DECEMBER 19TH, UM, THEY OPEN THE BID UP AND THEN IT'S AWARDED AT THAT PARTICULAR TIME. SO. SURE. ALRIGHT. THANK YOU. ALRIGHT. MOVE YOUR PROOF. WE, WE HAVE, WE'VE ALREADY DONE THAT. OKAY. IF THERE'S NO FURTHER QUESTIONS, I'LL ASK FOR THE VOTE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE SIGN MOTION CARRIES UNANIMOUSLY. UM, THANK YOU VERY MUCH. OKAY. THANK YOU. APPRECIATE THAT. AND MR. MCKAY, I DO HAVE THE DATA FROM LAST YEAR FOR PBS. OH GREAT. YES. SO IT WAS $892,800. SO IT WENT FROM 890 TO 1.4. YES. THAT'S BIG. IT DID. IT'S BIG. YES. THAT, THAT'S HELPFUL. THANK YOU. WAS IT AN INCREASE IN QUANTITY OR JUST AN INCREASE IN UNIT PRICE? WELL, UNIT PRICE. OKAY. UNIT PRICE. PARTICULARLY RIGHT NOW WITH WHAT'S GOING ON WITH SUPPLY AND DEMAND IN THE INDUSTRY, UM, YOU'RE SEEING INCREASES IN PRICES AND CHEMICALS RIGHT NOW THROUGHOUT THE UNITED STATES. SO THIS FOLLOWED SUIT WITH THOSE INCREASES IN PRICES. ALRIGHT. THANK YOU. THANK YOU. THANK YOU VERY MUCH. THANK YOU. UM, [a. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending September 30, 2022.] NEXT WE'LL REMOVE TO THE REPORT SECTION ITEM FOUR A. WE'LL RECEIVE THE BAYTOWN AREA WATER AUTHORITY QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING SEPTEMBER 30TH, 2022. GOOD AFTERNOON. I AM THERESA MCKENZIE, THE CFO IN FINANCE. UM, AND I'M HERE TO PRESENT THE FOURTH QUARTER FINANCIAL REPORT. UM, WE ENDED THE YEAR AT $15,274,200. UM, OUR TOTAL EXPENDITURES WAS $16,365,720. AND THAT LEFT US WITH AN ENDING WORKING CAPITAL OF $2,000,705 705,630. AND WE ARE A LITTLE LESS THAN LAST YEAR DUE TO BRINGING IN LESS REVENUE AND SPENDING MORE EXPENDITURES THIS YEAR. AND ON AS FAR AS THE CIP GOES, WE HAD THREE MILLION SEVEN THOUSAND SIX HUNDRED FIFTY FOUR THOUSAND DOLLARS IN REVENUE. OUR EXPENDITURES, WHICH WERE, UH, CIP RELATED WERE $1,792,001. AND THEN OUR ENDING CAPITAL WAS $5,319,691, WHICH WE WERE A LITTLE OVER LAST YEAR BY $1.1 MILLION. ANY QUESTIONS ON THE FINANCIAL PART? AND THEN I'LL GO TO INVESTMENTS. DOES ANYONE HAVE ANY QUESTIONS? WELL, WHEN IT SAYS REVENUE FROM WWIS, WHAT DOES THAT MEAN? THAT IS, UM, A TRANSFER FROM OUR WATER AND SEWER, UH, INTEREST IS SINKING FUND. THAT'S WHAT THAT MEANS. DO WE EVER RAISE THE PRICES WITH, TO THE WATER? WE SELL TO THE CITY OF BAYTOWN? 'CAUSE I KNOW THEY'RE RAISING IT TO THE PEOPLE ON THE STREET. YES. UM, IF YOU RECALL, UM, IT'S BEEN SOME TIME WE DID A, UH, WE HAD OUR CONSULTANT COME IN AND WE DID A, UH, A COST OF SERVICE AND A RATE STUDY AND YOU KNOW, IN THAT IT WENT OVER ALL OF THE CUSTOMERS INCLUDING CITY OF BAYTOWN. SO WHEN WE DO RATE INCREASES, IT IS ENCOMPASSING OF CITY OF BAYTOWN. OKAY, THANKS. THAT WAS A LONG, THAT WAS A WHILE BACK. BUT YEAH. ALRIGHT, ANY OTHER QUESTIONS OR DISCUSSION? ALRIGHT, THANK YOU VERY MUCH. OKAY. UM, [a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 15, 2023, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ] AND THAT BRINGS US TO THE LAST ITEM ON OUR AGENDA, THE MANAGER'S REPORT. GOOD AFTERNOON. UM, OBVIOUSLY I'M NOT JASON REYNOLDS. UM, MY NAME'S BRENT GARY AND I HAVE, UH, RECENTLY BEEN APPOINTED TO SERVE IN THE ASSISTANT CITY MANAGER ROLE. UM, MYSELF AND MS. UH, CAROL FLINT, UM, HAVE BEEN TASKED, UH, TO SERVE AS INTERIM ASSISTANT CITY MANAGERS, UH, FOR, UM, UH, FOR A PERIOD OF TIME, UH, TO KIND OF HELP, UH, YOU KNOW, GET EVERYTHING UP AND RUNNING AND, UM, YOU KNOW, MAKE [00:30:01] SURE THAT, UH, THAT WE CAN SUPPORT THE STAFF AND, AND, UM, BY EXTENSION THE COUNCIL AND THE BOARDS AND COMMISSIONS. UM, SO ONCE AGAIN, MY NAME'S BRENT GARY. I'VE BEEN IN LOCAL GOVERNMENT FOR A LITTLE OVER 20 YEARS NOW AND I'M VERY EXCITED TO BE HERE, HAPPY TO SERVE. UM, PRIOR TO THIS, UM, I WAS HELPING OUT ACTUALLY, UH, OVER IN PUBLIC WORKS. UM, IN FACT, MY NAME'S ON, UH, ONE OF THE, UH, UH, ONE OF THE, UH, ITEMS AS YOU'LL NOTICE. UM, AND, UH, I'M, YOU KNOW, BEEN, UH, HELPING OUT, UH, WITH, UH, SOME OF THEIR PROJECT ITEMS, SOME OF THEIR CONTRACT DOCUMENTS WORKING WITH SCOTT. AND I'M HAPPY TO CONTINUE TO SERVE, UH, THE CITIZENS OF BAYTOWN. UM, AND NOW THAT I'VE INTRODUCED MYSELF, I'LL ALSO INTRODUCE, UH, MR. MIKE LEACH. MR. LEACH IS THE ASSISTANT DIRECTOR, UH, IN PUBLIC WORKS FOR CAPITAL PROJECTS. UH, HE TOOK OVER FOR ANDREA AND, UM, HE AND I HAVE ACTUALLY WORKED TOGETHER, UH, UH, JUST RECENTLY, UH, OVER IN BEL AIR. SO I'M HAPPY TO SEE, UH, UH, MIKE OVER HERE AS WELL. AND THE OTHER ITEM, UH, WE'LL ANNOUNCE, UH, THAT THE NEXT, UH, B MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 15TH, UM, AT 4:30 PM HERE IN THE COUNCIL CHAMBERS. THANK YOU. ALRIGHT, THANK YOU. AS THERE IS NO FURTHER BUSINESS ON THIS AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN. MOTION TO ADJOURN. SECOND. SECOND. ALL THOSE IN FAVOR? AYE. AYE. THANK YOU VERY MUCH. * 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.