* 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] AREA WATER AUTHORITY. UM, CALL THE MEETING TO ORDER AND ANNOUNCE THAT WE DO HAVE A QUORUM. OUR FIRST [a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on July 19, 2023. ] ITEM OF BUSINESS TODAY WILL BE TO CONSIDER APPROVING THE MINUTES OF THE AUTHOR'S REGULAR MEETING HELD ON JULY THE 19TH, 2023. I MAKE THE MOTION. I HAVE A MOTION. I SECOND MOTION. AND SECOND. ARE THERE QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. A. AYE. OPPOSED LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. NEXT, WE [a. Consider a resolution authorizing a water supply agreement with Harris County Water Control and Improvement District No. 1.] WILL CONSIDER A RESOLUTION AUTHORIZING A WATER SUPPLY AGREEMENT WITH HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NUMBER ONE. GOOD AFTERNOON, MADAM PRESIDENT AND BOARD. UH, THE ITEM BEFORE YOU IS TO CONSIDER, UH, APPROVING THE RENEWAL OF A CONTRACT WITH HARRIS COUNTY WATER CON WATER CONTROL IMPROVEMENT DISTRICT NUMBER ONE. UM, THEY HAVE BEEN A LONGSTANDING BALL CUSTOMER. THEIR, THEIR CONTRACT IS EXPIRING COMING UP, UM, IN SEPTEMBER, AND THIS ITEM WILL, UH, GIVE THEM EXTENSION. IT WILL RUN IN CONJUNCTION WITH THE CURRENT BWA CONTRACT WITH THE CITY OF HOUSTON. SO IT WILL EXTEND FROM NOW TO THE 2040 TERM. ALL RIGHT. DO I HAVE A MOTION? SO MOVE. I HAVE A MOTION. SECOND. I HAVE MOTION TO SECOND ARE THE QUESTIONS OR DISCUSSION. SO IS THIS AN EXPANSION OF THE AMOUNT OF, UH, WATER WE'RE GONNA BE TAKING OR NO EXACT SAME, UM, QUANTITY. UM, THEY HAVE NOT ASKED FOR AN INCREASE. UM, THEY ARE, UM, INTERESTED IN AN ADDITIONAL TAKE POINT, ADDING AN ADDITIONAL TAKE POINT. UM, WE HAVE NOT APPROVED THAT YET. UM, BUT EVEN WITH THAT, THEY HAVE EXPRESSED THAT THEY WILL NOT BE REQUESTING AN, AN ADDITIONAL INCREASE IN WATER CAPACITY. SO IT'LL BE THE SAME PRICE AS WHAT WE ALREADY HAVE WITH, WITH OUR EXISTING CONTRACT. YEAH. THEY'LL HAVE THE SAME RESERVATION. YEAH. SO, UM, WE UPPED THEIR CONTRACT A FEW YEARS BACK, UM, JUST BY A SMALL AMOUNT. AND SO THAT'S STILL SUFFICIENT FOR THEIR USAGE AND THEIR NEEDS AS FAR AS QUANTITY, BUT CORRECT. YES. I THINK MR. MCKAY WAS ASKING ABOUT THE PRICE. YEAH, I'M ASKING MORE PRICE. THE, THE PRICE WILL BE ON BASED ON THE RATE STRUCTURE. SO WHENEVER YOU GUYS, THIS IS THE EXISTING RATE STRUCTURE? CORRECT. OKAY. YES. SO THEY, THEY'LL SEE INCREASES IN CONJUNCTION WITH THAT. THAT TELLS YOU THEY'RE REALLY DOING GOOD ON THAT RATE STRUCTURE, , THEY'RE NOT ASKING FOR MORE. RIGHT. AND HOW MUCH IS THE QUANTITY? 850. YEAH. 850,000 GALLONS A DAY. OKAY. GOTCHA. ALRIGHT. ARE THERE ANY OTHER QUESTIONS OR DISCUSSION? I GUESS, I GUESS MINE WAS ON THE LINE OF HIS, THEY'VE FORECASTED FOR GROWTH AND IT LINES UP WITH, WITH OUR AVAILABLE WATER AND SUCH. UM, ALL THAT LINES UP. YEAH. CORRECT. SO WE'VE ASKED THEM DO THEY ANTICIPATE ANY INCREASES, UM, YOU KNOW, IN THE NEAR FUTURE AND THEY'VE EXPRESSED THAT THEY DON'T. SO IF THAT CHANGES, YOU KNOW, THEY'LL, THEY'LL HAVE TO OF COURSE, FORMALLY REQUEST THAT BEFORE AND IT'D BE SUBJECT TO, TO YOUR APPROVAL. ALRIGHT. DOES ANYONE ELSE HAVE A QUESTION? ALRIGHT. ALL RIGHT. HEARING NONE, ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. THANK YOU. UM, NEXT WE [b. Consider a resolution authorizing the renewal of the Annual Mechanical Services Contract with IPS Pump Services, Inc.] WILL CONSIDER A RESOLUTION AUTHORIZING THE RENEWAL OF THE ANNUAL MECHANICAL SERVICES CONTRACT WITH IPS PUMP SERVICES INCORPORATED. ALL RIGHT. FIRST AND FOREMOST, I WOULD LIKE TO SHOW HONOR TO OUR BOARD PRESIDENT AS WELL AS OUR BOARD AND ADMINISTRATIVE STAFF. IT'S AN HONOR TO SERVE WITH YOU. THANK YOU. UM, UH, SO WE WOULD LIKE TO, UH, PROPOSE A RESOLUTION FOR THE RENEWAL OF THE ANNUAL SERVICES MECHANICAL CONTRACT NOT TO EXCEED $300,000. UM, IF YOU CAN RECALL ON JULY 20TH, 2022, THE AUTHORITY APPROVED THE ANNUAL MECHANICAL SERVICES CONTRACT WITH IPS PUMP SERVICES. UH, THIS IS A ONE YEAR ANNUAL TERM CONTRACT WITH THE OPTION FOR TWO ADDITIONAL RENEWALS FOR A TOTAL OF THREE TERMS. THE SCOPE OF THIS CONTRACT RENEWAL INCLUDES THE REPAIR AND REPLACEMENT OF PUMPS, MOTORS, AND MECHANICAL EQUIPMENT AS WELL. UH, SO BOWER OPERATIONS IS HIGHLY SATISFIED WITH THE RESULTS WITH IPS PUMP SERVICES AND THEY'VE DONE AN EXCELLENT JOB, ESPECIALLY WITH CRITICAL REPAIRS AND RESPONDING WITH EMERGENCIES. UM, WE WOULD LIKE TO RENEW THIS CONTRACT. STAFF RECOMMENDS APPROVAL. ALRIGHT. ALL RIGHT. THANK YOU. UM, DO I HAVE A MOTION MOVE TO APPROVE? UM, I SECOND, I HAVE A MOTION TO SECOND. ARE THERE QUESTIONS OR DISCUSSION? I'M JUST ASKING THEM, [00:05:01] LOOKING AT THE LETTER HERE FROM THE VICE PRESIDENT AND COO, THAT'S NOT ME. IT'S GOT MY SAME NAME. DID I WRITE THAT ? I GOT YOU. OKAY, I GOT YOU. ACTUALLY, IT'S TO ME, I TAKE IT BACK. . I WASN'T AWARE THAT I HAD RECEIVED THIS, BUT UH, THAT'S ALL I HAVE MA'AM. YEAH. DOES ANYONE ELSE HAVE A QUESTION? OR, SO DO THEY BASICALLY ARE LIKE A INSURANCE COMPANY TYPE, BUT IF THEY COME IN AND SO IT'S NOT LIKE SCHEDULED MAINTENANCE, BUT THEY'RE THERE IN EMERGENCY TYPE SITUATION, CORRECT? CORRECT. THEY PROVIDE SERVICES ON PUMPS, MOTORS, AND ALL MECHANICAL REPAIRS. SO IT WOULD BE, LET'S JUST SAY WE HAD A MOTOR GO OUT. WE ARE ABLE TO CALL IPS. THEY COME IN. IT'S VERY EFFECTIVE AND EFFICIENT. UM, YOU DON'T HAVE TO GO THROUGH A TRADITIONAL PROCUREMENT PROCESS, WHICH, WHICH CAN CAUSE A LOT OF DELAYS. UM, THEY'RE ABLE TO GET THAT PUMP, REPAIR IT, SERVICE IT, AND BRING IT RIGHT BACK TO US. SO IT'S BEEN PIVOTAL. WE'VE SERVICED 10 PUMPS, UM, UNDER THIS CONTRACT, UH, FOR A TOTAL OF $264,000, 625, 260 $4,000, $625 AND 99 CENTS. SO ALMOST $300,000 WE'VE, WE'VE USED JUST IN THIS PAST YEAR WITH THOSE 10 PUMP REPAIRS THAT WE'VE DONE. OKAY. ALL RIGHT. I I, I JUST WANT TO ASK VERY BRIEFLY, UM, YOU SAID YOU WERE VERY SATISFIED WITH YOUR PREVIOUS PERFORMANCE AND SERVICE AND THAT OF COURSE IS, IS PROBABLY OUR BIGGEST INTEREST, BUT CORRECT. WE ALSO ARE ALWAYS INTERESTED IN PRICE AND UH, EFFICIENCY IS IN TERMS OF OUR, OUR DOLLARS, SO. RIGHT. UM, WAS THERE ANY REASON TO FEEL THAT WE NEEDED TO GO OUT AND LOOK AT OTHER COMPANIES ON A, A PRICE BASIS? FROM A PRICE STANDPOINT, NO. UH, THEY HAVE VERY COMPETITIVE PRICING. UM, AND ACTUALLY WE HAD A PUMP SERVICE BEFORE THE CONTRACT WAS APPROVED, UM, WHICH COST MORE FROM A COMPANY CALLED PENSKO THAT WE WORK WITH. SO THEIR PRICES ARE UNDER, UH, MUCH OF THEIR COMPETITION IN THE SURROUNDING AREA. ALRIGHT. AND JUST SO I UNDERSTAND, THE TWO ADDITIONAL TERMS THAT YOU RENEW, IT'S, IT'S BASICALLY THE SAME $300,000 CAP? CORRECT. AND THAT'S WHY THEY ONLY GIVE YOU THE TWO BECAUSE THEN LITTLE WHILE THERE, THEY MIGHT WANNA BUMP IT UP. YES, MA'AM. IT'S THE SAME CAP. OKAY. THE SAME CAP. IF YOU, UM, SORRY, IF YOU HAVE A CATASTROPHIC FAILURE IS, I MEAN, IS THERE A CHANCE OF RUNNING OVER THAT CAP? THERE'S A POSSIBILITY, YES. OKAY. UM, BUT SINCE IT SPREAD OUT OVER THE YEAR MM-HMM . UM, LIKE I MENTIONED EARLIER, 10 PUMP SERVICES TOOK US TO THAT $260,000 MARK MM-HMM . UM, SO IT WOULD HAVE TO BE NUMEROUS REPAIRS OVER TIME. THAT WOULD TAKE US TO THAT, THAT POINT. OKAY. UM, NORMALLY ONE PUMP, DEPENDING UPON HOW BIG THAT PUMP IS, THE REPAIR FOR THAT PUMP IS GONNA TYPICALLY RANGE OFF ESTIMATE BELOW $50,000 FOR ONE PUMP. SO LET'S JUST SAY WE HAD A, A CRITICAL PUMP GO DOWN, IT WILL BE UNDER THAT $50,000 MARK SO IT WOULDN'T EXCEED THE CAP. IT WOULD HAVE TO BE MULTIPLE REPAIRS OVER TIME THAT WOULD PUSH US TO EXCEED THAT CAP. RIGHT. AND ARE THESE ANY KIND OF PUMPS THAT Y'ALL HAVE ARE, ARE THEY SPECIFIC TO, OR ARE YOUR CHEMICAL PUMPS, YOUR WATER PUMPS EVERYTHING? CORRECT. CORRECT. THEY, THEY NORMALLY, OUR SMALLER PUMPS, LIKE OUR PERISTALTIC PUMPS, UM, THEY DO SERVICES ON THOSE, BUT THIS IS MAINLY APPLIED TO OUR, UH, VERTICAL PUMPS THAT WE HAVE. OUR VERTICAL TURBINE PUMPS, OUR LARGER PUMPS THAT WE HAVE. UM, BUT IT APPLIES ACROSS THE BOARD. UM, THEY SERVICE ALL PUMP SERVICES. OKAY. THANK YOU. AND IF I'M READING THIS RIGHT, IF WE HAVE A NEED TO GO OVER THE 300,000, JAY HAS THE ABILITY TO APPROVE THAT UP TO 50,000, IS THAT WHAT I'M READING? 50? YEAH, THAT'S ON THE CHECKPOINT? YEAH, THAT, THAT'S CORRECT. THAT'S CORRECT. OKAY. SO WE WOULDN'T HAVE TO COME BACK TO THIS BOARD. OKAY. TO GET THAT ADDITIONAL, UH, COST APPROVED. JAY COULD DO THAT. OKAY. OKAY. ONLY IF IT EXCEEDED THE 300 IF IT EXCEEDED 300,000, RIGHT? YEAH, ONCE. RIGHT. ALRIGHT. ALRIGHT. ANYONE ELSE HAVE A QUESTION OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR OF SAY AYE. AYE. AYE. OPPOSED? LIKE SIGN. MOTION CARRIES UNANIMOUSLY. THANK YOU. THANK YOU. THANK YOU. UM, WE'LL MOVE TO THE REPORT [a. Receive a report on status of the Baytown Area Water Authority East Expansion Project.] SECTION OF THE AGENDA AND RECEIVE A REPORT ON THE STATUS OF THE AUTHORITIES EAST EXPANSION PROJECT. GOOD AFTERNOON ONCE AGAIN. UM, TO PROVIDE YOU YOUR UPDATE TODAY, WE HAVE OUR CONSULTANT, UH, BGE, UH, REPRESENTATIVE LINDSEY KOVAR WILL COME UP AND GIVE YOUR PRESENTATION. THANK YOU. [00:10:01] IT'S NICE TO SEE EVERYBODY AGAIN TODAY. SO I DID BRING SLIDES, UH, WITH ME TODAY. UM, I WILL ADMIT THEY'RE, THEY'RE STILL NOT THE MOST EXCITING SLIDES AS WE'RE VERY MUCH IN THE PAPERWORK, YOU KNOW, SIDE OF THINGS RIGHT NOW. BUT JUST WANTED TO GIVE YOU, UM, A LITTLE BIT OF UPDATE ON THOSE ON THIS PAPERWORK. SO THE TWO BIGGEST DOCUMENTS THAT WE'VE REALLY BEEN FOCUSED ON FOR THE LAST MONTH IS THE PROJECT MANAGEMENT AND EXEC EXECUTION PLAN AND THE BASIS OF DESIGN REPORT. SO THE PROJECT MANAGEMENT AND EXECUTION PLAN. WHAT I HAVE PROVIDED YOU HERE IS THE CURRENT OUTLINE FOR THAT PLAN. THESE ARE ALL THE CHAPTERS THAT WE CURRENTLY HAVE IN THERE. I'M NOT GONNA GO THROUGH ALL OF THEM, THAT WOULD TAKE ME A VERY LONG TIME. BUT JUST KIND OF IN GENERAL, IT IS DOCUMENTING THINGS LIKE HOW ARE YOU GONNA DOCUMENT THIS IF THERE'S A CHANGE IN THE DESIGN OF CONSTRUCTION, YOU KNOW, HOW IS THAT MANAGED? UM, WHAT KIND OF LEVEL OF SCHEDULE ARE WE LOOKING FOR? IF THERE'S A CHANGE IN THE SCHEDULE, AGAIN, HOW IS THAT MANAGED? JUST, JUST REALLY KINDA LAYING OUT HOW DO WE EXPECT THIS PROJECT TO MOVE FORWARD? AND SO THIS IS WHAT THIS DOCUMENT IS INCLUDING. SO THAT HAS BEEN OUR BIG FOCUS, UM, IN THE LAST MONTH OR SO. AND, UM, THE INTENTION IS FOR US TO GET THAT DRAFT INTO THE CITY FOR REVIEW IN EARLY SEPTEMBER. UH, NEXT IS THE BASIS OF DESIGN REPORT. UM, AND, AND AGAIN, WE'VE TALKED ABOUT THIS A LITTLE BIT, JUST KIND OF REMINDER, THIS IS NOT THE DESIGN, YOU KNOW, OF THE PROJECT, BUT THIS IS WHAT WE ARE GOING TO GIVE TO THE DESIGN BUILD TEAMS TO SO THAT THEY UNDERSTAND WHAT IS THE SCOPE OF THE DESIGN THAT THEY WILL BE WORKING ON. IT INCLUDES ALL THE NECESSARY FACILITIES TO EXPAND THE PROJECT, BUT IT'LL ALSO INCLUDE SOME OF THE KIND OF THE WISHLIST ITEMS OR SOME OF THE, UM, CURRENT OPERATIONAL ISSUES GOING ON WITH THE PLANT THAT WE'RE GONNA WANT THAT DESIGN BUILD TEAM TO LOOK AT AS A PART OF THEIR DESIGN. SO WE DID THE SITE PLAN. UM, WE'VE BEEN LOOKING AT SOME OF THE EXISTING INFORMATION THAT WAS PROVIDED TO US. THERE WAS AN ELECTRICAL STUDY, SOME O AND M MANUALS THAT WE'VE BEEN REVIEWING, UM, CONTINUALLY ASKING, UM, FOR ADDITIONAL INFORMATION AS WE'RE WE'RE LOOKING AT THIS. AND AGAIN, THE INTENTION IS FOR US TO GET THE DRAFT OF THE SPACES INTO THE CITY IN SEPTEMBER, UH, FOR THEIR REVIEW. SO IT, THIS SOUNDS LIKE WE'RE STARTING FROM SCRATCH ON THE DESIGN. WE JUST BUILT A STATE OF THE ART WATER PLAN. WOULD THEY NOT JUST COPY MOST OF IT AND JUST TWEAK SOMETHING HERE AND THERE? THEY WOULD COPY, THEY WOULD COPY A GOOD PART OF IT. BUT I WOULD SAY THERE ARE SOME FACILITIES THAT DON'T WORK AS WELL, YOU KNOW, AS, AS OPERATION WOULD LIKE THAT ARE REQUIRING SOME ADDITIONAL MAINTENANCE, UM, THAT THEY WOULD LIKE TO SEE US AS A PART OF THIS DESIGN. COULD THAT BE FIXED? AND SO YOU'RE, AND THAT'S FROM FEEDBACK FROM OUR GUYS? YES. THAT WAS A PART OF THE SITE PLAN AND SOME OF THE ADDITIONAL MEETINGS THAT THEY HAD. THEY, THEY PUT TOGETHER A LIST BASICALLY FOR THINGS THAT, THAT THEY WOULD WANT US TO LOOK AT AND NOT ALL OF IT, YOU KNOW, MAY BE ABLE, YOU KNOW, TO BE FIXED. THAT'S PART OF THE MEETING WE'RE GONNA BE HAVING WITH FINANCE IN THE NEXT COUPLE OF WEEKS. LIKE WHAT IS THE BUDGET FOR THIS PROJECT? 'CAUSE YOU JUST MAY NOT HAVE, YOU KNOW, THE FUNDS TO FIX EVERYTHING. UM, BUT WE'RE GONNA TRY TO FIX AS MUCH AS WE CAN, YOU KNOW, IN THE BUDGET AND IT MAY BE UM, ONE OF THOSE WHERE WE FIX IT, UH, SO IT WORKS, UH, BUT NOT FIX IT TO THE CADILLAC, YOU KNOW, SO YOU JUST DON'T HAVE THE MONEY FOR IT. SO ALL THAT'S GONNA BE LOOKED AT. SO WHEN YOU SAY FIX IT, IT'S JUST REALLY ON THE EXPANSION, YOU'RE NOT GOING BACK AND FIXING THE ORIGINAL, ARE YOU? THERE ARE PIECES OF THE ORIGINAL THAT WE'RE GONNA BE LOOKING AT MODIFYING TO MAKE IT SO IT OPERATES BETTER WITH LESS MAINTENANCE. YES. CAN YOU BRIEFLY SUMMARIZE WHAT SOME OF THOSE PARTS ARE? YEAH, SO FOR INSTANCE, SOME OF YOUR PUMPS AND MOTORS HAVE ROUTINELY GONE DOWN. UM, AND WITH IT ONLY BEING A COUPLE YEARS OLD, YOU WOULDN'T EXPECT TO SEE THAT, YOU KNOW, ON THE MOTOR SIDE Y'ALL BURN, I BELIEVE IT'S 19, YOU KNOW, OF THEM TO DATE. SO THERE IS EITHER AN ELECTRICAL ISSUE OR THEY'RE NOT OPERATING WHERE THEY NEED TO BE. AND SO ONE OF THE THINGS THAT WE WOULD HAVE THE DESIGNER LOOK AT IS LOOK AT THE ELECTRICAL SETUP TO SEE IF THERE'S SOMETHING THAT IS CAUSING THOSE, THOSE MOTORS TO BURN. SO THAT WOULD BE ONE EXAMPLE OF IT. YEAR FOUR BASE WEREN'T BUILT WITH LINERS, SO THAT MAY CAUSE MAINTENANCE IN THE FUTURE. SO WE WOULD BE LOOKING AT COULD WE ADD LINERS, YOU KNOW, INTO THIS. THERE'S ALSO SOME, SOME CHEMICAL, YOU KNOW, CONCERNS THAT ARE CAUSING SOME OPERATIONAL ISSUES AND THERE'S A FEW OTHER THINGS, BUT THOSE ARE SOME OF THE EXAMPLES THAT WE HAVE OUT THERE. ALRIGHT, THANK YOU. OKAY. AND IF YOU WANT FOR NEXT, UM, MEETING, WHAT WE CAN DO IS WE CAN BRING THAT, THAT FULL LIST FOR Y'ALL, FOR Y'ALL TO SEE. THAT'D BE GOOD. YEAH. SO ON THE PROCUREMENT DISCUSSIONS, UM, THIS IS, THIS IS NEW FROM WHAT I HAD SUBMITTED PREVIOUSLY. 'CAUSE THIS IS A DISCUSSION WE JUST HAD, I BELIEVE WHEN I PRESENTED TO Y'ALL A FEW MONTHS AGO, WE TALKED ABOUT HOW A DESIGN BUILD COULD BE PROCURED IN, IN BASICALLY TWO PARTS WHERE YOU WOULD DO AN RFQ THAT IS REALLY, YOU KNOW, EXPERIENCE BASED. AND THEN FROM THAT RFQ YOU WOULD DO A SHORT LIST AND THEN YOU WOULD HAVE, UH, AN RFP AND THEN YOU WOULD DO INTERVIEWS AND THEN YOU WOULD SELECT [00:15:01] FROM THERE TALKING TO THE STAFF AND TALKING THROUGH WHAT WE THINK THE UM, INTEREST IS GONNA BE AND THE TEAMS THAT WE'RE GONNA GET, WE'VE DECIDED TO DO A SHORTEN THAT AND WE'RE JUST GOING TO HAVE KIND OF A SINGLE RFP, YOU'LL STILL GET ALL THE INFORMATION, WE'RE JUST GONNA GET IT AS A PART OF THIS INITIAL RFP. AND THEN AFTER THE RFP THEN WE'LL HOLD THE INTERVIEWS FOR Y'ALL TO SELECT THE DESIGN BUILD TEAM. UH, AND AGAIN, THE REASON WE KIND OF WENT THAT WAY IS THAT THIS DESIGN FOR A DESIGN BUILD IS, IS REALLY NOT VERY COMPLICATED. SO I DON'T THINK YOU NEED TO HAVE BOTH OF THOSE STEPS. WE KNOW OF AT LEAST THREE TEAMS THAT WILL PROBABLY BID ON IT. I DON'T THINK YOU'RE GONNA GET MORE THAN I WOULD SAY THREE TO FIVE. AND SO JUST HAVING THOSE INTERMEDIATE STEPS JUST DIDN'T, WE JUST DON'T THINK IS NEEDED. BUT HAVING THREE TO FIVE IS VERY GOOD. I THINK YOU'LL GET QUALIFIED TEAMS FROM THERE. SO THIS WILL ALLOW US TO SHORTEN UP THAT PROCUREMENT PERIOD. AND I, I THINK THAT WILL BE BETTER, YOU KNOW, FOR THIS PROJECT. SO WE HAD ORIGINALLY THOUGHT WE WOULD BE ADVERTISING IN OCTOBER. THIS IS GONNA PUSH THAT INITIAL ADVERTISEMENT OFF A LITTLE BIT 'CAUSE WE'LL PUT A LITTLE BIT MORE INTO THAT INITIAL ADVERTISEMENT AND THAT INITIAL REQUIREMENT. BUT IT'LL SHORTEN AT THE BACKEND. IT WON'T LAST AS LONG. SO YOU'LL STILL BE LOOKING AT PICKING YOUR DESIGN TEAM IN EARLY OF NEXT YEAR. SO, SO FROM YOUR PREVIOUS KNOWLEDGE YOU DECIDED AN RF QUEUE WASN'T NECESSARY? YES. OKAY. YES. YEAH. AND HOW'S THE CITY FEEL ABOUT THAT? BECAUSE, BECAUSE THIS MAN WAS PUSHING IT HARD. THAT'S WHY I'M ASKING . UH, SO WE, WE RECOMMENDED THIS BECAUSE, UM, AS, AS LINDSEY SAID, I DON'T THINK THE THE PROJECT IS COMPLICATED. AND THE LONGER YOU DRAW OUT THE PROCESS, THE MORE WE PAY FOR HER SERVICES AND THE MORE WE'RE GONNA, AND, AND IF YOU REQUIRE THE DESIGN BUILD TEAM TO PUT TOGETHER TWO PACKAGES, THAT'S MORE COST THEY'RE GONNA BUILD INTO THE PROJECT. SO IT'S REALLY SHORTENING THE PROCESS REALLY SHORT, YOU KNOW, UH, LESSENS OUR COSTS. AND AS SHE SAID, I THINK WE WON'T GET, YOU KNOW, AT LIKE 10 TO 12 FIRMS WE'RE, WE'RE PROBABLY GONNA GET THREE TO FIVE AND, AND WE CAN PICK FROM THAT, YOU KNOW. SO, UH, I THINK ONE STEP IS, UM, ALL THAT'S NECESSARY AND DOING MORE WOULD JUST BE KIND OF OVERKILL FOR THIS PROJECT. RIGHT. GOOD ANSWER. AS LONG AS YOU'RE HAPPY. I'M, I'M VERY HAPPY. THANK YOU. . AS LONG AS WE'RE NOT LOSING ANY BENEFITS, NO, NO. AND WE, WE HAD A PRETTY EXTENSIVE CONVERSATION ABOUT LIKE, YOU KNOW, WHAT WOULD BE THE DRAWBACKS FROM GOING TO TWO TO ONE. BUT AS WE TALK THROUGH EACH OF THEM, I REALLY DON'T THINK YOU'RE GONNA BE LOSING ANYTHING. 'CAUSE WE'LL, WE'LL MAKE SURE TO HAVE A VERY ROBUST RFP SO YOU GET ALL THE INFORMATION YOU NEED AND YOU STILL GET TO DO THE INTERVIEWS AFTERWARDS. AND WITH THOSE INTERVIEWS, IF THERE'S ANY ADDITIONAL INFORMATION YOU WANNA SEE OR ANYTHING THAT YOU WANNA REQUEST, YOU STILL HAVE THAT ABILITY, YOU KNOW, TO DO IT THERE. SO, SO NO, WE DON'T SEE THAT. AND WHENEVER YOU SAY YOU ONLY EXPECT US TO GET THREE TO FIVE, UM, YOU KNOW, COMPANIES INTERESTED OR WHATEVER MM-HMM . UM, WHAT DO Y'ALL LOOK FOR IN THOSE THREE TO FIVE? SO, SO THAT'S ACTUALLY A REALLY GOOD QUESTION. AND AGAIN, THAT WAS SOMETHING WE KIND OF DISCUSSED IS LIKE, WHAT WOULD WE WANNA SEE, YOU KNOW, AS A PART OF THE RFP? UM, DEFINITELY YOU WOULD WANT TO SEE, AND I HAVE IT ON THE LIST HERE, SO YOU WOULD WANT TO SEE, YOU KNOW, WHAT IS THEIR EXPERIENCE WITH SURFACE WATER TREATMENT EXPANSION? SPECIFICALLY WHAT IS THEIR EXPERIENCE WITH SURFACE WATER TREATMENT EXPANSION IN THIS SIZE RANGE? YOU KNOW, IT'S GREAT IF THEY HAVE MONSTER SIZE, YOU KNOW, 300 MGD, 200 MGD. THAT'S NOT WHAT YOU HAVE. SO WE WANNA DO THE SIZE RANGE. YOU WANNA LOOK AT THE PROJECT TEAMS EXPERIENCE. ARE THEY PUTTING A PROJECT LEAD? ARE THEY PUTTING A DESIGN TEAM? ARE THEY PUTTING A CONSTRUCTION, YOU KNOW, TEAM IN THERE THAT AGAIN, HAS EXPERIENCE WITH THIS, YOU KNOW, TYPE OF PROJECT. YOU WANNA SEE THAT THEY HAVE EXPERIENCE WITH PROGRESSIVE DESIGN BUILD BECAUSE THAT'S DIFFERENT WAY YOU WANNA MAKE SURE THAT THEY UNDERSTAND THAT PROCESS. I WOULD SAY THE SURFACE WIDER EXPERIENCE PROBABLY A LITTLE MORE IMPORTANT THAN THE PROGRESSIVE DESIGN BUILD, BUT AGAIN, YOU WANNA BE ABLE TO SEE, UM, THAT EXPERIENCE. UM, ANOTHER KIND OF BIG ONE, BECAUSE THIS IS A PROGRESSIVE DESIGN BUILD, IS YOU WANNA KNOW THAT THE TEAM HAS THE ABILITY TO WORK TOGETHER. YOU DON'T WANT THIS CONTRACTOR JUST GOING TO FIND AN ENGINEER THEY'VE NEVER WORKED FOR BEFORE, PUT THIS TEAM TOGETHER AND SAY THEY COULD DO IT. BECAUSE GENERALLY THAT THAT DOESN'T WORK. SO WE WANT TO SEE EITHER THEY'VE WORKED TOGETHER OR THEY'VE WORKED ON PROJECTS TOGETHER THAT WERE SUCCESSFUL. SO THOSE ARE GONNA BE KIND OF THE MAIN ITEMS THAT WE'RE LOOKING FOR. BUT ALSO AS A PART OF WHAT WE'RE CREATING IN THE PMEP, WE WANT THEM TO ADDRESS THAT. THEY UNDERSTAND THERE'S A CERTAIN SCHEDULE, A CERTAIN LEVEL OF SCHEDULE THAT WE WANNA SEE AND THAT THEY'LL HAVE TO BE ABLE TO DEFEND. WE WANT DOCUMENTATION, WE WANT PARTNERING. THERE'S CERTAIN DISPUTE RESOLUTIONS WE'RE GONNA EXPECT. THEY NEED TO RECOGNIZE AND ACKNOWLEDGE THAT AND MAYBE EVEN SHOW WHERE THEY'VE IMPLEMENTED THAT IN THE PAST. SO, SO WHEN PEOPLE COME AND SAY, LOOK, WE'VE HAD THIS SUCCESSFUL PROJECT HERE, IS SOMEBODY GONNA CALL THOSE [00:20:01] PEOPLE YES. BEHIND THE SCENES AND HEY, WAS IT REALLY SUCCESSFUL OR WAS IT A, A FUN SHOW? YES. YOU KNOW? YES. THAT WILL BE VERY IMPORTANT, RIGHT? YES. SO AGAIN, FROM Y'ALL'S EXPERIENCE AND CONFIDENCE, WHAT YOU NORMALLY GET IN AN RFQ, YOU'RE GOING TO ALSO GET IN THE RFP. YES. OKAY. YES. YEAH, IT, WELL, I SAID WE'RE NOT GIVING UP ANYTHING, WE'RE JUST CONDENSING. GOTCHA. YEAH, SO, ALL RIGHT, SO I THINK THE ONLY OTHER THING I WAS GONNA MENTION IS THE CURRENT SCHEDULE, AND I'VE ALREADY MENTIONED A LOT OF THESE. UM, WE ARE PLANNING TO GET THOSE TWO BIG DOCUMENTS IN FOR REVIEW IN EARLY SEPTEMBER. WE ARE MEETING WITH LEGAL ON AUGUST 22ND JUST TO MAKE SURE THAT THEY'RE COMFORTABLE, THEY UNDERSTAND THE PROCESS AND WE HAVE ALL, EVERYTHING THAT THEY WANT, YOU KNOW, IN THE RFP AS WELL. UM, WE'RE GONNA BE MEETING WITH FINANCIAL IN THE NEXT, LIKE I SAID, NEXT COUPLE OF WEEKS SO WE CAN TALK BUDGET. UM, AND THE INTENTION IS TO ADVERTISE IN THE LAST QUARTER OF 2023. UM, ONE NOTE, UM, WANTED TO MENTION THAT MAY AFFECT THE SCHEDULE IS Y'ALL STILL DON'T CURRENTLY HAVE A CONTRACT WITH THE CITY OF HOUSTON FOR THE SOURCE WATER. UM, AND WE'RE GOING TO WANT THAT IN PLACE PRIOR TO US ADVERTISING. SO WE'RE STILL WAITING ON THAT. RIGHT. I, I HAVE HAD, UH, MANY NUMEROUS, UH, INTERACTIONS WITH CITY OF HOUSTON STAFF AND I, I DO HAVE VERBAL COMMITMENT THAT THEY WILL, YOU KNOW, PROVIDE THE ADDITIONAL WATER, BUT, UM, I DON'T PLAN ON GOING ISSUING THE RFP UNTIL WE DO GET A SIGNED AGREEMENT. SO, UM, YOU KNOW, WE'RE WORKING ON IT. IT'S JUST, YOU KNOW, THEY CAN MOVE SLOWLY SOMETIMES, SO. AND I'VE SEEN THE EMAIL THEY KEEP PROMISING HIM IT'LL BE THE NEXT WEEK, BUT, RIGHT. IT HASN'T HAPPENED YET. YOU NEED, MIGHT NEED TO TAKE HIM TO LUNCH, . I WILL TRY. ALRIGHT. THE HOPE IS BY NEXT MONTH THIS WILL BE IN PLACE AND WE CAN HAVE FIRM DATES FOR ALL OF THIS FOR YOU. ALRIGHT, THANK YOU. ANY QUESTIONS? ANY MORE QUESTIONS? NO, MA'AM. ALRIGHT. THANK YOU VERY MUCH. THANK YOU. UM, [b. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending June 30, 2023.] NEXT WE'LL RECEIVE THE AUTHORITIES' QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING JUNE 30TH, 2023. UH, GOOD AFTERNOON BOARD. I'M HERE TO PRESENT THE THIRD QUARTER FINANCIAL REPORT FOR PERIOD ENDING JUNE 30TH, 2023. UM, THE REVENUE RECEIVED UP UNTIL THIS TIME IS $12.4 MILLION AT 81%. WE'VE, UM, SPENT 9.2 MILLION AT 55% AND WE HAVE A WORKING CAPITAL BALANCE OF 6.1 MILLION FOR OUR CAPITAL REPLACEMENT PROGRAM. WE HAVE RECEIVED $790,000 AND WE'VE SPENT 4.7 MILLION LEAVING US A WORKING CAPITAL OF 1.8. OUR INVESTMENT BOOK VALUE IS $4.2 MILLION AND WE HAVE EARNINGS OF 140,382. AND I'M HAPPY TO ANSWER ANY QUESTIONS. SO IS IT BECAUSE OF THE DROUGHT? ARE WE HAVING A LOT MORE WATER SALES WOULD YOU SAY THE NORMAL? UM, LAST MONTH IT WAS DOWN, UM, AS COMPARED TO THIS TIME LAST YEAR FOR JULY, BUT AUGUST WE HAVE SEEN, UH, HIGHER DEMAND, UM, SINCE, SINCE AUGUST STARTED. SO I GUESS YOU, YES AND NO, BUT YOU CAN TELL WHO'S WATERING AND WHO'S NOT. , YOU KNOW. RIGHT. WELL A LOT OF THAT'S MY FAULT. , MY GRASS IS BROWN, FAIRLY GREEN. OH, IS IT GOOD FOR YOU? YEAH. RATE RETURN ON OUR INVESTMENT. DO YOU HAVE A BALLPARK NUMBER? UM, RIGHT NOW I THINK IT'S ABOUT 5.2. 5.2%. YEAH. WELL DONE. THAT'S GOOD. MORE THAN I'M, THAT'S MORE THAN I'M GONNA PAY YOU AT THE BANKS. WELL DONE. THAT'S WHAT I'M GETTING. SO TO THEIR POINTS ABOUT WATER USAGE, WE WOULD EX JUST EXPECT THAT OUR NEXT QUARTERLY REPORT WOULD SHOW HIGHER REVENUES BECAUSE PEOPLE ARE, UH, USING MORE WATER. IS THAT A FAIR GUESS? AND, AND SINCE THEY'RE USING MORE WATER, ARE WE IN ANY, GETTING CLOSE TO ANY OF OUR THRESHOLDS AS FAR AS, UH, TRIGGERING ANY KIND OF CONSERVATION? NOT YET. UM, THAT'S SOMETHING THAT WE HAVE DISCUSSED INTERNALLY. UM, OUR THRESHOLD IS SET AT 85% OF THE PLANT CAPACITY, WHICH IS AROUND LIKE 27 27 MGD. UM, AND SO WE'VE BEEN OPERATING, UH, WELL BELOW THAT. THE HIGHEST I'VE SEEN IS 23 MGD OF, OF LATE. ALRIGHT. THANK YOU. THANK YOU. [00:25:01] ANY, ANY QUESTIONS OR DISCUSSION CONCERNING THE, UH, QUARTERLY FINANCIAL AND INVESTMENT REPORT? THANK YOU VERY MUCH. UM, [a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, September 20, 2023 at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ] THAT BRINGS US TO THE MANAGER'S REPORT, UM, BOARD, UH, MADAM PRESIDENT AND THE BOARD. I DON'T HAVE ANYTHING TO REPORT OTHER THAN OUR NEXT MEETING IS SEPTEMBER 20TH AT 4:30 PM ALRIGHT. THANK YOU. THANK YOU. THANK YOU. UM, AS THERE'S NO FURTHER BUSINESS ON OUR AGENDA, I'D ENTERTAIN A MOTION TO ADJOURN. I MOTION. I HAVE A MOTION. SECOND. HAVE A SECOND. ALL THOSE IN FAVOR? AYE. ALRIGHT, 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.