May 20, 2020 BAYTOWN AREA WATER AUTHORITY MEETING

SO MEMBERS OF THE BOARD, UM, GOT A COUPLE SLIDES, UH, HOPEFULLY YOU GUYS CAN SEE IT ON THE SCREEN HERE.

UM, WE INCLUDED THE PROPOSED BUDGET IN YOUR PACKET AND WANTED TO HIT A FEW OF THE HIGH POINTS AND THEN, UH, ANSWER ANY QUESTIONS THAT YOU HAVE.

SO WE WILL PRESENT AND DISCUSS TODAY, AND THEN IT WILL BE ON FOR ACTION IN YOUR JUNE MEETING.

SO, COUPLE OF THE HIGH POINTS IN THIS YEAR'S BUDGET, UM, BASED ON WHAT WE'RE SEEING WITH REVENUE AND EXPENDITURE TRENDS, UM, WE ARE RECOMMENDING A 3% RATE INCREASE, UM, IN THIS PROPOSED BUDGET.

WE'LL ALSO LET YOU KNOW THAT, UM, STAFF IS WORKING RIGHT NOW WITH A CONSULTANT ON A RATE STUDY, UM, THAT SHOULD BE COMPLETED HERE, UM, IN THE NEXT COUPLE MONTHS THAT WILL HELP ADVISE THE BOARD ON FUTURE RATE SETTING DECISIONS.

UM, COUPLE OF THE THINGS THAT REALLY FACTORED INTO THIS RECOMMENDATION OF THE 3%.

UM, WE HAVE FLAT EXPENDITURES THIS YEAR, UM, BUT WE'VE STILL GOT A DEFICIT OF A LITTLE OVER 911,000.

PART OF THAT IS, YOU KNOW, OBVIOUSLY AS WE'VE, WE'VE BROUGHT ON BWA EAST AND THE DEBT SERVICES INCREASED.

UM, WE'RE JUST GETTING TO A POINT TO WHERE EVEN WHEN WE HAVE FLAT OPERATING EXPENDITURES, WE'RE NOT BRINGING IN BRINGING IN ENOUGH ON THE REVENUE SIDE TO, TO MATCH THAT.

SO THE REASON WE CAN GET BUY UP UNTIL NOW IS WE'VE HAD ENOUGH IN FUND BALANCE.

UM, IN FACT, GOING INTO FISCAL YEAR 19, WE HAD 281 DAYS OF OPERATING EXPENDITURES.

UM, WITH THE PROPOSED FY 21 BUDGET, WE'RE DOWN TO 107 DAYS.

SO THAT'S STILL A HEALTHY NUMBER, BUT YOU CAN SEE WHERE THE TREND IS GOING MOVING FORWARD.

AND SO, UM, WE REALLY NEED TO LOOK AT THE, THE RATE SIDE OF REALLY MITIGATING THAT.

UM, THE OTHER NOTE FOR THIS IS THAT, UM, FULL OPERATING EXPENDITURES FOR BWA EAST ARE INCLUDED IN THIS BUDGET.

UM, WE HAD MOST OF THEM ALREADY INCLUDED IN THE FY 20 BUDGET.

UM, BUT ANY OTHER INCREASES THAT WE NEEDED TO FULLY STAFF AND RUN THAT ARE INCLUDED IN THE FISCAL YEAR 21 BUDGET.

SO THOSE ARE SOME OF THE KEY POINTS ON THE OPERATING SIDE.

ON THE CAPITAL SIDE SIDE, UM, IT'S, IT'S LIGHTER THIS YEAR THAN THE PAST FEW YEARS.

UH, AND I'M GONNA LET FRANK SEMINO COME, COME UP AND TALK ABOUT THE, THE PROJECTS WE'VE GOT ON THE CAPITAL SIDE.

I CAN WE, CAN WE GO BACK TO THAT OTHER SLIDE, IF YOU DON'T MIND? SURE.

AND, AND I CAN ONLY, I CAN ONLY SEE PART OF IT.

IS IT ON MY SCREEN? I DON'T KNOW WHY HE'S DOING THAT.

SO GIMME A MINUTE.

MOVE THE SLIDE TO THE LEFT ON THE SCREEN IF YOU COULD.

LET'S WORKING ON IT.

TO THE CITY AND POTENTIALLY WE WOULD HAVE TO PASS THAT ALONG TO THE CUSTOMERS.

SO, YOU KNOW, I GUESS, YOU KNOW, I THINK WE WOULD JUST GLOSS OVER THIS IN A NUMBER, A NORMAL YEAR, BUT WITH THE COVID AND THE EXTREME PAIN THAT'S BEING DEALT OUT TO OUR COMMUNITIES, YOU KNOW, I DON'T THINK YOU'RE GONNA GET THE A HUNDRED PERCENT OF THE REVENUES YOU THINK YOU'RE GONNA GET ALREADY.

AND, AND IS THIS 3% INCREASE? IS THIS THE RIGHT TIME FOR THAT? YOU KNOW, ARE, ARE Y'ALL LOOKING AT, I KNOW THAT, UH, WE'VE GIVEN LEEWAY TO PEOPLE ON PAYING THEIR BILLS LATE, BUT SUPPOSEDLY THEY'RE GONNA STILL BE ABLE TO HA PAY IT AT ANOTHER TIME.

WELL, THAT MAY, THAT MAY BE AT THE END OF THE YEAR.

YOU KNOW, SO THAT'S, THAT'S REALLY, THAT'S, THAT ISSUE IS REALLY MORE OF AN ISSUE ON THE CITY SIDE.

UM, BECAUSE FROM THE, FROM THE BWA SIDE, I MEAN, THEY'RE, THEY'RE SELLING WATER TO THE CITY AND THEN OTHER CUSTOMERS AND IT GETS PAID, KEEPS FREE RIGHT AWAY.

SO IT'S, IT'S MORE OF AN ISSUE ON THE, THE CITY SIDE OF US, UH, COLLECTING FROM RESIDENTS.

UM, WE HAVE SEEN, UH, A HIGHER AMOUNT OF UNCOLLECTIBLE SO FAR.

UM, BUT WE DO THINK THAT'S GONNA COME DOWN OVER THE, OVER THE NEXT COUPLE, NEXT COUPLE MONTHS.

UM, BUT AGAIN, THAT'S, THAT'S MORE ON THE CITY SIDE AND NOT THE, NOT THE BAWA SIDE.

SO I'M NOT, NOT OVERLY CONCERNED ON THE COLLECTIBLE SIDE.

UH, THE ISSUE OF, UM, WHETHER THIS IS THE RIGHT TIME.

I MEAN, OBVIOUSLY A A THREE PERCENT'S GONNA BE PASSED ALONG

[00:05:01]

SO, UM, THAT IS SOMETHING TO CONSIDER.

WE'VE, WE HAVE RUN THE NUMBERS AND CAN KIND OF PRESENT THOSE TO YOU OF WHAT THE BUDGET IMPACT WOULD BE IF WE DON'T DO A RATE INCREASE THIS YEAR.

IF, IF YOU ALL WOULD LIKE TO, TO KNOW THAT INFORMATION.

I MEAN, ARE, ARE WE ASSUMING THAT IN THE, IN THE 10 YEAR PLAN THAT WE'RE GONNA HAVE A RATE INCREASE EVERY YEAR? STAFF'S NOT ASSUMING ANYTHING AT THIS POINT.

THAT'S WHY WE WANNA DO THE RATE STUDY TO, UM, HAVE SOMEONE FROM THE OUTSIDE LOOK AT, YOU KNOW, OUR FUTURE CAPITAL PROJECTS, UH, FUTURE EXPENDITURES AND, AND REALLY GIVE US THE OBJECTIVE, UM, VIEW OF WHAT DO WE NEED TO LOOK AT WITH FUTURE RATES.

UM, BUT JUST KIND OF LOOKING RIGHT NOW AT OUR REVENUES AND EXPENDITURES, I THINK IT'S PRETTY CLEAR THAT WE WILL HAVE TO GO UP ON RATES TO COVER THE EXPENDITURES.

AND, AND NICK, UH, YOU MAY HAVE ALREADY SAID IT, BUT ANTICIPATED OR NOT ANTICIPATED ON THIS INCREASE, YOU'RE ASKING IF IF IT'S INCLUDED IN THE BUDGET? NO.

WAS IT ANTICIPATED OR NOT? UH, THE PREVIOUS RATE STUDY HAD RUN OUT, SO, UM, IT WAS, I DON'T KNOW IF I'D SAY IT WAS ANTICIPATED OR NOT.

UM, WE DON'T HAVE A RATE STUDY TO GO OFF OF CURRENTLY, SO WE LOOKED AT THAT.

WE LOOKED AT IT BASED ON JUST WHAT WE'RE SEEING WITH THE, THE BUDGET NUMBERS, WHAT WAS, BUT, BUT ONE THING I WOULD SAY THOUGH IS OUR ANNUAL INCREASE JUST FROM THE WATER THAT WE PURCHASED FROM CITY OF HOUSTON IS IT'S 2.8, 2.8%.

SO IT'S GOING UP EVERY YEAR FOR, FOR, WELL, I DON'T KNOW HOW HISTORICALLY, HOW IN THE PAST NO, HOW, HOW, HOW MANY YEARS, UH, HAS IT ALREADY GONE UP EVERY YEAR? BEEN HERE, JUST WENT UP EVERY YEAR.

SO, SO PRETTY MUCH EVERY YEAR THE OUR, UM, OUR, OUR COST WE HAVE TO PAY THE CITY OF HOUSTON IS, GOES UP 2.8%.

SO WE'RE, WE'RE NOT RECOUPING THAT COST.

RIGHT.

AND WHEN WAS THE LAST TIME WE RAISED OUR RATES? I BELIEVE IT WAS TWO YEARS AGO.

UM, WE DID INCLUDE THAT HERE IN THE BUDGET.

I CAN SCROLL DOWN.

UM, YEAH, IN THE TWO YEARS AGO WE INCREASED IT, AND PREVIOUS TO THAT IT WAS BACK TO 20 14 15.

SO IT'S INCREASED TWICE IN THE PAST EIGHT YEARS, BASICALLY SEVEN YEARS.

I THOUGHT, I THOUGHT IT HAD BEEN THE LAST FEW YEARS WE'VE BEEN INCREASING IT.

SO A ANY OTHER QUESTIONS ON THE, ON THAT FIRST SLIDE? NO, I'M GOOD.

I, I CAN STILL ONLY SEE HALF OF THE SLIDE.

WELL, I, I DON'T KNOW WHAT TO TELL YOU.

HOW ABOUT YOU, FRANK? SAME HERE.

EVERY, EVERYTHING THAT'S ON THERE I, I VERBALIZE, SO.

UM, YEAH, THERE'S, THERE'S NOTHING ELSE ON THE SLIDE THAT YOU, YOU HAVEN'T HEARD ALREADY.

GOT IT.

ONE TO GET AN EASEMENT FOR OUR SPRAY FIELD TO PUT IN AN ONSITE SEPTIC SYSTEM.

SO I'M GONNA GIVE FRANK A. LITTLE TIME TO TALK ABOUT, UM, THE CAPITAL SIDE.

SO WHAT YOU SEE ON THE SLIDE IS, UH, OUR PLAN FOR THE UPCOMING YEAR CAPITAL PROJECTS.

AND IT IS PRETTY FLAT.

SO THE BIO BIOCHEMICAL FEED SYSTEM IS ACTUALLY A FY 20 PROJECT.

IT WAS, UH, IT WENT TO CONSTRUCTION STARTED IN FEBRUARY, AND IT IS ESTIMATED TO BE COMPLETED IN FEBRUARY OF 21.

UM, THIS PROJECT REPLACES BULK, UH, STORAGE TANKS FOR OUR CHEMICALS AND IT ALSO CONVERTS OUR, UH, CURRENT AMMONIA GAS DISINFECTION SYSTEM TO LIQUID AMMONIA SULFATE.

UH, AND IT IS, UH, ABOUT 20% COMPLETE RIGHT NOW.

UH, THE NEXT ITEM IS, UH, THE BOWEL E SANITARY SEWER.

SO DURING THE, UH, ORIGINAL DESIGN FOR BIO EAST, IT INCLUDED, UH, A LIFT STATION AND FORCED MAIN TO TAKE THE WASTEWATER FROM THE OPERATIONS BUILDING TO, UH, UH, TREATMENT PLANT THAT CCID ONE OPERATES.

'CAUSE CITY OF BAYTOWN DOES NOT HAVE ANY, UH, TREATMENT FACILITY CLOSE TO THE, UH, BOW EAST PLANT.

UH, THAT WAS GONNA BE A FAIRLY LONG FORCE MAIN, UM, COSTING SEVERAL HUNDRED THOUSAND DOLLARS.

SO AS PART OF THE INITIAL, UM, YOU KNOW, UH, VALUE ENGINEERING, WE LOOKED AT TAKING OUT THAT FORCE PAINT AND TRYING TO DO AN ONSITE SEPTIC SYSTEM, BASICALLY.

UH, SO WE'RE WORKING WITH CCID

[00:10:01]

AND SO THAT WOULD SAVE US THE COST OF HAVING TO RUN THE FORCE MAIN.

AND THEN WE'D, IN OUR DISCUSSION WITH, UM, CCID ONE, THEY TOLD US THAT THEY PLAN ON RUNNING A GRAVITY SEWER WHEN THEY DEVELOP THE PROPERTY JUST SOUTH OF THE BOW EAST PLANT.

SO AT SOME POINT WE'LL BE ABLE TO CONNECT TO A GRAVITY SEWER AT, AT THAT LOCATION, AND THEN WE'LL ABANDON THE ONSITE SYSTEM AT THAT POINT.

THIS MONEY IS JUST FOR, YOU KNOW, DESIGN, RUNNING THE LINE AND INSTALLING THE SYSTEM, UH, AS WELL AS ANY EASEMENT COST THAT WE MIGHT HAVE.

UH, WE CAN'T SEE ANYTHING RIGHT NOW.

SO IS THERE A DOLLAR AMOUNT WITH THAT BY ANY CHANCE? THAT'S, UH, WE HAVE ESTIMATED $160,000, AND I THINK THAT'S PROBABLY ON THE HIGH SIDE.

NOW, THAT'S FOR JUST ENGINEERING THE, THE SYSTEM? UH, NO SIR.

NO SIR.

THAT'S FOR RUNNING.

WE, WE ALREADY HAVE A LIFT STATION ON SITE AT VOWEL EAST, SO IT'S FOR RUNNING A, A GRAVITY SEWER LINE FROM THE LIFT STATION ACROSS THE STREET TO THE, UH, TGS PROPERTY, WHICH IS, YOU KNOW, PART OF CCID ONE WHERE WE WOULD INSTALL THE SPRAY FIELD BECAUSE WE HAVE TO HAVE A CERTAIN SEPARATION DISTANCE FROM A SEWER FACILITY AND THE WATER TREATMENT FACILITY MM-HMM .

UH, SO IT'S TO RUN THAT LINE, INSTALL THE SYSTEM, AND LIKE I SAY, ANY, AND THEN WE'RE GONNA HAVE TO SHUT DOWN THAT SYSTEM ONCE WE GET THE GRAVITY LINE RUN TO THAT POINT AND, AND CONNECT TO OUR GRAVITY LINE.

SO THAT, THAT WAS A SUNK COST.

FOR, FORGIVE ME, I'M, IF I MISUNDERSTOOD, BUT YOU, I THOUGHT YOU SAID IT WAS 200,000 TO RUN THAT EXTRA QUARTER MILE OF LINE TO, TO, I DON'T REMEMBER THE EXACT AMOUNT OF THE FORCE MAIN.

UM, I DON'T KNOW IF IT, IT WAS SEVERAL HUNDRED THOUSAND, UM, OKAY.

BECAUSE IT'S A COUPLE OF MILES OF FORCE MAIN AND, YOU KNOW, THEN WE WOULD HAVE TO PAY THE ELECTRIC COSTS OF THAT RUNNING THAT LIFT STATION AND PUMPING THAT FAR.

UH, IT, IT IS GONNA BE A, A FAIRLY LARGE SAVINGS TO DO THIS SYSTEM RATHER THAN TRYING TO DO A FORCE MAIN.

AND WE, WE'VE ALSO WORKED TO TRY TO TAKE SOME OF THE FLOWS THAT WOULD'VE GONE INTO THAT SYSTEM OFF SO THAT WE, WE CAN RECIRCULATE THE FLOW.

SOME OF THE SAMPLING WATER WAS INCLUDED IN THE ORIGINAL DESIGN.

SO WE'RE, UH, YOU'LL SEE TODAY A CHANGE ORDER TO TAKE THAT, THAT PLANT WATER, THAT SAMPLING WATER OFF OUT OF THE SANITARY SEWER AND PUT IT BACK INTO, UM, THE PLANT SYSTEM SO THAT WE DON'T HAVE TO TREAT THAT.

AND WE WERE HAVING A LOT OF PROBLEMS GETTING CCID ONE TO TAKE THAT MUCH FLOW.

SO, SO THIS IS A BETTER SOLUTION, UH, ALL AROUND, UH, LIKE I SAY, INCLUDING THE, THE CHANGE ORDER ITEM YOU'LL SEE TODAY.

ANY OTHER QUESTIONS ON THAT? WE PROBABLY WON'T SEE IT.

WE'LL HEAR ABOUT IT, RIGHT, FRANK? YEAH.

I GUESS, IS THAT SOMETHING THAT WE JUST MISSED IN THE ENGINEERING OF THIS PROJECT OR, WELL, YOU KNOW, LIKE I SAY, IT WAS ORIGINALLY THEY HAD THE, THE SAMPLING WATER GOING INTO THE SANITARY SEWER, UH, AS PART OF THE ORIGINAL DESIGN.

AND THAT'S NOT HOW IT IS THAT THE MAIN BOWEL PLANT.

AND SO WE CAUGHT THAT LATE IN THE DESIGN THAT IT REALLY SHOULDN'T EVEN BE GOING THERE.

UM, SO THEN WE HAD TO, I DON'T THINK ANYBODY REALLY STEPPED BACK AT THAT POINT AND SAID, WELL, IF WE TAKE THAT WATER OFF, IT REALLY MAKES THE FLOW OF WASTEWATER DECREASE SUBSTANTIALLY.

SO YOU DON'T NEED, YOU KNOW, THE BIG LIFT STATION AND PUMPING CAPACITY TO PUMP THAT MUCH WATER.

SO AT THAT POINT, WE'RE ONLY TREATING WHAT'S COMING OUTTA THE OPERATIONS BUILDING, WHICH IS A FEW RESTROOMS AND A KITCHEN.

IT'S NOT MUCH MORE THAN, YOU KNOW, A SINGLE FAMILY RESIDENCE.

SO THAT'S WHEN WE SAID, WELL, WE COULD JUST DO AN ONSITE SYSTEM IF IT, IF THE FLOW IS THAT LOW.

SO YEAH, IT, IT WAS KIND OF AN EVOLUTIONARY PROCESS OF GOING THROUGH, UH, THE VALUE ENGINEERING OF THIS.

AND, YOU KNOW, I, I THINK IT STEMS FROM ORIGINALLY HAVING THAT PROCESSED WATER GOING INTO THE SANITARY SEWER, WHICH WAS PART OF THE ORIGINAL DESIGN THAT WE DIDN'T CATCH THAT, UM, SHOULD NOT HAVE BEEN THERE.

SO THE LIFT STATION WAS, IS INSTALLED? IT IS INSTALLED, AND IT WAS SIZED FOR THAT ADDITIONAL FLOW? IT WAS, YES.

SO IT'S BASICALLY OVERSIZED IT IS, RIGHT.

[00:15:04]

BUT, UH, LIKE I SAY, WE DON'T HAVE TO, IF WE HAVE TO OPERATE THAT LIFT STATION, WE'RE GONNA INCUR ELECTRIC COSTS, YOU KNOW, UH, MAINTENANCE OF THE PUMPS AND, YOU KNOW, JUST MAINTENANCE OF THAT LIFT STATION.

THE, THE NEXT ITEM IS, UM, RAW WATER REHABILITATION DESIGN FOR THE MAIN BOWEL PLANT.

UH, THIS DESIGN ONLY IN THE AMOUNT OF $200,000, IT'S TO, UM, UH, THE OBJECTIVE OF THE PROJECT IS TO REPLACE THE FOUR BAY LINER AT THE BIO PLANT.

UH, THE CURRENT LINER HAS, UH, TEARS AND HOLES IN IT, AND IT'S CAUSING A LOSS OF WATER, UH, IN THE FOUR BAY.

UM, WE'RE ALSO GOING TO, UM, REPLACE THE ROW WATER PUMPS THAT HAVE BEEN REBUILT OVER A PERIOD OF YEARS, AND WE'RE GONNA LOOK AT THE, UH, STRUCTURAL SUPPORTS OF THE PUMP STATION TO ENSURE THEY'RE STABLE.

UH, SO THIS IS THE DESIGN OF THIS, AND THAT'S IN THE AMOUNT OF $200,000 WE ANTICIPATE CONSTRUCTION AND FY 22 FOR THIS PROJECT.

UH, THE LAST ITEM IS, UM, A PROPOSED CONTRIBUTION OF BOW TO THE RELOCATION OF THE UTILITY BILLING OFFICE.

UM, THE, THE TOTAL PROJECT, AND THAT IN CASE YOU DON'T KNOW, IS PROPOSED TO GO TO THE OLD, UH, CITIZENS BANK BUILDING ON TEXAS AVENUE.

UH, SO THE PROPOSED, UH, THE PROJECT ITSELF WILL COST $2.6 MILLION.

THE PROPOSED, UM, BIO CONTRIBUTION WOULD BE $260,000, UH, BECAUSE BOWER RECEIVES, UH, SERVICES FROM THE FINANCE DEPARTMENT AND UTILITY BILLING, AND THIS WOULD HELP CONTRIBUTE TO THAT.

AND THAT'S ALL THE, UH, FY 21 PROPOSED EXPENDITURES ON THE CAPITAL SIDE.

WHAT, WHAT WAS THE AMOUNT THAT WE WOULD SPEND ON THAT BUILDING AGAIN? $260,000, TWO 60.

THE TOTAL OUT OF A TOTAL PROJECT COST OF 2.6 MILLION.

SO IF THE, YOU KNOW, WE'VE, WE'VE FACTORED IN HOPEFULLY QUITE A BIT OF, UH, BUFFER INTO THAT PROJECT.

IF IT HAPPENS TO COME IN LESS, UM, THEN WE WILL, YOU KNOW, WE'LL TRY AND STICK TO, TO 10% OF THE PROJECT IF WE CAN, UM, OUT OF BABA.

SO, UM, BUT WE, IT DEFINITELY WON'T BE ANY MORE THAN 260,000.

AND, AND IS THIS WHERE, AND, AND HOW ARE WE BENEFITING FROM THIS? IS THIS WHERE THE, UH, BILLING OFFICE IS GONNA MOVE TO, OR CORRECT.

SO UTILITY BILLING, UH, YOU KNOW, THE LOCATION RIGHT NOW KIND OF NEAR THE COMMUNITY CENTER, UH, RIGHT.

THAT ENTIRE OPERATION WILL MOVE INTO THE CITIZENS BANK BUILDING ON TEXAS AVENUE.

I I JUST HAVE ONE REQUEST ON THAT.

UH, I WANNA FIND OUT WHO ENDS UP SITTING IN MY OLD OFFICE IN THE BUILDING.

WELL, THE, THE REALLY NOT MUCH OF THE BUILDING IS GONNA BE LEFT, SO I, I KNOW I WAS KIDDING.

UH, BUT IF YOU TELL US WHERE IN THERE IT WAS, WE'LL, UH, WE'LL PUT A LITTLE PLAQUE ON WHOEVER'S DESK THAT IS SECOND FLOOR AT THE TOP OF THE STAIRS, BUT THE STAIRS AREN'T EVEN THERE ANYMORE.

ARE, YEAH, THE SECOND FLOOR IS GONNA BE GONE.

SO YEAH, WE'LL PUT A PLAQUE ON THE CEILING AND WE HEY, MIKE UP, MIKE, DOESN'T THAT BUILDING HAVE A BASEMENT? OH, ABSOLUTELY.

IT STILL DOES, RIGHT, NICK? IT'S BEEN FILLED IN.

SALE OF WATER BAYTOWN, AND IT'S LIKE, IT'S ONLY, IT'S ABOUT 140,000 DIFFERENT, BUT, UM, IS IT ESTIMATED THE VERY LATEST NUMBERS OR THE, I MEAN, WHAT DO WE REALLY THINK WE'RE GONNA GET? I GUESS THAT'S KIND OF WHAT I WOULD THINK OUR BUDGET SHOULD BE, OR, YEAH, THAT'S, SO THAT'S THE ESTIMATE AS OF PROBABLY, UM, A MONTH AGO, UM, MAYBE A LITTLE BIT SOONER.

'CAUSE I, I HEARD THERE WAS SOME MAJOR FLOODING ISSUES WITH THAT BUILDING IN THE PAST.

RIGHT.

AND WE, WE, IT REALLY WASN'T THAT BAD.

UH, FRANK, WE ONLY USED THE SUMP PUMP EVERY TIME IT RAINED .

WELL, I GOT MY, I GOT MY CONCEALED LICENSE, UH, BY SHOOTING IN THAT BASEMENT YEARS AGO.

SO JUST SO, JUST SO YOU KNOW, WOW, WE, WE, WE HAVE A LOT OF LESSONS LEARNED FROM THE BRUNSON PROJECT.

UM, YES.

SO HOPEFULLY THOSE LESSONS LEARNED WILL, UH, PAY OFF FOR US IN THIS PROJECT.

OKAY, FAIR ENOUGH.

SO WITH THAT, HAPPY TO ANSWER ANY QUESTIONS ON THE BUDGET.

ANY QUESTIONS ABOUT THE BUDGET ISSUE QUESTIONS? YEAH, LET ME ASK YOU, UH, WHEN I'M LOOKING AT THE BUDGET ON BY FUND OR WHATEVER IT SAYS, ACTUAL BUDGET AND THEN ESTIMATED, SO WE'RE PROVING BUDGET, BUT SOMETIMES THE ESTIMATED CAN BE QUITE DIFFERENT.

WHAT, UH, HELP ME OUT THERE, IS THERE A PARTICULAR AREA THAT YOU, THAT YOU'RE LOOKING AT ON IT? WELL, I'M JUST LOOKING AT REVENUES, UM,

[00:20:01]

UM, SO THAT'S, YEAH, THAT'S BASED ON, YOU KNOW, REVENUE TO DATE, UM, AND THEN WHAT WE THINK WE'RE GONNA GET THE REST OF THE YEAR.

SO, UM, AND REMEMBER, WE, WE TRY AND BE PRETTY CONSERVATIVE IN WHAT WE PUT IN THERE.

SO, UM, IDEALLY AT THE END OF THE YEAR, IT COMES IN A LITTLE BIT BETTER THAN THAT.

THAT'S TERRIBLE.

SO, ON THE EXPENDITURES, WHY IS THE, UH, PERSONNEL SERVICES GOING UP SO MUCH FROM UH, 20, FROM 1819 TO 1920? IS THAT BECAUSE WE'RE HIRING, HAVING TO HIRE PEOPLE FOR THE BAWA EAST? YES.

SO YEAH, YOU'RE, LOOK, YEAH, SO WE, WE ADDED POSITIONS IN THIS YEAR'S BUDGET, AND SO THAT WAS THE BIG JUMP FROM 1819 TO 1920.

UM, AND EVERYTHING FROM CURRENT BUDGET TO NEXT BUDGET IS JUST, UH, REGULAR INCREASES, UM, YOU KNOW, BENEFITS, UH, MEDICAL CARE, ALL THAT OTHER STUFF THAT YOU SEE JUST ANNUAL INCREASES ON PERSONNEL.

THERE'S NO NEW PERSONNEL IN THIS YEAR'S BUDGET THOUGH.

NEXT YEAR'S BUDGET.

YEAH, WE, SO IS THE COVID ACTUALLY SLOWING DOWN OUR EXPECTED, UH, OPEN DATE ON BAWA EAST BY ANY CHANCE? NO.

SO EVERYTHING IS STILL GOING.

IT'S NOT GOING THE THE CURRENT SCHEDULE DOWN IS WHAT YOU'RE SAYING? WE'RE ON THE, YEAH.

AND WE'LL GIVE YOU AN UPDATE HERE IN A LITTLE BIT, BUT, UM, NO, THE SCHEDULE HASN'T SLOWED DOWN.

I DON'T, I DON'T WANNA GIVE YOU A, UH, RIBBON CUTTING DATE YET, BUT NO, NO, I'M NOT ASKING.

I'M JUST, YOU KNOW, THE REASON I'M ASKING, LET'S SAY THAT THE COVID O'S GONNA SLOW IT DOWN BY THREE MONTHS, THEN I WOULD SAY, WELL, DO YOU NEED TO REALLY HIRE, KEEP ON THE SAME HIRING SCHEDULE, IF YOU KNOW, OR DO YOU, YOU MOVE THAT BACK AND THEN YOUR PERSONNEL EXPENSES ARE LOWER FOR THE YEAR? YEAH, IT'S A FAIR QUESTION.

UM, WE'VE, WE'VE HIRED EVERYBODY WE NEED ALREADY, SO, UM, WE DON'T, THERE'S NO WAY TO REALLY CUT PERSONNEL AT THIS POINT.

WE'VE, WE'VE HIRED 'EM, THEY'RE GETTING TRAINED, UM, AND THIS IS REALLY A KEY TIME FOR THEM TO BE ON BOARD BECAUSE OVER THE NEXT THREE MONTHS THEY'LL BE TRAINED, UM, AT THE NEW PLANT.

SO YEAH, WE'VE, WE'VE GOT ALL THE PERSONNEL ALREADY HIRED.

FAIR ENOUGH.

ANY OTHER QUESTIONS OR DISCUSSION? IS MIKE BACK YET, OR CAN'T SEE? IT'S, I DON'T SEE MIKE BACK YET.

FROZEN.

I HAVE MIKE WILSON ON THE LINE.

I DON'T KNOW IF HE'S STEPPED AWAY FROM HIS DESK, BUT HE IS ON THE LINE.

OH, HERE, HERE HE COMES.

I'M SORRY.

DO YOU HAVE ANY QUESTIONS? I'M GOOD.

THANK YOU VERY MUCH.

[b. Consider a resolution calling for a public hearing regarding the Baytown Area Water Authority Fiscal Year 2020-21 Proposed Budget.]

UH, NEXT WE WILL CONSIDER A RESOLUTION CALLING FOR THE PUBLIC HEARING REGARDING THE AUTHOR'S FISCAL YEAR 20 20 20 21, PROPOSED BUDGET.

SO THIS RESOLUTION WOULD SET THE PUBLIC HEARING FOR JUNE 17TH, UM, AT 4:30 PM ALRIGHT, DO I HAVE A MOTION? SO MOVED.

DO YOU HAVE A SECOND? SECOND.

A MOTION IS SECOND QUESTIONS OR DISCUSSION.

WILL THIS BE AN OPEN MEETING TO THE PUBLIC? YES.

YES.

MOTION CARRIED UNANIMOUSLY.

ANY OTHER QUESTIONS? HEARING NONE.

ALL THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? LIKE SIGNED.

UM, NEXT WE WILL CONSIDER A RESOLUTION AUTHORIZING CHANGE ORDER NUMBER NINE WITH PEPPER LAWS AND WATERWORKS LLC FOR THE BALL WITH SIX MGD SURFACE WATER TREATMENT PLANT.

[a. Consider a resolution authorizing Change Order No. 9 with Pepper Lawson Waterworks, LLC, for the BAWA 6 MGD Surface Water Treatment Plant.]

GOOD AFTERNOON.

THIS IS ANDREA BRINKLEY WITH THE, UH, PUBLIC WORKS AND ENGINEERING DEPARTMENT, UH, SERVING AS OUR CONSTRUCTION, UH, FUNCTION FOR THE BOW EAST, UH, SURFACE WATER PLANT.

SO I'D JUST LIKE TO CALL ATTENTION.

WE DO HAVE A POWERPOINT LEDDY, I, I HAD EMAILED.

IT'S THE MOST RECENT ONE.

I WANNA BE ABLE TO SHARE THAT IF WE CAN WITH OUR MEMBERS.

I'M GONNA BE REALLY HONEST, ANYTIME I TRY TO DO SOMETHING, IT FREEZES THE WHOLE COMPUTER.

THE NEXT ITEM, WHICH IS THE UPDATE 'CAUSE WE'VE GOT A A LOT OF PHOTOS.

SO I'M CONCERNED THAT IT MIGHT FREEZE UP THE ZOOM AND WE'LL HAVE TO STOP AND START THE WHOLE MEETING OVER.

ALRIGHT, WELL THEN WE WILL STICK TO THE AGENDA ITEM.

I THINK IT'S KIND OF SUMMARIZED PRETTY WELL THERE.

SO WE'LL JUST START WALKING THROUGH THAT.

WELL, WE CAN SEE, WE CAN SEE THE, UH, DETAILS OF THIS FROM THE PACKET THAT, THAT THEY, THAT WE DOWNLOADED OFF THE INTERNET.

OKAY, WELL, WE'LL PROCEED WITH THAT THEN.

UM, I'M JUST DISAPPOINTED FOR

[00:25:01]

SO WHAT WE'LL DO IS WE'LL MAKE SURE THAT YOU GET A, A HOLD OF THAT.

UM, I'LL EMAIL VIA EMAIL.

THANK YOU VERY MUCH LUDY.

ALRIGHT, WE'LL PROCEED WITH THE CHANGE ORDER NUMBER NINE.

UH, AT THIS TIME WE'RE LOOKING AT PROJECT REALLY COMPLETION ITEMS AND WE'VE TAKEN A VERY HARD LOOK AT THE OPERATIONS BUILDING.

WE'VE BEEN THROUGH THAT BUILDING SEVERAL TIMES.

IT SEEMS THAT WE, WE ARE THERE, YOU KNOW, MANY TIMES A WEEK NOT JUST TO TALK ABOUT PROBLEMS, BUT JUST TO LOOK AT PROGRESS, MAKE DECISIONS.

SO THE FIRST TWO ITEMS ARE DEDUCTIVE ITEMS, AND THESE ARE ITEMS THAT, YOU KNOW, WILL SERVE THE GOOD NEWS UP FIRST.

AND BASICALLY THESE ARE SAVINGS, UH, TO THE PROJECT.

THE FIRST ITEM IS, UH, AN AREA WHERE SOME STEEL COLUMNS WERE ADDED.

THEY WERE, IT WAS A PREVIOUS CHANGE ORDER CHANGE ORDER NUMBER SEVEN.

THAT WAS SEVERAL MONTHS AGO.

SO THE BRICK MASON ARENA NO LONGER FIT AROUND THE ANCHOR PLATES.

IT'S THE REAR SIDE OF THE BUILDING.

THE COLUMNS ARE NOT UGLY.

SO WE DECIDED INSTEAD OF TRYING TO PAY FOR AN ADDITIONAL CHANGE JUST TO PLACE AN AESTHETIC TREATMENT, WE WOULD ELIMINATE THE BRICK MASONRY AND TAKE THAT SAVINGS.

SO THAT SAVINGS IS $4,025.

THE SECOND ITEM IS ALSO SAVINGS.

IT'S A DECREASE IN ABOUT $7,014 AND 50 CENTS RELATED TO THE OPERATION BUILDING.

STRUCTURAL MODIFICATIONS ALSO MADE DURING CHANGE ORDER SEVEN, THERE WERE SOME LARGER STEEL COMPONENTS AND THERE WAS THE, BASICALLY A SMALLER SURFACE AREA IN THE LOBBY TO BE ABLE TO HAVE A SMOOTH SURFACE.

SO IF WE CAN RECALL WHAT OUR BRICK VENEER LOOKS LIKE IN THE COUNCIL CHAMBERS, BASICALLY THAT HAS TO FACE NICELY AND IT HAS TO REST AGAINST THE REST OF THE DRYWALL.

WELL, WE HAD THREE WALLS AND WE THEN WENT DOWN TO JUST ONE.

SO WHEN WE ENTER THE LOBBY, WE'LL BE LOOKING AT THAT NICE ACCENT WALL AND IT'S NOT A DETRIMENT TO THE AESTHETIC OF THE BUILDING, BUT WE OPTED TO TAKE THAT SAVINGS AND REDUCE THE AMOUNT OF BRICK.

SO THAT IS STILL THERE.

JUST A SMALLER COMPONENT.

WE ARE REPRESENTING THAT, BUT IT AT LEAST WE'RE ABLE TO DO A SAVINGS.

THEY'VE NOW COMPLETED THAT ACCENT WALL, UM, OR SHOULD BE COMPLETING IT VERY SHORTLY, AND THEY'RE ON SCHEDULE FOR THAT.

SO LESS WORK ACTUALLY BENEFITED US.

THE THIRD ITEM OF OF WORK IS AN INCREASE.

IT'S ABOUT $4,100 AND IT'S FOR THE ADDITION OF EPOXY FLOOR COATING.

AND BASICALLY THIS IS TO WATERPROOF AN AREA THAT WOULD BE, UM, UNDERWATER, UH, INFLUENCE ALL THE TIME IN THE LABORATORY.

BASICALLY THERE'S AN ANALYZER AREA AND THAT'S UNDER, BASICALLY WE WOULD BE TAKING CONTINUOUS SAMPLES.

SO WE WANTED TO MAKE SURE THAT THAT AREA FOR IN A, IN A DEFINITE MANNER WOULD RECEIVE AN EPOXY TREATMENT.

UH, THERE WAS SOME QUESTION AS TO, YOU KNOW, WAS THIS A OMISSION DURING DESIGN OR WHAT DO WE DO? WE'RE STILL LOOKING INTO THAT, BUT WE DID NOT HAVE ANOTHER WATERPROOFING MECHANISM.

THERE'S A LOT OF, UM, EPOXY WATERPROOFING IN THE FIRST FLOOR AREA AND THE CHEMICAL CONTAINMENT.

SO WE'RE JUST APPLYING A VERY SMALL AREA AND, UM, MAKING THAT A SOLUTION IN THAT SECOND FLOOR AREA.

THE FOURTH ITEM OF WORK IS, UH, THE AMOUNT IS $3,815, AND THAT'S TO ADJUST THE HEIGHT OF A WALL IN THE RECEPTIONIST AREA.

SO IN THE ADMINISTRATION PART OF THE SECOND FLOOR, JUST AFTER, UM, EXITING THE ELEVATOR OR THE STAIRWAY, THERE IS A FUTURE OFFICE FOR A STAFF MEMBER.

AND WE REVIEWED THE AMERICANS WITH DISABILITIES ACT HEIGHT REQUIREMENT FOR TRANSACTION.

AND IF YOU AGAIN, CAN RECALL OUR COUNCIL CHAMBER, THERE'S A LOWER SECTION RIGHT HERE TO MY LEFT AND TO MY RIGHT AND THAT HAS ABOUT A 30 INCH HEIGHT.

AND SO I'M NOT A TALL PERSON, BUT I WAS ALMOST INVISIBLE BEHIND THE WALL, UM, IN THAT AREA.

SO WE OPTED TO DOUBLE CHECK THE REQUIREMENT AND THE ARCHITECT DID RESPOND THAT WE HAD TO LOWER THAT.

SO THAT'S THE AMOUNT REPRESENTED THERE.

THE FIFTH ITEM OF WORK IS TO INCREASE BY $4,530, MODIFYING THE MILLWORK AND TWO CABINETS.

UH, THERE WAS A, UH, SET OF S DESKS THAT'S BASICALLY THE OPERATIONS AREA AND SOME BUILT-IN MILLWORK.

WELL, THERE'S GONNA BE TWO CABINETS THAT WE WON'T BE ABLE TO, UH, OPEN.

AND SO WE'VE JUST OPTED TO ELIMINATE THEM INSTEAD OF HAVING THAT BE A CONSTANT, UM, KIND OF CONCERN FOR STAFF AND BASICALLY, UH, UNUSABLE.

SO THAT ITEM WILL BE COMPLETED, UH, FOR BASICALLY SOME ADDITIONAL PERSONNEL MOVEMENT.

AND I THINK THERE'S A BENEFIT THERE.

THEY WON'T BE AS CLOSED IN.

THE SIXTH ITEM OF WORK IS ACTUALLY NO COST, BUT WE WANTED TO BE TRANSPARENT WITH YOU.

IT ALSO INVOLVES, UM, THE RECEPTION AREA.

THERE WAS SOME, UH, DECORATIVE, UH, VENEER BRICK THAT WAS CALLED FOR THERE.

AND JUST TO MAKE SURE THAT WE COULD, UM, WORK WITHIN OUR CONSTRAINTS IN TERMS OF LOWERING THAT, UH, HEIGHT OF THAT WALL.

WE OPTED TO GO

[00:30:01]

WITH A THINNER MATERIAL TO COVER THAT AREA IN THE FORM OF TILE THAT WAS AVAILABLE AND APPROVED ON THE PROJECT ALREADY, RATHER THAN KIND OF INCUR SOME COSTS RELATED TO FIGURING OUT A WAY TO MAKE THAT VENEER BRICK WORK.

THERE'S, IT'S A GREAT SOLUTION AND IT MATCHES OTHER AREAS IN THE SECOND FLOOR.

THE SEVENTH ITEM OF WORK IS FOR $1,500 TO PROVIDE, UH, A CABINET BELOW A SINK IN THE LABORATORY.

UH, BASICALLY IT'S THE SINK THAT A LOT OF THE BEAKERS OR OTHER GLASS MATERIAL WOULD BE CLEANED AND THERE IS SOMEHOW NOT A BASE THAT WAS FITTING THAT SINK.

AND INSTEAD OF LEAVING THAT AREA EXPOSED, WE'RE GOING TO PROVIDE A, UH, CABINET COVER FOR THAT.

THE EIGHTH ITEM OF WORK IS A LITTLE BIT LARGER.

UM, THIS IS ONE OF THE ITEMS THAT PROMPTED US TAKING ACTION QUICKLY.

AND IT'S THE INCREASE OF $21,880 AND 8 CENTS TO UPSIZE A TRANSFORMER.

SO THERE IS A, UH, HIGH SERVICE PUMP STATION AND THE TRANSFER PUMP STATION IS SERVICED BY AN ELECTRICAL BUILDING AND THERE ARE SOME, UH, PAD MOUNTED TRANSFORMERS IN THAT BUILDING.

UH, THE ELECTRICIAN EXPLAINED TO US THAT, YOU KNOW, IN COLD WEATHER, IN ORDER FOR EQUIPMENT NOT TO FREEZE, THE ELECTRICAL PANELS ARE SERVICED BY HEAT TRACE AND THAT KIND OF ALLOWS JUST BASICALLY CONTINUOUS FUNCTION.

HOWEVER, THE TRANSFORMER THAT SERVES THAT IS UNDERSIZED.

SO WE'RE GOING TO STEP UP FROM 24 KVA TO 37.5 KVA.

AND IN ORDER TO DO THAT, WE'RE GOING TO, UH, NEED TO CHANGE THAT.

I ITEM OUT.

THE CONDUITS ARE ALREADY THERE.

IT IS A UNIT CHANGE OUT.

UH, THERE SHOULD BE NO IMPACT TO THE SCHEDULE ON LEAD TIME.

UH, WE'VE ALREADY CHECKED THROUGH THAT.

IT'S, UH, A SMALL ENOUGH ITEM THAT IT SHOULD BE AVAILABLE, NOT IMMEDIATELY.

THERE'LL BE A A COUPLE OF WEEKS, BUT IT'LL STILL BE ABLE TO BE CHANGED OUT IF WE WERE TO TAKE ACTION.

UM, TODAY THE NINTH AND LAST ITEM IS AN INCREASE OF $27,618 TO CONNECT THE OPERATIONS BUILDING LABORATORY ANALYZER TROUGH DRAINS, AND THE LABORATORY SINKS AWAY FROM THE SANITARY INTO THE SLUDGE TRANSFER STATION.

SO BASICALLY, UH, THE ITEM THAT WAS MENTIONED EARLIER, UH, RELATED TO THE SANITARY SEWER, THIS IS ALL THE, UH, NONS SANITARY SEWER, WE'LL CALL IT RAW WATER THAT IS KIND OF PROCESSED THROUGH IN THE LABORATORY.

THIS IS NOT ANYTHING THAT WOULD HAVE ANY FOOD, ANYTHING THAT WOULD BE CONSIDERED SANITARY SEWER.

SO WE WOULD BE ROUNDING THIS TO THE SLUDGE, UH, LAGOON.

AND SO WE WERE ABLE TO TAKE A LOOK AT, UM, A ROUTE THAT WAS NOW AVAILABLE TO US.

THIS ITEM IS, UH, WAS ORIGINALLY DISCUSSED, UH, DURING THE CHANGE ORDER, NUMBER ONE TIMEFRAME.

EARLY ON IN THE PROJECT, HOWEVER, THE ITEM HAD NOT BEEN ACTED ON.

WE WERE ABLE THOUGH TO FIND A VERY, UH, SHORT SOLUTION TO BASICALLY TAKE A TRADITIONAL ROUTE THROUGH THE BUILDING, UH, BASICALLY TO THE NEAREST, UH, DRAIN INSTEAD OF ALL THE WAY TO THE SANITARY.

I MEAN, PARDON ME, THE SLUDGE PUMP STATION.

SO THIS WILL BE, UH, ABLE TO BE ADDRESSED AND I WOULD SAY THE VAST MAJORITY OF OUR WATER THROUGH THE BUILDING WILL NOW BE ABLE TO BE REROUTED INSTEAD OF HAVING TO BE TREATED AS SANITARY SEWER.

SO IN SOME TOTAL, THE TOTAL VALUE OF THE CHANGE ORDER IS 52,385 AND 76 CENTS.

AND THAT COMPLETES MY REPORT.

ALRIGHT, IN ORDER FOR US TO HAVE DISCUSSION, DO I HAVE A MOTION? SO MOVE.

I HAVE A MOTION.

DO I HAVE A SECOND? SECOND.

UM, QUESTIONS OR DISCUSSION? I HAVE NONE.

NONE.

WELL, I, I HAVE ONE QUESTION AND THAT IS, IT SEEMS TO ME THAT, UM, ITEM FOUR AND ITEM EIGHT DEFINITELY SOUND LIKE THEY MIGHT BE DEFICIENCIES, DESIGN DEFICIENCIES.

AND I THINK WE COULD ALSO PERHAPS CONSIDER FIVE AND SEVEN.

UM, SOME OF THE, SOME ONE, SOME OF THOSE EARLIER ITEMS WERE PREFERENCE OR JUST CHANGES TO SAVE MONEY, BUT SOME OF THESE OTHERS SEEMED AS THOUGH THEY MIGHT BE DESIGNED DEFICIENCIES.

AND, UM, I, I GUESS THE DEPARTMENT IS CONSIDERING THAT AND, UH, EVALUATING.

WE, WE WOULD LIKE TO EVALUATE THAT AND, AND KIND OF FORMULATE A RESPONSE AND, AND APPROACH.

UM, AT THE NEXT MEETING, PERHAPS I THINK OUR EVALUATION WILL BE MORE COMPLETE AND WE HAVE, WE MAY HAVE SOME ADDITIONAL INFORMATION AT THAT TIME, RIGHT? AND, AND THERE ARE OTHER ITEMS OF COURSE AS WE'VE GONE THROUGH THIS PROJECT THAT WOULD FALL INTO THAT UH, CATEGORY.

SO YES MA'AM.

ALRIGHT, THANK YOU.

UM, DOES ANYONE ELSE HAVE QUESTIONS OR DISCUSSION? ALRIGHT, HEARING NONE, NO HEARING NONE.

UM, ALL THOSE IN FAVOR? AYE.

SAY AYE.

AYE.

AND ALL THOSE OPPOSED LIKE SIGN MOTION CARRIED UNANIMOUSLY.

ALRIGHT, OUR NEXT ITEM WILL BE TO CON TO RECEIVE

UM,

[a. Receive the Baytown Area Water Authority’s Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2020.]

[00:35:01]

THE AUTHORITIES QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING MARCH 31ST, 2020.

I'D LIKE TO, UH, FIRST OF ALL, UM, I'M SORRY FOR THOSE OF YOU THAT AREN'T HERE AND CAN'T MEET HIM IN PERSON, BUT, UM, THE CITY DID HIRE A NEW FINANCE DIRECTOR, UH, VICTOR BROWN LEASE, AND, UM, HE IS HERE TODAY TO PRESENT YOUR QUARTERLY FINANCIALS.

THANK YOU VERY MUCH INDEED.

UH, I'M PLEASED TO PRESENT THE SECOND QUARTER'S FINANCIAL REPORT.

UH, TURNING TO THE, UH, FIRST PAGE OF THE REPORT, DEALING WITH REVENUES, UH, WE'RE SETTING ABOUT 48, JUST A SHEET OVER 48% OF, UH, BUDGET REVENUE ALREADY COLLECTED AT THE MIDWAY POINT IN THE YEAR, WHICH IS FAIRLY CONSISTENT WITH THE, THE PRIOR YEAR.

UM, ON THE EXPENDITURE SIDE, UH, WE ARE SOME WOULD SAY FORTUNATE IN THAT, UH, WE'RE LAGGING BEHIND THE BUDGET, UH, RIGHT ACROSS THE BOARD.

UM, AND THAT'S AS A RESULT OF SAVINGS AND PERSONNEL AND SOME OTHER SAVINGS AND SUPPLIES AND MAINTENANCE.

UH, WE DON'T ANTICIPATE, UH, TO END THE YEAR, UH, DRAMATICALLY OFF BUDGET.

BUT CURRENTLY, UH, WE'RE SITTING AT SPEND AT ABOUT 40% OF BUDGET.

IT, UH, THE OTHER COUPLE OF SHEETS DEAL LARGELY WITH THE CAPITAL INVESTMENT PROGRAM.

THE FIRST IS, UH, NOT EARTH SHATTERING AT ALL.

IT'S, UH, PURELY THE MONEY THAT WE MOVE ACROSS FROM THE OPERATING FUND TO HELP FUND YOUR ONGOING CAPITAL INVESTMENT.

AND HALFWAY THROUGH THE YEAR YOU HAVE 50% TRANSFERRED INTO THAT FUND.

UH, THE LAST PAGE THEN DEALS WITH THE, UH, PROJECTS THAT ARE CURRENTLY IN HAND.

UH, I THINK FRANK HAS ALREADY, UH, DISCUSSED SOME OF THOSE THAT ARE UNDERWAY AND THAT WILL BE COMPLETED IN THE NEXT YEAR.

UM, AND I GUESS IF THERE HAVE ANY QUESTIONS, HE CAN DEAL WITH THAT.

THE LAST ITEM IN THE REPORT DEALS WITH THE INVESTMENTS.

I THINK I'VE BEEN SAYING THIS TO ALL THE OTHER BOARDS COMMITTEES AND TO THE COUNCIL ITSELF.

WE ARE REALLY VERY MUCH IN LINE WITH THE MARKET.

WE'RE ALL AWARE OF THE EFFECT THAT THE COVID-19 PANDEMIC HAS HAD ON GENERAL ECONOMIC AND FINANCIAL, UH, CLIMATE.

UH, BUT WE ARE NO DIFFERENT, UH, THAN ANYBODY ELSE IN THAT.

AND WE HAVE A ROBUST STRATEGY TO INVEST MONEY WISELY AND AT A CONSERVATIVE MANNER.

UH, SO WHERE WE'RE SITTING AT AT THE MOMENT IS, UH, AS I SAY, REASONABLY CONSISTENT IN THE CONTEXT OF THE ECONOMIC CLIMATE.

THAT'S REALLY AS MUCH AS I'VE GOT TO OFFER.

HAPPY TO TAKE QUESTIONS AND I WILL FEEL THOSE TO OTHER OF MY COLLEAGUES IN THE ROOM WHO ACTUALLY KNOW MORE OF THE DETAIL THAN I DO.

ALL RIGHT, THANK YOU.

ANY QUESTIONS? NO, MA'AM.

UM, NOW WE'LL RECEIVE AN UPDATE REGARDING THE AUTHORITIES EAST PLANT PROJECT.

THANK YOU VERY MUCH.

THANKS VERY MUCH.

[b. Receive an update regarding the Baytown Area Water Authority East Plant Project.]

WELL, GOOD AFTERNOON AGAIN.

UH, I WOULD LIKE TO JUST SUMMARIZE THE PLANT STATUS IN TERMS OF CONSTRUCTION AND THEN WE'LL MOVE INTO SOME OF THE PHOTOS, UH, MORE CLOSE UP THIS TIME RATHER THAN THE DRONE PHOTOS.

BUT WE ARE NOW AT THE, UH, PLANT STARTUP, PRE-STARTUP AND DEMONSTRATION AND, UH, TRAINING.

SO WE'VE BEEN GOING THROUGH ABOUT FOUR WEEKS OF TRAINING WITH UH, BA STAFF AND THE CONTRACTOR HAS HAD ALL THE EQUIPMENT MANUFACTURERS ON SITE.

THEY'VE BEEN DOING, UH, CHECKOUT OF THE EQUIPMENT, THEY'VE CONDUCTED TRAINING.

THIS IS ALL RECORDED, THIS IS ALL ABLE TO BE REPLAYED FOR FUTURE STAFF, UM, OR JUST TO REINFORCE TRAINING IN THE FUTURE.

SO THIS, WE EXPECT TO GO ON FOR AT LEAST ANOTHER, UH, SIX WEEKS.

WE ARE, UH, TRENDING.

WELL, THE MAJOR TREATMENT TRAIN, UH, MANUFACTURER IS SUEZ AND THEY'VE BEEN ON SITE, THEY'VE BEEN CONDUCTING SOME OF THE INITIAL TESTING THAT THEY HAD PLANNED TO DO.

AND ALSO OUR, UM, 16 INCH WATER LINE IS COMPLETE AND WE HAVE CHOSEN TO, UH, UTILIZE POTABLE WATER FOR THAT TREATMENT TRAIN STARTUP.

AND THAT'S SOMETHING THAT WE HAD NOT ANTICIPATED AT THE START, BUT WE THOUGHT IT WAS A BENEFIT TO THE PROJECT.

INSTEAD OF SENDING WATER AWAY FOR THE TIME BEING, WE'LL SEND WATER TO THE PLANT COMPLETE STARTUP.

AND THEN WHEN THAT'S READY TO GO IN THE OTHER DIRECTION AS IT SHOULD BE, WE'LL BE READY TO DO THAT.

SO THE PROJECT, UH, TEAM IS PLANNING FOR COMMISSIONING.

WE'VE BEEN MEETING WEEKLY TO ESTABLISH THAT PLAN, UH, THE ROLES AND RESPONSIBILITIES RELATED TO THAT, BUT AS WELL AS TRACKING DIFFERENT ITEMS OF WORK THAT STILL NEED TO BE, UH, COMPLETED.

SO AS OF NOW, WE'RE TRACKING IN THE, UH, JULY, JULY,

[00:40:01]

AUGUST TIMEFRAME AND THAT'S KIND OF OUR TENTATIVE UH, COMPLETION.

BUT OF COURSE I DON'T WANNA JINX ANYTHING.

BUT THAT'S PRETTY MUCH WHERE WE STAND TODAY.

SO I'LL MOVE INTO THE PRESENTATION AND FOR THOSE THAT CAN'T SEE, I'LL TRY TO DO MY BEST TO DESCRIBE IT TO YOU.

UM, HOLD ON HERE.

I HAVE THE WRONG PRESENTATION.

HEY.

HEY BRENDA.

YES.

I THOUGHT THAT AT, IS IT POSSIBLE TO ADJOURN THE MEETING AND THEN THEY CAN TRY TO DO ALL THESE VIDEOS AND PICTURES AND IF IT JUST KILLS THE ZOOM, THEN IT IS, IT IS WHAT IT IS.

POTENTIALLY YOU, I MEAN, WE COULD, WE COULD TRY AND HAVE LETTY SHOW IT AGAIN.

SHARE THE SCREEN AGAIN.

UM, IS THAT WHAT YOU'RE ASKING TO TRY AND YEAH, TRY AND SHARE THE SCREEN AGAIN.

DO YOU WANNA, ARE ARE YOU ASKING TO RECESS? IS THAT WHAT HE IS ASKING? SO THAT WE NO, NO, NO, I'M JUST SAYING, HEY, WE CAN ADJOURN THE MEETING BECAUSE THIS IS A, THIS IS THE LAST PIECE OF IT, RIGHT? UM, WE'RE NOT VOTING ON ANYTHING HERE.

AND THEN IF, IF BY SHOWING THIS PRESENTATION, IF IT KILLS THE, THE, THE SESSION, THEN THEN THE SESSION'S OVER.

SO WE LOSE OUR QUORUM IF IT KILLS IT SO WE CAN NO LONGER HAVE A MEETING.

THAT'S WHAT I'M SAYING.

THAT'S WHY WE GO AHEAD AND, AND, AND END THE MEETING AND THEN WE DO THE PRESENTATION.

NO, YOU NEED TO HAVE THE PRESENTATION AND IF WE LOSE A QUORUM, THEN THE MEETING WILL BE OVER 'CAUSE WE'VE LOST A QUORUM.

IF WE LOSE IT ON ZOOM, THAT'S FINE.

SHALL I PROCEED OR SHOULD WE YEAH, GO AHEAD AND TRY TO PRE GO AHEAD AND TRY TO PRESENT IT.

'CAUSE DID YOU, DID YOU TRY TO SHARE SCREEN LOAD? SO MY COMPUTER DOESN'T TOGGLE, SO I CAN'T AH, I JUST PUT A NOTE.

MY COMPUTER'S NOT TOGGLING.

CAN'T GET TO THAT PRESENTATION.

I TRIED TO SEE IF THE CAMERA COULD SHOW IT.

IF IT DOESN'T, UM, OKAY.

COULD, COULD WE PUT THE CAMERA ON? IT'S CONNECTED TO THE COMPUTER SO I CAN'T, I CAN'T MOVE IT TO, TO A COMPUTER THAT'S ON AND MINE DOESN'T TOGGLE, SO IT WON'T BRING UP THE PRESENTATION.

SO WHAT ABOUT LLOYD'S COMPUTER? NO, BECAUSE LLOYD IS IN ANOTHER ROOM AND MY, THE ZOOM IS NOT CONNECTED TO LLOYD'S SYSTEM.

IT'S CONNECTED TO MY COMPUTER.

IT'S, IT, IT DOESN'T INTERFACE.

IT WON'T PICK IT.

THE, THE, IT'S UH, IT'S A VERY INEXPENSIVE CAMERA BECAUSE OF THE SHORT TIMEFRAME.

WE, WE'VE ORDERED SOMETHING BUT IT DOESN'T HAVE THE CAPACITY TO REALLY SEE IT.

IT'S LIKE A LITTLE WHITE BLURB.

I TRIED, SORRY.

I THINK ANDREA'S GONNA TRY.

IF I PARTICIPATE IN THE ZOOM, COULD I SHARE? UM, SURE.

DO YOU WANT, I'M JUST GONNA LOG, LOG ON.

MAYBE WE COULD JUST, YEAH, IF EVERYBODY'S PATIENT.

LET ME BOOT UP MY LAPTOP HERE.

LET'S SEE IF I CAN JUST JOIN THE ZOOM.

BACK TO THE LAPTOP.

I CAN'T REMOVE IT FROM THE COMPUTER.

THIS IS COVID-19 PUBLIC MEETINGS ON THE FLY.

YEAH, I DO VERY MUCH.

THANK YOU FOR BEING SO EXCITED ABOUT SEEING THE PRESENTATION THAT YOU WANNA SEE IT.

SO THIS, THIS, IT'S WORTH ALL THE, ALL THE HARD, I'M SORRY.

I'VE JUST BEEN FULL OF BAD NEWS FOR YOU.

YOU GUYS CAN'T SEE WHAT'S HAPPENING BUT ANDREA'S TRYING TO PULL UP HER LAPTOP SO SHE CAN DIRECTLY SHARE THE PRESENTATION ON ZOOM.

WE'LL SEE IF THAT WORKS.

ACTUALLY, ACTUALLY WE CAN SEE HER JUST NOT, NOT HER LAPTOP.

OH, OKAY.

GOOD.

CAN YOU JUST PUT IT ON YOUR LAPTOP AND TURN? WELL I'M WONDERING IF I CAN'T JUST MOVE THIS SCREEN UP THERE.

SO I'M TRYING TO THINK, WHERE IS THE CAMERA THERE? IT'S RIGHT THERE.

THE CAMERA RIGHT THERE.

IT'S THE BLACK SCREEN THING RIGHT THERE.

OH, THEY CAN SEE ME HERE.

OKAY, I CAN SEE YOU HERE.

HERE.

CAN YOU PUT IT ON THE, I'M JUST THINKING THIS CAN THIS RATHER THAN IT DOESN'T SHOW VERY WELL.

CAN YOU GUYS SEE IT AT ALL? YEAH.

CLOSER .

I DON'T, IT DOESN'T GET ANY CLOSER THAN THAT.

HOW, HOW ABOUT THIS? THE LAPTOP? WE CAN TRY THAT.

WE'LL, WE'LL WE'LL GIVE IT, IT WON'T BE THE BEST VIEW RIGHT NOW, BUT WE CAN EMAIL IT OUT TO YOU GUYS AFTERWARDS IF YOU WANT A BETTER VIEW OF THE PICTURES.

SOUNDS GOOD.

THAT'S FINE.

SO, SO FRANK, WHAT WE COULDN'T DO, WE COULDN'T ZOOM THE ZOOM.

NO YOU DIDN'T, YOU ZOOM, YOU JUST DIDN'T ZOOM, ZOOM, ZOOM.

WE WERE SHORT OF ZOOM.

AND I APOLOGIZE THAT I'M NOT THERE GUYS.

I'M STILL ONE OF THE VULNERABLES THAT'S NOT SUPPOSED TO BE GOING OUT.

UH, I DON'T KNOW IF YOU CAN SEE IT THAT WELL BECAUSE OF GLARE.

SO EXCUSE.

LLOYD WAS GONNA TRY AND WE WANT YOU HEALTHY.

HE HE WAS GONNA TRY AND SHOW, SO THANK YOU.

OKAY, LET'S TRY THIS AND THEN YOU JUST, YOU JUST HAVE TO HIT THE DOWN BUTTON.

UM, I'LL, I'LL HIT DOWN.

[00:45:02]

YEAH, WE'RE TRYING.

HI.

OH THAT'S PERFECT RIGHT THERE.

OKAY, GOOD.

VERY GOOD.

LEMME JUST, YOU GOT IT.

LABORATORY THAT'S ALL LOOKING VERY NICE AND IN PLACE.

SO I JUST WANNA TAKE A CHECK ON, ON ZOOM WE'RE SEEING CANAL INTAKE AND RAW WATER PUMP STATION.

HELLO.

CAN, CAN YOU SEE OR CAN YOU HEAR? THERE WE GO.

OKAY, VERY GOOD.

SO THIS IS OUR, THIS IS A DRONE SHOT OF THE CANAL.

YOU CAN SEE IT'S VERY FULL, UM, AT THIS TIME.

AND THIS IS OUR CANAL INTAKE AND UH, RAW WATER PUMP STATION.

THIS IS A COUPLE OF OUR STAFF MEMBERS, UM, THAT WERE OUT.

WE WERE OUT TO SURVEY THE, UH, SEQUENCE OF CONSTRUCTION.

THIS NEXT PHOTO IS THE RAW WATER PUMP STATION.

THIS IS HERSCHEL.

HE IS, UH, POINTING SOMETHING OUT TO US, UH, LIKE A FUTURE CHEMICAL INJECTION LOCATION.

SO HERSCHEL DIDN'T KNOW HE WAS ABOUT TO HAVE FIVE MINUTES OF FAME, BUT THERE HE IS.

WE APPRECIATE HIS EFFORTS ON THE PROJECT BECAUSE WE REALLY ARE BENEFITING FROM THAT EXPERIENCE.

THIS IS OUR LOW LIFT PUMP STATION, UH, DIRECTLY ADJACENT TO THE FOUR BAY.

UH, LAST MONTH WE LOOKED AT A CHANGE ORDER OR WE APPROVED A CHANGE ORDER TO REPAIR THE FOUR BAY.

WE ARE HAPPY TO, I DON'T HAVE PICTURES OF IT, BUT WE ARE HAPPY TO REPORT THAT THE ISSUES ARE RESOLVED AND THE FOUR BAY HAS BEEN FILLED IN PREPARATION TO DO THE EQUIPMENT STARTUP.

SO THAT HAPPENED VERY QUICKLY AND WE'RE VERY PLEASED WITH THE RESULT.

ONCE AGAIN, WE'RE LOOKING AT A CHEMICAL INJECTION PORT HERE AND HERSCHEL'S POINTING THAT OUT.

THIS IS THE START OF OUR TREATMENT TRAIN DIRECTLY ADJACENT TO THE OPERATIONS BUILDING.

THIS IS THE RAPID MIX.

THIS IS A LOCATION WHERE A NUMBER OF THE CHEMICALS ARE INJECTED AND THE EXPOSED, UH, PIPING HERE, YOU CAN SEE THE STRAPS.

THOSE ARE FUTURE INJECTION PORTS.

THIS IS KIND OF AN UNEXCITING PHOTO, BUT WE'LL HAVE AN EXCITING PHOTO NEXT.

THIS IS THE PULSE BED CLARIFIER.

JUST TO KIND OF GIVE THE SIZE, YOU KNOW, I'M STANDING ON THE GROUND HERE AND THIS IS, YOU KNOW, SEVERAL 25, 30 FEET IN THE AIR.

UM, AND I DID NOT CLIMB THAT LADDER BECAUSE I'M AFRAID OF HEIGHTS ON LADDERS LIKE THAT.

THIS IS OUR DRONE SHOT OF THAT SAME STRUCTURE.

THESE ARE THE, UH, BASICALLY IT'S THE PULSE BED CLARIFIER.

AND THIS IS BEING GONNA BE FILLED WITH MEDIA.

IT'S BEEN PROBABLY BEEN FILLED BY NOW.

SO WE HAVE THE ANGLE PLATES, THOSE WHITE ANGLE PLATES AND THE BLUE, AND I CALL THEM CARTRIDGES, BUT THEY'RE REALLY VERY LIGHTWEIGHT, UH, ELEMENTS THAT MAKE UP THAT CLARIFIER AND JUST AHEAD OF IT WHERE THE STAFF IS STANDING.

BUT IT LOOKS LIKE A BIG COVER, UH, THAT IS THE DISINFECTION CHAMBER.

AND AHEAD OF THAT WE'LL SEE ANOTHER PICTURE OF IT CLOSED UP.

THAT'S THE FILTER.

THIS IS A CLOSEUP OF THE DISINFECTION FROM ANOTHER ANGLE, SAME DAY.

IT IS ENCLOSED BECAUSE WE DO DISINFECTION.

UH, AND THAT METHOD IS NORMALLY WITH, UH, CHLORINE DIOXIDE, WHICH IS A GAS.

AND THAT HAS TO BE ENCLOSED IN ORDER TO HAVE CONTACT TIME.

AND THE GAS WOULD NOT JUST, YOU KNOW, ESCAPE TO THE ATMOSPHERE.

THIS IS A DRONE SHOT OF OUR, UH, FILTER.

UH, THIS IS BASICALLY NOW A LOT FARTHER ALONG.

THIS WAS JUST VERY PROBABLY THREE WEEKS AGO AND IT'S ALL BEEN KIND OF COVERED UP.

SO IT DOESN'T EVEN LOOK LIKE THIS AS EASY TO SEE IN HERE, BUT IT REALLY, REALLY HELPS TO BE ABLE TO SEE SOMETHING LIKE THIS WHEN WE'VE BEEN LOOKING AT DESIGN PLANS FOR SO LONG.

THIS IS OUR EQUALIZATION BASIN.

IT'S NOT FULL WITH ANYTHING OTHER THAN RAINWATER AND UH, IT'LL PERFORM A FUNCTION.

IT'S JUST RIGHT NOW WE'RE JUST COMPLETE AND IT'S FULLY, UH, WATER TESTED.

THIS IS OUR TRANSFER PUMP STATION, UH, HERSCHEL'S POINTING OUT ANOTHER PORT AND EVERYTHING'S BEEN PAINTED.

IT'S LOOKING VERY GOOD.

WE'VE HAD SOME ROUGH GRADING AROUND THE SITE.

THIS IS THE GROUND, GROUND STORAGE TANK AND THE HIGH SERVICE PUMP STATION.

ONCE AGAIN, EVERYTHING'S GETTING FINISHED UP.

THEY STILL HAVE SOME PIPE SUPPORTS THAT THEY'RE BUILDING AND YOU CAN SEE THE FORMS ON THOSE OVER TO THE RIGHT.

THIS IS INSIDE THE OPERATIONS BUILDING.

WE PROMISED SOME PHOTOS.

UM, ON THE LEFT HAND SIDE, YOU CAN SEE FOLKS ARE WORKING ON ALL THE PIPING.

EACH ONE OF THE AREAS BEHIND A YELLOW COLUMN IS A CHEMICAL CONTAINMENT AREA FOR THE VARIOUS CHEMICALS THAT WE ARE GOING TO BE SENDING OUT INTO THE PLANT.

ON THE RIGHT HAND SIDE IS SOME OF THE ELECTRICAL COMPONENTS, MAJOR ELECTRICAL SYSTEMS THAT ARE NOW IN PLACE LOOKING BRAND SPANKING NEW AND READY TO GO.

THIS IS A SECOND FLOOR.

UH, THIS PHOTO ON THE LOWER LEFT HAND SIDE IS A SCENE OF OUR KITCHEN.

IN THE MIDDLE IS THE

[00:50:01]

ALL THE CABINETRY IS IN PLACE.

THE COUNTERTOPS ARE NOT EXPOSED, THEY'RE BEING PROTECTED BY A PAPER.

AND OVER ON THE RIGHT HAND SIDE, THIS IS OUR ANALYZER AREA.

IF YOU CAN IMAGINE ALL OF THE WATER WOULD COME IN AND BE ANALYZED BY THESE TREATMENT.

UH, BASICALLY VERY SENSITIVE, UH, TREATMENT UNITS.

AND THE WATER WILL THEN GO INTO THE LOWER AREA, WHICH IS WHERE WE'RE GONNA COVER THAT WITH EPOXY AND WATERPROOF VA.

THIS IS A FEW SHOTS OF THE EXTERIOR.

ON THE LEFT HAND SIDE, YOU CAN SEE THE ACCENT STONE.

AND THEY WERE WORKING ON THE, UH, STONE AROUND THE FRONT ENTRY.

DOING A GREAT JOB THERE.

THEY'VE DONE A LOT OF THE VERY NICE WORKMANSHIP, UM, THAT'S LOOKING AND SHAPING UP VERY WELL.

ON THE RIGHT HAND SIDE IS A VIEW FROM THE REAR OF THE BUILDING.

I'LL JUST CALL OUT TO, ON THE RIGHT HAND SIDE, HOLDING UP THE CANOPY ARE THOSE STRUCTURAL MEMBERS THAT WE DECIDED TO DELETE THE BRICK FROM.

AND THEY DON'T LOOK BAD AT ALL.

THEY'RE LOOKING QUITE NICE AND GALVANIZED READY FOR THE WEATHER.

AND THE KIND OF OPEN AREA ON THE SECOND FLOOR IS KIND OF VISIBLE THERE.

THERE'S THREE, UH, KIND OF SPACES.

THOSE WILL NOT HAVE WINDOWS.

THAT'S THE KIND OF OPEN AIR DECK AREA.

AND THEN DIRECTLY BELOW THAT ARE THE ROLL UP DOORS FOR ANY LARGE CHEMICAL DELIVERIES LIKE TOTES.

ALL THOSE WILL BE BROUGHT IN VIA FORKLIFT AND SET INTO PLACE IN THOSE, UH, CURVED AREAS.

AND THAT'S ALL I HAVE.

DOES ANYONE HAVE QUESTIONS? WELL DONE.

ALRIGHT, WELL THANK YOU VERY MUCH.

UM, THAT BRINGS US

[5. MANAGER'S REPORT]

TO THE MANAGER'S REPORT.

ONLY THING I'VE GOT IS JUST A REMINDER OF YOUR NEXT BOARD MEETING ON JUNE 17TH AT 4:30 PM ALRIGHT.