* 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. HEY EVERYONE, I'D [00:00:01] LIKE TO WELCOME ALL OF YOU TO THIS REGULAR MEETING OF THE BAYTOWN AREA WATER AUTHORITY. CALL THE MEETING TO ORDER AND ANNOUNCE THAT WE DO HAVE A QUORUM TODAY. OUR FIRST ITEM OF BUSINESS TODAY WILL BE FOR CITIZENS COMMENTS. ALL RIGHT, NO ONE HAS SIGNED UP, SO THEREFORE WE WILL DISPENSE WITH THAT ITEM. UM, OUR NEXT ORDER OF [a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on October 18, 2023. ] BUSINESS WILL BE TO CONSIDER APPROVING THE MINUTES OF THE AUTHOR'S REGULAR MEETING HELD ON OCTOBER 18TH, 2023. I MOVE THAT BE APPROVED. SECOND, I SECOND I HAVE A MOTION AND A SECOND QUESTIONS OR DISCUSSION, HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. UM, NEXT WE WILL CONSIDER APPROVING [b. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on November 15, 2023.] THE MINUTES OF THE AUTHOR'S REGULAR MEETING HELD ON NOVEMBER 15TH, 2023. MOVE APPROVE A SECOND MOTION. AND SECOND. ANY QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? LIKE SIGNED MOTION CARRIES UNANIMOUSLY. ITEM THREE A. [a. Consider a resolution authorizing the General Manager to negotiate and execute a Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law to perform legal services in connection with potential litigation regarding the presence of Polyfluoroalkyl substances (PFAS), including, but not limited to, PFOA and/or PFOS, in drinking water, wastewater and soil in the Baytown Area Water Authority's service area. ] WE WILL CONSIDER A RESOLUTION AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE AND EXECUTE A CONTINGENCY FEE AND RETAINER AGREEMENT WITH FRASER LAW, PLC AND VENTURA LAW TO PERFORM LEGAL SERVICES IN CONNECTION WITH POTENTIAL LITIGATION REGARDING THE PRESENCE OF PLURAL ALCOHOL SUBSTANCES, PFAS, INCLUDING, BUT NOT LIMITED TO PFOA AND OR PFAS IN DRINKING WATER, WASTEWATER AND SOIL IN THE BAYTOWN AREA WATER AUTHORITY SERVICE AREA BOARD. YOU HAVE SEEN THIS ITEM ALREADY AND WE'RE BRINGING IT BACK TO YOU BECAUSE AFTER YOU MET, WE REALIZED THAT WE HAD LEFT SOME, UH, REQUIRED LANGUAGE OUT OF THE FIRST NOTICE. SO WE RENO THIS ITEM AND WE'RE BRINGING IT BACK TO YOU. ALRIGHT. DO WE, I I WILL ADD THAT, UH, A SIMILAR ITEM DID GO BEFORE CITY COUNCIL AND PASSED. ALRIGHT. SINCE WE ARE CONSIDERING A RESOLUTION, DO WE NEED A MOTION TO APPROVE? YES, MA'AM. ALL RIGHT. DO I HAVE A MOTION? SO, MOVE SECOND. ALRIGHT, QUESTIONS OR DISCUSSION? DO WE HAVE A LIST OF, UM, YOU KNOW, COMPANIES THAT MIGHT BE PART OF LITIGATION? UH, WE DON'T HAVE A LIST PER SE. THERE ARE SEVERAL COMPANIES I BELIEVE THIS PARTICULAR SETTLEMENT IS WITH. UM, SORRY. IT JUST, UH, ESCAPED ME. UM, BUT I CAN GET THAT TO YOU. I DO HAVE IT. ALRIGHT. I'M CURIOUS, WHY DO YOU ASK? I I'M ALMOST POSITIVE THAT THE COMPANY I WORK FOR HAS NOTHING THAT THEY'VE MADE IN THE PAST, BUT I'M JUST CURIOUS SO TO KNOW IF I NEED TO ABSTAIN OR NOT. ALL RIGHT. GOOD QUESTION. ALRIGHT, THANK YOU. ANY OTHER QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? LIKE SIGN. MOTION CARRIES UNANIMOUSLY. UM, MOVING TO THE REPORT SECTION OF [a. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending September 30, 2023.] THE AGENDA, WE WILL NOW RECEIVE THE AUTHORITIES QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING SEPTEMBER 30TH, 2023. IS THE, YOUR, DID YOU HAVE YOURS? NO, YOUR NEXT, BUT THIS IS, GO THERE. THIS IS MY, NO, THAT'S JUST MY PRESENTATION. LEMME GO THERE. THEY SAID IT WAS HERE. THANK YOU. OH, YES. OKAY. UH, FINANCIAL REPORT. I THINK THAT, YEAH, HE STAYS ONE. OKAY. LEMME GO. OKAY. SORRY ABOUT THAT. UH, GOOD AFTERNOON. UM, OKAY. BOARD MEMBERS FOR THE RECORDS, MY NAME IS LI LEON, UH, CONTROLLER AND FINANCE, UM, ASSISTANT DIRECTOR. SO I'M PLEASED TO PROVIDE A SUMMARY OF BUA FINANCIAL PERFORMANCE PERFORMANCE FOR THE FOURTH QUARTER, UM, THAT ENDED ON SEPTEMBER ON 2023. PLEASE NOTE THAT THESE FIGURES ARE NOT AUDITED YET, UH, DUE TO THE ONGOING, UH, SINGLE AUDIT FOR FISCAL YEAR 23. [00:05:01] SO, IF YOU CAN SEE IN YOUR PAPERS OR YOUR DOCUMENTS, THE TOTAL REVENUE FOR THE QUARTER AMOUNTED TO 22.5 MILLIONS. UM, THE EXPENDITURES FOR 23 REACH 13.3 MILLIONS, RESULTING IN A NET CHANGE OF 9.1 MILLION. OUR WORKING CAPITAL, WHICH STARTED AT NEGATIVE 1.5 MILLION FOR THIS QUARTER, UH, CULMINATED IN AN ENDING WORKING CAPITAL OF FIVE, UM, 7.5 MILLION. TURNING TO THE CIP FUND, REVENUES AMOUNTED AMOUNTED TO 1.1 MILLION WHILE EXPENDITURES REACHED FOR 0.2 MILLIONS. DESPITE THIS, THE ENDING WORKING CAPITAL FOR THE CIP FUNDS STANDS AS 1.3 MILLIONS. UH, IN THE INVESTMENTS, THE, THE INVESTMENTS, WE HAVE 4.1 MILLIONS GENERATING EARNINGS FOR 144 AND THOUSAND, UH, 4, 6 4. ANY QUESTION? WHY DID OUR, UH, WHY WAS OUR WATER SALES SO MUCH HIGHER? WAS THAT, WAS THAT THE BECAUSE OF THE DROUGHT YOU, DO YOU THINK? YES, SIR. UH, FOR THE FOURTH QUARTER, WE USUALLY APPLY THE GAS FEES AND, UH, ANY ACCOUNTING PRINCIPLE THAT WE HAVE TO DO IN ORDER TO HAVE THE FISCAL YEAR ENDED. SO, YES, THAT'S OUR REVENUES, OUR ACTUALS. DID YOU SAY THAT THESE NUMBERS WERE GONNA BE AUDITED? YES. AND WHEN, WHEN WILL THAT BE DONE? WE ARE CURRENTLY WORKING, UH, CLOSELY WITH THE EXTERNAL AUDITOR, SO WE ARE IN PROCESS. AND WHO, WHO ARE WE EXPECT WHO, WHO ARE THOSE AUDITORS? OUR AUDITOR IS BILL HARRIS. SORRY, WHO? BELT AND HARRY'S. OKAY. ANY OTHER QUESTIONS? ALRIGHT, THANK YOU VERY MUCH. THANK YOU. UM, ITEM FOUR B. WE WILL [b. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.] NOW RECEIVE A REPORT ON THE STATUS OF THE AUTHORITIES EAST EXPANSION PROJECT. OKAY. GOOD AFTERNOON. UH, MADAM PRESIDENT AND BOARD, UM, I THINK YOU DID RECEIVE THIS PRESENTATION MAYBE IN EMAIL ALREADY. UH, HOWEVER, I HAVE MADE SOME CHANGES TO IT, SOME FAIRLY SIGNIFICANT CHANGES. SO, UH, I'M NOT GONNA FOLLOW EXACTLY THE PRESENTATION THAT YOU RECEIVED. UH, AND I'LL GO THROUGH, UH, THE CHANGES AND THE REASON FOR THOSE. UM, SO THE AGENDA, I'M GONNA TALK ABOUT JUST, UH, A BRIEF UPDATE ON OUR RFQ RELATED TO THE EXPANSION. THEN, UH, I'M GONNA GET INTO SOME TIMING AND CAPACITY ISSUES THAT, UM, HAVE, YOU KNOW, UH, COME UP OVER THE PAST FEW DAYS THAT, UM, I WANT TO EXPLAIN TO YOU AND THEN LOOK AT BASED ON THOSE, WHAT ARE OUR PROCUREMENT OPTIONS AND LOOK AT A TENTATIVE SCHEDULE GOING FORWARD. SO, JUST AN UPDATE ON THE RFQ. WE DID RECEIVE THREE SUBMISSIONS. UM, WE HAVE SELECTED, UH, TWO OF THE FIRMS TO REQUEST, UM, REQUEST FOR, UH, PROPOSALS ON, AND THOSE ARE THE FIRST TWO BURNS. AND MCDONALD WITH OUR DURA AND BAYTOWN WATERWORKS PARTNERS WITH, UH, MCCARTHY AND COROLLA, UH, FLINTCO, UH, WAS DISQUALIFIED ON THEIR SUBMISSION BECAUSE THEY DID NOT SUBMIT ALL THE REQUIRED FORMS, AND SO THAT, UM, DISQUALIFIED THEM. QUICK QUESTION, FRANK. YES, SIR. THOSE FIRST TWO THAT WE'VE, UH, CHOSEN FOR RFQ S ARE, WE'VE DEALT WITH THEM BEFORE, CORRECT. SO WE HAVE, UH, DONE CONTRACTS AND, AND DEALT WITH THE, UH, THE ENGINEERING FIRMS AS, AS PART OF THOSE TWO, UH, GROUPS, UH, WITH ARTURA AND COROLLA. THEY'VE BO BOTH DONE WORK FOR BOTH BWA AND CITY OF BAYTOWN. UM, THE CONSTRUCTION, UH, THE CONTRACTORS, UH, OF THOSE TEAMS. WE HAVE NOT DONE WORK, YOU KNOW, WITH, UH, BAYTOWN OR, UM, YOU KNOW, BAWA. UH, I JUST, UH, REMEMBERED COROLLA SPECIFICALLY AS HAVING EVEN DONE PRESENTATIONS HERE, SIR. BEFORE. YES, SIR. YES, SIR. OKAY. THEY HAVE, AND THEY, THEY, THESE, THESE ARE TWO GOOD. SO I JUST WANNA SAY THESE ARE TWO GOOD PROPOSALS. UH, WE'RE VERY HAPPY WITH WHAT WE RECEIVED. UM, SO, UM, THIS IS A GOOD PROPOSAL AND, AND WE ARE, YOU KNOW, I THINK IN A GOOD POSITION MOVING FORWARD. SO, OKAY. UM, THESE ARE, WELL, YOU KNOW, EVEN THOUGH WE HAVEN'T WORKED WITH THESE, UH, CONTRACTORS, THEY'RE BOTH VERY WELL RESPECTED, UH, CONTRACTORS. THEY'VE DONE A LOT OF SIMILAR, UH, PROJECTS. [00:10:01] SO, UM, WE FEEL VERY CONFIDENT THAT EITHER TEAM COULD MOVE FORWARD AND COMPLETE THIS PROJECT SUCCESSFULLY. OKAY. ANY OTHER QUESTIONS? NOT ON THIS. OKAY. GOOD. , I'M SURE. OKAY. UM, SO I WANTED TO GET INTO, AND, AND, UH, THIS IS A CHART HERE THAT, UM, I DON'T THINK WAS PART OF YOUR PRESENTATION, UM, BUT IT, IT HELPS TO EXPLAIN, UM, SOME OF THE CAPACITY, UH, ISSUES THAT, YOU KNOW, ARE DRIVING THE PLANT EXPANSION. UM, SO, UM, YOU KNOW, THIS CHART IS A REPRESENTATION OF OUR CONTRACT WATER CAPACITY. IT DOESN'T HAVE ANYTHING TO DO WITH ACTUAL PRODUCTION OR DEMAND. UM, THIS IS SIMPLY LOOKING AT OUR, UH, CAPACITY TO PRODUCE WATER ON PAPER AND WHAT WE HAVE OBLIGATED ON PAPER TO PROVIDE WATER TO OUR CUSTOMERS. SO IT'S, UM, UH, CONTRACTUALLY IT'S IMPORTANT TO, YOU KNOW, THE STATE THAT WE DON'T OBLIGATE TO SELL MORE WATER THAN WE HAVE CAPACITY FOR, AND THAT THAT'S THE BOTTOM LINE. UM, SO YOU KNOW, THAT, THAT COMES INTO PLAY WHEN WE ARE, YOU KNOW, UM, EVALUATING NEW DEVELOPMENT THAT MAY WANT TO COME IN. THEY MAY WANT TO, YOU KNOW, UM, NEED, UH, WATER AS PART OF THE DEVELOPMENT. AND SO, YOU KNOW, A NEW CONTRACT, THEY WILL CONTRACT WITH EITHER BWA OR A CITY OF BAYTOWN FOR, YOU KNOW, UH, WATER CAPACITY. AND THEN THAT WATER CAPACITY WILL, WILL USE UP, UH, SOME OF THE PLANT CAPACITY. SO, DID YOU EVER QUESTION, OKAY. UM, SO AS I, AS I SAID, UH, YOU HADN'T SEEN THIS CHART, BUT THIS CHART IS WHAT WE, UH, USE TO PROJECT OUR DEMANDS AND CAPACITY. AND, UM, YOU KNOW, WE HAD, UH, DONE ONE SIMILAR TO THIS AND, AND, WELL FIRST LET ME ORIENT YOU TO THE CHART. SO I HAVE, UM, THE, ALONG THE TOP ROW IS THE, UH, TOTAL CAPACITY OF THE PLANTS, BOTH PLANTS. SO IT IS THE, UH, BIO MAIN PLANT AND THE EAST PLANT. SO THAT'S CLOSE TO 32, UH, MGD CAPACITY. THEN THE COLUMNS REPRESENT, UH, EACH OF THE YEARS. AND THE ROWS, UH, BELOW THAT ARE, UM, FIRST WE HAVE THE CITY OF BAYTOWN AND BAYTOWN HAS, UH, WHAT WE CALL AN A CR, WHICH IS A ALTERNATE CAPACITY RESERVATION. AND THAT JUST MEANS WE'VE GONE TO TCQ AND WE'VE PROVEN THAT, UH, THE CITY DOES NOT USE AS MUCH WATER AS WHAT THE STANDARD IS FOR TC Q'S RESERVATION. UH, SO WE'VE DONE AN ANALYSIS, WE PRESENTED IT TO TCQ, AND THEY SAID, OKAY, YOU CAN HAVE A LOWER CAPACITY, UH, RESERVATION THAN THE STANDARD BECAUSE, BECAUSE OF YOUR AVERAGE USAGE AND YOUR PEAK USAGE. UH, SO, SO THAT THE, THE TCQ BASICALLY HAS A STANDARD BASED ON LIKE POPULATION OR SOMETHING LIKE THAT. IT'S BASED ON THE NUMBER OF CONNECTIONS. OH, OKAY. AND IT'S, UH, YOU KNOW, A GALLONS PER MINUTE PER CONNECTION, SOME FLOW. RIGHT. OKAY. AND IF YOU CAN SHOW THAT, YOU KNOW, YOUR, YOUR USAGE HAS, UH, YOUR PEAK USAGE IS REALLY WHAT DRIVES IT. AND SO IF YOU CAN SHOW IT'S BEEN LOWER THAN THEIR STANDARD, WHICH, UH, I THINK IS POINT, WHAT IS IT? POINT SIX, 0.6, AND WE GOT APPROVED FOR 0.37. SO, SO WHAT THAT MEANS IS WE TAKE THE NUMBER OF CONNECTIONS WE HAVE, MULTIPLY THAT BY THE 0.37, AND THAT TRANSLATES INTO THAT TOP NUMBER. UM, AND IT TELLS YOU HOW MUCH YOU CAN CONTRACT OUT OUTSIDE OF THAT'S RIGHT. OKAY. RIGHT. UM, AND SO THAT NUMBER IS CHANGING BASED ON THE NUMBER OF CONNECTIONS AND TO GO INTO THE FUTURE, WE HAVE TO PROJECT HOW MUCH GROWTH, YOU KNOW, THE, THE CITY WILL HAVE, UM, UH, RELATED TO THOSE CONNECTIONS. AND SO WE PROJECTED A GROWTH AND WE ADJUST THAT EACH YEAR BASED ON THE ACTUAL, UM, AND THE GROWTH IS, UH, I THINK IT'S, IT'S IN LINE WITH OUR PROJECTIONS RIGHT NOW. WE'RE NOT SEEING SIGNIFICANT DEVIATIONS FROM THAT. UM, THE NEXT LINE IS OUR CONTRACT REQUIREMENTS. AND THESE ARE SEPARATE CONTRACTS THAT THE CITY HAS WITH, UM, UH, WATER RESELLERS. SO THE, THE BIG ONES ARE THE CHAMBERS COUNTY IMPROVEMENT DISTRICTS. THERE'S CCID ONE, TWO, AND THREE. AND [00:15:01] THEY HAVE THE CUSTOMERS WITHIN THOSE IMPROVEMENT DISTRICTS. SO WE, THE CITY CONTRACTS WITH CCIS AND, UM, WE SELL WATER TO THEM. THEY SELL WATER TO THEIR CUSTOMERS. UH, THERE'S SEVERAL MUDS, UH, IN CITY MUDS THAT THE CITY CONTRACTS WITH. AND, AND THAT GOES INTO THAT NUMBER ON THE SECOND ROW. AND, UM, WE'VE MADE ADJUSTMENTS TO THAT BASED ON THINGS, LIKE I SAID, WHEN NEW DEVELOPMENT COMES IN, THEY WOULD COME TO US AND REQUEST MORE CAPACITY BECAUSE THEY HAVE TO DO THEIR OWN, YOU KNOW, UM, SUBMITTAL TO TCQ TO PROVE, TO SHOW THAT THEY HAVE, YOU KNOW, CONTRACT WATER TO, TO BE ABLE TO BUY, TO RESET. SO, UM, SO THAT'S, THAT'S HOW THOSE NUMBERS ARE CALCULATED. THEN THAT GIVES YOU A TOTAL FOR THE CITY OF BAYTOWN. THEN BAWA HAS SEPARATE CUSTOMERS AND, UH, THOSE ARE LISTED IN THE, THE, THE NEXT ROW. AND THEN YOU HAVE THE TOTAL CAPACITY, UH, THAT'S THE CONTRACT CAPACITY REQUIREMENT, UH, IN THE FINAL ROW. AND THEN WE DO A, JUST A BALANCE OF TAKING THE FIRST NUMBER MINUS THE LAST NUMBER. SO THAT'S OUR BALANCE. UH, PREVIOUSLY WE HAD SHOWN, YOU KNOW, POSITIVE NUMBERS ALL THE WAY TO 2028, AND THAT'S WHAT WE WERE BASING, YOU KNOW, OUR SCHEDULE LINED UP PRETTY NICELY WITH, UM, WITH OUR CAPACITY, UH, ASSUMPTIONS. HOWEVER, UM, GOING THROUGH IN THE LAST WEEK, WE NOTICED A, ONE OF THE NUMBERS HAD BEEN INPUT INCORRECTLY IS ONE THING. UM, SO WHEN LAKE MUD, WHICH WAS ONE OF THE CUSTOMERS OF THE CITY, UM, THEY HAD NOT BEEN USING HISTORICALLY, HAD NOT BEEN USING NEARLY ANY OF THE WATER THAT THEY'RE CONTRACTED FOR. SO, UM, IT HAS BEEN OUR POLICY TO TRY TO REDUCE THESE CONTRACTS FOR CUSTOMERS WHO ARE NOT USING THEIR CAPACITY. UH, AND WE'VE BEEN SUCCESSFUL IN DOING THAT IN SOME CASES, UH, IN THIS CASE, WE MADE AN ASSUMPTION THAT WE REDUCE IT TO A CERTAIN LEVEL. UH, AND THEN THEY CAME BACK AND GAVE US AN A CR THAT SHOWED THAT THEY NEEDED A HIGHER LEVEL. AND THERE'S ABOUT A 0.3 MGD DIFFERENCE IN OUR ASSUMPTION AND WHAT THEY PRESENTED IN THEIR A CR. SO WE NEEDED TO PUT THE A CR NUMBER INTO THEIR CONTRACT. UH, IT, IT IS IN THEIR CONTRACT, BUT IS NOT, IT WAS NOT REFLECTED IN OUR, UH, ASSUMPTIONS. UH, SO IT WAS OFF BY 0.3 MGD. UH, AND THEN RECENTLY WE HAD A NEW DEVELOPMENT COME IN WITH, UH, FRESHWATER SUPPLY DISTRICT ONE A AND THEY, THEY REQUESTED AN INCREASE IN THEIR CONTRACT BY POINT, UH, 1 3 7 GAL, UH, MGD. SO THAT WAS, YOU KNOW, ADDITIONAL CAPACITY. WE HAD TO BASICALLY GIVE AWAY THAT WE HAD NOT, YOU KNOW, FORESEEN PREVIOUSLY. SO IF YOU ADD THOSE TWO, UM, UH, ITEMS TOGETHER, IT'S, YOU KNOW, CLOSE TO HALF AN MGD AND YOU CAN SEE BY THE CHART THAT'S, UH, WHEN, WHEN YOU'RE 2027, THAT'S ABOUT THE AMOUNT THAT WE WERE OFF. SO, UM, THOSE TWO THINGS COMBINED TO REALLY, UM, MAKE OUR TIMELINE MUCH MORE CRITICAL THAN WHAT IT WAS, YOU KNOW, PREVIOUSLY BEING IN 2028. WHAT'S THE EFFECT OF THIS? UM, SO IF WE GET TO, YOU KNOW, 20 26, 20 27, AND THESE PROJECTIONS HAVE PLAYED OUT AND YOU KNOW, ON PAPER WE'RE OUT OF, UH, CAPACITY, THAT MEANS WE MIGHT HAVE TO TELL A NEW DEVELOPMENT THAT, WELL, YOU NEED TO PROBABLY WAIT A LITTLE WHILE UNTIL WE GET THE PLAN ONLINE. YOU KNOW, THAT'S NOT SOMETHING THAT WE'VE HAD TO DO, UH, YOU KNOW, IN RECENT YEARS. AND THAT'S, YOU KNOW, NOT SOMETHING WE DON'T WANT TO HOLD DEVELOPMENT, YOU KNOW, THAT THAT'S NOT THE BUSINESS WE'RE IN. AND THAT'S, UM, WE WANT TO BE A DEVELOPMENT FRIENDLY, UM, YOU KNOW, UH, CITY AND, YOU KNOW, AUTHORITY HERE. SO, UM, BUT THESE THINGS ARE COMBINING AND, YOU KNOW, THE, THE, THE BIG THING THAT TOOK THE CAPACITY WAS, YOU KNOW, THE NIAGARA WATER BOTTLING PLANT CAME IN AND THEY TOOK ALMOST, YOU KNOW, UM, 3M GD FROM US. SO THAT WAS SOMETHING THAT CAME ON RIGHT AFTER THE, THE NEW WATER PLANT OPENED AND REALLY, YOU KNOW, PUSH FORWARD THE NEED TO EXPAND THE PLANT. SO I'M, I'M JUST, YOU KNOW, KIND OF GETTING TO THE POINT THAT, UH, THINGS ARE, THE TIMELINE ON THE PLANT IS MORE CRITICAL THAN, YOU KNOW, WHAT WE BELIEVED BEFORE. SO [00:20:01] WHEN YOU LOOK AT THE COMPARISON, MAY I ASK A QUICK QUESTION ON THE PREVIOUS? SO, UM, I GUESS KIND OF GOING ALONG WITH YOUR POINT TOO, IF YOU LOOK AT 2022 AND 2023, IT LOOKS LIKE THERE IS A LARGER, UM, INCREASE IN CAPACITY SO THAT, THAT THAT INCREASE IS DUE TO, UH, SO NIAGARA CAME IN AND ASKED FOR MORE, UM, CAPACITY. THEY WERE DOING AN EXPANSION TO THEIR PLANT. OKAY. SO THAT'S THE COD CONTRACT REQUIREMENT. SO THAT POINT 0.3, THEY, WE HAD ALREADY PROMISED THEM A 1.3 MGD EXPANSION, BUT WE DO NOT EXPECT THAT MOVING FORWARD. THEY, SO THEY HAVE NOT TOLD US OF ANY FUTURE EXPANSIONS. OKAY. SO, UM, OKAY. AND, AND AT THIS POINT, YOU KNOW, WE, WE WOULD HAVE TO DELAY THAT UNTIL WE GOT THE NEW PLAN ONLINE. YEAH. AND THEN WHAT ABOUT THE CITY OF BAYTOWN A CR REQUIREMENT THAT, THAT INCREASE ALSO LOOKS GREATER THAN, YOU KNOW, THE PROJECTIONS MOVING FORWARD? IS THERE ANY REASON TO THINK? UM, SO I THINK THAT'S STILL AT ABOUT 3%, IS THAT IS A 1.3%, UH, PROJECTION. AND LIKE I SAY, THE, THE, THE ACTUAL NUMBERS, UM, ARE FAIRLY IN LINE WITH THOSE. WE'RE NOT SEEING HUGE JUMPS. OKAY. SO THIS IS ALL NICE WITH CAPACITY, BUT WHERE DOES THE RUBBER HIT THE ROAD? WHAT ARE WE AT? ABOUT 20 MILLION BARRELS A DAY, GALLONS A DAY, 20 MILLION GALLONS USAGE. SO, UH, SO AVERAGE, OUR AVERAGE, UH, PRODUCTION, NO, NO, NO. WHAT ARE WE USING TODAY? THAT'S, THAT'S WHAT, IN 20 23, 20 24, IT SAYS OUR CAPACITY. SO AS FAR AS HOW MUCH ARE WE DELIVERING A DAY DELIVERS ON AVERAGE ABOUT 14 MGD MILLION GALLONS PER DAY. SO LIKE HALF, YEAH, SO NOT EVEN HALF, REALLY. CORRECT. UH, AND, YOU KNOW, DURING THE FREEZE, WE, THAT'S WHEN WE SEE OUR PEAK USAGES. AND SO, UM, THIS, THIS PAST FREEZE, YOU KNOW, THIS FREEZE, UM, WE DID SEE HIGH DEMANDS. UM, IT WENT UP TO, UH, I THINK TOTAL LAST NIGHT, YOU KNOW, LAST EVENING WAS ABOUT 27 MGD, SO THAT WE REALLY DO SEE MUCH HIGHER DEMANDS DURING FREEZING CERTAIN PEAKS. SO THE FREEZE OF A YEAR AGO, WE WERE PROBABLY OVER 30 MGD. AND HOW MANY, HOW MANY, BECAUSE WE HAD A LOT MORE. HOW MUCH DO WE HAVE IN STORAGE? SAY AGAIN? HOW MUCH WATER DO WE HAVE IN STORAGE OF THE TANKS UP? UH, SO WE HAVE BOTH GROUND STORAGE TANKS AND ELEVATED STORAGE ELEVATED. SO ELEVATED, WE'VE GOT ABOUT FOUR, 7.4. SO WE'VE GOT NINE TANKS, AND SOME OF 'EM ARE HALF A MILLION GALLONS. SOME ARE A MILLION. OKAY. UH, NOW WE DO HAVE GROUND STORAGE TANKS AT BAWA. AND THAT HAS WHAT THIR IT'S 14.5, 1.6, YEAH, 14.5 AT THE MAIN PLANT AND ONE, 1.5, 1.6 AT THE EAST PLANT. BUT, YOU KNOW, IN, UH, URI ALL THAT WAS WIPED OUT BECAUSE, YOU KNOW, WE COULDN'T, WELL, WELL, YOU COULDN'T, THE PLANT FROZE, COULDN'T PRODUCE ANY, AND, AND WE COULDN'T PRODUCE. UM, BUT LIKE I SAY, LAST YEAR WE HAD, YOU KNOW, HIGH DEMAND, THERE WAS A LOT OF LEAKS IN THE SYSTEM, UH, BECAUSE THOSE, OVER CHRISTMAS, AND A LOT OF PEOPLE, YOU KNOW, THEY, THEY DIDN'T PREPARE BEF WHEN THEY WENT AWAY FROM CHRISTMAS AND THERE WAS A LOT OF LEAKS. SO WE HAD DEMAND, I, I KNOW IT WAS OVER 30 AND, UM, WE WERE ABLE TO KEEP UP. I MEAN, JUST, JUST ON THE MARGIN, WE'RE JUST BARELY ABLE TO KEEP UP. UM, THIS, THIS FREEZE THIS YEAR, UH, WE HIT A LITTLE OVER 27 MGD AND THERE WAS NO ISSUES BECAUSE BOTH, BOTH PLANTS WERE RUNNING AND WE WERE ABLE TO KEEP UP. FINE. DOES THAT ANSWER? I HAVE MORE QUESTIONS ABOUT THE FREEZE, SO I'LL GET TO IT LATER THOUGH. OKAY. OKAY. ALRIGHT. UM, SO IN TAKING THAT, UM, YOU KNOW, TIMELINE IS, IS AN IMPORTANT CONSIDERATION FOR US. UM, SO PREVIOUS TO THAT, WE WERE, WE THOUGHT IT'D BE USEFUL TO STEP BACK AND SAY, WELL, IF TIME TIMING IS NOT SUCH A CRITICAL ISSUE, YOU KNOW, WOULD A TRADITIONAL APPROACH OF DESIGN BID BUILD MAKE SENSE? UH, WE LOOKED AT THAT AND UM, THERE WAS, THERE WAS POTENTIAL COST SAVINGS, BUT THERE'S MORE RISK WITH THAT APPROACH BECAUSE, UM, IT, YOU LOCK IN YOUR PRICE LATER IN TIME. AND, UH, THE FARTHER OUT IN TIME WE GO, THE MORE UNCERTAINTY WE HAVE ABOUT THE CONSTRUCTION, YOU KNOW, MARKET AT THAT TIME. AND THERE'S A LOT OF, UM, UNCERTAINTY ABOUT WHAT KIND OF CONTRACTORS YOU WOULD GET, UH, INTERESTED IN THE PROJECT. SO YOU DON'T KNOW IF YOU WOULD GET [00:25:01] A GOOD CONTRACTOR, YOU DON'T KNOW, YOU KNOW, IF YOU GET ONLY ONE, ONE BIDDER, THEN YOUR BID'S GONNA BE A LOT HIGHER. UM, SO THERE'S JUST A LOT OF UNCERTAINTIES WITH THE DESIGN BID BUILD. UM, BUT GIVEN THE TIMING CONSTRAINTS, I REALLY FEEL LIKE WE SHOULD JUST FOCUS ON THE, UH, PROGRESSIVE DESIGN BUILD. IT HAS A SHORTER TIMELINE AND IT HAS GREATER CERTAINTY, UM, OF, OF THE MARKET PRICES NOW. UM, THE PRICES YOU'LL SEE HERE ARE, ARE DIFFERENT FROM THE ONES YOU HAD IN YOUR PRESENTATION. THESE, UH, HAVE GONE THROUGH, UH, WE WERE WORKING WITH A FINANCIAL ANALYST AND THE FINANCIAL ANALYST, UH, PUT IN THE COST OF THE FUNDING FOR BOTH MARKET BONDS AND USING STATE FUNDS THROUGH THE TEXAS WATER DEVELOPMENT BOARD. UH, THOSE COSTS WERE INCORPORATED AND THEN HE, UH, BROUGHT THAT BACK TO A PRESENT VALUE COST. SO THE NUMBER YOU SEE IN BOLD THERE IS, YOU KNOW, IF WE WERE GOING OUT TODAY AND HAVING TO SPEND ALL THE MONEY TODAY, THAT THAT'S WHAT EACH OF THE OPTIONS WE WOULD EXPECT TO COST. UM, SO YOU CAN SEE OF THE TWO, UM, YOU KNOW, PROGRESSIVE DESIGN BUILD USING THE STATE FUNDS, UH, HAS A LOWER COST AND, YOU KNOW, NOT SIGNIFICANT DIFFERENCE IN THE TIMELINE. SO THAT'S THE ONE THAT WE RECOMMEND, UH, MOVING FORWARD WITH. WE, THAT'S THE ONE WE ARE KIND OF IN, YOU KNOW, IN PROGRESS WITH CURRENTLY. UH, SO WE'RE RECOMMENDING THAT WE MAINTAIN THAT COURSE OF ACTION. UM, ANY QUESTIONS? SO, SO ROUGHLY 3 MILLION FOR A FIVE MONTH PICKUP. 'CAUSE THAT'S ALL YOU, YOU ONLY GAINED IN NOVEMBER TO APRIL, RIGHT? YES. FOR, FOR FIVE, FOR 3 MILLION. FRANK, IF I MAY. AND, AND LIKE I SAY, WITH THE DESIGN, BUILD, BUILD, BID BUILD, THERE'S, THERE'S JUST MORE UNCERTAINTY. SO THOSE, WHAT, WHAT MY, UH, YOU KNOW, HESITATION WITH THAT METHOD IS, IS KNOWING THAT, YOU KNOW, UM, YOU DON'T KNOW THE CONTRACTORS AT THE TIME, WHEREAS RIGHT NOW WE KNOW WE HAVE TWO GOOD CONTRACTORS WHO ARE IN LINE AND READY TO, YOU KNOW, BID ON THIS WORK. AND LET ME ADD TO THAT JUST A LITTLE BIT. UM, IN LOOKING AT THE ESCALATION COSTS THAT, YOU KNOW, THAT ALL MUNICIPALITIES IN THE AREA HAVE SEEN OVER THE PAST FEW YEARS, YOU KNOW, THAT 47 TO BASICALLY $50 MILLION ESTIMATE IS PROBABLY PRETTY CONSERVATIVE. IF WE SEE ESCALATION INFLATION, UM, IN LINE WITH WHAT WE'VE SEEN IN THE PAST FEW YEARS, I COULD EASILY SEE THAT NUMBER BEING 55 MILLION, UH, BY THE TIME WE ACTUALLY GO OUT FOR BID. SO IT, AS, AS HE'S SAYING, THERE'S, THERE'S MORE UNCERTAINTY WITH THAT OPTION AND, YOU KNOW, I, I DON'T FEEL COMFORTABLE RECOMMENDING IT JUST BECAUSE OF THE UNCERTAINTY. OKAY. UM, SO, UH, RECOMMENDATION IS, UH, JUST WHAT I STATED, THAT WE CONTINUE WITH THE, UH, PROGRESSIVE DESIGN BUILD, UM, BECAUSE SCHEDULE IS CRITICAL TO THE WATER NEEDS, UM, OF BAYTOWN AND, UH, THE TEXAS WATER DEVELOPMENT BOARD PROVIDES THE, UM, CHEAPEST COST ALTERNATIVE FOR THE FUNDING. SO WE RECOMMEND PURSUING THAT. AND THAT THAT IS ALL TO THE PRESENTATION. I'LL TAKE ANY OTHER ADDITIONAL QUESTIONS. ALRIGHT. UM, DO WE NEED TO MAKE ANY, UH, YOU, YOU'RE POSING THIS AS, A'S NOT AN ACTION ITEM. OKAY. IT'S JUST SO WE NEVER VOTED ON IT THE FIRST TIME. RIGHT. UM, ACTUALLY YOU DID VOTE TO VOTED, AUTHORIZE THE ALTERNATIVE, UH, PROJECT DELIVERY METHOD. YEAH, I DON'T THINK WE DID. I THINK HE SAID THIS IS WHAT WE'RE GOING WITH. NO, BUT UH, YOU DID, IT WAS BEFORE YOUR TIME, BUT I THINK I WAS HERE WHEN THE BOARD VOTED TO AUTHORIZE, UM, THAT PROJECT DELIVERY METHOD ALTERNATE. I THINK THE ALTERNATE DELIVERY WAS, UH, WE HAD TO BRING THAT TO COUNCIL AS WELL. YEAH, I THINK YOU'RE RIGHT. BUT WE DID, WE YOU PRESENTED IT. WE APPROVED IT. WE DIDN'T RIGHT. WE WEREN'T GIVEN AN OPTION, IS WHAT I'M SAYING. OKAY. TELL, TELL ME. UM, I'M IGNORANT, UH, THE TWDB OF FUNDS, WHAT IS THAT? WHERE DO THE, WHERE DO THOSE FUNDS COME FROM? SO IT'S, UH, THE PROGRAM, THEY HAVE DIFFERENT PROGRAM, IT'S THE WATER DEVELOPMENT BOARD IS A, I DON'T, THEY'RE A [00:30:01] STATE AGENCY. I, I THINK THEY ARE. UM, YEAH. SO THEY ARE A STATE AGENCY AND UM, THEY OFFER FUNDING FOR WATER PROJECTS. UM, THEY HAVE DIFFERENT PROGRAMS. SOME OF THEIR PROGRAMS USE FEDERAL DOLLARS AND YOU HAVE TO COMPLY WITH FEDERAL, UH, REGULATIONS. SOME OF THEM ARE STATE DOLLARS AND YOU HAVE TO COMPLY WITH DIFFERENT REGULATIONS. THE ONE WE WOULD GO AFTER IS CALLED THE SWIFT, UH, IT'S STATE WATER INFRASTRUCTURE FUNDS OF TEXAS FUNDS OF TEXAS. UM, AND SO IT IS NOT, UH, FEDERAL, BUT UM, WE DO HAVE TO DO THINGS LIKE, UH, GET ENVIRONMENTAL CLEARANCE ON THE PROJECT AND WE HAVE TO BE PART OF THE STATE WATER PLAN. SO, UH, WE WILL BE, UM, DOING A CONTRACT WITH A CONSULTANT TO GET US ON THAT WATER PLAN. 'CAUSE THAT IS A REQUIREMENT TO, UH, RECEIVING THAT FUNDING AND THOSE FUNDS THAT THE STATE HAS COMES FROM OUR TAX DOLLARS, I ASSUME. YES. UH, SO WHAT THE, IT, IT IS A LOAN, HOWEVER YOU GET, UH, A LOWER INTEREST RATE SURE. ON THE LOAN. UH, AND I THINK CURRENTLY IT'S LIKE 1.25% OFF OF THE MARKET INTEREST RATE. AND SO THAT, THAT WENT INTO, UM, THE FINANCIAL ANALYST CALCULATION OF THESE FIRST TWO, UM, OPTIONS. UH, AND HE TRIED TO ALSO INCORPORATE SOME OF THE ADDITIONAL COSTS YOU HAVE BECAUSE YOU HAVE TO DO, YOU HAVE TO COMPLY WITH, YOU KNOW, YOUR, UM, YOUR DISADVANTAGED BUSINESS. UH, I THINK, UM, YOU DON'T REQUIRE, OR SURE, SURE. UH, LINDSEY KNOWS MORE ABOUT THE PROGRAM SO SHE CAN, SO SPECIFICALLY WHERE SWIFT CAME FROM, IF YOU MAY RECALL, A FEW YEARS AGO THERE WAS PROPOSITION SIX THAT MOVED MONEY OUT OF THE RAINY DAY FUND FOR WHAT OUR INFRASTRUCTURE PROJECTS. THIS PROGRAM IS FROM THAT FUNDING, UM, THAT EVERYBODY VOTED FOR ON PROPOSITION SIX. AND THEN IT'S SUSTAINED BY PROVIDING THESE LOW INTEREST LOANS AND THEN THE, THE STATE MAKING MONEY OFF ON THOSE LOANS AND THEN CONTINUING TO GIVE OUT MORE. SO IT'S, IT'S, IT IS YOUR TAX DOLLARS, BUT IT'S MORE FROM THE, THE RAINY DAY FUNDS. WHAT, WHAT ARE THE REQUIREMENTS? WHAT ARE THE ADDITIONAL COSTS? YEAH. SO, SO THE ADDITIONAL, UM, REQUIREMENTS, UM, YOU DON'T ACTUALLY HAVE TO, TO DO, UM, DISADVANTAGED, THERE'S NOT A GOAL. THEY OF COURSE ENCOURAGE, YOU KNOW, YOU TO DO IT. SO YOU DO HAVE TO DO REPORTING IF YOU DO USE, UH, DISADVANTAGED COMPANIES. UM, BUT IT'S NOT A REQUIREMENT. AS FRANK SAID, YOU DO HAVE TO DO AN ENVIRONMENTAL CLEARANCE. UM, THAT'S IMPORTANT. YOU HAVE TO DO THAT PRIOR TO CONSTRUCTION. UM, AND THEN YOU HAVE TO DO AMERICAN, UM, IRON AND STEEL AS, AS WELL. SO THOSE ARE THE BIG THINGS. LIKE YOU SAID, IT'S BECAUSE IT'S STATE VERSUS FEDERAL, THERE'S NOT AS MANY REQUIREMENTS TO USE THE SWIFT, WHICH IS ANOTHER REASON WE WOULD RECOMMEND THIS PROGRAM OVER SOME OF THEIR OTHER FEDERAL PROGRAMS, WHICH, UM, JUST HAS A LOT MORE, YOU KNOW, TO IT THAN THAT. SO, SO FINANCIALLY THE STATE OF TEXAS IS SUPPORTING CITIES LIKE US TO DEVELOP OUR WATER CAPACITY FOR ECONOMIC GROWTH. YES. YEAH. THAT, THAT'S EXACTLY WHAT PROPOSITION SIX WAS FOR. WAS, LIKE I SAID, WAS FOR WHAT OUR INFRASTRUCTURE PROJECTS, BOTH FOR GROWTH BUT ALSO FOR CITIES THAT, UM, MAY NEED TO REPAIR, YOU KNOW, OR UPGRADE, YOU KNOW, THEIR SYSTEM AS WELL. 'CAUSE THEY'VE NOT BEEN ABLE TO KEEP UP. IT'S, IT ALLOWS FOR THAT LOW INTEREST THAT HE SAID AT MOST, YOU'RE LOOKING AT A 25% DECREASE FROM WHAT TWDB SELL THEIRS BOND FOR, WHICH NATURALLY THEY HAVE A VERY GOOD CREDIT RATING, SO THEY GET A PRETTY DECENT INTEREST RATE AND THEN YOU'RE GETTING LOWER THAN THAT. GOTCHA. MAKES, MAKES PERFECT SENSE. THANK YOU. MM-HMM . AND SO ARE WE ALREADY STARTING THE PROCESS TO APPLY TO BE PART OF THE TEXAS WATER PLAN? SO THAT WE HAVE OKAY. OR CAN YOU, YOU CAN'T DO IT CONCURRENTLY ALREADY. SO WE DID, UM, GO TO A BOARD MEETING. WE GOT APPROVED TO SUBMIT ON THE, UH, PLAN. WE, UH, THERE'S A REQUIREMENT THAT YOU HIRE THE BOARD DEVELOPMENT BOARD'S, UM, ENGINEER TO PREPARE THE, THE AMENDMENT. UM, WE ARE NEGOTIATING CONTRACT WITH THAT ENGINEER RIGHT NOW TO, UH, PREPARE IT. IT LOOKS LIKE IT'LL BE LESS THAN 50,000. SO YOU PROBABLY WON'T SEE THAT AS THE BOARD. BUT, UH, WE WILL EXECUTE THAT AND THEN, UM, HAVE THE CONSULTANT PREPARE THE AMENDMENT TO GET US ON THE PLAN. UM, THE PROBLEM COMES IN IS THAT THEY ONLY UPDATE THE PLAN ONCE A YEAR AND THEN YOU, UH, SO I THINK IT'S IN DECEMBER. SO, AND IT TAKES ABOUT SIX MONTHS TO PREPARE THE AMENDMENT. SO WE WILL BE ON THE NEXT, UM, THE NEXT, UM, AS LONG AS WE SUBMIT IN THE FIRST HALF OF THE YEAR, WE SHOULD BE ON IN DECEMBER. [00:35:01] RIGHT. RIGHT. AND THEN YOU CAN APPLY AND THEN YOU CAN APPLY FOR THE FUNDING. OKAY. RIGHT. THAT'S ALL I HAVE. SO GO AHEAD. ALRIGHT, SO LET ME GO THROUGH MY LIST. SO THIS PROGRESSIVE DESIGN, YOU KNOW, WE'VE GOT THIS LAWSUIT STUFF GOING ON ABOUT THESE CHEMICALS. I DON'T THINK THERE'S ANY KNOWN WAYS TO FILTER OUT THOSE, BUT IF THERE BECOMES KNOWN A WAY TO DO IT, WILL THIS ONE WAY OF PROGRESSIVE DESIGN WILL IT ALLOW THEM TO MODIFY AND, AND CHANGE THAT BASED ON NOW AND COMPLETION DATE? SO IT'S, UH, THEY'RE REALLY TWO SEPARATE ISSUES. SO THE EXPANSION IS, UM, IS INTENDED TO USE THE SAME TECHNOLOGY WE HAVE AT THE PLANT RIGHT NOW WITH A FEW TWEAKS. WITH A FEW TWEAKS, RIGHT. UM, IF SOMETHING COMES OUT. SO WE DON'T HAVE DIRECTION FROM THE EPA OR TCEQ ON HOW WE NEED TO TEST FOR PFAS OR, UM, WHAT LEVELS WE'RE REQUIRED TO MEET. UM, SO WE, WE JUST DON'T HAVE THAT DIRECTION RIGHT NOW. UH, I THINK PART OF THE LAWSUIT, IF WE GET FUNDING FROM THAT, WE CAN USE THAT TO MAKE UPGRADES TO OUR PLANT WHENEVER, IF WE HAVE TO DO ANYTHING, YOU KNOW, TO TREAT THE WATER MORE EXTENSIVELY. NOW, WHEN WE MET A COUPLE MONTHS AGO, THAT, THAT WOULD HAVE TO BE A RETROFIT, RIGHT? IT WOULD NOT BE INCLUDED IN THIS PROJECT. A COUPLE MONTHS AGO, THE, THE, THIS LAWYER GROUP WAS GONNA COME AND TEST OUR WATER TO TELL US IF WE'VE HAD A PROBLEM THAT PART, THAT PART OF THIS, THAT'S PART OF THIS, UM, LAWSUIT AS FAR AND I GUESS THAT HADN'T HAPPENED YET. NO, SIR. AND WHEN DO WE EXPECT IT? WE HAVE TO GET APPROVAL FROM THE ATTORNEY GENERAL'S OFFICE BEFORE WE CAN BEGIN THAT PROCESS. SO THE RESOLUTION TODAY IS TO GIVE US AUTHORITY TO ASK FOR THAT PERMISSION AS WELL AS TO, UH, ENTER INTO AGREEMENTS WITH THE LAW FIRMS IF, UH, THE AG GRANTS US THAT AUTHORITY. AND I MIGHT ADD, I DID, UH, LOOK UP THE LIST OF DEFENDANTS. THERE ARE ABOUT 20 OF THEM CURRENTLY. TWO HAVE, UH, AGREED TO SETTLE AND THAT WOULD BE 3M IN DUPONT. THANK YOU. OKAY. OKAY. SO ONE LAST THING. CAN YOU, CAN I GET YOU TO TELL US ABOUT HOW YOU BELIEVE THE, THE WATER PLANTS DID DURING THE FREEZE COMPARED TO LAST YEAR? UM, SO I DON'T KNOW IF I CAN ADDRESS THAT DURING THIS ITEM. I THINK WE'RE GONNA ADDRESS IT IN THE MANAGER'S REPORT. OKAY. ALRIGHT. I COULD WAIT A MINUTE. RIGHT. I JUST KNEW BRENDA'S READY TO HIT THAT GAVEL AND I'LL, I'LL, I'LL STAY HERE TO, TO ADD ANYTHING ABOUT THAT. ALRIGHT. DOES ANYONE ELSE HAVE ANYTHING REGARDING THE EAST EXPANSION PROJECT? ALRIGHT, THANK YOU. UM, THAT DOES BRING US TO THE MANAGER'S REPORT. [a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 21, 2024, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ] ALL RIGHTY. THANK YOU MADAM CHAIR. UM, UH, FIRST AND FOREMOST, UM, OUR NEXT MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 21ST AT FOUR 30, UM, HERE IN THE COUNCIL CHAMBERS OF CITY HALL. UM, AND I WOULD LIKE TO TAKE THIS OPPORTUNITY TO GIVE, YOU KNOW, A, A HUGE KUDOS AND THANKS, UH, TO THE PUBLIC WORK STAFF DURING THE FREEZE. UM, FOR THE MOST PART, IT WAS RELATIVELY A NON-EVENT. UH, WE DID SEE, UM, PEAK, UH, UH, PEAK DEMAND AT ABOUT 27 MGD. UM, WE WERE ABLE TO MANAGE THAT. WE HAD, UM, ONE MINOR MAINTENANCE ISSUE, UM, ACTUALLY AT BOTH PLANTS. UM, THAT WAS QUICKLY ADDRESSED. UH, WE WERE BACK UP AND RUNNING IN A VERY SHORT AMOUNT OF TIME AS WE SAW THAT DEMAND INCREASE PUBLIC WORKS. UH, STAFF DID GO OUT AND SURVEY THE AREAS LOOKING FOR LARGE WATER LEAKS, THINGS LIKE THAT, THAT WOULD ARTIFICIALLY INFLATE THAT. UH, THERE WERE A FEW RESIDENTIAL, UM, LEAKS HERE AND THERE. AND I THINK, UM, IT MIGHT HAVE BEEN ONE, UH, WATER LINE LEAK THAT, UH, I WAS TOLD THERE WAS FIVE, UM, ON THE CITY, FIVE ON THE CITY SIDE. OKAY. RIGHT. THAT WERE, UM, ADDRESSED. MOST OF THEM WERE CUSTOMER SIDE ISSUES. RIGHT. SO, YOU KNOW, WITH ALL THAT IN MIND, UM, YOU KNOW, I THINK THAT, UH, YOU KNOW, THE STAFF DID A REALLY GOOD JOB. I THINK THAT, YOU KNOW, THERE WAS THE PREPARATION IN ADVANCE, THERE WAS THE, UM, IMPROVEMENTS THAT WE'VE MADE PREVIOUSLY. UM, YOU KNOW, LEARNING FROM WHAT HAPPENED. UM, YOU KNOW, I I WAS IN ANOTHER CITY AT THE TIME OF, UH, YURI, BUT IT WAS NOT FUN. [00:40:01] UM, AND SO IT WAS KIND OF A BREATH OF FRESH AIR TO REALLY SEE THIS INSTANCE, ALTHOUGH NOT AS LONG AND, UH, DRAWN OUT AS YURI, UM, REALLY BE A NON-EVENT. BUT I'LL BE HAPPY TO ANSWER ANY QUESTIONS. WELL, YOU MENTIONED MAINTENANCE EVENTS AT EACH, WERE YOU SAYING THERE WERE JUST, THERE WAS A MAINTENANCE EVENT AT EACH, OR WAS A SIMILAR EVENT? OH, DIFFERENT, UM, OH, OKAY. ONE INVOLVED, UM, A VALVE AND THEN, UM, UH, I THINK THAT WAS AT THE, UH, THE EAST PLANT. THEY HAD A VALVE ISSUE. AND THEN, UM, AT THE MAIN PLANT THERE WAS A CLOG IN, UM, THE CHLORINE INJECTOR AND THAT JUST HAD TO BE CLEANED OUT MM-HMM . SO RELATIVELY MINOR ITEMS, THINGS THAT COULD HAPPEN ON ANY DAY. BUT, UM, THE, THE TEAM WAS ABLE TO ADDRESS THOSE AND KIND OF KEEP US MOVING. SO THERE, THERE WERE TWO THINGS THAT WE HAD ISSUES WITH LAST YEAR AT THE, AT THE OLD PLANT ONE, THERE WAS SOME, A COUPLE, UH, TANKS OF CHEMICALS THAT WERE EXPOSED TO THE ELEMENTS THAT FROZE UP. RIGHT. AND I THINK THE REMEDY WAS YOU WERE GONNA BUILD A BUILDING OVER THAT, UM, THIS LAST YEAR, SO THAT, THAT WAS AN ISSUE DURING YURI. YEAH. UM, AND WHAT WE DID IS WE PURCHASED SOME, UM, KEFLER BLANKETS BASICALLY THAT WERE ACTUALLY FITTED FOR THE TANKS. AND, UM, WE, I THINK IT WAS A LOCAL BAYTOWN COMPANY. WERE THEY HE BY ANY CHANCE? NO, BUT HUH, THEY'RE, UH, INSULATED, UH, BLANKETS. RIGHT. THEY'RE, THEY'RE INSULATED COVERINGS, UH, FOR THAT'S, YOU KNOW, FIT TO THE TANK. AND UH, SO THEY WORK VERY WELL. WE HAD THOSE AT THE, YOU KNOW, LAST YEAR'S FREEZE. UM, AND THAT, THAT HELPED US A GREAT DEAL BECAUSE INSULATION WILL NOT STOP SOMETHING FROM FREEZING IF IT'S COLD ENOUGH, LONG ENOUGH. SURE. RIGHT, RIGHT. IT'S JUST, IT JUST SLOWS IT DOWN. UM, THERE WAS ALSO PIPES RUNNING UNDERGROUND, YOU KNOW, UNDER THOSE GRATES MM-HMM . YEP. I REMEMBER THEY HAD STUFFED FULL OF HAY. WE DID. YEP. UH, DURING YURI, WE DID THAT AGAIN. DID WE DO THAT AGAIN? YEAH, NOT, AND LUCKILY IT WASN'T THAT BAD OF EVENT. WE DID LOSE POWER. SO, AND, AND A CHANGE THAT WE'VE MADE IS THAT WE GO ON GENERATOR POWER, UH, PRIOR TO THE EVENT AND WE LEAVE THE PLANT RUNNING ON GENERATOR THE ENTIRE TIME. UH, SO WE DID THAT THIS TIME AND YOU KNOW, AND THAT THAT ACTUALLY HELPS OUT THE ELECTRIC COMPANY, SO WE'RE NOT, YOU KNOW, PULLING DEMAND FROM THE SYSTEM AND, UM, SO IT, AND WE DON'T HAVE THE SPIKE. SO EVEN PRIOR TO, UM, THE FREEZE WE HAD, UH, YOU KNOW, IF THE POWER GOES OFF FOR A SECOND, COME BACK ON, GOES OFF ON THAT REALLY MESSES UP OUR EQUIPMENT. AND SO, UH, WE WERE HAVING THOSE ISSUES PRIOR TO THE FREEZE AND WE, YOU KNOW, WE JUST WENT ON GENERATOR POWER FOR TWO DAYS AND, YOU KNOW, THAT THAT RESOLVED A LOT OF THE ISSUES. AND WE DID BUY THOSE BLANKETS FROM THE COMPANY OVER ON NORTH MAIN. WE, YES. FANTASTIC. YEAH. AND THEY, THEY WORKED GREAT. THEY'RE REALLY GOOD. UM, I THINK I, I HAD SHOWN SOME PICTURES DURING THE URI, UH, OR DURING ONE OF THE PRESENTATIONS. I THINK I HAD SHOWN SOME PICTURES, BUT OKAY. FANTASTIC. I APPRECIATE US DOING THAT AGAIN BY LOCAL. YEAH, YEAH. FANTASTIC. YEAH, IT WAS, IT'S A GOOD PRODUCT. UH, WE'RE VERY HAPPY WITH IT. VERY GOOD. YEP. AND I'LL ADD TO THAT IF IT'S, UM, OKAY. UM, FRANK WAS MENTIONING THE FACT THAT, UM, WE WERE RUNNING OFF OF GENERATORS. YOU KNOW, WE DO HAVE, UM, AN AGREEMENT WITH OUR RETAIL ELECTRICAL SUPPLY COMPANY THAT, UM, YOU KNOW, WE WILL, WE WILL BE ON STANDBY IN INSTANCES OF KIND OF HIGH DEMAND TO THE GRID, TO THE GRID TO BE ABLE TO RUN OUR GENERATORS. AND, UH, WE ACTUALLY DO GET A REBATE BACK, UH, ON AN ANNUAL BASIS. SO, UM, WE JUST, UM, WENT THROUGH THAT PROCESS RECENTLY. I KNOW THAT WE'LL WE'LL BE LOOKING AT OUR, UH, RETAIL ELECTRIC SUPPLY CONTRACT AGAIN, BUT WE DO HAVE THAT SET UP, UM, UH, DEMAND RESPONSE TYPE PROGRAM. BUT, UM, WE'RE ACTUALLY GETTING SOME MONEY BACK FROM THAT, SO, AND TESTING OUR GENERATORS IN THE PROCESS, SO, ALRIGHT. THAT, THAT'S A GOOD PRODUCT TO HAVE. YEARS AGO I'VE WORKED RELIANT, WHATEVER MM-HMM . AND THERE WERE, THEY SOLD THAT PRODUCT FOR YEARS AND, AND YOU KNOW, WE NEVER HAD ANY PROBLEMS WITH IT. SO HOTELS WERE DOING IT AND THEN THEY RAN INTO SOME PROBLEMS AND THE HOTELS AFTER A DAY OR TWO OF NO POWER FIGURED OUT THAT WASN'T THE BEST PRODUCT AFTER HAVING THEIR POWER TURNED OFF. BUT, UM, THAT ISN'T A, A SMART THING TO DO IF WE HAVE OUR OWN GENERATION. ALRIGHT, THANK YOU. UM, I BELIEVE THAT THERE WAS A POLL SENT OUT REGARDING A POTENTIAL SPECIAL MEETING ON FEBRUARY THE SEVENTH. [00:45:02] I RECEIVED A, A TEXT QUESTION ABOUT THAT. ARE WE ANTICIPATING THAT MEETING? I, I DON'T KNOW ANYTHING ABOUT THAT. OKAY. I DON'T RECALL BUT, UM RIGHT. WELL THERESA'S COMING UP, SO MAYBE IT HAS SOMETHING TO DO WITH FINANCES. YES. UM, THAT MEETING, IT PROBABLY WAS A POLL FOR OUR AUDIT. WE HAVE TO DO OUR AUDIT BY A CERTAIN DEADLINE, SO IT'S PROBABLY THE POLLING TO SEE IF YOU GUYS COULD MEET TO UM, HAVE THEM PRESENT THE AUDIT. ALRIGHT, THANK YOU. YES, IT'S FEBRUARY 7TH AT 4:30 PM I RESPONDED. YES. AND I SAW SOME NODS SO YEAH, IT APPEARS WE WOULD HAVE A QUORUM IF THAT IS, IS NEEDED. ALRIGHT, THANK YOU. ALRIGHT. SO IS THAT AN IF, IF, IF WE'RE NEEDED OR IS THAT A FOR SURE MEETING? OH, THAT'S A FOR SURE. OH, BECAUSE WE HAVE TO PRESENT IT BY . ALRIGHT. OKAY. ALRIGHT, WELL THEN WE WILL SEE YOU ON FEBRUARY 7TH. THANK YOU. UM, IF THERE IS NO OTHER BUSINESS, UH, AND THERE IS NO OTHER BUSINESS ON THE AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN. SO MOVED. AYE. SECOND MOTION AND SECOND. ALL IN FAVOR? AYE. ALL RIGHT, SEE YOU. UH, FEBRUARY 7TH. THANK YOU. * 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.