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AREA WATER AUTHORITY TO ORDER, UM, AND ANNOUNCE THAT WE DO HAVE A QUORUM.
OUR FIRST ITEM OF BUSINESS TODAY WOULD BE CITIZENS' COMMENTS, BUT I UNDERSTAND THAT WE DO NOT HAVE ANY CITIZENS, UH, WISHING TO COMMENT.
[a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on May 9, 2024. ]
BUSINESS WILL BE THE MINUTES AND WE WILL CONSIDER APPROVING THE MINUTES FROM THE AUTHORITIES' REGULAR MEETING HELD ON MAY THE NINTH, 2024.DO I HAVE A MOTION? I'LL MAKE THAT MOTION.
YOU HAVE A SECOND? I'LL SECOND.
QUESTIONS OR DISCUSSION? HEARING NONE.
[a. Receive and discuss the Baytown Area Water Authority's Fiscal Year 2024-25 Proposed Budget.]
NEXT WE WILL RECEIVE AND DISCUSS THE AUTHOR'S FISCAL YEAR 20, 24, 25.DID YOU GET THE PICTURES? I'M HERE TO PROPOSE THE B FIVE 10 BUDGET FUND FIVE 10.
SO AS YOU CAN SEE, THE REVENUES, UH, HAVE, OH, THIS IS NOT THE WHOLE, THIS, THIS IS THE WHOLE ONE.
WE'RE, WE'RE NOT SEEING IT UP HERE.
WHERE HE'S MOVING IT AROUND, BUT IT LOOKS DIFFERENT THAN THE HANDOUT.
I THINK THE HANDOUT, I WANT TO SEE WHAT HE'S SEEING.
YEAH, BUT THIS IS THE NUMBER YOU MOVE.
I JUST, I HI IT FOR HE COULD DRIVE.
HOW DO I GET THIS REC? YEAH, THAT'S OLD NUMBER.
BUT IT WON'T BE ON, BUT IT WON'T BE ON THIS.
I, I CLICKED THIS AND THIS IS WHAT I EL ISSUES WITH ALL THIS.
YOU CAN GO TO THE NEW, NONE OF THESE ARE WORKING.
OURS ARE, AND THESE ARE WORKING.
IS THERE ANOTHER ONE THAT WORKS OVER THERE? YOU GUYS DON'T HOW, HOW DO YOURS? NO, YOURS DIDN'T WORK IN EITHER, HUH? IF YOU, IF YOU TOGGLE IT.
IS THAT THE ONE WORKING? OH YEAH.
IT'S, IS THIS, THIS ONE? I DIDN'T REALIZE THAT'S WHEN HE WAS DRIVING OVER THERE.
I WAS LIKE, SOMEONE'S, I COULD SEE HIM DRIVING IT.
NOT THE SAME AS THE OH, HOPE SO.
'CAUSE THIS IS THE ONE I READ.
SO I WOULD JUST RECITE IT AFTER THERE.
WE'LL TRY TO FIGURE OUT OF THESE.
I READ THIS WHAT'S IN THE PACKAGE.
SO WE HAVE A PROPOSED REVENUE FOR 24 25 FOR, UH, 21 MILLION 2 41, 8 30.
WHAT PAGE ARE YOU ON? WHAT PAGE? OH, THE, IT'S UH, NUMBER, NUMBER, YES.
ARE YOU GUYS ALL YOU GOT THAT? YEAH.
SO THAT'S, UH, TOTAL REVENUE OF 21 MILLION 241 830.
AND THEY HAVE A TOTAL EXPENDITURE OF, UH, 19 MILLION 8 92, 9 50.
THESE ARE BASED ON THE BOWER RATE STUDY.
UH, THE, THESE NUMBERS ARE, SO WE HAVE A, LIKE A REVENUE OF, UH, THE OUT OF REVENUE AND, UH, 1 MILLION 348 8 80.
SO THAT HAS A, I MEAN, BEGINNING BALANCE OF 13 MILLION 285, 2 32, AND AN ENDING BALANCE OF 14 MILLION 634 1 12 BASED OVER 450 DAYS OF, UH, OPERATING EXPENDITURES.
SO THAT'S WHAT WE ARE PRESENTING.
ANY QUESTIONS ON THAT? YEAH, I'VE GOT A QUESTION.
UH, IN THE, UH, 2223 ACTUAL, WE'VE GOT A GAP TO BUDGET ADJUSTMENT.
ARE WE CAN HAVE THAT SAME THING IN
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24 AND IN 25 AND, UH, WE CAN GET BACK.WE YEAH, WE CAN GET BACK TO YOU ON THAT MINUTES.
YOU GUYS THAT WON'T BE KNOWN UNTIL AFTER THEY ASK UNTIL AFTER THE AUDIT.
THAT WOULD BE, THAT'S THE AUDIT, RIGHT? YES.
THAT'S JUST, UH, MODIFIED ACCRUAL ACCOUNTING.
SO THE 4 42, IS THAT WHAT WE'RE TALKING ABOUT? YES.
SO THE 4 42 WILL NOT BE ADDRESSED UNTIL THE, UNTIL THE CURRENT YEAR.
FY 24 BUDGET HAS ITS AUDIT, WHICH WILL BE, UH, MARCH OF NEXT YEAR.
SO FFY 25 OR MARCH OF NEXT YEAR, WE WILL GO BACK AND MAKE ANY ADJUSTMENTS IF THE AUDITED CALLS FOR IT AT THAT POINT.
WELL, AND TYPICALLY THAT WILL OCCUR, RIGHT? I MEAN THERE'S, RIGHT, IT'S A, BECAUSE THERE'S A LOT OF DIFFERENCE BETWEEN BUDGET, BASIS AND GAP.
ANYTHING ELSE? THIS DOES ALSO ASSUME THE 6% RATE INCREASE, IS THAT CORRECT, FRANK? YEAH.
THE 6% RATE INCREASE, UH, AGAIN, UH, PER THE COROLLA RATE STUDY THAT WAS BEEN GOING ON FOR A FEW YEARS NOW AT THIS POINT NOW, WE'LL MAKE SURE TO PASS THAT ON TO THE COUNCIL WHEN WE DISCUSS THE CITY'S BUDGET THAT IT'S NOT YES, THANK YOU.
THE BOARD DRIVING THAT, IT'S JUST ADHERING TO WHAT THE RATE STUDY SAID, UM, AND THE PAST AND KEEPING UP WITH THAT TO ENSURE THAT WE CAN PAY FORWARD THE FUTURE DEBT THAT WILL BE COMING ON BOARD AS WELL.
ALRIGHT, SO THERE'S NO MORE QUESTIONS ON THIS PART OF THE PRESENTATION.
YOU HAVE ANYTHING ELSE? NOPE, THAT'S IT.
[b. Consider a resolution calling for a public hearing regarding the Baytown Area Water Authority Fiscal Year 2024-25 Proposed Budget.]
UM, NEXT WE WILL CONSIDER A RESOLUTION CALLING FOR A PUBLIC HEARING TO BE HELD ON JULY 17TH REGARDING THE AUTHOR'S FISCAL YEAR 20 24, 25 PROPOSED BUDGET.DO I HAVE A MOTION TO ACCEPT THE RESOLUTION? I'LL MAKE THE MOTION A SECOND.
I'LL SECOND MOTION AND SECOND.
ANY DISCUSSION OR QUESTIONS? HEARING NONE.
OPPOSED? LIKE, SIGN MOTION CARRIES UNANIMOUSLY.
[a. Consider a resolution authorizing the First Amendment to the Treated Water Supply Contract with Harris County Fresh Water Supply District 1-A, to increase contract quantity.]
RESOLUTION AUTHORIZING THE FIRST AMENDMENT TO THE TREATED WATER SUPPLY CONTRACT WITH HARRIS COUNTY FRESH WATER SUPPLY DISTRICT ONE A TO INCREASE CON CONTRACT QUANTITY.UM, THE ITEM, UH, BEFORE YOU, UM, AS STATED, IS A REQUEST THAT WE RECEIVE FROM, UH, ONE OF THE BALL CUSTOMERS, HARRIS COUNTY FRESHWATER SUPPLY DISTRICT ONE A TO INCREASE THEIR CURRENT CONTRACT CAPACITY.
THEIR CURRENT CONTRACT IS AT 165,200 GALLONS PER DAY.
THE NEW PROPOSED, UH, AMOUNT WOULD BE 389,700, UH, GALLONS PER DAY.
SO, UM, JUST A LITTLE BIT OF BACKGROUND.
UM, THEY'RE HAVING SOME DEVELOPMENT GOING ON IN THEIR DISTRICT AND THEY NEED ADDITIONAL WATER CAPACITY TO BE ABLE TO SATISFY THAT DEVELOPMENT.
UM, WE HAVE TOLD THEM WE COULD, WE COULD PROVIDE THE CAPACITY, HOWEVER WE WOULD EXPECT THAT THEY NEED TO USE, UTILIZE THE CAPACITY WITHIN THE NEXT COUPLE YEARS.
SO THEY HAVE A PROVISION IN THE CONTRACT THAT TAKES THEM TILL JULY 1ST, 2026, WHICH ESSENTIALLY STATES IF THEY DON'T UTILIZE THAT CAPACITY BY THAT TIME, THEN WE WILL ADJUST THEIR CONTRACT BACK DOWN, UM, TO FIT WHAT OUR, UH, WHAT THEIR BETTER FIT, WHAT THEIR NEEDS ARE.
UM, SO THAT'S THE FULL TERMS OF THE, OF THE AGREEMENT.
AND THEN IT WOULD EXTEND THE CONTRACT OUT TILL, UH, CO CORRESPOND WITH BALL'S, CURRENT CONTRACT WITH CITY OF HOUSTON AND THE CITY, WHICH WOULD GO THROUGH 2040.
SO WITH THAT SAID, UH, STAFF RECOMMENDS APPROVAL.
DO I HAVE A MOTION TO APPROVE? APPROVE.
SECOND, I'LL SECOND QUESTIONS DISCUSSION.
SO THAT'S A, THAT'S A END CUS END USE CUSTOMER THAT'S ASKING FOR THIS INCREASE.
IS IS, IS ONE A THE ONE THAT'S ON JONES ROAD, IS THAT WHERE THEIR OFFICE IS? UM, JUST OFF OF, OFF OF, UH, WAS OFF THOMPSON?
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NO, THAT'S, I DON'T THINK THAT THAT'S THEIR OFFICE.I HAVE TO LOOK AT WHAT THEIR PHYSICAL OFFICE ADDRESS IS, BUT IT'S THE MCNAIR, UM, SERVICE AREA.
SO IN ORDER TO GET THAT WATER, WE'RE HAVING TO RENEGOTIATE OUR CONTRACT WITH THE CITY OF HOUSTON, AREN'T WE, FRANK? ISN'T THAT IN THE WORKS? SO WE, WE DID GET OUR INCREASE IN, UH, CONTRACT WATER FROM THE CITY OF HOUSTON.
UM, WE'RE CURRENTLY TRYING TO DO ANOTHER AMENDMENT TO EXTEND THE TIMEFRAME SO THAT WHEN WE ISSUE, UH, BONDS ON THE PLAN EXPANSION, THE TIMEFRAME WILL CORRESPOND TO THE BONDS THAT WE ISSUE.
SO, BUT WE DID GET THE ADDITIONAL WATER FROM CITY OF HOUSTON.
ANY OTHER QUESTIONS? I GUESS I, I COULD, UM, PROVIDE A LITTLE MORE BACKGROUND ON THIS.
UM, SO WE HAVE TO ALSO MAKE SURE THAT WE HAVE PLANT CAPACITY TO SATISFY ALL THE CONTRACTS WE HAVE IN PLACE AND THAT'S WHY, UH, WE'RE VERY CLOSE ON OUR CAPACITY.
SO, UH, THAT'S WHY THE UH, BOW EAST PLANT EXPANSION IS NECESSARY AND THAT'S WHY WE ALSO PUT CLAUSES IN THESE CONTRACTS TO TAKE BACK THE, UM, THE VOLUME IF THEY DON'T USE IT BECAUSE IT'S COSTING BWA BASICALLY MONEY TO EXPAND THE PLANT TO PROVIDE CAPACITY TO CUSTOMERS.
AND IF THEY DON'T USE THAT CAPACITY, WE'RE NOT GETTING THE REVENUES BECAUSE WE DON'T HAVE TAKE OR PAY CONTRACTS.
WE DON'T HAVE A TAKE OR PAY CONTRACT HAVE TAKE OR PAID CONTRACT.
THEY DON'T THAT SO THEY DON'T PAY FOR THEIR CAPACITY LIKE I DO FOR ELECTRICITY.
SO IF, IF, UH, IT REALLY GETS TO BE AN ISSUE, THAT'S SOMETHING THE BOARD COULD LOOK AT IN FUTURE IS DOING TAKE OR PAY CONTRACTS.
BUT UH, AT THIS TIME WE'RE JUST TRYING TO, YOU KNOW, CLOSELY MONITOR HOW MUCH CAPACITY EACH CUSTOMER HAS AND THAT THEY'RE USING WHAT THEY HAVE.
ANY ADDITIONAL QUESTIONS? HEARING NONE.
ALL THOSE IN FAVOR OF THE RESOLUTION, PLEASE SAY AYE.
OPPOSED LIKE SIGN MOTION CARRIES UNANIMOUSLY.
[b. Consider a resolution authorizing the Baytown Area Water Authority Drought Contingency Plan for the Texas Commission on Environmental Quality.]
CONSIDER A RESOLUTION AUTHORIZING THE AUTHORITY DROUGHT CONTINGENCY PLAN FOR THE TEXAS, FOR THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY HONOR TO OUR BOARD PRESIDENT AS WELL AS OUR BOARD AND CITY ADMINISTRATION.ALRIGHT, SO AS DEFINED BY THE TEXAS COMMISSION OF ENVIRONMENTAL QUALITY, UM, OUR DROUGHT CONTINGENCY PLAN IS A STRATEGY TO MONITOR AS WELL AS RESPOND TO DROUGHT OR OTHER TEMPORARY WATER SUPPLY SHORTAGES.
UH, THIS PARTICULAR AGENDA ITEM WOULD BE TO UPDATE THAT PLAN.
WE ARE REQUIRED BY TCEQ TO UPDATE THAT PLAN EVERY FIVE YEARS.
THE LAST TIME THAT WE PRESENTED THIS AND IT WAS APPROVED WAS IN 2019.
WE'VE REACHED THAT FIVE YEAR MARK.
SO THIS IS AN UPDATE TO THE 2019 DROUGHT CONTINGENCY PLAN.
ALL RIGHT, DO I HAVE A MOTION? A MOTION TO APPROVE? SECOND.
I HAVE A MOTION TO SECOND QUESTIONS OR DISCUSSION.
IS THERE ANY CHANGE FROM THE PRIOR DROUGHT CONTINGENCY PLANS? NO.
WE'VE JUST UPDATED IT TO 2024 TO MAKE IT, UH, MORE SUFFICIENT WITH 2024 YEAR, BUT EVERYTHING IS PRETTY MUCH THE SAME AS IT WAS PREVIOUSLY.
IT DOESN'T, IT DOESN'T LOOK LIKE IT'S GONNA BE A PROBLEM THIS YEAR.
ALRIGHT, ANY OTHER QUESTIONS? HEARING NONE.
OPPOSED? LIKE, SO MOTION CARRIES UNANIMOUSLY.
[a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.]
A REPORT ON THE STATUS OF THE AUTHORITIES EAST EXPANSION PROJECT.UM, SO WE ARE CONTINUING TO WORK WITH THE PROPOSER, UH, BAYTOWN WATER PARTNERS ON THEIR CONTRACT AND PRICE FOR THE EXPANSION.
WE WERE HOPING TO HAVE IT HERE THIS MONTH.
WE DIDN'T QUITE MAKE THOSE DEADLINES AND WE DID HAVE A REALLY GOOD MEETING WITH THEM ON MONDAY, WORKING THROUGH THE LAST FEW ISSUES.
AND WE HAVE A NEW, UH, DRAFT CONTRACT TO SEND LEGAL FOR THEIR REVIEW.
SO EVERYTHING APPEARS THAT WE SHOULD BE ABLE TO MAKE THE JULY BOARD MEETING WITH THAT CONTRACT FOR Y'ALL TO REVIEW AND APPROVE.
SO, AND THAT'S, THAT'S IT FOR TODAY.
ANYBODY HAVE A QUESTION FOR HER? NO.
[b. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2024.]
NEXT WE WILL RECEIVE THE AUTHORITIES QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING MARCH 31ST, 2024.[00:15:01]
TWO PRESENT THE CURRENT, UM, OPERATIONS AS OF MARCH 31ST, 2024.THE SECOND QUARTER, UH, CURRENT REVENUES ARE AT 10 MILLION 130,230, $130,234.
OVERALL REVENUE EXCEEDS THE BUDGET BY AT, AT OVER LAST YEAR BY 2.08 MILLION.
UH, CURRENT EXPENDITURES FOR CURRENT YEAR OPERATIONS ARE 7.4 MILLION.
THAT INCLUDES TRANSFERS FOR DEBT SERVICE AND TO SUPPORT CIP PROJECTS.
THE ENDING WORKING CAPITAL IS $11,219,070.
YOU HAVE AN INTEREST RATE OF 5.3% ON YOUR INVESTMENTS AND THAT'S FOR BAER FUND, BUT THEN YOU ALSO HAVE THE CIP FUND.
AND FOR THE CIP FUND REVENUES ARE 692,000 WITH EXPENDITURES OF 713,000 AND AN END IN WORKING CAPITAL OF 1.8 MILLION.
ARE THERE ANY QUESTIONS? OKAY, I THINK DAVE IS, HE'S THINKING, THINKING.
DOES ANYONE ELSE HAVE A QUESTION OR WHY? WHY DID OUR INVESTMENT INTEREST UP IN THE TOP? WHY IS IT SO MUCH HIGHER THAN OUR BUDGET? I GUESS WE DIDN'T HAVE ANYTHING BUDGETED FOR INVESTMENT INTEREST, DID WE? ON OUR REVENUES? WELL, SOMEONE WAS BEING EXTREMELY CONSERVATIVE.
UM, I GUESS COMING OUT OF, YOU KNOW, THE COVID, UM, AIR, I'M NOT SURE WHY THEY WOULD'VE BUDGETED 1000.
I THINK IT WAS PRETTY GOOD IN 22 AND 23, BUT THAT'S JUST, UM, A VERY CONSERVATIVE NUMBER.
EVEN IF, UM, YEAH, THAT'S ALL I CAN THINK OF.
SOMEBODY WAS VERY CONSERVATIVE.
SO WE'RE AT, AT, OR IF IT'S NEW MONEY THAT WAS IN THERE OR SOMETHING LIKE THAT.
AT, AT THIS POINT, UH, THROUGH MARCH 31ST, WE'RE AT SIX MONTHS.
WE'RE CLOSE TO BUDGET OR ESTIMATED.
[6. EXECUTIVE SESSION]
UH, WE WILL GO INTO ITEM SIX ON THE AGENDA.WE WILL NOW RECESS INTO AND CONVENE AN EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071.
SEEK THE ADVICE OF THE CITY'S ATTORNEYS REGARDING PENDING OR CONTEMPLATED LITIGATION.
I NOW RECONVENE OUR OPEN MEETING OF THE BAYTOWN AREA WATER AUTHORITY AND ANNOUNCE THAT IN ACCORDANCE WITH SECTION 5 51 0.102 OF THE TEXAS GOVERNMENT CODE.
NO ACTION WAS TAKEN IN EXECUTIVE SESSION.
[a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, July 17, 2024, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]
OF BUSINESS IS THE MANAGER'S REPORT.I HAVE NOTHING EXCEPT THAT OUR NEXT MEETING WILL BE ON JULY 17TH AT 4:30 PM AND I WILL NOT BE IN ATTENDANCE OF THAT MEETING.
I WILL NOT BE IN ATTENDANCE EITHER.
WE WILL NOT MEET ON JULY 17TH.
WE'LL FOLLOW UP WITH, AND THEN THERE WAS THREE WE COULD POLL FOR AN ALTERNATE DATE.
AND WE NEED A QUORUM, SO, ALRIGHT.
WELL, AS THERE IS NO FURTHER BUSINESS ON OUR AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN.
WE'LL SEE YOU SOMETIME IN THE FUTURE.
IS THAT, IS THAT TYPICALLY YOUR MOTION? NO.