Aug 27, 2025 BAYTOWN AREA WATER AUTHORITY MEETING

YOU, YOU HAVE A 10 YEAR CALL ON 'EM.

AND, AND IT'S, WE'RE GONNA HAVE LIKE A NOVEMBER 1ST DATED DATE, I BELIEVE IS OUR DAY-TO DATE.

THANK YOU FOR THESE.

ALRIGHT, DO I HAVE A MOTION TO APPROVE? I'LL MOVE.

UH, A SECOND.

I'LL SECOND.

I HAVE MOTION TO SECOND.

ARE THERE ADDITIONAL QUESTIONS OR DISCUSSION? HEARING NONE.

A AYE.

MOTION CARRIES UNANIMOUSLY.

OPPOSED? LIKE SIGN.

THANK YOU JONATHAN.

UM, WE WILL

[b. Consider a resolution to amend the Fiscal Year 2024-2025 budget for the Baytown Area Water Authority (BAWA) by authorizing a transfer of $4,000,000 from Working Capital Reserve to the Untreated Water Supplies account (35007030-52031) to provide sufficient funding for current and anticipated untreated water costs.]

NOW CONSIDER A RESOLUTION TO AMEND THE FISCAL YEAR 20 24, 20 25 BUDGET FOR THE AUTHORITY BY AUTHORIZING A TRANSFER OF $4 MILLION FROM WORKING CAPITAL RESERVE TO THE WATER SUPPLIES ACCOUNT TO PROVIDE SUFFICIENT FUNDING FOR CURRENT AND ANTICIPATED UNTREATED WATER COSTS.

GOOD AFTERNOON ALL.

UM, YES, AS STATED, THIS PARTICULAR ITEM IS TO REQUEST A BUDGET AMENDMENT, UM, RELATED TO UNTREATED WATER SUPPLIES.

SO I'LL KIND OF GO OVER A LITTLE BIT OF DETAIL, TRY TO KEEP IT HIGHER LEVEL, AND IF YOU GUYS HAVE FURTHER QUESTIONS, FEEL FREE TO LET ME KNOW.

BUT ESSENTIALLY, UM, WE'VE HAD PRIOR DISCUSSION THAT WE'VE HAD A BILLING ISSUE OVER, UH, SEVERAL YEARS WITH THE CITY OF HOUSTON.

AND THERE WERE TIMES WHERE THEY WERE UNDER BILLING US AND THEN THEY WERE OVER BILLING US THINGS OF THAT SORT.

UM, FOR MUCH OF THE TIME IT HAD BEEN UNDER BILLED, UM, WHEN THEY WERE, WE HAD BROUGHT THAT TO THEIR ATTENTION AND THEY HAD FAILED TO ADDRESS IT.

SO WE HAD JUST BEEN PAYING, YOU KNOW, WHAT THEY INVOICED US, BUT WE HAD MADE THEM AWARE OF SUCH ISSUE.

UM, THEY GOT TO A POINT WHERE THEY WERE STARTING TO OVER BILL US EFFICIENTLY.

THEY WERE ESTIMATING FLOWS BASED ON PRIOR USAGES WHEN PUMPS WEREN'T IN SERVICE AND THINGS OF THAT SORT.

SO IT WAS CAUSING ABNORMALLY HIGH BILLS.

WE BROUGHT THAT TO THEIR ATTENTION, UH, REQUESTED A MEETING TO WORK THROUGH A RESOLUTION WITH THEM.

UM, WE MET WITH THEM, UH, KIND OF DISCUSSED THE HISTORY AND WHAT IT WOULD LOOK LIKE, UM, BASED ON US NOT HAVING ACCURATE INFORMATION FROM THEM AND SUBSEQUENTLY

[00:05:01]

HOUSTON NOT ALSO HAVING ACCURATE INFORMATION.

ESSENTIALLY WHAT HAPPENED IS THEIR METER SYSTEM THEY REPLACED, UM, SEVERAL YEARS BACK IT HAD FAILED ON THEM.

AND SO THEY HAD BEEN ESTIMATING, UM, OUR USAGE DURING THAT TIME PERIOD.

UH, WHAT WE HAD AGREED UPON WAS THAT, UM, LOOKING AT HISTORICAL TRENDS, UM, WHAT WE WERE ACTUALLY USING FROM THE FOUR BAY, UH, RUNNING THROUGH THE, THE TREATMENT PROCESS, UM, WAS A LITTLE BIT HIGHER THAN WHAT WE WOULD PURCHASE FROM THEM BECAUSE THERE ARE, THERE IS PROCESSED WATER THAT GOES BACK THROUGH THAT, UM, THAT FORAY POND.

UM, SO WITH THAT BEING SAID, WE UH, AGREED UPON 97% OF THAT AMOUNT IS WHAT WOULD BE INVOICED.

UM, SO THAT ALLOWED US TO GET MORE STABLE BILLING, MORE ACCURATE BILLING, UM, WHAT WE FELT AS COMPARED TO WHAT THEY WERE DOING WITH THEIR ESTIMATES.

UM, SO WE CAME TO THAT AGREEMENT, UM, AT THE TIME IN WHICH THAT WE DID THE BUDGET AMENDMENT OR THE, I'M SORRY, THE BUDGET REQUEST FOR LAST YEAR.

THAT MEETING HAD NOT YET TAKEN PLACE.

SO THE ESTIMATE THAT WAS PROVIDED FOR FY 25 AS FAR AS WHAT WAS REQUESTED FROM THE BUDGET WAS BASED UPON THE DATA WE HAD AVAILABLE TO US AT THAT TIME.

UM, TOWARDS THE END OF THE YEAR, IT WAS DETERMINED THAT ONCE THEY WERE GONNA BILL US, UM, THE, A MORE APPROPRIATE OR MORE CORRECT AMOUNT THAT THAT INVOICE WOULD, THAT MONTHLY INVOICE WOULD BE HIGHER.

AND SO WE BROUGHT THAT TO, UH, UH, STAFF'S ATTENTION IDENTIFIED.

IT SAID, YOU KNOW, WE'RE GONNA NEED TO DO SOMETHING FOR FY 25, UM, BECAUSE WHEN WE GET TOWARDS THE END OF THE YEAR, WE'RE GONNA NOT, WE'RE GONNA EXCEED THE AMOUNT THAT WE HAVE AVAILABLE.

SO, UH, ESSENTIALLY THAT'S WHAT THIS AMENDMENT IS DOING IS PUTTING THE MONEY BACK INTO THAT ACCOUNT SO THAT WE CAN PAY, UH, FOR THEIR CORRECT INVOICING ESSENTIALLY.

UM, LONG TERM, UH, WE HAD BROUGHT UP IN A PREVIOUS MEETING ALSO THAT WE HAVE A PROJECT UNDER CONSTRUCTION, WHICH IS RAW WATER, UH, REHAB PROJECT, UM, THAT IS ALREADY UNDER CONSTRUCTION NOW.

AND PART OF THAT PROJECT WILL PUT IN, UH, METERS ON THOSE PUMPS, UM, THAT WILL BE OWNED AND OPERATED BY BWA.

SO WE WILL HAVE CONTROL AND AUTONOMY OVER THOSE METERS AND WE WILL BE ABLE TO GET THE ACCURATE READING.

IT WON'T BE AN ESTIMATE ANYMORE OR A PERCENTAGE.

UM, THAT PROJECT WILL NOT LIKELY BE IN PLACE UNTIL LATE 2026 OR EARLY 2027 AS FAR AS WHEN WE ARE ACTUALLY ONLINE WITH THOSE, WITH THOSE UNITS.

SO THAT'S A KIND OF BRIEF OVERVIEW OF WHAT THIS ITEM IS ENTAILING AND WHY WE ARE PRESENTING THE AMENDMENT.

SO WITH THAT STAFF RECOMMENDS APPROVAL AND THEN I'LL ENTERTAIN ANY QUESTIONS THAT YOU MAY HAVE.

DO YOU HAVE A MOTION? I MOTION TO APPROVE? MOTION TO APPROVE? DO I HAVE A SECOND? I'LL SECOND.

UM, QUESTIONS OR DISCUSSION? SO I HAVE, I HAVE A QUESTION.

SO WITH THE BILLING DISCREPANCY, DID DOES THIS GO, DO WE BRING IT TO OUR LEGAL TO, TO LOOK OVER AND, AND, UH, AGREE TO THE AGREEMENT ALONGSIDE BOWA? SO, UH, WE DID CONSULT WITH, WITH LEGAL, UM, ESSENTIALLY WHAT WE HAD DID WAS ADVISE AS WHAT OUR RECOMMENDATION WAS MM-HMM .

AND SO THEY WERE IN SUPPORT OF WHAT WE HAD DETERMINED.

IS THIS HAPPENING THROUGHOUT THE, IS IT JUST ON THIS LINE COMING THAT'S FEEDING US OR OTHER CITIES OR OTHER MUNICIPALITIES, UH, HAVING THAT ISSUE? UH, I'M NOT SURE ABOUT OTHER MUNICIPALITIES.

SO IT ONLY APPLIES TO THE MAIN BALL PLANT, THE THOMPSON ROAD LOCATION.

BALL EAST DOES NOT EXPERIENCE THE SAME ISSUE.

UM, BUT ESSENTIALLY KIND OF THROUGHOUT THE LAST 15 YEARS OR SO, THERE'S BEEN NUMEROUS ISSUES AND, YOU KNOW, THIS ISN'T A ONE-OFF EVENT, BUT YOU KNOW, WE HAD MADE 'EM AWARE PREVIOUSLY THEY CAME WITH A PLAN TO REPLACE THOSE METERS AND SO IT TOOK 'EM A LONG TIME TO DO SO THEY EVENTUALLY CAME IN AND REPLACED THOSE METERS.

IT WAS WORKING WELL FOR A SHORT AMOUNT OF TIME AND THEN IT, IT WENT OUT.

UM, AND THEY, YOU KNOW, WERE SPECULATING TO SEVERAL REASONS.

THEY THOUGHT IT WAS SOMETHING OF OURS THAT WAS CAUSING IT.

SO THEN THEY UH, THEY REMOVED OUR ACCESS TO BE ABLE TO VIEW IT, THEN THEY WERE CONTINUING TO HAVE ISSUES AND SO ON AND SO FORTH.

AND SO WE'RE AT THE POINT NOW WHERE THOSE ISSUES ARE STILL NOT RECTIFIED ON THEIR END AND WE DON'T REALLY HAVE A TIMELINE OR CLEAR COMMUNICATION AS TO WHEN THAT IS EXPECTED TO BE.

UM, SO THAT IS WHAT KIND OF PROMOTED US TO PUT THINGS IN OUR OWN HANDS, SO MM-HMM .

WE CAN, YOU KNOW, WITH CERTAINTY KNOW WHAT WE'RE ACTUALLY USING AND, UM, HANDLE THINGS LIKE THAT MOVING FORWARD.

SO DOES, DOES BOW EAST HAVE ITS OWN METER CORRECT? THAT'S THAT'S IN CONTROL BY US.

SO IT'S IT'S ALREADY, IT ISN'T, IT IS.

IT IS THEIR METER.

IT'S THEIR METER, YES.

AND YOU JUST HADN'T HAD THE ISSUES THAT THE CORRECT MAIN PLANT HAS HAD.

OWN METERS OVER, OVER OFF OF THOMPSON AND, UM, IS THERE, WAS THERE ANYTHING IN THE FUTURE TO PUT OUR OWN METERS ON THE BOW EAST? NO, UM, AND LARGELY BECAUSE WE JUST HAVE NOT HAD ANY ISSUES RE RELATED TO THAT.

CORRECT.

ALRIGHT, SO WE'RE PUTTING IN OUR

[00:10:01]

VERY WELL.

SO IS THIS JUST A CATCH UP FOR 24 25 OR IS THIS A PART OF THAT, UH, WHAT STAFF THOUGHT WAS AN UNDER BILLING AT THE END OF 2024? NO, SO THEY DID NOT RETROACTIVELY BILL US FOR ANYTHING FOR THE UNDER BILLING.

WE, WE BROUGHT IT TO THEIR ATTENTION AND, AND GAVE THEM ADEQUATE NOTICE.

THEY DID NOT COME BACK AND ASK FOR ANY, UH, DAMAGES RELATED TO THAT.

SO ONCE WE MADE THE AGREEMENT, UM, ON WHAT THE NEW AMOUNT SHOULD BE, RIGHT, UM, THAT PROJECTION OF WHAT WE WOULD USE IS SIGNIFICANTLY MORE THAN WHAT, WHAT IT WAS PRIOR TO THE UNDER BILLING.

SO FROM A NUMBERS, FROM A NUMBERS STANDPOINT, UM, THE NUMBERS THAT WE HAD AVAILABLE AT THE TIME, IT WAS AROUND 292,000 A MONTH IS, IS BASICALLY WHAT WHAT WE WERE PAYING AND WE'RE, IN REALITY, WE SHOULD HAVE BEEN PAYING CLOSER TO 550,000 A MONTH.

SO IT WAS A SIGNIFICANT UNDER BILLING.

WE MADE THEM AWARE, YOU KNOW, PROACTIVELY WE TRIED TO BE FOLLOW UP AND PERSISTENT WITH THAT.

UM, BUT THEN ONCE THEY STARTED OVERBILLING US, THEN WE WERE, YOU KNOW, TRYING TO REQUEST A, A, A MEETING TO GET IT CORRECTED.

SO THIS IS A VOLUME ISSUE, NOT A PRICE ISSUE.

CORRECT.

BOARD, I JUST WANTED TO CLARIFY, UH, SOMETHING REGARDING COMMISSIONER SMITH'S QUESTION.

LEGAL REVIEW WAS LIMITED TO THE CONTRACT LANGUAGE ITSELF AND THE LEGALITIES OF THE TRANSACTION, NOT THE, UH, FACTS OR, OR THE TRUTHFULNESS OF WHAT THE STATE'S ALLEGED.

SO, SO WHO IS OUR, UM, UM, I MEAN WHEN THERE'S A DISCREPANCY, ESPECIALLY WHEN YOU'RE TALKING ABOUT THIS, THIS, YOU KNOW, $4 MILLION DISCREPANCY, WHICH IS THIS IS GONNA CLEAN THIS UP OR WE'RE STILL, I GUESS I UNDER I UNDERSTAND WE'RE STILL GUESSING AT WHAT THERE OUR USAGE IS GONNA BE OR THEY ARE 97%.

YEAH, WE'RE, WE'RE, WE'RE ACTUALLY USING A, A VOLUME OF WHAT IS GOING THROUGH THE FACILITY.

AND IT'S 97% OF THAT.

SO WE ARE AWARE OF WHAT THE, THE NUMBER IS.

RIGHT.

I DIDN'T KNOW IF THE, IF THE PROCESS WAS TO, YOU KNOW, FOR BY WHAT TO LET OUR LEGAL DEPARTMENT KNOW, HEY, WE GOT A PROBLEM.

YOU KNOW, JUST WANNA LET Y'ALL KNOW THAT'S BASICALLY, THAT'S ABOUT IT, RIGHT? YES, SIR.

THAT'S, THAT'S, UH, GENERALLY THE WAY, UM, THE TWO DEPARTMENTS INTERACT.

WE RELY ON STAFF FOR THE SUBSTANTIVE ISSUES MM-HMM .

AND WE CONSULT WITH THEM ABOUT THE, THE LEGALITIES.

SO WITH REGARD TO THE VOLUMES OF WATER, WE'RE RELYING ON STERLING AND HIS TEAM YEAH.

TO TELL US, UH, HOW ACCURATE OR INACCURATE THOSE SUITES ARE.

VERY WELL, THANK YOU.

AND WITH REGARD TO THE, THE NEW METERS THAT BAWA IS INSTALLING, BAWA IS PAYING FOR THOSE METERS.

CORRECT? SO CONTRACTUALLY, OUR, OUR RAW WATER AGREEMENT WITH THE CITY DIDN'T HAVE, I MEAN, I'M JUST THINKING IN MY HEAD, I WAS WONDERING IF THEY WEREN'T SUPPOSED TO BE CONTRACTUALLY PROVIDING A METER.

THEY ARE CONTRACTUALLY SUPPOSED TO BE PROVIDING A METER.

SO THE, THE, THE PROBLEM, THE PROBLEM WITH IT IS THAT THIS HAS BEEN ONGOING FOR MULTIPLE YEARS WHERE THEY HAVE NOT ADDRESSED OR CORRECTED AND THEN AS THE END USER, YOU KNOW, WE'RE PAYING, YOU KNOW, WE DON'T KNOW HOW MUCH OVER OR UNDER.

RIGHT.

I I TOTALLY THINK IT'S WONDERFUL TO HAVE OUR OWN METERS.

I'M JUST CONCERNED THAT WE'RE PAYING FOR THE METERS.

BUT, UM, WARD, IF YOU'D LIKE TO GO INTO EXECUTIVE SESSION TO DISCUSS THE RAMIFICATIONS OR OPTIONS, WE CAN CERTAINLY DO THAT.

AM I THE ONLY ONE THAT HAS ANY CONCERN ABOUT THAT? I'D LIKE TO TALK ABOUT IT.

ALRIGHT THEN.

CAN'T REMEMBER THE EXACT PROCEDURE, BUT AS OF, LET ME GET A SCRIPT FOR YOU FIRST.

A SCRIPT AS OF 4 47.

SO IT SOUNDS, IT SOUNDS TO ME THE 4 MILLION IS, HEY, WE'RE GONNA HAVE A LOT MORE COSTS THAN WE THOUGHT WHEN WE DID OUR BUDGET, RIGHT? YEAH.

THAT'S ALL, THAT'S ALL THIS IS.

YEAH, EXACTLY.

WE, WE, WE, WE MADE OUT REALLY WELL FOR A LONG TIME, BUT NOW WE'RE HAVING TO PAY WHAT WE ACTUALLY USE.

THAT'S KIND OF WHERE WE'RE AT.

MM-HMM .

DOES THAT, DOES THAT 4 MILLION INCLUDE THE, THE PROJECT FOR INSTALLING THE METERS? THAT'S SEPARATE? THIS IS JUST FOR PAYMENT TO YES.

THIS IS JUST INVOICING FOR USAGE.

A SCRIPT FOR YOU TO COME BACK.

AND THEN I'LL LOOK IN, UH,

[00:15:01]

UM, PUBLIC NOTICE IS GIVEN THAT IN ADDITION TO, TO THE AGENDA LISTED ABOVE THAT WE UH, RESERVE THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE SECTIONS 5 51 0.0 7 1 5 51 0 9 OH TO DISCUSS ANY OF THE MATTERS LISTED ON THE ABOVE AGENDA.

AND WE WILL GO INTO AN EXECUTIVE SESSION AT 4:48 PM ALRIGHT.

I NOW RECONVENE OUR OPEN MEETING OF THE BAYTOWN AREA WATER AUTHORITY AND ANNOUNCE THAT IN ACCORDANCE WITH SECTION 5 5 1 0.102 OF THE TEXAS GOVERNMENT CODE.

NO ACTION WAS TAKEN IN EXECUTIVE SESSION.

ALRIGHT, SO MOVING BACK TO, UM, THE RESOLUTION AT HAND FROM YOU.

OH, THANK YOU.

UH, MOVING BACK TO THE, THE, UH, AGENDA ITEM AT HAND, WE WERE CONSIDERING A, A RESOLUTION TO AMEND THE, THE BUDGET.

UM, I BELIEVE WE HAD A MOTION AND A SECOND WE DID.

UM, IS, ARE THERE, UH, ADDITIONAL QUESTIONS OR, UM, DISCUSSION THAT WE NEED TO HAVE BEFORE WE TAKE A VOTE? HEARING NONE.

NOW CONSIDER A RESOLUTION AUTHORIZING THE SEVENTH AMENDMENT TO THE WATER SUPPLY CONTRACT WITH THE CITY OF BAYTOWN TO EXTEND THE CONTRACTUAL TERM.

OPPOSED? LIKE, SO MOTION CARRIES UNANIMOUSLY.

THANK YOU.

UM, WE, WE'LL

[c. Consider a resolution authorizing the Seventh Amendment to the Water Supply Contract with the City of Baytown to extend the Contractual Term.]

THE ITEM, UM, THE ITEM BEFORE YOU IS A, UM, CONTRACTUAL EXTENSION FOR THE CITY OF BAYTOWN.

UM, AS STATED EARLIER BY JONATHAN, UM, IS A FORMALITY IN RELATION TO THE DEBT ISSUANCE.

UM, AND THE CITY OF BAYTOWN NEEDS TO HAVE A CONTRACT THAT RUNS CONCURRENTLY WITH THE, THE DEBT REQUIREMENT.

SO THAT'S WHAT THIS ITEM IS ABOUT AND WHAT THAT STAFF WILL RECOMMEND APPROVAL.

QUESTIONS, DISCUSSION? HEARING NONE.

DO I HAVE A MOTION TO APPROVE? A I'LL APPROVE A MOTION.

MOTION CARRIES UNANIMOUSLY.

OPPOSED? LIKE SIGN.

WE WILL NOW CONSIDER

[d. Consider a resolution authorizing the first renewal of the As-Needed Zinc Sodium Polyphosphate agreement with Shannon Chemical Corporation.]

A RESOLUTION AUTHORIZING THE FIRST RENEWAL OF THE AS NEEDED ZINC SODIUM POLYPHOSPHATE AGREEMENT WITH SHANNON CHEMICAL CORPORATION.

UH, THE ITEM BEFORE YOU IS, UH, FOR ZINC POLYPHOSPHATE, WHICH IS A CORRO CORROSION INHIBITOR, UH, TREATED AT THE BALL PLANT.

UM, THIS ITEM IS, UH, ONE THAT WE NORMALLY PUT OUT FOR FORMAL BID.

UM, IN THIS PARTICULAR CASE WE WERE JUST LOOKING TO, UH, RENEW THE, UH, CURRENT CONTRACT.

IT'S NOT, UM, IT'S A SPECIALTY CHEMICAL, SO IT DOES NOT RECEIVE A LOT OF ATTENTION FROM BIDDERS AND WE DON'T TYPICALLY GET, UH, MUCH INTEREST, UH, WHEN WE PUT IT OUT FOR FORMAL BID.

SO WHEN THOUGHT IT'D BE BETTER TO JUST RENEW IN THIS PARTICULAR CASE.

DO I HAVE A MOTION TO APPROVE? I'LL MAKE THE MOTION SECOND.

I'LL SECOND.

A MOTION IS SECOND QUESTIONS.

DISCUSSION.

HEARING NONE.

CONSIDER A RESOLUTION AUTHORIZING THE FIRST RENEWAL OF THE AS NEEDED HYDROFLUORIC ACID ACID AGREEMENT FOR SHANNON CHEMICAL CORPORATION.

OPPOSED? LIKE SIGN MOTION CARRIED UNANIMOUSLY.

UH, WE WILL NOW

[e. Consider a resolution authorizing the first renewal of the As-Needed Hydrofluorosilicic Acid agreement for Shannon Chemical Corporation.]

THIS ITEM, UM, SIMILAR TO THE ITEM ABOVE IS A SPECIALTY CHEMICAL FED AT THE BALL PLANT.

IT IS FOR FLUORIDE.

UM, TREATMENT IS, IS FED IN VERY SMALL DOSAGE.

UM, IT'S NOT A, A CHEMICAL THAT WE, UM, GET A LOT OF INTEREST IN EITHER.

UM, IT'S UH, A SPECIALTY CHEMICAL AS WELL.

UM, JUST MAINLY FED FOR DENTAL PURPOSES.

UM, AND SO WITH THAT SAID, UH, STAFF RECOMMENDS APPROVAL.

WE COULD PUT IT OUT FOR A FORMAL BID, BUT MORE THAN LIKELY WE'RE GONNA RECEIVE THE SAME BIDDER, UM, ES ESSENTIALLY AS YEAH, I SEE.

DO I HAVE A MOTION? I MAKE A MOTION.

SECOND.

I'LL SECOND IT.

QUESTIONS DISCUSSION? UH, THIS IS ABOUT, IS THIS FOR THE SAME QUANTITIES THAT WE HAD, UH, IN THE PRIOR CONTRACT? YES, IT IS.

AND WE'VE GOT ABOUT A 50% INCREASE IN COST IN THIS.

UH, I DID NOT SEE A 50% INCREASE.

WELL, I'M LOOKING AT THE, THE, THE EIGHT 20 OF 24 AND IT SAID THAT THEY WERE IN AT $56,000 AND NOW WE'RE AT 79,000.

THAT'S NOT QUITE 50%.

WE'LL CALL IT 40, BUT, BUT THAT'S JUST THE COST OF LIVING INCREASE.

UM, I WOULD ASSUME SO.

I, UM, PERSONALLY WAS NOT THE PERSON THAT RENEWED THE CONTRACT IN THIS SPECIFIC CASE.

[00:20:01]

WHEN WE BID IT IN 24 THAT, THAT THEY WERE THE LOW BIDDER BACK.

UH, QUITE A BIT, BUT JUST CURIOUS.

REPORT ON THE STATUS OF THE AUTHORITIES' EAST EXPANSION PROJECT.

ANY OTHER QUESTIONS? ALL RIGHT.

ALL THOSE IN FAVOR SAY A, A OPPOSED LIKE SIGN THE MOTION CARRIED.

UNANIMOUS.

THANK YOU.

WE'LL RECEIVE A

[a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.]

SO WE ARE HAVING ISSUES WITH THE UH, SCREEN IF YOU WANT TO TURN TO PAGE 1 45 OF YOUR PACKET IF YOU GUYS CAN FOLLOW AROUND.

AND I SAY SINCE I HAVE THINGS TO POINT OUT, I'M JUST GONNA KIND OF TALK THROUGH WHERE WE ARE AND KIND OF WHAT ARE THE UPCOMING MILESTONES.

'CAUSE REALLY WE'RE STILL IN THE DESIGN, YOU KNOW, PHASE OF IT.

WE GOT THE 70% EARLY AUGUST, SO WE'VE BEEN WORKING THROUGH THAT.

BWP HAS PUT TOGETHER THE TCQ PACKAGE AND ALL THEIR REQUIREMENTS TO SEND A TCQ FOR APPROVAL.

AND WE'RE JUST WAITING, IF YOU RECALL, THERE WAS AN INITIAL APPROVAL WE HAD TO GET FROM TCQ BEFORE WE SENT THE FULL PACKAGE.

AS SOON AS WE GET THAT IT IS PREPARED AND READY TO GO.

UM, AND THEN WHAT WE ARE STARTING TO KIND GET MORE INTO IS PREPARING TO GET THE, UM, GUARANTEED MAXIMUM PRICE PROPOSAL.

SO WE EXPECT TO GET THAT AT THE END OF OCTOBER.

SO WHAT BWP IS CURRENTLY WORKING ON IS GETTING BIDS IN.

SO THEY HAD AN OUTREACH, YOU KNOW, EVENT HERE WHERE THEY INVITED BIDDERS TO COME AND SEE THE PLANT, GET SOME INFORMATION.

UM, AND THEY ARE EXPECTED TO GET THEIR BIDS.

I THINK IT'S SEPTEMBER 23RD.

THEY'LL USE THAT TO SELECT EITHER SUBS OR DETERMINE IF THEY'RE GOING TO SELF PERFORM.

AND THAT'S WHAT WILL BE PUT INTO THAT GUARANTEED MAXIMUM PI PRICE PROPOSAL THAT WE WILL GET AT THE END OF OCTOBER.

SO WE'RE STARTING TO GET KIND OF TOWARDS THE END HERE, YOU KNOW, BEFORE WE GET INTO, GET INTO THE PRICE AND THEN GET INTO CONSTRUCTION SO THAT EVERYTHING IS MOVING ALONG ON SCHEDULE, YOU KNOW, AS WE ANTICIPATED.

SO, SO ALL GOOD THERE ON YOUR TEXAS WATER DEVELOPMENT BOARD LOAN.

AND I DID WANT TO TALK ABOUT SOME UPCOMING DATES FOR THAT AS WELL.

YOU DID APPROVE THE AGREEMENT AND SUCH.

TODAY WE ANTICIPATE THAT YOU WILL GET THE INTEREST RATES FOR THAT LOAN IN OCTOBER.

YOU'LL ALSO HAVE TO HAVE PROBABLY A SPECIAL MEETING 'CAUSE YOU HAVE TO APPROVE THE BOND SALE FOR THE, THAT AGREEMENT PRIOR TO OCTOBER THE NINTH, I BELIEVE IS THE DATE.

UM, SO WE'LL JUST KINDA HAVE TO LOOK TO SEE IF THAT'S A SPECIAL MEETING YOU'LL HAVE TO HAVE.

'CAUSE THEN CITY COUNCIL WILL APPROVE THAT ON OCTOBER THE NINTH.

AND THEN ONCE ALL THAT'S APPROVED, WE ANTICIPATE YOUR BOND SALE.

WHAT HAPPENED ON NOVEMBER THE 14TH? SO THE SALE WILL BE ON THE NINTH.

CLOSING, CLOSING HAPPENED ON THE NINTH, SORRY, SALE OF THE NINTH, CLOSING ON THE 14TH.

I ALMOST HAD IT BY MEMORY, BUT THAT WAS REALLY GOOD.

THANKS.

SO, SO LOTS OF STUFF HAPPENING, GETTING TO THAT, LIKE I SAID, TO THAT POINT OF GETTING Y'ALL THE MONEY, GETTING THE PRICE, GETTING IT TO THE CONSTRUCTION PHASE.

SO WOULD THERE BE A CHANCE OF THAT, UM, BEING SOMETHING WE COULD DISCUSS ON SEPTEMBER 17TH? OR WE CAN'T DO THAT TILL OCTOBER? I SAY I DON'T THINK YOU'LL HAVE THE INTEREST RATES IN TIME, BUT OKAY.

I'LL LET THOSE GUYS.

THE, THE INTEREST RATES WON'T COME IN UNTIL EARLY OCTOBER.

UM, AND 'CAUSE THEY'RE NOT GONNA SELL THEIR DEBT UNTIL EARLY OCTOBER.

AND ACTUALLY WE WILL BE AMONG THE FIRST, AMONG THE FIRST OF THE, UH, BORROWERS WHO ARE GETTING THOSE INTEREST RATES AND MOVING ON.

SO UNFORTUNATELY THAT'S THERE, WE, WE TRIED TO MOVE THAT PRICING UP AS FAR AS WE COULD MM-HMM .

SO THAT YOU'RE NOT BLEEDING INTO DECEMBER AND THE HOLIDAYS AND EVERYTHING ELSE.

SO WE'RE GONNA TRY TO GET THAT DONE EARLY.

THE AUTHORITIES QUARTERLY FINANCIAL AND INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30TH, 2025.

UM, ANY OTHER QUESTIONS ON THE PROJECT OR THE FUNDING? ALL RIGHT.

[b. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending June 30, 2025.]

OUR INVESTMENTS ARE 351,000 WITH A BOOK VALUE OF THIRTY ONE MILLION THREE HUNDRED FIFTY FOUR MILLION TWO HUNDRED FIFTY SIX.

SO HOPEFULLY YOU HAVE THE, UM, FINANCIAL REPORT IN YOUR PACKET.

I'M HERE TO PRESENT THE SECOND QUARTER FINANCIAL REPORT AS OF JUNE 30TH, 2025.

UM, I'LL JUST HIT THE HIGHLIGHTS.

THE REVENUE IS ON TARGET AT ABOUT 16 MILLION, WHICH IS ABOUT 75%.

UM, THE EXPENDITURES ARE ALSO, UM, CLOSE TO TARGET AT 15 MILLION, WHICH IS ABOUT 77%, LEAVING US A WORKING CAPITAL BALANCE OF 11000000.3.

UM, OUR CIP IS OUR REVENUE IS AT 3.3 MILLION WITH THE EXPENDITURES AT 1 MILLION, LEAVING US A WORKING CAPITAL OF 4.7 MILLION.

[00:25:05]

UM, AND I'M HAPPY TO ANSWER ANY QUESTIONS AND THAT'LL BE ON PAGE 1 54.

DOES ANYONE HAVE ANY QUESTIONS? ALRIGHT, THANK YOU VERY MUCH.

UM, AND NOW WE GO TO THE MANAGER'S

[a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, September 17, 2025, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]

REPORT.

SO I HAVE SOMETHING OTHER THAN JUST A DATE, UM, EXCITING NEWS.

I'M HAPPY TO INTRODUCE YOU ALL TO OUR NEW BAWA SUPERINTENDENT.

UH, CHRIS WALLACE HERE ON THE FRONT ROW.

AWESOME.

WELCOME.

AND THEN YOUR NEXT MEETING WILL BE ON WEDNESDAY, SEPTEMBER THE 17TH AT FOUR 30 HERE IN THE COUNCIL CHAMBERS.

IS CHRIS A REPLACEMENT FOR SOMEBODY OR? YES.

MICHAEL GAY.

UM, THE GENTLEMAN WITH THE SUIT OFF , THE SHARK DESK GUY.

WELL THANK YOU AND WELCOME, WELCOME TO, UH, THE AUTHORITY.

UM, AS THERE IS NO OTHER BUSINESS ON OUR AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN.

I MOTION TO ADJOURN.

SECOND.