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UM, OUR FIRST ITEM OF BUSINESS IS CITIZEN COMMENTS.
DO WE HAVE ANYONE SIGNED UP TO SPEAK? NO.
HEARING IS THERE ARE NO PEOPLE TO
[a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on August 27, 2025.]
SPEAK.WE'LL MOVE TO THE MINUTES SECTION AND CONSIDER APPROVING THE MINUTES OF THE AUTHORITIES REGULAR MEETING HELD ON AUGUST 27TH, 2025.
DO I HAVE TO APPROVE? I HAVE A MOTION.
I SECOND A MOTION AND A SECOND.
DO I HAVE ANY, UH, QUESTIONS OR DISCUSSION? HEARING NONE.
[a. Consider the adoption of a Resolution of the Board of Directors of the Baytown Area Water Authority Authorizing the Issuance of the Baytown Area Water Authority Water Supply Contract Revenue Bonds, Series 2025 for the Baytown Area Water Authority East Surface Water Treatment Plant Expansion Project; Approving Other Matters Related Thereto; And Providing for the Effective Date Thereof.]
WE WILL NEXT CONSIDER A PROPOSED RESOLUTION TO CONSIDER THE ADOPTION OF A RESOLUTION OF THE BOARD OF DIRECTORS OF THE AUTHORITY AUTHORIZING THE ISSUANCE OF THE AUTHORITY, WATER SUPPLY, CONTRACT REVENUE BONDS SERIES 2025 FOR THE AUTHORITIES, EAST SERVICE WATER TREATMENT PLAN, EXPANSION, PROJECT, APPROVING OTHER MATTERS RELATED THERE TO AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.UH, IF YOU RECALL, WE HAVE, WE'VE BEEN WORKING WITH, UH, THE TEXAS WATER DEVELOPMENT BOARD, UM, REGARDING THE SWIFT LOAN THAT WE'RE DOING WITH THEM.
AND THIS IS A PART OF THAT PROCESS WHERE WE HAVE TO GET YOUR AUTHORIZATION TO ISSUE THE BONDS THAT THEY'RE ISSUING TO SEND US THE MONEY THAT WE NEED AND THE AMOUNT OF $69 MILLION.
AND I'M HAPPY TO ANSWER ANY QUESTIONS.
AND WE ALSO HAVE OUR BOND COUNSEL HERE TO ANSWER ANY QUESTIONS IF YOU NEED.
DO I HAVE A MOTION TO APPROVE? I'LL MAKE THE MOTION.
QUESTIONS, DISCUSSION? UH, I HAVE A COUPLE, I HAVE A COUPLE OF QUESTIONS.
UM, ON PAGE 49 OF THE ATTACHMENT, IT INDICATES THE, UH, DIRECTORS OF THE, UH, OF BAWA AND IT INDICATES EXPIRATION DATES.
UH, IF THESE EXPIRATION DATES ARE CORRECT, THEN FRANK AND I DON'T NEED TO BE HERE BECAUSE THESE SAY AUGUST 31ST, 2025 AND I THINK WE'VE BOTH BEEN REAPPOINTED.
SO DON'T THOSE NEED TO BE LATER DATES? IS THAT THE, UM, YOUR ELECTED DATES OR WHAT IS THE I DON'T HAVE THE, IT SAYS TERM EXPIRATION OF THE CONTRACT? NO, IT SAYS BOARD OF DIRECTORS AND IT LISTS EACH OF US AND THEN IT SAYS EXPIRATION TERM EXPIRATION AND IT LISTS JIMMY SMITH WHO IS NO LONGER ON THE BOARD.
SO YOU NEED TO, SO THAT IS A FORM OF PRIVATE PLACEMENT MEMORANDUM.
UH, SO THIS IS, THIS IS APPROVING THE GENERAL FORM.
ALL THE FINAL PIECES RELATED TO THAT WILL PASS THROUGH A FINAL CITY REVIEW BEFORE IT'S SUBMITTED TO THE WATER DEVELOPMENT BOARD.
AND SO THAT INFORMATION, IF THERE'S ANYTHING THAT'S THERE THAT'LL BE PICKED UP.
WHEN WE INITIALLY DRAFTED THIS AND SUBMITTED IT TO THE WATER DEVELOPMENT BOARD, IT WAS BACK IN JULY.
UM, AND SO THIS WILL BE PICKED UP AS PART OF THAT FINAL, FINAL REVIEW PROCESS.
AND, UH, HAVE WE, HAS, DO WE HAVE A, LIKE A WEIGHTED AVERAGE INTEREST RATE FOR THESE BONDS OVER THEIR LIFE? APPROXIMATE.
LET, LET, I'LL LOOK THAT UP RIGHT NOW.
UH, THERE'S ALSO, UH, QUESTIONS ABOUT, OR A COMMENT ABOUT THESE NOT BEING ARBITRAGE BONDS AND I UNDERSTAND THAT, BUT WHO IS RESPONSIBLE FOR KEEPING UP WITH WHETHER OR NOT THERE IS ARBITRAGE ON THESE BONDS? FOUND THE APPROPRIATE REPORTS.
IS THAT HILLTOP OR IS IT STAFF HERE OR, UH, IT IS FINANCE ALSO WORKING WITH HILLTOP TO KEEP, I'M KEEP TRACK.
IT'S FINANCE, THE FINANCE DEPARTMENT WITH THE CITY ALSO WORKING WITH HILLTOP ON THAT.
AND, AND JUST ALONG WITH THAT, THERE IS A SET IN THE FEDERAL TAX CERTIFICATE THAT THE, UH, THAT THE AUTHORITY WILL SIGN THAT ARE RULES THAT ARE SET OUT INSIDE THE FEDERAL TAX CERTIFICATE AND YOUR COMPLIANCE PROCEDURES, UH, THAT ARE IN PLACE AS WELL.
SO YOU ALSO HAVE TAX COMPLIANCE PROCEDURES THAT ARE IN PLACE IN ORDER TO HELP, UH, HELP GUIDE THOSE.
DID, DO YOU HAVE ANY MORE QUESTIONS? I DO NOT.
DOES ANYONE ELSE HAVE A QUESTION? ALRIGHT, UM, ALL THOSE IN FAVOR SAY AYE.
OPPOSED? LIKE SIGN MOTION CARRIES UNANIMOUSLY.
DO YOU WANT THE, THE ALL IN TECH OR THE, THE TRUE INTEREST COSTS ON THE, SO THE TRUE INTEREST COST IS 3.789 3.789.
AND I THINK IN NOVEMBER, I MEAN, EXCUSE ME, I THINK IN SEPTEMBER, DO
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YOU MIND JUST SO WE CAN MAKE SURE TO RECORD? SORRY ABOUT THAT.SO THE TRUE INTEREST COST OF THE BONDS IS 3.789.
I BELIEVE THAT COMPARES VERY FAVORABLY TO WHAT WE GOT.
I DON'T HAVE THE NOTE OF THE SEPTEMBER ESTIMATE IN FRONT OF ME, BUT I LOOKED AT IT ON ANOTHER DEAL THIS MORNING.
IT WAS OVER FOUR IN THE SEPTEMBER ESTIMATE.
SO, UH, AND SO THE, THE RATES DID COME DOWN WHEN WE GOT TO THE FINAL, UH, FINAL PRICING OVER WHAT WAS INITIALLY, UH, PROJECTED BY THE WATER DEVELOPMENT BOARD.
[a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.]
YOU.UM, NEXT WE WILL RECEIVE A REPORT ON THE STATUS OF THE AUTHORITIES EAST EXPANSION PROJECT.
LEMME GET TO THE POWERPOINT REAL QUICK.
SO SINCE WE JUST MET A FEW WEEKS AGO, HASN'T BEEN A LOT THAT HAS CHANGED, UM, FROM WHAT WE PRESENTED THEN.
SO JUST KIND OF WANT TO KINDA REMIND Y'ALL WHAT'S UPCOMING AND THIS NEXT MONTH 'CAUSE A LOT OF LOT'S HAPPENING IN THIS MONTH.
SO WE ARE EXPECTED TO GET THE 90% DESIGN PACKAGE, UM, NEXT WEEK, OCTOBER 17TH.
UH, THE LAST ONE WE GOT 70% WAS REALLY GOOD.
WE DIDN'T HAVE A LOT OF COMMENTS, SO WE, WE EXPECT THE 90% TO BE REAL AT REAL CLOSE TO THAT A HUNDRED PERCENT.
SO EXPECTING A REALLY GOOD SET THERE.
IT'S CURRENTLY BOTH IN TW DB AND TCQ FOR REVIEW AND APPROVAL.
WE WILL BE GETTING, SORRY, WE'LL BE GETTING THE GUARANTEED MAXIMUM PRICE PROPOSAL ON OCTOBER 31ST.
SO AT THE END OF OCTOBER IS WHEN WE WILL GET THE PRICE BASICALLY FOR THE REMAINDER OF THE PROJECT FROM BWP.
THERE WILL BE A NEGOTIATION REVIEW, YOU KNOW, PERIOD PRIOR TO BRINGING IT TO Y'ALL, BUT IT'S ANTICIPATED THAT WE SHOULD HAVE IT ALL WORKED OUT, READY TO GO FOR Y'ALL'S APPROVAL IN DECEMBER SO THAT WE CAN GET STARTED IN JANUARY.
UM, WE HAVE BEEN ALREADY IN SOME OF THOSE GMP DISCUSSIONS ON SOME OF THE CONTRACT TERMS. PRETTY MINOR.
IT'S ALL BEEN GOING VERY WELL.
WE'RE JUST REALLY WAITING FOR THAT, THAT PRICE AT THE END OF OCTOBER TO, TO FINALIZE THAT.
AS FAR AS THE TEXAS WATER DEVELOPMENT BOARD GOES FOR THE REST OF THAT CITY COUNCIL WILL BE APPROVING BASICALLY WHAT YOU, YOU KNOW, JUST APPROVED AS, AS WELL FOR THIS AGREEMENT AND THEN IS ANTICIPATED TO CLOSE ON NOVEMBER 14TH.
SO WE SHOULD HAVE YOUR MONEY IN TIME FOR Y'ALL'S APPROVAL FOR THE PRICE IN DECEMBER AND NTP IN JANUARY.
AND SO THAT'S, THAT'S KIND OF WHERE WE'RE AT.
WE'RE IN A LITTLE BIT OF A WAITING, YOU KNOW, PERIOD ON SOME OF THESE PIECES.
ANY QUESTIONS? ALRIGHT, THANK YOU VERY MUCH.
[a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, November 19, 2025, at 5:00 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]
UM, OUR NEXT ITEM IS THE MANAGER'S REPORT.UH, NOTHING TO REPORT EXCEPT THAT OUR NEXT MEETING SCHEDULED FOR NOVEMBER 19TH AT UH, 5:00 PM IN COUNCIL CHAMBERS.
DO YOU ANTICIPATE ANY KIND OF A SPECIAL MEETING? UH, RE REGARDING? NO, I, I THINK CLOSING OR ANYTHING SALE OR ANYTHING, THIS, UH, THIS WAS THE ITEM THAT WE NEEDED TO GET BEFORE THE CLOSING, SO, UH, IT WAS IMPORTANT TO GET THIS ONE DONE TODAY.
UM, I DON'T THINK WE'LL HAVE NEED FOR A SPECIAL MEETING.
UH, LIKE LINDSAY SAID, WE WILL BRING, UM, WE SHOULD HAVE THE PRICE, UH, ANALYZED AND READY FOR YOUR CONSIDERATION BY DECEMBER.
I KNOW, UH, WE MAY NEED TO, YOU KNOW, BECAUSE OF THE HOLIDAYS, WE MAY WANT TO MOVE THE DECEMBER MEETING UP A LITTLE BIT, BUT, UH, WE CAN DISCUSS THAT IN NOVEMBER.
SO I HAVE A SEPARATE QUESTION IF YOU DON'T MIND.
YOU KNOW, WE'RE WE'RE DOING THIS EXPANSION PROJECT AT, AT THE BA BWA EAST.
THERE'S A GOOD BIT OF LAND AT THE OLD SITE.
WOULD THERE EVER BE ENOUGH ROOM TO BE ABLE TO DO AN EXPANSION AT THAT SITE? SO I, I'VE BEEN TOLD IN THE PAST THAT THERE'S NOT ROOM AT THE EXISTING PLANT FOR EXPANSION.
UM, I KNOW WE, WE DO USE, THERE'S LAND, BUT WE, WE USE THAT FOR, UM, LAND APPLICATION OF OUR, UM, UM, FROM THE DETENTION PONDS.
UM, OTHER THAN THAT, I DON'T KNOW IF STERLING WANTS TO SPEAK TO ANYTHING ELSE, BUT, UH, WHAT I'VE BEEN TOLD IN THE PAST, THERE'S NOT ROOM FOR EXPANSION AT THE MAIN PLANT.
I DIDN'T KNOW IF YOU COULD DO A SMALLER EXPANSION OR WHATEVER.
YOU WOULDN'T HAVE TO DOUBLE THE SIZE OR ANYTHING, BUT IF WE EVER, IF WE EVER NEEDED TO SQUEEZE A LITTLE BIT MORE OUTTA THAT PLACE.
SO THE, THE GROWTH IN THE, THE WATER DEMAND IS PRIMARILY ON THE EAST SIDE ANYWAY.
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YOU KNOW, THE, THERE IS GONNA BE MORE GROWTH IN THE NORTH.UM, BUT UM, YOU KNOW, THE MAIN PLANT I THINK CAN HANDLE THAT CAPACITY IF, IF THE EAST PLANT, YOU KNOW, COVERS WHAT'S ON THE EAST SIDE AND THEY'RE BOTH CONNECTED SO, YOU KNOW, UM, IT, UH, THE, THE CAPACITY IS COMBINED.
UM, THAT'S, THAT'S UH, ACCURATELY STATED.
UM, THE, UH, IMPACT HOW, HOW IT WAS ORIGINALLY UH, DESIGNED GOING BACK TO WHEN THE PLANT WAS EXPANDED BACK IN 2000 IS THEY EXPANDED THE SITE GOING TO THE WEST OR EAST, I'M SORRY, GOING TOWARDS THE EAST.
UM, IS WHERE THAT ADDITIONAL UM, LAND SPACE WAS, WAS UH, APPROVED BECAUSE THERE'S A LOT OF ELECTRICAL, UM, CONDUIT AND IN UH, MOTOR CONTROL CENTERS AND STUFF THAT ARE ON THE OTHER SIDE OF THE TREATMENT, THE TREATMENT TRAIN.
AND TO FRANK'S POINT, YEAH, OUR, UH, APPLICABLE LAND SPACE IS, UM, FOR OUR LAND APPLICATION IS DIRECTLY DICTATED TO THE AVAILABLE LAND SPACE THAT WE HAVE CURRENTLY.
SO WE WOULD HAVE TO MODIFY THAT IF WE WERE TO, YOU KNOW, MAKE A CHANGE LIKE THAT.
AND, AND THE EAST PLANT CAN GO UP TO 24 MGD, UM, SO I, YOU KNOW, WITHOUT ANY REALLY CHANGE IN DEMAND, I THINK, UM, THIS EXPANSION WAS SUPPOSED TO GET US TO 2040.
SO, UH, WE DO HAVE WAYS TO GO TO, YOU KNOW, FOR ANOTHER 12 MGD BEYOND THAT WITH NORMAL GROWTH.
THAT SHOULD TAKE US OUT QUITE A WAYS.
AS THERE IS NO FURTHER BUSINESS ON OUR AGENDA, I WOULD ENTERTAIN A MOTION TO ADJOURN.