* 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. [00:00:01] GOOD [ BAYTOWN AREA WATER AUTHORITY NOTICE OF MEETING   BAYTOWN AREA WATER AUTHORITY REGULAR MEETING WEDNESDAY, JUNE 17, 2026 5:00 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520   AGENDA    CALL TO ORDER AND ANNOUNCEMENT OF QUORUM  ] AFTERNOON EVERYONE. WELCOME TO THIS MEETING OF THE BAYTOWN AREA WATER AUTHORITY. I'D LIKE TO CALL THE MEETING TO ORDER AND ANNOUNCE THAT WE HAVE A QUORUM. OUR FIRST ITEM OF BUSINESS WILL BE CITIZEN COMMENTS. DO WE HAVE ANY CITIZENS DESIRING TO SPEAK? NO, MA'AM. ALL RIGHT, THANK YOU. NEXT, WE WILL [a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on May 20, 2026. ] CONSIDER APPROVING THE MINUTES OF THE AUTHOR'S REGULAR MEETING HELD ON MAY 20TH, 2026. I MOVE TO APPROVE. SECOND MOTION IS SECOND. QUESTIONS OR DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED LIKE, SIGN. MOTION CARRIES UNANIMOUSLY. WE WILL NOW CONDUCT [a. Conduct a public hearing regarding the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget.] A PUBLIC HEARING REGARDING THE AUTHOR'S FISCAL YEAR 20 26, 20 27 PROPOSED BUDGET. THE PUBLIC HEARING TODAY IS BEING HELD FOR THE PURPOSE OF GIVING RESIDENTS OF THE AUTHORITY THE RIGHT TO SPEAK AND BE HEARD. EVERYONE DESIRING TO SPEAK AT TODAY'S HEARING SHOULD HAVE EITHER SIGNED THE APPROPRIATE LIST IN THE FOYER OR EMAILED THE AUTHORITY SECRETARY PRIOR TO THE POSTED TIME OF THIS MEETING. EACH SPEAKER SHALL GIVE HIS OR HER NAME AND ADDRESS IN ORDER TO PROVIDE A PROPER RECORD OF THIS HEARING. THE RULES ALLOW EACH SPEAKER THREE MINUTES TO PRESENT INFORMATION. HOWEVER, I ENCOURAGE EVERYONE TO BE AS BRIEF AND TO THE POINT AS POSSIBLE. IF ANYONE HAS ANY QUESTIONS, PLEASE DIRECT THEM TO ME AND WITH THE AID OF THE STAFF, I SHALL ATTEMPT TO HAVE THE QUESTIONS ANSWERED. IT IS NOW 5 0 4, 5:04 PM AND I CALL TO ORDER THIS PUBLIC HEARING REGARDING THE BAYTOWN AREA WATER AUTHORITY FISCAL YEAR 20 26, 20 27. PROPOSED BUDGET. I WOULD NOW LIKE TO REQUEST THAT STAFF SUMMARIZE THE SUBJECT OF THIS PUBLIC HEARING. GOOD AFTERNOON. UM, MY NAME IS LI, THE DIRECTOR OF FINANCE OF HEALTH, LISA MCKENZIE. SO TODAY WE'RE PRESENTING THE PROPOSED BUDGET. THANK YOU, SIR. THE PROPOSED BUDGET. UM, IF YOU CAN SEE IN OUR PRESENTATION, THE BEGINNING WORKING CAPITAL IS NINE 2.5 MILLION. WE ARE PROPOSING REVENUES OF 24.2 MILLIONS AND THE OPERATING EXPENSES ARE AROUND 14.2 14 TWO, UH, 0.2 MILLIONS. THE TRANSFERS AND OTHER, UM, NON-OPERATING EXPENSES IN INCLUDED OUR TOTALIZED OR TOTALS THE EXPENDITURES IN 29000000.9. AND THAT, UH, UH, LED US WITH THE WORK ENDING WORKING CAPITAL OF 3.8 MILLION. THAT IS THE SAME OF, UM, 99 DAYS OF OPERATING DAYS. ANY QUESTION? ARE Y'ALL COMFORTABLE WITH THAT NUMBER? UM, YES SIR. I AM ACTUALLY COMFORTABLE WITH THIS, BUT I WILL PUT IT ON THE, UH, PUBLIC WORKS DIRECTOR CAROL HADDOCK, WHO HAS NOT HAD A CHANCE TO LOOK AT ANY OF THESE AND SEE IF SHE'S OKAY WITH ALL THOSE. I'M JUST KIDDING. I'M, I'M OKAY WITH THIS. WE'VE ACTUALLY GONE THROUGH THIS, UM, QUITE EXTENSIVELY AT THIS POINT AND UH, WE ARE OKAY WITH THE NUMBERS. I WOULD LIKE TO ADD ONE UPDATE. WE ACTUALLY REDUCED THE TRANSFER FOR CIP BECAUSE IN THIS SCENARIO WE ARE TRYING TO, UH, USE THE EXISTING FUND BALANCE. SO THAT'S WHY WE HAVE MORE OPERATING DAYS IN THIS SCENARIO. ALRIGHT, ANY OTHER QUESTIONS? ALRIGHT, DID ANYONE SIGN UP TO SPEAK? NO, MA'AM. ALRIGHT. THERE BEING NO ONE DESIRING TO SPEAK, IT IS NOW 5:06 PM AND I CLOSE THIS PUBLIC HEARING REGARDING THE BAYTOWN AREA WATER AUTHORITY FISCAL YEAR 2026. 2027. PROPOSED BUDGET. THANK YOU. UM, OUR NEXT [b. Discuss the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget.] ITEM OF BUSINESS WILL BE TO DISCUSS THE AUTHORITIES' PROPOSED BUDGET FOR FISCAL YEAR 20 26, 20 27. GOOD AFTERNOON, BOARD, UH, MEMBERS, UH, AGAIN, WE ARE, UM, WE ARE HAPPY TO ANSWER ANY QUESTION ABOUT THE, UH, PROPOSED BUDGET. AND IN THIS CASE, WE ARE, UM, HAVING AN OPERATING DAYS AND A PROJECTED OPERATING DAY, OPERATING DAYS OF 99 DAYS. MR. MCKAY, UM, TO YOUR POINT, UM, THERE IS A, THERE IS AN EXTENT OF SPENDING DOWN THE RESERVES AT THIS POINT. UH, PART OF OUR CONVERSATION WAS HOW DO WE BALANCE THIS, THE WATER SEWER FUND, THE FUTURE SSO, UH, EXPENSES, THE ONGOING CAPITAL NEEDS OF THE WATER SEWER FUND AS WELL. AND JUST TRYING TO BALANCE ALL OF THAT OUT. THERE ARE PIECES THAT, UH, MS. HADDOCK OR MRS. HADDOCK WILL, UM, EXAMINE [00:05:01] ON THE WATER SEWER FUND, BUT NOT SO MUCH HERE ON THE BOBBLE FUND. I DO FEEL VERY CONFIDENT THAT WE HAVE DONE A GOOD JOB, UH, REDUCING NEEDED DEBT IN, UH, FOR THE FUTURE AT THIS POINT WHILE ADDRESSING NEEDED CAPITAL. AT THE SAME TIME, AND WHILE WE ARE SPINNING DOWN THIS PIECE, WE'RE STILL STAYING ABOVE THE 90 DAY, UH, RESERVE POLICY THAT THE BOARD HAS. AND WE DO FEEL COMFORTABLE WITH THE BUDGET. SO THE TRANSFER OF THE GENERAL FUND IS THAT, UM, IF, IF WE NEED IT BACK, COULD WE EVER CALL THAT BACK AT A LATER YEAR OR, YES, SIR. SO WHAT WE'VE ACTUALLY TALKED ABOUT IS ACTUALLY REDUCING BAWA TRANSFERRING TO THE GENERAL FUND AT, AT ANY COST AT THIS POINT. AND SO WE KNOW THAT SSO IS GONNA BE SOMETHING THAT WE NEED TO FOCUS ON. AND RIGHT NOW WE ARE TRYING TO REDUCE ANY TRANSFERS, TRANSFERS TO THE GENERAL FUND AT THIS POINT. AND SO, UM, WE FELT THIS, THIS WAS OKAY. AND WAS THIS ONE WE MADE A DECISION ON. THIS ONE WAS THE, UH, WE DID THE ANALYSIS ABOUT THE ADMINISTRATION COST AND THIS IS THE BARE MINIMUM AMOUNT THAT WE CAN, WE NEED TO TRANSFER. OKAY. BUT YES TO, TO YOUR QUESTION, WE CAN RETRACT IT IN THE FUTURE IF WE NEED TO. YES. OR NOW IF WE NEED TO. ALL RIGHT. DOES ANYONE ELSE HAVE A QUESTION? ALRIGHT, THANK YOU VERY MUCH. UM, WE WILL [a. Consider a resolution authorizing an agreement for legal services with Baker Wotring LLP for review of legal and regulatory issues, and provide options and technical support, for water supply evaluation and study.] NOW CONSIDER A RESOLUTION AUTHORIZING AN AGREEMENT FOR LEGAL SERVICES WITH BAKER WATERING LLP FOR REVIEW OF LEGAL AND REGULATORY ISSUES AND PROVIDE OPTIONS AND TECHNICAL SUPPORT FOR WATER SUPPLY EVALUATION AND STUDY. GOOD EVENING BOARD. UM, AS STATED, THE ITEM BEFORE YOU IS FOR CONSIDERATION OF APPROVAL FOR, SORRY, MA'AM. CHAIRMAN, UH, BEFORE WE GO ON, DID WE CLOSE THE PUBLIC HEARING AND GO TO OUR DISCUSSION? DID I MISS THAT? WE DID. I APOLOGIZE. YOU WERE WALKING AROUND . YES, IT, YES, IT WAS A TWO MINUTE PUBLIC HEARING. WE OPENED AT 5 0 4 AND CLOSED AT 5 0 6. MY APOLOGIES. THANK YOU. OH YES. SO, UM, THE ITEM BEFORE YOU IS RELATED TO, UM, A PROFESSIONAL SERVICES WITH BAKER WARRING, UM, LLP AND REFERENCE TO, UH, TECHNICAL SUPPORT FOR WATER SUPPLY EVALUATION. UM, SO THERE HAD BEEN PREVIOUS, UM, DISCUSSION, UM, IN THIS MEETING IN PRIOR MEETINGS OF RELATED TO THE CITY OF HOUSTON AND OUR RELIANCE ON THEM SOLELY. SO, UM, THIS PARTICULAR ITEM WILL EXAMINE, UH, ADDITIONAL OPTIONS FOR, UH, CONSIDERATION IN REFERENCE TO ALTERNATIVE WATER SUPPLY SOURCES. UM, SO WITH THAT, UH, WE HAVE, UH, BAKER, WE RINGS DEBORAH BAKER HERE, AS WELL AS THE SUB CONSULTANT TO THEM, WHICH IS, UH, COROLLA ENGINEERS. AND VICTOR WILL GIVE YOU A OVERALL PRESENTATION ON WHAT THEY, UH, ARE PROPOSING. THANK YOU. STARTLING. GET THIS STARTED. GOOD EVENING. MEMBERS OF THE BOARD, UH, THANK YOU FOR GIVING ME THIS OPPORTUNITY TO PRESENT. I'M CHAIR, UM, I'M SORRY, BERA. THAT'S OKAY. UM, THIS IS ACTUALLY THE NEXT ITEM ON THE AGENDA. UH, IF YOU'D LIKE TO TAKE THEM TOGETHER, YOU CERTAINLY HAVE THAT OPTION. UH, I, I DON'T SEE THAT THIS, WE HAVE, UH, ITEM FOUR A, WHICH IS THE AGREEMENT FOR LEGAL SERVICES. AND THEN ITEM FIVE A IS THE, THIS IS, I'M SORRY, I, I MISSED, IT'S BEEN A LONG WEEK, . THAT'S OKAY. I'M GONNA, I'M GONNA SIT, SIT DOWN AND BE QUIET. HAS A DIFFERENT AGENDA. . SO. ALRIGHT. SO I, I THINK WE'RE GOOD. OKAY. ALRIGHT. PERFECT. UH, THANK YOU. THANK YOU SO MUCH, UH, MEMBERS OF THE BOARD. LET ME GET STARTED. UM, SO FIRST I WANTED TO GO OVER THIS, UH, WHY THIS PROPOSED ALTERNATIVE WATER SUPPLY STUDY IS NEEDED. UH, AND THEN GO THROUGH YOUR CURRENT WATER SUPPLY. WHAT IS, WHAT ARE THOSE OPTIONS CURRENTLY THAT YOU HAVE? AND THEN GO INTO WHAT THE STUDY'S GONNA CONSIDER, WHAT ARE THE CONSIDERATIONS FOR THE STUDY AND THEN THE LEGAL CONSIDERATION ASPECTS OF THE STUDY AS WELL. AND THEN FINALLY END WITH THE ANY QUESTIONS YOU MAY HAVE. SO FIRST, WHY IS THIS, UH, STUDY BEING PROPOSED? UH, THERE ARE SEVERAL REASONS AS YOU CAN SEE LISTED THERE, BUT PRIMARILY IT GIVES YOU AN OPTIONS, GIVES YOU STRATEGIC OPTIONS AND ALTERNATIVES TO SUPPLY WATER TO YOUR, UH, CONSTITUENTS. AND CURRENTLY YOU ARE, YOU, YOU ARE, YOU ARE MAINLY, [00:10:01] UH, RELYING ON CITY OF HOUSTON'S PURCHASE SURFACE WATER. SO GIVE YOU THE STUDY WOULD GIVE YOU A PORTFOLIO OF OPTIONS. WHAT ARE, WHAT ARE THE SUPPLIERS POTENTIALLY OUT THERE, WHAT ARE CERTAIN OPTIONS TO CREATE MORE ADDITIONAL WATER SUPPLIES IN THIS AREA? AND FINALLY ALLOW YOU TO MANAGE AND, UH, THE GROWTH IN THIS AREA BECAUSE AS YOU KNOW, WITH THE GROWTH COMES THE WATER NEEDS. AND SO HOW CAN YOU HAVE THE GROWTH IN THIS AREA WHILE SUPPLYING THAT WATER FOR NOT ONLY THE CURRENT CUSTOMERS BUT ALSO THE FUTURE CONS, UH, CUSTOMERS AT, AT THE END OF THE DAY, YOU WANT TO CONTROL YOUR OWN DESTINY AND NOT JUST RELY ON ONE SOURCE. SO TO ENSURE PREPARATION FOR FUTURE, UH, WE WANTED TO CONSIDER THIS STUDY AND SEE WHAT ALL OPTIONS YOU MAY HAVE AVAILABLE TO YOU. SO GOING OVER WHAT YOUR CURRENT WATER SUPPLY SCENARIO LOOKS LIKE. SO CURRENTLY BAWA PURCHASES WATER FROM CITY OF HOUSTON. UM, THIS, THE PURCHASE WATER FROM CITY OF HOUSTON IS TREATED AT TWO OF YOUR WATER DRINKING WATER FACILITIES. THE MAIN PLANT IN THE EAST PLANT. UH, THE PURCHASE WATER FROM THE CITY IS ALL OF THE WATER THAT BABA CURRENTLY HAS, UH, AND MANAGES. UH, SO THERE ARE SEVERAL CONCERNS AND CHALLENGES ASSOCIATED WITH THAT. UH, YOU DO NOT KNOW WHAT THE CITY OF HOUSTON'S WATER SUPPLY SCENARIO LOOKS LIKE. THERE ARE SEVERAL UNKNOWNS THAT YOU ARE NOT AWARE OF. UH, THERE AS YOU CREATE ADDITIONAL REQUEST TO CITI, THEY MAY OPEN YOUR CONTRACT TERMS, YOU'RE OPENING UP YOUR CONTRACT TO SEVERAL OTHER TERMS THAT YOU CURRENTLY NOT HAVE, RIGHT? SO YOU DON'T KNOW WHAT YOUR RATE MAY LOOK LIKE. YOU DON'T KNOW HOW MUCH SUPPLY THE CITY CAN ACTUALLY PROVIDE YOU BECAUSE C IS ALSO GROWING AND THEIR NEEDS ARE GROWING AS WELL. SO YOU DO NOT KNOW WHAT AMOUNT OF WATER OR HOW MUCH AMOUNT OF WATER IS TRULY AVAILABLE FOR BABA. AND FINALLY, THE CONTRACT TERMS. CURRENTLY YOUR CONTRACT, UH, IS SUCH THAT YOU PAY FOR WHAT YOU TAKE FROM CITY OF HOUSTON. UH, THERE IS A CAVEAT IN THE CURRENT CONTRACT THAT YOU, THE CITY AT FUTURE, ANY AMENDMENTS TO THOSE CONTRACTS. THE CITY MAY CHANGE THAT TO TAKE OR PAY POTENTIALLY WHERE THEY ARE GOING TO MAKE YOU PAY FOR REGARDLESS FOR THE WHOLE AMOUNT, WHETHER YOU TAKE THAT OR NOT. SO, UM, THIS STUDY WOULD PROVIDE YOU THE FLEXIBILITY AND SECURITY TO UNDERSTAND WHAT THOSE, YOUR OPTIONS ARE IN TERMS OF WATER SUPPLY. SO THE STUDY IS GONNA CONSIDER SEVERAL OPTIONS. UM, NAMELY FIRST IS GONNA BE THE A SR, THE AQUIFER STORAGE RECOVERY WHERE YOU TAKE THE TREATED SURFACE WATER OR IT COULD BE REUSED WATER AND YOU STORE IT UNDERGROUND RATHER THAN JUST STORING IN A BASIN, UH, ABOVE GROUND BECAUSE THAT INFRASTRUCTURE ADDS ADDITIONAL COST. SO ALL THAT WATER IS STORED THROUGH GROUNDWATER WELL UNDERGROUND IN AQUIFERS. AND THEN AS THE NEEDS COME UP, AS YOUR DEMANDS COME UP, YOU COULD USE THAT WATER AS NEEDED. UH, WE WOULD ALSO LOOK AT POTENTIALLY PORTABLE REUSED OPTIONS THAT YOU MAY HAVE FROM YOUR WASTEWATER TREATMENT PLANTS. YOU HAVE ALL THE WATER THAT'S BEING DISCHARGED CURRENTLY TO THE CREEK, SO YOU COULD LOOK AT THAT, WHAT, WHAT HAPPENS IF YOU TAKE THAT TREATED WASTEWATER AND TREAT IT FURTHER TO PORTABLE REUSE STANDARDS. UH, WE WOULD ALSO LOOK AT THE SEAWATER D CELL BECAUSE WE ARE SITTING PRETTY CLOSE TO THE BAY. SO SEE WHAT THAT OPTION MAY LOOK LIKE AND WHAT THE COST WOULD LOOK LIKE AS WELL. NOT SURE WHAT HAPPENED. I DID NOT TOUCH ANYTHING. ALRIGHT, UM, ALSO LOOK AT BRACKISH WATER DESAL. UM, HARRIS COUNTY DOES NOT, YOU KNOW, YOU ARE UNDER, UNDER HARRIS COUNTY, YOU ARE REGULATED BY THE SUBSIDENCE DISTRICT. HOWEVER, IN CHAMBERS COUNTY THERE ARE NO SUCH REGULATIONS. SO YOU COULD POTENTIALLY HAVE A CERTAIN BRACKET, WATER DESAL COMPONENT, AT LEAST TAKE A, TAKE A LOOK, A DEEPER DIVE IN IT AND SEE WHETHER IT'S FEASIBLE AND WHAT THE COST WOULD BE. AND THEN FINALLY LOOK AT THE CONVEYANCE AND TREATMENT AND DISTRIBUTION SYSTEM, WHAT IT WOULD LOOK LIKE, UH, IF YOU DID HAVE A SECOND SUPPLY OR ALTERNATE SUPPLY, WHAT THE DISTRIBUTION SYSTEM WOULD LOOK LIKE AND HOW THAT WOULD BE MANAGED AND, UH, IMPLEMENTED. AND AGAIN, THE COST CONSIDERATION FOR THOSE AS WELL. SO ALL THOSE ACTIVITIES ARE GONNA BE PART OF THE STUDY AS WELL. UM, ALL THIS, UH, THE ENTIRE STUDY IS BEING DONE UNDER BAKER WATERING. THEY'RE, THEY'RE THE LEGAL COUNSEL AND DEBRA BAKER IS HERE TO ANSWER ANY LEGAL QUESTIONS. I AM AN ENGINEER AND NOT AN ATTORNEY. UH, BUT THE, THE, THE LEGAL ASPECTS ARE GOING TO BE LOOKING AT THE, UH, WHAT THE REGULATORY PERMITTING CHALLENGES ARE, ESPECIALLY AS IT CONCERNS TO THE BRACKISH D CELL AND THE SEAWATER DESALINATION. UH, YOU, YOU'VE SEEN WHAT'S HAPPENING IN CORPUS, UH, BECAUSE OF THE SEAWATER DE CELL, RIGHT? SO THERE ARE SEVERAL PERMITTING CHALLENGES THAT COME ASSOCIATED WITH A D CELL. SO DEBORAH AND HER TEAM WOULD HELP US, UH, NAVIGATE THROUGH THOSE CHALLENGES. UH, LEGAL ISSUES REGARDING ANY JURISDICTIONAL, UH, ISSUES AS WELL ON [00:15:01] TRANSPORTING WATER FROM ONE AREA TO THE OTHER AND ANY LEGISLATIVE IMPACTS THAT MAY BE, UM, ADDED BECAUSE OF THE ALTERNATE WATER SUPPLY THAT YOU CONSIDER. WHAT ARE THOSE CHALLENGES AND HOW LEGAL COULD ADVISE US TO MOVE FORWARD. SO ALL THOSE, UH, WOULD ALSO BE, AND THAT'S WHY THE STUDY IS ENTIRELY BEING DONE UNDER LEGAL UMBRELLA SO THAT EVERYTHING IS, UH, ONE, IT'S PROTECTED AND YOU HAVE THEIR GUIDANCE AND HOW TO MOVE FORWARD. UH, SHOULD YOU CHOOSE TO. WITH THAT, UH, WE WILL TAKE ANY QUESTIONS THAT YOU MAY HAVE OF US. YEAH, I JUST REMEMBER RECENTLY THAT WE DO HAVE A, A SMALL AMOUNT OF WATER THAT'S GROUND COMING FROM PUMPED UNDERGROUND AT THE OLD PLANT. ISN'T THAT CORRECT? I'LL HAVE TO COMFORT STERLING. NO, THE UM, CURRENT FACILITY DOES NOT STORE WATER UNDERGROUND. WE HAVE NO, NO, I'M NOT SAYING STORE IT. I, I THINK I THOUGHT WE WERE PUMPING WA GROUND WATER. WE'RE, WE'RE NOT PUMPING GROUND WATER. UM, AT BWA, THE CITY OF BAYTOWN DOES HAVE SOME, UM, GROUNDWATER WELLS WITHIN ITS SYSTEM. UM, THE, THE DISTRIBUTION SYSTEM, UM, THAT IS A SMALL AMOUNT. UM, IT, IT'S NOT ENOUGH TO BE ABLE TO SUPPLY THE CITY. NO, NO. RIGHT. BUT I KNEW IT WAS A SMALL AMOUNT. I KNEW WE HAD SOME YEAH, IT'S, IT'S A LITTLE OVER 2 MILLION, UH, IS THE CAPACITY THERE? YEAH. OKAY. ALRIGHT. DOES ANYONE ELSE HAVE A QUESTION OR IS THERE ANY IDEA OF THE SCOPE, LIKE OF HOW LONG THAT KIND OF PROJECT WOULD TAKE TO DO THE WHOLE REVIEW? YEAH, WE, WE CURRENTLY ARE ESTIMATING ABOUT NINE TO 12 MONTHS, UH, FOR THE ENTIRE, UH, STUDY TO GET COMPLETED. OF COURSE WE WOULD COME AND GIVE YOU UPDATES AS IT'S GOING IN PROGRESS AS WELL. AND THEN I ALSO NOTICED, YOU KNOW, IT SAID IN THE CONTRACT UP TO A CERTAIN AMOUNT OR SHOULD NOT BE ANY MORE THAN A CERTAIN AMOUNT. DO Y'ALL HAVE ANY IDEA WHAT THE ACTUAL COST OF IT IS? UM, RIGHT NOW WE ARE HAVE ESTIMATED, UM, SO THAT COST ALSO INCLUDES A TEST WELL BECAUSE WE ARE PLANNING TO DRILL A TEST WELL, UM, AND SEE HOW MUCH, UH, WHAT THE QUA WATER QUALITY IS TO UNDERSTAND THE D CELL, THE BRACKET DESAL COMPONENT OF IT. UM, SO THE, WE HAVE ESTIMATED ABOUT $250,000 FOR THE, THE TEST WELL AS WELL. AND THEN THE STUDY IS ABOUT $500,000. UM, AND THE LEGAL COMPONENT IS ABOUT, I THINK WE PUT IN THE LINE ITEM THAT NOT TO EXCEED A MILLION, BUT BETWEEN THE 8 75 TO A MILLION WOULD BE THE RANGE FOR THE TECHNICAL WORK AND THEN THE LEGAL. RIGHT. SO THE TEST WALL COULD BE A DIFFERENT NUMBER THAN WHAT, THAT'S FINE. IT SAYS A HUNDRED MILLION IN, IN WHAT WE'RE READING. THAT'S WHY I OH NO, NO, NO, NO. IT'S NOT A HUNDRED MILLION. THANK YOU FOR UH, MENTIONING THAT. YES, NO PROBLEM BECAUSE I DON'T THINK WE WANNA SIGN THAT. HOW DEEP A WELL ARE YOU LOOKING AT IF IT'S 250,000? UM, WE WERE LOOKING AT THE APO FOR, I BELIEVE IT'S ABOUT, UM, I CAN GET IT 50 TO 60 FEET DEEP, UM, AT A MINIMUM. UH, SO IT'S FAIRLY DEEP. THAT'S THE BRACKISH ONE. THAT'S A REALLY SHALLOW WELL 'CAUSE NORMALLY YOU GO THREE TO 400 FEET MINIMUM. YEAH. SO FOR FRESH DRINKING WATER, THIS? YEAH. SO THIS ONE'S FOR JUST BRACKISH BECAUSE THAT'S WHAT YOU, THAT'S PLENTY ABUNDANT UH, BRACKISH SUPPLY AND YOU COULD DO THAT OUT OF CHAMBERS COUNTY AND NOT HARRIS COUNTY. OKAY. ANY ADDITIONAL QUESTIONS? YES, I DIDN'T SEE THAT. VERY GOOD. ALRIGHT, UM, ANYONE ELSE HAVE QUESTIONS? THANK YOU VERY MUCH. OF COURSE. THANK YOU. UM, SO, UH, WE ARE PREPARED TO TAKE ACTION ON THIS RESOLUTION. IF WE HAVE A MOTION TO APPROVE, I'LL MAKE THE MOTION. I'LL SECOND I HAVE A MOTION AND A SECOND QUESTIONS OR FURTHER DISCUSSION. HEARING NONE. UM, I WOULD ASK FOR THE VOTE WITH THE CAVEAT THAT THE UH, DOLLAR AMOUNT IS REDUCED FROM 100 MILLION TO 1 MILLION AND BOARD, I CAN ASSURE YOU THAT THE RESOLUTION SAYS 1 MILLION. IT DOES NOT SAY $100 MILLION. RIGHT. VERY GOOD. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED LIKE SIGN MOTION CARRIES UNANIMOUSLY. THANK YOU VERY MUCH. WE'D PROBABLY HAVE A LOT OF PUBLIC COMMENT IF WE LEFT IT. UM, NOW WE WILL RECEIVE A REPORT [a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.] ON THE STATUS OF THE AUTHORITIES EAST EXPANSION PROJECT. ALRIGHT, GOOD EVENING BOARD. UM, AS I MENTIONED LAST MONTH, I THINK WE GET TO THE FUN PART WHERE I GET TO SHOW Y ALL FUN PICTURES OF THE STATUS OF THE CONSTRUCTION. UH, WE GAVE THE NOTICE TO PROCEED MID-APRIL. SO WHAT I'M SHOWING YOU IS BASICALLY WHAT'S BEEN HAPPENING IN MAY OUT THERE. UM, LIKE I SAID, REALLY THEY GOT STARTED SO THEY COMPLETED THE [00:20:01] CONSTRUCTION LAY DOWN AREA. WE NOW HAVE UH, THE TRAILERS, THE CONSTRUCTION TRAILERS ON SITE. THEY WERE ABLE TO INSTALL THE TEMPORARY POWER FOR ALL OF THEIR EQUIPMENT. AND THE BIG THING THAT THEY GOT STARTED ON WAS THE S SLUDGE LAGOON. AND THE PICTURES I HAVE UP THERE IS SHOWING YOU THE EXCAVATION OF THE S SLUDGE LAGOON AND THEN THAT KIND OF SMALL AREA IN THE MIDDLE IS OF THE TRAILERS AND SUCH. SO AS WE GET A LITTLE FURTHER ON WEATHER PERMITTING, YOU KNOW, OF COURSE, UH, I'LL BE BRINGING MORE OF THOSE PHOTOS. THEY ALSO ARE FLYING A DRONE, UM, ON HERE ON A WEEKLY BASIS. SO I'M GONNA SEE HOW I CAN BREAK SOME OF THOSE DRONE VIDEOS TO Y'ALL IN THE FUTURE MEETINGS AS WELL. SO, SO WE'RE EXCITED THEY'RE OUT THERE. THEY'RE ON SITE OPERATION. STAFF HAS ALSO BEEN VERY HAPPY WITH HOW THEY'VE BEEN COORDINATING WITH THEM ON SITE AS WELL. SO THIS IS THE PROJECT BUDGET I MENTIONED THAT I'M GONNA START BRINGING TO Y'ALL EVERY MONTH AS WELL. NOT A HUGE CHANGE FROM WHAT Y'ALL SAW, UM, LAST MONTH, BUT WE'RE WITHIN BUDGET TO DATE SO EVERYTHING IS GOING GOOD. AND THIS IS THE LAST SLIDE I HAVE FOR YOU THIS MONTH. UM, AS I'VE MENTIONED IN PREVIOUS MONTH WE DID EXPECT A BIT OF AN EXTENSION TO THE SCHEDULE BECAUSE THE NOTICE TO PROCEED WAS DELAYED FOR THREE MONTHS. WE'VE BEEN WORKING WITH BWP ON THAT EXACT AMOUNT AND I SHOULD HAVE THAT TO REPORT TO YOU NEXT MONTH. SO THANK YOU. DOES ANYONE HAVE A QUESTION? ALRIGHT, THANK YOU VERY MUCH. THANK YOU. UM, THAT WOULD BRING US TO THE [a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, July 15, 2026, at 5:00 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ] MANAGER'S REPORT. WELL, THANK YOU MA'AM. UM, JUST ONE THING, STERLING, STERLING WANTED ME TO POINT OUT THAT FOR FOUR A, UH, WE ARE PURSUING GRANT FUNDING FOR THAT PROJECT. SO IF THAT DOES COME THROUGH, THAT WILL BE A HUNDRED PERCENT FUNDED FOR THAT PROJECT. UM, SO YOU KNOW, PLEASE KNOW THAT STAFF IS WORKING ON TRYING TO REDUCE OUR EXPENSES WHEN IT COMES TO THESE, UH, PROJECTS. AND THEN THE NEXT THING I HAVE IS OUR NEXT MEETING IS JULY 15TH AT FIVE O'CLOCK, UH, IN THESE COUNCIL CHAMBERS. ALRIGHT, JULY 15TH. ALRIGHT, THANK YOU. UM, AS THERE'S NO FURTHER BUSINESS ON OUR AGENDA, I'D ENTERTAIN A MOTION TO ADJOURN. I MOVE TO ADJOURN. SECOND. ALL IN FAVOR? AYE. THANK YOU VERY MUCH. WE'LL SEE YOU IN JULY. * 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.