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SO THE BRUSHY CREEK REGIONAL UTILITY
[BCRUA Board of Directors Meeting]
AUTHORITY BOARD OF DIRECTORS MEETING TODAY IS WEDNESDAY, OCTOBER 20TH, 2021.AND WE'LL GET STARTED WITH ROLL CALL PRESIDENT THOMPSON, PRESENT VICE PRESIDENT DUFFY HERE, SECRETARY FLORES, DIRECTOR ANDERSON HERE, DIRECTOR OF KIRKLAND, DR.
WE'LL GET STARTED WITH OUR AGENDA AS FOLLOWS ITEM ONE.
WE'VE ALREADY CALLED OUR MEETING TO ORDER ITEM TWO.
WE'VE DONE OUR ROLL CALL ON ITEM THREE.
DO WE HAVE ANY CITIZEN COMMENTS? NOT TONIGHT.
ITEM FOUR IS APPROVAL OF THE MINUTES.
CONSIDER APPROVAL OF THE BCR UA MEETING MINUTES FOR SEPTEMBER 22ND, 2021.
THE MOTION CARRIES ITEM FIVE, ITEM FIVE, VAGUE.
CONSIDER A RESOLUTION AUTHORIZING THE PRESIDENT TO EXECUTE SUPPLEMENTAL AGREEMENT.
NUMBER 11 FOR THE BCR UA PHASE TWO, UH, RAW WATER DELIVERY SYSTEM BID PHASE SERVICES WITH WALKER WALKER PARTNERS AND FREESE AND NICHOLS JOINT VENTURE.
THANK YOU, MADAM PRESIDENT OF TO PRESENT THIS ITEM, WE HAVE AARON ARCHER HERE FROM WALKER PARTNERS.
GOOD EVENING, THE SUPPLEMENTAL AMENDMENT FOR BID PHASE SERVICES THAT YOU HAVE AS SOON AS THE USE OF COMPETITIVE SEAL PROPOSAL OR CSP PROCUREMENT, WHICH HAD PREVIOUSLY BEEN AUTHORIZED BY THIS BOARD.
CSP IS GOING TO ALLOW US TO EVALUATE NOT JUST COSTS WHEN WE LOOK AT THESE CONTRACTOR PROPOSALS, BUT WE CAN ALSO LOOK AT QUALIFICATIONS TO RESULT IN A BEST VALUE SELECTION, UH, IN THIS PROCESS, NOT JUST A LOW COST SELECTION, THE GIVEN THE SIZE OF THE PROJECT, THE COMPLEXITY OF THE PROJECT AND THE STEPS REQUIRED TO GO THROUGH A CSP EVALUATION.
THE SCHEDULE FOR BID PHASE SERVICES IS ESTIMATED TO BE SEVEN MONTHS, WHICH IS A LITTLE BIT LONGER THAN YOU WOULD TYPICALLY SEE FOR THESE TYPE OF PROJECTS, WHICH WOULD TAKE US FROM ADVERTISEMENT, WHICH IS SCHEDULED FOR THE BEGINNING OF NOVEMBER ALL THE WAY TO THE AWARD AND NOTICE TO PROCEED FOR THE CONTRACTOR.
WE'LL HAVE THE QUALIFICATIONS, THE CONTRACTORS SUBMIT TO US QUALIFICATIONS, EXPERIENCE THEIR PROJECT APPROACH AND UNDERSTANDING.
AND IT'S INHERENTLY DIFFICULT WHEN YOU PUT TOGETHER A BID PHASE SERVICES PROPOSAL TO ESTIMATE THE LEVEL OF EFFORT THAT WILL BE INVOLVED.
WE DON'T KNOW AT THIS POINT, HOW MANY CONTRACTORS WILL PROPOSE ON THE PROJECT? THE CONTRACTORS WILL ALSO HAVE THE OPPORTUNITY TO SUBMIT, UH, ALTERNATE PROPOSALS, WHICH WE WOULD THEN NEED TO EVALUATE.
IS IT THE DESIGN TEAM BECAUSE THEY'RE PROPOSING ALTERNATIVES IN CONSTRUCTION THAT WERE NOT IN THE CONTRACT DOCUMENTS.
SO THAT LEVEL OF EFFORT FOR US AT THIS POINT IS AN UNKNOWN.
AS WE MOVE THROUGH THE EVALUATION OF THOSE PROPOSALS FROM CONTRACTORS, THERE'S ALSO OPPORTUNITIES FOR ADDITIONAL MEETINGS TO GAIN BETTER UNDERSTANDING OF THEIR PROPOSAL AND NEGOTIATION BEFORE WE END UP WITH AN AWARD.
SO WE HAVE GIVEN SOME OF THE UNKNOWNS IN THE BID PHASE SERVICES EFFORT, PUT THAT TOGETHER AS A TIME AND MATERIALS COMPENSATION WITH THE NOT TO EXCEED LIMIT ANY FUNDS NOT USED IN THIS PARTICULAR AUTHORIZATION WOULD THEN ROLL FORWARD INTO THE CONSTRUCTION PHASE SERVICES, EFFORT QUESTIONS, QUESTION.
UM, YOU SAID THE, UM, IT WOULD GO OUT INTO NOVEMBER, BEGINNING, NOVEMBER, NOVEMBER, WE'RE SCHEDULED TO TRY TO GO OUT AT THE BEGINNING OF NOVEMBER CONTINGENT ON THE TEXAS WATER DEVELOPMENT BOARD, APPROVING THOSE CONTRACT DOCUMENTS.
SO RIGHT NOW WE'RE JUST WAITING ON THEM.
AND THEN THAT WINDOW FOR ALL BIDS TO BE RECEIVED IS IAN IS GWEN.
THE END OF FEBRUARY IS WHAT WE HAVE SCHEDULED.
ASSUMING THAT WE GET TO ADVERTISE ON TIME AND PER OUR SCHEDULE AND THIS, UH, SIZE OF PROJECT.
I MEAN, IT SEEMS LIKE A GOOD SIZED PROJECT TO ME, BUT I MEAN, IS THAT GOING NOW? DO YOU THINK WE'RE GOING TO GET A LOT OF INTEREST IN FROM NOT JUST TEXAS, BUT OTHER PARTS OF THE COUNTRY? I, I ABSOLUTELY BELIEVE WE WILL CONTRACT OR OUTREACH.
THERE'S BEEN A MAJOR EFFORT AS WE'VE BEEN GOING THROUGH DESIGN PHASE FOR THE LAST COUPLE OF YEARS, THERE IS A LOT OF CONTRACTOR ENTRUST.
WE'VE DONE QUITE A FEW PRESENTATIONS AT LARGE NATIONAL CONFERENCES TO MAKE SURE THAT CONTRACTORS UNDERSTAND WHAT THE PROJECT IS AND WHAT OUR SCHEDULE IS.
UM, SO I DO BELIEVE IT'S GOING TO GARNER A GOOD AMOUNT OF ATTENTION.
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OR QUESTIONS? UH, JUST ONE COMMENT AS A CONSULTANT TO MYSELF, HE PUTS TOGETHER THE PROPOSALS.THIS IS A SUBSTANTIAL SUM OF MONEY FOR, UH, BID PHASE SERVICES.
UM, BUT I ALSO UNDERSTAND WHAT YOU'VE EXPLAINED ABOUT THE PROJECT UNCERTAINTY.
IT'S CERTAINLY VERY CONSERVATIVE, BUT, UH, AND IF THIS WAS A LUMP SUM CONTRACT, I'M, I MIGHT, UH, BE MORE CONCERNED ABOUT IT, BUT GIVEN HIS TIME AND MATERIALS AND IT'S GOING TO ROLL OVER IT, IT'S IT MAKES, YOU KNOW, IT DOESN'T MAKE ME UNCOMFORTABLE.
ALL RIGHT, MAN, DO I HAVE A MOTION TO APPROVE THE RESOLUTION? OKAY.
WE'LL MOVE ON TO FIVE B, CONSIDER A RESOLUTION BY THE BOARD OF DIRECTORS OF THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY, INC.
AUTHORIZING THE ISSUANCE OF BRUSHY CREEK REGIONAL UTILITY AUTHORITY, INC CITY OF LEANDER, TEXAS CONTRACT REVENUE, BONDS, BRUSHY CREEK, REGIONAL WATER TREATMENT AND DISTRIBUTION PROJECT SERIES 2021, ESTABLISHING THE PROCEDURES FOR SELLING AND DELIVERING THE BONDS AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE PAYMENT, SECURITY SALE AND DELIVERY OF SUCH BONDS.
THANK YOU, MADAM PRESIDENT, WE HAVE HERE TODAY, OUR DCR UAS MUNICIPAL ADVISER, GARY KIMBALL FROM S P F I TO PRESENT THIS ITEM.
UH, YOU SHOULD EACH HAVE IN FRONT OF YOU A COPY OF THE TRANSACTION SUMMARY THAT I'D LIKE TO WALK YOU THROUGH.
IF I MAY, AND THIS, UH, THESE REMARKS WILL COVER BOTH, UH, FIVE B AND FIVE C, BUT THEN YOU CAN ACT INDEPENDENTLY ON EACH ITEM.
THE GRAPH ON THE FRONT IS A REFLECTION OF WHERE RATES WERE WHEN RATES WERE LOCKED ON THE TEXAS WATER DEVELOPMENT BOARD BONDS THAT WERE SOLD TO, UH, FUND THE BOND ISSUES THAT WE'RE CONSIDERING TONIGHT.
SO, UH, THE IMPORTANCE OF THIS IS THAT, YOU KNOW, YOU CAN SEE THAT OBVIOUSLY WE'RE VERY NEAR THE HISTORICAL BOTTOM.
IF YOU LOOK UP IN THE, UH, LITTLE METRICS BOX UNDER THE GEO COLUMN, UH, PERCENT OF TIME, UH, RATES WERE HIGHER THAN THEY WERE WHEN THESE BONDS WERE PRICED WAS ALMOST 90%, 95%.
SO WE'RE IN THE BOTTOM 5% OF OUR HISTORICAL EXPERIENCE, UH, IN TERMS OF THE RATES THAT ARE BEING PASSED ALONG TO BOTH OF THESE CITIES, UH, JUST AS AN ASIDE, UH, PRINTED OUT TODAY'S VERSION OF THIS GRAPH.
AND THAT SAME METRIC IS AT, UH, 88%.
SO, UH, THE BOND MARKET HAS MOVED UP SHARPLY.
UH, SINCE THESE BONDS WERE PRICED, YOU'RE GOING TO GET THE BENEFIT OF THE LOWER RATES THAT WERE PREVAILING A MONTH AGO.
UH, SO THAT'S IMPORTANT IF YOU'LL TURN THE PAGE.
WHAT I'D LIKE TO DO IS WALK YOU THROUGH, UH, THE KEY METRICS FOR EACH OF THE TRANSACTIONS THAT YOU'LL BE TAKING ACTION ON, UH, TONIGHT, UH, UH, FOR CEDAR PARK AND LEANDRA RESPECTIVELY, WE'RE TALKING ABOUT 75.3, $1 MILLION WORTH OF BONDS FOR CEDAR PARK, $40 MILLION, EVEN FOR LEANDER, THE NET PROCEEDS, UH, ARE THERE, UM, 74.9, 8 MILLION FOR CEDAR PARK, 39.859 MILLION FOR LEANDER, THE TERMS ARE DIFFERENT.
UH, ONE OF THE NICE FEATURES OF BEING ABLE TO SELL SEPARATE OBLIGATIONS IS THAT WE CAN TAILOR THE AMORTIZATION TO EACH CITY'S NEEDS AND CEDAR PARK CHOSE A 30 YEAR TERM, WHEREAS LEANDER CHOSE A 25 YEAR TERM.
UM, THE SUBSIDIES ARE DIFFERENT BASED ON THE TERM THAT IS CHOSEN.
UH, SO THE STATE OF TEXAS, UH, FOR THIS PARTICULAR PROGRAM UNDER THE TEXAS WATER DEVELOPMENT BOARD, DOES OFFER A SUBSIDY FOR THE INTEREST RATE.
UH, THE CEDAR PARK SUBSIDY IS 14% BELOW MARKET AND THE LEANDER SUBSIDY BECAUSE IT'S SHORTER TERM IS 18% BELOW MARKET, WHICH THEN REFLECTS ITSELF IN THE RATES THAT WERE FINALLY LOCKED IN A CEDAR PARKS RATE IS 2.2, 2%.
AND IF YOU NOTICED ON THAT FIRST PAGE, CURRENT MARKET IS 2.5%.
UM, SO THAT'S BELOW MARKET, BUT THEN THE LEANDER DEAL BECAUSE OF THE HIGHER SUBSIDY IS 1.8, 9%.
WE'RE ANTICIPATING FUNDING CLOSING THESE DEALS ON NOVEMBER THE 16TH.
UH, AND, UH, YOU HAVE REPRESENTATIVES FROM, UH, BOTH MCCALL, PARKERS AND HORTON, AND BICKERSTAFF HEATH, UH, BOND ATTORNEYS.
IF YOU SHOULD HAVE ANY QUESTIONS ABOUT THE LEGALS ON THIS, BUT THESE OBLIGATIONS WOULD BE IDENTICAL TO THOSE THAT THE, UH, AUTHORITY HAS ALREADY UNDERTAKEN WITH THE WATER DEVELOPMENT BOARD PREVIOUSLY.
AND WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT ANYONE MIGHT HAVE
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ANY QUESTIONS OR COMMENTS FROM THE BOY.SO I KNOW WE'RE AT HISTORIC LOWS, BUT IN THE FUTURE, IF PRICES WENT LOWER, IS THERE A CHANCE TO REFUND IT? IT'S JUST THAT YOU HAVE A TEN-YEAR CALL PROVISION, UH, THAT, THAT THE WATERBOARD REQUIRES ON ALL OF THEIR DEALS.
SO NOT FOR A PERIOD OF 10 YEARS, WE'RE ALL IN TROUBLE IF IT GOES LOWER, BUT, UH, YEAH, THEY'RE, THEY'RE BIGGER PROBLEMS PROBABLY.
I HAVE A MOTION TO APPROVE SUBMIT.
ALRIGHT, MOVING ON TO ITEM FIVE C, CONSIDER A RESOLUTION BY THE BOARD OF DIRECTORS OF THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY, INC.
AUTHORIZING THE ISSUANCE OF RASHID CREEK, REGIONAL UTILITY AUTHORITY, CITY OF CEDAR PARK, TEXAS CONTRACT REVENUE, BONDS, RASHID CREEK, REGIONAL WATER TREATMENT AND DISTRIBUTION PROJECT SERIES 2021, ESTABLISHING THE PROCEDURES FOR SELLING AND DELIVERING THE BOMBS AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE PAYMENT, SECURITY SALE, AND DELIVERY OF SUCH VIOLENCE.
UM, I MAKE A MOTION TO APPROVE THIS ITEM SECOND.
AND NOW WE ARE GOING TO MOVE INTO EXECUTIVE SESSION, UM, SIX, EIGHT TO CONSIDER AN EXECUTIVE SESSION AS ARTHRITIS BY 5 5, 1 0.07.
ONE OF THE GOVERNMENT CODE RELATED TO THE CONSULTATION WITH THE BOARD ATTORNEYS REGARDING THE REPAIR OF THE BCR UA, 36 INCH UNDERWATER PIPELINE AND POTENTIAL CLAIMS. MAYBE 60 ALSO CONSIDER AN EXECUTIVE SESSION AS ARTHRITIS BY FIVE, FIVE, AND 1.07.
ONE OF THE GOVERNMENT CODE RELATED TO THE CONSULTATION WITH THE BOARD ATTORNEYS REGARDING THE PROPOSED INTER LOCAL AGREEMENT WITH THE VILLAGE OF LENTE.
IT IS NOW SIX 16, AND WE WILL CONVENE INTO EXECUTIVE SESSION AND WE'RE BACK IN SESSION.
THE TIME NOW IS 7:05 PM AND FOUR AGENDA ITEMS, SEVEN EIGHT.
I MOVE THAT THE BOARD AUTHORIZED THE GENERAL MANAGER TO REQUEST THE BOARD ATTORNEYS TO SUBMIT A CLAIM REGARDING THE UNDERWATER PIPELINE REPAIRS.
SECOND, THANK YOU ALL IN FAVOR.
ANY OPPOSED? THE MOTION CARRIES AND FOUR SEVEN B I MOVE THAT THE BOARD APPROVED THE RESOLUTION, AUTHORIZING THE PRESIDENT TO EXECUTE THE INTER-LOCAL AGREEMENT WITH THE VILLAGE OF A LENTE.
ALL THOSE IN FAVOR, SAY AYE, AYE.
ANY OPPOSED THE MOTION CARRIES.
WE ARE ON TO OUR CLOSING COMMENTS FOR TONIGHT.
UH, VICE-PRESIDENT DUFFY IMPOSING.
THANK YOU TO KAREN AND AARON AND ALL THE CITY STAFF, EVERYONE CONTINUING TO WORKING ON THIS.
WE'RE GOING TO GET THERE AND, UM, NOT FINGERS WILL BE CRUSHED FOR THURSDAY NIGHT NEXT THURSDAY, I GUESS.
RIGHT? SECONDARY FORCE, UH, THANKS TO THE OSI AS WELL, AND CERTAINLY WANT TO EXTEND OUR APPRECIATION AND THANKS TO THE CITY OF ATLANTA FOR HELPING US GET TO THIS POINT.
UH, IT HAS BEEN A TIME ON BOTH SIDES SPENT, BUT HOPEFULLY, UH, SOMETHING THAT WILL SERVE, UM, BOTH INTEREST WELL INTO THE FUTURE.
AND GOOD NIGHT DIRECTOR ANDERSON.
AND JUST LIKE SAY HOW GREAT IT IS TO SEE THINGS MOVING IN THE RIGHT DIRECTION AND LOOKING LIKE WE'RE GETTING TRACTION.
THANK YOU EVERYBODY FOR A PRODUCTIVE MEETING.
ALL OF THE STAFF WORKING SO HARD TO SUPPORT ALL THREE OF US.
THANK YOU EVERYONE FOR ALL THE HARD WORK.
IT'S IT'S BEEN A LONG TIME COMING AND HOPEFULLY WE'RE ALMOST THERE AND WE'LL GET THIS IMPROVED.
AND THAT IS ALL WE HAVE FOR TONIGHT.