[BCRUA Board of Directors Meeting]
[00:00:05]
JASON ANDERSON, DIRECTOR MATTHEW BAKER, DIRECTOR AND MALE KIRKLAND DIRECTOR HERE.
AND WE WILL MOVE FORWARD WITH CITIZEN COMMUNICATION.
DO WE HAVE ANY AT THIS TIME? NO, MA'AM.
ITEM FOUR A, CONSIDER APPROVAL OF THE B-C-R-U-A MEETING MINUTES FROM JULY 24TH, 2024.
WE HAVE A MOTION AND A SECOND.
ANY OPPOSED? ALRIGHT, THE MOTION CARRIES.
WE'LL MOVE OVER TO ITEM FIVE A.
CONSIDER A RESOLUTION ACCEPTING THE B-C-R-U-A QUARTERLY INVESTMENT REPORT FOR APRIL 1ST, 2024 THROUGH JUNE 30TH, 2024.
THANK YOU, MADAM PRESIDENT, MEMBERS OF THE BOARD.
UM, AS YOU KNOW, THE B-C-R-U-A HAS MANY BUCKETS, BUT I WON'T GO INTO ALL THOSE, UH, BUCKETS.
SO FOCUS ON PAGE 10 OF THE INVESTMENT REPORT.
UM, CASH AND INVESTMENTS ENDING FOR THE QUARTER JUNE 30TH WE'RE $114,397,000.
THAT'S A DECREASE OF 5.1 MILLION FROM THE PREVIOUS QUARTER, AND THAT IS THE, THE DIFFERENCE BETWEEN EARNINGS ON THE INVESTMENTS VERSUS OR MINUS, UH, EXPENDITURES FOR THE, THE QUARTER.
UM, EARNINGS ON THE INVESTMENT PORTFOLIO WERE 1,000,270, UH, FIVE, BUT OF THAT, UH, 952,000 IS ACTUAL CASH.
THE OTHER DIFFERENCE IS, UH, THE MARKET ACCRUAL OF THE IN INVESTMENT.
SO, UH, THAT'S STILL PRETTY GOOD, CLOSE TO A MILLION DOLLARS FOR THE QUARTER.
UH, THE YIELD FOR THE QUARTER ON THE INVESTMENTS WAS 5.29%.
THAT COMPARES TO 4.96 THE LAST QUARTER.
UH, THE WEIGHTED AVERAGE MATURITY, THE WHAM UH, WAS 26 DAYS, AND THAT'S DOWN FROM, UH, 47 DAYS FOR THE PRIOR QUARTER.
SINCE THE, UH, QUARTER ENDED IN JUNE 30TH, UH, HAD THREE INVESTMENTS MATURE IN AUGUST, UH, ALL RELATED TO CEDAR PARK CONSTRUCTION FUNDS.
THOSE WERE ALL INVESTED IN SHORT TERM COMMERCIAL PAPER AND, UH, UH, CEDAR PARK STAFF, UM, UH, REINVESTED THOSE, UM, UH, FUNDS RECENTLY, AGAIN IN COMMERCIAL PAPER, PUTTING IT OUT TO APRIL AND MAY OF 2025.
I'M HAPPY TO ANSWER ANY QUESTIONS.
ANY QUESTIONS OR CONCERNS? NO.
THIS IS A MOTION ITEM I MOVE TO APPROVE
ALRIGHT, WE GOT A MOTION AND A SECOND.
ALRIGHT, WE'LL MOVE TO ITEM FIVE B.
CONSIDER A RESOLUTION APPROVING THE FINANCING AGREEMENT BETWEEN THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY INC.
AND THE TEXAS WATER DEVELOPMENT BOARD AND OTHER MATTERS IN CONNECTION THEREWITH RELATING TO THE SALE OF 31,500,000 BRUSHY CREEK REGIONAL UTILITY AUTHORITY INC.
CITY OF ROUND ROCK, TEXAS CONTRACT REVENUE BONDS.
PROPOSED SERIES 2024, BRI CREEK, RUA REGIONAL WATER TREATMENT AND DISTRIBUTION PROJECT.
THIS, UH, IS ONE OF TWO ITEMS TONIGHT, OUR TWO FINANCIAL AGREEMENTS FOR THE LATEST WITH TAKE DOWN FOR THE DCR A PROJECT.
THIS ONE IS FOR, UH, FOR THE CITY OF BROWN ROCK.
AND AS MS. NICOLE SAYS, IT'S THE $31,500,000 IS THE SECOND TAKE DOWN IN, IN A THREE TAKE DOWN OF THREE TRANCHE, UH, SWIFT DEAL WITH THE WATER DEVELOPMENT BOARD AND, UH, IN THE FUNDS FOR THIS PROJECT ARE, THE FUNDS FROM THIS TAKE DOWN WILL BE USED FOR WHAT PRETTY MUCH THE FUNDS FOR HARVEST TAKES DOWN HAVE BEEN.
AND IT'S FOR THE, UH, BASICALLY LATELY IT'S MAINLY PHASE TWO OF THE DEEP WATER INTAKE PLUS SOME OF THE WATER TREATMENT PLANT CONSTRUCTION HAVE GOING ON, LIKE PHASE ONE B.
IS MY MIC ON? DID I PRESS THE BUTTON? YEAH, I DIDN'T HAVE A MIC.
SO, YEAH, THIS, THIS, THIS MONEY'S BEING USED FOR CONTINUATION OF THE THE B-C-R-U-A PROJECTS, UH, WHICH ALL ARE GOING WELL.
AND, UH, WITH THAT, I'M, I'M GONNA TURN IT OVER TO RICHARD DONAHUE WITH
[00:05:01]
MCCALL PARKER TON HORTON, WHO'S ROUND ROCK'S, UH, BOND COUNSEL TO, TO, UH, COMPLETE THE PRESENTATION.UH, FOR THE RECORD, I'M RICHARD DONAHUE WITH MCCALL PARKERSON HORTON SERVICE BOND COUNSEL TO B-C-R-U-A FOR THE ROUND ROCK TRANSACTION.
UH, THE ITEM BEFORE YOU IS A RESOLUTION APPROVING A FINANCING AGREEMENT WITH TEXAS WATER DEVELOPMENT BOARD.
THE, THE WATER DEVELOPMENT BOARD IS GONNA GO INTO THE MARKET AND SELL BONDS THROUGH THE SWF PROGRAM.
AND THAT, AND THE CREDIT FOR THESE, THOSE, THOSE BONDS IS GONNA BE THE REPAYMENTS THEY RECEIVE FROM THE LOANS THEY MAKE.
SO IN ORDER TO GET COMFORTABLE THAT THEY CAN SIZE THEIR BONDS, THEY NEED A COMMITMENT, A BINDING OBLIGATION FROM THE PEOPLE WHO ARE GONNA BORROW BONDS FROM THEM, THAT BORROW MONEY FROM THEM THROUGH BONDS THAT THEY'RE GOING TO FOLLOW THROUGH AND ACTUALLY ISSUE THE BONDS.
THAT'S WHAT THIS FINANCING AGREEMENT IS.
THIS IS B C'S COMMITMENT TO SUBSEQUENTLY ISSUE THE BONDS, UH, TO THAT THE WATER DEVELOPMENT WILL BE BUYING.
SO WE'RE NOT ISSUING OUR BONDS TONIGHT, BUT WE ARE ESSENTIALLY COMMITTING OURSELVES TO DO, TO DO SO AND SO THAT THE AGREEMENT HAS SOME OFF RAMPS.
UH, IF YOU'VE GOT UP UNTIL 14 DAYS BEFORE THE WATER DEVELOPMENT AWARD ACTUALLY PRICES THEIR BONDS TO TERMINATE FOR ANY REASON AND NOT INCUR A PENALTY.
AND THE PENALTIES DO ESCALATE PRETTY STIFFLY AFTER THAT.
'CAUSE THE WATER DEVELOPMENT AWARD WILL HAVE GONE OUT AND SOLD BONDS SO THAT IT'S POTENTIALLY UP TO A $1.7 MILLION IF YOU WERE TO TERMINATE AFTER THE WATERFRONT AWARD SOLVES THEIR BONDS.
I DON'T THINK ANYONE HAS ANY EXPECTATIONS TO DO THAT, BUT THIS IS, THAT'S PART OF WHAT WE'RE DOING HERE THOUGH, IS, IS MAKING A COMMITMENT TO MOVE FORWARD WITH THE FINANCING.
AND THIS IS AGREEMENTS IN SIMILAR FORM THAT YOU GUYS HAVE HAVE APPROVED FOR THE PRIOR SWERVE TRANSACTIONS.
UM, AND THERE'LL BE A SEPARATE, UH, ONE, THEN THE NEXT ITEM IS ALSO THE SIMILAR AGREEMENT, UH, WITH REGARD TO THE CITY OF LEANER V-C-R-U-E TRANSACTION.
AND THAT'S AT A HIGH LEVEL THAT, THAT, THAT'S WHAT THE AGREEMENT SAYS.
IT'S BEEN REVIEWED BY, UH, MYSELF AND, AND, UH, YOUR ATTORNEY FOR, UH, LEANER TRANSACTION GREGORY MILLER.
IT'S ALSO AVAILABLE FOR QUESTIONS ON THE LEANER PIECE, BUT, UH, IF THERE ARE ANY QUESTIONS, I'M HAPPY TO GO THROUGH 'EM AND ANSWER 'EM AT THIS TIME.
THE CITY OF ROUND ROCK, UH, APPROVED THE, UH, FINANCING AGREEMENTS, UH, LAST WEEK AND I KNOW LEANDER IS ALSO APPROVED AS WELL PREVIOUSLY.
THANK YOU FOR THAT ADDITIONAL EXPLANATION.
UH, THEY'LL BE PRICING THEM IN IN OH YES, IN AUGUST, IN SEPTEMBER.
AND THEN THEY'LL BE CLOSING ON THEM IN EARLY OCTOBER.
AND WE TENTATIVELY, I THINK IT'S TENTATIVE, BUT IT'S PROBABLY PRETTY FIRM.
WE, UH, WILL BE ADOPTING THE BOND RESOLUTIONS FOR BOTH OF THESE, UH, ISSUES.
THE ROUND ROCK AND LEANDER IN AT OUR, UH, AT OUR OCTOBER 23RD MEETING.
AND WITH THAT, WE CAN, UH, MOVE ON TO THE NEXT ROUND OF SWIFT PROJECTS.
SECRETARY FOR JUST A QUESTION.
'CAUSE UM, JUST CAUGHT MY CURIOSITY.
SO WITH REGARDS TO THE PLEDGING THAT WE'RE GOING TO DO THE BONDS, AND THEN HE SAID IF WE DIDN'T DO THE BONDS, THERE'S THIS, YOU KNOW, PENALTY IF YOU WILL.
SO WOULD THAT PENALTY BE AGAINST THE CITY OF ROUND ROCK OR AGAINST THE BOARD BECAUSE AS A BOARD WE'RE DOING THIS ACTION? YEAH, IT, IT, IT WOULD FLOW THROUGH B-C-R-U-A 'CAUSE B-C-R-U-A IS THE ISSUER OF THE BONDS AND, AND THE ONE WHO HAS TO CONTRACTUALLY OBLIGATE ITSELF THROUGH THE FINANCING AGREEMENT WITH WATER BELT BOARD TO ISSUE THE BONDS.
SO, AND THEN IT WOULD HAVE TO BE SETTLED UP, WOULD GO AGAINST THE CITY, THE BOARD THAT WOULD FLOW THROUGH THE MASTER CONTRACT.
ALRIGHT, WELL THIS IS THE ACTION ITEM I MOVE TO APPROVE.
WE HAVE A MOTION AND A SECOND.
ANY OPPOSED? ALRIGHT, THE MOTION CARRIES.
CONSIDER A RESOLUTION OF APPROVING THE FINANCING AGREEMENT BETWEEN THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY INC.
AND THE TEXAS WATER DEVELOPMENT BOARD AND OTHER MATTERS IN CONNECTION THEREWITH RELATING TO THE SALE OF $39,090,000.
BRUSHY CREEK REGIONAL UTILITY AUTHORITY, INC.
CITY OF LEANDER, TEXAS CONTRACT REVENUE BONDS PROPOSED SERIES 2024, RUSHIE CREEK, RUA REGIONAL WATER TREATMENT AND DISTRIBUTION PROJECT.
AND THIS, THIS ITEM IS VERY SIMILAR TO THE PREVIOUS ONE.
SAME TYPE OF FINANCING AGREEMENT, UH, SAME FORMAT.
AND THIS IS LEANER LAST TAKE DOWN OF A 2020 OF A SWIFT COMMITMENT OR LOAN, IF YOU WILL, UH, APPROVED IN 2021.
AND, AND IT HAS THE SAME SCHEDULE GOING FORWARD, ASSUMING IT'S APPROVED, UH, WE'LL HOPEFULLY BE BACK IN, IN OCTOBER FOR THE, UH, BOARD, UH, TO, TO ADOPT THE BOND RESOLUTIONS.
AND WITH THAT I'M GONNA INTRODUCE GREGORY MILLER WITH BICKERSTAFF HEATH.
[00:10:01]
UH, BOND COUNCIL FOR LINK CITY OF, I'M SORRY.BOND COUNCIL FOR CITY OF LEAN.
UH, GOOD EVENING, UH, MADAM PRESIDENT BOARD.
UM, BETWEEN MR. ROBERTS AND RICHARD, UH, I DON'T REALLY HAVE MUCH TO ADD UNFORTUNATELY, BUT, UM, I'M HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
UM, AS NOTED, THIS IS LEAN'S THIRD AND FINAL, UM, INSTALLMENT OF THE $119 MILLION COMMITMENT.
UM, WE DID 40 AND AND 21, 40 AND 22.
AND SO HERE WE ARE, UM, WITH THIS, UM, YEAH, AND I, I, I REALLY DON'T HAVE MUCH TO ADD TO THAT, UM, EXCEPT FOR WE WILL BE WORKING WITH THE CITY OF LANDER AT THE NEXT STEP THAT WE WILL HAVE IS TO HAVE THE CITY COUNCIL APPROVE THE WATER, UH, BCR UAS ISSUANCE OF BONDS.
SO WE ANTICIPATE PROBABLY DOING THAT IN THE WEEK BEFORE YOU ACTUALLY AUTHORIZE THE BONDS, UM, IN THE MIDDLE PART OF OCTOBER.
UM, I DO HAVE A COUPLE OF DOCUMENTS FOR SIGNATURE BEFORE I LEAVE HERE, UM, FOR THE MR. SECRETARY AND THE GENERAL MANAGER.
UM, ANY QUESTIONS I, I'D BE GLAD TO ASK.
SO JUST WITH THE, UH, ANTICIPATED FED RATE REDUCTION, HOW'S THAT GONNA IMPACT THIS OR THE OTHER ITEM IN GENERAL? IF YOU, IF YOU HAD A CRYSTAL BALL.
THAT'S TYPICALLY THE, UH, FINANCIAL ADVISOR THING, BUT I'D LOVE TO TALK ABOUT THINGS LIKE THAT.
UM, WE'VE SEEN RATES GOING DOWN, UH, BUT I DON'T WANNA SAY PRECIPITOUSLY, BUT IT, IT WAS WEIRD LIKE OVER THE LAST WEEK THINGS JUST WENT, UH, MARKEDLY LOWER.
UM, SO, UM, I DO KNOW THAT THE WATER BOARD ENJOYS, UH, LOW RATES AS IT IS, BUT THEY ARE AFFECTED BY THE BROADER CHANGES IN THE MARKET.
SO I THINK, YOU KNOW, THAT KIND OF RAISES THE POINT.
I MEAN, I THINK THE TIMING OF THIS IS, IS MM-HMM,
BUT THAT'S JUST ME TALKING, SO, UH, DON'T, OH, WE HAVEN'T ON RECORD SAYING THAT
WE BE GOOD? YEAH, I'M NOT ALWAYS RIGHT.
AS THIS IS, UH, UH, ACTION ITEM, I'LL MAKE A MOTION TO APPROVE.
ALRIGHT, WE HAVE A MOTION AND A SECOND.
ANY OPPOSED? ALRIGHT, WE'LL MOVE ON TO FIVE D.
CONSIDER A RESOLUTION AUTHORIZING THE BOARD PRESIDENT TO EXECUTE CHANGE ORDER NUMBER ONE WITH THE SAK JOINT.
SAK, SORRY, JOINT VENTURE FOR PHASE TWO RAW WATER DELIVERY SYSTEM.
THIS IS THE FIRST CHANGE ORDER FOR THAT PROJECT, WHICH HAS BEEN UNDERWAY NOW FOR A LITTLE OVER TWO YEARS.
AND IT, UH, THE TOTAL AMOUNT OF IT IS $237,000, $237,172 AND 36 CENTS.
UM, AND THERE'S, THERE'S, UH, IT'S MADE UP OF SIX ITEMS AND I'LL JUST, I'LL GO THROUGH 'EM PRETTY QUICKLY.
UM, THE FIRST ONE IS, IS IT'S A DUCK BANK.
IT'S A RELOCATION OF A BIG TRENCH THAT HAS ELECTRICAL, UH, LINES IN IT IN, UH, TRAILS IN ROAD BECAUSE WE HAD TO MOVE IT 'CAUSE IT WAS IN THE WAY.
UM, THERE'S ANOTHER ONE WHERE, AND THESE ARE TWO BIG ONES FOR, UH, FOR C OR THIS NEXT ONE.
NUMBER TWO, IT'S IN YOUR PACKET.
IT'S A REALLY GOOD, UH, CHANGE ORDER, A GOOD BE, UH, AN IMPORTANT ONE.
AND THAT IS, UH, PROVISIONS TO CONNECT THE, THE NEW GENERATORS THAT THEY HAVE AT THEIR, UH, WATER TREATMENT PLANT, UH, TO THE PUMPS THAT ARE IN THE DEEP WATER INTAKE THAT WILL PUMP WATER THE RAW WATER OVER TO, UH, SHORT DISTANCE FROM THE PUMP STATION TO, TO THE CEDAR PARK PLANT.
AND, UH, AND THAT, AND THAT AMOUNT IS $209,417 AND 37 CENTS.
AND THE NEXT ONE IS REPAIR OF SOME DAMAGE TO LIME CREEK ROAD.
THAT WAS PRETTY MUCH UNAVOIDABLY CAUSED BY, UH, HAULING OF VERY LARGE GENERATORS OUT TO THE, THE PLANT.
AND IT KIND OF SCRAPED UP THE ASPHALT.
AND SO, UH, SINCE WE ALREADY HAD THE, THE BCRU, THE S-A-L-S-A-K WAS ALREADY DOING ROAD WORK AND WE JUST ADDED THAT TO, TO THAT PROJECT.
AND THEN THERE'S A, A, A SMALL REDUCTION, A DEDUCT FOR REDUCING SOME FACTORY TESTING OF, OF THE, OF THE, OF THE, UH, SUBMERSIBLE PUMPS IN THE PUMP STATION, WHICH ACTUALLY I HAD A LOT OF QUESTIONS ABOUT.
AND THE ENGINEERS, UH, SCRUTINIZED THE, THE REQUEST TO REDUCE THE HOURS OF TESTING AND, AND ASSURED US THAT IT WAS MORE THAN APPROPRIATE.
AND, AND SO WE, WE FEEL COMFORTABLE WITH THAT AND IT'S A LITTLE BIT OF SAVINGS.
UH, AND THEN NUMBER FIVE IS THERE'S A $42,000, UM,
[00:15:01]
OHYEAH, IT'S, IT'S OUR SHARE OF 50% OF THE DRB, WHICH IS THE DISPUTE RESOLUTION BOARD.
I DON'T KNOW IF Y'ALL PROBABLY REMEMBER THAT.
THAT WAS EVEN BEFORE MY TIME, BUT NOW I'M, I'M GETTING TO ENJOY SITTING IN ON THE MEETINGS EVERY THREE MONTHS, WHICH IS ACTUALLY, UH, SURPRISINGLY EFFECTIVE.
AND HAVING THESE THREE GENTLEMEN THAT THEY COME FROM DIFFERENT PLACES AROUND THE COUNTRY THAT HAVE, AND THEY HAVE DIFFERENT EXPERTISE AND, UH, THEY'RE REALLY GOOD.
AND WE, WE SPEND LIKE FOUR HOURS, UH, TALKING ABOUT EVERYTHING YOU CAN IMAGINE.
AND, AND SO THE PROCESS IS REALLY EFFECTIVE IN PREVENTING, UH, WHAT COULD BE THORNY CONTRACTUAL ISSUES.
SO, ANYHOW, THAT OUR, OUR, OUR SHARE FOR THE, I THINK IT'S THE FIRST QUARTER, UH, IS $42,668.
AND THEN LASTLY, THERE'S A THING, AND SOMEHOW I DIDN'T GET THE NUMBER IN HERE.
I GUESS IT SOMEHOW DIDN'T SLIP OFF MY KEYBOARD.
UH, IT'S A, IT'S, IT'S A, UH, IT'S CALLED A SET OFF.
AND IT'S WHERE ANYTIME THE CONTRACTOR, UH, IF IF, IF WE, IF THEY CAUSE ADDITIONAL TESTING TO OCCUR BECAUSE WE ASK FOR IT, BECAUSE WE SEE SOME, SOME VALID REASON FOR IT, THEY HAVE TO PAY FOR THAT.
AND BASICALLY THEY HAVE TO REIMBURSE US.
AND, AND THAT AMOUNT IS $37,000, $298, 37,298.
AND IT'S JUST A, IT'S A FAIRLY ROUTINE, UH, SET OFF.
'CAUSE WE SPEND, YOU KNOW, HUNDREDS OF THOUSANDS OF DOLLARS ON TESTING AND BASICALLY THEY'RE GONNA PAY US BACK FOR SOME OF THE TESTING THAT, THAT THEY REALLY SHOULD PAY FOR.
UM, SO OTHER THAN THAT, THE, THE, THE, THE, UM, THE TOTAL CHANGE ORDER IS 2 37 1 72, UH, INCREASES THE, UH, TOTAL CONTRACT PRICE TO $225,024,007.
UM, AND, UH, WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS.
DO WE HAVE ANY QUESTIONS OR CONCERNS? AND JUST TO CONFIRM, THE 200 200, THE 237,000 AND CHANGE IS WITHIN THE CONTINGENCY, SO OH, ABSOLUTELY.
AND THEN CEDAR PARK'S GONNA PAY FOR THEIR, THEIR PORTION OF IT.
ALRIGHT, WE HAVE A MOTION AND A SECOND.
ANY OPPOSED? ALL RIGHT, THE MOTION CARRIES.
AND WE WOULD MOVE ON TO ITEM SIX, WHICH IS OUR DIRECTOR OF CLOSING COMMENTS.
AND WE WILL START TO MY LEFT WITH, UM, DIRECTOR KIRKLAND.
JUST, UH, THANK YOU EVERYBODY.
AND ALSO JUST WANTED TO MENTION THAT, UM, THE ROUND ROCK CITY COUNCIL LAST MEETING, WE, UH, APPOINTED HILDA MONTGOMERY AS THE NEW CITIZEN DIRECTOR TO THE BOARD AND SHE WILL BE JOINING US NEXT MEETING.
SHE HAD, UH, PRIOR COMMITMENTS THIS WEEK, BUT, UM, HILDA MONTGOMERY WILL BE JOINING US AND WE, AND WE DO APPRECIATE, UH, MATT BAKER'S SERVICE AND, UH, ALL HIS TIME AND EFFORT.
AND WITH THAT, WE WILL, UH, ADJOURN OUR MEETING AT 6:23 PM.