[BCRUA Board of Directors Meeting]
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AUGUST 26TH, 2026 MEETING OF THE BCC. ARE YOU A BOARD? AND WE DO A ROLL CALL. KATELYN.
JUAREZ HERE. PRESENT. SECRETARY ANN DUFFY HERE. DIRECTOR. RICHARD CHAPLIN HERE. DIRECTOR.
HENRY. MONTGOMERY HERE. DIRECTOR. ALEXIS. PROGRESS HERE. THANK YOU. AND WELCOME TO DIRECTOR FOR OUR FIRST MEETING. BUT WE'RE GLAD TO HAVE YOU HERE. SO. LOTS OF GOOD STUFF. LOTS OF GOOD STUFF TO HAPPEN. ITEM THREE CITIZEN COMMUNICATION. ANY CITIZEN WISHING TO SPEAK TO CITIZEN COMMUNICATIONS REGARDING ITEM ON OR OFF THE AGENDA MAY DO SO AFTER COMPLETING THE REQUIRED REGISTRATION CARD. ALL COMMENTS MUST BE NO MORE THAN THREE MINUTES IN ACCORDANCE WITH BOARD POLICY. WE HAVE ONE SPEAKER, SO. OH, AND TILLY, PLEASE COME ON UP. OKAY, EVERYONE. I'M I'M I'M FROM COUNTRY CHRISTIAN SCHOOL OF AUSTIN. AND I JUST WANTED TO SAY I'M EXCITED TO BE HERE AND TO OBSERVE THE MEETING. THANK YOU. AWESOME. WELL, THANK YOU FOR BEING HERE TONIGHT. I'LL TAKE US TO THE APPROVAL OF MINUTES FOR A. CONSIDER APPROVAL OF THE MEETING MINUTES FOR FROM JUNE 24TH, 2026. I MOVE TO APPROVE. SECOND. I HAVE A MOTION FROM DIRECTOR DUFFY. SECOND FROM SECRETARY DUFFY, SECOND. SECOND FROM VICE PRESIDENT THOMPSON. ALL IN FAVOR, SAY AYE. AYE. ANY OPPOSED? THAT PASSES. THANK YOU. STAFF REPORTS FIVE A CONSIDER A STATUS UPDATE FROM THE GENERAL MANAGER REGARDING BCR. UA CAPITAL PROJECTS. SAM. MR. AARON ARCHER WITH WATER PARTNERS IS HERE TO PRESENT THE UPDATE ON THE PROJECTS THIS MONTH. AWESOME. WELL, MR. WALKER. NOT REALLY WALKING. I'M GOING TO BE REALLY GLAD TO GET RID OF THESE CRUTCHES. ALRIGHT, WONDERFUL. MY NAME IS AARON ARCHER WITH WALKER PARTNERS, AND I WAS CHECKING BACK, I THINK THE LAST TIME THAT I HAD A CHANCE TO GIVE AN UPDATE ON CAPITAL PROJECTS NOW WAS ALMOST NINE MONTHS AGO. SO LOOKING FORWARD TO CATCHING YOU GUYS UP ON SOME OF THE PROJECTS UNDERWAY. I'VE NARROWED DOWN OUR LIST TO REALLY THE TWO MAIN PROJECTS STILL UNDER CONSTRUCTION. WE HAVE SOME CLEANUP ACTIVITY STILL GOING IN PHASE ONE B AND DELIVERY POINTS, BUT I DIDN'T THINK THEY WERE WORTH COMMITTING SLIDES TO BECAUSE THEY'RE REALLY IN CLOSEOUT PHASE. BUT WE DO HAVE A LOT OF ONGOING WORK HAPPENING, BOTH ON THE PHASE TWO RAW WATER DELIVERY SYSTEM AND THE PHASE TWO, A WATER PLANT EXPANSION. SO STARTING WITH THE PHASE TWO RAW WATER DELIVERY SYSTEM PROJECT, OUR CONTRACTOR THERE IS THEY'LL SAKA FOLDER, A JOINT VENTURE BETWEEN THOSE TWO ENTITIES. AND WE HAVE JUST GONE PAST NOW THE FOUR YEAR MARK IN CONSTRUCTION NTP WAS ISSUED BACK IN SUMMER OF 2022. SO ON A SCHEDULED BASIS, OUR SUBSTANTIAL COMPLETION DATE FOR THIS PROJECT IS FEBRUARY OF 2027. SO WE'RE ABOUT 90% OF THE WAY THROUGH ON A, ON A TIME BASIS FOR THIS PROJECT. ON A COST BASIS, THE STORY IS A LITTLE BIT DIFFERENT AND NOT TRACKING AT THAT SAME PERCENTAGE, WE'RE AT 68% OR ROUGHLY $153 MILLION OF OUR $225 MILLION CONSTRUCTION CONTRACT, WHICH HAS BEEN BUILT TO DATE. AND AS I WRAP UP ON PHASE TWO, I'M GOING TO PROVIDE SOME MORE COMMENTARY ON THAT.
I'M STILL SITTING, AS WE HAVE FOR SOME TIME NOW, ON ONE CHANGE ORDER THAT WAS TRIGGERED RELATIVELY EARLY IN PHASE TWO TO MAKE SOME CONNECTIONS FROM GENERATORS THAT HAD BEEN INSTALLED AT CEDAR PARKS PLANT, WHICH THEY BROUGHT ONLINE WHILE WE WERE UNDER CONSTRUCTION ON PHASE TWO AND TIED THEM INTO THE PHASE TWO PROJECT. SO SOME UPDATES ON WORK COMPLETE. YOU GUYS HAVE HEARD ME TALK MANY TIMES OVER THE YEARS ABOUT THE PUMP SHAFTS. WE HAVE SIX INDIVIDUAL VERY DEEP, ABOUT 300 FOOT DEEP SHAFTS THAT SIX PUMPS WILL ULTIMATELY BE SET IN. AND THEY'VE BEEN UNDER SOME PHASE OF CONSTRUCTION NOW FOR YEARS. I AM HAPPY TO REPORT THAT THE PUMP SHAFTS ARE COMPLETELY FINISHED AT THIS TIME. THEY'VE DONE THE INTERNAL LININGS.
THEY'VE TRIMMED AND CUT THE TOPS TO THEIR FINAL, TO THEIR FINAL ELEVATIONS. AND SO WE CONSIDER THE PUMP SHAFTS TO BE A WORK THAT IS NOW COMPLETE. YOU'LL SEE IN THE PHOTO HERE TO A NEW FEATURE ON THE SITE, THE CONTRACTOR, THROUGH SOME SIGNIFICANT EFFORT, WAS ABLE TO
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ERECT A TOWER CRANE TO FACILITATE CONSTRUCTION OF THE PUMP STATION BUILDING, WHICH REQUIRED SOME COORDINATION WITH TRAVIS COUNTY. TO REDUCE THIS TEMPORARILY DOWN TO ONE LANE ON LIME CREEK ROAD. AND I THINK THIS IS GREATLY GOING TO FACILITATE THE BUILDING AS IT CONTINUES TO GO VERTICAL. THE CONTRACTOR IS CONTINUING WORK ON THE FOUNDATION AND ALSO ON THE WALLS OF THIS BUILDING. JUMPING OVER TO THE MAINTENANCE BUILDING. THIS DEFINITELY LOOKS A LOT DIFFERENT FROM THE LAST TIME WE TALKED ABOUT IT. THIS LOCATION IS IN THE VILLAGE OF VALENTE. TO TREAT AND PREVENT INFESTATION OF MUSSELS IN THE RAW WATER DELIVERY SYSTEM. THE ELECTRICAL CONTROL AND CHEMICAL FEED PORTIONS OF THE BUILDING HAVE NOW BEEN ENCLOSED. A ROOF HAS BEEN SET AND THE LARGE STORAGE TANKS HAVE ALSO BEEN SET, SO THE CONTRACTORS CONTINUING WORK ON THE BUILDING EXTERIOR AND THE VENEER, AND WORKING THROUGH ELECTRICAL WORK AT THIS TIME. BUT A LOT OF PROGRESS AT THIS LOCATION. AND THEN LASTLY, THE CONTRACTOR HAS BEEN PUTTING A LOT OF TIME AND ENERGY INTO PREPARING FOR THEIR FINAL MARINE MOBILIZATION. NO MARINE WORK HAS OCCURRED ON THE LAKE NOW FOR A COUPLE OF YEARS. AFTER THEY COMPLETED THE INSTALLATION OF THE RISER PIPES IN THE LAKE BED. BUT IN SEPTEMBER, THEY'LL COME BACK OUT AND THEY'LL PUT TOGETHER A NEW WORKING FLOTILLA, AND THEY'LL GO OUT TO THE INTAKE AND HANG THE FLOW CONTROL VALVES IN THE SCREENS ON THE INTAKE STRUCTURE. AND THEN WHEN THAT WORK IS COMPLETED, THEY'LL USE THE PIPING THAT WAS PUT IN PLACE ORIGINALLY TO WATER UP THE TUNNEL. WE WATERING UP THE TUNNEL IS REALLY NOT A FLOOD. IT'S GOING TO BE VERY SLOW AS WATER FILLS THE TUNNELING SYSTEM. BUT WE ARE AT THE POINT NOW WHERE THE TUNNEL IS DONE AND IT'S TIME TO FILL IT WITH WATER. SO THAT WORK WILL HAPPEN STARTING IN SEPTEMBER. THIS IS A PHOTOGRAPH AT THE END OF TRAIL'S END ROAD. PRIOR TO THE LAKE COMING UP THIS SUMMER, THEY HAD A VERY LARGE WORKING AREA. NOW THEY HAVE A VERY, VERY TINY WORKING AREA. THEY RELOCATED SOME OF THEIR MATERIAL AND EQUIPMENT THAT HAD BEEN STORED AT THIS LOCATION, AND STARTED CONSTRUCTION OF A TEMPORARY CRANE PAD TO FACILITATE THE INSTALLATION OF THAT FLOTILLA WITH FLEXIBLE PONTOONS. THEY CALL THEM FLEXI FLOATS, BUT THEY'RE LARGE METAL PONTOONS. SO I WANT TO GO BACK NOW AND TALK ABOUT SCHEDULE STATUS. WE'VE BEEN REPORTING FOR SOME TIME NOW THAT THE CONTRACTORS BEHIND SCHEDULE THAT HAS TRIGGERED A LETTER WRITING CAMPAIGN WHERE WE SENT A NUMBER OF LETTERS TO THE EXECUTIVE TEAM OF THE CONTRACTOR EXPRESSING OUR CONCERNS. RIGHT NOW, BASED ON OUR EVALUATION, WE ESTIMATE THE CONTRACTORS SOMEWHERE IN THE NEIGHBORHOOD OF AT LEAST 8 TO 12 MONTHS BEHIND SCHEDULE. AND SO THEY HAVE CONTINUED TO SLIP. THEIR SCHEDULES DO NOT REFLECT THE SAME DELAY, BUT I BELIEVE WE WE AT THIS TIME HAVE A MORE ACCURATE UNDERSTANDING OF WHERE THE CONTRACTOR IS AND HOW FAR THEY'RE BEHIND SCHEDULE. A LETTER WAS ONCE AGAIN RECENTLY SENT OUT, ACTUALLY, I BELIEVE YESTERDAY TO THE CONTRACTOR CONTINUING TO EXPRESS OUR CONCERNS, CONTINUING TO DEMAND THAT THEY BRING ON APPROPRIATE RESOURCES TO GET THE PROJECT BACK ON SCHEDULE. AND WE'RE AWAITING A RESPONSE FROM THEM AT THIS TIME. IN THE MEANTIME, WE DO OUR WE ARE FULLY STAFFED OUT THERE WITH OUR TEAM THAT IS OBSERVING CONSTRUCTION. THEY CONTINUE TO PROVIDE CRITICAL QUALITY ASSURANCE FUNCTIONS TO MAKE SURE THAT WHAT IS BEING BUILT IS BEING BUILT. PER THE CONTRACT DOCUMENTS. SUPERVISING THAT PROCESS AND OBSERVING WHAT WHAT THE WORK THAT'S GOING INTO PLACE AND CONVERSATIONS ARE ONGOING. I WILL SAY THE CONTRACTOR HAS MADE SOME STEPS ON THE STAFFING SIDE TO BRING SOME QUALIFIED STAFF OUT THERE, BUT IT'S JUST NOT SUFFICIENT STAFF TO CATCH THE PROJECT UP FROM DELAYS THAT WERE EXPERIENCED A COUPLE OF YEARS AGO. AND BEFORE I JUMP TO PHASE TWO, IF THERE'S ANY QUESTIONS ON PHASE TWO, THIS MIGHT BE A GOOD TIME TO ANSWER THEM BEFORE GOING INTO THE. ANY QUESTIONS FOR AARON? I HAVE ONE QUESTION.SO WE'RE SURE THAT IT'S JUST STAFFING ISSUES THAT ARE CAUSING THEIR DELAY, NOT OTHER OTHER THINGS. I THINK IT'S PRIMARILY A FUNCTION OF STAFFING. I THINK THEY'RE SHORT IN THE FIELD AND IN THE OFFICE. OKAY. THEY CONTINUE. I THINK BECAUSE IT'S BOTH THERE'S OCCASIONS WHERE THEY'RE NOT COORDINATING THEIR WORK IN A TIMELY MANNER. SO THEY EXPERIENCE DELAYS AND A DELAY OF A DAY HERE AND THERE CONTINUES TO ADD UP. THEY DID HAVE ONE ITEM THAT OUR FIELD TEAM OBSERVED A COUPLE OF MONTHS AGO THAT REQUIRED THEM TO TEAR OUT SOME WORK THEY HAD INSTALLED AND REDO IT, AND THEY LOST SIGNIFICANT TIME IN THE MATTER OF WEEKS ON THAT EXERCISE AS WELL. THANK YOU. ANY OTHER QUESTIONS? ALL RIGHT.
OKAY. JUMPING TO PHASE TWO. A THIS PLANT EXPANSION WILL INCREASE THE CAPACITY OF THE PLANT FROM ABOUT 42 MILLION GALLONS PER DAY UP TO A LITTLE BIT OVER 64 MILLION GALLONS PER
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DAY. THE CONTRACTOR IS WEBER WATER WORKS. THEY GOT AN NTP IN DECEMBER OF LAST YEAR. THEIR CURRENT CONTRACTUAL SUBSTANTIAL COMPLETION IS SUMMER OF 28. SO THEY'RE ABOUT A QUARTER OF THE WAY THROUGH ON A TIME BASIS. AND THEN ON A COST BASIS, THERE ARE ABOUT 18% COMPLETE, HAVING BUILT A LITTLE BIT OVER 17 MILLION OF THEIR $98 MILLION CONTRACT. IN TERMS OF WORK PROGRESS. THE FIRST THING I WANT TO TALK ABOUT, IF YOU LOOK TO THE LEFT OF THE EXISTING TREATMENT STRUCTURE, YOU'LL SEE A LARGE EXCAVATION THERE. AND THAT EXCAVATION IS FOR A NEW TREATMENT STRUCTURE, WHICH WOULD LOOK SIMILAR TO WHAT YOU SEE IN THE MIDDLE OF THE PHOTOGRAPH WITH NEW BASIN. SO IT'S A VERY LARGE FOOTPRINT THAT THEY'RE EXCAVATING. AS THEY STARTED THAT EXCAVATION, THEY LOCATED AN AREA WITHIN THAT BASIN FOOTPRINT THAT HAD NON-NATIVE MATERIALS FILL MATERIALS, INCLUDING VERY LARGE BOULDERS AND LOOSE SOIL. AND I WANT TO COME BACK AND TELL YOU MORE ABOUT THAT IN A MINUTE. BUT AT THIS POINT, THEY HAVE THEY HAVE BEEN REQUIRED BY OUR DESIGN TEAM TO EXCAVATE OUT THAT MATERIAL. WE CAN'T BUILD ON TOP OF IT. SO THERE ARE SOME OVER EXCAVATION THAT THEY HAVE COMPLETED TO REMOVE THAT NON-NATIVE MATERIAL, THAT OLD FILL MATERIAL. SO THAT'S A STORY I'LL COME BACK TO IN A COUPLE OF SLIDES. THEY'VE ALSO BEEN WORKING ON EXPANDING THE DISINFECTION BASIN. THIS WAS A CRITICAL EARLY WORK ITEM BECAUSE THEY NEED TO GET THIS WORK DONE IN ORDER TO MAKE A TIE IN IN WINTER MONTHS DURING THIS WINTER, WHICH WILL ALLOW US TO SHUT DOWN THIS BASIN WITHOUT IMPACTING PRODUCTION AT THE PLANT. SO WHEN THEY TOOK THIS CONTRACT ON, THEY KNEW THAT THIS HAD TO BE DONE AND READY FOR THEM TO MAKE A TIE IN THIS SUMMER. I MEAN, PARDON ME, THIS WINTER. AND THEY'RE ON THEY'RE ON SCHEDULE WITH THAT. THEY'VE COMPLETED ALL OF THE WALL WORK AND MOST OF THE ROOF IS COMPLETE. SO I'M HAPPY TO REPORT THAT THEY GOT AFTER THAT ONE WORK ELEMENT, WHICH WAS CRITICAL FOR THEM TO GET DONE THIS WINTER. AND THEN LASTLY, YOU CAN SEE HERE A VERY LARGE EXCAVATION FOR THE 6 MILLION GALLON CLEAR. WELL, THE NEW CLEAR WELL ADJACENT TO OUR EXISTING 4 MILLION GALLON CLEAR. WELL, THIS IS A PARTIALLY BURIED CLEAR WELL, SO THERE'S A LOT OF EXCAVATION THAT NEEDED TO BE DONE. AND RIGHT NOW THEY'RE ABOUT 75% OF THE OF THE WAY COMPLETE ON THAT EXCAVATION. SO I WANT TO GO BACK NOW AND TALK ABOUT THAT NON-NATIVE FILL. YOU CAN SEE IN THE UPPER PHOTOGRAPH A, A LARGER, DEEPER AREA WHERE THAT EXCAVATION OCCURRED. WE DID GEOTECHNICAL TESTING OUT THERE. SOME OF THAT WAS PERFORMED ALL THE WAY BACK IN THE ORIGINAL PLAN EXPANSION. WE PERFORMED ADDITIONAL GEOTECH BORINGS. BUT THIS IS ONE OF THOSE THINGS WHERE YOU'RE JUST STABBING LITTLE HOLES IN THE GROUND AND GETTING ENOUGH INFORMATION TO COMPLETE YOUR DESIGN, AND NO HOLE HAPPENED TO GO THROUGH THAT AREA THAT WAS EXCAVATED AS NON-NATIVE FILL WHEN THEY STARTED TO ENCOUNTER THESE LARGE BOULDERS IN THAT AREA THAT WERE DIFFERENT THAN ALL THE SURROUNDING ROCK, WE WENT BACK AND STARTED LOOKING THROUGH AERIAL PHOTOGRAPHS TO SEE WHAT WHAT IS THE STORY FROM THIS LOCATION? IN WHATEVER USE HAD BEEN IN HISTORY, DONE AT THIS PARTICULAR LOCATION DOES NOT SHOW UP IN AERIAL PHOTOS. IT PREDATES ANY AERIAL IMAGERY. OTHERWISE, I THINK IF IT WAS IN AERIAL IMAGERY, IT WOULD HAVE BEEN FLAGGED AND IDENTIFIED. WHEN. BE SURE YOU A PURCHASED THIS SITE BACK IN 2008 AND DID THEIR STANDARD DUE DILIGENCE ON THE ENVIRONMENTAL SIDE. SO THIS WAS SOMETHING THAT THERE WAS NO RECORD OF IN AERIAL PHOTOGRAPHY OR ENVIRONMENTAL STUDIES DATING BACK NOW ABOUT 20 YEARS BEFORE. UPON ENCOUNTERING IT, THOUGH, WE WORKED WITH OUR ENGINEERING TEAM TO DETERMINE WHAT THE LIMITS OF THAT EXCAVATION SHOULD BE SO THEY COULD REMOVE THAT MATERIAL AND THEN REPLACE IT WITH FILL. AND SO THAT HAS BEEN COMPLETED, BUT AT NO SMALL EFFORT WITH THAT WORK NOW BASICALLY COMPLETE, WE'RE TRACKING WE STARTED TRACKING DAILY COSTS ESSENTIALLY FOR THE CONTRACTOR TO DO THAT WORK. AND THEY'RE SITTING AT ABOUT $400,000, GIVE OR TAKE, FOR THAT ADDITIONAL EXCAVATION. IT ALSO IS CRITICAL PATH WORK. SO THIS THIS PROJECT SCHEDULE RUNS THROUGH THIS BASIN AS THE PRIMARY STRUCTURE ON THE ON THE SITE. AND SO WE WILL BE WORKING WITH THE CONTRACTOR, BUT THERE'LL BE A TIME IMPACT ON THIS AS WELL. AND RIGHT NOW, WITHOUT HAVING SAT AT THE TABLE AND STARTED RECONCILING ALL THAT, I'D PUT THAT ROUGHLY AT ABOUT FOUR MONTHS. BUT WE'LL NEED TO HAVE THAT CONVERSATION WITH THEM AS WELL. ULTIMATELY, THAT'LL TRIGGER A CHANGE ORDER THAT WILL COME BACK TO YOU. I WOULD I WOULD LIKE TO ADD THAT THE CONTRACTOR WEBER HAS HAS DONE AN EXCELLENT JOB IN IN EXPEDITING THIS PRETTY LARGE SCALE WORK. AND, AND THEIR SUBCONTRACTOR, RANGER EXCAVATION, WHICH I THINK WE ALL KNOW HAS A LOT OF A LOT OF BIG EQUIPMENT HAS BEEN GETTING AFTER IT. THERE WAS ABSOLUTELY NO SANDBAGGING. THEY WERE GETTING THAT DONE AS QUICKLY AS THEY CAN. THAT'S THAT'S GENERALLY WHAT LARGE CIVIL FIRMS LIKE THAT DO. THEY THEY[00:15:04]
GO AND THEY PULL ROCK OUT. ANY OTHER QUESTIONS FOR AARON? NO. HOW DEEP DID YOU HAVE TO EXCAVATE TO GET ALL THAT NON-NATIVE MATERIAL OUT? I THINK THAT THEY ENDED UP 8 TO 10FT BELOW WHAT WE NEEDED TO GET THAT MATERIAL OUT. AND THEN THEY HAD TO PULL THE ROCKS OUT, AND THEN THEY HAD TO BREAK THE ROCKS DOWN IN ORDER TO GET THEM OUT OF THERE. SO BUT IT WAS ONLY IN THAT PARTICULAR AREA THAT YOU FOUND IT ONLY IN THAT ONE AREA. THERE IS SOME CUTTING AND SCARRING THERE THAT LOOK LIKE MAYBE A LONG TIME AGO, SOMEONE HAD REMOVED SOME ROCK.I DON'T LIKE THE TERM QUARRY WOULDN'T BE AN APPROPRIATE TERM, BUT THEY HAD REMOVED SOME ROCK FOR OTHER PURPOSES. AND THEN IT LOOKED LIKE MAYBE THEY JUST DEPOSITED THEM BACK IN WHEN THEY WERE DONE. INTERESTING. ALL RIGHT. THERE'S NO OTHER QUESTIONS. THANK YOU SIR. THANK YOU. THAT'LL TAKE US TO RESOLUTION SIX A CONSIDER RESOLUTION ACCEPTING THE VC RUA QUARTERLY INVESTMENT REPORT FOR APRIL 1ST, 2026 THROUGH JUNE 30TH, 2026. GOOD AFTERNOON, BOARD MEMBERS. MY NAME IS OTIS WILLIAMS. I AM THE CHIEF FINANCIAL OFFICER FOR THE CITY OF LEANDER, AND I'M HERE TO PRESENT TO YOU THE THIRD QUARTER INVESTMENT REPORT FOR BCRA. SO LET ME TALK A LITTLE BIT ABOUT THE ECONOMIC CONDITIONS. SO DURING THE THIRD QUARTER, THE QUARTER DISPLAYED A VERY STRONG REGIONAL GROWTH, SHIFTING EXPECTATIONS TOWARDS TIGHTER MONETARY CONDITIONS. FEDERAL RESERVE OUTLOOK THE MARKET FUTURE INDICATES ABOUT A 2.5 QUARTER POINT CUT BY DECEMBER OF THIS YEAR. HOWEVER, PERSISTENT ECONOMIC INDICATORS BY THE END OF JUNE PROJECTED THE FEDERAL RESERVE WILL HIKE INTEREST RATES LATER THIS YEAR.
THE GROSS DOMESTIC PRODUCT GROWTH WAS REVISED UPWARDS BY 1.6% TO 2.1%, AND THAT'S BASICALLY DRIVEN BY HIGHER BUSINESS INVESTMENTS AND REDUCED IMPORTS. INFLATION, THE CONSUMER PRICE INDEX INFLATION ACCELERATED IN MAY AND ITS FASTEST PACE SINCE 2023. THIS IS PRIMARILY BECAUSE OF HIGHER ENERGY PRICES DUE TO THE WAR OVER IN THE MIDDLE EAST. AS A RESULT OF THAT, THE SHORT TERM TREASURY YIELDS SHIFTED UPWARD AND THE THREE MONTH TREASURY YIELD INCREASED BY 22 BASIS POINTS BY JUNE 30TH. IN TERMS OF OUR PORTFOLIO STATISTICS, THE INVESTMENT PORTFOLIO PORTFOLIO REMAINS LIQUID. IT'S STABLE, AND IT'S FULLY COMPLIANT WITH THE TEXAS PUBLIC FUNDS INVESTMENT ACT. AND JUST TO GIVE YOU A LITTLE BIT OF INFORMATION ABOUT SOME OF THE MONETARY CHANGES HERE, PAR VALUE IS ABOUT 173.4 MILLION.
OUR BOOK VALUE IS ABOUT 173.2. AND OUR MARKET VALUE IS ABOUT THE SAME AMOUNT. 173.2 THE GOOD NEWS IS THE QUARTERLY INTEREST EARNED WAS $1.4 MILLION. OUR YEAR TO DATE EARNINGS ARE AROUND 3.7 MILLION FOR THE CURRENT YEAR. SOME OF OUR NOTABLE INTEREST EARNED FUND BALANCES INCREASED. THE LEANDER 2025 FUND IS UP BY 30.2 MILLION. THE CONSTRUCTION FUNDS ARE UP BY 9.6 MILLION. HOWEVER, WE'VE HAD SOME DECREASES IN SOME OF THOSE FUNDS. THE LEANDER ESFD25 FUND, 36.11 MILLION DECREASE THE CONSTRUCTION FUNDS FOR THE 2022 SWIFT COUNT IS DOWN BY 4.56 MILLION OF CEDAR PARK 2021 CONSTRUCTION FUNDS. THEY'RE DOWN BY 20.85 MILLION. AND THEN THE ROUND ROCK 2023 CONSTRUCTION FUNDS ARE DOWN BY 20.7 MILLION. NOW, ALL OF THIS MOVEMENT IS CONTINGENT UPON PROJECT AND CASH FLOWS WITHIN THE FUND ACTIVITY. SO IT'S NOT A BAD DEAL. IT'S A RELATIVELY GOOD DEAL BECAUSE WE'RE CONTINUING TO DO BUSINESS IN A RELATIVELY PERFORM FASHION PORTFOLIO, CHANGE. THE TOTAL MARKET VALUE FOR THE PORTFOLIO DECREASED BY 5.7 MILLION FROM MARCH 31ST THROUGH JUNE 30TH, SHIFTING FROM 175 MILLION DOWN TO 173.2 MILLION. THIS DECREASE IS PRIMARILY ATTRIBUTED TO CAPITAL DRAWS FOR THE MAJOR CONSTRUCTION PROJECTS THAT ARE ONGOING WITHIN BCR. YOU FOR THIS REPORT, AS I SAID EARLIER, IS COMPLIANT WITH THE TEXAS PUBLIC FUNDS INVESTMENT ACT AND THE BRUSHY CREEK RUR INVESTMENT
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POLICY. THAT CONCLUDES MY PRESENTATION. ARE THERE ANY QUESTIONS ANY QUESTIONS FOR OTIS? ALL RIGHT. THANK YOU, SIR. THANK YOU. APPRECIATE YOU. ALL RIGHT. THAT'LL TAKE US TO ITEM SIX B, ITEM SIX B. CONSIDER A RESOLUTION APPROVING THE RESOLUTION. ENTERTAIN A MOTION TO ADOPT THE RESOLUTION. I'LL MOVE TO ACCEPT THE RESOLUTION AS PRESENTED. I HAVE A FIRST BY SECRETARY DUFFY. SECOND, I HAVE A SECOND BY VICE PRESIDENT THOMPSON. ALL IN FAVOR, SAY AYE.AYE. ANY OPPOSED? THANK YOU. THANK YOU. TAKES ITEM SIX B, ITEM SIX B CONSIDER RESOLUTION APPROVING A FINANCING AGREEMENT BETWEEN THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY AND THE TEXAS WATER DEVELOPMENT BOARD AND OTHER MATTERS IN CONNECTION THEREWITH RELATED TO 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 2026. GOOD EVENING. GOOD TO SEE ALL. GREGORY, MILLER, BICKERSTAFF, HEATH. DELGADO, ACOSTA. WE SERVE AS BOND COUNSEL FOR THE CITY OF LEANDER. AND AS I RECALL, I'VE SEEN Y'ALL LAST ABOUT THIS TIME LAST YEAR ON A VERY SIMILAR MATTER. SO FORGIVE ME IF I'M TELLING YOU A BUNCH OF STUFF THAT YOU ALREADY KNOW ABOUT. JUST AS WITH LAST YEAR, WE'RE HERE TO ASK YOU TO APPROVE A RESOLUTION AUTHORIZING THE. WELL, LET ME BACK UP. LAST WEEK, THE CITY OF LEANDER APPROVED THE RESOLUTION AUTHORIZING THE BCR TO ENTER INTO A FINANCING AGREEMENT WITH THE TEXAS WATER DEVELOPMENT BOARD, AND THIS FINANCING AGREEMENT IS FOR THE SECOND TRANCHE OF WHAT WAS APPROVED LAST YEAR BY THE BY THE WATER BOARD. IT'S IN THE AMOUNT OF $36,240,000. AS I UNDERSTAND THE SCHEDULE, THE INTEREST RATES WILL BE CONFIRMED OCTOBER 1ST. WE'LL BE ASKING YOU TO APPROVE THE ISSUANCE OF THE DEBT SOMETIME THEREABOUTS, WITH AN ANTICIPATED CLOSING IN NOVEMBER, THE MIDDLE PART OF NOVEMBER. I PROVIDE MORE DETAILS, BUT THAT'S IT IN A NUTSHELL. ANY QUESTIONS FOR MR. MILLER? ENTERTAIN A MOTION TO ADOPT THE RESOLUTION. MOTION TO APPROVE MOTION. I'LL SECOND. I HAVE A MOTION FROM VICE PRESIDENT THOMPSON, SECOND BY SECRETARY DUFFY. ALL IN FAVOR, SAY AYE. AYE. ANY OPPOSED? THANK YOU SIR. OKAY. WE'LL SEE YOU NEXT MONTH. THANK YOU. SIX C CONSIDER A RESOLUTION APPROVING A FINANCING AGREEMENT BETWEEN THE BRUSH CREEK REGIONAL UTILITY AUTHORITY AND THE TEXAS WATER DEVELOPMENT BOARD AND OTHER MATTERS IN CONNECTION THEREWITH RELATED TO THE ISSUANCE OF BRUSHY CREEK REGIONAL UTILITY AUTHORITY INC, CITY OF ROUND ROCK, TEXAS.
CONTRACT REVENUE BONDS, BRUSHY CREEK REGIONAL WATER TREATMENT AND DISTRIBUTION PROJECT SERIES 2026. WELCOME. HELLO, MEMBERS OF BOARD. MY NAME IS RICHARD DONAHUE. I'M A PARTNER WITH THE LAW FIRM OF HORTON. WE HAVE THE PRIVILEGE OF SERVING AS BOND COUNSEL TO THE CITY OF ROUND ROCK, AS WELL AS TO BCR UA ON THEIR ROUND ROCK ISSUES. THIS SHOULD. THIS IS THE SAME AGREEMENT THAT YOU ALL JUST APPROVED FOR LANDER, EXCEPT FOR ROUND ROCK SERIES OF BONDS AND ROUND ROCK IS SCHEDULED TO CONSIDER THEIR RESOLUTION APPROVING THE FINANCING AGREEMENT TOMORROW NIGHT. AND WHAT'S THE WHAT'S THE TAKE DOWN ON THIS ONE? SO THAT'S OKAY.
SORRY. IT'S A 12. THAT'S THAT'S RIGHT. THERE'S 12.2, I BELIEVE. OKAY. YES. ALL RIGHT. ANY QUESTIONS FOR RICHARD. ENTERTAIN A MOTION TO ADOPT THE RESOLUTION. MOVE TO APPROVE.
SECOND. MOTION BY SECRETARY DUFFY. SECOND BY VICE PRESIDENT THOMPSON. ALL IN FAVOR, SAY AYE.
AYE. ANY OPPOSED? THAT PASSES. THANK YOU. THANK YOU FOR BEING HERE. SIX D CONSIDER A RESOLUTION AUTHORIZING THE PRESIDENT TO EXECUTE AN ENGAGEMENT LETTER WITH WEAVER AND TIDWELL LLP FOR ANNUAL FINANCIAL AUDIT SERVICES. SO THIS IS THE THE ANNUAL ENGAGEMENT LETTER FOR THE CONSULTANT WHO DOES THE ANNUAL AUDIT. THE FISCAL YEAR AUDIT FOR FISCAL YEAR 2026. AND IT'S THE SAME COMPANY THAT WE HAVE A FOUR YEAR RECURRING CONTRACT WITH. WE HAVE THEY HAVE UP TO FOUR ONE YEAR CONTRACTS TERMS. AND THIS WILL BE THE SECOND OF, OF THE OF THOSE WE THEIR FIRST ONE WAS LAST YEAR AND THEY DID A GREAT JOB. EVERYBODY'S REALLY HAPPY WITH THEM. SO WE'RE RECOMMENDING THAT THE THAT THEY BE APPROVED FOR THIS NEXT AUDIT.
ANY QUESTIONS FOR SAM. I'LL MAKE A MOTION TO APPROVE. SECOND MOTION BY PRESIDENT FLUOR. SECOND BY VICE PRESIDENT THOMPSON. ALL IN FAVOR SAY AYE. AYE. ANY OPPOSED? THANK YOU.
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THAT TAKES US TO SIX E CONSIDER RESOLUTION AUTHORIZING THE PRESIDENT TO EXECUTE A CONTRACT FOR ENGINEERING SERVICES WITH WALKER PARTNERS FOR AN ELECTRICAL PREVENTIVE MAINTENANCE PROGRAM. SAM, THIS IS THIS IS ONE OF THE GOALS FOR BCR. BCR FOR THIS YEAR IS TO ADOPT A. OR IS TO REALLY TO DEVELOP AN ELECTRICAL PREVENTATIVE MAINTENANCE PROGRAM, WHICH HERETOFORE WE'VE NEVER HAD. AND I WON'T BORE YOU WITH ALL TOO MANY DETAILS ABOUT IT, BUT IT'S, IT'S BASICALLY A PROGRAM WHEREBY PERIODICALLY, PROBABLY THIRD PARTY PEOPLE WILL GO IN AND, AND DO HEAVY DUTY MAINTENANCE TO BIG, LARGE ELECTRICAL ENCLOSURES THAT HAVE LARGE, BELIEVE IT OR NOT, MOVING PARTS, RELAYS, YOU KNOW, THERE'S A LOT OF WIRING, THERE'S A LOT OF CONNECTIONS AND, AND, AND THINGS THAT NEED TO BE MAINTAINED BECAUSE THERE'S VERY HIGH VOLTAGES IN MANY OF OUR ELECTRICAL ENCLOSURES. ANYHOW, IT'S ONE OF OUR GOALS THIS YEAR. AND SO WE, WE'VE KIND OF GOING TO DO THE, THE FIRST, THE FIRST IMPLEMENTATION OF THE PROGRAM WILL BE KIND OF LIKE A TWO PHASE. AND THIS IS THE INITIAL PHASE WHERE WALKER PARTNERS. WE NEED A PROFESSIONAL ENGINEERING FIRM THAT HAS ELECTRICAL ENGINEERS ON BOARD, WHICH THEY DO, WHO WILL BASICALLY CATALOG ALL THE, ALL THE, THE EQUIPMENT THAT NEEDS TO BE MAINTAINED. AND, AND THEN THEY WILL DO AN ANALYSIS OF WHAT THEY CALL A CRITICALITY ANALYSIS TO PRIORITIZE THE ORDER IN WHICH ALL THESE THESE LARGE PIECES OF ELECTRICAL EQUIPMENT NEED TO BE MAINTAINED SO THAT WE CAN, YOU KNOW, CHOOSE WHICH ONES TO DO BECAUSE WE, WE MAY NOT BE ABLE TO DO THEM ALL IN THE FIRST, THE FIRST EXECUTION OF THE ACTUAL MAINTENANCE OF THEM. BUT, BUT, BUT WE CAN'T EVEN DO THE MAINTENANCE UNTIL WE HAVE THIS, THIS, THIS AUDIT, IF YOU WILL. I WOULDN'T CALL IT SO MUCH A STUDY. IT'S REALLY A, IT'S LIKE A PLAN. AND SO ANYHOW, THIS PLAN IS BEING, IS WE'RE GOING TO DO IT QUICKLY SO THAT WE CAN PAY FOR IT OUT OF THIS YEAR'S BUDGET. THE COST IS $78,251. AND, AND, AND IT SHOULD BE FINISHED BY THE END OF NEXT MONTH. AND SO AND ONCE IT'S FINISHED, WE WILL, WE WILL WE WILL BE COMING BACK TO YOU ALL ONCE WE HAVE THE THE PLAN FULLY DEVELOPED, BUT WITH, WITH A, SOME SORT OF A CONSTRUCTION ARRANGEMENT, WHETHER IT'S A CONTRACT OR A CHANGE ORDER OR WHAT WE'RE NOT, WE'RE ACTUALLY HAVE SEVERAL OPTIONS TO DO THAT. BUT WE OUR GOAL IS TO GET THE IS TO ACTUALLY GO IN AND DO SOME OF THIS MAINTENANCE. THAT'S NEVER REALLY BEEN DONE TO DO THAT THIS WINTER. WHY? WHILE WHILE THE FLOWS ARE DOWN AND WE CAN TURN BECAUSE WE HAVE TO TURN OFF MAJOR ELECTRIC GRIDS TO, TO PLANT IN ORDER TO WORK ON THESE THINGS. SO ANYHOW, YEAH, WE'RE REALLY EXCITED ABOUT DOING THIS PROJECT. AND THIS IS KIND OF LIKE THE FIRST STEP. SO, AND, AND THE FOLKS HAVE BEEN FULLY BRIEFED, YOU KNOW, BRIEFED ON IT. I THINK EVERYBODY'S ALL THE ENGINEERS ARE PRETTY, PRETTY HAPPY WITH THE PROPOSAL. OKAY. ANY QUESTIONS FOR SAM? ENTERTAIN A MOTION TO ADOPT ITEM 62ND. I HAVE A MOTION BY SECRETARY DUFFY, SECOND BY VICE PRESIDENT THOMPSON. ALL IN FAVOR, SAY AYE. AYE. ANY OPPOSED? THAT PASSES.THANK YOU. ITEM SIX F CONSIDER RESOLUTION AUTHORIZING THE PRESIDENT TO EXECUTE A FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE BCR, UA AND PEMCO INC FOR THE PURCHASE OF WATER TREATMENT CHEMICALS. SAM. YES. SO WHAT? WE ACTUALLY PURCHASED CHEMICALS FROM LIKE FIVE DIFFERENT COMPANIES IS BCR A AND PINKO IS ONE OF THOSE. AND PINKO SUPPLIES ONE OF THE CHEMICALS CALLED FLUORIDE. AND THERE'S BEEN A TREMENDOUS NATIONWIDE MARKET SHORTAGE OF FLUORIDE IN, IN THE NATION, WHICH IS IF YOU GOOGLE IT, IT'S IT'S PRETTY IT'S ALL OVER THIS.
THERE'S BEEN PRICE INCREASES ALL OVER THE NATION BECAUSE OF THE SHORTAGES. SOME OF THE LARGER MANUFACTURING PLANTS HAVE SHUT DOWN. AND, AND SO AND AS A RESULT, IN ORDER TO MEET THE DEMAND, THEY'VE HAD TO GO OUTSIDE THE THE NATION AND WHICH IS OVERSEAS TO SECURE IT.
AND THE PRICES ARE MUCH HIGHER OVER THERE, PARTLY DUE TO THE WAR, AND JUST PARTLY DUE TO THE FACT THAT IT'S BEING IMPORTED. AND SO AND SO, EVEN THOUGH OUR CONTRACT WITH THEM IS PRETTY FIRM ON, YOU KNOW, THAT THIS IS THE PRICE IS SUCH AN EXTRAORDINARY AND UNUSUAL
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SITUATION. AND THEY WE HAD QUITE A FEW MEETINGS WITH THEM, AND THEY'VE BEEN VERY THOROUGH WITH THEIR REQUEST AND SENDING US DOCUMENTATION ON, ON, ON THE SITUATION THAT WE AND GENERAL COUNSEL AND I, WE'VE, WE'VE BEEN WORKING ON THIS AND, AND, AND WE, WE THOUGHT IT MIGHT BE IN THE BEST INTEREST OF EVERYONE JUST TO GO AHEAD AND DO A ONE YEAR AMENDMENT. AND, AND IN THE AGREEMENT, WE PUT SOME TERMS IN THERE THAT SAYS IF THE MARKET CHANGES SOMETIME DURING THAT YEAR, IF IT GETS FAVORABLE, THEN THEY WILL AGREE TO WORK WITH US IN GOOD FAITH TO NEGOTIATE IT BACK DOWN. BUT, BUT ANYWAY, FOR THE TIME BEING, YEAH, WE'RE RECOMMENDING THAT WE WE AMEND THIS CONTRACT. AND IF IT WAS TO GO A WHOLE YEAR, WHICH ACTUALLY IS NOT GOING TO, BECAUSE WE ACTUALLY STILL HAVE THREE MONTHS LEFT BECAUSE WE USE SUCH A TINY AMOUNT OF IT.AND, AND SO WE WON'T BE BUYING THAT MUCH. BUT IF IT WENT A FULL YEAR, IT'D BE AN $85,000 INCREASE IN OUR BUDGET, WHICH RIGHT NOW IS NOT A PROBLEM. SO WITH THAT, I WE ARE RECOMMENDING APPROVAL OF THIS. THANK YOU. ANY QUESTIONS FOR SAM? ALL RIGHT. I'LL MAKE A MOTION TO APPROVE. ENTERTAIN A SECOND. SECOND MOTION PRESENT FOR SECOND BY SECRETARY DUFFY.
ALL IN FAVOR SAY AYE. AYE AYE. ANY OPPOSED? ALL RIGHT. THANK YOU. THAT'LL TAKE US TO ITEM SEVEN. ITEM SEVEN. DIRECTOR. CLOSING COMMENTS. DIRECTOR. FORREST. NO. THANK YOU ALL FOR COMING THIS EVENING. APPRECIATE YOU. ALL RIGHT, DIRECTOR DUFFY, THANKS, EVERYONE FOR ALL THE WORK. RICHARD THOMPSON, JUST SAY THANK YOU TO MY INTERN, OWEN FOR COMING OUT TONIGHT AND OBSERVING OUR MEETING AND LEARNING A LITTLE MORE ABOUT BCR. I APPRECIATE YOU, TREASURER SCHAFFNER. NO, THANKS, EVERYONE FOR COMING OUT. HAVE A GOOD EVENING, DIRECTOR MONTGOMERY. GOOD EVENING. THANK YOU. YEAH. THANKS FOR ALL THE WORK ON THIS PACKET. WE ARE THANKFUL FOR A FULL LAKE FOR SURE. AND AND LOOKING FORWARD TO THE PROGRESS ON THE OTHER PROJECTS AS THEY COME ALONG. IT IS 632 AND IF THERE'S NO OTHER
* This transcript was compiled from uncorrected Closed Captioning.