2005 01 19 BAWA MinutesMINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
January 19, 2005
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, January 19, 2005 in the Conference Room, 7425 Thompson
Road, Baytown, Texas, with the following in attendance:
Robert L. Gillette, President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Dan Conejo, Board Member.
Dan Mundinger, Board Member, was absent.
The meeting opened at 8:00 a.m. with a quorum present, and the following business was
conducted:
Consider approval of the minutes for the meeting held on December 15, 2004.
Board Member Buenz moved approval of the minutes of the meeting held on December 15,
2004. Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, and Conejo.
President Gillette.
Nays: None
The motion carried.
Consider Proposed Resolution No. 050119-1, authorizing the issuance of Baytown Area Water
Authority Water Supply Contract Revenue Bonds, Series 2005 (City of Baytown Project).
Proposed Resolution No. 050119-1 authorizes the issuance of Baytown Area Water Authority
Water Supply Contract Revenue Bonds, Series 2005 (City of Baytown Project), for system
improvements; accepts the terms and conditions of such resolution; and provides for continuing
disclosure with respect to such bonds. The bonds will finance the expansion of and
improvements to the Authority's surface water treatment facility.
Drew Masterson, First Southwest, introduced Frank McCrary, Vinson & Elkins L.L.P., bond
attorney for the Board. Mr. Masterson reported that the bonds will be issued through the Texas
Water Development Board (TWDB), an agency of the State of Texas. Three bids were received
for insurance on the bonds. The low bidder, at 31 basis points, for approximately $53,000, was
AMBAC Assurance Corporation. This is a savings over the $87,000 originally budgeted. Mr.
Masterson stated that he will verify that no ratings are required because the bonds are TWDB
bonds; however, the bonds will be AAA rated with the insurance.
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Minutes of the Regular Meeting —January 19, 2005
Bond insurance
Rating fee
Financial Advisor & Bond Counsel
Paying agent
Total estimated issuance costs
$ 87,000
28,000
62,000
300
$177,300
Mr. Masterson informed the Board that the issuance costs
noted that the Board should save approximately $23,000 to
the entire sum of the rating fee.
Board Member Buenz moved approval of the resolution, as
seconded the motion. The vote follows:
will be paid from cash funds. He
$24,000 on the bond insurance and
amended. Board Member Beavers
Ayes: Board Members Beavers, Buenz, and Conejo.
President Gillette.
Nays: None
The motion carried.
Receive the quarterly investment report for the calendar quarter ended December 31, 2004.
The Authority's Investment Policy requires financial reports be presented to the Board each
calendar quarter.
Rhonda Young, Treasurer, reviewed the report and concluded that the current year-to-date
interest earnings are $26,222.76.
The report was received by the Board.
Manager's Report.
Fred Pack, BAWA Director, reported that Phase III of the construction is nearly complete. Final
payment and acceptance of the project is expected to be presented for the Board's consideration
at either the March or April, 2005 Board meeting.
President Gillette asked if any progress had been made in the widening of Thompson Road.
General Manager Jackson replied that completion of that project could be several years away.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:26 a.m.
Patti Merrell, Assistant to the Assistant Secretary