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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. Page 3 of 3 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