Brushy Creek RUA approves Leander financing agreement, pump repair, testing contract increase and procurement resolutions

The Brushy Creek Regional Utility Authority on Wednesday approved several resolutions authorizing financing, construction testing and an emergency pump repair, and accepted the board’s quarterly investment report.

The board voted unanimously to accept the investment report for the quarter ending June 30, 2025; to authorize the president to sign a financing agreement with the city of Leander under the Swift commitment; to award a repair contract to Smith Pump Company for Booster Pump No. 3; to increase the Terracon construction materials testing contract; and to formally designate the authority’s general counsel and assistant general counsel.

Board action and why it matters

The board accepted the quarterly investment report presented by Otis Williams, chief financial officer for the city of Leander. Williams told the board the portfolio’s weighted average yield was about 3.5% and that the portfolio’s effective duration was 0.06 years. He reported the portfolio market value decreased from about $166,000,000 to $164,000,000 during the quarter and that total investment earnings for the quarter were about $1,400,000. "The portfolio's effective duration is 0.06 years," Williams said during his presentation.

On the Swift financing, the board authorized the president to execute a financing agreement that is the first bond take-down by Leander under a Swift commitment the transcript says was approved by the Dexter Water Development Board this summer. The immediate take-down approved by the authority is for $36,240,000, part of a larger $72,480,000 commitment that the presenters said is expected to be taken in two tranches. Bond counsel Gregory Miller said the board’s approval tonight is one step in a multistep process and that the item will return to the authority later in the bond schedule: "This comes back to y'all in October when y'all approved the, the actual bond resolution," Miller said.

The board also approved an emergency repair agreement with Smith Pump Company for Booster Pump No. 3. General manager Robert (listed in the transcript as "Mister Roberts") described a mechanical failure that damaged the pump and necessitated removal and detailed inspection in Waco. Roberts reported that Smith Pump diagnosed the unit as repairable and supplied a cost estimate of $89,855 and an estimated 13-week repair timeline. "The cost estimate in that quote is $89,855," Roberts said.

Separately, the board approved a supplemental contract with Terracon Consultant Inc. for construction materials testing (CMT) services related to the Phase 2 raw water delivery system. Roberts told the board the original unit-price contract, approved previously at $280,000, is approaching its budgeted limit because the contractor required more testing than initially estimated; the board approved increasing the contract by $276,700 to a new total not to exceed $556,700. "The new estimate to finish the job out was an additional $276,700," Roberts said.

Routine procurement and governance items

The board adopted a resolution designating competitive sealed proposal (CSP) as the delivery method that provides the best value for the Phase 2A water treatment plant expansion. Roberts described that CSP (also called a competitive sealed proposal) allows the authority to evaluate proposals on qualifications beyond price and that other local governments commonly use the method.

The board also approved a resolution formally designating the authority’s general counsel and assistant general counsel, an administrative step the board’s counsel said provides documentation of signature authority for bond and other legal documents.

Votes at a glance (as recorded in the meeting)

- Minutes (06/25/2025) — Motion to approve: approved (unanimous). Agenda item 4a. - Accept quarterly investment report (04/01/2025–06/30/2025) — approved (unanimous). Agenda item 6a. - Authorize president to execute Swift 2025 Leander financing agreement (first Leander take-down of $36,240,000 of a $72,480,000 commitment) — approved (unanimous). Agenda item 6b. - Authorize president to execute agreement with Smith Pump Company for Booster Pump No. 3 repair (estimate $89,855; ~13-week repair timeline) — approved (unanimous). Agenda item 6c. - Determine competitive sealed proposal provides best value for Phase 2A water treatment plant expansion — approved (unanimous). Agenda item 6d. - Authorize supplemental contract with Terracon Consultant Inc. for CMT services (increase of $276,700; contract total to $556,700) — approved (unanimous). Agenda item 6e. - Designate general counsel and assistant general counsels — approved (unanimous). Agenda item 6f.

What the board said and next steps

Bond counsel Gregory Miller said the financing agreement is conditional on later bond steps and expected to return to the board as bond documents are finalized. The board’s approvals authorize staff to execute the contracts and to proceed with the next steps in project schedules. Several items noted that further approvals will be required (for example, bond issuance) before funds are drawn or construction proceeds.

The meeting record shows no abstentions or recorded negative votes on the items above. The board did not provide a specific schedule for reinspection or follow-up reporting on the Smith Pump repair beyond the repair timeline; Terracon’s increased contract is for ongoing testing through the Phase 2 project timeline.

Ending

Board members closed the meeting with brief remarks welcoming a new director from Leander and then adjourned. The Swift financing step approved tonight is expected to be followed by additional bond resolutions and closings later in the fall as counsel and the city coordinate remaining approvals.