BRAZOSPORT WATER AUTHORITY

SPECIAL SESSION

AUGUST 19, 2009

THE STATE OF TEXAS §

§

COUNTY OF BRAZORIA §

BE IT KNOWN that the Board of Directors of the Brazosport Water Authority met in Special Session on Wednesday, August 19, 2009 in the Lake Jackson Civic Center, Plaza Room 2 located at 333 Highway 332 East, Lake Jackson, Texas 77566 with the following present:

Angleton – Larry Shaefer

Brazoria – Kirby Jordan

Clute – Joe Damian

Freeport – Clan Cameron

Lake Jackson – Juan Longoria III

Oyster Creek – Jesse Hernandez

Richwood – Steve Boykin

Others – Landon Roberts, Wyatt Ringgold, Mary Ann Bishop, Frank Mauro and see attached list

CALL TO ORDER

With a quorum present, Director Boykin called the meeting to order at 6:00 p.m.

CITIZEN COMMENTS

None.

A MEETING TO DISCUSS AND/OR DECIDE HOW BRAZOSPORT WATER AUTHORITY (B.W.A.) SHOULD DEAL WITH LIABILITY FOR WATER RELEASES WHICH DOW CHEMICAL MUST PAY BRAZOS RIVER AUTHORITY (B.R.A.) IN ADVANCE OF A WATER RELEASE WHICH DOW CHEMICAL SUBSEQUENTLY BUT EQUALLY CHARGES BRAZOSPORT WATER AUTHORITY (B.W.A.) ALONG WITH THOSE OTHER ENTITIES WHICH UTILIZE THE RELEASED WATER

Discussed and reviewed how to deal with liability for water releases taken. At this time Director Longoria made two motions the first being that the rate increase of 3.8% previously approved by the board, effective October 1, 2009, will remain unchanged. This motion is related to addressing the impact of increased price of emergency raw water purchases made by the Dow Chemical Company to deal with the lack of Brazos River flow due to the current severe drought. Juan Longoria informed the board and the public present that he had obtained agreement with The Dow Chemical Company management, subject to The Dow Chemical Company approval, for repayment for BWA's portion of the purchased raw water on a convenient monthly basis based on BWA's monthly cash flow. The second motion made by Director Longoria was to have Brazosport Water Authority set up a drought contingency water release fund which would be restricted to payment for water releases by The Brazos River Authority and requested by Texas Dow Chemical Company. Said money would be accumulated over a period of 2 years at a rate of $1,000.00 to $5,000.00 per month towards a goal of $100,000.00. These funds will not be withdrawn for any other purpose, but used if and until needed for water releases during conditions of drought. Director Damian seconded both of the above motions with roll call votes as follows:

Motion One: The rate increase of 3.8% previously approved by the board, effective October 1, 2009, will remain unchanged. This motion is related to addressing the impact of increased price of emergency raw water purchases made by the Dow Chemical Co. to deal with the lack of Brazos River flow due to the current severe drought. Juan Longoria informed the board and the public present that he had obtained agreement with The Dow Chemical Company management, subject to The Dow Chemical Company approval, for repayment for BWA's portion of the purchased raw water on a convenient monthly basis based on BWA's monthly cash flow:

Director Shaefer: Nay

Director Jordan: Nay

Director Damian: Aye

Director Cameron: Nay

Director Longoria: Aye

Director Hernandez: Aye

Director Boykin: Aye

Motion Two: To have Brazosport Water Authority set up a drought contingency water release fund which would be restricted to payment for water releases by The Brazos River Authority and requested by The Dow Chemical Company. Said money would be accumulated over a period of 2 years at a rate of $1,000.00 to $5,000.00 per month towards a goal of $100,000.00. These funds will not be withdrawn for any other purpose, but used if and until needed for water releases during conditions of drought

Director Shaefer: Aye

Director Jordan: Aye

Director Damian: Aye

Director Cameron: Aye

Director Longoria: Aye

Director Hernandez: Aye

Director Boykin: Aye

DISCUSS AND TAKE ACTION FOR A FINAL RESOLUTION OF CITY OF ANGLETON’S UNPAID OVER USAGE FOR 2004 AND 2005

Discussed and reviewed The City of Angleton’s unpaid overages from 2004 and 2005 and discussed the possibility that the statute of limitations may have expired on these charges. A motion was made by Director Jordan to dismiss the overage charges to The City of Angleton for 2004 and 2005. Director Cameron seconded, with a roll call vote as follows:

Director Shaefer: Aye

Director Jordan: Aye

Director Damian: Aye

Director Cameron: Aye

Director Longoria: Aye

Director Hernandez: Aye

Director Boykin: Aye

With no other business before the Board a motion was made by Director Boykin to adjourn the meeting at 7:05 p.m. Director Damian seconded, with a vote of:

Ayes: Shaefer, Jordan, Damian, Cameron, Longoria, Hernandez, Boykin

Nays: None

Absent: None

These minutes read and approved this ______day of September, 2009.

Steve Boykin, President

Juan Longoria, Vice President