Sally Bakko

The Board discussed several key operational and project matters. The audit for the fiscal year ended September 30, 2025, was reviewed and conditionally approved. Financial matters included the approval of the bookkeeper's report and payment of bills, noting the receipt of advance funding from the Texas General Land Office (GLO) for the Jefferson County Project, the Orange County Project, and the Coastal Texas Project. The Board deferred action on the Amended Administrative Policies and Procedures Manual. Updates were provided on Coastal Texas projects, including the completion of 60% design plans for segment G-28-1 and scheduling kickoff meetings for new design task orders. Reports detailed progress on Post Authorization Change Reports (PACRs) for both the Orange County and Jefferson County Projects. The Board also held an executive session to consult with attorneys regarding Coastal Texas matters, reconvening to unanimously approve two separate Task Orders with Jacobs Engineering Group Inc. and HDR Engineering, Inc. for engineering services related to the Bolivar Roads Gate System and the Bolivar and West Galveston Beach and Dune System, respectively.

The regular board meeting commenced with roll call and introductions of numerous guests representing various entities including DD7, GCPD, HDR, Fugrow, Jacobs, Geo Consultants, Tetratech, Atkins Realis, Texas General Land Office, Orange County Transit District, Black and Beach, Lonear Harbor Safety Committee, Orange County Drainage District, Tidewater, Anchor QA, and the US Army Corps of Engineers. Key agenda items involved the approval of minutes from the December 10th meeting and the approval of the audit for the fiscal year end September 30th, 2025, which resulted in an unmodified (clean) opinion and a decrease in the general fund balance of approximately $2.2 million. Financial and bookkeeping matters included a review of cash flow reports for Q1 ending December 31st, 2025, and early January 2026, noting the funding of three advanced funding requests from legislative sessions, and reporting an ending bank account balance of $1.4 million for the quarter. A major update concerned federal appropriations, with the expectation of receiving up to $25 million in the FY26 work plan, contingent on presidential signature. The board also discussed required coordination with the US Army Corps of Engineers on the Project Arrangements & Cost Estimates Report (PACKER) for the Orange County project, including advancing Task Orders 12 and 13 to meet design maturity requirements. Updates were provided on program management, the submission of the Integral Determination Report (IDR), and coordination meetings with Texot regarding project alignment along Interstate 10. The President of the Board reported on various meetings and noted the upcoming retirements of Ian O Sullivan and Kelly Burks Copes from the Corps, while also mentioning efforts to keep the Bay Area Coastal Protection Alliance active.

The board meeting addressed several critical operational and programmatic items. The finance report for November 2025 noted routine expenditures and a transfer of over $600,000 from the investment account for operating costs. Two advance requests totaling $2.2 million were submitted to GLLO, with one for $1.1 million already approved. The executive director reported on a successful federal advocacy strategy, which included requesting $25 million in the FY2026 work plan from senior White House officials and key agency directors, as well as tracking $5 million secured in investigation funding. Furthermore, significant progress was made on the main Coastal Texas project (the 'packer'), including securing consensus from the USACE Committee on Hydrology and Engineering regarding interior drainage policy. Staffing updates included extending offers for a Community Engagement Specialist and a Government Relations position. Discussions also commenced regarding the path forward for addressing a metals issue discovered in the Orange County project, focusing on defining HTRW responsibilities.

The Board meeting addressed financial matters, including the review and approval of the bookkeeper's report and payment of bills. Updates were provided on financial and administrative efforts, Advance Funds Requests to the GLO, and the hiring of a Chief Program Manager and a Non-Federal Sponsor WIK Accounting Manager. Discussions covered meetings with Major General Kelly and Adam Telle regarding the Orange County Project and Coastal Texas Protection and Restoration Project, respectively. The SSPEED Center conference and Sabine to Galveston (S2G) matters were also reviewed, including coordination with USACE, design plans for ecosystem restoration, and the proposed Academic Advisory Council. A task order from GFT Infrastructure, Inc. for subsurface utility engineering services for the Torrent Floodwall project was approved. Updates were provided on the PACR efforts, the Arlanxeo Levee project, and program management activities. Jefferson County Drainage District No. 7 reported on construction contracts and utility relocations. Coastal Texas matters were discussed, including the Project Partnership Agreement strategy and the Design Agreement amendment. Master Services Agreements for engineering services for the Bolivar Roads Gate System and the Bolivar and West Galveston Beach and Dune System were approved with Jacobs Engineering Group Inc. and HDR Engineering, Inc., respectively. The General Land Office provided updates on design, project spending, and sediment sources studies. The Region 6 State Flood Planning Group's activities were also discussed.

The meeting included reports from the General Land Office regarding the status of execution of the memorandum of understanding for design work with USACE and efforts to finalize the Local Cooperation Agreement. There were discussions on ecosystem restoration segment G-28, Bolivar Peninsula and West Bay Gulf Intracoastal Waterway Shoreline and Island Protection, and preliminary data from the study conducted to determine whether sediment from Lake Houston could be used for beach nourishment projects. The Board authorized MGSB to proceed with preparation of the audit for fiscal year end September 30, 2024, appointed Ms. Norman as an additional Investment Officer, accepted the annual disclosure statements, conducted its annual review of the District's Investment Policy, and adopted a Resolution Establishing the Authorized Depository Institutions and Adopting List of Qualified Broker/ Dealers. The Board also approved the bookkeeper's report and payment of the bills, adopted the amended budget for the fiscal year ending September 30, 2024, adopted the District's budget for the fiscal year ending September 30, 2025, and approved and authorized execution of the Depository Pledge Agreement with First Citizens Bank. The Board authorized execution of an Authorization for Entry for Survey & Exploration, consented to the assignment of the Professional Engineering Services Agreement between the District and DEC to GFI, approved and authorized execution of the Year 3 Scope of Work, authorized execution of the Texas Archaeology Permit Applications for cultural resources monitoring of the phase II environmental site assessments, and authorized execution of the Surface Use Agreements with Texas Parks and Wildlife Department for phase II environmental site assessments if necessary. The Board authorized execution of a task order proposal in an amount not to exceed $250,000, authorized execution of the LCA, and made a motion to re-open the job posting for a senior project manager for Coastal Texas with the discussed revisions.