WEBVTT 00:00:09.259 --> 00:00:12.970 Good morning. This meeting of the Texas Water Development 00:00:12.970 --> 00:00:17.829 Board is called to order. The time is 9:34am. I 00:00:17.829 --> 00:00:22.739 forgot my readers, Patrick. Uh for the record, my name 00:00:22.739 --> 00:00:25.500 is Brooke Paup. With me today are George Peyton and 00:00:25.500 --> 00:00:30.469 L'Oreal Stepney. First item please, Ashley. Uh, Chairwoman 00:00:30.469 --> 00:00:33.649 the first item on the Agenda today is discussion regarding 00:00:33.649 --> 00:00:38.109 outreach efforts and activities. Director Stepney? 00:00:38.990 --> 00:00:43.350 Am I on? Okay, great. Thank you. Good morning Madam 00:00:43.350 --> 00:00:48.159 Chair, Director Peyton, um Executive Administrator Walker, 00:00:48.159 --> 00:00:51.500 and everyone else. Good morning. So for outreach activities 00:00:51.500 --> 00:00:53.759 it's been a really busy month. I've had the pleasure 00:00:53.759 --> 00:00:58.090 of meeting with Senator LaMantia, Senator Eckhardt, as 00:00:58.090 --> 00:01:03.130 well as Senator um, um 00:01:03.130 --> 00:01:07.000 Springer. Thank you, thank you, Senator Springer. And 00:01:07.010 --> 00:01:10.939 also, I've had the pleasure of attending our wonderful 00:01:10.939 --> 00:01:13.659 conference, Water for Texas. It was amazing, so well 00:01:13.659 --> 00:01:18.549 attended. And I had the pleasure of also facilitating 00:01:18.549 --> 00:01:20.840 or moderating the international conference. So we learned 00:01:20.840 --> 00:01:24.780 so much from how they do things across the, across 00:01:24.780 --> 00:01:28.930 the globe in New Zealand, Austria and Israel. So it 00:01:28.930 --> 00:01:33.049 was really great. And then finally agriculture is a 00:01:33.049 --> 00:01:36.590 big part of what we do and some of our important stakeholders. 00:01:36.590 --> 00:01:39.379 So it was great visiting with the Texas Cattle Feeders 00:01:39.379 --> 00:01:41.859 Association, briefly just to talk about agriculture 00:01:41.859 --> 00:01:46.450 and water. So thank you very much. 00:01:46.450 --> 00:01:50.420 Director Peyton? Yeah, hi. Good morning everyone. Thanks, thanks again 00:01:50.420 --> 00:01:53.859 for being here. Um for outreach, I attended the Water 00:01:53.859 --> 00:01:56.959 for Texas Conference as well. Uh, moderated a Flood Panel 00:01:56.959 --> 00:01:59.819 there, which was really interesting to see. Um, you know, 00:01:59.819 --> 00:02:02.090 how different folks across the State are addressing 00:02:02.090 --> 00:02:05.269 their flood concerns. And Texas is a very uh, interesting 00:02:05.269 --> 00:02:07.959 State. And that we have not only flood concerns in the 00:02:07.959 --> 00:02:10.810 Southeast part of the State. But we also have um, flooding 00:02:10.810 --> 00:02:15.129 concerns in the Far West um, Texas parts of the State. 00:02:15.129 --> 00:02:18.479 So uh, there are a lot of issues with flooding. So it 00:02:18.479 --> 00:02:21.379 was a very fun paneled host. Interesting, enlightening, 00:02:21.389 --> 00:02:24.500 learned a lot. Um, I've also continued to reach out 00:02:24.500 --> 00:02:26.969 and meet with Senators. Um, so I was able to meet with 00:02:26.979 --> 00:02:31.069 Senator LaMantia as well. Senator Hancock and Senator 00:02:31.080 --> 00:02:35.289 Alvarado's office as well. So we'll continue um, doing 00:02:35.289 --> 00:02:38.270 that and meeting those folks. Um and then just continuing 00:02:38.270 --> 00:02:42.689 to push, uh push all the good we can for water. So 00:02:42.699 --> 00:02:48.419 that's it. Snaps. Um first of all, Happy Birthday to Jeff, 00:02:48.430 --> 00:02:56.449 Bryan, Patrick, and L'Oreal coming up. Oh, big week. Big Week. Yeah, we had another 00:02:56.460 --> 00:03:00.020 weather event last week. Um, I hope you all stayed warm 00:03:00.020 --> 00:03:03.199 and safe, and have power now. But we missed out on being 00:03:03.199 --> 00:03:06.759 able to really celebrate all of our people. So, Happy 00:03:06.759 --> 00:03:11.460 Birthday and Happy Birthday to you Director. Um and 00:03:11.460 --> 00:03:15.030 with that, um I hope you all were okay last week. I 00:03:15.030 --> 00:03:17.250 thought about each and every one of you at TWDB. 00:03:17.250 --> 00:03:20.889 These events are often times a little scary and 00:03:20.889 --> 00:03:22.740 we lose power, and we don't have internet, and we don't 00:03:22.740 --> 00:03:25.379 know how we're doing. Just know that this Board is thinking 00:03:25.379 --> 00:03:27.449 about y'all. And we're really hoping that everyone's 00:03:27.460 --> 00:03:32.509 all right. And it seems like we are now. Um, for outreach 00:03:32.520 --> 00:03:35.069 again, huge congrats for our Staff are putting on a 00:03:35.069 --> 00:03:38.729 tremendous conference. I've been at the Capitol furiously 00:03:38.729 --> 00:03:41.259 running around with Bryan, Jeff, and Patrick. I always 00:03:41.259 --> 00:03:44.580 say I don't like an entourage, but I think our budget 00:03:44.580 --> 00:03:48.909 needs an, uh important entourage. Um, but all I've 00:03:48.909 --> 00:03:52.530 heard is compliments on the conference. And um, you two 00:03:52.530 --> 00:03:55.659 did amazing jobs moderating your panels. And so did 00:03:55.669 --> 00:03:59.289 Jeff and so did all of our Staff. So very, very proud 00:03:59.300 --> 00:04:03.169 of the conference and just pretty, pretty amazing. Um, 00:04:03.180 --> 00:04:06.280 incredible talks about water and it is a water session. 00:04:06.280 --> 00:04:11.469 So it was very timely, um other than running furiously 00:04:11.469 --> 00:04:14.849 around the Capital. I've had to visit with both Eagle 00:04:14.849 --> 00:04:17.899 Pass and Laredo. Um, and again these are salt of the 00:04:17.910 --> 00:04:20.620 earth people. Just really looking to do the best for 00:04:20.620 --> 00:04:23.420 their communities on water. And with that, we'll go 00:04:23.420 --> 00:04:27.399 to second item. Chairwoman, the second item on the 00:04:27.399 --> 00:04:30.449 Agenda today is consider authorizing the Executive 00:04:30.449 --> 00:04:34.050 Administrator to exercise the option to renew the existing 00:04:34.050 --> 00:04:37.069 contract with Hilltop Securities Inc. For a one-year 00:04:37.069 --> 00:04:41.920 term beginning March 1, 2023, at the cost of $980,000. 00:04:42.259 --> 00:04:44.959 And authorizing up to two additional one-year renewal 00:04:44.959 --> 00:04:48.250 options per the contract terms. For a total contract 00:04:48.250 --> 00:04:52.439 amount not to exceed $4.9 million. David Duran is 00:04:52.439 --> 00:04:56.170 here to present to the Board on this item today. Good 00:04:56.170 --> 00:04:58.660 morning Chairwoman Paup, Director Peyton and Director 00:04:58.660 --> 00:05:01.279 Stepney. For the record, I'm David Duran with the Executive 00:05:01.279 --> 00:05:04.629 Administrative Staff. Executive Administrator is recommending 00:05:04.629 --> 00:05:07.399 the extension of the TWDB's contract with Hilltop 00:05:07.399 --> 00:05:11.149 Securities as our financial advisor. Contract was executed 00:05:11.149 --> 00:05:14.889 in March of 2021, will expire at the end of February. 00:05:14.899 --> 00:05:17.589 And the recommendation is to approve the first one- 00:05:17.589 --> 00:05:21.370 year extension option, resulting in an expiration of 00:05:21.379 --> 00:05:26.279 February 2024. Um, but leaving two more one-year 00:05:26.279 --> 00:05:29.509 extension options available. The Executive Administrator 00:05:29.509 --> 00:05:31.699 recommends approval. I'm happy to answer any questions 00:05:31.699 --> 00:05:36.180 you may have. Questions, comments? Yeah, David how long have 00:05:36.180 --> 00:05:38.560 we had Hilltop as our financial advisor here, do you 00:05:38.560 --> 00:05:43.610 know? Um, and I'm just. Consistently I think since maybe 00:05:43.620 --> 00:05:47.769 2013. Right. And then there was a gap, and then before that 00:05:47.779 --> 00:05:51.670 many, many years. I mean they set up, helped with the 00:05:52.360 --> 00:05:58.649 the TWRFA, um in the 90s, um as First Southwest. And 00:05:58.649 --> 00:06:01.439 we're, we're kind of reevaluating this. Um, I know we're 00:06:01.439 --> 00:06:03.199 we're very pleased with their performance. They, they've 00:06:03.199 --> 00:06:06.240 been they've been fantastic for us, right? These past 00:06:06.240 --> 00:06:08.370 years, especially since since SWIFT has come into the 00:06:08.370 --> 00:06:11.470 picture, right? Yes. Um, so they're, they've been an invaluable 00:06:11.470 --> 00:06:16.439 partner. But as taxpayers, we're looking at that every 00:06:16.439 --> 00:06:18.509 several years, right? Like we're going out for a 00:06:18.509 --> 00:06:22.810 RFQ, evaluating new FAs. Um, making sure that the 00:06:22.810 --> 00:06:25.949 fees are commensurate with kind of market rate fees, 00:06:25.959 --> 00:06:28.110 um that sort of thing. We're doing that regularly, 00:06:28.110 --> 00:06:32.310 correct? Okay good, good. Um no, I think that's, I 00:06:32.310 --> 00:06:33.879 think they're fantastic. I think we've had a great 00:06:33.879 --> 00:06:35.970 relationship with them. We've been, I've been impressed. 00:06:35.980 --> 00:06:39.060 Um, happy to continue using them. I just want to make 00:06:39.060 --> 00:06:42.610 sure we're kind of continually evaluating and judging 00:06:42.620 --> 00:06:48.589 um, you know. Due diligence. Exactly. Always. Yes. Absolutely thank 00:06:48.589 --> 00:06:53.279 you, Director Peyton. I was fortunate enough, as part of my 00:06:53.279 --> 00:06:56.240 Staff briefings. To have Hilltop participate in one 00:06:56.240 --> 00:07:00.519 and and help me get up to speed. On, you know, the 00:07:00.519 --> 00:07:03.579 overall financials for the Board, our portfolio and 00:07:03.579 --> 00:07:09.680 all of those things. And just to clarify, um the $4.9 00:07:09.680 --> 00:07:14.189 million that's to cover the existing contract. That's 00:07:14.189 --> 00:07:18.149 to um, the whole period, the five-year period. Versus 00:07:18.160 --> 00:07:24.439 any individual one-year extension. Yes. We, so this 00:07:24.449 --> 00:07:29.110 extension will be for $980,000. If we were to execute 00:07:29.120 --> 00:07:32.829 another one-year extension. We would request another 00:07:32.839 --> 00:07:37.079 specific one-year amount based on um, the bond deals 00:07:37.079 --> 00:07:40.550 that we would expect to come in that time frame. 00:07:40.550 --> 00:07:46.329 Okay, so the 4.9, I just did the math, the $980,000 00:07:46.329 --> 00:07:49.420 times 5 is 4.9 million. So you're saying that there 00:07:49.420 --> 00:07:51.740 might be a different amount, if you come back for another 00:07:51.740 --> 00:08:00.439 one-year extension? Um, I think we might. If bond, if 00:08:00.449 --> 00:08:03.889 if we were to get more protective bond deals, we may 00:08:03.889 --> 00:08:10.680 have to um request an amendment. But I think. For a different amount? Yes, 00:08:10.680 --> 00:08:14.819 one thing we have to consider is we try and have these 00:08:14.829 --> 00:08:20.430 expire at the end of the biennium. So when we go into 00:08:20.430 --> 00:08:23.509 a new biennium we may have to um, as far as our 00:08:23.509 --> 00:08:32.470 internal budget limits have to uh, you know, figure 00:08:32.470 --> 00:08:35.210 out again what our total contract amount we might need 00:08:35.210 --> 00:08:37.799 it to be. David, a good example of that is with the 00:08:37.799 --> 00:08:41.809 bow dark, we had to do two different bond sales for 00:08:41.820 --> 00:08:47.740 um North Texas. And that would increase the, the annual 00:08:47.740 --> 00:08:51.230 cost, the one-year cost most likely to Hilltop, correct? 00:08:51.240 --> 00:08:53.580 Yes, something like that. But we have to evaluate it 00:08:53.580 --> 00:08:56.809 every year. Because our, we could have to go out for 00:08:56.820 --> 00:09:02.340 for more spot and sales. So the overall $4.9 may or 00:09:02.340 --> 00:09:06.909 may not increase, depending on if you execute two more 00:09:06.919 --> 00:09:09.269 one-year renewals? And depending on what they are. And 00:09:09.269 --> 00:09:14.250 this one was based on um, I believe a uh and as 00:09:14.259 --> 00:09:17.169 you know, three sales a SRF, a GO and 00:09:17.169 --> 00:09:20.629 a SWIFT. Okay, thank you. And those three sales are 00:09:20.629 --> 00:09:23.960 traditionally what we do, but it's not, it's not set in 00:09:23.960 --> 00:09:28.480 stone. Occasionally we have to have additional, depending 00:09:28.480 --> 00:09:31.580 on the applications that come in. And if this GEO sale 00:09:31.580 --> 00:09:33.960 that we're gonna be initiating where to be split into 00:09:33.960 --> 00:09:37.960 two, that would increase the costs. 00:09:37.960 --> 00:09:42.519 Thank you. Well um, Hilltop has always been a fantastic 00:09:42.519 --> 00:09:48.169 partner. Um, Anne is our north star. Um, in terms of our 00:09:48.179 --> 00:09:51.269 financial programs and our bond sales. And I'm just 00:09:51.279 --> 00:09:54.480 I feel so lucky to have her as an advisor. So with 00:09:54.480 --> 00:09:58.039 that, is there a motion? Uh, yes. Madam Chairwoman, I move 00:09:58.039 --> 00:10:00.620 to authorize the Executive Administrator to exercise 00:10:00.620 --> 00:10:03.200 the option to renew the existing contract with Hilltop 00:10:03.200 --> 00:10:06.080 Securities Inc., for a one-year term beginning March 00:10:06.080 --> 00:10:10.190 1, 2023, at a cost of $980,000. And authorizing up to 00:10:10.190 --> 00:10:13.139 two additional one-year renewal options per the contract 00:10:13.139 --> 00:10:16.690 terms, for a total contract amount not to exceed $4.9 00:10:16.690 --> 00:10:19.429 million as recommended by Executive Administrator. Is 00:10:19.429 --> 00:10:23.659 their a second? I second. All those in favor, say aye. Aye. The motion 00:10:23.659 --> 00:10:30.470 passes. Aye. The motion passes. Thank you. Next item please, Ashley. Chairwoman, 00:10:30.470 --> 00:10:33.740 the next item on the Agenda is consider authorizing 00:10:33.740 --> 00:10:36.779 the Executive Administrator, Chief Financial Officer, 00:10:36.779 --> 00:10:39.279 General Counsel and Development Fund Manager to take 00:10:39.289 --> 00:10:42.649 all necessary actions for the issuance, sale and delivery 00:10:42.950 --> 00:10:46.039 of State of Texas Water Financial Assistance and Refunding 00:10:46.039 --> 00:10:49.279 Bonds, in one or more series. And approving the selection 00:10:49.279 --> 00:10:52.529 of financial advisor, bond counsel, disclosure counsel, 00:10:52.710 --> 00:10:55.450 senior managing underwriter, and co-managing underwriters 00:10:55.450 --> 00:10:58.570 for the negotiation of the bonds. And David Duran will 00:10:58.570 --> 00:11:02.259 also present to the Board on this item today. Once 00:11:02.259 --> 00:11:04.230 again, I'm David Duran with the Executor Administrator 00:11:04.230 --> 00:11:07.440 Staff. This item seeks approval to initiate the process 00:11:07.440 --> 00:11:10.009 for a general bond obligations, general obligation 00:11:10.009 --> 00:11:13.019 bond sale. Which will provide proceeds for new financial 00:11:13.019 --> 00:11:17.830 assistance for DFUND and EDAP. And to refund outstanding 00:11:17.830 --> 00:11:20.950 Water Financial Assistance Bonds. Hilltop will serve 00:11:20.950 --> 00:11:24.330 as the financial advisor. And we proposed Orrick, Herrington 00:11:24.330 --> 00:11:27.750 & Sutcliffe as bond counsel, and Bracewell as disclosure 00:11:27.750 --> 00:11:31.279 counsel. For the underwriting team, we recommend Siebert 00:11:31.279 --> 00:11:35.019 Williams Shank & Co., LLC, to serve as senior 00:11:35.019 --> 00:11:37.929 managing underwriter for the transaction. And recommended 00:11:37.929 --> 00:11:40.179 co-managing underwriters include BOK Financial 00:11:40.179 --> 00:11:44.860 Securities, Ramirez, and Wells Fargo Securities. If 00:11:44.860 --> 00:11:47.740 approved, we will finalize timelines, engage service 00:11:47.740 --> 00:11:50.919 providers and undertake the initial debt issuance process 00:11:50.919 --> 00:11:53.690 to prepare the bonds for sale. The Executive Administrator 00:11:53.690 --> 00:11:56.149 would return to the Board for a formal approval of the 00:11:56.149 --> 00:12:00.500 bond sale next month. Including the not to exceed size 00:12:00.509 --> 00:12:03.450 and the associated documents for any series to be issued 00:12:03.460 --> 00:12:07.250 under this authorization. 00:12:07.250 --> 00:12:11.470 Thanks David. Questions, comments? No questions for me. 00:12:11.470 --> 00:12:14.649 I think the selection of advisors here is right on 00:12:14.649 --> 00:12:17.110 par. And and y'all do a great job kind of rotating 00:12:17.110 --> 00:12:19.909 through that, that queue. And making sure we have the right 00:12:19.909 --> 00:12:23.090 folks in place, so. Uh, just a quick question on the 00:12:23.090 --> 00:12:27.710 2%. Um, it's my understanding that we won't move forward 00:12:27.710 --> 00:12:30.779 unless there's a 2% savings. Is that correct? On the 00:12:30.779 --> 00:12:37.809 refunding, our policy. We can refund bonds with a less 00:12:37.809 --> 00:12:42.820 than 2% NPV savings in certain circumstances for program 00:12:42.820 --> 00:12:47.600 goals. But we generally we want at least 2% NPV savings. 00:12:47.600 --> 00:12:53.779 And so given market volatility, we may not want to 00:12:53.779 --> 00:12:58.009 pull the trigger. We don't want to have to pull the 00:12:58.009 --> 00:13:01.340 refunding sale, you know, the day of the pricing. If 00:13:01.340 --> 00:13:04.519 it just dips right below 2%. So we're gonna be monitoring 00:13:04.529 --> 00:13:09.389 um, the projected savings and trying not to, not 00:13:09.389 --> 00:13:14.669 to hit right on the 2% and try and exceed that. Okay. 00:13:16.490 --> 00:13:19.610 So generally speaking, our goal is to have at least 00:13:19.610 --> 00:13:23.889 a 2% savings. And for many years we've had well, well 00:13:23.889 --> 00:13:28.460 above that. But um, last Fall rates spiked quite a bit. 00:13:28.470 --> 00:13:33.080 They've been falling again. So we're increasingly, um 00:13:33.090 --> 00:13:36.830 in projecting our savings. But again it could, it could 00:13:36.830 --> 00:13:40.509 turn again. Okay, thank you. And it also depends on the structure that 00:13:40.509 --> 00:13:45.720 we choose. Thank you. Thanks, uh EDAP is near and dear 00:13:45.720 --> 00:13:49.830 to my heart, so I'm happy to get this rolling. Um, again 00:13:49.830 --> 00:13:52.000 not to beat a dead horse, but maybe to beat a dead 00:13:52.000 --> 00:13:56.850 horse. Georgia, puts a lot of thought and you, David 00:13:56.850 --> 00:14:01.159 and the whole team. Into who gets to senior these transactions 00:14:01.159 --> 00:14:03.559 and I'm excited to see what Siebert is going to do 00:14:03.559 --> 00:14:06.320 with that. But again, it is a thoughtful and deliberate 00:14:06.330 --> 00:14:08.740 process. And we only pick the best to represent the 00:14:08.740 --> 00:14:12.350 State of Texas. Thank you. With that, is there a motion? 00:14:13.070 --> 00:14:15.919 Um Madam Chair, I move we authorized the Executive 00:14:15.919 --> 00:14:18.470 Administrator, the Chief Financial Officer, General 00:14:18.470 --> 00:14:21.179 Counsel and Development Fund Manager to take all necessary 00:14:21.179 --> 00:14:24.019 actions for issuance, sale and delivery of State of 00:14:24.019 --> 00:14:26.919 Texas Water Financial Assistance and Refunding Bonds, 00:14:26.929 --> 00:14:29.690 in one or more series. And approving the selection of 00:14:29.700 --> 00:14:33.070 financial advisor, bond counsel, disclosure counsel, senior 00:14:33.070 --> 00:14:36.000 managing underwriter and co-managing underwriters for 00:14:36.000 --> 00:14:38.080 the negotiation of the bonds as recommended by the 00:14:38.080 --> 00:14:40.850 Executive Administrator. Is there a second? I second. 00:14:40.860 --> 00:14:44.289 All those in favor, say aye. Aye. The motion passes. 00:14:44.299 --> 00:14:47.750 Thanks David. You're a gentleman and a scholar. Item 00:14:47.750 --> 00:14:51.720 number four please. Chairwoman, item number four is briefing 00:14:51.720 --> 00:14:54.649 regarding material changes to contracts for goods and 00:14:54.649 --> 00:14:57.370 services executed during the first quarter of fiscal 00:14:57.370 --> 00:15:01.370 year 2023. And the contract and performance report 00:15:01.370 --> 00:15:05.179 for the first quarter of fiscal year 2023. And Cameron 00:15:05.179 --> 00:15:07.460 Turner is here to present to the Board on this item 00:15:07.460 --> 00:15:10.750 today. Good morning Chairwoman Paup, Director Peyton, 00:15:10.759 --> 00:15:13.309 Director Stepney. For the record, Cameron Turner of 00:15:13.309 --> 00:15:16.289 the Executive Administrator's Staff. This item is for 00:15:16.289 --> 00:15:18.870 your consideration of a report regarding material changes 00:15:18.870 --> 00:15:22.080 for contracts for goods and services awarded under 00:15:22.080 --> 00:15:25.909 Chapter 2155 of the Texas Government Code, executed 00:15:25.909 --> 00:15:29.870 during the first quarter of fiscal year 2023. As well 00:15:29.870 --> 00:15:33.820 as, a report covering the performance and contract monitoring 00:15:33.820 --> 00:15:37.620 for new contracts also executed during the first quarter 00:15:37.629 --> 00:15:40.860 of this year. According to Texas Administrative Code 00:15:40.860 --> 00:15:45.500 Chapter 353. The reports for material changes to contracts 00:15:45.500 --> 00:15:47.909 and purchase orders is included in Attachments 1 00:15:47.909 --> 00:15:51.809 and 2. And the contract monitoring report in Attachment 00:15:51.820 --> 00:15:55.059 3. Again, this is a briefing item only. No action 00:15:55.059 --> 00:15:58.509 required on your part today. And I'm available for 00:15:58.509 --> 00:16:02.539 any questions. Questions, comments? On the material changes, is 00:16:02.539 --> 00:16:05.139 that a percentage change that you guys track or is 00:16:05.139 --> 00:16:07.169 that a flat dollar amount? And anything above that dollar 00:16:07.169 --> 00:16:08.919 amount gets grouped into material change? That's, that's 00:16:08.919 --> 00:16:11.529 a great question. Statute requires that this report 00:16:11.539 --> 00:16:14.610 include and they define material changes as those that 00:16:14.620 --> 00:16:18.690 extend the length or postpone the completion of a contract 00:16:18.690 --> 00:16:22.049 for 6 months by 6 months or more. Or increase the 00:16:22.049 --> 00:16:25.309 total consideration to be paid by a contract by at 00:16:25.309 --> 00:16:30.230 least 10%. By 10%. That's a great question. No comments. 00:16:30.850 --> 00:16:33.720 Thanks Cameron for keeping an eagle eye on our contracts. 00:16:34.629 --> 00:16:38.299 Ashley, next item please. Chairwoman, the next item 00:16:38.299 --> 00:16:41.269 on the Agenda is consider adopting and authorizing 00:16:41.269 --> 00:16:44.700 the publication of amendments to 31 Texas Administrative 00:16:44.700 --> 00:16:49.409 Code, section 358.6 relating to water loss audits. 00:16:49.419 --> 00:16:52.149 And John Sutton is here to present to the Board on 00:16:52.149 --> 00:16:56.080 this item today. Good morning Chairwoman Paup, Director 00:16:56.080 --> 00:16:59.570 Stepney and Director Peyton. For the record, I'm John 00:16:59.570 --> 00:17:02.919 Sutton with the Executive Administrator's Staff. Um, this 00:17:02.919 --> 00:17:05.240 item originally came to the Board in November. When 00:17:05.240 --> 00:17:08.069 you approved posting the proposed rules for comment. 00:17:08.289 --> 00:17:10.799 These amendments include revisions to the water loss 00:17:10.799 --> 00:17:13.640 thresholds and new requirements for validation of 00:17:13.640 --> 00:17:17.140 water loss audits. Current water loss thresholds are 00:17:17.140 --> 00:17:20.480 based on data from the 2010 water loss audits. The 00:17:20.480 --> 00:17:23.240 new thresholds are based on quality controlled statewide 00:17:23.240 --> 00:17:28.609 data. Um, from audits through from 2015 through 2020, 00:17:28.619 --> 00:17:32.339 and are basically the median value of that data. We 00:17:32.339 --> 00:17:34.809 are also proposing the change the metrics to be based 00:17:34.809 --> 00:17:37.750 on connection density rather than population. Which 00:17:37.750 --> 00:17:40.640 is in line with industry's approach to water loss performance 00:17:40.640 --> 00:17:44.839 indicators. The thresholds only applied to utilities 00:17:44.839 --> 00:17:47.089 that are requesting financial assistance for a water 00:17:47.089 --> 00:17:50.009 project. If the utility is above its threshold, they 00:17:50.009 --> 00:17:52.880 must include funds to mitigate their water loss. If 00:17:52.880 --> 00:17:57.039 they are, if they are planning to address their 00:17:57.039 --> 00:18:00.210 loss, they may request a waiver from doing so. The 00:18:00.210 --> 00:18:03.670 new thresholds would be effective to applications received 00:18:03.670 --> 00:18:08.210 after July 1, 2023. The amendments also include new 00:18:08.210 --> 00:18:11.960 requirements for water loss validation. A process currently 00:18:11.960 --> 00:18:15.279 used by several states across the country. Water loss 00:18:15.279 --> 00:18:18.210 validation can assist utilities in the State, better 00:18:18.210 --> 00:18:21.750 direct water loss mitigation resources and funding. 00:18:22.450 --> 00:18:25.619 This new section requires all utilities receiving financial 00:18:25.619 --> 00:18:28.640 assistance from the Board to have the required annual 00:18:28.640 --> 00:18:32.779 water loss audits to be validated starting January 1, 00:18:32.779 --> 00:18:35.109 2025. 00:18:35.109 --> 00:18:37.789 TWDB Staff will be validating the submitted 00:18:37.789 --> 00:18:41.119 water loss audit in conference with the utility. The 00:18:41.119 --> 00:18:44.009 rules allow utility to have the water loss audit validated 00:18:44.009 --> 00:18:47.609 by others. If the validation follows guidelines. These 00:18:47.619 --> 00:18:51.880 uh, that will be establishing or/and is performed by 00:18:51.880 --> 00:18:53.970 a person other than the person submitting the water 00:18:53.970 --> 00:18:57.150 loss audit, and has been certified to conduct validation. 00:18:58.119 --> 00:19:01.460 We plan to begin offering validation services later 00:19:01.460 --> 00:19:04.890 this year on a voluntary basis. To help facilitate 00:19:04.900 --> 00:19:08.960 utility compliance with this requirement. Uh as a note, 00:19:08.960 --> 00:19:11.420 three of us took water loss validation training and 00:19:11.420 --> 00:19:14.500 certification last week. And you now have three certified 00:19:14.500 --> 00:19:19.470 water loss audit validators on Staff. So, um after posting 00:19:19.470 --> 00:19:21.680 for public comment, we received comments from three 00:19:21.680 --> 00:19:25.160 utilities, one environmental organization and consultant. 00:19:25.170 --> 00:19:27.690 The comments ranged from questions regarding the existing 00:19:27.690 --> 00:19:30.660 rules, questions on how the thresholds were determined. 00:19:30.660 --> 00:19:33.109 As well as questions about the validation process. 00:19:33.769 --> 00:19:36.210 Digital information is included with the memo and 00:19:36.210 --> 00:19:39.670 the attached rulemaking proposed for adoption. Currently 00:19:39.670 --> 00:19:42.119 we're in the process of preparing an overview of the 00:19:42.119 --> 00:19:45.269 threshold calculations that will be, we will make available. 00:19:45.279 --> 00:19:48.259 And are drafting validation guidelines and frequently 00:19:48.259 --> 00:19:51.380 asked questions to be posted on our website. Additional 00:19:51.380 --> 00:19:53.789 information about validation will also be included 00:19:53.789 --> 00:19:57.029 in our loss use and conservation training workshops. 00:19:57.039 --> 00:19:59.480 Starting with the two we have scheduled over the next 00:19:59.480 --> 00:20:04.099 two months. We hope to soon to be able to post 2 positions 00:20:04.099 --> 00:20:06.500 for Water Loss Audit Specialists, that will focus on 00:20:06.500 --> 00:20:09.690 validations. We are in the process of hiring a business 00:20:09.690 --> 00:20:12.609 analyst and later develop, developer to assist with 00:20:12.609 --> 00:20:16.089 revisions needed to our online audit reporting application 00:20:16.089 --> 00:20:20.069 to be able to conduct the validations. So in order 00:20:20.069 --> 00:20:22.559 to be current with recent water loss data, industry 00:20:22.559 --> 00:20:25.500 performance indicators and industry standards. Standard 00:20:25.500 --> 00:20:28.390 practices such as water loss validation, the Executive 00:20:28.390 --> 00:20:31.450 Administrator recommends adopting uh, these amendments 00:20:31.450 --> 00:20:34.859 relating to water loss. I'm glad to answer any questions. 00:20:35.049 --> 00:20:37.900 Thank you, John. Excellent briefing. Questions, comments? 00:20:38.019 --> 00:20:40.259 You know, water loss is a huge issue across the State right now. 00:20:40.259 --> 00:20:42.460 And I think it's on everybody's radar that we have 00:20:42.460 --> 00:20:45.430 aging infrastructure and, and pipes leaking water into 00:20:45.430 --> 00:20:47.349 the ground. And that's a, that's a big problem for 00:20:47.349 --> 00:20:49.970 a State that, you know, needs every drop that we can 00:20:49.970 --> 00:20:53.970 have. Uh, so moving to a simplified threshold based 00:20:53.970 --> 00:20:56.880 on density. I think is is a very smart move. And then 00:20:56.880 --> 00:20:59.329 also validating these results and making sure that 00:20:59.329 --> 00:21:03.359 they are actually um, telling us what we think they're 00:21:03.359 --> 00:21:06.349 telling us. And making sure it's, it's all accurate 00:21:06.349 --> 00:21:09.809 and correct is uh, is extremely important. So I'm on 00:21:09.809 --> 00:21:14.559 board. Thank you. Well, I just wanted to also commend Staff for 00:21:14.559 --> 00:21:18.160 your effort to just modernize our approach. And also 00:21:18.160 --> 00:21:22.710 working with industry, and looking at other states and 00:21:22.710 --> 00:21:27.349 just to um, you sound science the most up to date science. 00:21:27.349 --> 00:21:29.920 And again, water loss is so important as well as the 00:21:29.920 --> 00:21:33.559 validation process. I did have a question. So as I 00:21:33.559 --> 00:21:39.440 understand it, utilities um, can you utilize our, our 00:21:39.440 --> 00:21:42.690 folks or they can have a third-party entity do their 00:21:42.690 --> 00:21:46.119 validation process. Is that correct? Yes. Well, we're 00:21:46.119 --> 00:21:50.559 bringing on additional Staff and they will kind of. 00:21:50.569 --> 00:21:53.539 The process will be they'll first become familiar with 00:21:53.539 --> 00:21:56.309 our audit water loss, audit process and then go into 00:21:56.309 --> 00:21:59.480 the validation. And then we will be conducting the validation 00:21:59.490 --> 00:22:02.559 for the utilities or with the utilities. I guess I 00:22:02.559 --> 00:22:06.569 should use utilities versus um, because it's uh anyone 00:22:06.569 --> 00:22:10.319 who's impacted. Also, when will the guidelines be available 00:22:10.319 --> 00:22:15.180 for those folks who choose to go that route? We hope 00:22:15.180 --> 00:22:18.289 to have something prepared the next couple of months. 00:22:18.289 --> 00:22:22.410 But we're also seeing um, between now and when it actually 00:22:22.410 --> 00:22:26.789 becomes required. It's kind of a process, a development 00:22:26.789 --> 00:22:28.829 process to be honest with you. The training that we 00:22:28.829 --> 00:22:31.369 took last week provided us a lot of insight. That we 00:22:31.369 --> 00:22:34.910 are now applying to, to be included into that guidance 00:22:34.910 --> 00:22:40.160 document. And then as we start um, doing the validation 00:22:40.160 --> 00:22:42.559 on a voluntary basis. Later this, starting later this 00:22:42.559 --> 00:22:45.230 year. We also see that we continue making improvements. 00:22:45.230 --> 00:22:47.420 But, but I would say that we'll have something in the 00:22:47.420 --> 00:22:49.299 next couple of months that will be out there. I think 00:22:49.299 --> 00:22:52.099 that would be good. Because in looking at some of the 00:22:52.099 --> 00:22:54.430 comments, that some of the comments that we received. 00:22:54.430 --> 00:22:57.500 As one with the um, those resources be available if 00:22:57.500 --> 00:23:01.609 they choose to use and, and another entity. The utility 00:23:01.609 --> 00:23:03.990 uses another entity. So I think that's important for 00:23:03.990 --> 00:23:08.279 us to get in place. Certainly. Okay. John this has 00:23:08.279 --> 00:23:12.230 been a huge labor of love for you. And I know that 00:23:12.240 --> 00:23:15.980 the better the water loss data that we have. Again, 00:23:15.980 --> 00:23:17.930 the better the science and the better the planning. 00:23:17.930 --> 00:23:21.579 Like we say at the Board and congratulations on your 00:23:21.579 --> 00:23:24.059 training and your certification, and with your team. 00:23:24.069 --> 00:23:27.430 Thank you for always striving for continuous improvement. 00:23:27.440 --> 00:23:33.500 Thank you. Appreciate it. Oh and when are the workshops? February 21st and March 21st. 00:23:33.500 --> 00:23:38.259 Perfect. All y'all watching on the the internets and 00:23:38.259 --> 00:23:41.519 the interwebs. That's when the workshops are. Thank 00:23:41.519 --> 00:23:45.599 you John. Is there a motion? Madam Chair, I move to adopt 00:23:45.599 --> 00:23:48.640 an authorize publication of 31 Texas Administrative 00:23:48.640 --> 00:23:52.680 Code, Section 358.6 relating to water loss audits as 00:23:52.680 --> 00:23:54.859 recommended by our Executive Administrator. Is there 00:23:54.859 --> 00:23:58.710 a second? I second. All those in favor, say aye. Aye. The motion 00:23:58.710 --> 00:24:04.160 passes. Thank you. Thank you John. Ashley, item six please. Chairwoman, 00:24:04.170 --> 00:24:07.940 item six is consider adopting and authorizing publication 00:24:07.940 --> 00:24:11.220 of additions and amendments to 31 Texas Administrative 00:24:11.220 --> 00:24:16.480 Code chapters 363, 371 and 375 relating to the 00:24:16.480 --> 00:24:19.759 use of alternative project delivery methods for construction 00:24:19.759 --> 00:24:22.849 projects financed by Texas Water Development Board. 00:24:22.920 --> 00:24:25.549 And Joe Reynolds is here to present to the Staff on this 00:24:25.549 --> 00:24:30.680 item today. Good morning Chairwoman Paup, Director Peyton, 00:24:30.680 --> 00:24:33.779 Director Stepney. For the record, I am Joe Reynolds 00:24:33.779 --> 00:24:37.930 with the Office of General Counsel. At the November 00:24:37.930 --> 00:24:41.900 meeting, last November. You authorized publication of 00:24:41.910 --> 00:24:46.069 proposed additions and amendments to the Texas Development 00:24:46.079 --> 00:24:49.930 Board rules relating to the use of alternative delivery 00:24:49.940 --> 00:24:54.190 project methods. For construction projects that are 00:24:54.190 --> 00:24:59.210 financed by the TWDB. The proposed amendments incorporate 00:24:59.210 --> 00:25:03.339 by reference and identify the alternative delivery 00:25:03.349 --> 00:25:08.650 guidance that was presented to you last month. As containing 00:25:08.650 --> 00:25:11.910 the process and requirements for use of alternative 00:25:11.910 --> 00:25:16.430 methods of contract delivery on TWDB financed 00:25:16.430 --> 00:25:20.369 projects. The proposed amendments were published in 00:25:20.369 --> 00:25:23.819 the December 2 Texas Register. The comment period 00:25:23.819 --> 00:25:27.849 ended on January 2nd. No comments were received and 00:25:27.849 --> 00:25:31.630 no changes were made in the rules, as they were proposed. 00:25:32.299 --> 00:25:35.910 Therefore, the Executive Administrator recommends adoption 00:25:35.910 --> 00:25:39.170 of the amendments as proposed and authorization to 00:25:39.170 --> 00:25:43.309 publish the revised rules. I'm available for any question. 00:25:44.589 --> 00:25:48.390 Questions, comments? No comments. Um, I just think it's 00:25:48.390 --> 00:25:51.210 great. That you guys have, you know, taken this step 00:25:51.220 --> 00:25:54.480 to just make sure our guidance is clear and working 00:25:54.480 --> 00:25:59.289 with, working with stakeholders. So nothing for me. If 00:25:59.289 --> 00:26:02.859 you're ready Madam Chair? Uh, hold on. Okay, y'all are 00:26:02.859 --> 00:26:06.500 gonna love this. This effort has embraced innovation 00:26:06.509 --> 00:26:10.630 and is having a significant impact on delivering projects 00:26:10.630 --> 00:26:13.710 more efficiently. Our Staff has showed tremendous pride 00:26:13.720 --> 00:26:16.509 and putting forth the best work product and Staff have 00:26:16.509 --> 00:26:19.650 been accountable to our stakeholders. The four core 00:26:19.650 --> 00:26:24.279 values. Thank you. Is there a motion? Madam Chair, I 00:26:24.279 --> 00:26:26.750 move we adopt an authorize publication of additions 00:26:26.750 --> 00:26:29.839 and amendments to 31 Texas Administrative Code Chapters 00:26:29.839 --> 00:26:33.519 363, 371 and 375 relating to the use of 00:26:33.519 --> 00:26:36.190 alternative project delivery methods. For construction 00:26:36.190 --> 00:26:38.480 projects financed by the Texas Water Development Board 00:26:38.480 --> 00:26:40.960 as recommended by our Executive Administrator. Is there 00:26:40.960 --> 00:26:44.609 a second? I second. All those in favor, say aye. Aye. Thank 00:26:44.609 --> 00:26:49.619 you. The motion passes. Thanks Joe. Thanks Joe. 00:26:49.619 --> 00:26:53.990 Ashley, item seven please. Chairwoman, item seven is consider 00:26:53.990 --> 00:26:57.200 approving by resolution a request from the Greater 00:26:57.200 --> 00:27:00.700 Texoma Utility Authority approving amendments to outstanding 00:27:00.700 --> 00:27:03.420 bonds purchased by the Texas Water Development Board 00:27:03.480 --> 00:27:06.589 and delegating authority to the Executive Administrator 00:27:06.589 --> 00:27:09.960 and his Staff. To take any actions necessary to facilitate 00:27:09.960 --> 00:27:13.190 the request. And Alexis Lorick is here to present on 00:27:13.190 --> 00:27:16.730 this item today. Good morning Chairwoman Paup, Director 00:27:16.730 --> 00:27:19.390 Peyton and Director Stepney. Um, this item before 00:27:19.390 --> 00:27:21.990 your consideration is the approval by resolution of 00:27:21.990 --> 00:27:25.380 a request by the Greater Texoma Utility Authority for 00:27:25.380 --> 00:27:28.099 certain amendments to outstanding bonds purchased by 00:27:28.099 --> 00:27:30.799 the Texas Water Development Board and delegating authority 00:27:30.799 --> 00:27:33.380 to the EA and his Staff. To take any actions necessary 00:27:33.380 --> 00:27:36.930 to facilitate this request. In December of last year, 00:27:36.930 --> 00:27:39.380 GTUA submitted a request for authorization to 00:27:39.380 --> 00:27:42.549 amend three series of outstanding bonds. That financed 00:27:42.549 --> 00:27:44.789 water storage and utility system improvements for the 00:27:44.789 --> 00:27:48.200 city of Gunter, Texas. The City of Gunter now seeks 00:27:48.200 --> 00:27:51.519 to sell this utility system to Mustang Special Utility 00:27:51.529 --> 00:27:55.259 District. Through an asset purchase and operations agreements 00:27:55.259 --> 00:27:58.500 between the city and Mustang SUD. The outstanding GTUA 00:27:58.500 --> 00:28:01.680 bonds are secured with a pledge of contract revenues 00:28:01.680 --> 00:28:04.160 established through a contract between GTUA 00:28:04.170 --> 00:28:06.539 and the City of Gunter. So the City of Gunter seeks 00:28:06.539 --> 00:28:09.089 to convey its entire utility system, its assets and 00:28:09.109 --> 00:28:13.079 liabilities to Mustang SUD. GTUA's requesting 00:28:13.079 --> 00:28:15.849 today to amend the three outstanding bond obligations 00:28:15.849 --> 00:28:19.559 that it has with the Water Board. To substitute or assign 00:28:19.569 --> 00:28:22.299 the contract pledged to repayment of its obligations 00:28:22.299 --> 00:28:25.990 to us from the city of Gunter to Mustang SUD. So Mustang 00:28:25.990 --> 00:28:27.769 SUD will step into the shoes of City of Gunter and 00:28:27.769 --> 00:28:29.839 they will repay the obligations through the, through 00:28:29.839 --> 00:28:34.930 the management of the city's utility system. The bonds 00:28:34.930 --> 00:28:37.440 themselves provide for covenants that say that they 00:28:37.440 --> 00:28:39.920 may be amended by GTUA with the consent of the 00:28:39.920 --> 00:28:42.269 Board. Since the Board is the majority bondholder of 00:28:42.279 --> 00:28:45.309 those bonds. So GTUA would remain the obligor 00:28:45.309 --> 00:28:47.740 to the Water Board. And none of those securities 00:28:47.740 --> 00:28:50.430 that are currently registered with DTC would change. 00:28:50.440 --> 00:28:52.799 The prior contracts between GTUA and the City of 00:28:52.799 --> 00:28:55.099 Gunter will be amended to allow for the assignment. 00:28:55.109 --> 00:28:57.390 And the city of Gunter will then assign their contract 00:28:57.400 --> 00:29:00.089 in the interest in the contract, and those amended 00:29:00.089 --> 00:29:03.839 contracts to Mustang SUD. In the process of working 00:29:03.839 --> 00:29:06.680 this deal out. GTUA has received confirmation 00:29:06.680 --> 00:29:09.220 from the Attorney General's Office Public Finance Division. 00:29:09.230 --> 00:29:11.579 That these proposed amendments would not be a reissuance 00:29:11.579 --> 00:29:14.880 underneath state securities laws. And tax counsel 00:29:14.880 --> 00:29:17.730 for the bond counsel for GTUA. Has submitted 00:29:17.730 --> 00:29:20.170 in writing to the Water Board that the proposed amendments 00:29:20.180 --> 00:29:22.369 would not also constitute a reissuance underneath 00:29:22.369 --> 00:29:26.900 federal tax laws. Our financial examiners have uh, no 00:29:26.900 --> 00:29:29.279 objections related to the financial condition of Mustang 00:29:29.279 --> 00:29:32.490 SUD. To assume the debt um, and to assume repayment 00:29:32.500 --> 00:29:35.789 of the city of Gunter's obligations to GTUA. So 00:29:35.789 --> 00:29:38.710 with all of that it's rather lengthy. The EA recommends 00:29:38.710 --> 00:29:41.650 approval of the amendments to the outstanding GTO 00:29:41.650 --> 00:29:43.869 bonds that are included as part of your backup and 00:29:43.869 --> 00:29:46.210 have been posted today with the Agenda. And it also 00:29:46.210 --> 00:29:48.480 requests a limited delegation of authority to act as 00:29:48.480 --> 00:29:51.299 necessary to facilitate the amendments. The process 00:29:51.299 --> 00:29:54.740 that happens now is that the Board for Mustang SUD 00:29:54.740 --> 00:29:58.740 will again continue to negotiate and revise these draft 00:29:58.740 --> 00:30:00.630 amendments. They will go to their Board, they will 00:30:00.630 --> 00:30:02.750 approve the amendments. And eventually there's gonna 00:30:02.750 --> 00:30:04.660 be like a mini closing process with the Attorney General's 00:30:04.660 --> 00:30:07.970 Office. Where they will provide all of the amended resolutions 00:30:07.970 --> 00:30:09.980 to the general, to the Attorney General's Office for 00:30:09.980 --> 00:30:12.839 review. And then we will receive updated documents to 00:30:12.849 --> 00:30:16.359 reflect changes in our internal system. I'm available 00:30:16.359 --> 00:30:19.140 for any questions or comments. Excellent Alexis. Questions, 00:30:19.140 --> 00:30:22.509 comments? Yeah, so my primary concern, you know, upon 00:30:22.509 --> 00:30:24.640 hearing this. Is just making sure that the TWDB 00:30:24.640 --> 00:30:27.630 still had the same, uh security pledge when this 00:30:27.640 --> 00:30:30.880 was in the same kind of financial place. As we would 00:30:30.880 --> 00:30:33.670 have been uh, you know, under initially underwriting 00:30:33.670 --> 00:30:37.069 this loan. Um, and so upon reviewing those financials 00:30:37.069 --> 00:30:38.869 like I think this is a, this is a win for the 00:30:38.869 --> 00:30:41.200 Board honestly. Like we're in a much better place from 00:30:41.200 --> 00:30:44.140 a security standpoint. Um and having having Mustang 00:30:44.140 --> 00:30:46.630 step in here. So I think this makes a ton of sense. 00:30:48.069 --> 00:30:52.579 Well then of course regionalization, um can be very 00:30:52.579 --> 00:30:55.920 helpful, and so this project would do that. And also 00:30:55.930 --> 00:30:59.240 I think what stood up for me when um, Alexis briefed 00:30:59.240 --> 00:31:03.829 me was. GTUA still remains responsible. Correct. 00:31:03.839 --> 00:31:07.599 For the obligation to the board. Correct. And so I don't have 00:31:07.599 --> 00:31:10.579 any other questions, Madam Chair. Alexis, y'all have 00:31:10.579 --> 00:31:14.140 done an incredible job on a very, very complicated issue. 00:31:14.140 --> 00:31:16.759 And I'd like to thank our partners over at OAG 00:31:16.759 --> 00:31:20.539 for helping as well. They're um, they're a great partner. 00:31:20.549 --> 00:31:24.680 Um, just to reemphasize this assignment has no fiscal 00:31:24.680 --> 00:31:27.970 impact on Texas Water Development Board. That is correct. 00:31:27.980 --> 00:31:31.940 Whatsoever. Whatsoever. In fact the financial submitted 00:31:31.940 --> 00:31:34.769 for Mustang SUD, and that are publicly available are 00:31:34.779 --> 00:31:38.250 extremely healthy. So substituting Mustang SUD to 00:31:38.259 --> 00:31:41.339 do the repayment obligations for the City of Gunter. No negative impact. 00:31:41.349 --> 00:31:44.039 No negative impact. And additionally we wouldn't be 00:31:44.039 --> 00:31:46.410 allowed to bring an item to you that would have a negative 00:31:46.410 --> 00:31:48.359 impact on the repayment of those bonds. Because they're 00:31:48.359 --> 00:31:52.269 restricted as such in the securities. Appreciate it, 00:31:52.279 --> 00:31:55.710 and thank you for all your work on this. Yeah Alexis, really appreciate it. Is there a 00:31:55.710 --> 00:31:58.779 motion? Madam Chair, I move to adopt a resolution or 00:31:58.779 --> 00:32:01.490 request from the Greater Texoma Utility Authority, 00:32:01.519 --> 00:32:04.210 approving amendments to outstanding bonds purchased 00:32:04.210 --> 00:32:06.650 by the Texas Water Development Board and delegating 00:32:06.650 --> 00:32:08.900 authority to the Executive Administrator and his Staff. 00:32:08.900 --> 00:32:12.269 To take any actions necessary to facilitate the request 00:32:12.309 --> 00:32:14.690 as recommended by our Executive Administrator. Is there 00:32:14.690 --> 00:32:17.970 a second? I second. All those in favor, say aye. Aye. 00:32:18.009 --> 00:32:21.660 The motion passes. Good job Alexis. Thank you. Item 00:32:21.660 --> 00:32:24.950 number eight. Chairwoman, item number eight is 00:32:24.950 --> 00:32:27.930 approved by resolution a request from the Tri-Try 00:32:27.930 --> 00:32:31.250 Water Supply Corporation for financing from the Drinking 00:32:31.250 --> 00:32:33.769 Water State Revolving Fund for planning, design and 00:32:33.769 --> 00:32:36.750 construction of a water system improvements project. 00:32:36.950 --> 00:32:39.450 And Tom Barnett is here to present to the Board on this 00:32:39.450 --> 00:32:43.369 item today. Good morning Chairwoman Paup, Director Stepney 00:32:43.369 --> 00:32:46.400 Director Peyton. For the record, Tom Barnett of the Executive 00:32:46.400 --> 00:32:49.640 Administrator's Staff. Tri-Try Water Supply Corporation 00:32:49.650 --> 00:32:52.119 provides water service to approximately 80 residents 00:32:52.119 --> 00:32:55.569 in rural Stonewall County, roughly 60 miles Northwest 00:32:55.569 --> 00:32:59.150 of Abilene. The Corporation's existing entry point 00:32:59.150 --> 00:33:01.500 pump station. Where they receive treated surface water 00:33:01.500 --> 00:33:04.619 from the City of Aspermont is aged and dilapidated. 00:33:04.869 --> 00:33:07.000 In addition, the Texas Commission on Environmental 00:33:07.000 --> 00:33:09.609 Quality has issued an enforcement order for lack of 00:33:09.619 --> 00:33:12.980 adequate storage at the pump station. With this proposed 00:33:12.980 --> 00:33:15.069 project, the Corporation would construct a new pump 00:33:15.069 --> 00:33:18.039 station that will include two booster pumps, a pressure 00:33:18.039 --> 00:33:21.150 tank and a ground storage tank. This will resolve the 00:33:21.150 --> 00:33:23.519 enforcement order and bring the system back into compliance 00:33:23.519 --> 00:33:26.750 with TCEQ. The Corporation qualified to receive 00:33:26.750 --> 00:33:29.160 principal forgiveness for the entirety of the project. 00:33:29.170 --> 00:33:32.190 Under the Drinking Water SRS, very small systems funding 00:33:32.190 --> 00:33:35.569 option. The Executive Administrator recommends approval 00:33:35.569 --> 00:33:38.250 of this item. This concludes my presentation and I'd 00:33:38.250 --> 00:33:40.759 be glad to answer any questions. Questions, comments? 00:33:41.400 --> 00:33:44.680 Uh, 81 connections, first time applicant. This is a fantastic 00:33:44.680 --> 00:33:48.470 use of these funds for a community of this size. And with 00:33:48.470 --> 00:33:53.690 this kind of condition going on. So um, I love it. Well 00:33:53.690 --> 00:33:55.720 thank you for your work on this. I was just gonna say 00:33:55.720 --> 00:33:59.440 that to be able to find a funding option is just tremendous. 00:33:59.450 --> 00:34:03.019 And also noting and I appreciate the note that they're 00:34:03.019 --> 00:34:06.319 subject to enforcement with TCEQ, because of lack 00:34:06.319 --> 00:34:10.449 of storage. And those are just fundamental to running 00:34:10.449 --> 00:34:12.610 a water system. And having enough storage, have enough 00:34:12.610 --> 00:34:14.750 pressure to make sure that everything runs smoothly 00:34:14.750 --> 00:34:17.980 with that system. So thank you for your work on that. Thank you. 00:34:18.219 --> 00:34:20.659 And we say no project is too big, no projects too small 00:34:20.659 --> 00:34:22.699 for the Board, and I think this really proves it. It's 00:34:22.699 --> 00:34:26.989 a wonderful project. Thank you. Is there a motion? Madam 00:34:26.989 --> 00:34:30.409 Chair, I move to, I move we adopt the proposed resolution 00:34:30.409 --> 00:34:34.570 for the Tri-Try Water Supply Corporation for financing 00:34:34.570 --> 00:34:38.110 from the Drinking Water State Revolving Fund for planning, 00:34:38.110 --> 00:34:40.400 design and construction of a water system improvement 00:34:40.400 --> 00:34:43.070 project as recommended by the Executive Administrator. 00:34:43.079 --> 00:34:46.949 Is there a second? I second. All those in favor, say aye. Aye. The 00:34:46.949 --> 00:34:52.019 motion passes. Thank you. Thanks Tom. Thank you. Item number nine, please. 00:34:52.139 --> 00:34:54.989 Chairwoman, item number nine is approved by resolution 00:34:54.989 --> 00:34:58.460 a request from the City of Leonard for financial assistance 00:34:58.460 --> 00:35:00.909 from the Clean Water State Revolving Fund for planning, 00:35:00.909 --> 00:35:03.900 design and construction of a waste water system improvements 00:35:03.900 --> 00:35:07.000 project. And Joe Koen is here to present to the Board 00:35:07.000 --> 00:35:11.280 on this item today. Good morning, my name is Joe Koen 00:35:11.280 --> 00:35:15.159 of the Executive Administrator's Staff. The City of Leonard 00:35:15.159 --> 00:35:19.820 is located on US Route 69 approximately 60 miles 00:35:19.820 --> 00:35:23.639 Northeast of Dallas. The city provides wastewater service 00:35:23.639 --> 00:35:29.250 to approximately 2,500 residents. The city's water, wastewater 00:35:29.250 --> 00:35:33.409 collection system is beyond its useful life and experiences 00:35:33.409 --> 00:35:37.380 significant inflow and infiltration. In addition, the 00:35:37.380 --> 00:35:42.230 city needs to determine lift station and piping capacities 00:35:42.230 --> 00:35:47.190 to meet future demand. The city is requesting funding 00:35:47.190 --> 00:35:51.750 for planning, design and construction to install two new, uh two 00:35:51.750 --> 00:35:55.690 new lift stations or rehabilitate the existing lift 00:35:55.699 --> 00:36:00.219 stations. And to replace approximately 6 miles of 00:36:00.219 --> 00:36:04.619 clay pipe with new PVC pipe. The project will allow 00:36:04.619 --> 00:36:08.619 the city to address issues with an aging and deteriorating 00:36:08.630 --> 00:36:12.559 wastewater collection, collection system. And increase 00:36:12.570 --> 00:36:17.619 system capacity to meet future demand. The Executive 00:36:17.619 --> 00:36:20.750 Administrator recommends approval of this request. 00:36:20.750 --> 00:36:23.960 This concludes my presentation and I'm available for 00:36:23.960 --> 00:36:27.619 any questions. Thanks Joe. Questions, comments? So looking 00:36:27.619 --> 00:36:30.550 through the details on this, um I mean, this is a great 00:36:30.550 --> 00:36:32.610 deal for this community. There's no projected rate 00:36:32.610 --> 00:36:37.139 increase on their ratepayers. Um, they're saving $2.8 00:36:37.139 --> 00:36:39.489 million in principle forgiveness, another $1.6 million 00:36:39.489 --> 00:36:42.150 projected interest savings. For a community this size 00:36:42.150 --> 00:36:44.530 is extremely impactful. So this is a great deal for 00:36:44.530 --> 00:36:47.190 that community and clearly something that, that needs 00:36:47.190 --> 00:36:51.579 to happen. Um, clay pipes in the ground is uh is in 00:36:51.579 --> 00:36:54.269 this day and age is something that uh we can't really 00:36:54.280 --> 00:36:58.570 can't really exist. So that's great. Absolutely. Yes, couldn't 00:36:58.570 --> 00:37:01.739 agree more. You know, I just want to commend you Joe 00:37:01.739 --> 00:37:05.219 and everyone else for working on this. I, I will note 00:37:05.219 --> 00:37:09.730 that um disadvantaged community, rural community. And 00:37:09.730 --> 00:37:13.349 so having financial, financial options available for 00:37:13.349 --> 00:37:16.699 them is just huge. And I think sometimes we forget, forget 00:37:16.699 --> 00:37:19.800 about the collection system and how important it is. 00:37:19.809 --> 00:37:23.730 Um, you know, for all kinds of reasons, you know, water 00:37:23.730 --> 00:37:26.809 laws, the environment, etcetera. So thank you for doing 00:37:26.809 --> 00:37:31.119 this. Yeah, Director Stepney, I always say that waste 00:37:31.119 --> 00:37:36.489 water is the less sexy cousin of water supply. But definitely 00:37:36.489 --> 00:37:39.710 still needs attention as well. So, great project is 00:37:39.710 --> 00:37:42.809 their a motion? Madam Chair, I move to adopt the proposed 00:37:42.809 --> 00:37:45.579 resolution for the City of Leonard for financial assistance 00:37:45.579 --> 00:37:47.860 from the Clean Water State Revolving Fund for planning, 00:37:47.860 --> 00:37:51.250 design and construction of wastewater system improvements 00:37:51.260 --> 00:37:54.179 project as recommended by Executive Administrator. Is 00:37:54.179 --> 00:37:58.130 their second? I second. All those in favor, say aye. Aye. 00:37:58.139 --> 00:38:02.809 The motion passes. Thanks joe. Thank you. All right, item number 00:38:02.809 --> 00:38:07.110 10, please with Nancy. Chairwoman, item number 10 is 00:38:07.119 --> 00:38:10.489 approved by resolution a request from the City of 00:38:10.489 --> 00:38:13.670 Pasadena for financial assistance from the Flood Infrastructure 00:38:13.670 --> 00:38:16.519 Fund for planning, acquisition, design and construction 00:38:16.519 --> 00:38:19.230 of a flood improvement project. And Clay Schultz will 00:38:19.230 --> 00:38:22.010 present to the Board on this item today. I'd say Nancy looks 00:38:22.010 --> 00:38:24.219 different. I know. Where did Nancy's hair go? 00:38:24.219 --> 00:38:27.329 Good morning. For the record, my name is Clay Schulz 00:38:27.329 --> 00:38:29.630 of the Executive Administrator's Staff. I'm filling in 00:38:29.630 --> 00:38:33.230 for Nancy Richards this morning. City of Pasadena is 00:38:33.230 --> 00:38:36.690 located in Harris County about 15 miles Southeast of 00:38:36.690 --> 00:38:39.690 downtown Houston. The city's population is approximately 00:38:39.690 --> 00:38:44.480 151,000. During Hurricane Harvey, the city's West Plant 00:38:44.480 --> 00:38:47.000 portion of the Golden Acres Wastewater Treatment Plant 00:38:47.000 --> 00:38:50.300 which was built in the 1950s. Was inundated with 00:38:50.300 --> 00:38:53.480 floodwater causing significant flooding of plant structures, 00:38:53.489 --> 00:38:56.710 electrical systems and pumps. This left portions of 00:38:56.710 --> 00:38:59.699 the city without sanitary sewer services for more than 00:38:59.699 --> 00:39:03.500 a week. Through the Flood Infrastructure Fund, the 00:39:03.500 --> 00:39:16.780 city is requesting approximately $11 million. To remove structures from the regulatory flood plain, construct a new detention pond, elevate electrical equipment, and install force-mains to reroute portions of the influent to the 00:39:16.780 --> 00:39:20.289 Vince Bayou Wastewater Treatment Plant. The proposed project 00:39:20.289 --> 00:39:23.250 will result in flood proofing the Golden Acres facility 00:39:23.250 --> 00:39:26.630 above the Hurricane Harvey high watermark, reduce the 00:39:26.630 --> 00:39:29.789 footprint of the plant within the Armand Bayou floodplain, 00:39:29.800 --> 00:39:33.179 and provide resiliency for the city's citizens. Executive 00:39:33.179 --> 00:39:35.539 Administrator recommends approval of this request and 00:39:35.539 --> 00:39:38.179 I'm available for any questions. Questions, comments? 00:39:39.110 --> 00:39:41.840 Um, this is exactly the type of project that the Flood 00:39:41.840 --> 00:39:44.599 Infrastructure Fund was designed to do. Um, moving an 00:39:44.599 --> 00:39:46.809 old wastewater treatment plant out of a floodplain 00:39:46.809 --> 00:39:49.190 where it's been chronically flooded in the past. So 00:39:49.199 --> 00:39:52.590 um, makes a ton of sense to do this. The financials 00:39:52.590 --> 00:39:57.489 look great um and no, no issues there. So happy to support. 00:39:59.139 --> 00:40:01.710 Yes, I mean we all saw the devastation that Harvey 00:40:01.710 --> 00:40:04.510 did to our infrastructure and the communities. And 00:40:04.510 --> 00:40:07.670 so, you know, it's great that the City of Pasadena's 00:40:07.670 --> 00:40:10.210 seeking, you know, to help put in place mitigation 00:40:10.210 --> 00:40:14.630 measures. To hopefully avoid um, as much as you can. 00:40:14.639 --> 00:40:17.119 The potential risk of these things happening again. 00:40:17.119 --> 00:40:20.010 So thank you for all of your work on this. Yeah, that's a 00:40:20.010 --> 00:40:22.869 great point. You can't eliminate risk but you can definitely 00:40:22.869 --> 00:40:26.139 mitigate risk. This is a great project. It's a perfect 00:40:26.150 --> 00:40:29.190 fifth project. It provides environmental benefits, 00:40:29.199 --> 00:40:32.260 building resiliency to the infrastructure, and as flood 00:40:32.260 --> 00:40:37.050 mitigation. So well done, Clay. Is there a motion? Madam 00:40:37.050 --> 00:40:39.230 Chair, I move we adopt the proposed resolution for 00:40:39.230 --> 00:40:41.690 the City of Pasadena for financial assistance from 00:40:41.690 --> 00:40:44.730 the Flood Infrastructure Fund for planning, acquisition, 00:40:44.730 --> 00:40:47.170 design and construction of a flood improvement project 00:40:47.170 --> 00:40:49.500 as recommended by our Executive Administrator. Is there 00:40:49.500 --> 00:40:53.170 a second? I second. All those in favor, say aye. Aye. 00:40:53.179 --> 00:40:58.780 The motion passes. Thank you. Thanks Clay. Item number 11, please. 00:40:59.019 --> 00:41:02.369 Chairwoman, item number 11 is considered amending by 00:41:02.369 --> 00:41:05.730 resolution, previously adopted Texas Water Development 00:41:05.730 --> 00:41:11.130 Board Resolution No. 21-017, as amended by TWDB 00:41:11.130 --> 00:41:15.500 Resolution No. 22-011, to modify the Guadalupe- 00:41:15.500 --> 00:41:18.389 Blanco River Authority's Clean Water State Revolving Fund 00:41:18.389 --> 00:41:21.849 commitment to extend the commitment period. And 00:41:21.849 --> 00:41:24.389 Dain Larsen is here to present to the Board on this 00:41:24.389 --> 00:41:28.969 item today. Thank you. Excuse me. Thank you, good morning. 00:41:28.969 --> 00:41:31.760 For the record, I'm Dain Larsen of the Executive, Executive 00:41:31.760 --> 00:41:35.789 Administrator's Staff. In 2021, the Guadalupe-Blanco River 00:41:35.789 --> 00:41:38.829 Authority received a total commitment of $40 million 00:41:38.829 --> 00:41:45.389 for rehabilitation work at the Lake Placid Dam in Central Texas. Due to a delay, in 00:41:45.389 --> 00:41:47.469 the permitting for the work. The authority closed on 00:41:47.469 --> 00:41:51.550 a majority of the funds in February 2022, but requested 00:41:51.550 --> 00:41:54.960 that approximately $7.5 million be extended for one 00:41:54.960 --> 00:41:58.019 year until the permit was received and the project 00:41:58.019 --> 00:42:01.929 was bid and awarded. This allows the authority to adjust 00:42:01.929 --> 00:42:04.699 how much of the funding it closes on, based on the 00:42:04.699 --> 00:42:08.929 awarded contract amount. The authority received its 00:42:08.929 --> 00:42:12.159 permit for the work at the end of November 2022. Leaving 00:42:12.159 --> 00:42:15.159 insufficient time to bid, award and close on funds, 00:42:15.170 --> 00:42:20.150 prior to the February 2023 expiration. 00:42:20.150 --> 00:42:22.989 Authority requests a 6 month extension to complete 00:42:23.039 --> 00:42:25.340 these pre-construction activities and close on the 00:42:25.340 --> 00:42:28.030 remaining funds. 00:42:28.030 --> 00:42:30.219 The Executive Administrator recommends approval of their 00:42:30.219 --> 00:42:33.530 request and my presentation is concluded and I'm available 00:42:33.530 --> 00:42:37.789 for any questions. Thanks Dain. Questions, comments? So they 00:42:37.789 --> 00:42:41.590 were waiting on a Corps permit? Yes, that's what took the. 00:42:41.599 --> 00:42:47.400 Yeah. Um, not much you can do there. Nope. Okay, no more comments. 00:42:47.409 --> 00:42:50.289 Yeah. And I don't have any comments I support the extension. 00:42:51.059 --> 00:42:55.800 Six months right, Dain? Okay, perfect. Is there a motion? 00:42:56.650 --> 00:42:59.019 Madam Chair, I move to adopt the proposed resolution 00:42:59.019 --> 00:43:01.559 amending the previously adopted Texas Water Development 00:43:01.559 --> 00:43:05.969 Board No. 21-017, as amended by TWDB 00:43:05.969 --> 00:43:09.869 Resolution No. 22-011. To modify the Guadalupe-Blanco 00:43:09.869 --> 00:43:12.309 River Authority's Clean Water State Revolving Fund 00:43:12.309 --> 00:43:15.260 commitment to extend the commitment period, as recommended 00:43:15.260 --> 00:43:18.929 by our Executive Administrator. Is there a second? I second. All 00:43:18.929 --> 00:43:22.250 those in favor, say aye. Aye. The motion passes. Thanks 00:43:22.250 --> 00:43:27.670 Dain. Ashley, item 12. Chairwoman, item 12 is public 00:43:27.670 --> 00:43:32.679 comment. Do we have anyone signed up for public comment? We do not. 00:43:34.500 --> 00:43:37.400 Before we adjourn. Um, I would like to thank our support 00:43:37.400 --> 00:43:41.980 services and our tech wizards for helping put these 00:43:41.980 --> 00:43:44.320 Board meetings together. They take a lot of time and 00:43:44.320 --> 00:43:47.900 a lot of effort. And you always make sure that everyone 00:43:47.900 --> 00:43:51.900 and the virtual world can hear and participate. And 00:43:51.909 --> 00:43:56.449 um, you know, Kelly and his whole team. Makes sure that 00:43:56.449 --> 00:43:58.809 everything's set up and y'all are just tremendous. 00:43:58.809 --> 00:44:02.320 So a lot of gratitude to you all. Great group we had 00:44:02.329 --> 00:44:05.000 during the Winter storm. Our, you know, lost power lost 00:44:05.000 --> 00:44:07.460 internet. And I've got three kids at home and with no 00:44:07.460 --> 00:44:11.090 internet that the world may well, may as well have ended. 00:44:11.099 --> 00:44:14.440 Like it was just so we cannot have the internet go 00:44:14.440 --> 00:44:18.579 down here. Great work guys, thank you. Yes, I said on my video 00:44:18.579 --> 00:44:21.360 to the agency. That it was like Lord of the Flies at 00:44:21.360 --> 00:44:24.570 my house. But I actually think it was more like Game 00:44:24.570 --> 00:44:27.000 of Thrones. You know, if you really think about it, 00:44:27.000 --> 00:44:31.909 but. And they Madam Chair, they certainly helped me get up to 00:44:31.909 --> 00:44:35.019 speed with all of my quirky asks. And I just appreciate 00:44:35.019 --> 00:44:38.210 them so much. And I did forget one thing Madam Chair, 00:44:38.210 --> 00:44:40.760 if you don't mind. No, absolutely. I forgot to introduce 00:44:40.760 --> 00:44:47.019 my new Chief of Staff, Cary Neiman. So 00:44:47.019 --> 00:44:50.769 Cary worked with me for many years at TCEQ. Longtime 00:44:50.769 --> 00:44:53.239 state employee and public servant. I'm honored that 00:44:53.239 --> 00:44:56.849 he agreed to join me on this journey. And so I look 00:44:56.849 --> 00:44:58.619 forward to all of you meeting him. Thank you, Madam 00:44:58.619 --> 00:45:01.599 Chair. Well, Cary welcome. You're already fitting 00:45:01.599 --> 00:45:05.789 in beautifully. And we're fully chief'd, which is amazing. 00:45:05.789 --> 00:45:10.309 It's, it's been forever. And with that, the Board will 00:45:10.309 --> 00:45:12.929 not meet in closed session today. There being no further 00:45:12.929 --> 00:45:15.480 business of the Texas Water Development Board. This 00:45:15.480 --> 00:45:19.389 meeting is hereby adjourned. The time is now 10:19 00:45:19.400 --> 00:45:22.840 a.m. Thank you all very much.