Good morning. This meeting of the Texas Water Development
Board is called to order. The time is 9:34am. I
forgot my readers, Patrick. Uh for the record, my name
is Brooke Paup. With me today are George Peyton and
L'Oreal Stepney. First item please, Ashley. Uh, Chairwoman
the first item on the Agenda today is discussion regarding
outreach efforts and activities. Director Stepney?
Am I on? Okay, great. Thank you. Good morning Madam
Chair, Director Peyton, um Executive Administrator Walker,
and everyone else. Good morning. So for outreach activities
it's been a really busy month. I've had the pleasure
of meeting with Senator LaMantia, Senator Eckhardt, as
well as Senator um, um
Springer. Thank you, thank you, Senator Springer. And
also, I've had the pleasure of attending our wonderful
conference, Water for Texas. It was amazing, so well
attended. And I had the pleasure of also facilitating
or moderating the international conference. So we learned
so much from how they do things across the, across
the globe in New Zealand, Austria and Israel. So it
was really great. And then finally agriculture is a
big part of what we do and some of our important stakeholders.
So it was great visiting with the Texas Cattle Feeders
Association, briefly just to talk about agriculture
and water. So thank you very much.
Director Peyton? Yeah, hi. Good morning everyone. Thanks, thanks again
for being here. Um for outreach, I attended the Water
for Texas Conference as well. Uh, moderated a Flood Panel
there, which was really interesting to see. Um, you know,
how different folks across the State are addressing
their flood concerns. And Texas is a very uh, interesting
State. And that we have not only flood concerns in the
Southeast part of the State. But we also have um, flooding
concerns in the Far West um, Texas parts of the State.
So uh, there are a lot of issues with flooding. So it
was a very fun paneled host. Interesting, enlightening,
learned a lot. Um, I've also continued to reach out
and meet with Senators. Um, so I was able to meet with
Senator LaMantia as well. Senator Hancock and Senator
Alvarado's office as well. So we'll continue um, doing
that and meeting those folks. Um and then just continuing
to push, uh push all the good we can for water. So
that's it. Snaps. Um first of all, Happy Birthday to Jeff,
Bryan, Patrick, and L'Oreal coming up. Oh, big week. Big Week. Yeah, we had another
weather event last week. Um, I hope you all stayed warm
and safe, and have power now. But we missed out on being
able to really celebrate all of our people. So, Happy
Birthday and Happy Birthday to you Director. Um and
with that, um I hope you all were okay last week. I
thought about each and every one of you at TWDB.
These events are often times a little scary and
we lose power, and we don't have internet, and we don't
know how we're doing. Just know that this Board is thinking
about y'all. And we're really hoping that everyone's
all right. And it seems like we are now. Um, for outreach
again, huge congrats for our Staff are putting on a
tremendous conference. I've been at the Capitol furiously
running around with Bryan, Jeff, and Patrick. I always
say I don't like an entourage, but I think our budget
needs an, uh important entourage. Um, but all I've
heard is compliments on the conference. And um, you two
did amazing jobs moderating your panels. And so did
Jeff and so did all of our Staff. So very, very proud
of the conference and just pretty, pretty amazing. Um,
incredible talks about water and it is a water session.
So it was very timely, um other than running furiously
around the Capital. I've had to visit with both Eagle
Pass and Laredo. Um, and again these are salt of the
earth people. Just really looking to do the best for
their communities on water. And with that, we'll go
to second item. Chairwoman, the second item on the
Agenda today is consider authorizing the Executive
Administrator to exercise the option to renew the existing
contract with Hilltop Securities Inc. For a one-year
term beginning March 1, 2023, at the cost of $980,000.
And authorizing up to two additional one-year renewal
options per the contract terms. For a total contract
amount not to exceed $4.9 million. David Duran is
here to present to the Board on this item today. Good
morning Chairwoman Paup, Director Peyton and Director
Stepney. For the record, I'm David Duran with the Executive
Administrative Staff. Executive Administrator is recommending
the extension of the TWDB's contract with Hilltop
Securities as our financial advisor. Contract was executed
in March of 2021, will expire at the end of February.
And the recommendation is to approve the first one-
year extension option, resulting in an expiration of
February 2024. Um, but leaving two more one-year
extension options available. The Executive Administrator
recommends approval. I'm happy to answer any questions
you may have. Questions, comments? Yeah, David how long have
we had Hilltop as our financial advisor here, do you
know? Um, and I'm just. Consistently I think since maybe
2013. Right. And then there was a gap, and then before that
many, many years. I mean they set up, helped with the
the TWRFA, um in the 90s, um as First Southwest. And
we're, we're kind of reevaluating this. Um, I know we're
we're very pleased with their performance. They, they've
been they've been fantastic for us, right? These past
years, especially since since SWIFT has come into the
picture, right? Yes. Um, so they're, they've been an invaluable
partner. But as taxpayers, we're looking at that every
several years, right? Like we're going out for a
RFQ, evaluating new FAs. Um, making sure that the
fees are commensurate with kind of market rate fees,
um that sort of thing. We're doing that regularly,
correct? Okay good, good. Um no, I think that's, I
think they're fantastic. I think we've had a great
relationship with them. We've been, I've been impressed.
Um, happy to continue using them. I just want to make
sure we're kind of continually evaluating and judging
um, you know. Due diligence. Exactly. Always. Yes. Absolutely thank
you, Director Peyton. I was fortunate enough, as part of my
Staff briefings. To have Hilltop participate in one
and and help me get up to speed. On, you know, the
overall financials for the Board, our portfolio and
all of those things. And just to clarify, um the $4.9
million that's to cover the existing contract. That's
to um, the whole period, the five-year period. Versus
any individual one-year extension. Yes. We, so this
extension will be for $980,000. If we were to execute
another one-year extension. We would request another
specific one-year amount based on um, the bond deals
that we would expect to come in that time frame.
Okay, so the 4.9, I just did the math, the $980,000
times 5 is 4.9 million. So you're saying that there
might be a different amount, if you come back for another
one-year extension? Um, I think we might. If bond, if
if we were to get more protective bond deals, we may
have to um request an amendment. But I think. For a different amount? Yes,
one thing we have to consider is we try and have these
expire at the end of the biennium. So when we go into
a new biennium we may have to um, as far as our
internal budget limits have to uh, you know, figure
out again what our total contract amount we might need
it to be. David, a good example of that is with the
bow dark, we had to do two different bond sales for
um North Texas. And that would increase the, the annual
cost, the one-year cost most likely to Hilltop, correct?
Yes, something like that. But we have to evaluate it
every year. Because our, we could have to go out for
for more spot and sales. So the overall $4.9 may or
may not increase, depending on if you execute two more
one-year renewals? And depending on what they are. And
this one was based on um, I believe a uh and as
you know, three sales a SRF, a GO and
a SWIFT. Okay, thank you. And those three sales are
traditionally what we do, but it's not, it's not set in
stone. Occasionally we have to have additional, depending
on the applications that come in. And if this GEO sale
that we're gonna be initiating where to be split into
two, that would increase the costs.
Thank you. Well um, Hilltop has always been a fantastic
partner. Um, Anne is our north star. Um, in terms of our
financial programs and our bond sales. And I'm just
I feel so lucky to have her as an advisor. So with
that, is there a motion? Uh, yes. Madam Chairwoman, I move
to authorize the Executive Administrator to exercise
the option to renew the existing contract with Hilltop
Securities Inc., for a one-year term beginning March
1, 2023, at a cost of $980,000. And authorizing up to
two additional one-year renewal options per the contract
terms, for a total contract amount not to exceed $4.9
million as recommended by Executive Administrator. Is
their a second? I second. All those in favor, say aye. Aye. The motion
passes. Aye. The motion passes. Thank you. Next item please, Ashley. Chairwoman,
the next item on the Agenda is consider authorizing
the Executive Administrator, Chief Financial Officer,
General Counsel and Development Fund Manager to take
all necessary actions for the issuance, sale and delivery
of State of Texas Water Financial Assistance and Refunding
Bonds, in one or more series. And approving the selection
of financial advisor, bond counsel, disclosure counsel,
senior managing underwriter, and co-managing underwriters
for the negotiation of the bonds. And David Duran will
also present to the Board on this item today. Once
again, I'm David Duran with the Executor Administrator
Staff. This item seeks approval to initiate the process
for a general bond obligations, general obligation
bond sale. Which will provide proceeds for new financial
assistance for DFUND and EDAP. And to refund outstanding
Water Financial Assistance Bonds. Hilltop will serve
as the financial advisor. And we proposed Orrick, Herrington
& Sutcliffe as bond counsel, and Bracewell as disclosure
counsel. For the underwriting team, we recommend Siebert
Williams Shank & Co., LLC, to serve as senior
managing underwriter for the transaction. And recommended
co-managing underwriters include BOK Financial
Securities, Ramirez, and Wells Fargo Securities. If
approved, we will finalize timelines, engage service
providers and undertake the initial debt issuance process
to prepare the bonds for sale. The Executive Administrator
would return to the Board for a formal approval of the
bond sale next month. Including the not to exceed size
and the associated documents for any series to be issued
under this authorization.
Thanks David. Questions, comments? No questions for me.
I think the selection of advisors here is right on
par. And and y'all do a great job kind of rotating
through that, that queue. And making sure we have the right
folks in place, so. Uh, just a quick question on the
2%. Um, it's my understanding that we won't move forward
unless there's a 2% savings. Is that correct? On the
refunding, our policy. We can refund bonds with a less
than 2% NPV savings in certain circumstances for program
goals. But we generally we want at least 2% NPV savings.
And so given market volatility, we may not want to
pull the trigger. We don't want to have to pull the
refunding sale, you know, the day of the pricing. If
it just dips right below 2%. So we're gonna be monitoring
um, the projected savings and trying not to, not
to hit right on the 2% and try and exceed that. Okay.
So generally speaking, our goal is to have at least
a 2% savings. And for many years we've had well, well
above that. But um, last Fall rates spiked quite a bit.
They've been falling again. So we're increasingly, um
in projecting our savings. But again it could, it could
turn again. Okay, thank you. And it also depends on the structure that
we choose. Thank you. Thanks, uh EDAP is near and dear
to my heart, so I'm happy to get this rolling. Um, again
not to beat a dead horse, but maybe to beat a dead
horse. Georgia, puts a lot of thought and you, David
and the whole team. Into who gets to senior these transactions
and I'm excited to see what Siebert is going to do
with that. But again, it is a thoughtful and deliberate
process. And we only pick the best to represent the
State of Texas. Thank you. With that, is there a motion?
Um Madam Chair, I move we authorized the Executive
Administrator, the Chief Financial Officer, General
Counsel and Development Fund Manager to take all necessary
actions for issuance, sale and delivery of State of
Texas Water Financial Assistance and Refunding Bonds,
in one or more series. And approving the selection of
financial advisor, bond counsel, disclosure counsel, senior
managing underwriter and co-managing underwriters for
the negotiation of the bonds as recommended by the
Executive Administrator. Is there a second? I second.
All those in favor, say aye. Aye. The motion passes.
Thanks David. You're a gentleman and a scholar. Item
number four please. Chairwoman, item number four is briefing
regarding material changes to contracts for goods and
services executed during the first quarter of fiscal
year 2023. And the contract and performance report
for the first quarter of fiscal year 2023. And Cameron
Turner is here to present to the Board on this item
today. Good morning Chairwoman Paup, Director Peyton,
Director Stepney. For the record, Cameron Turner of
the Executive Administrator's Staff. This item is for
your consideration of a report regarding material changes
for contracts for goods and services awarded under
Chapter 2155 of the Texas Government Code, executed
during the first quarter of fiscal year 2023. As well
as, a report covering the performance and contract monitoring
for new contracts also executed during the first quarter
of this year. According to Texas Administrative Code
Chapter 353. The reports for material changes to contracts
and purchase orders is included in Attachments 1
and 2. And the contract monitoring report in Attachment
3. Again, this is a briefing item only. No action
required on your part today. And I'm available for
any questions. Questions, comments? On the material changes, is
that a percentage change that you guys track or is
that a flat dollar amount? And anything above that dollar
amount gets grouped into material change? That's, that's
a great question. Statute requires that this report
include and they define material changes as those that
extend the length or postpone the completion of a contract
for 6 months by 6 months or more. Or increase the
total consideration to be paid by a contract by at
least 10%. By 10%. That's a great question. No comments.
Thanks Cameron for keeping an eagle eye on our contracts.
Ashley, next item please. Chairwoman, the next item
on the Agenda is consider adopting and authorizing
the publication of amendments to 31 Texas Administrative
Code, section 358.6 relating to water loss audits.
And John Sutton is here to present to the Board on
this item today. Good morning Chairwoman Paup, Director
Stepney and Director Peyton. For the record, I'm John
Sutton with the Executive Administrator's Staff. Um, this
item originally came to the Board in November. When
you approved posting the proposed rules for comment.
These amendments include revisions to the water loss
thresholds and new requirements for validation of
water loss audits. Current water loss thresholds are
based on data from the 2010 water loss audits. The
new thresholds are based on quality controlled statewide
data. Um, from audits through from 2015 through 2020,
and are basically the median value of that data. We
are also proposing the change the metrics to be based
on connection density rather than population. Which
is in line with industry's approach to water loss performance
indicators. The thresholds only applied to utilities
that are requesting financial assistance for a water
project. If the utility is above its threshold, they
must include funds to mitigate their water loss. If
they are, if they are planning to address their
loss, they may request a waiver from doing so. The
new thresholds would be effective to applications received
after July 1, 2023. The amendments also include new
requirements for water loss validation. A process currently
used by several states across the country. Water loss
validation can assist utilities in the State, better
direct water loss mitigation resources and funding.
This new section requires all utilities receiving financial
assistance from the Board to have the required annual
water loss audits to be validated starting January 1,
2025.
TWDB Staff will be validating the submitted
water loss audit in conference with the utility. The
rules allow utility to have the water loss audit validated
by others. If the validation follows guidelines. These
uh, that will be establishing or/and is performed by
a person other than the person submitting the water
loss audit, and has been certified to conduct validation.
We plan to begin offering validation services later
this year on a voluntary basis. To help facilitate
utility compliance with this requirement. Uh as a note,
three of us took water loss validation training and
certification last week. And you now have three certified
water loss audit validators on Staff. So, um after posting
for public comment, we received comments from three
utilities, one environmental organization and consultant.
The comments ranged from questions regarding the existing
rules, questions on how the thresholds were determined.
As well as questions about the validation process.
Digital information is included with the memo and
the attached rulemaking proposed for adoption. Currently
we're in the process of preparing an overview of the
threshold calculations that will be, we will make available.
And are drafting validation guidelines and frequently
asked questions to be posted on our website. Additional
information about validation will also be included
in our loss use and conservation training workshops.
Starting with the two we have scheduled over the next
two months. We hope to soon to be able to post 2 positions
for Water Loss Audit Specialists, that will focus on
validations. We are in the process of hiring a business
analyst and later develop, developer to assist with
revisions needed to our online audit reporting application
to be able to conduct the validations. So in order
to be current with recent water loss data, industry
performance indicators and industry standards. Standard
practices such as water loss validation, the Executive
Administrator recommends adopting uh, these amendments
relating to water loss. I'm glad to answer any questions.
Thank you, John. Excellent briefing. Questions, comments?
You know, water loss is a huge issue across the State right now.
And I think it's on everybody's radar that we have
aging infrastructure and, and pipes leaking water into
the ground. And that's a, that's a big problem for
a State that, you know, needs every drop that we can
have. Uh, so moving to a simplified threshold based
on density. I think is is a very smart move. And then
also validating these results and making sure that
they are actually um, telling us what we think they're
telling us. And making sure it's, it's all accurate
and correct is uh, is extremely important. So I'm on
board. Thank you. Well, I just wanted to also commend Staff for
your effort to just modernize our approach. And also
working with industry, and looking at other states and
just to um, you sound science the most up to date science.
And again, water loss is so important as well as the
validation process. I did have a question. So as I
understand it, utilities um, can you utilize our, our
folks or they can have a third-party entity do their
validation process. Is that correct? Yes. Well, we're
bringing on additional Staff and they will kind of.
The process will be they'll first become familiar with
our audit water loss, audit process and then go into
the validation. And then we will be conducting the validation
for the utilities or with the utilities. I guess I
should use utilities versus um, because it's uh anyone
who's impacted. Also, when will the guidelines be available
for those folks who choose to go that route? We hope
to have something prepared the next couple of months.
But we're also seeing um, between now and when it actually
becomes required. It's kind of a process, a development
process to be honest with you. The training that we
took last week provided us a lot of insight. That we
are now applying to, to be included into that guidance
document. And then as we start um, doing the validation
on a voluntary basis. Later this, starting later this
year. We also see that we continue making improvements.
But, but I would say that we'll have something in the
next couple of months that will be out there. I think
that would be good. Because in looking at some of the
comments, that some of the comments that we received.
As one with the um, those resources be available if
they choose to use and, and another entity. The utility
uses another entity. So I think that's important for
us to get in place. Certainly. Okay. John this has
been a huge labor of love for you. And I know that
the better the water loss data that we have. Again,
the better the science and the better the planning.
Like we say at the Board and congratulations on your
training and your certification, and with your team.
Thank you for always striving for continuous improvement.
Thank you. Appreciate it. Oh and when are the workshops? February 21st and March 21st.
Perfect. All y'all watching on the the internets and
the interwebs. That's when the workshops are. Thank
you John. Is there a motion? Madam Chair, I move to adopt
an authorize publication of 31 Texas Administrative
Code, Section 358.6 relating to water loss audits as
recommended by our Executive Administrator. Is there
a second? I second. All those in favor, say aye. Aye. The motion
passes. Thank you. Thank you John. Ashley, item six please. Chairwoman,
item six is consider adopting and authorizing publication
of additions and amendments to 31 Texas Administrative
Code chapters 363, 371 and 375 relating to the
use of alternative project delivery methods for construction
projects financed by Texas Water Development Board.
And Joe Reynolds is here to present to the Staff on this
item today. Good morning Chairwoman Paup, Director Peyton,
Director Stepney. For the record, I am Joe Reynolds
with the Office of General Counsel. At the November
meeting, last November. You authorized publication of
proposed additions and amendments to the Texas Development
Board rules relating to the use of alternative delivery
project methods. For construction projects that are
financed by the TWDB. The proposed amendments incorporate
by reference and identify the alternative delivery
guidance that was presented to you last month. As containing
the process and requirements for use of alternative
methods of contract delivery on TWDB financed
projects. The proposed amendments were published in
the December 2 Texas Register. The comment period
ended on January 2nd. No comments were received and
no changes were made in the rules, as they were proposed.
Therefore, the Executive Administrator recommends adoption
of the amendments as proposed and authorization to
publish the revised rules. I'm available for any question.
Questions, comments? No comments. Um, I just think it's
great. That you guys have, you know, taken this step
to just make sure our guidance is clear and working
with, working with stakeholders. So nothing for me. If
you're ready Madam Chair? Uh, hold on. Okay, y'all are
gonna love this. This effort has embraced innovation
and is having a significant impact on delivering projects
more efficiently. Our Staff has showed tremendous pride
and putting forth the best work product and Staff have
been accountable to our stakeholders. The four core
values. Thank you. Is there a motion? Madam Chair, I
move we adopt an authorize publication of additions
and amendments to 31 Texas Administrative Code Chapters
363, 371 and 375 relating to the use of
alternative project delivery methods. For construction
projects financed by the Texas Water Development Board
as recommended by our Executive Administrator. Is there
a second? I second. All those in favor, say aye. Aye. Thank
you. The motion passes. Thanks Joe. Thanks Joe.
Ashley, item seven please. Chairwoman, item seven is consider
approving by resolution a request from the Greater
Texoma Utility Authority approving amendments to outstanding
bonds purchased by the Texas Water Development Board
and delegating authority to the Executive Administrator
and his Staff. To take any actions necessary to facilitate
the request. And Alexis Lorick is here to present on
this item today. Good morning Chairwoman Paup, Director
Peyton and Director Stepney. Um, this item before
your consideration is the approval by resolution of
a request by the Greater Texoma Utility Authority for
certain amendments to outstanding bonds purchased by
the Texas Water Development Board and delegating authority
to the EA and his Staff. To take any actions necessary
to facilitate this request. In December of last year,
GTUA submitted a request for authorization to
amend three series of outstanding bonds. That financed
water storage and utility system improvements for the
city of Gunter, Texas. The City of Gunter now seeks
to sell this utility system to Mustang Special Utility
District. Through an asset purchase and operations agreements
between the city and Mustang SUD. The outstanding GTUA
bonds are secured with a pledge of contract revenues
established through a contract between GTUA
and the City of Gunter. So the City of Gunter seeks
to convey its entire utility system, its assets and
liabilities to Mustang SUD. GTUA's requesting
today to amend the three outstanding bond obligations
that it has with the Water Board. To substitute or assign
the contract pledged to repayment of its obligations
to us from the city of Gunter to Mustang SUD. So Mustang
SUD will step into the shoes of City of Gunter and
they will repay the obligations through the, through
the management of the city's utility system. The bonds
themselves provide for covenants that say that they
may be amended by GTUA with the consent of the
Board. Since the Board is the majority bondholder of
those bonds. So GTUA would remain the obligor
to the Water Board. And none of those securities
that are currently registered with DTC would change.
The prior contracts between GTUA and the City of
Gunter will be amended to allow for the assignment.
And the city of Gunter will then assign their contract
in the interest in the contract, and those amended
contracts to Mustang SUD. In the process of working
this deal out. GTUA has received confirmation
from the Attorney General's Office Public Finance Division.
That these proposed amendments would not be a reissuance
underneath state securities laws. And tax counsel
for the bond counsel for GTUA. Has submitted
in writing to the Water Board that the proposed amendments
would not also constitute a reissuance underneath
federal tax laws. Our financial examiners have uh, no
objections related to the financial condition of Mustang
SUD. To assume the debt um, and to assume repayment
of the city of Gunter's obligations to GTUA. So
with all of that it's rather lengthy. The EA recommends
approval of the amendments to the outstanding GTO
bonds that are included as part of your backup and
have been posted today with the Agenda. And it also
requests a limited delegation of authority to act as
necessary to facilitate the amendments. The process
that happens now is that the Board for Mustang SUD
will again continue to negotiate and revise these draft
amendments. They will go to their Board, they will
approve the amendments. And eventually there's gonna
be like a mini closing process with the Attorney General's
Office. Where they will provide all of the amended resolutions
to the general, to the Attorney General's Office for
review. And then we will receive updated documents to
reflect changes in our internal system. I'm available
for any questions or comments. Excellent Alexis. Questions,
comments? Yeah, so my primary concern, you know, upon
hearing this. Is just making sure that the TWDB
still had the same, uh security pledge when this
was in the same kind of financial place. As we would
have been uh, you know, under initially underwriting
this loan. Um, and so upon reviewing those financials
like I think this is a, this is a win for the
Board honestly. Like we're in a much better place from
a security standpoint. Um and having having Mustang
step in here. So I think this makes a ton of sense.
Well then of course regionalization, um can be very
helpful, and so this project would do that. And also
I think what stood up for me when um, Alexis briefed
me was. GTUA still remains responsible. Correct.
For the obligation to the board. Correct. And so I don't have
any other questions, Madam Chair. Alexis, y'all have
done an incredible job on a very, very complicated issue.
And I'd like to thank our partners over at OAG
for helping as well. They're um, they're a great partner.
Um, just to reemphasize this assignment has no fiscal
impact on Texas Water Development Board. That is correct.
Whatsoever. Whatsoever. In fact the financial submitted
for Mustang SUD, and that are publicly available are
extremely healthy. So substituting Mustang SUD to
do the repayment obligations for the City of Gunter. No negative impact.
No negative impact. And additionally we wouldn't be
allowed to bring an item to you that would have a negative
impact on the repayment of those bonds. Because they're
restricted as such in the securities. Appreciate it,
and thank you for all your work on this. Yeah Alexis, really appreciate it. Is there a
motion? Madam Chair, I move to adopt a resolution or
request from the Greater Texoma Utility Authority,
approving amendments to outstanding bonds purchased
by the Texas Water Development Board and delegating
authority to the Executive Administrator and his Staff.
To take any actions necessary to facilitate the request
as recommended by our Executive Administrator. Is there
a second? I second. All those in favor, say aye. Aye.
The motion passes. Good job Alexis. Thank you. Item
number eight. Chairwoman, item number eight is
approved by resolution a request from the Tri-Try
Water Supply Corporation for financing from the Drinking
Water State Revolving Fund for planning, design and
construction of a water system improvements project.
And Tom Barnett is here to present to the Board on this
item today. Good morning Chairwoman Paup, Director Stepney
Director Peyton. For the record, Tom Barnett of the Executive
Administrator's Staff. Tri-Try Water Supply Corporation
provides water service to approximately 80 residents
in rural Stonewall County, roughly 60 miles Northwest
of Abilene. The Corporation's existing entry point
pump station. Where they receive treated surface water
from the City of Aspermont is aged and dilapidated.
In addition, the Texas Commission on Environmental
Quality has issued an enforcement order for lack of
adequate storage at the pump station. With this proposed
project, the Corporation would construct a new pump
station that will include two booster pumps, a pressure
tank and a ground storage tank. This will resolve the
enforcement order and bring the system back into compliance
with TCEQ. The Corporation qualified to receive
principal forgiveness for the entirety of the project.
Under the Drinking Water SRS, very small systems funding
option. The Executive Administrator recommends approval
of this item. This concludes my presentation and I'd
be glad to answer any questions. Questions, comments?
Uh, 81 connections, first time applicant. This is a fantastic
use of these funds for a community of this size. And with
this kind of condition going on. So um, I love it. Well
thank you for your work on this. I was just gonna say
that to be able to find a funding option is just tremendous.
And also noting and I appreciate the note that they're
subject to enforcement with TCEQ, because of lack
of storage. And those are just fundamental to running
a water system. And having enough storage, have enough
pressure to make sure that everything runs smoothly
with that system. So thank you for your work on that. Thank you.
And we say no project is too big, no projects too small
for the Board, and I think this really proves it. It's
a wonderful project. Thank you. Is there a motion? Madam
Chair, I move to, I move we adopt the proposed resolution
for the Tri-Try Water Supply Corporation for financing
from the Drinking Water State Revolving Fund for planning,
design and construction of a water system improvement
project as recommended by the Executive Administrator.
Is there a second? I second. All those in favor, say aye. Aye. The
motion passes. Thank you. Thanks Tom. Thank you. Item number nine, please.
Chairwoman, item number nine is approved by resolution
a request from the City of Leonard for financial assistance
from the Clean Water State Revolving Fund for planning,
design and construction of a waste water system improvements
project. And Joe Koen is here to present to the Board
on this item today. Good morning, my name is Joe Koen
of the Executive Administrator's Staff. The City of Leonard
is located on US Route 69 approximately 60 miles
Northeast of Dallas. The city provides wastewater service
to approximately 2,500 residents. The city's water, wastewater
collection system is beyond its useful life and experiences
significant inflow and infiltration. In addition, the
city needs to determine lift station and piping capacities
to meet future demand. The city is requesting funding
for planning, design and construction to install two new, uh two
new lift stations or rehabilitate the existing lift
stations. And to replace approximately 6 miles of
clay pipe with new PVC pipe. The project will allow
the city to address issues with an aging and deteriorating
wastewater collection, collection system. And increase
system capacity to meet future demand. The Executive
Administrator recommends approval of this request.
This concludes my presentation and I'm available for
any questions. Thanks Joe. Questions, comments? So looking
through the details on this, um I mean, this is a great
deal for this community. There's no projected rate
increase on their ratepayers. Um, they're saving $2.8
million in principle forgiveness, another $1.6 million
projected interest savings. For a community this size
is extremely impactful. So this is a great deal for
that community and clearly something that, that needs
to happen. Um, clay pipes in the ground is uh is in
this day and age is something that uh we can't really
can't really exist. So that's great. Absolutely. Yes, couldn't
agree more. You know, I just want to commend you Joe
and everyone else for working on this. I, I will note
that um disadvantaged community, rural community. And
so having financial, financial options available for
them is just huge. And I think sometimes we forget, forget
about the collection system and how important it is.
Um, you know, for all kinds of reasons, you know, water
laws, the environment, etcetera. So thank you for doing
this. Yeah, Director Stepney, I always say that waste
water is the less sexy cousin of water supply. But definitely
still needs attention as well. So, great project is
their a motion? Madam Chair, I move to adopt the proposed
resolution for the City of Leonard for financial assistance
from the Clean Water State Revolving Fund for planning,
design and construction of wastewater system improvements
project as recommended by Executive Administrator. Is
their second? I second. All those in favor, say aye. Aye.
The motion passes. Thanks joe. Thank you. All right, item number
10, please with Nancy. Chairwoman, item number 10 is
approved by resolution a request from the City of
Pasadena for financial assistance from the Flood Infrastructure
Fund for planning, acquisition, design and construction
of a flood improvement project. And Clay Schultz will
present to the Board on this item today. I'd say Nancy looks
different. I know. Where did Nancy's hair go?
Good morning. For the record, my name is Clay Schulz
of the Executive Administrator's Staff. I'm filling in
for Nancy Richards this morning. City of Pasadena is
located in Harris County about 15 miles Southeast of
downtown Houston. The city's population is approximately
151,000. During Hurricane Harvey, the city's West Plant
portion of the Golden Acres Wastewater Treatment Plant
which was built in the 1950s. Was inundated with
floodwater causing significant flooding of plant structures,
electrical systems and pumps. This left portions of
the city without sanitary sewer services for more than
a week. Through the Flood Infrastructure Fund, the
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
Vince Bayou Wastewater Treatment Plant. The proposed project
will result in flood proofing the Golden Acres facility
above the Hurricane Harvey high watermark, reduce the
footprint of the plant within the Armand Bayou floodplain,
and provide resiliency for the city's citizens. Executive
Administrator recommends approval of this request and
I'm available for any questions. Questions, comments?
Um, this is exactly the type of project that the Flood
Infrastructure Fund was designed to do. Um, moving an
old wastewater treatment plant out of a floodplain
where it's been chronically flooded in the past. So
um, makes a ton of sense to do this. The financials
look great um and no, no issues there. So happy to support.
Yes, I mean we all saw the devastation that Harvey
did to our infrastructure and the communities. And
so, you know, it's great that the City of Pasadena's
seeking, you know, to help put in place mitigation
measures. To hopefully avoid um, as much as you can.
The potential risk of these things happening again.
So thank you for all of your work on this. Yeah, that's a
great point. You can't eliminate risk but you can definitely
mitigate risk. This is a great project. It's a perfect
fifth project. It provides environmental benefits,
building resiliency to the infrastructure, and as flood
mitigation. So well done, Clay. Is there a motion? Madam
Chair, I move we adopt the proposed resolution for
the City of Pasadena for financial assistance from
the Flood Infrastructure Fund for planning, acquisition,
design and construction of a flood improvement project
as recommended by our Executive Administrator. Is there
a second? I second. All those in favor, say aye. Aye.
The motion passes. Thank you. Thanks Clay. Item number 11, please.
Chairwoman, item number 11 is considered amending by
resolution, previously adopted Texas Water Development
Board Resolution No. 21-017, as amended by TWDB
Resolution No. 22-011, to modify the Guadalupe-
Blanco River Authority's Clean Water State Revolving Fund
commitment to extend the commitment period. And
Dain Larsen is here to present to the Board on this
item today. Thank you. Excuse me. Thank you, good morning.
For the record, I'm Dain Larsen of the Executive, Executive
Administrator's Staff. In 2021, the Guadalupe-Blanco River
Authority received a total commitment of $40 million
for rehabilitation work at the Lake Placid Dam in Central Texas. Due to a delay, in
the permitting for the work. The authority closed on
a majority of the funds in February 2022, but requested
that approximately $7.5 million be extended for one
year until the permit was received and the project
was bid and awarded. This allows the authority to adjust
how much of the funding it closes on, based on the
awarded contract amount. The authority received its
permit for the work at the end of November 2022. Leaving
insufficient time to bid, award and close on funds,
prior to the February 2023 expiration.
Authority requests a 6 month extension to complete
these pre-construction activities and close on the
remaining funds.
The Executive Administrator recommends approval of their
request and my presentation is concluded and I'm available
for any questions. Thanks Dain. Questions, comments? So they
were waiting on a Corps permit? Yes, that's what took the.
Yeah. Um, not much you can do there. Nope. Okay, no more comments.
Yeah. And I don't have any comments I support the extension.
Six months right, Dain? Okay, perfect. Is there a motion?
Madam Chair, I move to adopt the proposed resolution
amending the previously adopted Texas Water Development
Board No. 21-017, as amended by TWDB
Resolution No. 22-011. To modify the Guadalupe-Blanco
River Authority's Clean Water State Revolving Fund
commitment to extend the commitment period, as recommended
by our Executive Administrator. Is there a second? I second. All
those in favor, say aye. Aye. The motion passes. Thanks
Dain. Ashley, item 12. Chairwoman, item 12 is public
comment. Do we have anyone signed up for public comment? We do not.
Before we adjourn. Um, I would like to thank our support
services and our tech wizards for helping put these
Board meetings together. They take a lot of time and
a lot of effort. And you always make sure that everyone
and the virtual world can hear and participate. And
um, you know, Kelly and his whole team. Makes sure that
everything's set up and y'all are just tremendous.
So a lot of gratitude to you all. Great group we had
during the Winter storm. Our, you know, lost power lost
internet. And I've got three kids at home and with no
internet that the world may well, may as well have ended.
Like it was just so we cannot have the internet go
down here. Great work guys, thank you. Yes, I said on my video
to the agency. That it was like Lord of the Flies at
my house. But I actually think it was more like Game
of Thrones. You know, if you really think about it,
but. And they Madam Chair, they certainly helped me get up to
speed with all of my quirky asks. And I just appreciate
them so much. And I did forget one thing Madam Chair,
if you don't mind. No, absolutely. I forgot to introduce
my new Chief of Staff, Cary Neiman. So
Cary worked with me for many years at TCEQ. Longtime
state employee and public servant. I'm honored that
he agreed to join me on this journey. And so I look
forward to all of you meeting him. Thank you, Madam
Chair. Well, Cary welcome. You're already fitting
in beautifully. And we're fully chief'd, which is amazing.
It's, it's been forever. And with that, the Board will
not meet in closed session today. There being no further
business of the Texas Water Development Board. This
meeting is hereby adjourned. The time is now 10:19
a.m. Thank you all very much.