During the meeting, various requests for financial assistance were discussed and approved, focusing on water and wastewater system improvements across different counties and cities in Texas. Additionally, initiatives such as flood mitigation efforts and technical assistance programs were addressed, highlighting a commitment to addressing infrastructure challenges and enhancing water resource management. The discussions emphasized the importance of meeting compliance standards, securing funding, and engaging with communities to ensure project success and sustainability. Overall, the board showed an initiative-taking approach to addressing water-related issues and supporting local development initiatives. The agenda to this meeting can be found here, and the archived video can be found here.
This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer.
- Director Peyton V – Chairwoman Brook Pop is not in attendance
Stanley Brewer, Director of South Plains Water Corporation
- Brewer – Newly formed corporation, about a year now
- We are on the cusp of owning the water utility, but right now we are the temporary mangers of the utility
- Here to thank you all on the potential grant we will receive to upgrade our water services
- Right now, the quality and reliability of the water services in Shallow Water needs improvement
- Director Stephanie – How large is your community
- Brewer – Around 300, however we cover a lot of area as well
Kathleen Ligon, Executive Administrator’s Staff
- Received comments and feedback up to April 30th by survey on our website
- We are excited to announce our first rural proposal relating to the Texas Water Fund, which is for the Texas Rural Fund, is on the agenda today
- Director Stepney – I presented on a panel since our last board meeting, with the presentation ranging from transportation to infrastructure
- Also, I presented at the Texas municipal leagues mid -year conference to provide updates on the board, specifically about our financial assistance programs
- I also attended the Texas Water Day at the National Water Day Conference in Washington D.C.; it was great to engage with other states and legislators on water -related topics
- I have also met with NAD Bank on a potential partnership with our board as they can do some things on for our board on the federal side
- I also met with a similar firm to learn about their services and their partnerships with local entities
- Discussed TWCA and others to discuss projects related to financial assistance as well as the Texas Water Fund
- Did a tour around Lubbock to see all the completed and in -progress projects, from flood mitigation to improved infrastructure, our dollars are being put to good us
- Director Peyton V – I attended several conferences around the state and nationally, including the TWCA conference
- We had a work session on flood policy recommendations
- Attended the JP Morgan Public Utilities Conference in New York to facilitate the relationships with those who buy our bonds, very important that those relationships remain productive and healthy
- The agriculture conservation grants are some of the most effective and efficient use of taxpayers’ dollars in the state; big proponent of getting money out through this grant
Kathy Hopkins, Executive Administrator’s Staff
- Hopkins – The flood mitigation assistance grant program assists states and communities by providing federal funds to reduce long term flood damage that contribute to the loss of structures
- Program is insurable under the national flood insurance program
- In 2020, FEMA notified TWBD that 37 out of the 41-community sub-applications in this program were up for further review; These sub applications have a total project cost of 247.6 million dollars, of which 176.6 will be federally funded; roughly $50 million dollars will be needed to match
- Sub applications are anticipated to mitigate over 24k flood prone structures through hazard mitigation plans, project scoping, elevation, and acquisition projects
- An addition to the 37 already selected, FEMA selected TWBD’s management cost application in the amount 8.9million in federal funds with a required state match of 2.2 million dollars
- 800m available nationwide, Texas received 247.7 of it
- We have received the highest allocation, super excited about this
- Director Stepney – Excited to see what these funds can do to mitigate flood
- Director Peyton V – Motion passes
- Approve by resolution a request from the City of Dallas (Dallas County) for $113,190,000 in financial assistance consisting of $90,090,000 in financing and $23,100,000 in grant from the Flood Infrastructure Fund for a federal grant award matching funds project. (Kathy Hopkins)
- Approve by resolution a request from the City of Dallas (Dallas County) for $16,675,712 in financial assistance consisting of $14,175,000 in financing and $2,500,712 in grant from the Flood Infrastructure Fund for a federal grant award matching funds project. (Kathy Hopkins)
(Being presented together)
- Hopkins – Dallas has applied for funding assistance through the Flood Infrastructure Fund, under category 3, seeking assistance while meeting the local match requirement
- This category of funding was designed to leverage federal funds
- The funding is asked to support two projects along the Trinity River, the modified Dallas Floodway, item 6, and the modified Dallas Floodway extension, item 7
- The Modified Dallas Floodway was awarded to the Army Corps of Engineers at $297,497,200 in federal funds through a project partnership agreement with the city
- Funds will address the repetitive funds occurring in Dallas
- August 22,2022 a major flood occurred, in this project area, resulting in $6 billion in damages and economic loss
- This project looks to improve the flood mitigation systems for an estimated $14 Billion in real estate and personal property, and over 400,000 citizens
- Army Corps of Engineers will cover 65% of expenses, the remainder of the project will be covered by local match
- Army Corps of Engineers awarded this project, $517,390,000 in federal funding through the project cooperation agreement with the city
- New levy that ties into the existing Dallas floodway system will extend the protection, downstream to adjacent neighborhood
- The local match provided by the city will be to provide funds for land acquisition and utility relocation
- The city of Dallas is asking for financial assistance with utility relocation
- Director Peyton V – Motion passes
Marvin Cole -Chaney, Execuitve Administrator’s Staff
- Cole -Chaney – The purpose of the rules changes is to implement SB 469’s rural political subdivision definition and SB 28’s expansion of a liable technical assistance
- The proposed changes also include an amendment to clarify that the interest rates for rural water assistance fund loans, funded by a source other bond proceeds, will be administered by the executive administrator, as well as minor changes regarding language and implementation procedures
- Director Peyton V – I move to authorize
- Director Peyton V -motion passes
- Cole -Chaney – This amendment will allow for the use of the second years appropriation under the infrastructure investment and jobs act in the amount of 146.2m
- Applying for the additional grant to the 2023 project list will allow for more projects to be funded through this intended use plan, and allow staff to invite more projects sooner, utilizing the second years grant under separate, new intended use plan
- The combined funding available through this intended use plan to fund projects will increase to the amount of $354M and
- For the 2023 intended use plan, we received 262 eligible project proposals requesting a total of $4.1 billion dollars
- Director Stepney – Just to be clear, we are going to use the 2023 IEP, and add additional funding to that, and then we will have a new plan in 2025
- Correct
- Peyton V – There is a lot more need than we have funding for
- Director Stephney – I move that we approve
- Peyton V – Motion passes
Jesse Milonovich, Executive Administrator’s Staff
- Milonovich – State Water Implementation Fund for Texas program (SWIFT) was created by the 2013 legislature
- SWIFT provides financial assistance to communities to develop adequate water supplies in times of drought, and supports funding of water supply projects
- Board has committed 11.5 billion dollars in SWIFT funding in support of 70 recommended water management strategy projects estimated to produce an approximate 1.7 -million -acre feet of water supply
- Program participants have saved an estimated 1.5B compared to market rate interest financing
- 2024 SWIFT funding cycle was opened on December 7th, 2023, 20 abridged applications requesting a total of 3,411,212,798 dollars
- These abridged applications were prioritized through the prioritization system in 31 TAC 363.1304; one application was withdrawn
- Of these 19, all are eligible and have been prioritized at a total amount of 3,343,838,798
- Of those 19, 10 are requesting commitments
- If authorized by the board, these entities will be invited to send applications by May 13th
- The board would then consider those applications throughout the summer
- The fall 2024 closings requested from both existing multi -year commitments and new abridged applications would be 2.9 billion dollars
- The executive Administrator recommends approval of the following four items: the prioritization of the 2024 SWIFT abridged applications, the authorization of $3,343,838,798 in funding for the 2024 SWIFT cycle, authorization of program structure in terms of funding, and accommodation of requested shifts in closing amounts under existing multi -year commitments for a net decrease of an estimated 16 million
- Director Stepney – Excited to approve the four items as it speaks to
- Director Peyton V – I am a massive fan of SWIFT as it is an efficient and effective use of taxpayer dollars
- Director Peyton V – The number of proposals received is the second highest or highest I have seen which continues to speak to the volume of need
- Director Peyton V – Motion passes
Jessica Peña, Executive Administrator’s Staff
- Peña – Some entities have struggled to see commitments in their request for financial assistance in the various TWDB programs designed for financial assistance because of issues such as completing forms correctly, or knowing how to develop rate structures
- WUTAP proposes to provide technical assistance to entities with the goal of improving the organizations’ overall help and better position entities to navigate applying for financial assistance through correction of compliance issues
- Based on the responses to the RFQ, 8 vendors have been determined to meet the qualification requirements and are recommended to be entered into the contract pool
- 37 participant systems were deemed eligible for the program
- The Executive Administrator, for the first round of WUTAP, recommend the first 13 systems be selected to participate; of the 13 selected, all but one serve rural areas, and 10 have median below 75% of state average
- Executive Administrator request authorization to select 8 contractors be selected to complete deliverables on behalf of the participant systems, the selection of 13 systems to participate in the program, and an initiate an enter-into-contract with a total amount that would not exceed 2 million dollars to implement the WUTAP
- Dr. Stepney – How is this going to work, are we going to select based on verification?
- Peña – We will select based on their needs
- Dr. Stepney – How are we going to judge performance from those selected vendors
- Peña – They must provide deliverables; if they do not have current processes in place, they will have to deliver guidance on how to select duties, outline separation of controls
- Peña – If they do not have rates study and they are selected to have one completed then the completion of that rate study and implementation of training would be a judge of performance
- Director Stepney – Very interested in seeing performance in the next year
- Director Peyton V – This is an example of the board being reactive and implementing the feedback we have received
- Director Stepney – I move we authorize
- Director Peyton – Motion passes
- Peña – Mount Vernon services 2,600 people
- Requesting planning and design funds for drinking water and wastewater infrastructure projects
- For drinking water, projects include the replacement of service water supply line to allow a water treatment plant to operate at full capacity and the replacement of distribution lines to address water loss
- The wastewater project includes rehabilitation of a treatment plant and replacement of sewer lines to address inflow and infiltration issues
- Director Peyton V – I move we adopt the resolution
- Director Peyton V – Motion passes
Clay Schultz, Executive Administrator’s Staff
- Schultz – The district is located between Austin and San Antonio
- Requesting financing from the TWDB for storage and supply
- The district proposes to add 2.5M ton of elevated storage capacity, and complete the construction of three wells in the trinity aquifer
- The district currently operates two wells drilled into the Edwards Aquifer; the three new wells in the trinity develop a new supply for the district
- The water source for the new wells is not consistent sources of supply outlined in the current regional and state water plan, this is why we are asking for a waiver on requirements
- The Regional planning group is in support of the waiver
- The district is above its threshold in real water loss, and requests a waiver from including funds in this project to mitigate water loss
- The district has acted in mitigating this water loss by installing 500 acoustic detection meters that notify the district on potential leaks, pressure reducing valves and variable speed valves, and replacing sections of aging pipe
- The district also performed and participated in studies showing reduction of water loss
- We also have an active drinking water state revolving fund with the district that includes the replacement of water lines; this project is detailed in the construction plans
- Director Stepney – Stability in pressure and storage is paramount for any district to manage water
- Director Peyton V – Thank you for the detail on the waivers
- Director Peyton V – Glad to see regional water board supporting these actions
- Director Peyton V – motion passes, resolution adopted
- Schultz – Located in Harris County, 27 NW of downtown Houston
- Serves 6890 residents
- The district has initiated rehabilitation of its sanitary sewer collection systems; completed rehab on its three oldest sections using local funds
- Requesting funds for remaining rehabilitation of its service area
- Rehabilitating acts would include planning, design and construction phases, televisions inspection phases, and the repair and replacement of pipes
- Director Stepney – Usually a lot of focus on drinking water; I applaud the community for wanting to rehabilitate its sewer systems
- Director Peyton V – motion passes, resolution adopted
- Schultz – Located 20 miles west of Fort Worth, and serves 350 residents
- The wastewater treatment plant has reached its operational capacity and could potentially fall into non -compliance
- Requesting funding to increase capacity to maintain compliance with discharge requirements
- Director Peyton V – Motion passes
- Schultz – The district is located 20 miles north of downtown Houston, and provides water and wastewater services to 3000 residents
- The district is experiencing water loss due to aging water lines
- Since 2023, the district has been replacing water mains and lines with local funds
- Requesting financing from the TWDB to replace 15000 linear feet of water lines
- Director Stepney – Can you talk a little about their audit
- Schultz – There was a material weakness related to internal controls, identified in their last annual audit
- We have recommended that an addition be included where prior to closing they must submit a corrective action plan to address any material weaknesses
- Director Stepney – So before the finances are settled, they must submit a plan to address potential material weaknesses
- Schultz – Correct
- Director Stepney – We are good on the rates, and the ability to pay back the loan
- Schultz – Yes ma’am, they are 2B and we do expect a $9 rate increase needed prior to 2045
- Director Stepney – Thank you
- Director Peyton V – Motion passes
Tom Barnett, Executive Administrator’s Staff
- Barnett – City of Sugar Land applied to HB1’s grant funds in 2024
- The financed work includes design and installation of erosion and control measures on the outer banks of a meandering section of the Brazos River, in two locations to migration of the riverbank to prevent the riverbank from moving in the direction of existing homes
- Director Peyton V – Motion passes
- Located 30 miles south of Tyler; serves 1000 residents
- The corporation needs financial assistance to put an off -line water well back into service to address TCEQ compliance issues
- The corporation also is asking for funding to plan, design and construct a ground storage tank, and disinfection system to allow for the safe use of the existing well to meet capacity requirements
- They qualified for 70% in principal forgiveness, and the remaining loan to remain at 0% interest as the corporation services a disadvantaged community
- Director Stepney – What is this note about a negative operating trend
- Barnett – That would a year -by -year look at the corporation’s audits; our credit analysts perform this function
- Director Peyton V – Motion passes
- Barnett – City of Eastland is 50 miles east of Abilene, services 4000 residents, and sells treated water to surrounding water providers
- Barnett – The city received $1.2 million in assistance from the Drinking Water SRF in 2018
- This was to replace a two -mile transmission line connecting the city’s hot service pump station and elevated storage tank; pipeline has been in service for 70 years
- Pipeline experiencing leaks, reductions in pressure, and other service issues that has resulted in violations to TCEQ rules
- Requesting additional assistance from the 2023 Drinking Water SRF to address construction cost escalations
- Director Peyton V – Why has it taken the City of Eastland to draw down on the 2018 funds and just begin this project now
- Barnett – I think it can be attributed to the pandemic, and its associated challenges
- Director Peyton V – In this case, the funds for this project have doubled; I wanted to reiterate that districts and cities allotted funds should act on them ASAP
- Directo Peyton V – Motion Passes
- Milonovich – 90 miles NW of Lubbock provides service to 754 residents
- They usually surface water from Lake McKinsey and the McKinsey Municipal Water Authority; however, drought has forced Silverton to rely on ground water which is not sustainable
- The current wells being used do not comply with TCEQ standards and rules
- Silverton proposes to drill three, new wells at the Swisher County wellfield site that would meet the current TCEQ standards on arsenic content as well as meeting sufficient capacity
- Cit previously received funds from the Economically Distressed Areas program for the planning, acquisition, and design of this project
- Funds were used to acquire the 638 -acre wellfield in Swisher County
- Apart of this project, the city looks to construct wellfield infrastructure, a new pump station, a 200k gallon water storage tank, 11.3 miles of 12 -inch transmission line, and a supervisory and data control and collection system
- The project has received report from the Regional Water Planning Board
- Director Stepney – We want to make sure they can pay back this loan, further explain the financing in this request
- Milonovich – They are proposing a rate increase above what staff is looking at
- They are aware of needing to pay back the loan
- Ahead of closing, Executive Administrator and staff want to see sufficient system rates and charges, that they are current with their financial audit and that they have a cash reserve account
- Director Stepney – Just making sure there is steps in place; I support this project
- Director Peyton V – Do you have any information pertaining to the community being on board with this project, and the subsequent rate increase
- Milonovich – Nothing specific besides the assurance from the city that this what they need
- I have not received any negative feedback
- Schultz – Once they get into the planning phase, specifically in the environmental review process, there is a public comment and planning phase as well
- Director Peyton V – Motion passes