This report covers agenda items #2- 6 of the Texas Water Development Board (TWDB) meeting held on February 2, 2016.
2. Consider authorizing the Executive Administrator and the Chief Financial Officer/Development Fund Manager to take all necessary actions for the issuance, sale and delivery of State of Texas Water Financial Assistance Refunding Bonds and State of Texas Water Financial Assistance Bonds in one or more series in an aggregate principal amount not to exceed $160,000,000; and approving the selection of financial advisor, bond counsel, disclosure counsel and senior managing underwriter for the negotiation of the bond issue. (Cindy Demers) Board Agenda #02 Document
- Demers – this begins the debt issuance process
- Will be including the potential to put $26m in state match in the issuance
- Will be bringing back to the board with final numbers
- Bruun asked about the selection of JP Morgan
- Wanted someone with experience of the transaction
- Motion passes unanimously
3. Consider authorizing the Executive Administrator and the Chief Financial Officer/Development Fund Manager to take all necessary actions for the issuance, sale and delivery of State of Texas State Water Implementation Revenue Fund for Texas Revenue Bonds in one or more series in an aggregate principal amount not to exceed $1,000,000,000; and approving the selection of financial advisor, bond counsel, disclosure counsel and senior managing underwriter for the negotiation of the bond issue. (Cindy Demers) Board Agenda #03 Document
- 2nd round of funding – won’t know final amounts until they get applications and complete the process
- Bruun asked about selection of Bank of America and Merrill Lynch
- Top 5 candidates and performance in round one, etc
- Pricing in October, developing plan of finance and working through model through entire year
- Feb. 5 is deadline for abridged applications
- Bruun noted they had $5b last year in requests, but given the not to exceed number what is the process
- Will be looking to maintain the fund and it is dynamic
- Jackson asked about the estimate of capacity
- $360m committed for multi-year commitments
- If they do need to come back and modify, they will come back to the board to make that recommendation
- Bruun – based on the not to exceed number around $650m in estimated new project capacity and what has been made in multi-year commitments
- Motion passes unanimously
4. Consider approving by resolution a request from the Town of Opdyke West (Hockley County) for $200,000 in loan forgiveness from the Drinking Water State Revolving Fund, to finance the planning, design, and construction of a filtration system to remove arsenic and fluoride from its public water system. (Lee Huntoon)Board Agenda #04 Document
- Jackson said this was an example of what the board can do working with small communities
- Bruun – asked about the balance of funds in the program, March 3 will be the next round of funds going out
- There are still some funds available and applications are in house
- Motion passes unanimously
5. Consider approving by resolution gifts and donations of $500.00 or more in value given to the Texas Water Development Board, submitted for approval in accordance with Chapter 575 of the Texas Government Code, concerning acceptance of gifts by certain state agencies. (Kaye Schultz) Board Agenda #05 Document
- Motion passes unanimously
There were no public comments and TWDB did not meet in executive session.