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The Texas Water Development Board met on January 19 to take up a number of items. The board approved financial assistance totaling $8,400,859 for water, wastewater, and flood projects. $4,100,000 approved to the City of Sugar Land for drainage system improvements. $4,300,859 to the City of Marble Falls for wastewater system improvements. The full agenda can be found here and an archive of this hearing can be found here.

This report is intended to give you an overview and highlight of the discussions on 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 and the desire to get details out as quickly as possible with few errors or omissions. Chair Brooke Paup, George Peyton, L’Oreal Stepney

Item 1: Discussion regarding outreach efforts and activities by the Board.

Item 2: Consider authorizing the Executive Administrator, Chief Financial Officer, and Development Fund Manager to take all necessary actions for the issuance, sale and delivery of Texas Water Development Board State Revolving Fund Revenue 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 bond issue. (Alejandro Imatzu)

  • Prepare for a state revolving bond sale this summer
    • returning for formal approval on bond sale
  • Hilltop Securities Inc. to be financial advisor
  • Bracewell as disclosure counsel
  • Underwriting team is RVC Capitol, comanagers Morgan Stanley and Raymond James
  • Authorization motion passes

Item 3: Consider authorizing the Executive Administrator to execute multiple contracts in a total amount not to exceed $500,000 through the Texas Strategic Mapping Program. (Richard Wade)

  • Turning the photos of the mapping program in a data layer
    • Accessible only at TNRIS
  • Moving this imagery into GIS software so it is accessible throughout all Texas
    • Doubling accessibility for historic images with the strategic mapping program
  • Authorization motion passes

Item 4: Consider amending the 2022 State Water Plan to incorporate an amendment (to be effective January 30) to the 2021 Region M Regional Water Plan relating to inclusion of a water management strategy and associated projects for the Hidalgo County Drainage District No. 1. (Kevin Smith)

  • Region M included in the Delta Water Management supply recommended water management strategy for the Hidalgo County Drainage District No. 1
  • The projects would construct three reservoirs in northeastern Hidalgo County,
  • State water plan total capita cost will be increased by $168,333,000, but will not change the rounded total capital cost of 80 billion
    • Total strategy volumes in 2022 state water plan are also unchanged
  • If approved, it will be effective January 30th, 2023
  • Motion to adopt amendment passes

Item 5: Consider acknowledging gifts and donations to the Texas Water Development Board valued at $500 or more, in accordance with Texas Government Code Chapter 575. (Kaye Schultz)

  • All gifts paid by 3rd parties
  • Motion to acknowledge passes

Item 6: Briefing and discussion on the status of the Texas Water Development Board’s guidance document related to use of Construction Manager-at-Risk and Design-Build project delivery methods. (Jessica Taylor)

  • Notable revision 1: implementation of staged review process to allow for release of funds for mobilization and procurement of long lead items for both CMAR and Design Build projects
  • Review of bid package procurement at the prime contractor level and release of funds according to the Guaranteed Maximum Price or contact price
  • Final guidance document will be published by January 19th, 2023
  • Approval from Board not required

Item 7: Consider authorizing the publication of adopted amendments to 31 Texas Administrative Code Chapter 363, Subchapter J to implement House Bill 1052 (86th Regular Session). (Jessica Peña)

  • Add interregional water supply projects eligible under the State Participation Program, make changes throughout and have a prioritization system
  • Add state participation II account and make changes throughout
  • Amend language relates to excess capacity
  • Amend language related to timing of application and allow for prioritization and consideration for commitment at any point in the year
  • Authorization motion passes

Item 8: Consider authorizing the publication of a (1) notice of intent to review rules in 31 Texas Administrative Code (TAC) Chapter 353, Subchapters B, D, E, F, and I and (2) notice of intent to review rules in 31 TAC Chapter 353, Subchapters A, C, G, H, and J, including proposed amendments to 31 TAC §§ 353.4, 353.12, 353.41, 353.103, 353.122, and 353.140. (Kendal Kowal)

  • 4 – Updating references to visitor registration for Board Meetings to align with current agency practice
  • 12 – move posting of all administratively complete applications from the Texas register to agency website
  • 41, 353.103 and 353.122 – Update outdated citations, cross references, and terminology
  • 140 – Simply factors and procedure for reviewing risk factors of agency contracts
    • Recommended by sunset commission
  • Authorization motion passes

Item 9: Consider authorizing the publication of a (1) notice of intent to review rules in 31 Texas Administrative Code (TAC) Chapter 354, including a proposed amendment to 31 TAC § 354.6, and (2) proposed repeal of 31 TAC §§ 354.1, 354.2, 354.4, 354.6, 354.9, and 354.15. (Kendal Kowal)

  • Recommended publication of notice to review rules in 31 TAC Chapter 354 including proposed amendments above
  • Repeal of 31 TAC sections from above
  • Rulemaking will be filed with the Texas Register, repeal also filed with the Texas register
  • Authorization motion passed with Item 10

Item 10: Consider authorizing the publication of a (1) notice of intent to review rules in 31 Texas Administrative Code (TAC) Chapter 380, Alternative Dispute Resolution, Subchapter B, Negotiation of Contract Disputes; Subchapter C, Mediation of Contract Disputes, and; Subchapter D, Assisted Negotiation Processes; and (2) proposed amendments to 31 TAC §§ 380.2 and 380.3. (Kendal Kowal)

  • Publication of notice of the TWDB’s intent to review rules in 31 TAC Chapter 380, subchapters B through D
  • Publication of proposed amendments to 31 TAC 380.2, applicability, and 380.3 definitions to correspond to statutory changes in Chapter 2260, Texas Government Code since the promulgation and adoption of the rules by TWDB in 2001.
  • Authorization motion passed with Item 9

Item 11: Consider amending by resolution, the previously adopted Texas Water Development Board Resolution Nos. 21-097 and 22-009 to extend the Willow Fork Drainage District’s Flood Infrastructure Fund commitment. (Nancy Richards)

  • Willow Fork Drainage District received a commitment of funding as $22,085,000 in financing and $1,921,760 in a grant from the Flood Infrastructure Fund
  • Federal courts could impose flowage easements on any property affected by hurricane Harvey.
  • Extending commitment through December 31, 2023
  • Motion to amend by resolution passes

Item 12: Consider approving by resolution a request from the City of Sugar Land (Fort Bend County) for $4,100,000 in financing from the Flood Infrastructure Fund for planning, design, and construction of a drainage project. (Nancy Richards)

  • Two separate bond issues totaling the above $4,100,000
  • Installing storm sewer improvements and replacement of inlet and outfall structures
  • Use of General obligation bond and a certificate of obligation in this circumstance
  • Motion to approve resolution passes

Item 13: Consider amending by resolution, the previously adopted Texas Water Development Board Resolution No. 22-030 to modify the Harris County Flood Control District’s Flood Infrastructure Fund commitment to extend the commitment period. (Nancy Richards)

  • Received $2,208,906 in grant funding from the flood infrastructure fund in April 22
  • October of 2022, Administrator approved a three month extension to expire on January 31st, to allow district to work on the cost
  • Expected to close on January 27th
    • Requesting another two month extension
  • Motion to amend by resolution passes

Item 14: Consider approving by resolution a request from the City of Marble Falls (Burnet County) for $4,300,859 in financial assistance consisting of $2,670,000 in financing and $1,630,859 in principal forgiveness from the Clean Water State Revolving Fund for construction of wastewater system improvements. (Dain Larsen)

  • Money request is for re-locating their waste water treatment plant outside of the flood plain
    • Adds 5.3 miles of reclaimed water pipeline, a pump station, and reconfigures reclaimed water system
    • Categorized as green, city categorized as disadvantaged
  • Motion to approve by resolution passes

Item 15: Consider amending by resolution, the previously adopted Texas Water Development Board Resolution No. 22-083 to extend the City of Marble Falls’ Clean Water State Revolving Fund commitment. (Dain Larsen)

  • Commitment will expire in April 2023, requesting another 6 months (October 2023)
  • Would allow for a reduction in total closing costs for the City of Marble Falls and tie into their budgeting process
  • Motion to approve by resolution passes

Item 16: Consider amending by resolution, the previously adopted Texas Water Development Board Resolution No. 21-033 to modify the City of Bay City’s Drinking Water State Revolving Fund annual loan closing schedule. (Dain Larsen)

  • Request to re-allocate $1,200,000 of existing multiyear commitment in the drinking water program from 2024 to 2023
  • City plans on accelerating bidding of a major component of the project, needing additional funding for the accelerated schedule
  • Avoiding potential price increases
  • Motion to approve by resolution passes

Item 17: The Board will receive comments from the public on any matters within the jurisdiction of the TWDB, with the exception of matters which are subject to the ex parte prohibition found in Texas Government Code Section 2001.061

  • Witness Larry Linenschmidt (Hill Country Institute): Average temperature increase of 2.2 degrees since the 1880’s, Texans have to pay for further climate change and water resources not being at capacity
    • Incorporate climate change studies into all planning for water infrastructure, include climate impact statements
    • Develop plan of planting native vegetation by homeowners to limit water consumed by residential properties
      • Will decrease demand for water potentially
    • All water as a single resource, drinking, waste, storm
  • Abandoned oil wells cause damage to water resources
    • Property owners spend hundreds of thousands of dollars to clean up damage from abandoned wells
  • Third reservoir in the Katy area should be considered and was also recommended by Governor Abbott and Congressman McCaul

Item 18: Adjournment

  • Board will not meet in closed session