The Texas Water Development Board (TWDB) met on July 22, 2019 to take up a number of items.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing 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.

 

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

  • Jackson – Described recent visit to the Panhandle, outreach efforts in that region.
  • Paup – Described outreach efforts in McAllen.
  • Lake – Described outreach efforts with North Texas Flooding Roundtable.

 

Item 2 –  Consider approving by resolution: (a) the issuance, sale and delivery of Texas Water Development Board bonds to support the State Water Implementation Fund For Texas program in one or more series; (b) the execution of an amendment to the Master Trust Indenture; (c) the execution of the Bond Indentures; (d) the execution of the State Water Implementation Fund for Texas Funds Transfer Agreement; (e) the Preliminary Official Statements; and (f) authorization for the Executive Administrator, Chief Financial Officer, Development Fund Manager, or any other authorized representative to act on behalf of the Texas Water Development Board in the sale and delivery of such bonds.

  • Georgia Sanchez, executive administrator’s staff – The executive administrator is recommending approval of documents associated with issuance of SWIRFT and SWIFT revenue bonds.
    • If approved, sale will be announced and bonds priced September 24, lending rate proposal will be before the Board on October 3.
  • Lake – This is an “interesting interest rate environment” that will require active management.
  • Jackson – Motion to approve to issuance, sale and delivery of bonds as recommended by the executive administrator.
    • Motion passes unanimously.

 

Item 3 – Consider authorizing the Executive Administrator to execute a contract with the Texas Commission on Environmental Quality and the Texas Department of State Health Services for the completion of public health nuisance determination surveys related to financial assistance through the Economically Distressed Areas Program. Board Agenda 03 Document.

  • Kimberly Rhodes, executive administrator’s staff – Executive administrator recommends the execution of the contract between TWDB, TCEQ, and DSHS covering public health nuisance surveys for EDAP, with the ability to make minor revisions.
    • If approved, the contract will be executed prior to September 1, 2019. Contract will automatically renew for the second year of the biennium and will be reviewed every two years.
  • Paup – Motion to authorize the contract.
    • Motion passes unanimously.

 

Item 4 – Consider approving by resolution a request from the Ector County Utility District (Ector County) for $45,765,000 in financial assistance from the Drinking Water State Revolving Fund for planning, design and construction of a water system improvements project. Board Agenda 04 Document.

  • Lee Huntoon, executive administrator’s staff – Ector County Utility District has less than 85% of storage and elevated storage requirements.
    • Proposed project will add 2.5m gallons of storage and other improvements to bring the District into compliance with TCEQ requirements and to improve service.
    • Executive administrator recommends approval.
  • Tommy Irvin, President of Ector County Utility District – There are problems with water pressure, other things. Need to get to TCEQ compliance.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 5 – Considering amending by resolution the previously adopted Texas Water Development Board Resolution No. 16-071, as amended by Resolutions No. 17-073 and No. 18-084, to modify the City of Bryan’s (Brazos County) State Water Implementation Revenue Fund for Texas annual loan closing schedule to extend the commitment. Board Agenda 05 Document.

  • Caren Skrobarczyk, executive administrator’s staff – City of Bryan received an $18m, multi-year commitment from SWIFT in 2016.
    • Preliminary engineering and design will take 8 months, construction will begin in December of 2020. City requests moving closing schedule out from 2019 to 2020.
    • Executive administrator recommends approval of the request.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 6 – Consider amending by resolution the previously adopted Texas Water Development Board Resolution No. 19-027 to modify the City of Garland’s (Dallas County) pledge and level of security for repayment of its financial assistance. Board Agenda 06 Document.

  • Luis Farias, executive administrator’s staff – Board approved $7.6m from Drinking Water revolving fund for a project in the City of Garland.
    • Pledge was incorrectly stated in the original pledge. Due to the mistake, the City was unable to grant a first-lien position to the Board’s bonds.
    • If the proposed amendment is approved, the Board’s bonds will move up to the first position in 2023 when the bonds are no longer outstanding.
    • Executive administrator recommends approval due to the City of Garland’s stable financial position.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 7 – Consider amending by resolution the previously adopted Texas Water Development Board Resolution No. 15-086, to modify the City of Bedford’s (Tarrant County) State Water Implementation Revenue Fund for Texas annual closing schedule. Board Agenda 07 Document.

  • Luis Farias, executive administrator’s staff – City of Bedford is requesting a shift of its 2019 commitment to existing 2021 commitments. The City still has funds remaining from 2015 and 2017 commitments, would like to expend these prior to the closing of any more commitments.
  • Jackson – Bedford is a great example of a city that has invested in water conservation programs.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 8 – Consider amending by resolution the previously adopted Texas Water Development Board Resolution No. 17-075, to modify the City of Justin’s (Denton County) State Water Implementation Revenue Fund for Texas annual closing schedule and to extend the commitment. Board Agenda 08 Document.

  • Luis Farias, executive administrator’s staff – City of Justin requesting to change closing schedule from 2021 to 2022.
    • Bids for project were low, City would like to use remaining funds before closing on the commitment.
  • Jackson – They have closed on $2.4m so far and this is just extending their multiple-year commitment by one year?
    • Farias – Yes.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 9 – Consider amending by resolution the previously adopted Texas Water Development Board Resolution No. 16-073 to modify the City of Keller’s (Tarrant County) State Water Implementation Revenue Fund for Texas annual closing schedule and to extend the commitment. Board Agenda 09 Document.

  • Luis Farias, executive administrator’s staff – City of Keller is requesting to extend the project from 2019 commitment to 2020.
    • Project ran into some utility conflict delays. There are no changes to the project or the funding.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 10 – Consider approving by resolution a request from the Upper Trinity Regional Water District (Fannin, Collin, Cooke, Dallas, Denton, Grayson, and Wise Counties) to amend Texas Water Development Board Resolution No. 15-089A to authorize a $45,500,000 increase in multi-year Board Participation financing from the State Water Implementation Revenue Fund for Texas for acquisition of land for the proposed Lake Ralph Hall reservoir. Board Agenda 10 Document.

  • Luis Farias, executive administrator’s staff – District is requesting additional Board Participation funds to complete land acquisitions for construction of a reservoir and pipeline.
    • District has sound fiscal managements and strong financial stability indicators.
  • Jackson – This is an extremely important project, a number of cities and towns will benefit from this project. This is needed to meet the Region C water shortfall in 2060.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

 

Item 11 – Consider approving by resolution a request from the Fort Bend County Fresh Water Supply District No. 1 (Fort Bend County) for $1,745,000 in financing from the Texas Water Development Fund for construction of a water treatment plant. Board Agenda 11 Document.

  • Nancy Richards, executive administrator’s staff – Requesting $1.7m for construction of a water plant.
  • Jackson – Good to see a small community moving forward in a phased way and planning for the future.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 12 – Consider approving by resolution a request from the Nacogdoches County Municipal Utility District No. 1 (Nacogdoches County) for $1,010,000 in financial assistance from the Clean Water State Revolving Fund for planning, design, and construction of a wastewater system improvements project. Board Agenda 12 Document.

  • Nancy Richards, executive administrator’s staff – District is required to pay TxDOT to relocate sewer force mains as part of an expansion of Highway 59.
    • City is requesting funding from Clean Water State Revolving Fund for the relocation of the sewer lines and to replace an aging lift station.
  • Jackson – Good to be able to help a small community.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 13 – Consider amending by resolution previously adopted Texas Water Development Board Resolutions No. 17-079 and No. 17-086, to modify the Alliance Regional Water Authority’s (Hays, Caldwell, Guadalupe, Comal, Bexar Counties) State Water Implementation Revenue Fund for Texas annual loan closing schedule and to shift its commitment of funds from Board Participation to Low-Interest financing. Board Agenda 13 Document.

  • Dain Larsen, executive administrator’s staff – 2017 commitment was approved as multi-year funding, $32m in low-interest funds were closed in 2017.
    • Request to shift the funds that would have been closed in 2019 to low-interest funds that will be closed in 2020 and 2021.
  • Jackson – This is an important project, shift from Board Participation to low-interest funds will allow them to meet their needs and to maintain the integrity of the SWIFT program.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 14 – Consider amending by resolution previously adopted Texas Water Development Board Resolutions No. 18-093 and No. 18-094 to modify the Guadalupe Blanco River Authority’s (Guadalupe, Comal, Hays, Caldwell Counties) State Water Implementation Revenue Fund for Texas annual loan closing schedules. Board Agenda 14 Document.

  • Dain Larsen, executive administrator’s staff – $58m in Board Participation funds and low-interest funds were closed in 2019.
    • Authority requests to close on funds earlier than originally scheduled, primarily shifting closing dates from 2021 to 2019.
  • Jackson – This is to better align the funding schedule with the construction schedule.
  • Jackson – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 15 – Consider approving by resolution a request from the City of Alice (Jim Wells County) for: 1) $5,499,000 in financial assistance consisting of $2,995,000 in financing, $1,025,000 in zero interest financing, and $1,479,000 in principal forgiveness from the Drinking Water State Revolving Fund for the planning, design, and construction of a supplemental water source project; and 2) a waiver of the requirement to include funds to mitigate water loss as part of this project. Board Agenda 15 Document.

  • Mireya Loewe, executive administrator’s staff – City of Alice’s proposed project will allow the pumping and purification of brackish groundwater, which will reduce the amount of water the City purchases from Corpus Christi.
    • Will use a reverse osmosis treatment system. Savings from reduction in purchases from Corpus Christi will offset the cost of the project.
  • Jackson – This is an ambitious project for a small community. Talk about the first phase and the execution of that phase?
    • Loewe – During the planning stage they will build a test well and will get the water characterization data at that point. It is required that they do an alternative analysis to determine the best solution to their needs and if the project is feasible and cost-effective.
    • Jackson – Good to do the planning for the well to get the water characterization data. Pending those results, then there would be a release of funds for the reverse osmosis facility. This is a big step for this community.
  • Bill Norris, City of Alice – This project was drought-driven five years ago. There was an extreme pumping cost from Lake Corpus Christi to Lake Finley. During times of drought this could save the City $500k per year.
  • Paup – Motion to adopt the proposed resolution.
    • Motion passes unanimously.

 

Item 16 – Briefing and discussion on water conditions in the state of Texas.

  • Mark Wentzel, executive administrator’s staff – Most parts of the state tend to tap into water supply resources during the summer.
    • Total amount of state drought is around 1.6%, significantly better than last year when nearly half the state was in drought.
    • Capacity around 5% higher than what is considered normal for this time of year.
    • National Weather Service expects drought to persist and expand in South Texas and for favorable conditions in the rest of the state to continue through October.
    • Lake – At Elephant Butte, what time of the year does melt from snowpack tend to reach its peak?
      • Wentzel – In May and June, there will probably not be much improvement going for the rest of the year.

 

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.

  • Sally Martinez, May of City of City of Van Ormy – Express support for the sewer and gratn project for the City of Van Ormy. This project is not included in the list for second stage, request attention of the Board to the needs of the City.
  • Charlie Brown, Van Ormy Economic Development Corporation – Van Ormy has had no economic or population growth over the last two censuses because the City has no sewer.