The Texas Water Development Board (TWDB) considered and approved authorizing the issuance and sale of general obligation bonds for the Economically Distressed Areas Program, as well as an amendment to the contract with Wells Fargo contract. The TWDB also considered and approved multiple system improvement funding requests in Blanco, Goliad, Jasper, Kaufman, and Hill Counties totaling $40,095,000.

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.

Opening Remarks

  • Jackson – spoke at the Water Conservation Council meeting in Austin, met with Huitt-Zollars Engineering Firm, met with town manager of Westlake, attended water loss workshop in Conroe, attended workshop in Buda, began engineering recruitment tour in San Marcos, attended GIS forum, participated in community meeting in Houston, met with leadership of American Society of Engineers
  • Paup – attended LBJ communications conference, attended TWCA conference in San Antonio, attended TWDB Aspiring Leaders graduation
  • Lake – attended TWCA conference in San Antonio, visited San Antonio River Authority, spoke with Plains Cotton Growers Association, met with GBRA,

 

Consider authorizing the Executive Administrator, Chief Financial Officer, Development Fund Manager and General Counsel to take all necessary actions for the issuance, sale and delivery of State of Texas Water Financial Assistance Bonds, Economically Distressed Areas Program, in one or more series; and approving the selection of financial advisor, bond counsel, and disclosure counsel.

 

Georgia Sanchez, TWDB

  • Seeks approval to initiate the process for a general obligation bond sale specifically for the Economically Distressed Areas Program
  • Hilltop is proposed to serve as financial advisor
  • No underwriting syndicate is proposed at this time due to issuing through a competitive sale as opposed to a negotiated sale
  • If approved a timeline will be finalized
  • Would be back December 13th for formal approval
  • Jackson – thanked staff for their work on this
  • A motion was made, seconded and passed without objection to approve taking all necessary actions for the issuance, sale and delivery of State of Texas Water Financial Assistance Bonds

 

Consider authorizing an amendment to the Wells Fargo Depository Trust Custody (DTC) Account Services Contract in an amount of $300,000.

 

LeeRoy Lopez, TWDB

  • Seeking authorization to amend the FY 19 contract in the amount of $300,000 – slightly more than have been paying for on prior years
  • Will allow for growth capacity
  • A motion was made, seconded and passed without objection to approve an amendment to the Wells Fargo Depository Trust Custody (DTC) Account Services Contract

 

Consider approving by resolution a request from the City of Blanco (Blanco County) for $2,550,000 in financing from the Clean Water State Revolving Fund for planning and construction of a new wastewater treatment plant.      

 

Dain Larsen, TWDB

  • Requesting additional funding to construct a 225,000 gallons per day wastewater treatment plant
  • Construction is 70% complete and expecting to be 100% complete in 2019
  • City has proposed tax and system revenue for the incurred debt
  • Jackson – it is not just an investment in new facilities but realizing the need for a plan to move forward proactively to manage the new asset
  • A motion was made, seconded and passed without objection to approve the request

 

Consider approving by resolution a request from the City of Goliad (Goliad County) for $1,000,000 in financing from the Drinking Water State Revolving Fund for construction of water system improvements.

 

Dain Larsen, TWDB

  • Funding for a third water well for its system
  • Would be located on property owned by the city and produce 125 acre-feet of water per year
  • Paup – noted the last commitment from the city was in 1991, glad they are back to continue working with the TWDB
  • A motion was made, seconded and passed without objection to approve the request

 

Consider approving by resolution a request from the Jasper County Water Control and Improvement District No. 1 (Jasper County) for $1,480,000 in financing from the Clean Water State Revolving Fund for planning, acquisition, design, and construction of wastewater system improvements.

 

Nancy Richards, TWDB

  • Located in Buna, TX, the district was created in 1947 and provides water and wastewater services to approximately 2,900 people
  • Will address collection system deficiencies
  • Will replace concrete lines with PVC
  • A motion was made, seconded and passed without objection to approve the request

 

Consider approving by resolution a request from the City of Terrell (Kaufman County) for $24,550,000 in financing from the Clean Water State Revolving Fund for acquisition, design, and construction of wastewater system improvements.  And consider approving by resolution a request from the City of Terrell (Kaufman County) for $7,385,000 in financing from the Drinking Water State Revolving Fund for acquisition, design, and construction of water system improvements.  (Agenda Items 7 & 8)

 

Luis Farias, TWDB

  • Described the City of Terrell
  • 5,468 water and waste water connections
  • Projects include improvements to the treatment process at the King’s Creek wastewater treatment plant in 2 phases, as well as a new storage tank, associated piping, and waterline replacement
  • Will be replacing aging infrastructure
  • A motion was made, seconded and passed without objection to approve the requests

 

Consider approving by resolution a request from the City of Hillsboro (Hill County) for $3,130,000 in financing from the Drinking Water State Revolving Fund for planning, acquisition, design, and construction of water system improvements.

 

Caaren Skrobarczyk, TWDB

  • Described city of Hillsboro
  • Provide water and waste water services to approximately 8,600 people
  • Seeking to make improvements to maintain its long-term water supply
  • Northern and downtown areas currently have inadequate water supply due to low pressure
  • Project includes a new elevated storage tank, pump station, and modifications to existing infrastructure
  • Requesting a waiver of the requirement that a portion of the funds be required to be used for the city’s system water loss because the city is utilizing economic development funds to remove a leaking in-ground storage tank
  • City is in negotiations with wholesaler to provide master water meters to accurately assess water use and loss
  • A motion was made, seconded and passed without objection to approve the request

 

Briefing and discussion on water conditions in the state of Texas. (Dr. Mark Wentzel)  

 

Mark Wentzel, TWDB

  • The last 2 months have brought the most impressive improvement in water supply conditions that he has seen in 20 years
  • Reviewed photos of lake Whitney showing huge increase in water
  • Most recent drought monitor map shows 4% of areas of the state impacted by drought conditions
    • 62% was impacted at the end of August
  • Most of the state got above average rainfall in September and October
  • Rainfall has benefited water storage reservoirs as well
    • Currently running at 87% capacity
    • 5% higher than what is normal for this time of year
  • Reviewed statewide variations in system storage
    • Seeing best numbers from western systems in over a decade
    • 17 systems are at or above normal for the year
    • El Paso is the most concerning system, lowest it has been in 50 years
  • Seasonal drought outlook shows optimistic outlook for Texas
  • Have 75% change of El Nino conditions this winter

 

Public Comment             

Not Discussed

Executive Session           

Not Discussed