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The Texas Water Development Board met on October 5 to take up several items. The Board approved financial assistance totaling $11.741,800 for water, wastewater, and flood projects. This financial assistance consisted of $4,650,500 to El Paso County for a flood mitigation project, $1,475,000 to the Welch Water Supply Corporation (Dawson County) for water treatment plant improvements, $2,638,900 to the City of Gladewater (Gregg and Upshur Counties) for water system improvements, $491,400 to the City of Moran (Shackelford County) for wastewater system improvements, $1,488,000 to the City of Marble Falls (Burnet County) for wastewater system improvements, and $998,000 to the Mullin Independent School District (Mills County) for water 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 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.

 

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

 

Item 2: Consider approving the 2022 Texas Rain Catcher Awards. (John Sutton)

  • Interest in rainwater continues to grow in the state
  • Two awards in the agricultural sector, one in commercial, one in educational, and one in governmental
  • Combined potential collection is over 1.7 million gallons annually
  • Raven Canyon LLC has elevation drop of over 250 ft with entire canyon managed for rainwater collection using earthworks for increasing effectiveness
  • Pecan Springs Ranch retrofitted Dutch barn for 8,000 sq ft of rainwater collection; allows them to rely less on well water
  • Har-con Mechanical received LED platinum certification for rainwater conservation and has reduced potable water consumption by over 86% annually
  • Reilly Elementary School Rain Catcher Pilot Program minimizes erosion and minor flooding, use cisterns for outdoor learning program
  • Prairie Lands Groundwater Conservation District used rainwater collection and garden to offset impact of a large building; standalone rainwater harvesting and educational program

 

Item 3: Consider authorizing by resolution the Executive Administrator to request a waiver from the Texas Bond Review Board (BRB) of certain requirements contained in Texas Water Code § 17.0112(a).

(Georgia Sanchez)

  • $100 M of EDAP bonds during biennium; in FY 2022 EDAP competitive bond sales deferred to combined two issuances of the $100 M
  • $532.4 M in funding requests from 29 entities; would like to proceed with sales request
  • Seek approval to initiate the BRB waiver process to exceed $50 M statutory limit

 

Item 4: Consider approving by resolution the establishment of the lending rate scales for the State Water Implementation Revenue Fund for Texas (SWIRFT) financing structures to be effective October 5, 2022. (David Duran)

  • Board priced bonds and will issue $962 M to generate approximately $987 M of proceeds to provide to borrowers; issued 4.46% all in true interest cost
  • Bonds will close on October 13; borrowers will have until December 8th to close on bonds
  • Staff has estimated realized saving of approx. $131 m by utilizing program and inclusive all previous sales will be over $1.3 B

 

Item 5: Consider authorizing the Executive Administrator to renew a contract with the Texas Municipal Advisory Council (TMAC) in an amount not to exceed $361,800 for the purpose of providing analytical financial data services (Danielle Palacios)

  • Data services from TMAC are used for review of borrowers certified audit through a financial analysis tool; TMAC provides efficiency
  • Recommend funding for 1 year renewal period beginning in Sept 1, 2022 to August 21, 2023
  • Threshold amount has exceeded executive administrators authorization so need to request authorization

 

Item 6: Consider approving by resolution an updated separation of policy-making responsibilities of the governing body of the Texas Water Development Board, the management responsibilities of the Executive Administrator, and related delegations to the Executive Administrator. (Alexis Lorick)

  • Last time this motion was considered in 2018; current item an update because board has responsibilities to approve regional flood plans

 

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

  • Projects benefit multiple water planning regions
  • Prioritization criteria to add state participation to account to fund development of aquifer storage and recovery or desalinization facilities
  • Changes wording and non-substantive changes to provide clarity

 

Item 8: Consider authorizing the Executive Administrator to: (a) negotiate and execute a contract in an amount not to exceed $2,091,375 (including $1,727,640 from the Texas Water Development Board) for continuation of the Water Resources Investigations data collection program with the U.S. Geological Survey in Fiscal Year (FY) 2023; and (b) amend the contract in an amount not to exceed $100,000 if additional funds become available. (Mark Wentzel)

  • 761 stream and 158 lake level gages in Texas with near real time data
  • Source of TWDB funding is $1,496,640 from general revenue and $258,000 from the flood plain management account within the Texas Infrastructure Resiliency Fund
  • Will support operation and maintenance of 51 streamflow and 34 lake level gages that contribute to objective of provide data for planning and water management resources
  • Additional funds will support maintenance on 57 streamflow and 6 lake level and 45 rain gages that contribute to improving flood warning and forecasting across that state

Item 9: Consider authorizing the Executive Administrator to: (a) select contractors that may be used to complete Asset Management Program for Small Systems (AMPSS) contract deliverables on behalf of participant systems; (b) select 20 systems to participate in this round of AMPSS; and (c) initiate and enter into contracts in a total amount not to exceed $2,000,000 to implement AMPSS. (Patrick Kading)

  • AMPSS first official round to commence and will work with prequalified contractor of their choice; 15 contractors that met requirements to be part of selection pool
  • Great interest in the program with 178 eligible applications
  • No financial match required from systems other than to contribute 80 hours of their time to the projects
  • Large need for this program but limitations to the number of systems that can be part of AMPSS

 

Item 10: Consider approving the State Fiscal Year 2023 Clean Water State Revolving Fund Intended Use Plan covering General Activities and Item 11: Consider approving the State Fiscal Year 2023 Drinking Water State Revolving Fund Intended Use Plan covering General Activities. (Marvin Cole-Chaney)

  • Both have increased program capacity
  • Clean water was set at $408 M and drinking water $342 M; reflect addition of grant allocated base funds
  • Changes include increased levels of funding offered in form of principal forgiveness, reserve funding for project cost increases, and $10 M cap for total principal forgiveness that may be given to any one project
  • Requests board to consider approving the executive administrator ability to make non-substantive changes if necessary
  • Peyton- How does the amount available to disadvantaged communities change from last year with the addition of the principal forgiveness cap?
    • Instead of it being limited to $10 M for one entity it can be expanded across one project; allowing entities to get more than $10 M if they have multiple projects

 

Danielle Goshen, National Wildlife Federation

  • During the second draft, organizations including mine advocated for removal of $10 M cap due to concerns it will negatively affect disadvantaged communities with large needs
  • Encourage inquiry into why disadvantaged communities on the initial invited project list fail to submit a full application or fail to move forwards with finance
  • Encourage to easily track and communicate which projects receive funding and ranking to see which projects are moving forward

 

Item 12: Consider authorizing the Executive Administrator to execute the State Fiscal Year 2023 Drinking Water State Revolving Fund Set-Aside Contract between the Texas Water Development Board and the Texas Commission on Environmental Quality covering regular annual appropriations. (Marvin Cole-Chaney)

  • No substantive changes from last years contracts
  • Funds will be used to administer and enforce federal safe drinking act standards
  • Used for capacity development activities

 

Item 13: Approve by resolution a request from El Paso County for $4,650,500 in financial assistance consisting of $2,372,000 in financing and $2,278,500 in grant from the Flood Infrastructure Fund for planning, acquisition, design, and construction of a flood mitigation project. (Jessie Milonovich)

  • City of Socorro experiences flooding about two times per years; embankment at El Paso Hill detention basin has not been repaired since 2004 storm event
  • Prepare embankment and construct a new detention basin; will affect water shed for large number of people

 

Item 14: Approve by resolution a request from the Welch Water Supply Corporation (Dawson County) for $1,475,000 in financial assistance consisting of $675,000 in financing and $800,000 in principal forgiveness from the Drinking Water State Revolving Fund for planning, design, and construction of a water treatment plant improvements project. (Jessie Milonovich)

  • Groundwater contains contaminants including arsenic, fluoride, and nitrates
  • Funds for new reverse osmosis water treatment system and effluent disposal system to treat water and maintain compliance
  • Principal forgiveness would include $300,000 for very small systems and $500,000 for urgent need to address with 0% interest

 

Item 15: Approve by resolution a request from the City of Gladewater (Gregg and Upshur Counties) for $2,638,900 in financial assistance consisting of $1,861,000 in financing and $777,900 in principal forgiveness from the Drinking Water State Revolving Fund for planning, design, and construction of a water system improvements project. (Joe Cohen)

  • Coating system on storage tank requires replacement and Lake Gladewater intake pumps not functioning properly, city distribution system needs improvement to maintain pressure and disinfection residuals
  • City will develop an asset management plan for this project

 

Item 16: Approve by resolution a request from the City of Moran (Shackelford County) for $491,400 in principal forgiveness from the Clean Water State Revolving Fund for planning, design, and construction of a wastewater system improvements project. (Tom Barnett)

  • Small community under enforcement from the Texas Commission on Environmental Quality for failing to properly treat effluent release from wastewater treatment plant
  • Aim to address this by rehabilitating its existing Imhoff tank and effluent disposal systems to bring the city back into compliance
  • City qualified to receive 100% principal forgiveness

 

Item 17: Approve by resolution a request from the City of Marble Falls (Burnet County) for $1,488,000 in financial assistance consisting of $995,000 in financing and $493,000 in principal forgiveness from the Clean Water State Revolving Fund for planning and design of wastewater system improvements. (Dain Larson)

  • Would be part of city’s larger project to move their wastewater treatment center out of the flood plain
  • Allow them to add another effluent strategy to their current ones which include land application and a purple pipe system

Item 18: Approve by resolution a request from the Mullin Independent School District (Mills County) for $998,000 in financial assistance consisting of $398,000 in financing and $600,000 in principal forgiveness from the Drinking Water State Revolving Fund for the planning and design of water system improvements. (Dain Larson)

  • Request for planning and design of reverse osmosis system for existing well that has an elevated nitrate level that makes the water unsafe
  • Water currently provided through water bottle purchases
  • Will add extension of water system to surrounding community without a reliable public water source
  • School is working with the city that could include the formation of a nonprofit water supply corporation or special utility district
  • Both members show strong support for project; say it is unacceptable for students to be without clean drinking water in school

 

Item 19: Amend by resolution the previously adopted Texas Water Development Board Resolution No. 22-034, to modify the North Alamo Water Supply Corporation’s Clean Water State Revolving Fund commitment expiration date. (Mireya Loewe)

  • April 11, 2022, $15.34 M commitment to provide first time sewer service; set to expire at end of current month
  • In May of 2022 the corporation submitted an abridged application to the Economically Distressed Area Program (EDAP) for construction funding of the same project
  • Wish to delay the closing of commitment date for six months to determine if they are EDAP eligible and how they ranked

 

Item 20: Consider authorizing the Executive Administrator to execute an amendment to an interagency contract with the University of Texas at Arlington to increase the contract total by an amount not to exceed an additional $800,000 to provide engineering services. (Clay Schultz)

  • Current project is for $770,000 and includes four tasks specifically review of plans and specifications, site visits of projects, review and scoring of clean water state revolving fund project information forms, and assistance with processing certificates of approval and project closeout
  • Peyton- How important is this?
    • This is critical with the funding for engineering services

Items 21 and 22: No public comments for this meeting and no closed meeting

Meeting adjourned