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The Texas Water Development Board met on October 5 to take up a number of items. Texas Water Development Board today approved financial assistance totaling $61,965,000 for water and wastewater projects for Hill, Menard, Harris, and Guadalupe counties. TWDB authorized rule review to 31 Texas Administrative Code (TAC) Chapters 357, 358, 359, 360, 363, 364, 367, 371, 375, and 377. TWDB also approved by resolution the establishment of the lending rate scales for the SWIRFT. A complete agenda of the meeting can be found here. A video of this meeting can be found here.

 

This report is intended to give you an overview and highlight 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.

 

Item 2: Consider authorizing the publication of notices of intent to review rules in 31 Texas Administrative Code (TAC) Chapters 357, 358, 359, 360, 363, 364, 367, 371, 375, and 377.

  • Proposed to change rules stated above
  • Staff will review these rules to see if they should be repealed or withdrawn
  • Stepney – We look forward to the feedback
  • Peyton – Move to authorize these notices of intent
    • Motion passes

 

Item 3:  Consider adopting with changes the previously proposed amendments to 31 Texas Administrative Code Chapters 361 and 362 relating to Regional and State Flood Planning.

  • Goal of amendment process was to make the regional flood plan process more efficient
  • Includes map of locations that are the greatest risk
  • Proposed rule removed requirements that the feature conditions analysis for the 0.2% chance floodplain but then went reintroduced the rule after public comment
  • The proposed amendment moved flood mitigation need analysis before development of flood mitigation and flood management goals
  • Flood mitigation strategies will only include those that have non-recurring non capital cost changes
  • Paup – $500,000,000 committed right now and 600 projects, and new capital cost of $40 billion
  • Stepney – Move to adopt the changes to the previously proposed amendments
    • Motion passes

 

Item 4: Consider approving Internal Audit’s Fiscal Year 2024 Audit Plan.

  • Stepney – I support the audit plan
  • Peyton – The role y’all play is critical
  • Peyton – Move to approve the 2024 audit plan
    • Motion passes

 

Item 5: Consider approving by resolution the establishment of the lending rate scales for the SWIRFT financing structures to be effective October 5, 2023.

  • On September 27th the board priced the bonds to provide new money proceeds for borrowers closing on board committed project in the state water plan
  • Committed 1 billion in bonds to generate 1 billion of proceeds
    • Bonds were issued at 4.69%
  • The boards bonds will close October 12 and SWIFT borrowers will have until to December 7th to close
  • Savings of $133 million by utilizing the SWIFT program
  • SWIRFT bond sales savings of $1.5 billion
  • Peyton – How are we in comparison with treasuries
    • Staff – We have a sizable spread to treasuries
  • Paup – $1.5 billion to our borrowers, that’s amazing
  • Peyton – We used $300 million to create $1.5 billion in savings
  • Stepney – Move to approve the lending sales rates
    • Motion passes

 

Item 6: Consider approving the adopted minor amendment to the 2021 Region H Regional Water Plan and authorizing the Executive Administrator to hold the associated 2022 State Water Plan public hearing.

  • Adds additional recommend water management strategy and project to the lower Neches Valley pump station
  • It will replace an existing raw water pump station with a higher capacity pump station and move intake structure on the Trinity River
  • The amendment adds $17.6 million to the plan
  • It will add 9000-acre feet per year
  • Peyton – Move to approve the minor adopted amendment
    • Motion Passes

 

Item 7: Consider authorizing the Executive Administrator to execute multiple contracts in a total amount not to exceed $1,300,000 for lidar data collection and quality control in Texas, using the Strategic Mapping Program and their associated contracts at the Texas Department of Information Resources.

  • This model is focused on area of watershed, 7000 square miles in north central and east Texas
    • Sabine, Red, Lake Texoma, upper trinity, and Little Basin watersheds
    • Counties involved: Smith, Archer, Jack, and Lampasas
  • Peyton – How many contractors do we use?
    • Staff – Depending on the size it could be multiple contractors
  • Peyton – Its typically done in the fall?
    • Staff – That’s when its preferred
  • Stepney – Move to authorize
    • Motion passes

 

Item 8:  Consider authorizing the Executive Administrator to execute contracts as approved and directed by the Federal Emergency Management Agency in a total amount not to exceed $65 million for subgrants from the Fiscal Year 2021 Flood Mitigation Assistance grant program upon notification of award.

  • The applications accepted by FEMA are the city of Athens, Conroe, and Houston; Orange and Montgomery County; Jefferson County number 6 and 7
  • Total project cost of $61.48 million
  • FEMA has rewarded 6 of the 9 applications within the past 45 days
  • Asking for $65 million instead of $61 million for flexibility
  • Stepney – Requesting $65 million instead of $61 million is to account for cost overruns?
    • Staff – Yes
  • Peyton – Any new requirements regarding federal funding?
    • Staff – No major overhauls to the grant program
  • Peyton – Move to authorize contracts
    • Motion passes

 

Item 9: Consider the appointment of eight members to the Water Conservation Advisory Council.

  • Troy Hill, Karen Goose, Donna Howe, Whitney Milberger, Stacey Pandy, Leslie Patterson, David Villarreal, Sam Hermit
  • Stephney – Move to approve these members
    • Motion passes

 

Item 10: Consider approving by resolution a request from the Chatt Water Supply Corporation (Hill County) for $3,000,000 in financing from the Texas Water Development Fund for planning, design, and construction of a water system improvements project.

  • Chatt Water Supply Corp provides water service to approximately 725 residents across a large rural service area in southern Hill county
  • They are unable to meet the minimum supply capacity requirement of 0.6 gallons per minute
  • Drilling new well, chlorine disinfecting system, new pump station and new 10,000 gallon tank
  • Stepney – Can you talk about the financial and rate increases?
    • Staff – $30 dollars in rate increase earlier this year and $6 dollar increase in the future
  • Peyton – Why defund?
    • Staff – It was a timing issue, there not enough dollars to go around and wanted to move forward
  • Peyton – Move to adopt the proposed resolution
    • Mation passes

 

Item 11: Consider amending by resolution, the previously adopted Texas Water Development Board Resolution No. 20-064, to transfer a $75,470,000 multi-year commitment for North Texas Municipal Water District’s Clean Water State Revolving Fund Rowlett Creek Regional Wastewater Treatment Plant Project No. 73881 to the North Texas Municipal Water District’s Clean Water State Revolving Fund Sister Grove Regional Water Resource Recovery Facility Project No. 73855.

  • Treats wastewater of 12 cities and 750,000 residents
  • TWDB has approved 407 million dollars for the project
  • The district needs additional funding to complete the project
  • The district is requesting to transfer their Rowlett Creek commitment to the Sister Grove Regional water Resource
  • Stepney – Can you explain the equivalency and non-equivalency piece?
    • Staff – The equivalency is the federal dollars pf the SRF program. You get a better subsidy rate for equivalency
  • Peyton – No change in loan backing?
    • Staff – Correct
  • Stepney – Move we adopt
    • Motion passes

 

Item 12: Consider approving by resolution a request from the City of Menard (Menard County) for $5,595,000 in financial assistance consisting of $1,920,000 in financing and $3,675,000 in principal forgiveness from the Drinking Water State Revolving Fund for planning, design, and construction of a water treatment and water system improvements project.

  • Provides water to a population of 1348
  • Groundwater supply is under the direct influence of surface water, the city was then required to meet surface water treatment standards for its water source
  • The city hasn’t completed necessary improvements
    • New filtration system and building, chemical feed system modifications, improvements to the well field
  • The city qualifies for principal forgiveness as a disadvantaged community
  • Qualifies for 0% financing
  • Paup – Never good to leave stranded projects
  • Peyton – Move to adopt the proposed project
    • Motion passes

 

Item 13: Consider approving by resolution a request from the City of La Porte (Harris County) to amend Texas Water Development Board Resolution No. 16-105 to authorize a $13,840,000 increase in financial assistance from the Clean Water State Revolving Fund for costs related to a wastewater systems improvement project.

  • The project will add 20,000 feet of gravity sewer, new manholes and replace 9 lift stations
  • Peyton – How much we have available in SRF cost overrun
    • Staff – In clean water $25 million not sure for drinking water
  • Stepney – Move to adopt proposed resolution
    • Motion passes

 

Item 14:

Consider approving by resolution a request from the Sunbelt Fresh Water Supply District (Harris County) to amend Texas Water Development Board Resolution No. 18-033 to authorize a $7,580,000 increase in financial assistance from the Clean Water State Revolving Fund for costs related to a wastewater treatment plant expansion project.

  • Funds needed for construction new water plant
  • The plant will be expanded to 700,000 gallons per day and includes a lift station, aeration basins, clarifiers, digesters, and plant site upgrades
  • Also will provide water to un served areas in the district area
  • Peyton – Move to adopt the proposed resolution
    • Motion passes

 

Item 15: Consider approving by resolution a request from the Crystal Clear Special Utility District (Guadalupe County) to amend Texas Water Development Board Resolution No. 17-036 to authorize a) $1,950,000 in financing from the Drinking Water State Revolving Fund for construction of a water system improvements; and b) a waiver from the requirement to include funds to mitigate water loss as a part of this project.

  • This is the final component of the districts project
  • The district is still working to find out its actual water loss
  • Stepney – Talk about the $18 dollar rate increase
    • Staff – This is a very conservative estimate for cities that are growing
  • Peyton – Can you talk about why the waiver is needed?
    • Staff – Initial request was to include meters to address water loss, but then real water loss was revealed
  • Peyton – So they are addressing water loss?
    • Staff – Yes
  • Stepney – Move to adopt the proposed resolution
    • Motion passes

 

Item 16: Consider approving by resolution a request from the Lake McQueeney Water Control and Improvement District No. 1 (Guadalupe County) for $18,000,000 in financing from the Clean Water State Revolving Fund for construction of a dam improvements project.

  • This request is for construction costs only
  • Stepney – Can you explain the financing to the WCID?
  • Staff – This commitment creates a direct commitment with us and the district so tax revenues are pledged directly to us, no going through GBRA
  • Stepney the debt is secured with tax revenue?
    • Staff – Correct
  • Peyton – Move to adopt the proposed resolution
    • Motion passes

 

Item 17: Consider approving by resolution a request from the Lake Placid Water Control and Improvement District No. 1 (Guadalupe County) for $12,000,000 in financing from the Clean Water State Revolving Fund for construction of a dam improvements project.

  • Request is for the Lake Placid construction work only
  • Stepney – This is the same relationship as the previous item
    • Staff – Yes
  • Stepney – Move to adopt the proposed resolution
    • Motion passes