The TWDB met on September 9th to discuss meeting agenda items. The meeting agenda 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.

Board Agenda #1: Consider appointing members to the Water Conservation Advisory Council

  • John Sutton, TWDB Conservation Manager – Council made up of 23 members representing 18 interest groups and 5 agencies; 12 nominations for the council

Motion passes

Board Agenda #2: Consider approving by resolution: (a) the issuance, sale and delivery of Texas Water Development Board State Revolving Fund Revenue Bonds, in one or more series; (b) a Preliminary Official Statement; and (c) 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 multiple series of such bonds

  • Georgia Sanchez, Director of Debt and Portfolio Management TWDB – Executive administrator recommends approval of documents in relation to bonds; bonds will be sold Oct. 13, delegative authority will expire in March of 2022

Motion passes

Board Agenda #3: Consider approving by resolution delegation to the Executive Administrator and the Development Fund Manager the authority to utilize prepayments and other lawfully available funds to pay, redeem, and defease General Obligation Bonds

  • Sanchez – Delegation creates more efficient process; authority would be granted through Sept. 2022; requires annual report to board

Motion passes

Board Agenda #4: Consider approving the Fiscal Year 2022 Underwriting Policies and Procedures for Negotiated Bond Transactions of the Texas Water Development Board

  • Sanchez – Best practice document to provide consistent evaluations for staff; each underwriting member required to sign and follow best practices; no proposed changes to 2021 document

Motion passes

Board Agenda #5: Consider approving the Fiscal Year 2022 Debt Management Policy of the Texas Water Development Board

  • Sanchez – No changes to 2021 document; anticipate next review this time next year

Motion passes

Board Agenda #6: Consider approving the Fiscal Year (FY) 2022 Texas Water Development Board Investment Policy and Strategies

  • April Weiss, TWDB Senior Accountant – Includes quarterly investment reports; investment analysts haven’t proposed any changes to the policy

Motion passes

Board Agenda #7: Consider authorizing the Executive Administrator to execute an amendment to the Shared Technology Services (STS) interagency contract with the Department of Information Resources to extend the contract end date to August 31, 2023, with a contract amount not to exceed $3,325,982 during the Fiscal Year (FY) 2022-23 biennium

  • Dustin Roberts, TCEQ – Reduces statewide cost for IT services; serves over 200 state agencies; amendment is to extend contract end date and identify max contract amount
  • Kathleen Jackson, TWDB member – Due to increase in storage growth and IT costs?
    • Yes

Motion passes

Board Agenda #8: Consider authorizing the Executive Administrator to execute an interagency contract with the Texas Tech University in an amount not to exceed $1,000,000 to support the Texas Produced Water Consortium

  • Matt Nelson, Water Supply and Infrastructure TWDB – Consortium explores uses of produced water, in accordance with Rider 23; will be member of Consortium advisory council; contract allows transfer of funds to TX Tech in support of Consortium

Motion passes

Board Agenda #9: Consider authorizing the Executive Administrator to negotiate and execute a contract in an amount not to exceed $1,916,519 (including $1,552,784 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 2022

  • Mark Wentzel, River Science Manager TWDB – Accurate water data crucial for TX to monitor water in TX; funds will maintain and operate stream, lake, and river gauges; funds will support 55 stream, 5 lake, and 45 river gauges that contribute to flood warning and forecasting capabilities

Motion passes

Board Agenda #10: Update on Water Conditions Report

  • Wentzel – Last two months of rain has been relatively even across state; above average precipitation this summer but rain slowed down end of August
  • 75% of state in drought in April; water reservoirs have benefitted from cooler, wetter summer
  • Reservoirs at 84% capacity, above normal for this time of year; aquifers trending down, not unusual for this time of year
  • 70% chance of return to Nina conditions this year, drier winter for TX

Board Agenda #11 & #12: Consider approving the State Fiscal Year 2022 Clean Water State Revolving Fund Intended Use Plan & State Fiscal Year 2022 Drinking Water State Revolving Fund Intended Use Plan

  • Todd Ensminger, Executive Administration staff – Plans consider how TWDB distributes funds to achieve goals; $150 million for drinking water, $250 million for clean water; new method for reducing interest rates; new principal forgiveness program regarding severe weather

Public Comment on IUPs

Elizabeth Arceneaux, Professional Engineer

  • Regarding Green Project Reserve project funding, nature based infrastructure projects don’t meet requirements for 30% threshold to be considered for funding
  • Didn’t see language about traditional green infrastructure projects in IUP, for next round of funding should try to include these projects in the funding
  • Any thoughts on asking legislature during next special session for money to address green infrastructure issues; could address runoff issues, drought issues, etc.
    • Brooke Paup – Regarding federal funds, to be decided

Board Agenda #13: Consider approving Internal Audit’s Fiscal Year 2022 Audit Plan

  • Nicole Campbell, TWDB Director of Internal Audits – Plan carried out with objectivity and independence; have the resources and personnel to carry out plan; plan includes review of compliance with public funds investment acts, cyber security practice phases; plan also funds carry-over audits, investigative audits, other administrative audit actions
  • Paup – Happy to see cyber security on the plan

Motion passes

Board Agenda #14: Consider approving a change to the compensation of the Executive Administrator

Motion passes