WEBVTT 00:00:09.010 --> 00:00:12.544 Good morning. This meeting of the Texas Water Development 00:00:12.569 --> 00:00:16.322 Board is hereby called to order. The time is 9:32 AM. For the 00:00:16.347 --> 00:00:20.051 record, my name is Peter Lake. With me today on the dais are 00:00:20.076 --> 00:00:23.695 Kathleen Jackson and Brooke Paup. Todd, first item, please. 00:00:23.720 --> 00:00:27.585 - Discussion regarding outreach efforts and activities by the board. 00:00:27.610 --> 00:00:30.930 - Director Jackson? - Thank you, Mr Chairman. Since 00:00:30.930 --> 00:00:34.310 our last meeting, I met with the Texas Rural 00:00:34.335 --> 00:00:37.690 Water Association folks. They do a great job 00:00:37.690 --> 00:00:40.002 in terms of reaching out to rural Texas and 00:00:40.027 --> 00:00:42.420 providing help and assistance. And spent some 00:00:42.420 --> 00:00:45.146 time with their Environmental Services Director, 00:00:45.171 --> 00:00:47.650 Jason Obelix. And while I was there, had the 00:00:47.650 --> 00:00:52.490 opportunity to visit with one of their board members, Mark Gardenhire, who was in 00:00:52.490 --> 00:00:55.413 from the Fort Griffith Special Utility District 00:00:55.438 --> 00:00:57.970 and, of course, their Executive Director, 00:00:57.970 --> 00:01:00.775 Laura Zant. So, great to have the opportunity 00:01:00.800 --> 00:01:03.519 to sit down and touch base and kind of catch 00:01:03.519 --> 00:01:06.064 up with all the great work that they're doing. 00:01:06.089 --> 00:01:08.880 I traveled to Wichita Falls. And it was an absolute 00:01:08.880 --> 00:01:15.050 honor to be able to present them with the EPA's Pisces Award. This is performance 00:01:15.050 --> 00:01:18.765 and innovation in the SRF, creating environmental 00:01:18.790 --> 00:01:22.480 success. Wichita Falls, of course was nominated 00:01:22.480 --> 00:01:26.549 by the Water Development Board and was one of 00:01:26.574 --> 00:01:30.530 only five communities or projects nationwide 00:01:30.530 --> 00:01:34.367 to receive this designation as an exceptional 00:01:34.392 --> 00:01:37.870 project. And, of course, it was for their 00:01:37.870 --> 00:01:43.090 their permanent potable reuse project. I personally think EPA kind of reached down 00:01:43.090 --> 00:01:46.463 and felt it was appropriate to recognize them 00:01:46.488 --> 00:01:49.910 because they, course with, Lake Arrowhead back 00:01:49.910 --> 00:01:54.950 in the drought of 2011, getting dangerously low, and the Eyes of Texas kind of 00:01:54.950 --> 00:01:57.113 upon Wichita Falls and concerned that they were 00:01:57.138 --> 00:01:59.140 going to want to run out of water. They took 00:01:59.140 --> 00:02:03.324 emergency measures and implemented a very comprehensive, 00:02:03.349 --> 00:02:06.480 science based approach to indirect potable 00:02:06.480 --> 00:02:08.941 reuse, really kind of demonstrating, maybe for 00:02:08.966 --> 00:02:11.140 the first time, that that could work on a 00:02:11.140 --> 00:02:17.349 large scale basis. And then, you know, I kind of had the one, two punch 00:02:17.349 --> 00:02:24.430 and move forward and have put in their direct and immediate, 00:02:24.430 --> 00:02:26.750 initially, and then their indirect potable reuse 00:02:26.775 --> 00:02:28.739 project over the long time, creating kind 00:02:28.739 --> 00:02:31.599 of like a permanent potable reuse system. So, 00:02:31.624 --> 00:02:34.459 also the leadership of Wichita Falls was at the 00:02:34.459 --> 00:02:39.270 City council meeting, so it was great for them to be able to see leadership in action 00:02:39.270 --> 00:02:42.812 through the City Council, and for them to recognize 00:02:42.837 --> 00:02:46.150 not only the members who were involved initially 00:02:46.150 --> 00:02:48.781 in the project, but also those who were kind 00:02:48.806 --> 00:02:51.529 of sitting and engaged, kind of moving forward 00:02:51.529 --> 00:02:57.159 and continuing to support it. Then I headed to East Texas and appreciate Kelly Holcomb, 00:02:57.159 --> 00:02:59.885 the head of the Region I Regional Water Planning 00:02:59.910 --> 00:03:02.500 Group, having me and seeing, you know, all the 00:03:02.500 --> 00:03:05.167 folks for Southeast Texas and, you know, touching 00:03:05.192 --> 00:03:07.620 base with them. They brought some new members 00:03:07.620 --> 00:03:09.835 onto the regional water planning process, so 00:03:09.860 --> 00:03:12.099 good to see the great work that they're doing 00:03:12.099 --> 00:03:14.962 there. And then continuing to meet with communities 00:03:14.987 --> 00:03:17.549 that are participating in our asset management 00:03:17.549 --> 00:03:20.194 program for small systems. I met with the 00:03:20.219 --> 00:03:23.090 City of Elkheart, and their contract engineer 00:03:23.090 --> 00:03:26.691 KSA, their Public Works Director, B J. 00:03:26.716 --> 00:03:30.939 Perry, the City Secretary Carla Sheraton, and 00:03:30.939 --> 00:03:33.467 the engineers Chris Auburn and Sid US. They're 00:03:33.492 --> 00:03:35.780 doing a great job, really kind of focusing 00:03:35.780 --> 00:03:39.685 in on the needs of a small community in rural 00:03:39.710 --> 00:03:43.420 Texas and, as you may recall, tornadoes had 00:03:43.420 --> 00:03:45.954 struck East Texas about that time, and there was 00:03:45.979 --> 00:03:48.230 a significant storm the night before, there 00:03:48.230 --> 00:03:51.026 were strong winds, and so the community had 00:03:51.051 --> 00:03:53.950 no power. So I guess that's kind of the first 00:03:53.950 --> 00:03:58.889 time ever we met by flashlight. They had their plans that they were working on kind 00:03:58.889 --> 00:04:04.169 of out on the table. And to me it's just a tribute to the commitment of the leadership 00:04:04.169 --> 00:04:06.670 of rural Texas is that, you know, on with the 00:04:06.695 --> 00:04:09.279 show and making sure that, you know, regardless 00:04:09.279 --> 00:04:11.523 of kind of what has happened there, they're 00:04:11.548 --> 00:04:13.870 continuing to kind of keep their eyes focused 00:04:13.870 --> 00:04:19.480 on moving forward in a positive direction. So a great, great opportunity to be out and 00:04:19.480 --> 00:04:23.403 about and see the great work that the Board is doing. And also small communities. 00:04:23.428 --> 00:04:29.336 - Absolutely. And the Pisces Award is tremendous. Director Paup? 00:04:29.361 --> 00:04:32.790 - Texans are resilient, aren't they? 00:04:32.790 --> 00:04:34.816 Amazing. Since the last board meeting, I attended 00:04:34.841 --> 00:04:36.680 the Law of the Rio Grande Conference with our 00:04:36.680 --> 00:04:39.390 colleague, Chairman John Niermann of TCEQ. I 00:04:39.415 --> 00:04:41.980 also had a fantastic meeting with the team 00:04:41.980 --> 00:04:47.066 at the Texas Safekeeping Trust Company over our SWIFT portfolio. 00:04:47.091 --> 00:04:50.160 - I also had some meetings at the comptroller's office and 00:04:50.185 --> 00:04:53.281 attended the Investment Advisory Board meeting. Also, I had 00:04:53.281 --> 00:04:55.515 a chance to sit down with Sarah Sleshsinger 00:04:55.540 --> 00:04:57.800 from Texas Water Foundation. And, of course, 00:04:57.800 --> 00:05:01.379 have been spending a lot of time on productive 00:05:01.404 --> 00:05:04.790 meetings with folks at the Capitol. No formal 00:05:04.815 --> 00:05:07.807 action required here. Next item, please. 00:05:07.832 --> 00:05:11.105 - Consider approving the issuance of State of Texas 00:05:11.130 --> 00:05:14.630 General Obligation Water Financial Assistance refunding 00:05:14.655 --> 00:05:18.355 bonds in multiple series. A preliminary official statement 00:05:18.381 --> 00:05:21.555 and authorization for the Executive Administrator, 00:05:21.580 --> 00:05:24.407 general counsel, chief financial officer and 00:05:24.432 --> 00:05:27.863 development fund manager to act on behalf of the Texas 00:05:27.887 --> 00:05:31.141 Water Development Board in the sale and delivery of 00:05:31.166 --> 00:05:34.396 the bonds. We have Georgia Sanchez here to present. 00:05:34.421 --> 00:05:37.076 - Good Morning, Chairman Lake, Director Jackson 00:05:37.101 --> 00:05:39.234 and Director Paup. For the record, I'm 00:05:39.259 --> 00:05:41.955 Georgia Sanchez of the Executive Administrator's 00:05:41.980 --> 00:05:45.331 staff. On March 28, Board Action authorized initiation of a 00:05:45.356 --> 00:05:48.682 general obligation water financial assistance refunding bond 00:05:48.681 --> 00:05:50.845 transaction and selection an underwriting 00:05:50.870 --> 00:05:53.370 syndicate, a financial advisor, the bond counsel 00:05:53.370 --> 00:05:58.060 and the disclosure counsel. With this item, the Executive Administrator's recommending 00:05:58.060 --> 00:06:00.536 the approval of the issuance of these bonds, the 00:06:00.561 --> 00:06:02.910 associated documents and delegation Authority. 00:06:02.910 --> 00:06:06.281 It's a proposed refunding of currently callable 00:06:06.306 --> 00:06:09.230 bonds across four programs: Defund, WIFT, 00:06:09.230 --> 00:06:14.470 EDAP, and state participation. We explored many options to mitigate pre payment risk, 00:06:14.470 --> 00:06:18.290 which is different for each of the refunded bonds. For these reasons, we're proposing 00:06:18.290 --> 00:06:20.600 fixed rate and variable rate bonds in the 00:06:20.625 --> 00:06:23.240 defund, WIFT, and state participation, and fixed 00:06:23.240 --> 00:06:28.100 rate only in EDAP. The recommended Not to Exceed amount is two hundred fifty million. 00:06:28.100 --> 00:06:30.806 The cumulativel net present value of savings anticipated 00:06:30.831 --> 00:06:32.990 should exceed twenty million dollars in eight 00:06:32.990 --> 00:06:35.962 point four percent. Each of the bond resolutions 00:06:35.987 --> 00:06:38.630 outlined the parameters we are requesting to 00:06:38.630 --> 00:06:40.981 be granted. And as with all issuances, we'll 00:06:41.006 --> 00:06:43.280 work to contain costs of issuance and other 00:06:43.280 --> 00:06:45.508 expenses and takedowns associated with the 00:06:45.533 --> 00:06:47.840 bond sale. If approved, we plan to price the 00:06:47.840 --> 00:06:53.616 bonds on May 14 and May 15 and anticipate closing on June 12. 00:06:53.641 --> 00:06:55.728 - Thank you. Questions, comments? 00:06:55.753 --> 00:06:59.457 - Great to see the savings. Again, you're saying over twenty 00:06:59.482 --> 00:07:03.100 million dollars in savings. So appreciate the work on this. 00:07:03.125 --> 00:07:07.342 - Georgia, I know a ton of analysis goes into all our refunding, 00:07:07.367 --> 00:07:11.300 so thank you for this work and for your team's work on this. 00:07:11.300 --> 00:07:15.691 - Tremendous work. Great savings and as always, 00:07:15.716 --> 00:07:19.990 and especially on the mix between variable and 00:07:19.990 --> 00:07:25.210 fixed interest rates to match up with the underlying customer needs, and mitigate 00:07:25.210 --> 00:07:29.731 prepayment risk. As always, focused on getting 00:07:29.756 --> 00:07:35.248 the highest utilization of taxpayer dollars. Is there a motion? 00:07:35.273 --> 00:07:40.032 - Chairman, I move we adopt the proposed resolution for the issuance, sale 00:07:40.057 --> 00:07:44.918 and delivery of State of Texas General Obligation Water Financial Assistance 00:07:44.943 --> 00:07:50.070 Refunding Bonds, Series 2019C, Series 2019D, State Participation Program, Series 00:07:50.095 --> 00:07:54.881 2019E, Water Infrastructure Fund, and Series 2019F, Economically Distressed 00:07:54.906 --> 00:07:59.665 Areas Program, a preliminary official statement, and authorization for the 00:07:59.690 --> 00:08:04.868 Executive Administrator, general counsel, chief financial officer and Development 00:08:04.893 --> 00:08:09.905 Fund Manager to act on behalf of the Texas Water Development Board in the sale 00:08:09.930 --> 00:08:14.624 and delivery of such bonds as recommended by our Executive Administrator. 00:08:14.648 --> 00:08:16.176 - Is there a second? All in favor, say aye. Motion passes. Next item, please. 00:08:20.830 --> 00:08:22.812 - Consider authorizing the Executive 00:08:22.837 --> 00:08:25.384 Administrator, Chief Financial Officer, General 00:08:25.409 --> 00:08:29.510 Counsel and Development Fund Manager to initiate the Texas Water Development 00:08:29.510 --> 00:08:32.921 Board State Water Implementation Revenue Fund 00:08:32.946 --> 00:08:36.480 for Texas bond sale and approving the selection 00:08:36.480 --> 00:08:39.545 of financial advisor, bond counsel and disclosure 00:08:39.570 --> 00:08:42.120 counsel. Georgia Sanchez is again here to present. 00:08:42.120 --> 00:08:44.949 - Good Morning, Georgia Sanchez. With this item, 00:08:44.974 --> 00:08:47.490 the Executive Administrator is recommending 00:08:47.490 --> 00:08:50.520 that the board authorize preliminary actions needed 00:08:50.545 --> 00:08:53.200 for the fall SWERFT bond sale. Additionally, 00:08:53.200 --> 00:08:55.015 approval this ought to name Hilltop as 00:08:55.040 --> 00:08:57.110 financial advisor, McCall Parkers and Horton 00:08:57.110 --> 00:08:59.464 as bond counsel, and Bracewell as disclosure 00:08:59.489 --> 00:09:02.131 counsel. If approved, the Executive Administrator 00:09:02.131 --> 00:09:04.418 will return to the board in June to name an 00:09:04.443 --> 00:09:06.860 underwriting syndicate, and in July for formal 00:09:06.860 --> 00:09:08.986 approval of the sale and the associated 00:09:09.011 --> 00:09:11.591 documents, including the bond resolutions, fund 00:09:11.591 --> 00:09:14.120 transfer agreement and approval of the preliminary 00:09:14.145 --> 00:09:16.450 official statement for any series to be issued 00:09:16.450 --> 00:09:18.115 under this authorization. 00:09:18.140 --> 00:09:20.263 - Thank you. Questions, comments? 00:09:20.287 --> 00:09:22.510 - It's good to see early planning and 00:09:22.510 --> 00:09:25.911 preparation that are so necessary to ensure 00:09:25.936 --> 00:09:29.390 US successful SWIFT bond sale. So thank you. 00:09:29.390 --> 00:09:31.205 - Is there a motion? 00:09:31.230 --> 00:09:36.650 - Mr. Chairman, I move we authorize the Executive Administrator, Chief Financial 00:09:36.650 --> 00:09:39.219 Officer, General Counsel and Development Fund 00:09:39.244 --> 00:09:41.900 Manager to initiate the Texas Water Development 00:09:41.900 --> 00:09:44.962 Board State Water Implementation Revenue Fund 00:09:44.987 --> 00:09:47.890 for Texas SWIRFT Bond sale in approving the 00:09:47.890 --> 00:09:50.412 selection of Financial Advisor, Bond Counsel 00:09:50.437 --> 00:09:54.620 and Disclosure Council, as recommended by our Executive Administrator. 00:09:54.645 --> 00:10:00.595 - Is there a second? All in favor, say aye. Motion passes. Next item, please. Thank you, Georgia. 00:10:00.620 --> 00:10:04.590 - Consider approving the 2019 State Water Implementation 00:10:04.590 --> 00:10:10.010 Fund for Texas prioritization lists, the amount of funds available by category, and 00:10:10.010 --> 00:10:14.343 the terms of subsidy. We have Kimberly Rhodes here to present. 00:10:14.368 --> 00:10:17.628 - Good Morning, Chairman Lake, Director Jackson, Director Paup. 00:10:17.653 --> 00:10:21.040 For the record, my name is Kimberly Rhodes. I'm the State Programs 00:10:21.040 --> 00:10:23.514 Coordinator in Program Administration and 00:10:23.539 --> 00:10:26.460 Reporting on the Executive Administrator's staff. 00:10:26.460 --> 00:10:31.900 The State Water Implementation Fund for Texas, known a SWIFT, was created in 2013 00:10:31.900 --> 00:10:34.976 by the Texas Legislature. SWIFT provides financial 00:10:35.001 --> 00:10:37.750 assistance to communities to develop adequate 00:10:37.750 --> 00:10:40.761 water supply, excuse me, water supplies during 00:10:40.786 --> 00:10:43.580 times of drought. SWIFT supports funding of 00:10:43.580 --> 00:10:46.307 water supply projects in the State Water Plan. 00:10:46.332 --> 00:10:48.860 To date, the board has committed over eight 00:10:48.860 --> 00:10:51.516 billion dollars in SWIFT funding for fifty 00:10:51.541 --> 00:10:54.420 four recommended projects estimated to produce 00:10:54.420 --> 00:10:59.360 approximately one point five million acre feet of water supply. Program participants 00:10:59.360 --> 00:11:02.288 are estimated to save over eight hundred forty five 00:11:02.313 --> 00:11:05.340 million dollars compared to market interest 00:11:05.340 --> 00:11:11.270 rate financing. The 2019 SWIFT funding cycle was opened in December. Three 00:11:11.270 --> 00:11:16.041 abridged applications requesting a total of 00:11:16.066 --> 00:11:18.457 two hundred and ninety million five hundred thousand dollars were 00:11:18.482 --> 00:11:20.920 received by the February 1 due date. All three participants are 00:11:20.920 --> 00:11:25.430 requesting multiyear commitments, and all three projects are considered eligible and 00:11:25.430 --> 00:11:28.245 have been prioritized for board consideration. 00:11:28.270 --> 00:11:30.880 The Executive Administrator is recommending 00:11:30.880 --> 00:11:33.370 no changes to the program structure in terms 00:11:33.395 --> 00:11:35.750 of funding from the previous cycle for low 00:11:35.750 --> 00:11:38.995 interest obligations, rural and agricultural, 00:11:39.020 --> 00:11:42.310 deferred obligations, and board participation. 00:11:42.310 --> 00:11:45.491 However, for multiyear commitments, the Executive 00:11:45.516 --> 00:11:48.290 Administrator is making one recommendation: 00:11:48.290 --> 00:11:53.530 to limit the proposed multi year commitment schedules to five years. If authorized by 00:11:53.530 --> 00:11:58.580 the board, the entities will be invited to submit complete applications by May 23 00:11:58.580 --> 00:12:03.670 and the board will consider approval of the complete applications this summer. 00:12:03.670 --> 00:12:06.679 The Executive Administrator recommends approval of 00:12:06.704 --> 00:12:09.570 the following four items. One, the prioritization 00:12:09.570 --> 00:12:14.170 of the 2019 SWIFT program abridged applications as set forth in attachment 00:12:14.170 --> 00:12:17.238 number one. Two, authorization of approximately 00:12:17.263 --> 00:12:20.370 two hundred ninety million five hundred thousand 00:12:20.370 --> 00:12:23.475 dollars in funding for the 2019 SWIFT 00:12:23.500 --> 00:12:26.200 prioritization cycle, and funding 00:12:26.200 --> 00:12:29.094 by category as set forth in Attachment Number 00:12:29.119 --> 00:12:32.050 One. Three, authorization of program structure 00:12:32.050 --> 00:12:37.870 in terms of funding. Four, accommodation of requested shifts in closing amounts under 00:12:37.870 --> 00:12:40.453 existing multiyear commitments for net decrease 00:12:40.478 --> 00:12:43.089 of two million, one hundred and fifteen thousand 00:12:43.089 --> 00:12:46.017 dollars in Calendar Year 2019, each of which 00:12:46.042 --> 00:12:48.490 is to be approved by board resolution 00:12:48.490 --> 00:12:50.923 at a later day. That concludes my presentation. 00:12:50.948 --> 00:12:53.200 I'd e happy to answer any questions you may have. 00:12:53.200 --> 00:12:56.404 - Thank you. Questions, comments? Director Jackson? 00:12:56.429 --> 00:13:00.180 - Well, I think, as you mentioned, over eight billion dollars 00:13:00.205 --> 00:13:03.810 in SWIFT program funding today with, you know, the deliverable 00:13:03.810 --> 00:13:05.885 of one point five million acre feet of water. 00:13:05.910 --> 00:13:07.690 And I think you know, one of the things 00:13:07.690 --> 00:13:09.718 that we've asked ourselves is as we move through 00:13:09.743 --> 00:13:11.580 the program, you know, how do we measure our 00:13:11.580 --> 00:13:15.970 success? And certainly, I think part of the intent of the Legislature in putting the 00:13:15.970 --> 00:13:19.400 SWIFT in place was to move our large water 00:13:19.425 --> 00:13:22.990 supply projects forward and some that maybe, 00:13:22.990 --> 00:13:26.589 no pun intended, had been kind of treading water to see them kind of take the bull by 00:13:26.589 --> 00:13:28.983 the horns and move forward. And we certainly 00:13:29.008 --> 00:13:31.431 are seeing that. So, you know, the commitment 00:13:31.431 --> 00:13:35.600 in the dollars also kind of trains into two projects moving forward and water for 00:13:35.600 --> 00:13:41.330 Texans and being prepared for the future. In addition, I think you mentioned that you 00:13:41.330 --> 00:13:43.490 know this active management where we go through 00:13:43.515 --> 00:13:45.560 and we look at the capacity to make sure that 00:13:45.560 --> 00:13:48.469 we are, you know, protecting the corpus, continuing 00:13:48.494 --> 00:13:50.930 to have, you know, the ability to do twenty 00:13:50.930 --> 00:13:56.340 seven billion dollars worth of projects in fifty years has, you know, resulted in, you 00:13:56.340 --> 00:13:59.539 know, the recommendations of basically keeping 00:13:59.564 --> 00:14:02.601 the program structure the same, save the, you 00:14:02.601 --> 00:14:08.290 know, the five year, only five year of commitments moving forward. But one of 00:14:08.290 --> 00:14:10.820 the things I did wanted to highlight is that 00:14:10.845 --> 00:14:13.350 we're continued to offer to rule communities 00:14:13.350 --> 00:14:16.780 the maximum that's allowed by statute of the up 00:14:16.805 --> 00:14:20.210 to fifty percent of the subsidies, so continuing 00:14:20.209 --> 00:14:24.600 to want to promote and get, you know, rural communities to participate in the program 00:14:24.600 --> 00:14:30.650 as well as water conservation projects. So, you know, a great effort by the staff. 00:14:30.650 --> 00:14:34.830 Wonderful to see the SWIFT program moving forward. And I think you know, my my take 00:14:34.830 --> 00:14:37.515 on it is that, one of the things we hoped for 00:14:37.540 --> 00:14:40.259 was that, you know, the SWIFT would, you know, 00:14:40.259 --> 00:14:42.528 also encourage, you know, communities to look 00:14:42.553 --> 00:14:44.550 at our other funding programs. And we've 00:14:44.550 --> 00:14:49.770 certainly seen that in the revolving from programs that, you know, not only are 00:14:49.770 --> 00:14:54.640 the SWIFT projects moving forward, but also kind of this uptick in the state revolving 00:14:54.640 --> 00:14:57.417 funds. So communities moving forward and building 00:14:57.442 --> 00:14:59.860 out water supply projects. So thank you for 00:14:59.860 --> 00:15:05.029 this for the work on this program and just a great success, I think, for the state. 00:15:05.029 --> 00:15:09.128 - Well, that's well said, as usual, Director 00:15:09.153 --> 00:15:13.410 Jackson. Got three great applications. I think 00:15:13.410 --> 00:15:16.331 this program is doing exactly what the Legislature 00:15:16.356 --> 00:15:18.851 and the voters intended it to do: refunding 00:15:18.851 --> 00:15:22.418 responsible sustainable water supply projects 00:15:22.443 --> 00:15:25.830 to help sustain the growth that Texas is 00:15:25.830 --> 00:15:29.311 impacted by. So thank you. Thank you for your work on this. 00:15:29.336 --> 00:15:31.399 - Well, as always, we will continue 00:15:31.399 --> 00:15:34.179 to actively manage the program. It's subject 00:15:34.204 --> 00:15:37.020 to macroeconomic conditions, interest rates, 00:15:37.020 --> 00:15:40.155 performance of the SWIFT fund, in great shape 00:15:40.180 --> 00:15:43.290 right now but we'll always continue to manage 00:15:43.290 --> 00:15:46.311 for the long term and the financial integrity 00:15:46.336 --> 00:15:48.610 of the program. Is there a motion? 00:15:48.610 --> 00:15:53.519 Chairman, I move we approve the 2019 State Water Implementation Fund for Texas 00:15:53.519 --> 00:15:56.364 Prioritization List, the amount of funds available 00:15:56.389 --> 00:15:59.320 by category, and the terms of subsidy as recommended 00:15:59.320 --> 00:16:01.095 by our Executive Administrator? 00:16:01.120 --> 00:16:03.883 - Is there a second? - I second. - All those in favor say aye. 00:16:03.908 --> 00:16:06.420 Motion passes. Thank you. Next item, please. 00:16:06.420 --> 00:16:08.400 - Consider approving a request 00:16:08.425 --> 00:16:11.370 from the city of Houston for financing from 00:16:11.370 --> 00:16:13.802 the Clean Water State Revolving Fund for 00:16:13.827 --> 00:16:16.450 construction of a citywide wastewater collection 00:16:16.450 --> 00:16:20.711 system rehabilitation project. Jessica Taylor is here to present. 00:16:20.736 --> 00:16:24.100 - Good Morning, Chairman Lake, Director Jackson, Director Paup. 00:16:24.125 --> 00:16:27.201 For the record, my name is Jessica Taylor of the Executive 00:16:27.201 --> 00:16:30.196 Administrator's staff. The city of Houston is 00:16:30.221 --> 00:16:33.190 in Southeast Texas, near the Gulf Coast. It's 00:16:33.190 --> 00:16:35.719 the fourth most populous city in the nation 00:16:35.744 --> 00:16:38.190 and the city provides water and wastewater 00:16:38.190 --> 00:16:41.380 services to approximately two point two million 00:16:41.405 --> 00:16:44.570 people. The city was previously under an agreed 00:16:44.570 --> 00:16:47.494 order from the Texas Commission on Environmental 00:16:47.519 --> 00:16:50.120 Quality to address sanitary sewer overflows 00:16:50.120 --> 00:16:53.135 within its waste water collection system. 00:16:53.160 --> 00:16:56.149 As part of the agreement, the city had to 00:16:56.149 --> 00:16:58.498 rehabilitate at least six hundred thousand 00:16:58.523 --> 00:17:01.120 linear feet of sanitary sewer collection system 00:17:01.120 --> 00:17:04.294 per year. Although the agreed order has ended, 00:17:04.319 --> 00:17:07.130 the city will continue to rehabilitate its 00:17:07.130 --> 00:17:10.207 sanitary sewer collection system at the same 00:17:10.232 --> 00:17:13.490 rate as the agreed order. The city is proposing 00:17:13.490 --> 00:17:18.829 to use forty six million one hundred and eighty five thousand dollars in financing from the 00:17:18.829 --> 00:17:21.955 Clean Water State Revolving Fund to rehabilitate 00:17:21.980 --> 00:17:24.380 existing waste water collection lines 00:17:24.380 --> 00:17:26.931 citywide by slip lining, pipe bursting and 00:17:26.956 --> 00:17:29.600 cured in place pipe methods as well sanitary 00:17:29.600 --> 00:17:32.401 sewer cleaning and a television inspection. 00:17:32.426 --> 00:17:35.520 The project will reduce sanitary sewer overflows 00:17:35.520 --> 00:17:38.108 in the city's collection system and optimize 00:17:38.133 --> 00:17:40.580 its performance through the rehabilitation 00:17:40.580 --> 00:17:43.422 of sewer lines, which contribute to significant 00:17:43.447 --> 00:17:46.559 inflow and infiltration. The Executive Administrator 00:17:46.559 --> 00:17:48.489 recommends approval of this request, and this 00:17:48.514 --> 00:17:51.740 concludes my presentation. I'm happy to answer any questions. 00:17:51.765 --> 00:17:53.291 - Thank you. Questions, comments? 00:17:53.316 --> 00:17:55.580 - Well, I so appreciate you pointing out that 00:17:55.580 --> 00:17:57.863 even though they're not under the agreed order, 00:17:57.888 --> 00:17:59.860 they're continuing on with their previous 00:17:59.860 --> 00:18:04.297 efforts of replacing their aging infrastructure 00:18:04.322 --> 00:18:08.179 and really kind of addressing this inflow 00:18:08.179 --> 00:18:10.639 and infiltration, which, as we know, you know, 00:18:10.664 --> 00:18:12.890 that's less water that the treatment plant 00:18:12.890 --> 00:18:15.925 has to deal with. And so, you know, theoretically, 00:18:15.950 --> 00:18:19.020 less capacity that's needed. So a great investment, 00:18:19.020 --> 00:18:22.400 I think, by the city of Houston. And you know, 00:18:22.425 --> 00:18:25.420 they've been a huge supporter, I think of 00:18:25.420 --> 00:18:28.302 the board. It's always good to have, ah, large 00:18:28.327 --> 00:18:31.001 city that's got, you know, good ratings and 00:18:31.001 --> 00:18:33.940 in the program that helps everybody. And it's 00:18:33.965 --> 00:18:37.070 also, I think, a tribute to Houston that they're 00:18:37.070 --> 00:18:39.200 moving forward and again, addressing their 00:18:39.225 --> 00:18:41.429 infrastructure needs and using the resources 00:18:41.429 --> 00:18:43.575 of the board, and I know get the interest 00:18:43.600 --> 00:18:45.720 rate at whatever it is whenever they that 00:18:45.720 --> 00:18:48.893 close on the loan. But I think your estimate right 00:18:48.918 --> 00:18:51.630 here is you know a little over one percent. 00:18:51.630 --> 00:18:54.481 And I mean, that's a great interest rate in great 00:18:54.506 --> 00:18:56.990 savings for you know that this the citizens 00:18:56.990 --> 00:18:59.925 of Texas. So thank you so much for working on this. 00:18:59.950 --> 00:19:02.240 - Director Paup? -The city of Houston's 00:19:02.240 --> 00:19:04.381 a great customer of the board, and we're 00:19:04.406 --> 00:19:06.730 happy to help them proactively look at their 00:19:06.730 --> 00:19:10.483 waste water system. So, happy to have them back. 00:19:10.508 --> 00:19:13.700 - Houston's a great partner. Is the a motion? 00:19:13.700 --> 00:19:15.520 - Mr. Chairman, I move, we adopt the proposed 00:19:15.545 --> 00:19:17.340 resolution providing the city of Houston with 00:19:17.340 --> 00:19:19.910 financing from the Clean Water State Revolving 00:19:19.935 --> 00:19:22.480 fund for construction of a citywide wastewater 00:19:22.480 --> 00:19:25.509 collection system rehabilitation project, as 00:19:25.534 --> 00:19:28.470 recommended by our Executive Administrator. 00:19:28.470 --> 00:19:30.397 - Is there a second? - I second. 00:19:30.422 --> 00:19:34.223 - All in favor, say aye. Motion passes. Thank you. Next item, please. 00:19:34.248 --> 00:19:37.933 - Consider approving a request from the city of Terrelll to 00:19:37.958 --> 00:19:41.680 amend Texas Water Development Board Resolution Number 18-125 00:19:41.680 --> 00:19:44.610 as amended to change the Drinking Water 00:19:44.635 --> 00:19:47.320 State Revolving Fund commitment from 00:19:47.320 --> 00:19:50.278 tax exempt to taxable. Luis Farias is here to present. 00:19:50.303 --> 00:19:53.053 - Good morning, Chairman Lake, Director Jackson, Director Bruin. 00:19:53.078 --> 00:19:56.100 For the record, I am least Luis Farias of the Executive Administrator's 00:19:56.100 --> 00:20:01.640 staff. The city of Terrelll is requesting that their Drinking Water State Revolving 00:20:01.640 --> 00:20:03.878 fund commitment be changed from tax exempt 00:20:03.903 --> 00:20:06.220 to taxable funding for the issue of its bond 00:20:06.220 --> 00:20:11.460 for the proposed project. On October of 2018, the board approved a commitment 00:20:11.460 --> 00:20:14.750 through the Drinking Water State Revolving commitment in the amount of seven 00:20:14.750 --> 00:20:18.700 million three hundred eighty five thousand dollars to the city for the acquisition, 00:20:18.700 --> 00:20:21.578 design and construction of water system improvements, 00:20:21.603 --> 00:20:24.510 which will allow the city replace aging infrastructure 00:20:24.510 --> 00:20:27.132 as well as provide sufficient water capacity to 00:20:27.157 --> 00:20:29.590 its customers. The city's original financial 00:20:29.590 --> 00:20:32.150 application requested tax exempt funding for 00:20:32.175 --> 00:20:34.710 the project. But during the closing process, 00:20:34.710 --> 00:20:37.400 the city realised that the revenues, in aggregate, 00:20:37.425 --> 00:20:39.720 generated from the sell of water to several 00:20:39.720 --> 00:20:43.008 water supply corporations exceeded the ten 00:20:43.033 --> 00:20:46.220 percent of its total revenues. Because the 00:20:46.220 --> 00:20:48.486 proceeds were used to make improvements to 00:20:48.511 --> 00:20:50.700 these entities, federal law requires that 00:20:50.700 --> 00:20:52.965 the financing for these improvements be made 00:20:52.990 --> 00:20:55.180 on a taxable basis. Therefore, the city has 00:20:55.180 --> 00:20:58.056 requested the funding be changed to taxable. 00:20:58.081 --> 00:21:00.740 The Executive Administrator recommends to 00:21:00.740 --> 00:21:06.410 change the Drinking Water commitment from tax exempt to taxable. This concludes 00:21:06.410 --> 00:21:09.999 my presentation, I'd be happy to answer any questions. 00:21:10.024 --> 00:21:14.410 - Thank you, Director Jackson? Director Brooke Paup? Is there a motion? 00:21:14.435 --> 00:21:19.330 - Chairman, I move we adopt the proposed resolution for 00:21:19.330 --> 00:21:24.020 the city of Terrelll to amend Texas Water Development Board Resolution Number 18-125 00:21:24.020 --> 00:21:29.710 as amended by Resolution 19-029 to change the 00:21:29.710 --> 00:21:32.548 State Revolving Fund commitment from tax exempt 00:21:32.573 --> 00:21:35.090 to taxable as recommended by our Executive Administrator? 00:21:35.090 --> 00:21:36.830 - Is there a second? 00:21:36.855 --> 00:21:38.154 - I second. 00:21:38.179 --> 00:21:42.050 - All in favor say aye. Motion passes. Thank you, Luis. Next item, please. 00:21:42.050 --> 00:21:45.248 - Briefing and discussion on water conditions in the 00:21:45.273 --> 00:21:48.688 State of Texas. We have Dr Mark Wentzel here to present. 00:21:48.713 --> 00:21:51.451 - Good Morning, Chairman Lake, Director 00:21:51.475 --> 00:21:54.530 Jackson, Director Paup. For the record, Mark 00:21:54.530 --> 00:21:57.100 Wentzel presenting on behalf of the Executive 00:21:57.125 --> 00:21:59.670 Administrator. And this is your monthly water 00:21:59.670 --> 00:22:01.912 conditions report. You're receiving these 00:22:01.937 --> 00:22:04.260 reports electronically every month and then 00:22:04.260 --> 00:22:06.973 every third month, such as this month, you're 00:22:06.998 --> 00:22:09.450 receiving them in person. At the start of 00:22:09.450 --> 00:22:11.916 my presentation. I want to show you these 00:22:11.941 --> 00:22:14.440 two photos from the USGS stream flow gauge 00:22:14.440 --> 00:22:17.160 on the Neches River near Alto. The photo on the 00:22:17.185 --> 00:22:19.880 left is shortly after the gauge was installed 00:22:19.880 --> 00:22:24.910 in July 2016. It's one of our network of new flood warning gauges around the state 00:22:24.910 --> 00:22:28.085 that the USGS is installed for us. As director 00:22:28.110 --> 00:22:30.990 Jackson mentioned, they had some tornadoes 00:22:30.990 --> 00:22:33.768 in the area earlier this month. One of those 00:22:33.793 --> 00:22:36.360 tornadoes passed almost directly over the 00:22:36.360 --> 00:22:39.571 gauge at that time. That was April 13. 00:22:39.596 --> 00:22:43.030 So the photo on the right is from the day 00:22:43.030 --> 00:22:46.042 after the tornado. A USGS staffer driving by 00:22:46.067 --> 00:22:48.920 took this photo on Sunday. On Monday, they 00:22:48.920 --> 00:22:54.510 were back out to the site, getting it ready and up to speed again. The gauge sustained 00:22:54.510 --> 00:22:57.988 damage to the solar panel and the communications 00:22:58.013 --> 00:23:00.970 antenna. It continued to collect data but 00:23:00.970 --> 00:23:06.940 not transmit it. On Sunday, the USGS had this gauge fully repaired and all the 00:23:06.940 --> 00:23:09.292 data online in less than forty eight hours 00:23:09.317 --> 00:23:11.809 after the tornado went through. And it's that 00:23:11.809 --> 00:23:15.790 kind of dedication that makes it possible to bring you timely information about water 00:23:15.790 --> 00:23:20.350 conditions in Texas. Just wanted to give them a shout out there. 00:23:20.375 --> 00:23:21.197 - Absolutely. 00:23:21.222 --> 00:23:24.036 This is the most recent US drought monitor 00:23:24.061 --> 00:23:26.850 map for conditions as of April 16. A month 00:23:26.850 --> 00:23:29.780 ago, we had about ten percent of the state 00:23:29.805 --> 00:23:32.710 in moderate or worse drought. Most of that 00:23:32.710 --> 00:23:35.310 was in the south and south central portion 00:23:35.335 --> 00:23:38.030 of the state. About one percent of state was 00:23:38.030 --> 00:23:41.829 in severe drought, the next most severe category 00:23:41.854 --> 00:23:45.240 of drought. Things got a little worse early 00:23:45.240 --> 00:23:47.551 in April before they got better. But at the 00:23:47.576 --> 00:23:50.020 present time, we're down to about five percent 00:23:50.020 --> 00:23:53.710 of the state in moderate drought, and we have 00:23:53.735 --> 00:23:57.080 no more severe drought left in this state. 00:23:57.080 --> 00:24:00.090 Quite a bit better than we were a year ago. 00:24:00.115 --> 00:24:03.100 A year ago, we had about half the state and 00:24:03.100 --> 00:24:05.435 drought. That drought was focused more in the 00:24:05.460 --> 00:24:07.820 West and the Panhandle, where in the Panhandle 00:24:07.820 --> 00:24:12.671 we had even some areas of exceptional drought. 00:24:12.696 --> 00:24:17.110 The most severe category. This chart shows 00:24:17.110 --> 00:24:19.637 the overall status of our water supply reservoirs 00:24:19.662 --> 00:24:21.860 across the state. The dark green line shows 00:24:21.860 --> 00:24:27.790 storage this year and how it compares with minimum, median, and maximum values for the 00:24:27.790 --> 00:24:34.280 day of the year, going back to data in 1990. Also displayed on this chart is how 00:24:34.280 --> 00:24:41.160 we did in 2018 and 2017 in the lighter green lines. Since 00:24:41.160 --> 00:24:43.889 the first of the year, we've been right about 00:24:43.914 --> 00:24:46.500 ninety percent of capacity statewide. Early 00:24:46.500 --> 00:24:49.131 in April, we dip down about eighty eight percent 00:24:49.156 --> 00:24:51.440 and then we've rebounded about eighty nine 00:24:51.440 --> 00:24:53.990 percent, so we're doing quite well statewide. 00:24:54.015 --> 00:24:56.539 We're more than five percentage points higher 00:24:56.539 --> 00:25:01.280 than what's considered normal for this time of year. For that data going back to 1990 00:25:01.280 --> 00:25:06.450 this is the fifth best April 22 that we've had in that thirty-year 00:25:06.450 --> 00:25:10.750 time period. So we're on the high end of things statewide. So that's 00:25:10.750 --> 00:25:13.463 quite good. Of course, things vary across the 00:25:13.488 --> 00:25:16.000 state quite a bit. So on this slide, we're 00:25:16.000 --> 00:25:20.088 looking at twenty individual municipal supply 00:25:20.113 --> 00:25:23.910 systems around the state. The number right 00:25:23.910 --> 00:25:26.508 next to the city shows the percent of capacity 00:25:26.533 --> 00:25:29.050 of their surface water system as of April 22. 00:25:29.050 --> 00:25:34.460 The second number is that in parentheses is the change from the previous 00:25:34.460 --> 00:25:39.510 month. Not a lot of change on this map from the previous month. We were in pretty good 00:25:39.510 --> 00:25:42.228 shape a month ago. We're still in pretty good 00:25:42.253 --> 00:25:44.710 shape in most areas. There are a few exceptions 00:25:44.710 --> 00:25:47.630 on changes here. Lubbock is up about one and 00:25:47.655 --> 00:25:50.550 a half percentage points as their reservoirs 00:25:50.550 --> 00:25:53.606 are rebounding a bit from the dry weather 00:25:53.631 --> 00:25:56.880 earlier in the year. Laredo and Brownsville, 00:25:56.880 --> 00:25:59.956 down in South Texas, are both down more than three 00:25:59.981 --> 00:26:02.670 percentage points. They're having continuing 00:26:02.670 --> 00:26:05.501 dry areas, dry conditions in the area. And 00:26:05.526 --> 00:26:08.530 also it's the start of the irrigation season. 00:26:08.530 --> 00:26:11.328 As we start to tap into those resevoirs quite 00:26:11.353 --> 00:26:13.700 a bit more. They're still about normal 00:26:13.700 --> 00:26:16.818 for this time a year, though. Those levels 00:26:16.843 --> 00:26:20.080 there. El Paso saw a more than three percent 00:26:20.080 --> 00:26:23.789 point increase. That's great news to see out 00:26:23.814 --> 00:26:27.580 there. Since August last year, Elephant Butte 00:26:27.580 --> 00:26:33.720 Reservoir, which supplies El Paso, has been running at thirty year lows for the time of 00:26:33.720 --> 00:26:36.730 year. For over half a year now. They've broken 00:26:36.755 --> 00:26:39.740 out of that with these recent gains, no longer 00:26:39.740 --> 00:26:44.060 thirty year low. So that's good to see. El Paso is the only system of these twenty 00:26:44.060 --> 00:26:47.660 that is significantly below normal for this time of year. 00:26:47.685 --> 00:26:50.168 - What's the snowpack expectation for the Rockies? 00:26:50.193 --> 00:26:53.429 - Right now, it's really good. It's going to be one of their better snowpack 00:26:53.429 --> 00:26:56.317 years for about eight to ten years. Course 00:26:56.342 --> 00:26:59.340 they always say, don't count your snow until 00:26:59.340 --> 00:27:02.023 it melts and comes down the river to you. 00:27:02.048 --> 00:27:04.770 But it's looking good right now. So can we 00:27:04.770 --> 00:27:07.524 expect the good news to keep coming for Texas? 00:27:07.549 --> 00:27:10.160 Here's the National Weather Service's latest 00:27:10.160 --> 00:27:13.317 seasonal drought outlook for conditions through 00:27:13.342 --> 00:27:16.080 the image of July, and things do continue 00:27:16.080 --> 00:27:18.537 to look good for Texas. The National Weather 00:27:18.562 --> 00:27:20.830 Service is expecting that drought will be 00:27:20.830 --> 00:27:24.635 completely removed from our state by the end 00:27:24.660 --> 00:27:28.270 of July. And in addition, the areas of the 00:27:28.270 --> 00:27:30.862 Upper Rio Grande and Colorado and New Mexico 00:27:30.887 --> 00:27:33.570 are also expected to see an easing of drought, 00:27:33.570 --> 00:27:35.635 not complete drought elimination. But some 00:27:35.660 --> 00:27:37.940 easing of drought. And that type of improvement 00:27:37.940 --> 00:27:40.402 should be good for our friends in El Paso as 00:27:40.427 --> 00:27:42.700 well. They won't be out of the woods, but 00:27:42.700 --> 00:27:44.993 good news is always better than bad. That 00:27:45.018 --> 00:27:47.340 concludes my presentation. I'd be happy to 00:27:47.340 --> 00:27:51.759 answer any questions you might have. 00:27:51.784 --> 00:27:54.759 - Questions, comments? Thank you very 00:27:54.785 --> 00:27:57.970 much, Doctor Wentzel. Next item, please. 00:27:57.970 --> 00:28:02.929 - The Board will receive comments from the public. Mr Chairman, at 00:28:02.929 --> 00:28:05.172 this time, I have no cards from members of the 00:28:05.197 --> 00:28:07.320 public that would like to address the board. 00:28:07.320 --> 00:28:09.340 - If a member of the public would like to 00:28:09.365 --> 00:28:11.360 address the board, now would be the time. 00:28:11.360 --> 00:28:14.751 If not, the board will meet in closed session today, 00:28:14.776 --> 00:28:17.695 pursuant to the provision of Sections 551.071 00:28:17.720 --> 00:28:20.843 and 551.074 the Texas Open Meetings Act, Chapter 00:28:20.868 --> 00:28:24.030 551 of the Texas Government Code. This meeting of 00:28:24.030 --> 00:28:31.939 Texas Water Development Board is hereby recessed. The time is 10 AM. 00:28:38.250 --> 00:28:43.108 Alright. My name is Todd Chenowith. I'm General 00:28:43.133 --> 00:28:47.763 Counsel of the Texas Water Development Board. 00:28:47.788 --> 00:28:52.734 The Texas Water Development Board is now back in 00:28:52.760 --> 00:28:57.479 session. That time is 10:28. 11:28. Thank you. 00:28:57.504 --> 00:29:02.260 The board took no action in Executive Session. 00:29:02.285 --> 00:29:06.713 There is no further business to come before 00:29:06.739 --> 00:29:11.495 the Water Development Board today. The meeting 00:29:11.520 --> 00:29:15.971 is hereby adjourned. The time is now 11:30.