WEBVTT

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Good morning. This meeting of
the Texas Water Development

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Board is hereby called to order.
The time is 9:32 AM. For the

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record, my name is Peter Lake.
With me today on the dais are

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Kathleen Jackson and Brooke Paup.
Todd, first item, please.

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- Discussion regarding outreach
efforts and activities by the board.

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- Director Jackson?
-  Thank you, Mr Chairman. Since

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our last meeting, I met
with the Texas Rural

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Water Association folks.
They do a great job

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in terms of reaching
out to rural Texas and

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providing help and assistance.
And spent some

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time with their Environmental
Services Director,

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Jason Obelix. And while
I was there, had the

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opportunity to visit with one of their
board members, Mark Gardenhire, who was in

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from the Fort Griffith
Special Utility District

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and, of course, their
Executive Director,

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Laura Zant. So, great
to have the opportunity

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to sit down and touch
base and kind of catch

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up with all the great
work that they're doing.

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I traveled to Wichita Falls.
And it was an absolute

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honor to be able to present them with the
EPA's Pisces Award. This is performance

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and innovation in the SRF,
creating environmental

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success. Wichita Falls,
of course was nominated

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by the Water Development
Board and was one of

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only five communities
or projects nationwide

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to receive this designation
as an exceptional

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project. And, of course,
it was for their

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their permanent potable reuse project. I
personally think EPA kind of reached down

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and felt it was appropriate
to recognize them

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because they, course with,
Lake Arrowhead back

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in the drought of 2011, getting dangerously
low, and the Eyes of Texas kind of

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upon Wichita Falls and
concerned that they were

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going to want to run out of water.
They took

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emergency measures and implemented
a very comprehensive,

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science based approach
to indirect potable

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reuse, really kind of
demonstrating, maybe for

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the first time, that
that could work on a

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large scale basis. And then, you know,
I kind of had the one, two punch

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and move forward and have put in
their direct and immediate,

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initially, and then their
indirect potable reuse

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project over the long
time, creating kind

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of like a permanent
potable reuse system. So,

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also the leadership of
Wichita Falls was at the

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City council meeting, so it was great for
them to be able to see leadership in action

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through the City Council,
and for them to recognize

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not only the members who
were involved initially

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in the project, but also
those who were kind

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of sitting and engaged,
kind of moving forward

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and continuing to support it. Then I headed
to East Texas and appreciate Kelly Holcomb,

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the head of the Region I
Regional Water Planning

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Group, having me and
seeing, you know, all the

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folks for Southeast Texas
and, you know, touching

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base with them. They
brought some new members

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onto the regional water
planning process, so

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good to see the great
work that they're doing

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there. And then continuing
to meet with communities

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that are participating
in our asset management

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program for small systems.
I met with the

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City of Elkheart, and
their contract engineer

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KSA, their Public
Works Director, B J.

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Perry, the City Secretary
Carla Sheraton, and

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the engineers Chris Auburn and Sid US.
They're

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doing a great job,
really kind of focusing

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in on the needs of a
small community in rural

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Texas and, as you may
recall, tornadoes had

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struck East Texas about
that time, and there was

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a significant storm the
night before, there

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were strong winds, and
so the community had

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no power. So I guess
that's kind of the first

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time ever we met by flashlight. They had
their plans that they were working on kind

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of out on the table. And to me it's just a
tribute to the commitment of the leadership

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of rural Texas is that,
you know, on with the

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show and making sure that,
you know, regardless

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of kind of what has
happened there, they're

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continuing to kind of
keep their eyes focused

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on moving forward in a positive direction.
So a great, great opportunity to be out and

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about and see the great work that the Board
is doing. And also small communities.

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- Absolutely. And the Pisces Award
is tremendous. Director Paup?

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- Texans are resilient, aren't they?

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Amazing. Since the last
board meeting, I attended

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the Law of the Rio Grande
Conference with our

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colleague, Chairman John
Niermann of TCEQ. I

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also had a fantastic
meeting with the team

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at the Texas Safekeeping Trust
Company over our SWIFT portfolio.

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- I also had some meetings at
the comptroller's office and

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attended the Investment Advisory
Board meeting. Also, I had

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a chance to sit down
with Sarah Sleshsinger

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from Texas Water Foundation.
And, of course,

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have been spending a lot
of time on productive

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meetings with folks at the Capitol.
No formal

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action required here.
Next item, please.

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- Consider approving the
issuance of State of Texas

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General Obligation Water
Financial Assistance refunding

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bonds in multiple series. A
preliminary official statement

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and authorization for the
Executive Administrator,

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general counsel, chief
financial officer and

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development fund manager to
act on behalf of the Texas

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Water Development Board in
the sale and delivery of

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the bonds. We have Georgia
Sanchez here to present.

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- Good Morning, Chairman
Lake, Director Jackson

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and Director Paup.
For the record, I'm

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Georgia Sanchez of the
Executive Administrator's

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staff. On March 28, Board Action
authorized initiation of a

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general obligation water financial
assistance refunding bond

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transaction and selection
an underwriting

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syndicate, a financial
advisor, the bond counsel

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and the disclosure counsel. With this item,
the Executive Administrator's recommending

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the approval of the issuance
of these bonds, the

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associated documents and
delegation Authority.

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It's a proposed refunding
of currently callable

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bonds across four
programs: Defund, WIFT,

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EDAP, and state participation. We explored
many options to mitigate pre payment risk,

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which is different for each of the refunded
bonds. For these reasons, we're proposing

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fixed rate and variable
rate bonds in the

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defund, WIFT, and state
participation, and fixed

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rate only in EDAP. The recommended Not to
Exceed amount is two hundred fifty million.

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The cumulativel net present
value of savings anticipated

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should exceed twenty
million dollars in eight

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point four percent. Each
of the bond resolutions

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outlined the parameters
we are requesting to

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be granted. And as with
all issuances, we'll

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work to contain costs
of issuance and other

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expenses and takedowns
associated with the

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bond sale. If approved,
we plan to price the

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bonds on May 14 and May 15 and
anticipate closing on June 12.

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- Thank you.
Questions, comments?

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- Great to see the savings.
Again, you're saying over twenty

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million dollars in savings. So
appreciate the work on this.

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- Georgia, I know a ton of analysis
goes into all our refunding,

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so thank you for this work and
for your team's work on this.

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- Tremendous work. Great
savings and as always,

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and especially on the mix
between variable and

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fixed interest rates to match up with the
underlying customer needs, and mitigate

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prepayment risk. As always,
focused on getting

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the highest utilization of taxpayer
dollars. Is there a motion?

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- Chairman, I move we adopt the proposed
resolution for the issuance, sale

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and delivery of State of Texas General
Obligation Water Financial Assistance

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Refunding Bonds, Series 2019C, Series
2019D, State Participation Program, Series

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2019E, Water Infrastructure Fund, and
Series 2019F, Economically Distressed

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Areas Program, a preliminary official
statement, and authorization for the

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Executive Administrator, general counsel,
chief financial officer and Development

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Fund Manager to act on behalf of the Texas
Water Development Board in the sale

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and delivery of such bonds as recommended
by our Executive Administrator.

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- Is there a second? All in favor, say aye.
Motion passes. Next item, please.

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- Consider authorizing
the Executive

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Administrator, Chief
Financial Officer, General

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Counsel and Development Fund Manager to
initiate the Texas Water Development

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Board State Water
Implementation Revenue Fund

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for Texas bond sale and
approving the selection

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of financial advisor, bond
counsel and disclosure

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counsel. Georgia Sanchez
is again here to present.

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- Good Morning, Georgia Sanchez.
With this item,

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the Executive Administrator
is recommending

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that the board authorize
preliminary actions needed

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for the fall SWERFT bond sale.
Additionally,

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approval this ought
to name Hilltop as

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financial advisor, McCall
Parkers and Horton

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as bond counsel, and
Bracewell as disclosure

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counsel. If approved, the
Executive Administrator

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will return to the board
in June to name an

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underwriting syndicate,
and in July for formal

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approval of the sale
and the associated

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documents, including the
bond resolutions, fund

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transfer agreement and
approval of the preliminary

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official statement for
any series to be issued

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under this authorization.

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- Thank you.
Questions, comments?

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- It's good to see
early planning and

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preparation that are
so necessary to ensure

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US successful SWIFT bond sale.
So thank you.

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- Is there a motion?

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- Mr. Chairman, I move we authorize the
Executive Administrator, Chief Financial

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Officer, General Counsel
and Development Fund

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Manager to initiate the
Texas Water Development

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Board State Water
Implementation Revenue Fund

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for Texas SWIRFT Bond
sale in approving the

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selection of Financial
Advisor, Bond Counsel

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and Disclosure Council, as recommended
by our Executive Administrator.

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- Is there a second? All in favor, say aye. Motion
passes. Next item, please. Thank you, Georgia.

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- Consider approving the 2019
State Water Implementation

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Fund for Texas prioritization lists, the
amount of funds available by category, and

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the terms of subsidy. We have
Kimberly Rhodes here to present.

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- Good Morning, Chairman Lake,
Director Jackson, Director Paup.

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For the record, my name is Kimberly Rhodes.
I'm the State Programs

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Coordinator in Program
Administration and

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Reporting on the Executive
Administrator's staff.

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The State Water Implementation Fund for
Texas, known a SWIFT, was created in 2013

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by the Texas Legislature.
SWIFT provides financial

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assistance to communities
to develop adequate

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water supply, excuse me,
water supplies during

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times of drought. SWIFT
supports funding of

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water supply projects in
the State Water Plan.

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To date, the board has
committed over eight

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billion dollars in SWIFT
funding for fifty

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four recommended projects
estimated to produce

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approximately one point five million acre
feet of water supply. Program participants

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are estimated to save over
eight hundred forty five

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million dollars compared
to market interest

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rate financing. The 2019 SWIFT funding
cycle was opened in December. Three

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abridged applications requesting a total of

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two hundred and ninety million
five hundred thousand dollars were

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received by the February 1 due date.
All three participants are

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requesting multiyear commitments, and all
three projects are considered eligible and

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have been prioritized for
board consideration.

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The Executive Administrator
is recommending

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no changes to the program
structure in terms

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of funding from the
previous cycle for low

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interest obligations,
rural and agricultural,

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deferred obligations, and
board participation.

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However, for multiyear
commitments, the Executive

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Administrator is making
one recommendation:

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to limit the proposed multi year commitment
schedules to five years. If authorized by

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the board, the entities will be invited
to submit complete applications by May 23

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and the board will consider approval of
the complete applications this summer.

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The Executive Administrator
recommends approval of

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the following four items.
One, the prioritization

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of the 2019 SWIFT program abridged
applications as set forth in attachment

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number one. Two, authorization
of approximately

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two hundred ninety million
five hundred thousand

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dollars in funding
for the 2019 SWIFT

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prioritization
cycle, and funding

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by category as set forth
in Attachment Number

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One. Three, authorization
of program structure

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in terms of funding. Four, accommodation of
requested shifts in closing amounts under

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existing multiyear
commitments for net decrease

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of two million, one hundred
and fifteen thousand

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dollars in Calendar Year
2019, each of which

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is to be approved
by board resolution

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at a later day. That
concludes my presentation.

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I'd e happy to answer any
questions you may have.

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- Thank you. Questions, comments?
Director Jackson?

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- Well, I think, as you mentioned,
over eight billion dollars

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in SWIFT program funding today
with, you know, the deliverable

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of one point five million
acre feet of water.

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And I think you know,
one of the things

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that we've asked ourselves
is as we move through

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the program, you know,
how do we measure our

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success? And certainly, I think part of the
intent of the Legislature in putting the

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SWIFT in place was to
move our large water

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supply projects forward
and some that maybe,

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no pun intended, had been kind of treading
water to see them kind of take the bull by

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the horns and move forward.
And we certainly

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are seeing that. So, you
know, the commitment

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in the dollars also kind of trains into
two projects moving forward and water for

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Texans and being prepared for the future.
In addition, I think you mentioned that you

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know this active management
where we go through

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and we look at the
capacity to make sure that

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we are, you know, protecting
the corpus, continuing

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to have, you know, the
ability to do twenty

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seven billion dollars worth of projects in
fifty years has, you know, resulted in, you

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know, the recommendations
of basically keeping

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the program structure
the same, save the, you

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know, the five year, only five year of
commitments moving forward. But one of

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the things I did wanted
to highlight is that

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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.