WEBVTT 00:00:05.930 --> 00:00:09.643 This meeting of the Texas Water Development 00:00:09.668 --> 00:00:13.610 Board is called to order. The time is 2:03 PM. 00:00:13.610 --> 00:00:17.859 For the record, my name is Peter Lake with me today on the dais is Kathleen Jackson 00:00:17.859 --> 00:00:22.387 and Brooke Paup. Joe, first item. Discussion regarding 00:00:22.412 --> 00:00:26.091 outreach efforts and activities by the board. 00:00:26.091 --> 00:00:29.186 Director Jackson? Well, thank you, Mr Chairman. 00:00:29.211 --> 00:00:33.600 I had a great meeting in Austin with the Freese and Nichols engineers 00:00:33.625 --> 00:00:37.863 Michael Reedy, Kristen Millar and Jay Scallon about ideas regarding 00:00:37.888 --> 00:00:42.515 implementing our new flood planning and funding programs. Appreciate them 00:00:42.540 --> 00:00:47.204 coming in and spending time and giving us their thoughts and ideas. I also 00:00:47.229 --> 00:00:51.799 spoke at the TNRIS GIS community meeting in Austin. Always a great event 00:00:51.824 --> 00:00:56.244 and so great to see the folks who work together collaboratively with a 00:00:56.269 --> 00:01:00.827 focus on good data. Because, as we know, the better the data, the better 00:01:00.852 --> 00:01:05.385 the science, the better the science, the better the policy. Provided the 00:01:05.410 --> 00:01:09.858 tea keynote address at the Associated General Contractors Houston Area 00:01:09.883 --> 00:01:14.557 Luncheon about our flood programs and, of course, a great job there by our 00:01:14.582 --> 00:01:19.018 contractors that are moving forward and building projects, not only in 00:01:19.042 --> 00:01:23.390 the Houston area, but literally all over the country and all over the 00:01:23.416 --> 00:01:27.858 world. Last week, I helped the staff kickoff our series of stakeholder 00:01:27.883 --> 00:01:32.363 workshops in Orange, and it was really great to see Representative Dade 00:01:32.387 --> 00:01:36.879 Phelan and Representative James White there, and also participating and 00:01:36.905 --> 00:01:41.560 addressing the crowd and kind of inter interacting with all the folks that 00:01:41.584 --> 00:01:46.155 came. A really great opportunity again for stakeholders to provide their 00:01:46.180 --> 00:01:50.851 input and their thoughts and ideas early in the process. Also attended our 00:01:50.876 --> 00:01:55.185 flood workshops in Tyler and Tomball, and I was in Lake Jackson this 00:01:55.210 --> 00:01:59.868 morning. On the way, I stopped by to visit the district offices of Senator 00:01:59.893 --> 00:02:04.395 Nichols and Senator Hughes in Jacksonville and Tyler. Really appreciate 00:02:04.420 --> 00:02:09.022 them getting the word out about our flood workshops to their constituents 00:02:09.047 --> 00:02:13.162 and also kind of moving forward and participating in the process. 00:02:13.187 --> 00:02:17.651 Appreciate KETK News helping us to again share what went on in Tyler at 00:02:17.677 --> 00:02:21.995 our flood workshops and the interview I was able to do with them and 00:02:22.020 --> 00:02:26.625 appreciate the media attention, which is always good, again, as kind of a 00:02:26.650 --> 00:02:31.018 follow up to our events. Heading to San Angelo this afternoon for the 00:02:31.043 --> 00:02:35.698 workshop tomorrow morning. And I just wanted to say congratulations to our 00:02:35.723 --> 00:02:40.410 staff. They are doing a fantastic job of putting together these workshops. 00:02:40.435 --> 00:02:44.722 We've heard great comments from the folks who are participating. The 00:02:44.746 --> 00:02:49.357 interactive comment, the opportunity for them to kind of talk one on one, 00:02:49.382 --> 00:02:53.719 the small groups that they're doing. And I know it's a big commitment 00:02:53.719 --> 00:02:56.847 on their part, but I can tell you that it 00:02:56.872 --> 00:03:00.049 truly is making a difference. I think that's 00:03:00.049 --> 00:03:04.714 13 outreach events in 14 days. Fifteen. 00:03:04.739 --> 00:03:07.357 15 in fourteen days. 00:03:07.382 --> 00:03:14.199 It's a lot. Director Paup? Rave reviews 00:03:14.199 --> 00:03:18.282 on the flood workshop. So, kudos to our staff. They're amazing. If 00:03:18.307 --> 00:03:22.365 you saw the chart on who's going where and which board members are 00:03:22.389 --> 00:03:26.520 gonna be where, it's just crazy. So they're doing an excellent job. 00:03:26.545 --> 00:03:30.469 Since last board meeting, I spoke at the Southern Regional Water 00:03:30.494 --> 00:03:34.510 Conference at the beautiful Texas A&M Hotel and Conference Center 00:03:34.535 --> 00:03:38.526 College Station. It is brand new and stunning. You know, the pool 00:03:38.550 --> 00:03:42.614 overlooks Kyle Field, so it's pretty amazing. I didn't get to stay 00:03:42.639 --> 00:03:46.617 there, but I popped up to see, you know, Kyle Field, because it's 00:03:46.642 --> 00:03:51.139 amazing. I also gave opening remarks at the regional financial assistance 00:03:51.164 --> 00:03:55.089 workshop that our sister agency TCEQ so kindly hosted for us due 00:03:55.115 --> 00:03:59.235 to the construction, as y'all have seen. I had a great conversation 00:03:59.260 --> 00:04:03.295 with Commissioner Lindley after that on ways that we could partner 00:04:03.319 --> 00:04:07.081 with our agency. I also attended NCSL last week and had great 00:04:07.106 --> 00:04:11.389 conversations with other state leaders on their infrastructure issues. 00:04:11.415 --> 00:04:15.468 Finally, as my fellow board members also have done, I attended and 00:04:15.493 --> 00:04:19.400 gave intro remarks at our Flood Workshop last week in Arlington, 00:04:19.400 --> 00:04:23.456 this morning in Kerville, and tomorrow, I head 00:04:23.481 --> 00:04:27.080 to McAllen. So thank you. Thank you. I had a 00:04:27.080 --> 00:04:30.449 chance to meet with Sharlene Leurig from the Texas 00:04:30.474 --> 00:04:33.751 Water Trade since our last meeting. Also spoke at 00:04:33.776 --> 00:04:37.132 the J. P. Morgan Transportation Utility Conference 00:04:37.157 --> 00:04:40.488 in New York, doing some outreach with our investor 00:04:40.513 --> 00:04:43.809 base and sharing the good work that we do here in 00:04:43.834 --> 00:04:46.973 Texas. Met with TCEQ to learn about their Water 00:04:46.999 --> 00:04:50.348 Right Data Hub effort, which is a very interesting 00:04:50.373 --> 00:04:53.566 initiative to help bring transparency to surface 00:04:53.591 --> 00:04:56.553 water transactions. Also attended some flood 00:04:56.578 --> 00:05:00.042 outreach workshops in El Paso and Lubbock. Very much 00:05:00.067 --> 00:05:03.806 appreciate Senator Rodriguez and Representative Gonzalez 00:05:03.831 --> 00:05:07.086 in El Paso and Senator Perry in Lubbock for their 00:05:07.110 --> 00:05:10.526 hospitality and support. And just this morning, met 00:05:10.551 --> 00:05:13.877 with Blair Fitzsimmons with the Texas Agricultural 00:05:13.902 --> 00:05:17.109 Land Trust, and will be leaving right after this 00:05:17.134 --> 00:05:20.250 to head to Rockport for the next flood outreach 00:05:20.250 --> 00:05:23.555 meeting tomorrow morning. There is no formal 00:05:23.580 --> 00:05:27.080 action required on this item. Next item, please, Joe. 00:05:27.080 --> 00:05:30.850 Consider approving Internal Audits Fiscal Year 2020 00:05:30.875 --> 00:05:34.330 Audit Plan. Michelle Cooper is here to present. 00:05:34.330 --> 00:05:38.166 Good Afternoon, Chairman Lake, Director 00:05:38.191 --> 00:05:42.262 Jackson and Director Paup. My name is Michelle Cooper, and I'm 00:05:42.287 --> 00:05:46.046 a member of the board's internal audit staff. I'm here to 00:05:46.070 --> 00:05:49.868 present agenda item two which is to consider approving the 00:05:49.894 --> 00:05:53.853 Internal Audit divisions Fiscal Year 2020 Audit Plan. Before 00:05:53.878 --> 00:05:57.618 I begin, I'd like to take this opportunity to express our 00:05:57.643 --> 00:06:01.007 sincere appreciation to staff management, executive 00:06:01.032 --> 00:06:05.083 administration, and the board for participating in this year's 00:06:05.108 --> 00:06:09.331 risk assessment process and contributing towards the development 00:06:09.356 --> 00:06:12.774 of the audit plan. I'd also like to confirm that the 00:06:12.799 --> 00:06:16.943 board's internal audits program is carried out with objectivity 00:06:16.968 --> 00:06:20.440 and independence, and that the division currently has 00:06:20.464 --> 00:06:24.420 the resources necessary to do the work outlined in the plan. 00:06:24.445 --> 00:06:28.182 The Texas Internal Auditing Act and Professional Auditing 00:06:28.207 --> 00:06:32.021 Standards requires the development of an annual audit plan 00:06:32.045 --> 00:06:35.640 that's based on a systematic assessment of risk for the 00:06:35.665 --> 00:06:39.560 agency. The act also requires that the plan be presented to 00:06:39.585 --> 00:06:43.455 the board for review and approval. A risk-based methodology 00:06:43.481 --> 00:06:47.363 was used to prioritize audit coverage for Fiscal Year 2020, 00:06:47.388 --> 00:06:50.857 and agency operations were analyzed based on multiple 00:06:50.881 --> 00:06:54.640 risk factors. We also incorporated input from each of the 00:06:54.665 --> 00:06:58.594 board members, executive administration, and other key staff 00:06:58.620 --> 00:07:02.496 into the analysis. The Fiscal Year 2020 audit plan consists 00:07:02.521 --> 00:07:06.308 of the following projects. A review of compliance with the 00:07:06.333 --> 00:07:09.836 Public Funds Investment Act, a review of the contract 00:07:09.861 --> 00:07:14.117 solicitation process, and a review of the financial analysis loan 00:07:14.142 --> 00:07:18.022 applications. By approving this plan, you are approving the 00:07:18.047 --> 00:07:22.096 internal audit budget resources allocated to these engagements 00:07:22.121 --> 00:07:26.460 as well as to various other internal audit requirements, including 00:07:26.485 --> 00:07:30.151 follow up on prior audit recommendations, consultations, 00:07:30.176 --> 00:07:33.596 investigative reviews and other administrative audit 00:07:33.621 --> 00:07:37.210 activities. In conclusion, internal audit is requesting 00:07:37.210 --> 00:07:40.131 approval of the 2020 audit plan, and I'm happy 00:07:40.156 --> 00:07:42.990 to answer any questions. Thank you, Michelle. 00:07:42.990 --> 00:07:45.410 Questions, comments? Michelle, I just want 00:07:45.435 --> 00:07:47.830 to thank you. That's a great schedule that 00:07:47.830 --> 00:07:52.039 has been put together again to kind of look and make sure that we're in adherence with 00:07:52.039 --> 00:07:54.344 all policies and procedures, but kind of as a 00:07:54.369 --> 00:07:56.499 step out, I think Internal Audit has taken 00:07:56.499 --> 00:08:03.240 a special focus on continuous improvement and engagement of the staff and the board 00:08:03.240 --> 00:08:08.340 and kind of focused on that as an objective as well. And I think that's so important. 00:08:08.340 --> 00:08:10.485 And I think you've done a really great job of 00:08:10.510 --> 00:08:12.490 that. So thank you. Thank you for the work 00:08:12.490 --> 00:08:22.280 you've done on this. Hold on, Michelle. 00:08:22.280 --> 00:08:27.473 Not quite finished yet. But I appreciate your 00:08:27.498 --> 00:08:32.440 urge for expediency. Wanna be efficient and 00:08:32.440 --> 00:08:34.964 quickly move through our agenda. Director Pop? 00:08:34.989 --> 00:08:37.380 Michelle, I never really thought I would say 00:08:37.380 --> 00:08:42.620 this, but I'm excited about an audit plan. Those words have never come out of my 00:08:42.620 --> 00:08:47.470 mouth. But you guys have put together a terrific schedule and I'm excited to read the findings. 00:08:47.470 --> 00:08:51.244 So thank you. And moving along, is there a motion? 00:08:51.269 --> 00:08:54.690 Chairman, I move we approve the Internal 00:08:54.690 --> 00:09:00.070 Audit's Fiscal Year 2020 Audit Plan, as recommended by our Executive Administrator. 00:09:00.070 --> 00:09:05.252 Is there a second? I second. All in favor say aye. 00:09:05.277 --> 00:09:09.800 Motion passes. There you go, Michelle. Next item, please. 00:09:09.800 --> 00:09:12.320 Consider selection of bond counsel and 00:09:12.345 --> 00:09:15.160 authorize the Executive Administrator to negotiate and enter 00:09:15.160 --> 00:09:18.801 into consultant contracts for outside counsel 00:09:18.826 --> 00:09:22.600 services from September 1, 2019, through August 00:09:22.600 --> 00:09:26.186 31, 2021. Alexis Lorik is here to present. 00:09:26.211 --> 00:09:29.615 Good afternoon, Chairman Lake Director 00:09:29.640 --> 00:09:32.776 Jackson and Director Paup. My name is Alexis Lorik. 00:09:32.801 --> 00:09:36.313 I'm an Assistant General Counsel in the General Counsel's 00:09:36.338 --> 00:09:39.159 office of the Executive Administrator’s staff. 00:09:39.184 --> 00:09:42.581 Before you is considering the selection of bond counsel 00:09:42.606 --> 00:09:45.614 and also to authorize the Executive Administrator 00:09:45.640 --> 00:09:48.842 to negotiate and enter into consultant contracts for 00:09:48.868 --> 00:09:51.804 outside counsel services from September 1, 2019, 00:09:51.828 --> 00:09:55.411 through August 31, 2020. In April 2019, EA staff submitted 00:09:55.436 --> 00:09:58.326 a request for qualifications to the Centralized 00:09:58.351 --> 00:10:01.375 Master Bidders list for outside counsel services. 00:10:01.400 --> 00:10:04.278 The board uses outside bond counsel and outside 00:10:04.303 --> 00:10:07.940 disclosure counsel to assist us with our bond transactions, 00:10:07.965 --> 00:10:10.667 We anticipate that in the upcoming biennium, 00:10:10.692 --> 00:10:13.831 we will have five bond issues along with associated 00:10:13.857 --> 00:10:17.092 redemptions or defeasances as necessary. Per law, the 00:10:17.117 --> 00:10:20.273 board is required to first select counsel, based on 00:10:20.298 --> 00:10:23.732 qualifications, and then negotiate a fair and reasonable 00:10:23.757 --> 00:10:26.839 fee for their services. Staff will recommend firms 00:10:26.864 --> 00:10:29.740 and a separate disclosure counsel from the pool 00:10:29.765 --> 00:10:32.733 for each issuance as we go forward over the next 00:10:32.758 --> 00:10:35.761 two years. So it is the Executive Administrator’s 00:10:35.786 --> 00:10:39.226 recommendation that, to ensure the best possible service 00:10:39.251 --> 00:10:42.484 and flexibility to handle the volume of profession of 00:10:42.509 --> 00:10:45.783 anticipated transactions, we recommend that the board 00:10:45.808 --> 00:10:48.754 select the following firms listed alphabetically 00:10:48.779 --> 00:10:52.161 to serve in the bond counsel pool and also to authorize 00:10:52.185 --> 00:10:55.119 the EA to negotiate and enter into contracts for 00:10:55.144 --> 00:10:58.230 outside services from September 1, 2019, to August 00:10:58.255 --> 00:11:01.195 31, 2021. Those firms are Bracewell LLP, McCall, 00:11:01.220 --> 00:11:04.475 Parkerhurst, and Horton LLP, Norton, Rose, Fulbright, 00:11:04.500 --> 00:11:07.790 US LLP, and Orrick, Carrington and Sutcliffe LLP. That 00:11:07.790 --> 00:11:11.457 concludes my presentation. I'm available for any questions. 00:11:11.482 --> 00:11:14.961 Questions, comments? Is there a motion? 00:11:14.961 --> 00:11:17.760 Mr. Chairman, I move we authorize 00:11:17.785 --> 00:11:20.230 the Executive Administrator to negotiate and 00:11:20.230 --> 00:11:25.730 enter into consultant contracts for outside counsel services from September 1, 2019, 00:11:25.730 --> 00:11:29.413 through August 31, 2021, as recommended by our Executive Administrator. 00:11:29.438 --> 00:11:32.860 Is there a second? I second. All in favor say aye. 00:11:32.860 --> 00:11:36.315 Motion passes. Thank you, Alexis. Next item, please. 00:11:36.340 --> 00:11:39.841 Consider authorizing the Executive Administrator 00:11:39.841 --> 00:11:43.327 to execute a contract with Wells Fargo Brokerage 00:11:43.352 --> 00:11:46.529 Services LLC for the purposes of registering 00:11:46.529 --> 00:11:49.912 and safekeeping political subdivision obligations 00:11:49.937 --> 00:11:52.889 and to establish a budget for this purpose. 00:11:52.889 --> 00:11:59.889 Leroy Lopez is here to present 00:11:59.913 --> 00:12:05.876 Good afternoon, Chairman Lake, Director Jackson, Director Paup. 00:12:05.901 --> 00:12:09.466 For the record, LeeRoy Lopez from the Executive Administrator's 00:12:09.491 --> 00:12:13.069 staff. As mentioned we're requesting authorization to execute a 00:12:13.094 --> 00:12:16.759 contract with Wells Fargo Brokerage Services to provide financial 00:12:16.784 --> 00:12:20.243 custodial services for Fiscal Year 2020. Wells Fargo has been 00:12:20.268 --> 00:12:24.148 providing these custodial service for the agency and have met all our 00:12:24.173 --> 00:12:27.564 needs and have an excellent performance history with us. The 00:12:27.589 --> 00:12:31.400 contract we are requesting authorization to execute is for an amount 00:12:31.400 --> 00:12:39.550 not to exceed 300,000 for the Fiscal Year 2020. Thank you. Any questions? 00:12:39.550 --> 00:12:43.916 Thank you, LeeRoy. Questions, comments. Is there a motion? 00:12:43.941 --> 00:12:47.320 Chairman, I move we authorize the Executive 00:12:47.320 --> 00:12:49.619 Administrator to execute a contract with Wells 00:12:49.644 --> 00:12:51.870 Fargo Brokerage Services LLC for the purpose 00:12:51.870 --> 00:12:54.509 of registering and safekeeping political subdivision 00:12:54.534 --> 00:12:56.600 obligations and to establish a budget for 00:12:56.600 --> 00:13:00.931 this purpose aas recommended by our Executive Administrator. 00:13:00.956 --> 00:13:03.255 Is there a second? I second. All in favor say aye. 00:13:03.281 --> 00:13:04.980 Thank you, Leroy. 00:13:04.980 --> 00:13:07.754 Next item, please. Consider authorizing the 00:13:07.779 --> 00:13:10.990 Executive Administrator to negotiate and execute 00:13:10.990 --> 00:13:16.317 a contract in an amount not to exceed $2,106,219 00:13:16.342 --> 00:13:21.100 for a continuation of the Water Resources 00:13:21.100 --> 00:13:26.810 Investigations Data Collection program with the U S Geological Survey in Fiscal Year 00:13:26.810 --> 00:13:31.410 2020. Nelun Fernando is here to present. 00:13:31.435 --> 00:13:36.692 Good Afternoon, Chairman Lake, Director Jackson, 00:13:36.717 --> 00:13:41.717 and Director Paup. For the record, I'm the Nelun Fernando of the 00:13:41.742 --> 00:13:46.832 Executive Administrator’s staff, standing in for Dr. Mark Wenzel. 00:13:46.857 --> 00:13:52.385 Accurate water data provides the foundation upon which Texas builds its 00:13:52.410 --> 00:13:57.506 water plans, manages its water resources, and remains vigilant of 00:13:57.531 --> 00:14:03.143 dangerous flooding conditions. To collect necessary data the TWDB enters 00:14:03.167 --> 00:14:08.482 into an annual contract with the U. S. Geological Survey to maintain 00:14:08.507 --> 00:14:13.566 and operate stream and lake level gauges in Texas. The first U. S 00:14:13.591 --> 00:14:19.076 Geological Survey stream gauge in Texas was installed 130 years ago on 00:14:19.101 --> 00:14:24.484 the Rio Grande there, near El Paso, and the State Federal Cooperative 00:14:24.510 --> 00:14:29.982 Program for Water Resources Investigations started shortly thereafter, 00:14:30.007 --> 00:14:34.915 with the first jointly funded gauge being installed in 1915. At 00:14:34.940 --> 00:14:40.342 present, the U. S Geological Survey maintains a network of 642 stream 00:14:40.367 --> 00:14:45.512 and 152 lake level gauges providing near real-time data across the 00:14:45.537 --> 00:14:51.234 state. The item before you today requests authorization for the Executive 00:14:51.260 --> 00:14:56.394 Administrator to negotiate and execute a contract in an amount not 00:14:56.418 --> 00:15:01.668 to exceed $2,106,219 for Fiscal Year 2020, of which $1,742,484 will 00:15:01.693 --> 00:15:06.841 come from the TWDB, with the remainder being contributed by the U. 00:15:06.867 --> 00:15:12.028 S Geological Survey. $1,484,484 of the TWDB funding will come from 00:15:12.052 --> 00:15:17.188 general revenue, and 258,000 of this will come from the Floodplain 00:15:17.213 --> 00:15:22.534 Management Account Fund Number 330. A portion of the general revenue 00:15:22.559 --> 00:15:28.010 funds will support the operation and maintenance of 53 stream flow and 00:15:28.035 --> 00:15:33.344 35 lake level gauges in Fiscal Year 2020. These gauges contribute to 00:15:33.369 --> 00:15:38.499 TWDB’s objective of providing data for planning and managing water 00:15:38.524 --> 00:15:44.157 resources. The remainder of the general revenue funds and the Floodplain 00:15:44.182 --> 00:15:49.327 Management account funds will support costs associated with gauges 00:15:49.352 --> 00:15:54.895 that contribute to improving flood warning and forecasting capabilities 00:15:54.920 --> 00:15:59.899 in Texas. These funds will cover costs to install six new stream 00:15:59.924 --> 00:16:04.857 flow gauges, operation and maintenance costs for a partial year 00:16:04.882 --> 00:16:10.561 associated with these new gauges, and full year operation and maintenance 00:16:10.586 --> 00:16:16.276 costs for 46 stream flow, 4 lake level, and 45 rain gauges. The Executive 00:16:16.301 --> 00:16:21.120 Administrator recommends approval of this item. This concludes 00:16:21.120 --> 00:16:24.098 my presentation, and I'm available to answer any questions. 00:16:24.123 --> 00:16:27.009 Thank you. Questions, comments? 00:16:27.009 --> 00:16:30.528 Very comprehensive network, so important to our mission, as you 00:16:30.553 --> 00:16:34.321 mentioned. And of course, the U. S. Geological Survey, very diligent 00:16:34.346 --> 00:16:37.798 in the work that they do and also very cost effective in their 00:16:37.823 --> 00:16:41.414 approach they take in terms of installing new gauges, but also in 00:16:41.439 --> 00:16:45.321 the ongoing maintenance. So good to see that you know, we're investing 00:16:45.346 --> 00:16:48.656 in these type of resources, that we've got a strong partner, 00:16:48.681 --> 00:16:52.005 and that, you know, we're also accommodating for the ongoing 00:16:52.030 --> 00:16:55.819 maintenance of the of the stream gauges. Again for the important data 00:16:55.819 --> 00:17:01.209 that it provides, particularly for early flood warning. So thank you. 00:17:01.209 --> 00:17:03.709 What is it you say? Good data. The better 00:17:03.734 --> 00:17:06.209 the data, the better the science. The better the science, 00:17:06.209 --> 00:17:09.517 the better the policy. You beat me to that. 00:17:09.542 --> 00:17:12.750 This'll definitely shows our commitment to 00:17:12.750 --> 00:17:16.116 investing in accurate, good data. So thank you. 00:17:16.141 --> 00:17:19.560 Thank you. And is there a motion? 00:17:19.560 --> 00:17:21.908 Mr Chairman, I move we authorize the 00:17:21.933 --> 00:17:24.340 Executive Administrator to negotiate and execute a contract 00:17:24.340 --> 00:17:29.510 for the continuation of the Water Resources Investigations Data Collection program 00:17:29.510 --> 00:17:34.496 with the USGS in Fiscal Year 2020 as recommended 00:17:34.521 --> 00:17:36.809 Is there a second? All in favor 00:17:36.834 --> 00:17:38.770 say aye. Motion passes. Next item, please. 00:17:38.770 --> 00:17:45.900 Consider authorizing the Executive Administrator to execute the 00:17:45.900 --> 00:17:52.030 State Fiscal Year 2020 Drinking Water State Revolving Funds Set Aside Contract between 00:17:52.030 --> 00:17:57.840 the Texas Water Development Board and the Texas Commission on Environmental Quality. 00:17:57.840 --> 00:18:02.537 Mark Wyatt is here to present. 00:18:02.562 --> 00:18:06.174 Good afternoon, Chairman Lake, Director 00:18:06.199 --> 00:18:09.385 Jackson, Director Paup. For the record, my name 00:18:09.410 --> 00:18:13.009 is Mark Wyatt of the Executive Administrator’s staff. 00:18:13.035 --> 00:18:16.209 Today we bring for your consideration the State 00:18:16.234 --> 00:18:19.773 fiscal Year 2020 Drinking Water State Revolving Fund 00:18:19.798 --> 00:18:23.446 Set Aside Contract between the Texas Water Development 00:18:23.470 --> 00:18:26.663 Board and the Texas Commission on Environmental 00:18:26.689 --> 00:18:30.123 Quality. Each year, this agency and TCEQ execute an 00:18:30.148 --> 00:18:33.490 interagency contract governing the use of certain 00:18:33.515 --> 00:18:37.233 Drinking Water State Revolving Fund grant funds for set 00:18:37.258 --> 00:18:40.854 aside activities. The contract reflects the set aside 00:18:40.879 --> 00:18:44.250 allocations in the State Fiscal Year 2020 Intended 00:18:44.275 --> 00:18:48.078 Use plan and activities described in work plans prepared 00:18:48.103 --> 00:18:51.347 by TCEQ and submitted for approval to EPA. There 00:18:51.372 --> 00:18:54.961 are no substantive changes from last year's contract. 00:18:54.986 --> 00:18:58.018 The contract covers the total of $12,147,001. 00:18:58.044 --> 00:19:01.584 The capitalization grant will, funds will be used by 00:19:01.609 --> 00:19:05.190 TCEQ to administer and enforce federal state drinking 00:19:05.215 --> 00:19:08.808 water standards in its role as the primacy agency for 00:19:08.833 --> 00:19:12.069 the State of Texas. They will also use the grant 00:19:12.094 --> 00:19:15.427 funds for capacity development activities such as 00:19:15.452 --> 00:19:18.893 preparing an assessment of the financial managerial 00:19:18.918 --> 00:19:22.372 and technical capacity, which is generally referred 00:19:22.397 --> 00:19:25.759 to as FMTs, for all Drinking Water State Revolving 00:19:25.784 --> 00:19:29.320 Fund applicants. We continue to have a great working 00:19:29.345 --> 00:19:32.656 relationship with our colleagues at TCEQ. We hold 00:19:32.681 --> 00:19:36.005 periodic coordination meetings with TCEQ staff to 00:19:36.031 --> 00:19:39.663 discuss all manner of drinking water topics, including 00:19:39.687 --> 00:19:43.350 systems in need of financial assistance. The Executive 00:19:43.375 --> 00:19:46.347 Administrator recommends the Board authorize 00:19:46.372 --> 00:19:49.623 the execution of the contract with TCEQ with the 00:19:49.648 --> 00:19:52.940 ability to make minor revisions that do not alter 00:19:52.940 --> 00:19:56.477 the underlying content. I'd be pleased to answer any questions you may have. 00:19:56.502 --> 00:19:59.580 Thank you, Mark. Questions, comments? 00:19:59.580 --> 00:20:03.401 And then just to kind of echo what you said about 00:20:03.426 --> 00:20:07.222 the small systems technical assistance and the work that TCEQ’s doing 00:20:07.248 --> 00:20:11.057 on the Financial, Managerial and Technical Review, which all drinking 00:20:11.082 --> 00:20:14.975 water programs have to have and loans with the board, but so important, 00:20:15.000 --> 00:20:18.802 particularly for rural communities. And oftentimes it affords them an 00:20:18.827 --> 00:20:22.767 opportunity to get some additional help, either on the financial side or 00:20:22.791 --> 00:20:26.526 on the operating side. So good, good partnership and a good contract 00:20:26.552 --> 00:20:30.370 with TCEQ. Appreciate you working with them and the coordinated effort 00:20:30.370 --> 00:20:33.958 that has gone on for a number of years. Director Paup? 00:20:33.983 --> 00:20:37.880 Is there a motion? Chairman, I move we authorize 00:20:37.880 --> 00:20:42.571 the Executive Administrator to execute the State Fiscal Year 2020 Drinking Water State 00:20:42.571 --> 00:20:47.270 Revolving Fund Set Aside Contract between the Texas Water Development Board and the 00:20:47.270 --> 00:20:49.386 Texas Commission on Environmental Quality, as 00:20:49.411 --> 00:20:51.410 recommended by our Executive Administrator. 00:20:51.410 --> 00:20:54.385 Is there a second? I second All in favor, say 00:20:54.410 --> 00:20:57.290 aye. Motion passes. Thank you, Mark. 00:20:57.290 --> 00:21:00.729 Next item, please. The board will take up 00:21:00.754 --> 00:21:04.331 agenda items seven and eight together. Item 00:21:04.331 --> 00:21:09.681 seven, consider approving the State Fiscal Year 2020 Clean Water State Revolving Fund 00:21:09.681 --> 00:21:16.750 Intended Use Plan and consider approving the State Fiscal Year 2020 Drinking Water State 00:21:16.750 --> 00:21:23.900 Revolving Fund Intended Use Plan. Again. Mark Wyatt to present. Welcome back, Mark. 00:21:23.900 --> 00:21:27.240 Thank you, sir. Good afternoon, again, 00:21:27.265 --> 00:21:30.769 Chairman Lake, Director Jackson, Director Paup. For the 00:21:30.794 --> 00:21:34.750 record, my name is Mark Wyatt of the Executive Administrator’s 00:21:34.775 --> 00:21:37.638 staff. Today, we bring for your consideration 00:21:37.663 --> 00:21:40.808 the State Fiscal Year 2020 Intended Use Plans for 00:21:40.833 --> 00:21:43.953 both the Clean Water State Revolving Fund and the 00:21:43.978 --> 00:21:47.111 Drinking Water State Revolving Fund. These annual 00:21:47.135 --> 00:21:50.431 plans describe the use of available funds to support 00:21:50.456 --> 00:21:53.856 the overall goals of the program. The State Revolving 00:21:53.881 --> 00:21:57.004 Funds, or SRFs as they're called, have tremendous 00:21:57.029 --> 00:22:00.604 capacity to meet the needs of our customers in financing 00:22:00.629 --> 00:22:03.740 water, wastewater, and other beneficial projects. 00:22:03.765 --> 00:22:06.781 While the stated capacity for both programs are 00:22:06.806 --> 00:22:10.111 unchanged at 525,000,000 for the Clean Water SRF and 00:22:10.137 --> 00:22:13.329 250,000,000 for the Drinking Water State Revolving 00:22:13.354 --> 00:22:16.584 fund, the intended use plans, or IUPs, now indicate 00:22:16.609 --> 00:22:20.136 that this stated capacity is based on a 10-year average 00:22:20.161 --> 00:22:23.474 capacity from State Fiscal Year 2020 to State Fiscal 00:22:23.500 --> 00:22:26.951 Year 2029. This means that for any one year, the total 00:22:26.976 --> 00:22:30.089 amount available may be in excess of these stated 00:22:30.114 --> 00:22:33.132 capacities. For both programs, the total amount 00:22:33.157 --> 00:22:36.653 allocated to principal forgiveness in State Fiscal Year 00:22:36.677 --> 00:22:39.871 2020 remains the same as State Fiscal Year 2019 at 00:22:39.896 --> 00:22:43.128 28.6 for the Clean Water SRF and 30,000,000 for the 00:22:43.153 --> 00:22:46.299 Drinking Water SRF. The Small Rural Disadvantaged 00:22:46.324 --> 00:22:49.886 Communities Initiative introduced by the agency in State 00:22:49.911 --> 00:22:53.421 Fiscal Year 2019, with special allocations of principal 00:22:53.447 --> 00:22:56.305 forgiveness and zero interest rate loans, has 00:22:56.330 --> 00:22:59.596 proven to be very successful and is retained in the 00:22:59.621 --> 00:23:02.988 State Fiscal Year 2020 Intended Use plans. This year, 00:23:03.013 --> 00:23:06.329 the agency is proposing a number of new enhancements 00:23:06.354 --> 00:23:09.520 and special initiatives. First, the Drinking Water 00:23:09.545 --> 00:23:12.821 State Revolving fund will now offer funding as both 00:23:12.846 --> 00:23:16.412 equivalency and non-equivalency depending on the funding 00:23:16.437 --> 00:23:19.387 options. The equivalency projects will have an 00:23:19.412 --> 00:23:22.839 interest rate subsidy of 155 basis points below market 00:23:22.864 --> 00:23:26.197 rates, and the non-equivalency projects will have an 00:23:26.222 --> 00:23:29.656 interest rate subsidy of 125 basis points below market 00:23:29.680 --> 00:23:32.874 rates. This will provide customers with options on 00:23:32.900 --> 00:23:36.007 the degree of paperwork preferred compared to the 00:23:36.032 --> 00:23:39.305 interest rate subsidy. In addition, for urgent need 00:23:39.330 --> 00:23:42.641 projects that need to move, rapidly removing certain 00:23:42.666 --> 00:23:46.115 procurement requirements can expedite recovery efforts 00:23:46.140 --> 00:23:49.313 and the full restoration of service. For the Texas 00:23:49.338 --> 00:23:52.479 World Development Board, non-equivalency projects 00:23:52.504 --> 00:23:55.934 require less project management effort and will lessen 00:23:55.959 --> 00:23:59.338 the overall project management workload. The Drinking 00:23:59.364 --> 00:24:02.343 Water SRF loan origination fee has been reduced 00:24:02.368 --> 00:24:06.083 from 2.15% to 2%. This will lower the cost of the customer 00:24:06.108 --> 00:24:09.232 borrowing from the Drinking Water SRF while still 00:24:09.257 --> 00:24:12.707 allowing for the adequate recovery of funds to support 00:24:12.733 --> 00:24:15.845 he Texas Water Development Board’s administrative 00:24:15.869 --> 00:24:18.697 costs in program initiatives. To support the 00:24:18.722 --> 00:24:22.091 development and use of asset management and financial 00:24:22.117 --> 00:24:25.247 planning tools, The Texas Water Development Board 00:24:25.272 --> 00:24:28.502 anticipates awarding additional contracts under the 00:24:28.527 --> 00:24:31.924 Asset Management Program for Small Systems Initiative 00:24:31.949 --> 00:24:34.881 in State Fiscal Year 2020 in a total amount to 00:24:34.906 --> 00:24:38.228 determine later in the year. This program, which the 00:24:38.253 --> 00:24:41.550 agency calls AMPS, provides up to 75,000 to approved 00:24:41.575 --> 00:24:44.715 contractors to evaluate a small system and create 00:24:44.740 --> 00:24:47.980 an asset management plan and other essential tools. 00:24:48.005 --> 00:24:51.571 Recognize the benefits of comprehensive asset management 00:24:51.596 --> 00:24:54.699 planning for all systems, this year, any eligible 00:24:54.724 --> 00:24:58.252 entity, not just the small systems, may be eligible for 00:24:58.277 --> 00:25:01.591 up to 75,000 with the interest rate of 0% to prepare 00:25:01.615 --> 00:25:04.564 asset management and financial planning tools. 00:25:04.589 --> 00:25:08.015 Additionally, the agency is announcing for next year's 00:25:08.040 --> 00:25:11.309 Intended Use Plan State Fiscal Year 2021, an entity 00:25:11.334 --> 00:25:14.327 that has adopted asset management and financial 00:25:14.353 --> 00:25:17.798 planning tools within the past five years will receive 00:25:17.823 --> 00:25:21.118 additional points for their proposed project and may 00:25:21.143 --> 00:25:24.416 receive an additional interest rate reduction for a 00:25:24.441 --> 00:25:27.877 portion of the Texas Water Development SRF funding for 00:25:27.902 --> 00:25:31.037 project. The SRF multiyear commitment option is a 00:25:31.062 --> 00:25:34.422 beneficial option for both our program as well as our 00:25:34.447 --> 00:25:37.839 customers. This option allows customers to meet their 00:25:37.864 --> 00:25:40.980 long term financial planning needs by providing a 00:25:41.005 --> 00:25:44.197 reliable source of capital for the next five years 00:25:44.222 --> 00:25:47.764 through the SRF program. The IUP will make the multiyear 00:25:47.789 --> 00:25:51.252 funding option available for those receiving principal 00:25:51.277 --> 00:25:54.652 forgiveness under the Disadvantaged Community Funding 00:25:54.677 --> 00:25:58.252 option. The IUPs now specifically mention that a project 00:25:58.277 --> 00:26:01.263 must demonstrate to the Texas Water Development 00:26:01.288 --> 00:26:04.619 Board that is viable, feasible and sustainable prior 00:26:04.644 --> 00:26:07.824 to receiving a commitment for the funding options, 00:26:07.849 --> 00:26:11.167 including principal forgiveness for the acquisition, 00:26:11.191 --> 00:26:14.233 design and construction phases of the project. A 00:26:14.258 --> 00:26:17.529 loan feasibility assessment has always been part of 00:26:17.554 --> 00:26:20.863 the agency's overall review of the repayment ability 00:26:20.888 --> 00:26:24.146 of projects. The IUP now specifically requires that 00:26:24.171 --> 00:26:27.404 the entity the entity to demonstrate the viability, 00:26:27.430 --> 00:26:30.757 feasibility and sustainability of its proposal prior 00:26:30.782 --> 00:26:33.959 to receiving a commitment for any funding options. 00:26:33.985 --> 00:26:37.237 Under Emergency Relief and Urgent Need funding, the 00:26:37.262 --> 00:26:40.489 Texas Water Development Board has always encouraged 00:26:40.514 --> 00:26:43.537 and financed mitigation measures. This goal was 00:26:43.562 --> 00:26:47.190 implemented from the inception of the agency's successful 00:26:47.215 --> 00:26:50.854 disaster recovery funding options. Although it has always 00:26:50.879 --> 00:26:54.054 been strongly encouraged, the IUP now specifically 00:26:54.079 --> 00:26:57.285 requires the facilities being replaced or repaired 00:26:57.310 --> 00:27:00.365 for a Disaster Recovery project must be built to 00:27:00.390 --> 00:27:03.521 mitigate future damage and destruction. This will 00:27:03.546 --> 00:27:06.902 ensure that all SRF funded disaster recovery projects 00:27:06.927 --> 00:27:10.450 will be built to lessen the impact and degree of damage 00:27:10.475 --> 00:27:13.533 in any future disaster. Finally, the Texas Water 00:27:13.558 --> 00:27:16.880 Development Board will implement a new initiative in 00:27:16.905 --> 00:27:20.014 the Drinking Water State Revolving program called 00:27:20.039 --> 00:27:23.179 Securing Safe Water that involves a comprehensive 00:27:23.204 --> 00:27:26.696 outreach, technical assistance, and funding strategy to 00:27:26.720 --> 00:27:29.973 reduce the number of public water systems that have 00:27:29.998 --> 00:27:33.226 unresolved health issues. It will support the EPA’s 00:27:33.251 --> 00:27:36.713 strategic goal of significantly reducing the number of 00:27:36.738 --> 00:27:40.112 public water systems with reported health violations. 00:27:40.137 --> 00:27:43.649 To support this initiative, the Texas Water Development 00:27:43.674 --> 00:27:46.659 Board will allocate a portion of the Very Small 00:27:46.684 --> 00:27:49.763 Systems and Urgent Need funding to address these 00:27:49.788 --> 00:27:53.218 unresolved public health issues. Additional details on 00:27:53.243 --> 00:27:56.560 the numerous enhancements and a detailed explanation 00:27:56.585 --> 00:27:59.626 of the rationale are included as your Attachment 00:27:59.652 --> 00:28:02.796 One. Based on public comments and further review, 00:28:02.821 --> 00:28:06.255 revisions were made to the Intended Use plans as shown 00:28:06.280 --> 00:28:09.287 in the attachments. The Executive Administrator 00:28:09.312 --> 00:28:12.795 recommends approval of the State Fiscal Year 2020 Clean 00:28:12.820 --> 00:28:16.084 Water State Revolving Fund and Drinking Water State 00:28:16.109 --> 00:28:19.222 Revolving Fund and requests authority to make non 00:28:19.247 --> 00:28:22.373 substantive changes. I'd be pleased to answer any questions. 00:28:22.399 --> 00:28:25.750 Question, comments? Great presentation, and 00:28:25.750 --> 00:28:29.271 I think great work on the IUPs. We've certainly seen over 00:28:29.296 --> 00:28:32.610 the years with, you know, input from staff that worked 00:28:32.635 --> 00:28:36.264 with communities as well as feedback that we've gotten from 00:28:36.289 --> 00:28:39.591 those that we work with. Some of the enhancements that 00:28:39.616 --> 00:28:43.009 you've kind of, you know, implemented here, I think the 00:28:43.034 --> 00:28:46.523 other thing that you commented on is that we've gone back 00:28:46.549 --> 00:28:49.869 and actually looked at how, you know, how proven these 00:28:49.894 --> 00:28:53.129 are. In other words, you know, we've kind of built on 00:28:53.153 --> 00:28:56.489 a strong foundation, and we've also made sure that the 00:28:56.514 --> 00:28:59.703 things that we proposed in the past are working in a 00:28:59.728 --> 00:29:02.991 providing value. Particularly excited about the asset 00:29:03.016 --> 00:29:06.617 management, I just continue to think that that's a key, not 00:29:06.643 --> 00:29:09.973 just for the big cities but for the small communities. 00:29:09.998 --> 00:29:13.424 So listening to them and saying, you know, we, you know, 00:29:13.448 --> 00:29:17.067 give us, in our mind, something that's kind of an incentive 00:29:17.092 --> 00:29:20.324 to move forward. So you know, having the opportunity, 00:29:20.350 --> 00:29:23.926 if you've done the asset management plan to get additional 00:29:23.951 --> 00:29:27.260 points. Also, you know something that's kind of in the 00:29:27.284 --> 00:29:30.605 offing, and we're thinking about maybe implementing in 00:29:30.630 --> 00:29:33.926 the forward year of, you know, even a reduced interest 00:29:33.951 --> 00:29:37.218 rate, kind of rewarding those that take that step and 00:29:37.243 --> 00:29:40.424 do the asset management plans. I think that, coupled 00:29:40.449 --> 00:29:43.704 with your CFO To Go program, is really providing some 00:29:43.729 --> 00:29:47.139 very powerful tools for communities, and then opening up 00:29:47.164 --> 00:29:50.494 asset management to everybody and kind of encouraging, 00:29:50.519 --> 00:29:54.188 giving the 0% interest for an asset management plan. I think 00:29:54.213 --> 00:29:57.591 it is just fantastic. The work on disaster recovery and 00:29:57.616 --> 00:30:00.849 kind of making sure that we're building in resiliency 00:30:00.874 --> 00:30:04.138 is totally in line with everything that I think we're 00:30:04.163 --> 00:30:07.704 hearing from leadership across the state and how important 00:30:07.728 --> 00:30:10.859 that is. So just a great job here on the IUP. And I 00:30:10.884 --> 00:30:14.110 guess my only question is okay, what's the next step? 00:30:14.110 --> 00:30:16.885 Well, that's a great question. Right now, staff is 00:30:16.910 --> 00:30:19.660 up there preparing the invitation letters. We hope 00:30:19.660 --> 00:30:26.080 they'll go out shortly. Those are for the first round. We have hundreds going out, and 00:30:26.080 --> 00:30:29.197 they will generally be competing for the principal 00:30:29.222 --> 00:30:32.070 forgiveness in the first round. That's clearly 00:30:32.070 --> 00:30:38.810 the interest there, and, after those go out and we've given an opportunity for them 00:30:38.810 --> 00:30:41.200 to come in, about six weeks, then we'll move to 00:30:41.225 --> 00:30:43.440 the second phase, which is first come, first 00:30:43.440 --> 00:30:46.080 serve. We just open it up. And that first come, 00:30:46.105 --> 00:30:48.390 first served extends throughout the year. 00:30:48.390 --> 00:30:51.742 So anytime anyone is interested in applying, 00:30:51.767 --> 00:30:55.020 they simply fill up a project information 00:30:55.020 --> 00:30:59.405 form, the teams jump on it, and we get it through the process. 00:30:59.430 --> 00:31:03.440 A great point. The SRF, you can 00:31:03.440 --> 00:31:06.645 jump in at any time. Kind of open enrollment, 00:31:06.670 --> 00:31:09.780 so to speak. Okay. Thank you. Director Paup? 00:31:09.780 --> 00:31:12.494 Great stuff. Securing safe water in 00:31:12.519 --> 00:31:15.260 our AMPS program paired with CFO ToGgo. I mean, these 00:31:15.260 --> 00:31:19.690 are incredible initiatives that are gonna help the state as a whole. Thank you. 00:31:19.690 --> 00:31:23.007 I appreciate all the staff work on this 00:31:23.032 --> 00:31:26.150 and also very much appreciate the Executive Administrator's 00:31:26.150 --> 00:31:28.330 team coordinating with the individual board 00:31:28.355 --> 00:31:30.610 members throughout the process on integrating 00:31:30.610 --> 00:31:33.219 that input. Appreciate that effort. Is there a motion? 00:31:33.244 --> 00:31:35.770 Mr. Chairman, I move we approve 00:31:35.770 --> 00:31:41.670 the State Fiscal Year 2020 Clean Water State Revolving Fund Intended Use Plan and State 00:31:41.670 --> 00:31:44.171 Fiscal Year 2020 Drinking Water State Revolving 00:31:44.196 --> 00:31:46.360 Fund Intended Use Plan, as recommended by 00:31:46.360 --> 00:31:49.480 our Executive Administrator. Is there a second? Second. 00:31:49.505 --> 00:31:52.470 All in favor say aye. Motion passes. 00:31:52.470 --> 00:31:56.159 Thanks, Mark. Next item, please. Consider approving 00:31:56.184 --> 00:31:59.270 a request from the city of Willow Park for 00:31:59.270 --> 00:32:02.372 financing from the Drinking Water State Revolving 00:32:02.397 --> 00:32:05.040 Fund for planning, acquisition, design and 00:32:05.040 --> 00:32:11.560 construction of water system improvements. Luis Farias is here to present. We also 00:32:11.560 --> 00:32:16.600 have Patrick Lawler, the city manager of the city of Hudson Oaks who wishes to address 00:32:16.600 --> 00:32:19.955 the board after Mr Farias's comments. 00:32:19.980 --> 00:32:23.355 Good Afternoon, Chairman Lake, Director 00:32:23.380 --> 00:32:27.037 Jackson, Director Paup. For the record, I am Luis Farias of 00:32:27.061 --> 00:32:30.485 the Executive Administrator’s staff. The city of Willow 00:32:30.510 --> 00:32:33.970 Park is located in Parker County, and it's approximately 00:32:33.995 --> 00:32:37.609 22 miles west of the city of Fort Worth and provides water 00:32:37.634 --> 00:32:41.039 and wastewater service to a population of approximately 00:32:41.064 --> 00:32:44.482 4691. The city is requesting $13.8 million in financing 00:32:44.507 --> 00:32:48.022 from the Drinking Water State Revolving Fund to construct 00:32:48.046 --> 00:32:51.479 a pipeline that will provide additional water supply to 00:32:51.504 --> 00:32:55.035 Willow Park and the city of Hudson Oaks. Both communities 00:32:55.060 --> 00:32:58.603 are experiencing a severe reduction in their ground water 00:32:58.628 --> 00:33:02.024 supply. Willow Park’s current and projected water usage 00:33:02.049 --> 00:33:05.537 has exceeded 85% of its well capacity, while Hudson Oaks 00:33:05.562 --> 00:33:08.903 Water Supply does not provide adequate capacity during 00:33:08.927 --> 00:33:12.280 peak usage. Both cities must find another water source 00:33:12.305 --> 00:33:15.633 to ensure sufficient capacity for their customers. The 00:33:15.658 --> 00:33:19.031 cities have each entered in a wholesale water purchase 00:33:19.056 --> 00:33:22.711 agreement with the city of Fort Worth to supply the treated 00:33:22.736 --> 00:33:26.403 water needed to meet their needs, and also in order to save 00:33:26.429 --> 00:33:30.010 on costs, both cities have also entered into a inter-local 00:33:30.035 --> 00:33:33.525 agreement for funding, construction and maintenance of a 00:33:33.550 --> 00:33:36.953 shared water supply facility, which will consist of the 00:33:36.978 --> 00:33:40.394 construction of an 18-inch diameter pipeline that would 00:33:40.418 --> 00:33:43.687 deliver water from Fort Worth’s existing transmission 00:33:43.712 --> 00:33:47.327 line to a shared water supply facility, which will include 00:33:47.352 --> 00:33:50.513 a meter station, a ground storage tank and two pump 00:33:50.539 --> 00:33:53.837 stations. Also, a 16-inch water transmission line and 00:33:53.861 --> 00:33:57.805 distribution line will also be constructed from the shared water 00:33:57.831 --> 00:34:01.440 facility to provide water to each entity’s interconnection 00:34:01.465 --> 00:34:04.621 and distribution system. Willow Park’s share of the 00:34:04.646 --> 00:34:08.242 cost is 52% while Hudson Oaks share is 48%. A key issue is 00:34:08.267 --> 00:34:11.655 Willow Park and the city of Hudson Oaks wholesale water 00:34:11.680 --> 00:34:15.359 supply contracts with Fort Worth will expire in December 31 00:34:15.384 --> 00:34:19.038 of 2031 and are not for the life of the loan. All wholesale 00:34:19.062 --> 00:34:22.422 water supply contracts with Fort Worth expired in 2010 00:34:22.447 --> 00:34:25.720 and required that all contracts had the same terms of 00:34:25.745 --> 00:34:29.662 20 years beginning in 2011. The 20-year term is non-negotiable, 00:34:29.687 --> 00:34:32.845 so any customers contracting for host of water with 00:34:32.870 --> 00:34:36.407 Fort Worth after 2011 would have the same expiration date 00:34:36.432 --> 00:34:39.639 in terms as those executed in 2011. Both communities 00:34:39.663 --> 00:34:43.155 executed their contracts in 2019 and they will expire in 00:34:43.180 --> 00:34:46.647 2031. So although their water supply contracts with Fort 00:34:46.671 --> 00:34:50.150 Worth are not for the life of the loan, staff recommends 00:34:50.176 --> 00:34:53.814 approval based on Fort Worth’s well established procedures, 00:34:53.839 --> 00:34:57.324 its management of its wholesale water contracts, and its 00:34:57.349 --> 00:35:00.687 reliable water supply source supplied Tarrant Regional 00:35:00.712 --> 00:35:04.062 Waters Supply District through a contract that doesn't 00:35:04.087 --> 00:35:07.290 expire. The financing, Willow Park will be doing the 00:35:07.315 --> 00:35:10.992 financing, will be financing the total cost of the project. 00:35:11.017 --> 00:35:14.118 And per the executed inter-local agreement between 00:35:14.143 --> 00:35:17.685 Willow Park and Hudson Oaks, each city is responsible for 00:35:17.709 --> 00:35:21.165 their share of the debt service repayment based on their 00:35:21.190 --> 00:35:24.616 share cost of the project, which is 52% for Willow Park 00:35:24.641 --> 00:35:28.164 and 48% for Hudson Oaks. Each city will have ownership of 00:35:28.189 --> 00:35:31.480 the shared system based on these percentages, and the 00:35:31.505 --> 00:35:34.954 agreement is valid through the life of the loan with the 00:35:34.979 --> 00:35:38.530 board. And even though there is an agreement between both 00:35:38.555 --> 00:35:42.081 cities, Willow Oaks will be responsible for the repayment 00:35:42.107 --> 00:35:45.829 of the debt service. Willow Park will be pledging ad valorem 00:35:45.853 --> 00:35:49.000 taxes and surplus revenues for the repayment of the 00:35:49.026 --> 00:35:52.632 debt. And both cities have strong financial sustainability 00:35:52.657 --> 00:35:56.177 indicators to repay the debt. The executive administrator 00:35:56.202 --> 00:35:59.551 recommends approval of this request. This concludes my 00:35:59.576 --> 00:36:02.900 presentation. I will be happy to answer any questions. 00:36:02.900 --> 00:36:05.441 Thank you. Questions, comments? 00:36:05.466 --> 00:36:08.039 A great project of two communities 00:36:08.039 --> 00:36:15.140 coming together and sharing facilities and kind of addressing the issue of dwindling 00:36:15.140 --> 00:36:17.643 groundwater supplies. So really good to see them 00:36:17.668 --> 00:36:19.890 coming together and working on this project 00:36:19.890 --> 00:36:22.371 and really having enough capacity to provide for 00:36:22.396 --> 00:36:24.700 future growth, as well, as I think you shared with me. 00:36:24.700 --> 00:36:28.562 Director Paup? I appreciate thorough 00:36:28.587 --> 00:36:33.029 financial work you guys did in looking at the credit aspects 00:36:33.029 --> 00:36:41.900 of this from all angles. Gentlemen from Hudson Oaks would like to do address the board? 00:36:41.900 --> 00:36:44.224 I won't speak long, I promise. 00:36:44.249 --> 00:36:46.833 Chairman and Directors, my name is Patrick Lawler, I’m 00:36:46.858 --> 00:36:49.264 the city manager Hudson Oaks, Texas. My colleague, 00:36:49.289 --> 00:36:51.623 Brian Grimes, couldn't be here today. They have a 00:36:51.648 --> 00:36:54.061 city council meeting, so I told him I would gladly 00:36:54.086 --> 00:36:56.616 come to Austin, eat some good lunch, come talk to the 00:36:56.641 --> 00:36:59.088 board. So I just want to take a minute to thank the 00:36:59.113 --> 00:37:01.394 board, the work you guys do, obviously, Luis and 00:37:01.419 --> 00:37:03.788 the staff and the Executive Administrator and the 00:37:03.813 --> 00:37:06.251 work that they do. This obviously is a big regional 00:37:06.276 --> 00:37:08.632 project for Parker County, especially the Eastern 00:37:08.657 --> 00:37:11.035 sector of Parker County. We are one of the fastest 00:37:11.060 --> 00:37:13.517 growing counties in the state of Texas. The eastern 00:37:13.542 --> 00:37:16.210 sector is growing significantly by people a day, numbers 00:37:16.236 --> 00:37:18.633 of people, I think were like seven or eight a day. 00:37:18.658 --> 00:37:20.936 At this point. So we are doing everything we can 00:37:20.961 --> 00:37:23.423 to establish our future water supply. This contract 00:37:23.448 --> 00:37:25.932 for both Hudson Oaks and Willow Park establishes our 00:37:25.957 --> 00:37:28.547 full build-out water supply, which, as a city manager, 00:37:28.572 --> 00:37:30.713 I didn't think I would ever be able to say in 00:37:30.739 --> 00:37:33.147 any city that I work for. So we're blessed to both 00:37:33.172 --> 00:37:35.697 work with the Texas Water Development Board staff and 00:37:35.722 --> 00:37:38.165 also the city of Fort Worth. I think it's important 00:37:38.189 --> 00:37:40.466 to mention that the city of Fort Worth is by far 00:37:40.491 --> 00:37:42.855 one of the fairest, you know, water operators and 00:37:42.880 --> 00:37:45.455 wholesalers out there in the state of Texas. They have 00:37:45.481 --> 00:37:47.691 very happy customers and a very happy board of 00:37:47.716 --> 00:37:50.184 customers that they support. And so I wanted to make 00:37:50.209 --> 00:37:52.850 sure that the board heard that directly from a customer 00:37:52.875 --> 00:37:55.066 city as well. So we're extremely thankful. I'm 00:37:55.091 --> 00:37:57.483 happy to answer any questions if you do have them. 00:37:57.508 --> 00:37:59.829 But obviously we're here in support of this item. 00:37:59.829 --> 00:38:05.869 Thanks for coming. Be sure and tell Brian we said hi. 00:38:05.869 --> 00:38:10.130 Thank you for being here. All right. Is there a motion? 00:38:10.155 --> 00:38:13.169 Chairman, I move we adopt the proposed resolution by 00:38:13.194 --> 00:38:16.468 providing the city of Willow Park with financing from the 00:38:16.493 --> 00:38:20.032 Drinking Water State Revolving Fund for planning, acquisition, 00:38:20.057 --> 00:38:23.009 design and construction of water system improvements 00:38:23.009 --> 00:38:27.054 as recommended by our Executive Administrator. Is there a second? 00:38:27.079 --> 00:38:31.099 I second All in favor, say aye. Motion passes. Thank you, Luis. Next item, please. 00:38:31.099 --> 00:38:37.260 Consider authorizing the Executive Administrator to execute a contract 00:38:37.285 --> 00:38:43.138 with the Hidalgo County Drainage District Number One for a grant pursuant to Rider 00:38:43.162 --> 00:38:49.275 Number 25 of the General Appropriations Act. Mireya Loewe is here to present, and Raul 00:38:49.301 --> 00:38:52.451 Sesin, the general manager of Hidalgo County 00:38:52.476 --> 00:38:55.531 Drainage District Number One, would like to 00:38:55.530 --> 00:38:59.445 address the board after Miss Loewe's comment. 00:38:59.470 --> 00:39:05.106 Good afternoon, Chairman Lake, Director Jackson, Director Paup. My name 00:39:05.131 --> 00:39:08.291 is Mireya Loewe of the Executive Administrator’s 00:39:08.316 --> 00:39:10.871 staff. Hidlago County Drainage District 00:39:10.896 --> 00:39:16.519 Number One requests funding for the reimbursement of costs related to the Raymondville 00:39:16.545 --> 00:39:19.698 Drain Project pursuant to appropriation provided 00:39:19.723 --> 00:39:22.272 in Senate Bill One, Rider Number 25, of 00:39:22.298 --> 00:39:27.992 the 85th Legislature in 2017. Two similar grant commitments were previously provided to 00:39:28.017 --> 00:39:33.686 the district for the same Raymondville Drain Project, the first in August 2014 from the 00:39:33.711 --> 00:39:36.617 Water Assistance Fund per House Bill 1025 of 00:39:36.642 --> 00:39:39.523 the 83rd Legislature and in August 2015 from 00:39:39.547 --> 00:39:45.075 the General Revenue Fund per House Bill One, Rider Number 27 of the 84th Legislature, 00:39:45.100 --> 00:39:50.660 totaling about $10.1 million. The Raymondville Drain Project was authorized under the 00:39:50.685 --> 00:39:56.479 under the Water Resources Development Act, or WRDA, of 1986 and is being developed by the 00:39:56.504 --> 00:40:02.181 district under the regulations and guidelines of the U. S. Army Corps of Engineers. The 00:40:02.206 --> 00:40:08.052 full project will encompass a drainage channel system of approximately 60 miles to provide 00:40:08.077 --> 00:40:13.760 an alternate drainage conveyance for Hidalgo County and an improved drainage conveyance 00:40:13.785 --> 00:40:19.185 for the Northern Willis County during major storm events. Due to the sizing cost of 00:40:19.210 --> 00:40:24.687 approximately $418,000,000, the project has been divided into six major phases to be 00:40:24.712 --> 00:40:27.985 developed as funds become available. The Executive 00:40:28.010 --> 00:40:30.680 Administrator recommends approval of this 00:40:30.680 --> 00:40:34.324 funding request. This concludes my presentation. 00:40:34.349 --> 00:40:37.670 May I answer any questions? Questions, comments? 00:40:37.670 --> 00:40:42.192 Certainly a major project, and I think, as you shared 00:40:42.217 --> 00:40:46.408 with me, primarily to convey agricultural runoff from a storm event, 00:40:46.433 --> 00:40:50.667 so certainly an (???) project and working with the Corps of Engineers 00:40:50.692 --> 00:40:54.780 to get this important project kind of moving forward. So thank you. Director Paup? 00:40:54.780 --> 00:41:00.182 And the district's general manager would like to address the board. 00:41:00.207 --> 00:41:03.738 Good afternoon, Chairman Lake, Director Paup, 00:41:03.763 --> 00:41:06.916 and Director Jackson. Thank you. For the record, Raul 00:41:06.941 --> 00:41:10.283 Sesin, Hidalgo County Number One general manager. I just 00:41:10.308 --> 00:41:13.801 want to thank the board for the efforts and the partnership 00:41:13.826 --> 00:41:17.233 that we've developed in the past few years regarding this 00:41:17.258 --> 00:41:20.699 major project. It's a regional project for us, and Rainbow 00:41:20.723 --> 00:41:24.352 Drain does encompass Hildago County and Willacy County. We've 00:41:24.377 --> 00:41:27.571 already started a segment, 1.25 miles of construction, 00:41:27.596 --> 00:41:31.065 as interim construction for relief to our Phaseville drain 00:41:31.090 --> 00:41:34.357 area, which was heavily inundated back in 2015 and last 00:41:34.382 --> 00:41:37.837 year as well. With this creation of this temporary channel 00:41:37.863 --> 00:41:40.883 that will serve as retention for now until the full 00:41:40.908 --> 00:41:44.136 channel is fully developed through Willacy County will 00:41:44.161 --> 00:41:47.598 definitely help those areas that were heavily impacted. As 00:41:47.623 --> 00:41:50.897 you know, we're having a lot more heavy rains in Texas. 00:41:50.922 --> 00:41:54.405 Just last year and two months ago, we received two 500 Year 00:41:54.430 --> 00:41:57.897 Events in our area. So definitely any projects that we can 00:41:57.922 --> 00:42:01.305 continue to partner with the state and develop to address 00:42:01.330 --> 00:42:04.550 are draining needs we greatly welcome. Our project has 00:42:04.574 --> 00:42:08.003 gone through public hearings, right now. We had our public 00:42:08.028 --> 00:42:11.723 hearing June 11th and June 12th in Willacy and Hidalgo County. 00:42:11.748 --> 00:42:15.125 Our comment period ended July 26, so now we're addressing 00:42:15.149 --> 00:42:18.304 some comments that we did receive. So we can file our 00:42:18.330 --> 00:42:21.752 environmental document and submitted to the ASA office for 00:42:21.777 --> 00:42:25.299 the final review. Approximately about 180 days it takes for 00:42:25.324 --> 00:42:28.528 that period to take place. So we're hopeful within six 00:42:28.553 --> 00:42:31.945 months we’ll have our environmental document in place and 00:42:31.970 --> 00:42:35.279 continue our efforts to further develop this project. So 00:42:35.304 --> 00:42:38.820 again, thank you, Mireya and her staff, for working with us 00:42:38.845 --> 00:42:42.277 and the board as well for working with our county, Hidalgo 00:42:42.301 --> 00:42:45.628 County Drainage District, and on behalf of the judge and 00:42:45.654 --> 00:42:48.839 the commissioners, I greatly appreciate it. Thank you. 00:42:48.839 --> 00:42:53.604 Thank you for being here. Thank you. Is there a motion? 00:42:53.629 --> 00:42:57.859 Mr. Chairman, I move we authorized the Executive 00:42:57.859 --> 00:43:00.007 Administrator to execute a contract with Hidalgo 00:43:00.032 --> 00:43:01.849 County Drainage District Number One for a 00:43:01.849 --> 00:43:06.539 grant pursuant to Rider Number 25 of the General Appropriations Act, as recommended 00:43:06.539 --> 00:43:11.261 by our Executive Administrator. Is there a second? I second. 00:43:11.286 --> 00:43:15.480 All in favor say aye. Motion passes. Next item, please. 00:43:15.480 --> 00:43:18.487 Consider approving a request from the city of Ingleside 00:43:18.512 --> 00:43:21.171 to amend Texas Water Development Board Resolution 00:43:21.171 --> 00:43:27.829 Number 18-91 to convert the existing Clean Water State Revolving Fund commitment 00:43:27.829 --> 00:43:31.032 to a multiyear commitment and to extend the 00:43:31.057 --> 00:43:34.380 expiration period. Mireya Loewe will again present. 00:43:34.380 --> 00:43:37.664 Again, Mireya Loewe of the Executive 00:43:37.689 --> 00:43:41.072 Administrator’s staff. On August 14, 2018, the city of 00:43:41.097 --> 00:43:44.368 Ingleside received a $22,000,000 commitment from the 00:43:44.393 --> 00:43:47.577 Clean Water Stayed Revolving Fund for the planning, 00:43:47.602 --> 00:43:51.127 acquisition, design and construction of a new wastewater 00:43:51.152 --> 00:43:54.157 treatment plant. The commitment is set to expire 00:43:54.182 --> 00:43:57.385 at the end of this month. Since the commitment, the 00:43:57.410 --> 00:44:00.588 city has experienced several changes to its elected 00:44:00.614 --> 00:44:03.709 officials as well as to its management structure, 00:44:03.734 --> 00:44:06.990 which has delayed the implementation of the project. 00:44:07.015 --> 00:44:10.345 However, the city still is in need of the project and 00:44:10.369 --> 00:44:13.489 remains committed to its implementation. Thus, the 00:44:13.513 --> 00:44:16.787 city is requesting an extension to the expiration of 00:44:16.812 --> 00:44:19.999 its commitment. Furthermore, the city is requesting 00:44:20.025 --> 00:44:23.225 to change the commitment to a multiyear commitment. 00:44:23.250 --> 00:44:26.302 The city's plan is to first close on 2,795,000 in 00:44:26.326 --> 00:44:29.542 February of 2020 for the planning, acquisition, and 00:44:29.567 --> 00:44:33.006 design of the project, and once this is complete, close 00:44:33.031 --> 00:44:36.235 on the second installment of 19,205,000 in February 00:44:36.260 --> 00:44:39.315 20 of ‘23 for the construction of the project. To 00:44:39.341 --> 00:44:42.428 provide some additional flexibility to the city's 00:44:42.453 --> 00:44:45.885 request for closing dates, staff recommends setting the 00:44:45.909 --> 00:44:48.922 expiration of the first installment to April 30, 00:44:48.947 --> 00:44:52.181 2020, and the second installment to August 31, 2023. 00:44:52.207 --> 00:44:55.606 Breaking the commitment into two closings will provide 00:44:55.631 --> 00:44:58.510 the city time to fully evaluate its wastewater 00:44:58.535 --> 00:45:01.859 treatment alternatives as well as evaluate all of its 00:45:01.884 --> 00:45:05.122 other system needs so that they can more efficiently 00:45:05.147 --> 00:45:08.539 structure both the financing and implementation of all 00:45:08.564 --> 00:45:11.684 their needed projects. The Executive Administrator 00:45:11.710 --> 00:45:14.782 recommends approval of this funding request. This 00:45:14.806 --> 00:45:18.099 concludes my presentation. May I answer any questins? 00:45:18.099 --> 00:45:25.569 Questions, comments? Is there a motion? Chairman, I move we adopt 00:45:25.569 --> 00:45:27.728 the proposed resolution to amend the previously 00:45:27.753 --> 00:45:29.931 adopted Texas Water Development Board resolution 00:45:29.931 --> 00:45:35.710 number 18-91 to convert the city of Inglesides existing Clean Water State Revolving 00:45:35.710 --> 00:45:38.183 Fund commitment to a multiyear commitment and 00:45:38.208 --> 00:45:40.549 extend the expiration period as recommended 00:45:40.549 --> 00:45:44.835 by our Executive Administrator. Is there a second? I second. 00:45:44.860 --> 00:45:47.099 All in favor say aye. Motion passes. Thank you. Next item, please. 00:45:47.099 --> 00:45:54.549 Consider amending the previously adopted Texas Water Development 00:45:54.549 --> 00:46:01.511 Board Resolution Number 16-115 to modify the city of Pearland's Drinking Water State 00:46:01.511 --> 00:46:07.920 Revolving Fund Annual loan closing schedule. Nancy Richards is here to present. 00:46:07.920 --> 00:46:13.928 Good Afternoon. For the record, my name is Nancy Richards of the 00:46:13.953 --> 00:46:20.081 Executive Administrator’s staff. The city of Pearland is located in Brazoria County, 00:46:20.105 --> 00:46:25.811 about 20 miles south of the city of Houston, and provides water and wastewater 00:46:25.836 --> 00:46:31.661 service to approximately 104,000 residents. Back in November 17, 2016, the board 00:46:31.687 --> 00:46:37.544 approved, through Resolution 16-115, a $159,500,000 multiyear commitment for the 00:46:37.569 --> 00:46:43.762 planning, acquisition, design and construction of a 10,000,000 gallon per day surface 00:46:43.787 --> 00:46:49.559 water treatment plant. The project was scheduled to close in four series, 2017, 00:46:49.584 --> 00:46:55.259 2018, 2019, and 2020. The city has closed on 22 million, $250 million in 2017, 00:46:55.283 --> 00:47:01.495 and $8,650,000 in 2018. During the planning phase of the project, the city discovered 00:47:01.520 --> 00:47:07.129 environmental and easement issues at the proposed treatment plant site, which 00:47:07.154 --> 00:47:12.920 has caused a delay in the overall design and construction schedule. The city is 00:47:12.945 --> 00:47:18.686 requesting to amend its multi-year closing by shifting $85,000,000 from 2019 to 00:47:18.712 --> 00:47:24.340 2020 to allow the city to complete the environmental review and design of the 00:47:24.365 --> 00:47:30.473 project. The 2019 closing amount is 21,000,000 and the 2020 will now be 107,600,000. 00:47:30.498 --> 00:47:36.258 The overall commitment amount will not change and the request will more closely 00:47:36.283 --> 00:47:42.090 align with the Project Design and Construction schedule. Executive Administrator 00:47:42.090 --> 00:47:46.926 recommends approval and I'm available for questions. 00:47:46.951 --> 00:47:50.029 Questions, comments? Is there a motion? 00:47:50.029 --> 00:47:52.162 Mr Chairman, I move we adopt the 00:47:52.187 --> 00:47:54.380 proposed resolution to amend the previously adopted 00:47:54.380 --> 00:47:57.650 Texas Water Development Board Resolution number 00:47:57.675 --> 00:48:00.989 16-115 to modify the city of Pearland's Drinking 00:48:00.989 --> 00:48:04.355 Water State Revolving Fund Annual loan closing schedule 00:48:04.380 --> 00:48:07.180 as recommended by our executive administrator. 00:48:07.180 --> 00:48:11.952 Is there a second? I second. All in favor, say aye. 00:48:11.977 --> 00:48:15.400 Motion passes. Thank you, Nancy. Next item, please. The board will receive comments 00:48:15.400 --> 00:48:17.948 from the public at this time. There have not 00:48:17.973 --> 00:48:20.440 been any other visitors registered to speak 00:48:20.440 --> 00:48:24.460 to the board. If a member of the public would like to address the board, now is the time 00:48:24.460 --> 00:48:28.578 Seeing none, the board will not meet in closed 00:48:28.603 --> 00:48:32.520 session today, prusuant to the provisions of 00:48:32.520 --> 00:48:37.000 sections 551.071 or will not. This meeting of the 00:48:37.025 --> 00:48:41.569 Texas Water Development Board is hereby adjourned. 00:48:41.569 --> 00:48:46.799 The time is 2:52 p.m. Safe travels, everybody.