WEBVTT

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<v Chairman Lake>This meeting
of the Texas Water Development

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Board is called to order.
The time is 2:03 PM.

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For the record, my name is Peter Lake with
me today on the dais is Kathleen Jackson

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and Brooke Paup. Joe, first item.
<v Mr. Reynolds>Discussion regarding</v>

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outreach efforts and
activities by the board.

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<v Chairman Lake>Director Jackson?</v>
<v Director Jackson>Well, thank you, Mr Chairman.</v>

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I had a great meeting in Austin with
the Freese and Nichols engineers

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Michael Reedy, Kristen Millar and
Jay Scallon about ideas regarding

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implementing our new flood planning
and funding programs. Appreciate them

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coming in and spending time and giving
us their thoughts and ideas. I also

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spoke at the TNRIS GIS community meeting
in Austin. Always a great event

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and so great to see the folks who
work together collaboratively with a

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focus on good data. Because, as we
know, the better the data, the better

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the science, the better the science,
the better the policy. Provided the

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tea keynote address at the Associated
General Contractors Houston Area

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Luncheon about our flood programs and,
of course, a great job there by our

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contractors that are moving forward
and building projects, not only in

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the Houston area, but literally all
over the country and all over the

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world. Last week, I helped the staff
kickoff our series of stakeholder

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workshops in Orange, and it was really
great to see Representative Dade

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Phelan and Representative James White
there, and also participating and

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addressing the crowd and kind of inter
interacting with all the folks that

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came. A really great opportunity again
for stakeholders to provide their

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input and their thoughts and ideas early
in the process. Also attended our

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flood workshops in Tyler and Tomball,
and I was in Lake Jackson this

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morning. On the way, I stopped by to
visit the district offices of Senator

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Nichols and Senator Hughes in
Jacksonville and Tyler. Really appreciate

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them getting the word out about our
flood workshops to their constituents

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and also kind of moving forward
and participating in the process.

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Appreciate KETK News helping us to
again share what went on in Tyler at

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our flood workshops and the interview
I was able to do with them and

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appreciate the media attention, which
is always good, again, as kind of a

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follow up to our events. Heading to
San Angelo this afternoon for the

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workshop tomorrow morning. And I just
wanted to say congratulations to our

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staff. They are doing a fantastic job
of putting together these workshops.

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We've heard great comments from the
folks who are participating. The

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interactive comment, the opportunity
for them to kind of talk one on one,

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the small groups that they're doing.
And I know it's a big commitment

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on their part, but I
can tell you that it

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truly is making a difference.
<v Chairman Lake>I think that's</v>

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13 outreach events in 14 days.
<v Director Jackson>Fifteen.</v>

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<v Chairman Lake>15 in fourteen days.

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It's a lot. Director Paup?
<v Director Paup>Rave reviews</v>

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on the flood workshop. So, kudos
to our staff. They're amazing. If

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you saw the chart on who's going
where and which board members are

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gonna be where, it's just crazy.
So they're doing an excellent job.

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Since last board meeting, I spoke
at the Southern Regional Water

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Conference at the beautiful Texas
A&M Hotel and Conference Center

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College Station. It is brand new
and stunning. You know, the pool

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overlooks Kyle Field, so it's pretty
amazing. I didn't get to stay

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there, but I popped up to see, you
know, Kyle Field, because it's

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amazing. I also gave opening remarks
at the regional financial assistance

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workshop that our sister agency
TCEQ so kindly hosted for us due

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to the construction, as y'all have seen.
I had a great conversation

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with Commissioner Lindley after
that on ways that we could partner

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with our agency. I also attended
NCSL last week and had great

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conversations with other state leaders
on their infrastructure issues.

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Finally, as my fellow board members
also have done, I attended and

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gave intro remarks at our Flood
Workshop last week in Arlington,

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this morning in Kerville,
and tomorrow, I head

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to McAllen. So thank you.
<v Chairman Lake>Thank you. I had a</v>

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chance to meet with Sharlene
Leurig from the Texas

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Water Trade since our last meeting.
Also spoke at

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the J. P. Morgan Transportation
Utility Conference

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in New York, doing some
outreach with our investor

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base and sharing the good
work that we do here in

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Texas. Met with TCEQ to
learn about their Water

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Right Data Hub effort, which
is a very interesting

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initiative to help bring
transparency to surface

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water transactions. Also
attended some flood

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outreach workshops in El
Paso and Lubbock. Very much

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appreciate Senator Rodriguez
and Representative Gonzalez

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in El Paso and Senator
Perry in Lubbock for their

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hospitality and support.
And just this morning, met

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with Blair Fitzsimmons with
the Texas Agricultural

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Land Trust, and will be
leaving right after this

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to head to Rockport for
the next flood outreach

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meeting tomorrow morning.
There is no formal

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action required on this item.
Next item, please, Joe.

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Consider approving Internal
Audits Fiscal Year 2020

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Audit Plan. Michelle
Cooper is here to present.

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<v Michelle Cooper>Good Afternoon,
Chairman Lake, Director

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Jackson and Director Paup. My
name is Michelle Cooper, and I'm

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a member of the board's internal
audit staff. I'm here to

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present agenda item two which
is to consider approving the

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Internal Audit divisions Fiscal
Year 2020 Audit Plan. Before

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I begin, I'd like to take this
opportunity to express our

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sincere appreciation to
staff management, executive

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administration, and the board for
participating in this year's

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risk assessment process and
contributing towards the development

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of the audit plan. I'd also
like to confirm that the

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board's internal audits program
is carried out with objectivity

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and independence, and that
the division currently has

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the resources necessary to do
the work outlined in the plan.

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The Texas Internal Auditing
Act and Professional Auditing

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Standards requires the development
of an annual audit plan

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that's based on a systematic
assessment of risk for the

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agency. The act also requires
that the plan be presented to

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the board for review and approval.
A risk-based methodology

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was used to prioritize audit
coverage for Fiscal Year 2020,

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and agency operations were
analyzed based on multiple

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risk factors. We also incorporated
input from each of the

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board members, executive
administration, and other key staff

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into the analysis. The Fiscal
Year 2020 audit plan consists

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of the following projects. A
review of compliance with the

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Public Funds Investment Act,
a review of the contract

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solicitation process, and a review
of the financial analysis loan

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applications. By approving this
plan, you are approving the

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internal audit budget resources
allocated to these engagements

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as well as to various other internal
audit requirements, including

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follow up on prior audit
recommendations, consultations,

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investigative reviews and
other administrative audit

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activities. In conclusion,
internal audit is requesting

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approval of the 2020 audit
plan, and I'm happy

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to answer any questions.
<v Chairman Lake>Thank you, Michelle.</v>

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Questions, comments?
<v Director Jackson>Michelle, I just want</v>

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to thank you. That's a
great schedule that

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has been put together again to kind of look
and make sure that we're in adherence with

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all policies and procedures,
but kind of as a

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step out, I think
Internal Audit has taken

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a special focus on continuous improvement
and engagement of the staff and the board

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and kind of focused on that as an objective
as well. And I think that's so important.

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And I think you've done
a really great job of

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that. So thank you.
Thank you for the work

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you've done on this.
<v Chairman Lake>Hold on, Michelle.</v>

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Not quite finished yet.
But I appreciate your

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urge for expediency.
Wanna be efficient and

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quickly move through our agenda.
Director Pop?

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<v Director Paup>Michelle, I
never really thought I would say

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this, but I'm excited about an audit plan.
Those words have never come out of my

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mouth. But you guys have put together a terrific
schedule and I'm excited to read the findings.

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So thank you.
<v Chairman Lake>And moving
along, is there a motion?</v>

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<v Director Jackson>Chairman, I
move we approve the Internal

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Audit's Fiscal Year 2020 Audit Plan, as
recommended by our Executive Administrator.

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<v Chairman Lake>Is there a second?</v>
<v Director Paup>I second.</v>
<v Chairman Lake>All in favor say aye.</v>

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Motion passes. There you go, Michelle.
Next item, please.

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<v Mr. Reynolds>Consider
selection of bond counsel and

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authorize the Executive
Administrator to negotiate and enter

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into consultant contracts
for outside counsel

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services from September
1, 2019, through August

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31, 2021. Alexis Lorik
is here to present.

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<v Alexis Lorick>Good afternoon,
Chairman Lake Director

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Jackson and Director Paup.
My name is Alexis Lorik.

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I'm an Assistant General Counsel
in the General Counsel's

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office of the Executive
Administrator’s staff.

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Before you is considering the
selection of bond counsel

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and also to authorize the
Executive Administrator

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to negotiate and enter into
consultant contracts for

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outside counsel services
from September 1, 2019,

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through August 31, 2020. In
April 2019, EA staff submitted

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a request for qualifications
to the Centralized

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Master Bidders list for
outside counsel services.

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The board uses outside
bond counsel and outside

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disclosure counsel to assist
us with our bond transactions,

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We anticipate that in
the upcoming biennium,

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we will have five bond
issues along with associated

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redemptions or defeasances as necessary.
Per law, the

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board is required to first
select counsel, based on

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qualifications, and then
negotiate a fair and reasonable

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fee for their services.
Staff will recommend firms

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and a separate disclosure
counsel from the pool

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for each issuance as we
go forward over the next

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two years. So it is the
Executive Administrator’s

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recommendation that, to ensure
the best possible service

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and flexibility to handle
the volume of profession of

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anticipated transactions,
we recommend that the board

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select the following firms
listed alphabetically

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to serve in the bond counsel
pool and also to authorize

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the EA to negotiate and
enter into contracts for

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outside services from
September 1, 2019, to August

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31, 2021. Those firms are
Bracewell LLP, McCall,

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Parkerhurst, and Horton LLP,
Norton, Rose, Fulbright,

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US LLP, and Orrick, Carrington
and Sutcliffe LLP. That

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concludes my presentation. I'm
available for any questions.

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<v Chairman Lake>Questions, comments?
Is there a motion?

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<v Director Paup>Mr. Chairman,
I move we authorize

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the Executive Administrator
to negotiate and

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enter into consultant contracts for outside
counsel services from September 1, 2019,

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through August 31, 2021,
as recommended by our
Executive Administrator.

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<v Chairman Lake>Is there a second?</v>
<v Director Jackson>I second.</v>
<v Chairman Lake>All in favor say aye.</v>

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Motion passes. Thank you, Alexis.
Next item, please.

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<v Mr. Reynolds> Consider authorizing
the Executive Administrator

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to execute a contract with
Wells Fargo Brokerage

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Services LLC for the
purposes of registering

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and safekeeping political
subdivision obligations

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and to establish a
budget for this purpose.

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Leroy Lopez is here to present

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<v LeeRoy Lopez>Good afternoon, Chairman
Lake, Director Jackson, Director Paup.

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For the record, LeeRoy Lopez from
the Executive Administrator's

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staff. As mentioned we're requesting
authorization to execute a

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contract with Wells Fargo Brokerage
Services to provide financial

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custodial services for Fiscal Year 2020.
Wells Fargo has been

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providing these custodial service
for the agency and have met all our

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needs and have an excellent
performance history with us. The

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contract we are requesting authorization
to execute is for an amount

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not to exceed 300,000 for the Fiscal Year
2020. Thank you. Any questions?

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<v Chairman Lake>Thank you, LeeRoy.
Questions, comments. Is there a motion?

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<v Director Jackson>Chairman, I
move we authorize the Executive

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Administrator to execute
a contract with Wells

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Fargo Brokerage Services
LLC for the purpose

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of registering and safekeeping
political subdivision

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obligations and to
establish a budget for

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this purpose aas recommended
by our Executive Administrator.

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<v Chairman Lake>Is there a second?</v>
<v Director Paup>I second.</v>
<v Chairman Lake>All in favor say aye.</v>

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Thank you, Leroy.

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Next item, please.
<v Mr. Reynolds>Consider authorizing the</v>

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Executive Administrator
to negotiate and execute

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a contract in an amount
not to exceed $2,106,219

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for a continuation of
the Water Resources

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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.

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<v Nelun Fernando> Good Afternoon,
Chairman Lake, Director Jackson,

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and Director Paup. For the record,
I'm the Nelun Fernando of the

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Executive Administrator’s staff,
standing in for Dr. Mark Wenzel.

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Accurate water data provides the
foundation upon which Texas builds its

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water plans, manages its water
resources, and remains vigilant of

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dangerous flooding conditions. To
collect necessary data the TWDB enters

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into an annual contract with the U.
S. Geological Survey to maintain

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and operate stream and lake level
gauges in Texas. The first U. S

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Geological Survey stream gauge in
Texas was installed 130 years ago on

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the Rio Grande there, near El Paso,
and the State Federal Cooperative

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Program for Water Resources Investigations
started shortly thereafter,

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with the first jointly funded
gauge being installed in 1915. At

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present, the U. S Geological Survey
maintains a network of 642 stream

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and 152 lake level gauges providing
near real-time data across the

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state. The item before you today
requests authorization for the Executive

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Administrator to negotiate and
execute a contract in an amount not

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to exceed $2,106,219 for Fiscal
Year 2020, of which $1,742,484 will

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come from the TWDB, with the remainder
being contributed by the U.

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S Geological Survey. $1,484,484 of
the TWDB funding will come from

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general revenue, and 258,000 of
this will come from the Floodplain

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Management Account Fund Number 330.
A portion of the general revenue

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funds will support the operation and
maintenance of 53 stream flow and

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35 lake level gauges in Fiscal Year 2020.
These gauges contribute to

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TWDB’s objective of providing data
for planning and managing water

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resources. The remainder of the general
revenue funds and the Floodplain

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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
<v Chairman Lake>Thank you.
Questions, comments?

00:16:27.009 --> 00:16:30.528
<v Director Jackson>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
<v Chairman Lake>What is it you say? Good data.
<v Director Jackson>The better</v>

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.
<v Director Paup>You beat me to that.</v>

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
<v Chairman Lake>Thank you.
And is there a motion?

00:17:19.560 --> 00:17:21.908
<v Director Paup>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
<v Chairman Lake>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
<v Mr. Reynolds>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
<v Mark Wyatt>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
<v Chairman Lake>Thank you, Mark. Questions, comments?

00:19:59.580 --> 00:20:03.401
<v Director Jackson>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.
<v Chairman Lake>Director Paup?</v>

00:20:33.983 --> 00:20:37.880
Is there a motion?
<v Director Jackson>Chairman, I move we authorize</v>

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
<v Chairman Lake>Is there a second?</v>
<v Director Paup>I second</v>
<v Chairman Lake>All in favor, say</v>

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.
<v Mr. Reynolds>The board will take up</v>

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.
<v Chairman Lake>Welcome back, Mark.</v>

00:21:23.900 --> 00:21:27.240
<v Mark Wyatt>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
<v Chairman Lake>Question, comments?</v>
<v Director Jackson>Great presentation, and</v>

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
<v Mark Wyatt>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
<v Director Jackson>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.
<v Chairman Lake>Director Paup?</v>

00:31:09.780 --> 00:31:12.494
<v Director Paup>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
<v Chairman Lake>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
<v Director Paup>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.
<v Chairman Lake>Is there a second?</v>
<v Director Jackson>Second.</v>

00:31:49.505 --> 00:31:52.470
<v Chairman Lake>All in favor say aye.
Motion passes.

00:31:52.470 --> 00:31:56.159
Thanks, Mark. Next item, please.
<v Mr. Reynolds>Consider approving</v>

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
<v Luis Farias>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
<v Chairman Lake>Thank you.
Questions, comments?

00:36:05.466 --> 00:36:08.039
<v Director Jackson>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
<v Chairman Lake>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
<v Patrick Lawler>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
<v Director Jackson>Thanks for coming.
Be sure and tell Brian we said hi.

00:38:05.869 --> 00:38:10.130
<v Chairman Lake>Thank you for being here.
All right. Is there a motion?

00:38:10.155 --> 00:38:13.169
<v Director Jackson>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.
<v Chairman Lake>Is there a second?</v>

00:38:27.079 --> 00:38:31.099
<v Director Paup>I second</v>
<v Chairman Lake>All in favor, say aye. Motion passes.
Thank you, Luis. Next item, please.</v>

00:38:31.099 --> 00:38:37.260
<v Mr. Reynolds>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
<v Mireya Loewe>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?
<v Chairman Lake>Questions, comments?</v>

00:40:37.670 --> 00:40:42.192
<v Director Jackson>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.
<v Director Paup>Director Paup?</v>

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
<v Raul Sesin>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
<v Chairman Lake>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.
<v Chairman Lake>Is there a second?</v>
<v Director Jackson>I second.</v>

00:43:11.286 --> 00:43:15.480
<v Chairman Lake>All in favor say aye.
Motion passes. Next item, please.

00:43:15.480 --> 00:43:18.487
<v Mr. Reynolds>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
<v Mireya Loewe>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
<v Chairman Lake>Questions,
comments? Is there a motion?</v>
<v Director Jackson>Chairman, I move we adopt</v>

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.
<v Chairman Lake>Is there a second?
</v> <v Director Paup>I second.</v>

00:45:44.860 --> 00:45:47.099
<v Chairman Lake>All in favor say aye.
Motion passes. Thank you. Next item, please.

00:45:47.099 --> 00:45:54.549
<v Mr. Reynolds>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
<v Nancy Richards>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
<v Chairman Lake>Questions, comments?
Is there a motion?

00:47:50.029 --> 00:47:52.162
<v Director Paup>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
<v Chairman Lake>Is there a second?</v>
<v Director Jackson>I second.</v>
<v Chairman Lake>All in favor, say aye.</v>

00:48:11.977 --> 00:48:15.400
Motion passes. Thank you, Nancy. Next item, please.
<v Mr. Reynolds>The board will receive comments</v>

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.
<v Chairman Lake> If  a member of the public would
like to address the board, now is the time</v>

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.