WEBVTT 00:00:10.630 --> 00:00:13.564 This meeting of the Texas Water Development 00:00:13.576 --> 00:00:16.618 Board is hereby called to order. The time is 9:31 a.m. For the 00:00:16.630 --> 00:00:19.570 record, my name is Peter Lake. With me today at the dais are 00:00:19.582 --> 00:00:22.437 Kathleen Jackson and Brooke Paup. Joe, first item, please. 00:00:22.462 --> 00:00:24.850 Discussion regarding 00:00:24.862 --> 00:00:27.623 outreach efforts and activities by the board. 00:00:27.648 --> 00:00:29.007 Director Jackson. 00:00:29.031 --> 00:00:31.433 Well, thank you, Mr 00:00:31.445 --> 00:00:34.160 Chairman. Since our last meeting, I spoke at 00:00:34.172 --> 00:00:36.881 the Texas Association of Counties Conference 00:00:36.893 --> 00:00:39.131 on a panel with Chairman Dade Phelan 00:00:39.143 --> 00:00:44.278 and Jefferson County Judge Jeff Branick. I also spoke at the Texas DeSal Association 00:00:44.290 --> 00:00:46.155 conference on a panel from with 00:00:46.167 --> 00:00:48.953 representatives from Dow, the Port of Corpus 00:00:48.965 --> 00:00:51.247 Christi, and North Alamo Water Supply 00:00:51.259 --> 00:00:54.036 Corporation. And Mr Chairman, I want to thank 00:00:54.048 --> 00:00:59.132 you for allowing me to represent you at the Texas Farm and Ranch Lands Conservation 00:00:59.144 --> 00:01:03.737 Council meeting at Texas Parks and Wildlife. We were able to actually award 00:01:03.749 --> 00:01:08.596 close to $2 million for conservation easements, not only protecting habitat but 00:01:08.608 --> 00:01:13.617 also providing for ongoing benefits for ag in terms of production and farmland. So 00:01:13.629 --> 00:01:18.772 that was a great opportunity and appreciate being able to represent you in that. And 00:01:18.784 --> 00:01:21.552 attended the UT Engineering Expo at the Frank 00:01:21.564 --> 00:01:23.981 Erwin Center, continuing my engineering 00:01:23.993 --> 00:01:28.717 recruitment effort. And there were a huge number of students there, hopefully 00:01:28.729 --> 00:01:33.863 lots of potential candidates and great to have the opportunity, always, to interface 00:01:33.875 --> 00:01:38.415 with students. Had a great trip to the Panhandle and met with Lockney City 00:01:38.427 --> 00:01:43.263 Manager, Buster Poling, about some future water supply projects there. Spoke at 00:01:43.275 --> 00:01:48.245 the Texas Alliance for Water Conservation Field Day in Muncie. And toured some of 00:01:48.257 --> 00:01:53.205 their demonstration projects that the board is helping to fund. Also met with the 00:01:53.217 --> 00:01:57.995 city of Wolforth and their Mayor by Skype and their city manager and his team, 00:01:58.007 --> 00:02:02.719 and then toured the water treatment plant facility that's using EDR treatment 00:02:02.731 --> 00:02:05.081 technology, a very effective treatment 00:02:05.093 --> 00:02:07.879 technology for particularly small communities 00:02:07.891 --> 00:02:12.721 that are challenged with with water quality issues. Also met with Ransom Canyon 00:02:12.733 --> 00:02:17.756 City Manager and spoke at the West Texas City Manager's Association meeting. Great 00:02:17.768 --> 00:02:19.993 opportunity there to meet with small 00:02:20.005 --> 00:02:22.786 communities looking for funding and financing 00:02:22.798 --> 00:02:27.646 and technical assistance to move forward with their challenges on water supply. 00:02:27.658 --> 00:02:32.486 Traveled to Dallas to speak at the Society of Military Engineers at their Water 00:02:32.498 --> 00:02:35.209 Resources Summit. Always great to see those, 00:02:35.221 --> 00:02:37.641 and recognize them for their service to 00:02:37.653 --> 00:02:42.609 our country and also the work they're doing, particularly the Corps of Engineers, 00:02:42.621 --> 00:02:47.528 in moving forward water projects across our state. Spoke at the One Water Summit 00:02:47.540 --> 00:02:50.427 on a panel with the City of Austin City Manager 00:02:50.439 --> 00:02:52.795 and folks from the Mitchell Foundation 00:02:52.807 --> 00:02:57.530 and others. That was a great opportunity. They had people there from all over 00:02:57.542 --> 00:03:02.743 the country, and the panel was moderated by Scott Tong, I think is almost a celebrity 00:03:02.755 --> 00:03:07.422 in public radio. So a great opportunity of engagement and just talking about 00:03:07.434 --> 00:03:12.561 moving forward with challenges and how that we can do that in a way thats efficient. 00:03:12.573 --> 00:03:17.168 Spoke of the American Society of Civil Engineers conference on a panel with 00:03:17.180 --> 00:03:22.071 Representative Zwiener, Representative Israel, and Ida Musgrove with the City of 00:03:22.083 --> 00:03:24.856 Austin. That was moderated by ASCE's National 00:03:24.868 --> 00:03:27.108 President Robin Kemper and then also 00:03:27.120 --> 00:03:32.008 attended the ASCE board meeting and met with their newly installed officers, and 00:03:32.020 --> 00:03:37.041 again, a great, great work that I feel like our Texas section is doing, unique and 00:03:37.053 --> 00:03:41.705 different maybe from what some other states are doing in terms of addressing 00:03:41.717 --> 00:03:46.987 infrastructure, not only putting work into developing the scorecard, to kind of saying 00:03:46.999 --> 00:03:52.067 where we are, but doing work, active work, to improve the grade. So always great to 00:03:52.079 --> 00:03:56.978 meet with them and hear their thoughts and ideas and what their plans are moving 00:03:56.990 --> 00:04:02.004 forward. Also traveled to Lane City to meet with the LCRE staff, tour the Arbuckle 00:04:02.016 --> 00:04:06.739 Reservoir, see the great impact that that's having. And of course, that was a 00:04:06.751 --> 00:04:09.275 project that the board funded. Spoke on a 00:04:09.287 --> 00:04:12.004 panel of Women in Public Finance Conference. 00:04:12.016 --> 00:04:16.675 And Monday I was in Stole meeting with the Trinity Bay Conservation District 00:04:16.687 --> 00:04:21.280 General Manager, Jerry Shaden and Alan Simms, who's their engineer with LJA 00:04:21.292 --> 00:04:23.825 Engineering. They're actually very unique 00:04:23.837 --> 00:04:26.624 district and that they do potable water. They 00:04:26.636 --> 00:04:31.643 do waste water, and they also do drainage. So challenges in all those three areas. 00:04:31.655 --> 00:04:36.432 And, of course, an area that was that was impacted by the last two storms. And 00:04:36.444 --> 00:04:41.275 then yesterday, I was in Houston, speaking at Houston Stronger forum on a panel 00:04:41.287 --> 00:04:46.191 with Steve Costello with the City of Houston, Nim Kid with TDEM, Russ Poppy with 00:04:46.203 --> 00:04:51.213 Harris County Flood Control District, and Sherrie Wiley with the with the corps of 00:04:51.225 --> 00:04:56.308 Engineers. And, of course, Houston, moving forward, has had a number of challenges, 00:04:56.320 --> 00:05:01.336 anything from subsidence to water supply, and then, of course, now, with flooding. 00:05:01.348 --> 00:05:06.073 And I think the message that we're seeing, and clearly, the directive that we 00:05:06.085 --> 00:05:11.336 received from the Legislature, was the need to work together collaboratively. And that 00:05:11.348 --> 00:05:16.429 was very much the case in terms of the way that the panel made their presentations, 00:05:16.441 --> 00:05:21.092 the way that they engaged with with all of the supporters that were there. I 00:05:21.104 --> 00:05:26.010 mean, you could you could tell that it was a team effort, kind of moving forward 00:05:26.022 --> 00:05:31.215 again, to think about how they can address the many challenges, utilize the resources 00:05:31.227 --> 00:05:35.827 of the board and utilize the resources of the Texas Department of Emergency 00:05:35.839 --> 00:05:38.184 Management. So a real honor to be with 00:05:38.196 --> 00:05:40.917 Houston Stronger. And I think they're making 00:05:40.929 --> 00:05:45.595 a huge impact. Not only in Houston bu in that the greater metropolitan area. 00:05:45.620 --> 00:05:49.341 Extraordinary outreach efforts 00:05:49.353 --> 00:05:52.931 as usual. I'm sorry you have to go after her. 00:05:52.956 --> 00:05:58.051 I've gotta follow that. Good morning. Mr Chairman, since the last 00:05:58.063 --> 00:06:00.328 board meeting, I spoke at the Irving 00:06:00.340 --> 00:06:03.232 Transportation Summit with our esteemed former 00:06:03.244 --> 00:06:05.998 colleague, Carlos Rubenstein. I also gave an 00:06:06.010 --> 00:06:08.838 update on TWDBs financial assistance programs 00:06:08.850 --> 00:06:13.963 at the RGN Workshop in Frisco. I put back on my Attorney and GR Hat and provided a 00:06:13.975 --> 00:06:16.596 legislative update at the Texas Water Loss 00:06:16.608 --> 00:06:19.365 CLE in San Antonio. Special Thanks to Morgan 00:06:19.377 --> 00:06:24.410 Johnson, my co-presenter and partner in crime that morning. Finally, attended the 00:06:24.422 --> 00:06:29.573 Women in Public Finance Conference held last week in Austin. Many thanks to all the 00:06:29.585 --> 00:06:32.092 TWDB employees that made that conference 00:06:32.104 --> 00:06:34.870 such a success. It was truly an amazing day. 00:06:34.870 --> 00:06:41.015 Well, thank you, since our last board meeting, I have had several 00:06:41.027 --> 00:06:46.591 meetings locally here. Importantly with the Texas Treasury and Safekeeping 00:06:46.603 --> 00:06:52.235 Trust Company, our great partners in managing the SWIFT program. Tremendous 00:06:52.247 --> 00:06:57.817 group of folks over there, always grateful for their help and expertise. I 00:06:57.829 --> 00:07:03.903 participated in the investor road show ahead of our SWIFT Bond transaction. Think 00:07:03.915 --> 00:07:09.631 this may be the only time I even come close to matching your road travel. We 00:07:09.643 --> 00:07:15.649 did, I think, 6300 airline miles in seven cities and 15 or so different investor 00:07:15.661 --> 00:07:21.382 groups in four days, so that was a lot of road time, but the next week, that 00:07:21.394 --> 00:07:27.170 paid off the next week when we did our SWIFT Bond sale, had a very successful 00:07:27.182 --> 00:07:33.193 transaction, raised $873 million for water infrastructure in Texas at very, very 00:07:33.205 --> 00:07:39.061 attractive interest rates. I had a chance to participate in that with the team 00:07:39.073 --> 00:07:44.867 up in New York. I will talk more about this later. But kudos to the portfolio 00:07:44.879 --> 00:07:50.732 management team and our finance team. I had a chance to speak at the Texas and 00:07:50.744 --> 00:07:56.609 Southwestern Cattle Raisers Associationat their conference down in San Antonio 00:07:56.621 --> 00:08:02.035 and also spoke with Dr Johnson from the city of Tyler about the needs up 00:08:02.047 --> 00:08:07.918 there. There is no formal action required on this item. Next item, please, Joe 00:08:07.943 --> 00:08:12.707 Consider approving by resolution, delegation to the 00:08:12.719 --> 00:08:17.495 Executive Administrator and Development Fund Manager, the authority to 00:08:17.507 --> 00:08:22.277 utilize pre-payments and other lawfully available funds to pay, redeem 00:08:22.289 --> 00:08:27.004 and defease general obligation bonds. David Duran is here to present. 00:08:27.029 --> 00:08:30.861 Good morning, Chairman Lake, Director Jackson, 00:08:30.873 --> 00:08:34.964 Director Paup. For the record, I'm David Duran with the Executive 00:08:34.976 --> 00:08:39.062 Administrators staff. With this item, the Executive Administrator 00:08:39.074 --> 00:08:42.986 recommends delegating authority to the Executive Administrator 00:08:42.998 --> 00:08:47.143 and development Fund Manager to utilize pre-payment of the board's 00:08:47.155 --> 00:08:50.939 loans to pay, redeem and defease general obligation bonds of 00:08:50.951 --> 00:08:54.605 the Development Fund 2. As you know, from time to time and 00:08:54.617 --> 00:08:58.780 depending on market conditions, borrowers pre-pay their loans with 00:08:58.792 --> 00:09:02.556 the board and that reduction of future revenues can create a 00:09:02.568 --> 00:09:06.467 mismatch in program cash flows. There are also IRS regulations 00:09:06.479 --> 00:09:10.558 affecting the board and the borrowers, which provide for specific 00:09:10.570 --> 00:09:14.351 time constraints for dispositioning the pre-payments that we 00:09:14.363 --> 00:09:18.626 receive.So using loan repayments to redeem bonds can be an effective 00:09:18.638 --> 00:09:22.478 tool to manage that. The proposed delegation of authority for 00:09:22.490 --> 00:09:26.759 this item expires on September 30, 2020. The Executive Administrator 00:09:26.771 --> 00:09:30.369 recommends approval. I can answer any questions you have. 00:09:30.394 --> 00:09:33.738 Thank you, David. Questions, comments? 00:09:33.763 --> 00:09:38.643 I believe he shared with me that, historically, the Executive 00:09:38.655 --> 00:09:43.427 Administrator has received delegation on an annual basis since fiscal year 2010 00:09:43.439 --> 00:09:48.384 and the authority was expanded to include the development manager in 2015. So this 00:09:48.396 --> 00:09:53.234 is something we've done historically, and a practice we currently have in place. 00:09:53.259 --> 00:09:54.799 - Yes, - yes, thank you. 00:09:54.825 --> 00:09:55.922 Director Paup? Is there a motion 00:09:55.947 --> 00:09:59.805 Chairman, I move we adopt the proposed resolution to delegate 00:09:59.817 --> 00:10:03.357 the Executive Administrator and the development fund manager the authority 00:10:03.369 --> 00:10:06.949 to utilize pre-payments and other lawful available funds to pay, redeem and 00:10:06.961 --> 00:10:10.790 defease general obligation bonds, as recommended by our Executive Administrator. 00:10:10.790 --> 00:10:13.966 Is there a second? 00:10:13.991 --> 00:10:14.911 I second. 00:10:14.936 --> 00:10:17.671 All in favor say aye. Ayes have it. Next item, please. 00:10:17.696 --> 00:10:20.999 Fiscal Year 2019 Pre-Payment and 00:10:21.011 --> 00:10:24.325 Bond Redemption Report. Again, Mr Duran to present. 00:10:24.350 --> 00:10:27.743 I'm David Duran with the Executive 00:10:27.755 --> 00:10:31.297 Administrator's staff. This item is a report on the 00:10:31.309 --> 00:10:34.845 pre-payments received by the board and bonds called 00:10:34.857 --> 00:10:38.200 during Fiscal Year 2019. 437 million was prepaid 00:10:38.212 --> 00:10:41.744 in 2019 which is the largest total principal amount 00:10:41.756 --> 00:10:44.892 prepaid in several years. And we may continue 00:10:44.904 --> 00:10:48.306 to see a large volume of pre-payments, especially 00:10:48.318 --> 00:10:51.596 while rates remain at near-historical lows. The 00:10:51.608 --> 00:10:55.266 Defund and Clean Water program saw the largest amount 00:10:55.278 --> 00:10:58.472 of pre-payments and, as the Defund program has 00:10:58.484 --> 00:11:01.876 less demand for relending and had callable bonds, 00:11:01.888 --> 00:11:05.224 last year during the year, a large proportion of 00:11:05.237 --> 00:11:08.626 those prepayments were used to call bonds. So the 00:11:08.638 --> 00:11:12.312 previous items delegation of authority was very, very 00:11:12.324 --> 00:11:15.855 useful for that. There's no action required in this 00:11:15.867 --> 00:11:19.070 item, and I can answer any questions you have. 00:11:19.070 --> 00:11:23.298 Question. Comments. Is there a motion? No formal 00:11:23.310 --> 00:11:27.742 action. I'm sorry. Thank you for the update. Next item, please, Joe. 00:11:27.767 --> 00:11:31.514 Consider approving by resolution the 00:11:31.526 --> 00:11:35.688 establishment of the lending rates scales for the State Water 00:11:35.700 --> 00:11:39.923 Implementation Revenue Fund for Texas financing structures, to 00:11:39.935 --> 00:11:43.969 be effective October 3, 2019. Mr. Duran, again, to present. 00:11:43.994 --> 00:11:46.568 Once again, this is David Duran 00:11:46.580 --> 00:11:48.892 with the Executive Administrator's Staff. 00:11:48.904 --> 00:11:51.319 The Executive Administrator is recommending 00:11:51.331 --> 00:11:53.869 adoption of lending rate scales for borrowers 00:11:53.881 --> 00:11:56.734 receiving funds from the State Water Implementation 00:11:56.746 --> 00:11:58.840 Revenue Fund for Texas, revenue bonds 00:11:58.852 --> 00:12:01.325 Series 2019A and B. As mentioned earlier, on 00:12:01.337 --> 00:12:03.657 Tuesday, September 24th, the board priced 00:12:03.669 --> 00:12:06.134 Series 2019A and B bond to provide new money 00:12:06.146 --> 00:12:08.349 proceeds for borrowers closing on board 00:12:08.361 --> 00:12:10.943 committed projects that are in the state water 00:12:10.955 --> 00:12:13.439 plan. The board will issue approximately 859 00:12:13.451 --> 00:12:16.030 million in bonds to generate approximately 972 00:12:16.042 --> 00:12:18.579 million in proceeds to provide the borrowers, 00:12:18.591 --> 00:12:20.845 and the bonds were issued at a 3.03 true 00:12:20.857 --> 00:12:23.509 interest costs, which the lowest we received in 00:12:23.521 --> 00:12:26.038 SWIFT so far. The board's bonds will close on 00:12:26.050 --> 00:12:28.414 October 10th and SWIFT borrowers will have 00:12:28.426 --> 00:12:30.948 until December 6 to close on their bonds. The 00:12:30.960 --> 00:12:33.385 proposed lending rates are calculated based 00:12:33.397 --> 00:12:35.972 on the yield to maturity on our bonds less the 00:12:35.984 --> 00:12:38.351 applicable subsidies previously adopted by 00:12:38.363 --> 00:12:40.999 the board in April, plus three basis points for 00:12:41.011 --> 00:12:43.383 the board's cost of issuance for borrowers 00:12:43.395 --> 00:12:48.070 utilizing the 2019A proceeds and four basis points for borrowers utilizing the 2019B 00:12:48.082 --> 00:12:50.496 proceeds. With the adoption of the proposed 00:12:50.508 --> 00:12:53.210 lending rates, staff has estimated that entities 00:12:53.222 --> 00:12:55.964 will realize savings of approximately 171 million 00:12:55.976 --> 00:12:58.234 by using the SWIFT program and inclusive 00:12:58.246 --> 00:13:02.938 of all previous SWIRFT bond issuances that would be savings of over a $1,000,000,000 00:13:02.963 --> 00:13:08.639 Since inception of the SWIFT program. 00:13:08.664 --> 00:13:19.210 Since inception. The Executive Administrator 00:13:19.222 --> 00:13:29.252 recommends approval. I can answer any questions you have 00:13:29.277 --> 00:13:30.463 Questions, comments? 00:13:30.488 --> 00:13:34.498 Well, an amazing job and appreciate the work of the 00:13:34.510 --> 00:13:38.365 staff, and also the hard work of the Chairman in going and doing the 00:13:38.377 --> 00:13:42.394 outreach. And like you said, I mean, the lowest interest, true interest 00:13:42.406 --> 00:13:46.155 rate, that we've ever received. Savings for our borrowers. But you 00:13:46.167 --> 00:13:50.236 know, a measure of our success, I've always kind of believed, was to see 00:13:50.248 --> 00:13:54.106 these projects moving forward, and it certainly, you know, it a is a 00:13:54.118 --> 00:13:58.026 carrot. It's an incentive. And it encourages people to take advantage 00:13:58.038 --> 00:14:02.069 of these low interest rates, build it with today's dollars, and kind of 00:14:02.081 --> 00:14:05.919 build in, you know, this resiliency that we know is so needed by the 00:14:05.931 --> 00:14:10.115 state. So, you know, I appreciate the work of the staff, you know, a great 00:14:10.127 --> 00:14:14.250 outcome here. And I think something that really kind of sets the path for 00:14:14.262 --> 00:14:18.174 the future, for others to kind of look towards the SWIFT and continue 00:14:18.186 --> 00:14:22.305 to utilize it for the projects that they have in the state water planning 00:14:22.317 --> 00:14:26.114 process. And also, quite frankly, to participate in the state water 00:14:26.126 --> 00:14:30.140 planning process. Because there's such a, you know, a great opportunity 00:14:30.152 --> 00:14:33.843 here to get low interest financing for their projects. Thank you. 00:14:33.868 --> 00:14:35.199 Director Paup. 00:14:35.223 --> 00:14:39.811 No, just a tremendous job. And thanks to the Chairman and to Jeff 00:14:39.823 --> 00:14:44.534 and to Rebecca and Georgia, and the whole team that's involved in this. It's truly a 00:14:44.546 --> 00:14:47.010 group effort, and it's the active management 00:14:47.022 --> 00:14:49.278 that makes the SWIFT and the SWIRFT just 00:14:49.290 --> 00:14:51.816 the gold standard of infrastructure financing 00:14:51.828 --> 00:14:53.979 programs in the country. So thank you. 00:14:54.004 --> 00:14:58.489 Absolutely. I'll echo both of your comments 00:14:58.501 --> 00:15:02.408 and express my thanks for the entire TWDB team. From 00:15:02.420 --> 00:15:06.690 the Water Science component that is the foundation of our 00:15:06.702 --> 00:15:10.983 planning. Of course, the State Water Plan is is the guide 00:15:10.995 --> 00:15:15.097 book for the financing. This is all for projects in the 00:15:15.109 --> 00:15:19.516 state water plan. This is the culmination of efforts across 00:15:19.528 --> 00:15:23.634 our agency across years and years of work. So thanks to 00:15:23.646 --> 00:15:27.839 the entire staff for a job well done. Is there a motion? 00:15:27.839 --> 00:15:31.625 Mr. Chairman, I move we adopt the proposed resolution 00:15:31.637 --> 00:15:34.846 by establishing the lending rate scales for the State Water 00:15:34.858 --> 00:15:38.357 Implementation Revenue Fund for Texas financing structures, to be 00:15:38.369 --> 00:15:42.305 effective October 3, 2019, as recommended by our Executive Administrator. 00:15:42.330 --> 00:15:44.503 Is there a second? 00:15:44.528 --> 00:15:45.729 I second. 00:15:45.755 --> 00:15:47.654 All in favor, say aye. Motion 00:15:47.666 --> 00:15:49.334 passes? Thanks, David. Next item, please 00:15:49.358 --> 00:15:55.006 Considered approving the Texas Water Development from 00:15:55.018 --> 00:16:00.988 Development Board Investment Policy and Strategies. April Weiss will present. 00:16:01.013 --> 00:16:05.066 Good Morning, Chairman Lake, Director Jackson, Director 00:16:05.078 --> 00:16:09.199 Paup. For the record, I am April Weiss with the Executive Administrator 00:16:09.211 --> 00:16:13.728 staff. This morning I'm requesting approval of the Fiscal Year 2020 Investment 00:16:13.740 --> 00:16:17.639 Policy and Strategies developed in accordance with the Public Funds 00:16:17.651 --> 00:16:21.878 Investment Act. The Texas Water Development Fund, Texas Water Development 00:16:21.890 --> 00:16:25.900 Boards Investment policy defines our investment principles, portfolio 00:16:25.912 --> 00:16:30.089 objectives and authorized investments. Additionally, the policy contains 00:16:30.101 --> 00:16:34.461 guidance regarding staff training and quarterly reporting requirements. The 00:16:34.473 --> 00:16:38.520 policy defines the investment officers as the chief financial officer, 00:16:38.532 --> 00:16:42.533 the development fund manager, and the director of accounting. They're 00:16:42.545 --> 00:16:46.885 required to review the policy annually and provide any recommended changes. 00:16:46.897 --> 00:16:51.019 I am responsible for preparing the quarterly investment reports and for 00:16:51.031 --> 00:16:55.482 maintaining the investment policy. We manage this responsibility on an annual 00:16:55.494 --> 00:16:59.556 cycle. The investment officers have reviewed the investment policy and 00:16:59.568 --> 00:17:03.853 strategies provided to you and have not proposed any changes. This version 00:17:03.865 --> 00:17:07.990 is consistent with the Fiscal Year 2019 policy. Is there any questions? 00:17:07.990 --> 00:17:10.819 Questions? Comments? 00:17:10.844 --> 00:17:12.548 - No changes? - No changes. 00:17:12.573 --> 00:17:13.850 Is there a motion? 00:17:13.875 --> 00:17:16.542 Chairman? I move we approved 00:17:16.554 --> 00:17:19.014 the Fiscal Year 2020 Texas Water Development 00:17:19.026 --> 00:17:23.519 Board Investment Policy and Strategies, as recommended by Executive Administrator. 00:17:23.544 --> 00:17:24.938 - Is there a second? - I second. 00:17:24.963 --> 00:17:27.384 All in favor, say aye. Motion 00:17:27.396 --> 00:17:29.569 passes. Thanks, April. Next item. Please. 00:17:29.594 --> 00:17:34.287 Consider approving material changes to contracts for 00:17:34.299 --> 00:17:38.742 goods and services executed during the third and fourth quarters of 00:17:38.754 --> 00:17:43.616 Fiscal Year 2019 and the contract and performance report for the third and 00:17:43.628 --> 00:17:48.242 fourth quarter of Fiscal Year 2019. Angela Wallace is here to present. 00:17:48.267 --> 00:17:52.004 Good Morning, Chairman Lake, Director Jackson and 00:17:52.016 --> 00:17:55.709 Director Paup. For the record, my name's Angela Wallace, and I'm a 00:17:55.721 --> 00:17:59.574 member of the Executive Administrator's staff. The agenda item before 00:17:59.586 --> 00:18:03.452 you today is for consideration of a report regarding material changes 00:18:03.464 --> 00:18:07.314 to contracts for goods and services awarded under Chapter 2155 of the 00:18:07.326 --> 00:18:11.077 Texas Government Code executed during the third and fourth quarters 00:18:11.089 --> 00:18:14.614 of Fiscal Year 2019. And also, for your consideration, material 00:18:14.626 --> 00:18:18.329 encompassing performance and contract monitoring for new contracts 00:18:18.341 --> 00:18:22.017 that were executing during the third and fourth quarters. Material 00:18:22.029 --> 00:18:25.937 changes included an Attachment One of the report are those that extend 00:18:25.949 --> 00:18:29.411 the length of or postpone the completion of a contract for six 00:18:29.423 --> 00:18:33.227 months or more, or increase the total consideration to be paid under 00:18:33.239 --> 00:18:36.973 the contract by at least 10%. The performance reporting included in 00:18:36.985 --> 00:18:40.621 Attachment 2 of the report conforms with TWDB contacting policies 00:18:40.633 --> 00:18:44.539 and associative rules. The Executive Administrator recommends approval 00:18:44.551 --> 00:18:48.083 of this item, and I'm available for any questions you may have. 00:18:48.108 --> 00:18:51.276 Questions. Comments. Is there a motion? 00:18:51.301 --> 00:18:55.019 Mr Chairman? I move we approve material changes to contracts 00:18:55.031 --> 00:18:58.475 for goods and services executed during the third and fourth quarters of 00:18:58.487 --> 00:19:02.045 Fiscal Year 2019 and the contract and performance report for the third and 00:19:02.057 --> 00:19:05.912 fourth quarter of Fiscal Year '19 as recommended by our Executive Administrator. 00:19:05.937 --> 00:19:07.810 - Is there a second? - I second. 00:19:07.835 --> 00:19:09.749 All in favor say aye. Motion 00:19:09.761 --> 00:19:11.562 passes. Thanks, Angela. Next item. Please. 00:19:11.588 --> 00:19:18.040 Consider approving an amendment to the original 00:19:18.052 --> 00:19:24.902 Data Center Services contract to extend the contract in date to August 00:19:24.914 --> 00:19:31.275 31, 2021, and identify the maximum cost for the Fiscal Years 2023 00:19:31.287 --> 00:19:38.240 through 2021 biennium at $2,520,655. Dustin Roberts is here to present. 00:19:38.240 --> 00:19:43.261 Good Morning, Chairman Lake, Director Jackson, Director Paup. 00:19:43.273 --> 00:19:47.992 For the record, my name is Dustin Roberts of the Executive Administrator's 00:19:48.004 --> 00:19:52.780 Staff. This item is to consider approving an amendment to the original data 00:19:52.792 --> 00:19:57.391 center service's contract. In 2005, legislation was passed directing the 00:19:57.403 --> 00:20:01.734 Department of Information Resources to consolidate state agencies IT 00:20:01.746 --> 00:20:06.783 infrastructure to reduce statewide costs for IT services, modernize aging state 00:20:06.795 --> 00:20:09.613 infrastructure and increase overall security 00:20:09.625 --> 00:20:11.889 and disaster recovery capabilities. 00:20:11.901 --> 00:20:16.691 Today, the Data Center Service's program serves over 200 state agencies and 00:20:16.703 --> 00:20:21.655 institutions of higher education, including the Texas Water Development Board. 00:20:21.667 --> 00:20:26.632 The fund requests to sustain our data center server environment will be a part 00:20:26.644 --> 00:20:31.665 of the budget process for future biennia, and, if approved, periodic amendments 00:20:31.677 --> 00:20:36.270 to the original data center services contract will come to the board for 00:20:36.282 --> 00:20:41.174 approval. This proposed amendment extends the contract end date to August 31, 00:20:41.186 --> 00:20:46.342 2021, and identifies the maximum cost for the 2020 - 2021 biennium at $2,520,655. 00:20:46.354 --> 00:20:51.189 The Executive Administrator recommends approval of this item. This concludes 00:20:51.201 --> 00:20:55.860 my presentation, and I'm happy to answer any questions that you may have. 00:20:55.885 --> 00:20:57.424 Questions, comments? 00:20:57.449 --> 00:20:59.779 Just a great job I think we do on 00:20:59.791 --> 00:21:02.307 behalf of all of the agencies that it supports. Thank you. 00:21:02.332 --> 00:21:03.837 Is there a motion? 00:21:03.863 --> 00:21:08.903 Chairman, I move we approve the amendment to the 00:21:08.915 --> 00:21:14.186 original Data Center Service's contract to extend the contract end date 00:21:14.198 --> 00:21:19.427 to August 31, 2021, and identify the maximum costs for Fiscal Year 2021 00:21:19.439 --> 00:21:24.534 biennium at $2,520,655 as recommended by our Executive Administrator. 00:21:24.559 --> 00:21:27.160 - Is there a second? - I second. 00:21:27.160 --> 00:21:30.598 All in favor say aye. Motion 00:21:30.610 --> 00:21:33.910 passes. Thank you, Dustin. Next item, please 00:21:33.910 --> 00:21:37.773 Consider approving for publication in the Texas 00:21:37.785 --> 00:21:41.544 Register a rulemaking related to the memorandum of understanding 00:21:41.556 --> 00:21:45.279 between the Texas Water Development Board and the Texas Division 00:21:45.291 --> 00:21:48.623 on Emergency Management, Annette Moss is here to present. 00:21:48.648 --> 00:21:52.572 Chairman Lake, Director Jackson, and Director 00:21:52.584 --> 00:21:56.584 Paup. I'm Annette Mass of the Executive Administrator's staff. 00:21:56.596 --> 00:22:00.463 This item for your consideration is the authorization of the 00:22:00.475 --> 00:22:04.354 publication of proposed rule amendment to Chapter 355 of the 00:22:04.366 --> 00:22:08.612 Administrative Code related to the memoranda of understanding. The 00:22:08.624 --> 00:22:12.690 Legislature directed the TWDB to provide funding from the newly 00:22:12.702 --> 00:22:16.954 created Texas Infrastructure Resiliency Fund to the Texas Division 00:22:16.966 --> 00:22:20.784 of Emergency Management for them to use to provide matching 00:22:20.796 --> 00:22:25.031 funds for two FEMA programs that the Emergency Management Division 00:22:25.043 --> 00:22:28.720 administers. The Executive Administrator and the chief of 00:22:28.732 --> 00:22:32.783 the division have developed two memoranda of understanding, one 00:22:32.795 --> 00:22:36.731 for each of the federal programs. These memoranda, as well as 00:22:36.743 --> 00:22:40.664 all of our MOUs with other state agencies, are required to be 00:22:40.676 --> 00:22:44.800 incorporated into our rules. The Executive Administrator request 00:22:44.812 --> 00:22:48.929 your approval to publish the two memoranda in the Texas Register 00:22:48.941 --> 00:22:52.690 as proposed rules which will open a 30-day comment period. 00:22:52.715 --> 00:22:54.208 questions, comments? 00:22:54.232 --> 00:22:57.676 Just appreciate the work on the 00:22:57.688 --> 00:23:01.077 staff of moving this forward. It's a, of course, a 00:23:01.089 --> 00:23:04.672 huge issue, but also a huge opportunity to have these 00:23:04.684 --> 00:23:08.146 matching funds for much needed work that is ongoing 00:23:08.158 --> 00:23:11.855 surrounding Harvey and the other storms that we've had, 00:23:11.867 --> 00:23:15.641 so again appreciate you working this forward, and again, 00:23:15.653 --> 00:23:18.958 the funding will come through the board, but will 00:23:18.970 --> 00:23:22.684 actually be scored and administered by TDEM. Thank you. 00:23:22.709 --> 00:23:25.051 Excellent work, Annette. This 00:23:25.063 --> 00:23:27.267 is an important first step in getting these 00:23:27.279 --> 00:23:29.678 huge bills implemented. So thank you. And we're 00:23:29.690 --> 00:23:32.000 very happy to work with TDEM on this as well. 00:23:32.025 --> 00:23:35.977 Thank you for the hard work on this. And appreciate, 00:23:35.989 --> 00:23:40.236 emphasize how much we appreciate the great working relationship with TDEM. 00:23:40.248 --> 00:23:44.403 Chief Kidd and his entire team over there have been great partners so far 00:23:44.415 --> 00:23:48.358 and look forward to doing more good work with him. Is there a motion? 00:23:48.383 --> 00:23:52.224 Mr. Chairman, I move we approv for publication 00:23:52.236 --> 00:23:56.028 in the Texas Register a rulemaking related to the memoranda of 00:23:56.040 --> 00:24:00.036 understanding between the TWDB and the Texas Division of Emergency 00:24:00.048 --> 00:24:03.577 Management, as recommended by our Executive Administrator. 00:24:03.602 --> 00:24:06.503 - Is there a second? - I second. 00:24:06.528 --> 00:24:08.367 All in favor say aye. Motion 00:24:08.379 --> 00:24:10.190 passes. Thanks, Annette.. Next item, please. 00:24:10.190 --> 00:24:16.910 Consider authorizing the Executive Administrator to negotiate and 00:24:16.922 --> 00:24:20.554 execute contracts as approved and directed by 00:24:20.566 --> 00:24:23.972 the Federal Emergency Management Agency in 00:24:23.984 --> 00:24:30.592 a total amount not to exceed $36,798,460.93 for subgrants from the Flood Mitigation 00:24:30.604 --> 00:24:37.460 Assistance Grant program upon notification of award. Kathy Hopkins is here to present. 00:24:37.485 --> 00:24:43.484 Good Morning Chairman Lake, Director Jackson, Director 00:24:43.496 --> 00:24:49.590 Paup. For the record, I'm Kathy Hopkins of the Executive Administrator’s 00:24:49.602 --> 00:24:55.690 staff. The Texas Water Development Board is the state agency tasked with 00:24:55.702 --> 00:25:01.802 administering the Flood Mitigation Assistance Grant program on behalf of 00:25:01.814 --> 00:25:07.899 the Federal Emergency Management Agency. The Flood Mitigation Assistance 00:25:07.911 --> 00:25:13.925 Grant Program assists states and communities by providing federal funds 00:25:13.937 --> 00:25:20.112 for cost effective measures to reduce or eliminate the long term risks of 00:25:20.124 --> 00:25:26.143 flood damage to flood prone structures insured under the National Flood 00:25:26.155 --> 00:25:32.573 Insurance Program. For Federal Fiscal Year 2018, the Texas Water Development 00:25:32.585 --> 00:25:38.346 Board reviewed and afford flood mitigation assistant subapplications 00:25:38.358 --> 00:25:44.866 along with the Texas Water Development Board’s Management Cost subapplication 00:25:44.878 --> 00:25:50.478 to FEMA for review and approval. The Texas Water Development Board 00:25:50.490 --> 00:25:56.410 was notified by FEMA on June 19th of this year that 13 subapplications 00:25:56.422 --> 00:26:02.604 were identified for further review. Subapplications selected by FEMA were 00:26:02.616 --> 00:26:08.792 for Jefferson County Drainage District Number Six, Harden County, and the 00:26:08.804 --> 00:26:14.658 cities of Friendswood, Houston, Jersey Village, and Nassau Bay. These 00:26:14.670 --> 00:26:18.405 subapplications will receive $32,000,551.725 00:26:18.417 --> 00:26:20.915 federal funds, with the total 00:26:20.927 --> 00:26:26.849 project cost of $36,798,460. The community match requirement for these 00:26:26.861 --> 00:26:33.363 subapplications is $4,246,735. In addition to the 13 subapplications selected 00:26:33.375 --> 00:26:39.136 by FEMA, the TWDB’s management costs application was selected in the 00:26:39.148 --> 00:26:45.145 amount of $1,721,148 in federal funds, with the state requirement match 00:26:45.157 --> 00:26:48.901 of $274,602. There are eight subapplications 00:26:48.913 --> 00:26:51.334 that will mitigate 180 flood 00:26:51.346 --> 00:26:57.349 prone structures by acquisitions or elevations. There are four drainage 00:26:57.361 --> 00:27:03.209 projects. The applications that would protect 841 structures. And one 00:27:03.221 --> 00:27:08.966 advanced assistance of application that will help identify and study 00:27:08.978 --> 00:27:15.153 mitigation solutions. Summaries of each of these subapplications proposed 00:27:15.165 --> 00:27:22.085 mitigation activities are included in your board item. The executive administrator 00:27:22.097 --> 00:27:27.944 recommends approval from the board to negotiate and execute contracts 00:27:27.956 --> 00:27:33.871 with the entities as approved and directed by FEMA, for a total amount 00:27:33.883 --> 00:27:39.726 of $36,000,798.44, $60, let me start again. $36,798,460 for subgrants 00:27:39.738 --> 00:27:45.826 from FEMA's Flood Mitigation Assistance Grant program. This concludes my 00:27:45.838 --> 00:27:51.855 presentation, and I'm available to answer any questions you might have. 00:27:51.880 --> 00:27:54.060 Thank you, Kathy Questions, Comments? 00:27:54.085 --> 00:27:56.677 Appreciate the work of the 00:27:56.689 --> 00:27:59.017 of the flood team. And of course, this is 00:27:59.029 --> 00:28:01.683 something that has been ongoing for a number of 00:28:01.695 --> 00:28:04.362 years, and of course, FEMA makes the selection, 00:28:04.374 --> 00:28:07.025 but it's really kind of up to our team, and you 00:28:07.037 --> 00:28:09.645 do a fantastic job in working with communities 00:28:09.657 --> 00:28:12.036 and helping them to get their applications 00:28:12.048 --> 00:28:14.774 together so that they can send it up to FEMA and 00:28:14.786 --> 00:28:17.324 FEMA scores them, and then kind of determines 00:28:17.336 --> 00:28:19.887 you know who is identified for further review 00:28:19.899 --> 00:28:22.666 or who actually is going to receive some funding. 00:28:22.678 --> 00:28:25.012 And of course, in this particular program 00:28:25.024 --> 00:28:27.622 there is a requirement for a local cost share. 00:28:27.634 --> 00:28:30.188 So it's always great to see the fact that you 00:28:30.200 --> 00:28:32.803 know Texas as a significant entity that's able 00:28:32.815 --> 00:28:35.375 to kind of draw down these federal funds. And 00:28:35.387 --> 00:28:38.032 I think that's a credit to your staff and being 00:28:38.044 --> 00:28:40.646 able to work with communities and kind of help 00:28:40.658 --> 00:28:43.088 them along and get their applications up so 00:28:43.100 --> 00:28:45.708 that they can, if you will, kind of get in the 00:28:45.720 --> 00:28:48.313 game. And it's also good to see that you know. 00:28:48.325 --> 00:28:50.819 And again, it's the national Flood Insurance 00:28:50.831 --> 00:28:53.430 program, and so they are focused on repetitive 00:28:53.442 --> 00:28:56.053 loss and buyouts and elevations. But also, you 00:28:56.065 --> 00:28:58.324 know, it's good to see that they're also 00:28:58.336 --> 00:29:00.884 funding drainage projects, which of course is 00:29:00.896 --> 00:29:03.604 important. And, you know, all of it is important 00:29:03.616 --> 00:29:06.281 in terms of moving forward with the resiliency. 00:29:06.293 --> 00:29:08.999 So thanks again. An important program that we've 00:29:09.011 --> 00:29:11.673 been doing for a number of years and continues, 00:29:11.685 --> 00:29:14.175 I think to be strong, really, to a credit to 00:29:14.187 --> 00:29:16.522 your staff in the work that you're doing. 00:29:16.547 --> 00:29:19.024 Thanks, Kathy Obviously, these 00:29:19.036 --> 00:29:21.369 projects are of the utmost importance to the 00:29:21.381 --> 00:29:23.708 state right now, so we're happy to work with 00:29:23.720 --> 00:29:26.059 FEMA on them. Great presentation. Thank you. 00:29:26.084 --> 00:29:30.551 Thanks for the work on this. And I know the applicants 00:29:30.563 --> 00:29:35.228 that were not declared eligible, you're still working with for some future 00:29:35.240 --> 00:29:40.055 clarification and to see if that possibly change down the road. So appreciate 00:29:40.067 --> 00:29:44.708 the ongoing efforts for the applicants still out there. Is there a motion? 00:29:44.733 --> 00:29:48.180 Chairman, I move we authorize 00:29:48.192 --> 00:29:51.029 the Executive Administrator to negotiate 00:29:51.041 --> 00:29:54.287 and execute contracts as approved and directed 00:29:54.299 --> 00:29:57.280 by the Federal Emergency Management Agency 00:29:57.292 --> 00:30:00.448 in an amount not to exceed $36,798,460.93 for 00:30:00.460 --> 00:30:03.697 subgrants from the Flood Mitigation Assistance 00:30:03.709 --> 00:30:06.802 Grant program upon notification of award, as 00:30:06.814 --> 00:30:09.850 recommended by our Executive Administrator. 00:30:09.850 --> 00:30:12.438 - Is there a second? - I second. 00:30:12.463 --> 00:30:14.536 All in favor say aye. Motion 00:30:14.548 --> 00:30:16.453 passes. Thanks, Kathy. Next item, please. 00:30:16.478 --> 00:30:20.240 Consider approving a request from the city of 00:30:20.252 --> 00:30:23.852 Childress for financial assistance from the Clean Water State 00:30:23.864 --> 00:30:27.487 Revolving Fund for the design and construction of a wastewater 00:30:27.499 --> 00:30:31.192 treatment facility improvements. Lee Huntoon is here to present 00:30:31.217 --> 00:30:34.339 Good Morning Chairman Lake, Director 00:30:34.351 --> 00:30:37.426 Jackson, Director Paup. For the record, my name is 00:30:37.438 --> 00:30:40.687 Lee Huntoon of the Executive Administrator staff. The 00:30:40.699 --> 00:30:43.718 city of Childress is located in central Childress 00:30:43.730 --> 00:30:47.037 County in northeast Texas, or in northwest Texas. Both 00:30:47.049 --> 00:30:50.066 the city and county were named in honor of George 00:30:50.078 --> 00:30:53.330 Campbell Childress, the principal author of the Texas 00:30:53.342 --> 00:30:56.546 Declaration of Independence. The city provides water 00:30:56.558 --> 00:30:59.984 and wastewater services to a population of approximately 00:30:59.996 --> 00:31:02.770 6007. The city's airport wastewater treatment 00:31:02.782 --> 00:31:05.791 facility infrastructure is out of compliance with 00:31:05.803 --> 00:31:09.066 TCEQ standards, is outdated, and needs upgrades. This 00:31:09.078 --> 00:31:12.023 facility mainly supports the Texas Department of 00:31:12.035 --> 00:31:15.235 Criminal Justice prison, the airport and a few other 00:31:15.247 --> 00:31:18.561 commercial customers. The city is proposing to upgrade 00:31:18.573 --> 00:31:21.536 the wastewater treatment facility infrastructure 00:31:21.548 --> 00:31:24.427 to bring the facility into compliance with TCEQ 00:31:24.439 --> 00:31:27.751 standards. If, after construction is complete and then 00:31:27.763 --> 00:31:31.009 there are any remaining funds available, they will be 00:31:31.021 --> 00:31:34.158 dedicated to the city's other waste water treatment 00:31:34.170 --> 00:31:37.473 facility for the necessary upgrades. Additionally, the 00:31:37.485 --> 00:31:40.499 city and the Texas Department of Criminal Justice 00:31:40.511 --> 00:31:43.458 have entered into a memorandum of understanding, 00:31:43.470 --> 00:31:46.309 with the TDCJ contributing 100,000 towards the 00:31:46.321 --> 00:31:49.321 construction of the proposed project. The city is 00:31:49.333 --> 00:31:52.828 requesting $1,269,999 in financial assistance, consisting 00:31:52.840 --> 00:31:55.665 of 895,000 in financing and $374,999 principal 00:31:55.677 --> 00:31:58.695 forgiveness, from the Clean Water State Revolving 00:31:58.707 --> 00:32:01.952 Fund for the planning, design and construction of the 00:32:01.964 --> 00:32:04.918 Waste Water Treatment Facility improvements. The 00:32:04.930 --> 00:32:08.060 executive administrator recommends approval of this 00:32:08.072 --> 00:32:10.972 request, and I'm happy to answer any questions. 00:32:10.997 --> 00:32:12.018 Questions, comments? 00:32:12.043 --> 00:32:15.036 Good to see a small community, 00:32:15.048 --> 00:32:17.935 and I think this is exactly what the Clean Water 00:32:17.947 --> 00:32:21.064 State Revolving Fund is intended to do, in rural and 00:32:21.076 --> 00:32:23.911 small community areas, is to help upgrade their 00:32:23.923 --> 00:32:26.742 aging infrastructure. And, you know, having the 00:32:26.754 --> 00:32:29.821 ability to go on and, you know, effectively utilize 00:32:29.833 --> 00:32:32.599 the funds. And if there's anything left to do, 00:32:32.611 --> 00:32:35.447 other upgrades, I think that was a great add-on 00:32:35.459 --> 00:32:38.211 to this particular project and also seeing the 00:32:38.223 --> 00:32:41.163 support by the prison system in terms of engaging 00:32:41.175 --> 00:32:44.050 and providing financial support. So it's a great 00:32:44.062 --> 00:32:47.008 project, appreciate you working on it, and again, 00:32:47.020 --> 00:32:50.128 it's just, it's good to see the fund being utilized, 00:32:50.140 --> 00:32:52.906 and I know it is whatever the interest rate is 00:32:52.918 --> 00:32:55.914 at the time that close, but right now the estimate 00:32:55.926 --> 00:32:58.758 is less than 1%. So amazing project. Thank you. 00:32:58.783 --> 00:33:00.223 Director Paup? 00:33:00.248 --> 00:33:04.049 No it's just truly a group effort between state and local 00:33:04.061 --> 00:33:08.027 communities to get this project developed. So I'm happy to see it. Thank you. 00:33:08.052 --> 00:33:10.984 Good job. Good job to the team on working on 00:33:10.996 --> 00:33:14.035 the revenue concentration with the prison, evaluating scenarios 00:33:14.047 --> 00:33:16.985 with and without that revenue source to ensure this is a good 00:33:16.997 --> 00:33:19.804 credit for the long portion. Well done. Is there a motion? 00:33:19.829 --> 00:33:23.564 Mr. Chairman, I move we adopt the proposed resolution by 00:33:23.576 --> 00:33:27.323 providing the City of Childress financial assistance from the Clean Water 00:33:27.335 --> 00:33:31.352 State Revolving Fund for the design and construction of a waste water treatment 00:33:31.364 --> 00:33:34.840 facility improvements as recommended by our Executive Administrator. 00:33:34.840 --> 00:33:38.857 - Is there a second? - I second 00:33:38.882 --> 00:33:41.663 All in favor say aye. Motion passes. Next item, please 00:33:41.688 --> 00:33:44.709 Consider approving a request 00:33:44.721 --> 00:33:47.943 from the city of San Angelo for financing from the 00:33:47.955 --> 00:33:50.729 Drinking Water State Revolving Fund for the 00:33:50.741 --> 00:33:54.032 planning, design and construction of a water system 00:33:54.044 --> 00:33:57.179 improvement project. Lee Huntoon is again here to 00:33:57.191 --> 00:34:00.337 present, and following her presentation, Mr Keith 00:34:00.349 --> 00:34:03.363 Kendall, Chief Operating Officer for Enprotect, 00:34:03.375 --> 00:34:06.338 Hibbs & Todd would like to speak to the board. 00:34:06.363 --> 00:34:11.019 Good morning, again. For the record, my name is Lee Huntoon of 00:34:11.031 --> 00:34:15.818 the Executive Administrator staff. The city of San Angelo is the county seat of 00:34:15.830 --> 00:34:20.911 Tom Green County and as the principal city and center of the San Angelo metropolitan 00:34:20.923 --> 00:34:25.417 area, with a population of approximately 99,135 residents. In an effort to 00:34:25.429 --> 00:34:30.207 offset surface water production, the city began developing a groundwater supply 00:34:30.219 --> 00:34:34.950 and treatment system to add the Hickory Aquifer to its water supply portfolio. 00:34:34.962 --> 00:34:39.746 Phase 1 development of the Hickory Aquifer well field was completed in February 00:34:39.758 --> 00:34:44.374 of 2018. The proposed project on the agenda today is the Phase 2 development 00:34:44.386 --> 00:34:49.096 to expand the groundwater supply further, which will achieve a production rate 00:34:49.108 --> 00:34:53.709 of 12,000 acre feet per year, which requires improvements to the city's well 00:34:53.721 --> 00:34:58.197 field raw water collection system, transmission line, and the ground water 00:34:58.209 --> 00:35:02.877 treatment plant. And will also include the development of an asset management 00:35:02.889 --> 00:35:07.840 plan. The city is requesting $65,750,000 in financial assistance from the Drinking 00:35:07.852 --> 00:35:12.397 Water State Revolving Fund for the planning, design and construction of the 00:35:12.409 --> 00:35:16.828 proposed project. The Executive Administrator recommends approval of this 00:35:16.840 --> 00:35:21.630 request. This concludes my presentation, and I'm happy to answer any questions. 00:35:21.655 --> 00:35:22.655 Questions, comments? 00:35:22.680 --> 00:35:25.907 I think you shared with me this is a state water 00:35:25.919 --> 00:35:29.111 plan project, which is good. That's moving forward. And then always 00:35:29.123 --> 00:35:32.426 good to see that they're including asset management. And they're gonna 00:35:32.438 --> 00:35:35.426 complete an asset management plan moving forward, so thank you. 00:35:35.451 --> 00:35:39.999 I believe Mr. Kendall? There you are. 00:35:39.999 --> 00:35:42.536 Chairman Lae, Director Jackson, 00:35:42.548 --> 00:35:44.889 Director Paup. Good to see you this morning. 00:35:44.901 --> 00:35:47.288 For the record, my name is Keith Kendall with 00:35:47.300 --> 00:35:49.699 Enprotec, Hibbs & Todd. On behalf of the city 00:35:49.711 --> 00:35:52.356 of San Angelo, thank you for this. You know, noted 00:35:52.368 --> 00:35:54.712 in your write up, there's about 10.4 million 00:35:54.724 --> 00:35:57.270 and savings through financing to the Texas Water 00:35:57.282 --> 00:35:59.476 Development Board. Those are real dollars 00:35:59.488 --> 00:36:01.870 that can go towards other capital improvement 00:36:01.882 --> 00:36:04.172 projects so thank you for this final phase. 00:36:04.184 --> 00:36:06.625 The Phase 2 of the Hickory is well deserved to 00:36:06.637 --> 00:36:08.985 the Texas Water Development Board. I want to 00:36:08.997 --> 00:36:11.486 give a shout out also to Lee's staff, both Bill 00:36:11.498 --> 00:36:13.739 and Tommy and Ashley. And Ashley, we don't 00:36:13.751 --> 00:36:16.143 give a lot of shouts out to the legal section 00:36:16.155 --> 00:36:18.506 from engineering standpoint, present company 00:36:18.518 --> 00:36:20.952 excluded for Director Paup and Joe, obviously, 00:36:20.964 --> 00:36:23.357 but team did a great job. And, of course, Lee 00:36:23.369 --> 00:36:25.653 always does a great job as that ringmaster, 00:36:25.665 --> 00:36:28.117 too. This is a fantastic project for the final 00:36:28.129 --> 00:36:30.826 phase, to bring it up with a radionuclide reduction 00:36:30.838 --> 00:36:33.131 and the iron removal and, more importantly, 00:36:33.143 --> 00:36:37.635 to put a factor of safety in so we can take wells on the line for maintenance or take 00:36:37.647 --> 00:36:40.030 pumps off line for maintenance. There's about 00:36:40.042 --> 00:36:42.437 a 25% factor in that because this is the long 00:36:42.449 --> 00:36:44.838 term water supply for the city of San Angelo, 00:36:44.850 --> 00:36:47.304 so there'll be a lot of years to go forward of 00:36:47.316 --> 00:36:49.858 maintaining this project. So again thank you, on 00:36:49.870 --> 00:36:52.269 behalf of San Angelo, we appreciate the Texas 00:36:52.281 --> 00:36:54.621 Water Development Board's assistance and all 00:36:54.633 --> 00:36:56.880 the hard work that you guys do. Thank you. 00:36:56.905 --> 00:36:59.784 Thanks, Keith. Lee has always wanted the 00:36:59.796 --> 00:37:02.736 title of ringmaster. We'll get that on your business card. 00:37:02.761 --> 00:37:07.266 We need to get her a little top hat she can wear. 00:37:07.291 --> 00:37:10.867 Yeah, that's going on my LinkedIn for sure. 00:37:10.892 --> 00:37:12.059 Is their a motion? 00:37:12.059 --> 00:37:15.312 Chairman, I move we adopt the proposed resolution 00:37:15.324 --> 00:37:18.589 by providing the City of San Angelo financing from the Drinking Water 00:37:18.601 --> 00:37:22.046 State Revolving Fund for the planning, design and construction of a water 00:37:22.058 --> 00:37:25.329 system improvement project as recommended by executive administrator. 00:37:25.329 --> 00:37:27.745 - Is there a second? - I second. 00:37:27.769 --> 00:37:30.682 All in favor, say aye. Motion 00:37:30.694 --> 00:37:33.184 passes. Thanks, Lee. Next item, please. 00:37:33.209 --> 00:37:36.800 Items 12 and 13 will be taken 00:37:36.812 --> 00:37:40.563 up together. Consider approving a request from the 00:37:40.575 --> 00:37:44.246 city of Marlin for financing from the Clean Water 00:37:44.258 --> 00:37:47.941 State Revolving Fund for the planning, design and 00:37:47.953 --> 00:37:51.989 construction of a drainage system improvement project. 00:37:52.001 --> 00:37:55.461 And consider approving a request from the city 00:37:55.473 --> 00:37:58.999 of Marlin for financing from the Drinking Water 00:37:59.011 --> 00:38:02.697 State Revolving Fund for the planning, design and 00:38:02.709 --> 00:38:06.513 construction of a water system improvement project. 00:38:06.525 --> 00:38:10.048 Caaren Skrobarcyzk is here to present and after 00:38:10.060 --> 00:38:13.502 Miss Skrobarcyzk's presentation, the Honorable 00:38:13.514 --> 00:38:17.410 Cedric Davis, Senior city Manager of Marlin, and the 00:38:17.422 --> 00:38:21.156 Honorable Carolyn Loftin, the mayor of Marlin, are 00:38:21.168 --> 00:38:24.767 here and would like to speak to the board. Also, 00:38:24.779 --> 00:38:28.371 Rhonda Norton a councilwoman with City of Marlin 00:38:28.383 --> 00:38:31.914 is here but does not wish to address the board. 00:38:31.939 --> 00:38:34.007 Thanks, Joe. Morning, Caaren. 00:38:34.032 --> 00:38:39.295 Good morning, Chairman Lake, Director Jackson, 00:38:39.307 --> 00:38:44.734 Director Paup. For the record, I'm Caaren Skrobarcyzk of the Executive 00:38:44.746 --> 00:38:49.479 Administrator’s staff. The city of Marlin is located in Falls 00:38:49.491 --> 00:38:54.619 County, approximately 33 miles southwest of the city of Waco. They 00:38:54.631 --> 00:38:59.743 provide water and wastewater service to a population of about 5700 00:38:59.755 --> 00:39:05.033 people. The Clean Water Project is a storm water management project. 00:39:05.045 --> 00:39:10.240 The proposed project will allow the city to that effectively handle 00:39:10.252 --> 00:39:15.612 storm water drainage to areas that are historically flooding. It will 00:39:15.624 --> 00:39:21.118 also enhance the water quality being released into the Brazos. The city 00:39:21.130 --> 00:39:26.330 proposes improvements that replace the stormwater collection system 00:39:26.342 --> 00:39:31.612 and redirect the drainage into a new water quality pond. The tension 00:39:31.624 --> 00:39:36.753 of this pond in this pond is intended to reduce pollutant loading, 00:39:36.765 --> 00:39:42.109 entering in the Perry Creek, which then drains into the Brazos River. 00:39:42.121 --> 00:39:47.477 The Clean Water Project, the city qualifies for disadvantaged funding 00:39:47.489 --> 00:39:52.455 as a disadvantaged community. They qualify for 3.05 in a 0% loan 00:39:52.467 --> 00:39:57.523 and then 1.19 in principal forgiveness. As for the drinking water 00:39:57.535 --> 00:40:03.099 loan, the city's currently under enforcement with TCEQ for water quality 00:40:03.111 --> 00:40:08.076 violations and the proposed project is to rehabilitate the water 00:40:08.088 --> 00:40:13.276 treatment plant, including clarifiers, pumps, piping and electrical 00:40:13.288 --> 00:40:18.718 system upgrades. The project also includes approximately 37,000 linear 00:40:18.730 --> 00:40:24.068 feet of deteriorated water lines and some that are underutilized, are 00:40:24.080 --> 00:40:29.047 undersized. Then this will help the city address the unaccounted 00:40:29.059 --> 00:40:34.404 water loss as well as the TCEQ violations. And for the drinking water 00:40:34.416 --> 00:40:39.389 project, the city qualifies for 2.33 million in 0% loan and then 00:40:39.401 --> 00:40:44.585 four million in principal forgiveness as a disadvantaged community. 00:40:44.597 --> 00:40:49.869 The city's offering a tax and revenue pledge for the security on the 00:40:49.881 --> 00:40:55.147 proposed debt. They also were proactive and increased their rates in 00:40:55.159 --> 00:41:00.590 2018 in anticipation of this proposed debt. The EA recommends approval 00:41:00.602 --> 00:41:05.789 of both the Clean Water and the Drinking Water Financial Assistance 00:41:05.801 --> 00:41:10.770 request. This concludes my presentation, and I'm happy to answer 00:41:10.782 --> 00:41:15.974 any questions. I might also note that Tom Brown and James Gilly are 00:41:15.986 --> 00:41:21.114 both here, and the consultants in here have supported the project. 00:41:21.139 --> 00:41:22.652 Questions, comments? 00:41:22.677 --> 00:41:26.014 I think this is a great example of 00:41:26.026 --> 00:41:29.619 being able to use the Clean Water State Revolving Fund for 00:41:29.631 --> 00:41:32.975 drainage. And I think oftentimes we don't think of the 00:41:32.987 --> 00:41:36.952 utilization of existing fund, which, you know in that particular 00:41:36.964 --> 00:41:40.243 category, addresses, as you mentioned, the ability to 00:41:40.255 --> 00:41:43.912 better manage the storm water and enhance water quality, so 00:41:43.924 --> 00:41:47.576 actually kind of impacting a non-point source contaminants. 00:41:47.588 --> 00:41:51.251 So a great example of this community and an opportunity for 00:41:51.263 --> 00:41:54.838 others to utilize the Clean Water State Revolving Fund for 00:41:54.850 --> 00:41:58.742 drainage projects that they might have. And I really appreciate 00:41:58.754 --> 00:42:02.030 you working with this community, putting together the 00:42:02.042 --> 00:42:05.757 principal forgiveness as well as a 0% interest financing and 00:42:05.769 --> 00:42:09.530 kind of help them move forward with some challenges but do it 00:42:09.542 --> 00:42:13.193 in a way that they can accommodate and they can participate 00:42:13.205 --> 00:42:16.850 in. And so it's good to see a small projects moving forward 00:42:16.862 --> 00:42:19.971 or a project moving forward for a small community. 00:42:19.996 --> 00:42:22.666 book. A fantastic job. This 00:42:22.678 --> 00:42:25.122 is a great package of projects that will 00:42:25.134 --> 00:42:30.152 help a single community address a myriad of water infrastructure issues. Thank you. 00:42:30.177 --> 00:42:38.267 Good job to you and the team for the thorough and comprehensive 00:42:38.279 --> 00:42:45.682 evaluation of both projects, financials on both projects, and the revenue 00:42:45.694 --> 00:42:53.938 concentration risk and evaluating different scenarios to ensure that our fiduciary 00:42:53.950 --> 00:43:01.410 obligations are fulfilled. We have some speakers. Mr. Davis, Mayor Loftin. 00:43:01.435 --> 00:43:04.514 Good Morning to distinguished chairman 00:43:04.526 --> 00:43:07.168 and board members. On behalf of Marlin and our 00:43:07.180 --> 00:43:10.153 administrative teams and our citizens, we truly want 00:43:10.165 --> 00:43:13.093 to thank you. We personally wanted to come down and 00:43:13.105 --> 00:43:16.018 say thank you because, like you said, disadvantaged 00:43:16.030 --> 00:43:18.562 and rural communities are needing assistance 00:43:18.574 --> 00:43:21.437 throughout the state of Texas. Water is key to the 00:43:21.449 --> 00:43:24.493 survival of municipalities and the fact that you guys 00:43:24.505 --> 00:43:27.298 have a vision to helping people with these funds, 00:43:27.310 --> 00:43:30.170 we definitely wanted to personally come in and say 00:43:30.182 --> 00:43:33.037 thank you for your consideration. We want to thank 00:43:33.049 --> 00:43:35.916 your administrative staff that have reached out to 00:43:35.928 --> 00:43:38.836 us, and we're just so appreciative. And we're going 00:43:38.848 --> 00:43:41.655 to do great things with sources that you've given 00:43:41.667 --> 00:43:44.469 us and make sure that our citizens and our Texans 00:43:44.481 --> 00:43:47.407 are using those sources wisely and benefit from it. 00:43:47.432 --> 00:43:50.650 And I just personally wanted to come 00:43:50.662 --> 00:43:53.770 and say thank you for considering us, giving us an 00:43:53.782 --> 00:43:57.312 opportunity. I don't know if you know much of the history 00:43:57.324 --> 00:44:00.682 of Marlin, but we've had water woes for some time now. 00:44:00.694 --> 00:44:04.022 It's been an ongoing battle, so to be at this point is 00:44:04.034 --> 00:44:07.314 major for us. And just as the mayor of Marlin, I just 00:44:07.326 --> 00:44:10.843 wanted to be able to come and say thank you in person for 00:44:10.855 --> 00:44:14.079 giving us this opportunity. Thank you all very much. 00:44:14.079 --> 00:44:19.325 Thank you for being here. Thank you for your leadership. None of this 00:44:19.337 --> 00:44:22.044 happens without y'all taking the right steps 00:44:22.056 --> 00:44:24.897 forward at the local level. Is there a motion? 00:44:24.922 --> 00:44:28.085 That's moving. Sorry. Mr Chairman, I 00:44:28.097 --> 00:44:31.391 move we adopt the proposed resolutions by providing the 00:44:31.403 --> 00:44:34.454 City of Marlin financing from the Clean Water State 00:44:34.466 --> 00:44:37.824 Revolving Fund for the planning, design and construction 00:44:37.836 --> 00:44:40.988 of a drainage system improvement project and from the 00:44:41.000 --> 00:44:44.164 Drinking Water State Revolving Fund for the planning, 00:44:44.176 --> 00:44:47.333 design and construction of a water system improvement 00:44:47.345 --> 00:44:50.632 project, as recommended by our Executive Administrator. 00:44:50.657 --> 00:44:52.076 - Is there a second? - I second. 00:44:52.102 --> 00:44:55.411 All in favor say aye. Motion 00:44:55.423 --> 00:44:58.527 passes. Thanks, Caaren. Next item, please. 00:44:58.552 --> 00:45:01.866 Items 14 and 15 will be taken 00:45:01.878 --> 00:45:04.865 together. Consider approving a request from 00:45:04.877 --> 00:45:08.130 the City of Austin for financing from the Clean 00:45:08.142 --> 00:45:11.135 Water State Revolving Fund for construction 00:45:11.147 --> 00:45:14.396 of wastewater treatment plant improvements, and 00:45:14.408 --> 00:45:17.330 consider approving a request from the city 00:45:17.342 --> 00:45:20.598 of Austin for financing from the Drinking Water 00:45:20.610 --> 00:45:23.401 State Revolving Fund for construction of 00:45:23.413 --> 00:45:26.652 water system improvements and for a waiver from 00:45:26.664 --> 00:45:29.712 the requirement to include funds to mitigate 00:45:29.724 --> 00:45:32.901 water loss as part of the project. Dain Larsen 00:45:32.913 --> 00:45:35.695 is here to present. Mr Williams Stauber, 00:45:35.707 --> 00:45:38.542 the Assistant Director of Engineering for 00:45:38.554 --> 00:45:41.740 Austin Water, and Kristina Romero, a financial 00:45:41.752 --> 00:45:44.933 manager for the City of Austin Water, are also 00:45:44.945 --> 00:45:48.001 present and would like to address the board. 00:45:48.026 --> 00:45:49.227 Morning, Dain. 00:45:49.252 --> 00:45:53.099 Good Morning, Chairman Lake, Director 00:45:53.111 --> 00:45:56.314 Jackson, Director Paup. For the record, I'm 00:45:56.326 --> 00:46:00.106 Dain Larsen of the Executive Administrator's staff. 00:46:00.118 --> 00:46:03.473 The city of Austin is requesting funding from 00:46:03.485 --> 00:46:07.335 both the Clean Water and Drinking Water SRF programs 00:46:07.347 --> 00:46:10.553 to upgrade and rehabilitate its waste water 00:46:10.565 --> 00:46:13.984 and water infrastructure, including electrical 00:46:13.996 --> 00:46:17.499 substation, SKATA, and pump systems work at the 00:46:17.511 --> 00:46:21.141 Walnut Creek and South Austin regional wastewater 00:46:21.153 --> 00:46:24.722 treatment plants. I'd like to point out that not 00:46:24.734 --> 00:46:28.224 only is Austin a recent repeat customer of TWDB 00:46:28.236 --> 00:46:31.592 but the waste water project for upgrades, the 00:46:31.604 --> 00:46:35.238 facilities we funded, in 2016, with SWIFT funding 00:46:35.250 --> 00:46:39.041 for a reuse project. The water project will replace 00:46:39.053 --> 00:46:42.838 a very large aging storage tank at the North Austin 00:46:42.850 --> 00:46:46.209 Reservoir and site and electrical work at the 00:46:46.221 --> 00:46:49.845 Allridge Pump Station. With this funding request, 00:46:49.857 --> 00:46:53.348 the city is also requesting a waiver to include 00:46:53.360 --> 00:46:56.991 funds to mitigate water loss. Our technical staff 00:46:57.003 --> 00:47:00.645 notes that the city has surveyed its water mains, 00:47:00.657 --> 00:47:04.139 has a program to replace them, has utilized our 00:47:04.151 --> 00:47:07.645 SWIFT funding to add new advanced water meters, 00:47:07.657 --> 00:47:11.436 and the city continues to make overall improvements 00:47:11.448 --> 00:47:14.729 as indicated by its performance on the water 00:47:14.741 --> 00:47:18.513 leakage index score. The system's revenues provides 00:47:18.525 --> 00:47:21.871 substantial coverage of existing and proposed 00:47:21.883 --> 00:47:25.151 debts. Our financial analysis indicates that 00:47:25.163 --> 00:47:28.515 the system is financially strong and positive 00:47:28.527 --> 00:47:32.084 socio-economic indicators for the community. The 00:47:32.096 --> 00:47:35.518 Executive Administrator recommends approval of 00:47:35.530 --> 00:47:39.092 their request. My presentation is now concluded, 00:47:39.104 --> 00:47:42.824 and I'm available for any questions that you have. 00:47:42.849 --> 00:47:45.637 Thank you, Dain. Questions, comments? 00:47:45.662 --> 00:47:49.758 It's just a great example of, you know, we previously 00:47:49.770 --> 00:47:53.268 had a small community, and now we have, you know, a very large 00:47:53.280 --> 00:47:57.383 community that's utilizing the resource is of the revolving fund program, 00:47:57.395 --> 00:48:01.064 and you know, there was in the past an opportunity to utilize the 00:48:01.076 --> 00:48:05.009 SWIFT. And I think, you know, it's just really points to the fact that 00:48:05.021 --> 00:48:09.022 we have many different funding programs and depending on the timing and 00:48:09.034 --> 00:48:12.750 depending on the project, you know, there's a fit for whatever you 00:48:12.762 --> 00:48:16.713 want to kind of move forward and do, again, to prepare for the future, 00:48:16.725 --> 00:48:20.539 to promote resiliency. And they've taken great strides, I think, and 00:48:20.551 --> 00:48:24.431 investment in water conservation, as you mentioned before, with their 00:48:24.443 --> 00:48:28.318 advanced meeting system. And then, you know, having the insight to go 00:48:28.330 --> 00:48:32.162 in and making sure that, you know, equipment that is approaching end 00:48:32.174 --> 00:48:35.934 of its useful life, that we get in there proactively replace it and 00:48:35.946 --> 00:48:39.941 invest in it. So good to see them utilizing not only this SWIFT funding 00:48:39.953 --> 00:48:43.775 but also taking advantage of, you know, extremely low interest rates 00:48:43.787 --> 00:48:47.455 that are available within the revolving loan programs. Thank you. 00:48:47.480 --> 00:48:51.002 The city of Austin's a fantastic 00:48:51.014 --> 00:48:54.973 customer of the board and happy to see them back again. 00:48:54.998 --> 00:48:59.819 Indeed. We have some folks who 00:48:59.831 --> 00:49:04.270 would like to address the board. Come on up. 00:49:04.295 --> 00:49:07.355 I'll start. Good morning, 00:49:07.367 --> 00:49:10.879 Chairman Lake, Director Paup, Director Jackson. 00:49:10.891 --> 00:49:17.340 Bill Stauber, Interim Assistant Director of Engineering at Austin Water. We just wanted 00:49:17.352 --> 00:49:20.708 to come down, again, as others before us, and 00:49:20.720 --> 00:49:24.089 just personally thank the board and the state 00:49:24.101 --> 00:49:27.683 for participating, an opportunity to participate 00:49:27.695 --> 00:49:30.409 in the State Revolving Fund. City of 00:49:30.421 --> 00:49:33.776 Austin, one of our strategic outcomes and our 00:49:33.788 --> 00:49:37.008 strategic goals is economic opportunity and 00:49:37.020 --> 00:49:40.234 affordability. This strikes to the heart of 00:49:40.246 --> 00:49:43.546 affordability. Over the last few years, City 00:49:43.558 --> 00:49:46.769 of Austin, Austin Water, has not raised our 00:49:46.781 --> 00:49:50.151 budget at the city. So affordability is a key 00:49:50.163 --> 00:49:53.159 opportunity for us to really focus on at 00:49:53.171 --> 00:49:56.474 Austin Water and these these funds go to the 00:49:56.486 --> 00:50:02.842 heart of that. So we definitely appreciate it. Additionally, Austin Waters adopted the 00:50:02.854 --> 00:50:06.649 effective utility management. One of the attributes 00:50:06.661 --> 00:50:09.662 that we're focusing on is infrastructure 00:50:09.674 --> 00:50:13.173 stability. And you can see, of these two items, 00:50:13.185 --> 00:50:16.403 there's about $120 million of construction. 00:50:16.415 --> 00:50:22.276 And so a lot of infrastructure that we're working to improve and just stabilize 00:50:22.288 --> 00:50:25.638 for the city of Austin and the 1,000,000 plus 00:50:25.650 --> 00:50:28.794 residents that call Austin home. So again, 00:50:28.806 --> 00:50:34.957 just on behalf of the city of Austin and Austin Water, we definitely appreciate the 00:50:34.969 --> 00:50:38.323 participation of y'all's staff, again, Austin 00:50:38.335 --> 00:50:41.334 Water Finance Staff, working so hard and 00:50:41.346 --> 00:50:44.779 diligently to produce these opportunities that 00:50:44.791 --> 00:50:48.237 we can pass on to our customers. So thank you. 00:50:48.262 --> 00:50:49.784 Thank you. 00:50:49.808 --> 00:50:52.711 Good morning, Chairman Lake. 00:50:52.723 --> 00:50:55.698 Board Member Paup and Board Member Jackson. I am 00:50:55.710 --> 00:50:58.619 Kristina Romero with Austin Water Finance. Just 00:50:58.631 --> 00:51:01.734 wanted to thank you for this wonderful opportunity 00:51:01.746 --> 00:51:04.712 that you're giving to the city of Austin, Austin 00:51:04.724 --> 00:51:07.337 Water, and its citizens. These dollars and 00:51:07.349 --> 00:51:10.200 these loans provide a significant debt service 00:51:10.212 --> 00:51:12.892 savings. So we appreciate this opportunity. 00:51:12.904 --> 00:51:16.043 Also, I want to give a thank you to Dain Larson and 00:51:16.055 --> 00:51:18.903 his team, Jessie Milanovic, Alexis Laura, Bill 00:51:18.915 --> 00:51:21.574 Collard, David Fergins, and Kristen Miller. 00:51:21.586 --> 00:51:24.622 They've been very instrumental in helping us with 00:51:24.634 --> 00:51:27.655 our applications, any questions we have. This has 00:51:27.667 --> 00:51:30.518 been almost an 18 month process in the making, 00:51:30.530 --> 00:51:33.557 and we're seeing it happen, and we're so thankful 00:51:33.569 --> 00:51:36.122 and grateful. So thank you for your time. 00:51:36.147 --> 00:51:40.793 Thank you. Appreciate you all being here. Is there a motion? 00:51:40.818 --> 00:51:43.968 Chairman, I move we adopt the proposed 00:51:43.980 --> 00:51:47.356 resolutions by providing the City of Austin financing from the 00:51:47.368 --> 00:51:50.523 Clean Water State Revolving Fund for the construction of a 00:51:50.535 --> 00:51:53.810 wastewater treatment plants, improvements and financing from 00:51:53.822 --> 00:51:57.068 the Drinking Water State Revolving Fund for the construction 00:51:57.080 --> 00:52:00.018 of water system improvements and for a waiver from the 00:52:00.030 --> 00:52:03.336 requirement to include funds to mitigate water loss as a part 00:52:03.348 --> 00:52:06.773 of this project, as recommended by our Executive Administrator. 00:52:06.798 --> 00:52:08.319 - Is there a second? - I second. 00:52:08.319 --> 00:52:12.245 All in favor, say aye. Motion 00:52:12.257 --> 00:52:15.609 passes. Thanks, Dain. Next item, please 00:52:15.634 --> 00:52:20.865 On item 16, the application was withdrawn. Therefore, 00:52:20.877 --> 00:52:25.760 there will be no formal action required. We can move on to item 17. 00:52:25.785 --> 00:52:30.221 Works for me. Work for you guys? Alright, item 17, please, sir. 00:52:30.246 --> 00:52:36.491 Consider denying the appeal filed by the Lone 00:52:36.503 --> 00:52:43.049 Star Ground Water Conservation District regarding the determination 00:52:43.061 --> 00:52:49.216 by the Executive Administrator that the Ground Water Management 00:52:49.228 --> 00:52:54.817 Plan submitted by the Lone Star Ground Water Conservation 00:52:54.829 --> 00:53:01.077 District is not administratively complete. We have both a number 00:53:01.089 --> 00:53:06.867 of people to address the board on this matter and also some 00:53:06.879 --> 00:53:13.037 who are here that will not address the board but whom I need to 00:53:13.049 --> 00:53:18.930 recognize. Kendall Kowal and Larry French will be presenting 00:53:18.942 --> 00:53:25.092 for the Executive Administrator. Stacy Reach is here as General 00:53:25.104 --> 00:53:31.074 Counsel for Lone Star Ground Water District to address you on 00:53:31.086 --> 00:53:37.435 the district's behalf. Then, Marvin Jones, representing Quadvest, 00:53:37.447 --> 00:53:43.133 is here also to address the board. As are Mr Robert Lilac, 00:53:43.145 --> 00:53:49.202 the president of Woodlands MUD Number 1. Robert M. Looks, Vice 00:53:49.214 --> 00:53:55.572 President for Montgomery County MUD Number 60. And James Stinson, 00:53:55.584 --> 00:54:01.261 General Manager for The Woodlands Water Agency. Along with 00:54:01.273 --> 00:54:07.348 those, we have in attendance, but not wishing to speak, Arthur 00:54:07.360 --> 00:54:13.311 Breadhoff, the president of MUD Number 47 who is here for the 00:54:13.323 --> 00:54:19.479 motion. Gail Carbine from MUD 39 who is also here for the item. 00:54:19.491 --> 00:54:25.544 Then W. Richard Strawmet for MUD number 60 who is here for the 00:54:25.556 --> 00:54:31.910 item. And Walter Lesusiki from MUD Number 1 is a director who did 00:54:31.922 --> 00:54:37.683 not express an opinion. And Paul Brown, the director of MUD 00:54:37.695 --> 00:54:43.565 Number 47, who is against the opinion, the motion. By way of 00:54:43.577 --> 00:54:49.633 introduction of the two speakers, Miss Kowal for the Executive 00:54:49.645 --> 00:54:56.291 Administrator and Miss Reese for the Lone Star Ground Water District 00:54:56.303 --> 00:55:02.255 will each have five minutes to make their presentation. There 00:55:02.267 --> 00:55:08.328 is a light on the podium. The light will, the green light will 00:55:08.340 --> 00:55:14.491 go on at one minute, the yellow light at 30 seconds and the red 00:55:14.503 --> 00:55:20.184 light at the end of the time. The other people who will be 00:55:20.196 --> 00:55:26.537 addressing the board as just public comments will each have three 00:55:26.549 --> 00:55:32.613 minutes following the same signal procedure. The board is free 00:55:32.625 --> 00:55:38.779 to ask questions of Miss Kowal or Miss Reese, but there will be 00:55:38.791 --> 00:55:44.957 no questions either to or from the board on the public comment. 00:55:44.982 --> 00:55:47.622 And then, after the folks that have 00:55:47.634 --> 00:55:50.135 registered to speak in as part of public comment, 00:55:50.147 --> 00:55:52.643 any other remaining folks who like to address the 00:55:52.655 --> 00:55:55.263 board would have the chance to do so at that point. 00:55:55.288 --> 00:56:01.108 if they're speaking on that motion, we'll conclude on 00:56:01.120 --> 00:56:06.951 this item before we go to other public comment. But yes, that's the case. 00:56:06.976 --> 00:56:09.809 Thank you, Joe. 00:56:09.835 --> 00:56:13.952 Good Morning, Chairman Lake, Director Jackson, Director Paup. 00:56:13.964 --> 00:56:17.937 For the record, I'm Kendall Kowal for the Executive Administrator. The item 00:56:17.949 --> 00:56:22.229 before you today is an appeal by the Lone Star Ground Water Conservation District 00:56:22.241 --> 00:56:23.904 of the Executive Administrator’s 00:56:23.916 --> 00:56:26.324 determination that the district's management 00:56:26.336 --> 00:56:30.614 plan is not administratively complete. The Executive Administrator is tasked with 00:56:30.626 --> 00:56:34.653 reviewing all Ground Water Conservation District’s required management plans 00:56:34.665 --> 00:56:37.056 to determine whether they're administratively 00:56:37.068 --> 00:56:38.739 complete in accordance with the 00:56:38.751 --> 00:56:42.994 list of required elements in the Texas Water Code. This list includes addressing 00:56:43.006 --> 00:56:47.230 desired future conditions adopted under Water Could 36108, performance standards 00:56:47.242 --> 00:56:51.163 and management objectives under which the district will achieve management 00:56:51.175 --> 00:56:55.300 goals related to DFCs, and estimates of modeled available groundwater based on 00:56:55.312 --> 00:56:59.449 those DFCs. Upon receipt of the Lone Star Ground Water Conservation District's 00:56:59.461 --> 00:57:03.478 most recent management plan, the Executive Administrator determined that the 00:57:03.490 --> 00:57:07.624 plan is not administratively complete because it does not include specific and 00:57:07.636 --> 00:57:11.816 time based management objectives or performance standards the district will use 00:57:11.828 --> 00:57:16.021 to achieve the goal of addressing the DFCs, and it does not include an estimate 00:57:16.033 --> 00:57:20.098 of modeled available granddaughter based on the DFC as required by applicable 00:57:20.110 --> 00:57:24.188 statute and rule. The most recently adopted DFC is applicable to the district 00:57:24.200 --> 00:57:28.167 with a subject of a petition that led to the district reaching a settlement 00:57:28.179 --> 00:57:30.576 finding those DFCs were no longer reasonable. 00:57:30.588 --> 00:57:32.472 In making his determination, the EA 00:57:32.484 --> 00:57:36.710 informed the district that the DFCs adopted according to the procedures outlined 00:57:36.722 --> 00:57:40.751 in Water Code 36108 and 2010 should be addressed in the management plan. The 00:57:40.763 --> 00:57:44.890 EA recommends denying the district's appeal because his determination that the 00:57:44.902 --> 00:57:48.831 plan is not administratively complete is within his authority. It complies 00:57:48.843 --> 00:57:52.806 with the legislative intent of applicable statutes and it is reasonable and 00:57:52.818 --> 00:57:57.159 technically supportable. In fulfilling his role of reviewing district's management 00:57:57.171 --> 00:58:01.244 plans and ensuring compliance with the statutory intent, the EA has a duty to 00:58:01.256 --> 00:58:05.341 confirm that the required information is complete, meaningful and verifiable. 00:58:05.353 --> 00:58:09.319 Otherwise districts could submit anything, claim that the plan includes the 00:58:09.331 --> 00:58:13.728 required information, and the EA would be required to approve that plan. The system 00:58:13.740 --> 00:58:17.816 would not align with the statutory language and intent giving the EA the duty 00:58:17.828 --> 00:58:21.811 to review and approve, either approve or disapprove, of district management 00:58:21.823 --> 00:58:26.044 plans. The deficiencies in the district's plan omit elements explicitly required 00:58:26.056 --> 00:58:30.184 by the Water Code. Stating that no reasonable DFCs are available for inclusion 00:58:30.196 --> 00:58:34.109 does not meet the explicit statutory requirement. The district argues that 00:58:34.121 --> 00:58:38.098 the requirement to address DFCs is only required as applicable, and in this 00:58:38.110 --> 00:58:42.281 situation is not applicable because of the successful petition. However, if you 00:58:42.293 --> 00:58:44.634 read all of the applicable statutes together 00:58:44.646 --> 00:58:46.529 in accordance with code instruction 00:58:46.541 --> 00:58:50.666 principles, it is clear that the management plan must address DFC's. The Water 00:58:50.678 --> 00:58:54.501 Code expressly requires management plans to contain goals and objectives 00:58:54.513 --> 00:58:58.578 consistent with achieving the DFCs of the relevant aquafers as adopted during 00:58:58.590 --> 00:59:02.772 the joint planning process. This statutory requirement does not include that as 00:59:02.784 --> 00:59:07.117 applicable phrase. The implications of not addressing a DFC go beyond this appeal. 00:59:07.129 --> 00:59:11.055 First, a district is required to adopt rules to implement their management 00:59:11.067 --> 00:59:15.293 plans. Without addressing a DFC within the plan, the district cannot adopt rules 00:59:15.305 --> 00:59:19.333 to implement that DFC. This goes against the stated purpose of Chapter 36 of 00:59:19.345 --> 00:59:21.840 the Water Code to provide for the conservation, 00:59:21.852 --> 00:59:23.786 preservation, protection, recharging 00:59:23.798 --> 00:59:27.727 and prevention of wasted groundwater and to control subsidence through the 00:59:27.739 --> 00:59:32.065 creation of ground Water Districts. Second, the regional water planning groups use 00:59:32.077 --> 00:59:36.153 modeled available groundwater resulting from DFCS and development of regional 00:59:36.165 --> 00:59:40.184 water plans. Because of the successful petition, the Region H Regional Water 00:59:40.196 --> 00:59:44.278 Planet Group is currently using the max based on the 2010 DFCs for Montgomery 00:59:44.290 --> 00:59:48.515 County. Addressing the 2010 DFCS in the district's current management plan would 00:59:48.527 --> 00:59:52.763 be consistent with the regional water plan currently in development. The statute 00:59:52.775 --> 00:59:57.058 does not provide procedures for the current situation because it does not provide 00:59:57.070 --> 01:00:00.894 for the interim period when a GMA does not amended DFC immediately after 01:00:00.906 --> 01:00:05.077 a successful petition of that DFC. In the absence of new DFCs adopted according 01:00:05.089 --> 01:00:09.114 to the statute, the most recently adopted DFCs that have not been challenged 01:00:09.126 --> 01:00:13.303 and that were adopted according to the statutory procedures, are the 2010 DFCs, 01:00:13.315 --> 01:00:17.242 so they should apply to the current management plan as a matter of law. In 01:00:17.254 --> 01:00:21.061 conclusion, the EA recommends that you deny the district's appeal of his 01:00:21.073 --> 01:00:23.416 determination that the district's management 01:00:23.428 --> 01:00:25.468 plan is not administratively complete. 01:00:25.480 --> 01:00:29.555 I'm available for any questions. And if you have any questions of a technical 01:00:29.567 --> 01:00:33.707 nature, Larry French of the Executive Administrator’s staff is also available. 01:00:33.732 --> 01:00:43.713 Questions? Thank you, Kendall. 01:00:43.738 --> 01:00:46.697 Good Morning, Chairman Lake and 01:00:46.709 --> 01:00:49.554 Directors Jackson and Paup. My name is Stacy 01:00:49.566 --> 01:00:52.657 Reese, and I'm the general counsel for Lone Star 01:00:52.669 --> 01:00:55.773 GCD. Thank you for hearing our appeal requesting 01:00:55.785 --> 01:00:58.684 reversal of the decision that the plan is not 01:00:58.696 --> 01:01:01.987 complete. With me today, I have the General Manager 01:01:01.999 --> 01:01:05.157 for Lone Star, Samantha Rider, and the district's 01:01:05.169 --> 01:01:07.705 hydro-geologist, Mike Thornhill. Before 01:01:07.717 --> 01:01:10.551 I get started with my very short five-minute 01:01:10.563 --> 01:01:13.599 presentation, may I please approach with a copy 01:01:13.611 --> 01:01:16.705 of the presentation? We're in this unprecedented 01:01:16.717 --> 01:01:19.632 situation because after a successful petition 01:01:19.644 --> 01:01:22.671 of Lone Star's 2016 DFCs in round 2, the GMA 14 01:01:22.683 --> 01:01:25.531 district's voted against a single-county DSC 01:01:25.543 --> 01:01:28.640 adjustment because it would lead to inconsistent 01:01:28.652 --> 01:01:31.380 science since aquifers cross county lines. 01:01:31.392 --> 01:01:34.541 Instead, GMA 14 decided to wait to make revisions 01:01:34.553 --> 01:01:37.272 until it adopted DFCs for all districts in 01:01:37.284 --> 01:01:40.060 Round 3. Had GMA 14 immediately revised, we 01:01:40.072 --> 01:01:43.113 would not be here today. Nonetheless, the Water 01:01:43.125 --> 01:01:46.215 Development Board and Lone Star, neither of whom 01:01:46.227 --> 01:01:49.392 have the authority to determine DFCs, were thrust 01:01:49.404 --> 01:01:52.372 into this situation. And we need to follow the 01:01:52.384 --> 01:01:55.238 statute to resolve it, which will lead us to 01:01:55.250 --> 01:01:58.085 a fair and just result. The decision must be 01:01:58.097 --> 01:02:01.324 reversed because there's no authority to reinstate 01:02:01.336 --> 01:02:04.303 lapsed DFCs, it contradicts prior instructions 01:02:04.315 --> 01:02:07.358 and approval, and it contradicts science policy 01:02:07.370 --> 01:02:10.271 and the law. The statute in the TWDB be rules 01:02:10.283 --> 01:02:13.323 lists requirements for the plan but contemplate 01:02:13.335 --> 01:02:16.368 that certain requirements may not apply and the 01:02:16.380 --> 01:02:19.109 plan can still be approved. Therefore, the 01:02:19.121 --> 01:02:22.334 district's explanation of limited applicability of 01:02:22.346 --> 01:02:25.381 the 2016 DFCs renders the plan administratively 01:02:25.393 --> 01:02:30.904 complete, and all administratively complete plans must be approved. Lone Star followed 01:02:30.916 --> 01:02:33.942 TWDB’s instructions. After the DSC was found to 01:02:33.954 --> 01:02:36.992 be no longer reasonable TWDB be instructed Lone 01:02:37.004 --> 01:02:39.845 Star, on two different occasions, to use the 01:02:39.857 --> 01:02:42.774 2016 information. TWDB pre-approved a plan in 01:02:42.786 --> 01:02:46.064 September 2018, before the newly-elected board took 01:02:46.076 --> 01:02:49.113 office, that included the 2016 info and recited 01:02:49.125 --> 01:02:52.028 that it was found to be no longer reasonable. 01:02:52.040 --> 01:02:54.892 Yet when the newly elected board took office 01:02:54.904 --> 01:02:57.995 and submitted a plan in March 2018 with the 2016 01:02:58.007 --> 01:03:00.920 info with the limited explanation, Mr. Walker 01:03:00.932 --> 01:03:03.775 ignored the prior instructions and approval. 01:03:03.787 --> 01:03:06.769 He ignored the statutory authority authorizing 01:03:06.781 --> 01:03:10.121 approval even if some information is not applicable. 01:03:10.133 --> 01:03:12.915 He denied approval and instructed Lone Star 01:03:12.927 --> 01:03:15.830 to use the 2010s. The problem is, is that the 01:03:15.842 --> 01:03:18.757 2010s DFCS were superseded as a matter of law 01:03:18.769 --> 01:03:21.859 by adoption of the 2016 DFCS, and they cannot be 01:03:21.871 --> 01:03:24.846 reinstated unless they're readopted by the GMA 01:03:24.858 --> 01:03:27.891 Districts, which they have expressly chosen not 01:03:27.903 --> 01:03:30.630 to do. When you look at the statute in the 01:03:30.642 --> 01:03:33.604 revisions over the years, it is clear that the 01:03:33.616 --> 01:03:36.780 Legislature never intended for DFCs to exist more 01:03:36.792 --> 01:03:40.077 than five years. TWDB has no authority to determine 01:03:40.089 --> 01:03:42.815 DFCs and can only administratively improve 01:03:42.827 --> 01:03:46.045 plans and by reinstating a DFC that is effectively 01:03:46.057 --> 01:03:48.780 determining a DFC. Looking at the statute, 01:03:48.792 --> 01:03:51.890 after a successful DFC petition, the Legislature 01:03:51.902 --> 01:03:54.758 instructs the GMAs to revise the DFC subject 01:03:54.770 --> 01:03:57.602 to the petition. The statute does not say to 01:03:57.614 --> 01:04:00.647 reinstate an old DFC. If the Legislature didn't 01:04:00.659 --> 01:04:03.370 even give a GMA authority to reinstate, it 01:04:03.382 --> 01:04:06.611 certainly did not give TWDB any implicit authority 01:04:06.623 --> 01:04:09.648 as Mr. Walker contents. Also, the statute says, 01:04:09.660 --> 01:04:12.316 it does not say reinstate in the meantime 01:04:12.328 --> 01:04:15.169 while you go through the notice, hearing and 01:04:15.181 --> 01:04:18.160 explanatory report process. That's because the 01:04:18.172 --> 01:04:21.132 Legislature understood that by not reinstating 01:04:21.144 --> 01:04:24.242 an old DFC in the meantime, that was OK that the 01:04:24.254 --> 01:04:27.283 DFC would be in flux because DFCS are long term 01:04:27.295 --> 01:04:30.083 planning goals and there's no threat to the 01:04:30.095 --> 01:04:33.184 aquifer during the short period of time in which 01:04:33.196 --> 01:04:36.108 administrative-induced process procedures are 01:04:36.120 --> 01:04:39.025 carried out. Mr Walker contends that the plan 01:04:39.037 --> 01:04:42.145 does not have specific and time-based management 01:04:42.157 --> 01:04:45.179 objectives or standards. However, when you look 01:04:45.191 --> 01:04:48.036 at the plan, you see that there are specific 01:04:48.048 --> 01:04:51.076 standards in there. Specific to the DFC. 361085 01:04:51.088 --> 01:04:54.192 is not a basis for denial as Lone Star's critics 01:04:54.204 --> 01:04:57.102 contend. The Legislature didn't give TWDB any 01:04:57.114 --> 01:05:00.088 authority under this statute. It is all on the 01:05:00.100 --> 01:05:03.195 districts and the GMA. And Lone Star's plan does 01:05:03.207 --> 01:05:05.997 contain specific time based objectives that 01:05:06.009 --> 01:05:09.223 will be implemented when the GMA adopts a DFC. The 01:05:09.235 --> 01:05:12.144 contradictory decision to force reinstatement 01:05:12.156 --> 01:05:15.186 leads to inconsistent and absurd results from a 01:05:15.198 --> 01:05:18.177 science and policy perspective, The 2016s were 01:05:18.189 --> 01:05:21.279 found to be no longer reasonable based on flawed 01:05:21.291 --> 01:05:24.076 science. The 2010s utilized the same flawed 01:05:24.088 --> 01:05:27.185 science. The assumed total pumping used for both 01:05:27.197 --> 01:05:30.052 was based on void rules. Chapter 36 mandates 01:05:30.064 --> 01:05:33.402 the use of the best available science, and the 2010s 01:05:33.414 --> 01:05:36.321 are not the best available data as determined 01:05:36.333 --> 01:05:39.298 through the DFC petition and void rules. Using 01:05:39.310 --> 01:05:41.970 the 2010s undermines joint planning. TWDB 01:05:41.982 --> 01:05:45.134 is forcing a scenario that GMA 14 expressly voted 01:05:45.146 --> 01:05:48.183 not to undertake. It's problematic from a legal 01:05:48.195 --> 01:05:51.416 perspective. It subjects the district to potential 01:05:51.428 --> 01:05:54.028 liability from all the litigants who are 01:05:54.040 --> 01:05:57.063 still waiting for GMA 14 to revise the DFC. The 01:05:57.075 --> 01:06:00.237 district cannot adopt the 2010s in its management 01:06:00.249 --> 01:06:05.825 plan because DFCs are only adopted in joint planning and GMA 14 has not readopted them. 01:06:05.837 --> 01:06:09.307 Chapter 36 prohibits unilateral reinstatement of DFCS. 01:06:09.319 --> 01:06:12.358 Chapter 36 authorizes the limited applicability 01:06:12.370 --> 01:06:15.403 of DFCS which renders the plan administratively 01:06:15.415 --> 01:06:18.016 complete. They're not the best available 01:06:18.028 --> 01:06:20.924 data and science. It subjects the district to 01:06:20.936 --> 01:06:23.780 potential liability. It does not protect the 01:06:23.792 --> 01:06:26.694 constitutional rights of all affected persons 01:06:26.706 --> 01:06:29.683 who were denied due process and whose property 01:06:29.695 --> 01:06:32.468 rights are unnecessarily restricted through 01:06:32.480 --> 01:06:35.644 management of the reinstated DFCS. In conclusion, 01:06:35.656 --> 01:06:38.498 the district respectfully requests reversal, 01:06:38.510 --> 01:06:41.744 acceptance of the plan. Let the GMA 14 conduct its 01:06:41.756 --> 01:06:44.463 required statutory work and in the future, 01:06:44.475 --> 01:06:47.385 consider suggesting statutory revisions where 01:06:47.397 --> 01:06:50.237 clarification may enhance the process. And I 01:06:50.249 --> 01:06:53.545 certainly can appreciate that this is a scenario of 01:06:53.557 --> 01:06:56.457 first impression and that this process likely 01:06:56.469 --> 01:06:59.508 revealed room for improvement. In the meantime, 01:06:59.520 --> 01:07:02.363 however, the current statute is in place and 01:07:02.375 --> 01:07:05.357 it mandates approval. Thank you for your time. 01:07:05.382 --> 01:07:09.676 Thank you. All right. Questions. 01:07:09.701 --> 01:07:14.192 Yeah, I actually have a question for Stacy. 01:07:14.204 --> 01:07:19.002 Thank you, Stacy. So you say that the 2010s were based on flawed 01:07:19.014 --> 01:07:23.881 science, but on page 20 you state that the 2010 DFCs were derived 01:07:23.893 --> 01:07:28.919 using an almost identical methodology and are substantially similar 01:07:28.931 --> 01:07:33.260 to the petitioned 2016 DFCs, which were declared no longer 01:07:33.272 --> 01:07:38.349 reasonable. So aren't you, you're saying one thing, but then in your 01:07:38.361 --> 01:07:42.991 brief, you're kind of alleging another, that 2010s are flawed, 01:07:43.003 --> 01:07:47.792 but they're almost identical to the 2016s. Can you explain that? 01:07:47.817 --> 01:07:51.280 Sure. And also I'm going to do the best I 01:07:51.292 --> 01:07:54.706 can to explain the science behind it. But I reserve the 01:07:54.718 --> 01:07:58.370 right to pull Mr Thornhill up here. The assumed pumping use 01:07:58.382 --> 01:08:01.801 was predetermined. In my brief, I explained extensively 01:08:01.813 --> 01:08:05.401 where the mat, the assumed pumping was predetermined based 01:08:05.413 --> 01:08:08.891 on a mag calculated based on recharge, which is a flawed 01:08:08.903 --> 01:08:12.497 scientific methodology, at least from our perspective. And 01:08:12.509 --> 01:08:15.932 I believe that even some of the people against us would 01:08:15.944 --> 01:08:19.583 agree with that position. And so that predetermined pumping 01:08:19.595 --> 01:08:23.003 was used to determine both the 2016s and the 2010s, and 01:08:23.015 --> 01:08:26.295 in the DFC petition of the 2016s, that was one of the 01:08:26.307 --> 01:08:29.904 reasons why they were found to be no longer reasonable was 01:08:29.916 --> 01:08:33.132 that the total assumed pumping was based on a flawed 01:08:33.144 --> 01:08:36.920 methodology, and there was also, so therefore, the conclusion 01:08:36.932 --> 01:08:40.520 is that the 2010s would be unreasonable on the same basis. 01:08:40.532 --> 01:08:43.704 Mr. Thornhill, do you have anything to add to that? 01:08:43.729 --> 01:08:46.955 One more question So you all 01:08:46.967 --> 01:08:50.204 allege that the 2016s, that 2010s are lapsed, 01:08:50.216 --> 01:08:56.280 but the 2016s were held to be unreasonable. So what other DFC do we have to work with? 01:08:56.305 --> 01:08:59.686 Well, we contend that the DFCS can be in flux 01:08:59.698 --> 01:09:03.259 following a DFC petition, which the Legislature contemplates in 01:09:03.271 --> 01:09:06.658 the statute. I touched on that a little bit. Sorry, I wanted 01:09:06.670 --> 01:09:10.125 to elaborate, but, you know, I was pressed for time. And so I 01:09:10.137 --> 01:09:13.410 think that the Legislature expressly understands that when 01:09:13.422 --> 01:09:17.041 there's a petition, there's a process that needs to be followed. 01:09:17.053 --> 01:09:20.499 You have to need to go back to the GMA. You need to say, look 01:09:20.511 --> 01:09:23.857 at this again. You need to repropose something, you need to 01:09:23.869 --> 01:09:27.141 have a notice. You need to have hearing. You need to do an 01:09:27.153 --> 01:09:30.770 explanatory report. And technically, during that period of time, 01:09:30.782 --> 01:09:34.283 there is no DFC. No, the Legislature did not say reinstate the 01:09:34.295 --> 01:09:37.640 old one in the meantime, so the Legislature understood that 01:09:37.652 --> 01:09:40.926 this is a fluid process. The DFCS are 50 years plus in the 01:09:40.938 --> 01:09:44.447 future, we've gotta work this process so we don't go back. And 01:09:44.459 --> 01:09:48.130 that's why the statute says, was revised to update it, that every 01:09:48.142 --> 01:09:51.545 five years. It changed from 2010. It changed it to 2021. The 01:09:51.557 --> 01:09:54.769 Legislature, I think when you read the statute in all the 01:09:54.781 --> 01:09:58.450 provisions together, never intended for a DFC to last longer than 01:09:58.462 --> 01:10:02.125 five years. And we just respectfully think that this is the wrong 01:10:02.137 --> 01:10:05.422 answer to this problem. And we think that we, there's some 01:10:05.434 --> 01:10:08.872 things that can be done. Lone Star is working very diligently 01:10:08.884 --> 01:10:12.444 with the GMA to get its DFCs expedited. We certainly understand 01:10:12.456 --> 01:10:16.011 their decision not to do a unilateral DFC adjustment. A one-off 01:10:16.023 --> 01:10:19.367 for Lone Star. There's a question about whether the statute 01:10:19.379 --> 01:10:23.037 technically authorizes that, we're not getting into that. We just 01:10:23.049 --> 01:10:26.553 want to move forward. We are adopting rules. This is not about 01:10:26.565 --> 01:10:29.895 avoiding a DFC. This is not about avoiding regulation. Lone 01:10:29.907 --> 01:10:33.361 Star is working diligently to do both. As you know, our rules 01:10:33.373 --> 01:10:36.756 were deemed valid and enforceable. Our main regulatory tool, 01:10:36.768 --> 01:10:40.108 and we are working to propose new ones. We just need to get 01:10:40.120 --> 01:10:43.509 through this process and let the DFC be in flux until we get 01:10:43.521 --> 01:10:47.145 anyone and we think that's what the statute mandates. Thank you. 01:10:47.170 --> 01:10:48.975 Question? 01:10:49.000 --> 01:10:52.868 Chairman, members of the board. 01:10:52.880 --> 01:10:56.598 My name is Marvin Jones. I represent a number 01:10:56.610 --> 01:11:00.323 of utility companies in the Montgomery County 01:11:00.335 --> 01:11:04.383 area. We urge the board to accept the appeal from 01:11:04.395 --> 01:11:08.347 Long Star Ground Water Conservation District and 01:11:08.359 --> 01:11:12.161 to reject the idea that it should be forced to 01:11:12.173 --> 01:11:15.888 go back to the 2010 DFCs. Those DFCS are very 01:11:15.900 --> 01:11:20.114 similar to the 2016 DFCs. Those were rejected after 01:11:20.126 --> 01:11:23.753 a challenge by my clients and others because 01:11:23.765 --> 01:11:27.727 they violated constitutionally protected private 01:11:27.739 --> 01:11:31.858 property rights of my clients. The 2010 DFCs would 01:11:31.870 --> 01:11:35.515 do the same thing. 2010 DFCs were subject to 01:11:35.527 --> 01:11:39.075 a DFC challenge, but that DFC challenge was 01:11:39.087 --> 01:11:42.891 later certainly criticized as affording no due 01:11:42.903 --> 01:11:47.025 process rights to those who were challenging them. 01:11:47.037 --> 01:11:50.684 Legislature changed that procedure. The 2016 01:11:50.696 --> 01:11:54.565 procedure did afford due process. Certainly, we 01:11:54.577 --> 01:11:58.620 have not been given the opportunity at this point 01:11:58.632 --> 01:12:02.507 to challenge the 2010 DFCs using a process that 01:12:02.519 --> 01:12:06.244 affords due process to my clients. Unless, of 01:12:06.256 --> 01:12:10.290 course, we can now do that, which I'm prepared to 01:12:10.302 --> 01:12:14.105 do if necessary. Secondly, the rules that were 01:12:14.117 --> 01:12:17.671 designed to achieve the 2010 DFCs have been 01:12:17.683 --> 01:12:21.897 declared by court to be invalid, abanitio, from the 01:12:21.909 --> 01:12:25.618 beginning and unenforceable. And so we have a 01:12:25.630 --> 01:12:29.431 situation where the Executive Administrator is 01:12:29.443 --> 01:12:33.401 suggesting we use DFCs that suffer from the same 01:12:33.413 --> 01:12:37.544 constitutional problems, as did the 2016, and that 01:12:37.556 --> 01:12:41.429 we, I guess, enforce those with rules that have 01:12:41.441 --> 01:12:45.246 been declared to be invalid. I think the board 01:12:45.258 --> 01:12:48.894 should instead step back and allow Lone Star 01:12:48.906 --> 01:12:52.798 some room to develop the new DFCs in accordance 01:12:52.810 --> 01:12:56.595 with the statutory procedure, and then develop 01:12:56.607 --> 01:13:00.323 rules to achieve those DFCs in an orderly way 01:13:00.335 --> 01:13:04.045 without having to deal with this issue of the 01:13:04.057 --> 01:13:07.860 2010 DFCs, which again suffer from many of the 01:13:07.872 --> 01:13:11.660 same vices. I would finally point out that the 01:13:11.672 --> 01:13:15.472 statutory procedure has not been followed here 01:13:15.484 --> 01:13:19.359 by the other districts of GMA 14. The statutory 01:13:19.371 --> 01:13:23.177 procedure says that if a DFC has been declared 01:13:23.189 --> 01:13:27.056 unreasonable, then the districts in the GMA are 01:13:27.068 --> 01:13:30.705 to reconvene, not convene originally, but to 01:13:30.717 --> 01:13:34.429 reconvene in a new planning committee to then 01:13:34.441 --> 01:13:38.650 revise the DFC that has been declared unreasonable, 01:13:38.662 --> 01:13:42.694 so that it is, as the statute says, a new DFC and 01:13:42.706 --> 01:13:46.670 only for the district that received the petition 01:13:46.682 --> 01:13:50.721 challenging the DFC. And that was only Lone Star. 01:13:50.733 --> 01:13:54.216 Instead, the districts of GMA 14 have said 01:13:54.228 --> 01:13:58.257 that they think that process is unwieldy and they 01:13:58.269 --> 01:14:02.309 want to go back. And they want to just go forward 01:14:02.321 --> 01:14:06.113 with the third round of DFC planning and allow 01:14:06.125 --> 01:14:09.848 that to provide the new DFC. If the districts 01:14:09.860 --> 01:14:13.406 in GMA 14 would simply follow the statutory 01:14:13.418 --> 01:14:17.300 procedures, then I don't think we would be here 01:14:17.312 --> 01:14:21.026 with this appeal today. I'm going to hand Mr. 01:14:21.038 --> 01:14:25.087 Reynolds a group of documents that I'd like to be 01:14:25.099 --> 01:14:29.048 made a part of the record, there are two letters 01:14:29.060 --> 01:14:32.698 from me that explain my positions. There's a 01:14:32.710 --> 01:14:36.746 letter from Brian Sledge explaining why you can't 01:14:36.758 --> 01:14:40.239 have disparate DFCs within a GMA. And then 01:14:40.251 --> 01:14:44.365 there's a spreadsheet that I think GMA 14 prepared 01:14:44.377 --> 01:14:48.018 that shows how the DFCS from 2010 compare to 01:14:48.030 --> 01:14:52.312 those from 2016 in terms of impact on the Montgomery 01:14:52.324 --> 01:14:55.728 County Aquifers. Thank you for your time. 01:14:55.753 --> 01:15:04.030 Thank you. Who do we have next? 01:15:04.055 --> 01:15:08.129 Mr Lilac? 01:15:08.153 --> 01:15:13.672 Morning. Thank you for this opportunity 01:15:13.684 --> 01:15:18.227 to address the Texas Water Development Board. 01:15:18.239 --> 01:15:22.775 My name is Robert Lilac. I serve on Woodlands 01:15:22.787 --> 01:15:27.830 Drainage Task Force, as president of The Woodlands 01:15:27.855 --> 01:15:33.077 MUD Number 1, and as a director of the Grogan's Mill 01:15:33.089 --> 01:15:38.027 Village Association, which includes an area known 01:15:38.051 --> 01:15:42.680 as the Grogan's Point. (buzzer goes off early) 01:15:42.706 --> 01:15:48.843 - Excuse me. Sorry about that. 01:15:48.868 --> 01:15:57.340 - A little quick on that button, Joe (laughter) 01:15:57.364 --> 01:16:04.639 Sorry, continue please, sir. 01:16:04.664 --> 01:16:10.156 Approximately 100 higher end homes in Grogan's point 01:16:10.168 --> 01:16:15.832 flooded during Hurricane Harvey. Many of these same homes also flooded 01:16:15.844 --> 01:16:21.102 during the Tax Day and Memorial Day floods, some only by a matter 01:16:21.114 --> 01:16:26.465 of inches. Floodwater damages to Grogan's Point alone have totaled 01:16:26.490 --> 01:16:31.798 millions of dollars over the last four years. Letters 01:16:31.810 --> 01:16:36.440 and other data has been submitted to the Texas 01:16:36.452 --> 01:16:41.272 Water Development Board concerning subsidence in 01:16:41.284 --> 01:16:45.920 South Montgomery County. Residents in Grogan's 01:16:45.932 --> 01:16:50.651 Point and other nearby areas are very concerned 01:16:50.663 --> 01:16:55.592 about irreversible subsidence caused by excessive 01:16:55.604 --> 01:17:00.329 groundwater pumping, especially when there is a 01:17:00.341 --> 01:17:05.177 surplus of surface water available to meet water 01:17:05.189 --> 01:17:10.202 demands. It is within the power of the Texas Water 01:17:10.214 --> 01:17:14.846 Development Board to help stem unnecessary and 01:17:14.858 --> 01:17:19.976 avoidable groundwater pumping when there is so much 01:17:19.988 --> 01:17:24.724 surface water available. Accordingly, I request 01:17:24.736 --> 01:17:29.456 that the Texas Water Development Board deny the 01:17:29.468 --> 01:17:34.300 appeal of the Lone Star Ground Water District to 01:17:34.312 --> 01:17:39.236 increase groundwater pumping under their proposed 01:17:39.248 --> 01:17:44.282 ground water management plan. Thank you very much. 01:17:44.307 --> 01:17:49.039 - Thank you. - 01:17:54.550 Jackson>Thank you, - Mr Looks. 01:17:54.550 --> 01:17:58.549 Good morning, Directors. I'm 01:17:58.561 --> 01:18:02.572 honored to address you today. My name is Bob 01:18:02.584 --> 01:18:06.857 Looks. I'm a 21 year resident of The Woodlands. 01:18:06.869 --> 01:18:11.154 I have been elected to two terms as director of 01:18:11.166 --> 01:18:15.168 Montgomery County Municipal Utility District 01:18:15.180 --> 01:18:19.641 Number 60. I currently serve as Vice President. I 01:18:19.653 --> 01:18:24.018 was elected and served as the Gulf Coast trustee 01:18:24.030 --> 01:18:27.961 of the Association of Water Board Directors 01:18:27.973 --> 01:18:35.641 Texas. I was elected and currently serve on the board of directors of the Texas Water 01:18:35.653 --> 01:18:39.838 Conservation Association, representing utility 01:18:39.850 --> 01:18:44.404 district panels. The Gulf Coast aquifer serves all 01:18:44.416 --> 01:18:51.911 Texans residing within its boundaries. The Legislature has established ground water 01:18:51.923 --> 01:18:56.468 conservation districts and ground water management 01:18:56.480 --> 01:19:00.502 areas, GMAs, as the responsible entities for 01:19:00.514 --> 01:19:04.865 regulating and managing local aquifer conditions 01:19:04.877 --> 01:19:09.061 and groundwater production. The implementation 01:19:09.073 --> 01:19:13.341 of the 2010 and 2016 DFCs for GMA 14, resulting 01:19:13.353 --> 01:19:16.652 in stabilized groundwater levels for 01:19:16.664 --> 01:19:20.750 Montgomery County, after decades of rapid and 01:19:20.762 --> 01:19:24.682 severe water declines. We support the staff 01:19:24.694 --> 01:19:29.233 recommendation to utilize the 2010 DFCs due to the 01:19:29.245 --> 01:19:33.350 short and long term negative negative effects 01:19:33.362 --> 01:19:37.536 of subsidence and aquifer depletion if no DFCs 01:19:37.548 --> 01:19:41.912 are adhered to in the Lone Star Management Plan. 01:19:41.924 --> 01:19:45.926 Therefore, I humbly and respectfully request 01:19:45.938 --> 01:19:50.041 that the Texas Water Development Board reject 01:19:50.053 --> 01:19:54.409 the appeal for reversal of your earlier decision 01:19:54.421 --> 01:19:58.253 as petitioned before you today by the Lone 01:19:58.265 --> 01:20:02.448 Star Ground Water Conservation District. Thank 01:20:02.460 --> 01:20:06.209 you for your consideration of my request. 01:20:06.234 --> 01:20:08.867 Thank you. 01:20:08.892 --> 01:20:13.080 And Mr Stinson. 01:20:13.080 --> 01:20:18.411 Good morning, Chairman Lake and Directors Jackson and Paup. 01:20:18.423 --> 01:20:23.974 Thank you very much for the opportunity to speak this morning. My name is James 01:20:23.986 --> 01:20:29.531 Stinson. I am the General Manager for The Woodlands Water Agency. I'm here this 01:20:29.543 --> 01:20:32.657 morning to deliver comments on behalf of our 01:20:32.669 --> 01:20:35.447 president, Mr. Eric Heard, who due to a 01:20:35.459 --> 01:20:41.001 conflict could not make the meeting this morning. The Woodlands Water Agency is 01:20:41.013 --> 01:20:46.498 the administrative agency for 10 Municipal Utility Districts in The Woodlands, 01:20:46.510 --> 01:20:52.058 Texas. We're located within the Lone Star Ground Water District Management Plan 01:20:52.070 --> 01:20:57.769 boundary. We provide water distribution, wastewater collection and storm drainage 01:20:57.781 --> 01:21:03.521 management for an area of approximately 25 square miles and over 100,000 residents 01:21:03.533 --> 01:21:06.224 in Montgomery County. We serve retail, 01:21:06.236 --> 01:21:09.354 commercial, industrial and office facilities 01:21:09.366 --> 01:21:12.469 that make The Woodlands one of the strongest 01:21:12.481 --> 01:21:15.043 economies in Texas. A primary source 01:21:15.055 --> 01:21:20.466 of drinking water for the Woodlands is groundwater and sustainable management 01:21:20.478 --> 01:21:25.805 of the aquafers in Montgomery County is vitally important to the quality and 01:21:25.817 --> 01:21:31.433 reliability of our groundwater underground water supply. We urge the Texas Water 01:21:31.445 --> 01:21:37.194 Development board members to uphold your staff's recommendation that the Lone Star 01:21:37.206 --> 01:21:42.690 Management Plan utilize your 2010 GMA 14 Desired Future Conditions. Thank you. 01:21:42.715 --> 01:21:43.889 thank you. 01:21:43.913 --> 01:21:49.737 That concludes all those that have registered to 01:21:49.749 --> 01:21:55.584 speak. If there any others that wish to address this point. If not. 01:21:55.609 --> 01:21:59.814 Alright. Seeing no other members 01:21:59.826 --> 01:22:03.536 of the public who would like to address the 01:22:03.548 --> 01:22:07.844 board on this item, any other questions, comments? 01:22:07.856 --> 01:22:11.234 At this point, I'll entertain a motion. 01:22:11.259 --> 01:22:15.590 Mr Chairman, I move we deny the appeal filed by the Lone Star 01:22:15.602 --> 01:22:18.064 Ground Water Conservation District regarding 01:22:18.076 --> 01:22:20.000 the determination by the Executive 01:22:20.012 --> 01:22:24.322 Administrator that the Ground Water Management Plans submitted by the district 01:22:24.334 --> 01:22:28.710 is not administratively complete as recommended by our Executive Administrator. 01:22:28.710 --> 01:22:33.200 - Is there a second? - I second. 01:22:33.225 --> 01:22:36.278 All in favor, say aye. Motion passes. Next item, please. 01:22:36.303 --> 01:22:40.917 The board will receive any other comments from the public 01:22:40.942 --> 01:22:44.853 If no one's registered to speak, if 01:22:44.865 --> 01:22:48.789 any other member of the public would like to address 01:22:48.801 --> 01:22:52.569 the board, now is the time. Seeing none. The board 01:22:52.581 --> 01:22:56.659 will not meet in Closed Session today, pursuant to the 01:22:56.671 --> 01:23:00.272 provisions in Section 551.071 and 551.074 of the 01:23:00.284 --> 01:23:04.191 Texas Open Meetings Action, Chapter 551 of the Texas 01:23:04.203 --> 01:23:08.696 Government Code. This meeting of the Texas Water Development 01:23:08.708 --> 01:23:12.400 Board is hereby adjourned. The time is 10:55 a.m.