WEBVTT 00:00:08.730 --> 00:00:09.563 <v ->Good Morning.</v> 00:00:10.450 --> 00:00:12.690 This meeting of the Texas Water Development Board, 00:00:12.690 --> 00:00:13.920 is hereby called to order. 00:00:13.920 --> 00:00:16.350 The time is 9:32am. 00:00:16.350 --> 00:00:17.800 For the record, my name is Peter Lake 00:00:17.800 --> 00:00:20.763 and with me today are Kathleen Jackson and Brooke Paup. 00:00:21.690 --> 00:00:24.910 Before we dive into our agenda for the day, 00:00:24.910 --> 00:00:26.970 I would like to recognize Director Jackson 00:00:26.970 --> 00:00:29.820 for her distinguished Public Service Award 00:00:29.820 --> 00:00:32.560 from the American Water Works Association. 00:00:32.560 --> 00:00:35.420 Everybody on the board and the staff 00:00:37.980 --> 00:00:42.940 at the TWDB and throughout the state would all agree 00:00:42.940 --> 00:00:44.340 that Director Jackson, 00:00:44.340 --> 00:00:48.160 is by far the most relentlessly encouraging 00:00:48.160 --> 00:00:52.883 and enthusiastic supporter and advocate of Texas Water. 00:00:53.880 --> 00:00:55.400 She does an incredible job. 00:00:55.400 --> 00:00:57.425 So, congratulations again. 00:00:57.425 --> 00:00:59.495 <v Brooke>Yay.</v> 00:00:59.495 --> 00:01:01.460 <v ->It's really about the board,</v> 00:01:01.460 --> 00:01:03.703 so, you know, the world the jungles. 00:01:03.703 --> 00:01:05.913 So, thank you so much. 00:01:07.680 --> 00:01:08.513 <v ->Yes, ma'am.</v> 00:01:09.450 --> 00:01:11.150 Honored to be here with you. <v ->Same.</v> 00:01:11.150 --> 00:01:13.963 <v ->All right, Mr. Harden. Next item please.</v> 00:01:18.172 --> 00:01:20.150 <v ->Mr. Chairman the first item on the agenda,</v> 00:01:20.150 --> 00:01:23.670 is consider amending contracts number 1900012316 00:01:27.080 --> 00:01:30.850 with Northbridge Environmental Management Consultants 00:01:30.850 --> 00:01:32.010 to allow for continued 00:01:35.010 --> 00:01:39.263 to application for an amount not to exceed $90,000. 00:01:45.310 --> 00:01:47.170 <v ->Good morning, Chairman Lake,</v> 00:01:47.170 --> 00:01:49.590 Director Jackson and Director Paup. 00:01:49.590 --> 00:01:51.970 For the record, my name is Patricia Avitia 00:01:51.970 --> 00:01:54.533 and I'm with the Executive Administrator staff. 00:01:55.490 --> 00:01:58.020 This agenda item is to consider approving an amendment 00:01:58.020 --> 00:02:00.960 to the existing Taxwise reports contract 00:02:00.960 --> 00:02:04.430 for an amount not to exceed $90,000. 00:02:04.430 --> 00:02:06.690 Taxwise is the agency's enterprise loan 00:02:06.690 --> 00:02:09.310 and grant management information system. 00:02:09.310 --> 00:02:12.050 It streamlines the overall loan, grant 00:02:12.050 --> 00:02:14.110 and project financing business processes 00:02:14.110 --> 00:02:17.260 and allows for the accurate and timely collection, analysis 00:02:17.260 --> 00:02:20.860 and reporting of data related to these processes. 00:02:20.860 --> 00:02:23.740 They are not to exceed amount of $90,000 will come 00:02:23.740 --> 00:02:27.540 from the Annual Information Technology operating budget. 00:02:27.540 --> 00:02:28.900 Expected report development 00:02:28.900 --> 00:02:31.770 and enhancements will accommodate implementation 00:02:31.770 --> 00:02:35.090 of recently passed flood-related legislation 00:02:35.090 --> 00:02:37.920 as well as improve standard business processes. 00:02:37.920 --> 00:02:40.910 The Executive Administrator Jeff Walker recommends approval 00:02:40.910 --> 00:02:42.210 of this item. 00:02:42.210 --> 00:02:43.760 And, this concludes my presentation. 00:02:43.760 --> 00:02:46.363 And, I'm happy to answer any questions you might have. 00:02:48.050 --> 00:02:48.883 <v ->Thank you Patricia.</v> 00:02:48.883 --> 00:02:49.823 Questions? Comments? 00:02:51.260 --> 00:02:52.963 If not, I'll entertain a motion. 00:02:54.500 --> 00:02:56.600 <v ->Chairman, I move we approve the amendment</v> 00:02:56.600 --> 00:02:58.120 of contract 1900012316 00:03:01.700 --> 00:03:04.660 with Northbridge Environmental Management Consultants 00:03:04.660 --> 00:03:06.990 to allow for continued report development 00:03:06.990 --> 00:03:10.870 for the Texas Water Information System Expansion application 00:03:10.870 --> 00:03:13.580 for an amount not to exceed $90,000 00:03:13.580 --> 00:03:15.883 as recommended by our Executive Administrator. 00:03:16.850 --> 00:03:18.071 <v ->Is there a second?</v> 00:03:18.071 --> 00:03:19.227 <v ->I second.</v> 00:03:19.227 --> 00:03:21.116 <v ->All in favor say aye. Aye.</v> 00:03:21.116 --> 00:03:22.700 <v ->Aye.</v> <v ->Aye.</v> 00:03:22.700 --> 00:03:26.413 <v ->Motion passes. Thanks Patricia. Next item please.</v> 00:03:28.220 --> 00:03:30.990 <v ->Mr. Chairman, the next item is consider approving</v> 00:03:30.990 --> 00:03:34.140 by resolution, the issuance sale and delivery 00:03:34.140 --> 00:03:36.280 of Texas Water Development Board State Water 00:03:36.280 --> 00:03:39.690 Implementation Revenue Fund for Texas revenue bonds 00:03:39.690 --> 00:03:41.450 in one or more series, 00:03:41.450 --> 00:03:43.300 the execution of the bond indentures, 00:03:44.384 --> 00:03:46.910 the execution of State Water Implementation Fund 00:03:46.910 --> 00:03:49.470 for Texas funds transfer agreement. 00:03:49.470 --> 00:03:51.720 The preliminary official statement 00:03:51.720 --> 00:03:54.300 and authorization for the Executive Administrator, 00:03:54.300 --> 00:03:56.700 General Counsel, Chief Financial Officer, 00:03:56.700 --> 00:03:58.050 Development Fund Manager 00:03:58.050 --> 00:04:00.050 and any other authorized representative 00:04:00.050 --> 00:04:02.590 to act on behalf of the Texas Water Development Board 00:04:02.590 --> 00:04:04.763 in the sale and delivery of such bonds. 00:04:09.710 --> 00:04:11.700 <v ->Good morning Chairman Lake, Director Jackson</v> 00:04:11.700 --> 00:04:12.830 and Director Paup. 00:04:12.830 --> 00:04:14.910 For the record, I am Georgia Sanchez 00:04:14.910 --> 00:04:17.750 of the Executive Administrator staff. 00:04:17.750 --> 00:04:19.970 With this item the Executive Administrator, 00:04:19.970 --> 00:04:22.930 is recommending the approval of the documents associated 00:04:22.930 --> 00:04:25.440 with this false dwarf bond sale 00:04:25.440 --> 00:04:28.720 for revenue bonds including a delegation of Authority. 00:04:28.720 --> 00:04:32.070 Proceeds of the bonds will be used to provide funding 00:04:32.070 --> 00:04:34.660 for the financial assistance requests 00:04:34.660 --> 00:04:37.030 for the committed SWIFT program projects 00:04:37.030 --> 00:04:39.280 and to pay costs of issuance. 00:04:39.280 --> 00:04:42.990 In the delegation we have parameter set requests 00:04:42.990 --> 00:04:47.990 and not to exceed par amount of approximately $778 million. 00:04:48.400 --> 00:04:51.880 This amount will be adjusted at the time of the sale 00:04:51.880 --> 00:04:54.510 to generate only those funds that are needed 00:04:54.510 --> 00:04:56.893 to close on the financial assistance request. 00:04:58.490 --> 00:05:00.950 Also, requested as a not to exceed transfer amount 00:05:00.950 --> 00:05:04.230 of $85 million from the SWIFT Fund. 00:05:04.230 --> 00:05:06.800 And, again, the actual transfer will be determined 00:05:06.800 --> 00:05:09.090 after the SWIFT bonds are priced 00:05:09.090 --> 00:05:11.790 and the bond purchase agreement is signed. 00:05:11.790 --> 00:05:13.470 Our consulting team at Hilltop 00:05:13.470 --> 00:05:16.140 as financial advisor will call upon Kirsten Horton 00:05:16.140 --> 00:05:17.390 as bond counsel. 00:05:17.390 --> 00:05:19.510 Bracewell is disclosure council 00:05:19.510 --> 00:05:21.280 and an underwriting syndicate led 00:05:21.280 --> 00:05:23.370 by Senior Manager, Morgan Stanley, 00:05:23.370 --> 00:05:27.950 will have all been previously approved by the board. 00:05:27.950 --> 00:05:29.290 And, with all of our bond sales, 00:05:29.290 --> 00:05:32.330 we do work diligently to assess costs 00:05:32.330 --> 00:05:35.560 and expenses pertaining to the sale in an effort 00:05:35.560 --> 00:05:36.683 to keep them low. 00:05:37.700 --> 00:05:41.240 If approved today, we will formally announce this sale 00:05:41.240 --> 00:05:44.273 to press the bonds on or around September 22nd. 00:05:45.200 --> 00:05:48.550 We anticipate being before you for the lending rate proposal 00:05:48.550 --> 00:05:50.690 on or about October 1st. 00:05:50.690 --> 00:05:54.350 And, closing our bonds on or around October 8th, 00:05:54.350 --> 00:05:56.360 at which time entities will begin to close 00:05:56.360 --> 00:05:57.410 on their obligations. 00:06:01.940 --> 00:06:04.723 <v ->Thank you Georgia. Questions or comments?</v> 00:06:05.870 --> 00:06:08.390 <v ->Well, Georgia thanks for all this work.</v> 00:06:08.390 --> 00:06:10.260 It's kind of amazing to think 00:06:10.260 --> 00:06:11.253 that we were are moving forward. 00:06:11.253 --> 00:06:13.690 And, with this bond sale, we'll have, you know, 00:06:13.690 --> 00:06:18.690 over $9 billion of, I guess capital out there working 00:06:19.500 --> 00:06:22.720 to get the needed infrastructure that we need 00:06:22.720 --> 00:06:24.630 for not just people today, 00:06:24.630 --> 00:06:26.270 but people in the future. 00:06:26.270 --> 00:06:30.860 And, if no one is concerned about having enough water 00:06:30.860 --> 00:06:32.560 in Texas and they're continuing to think 00:06:32.560 --> 00:06:34.290 about investing in Texas 00:06:34.290 --> 00:06:36.193 and moving to Texas, and, you know. 00:06:36.193 --> 00:06:39.140 It's so important the work that you all do. 00:06:39.140 --> 00:06:40.700 Appreciate the effort in, 00:06:40.700 --> 00:06:42.220 like you mentioned in your presentation, 00:06:42.220 --> 00:06:43.850 keeping costs down. 00:06:43.850 --> 00:06:47.930 And, also, you know, the outreach that we do to investors. 00:06:47.930 --> 00:06:49.860 I know that Peter has led that 00:06:51.050 --> 00:06:52.530 along with the rest of the team. 00:06:52.530 --> 00:06:55.630 So, it's so important that we have this for communities, 00:06:55.630 --> 00:06:58.260 both the big communities as well as the small communities 00:06:58.260 --> 00:07:00.680 to have the infrastructure that we need 00:07:00.680 --> 00:07:02.030 and the water that we need for the future. 00:07:02.030 --> 00:07:03.200 So, thank you. 00:07:05.990 --> 00:07:08.370 <v ->It's a great story of the SWIFT.</v> 00:07:08.370 --> 00:07:12.800 We are so lucky that the legislature was so proactive 00:07:12.800 --> 00:07:15.820 in 2013 and passed HB 4. 00:07:15.820 --> 00:07:19.250 So, looking forward to this next round, Georgia. 00:07:19.250 --> 00:07:21.310 You've put together a tremendous team. 00:07:21.310 --> 00:07:24.160 And, I really appreciate how mindful you always are 00:07:24.160 --> 00:07:26.900 about controlling costs to the state. 00:07:26.900 --> 00:07:28.527 It's a huge deal. Thank you. 00:07:30.389 --> 00:07:33.640 <v ->Well said, I think it's an understatement</v> 00:07:33.640 --> 00:07:35.690 to say that we live in strange 00:07:35.690 --> 00:07:37.660 and uncertain times, Georgia. 00:07:37.660 --> 00:07:40.530 And, this will be the first swift transaction we do 00:07:40.530 --> 00:07:43.110 and it's post COVID. 00:07:43.110 --> 00:07:45.760 But, as always, I know you'll be diligent 00:07:45.760 --> 00:07:48.150 and working with our outside partners 00:07:48.150 --> 00:07:50.140 and ensuring a smooth transaction 00:07:51.600 --> 00:07:54.670 and making sure that the board achieves the objectives 00:07:54.670 --> 00:07:55.980 that we're charged with. 00:07:55.980 --> 00:07:59.830 Texas works on water and water provides water 00:07:59.830 --> 00:08:02.780 for communities is more important now than ever. 00:08:02.780 --> 00:08:04.600 Absolutely essential service. 00:08:04.600 --> 00:08:06.330 Thank you for everything. 00:08:06.330 --> 00:08:07.230 Is there a motion? 00:08:08.590 --> 00:08:11.640 <v ->Mr. Chairman, I move we adopt the proposed resolution</v> 00:08:11.640 --> 00:08:13.800 for A, the issuance sale and delivery 00:08:13.800 --> 00:08:16.480 of the Texas Water Development Board, 00:08:16.480 --> 00:08:18.700 State Water Implementation Revenue Fund 00:08:18.700 --> 00:08:21.270 for Texas revenue bonds and one or more series. 00:08:21.270 --> 00:08:23.840 B, The execution of the bond adventures. 00:08:23.840 --> 00:08:26.810 C, The execution of State Water Implementation Fund 00:08:26.810 --> 00:08:29.430 for Texas funds transfer agreement. 00:08:29.430 --> 00:08:31.430 D, The preliminary official statement 00:08:31.430 --> 00:08:34.610 and E, authorization for the Executive Administrator, 00:08:34.610 --> 00:08:37.270 General Counsel, Chief Financial Officer, 00:08:37.270 --> 00:08:38.560 Development Fund Manager 00:08:38.560 --> 00:08:40.800 or any other authorized representative 00:08:40.800 --> 00:08:43.330 to act on behalf of the Texas Water Development Board 00:08:43.330 --> 00:08:45.560 in the sale and delivery of such bonds 00:08:45.560 --> 00:08:47.913 as recommended by our Executive Administrator. 00:08:48.819 --> 00:08:50.060 <v ->Is there a second?</v> 00:08:50.060 --> 00:08:51.610 <v ->I Second.</v> 00:08:51.610 --> 00:08:53.571 <v ->All in favor say aye. Aye.</v> 00:08:53.571 --> 00:08:54.571 <v ->Aye.</v> <v ->Aye.</v> 00:08:55.850 --> 00:08:56.683 <v ->Motion passes.</v> 00:08:58.230 --> 00:09:00.680 Thank you, Georgia. Next item please, Mr. Harden. 00:09:01.713 --> 00:09:03.470 <v ->Mr. Chairman, the next item,</v> 00:09:03.470 --> 00:09:06.840 is considered amending the previously adopted, 00:09:06.840 --> 00:09:08.470 Texas Water Development Board 00:09:08.470 --> 00:09:12.250 resolution number 16-071 as amended 00:09:12.250 --> 00:09:16.250 by resolutions number 17-073 00:09:16.250 --> 00:09:18.953 and 18-084 and number 19-069, 00:09:20.940 --> 00:09:24.040 to modify the City of Bryan's State Water Implementation 00:09:24.040 --> 00:09:26.870 Revenue Fund for Texas annual loan closing schedule 00:09:26.870 --> 00:09:28.870 to extend the commitment period. 00:09:28.870 --> 00:09:32.893 And, Tom Barnett will present to the board on this item. 00:09:32.893 --> 00:09:34.970 <v ->Hey, Good Morning, Chairman Lake,</v> 00:09:34.970 --> 00:09:36.630 Director Jackson, Director Paup. 00:09:36.630 --> 00:09:38.130 For the record, my name is Tom Barnett 00:09:38.130 --> 00:09:40.113 of the Executive Administrative staff. 00:09:41.020 --> 00:09:42.550 In 2016, the Board approved 00:09:42.550 --> 00:09:45.030 an $18 million multi-year commitment 00:09:45.030 --> 00:09:47.730 to the City of Bryan for an Aquifer Storage 00:09:47.730 --> 00:09:51.140 and Recovery injection well and recovery well. 00:09:51.140 --> 00:09:53.830 The city has experienced delays in retrofitting a well 00:09:53.830 --> 00:09:55.683 in order to begin the pilot testing, 00:09:56.630 --> 00:09:59.670 which they now anticipate getting underway this summer. 00:09:59.670 --> 00:10:02.830 The city expects testing to take six to 12 months, 00:10:02.830 --> 00:10:05.080 which should be sufficient to allow them to close 00:10:05.080 --> 00:10:07.040 on the commitment next year. 00:10:07.040 --> 00:10:09.290 The city is requesting a one year extension 00:10:09.290 --> 00:10:11.690 to the closing schedule to extend the commitment period 00:10:11.690 --> 00:10:12.873 through 2021. 00:10:14.450 --> 00:10:17.190 The Executive Administrator recommends approval 00:10:17.190 --> 00:10:18.780 of this item. 00:10:18.780 --> 00:10:19.925 That concludes my presentation. 00:10:19.925 --> 00:10:21.625 I'm happy to answer any questions. 00:10:23.710 --> 00:10:26.850 <v ->Thank you, Tom. Questions? Comments?</v> 00:10:26.850 --> 00:10:28.010 <v ->Aquifer Storage and Recovery,</v> 00:10:28.010 --> 00:10:30.980 is so important moving forward to have that tool 00:10:30.980 --> 00:10:33.320 in the toolbox and that strategy and play. 00:10:33.320 --> 00:10:37.410 And, it's good to know that I guess the issue 00:10:37.410 --> 00:10:39.310 with well has been resolved 00:10:39.310 --> 00:10:41.030 and they're moving forward with their pilot testing, 00:10:41.030 --> 00:10:43.260 which of course is, you know, 00:10:43.260 --> 00:10:45.800 a necessary step in the long procedure. 00:10:45.800 --> 00:10:47.710 So, thanks for the work on this 00:10:47.710 --> 00:10:51.920 and, again, exciting to see an ASR project moving forward. 00:10:54.465 --> 00:10:56.070 <v ->Absolutely.</v> 00:10:56.070 --> 00:10:57.820 And, I know when you're breaking ground 00:10:57.820 --> 00:10:59.760 with new innovative strategies like this, 00:10:59.760 --> 00:11:01.070 it doesn't always go in straight lines. 00:11:01.070 --> 00:11:02.580 There are bumps on the road. 00:11:02.580 --> 00:11:06.850 So, glad they're overcoming these challenges and delays 00:11:06.850 --> 00:11:11.140 and look forward to seeing this project come to fruition. 00:11:11.140 --> 00:11:12.040 Is there a motion? 00:11:13.040 --> 00:11:15.410 <v ->Chairman, I move we adopt the proposed resolution</v> 00:11:15.410 --> 00:11:18.740 to amend the previously adopted Texas Water Development 00:11:18.740 --> 00:11:22.680 Board resolution number 16-071, 00:11:22.680 --> 00:11:27.240 as amended by resolution numbers 17-073, 00:11:27.240 --> 00:11:31.187 number 18-084 and number 19-069, 00:11:32.500 --> 00:11:35.840 to modify the City Bryan State Water Implementation Revenue 00:11:35.840 --> 00:11:38.980 Fund for Texas annual loan closing schedule 00:11:38.980 --> 00:11:40.650 to extend the commitment period 00:11:40.650 --> 00:11:42.950 as recommended by our Executive Administrator. 00:11:43.859 --> 00:11:45.377 <v ->Is there a second?</v> 00:11:45.377 --> 00:11:46.294 <v ->I Second.</v> 00:11:47.240 --> 00:11:48.852 <v ->All in favor say aye. Aye.</v> 00:11:48.852 --> 00:11:49.852 <v ->Aye.</v> <v ->Aye.</v> 00:11:50.770 --> 00:11:53.133 <v ->Motion passes. Next item please.</v> 00:11:54.830 --> 00:11:55.710 <v ->Mr. Chairman, the next item,</v> 00:11:55.710 --> 00:11:57.820 is consider approving a request 00:11:57.820 --> 00:12:00.870 from the City of Roby for financial assistance 00:12:00.870 --> 00:12:02.830 from the Drinking Water State Revolving Fund 00:12:02.830 --> 00:12:05.190 for planning, design and construction 00:12:05.190 --> 00:12:07.870 of a water system improvements project. 00:12:07.870 --> 00:12:10.670 And, Tom Barnett will present to the board on this item. 00:12:12.430 --> 00:12:14.210 <v ->Again, for the record, my name is Tom Barnett</v> 00:12:14.210 --> 00:12:17.290 of the Executive Administrative staff. 00:12:17.290 --> 00:12:19.920 The City of Roby is located in Fisher County, 00:12:19.920 --> 00:12:22.570 about 50 miles Northwest of Abilene. 00:12:22.570 --> 00:12:24.660 The city is requesting financial assistance 00:12:24.660 --> 00:12:26.720 for the planning, design and construction 00:12:26.720 --> 00:12:29.590 of a water systems and improvement project 00:12:29.590 --> 00:12:32.700 to replace a dilapidated ground storage tank. 00:12:32.700 --> 00:12:35.110 The city is currently under enforcement 00:12:35.110 --> 00:12:37.610 from the Texas Commission on Environmental Quality 00:12:37.610 --> 00:12:39.790 for the condition of the tank. 00:12:39.790 --> 00:12:42.120 Efficiently, the large tank size relative 00:12:42.120 --> 00:12:45.710 to the system's demands results in long residence times 00:12:45.710 --> 00:12:47.170 of treated water in the system, 00:12:47.170 --> 00:12:49.900 which creates the need for excessive flushing 00:12:49.900 --> 00:12:52.850 by the city in order to maintain the disinfection residual. 00:12:54.150 --> 00:12:56.430 A new ground storage tank is proposed 00:12:56.430 --> 00:13:00.080 to replace the existing 500,000 gallon tank. 00:13:00.080 --> 00:13:02.120 The new tank will be sized with a smaller capacity 00:13:02.120 --> 00:13:04.800 to reduce the system's water age issues 00:13:04.800 --> 00:13:08.390 and address all enforcement actions. 00:13:08.390 --> 00:13:10.520 The new storage tank will also improve water quality 00:13:10.520 --> 00:13:13.590 for the community and reduce water loss due 00:13:13.590 --> 00:13:14.890 to the excessive flushing. 00:13:16.200 --> 00:13:18.270 The Executive Administrator recommends approval 00:13:18.270 --> 00:13:22.193 of this item and I'm available to answer any questions. 00:13:24.520 --> 00:13:26.270 <v ->Thanks, Tom. Questions? Comments?</v> 00:13:27.470 --> 00:13:28.849 <v ->Thanks for working on this project</v> 00:13:28.849 --> 00:13:30.000 and I believe you shared with me 00:13:30.000 --> 00:13:34.290 that not only do they provide water 00:13:34.290 --> 00:13:36.910 that the storage tank will be utilized not only 00:13:36.910 --> 00:13:39.250 for the community of Roby 00:13:39.250 --> 00:13:42.132 but also they supply water 00:13:42.132 --> 00:13:43.530 and a significant amount of water 00:13:43.530 --> 00:13:46.130 to the Sylvester-McCauley Water Supply Corporation 00:13:46.130 --> 00:13:49.010 which is, you know, nearby kind of right down the road. 00:13:49.010 --> 00:13:50.570 So, I guess because of that 00:13:50.570 --> 00:13:51.940 and their Water Supply Cooperation, 00:13:51.940 --> 00:13:54.180 there'll be a taxable issue. 00:13:54.180 --> 00:13:59.180 And, I guess a great example of a way that we're able 00:14:00.420 --> 00:14:02.677 to use the Drinking Water State Revolving Fund 00:14:02.677 --> 00:14:04.670 to help small communities. 00:14:04.670 --> 00:14:06.980 And, sometimes it's not just the community 00:14:06.980 --> 00:14:09.080 that's receiving the financing, 00:14:09.080 --> 00:14:10.530 but also those that are nearby 00:14:10.530 --> 00:14:13.260 that they also help to provide water for. 00:14:13.260 --> 00:14:15.460 So, thank you for your work on this project. 00:14:19.120 --> 00:14:22.230 <v ->Hey Tom. Good job right sizing this project</v> 00:14:22.230 --> 00:14:23.660 for the City of Roby. 00:14:23.660 --> 00:14:25.400 It seems a smaller tank will be more efficient 00:14:25.400 --> 00:14:26.620 and more cost effective. 00:14:26.620 --> 00:14:29.109 So, thank you for really looking into that. 00:14:29.109 --> 00:14:31.840 <v ->Yes. Thank you.</v> 00:14:31.840 --> 00:14:32.840 <v ->Is there a motion?</v> 00:14:34.060 --> 00:14:37.010 <v ->Mr. Chairman, I move that we adopt the proposed resolution</v> 00:14:37.010 --> 00:14:39.850 providing the City of Roby financial assistance 00:14:39.850 --> 00:14:41.760 from the Drinking Water State Revolving Fund 00:14:41.760 --> 00:14:43.940 for planning, design and construction 00:14:43.940 --> 00:14:46.060 of a water systems improvements project 00:14:46.060 --> 00:14:48.593 as recommended by our Executive Administrator. 00:14:49.720 --> 00:14:50.780 <v ->Is there a second?</v> 00:14:50.780 --> 00:14:52.130 <v ->I Second</v> 00:14:52.130 --> 00:14:54.009 <v ->All in favor say aye. Aye.</v> 00:14:54.009 --> 00:14:55.009 <v ->Aye.</v> <v ->Aye.</v> 00:14:55.950 --> 00:14:58.670 <v ->Motion passes. Thank you, Tom.</v> 00:14:58.670 --> 00:15:02.020 <v ->Thank you very much.</v> <v ->Next item please.</v> 00:15:02.020 --> 00:15:03.690 <v ->Mr. Chairman, the next item on the agenda,</v> 00:15:03.690 --> 00:15:06.190 is consider amending the previously adopted, 00:15:06.190 --> 00:15:11.190 Texas Water Development Board resolution number 17-075 00:15:11.320 --> 00:15:14.530 to modify the City of Justin's State Water Implementation 00:15:14.530 --> 00:15:17.650 Revenue Fund for Texas annual closing schedule 00:15:17.650 --> 00:15:19.650 and to extend the commitment. 00:15:19.650 --> 00:15:24.430 And, Joe Koen will present to the board on this item. 00:15:24.430 --> 00:15:27.640 <v ->Good morning. For the record, my name is Joe Koen</v> 00:15:27.640 --> 00:15:30.700 of the Executive Administrator staff. 00:15:30.700 --> 00:15:33.460 The City of Justin's construction contracts, 00:15:33.460 --> 00:15:35.053 have been awarded under budget. 00:15:36.040 --> 00:15:38.880 In order to fully utilize current funds 00:15:38.880 --> 00:15:41.460 before closing on the next commitment, 00:15:41.460 --> 00:15:43.790 the city is requesting a modification 00:15:43.790 --> 00:15:46.150 to extent the closing schedule. 00:15:46.150 --> 00:15:48.960 This will allow the city to better align closely 00:15:48.960 --> 00:15:51.373 with remaining construction phase. 00:15:52.440 --> 00:15:56.520 The Executive Administrator recommends the approval 00:15:56.520 --> 00:15:58.050 of this request. 00:15:58.050 --> 00:15:59.947 This concludes my presentation 00:15:59.947 --> 00:16:01.753 and I'm available for any question. 00:16:04.010 --> 00:16:05.943 <v ->Questions or comments?</v> 00:16:05.943 --> 00:16:08.390 <v ->A great example of how the SRF can work</v> 00:16:08.390 --> 00:16:11.640 with communities and make the whole process 00:16:11.640 --> 00:16:13.860 as cost effective as possible 00:16:13.860 --> 00:16:16.430 and take down funds when they need it. 00:16:16.430 --> 00:16:18.083 So, thanks for working on this. 00:16:19.652 --> 00:16:23.510 <v ->Kudos to the City of Justin for coming in under budget.</v> 00:16:23.510 --> 00:16:25.440 We don't really hear that very often. 00:16:25.440 --> 00:16:27.683 So, it's a great board item. 00:16:29.390 --> 00:16:30.850 <v ->Indeed, we don't hear it often</v> 00:16:30.850 --> 00:16:32.920 but it sure is nice to hear, 00:16:32.920 --> 00:16:34.220 when we do get to. <v ->Yes.</v> 00:16:35.450 --> 00:16:37.789 <v ->All right. Is there a motion?</v> 00:16:37.789 --> 00:16:39.930 <v ->Chairman, I move we adopt the proposed resolution</v> 00:16:39.930 --> 00:16:41.490 to amend the previously adopted, 00:16:41.490 --> 00:16:46.100 Texas Water Development Board resolution number 17-075 00:16:46.100 --> 00:16:47.700 to modify the City of Justin's, 00:16:47.700 --> 00:16:49.720 State Water Implementation Revenue Fund 00:16:49.720 --> 00:16:52.140 for Texas annual closing schedule 00:16:52.140 --> 00:16:53.440 and to extend the commitment 00:16:53.440 --> 00:16:56.390 as recommended by our Executive Administrator. 00:16:56.390 --> 00:16:57.650 <v ->Is there a second?</v> 00:16:57.650 --> 00:16:58.997 <v ->I second.</v> 00:16:58.997 --> 00:17:01.027 <v ->All in favor say aye. Aye.</v> 00:17:01.027 --> 00:17:02.810 <v ->Aye.</v> <v ->Aye.</v> 00:17:02.810 --> 00:17:05.557 <v ->Motion passes. Next item please, Mr.Harden.</v> 00:17:08.160 --> 00:17:09.350 <v ->Mr. Chairman, the next item,</v> 00:17:09.350 --> 00:17:12.460 is consider amending the previously adopted, 00:17:12.460 --> 00:17:17.160 Texas Water Development Board resolution number 16-073, 00:17:17.160 --> 00:17:20.965 as amended by resolution number 19-073, 00:17:20.965 --> 00:17:24.170 to modified the City of Keller State Water Implementation 00:17:24.170 --> 00:17:27.600 Revenue Fund for Texas annual closing schedule 00:17:27.600 --> 00:17:29.050 and to extend the commitment. 00:17:31.720 --> 00:17:33.720 And, Joe Koen will present on this item. 00:17:35.930 --> 00:17:38.750 <v ->Once again for the record, my name is Joe Koen</v> 00:17:38.750 --> 00:17:41.550 of the Executive Administrator staff. 00:17:41.550 --> 00:17:44.660 The City of Keller is currently 50% complete 00:17:44.660 --> 00:17:46.770 with construction of phase one 00:17:46.770 --> 00:17:51.258 of the Water Loss Control and Conservation Project. 00:17:51.258 --> 00:17:52.360 The city is requesting 00:17:52.360 --> 00:17:54.710 to modify its multi-year commitment 00:17:54.710 --> 00:17:56.820 to better align the closing 00:17:56.820 --> 00:17:59.830 with the remaining construction phases. 00:17:59.830 --> 00:18:02.680 The Executive Administrator recommends approval 00:18:02.680 --> 00:18:04.050 of this request. 00:18:04.050 --> 00:18:05.860 This concludes my presentation. 00:18:05.860 --> 00:18:07.843 And I'm available for any questions. 00:18:11.310 --> 00:18:13.060 <v ->Questions? Comments? Or a motion?</v> 00:18:14.340 --> 00:18:16.820 <v ->Just again, just another, I think,</v> 00:18:16.820 --> 00:18:20.770 example of how the SWIFT can help communities better align 00:18:20.770 --> 00:18:21.630 with their financing. 00:18:21.630 --> 00:18:23.390 And, of course, you know, a big shout out 00:18:23.390 --> 00:18:26.340 to the City of Keller for moving forward 00:18:26.340 --> 00:18:28.850 with a Water Loss and Control Program 00:18:28.850 --> 00:18:30.170 or Water Conservation Program, 00:18:30.170 --> 00:18:32.860 which, of course, that was, you know, top of the list 00:18:32.860 --> 00:18:34.270 within SWIFT moving forward. 00:18:34.270 --> 00:18:36.330 And, one of the things that we wanted to 00:18:36.330 --> 00:18:38.730 and that the legislature I think had the intent 00:18:38.730 --> 00:18:39.900 to accomplish across the state. 00:18:39.900 --> 00:18:43.170 Incentivize communities to do water conservation, 00:18:43.170 --> 00:18:44.590 which of course oftentimes, 00:18:44.590 --> 00:18:48.000 is their most cost effective future water supply. 00:18:48.000 --> 00:18:49.573 So, thanks for working on this. 00:18:53.177 --> 00:18:54.433 <v ->Paup?</v> <v ->Well said KJ.</v> 00:18:54.433 --> 00:18:55.433 <v ->I'm sorry.</v> 00:18:56.870 --> 00:18:59.040 <v ->I move we adopt the proposed resolution</v> 00:18:59.040 --> 00:19:00.740 to amend the previous adopted, 00:19:00.740 --> 00:19:05.570 Texas Water Development Board resolution number 16-073, 00:19:05.570 --> 00:19:09.310 as amended by resolution number 19-073 00:19:09.310 --> 00:19:12.250 to modify the City of Keller's State Water Implementation 00:19:12.250 --> 00:19:15.057 Revenue Fund for Texas annual closing schedule 00:19:15.057 --> 00:19:16.450 and to extend the commitment 00:19:16.450 --> 00:19:19.560 as recommended by our Executive Administrator. 00:19:19.560 --> 00:19:20.890 <v ->Is there a second?</v> 00:19:20.890 --> 00:19:22.357 <v ->I Second.</v> 00:19:22.357 --> 00:19:24.182 <v ->All in favor say aye. Aye.</v> 00:19:24.182 --> 00:19:25.182 <v ->Aye.</v> <v ->Aye.</v> 00:19:26.770 --> 00:19:29.103 <v ->Motion passes. Next item please.</v> 00:19:31.000 --> 00:19:33.770 <v ->Mr. Chairman, I'm informed that item number seven</v> 00:19:33.770 --> 00:19:37.230 on the agenda Upper Trinity has been moved 00:19:37.230 --> 00:19:38.520 to the August 5th board meeting. 00:19:38.520 --> 00:19:39.353 So, with your permission, 00:19:39.353 --> 00:19:41.040 I'll move on to item number eight. 00:19:42.650 --> 00:19:44.923 <v ->Of course. Go ahead.</v> 00:19:46.519 --> 00:19:49.350 <v ->Item number eight is consider approving a request</v> 00:19:49.350 --> 00:19:51.820 from the North Texas Municipal Water District 00:19:51.820 --> 00:19:54.660 for financing from the Clean Water State Revolving Fund 00:19:54.660 --> 00:19:57.290 for design, acquisition and construction 00:19:57.290 --> 00:19:59.780 of a wastewater treatment plant expansion. 00:19:59.780 --> 00:20:04.780 And, Joe Koen will present to the board on this item. 00:20:05.523 --> 00:20:07.880 <v ->For the record, my name is Joe Koen</v> 00:20:07.880 --> 00:20:10.950 of the Executive Administrator staff. 00:20:10.950 --> 00:20:13.550 North Texas Municipal Water District, 00:20:13.550 --> 00:20:18.380 Upper East Fork Interceptor System service area, 00:20:18.380 --> 00:20:21.120 treat wastewater from 12 cities 00:20:21.120 --> 00:20:23.050 in North Central Texas. 00:20:23.050 --> 00:20:28.050 Providing service to more than 750,000 residents. 00:20:28.340 --> 00:20:31.790 This area is experiencing rapid growth 00:20:31.790 --> 00:20:34.120 and is projected to grow to 00:20:34.120 --> 00:20:38.530 over 1.2 million people by 2040. 00:20:38.530 --> 00:20:40.800 The district is requesting financing 00:20:40.800 --> 00:20:44.940 to expand its wastewater treatment plant 00:20:44.940 --> 00:20:47.590 that will provide additional treatment capacity 00:20:47.590 --> 00:20:52.130 to service the growing population. 00:20:52.130 --> 00:20:54.570 The Executive Administrator recommends approval 00:20:54.570 --> 00:20:56.090 of this request. 00:20:56.090 --> 00:20:58.420 This concludes my presentation 00:20:58.420 --> 00:21:02.520 and I'm available for any question. 00:21:02.520 --> 00:21:03.863 <v ->Questions or comments?</v> 00:21:05.580 --> 00:21:07.110 <v ->It's exciting that they're moving forward.</v> 00:21:07.110 --> 00:21:08.110 That there's growth. 00:21:08.110 --> 00:21:10.740 And, of course, if growth is coming, 00:21:10.740 --> 00:21:13.740 it comes kind of at a rapid pace. 00:21:13.740 --> 00:21:17.300 And I think, you know, it's a credit to North Texas 00:21:17.300 --> 00:21:19.860 to jump out there and, you know, 00:21:19.860 --> 00:21:23.660 put the facilities in place in anticipation of the growth 00:21:23.660 --> 00:21:26.110 and also for them to come to the board. 00:21:26.110 --> 00:21:29.270 Because, again, when you have projects like this 00:21:29.270 --> 00:21:31.020 that are moving fast, 00:21:31.020 --> 00:21:33.330 important to keep them moving forward and on schedule. 00:21:33.330 --> 00:21:36.640 And so, I think it exemplifies not only do they come 00:21:36.640 --> 00:21:38.050 to the board and they save funding, 00:21:38.050 --> 00:21:39.780 but they're also able to stay on schedule 00:21:39.780 --> 00:21:43.040 with their project, anticipation of future plans. 00:21:43.040 --> 00:21:45.453 So, thanks for the work on this project. 00:21:47.960 --> 00:21:49.560 <v ->North Texas is a great customer</v> 00:21:49.560 --> 00:21:51.163 and we're always happy to see them. 00:21:52.240 --> 00:21:56.927 <v ->Indeed. All right, is there a motion?</v> 00:21:56.927 --> 00:21:59.610 <v ->Chairman, I move we adopt the proposed resolution,</v> 00:21:59.610 --> 00:22:02.810 providing The North Texas Municipal Water District financing 00:22:02.810 --> 00:22:04.970 from the Clean Water State Revolving Fund 00:22:04.970 --> 00:22:07.300 for design, acquisition and construction 00:22:07.300 --> 00:22:09.490 of a wastewater treatment plant expansion 00:22:09.490 --> 00:22:11.833 as recommended by our Executive Administrator. 00:22:12.730 --> 00:22:14.340 <v ->Is there a second?</v> 00:22:14.340 --> 00:22:16.000 <v ->I second.</v> 00:22:16.000 --> 00:22:17.676 <v ->All in favor say aye.</v> 00:22:17.676 --> 00:22:18.623 <v ->Aye.</v> <v ->Aye.</v> 00:22:18.623 --> 00:22:20.103 <v ->Aye. Motion passes.</v> 00:22:21.680 --> 00:22:23.203 Thank you, Joe. Good to see you. 00:22:23.203 --> 00:22:24.960 Next order please, Mr. Harden 00:22:27.470 --> 00:22:31.410 <v ->Mr. Chairman, the next item number nine,</v> 00:22:31.410 --> 00:22:32.680 is Gulf Coast Water Authority. 00:22:32.680 --> 00:22:34.480 That was withdrawn by the community. 00:22:34.480 --> 00:22:35.470 So, with your permission, 00:22:35.470 --> 00:22:37.257 I'll move on to item number ten. 00:22:38.380 --> 00:22:39.580 <v ->That's fine. Go ahead.</v> 00:22:43.940 --> 00:22:46.410 <v ->Item number 10 is consider approving a request</v> 00:22:46.410 --> 00:22:48.400 from the City of Houston to amend, 00:22:48.400 --> 00:22:53.050 Texas Water Development Board resolution number 15-076, 00:22:53.050 --> 00:22:58.050 as amended by Texas resolution number 15-130, 00:22:58.166 --> 00:23:03.166 16-080, 17-084 and 18-089 00:23:05.160 --> 00:23:07.720 to authorize an increase in financial assistance 00:23:07.720 --> 00:23:10.010 from the State Water Implementation Revenue Fund 00:23:10.010 --> 00:23:11.800 for Texas for costs related 00:23:11.800 --> 00:23:14.870 to the Second Source Transmission Line project 00:23:14.870 --> 00:23:17.610 and a waiver from the requirement to include funds 00:23:17.610 --> 00:23:20.770 to mitigate water loss as part of the project. 00:23:20.770 --> 00:23:24.537 And, Nancy Richards will present to the board on this item. 00:23:25.850 --> 00:23:27.350 <v ->Good morning, everyone.</v> 00:23:27.350 --> 00:23:29.600 For the record, my name is Nancy Richards, 00:23:29.600 --> 00:23:31.773 the Executive Administrator staff. 00:23:32.630 --> 00:23:35.300 The City of Houston is located in Harris County 00:23:35.300 --> 00:23:37.490 and provides water and sewer service 00:23:37.490 --> 00:23:42.490 for a population of approximately 2,325,000. 00:23:42.670 --> 00:23:45.570 The city is a major water provider in Region eight 00:23:45.570 --> 00:23:47.510 and supplies treated surface water 00:23:47.510 --> 00:23:49.510 in numerous municipalities, districts 00:23:49.510 --> 00:23:53.180 and areas outside of its current Corporate limits. 00:23:53.180 --> 00:23:54.860 Many of these water user groups 00:23:54.860 --> 00:23:56.390 as well as a significant amount 00:23:56.390 --> 00:23:59.070 of the city's own growth in surface water demand, 00:23:59.070 --> 00:24:02.220 is located in Northern and Western portions 00:24:02.220 --> 00:24:04.940 of Harris and Fort Bend counties. 00:24:04.940 --> 00:24:07.470 The city is participating with both the North 00:24:07.470 --> 00:24:10.060 and Central Harris County Regional Water Authorities 00:24:10.060 --> 00:24:13.610 in a large-diameter transmission line project to move water 00:24:13.610 --> 00:24:17.450 from the Northeast water purification plant 17 miles 00:24:17.450 --> 00:24:21.630 across Houston to just West of Interstate 45. 00:24:21.630 --> 00:24:26.030 Construction on the 108-inch diameter line began in 2017. 00:24:26.030 --> 00:24:29.100 And, currently there are 10 construction contracts underway 00:24:29.100 --> 00:24:32.213 with at least another three scheduled before completion. 00:24:33.120 --> 00:24:36.010 The city is seeking a $38 million increase 00:24:36.010 --> 00:24:38.140 in financial assistance for its portion 00:24:38.140 --> 00:24:40.250 of the planning, design and construction 00:24:40.250 --> 00:24:42.890 of the last few contracts on the line. 00:24:42.890 --> 00:24:44.660 Construction is estimated to be complete 00:24:44.660 --> 00:24:47.073 in the third quarter of 2021. 00:24:48.880 --> 00:24:50.750 The city is also requesting a waiver 00:24:50.750 --> 00:24:52.450 from the requirement to include funds 00:24:52.450 --> 00:24:55.110 to mitigate water loss as part of the project. 00:24:55.110 --> 00:24:58.550 The city intends to use approximately $6 million 00:24:58.550 --> 00:25:01.200 from the Drinking Water State Revolving Fund financing 00:25:01.200 --> 00:25:03.680 to replace obsolete water meters 00:25:03.680 --> 00:25:06.240 and add a third-party water loss audit conducted 00:25:06.240 --> 00:25:09.830 in January 2017 that identified additional ways 00:25:09.830 --> 00:25:11.660 to reduce water loss. 00:25:11.660 --> 00:25:15.350 The request states the cities made process improvements 00:25:15.350 --> 00:25:18.860 to decrease the amount of time it takes to fix leaks. 00:25:18.860 --> 00:25:20.940 The Executive Administrator recommends approval 00:25:20.940 --> 00:25:23.490 of the request and I'm available for any questions. 00:25:25.940 --> 00:25:27.940 <v ->Thank you, Nancy. Questions? Comments?</v> 00:25:28.920 --> 00:25:31.310 <v ->Well, it continues to be an exciting project,</v> 00:25:31.310 --> 00:25:33.740 not just for Houston and the Houston area, 00:25:33.740 --> 00:25:36.040 but for the State of Texas and really for the nation. 00:25:36.040 --> 00:25:37.940 I mean, the largest infrastructure project, 00:25:37.940 --> 00:25:40.280 moving forward right now in the country. 00:25:40.280 --> 00:25:42.700 And, a credit to the SWIFT program. 00:25:42.700 --> 00:25:46.010 I think the intent again as a legislature was to be able 00:25:46.010 --> 00:25:48.320 to build out these large infrastructure projects 00:25:48.320 --> 00:25:51.960 to make sure that we have the water that they need 00:25:51.960 --> 00:25:55.740 to continue to grow and attract not just, you know, 00:25:55.740 --> 00:25:59.060 people that are coming in, their residential customers 00:25:59.060 --> 00:26:00.260 but also business. 00:26:00.260 --> 00:26:03.530 So, great to see that they're moving forward 00:26:03.530 --> 00:26:04.790 with their SWIFT program 00:26:04.790 --> 00:26:06.830 and kind of a shout out to them 00:26:06.830 --> 00:26:08.670 that they got the third-party audit 00:26:09.934 --> 00:26:11.800 and are addressing their water loss. 00:26:11.800 --> 00:26:14.630 And, of course, they have been a huge participant 00:26:14.630 --> 00:26:16.320 in the SRF programs going in 00:26:16.320 --> 00:26:19.210 and upgrading their infrastructures kind of separate 00:26:19.210 --> 00:26:22.090 from this project both on the potable water side 00:26:22.090 --> 00:26:24.610 as well as addressing inflow and infiltration 00:26:24.610 --> 00:26:27.700 and upgrading their sewer lines. 00:26:27.700 --> 00:26:30.650 So, great to see this project moving forward 00:26:30.650 --> 00:26:32.720 and appreciate the work of you 00:26:32.720 --> 00:26:36.030 and the staff on keeping this part 00:26:36.030 --> 00:26:38.810 and all the parts of everything that you all work on. 00:26:38.810 --> 00:26:40.870 Moving forward, it just seems like it's seamless 00:26:40.870 --> 00:26:42.287 and you all do a great job. 00:26:43.267 --> 00:26:44.860 <v ->Thank you.</v> 00:26:44.860 --> 00:26:48.370 <v ->Nancy, you make these projects look easy.</v> 00:26:48.370 --> 00:26:52.903 And they are complex and large and very important. 00:26:54.310 --> 00:26:57.040 Administrator has been a priority of the legislature 00:26:57.040 --> 00:26:59.290 and this is the perfect example 00:26:59.290 --> 00:27:03.950 of a regional project done so well. Thank you. 00:27:03.950 --> 00:27:04.950 <v ->Thank you.</v> 00:27:05.883 --> 00:27:10.883 <v ->Especially good work looking at the financial pledge</v> 00:27:11.110 --> 00:27:13.800 for this particular piece. 00:27:13.800 --> 00:27:16.923 And, making sure that now and especially going forward, 00:27:18.945 --> 00:27:22.190 that we always focus on customer service. 00:27:22.190 --> 00:27:26.000 The Board's fiduciary responsibilities are also a priority. 00:27:26.000 --> 00:27:29.190 So, very good job on that. Nancy. 00:27:29.190 --> 00:27:30.190 <v ->Is there a motion?</v> 00:27:31.150 --> 00:27:33.750 <v ->Yes. Mr. Chairman, I move we adopt,</v> 00:27:33.750 --> 00:27:36.300 the proposed resolution approving the request 00:27:36.300 --> 00:27:38.350 of the City of Houston to amend, 00:27:38.350 --> 00:27:41.833 Texas Water Development Board resolution number 15-076 00:27:43.670 --> 00:27:48.663 as amended by TWDB resolution numbers 15-130, 16-080, 00:27:51.457 --> 00:27:56.457 17-084 and 18-089 to authorize an increase 00:27:57.620 --> 00:27:59.290 in the financial assistance 00:27:59.290 --> 00:28:02.670 from the State Water Implementation Fund for Texas 00:28:02.670 --> 00:28:03.550 for costs related 00:28:03.550 --> 00:28:06.280 to the second source transmission line project 00:28:06.280 --> 00:28:08.870 and away from the requirement to include funds 00:28:08.870 --> 00:28:11.720 to mitigate water loss as part of the project 00:28:11.720 --> 00:28:14.283 as recommended by our Executive Administrator. 00:28:15.250 --> 00:28:16.736 <v ->Is there a second?</v> 00:28:16.736 --> 00:28:18.240 <v ->I Second.</v> 00:28:18.240 --> 00:28:20.314 <v ->All in favor say aye? Aye.</v> 00:28:20.314 --> 00:28:22.050 <v ->Aye.</v> <v ->Aye.</v> 00:28:22.050 --> 00:28:25.110 <v ->Motion passes. Next item please.</v> 00:28:25.110 --> 00:28:26.967 Thank you, Nancy. Good to see you. 00:28:35.422 --> 00:28:38.792 Next item please. 00:28:38.792 --> 00:28:42.610 Mr. Chairman, the next item is consider approving a request 00:28:42.610 --> 00:28:45.870 from the Guadalupe-Blanco River Authority. 00:28:45.870 --> 00:28:50.557 The Texas Water Development Board resolutions number 18-093 00:28:53.213 --> 00:28:55.930 and 18-094 as amended 00:28:55.930 --> 00:29:00.040 by Texas Water Development Board resolution number 19-078 00:29:00.040 --> 00:29:02.410 to authorize an increase in financing 00:29:02.410 --> 00:29:03.550 and board participation 00:29:03.550 --> 00:29:05.510 from the State Water Implementation Revenue Fund 00:29:05.510 --> 00:29:09.180 for Texas for a water system expansion project, 00:29:09.180 --> 00:29:12.120 and to modify the Guadalupe-Blanco River Authority's, 00:29:12.120 --> 00:29:14.240 existing commitments to transfer funds 00:29:14.240 --> 00:29:17.660 from board participation to low interest financing. 00:29:17.660 --> 00:29:20.610 And, Dain Larson will present to the board on this project. 00:29:21.760 --> 00:29:26.210 <v ->Good morning. For the record, Chairman Lake,</v> 00:29:26.210 --> 00:29:28.590 Director Jackson, Director Paup, 00:29:28.590 --> 00:29:31.363 I'm Dain Larson of the Executive Administrator staff. 00:29:32.410 --> 00:29:34.230 The Guadalupe-Blanco River Authority, 00:29:34.230 --> 00:29:35.520 requests additional funding 00:29:35.520 --> 00:29:37.420 for its existing multi-year commitment 00:29:38.441 --> 00:29:40.390 for a project to construct wellfield East 00:29:40.390 --> 00:29:42.540 to the communities it serves. 00:29:42.540 --> 00:29:45.370 Along with a nearby treatment plant and transmission lines 00:29:45.370 --> 00:29:48.610 to deliver water to a rapidly growing area 00:29:48.610 --> 00:29:50.930 along the I-35 corridor 00:29:50.930 --> 00:29:54.240 from just South of Boston to New Braunfels. 00:29:54.240 --> 00:29:55.880 The participants in the project include, 00:29:55.880 --> 00:29:59.260 the Cities of New Braunfels, Cities of Lockhart 00:29:59.260 --> 00:30:01.873 along with Goforth Special Utility District. 00:30:05.140 --> 00:30:06.260 Goforth serves an area 00:30:06.260 --> 00:30:09.320 between the cities of Kyle and Mustang Ridge. 00:30:09.320 --> 00:30:10.670 The project will help the Authority, 00:30:10.670 --> 00:30:13.383 meet the long-term water supply needs of the area. 00:30:15.040 --> 00:30:17.810 The Authority previously received a multi-year commitment 00:30:17.810 --> 00:30:20.720 for approximately 166 million 00:30:20.720 --> 00:30:22.270 in a combination of low interest 00:30:22.270 --> 00:30:23.550 and board administration funding 00:30:23.550 --> 00:30:26.150 from the SWIFT program in 2018. 00:30:26.150 --> 00:30:30.303 Their request today is for additional 47,100,000 00:30:32.130 --> 00:30:36.070 for an increasing cost from increased construction costs, 00:30:36.070 --> 00:30:38.130 additional engineering costs 00:30:38.130 --> 00:30:39.700 and additional treatment infrastructure 00:30:39.700 --> 00:30:41.150 at the water treatment plant. 00:30:42.490 --> 00:30:44.470 The Authority entered an agreement in 2018 00:30:44.470 --> 00:30:47.240 with Alliance Regional Water Authority who received funding 00:30:47.240 --> 00:30:50.000 for a project with many overlapping components 00:30:50.000 --> 00:30:52.490 to jointly construct and operate the project 00:30:52.490 --> 00:30:54.890 with GBRA''s participants. 00:30:54.890 --> 00:30:56.900 They are also requesting additional funding 00:30:56.900 --> 00:30:59.453 for their portion of the increased costs. 00:31:01.280 --> 00:31:03.250 The Authority requests includes, 00:31:03.250 --> 00:31:05.740 moving approximately 24 million of existing funding 00:31:05.740 --> 00:31:08.140 from corpus patien to low interest funding, 00:31:08.140 --> 00:31:10.770 thereby lowering their long-term interest costs. 00:31:10.770 --> 00:31:13.110 Our analysis indicates minimal rate increases, 00:31:13.110 --> 00:31:15.070 would be required by the City of Lockhart 00:31:15.070 --> 00:31:17.480 and Goforth several years out, 00:31:17.480 --> 00:31:20.340 if no growth occurs in the area. 00:31:20.340 --> 00:31:24.000 Of course, if projected growth occurs, 00:31:24.000 --> 00:31:26.670 this project would not require rate increases 00:31:26.670 --> 00:31:27.953 for the participants. 00:31:29.740 --> 00:31:31.860 Both authorities are beginning construction 00:31:31.860 --> 00:31:33.650 on their wellfields this summer 00:31:33.650 --> 00:31:35.430 and the project is currently on schedule 00:31:35.430 --> 00:31:37.723 to deliver water starting in 2023. 00:31:39.478 --> 00:31:41.560 The Executive Administrator recommends approval 00:31:41.560 --> 00:31:43.410 of the authorities request 00:31:43.410 --> 00:31:45.910 and I'm available for any questions that you have. 00:31:48.439 --> 00:31:50.439 <v ->Thank you Dain. Questions or comments?</v> 00:31:51.590 --> 00:31:53.200 <v ->It's a great regional project</v> 00:31:53.200 --> 00:31:56.280 and it's, you know, so important 00:31:56.280 --> 00:32:00.300 because again, that is a fast growing part of the state. 00:32:00.300 --> 00:32:04.650 Good to see that GBRA and Alliance are working together. 00:32:04.650 --> 00:32:06.990 And, I think that provides cost savings. 00:32:06.990 --> 00:32:10.360 I think part of what you talked about 00:32:10.360 --> 00:32:12.600 in your presentation was that as I've moved forward, 00:32:12.600 --> 00:32:14.640 and I got a little bit better definition 00:32:14.640 --> 00:32:15.477 of what the project is, 00:32:15.477 --> 00:32:18.120 and the opportunities that not only 00:32:18.120 --> 00:32:22.010 with the bone construction costs is added to the cost 00:32:22.010 --> 00:32:25.670 of their fair share of the project, as well as align. 00:32:25.670 --> 00:32:28.290 Just I guess the point of clarification, 00:32:28.290 --> 00:32:29.900 we set the interest rate subsidies 00:32:29.900 --> 00:32:31.170 for the upcoming bond sale. 00:32:31.170 --> 00:32:35.340 But, part of the request was to move board participation 00:32:35.340 --> 00:32:38.750 in 2021 into low interest. 00:32:38.750 --> 00:32:40.640 And so, that'll be whatever the interest rate 00:32:40.640 --> 00:32:42.840 is in 2021, 00:32:44.700 --> 00:32:47.120 whatever the board said, is that correct? 00:32:47.120 --> 00:32:48.210 <v Dain>Yes.</v> 00:32:48.210 --> 00:32:49.110 <v ->Okay, thank you.</v> 00:32:51.640 --> 00:32:54.910 <v ->I'm glad to see they're comfortable with the new guidance.</v> 00:32:54.910 --> 00:32:57.467 Questions? Comments? Brook Paup? 00:32:57.467 --> 00:32:58.470 <v ->No.</v> 00:32:58.470 --> 00:33:00.020 <v ->All right. Is there a motion?</v> 00:33:00.950 --> 00:33:03.560 <v ->Chairman, I move we adopt the proposed resolution,</v> 00:33:03.560 --> 00:33:04.750 approving the request 00:33:04.750 --> 00:33:07.330 of the Guadalupe-Blanco River Authority 00:33:07.330 --> 00:33:10.150 to amend Texas Water Development Board resolution, 00:33:10.150 --> 00:33:15.150 number 18-083 and 18-094 as amended 00:33:15.460 --> 00:33:19.003 by Texas Water Development Board resolution number 19-078 00:33:21.210 --> 00:33:23.470 to authorize an increase in financing 00:33:23.470 --> 00:33:24.920 and board participation 00:33:24.920 --> 00:33:28.010 from the State Water Implementation Revenue Fund for Texas 00:33:28.010 --> 00:33:30.250 for water system expansion project 00:33:30.250 --> 00:33:33.870 and to modify the Guadalupe-Blanco River Authority's, 00:33:33.870 --> 00:33:36.020 existing commitments to transfer funds 00:33:36.020 --> 00:33:38.970 from board participation to low interest financing 00:33:38.970 --> 00:33:41.303 as recommended by our Executive Administrator. 00:33:42.520 --> 00:33:45.029 <v ->Is there a second?</v> 00:33:45.029 --> 00:33:46.440 <v ->I Second.</v> 00:33:46.440 --> 00:33:48.010 <v ->All in favor say aye. Aye.</v> 00:33:48.010 --> 00:33:49.638 <v ->Aye.</v> 00:33:49.638 --> 00:33:50.960 <v ->Aye.</v> 00:33:50.960 --> 00:33:54.200 <v ->Motion passes. Next item please, Mr. Harden.</v> 00:34:02.500 --> 00:34:04.563 Next item please, Mr. Harden. 00:34:06.840 --> 00:34:08.170 <v ->Mr. Chairman, the next item,</v> 00:34:08.170 --> 00:34:10.740 is consider approving a request 00:34:10.740 --> 00:34:13.320 from the Alliance Regional Water Authority 00:34:13.320 --> 00:34:18.320 to amend Texas Water Development Board resolution 19-077 00:34:18.530 --> 00:34:21.190 to authorize an increase in financing 00:34:21.190 --> 00:34:24.200 from the State Water Implementation Revenue Fund 00:34:24.200 --> 00:34:28.430 for Texas for a water system expansion project. 00:34:28.430 --> 00:34:31.653 And, Dain Larson will present to the board on that item. 00:34:34.340 --> 00:34:38.000 <v ->Thank you. Once again, for the record, I'm Dain Larson</v> 00:34:38.000 --> 00:34:39.810 of the Executive Administrators staff. 00:34:39.810 --> 00:34:41.240 As, we just discussed, 00:34:41.240 --> 00:34:45.403 this project is linked with the one through GBRA. 00:34:46.270 --> 00:34:48.190 The Alliance Regional Water Authority, 00:34:48.190 --> 00:34:50.100 is also requesting additional funding 00:34:50.100 --> 00:34:51.520 for its multi-year commitment 00:34:51.520 --> 00:34:54.250 for each share of the project with GBRA. 00:34:54.250 --> 00:34:55.270 Again, the project is 00:34:55.270 --> 00:34:58.340 to construct wellfields East of community served 00:34:58.340 --> 00:35:00.400 along with a nearby treatment plant 00:35:00.400 --> 00:35:03.400 and transmission lines to deliver the water 00:35:03.400 --> 00:35:05.420 to this rapidly growing area 00:35:05.420 --> 00:35:07.570 along the I-35 corridor. 00:35:07.570 --> 00:35:09.900 Again, this is from South of Boston 00:35:09.900 --> 00:35:12.400 to just South of New Braunfels. 00:35:12.400 --> 00:35:14.710 The participants in the project include, 00:35:14.710 --> 00:35:17.920 the Cities of San Marcos, Kyle, Buda 00:35:17.920 --> 00:35:21.200 and some members of Canyon Regional Water Authority. 00:35:21.200 --> 00:35:26.200 Those participants serve areas around New Braunfels. 00:35:26.250 --> 00:35:27.990 The project will help the Authority, 00:35:27.990 --> 00:35:31.803 meet the long-term water supplies needs of the area. 00:35:33.020 --> 00:35:35.770 The Authority previously received a multi-year commitment 00:35:35.770 --> 00:35:38.010 for approximately 213 million 00:35:38.010 --> 00:35:42.180 in a combination of low interest and work position funding 00:35:42.180 --> 00:35:44.463 from the SWIFT program in 2017. 00:35:45.630 --> 00:35:49.000 Their request today is for an additional 65 million. 00:35:49.000 --> 00:35:51.690 Again, due to an increase in construction costs, 00:35:51.690 --> 00:35:53.680 additional engineering costs, 00:35:53.680 --> 00:35:55.820 and they've added some treatment capacity 00:35:55.820 --> 00:35:57.270 of the water treatment plant. 00:35:58.780 --> 00:36:00.030 As previously described, 00:36:00.030 --> 00:36:04.143 the Authority entered an agreement with GBRA in 2018, 00:36:05.810 --> 00:36:07.620 who also received funding for a project 00:36:07.620 --> 00:36:09.510 with many overlapping components. 00:36:09.510 --> 00:36:11.250 The agreement is to jointly construct 00:36:11.250 --> 00:36:14.513 and operate the project with GBRA's participants. 00:36:15.520 --> 00:36:18.340 The Authority closed early on approximately 69 million 00:36:18.340 --> 00:36:19.920 of board participation 00:36:19.920 --> 00:36:21.940 but since then has moved all of its funding 00:36:21.940 --> 00:36:24.550 to SWILF low-interest funding. 00:36:24.550 --> 00:36:26.310 This includes the current request, 00:36:26.310 --> 00:36:29.130 which is only for low-interest funds. 00:36:29.130 --> 00:36:31.860 Of course, this shift lowers their overall interest cost 00:36:31.860 --> 00:36:34.680 though it does really allocate some of the costs 00:36:35.870 --> 00:36:38.670 to current and your return customers. 00:36:38.670 --> 00:36:40.690 Our analysis indicates, 00:36:40.690 --> 00:36:42.070 with a proposed financing 00:36:42.070 --> 00:36:44.770 only the City of Buda would need an increase 00:36:44.770 --> 00:36:48.350 of just over $4 in the next year. 00:36:48.350 --> 00:36:52.430 And, followed by approximately $14 increase by 2027. 00:36:52.430 --> 00:36:55.780 Again, this is assuming no growth, no new connections, 00:36:55.780 --> 00:36:58.653 which is not likely in this area. 00:36:59.490 --> 00:37:01.530 If projected growth occurs, 00:37:01.530 --> 00:37:03.853 no increases would be required. 00:37:04.890 --> 00:37:06.130 As previously described, 00:37:06.130 --> 00:37:07.710 both authorities are beginning construction 00:37:07.710 --> 00:37:09.340 on their wellfields this summer. 00:37:09.340 --> 00:37:11.140 And, the project is currently on schedule 00:37:11.140 --> 00:37:13.143 to deliver water in 2023. 00:37:14.140 --> 00:37:16.510 The Executive Administrator recommends approval 00:37:16.510 --> 00:37:17.950 of the authorities request 00:37:17.950 --> 00:37:19.833 and I'm available for questions. 00:37:22.780 --> 00:37:25.703 <v ->Thank you Dain. Questions, comments or a motion?</v> 00:37:27.990 --> 00:37:29.050 <v ->You said the magic word.</v> 00:37:29.050 --> 00:37:30.420 The project's on schedule. 00:37:30.420 --> 00:37:31.293 So, good job. 00:37:35.480 --> 00:37:38.123 <v ->What we'd like to hear from an engineer, Director Jackson.</v> 00:37:40.750 --> 00:37:43.820 <v ->Mr. Chairman, I move we adopt the proposed resolution,</v> 00:37:43.820 --> 00:37:46.800 approving the request of Alliance Regional Water Authority 00:37:46.800 --> 00:37:50.203 to amend Texas Water Development Board resolution 19-077 00:37:52.140 --> 00:37:54.200 to authorize an increase in financing 00:37:54.200 --> 00:37:57.680 from the State Water Implementation Revenue Fund for Texas 00:37:57.680 --> 00:38:00.540 for water system expansion project, 00:38:00.540 --> 00:38:03.023 as recommended by our Executive Administrator. 00:38:04.157 --> 00:38:05.548 <v ->Is there a second?</v> 00:38:05.548 --> 00:38:07.140 <v ->I Second.</v> 00:38:07.140 --> 00:38:08.803 <v ->All in favor say aye. Aye.</v> 00:38:08.803 --> 00:38:09.803 <v ->Aye.</v> <v ->Aye.</v> 00:38:10.920 --> 00:38:14.180 <v ->Motion passes. Thank you Dain. Good to see you, sir.</v> 00:38:14.180 --> 00:38:15.013 <v ->Thank you.</v> 00:38:15.013 --> 00:38:16.330 <v ->Thanks Dain.</v> 00:38:16.330 --> 00:38:17.163 <v ->All right.</v> 00:38:17.163 --> 00:38:19.673 <v ->Next item please, Mr. Harden.</v> 00:38:19.673 --> 00:38:20.860 <v ->Mr. Chairman, the next item,</v> 00:38:20.860 --> 00:38:22.740 is consider approving a request 00:38:22.740 --> 00:38:25.090 from the City of Corpus Christi for financing 00:38:25.090 --> 00:38:28.523 from the State Water Implementation Revenue Fund for Texas, 00:38:33.117 --> 00:38:35.070 for planning, acquisition, design 00:38:35.070 --> 00:38:38.113 of seawater desalination plant. 00:38:39.480 --> 00:38:43.573 Mr. Chairman, Mr. Esteban Ramos is here today. 00:38:44.650 --> 00:38:47.450 He's the Water Resource Manager for Water and Utilities 00:38:47.450 --> 00:38:49.050 at City of Corpus Christi. 00:38:49.050 --> 00:38:53.183 And, he has registered for 00:38:55.440 --> 00:38:57.590 that he does not want to address the board. 00:38:58.750 --> 00:39:01.763 <v ->Mireya Loewe will do the oral presentation to the board.</v> 00:39:05.090 --> 00:39:05.923 <v ->Good morning.</v> 00:39:08.450 --> 00:39:10.950 Chairman Lake, Director Jackson, Director Paup, 00:39:10.950 --> 00:39:11.783 my name is Mireya Loewe 00:39:11.783 --> 00:39:14.330 of the Executive Administrator staff. 00:39:14.330 --> 00:39:17.880 The City of Corpus Christi is located in Nueces County 00:39:17.880 --> 00:39:20.960 and is a regional water supplier 00:39:20.960 --> 00:39:23.290 to municipal and industrial users 00:39:23.290 --> 00:39:25.563 in a seven county service area. 00:39:26.700 --> 00:39:29.220 In addition to providing retail potable water 00:39:29.220 --> 00:39:31.060 to residents and industry, 00:39:31.060 --> 00:39:36.060 the city supplies wholesale raw water and potable water 00:39:36.380 --> 00:39:38.550 to seven major water providers, 00:39:38.550 --> 00:39:41.053 which serve 20 other municipalities. 00:39:42.070 --> 00:39:44.570 In 2015, in an effort 00:39:44.570 --> 00:39:48.210 to secure reliable drought-proof water supplies 00:39:48.210 --> 00:39:51.070 to meet the projected water demands of the area, 00:39:51.070 --> 00:39:54.080 the city began project definition activities 00:39:54.080 --> 00:39:57.853 for the first seawater desalination plant in Texas. 00:39:59.330 --> 00:40:04.330 In 2017, the city received a $2.75 million in financing 00:40:05.470 --> 00:40:08.460 from the State Water Implementation Fund for Texas 00:40:08.460 --> 00:40:10.490 to conduct planning for the development 00:40:10.490 --> 00:40:12.603 of a seawater desalination project. 00:40:14.040 --> 00:40:16.980 Several studies and planning tasks have been completed, 00:40:16.980 --> 00:40:19.090 including the selection of two sites. 00:40:19.090 --> 00:40:20.740 One; on the South Bank 00:40:20.740 --> 00:40:23.690 of the Inner Harbor Shipshape channel, 00:40:23.690 --> 00:40:25.770 and the other in the La Quinta Channel 00:40:25.770 --> 00:40:28.293 in the core spun, near the City of Ingleside. 00:40:29.920 --> 00:40:32.030 The city has also completed and submitted 00:40:32.030 --> 00:40:35.040 for both proposed plans to the Texas Commission 00:40:35.040 --> 00:40:37.860 on Environmental Quality the applications 00:40:37.860 --> 00:40:42.390 for the Texas Pollutant Discharge Elimination System permits 00:40:42.390 --> 00:40:45.900 and the applications for the diversion authorization permits 00:40:45.900 --> 00:40:47.780 or the water rights permits. 00:40:50.201 --> 00:40:52.240 At this time, the city has determined 00:40:52.240 --> 00:40:55.270 that the first plant to be built will be the plant 00:40:55.270 --> 00:40:57.900 by the Inner Harbor Ship Channel 00:40:57.900 --> 00:41:01.113 with an initial capacity of 20 million gallons per day, 00:41:02.210 --> 00:41:06.260 and an ultimate capacity of 30 million gallons per day. 00:41:06.260 --> 00:41:09.200 The La Quinta Channel plant will be built sometime 00:41:09.200 --> 00:41:11.630 in the future based on water demands, 00:41:11.630 --> 00:41:14.680 with an initial capacity of 20 million gallons per day 00:41:14.680 --> 00:41:18.643 and an ultimate capacity 40 million gallons per day. 00:41:20.060 --> 00:41:21.640 With a current funding request, 00:41:21.640 --> 00:41:24.050 the city will complete the permitting process 00:41:24.050 --> 00:41:26.390 for the two proposed plants 00:41:26.390 --> 00:41:30.240 plus acquisition of the site design and construction 00:41:30.240 --> 00:41:34.010 of the Inner Harbor Ship Channel plant. 00:41:34.010 --> 00:41:35.500 Although the plant will be built 00:41:35.500 --> 00:41:37.680 to have an initial treatment capacity 00:41:37.680 --> 00:41:39.800 of 20 million gallons per day, 00:41:39.800 --> 00:41:43.000 the intake and discharge facilities will be designed 00:41:43.000 --> 00:41:45.690 to accommodate a future expense, 00:41:45.690 --> 00:41:47.423 up to 30 million gallons per day. 00:41:48.800 --> 00:41:51.720 The plant will be designed to produce portable water 00:41:51.720 --> 00:41:53.350 and it will be fully integrated 00:41:53.350 --> 00:41:55.693 into the city's regional water system. 00:41:56.940 --> 00:42:00.850 To mitigate the potential impact on non-industrial users, 00:42:00.850 --> 00:42:04.530 the city has been collecting since October of 2018, 00:42:04.530 --> 00:42:07.420 the drought surcharge exemption fee 00:42:07.420 --> 00:42:10.490 from large volume industrial users. 00:42:10.490 --> 00:42:13.260 Revenues from this fee can only be used to pay 00:42:13.260 --> 00:42:14.690 for costs associated 00:42:14.690 --> 00:42:18.000 with the development of drought-proof water supplies, 00:42:18.000 --> 00:42:20.100 such as the seawater desalination project. 00:42:22.596 --> 00:42:25.360 And, also including the associated that service. 00:42:25.360 --> 00:42:28.350 Currently, the city is collecting a combined total 00:42:28.350 --> 00:42:32.260 of about $300,000 per month from 14 accounts 00:42:32.260 --> 00:42:35.750 that are paying this voluntary, non-refundable fee 00:42:35.750 --> 00:42:39.750 of 25 cents per thousand gallons of water per month. 00:42:39.750 --> 00:42:42.370 The city will continue to collect the exemption fee 00:42:42.370 --> 00:42:44.900 until the unspent accumulated balance 00:42:44.900 --> 00:42:47.560 of the fund exceeds 150 million 00:42:47.560 --> 00:42:49.940 or the agreement is terminated. 00:42:49.940 --> 00:42:52.010 The Executive Administrator recommends approval 00:42:52.010 --> 00:42:53.210 of this funding request. 00:42:53.210 --> 00:42:54.650 This concludes my presentation. 00:42:54.650 --> 00:42:56.253 May I answer any questions? 00:42:58.860 --> 00:43:01.273 <v ->Thank you Mireya. Questions or comments?</v> 00:43:02.890 --> 00:43:05.540 <v ->Well, how exciting. I mean, we've been,</v> 00:43:05.540 --> 00:43:07.080 I guess, dreaming of this day. 00:43:07.080 --> 00:43:10.020 And, you know, as we've traveled around Texas, 00:43:10.020 --> 00:43:11.057 I think all of us has said, 00:43:11.057 --> 00:43:13.610 "The eyes of Texas are upon you Corpus" 00:43:13.610 --> 00:43:15.230 because of the great opportunity 00:43:15.230 --> 00:43:18.820 to be able to move forward with a seawater desal project 00:43:18.820 --> 00:43:22.310 and what a great testament to the partnership. 00:43:22.310 --> 00:43:26.220 The city, the work that the port has done. 00:43:26.220 --> 00:43:29.740 The industry coming together and as you mentioned, 00:43:29.740 --> 00:43:31.760 voluntarily having the surcharge, 00:43:31.760 --> 00:43:36.320 seeing the need to having a drought-proof water supply. 00:43:36.320 --> 00:43:38.960 And, what that can mean in terms of, you know, 00:43:38.960 --> 00:43:40.870 the feature not only of the community, 00:43:40.870 --> 00:43:44.050 but also the reliability and the profitability 00:43:44.050 --> 00:43:46.250 of that whole industrial sector down there. 00:43:46.250 --> 00:43:48.480 So, being kind of an integral part 00:43:48.480 --> 00:43:50.700 of moving forward with the solution, 00:43:50.700 --> 00:43:54.300 making it one combined system. 00:43:54.300 --> 00:43:56.450 I know that, you know, there was a lot of talk 00:43:56.450 --> 00:44:00.170 in terms of what the benefits were and how to do it. 00:44:00.170 --> 00:44:03.980 And, certainly the first tranche that they took down 00:44:03.980 --> 00:44:05.671 from the SWIFT was utilized 00:44:05.671 --> 00:44:08.070 to kind of pose all of those questions 00:44:08.070 --> 00:44:09.710 and ask them, you know, 00:44:09.710 --> 00:44:12.030 from a long-term strategy going out, 00:44:12.030 --> 00:44:14.700 and as it turns out during the permitting for two sides, 00:44:14.700 --> 00:44:16.640 and then moving forward with one side. 00:44:16.640 --> 00:44:20.880 Even with the ability to expand it from 20 Mgd to 30 Mgd. 00:44:20.880 --> 00:44:23.450 So, a great project. 00:44:23.450 --> 00:44:28.450 I think, a credit to the leadership in Corpus Christi, 00:44:28.740 --> 00:44:31.570 and the great leadership 00:44:31.570 --> 00:44:36.110 from Chairman Todd Hunter who's been such a champion 00:44:36.110 --> 00:44:38.870 for seawater desal, not only for Corpus 00:44:38.870 --> 00:44:40.490 but throughout the State of Texas. 00:44:40.490 --> 00:44:43.340 And so, I think it's a great day at the board. 00:44:43.340 --> 00:44:44.730 I mean, when we look at the SWIFT 00:44:44.730 --> 00:44:46.370 and what we've been able to accomplish, 00:44:46.370 --> 00:44:50.280 and if you will, kind of projects that we're moving forward. 00:44:50.280 --> 00:44:51.810 You know, having this out there, 00:44:51.810 --> 00:44:54.037 it basically says, in my mind, 00:44:54.037 --> 00:44:55.750 "We're kind of hitting on all cylinders" 00:44:55.750 --> 00:44:57.750 We've got, you know, reservoirs, 00:44:57.750 --> 00:44:59.440 we've got groundwater projects. 00:44:59.440 --> 00:45:02.520 We just, you know, talked about one with GBRA, 00:45:02.520 --> 00:45:05.930 we've got small communities that are doing water wells. 00:45:05.930 --> 00:45:07.800 We've got irrigation facilities 00:45:07.800 --> 00:45:09.970 that are utilizing for off-channel reservoirs 00:45:09.970 --> 00:45:12.020 and for lining irrigation canals. 00:45:12.020 --> 00:45:14.080 Building, you know, massive pipelines 00:45:14.080 --> 00:45:15.910 with the integrated pipeline in Dallas 00:45:15.910 --> 00:45:18.020 and now, you know, again, 00:45:18.020 --> 00:45:20.550 all the eyes of Texas are upon you Corpus 00:45:20.550 --> 00:45:22.170 and great job, so excited. 00:45:22.170 --> 00:45:24.020 Mireya, thank you for the work on this. 00:45:24.020 --> 00:45:27.440 I know your staff has really really put your heart 00:45:27.440 --> 00:45:28.273 into this. 00:45:28.273 --> 00:45:30.390 And so, a great day, I think at the board. 00:45:30.390 --> 00:45:32.760 And so proud of you all. 00:45:32.760 --> 00:45:34.490 So proud of the leadership in Corpus 00:45:34.490 --> 00:45:37.020 and quite frankly, so proud of the SWIFT 00:45:37.020 --> 00:45:39.040 and our staff that were able to move forward with this. 00:45:39.040 --> 00:45:39.873 So, thank you. 00:45:42.070 --> 00:45:44.662 <v ->Great job.</v> <v ->Throw us a barbecue.</v> 00:45:44.662 --> 00:45:46.667 <v ->Yes. Thank you.</v> 00:45:46.667 --> 00:45:48.410 <v ->It's here.</v> <v ->It's amazing.</v> 00:45:48.410 --> 00:45:51.580 Of large-scale seawater desal, 00:45:51.580 --> 00:45:54.103 we're about to hopefully approve it. 00:45:54.940 --> 00:45:56.830 Incredible, such great work 00:45:56.830 --> 00:45:59.440 and kudos to the people of Corpus Christi 00:45:59.440 --> 00:46:00.573 for getting it done. 00:46:01.470 --> 00:46:03.065 It's exciting. 00:46:03.065 --> 00:46:05.940 <v Esteban>Indeed.</v> 00:46:05.940 --> 00:46:10.200 <v ->Absolutely. And, well, science technology,</v> 00:46:10.200 --> 00:46:12.330 is always a huge part of these kind of projects. 00:46:12.330 --> 00:46:13.570 I also want to commend Corpus 00:46:13.570 --> 00:46:17.200 for taking the clever approach to the finance 00:46:17.200 --> 00:46:19.430 and economics side of it 00:46:19.430 --> 00:46:21.370 with the drought surcharge. 00:46:21.370 --> 00:46:23.070 And, making sure that financial burden, 00:46:23.070 --> 00:46:26.670 was borne appropriately 00:46:26.670 --> 00:46:29.653 across the ultimate end-users of the project. 00:46:32.307 --> 00:46:34.020 I know Brooke and Kathleen are rolling their eyes 00:46:34.020 --> 00:46:35.120 at me because I always have to talk 00:46:35.120 --> 00:46:36.380 about the financial side. 00:46:36.380 --> 00:46:40.600 But, I want to commend them for doing a good job 00:46:40.600 --> 00:46:43.233 and handling that aspect of this project. 00:46:44.280 --> 00:46:45.323 Is there a motion? 00:46:46.430 --> 00:46:48.710 <v ->Chairman, I move we adopt the proposed resolution,</v> 00:46:48.710 --> 00:46:51.350 providing the City of Corpus Christi financing 00:46:51.350 --> 00:46:54.400 from the State Water Implementation Revenue Fund for Texas 00:46:54.400 --> 00:46:57.000 for planning, acquisition, design and construction 00:46:57.000 --> 00:46:59.080 of a seawater desalination plant 00:46:59.080 --> 00:47:02.480 as recommended by our Executive Administrator. 00:47:02.480 --> 00:47:03.480 <v ->Is there a motion?</v> 00:47:05.320 --> 00:47:06.153 <v ->I Second.</v> 00:47:07.403 --> 00:47:09.157 <v ->All in favor say aye. Aye.</v> 00:47:09.157 --> 00:47:10.250 <v ->Aye.</v> <v ->Aye.</v> 00:47:10.250 --> 00:47:11.714 <v ->Yay.</v> 00:47:11.714 --> 00:47:16.714 <v ->Motion passes. Next item please.</v> 00:47:18.830 --> 00:47:20.720 <v ->Mr. Chairman, staff has requested</v> 00:47:20.720 --> 00:47:24.160 to present the next two items together. 00:47:24.160 --> 00:47:26.673 So, I'll go ahead and read both of those now. 00:47:28.020 --> 00:47:31.350 Consider approving by resolution a request 00:47:31.350 --> 00:47:33.820 from the City of Los Fresnos for financing 00:47:33.820 --> 00:47:35.203 from the Clean Water State Revolving Fund 00:47:35.203 --> 00:47:39.590 for construction for wastewater system improvements project. 00:47:39.590 --> 00:47:42.250 And, consider approving a request 00:47:42.250 --> 00:47:43.660 from the City of Los Fresnos 00:47:43.660 --> 00:47:46.910 for financing from the Drinking Water State Revolving Fund 00:47:46.910 --> 00:47:50.250 for construction of a water system improvements project. 00:47:50.250 --> 00:47:54.633 And Mireya Loewe will present to the board on both items. 00:47:56.591 --> 00:47:58.410 <v ->Again, for the record, my name is Mireya Loewe</v> 00:47:58.410 --> 00:48:00.970 of the Executive Administrative staff. 00:48:00.970 --> 00:48:02.800 The City of Los Preston's is a community 00:48:02.800 --> 00:48:06.970 of about 6600 residents in Cameron County, 00:48:06.970 --> 00:48:09.150 North of the City of Brownsville. 00:48:09.150 --> 00:48:11.600 The city's wastewater collection system is old 00:48:11.600 --> 00:48:14.850 and in need of rehabilitation. 00:48:14.850 --> 00:48:17.380 To help improve the system in 2014, 00:48:17.380 --> 00:48:21.630 the city received a $1.16 million in financing 00:48:21.630 --> 00:48:23.780 from the Clean Water State Revolving Fund 00:48:23.780 --> 00:48:25.110 for the planning and design 00:48:25.110 --> 00:48:28.850 of a wastewater collection system rehabilitation project. 00:48:28.850 --> 00:48:31.160 The planning and design included extension 00:48:31.160 --> 00:48:32.810 of the wastewater collection system 00:48:32.810 --> 00:48:36.433 to provide first-time service to 253 new connections. 00:48:37.480 --> 00:48:39.740 The current funding request is for the construction 00:48:39.740 --> 00:48:40.860 of the project. 00:48:40.860 --> 00:48:43.820 The city will replace vitrified clay pipes 00:48:43.820 --> 00:48:46.450 that are old and deteriorated, undersized lines, 00:48:46.450 --> 00:48:50.360 dilapidated, sewer manholes and repair lift stations 00:48:50.360 --> 00:48:53.700 in poor conditions and equip them with backup generators 00:48:53.700 --> 00:48:55.403 and automatic transfer switches. 00:48:56.540 --> 00:48:59.200 The current funding will also extend first-time service 00:48:59.200 --> 00:49:01.510 to 36 new connections. 00:49:01.510 --> 00:49:04.900 The extension of service to the other 217 connections 00:49:04.900 --> 00:49:07.450 that were originally proposed during the planning 00:49:07.450 --> 00:49:10.230 and design phase will not be included at this time, 00:49:10.230 --> 00:49:13.123 because it was just not financially feasible to the city. 00:49:14.210 --> 00:49:17.090 The city's water system is also in need of repairs 00:49:17.090 --> 00:49:18.143 and replacement. 00:49:19.220 --> 00:49:24.220 In 2014, the city received $1.4 million 00:49:24.500 --> 00:49:26.900 from the Drinking Water State Revolving Fund 00:49:26.900 --> 00:49:29.460 for the planning and design of a project 00:49:29.460 --> 00:49:32.553 to expand and rehabilitate the water treatment plant. 00:49:33.640 --> 00:49:37.530 Subsequently, in 2016, as a result of violations found 00:49:37.530 --> 00:49:40.310 by the Texas Commission on Environmental Quality, 00:49:40.310 --> 00:49:42.990 a mandatory comprehensive performance evaluation 00:49:42.990 --> 00:49:45.320 over the water treatment plant was performed, 00:49:45.320 --> 00:49:47.370 resulting in a corrective action plan. 00:49:49.240 --> 00:49:52.660 The city has corrected the most urgent items 00:49:52.660 --> 00:49:53.640 in the action plan. 00:49:53.640 --> 00:49:56.390 And, this funding will help the city to bring their plan 00:49:56.390 --> 00:49:58.720 into regulatory compliance. 00:49:58.720 --> 00:50:00.970 The proposed project will increase the capacity 00:50:00.970 --> 00:50:03.830 of the water treatment plant from 1 million gallons per day 00:50:03.830 --> 00:50:06.140 to 1.5 million gallons per day 00:50:06.140 --> 00:50:08.470 to meet future water demands. 00:50:08.470 --> 00:50:10.190 The project will also rehabilitate 00:50:10.190 --> 00:50:13.050 and upgrade a large portion of the plants equipment 00:50:13.050 --> 00:50:14.450 and treatment facilities 00:50:14.450 --> 00:50:16.000 to address treatment violations 00:50:16.000 --> 00:50:17.983 and system operational compliance. 00:50:19.320 --> 00:50:21.560 To help the city to pay for the projects, 00:50:21.560 --> 00:50:24.610 the Los Fresnos Community Development Corporation, 00:50:24.610 --> 00:50:27.080 has committed to provide funds to the city 00:50:27.080 --> 00:50:29.260 to pay for a portion of the debt service 00:50:29.260 --> 00:50:32.680 between fiscal year 2020 and 2025. 00:50:32.680 --> 00:50:35.700 The contribution is based on approximate percentage 00:50:35.700 --> 00:50:37.200 of debt service associated 00:50:37.200 --> 00:50:39.410 with the benefits local businesses will receive 00:50:39.410 --> 00:50:40.673 from the two projects. 00:50:41.850 --> 00:50:43.760 The Executive Administrator recommends approval 00:50:43.760 --> 00:50:45.080 of this funding request. 00:50:45.080 --> 00:50:46.720 This concludes my presentation. 00:50:46.720 --> 00:50:48.343 May I answer any questions? 00:50:50.340 --> 00:50:51.740 <v ->Any questions or comments?</v> 00:50:52.700 --> 00:50:54.557 <v ->Mireya, thanks for working on this project.</v> 00:50:54.557 --> 00:50:55.730 It's kind of the one/two punch 00:50:55.730 --> 00:50:58.410 for doing wastewater treatment upgrades 00:50:58.410 --> 00:51:00.870 as well as drinking water. 00:51:00.870 --> 00:51:02.950 And, I believe you shared with me 00:51:02.950 --> 00:51:06.300 that there's kind of a little added benefit 00:51:06.300 --> 00:51:08.410 in the wastewater project 00:51:08.410 --> 00:51:10.940 and that we're getting 36 new connections. 00:51:10.940 --> 00:51:12.633 And, these are first-time, 00:51:13.520 --> 00:51:17.150 they were service for those households. 00:51:17.150 --> 00:51:21.720 And then, also, they're purchasing standby generators, 00:51:21.720 --> 00:51:24.050 which really is integral 00:51:24.050 --> 00:51:26.963 in terms of preventing during storm events, 00:51:27.850 --> 00:51:29.930 inflow and infiltration. 00:51:29.930 --> 00:51:31.400 And, keeping those lift stations moving. 00:51:31.400 --> 00:51:34.760 So, I mean, great work on this project. 00:51:34.760 --> 00:51:38.400 I think, particularly appreciate, I guess, 00:51:38.400 --> 00:51:39.750 the leadership of the community, 00:51:39.750 --> 00:51:41.850 and you mentioned the Economic Development Group, 00:51:41.850 --> 00:51:44.600 coming forward, and recognizing the value 00:51:44.600 --> 00:51:48.345 that this can have to existing and future business. 00:51:48.345 --> 00:51:51.790 And, committing not just their time and their talent, 00:51:51.790 --> 00:51:53.550 but also the resources. 00:51:53.550 --> 00:51:55.700 So, it's a great example, 00:51:55.700 --> 00:51:57.990 I think of projects that you and your staff are working 00:51:57.990 --> 00:51:59.540 with communities. 00:51:59.540 --> 00:52:01.483 You know, in South Texas every day, 00:52:02.340 --> 00:52:05.570 recognizing how important they are to the whole state 00:52:05.570 --> 00:52:08.077 and making sure that they have the water 00:52:08.077 --> 00:52:11.330 and the sewer services that they need to be successful. 00:52:11.330 --> 00:52:14.310 So, thank you so much for working on this. 00:52:14.310 --> 00:52:15.143 <v ->Thank you.</v> 00:52:15.980 --> 00:52:18.460 <v ->And Mireya, it's a great package of projects</v> 00:52:18.460 --> 00:52:20.900 that will help with the health and welfare 00:52:20.900 --> 00:52:22.250 of this small community. 00:52:22.250 --> 00:52:25.340 So, Los Fresnos is getting a great deal. 00:52:25.340 --> 00:52:27.190 We're doing a lot with these dollars. 00:52:29.980 --> 00:52:32.603 <v ->Indeed. Is there a motion?</v> 00:52:33.600 --> 00:52:36.610 <v ->Mr. Chairman, I move we adopt the proposed resolutions,</v> 00:52:36.610 --> 00:52:39.560 providing the City of Los Fresnos financing 00:52:39.560 --> 00:52:41.530 from the Clean Water State Revolving Fund 00:52:41.530 --> 00:52:45.600 for construction of a wastewater system improvements project 00:52:45.600 --> 00:52:46.433 and for financing 00:52:46.433 --> 00:52:48.700 from the Drinking Water State Revolving Fund 00:52:48.700 --> 00:52:51.750 for construction of a water system improvements project 00:52:51.750 --> 00:52:54.050 as recommended by our Executive Administrator. 00:52:55.140 --> 00:52:56.280 <v ->Is there a second?</v> 00:52:56.280 --> 00:52:57.820 <v ->I Second</v> 00:52:57.820 --> 00:52:59.670 <v ->All in favor say aye. Aye.</v> 00:52:59.670 --> 00:53:00.650 <v ->Aye.</v> <v ->Aye.</v> 00:53:01.580 --> 00:53:04.584 <v ->Motion passes. Thank you, Mireya.</v> 00:53:04.584 --> 00:53:05.653 <v ->Thank you.</v> 00:53:05.653 --> 00:53:10.080 <v ->Good to see you. Next item please, Mr. Harden.</v> 00:53:10.080 --> 00:53:11.310 <v ->Mr. Chairman, the next item,</v> 00:53:11.310 --> 00:53:14.373 is that the board will receive comments from the public. 00:53:16.410 --> 00:53:19.320 <v ->I don't think we have anybody signed up.</v> 00:53:19.320 --> 00:53:21.490 I thank our guests from Corpus Christi 00:53:21.490 --> 00:53:24.610 for registering for that item. 00:53:24.610 --> 00:53:25.980 If any member of the public would like 00:53:25.980 --> 00:53:27.910 to address the board, now would be the time. 00:53:27.910 --> 00:53:32.560 Please indicate your interest digitally. 00:53:32.560 --> 00:53:34.950 Our IT staff will let us know 00:53:34.950 --> 00:53:38.650 if anyone would like to address the board. 00:53:38.650 --> 00:53:42.043 The board will not meet in closed session today. 00:53:43.149 --> 00:53:47.070 And so, unless IT indicates someone would like 00:53:47.070 --> 00:53:48.293 to address the board. 00:53:49.516 --> 00:53:51.470 <v Man>No sir, we don't have anybody,</v> 00:53:51.470 --> 00:53:53.840 who has raised their hand to speak. 00:53:53.840 --> 00:53:55.113 <v ->Thank you, Mr. Jolie.</v> 00:53:56.440 --> 00:53:57.680 Having no further business. 00:53:57.680 --> 00:53:59.750 This meeting of the Texas Water Development Board, 00:53:59.750 --> 00:54:00.760 is hereby adjourned. 00:54:00.760 --> 00:54:01.760 The time is 10:25am.