WEBVTT 00:00:00.640 --> 00:00:02.042 <v WebEx Narrator>Broadcast is now 00:00:02.054 --> 00:00:04.965 starting all attendees are in listen only mode. 00:00:04.989 --> 00:00:08.779 <v Chairman Lake>Good morning. This meeting of the Texas Water Development 00:00:08.779 --> 00:00:12.259 Board is hereby called to order. The time is 9:32 AM. 00:00:12.259 --> 00:00:15.460 For the record, my name is Peter Lake. With me today are 00:00:15.470 --> 00:00:18.570 Kathleen Jackson and Brooke Paup. Mr. Harden, first 00:00:18.570 --> 00:00:19.675 item, please. 00:00:19.699 --> 00:00:23.039 <v GC Harden>Mr. Chairman, the first item on the agenda 00:00:23.050 --> 00:00:27.410 is consider approving the agency Fiscal Year 2022 00:00:27.579 --> 00:00:31.809 and 2023 Legislative Appropriations Requests. Chris Hayden 00:00:31.820 --> 00:00:39.240 will address the Board on this issue. 00:00:39.240 --> 00:00:41.679 <v Chris Hayden>Good morning, Chairman Lake, Director Jackson, and Director 00:00:41.679 --> 00:00:45.119 Paup. For the record, I'm Chris Hayden of the Executive 00:00:45.119 --> 00:00:47.969 Administrator's Staff. Today, I'm gonna bring for to you the 00:00:47.969 --> 00:00:51.549 22-23 legislative appropriation request for your approval. 00:00:52.539 --> 00:00:56.170 The substance of the presentation material actually begins 00:00:56.170 --> 00:00:59.539 on page three of the pdf in front of you. I'm gonna 00:00:59.539 --> 00:01:02.140 go through it at a high level. If you have any questions 00:01:02.140 --> 00:01:07.159 I can answer those. On page three is the summary 00:01:07.159 --> 00:01:12.019 of our base budget request. There are 00:01:12.019 --> 00:01:14.689 two sections to this page. Top includes the amounts 00:01:14.689 --> 00:01:18.049 needed to fund agency operations and lower table includes 00:01:18.049 --> 00:01:21.780 amounts needed to fund debt service. Operations total 00:01:21.780 --> 00:01:27.420 288 million. Debt service is 181 million or a biennial 00:01:27.420 --> 00:01:31.930 total approximately $469 million. The GR breakdown 00:01:31.939 --> 00:01:36.670 is 118 million, of which 65 million is for operations 00:01:36.680 --> 00:01:40.140 and $52 million is for debt service. The requested 00:01:40.140 --> 00:01:43.620 $95 million in federal funds and our other funds consists 00:01:43.629 --> 00:01:48.859 of $128 million for operations, $129 million for debt 00:01:48.859 --> 00:01:53.870 service. The next page on page four includes the capital 00:01:53.870 --> 00:01:57.200 budget items. We have five projects that will be managing 00:01:57.200 --> 00:02:00.340 during the 22-23 biennium. They include the standard 00:02:00.340 --> 00:02:04.359 refresh of PC and laptops, acquisition of Computer 00:02:04.359 --> 00:02:08.430 Resources. Strategic mapping, shared technology services 00:02:08.439 --> 00:02:12.500 also known formally as a state data center. The 00:02:12.500 --> 00:02:15.949 continuation of the caps and some transportation items. 00:02:16.439 --> 00:02:19.800 There is also an ER associated with the state technology 00:02:19.800 --> 00:02:24.300 service. The total for these capital budget requests is 00:02:24.310 --> 00:02:28.469 a total of just over just under $8 million of which 00:02:28.469 --> 00:02:32.360 $7 million is general revenue and one million from 00:02:32.360 --> 00:02:36.240 turf for a strategic mapping. 00:02:36.240 --> 00:02:38.219 No questions, there's no questions there, I'm gonna 00:02:38.219 --> 00:02:41.430 go to page five, which includes our exceptional item 00:02:41.430 --> 00:02:46.180 requests. We have a total of six exceptional item requests 00:02:46.189 --> 00:02:50.060 this biennium totalling approximately $10.5 million and six FTE 00:02:50.060 --> 00:02:54.219 All this request is from General Revenue. 00:02:54.219 --> 00:02:56.669 And like I mentioned in the capital budget, 00:02:56.680 --> 00:02:59.949 one of these items is related to the share technology 00:02:59.949 --> 00:03:02.539 service item. 00:03:02.539 --> 00:03:07.729 After that, we have the next three pages is 00:03:07.729 --> 00:03:11.250 the narrative for all our six exceptional items. 00:03:11.740 --> 00:03:15.110 And that will be used to the basis for our legislative 00:03:15.110 --> 00:03:18.669 material during the budget hearings. I have pages 10, 00:03:18.669 --> 00:03:23.460 11 containing the riders and program priorities. This 00:03:23.460 --> 00:03:27.080 concludes my presentation of the LAR. I could go into 00:03:27.080 --> 00:03:29.650 any details you have or any questions you may answer. 00:03:30.439 --> 00:03:33.639 Thank you very much. 00:03:33.639 --> 00:03:37.110 <v Chairman Lake>Thank you, Chris, for that presentation. Questions 00:03:37.110 --> 00:03:38.238 comments. 00:03:38.262 --> 00:03:41.669 <v Director Jackson>Just appreciate all the work. A lot of detail 00:03:41.669 --> 00:03:44.199 went into this and a lot of thought. We know that this 00:03:44.199 --> 00:03:47.240 is a challenging budget year coming up. But there's 00:03:47.240 --> 00:03:51.259 still things that we are expected to move forward 00:03:51.259 --> 00:03:54.680 and to do and to accomplish and to do well, so appreciate 00:03:54.680 --> 00:03:57.770 the time that went into, you know, putting together 00:03:57.840 --> 00:04:00.080 if you will. Kind of like this financial game plan 00:04:00.080 --> 00:04:01.367 So thank you. Thank you, Chris. 00:04:01.391 --> 00:04:03.199 <v Chris Hayden>A lot of people 00:04:03.199 --> 00:04:06.120 in the agency that were involved in on this process 00:04:06.129 --> 00:04:09.610 throughout the whole agency. So it was a very big agency 00:04:09.610 --> 00:04:12.539 wide effort. 00:04:12.539 --> 00:04:14.900 <v Director Paup>Yes, Chris. Thank you. It's never an easy exercise 00:04:14.900 --> 00:04:18.170 to put together any LAR but to put together one 00:04:18.180 --> 00:04:21.230 you know, in this upcoming budget cycle with covid 00:04:21.240 --> 00:04:25.250 going on was extra hard. I know we've got 00:04:25.250 --> 00:04:28.170 six exceptional items, but I know that each one of 00:04:28.170 --> 00:04:32.069 those is very necessary to our mission, our core mission. 00:04:32.069 --> 00:04:35.180 And we can really discuss those with the legislature 00:04:35.180 --> 00:04:38.449 and validate each and every one of them. So thank you. 00:04:39.839 --> 00:04:43.250 <v Chairman Lake>Well said thanks everybody who put so much hard work 00:04:43.250 --> 00:04:45.453 into this. Is there a motion? 00:04:45.477 --> 00:04:47.680 <v Director Jackson>Chairman, I move we approve 00:04:47.680 --> 00:04:52.810 the agency FY 22-23 legislative appropriations request 00:04:52.819 --> 00:04:55.245 as recommended by our Executive Administrator. 00:04:55.269 --> 00:04:56.449 <v Chairman Lake>Is there a second? 00:04:56.473 --> 00:04:57.732 <v Director Paup>I second. 00:04:57.756 --> 00:05:02.060 <v Chairman Lake>All in favor say aye. Motion 00:05:02.060 --> 00:05:08.639 passes. Thanks, Chris. Next item, please, Mr Harden. 00:05:08.639 --> 00:05:11.250 <v GC Harden>Mr. Chairman, The next item on the agenda is consider 00:05:11.250 --> 00:05:14.670 approving by resolution the establishment of the lending 00:05:14.670 --> 00:05:17.779 rates scales for the State Water Implementation Revenue 00:05:17.779 --> 00:05:20.889 Fund for Texas financing structures, to be effective 00:05:20.889 --> 00:05:25.060 October 1, 2020, and David Duran will present to the 00:05:25.060 --> 00:05:26.990 Board on this item. 00:05:27.014 --> 00:05:29.879 <v David Duran>Good morning, Chairman Lake, 00:05:29.879 --> 00:05:32.620 Director Jackson and Director Paup. For the record, 00:05:32.620 --> 00:05:35.050 I'm David Duran of the Executive Administrator's staff. 00:05:36.139 --> 00:05:38.509 Executive Administrator is recommending the adoption 00:05:38.509 --> 00:05:41.449 of lending rate scales for borrowers receiving funds 00:05:41.839 --> 00:05:44.290 from the State Water Implementation Revenue Fund for 00:05:44.290 --> 00:05:49.149 Texas revenue bonds, Series 2020. On Tuesday, September 00:05:49.149 --> 00:05:53.009 22, the Board priced these Series 2020 bonds to provide 00:05:53.009 --> 00:05:55.779 new money proceeds for borrowers closing on Board committed 00:05:55.779 --> 00:05:59.769 projects in the state water plan. The Board will issue 00:05:59.769 --> 00:06:03.870 approximately 629 million in bonds to generate approximately 00:06:03.870 --> 00:06:07.910 731 million of proceeds to buy the borrower's, and 00:06:07.910 --> 00:06:12.350 the bonds were issued at a 2.55% true interest cost 00:06:12.740 --> 00:06:15.209 making it the lowest the Board has achieved in this 00:06:15.220 --> 00:06:20.410 program. The Board bonds will close on October 8 and 00:06:20.410 --> 00:06:23.319 SWIFT powers will have until December 4th on their 00:06:23.319 --> 00:06:28.069 bonds and Board participation master agreements. The 00:06:28.069 --> 00:06:30.480 proposed lending rates are calculated based upon the 00:06:30.480 --> 00:06:33.740 yield to maturity on the Boards bonds less the applicable 00:06:33.740 --> 00:06:36.339 subsidies previously adopted by the Board earlier this 00:06:36.339 --> 00:06:39.449 year, plus another three basis points for the Board's 00:06:39.449 --> 00:06:42.649 cost of issuance. With the adoption of the proposed 00:06:42.649 --> 00:06:45.339 lending rates, staff has estimated the entities will 00:06:45.339 --> 00:06:49.759 realize savings of approximately 129 million by utilizing 00:06:49.759 --> 00:06:54.860 the SWIFT program and inclusive of all previous bond sales, 00:06:54.870 --> 00:06:59.959 savings of over $1.1 billion. That concludes my presentation 00:06:59.959 --> 00:07:05.040 and I can answer any questions that you have. 00:07:05.040 --> 00:07:08.839 <v Chairman Lake>Thank you, David. Questions, comments? 00:07:08.839 --> 00:07:11.389 <v Director Jackson>Well, the last little sparkler, I guess, kind of says 00:07:11.389 --> 00:07:15.759 it all, cumulatively, $1.1 billion in savings. 00:07:15.759 --> 00:07:18.740 So again, using kind of the strength of the Board, 00:07:19.079 --> 00:07:22.660 to provide communities with affordable financing 00:07:23.040 --> 00:07:26.519 and quite frankly, safe communities save ratepayers 00:07:26.519 --> 00:07:29.879 money. But also, in many instances, particularly with 00:07:29.879 --> 00:07:33.259 our big regional projects, a structure that enables 00:07:33.259 --> 00:07:36.290 communities to move forward with projects that 00:07:36.290 --> 00:07:39.769 might, they might not otherwise be able to do, so again, 00:07:39.769 --> 00:07:43.189 turning planning into projects, funding projects 00:07:43.189 --> 00:07:46.550 in the state water plan. Great job by the team 00:07:46.550 --> 00:07:49.329 by everybody in getting I guess you said the lowest 00:07:49.329 --> 00:07:52.480 interest rate we've ever gotten. So, you know, just 00:07:52.490 --> 00:07:55.290 just a banner year and great work and so exciting to 00:07:55.290 --> 00:07:58.699 see things moving forward and seeing, you know, projects 00:07:58.699 --> 00:08:02.839 moving forward. So thank you so much. 00:08:02.839 --> 00:08:06.290 <v Director Paup>Well, I just wanted to congratulate the chairman, Jeff, 00:08:06.300 --> 00:08:08.870 David, Georgia and the whole team. And when we had 00:08:08.870 --> 00:08:11.879 a record setting bond sale in the middle of a pandemic, 00:08:11.879 --> 00:08:15.089 I mean how incredible is that? You guys were 00:08:15.089 --> 00:08:19.139 just amazing team. And, you know, the people of Texas 00:08:19.139 --> 00:08:21.410 are really the ones that benefit from the low interest 00:08:21.410 --> 00:08:24.540 rates. So well done, y'all. 00:08:24.540 --> 00:08:28.980 <v Chairman Lake>Thank you. Thank you, Director Paup. I echo those sentiments 00:08:28.980 --> 00:08:31.240 to Georgia and the entire team that worked on this, 00:08:31.240 --> 00:08:36.049 and you David had a key role in helping get that record 00:08:36.049 --> 00:08:39.669 low rate, so well, well done across the Board. And 00:08:39.669 --> 00:08:42.100 yes, Miss Jackson. That's a hell of a sparkler, 1.1 00:08:42.110 --> 00:08:47.500 hell of a sparkler, $1.1 billion in savings, But in 00:08:47.509 --> 00:08:52.519 five years since, 2015, when the first transaction 00:08:52.519 --> 00:08:57.190 occurred, it is hard to think of a water infrastructure 00:08:57.190 --> 00:09:01.320 program anywhere that has done such an incredible job 00:09:01.320 --> 00:09:04.340 of integrating the science, the planning, the state 00:09:04.340 --> 00:09:09.779 water plan and that incredible level of financing to 00:09:09.789 --> 00:09:13.559 get that level of water infrastructure moving 00:09:13.559 --> 00:09:16.750 in such a short amount of time. So that 00:09:17.740 --> 00:09:20.309 speaks highly of everybody. The Water Development Board 00:09:20.320 --> 00:09:23.779 the Legislature, who enacted this and, of course 00:09:23.779 --> 00:09:28.340 the Governor. Tremendous, tremendous work all. 00:09:28.340 --> 00:09:30.974 Is there a motion? 00:09:30.998 --> 00:09:32.549 <v Director Paup>Mr. Chairman, I move we adopt the 00:09:32.549 --> 00:09:36.309 proposed resolution establishing the lending rate scales 00:09:36.309 --> 00:09:38.970 for the State Water Implementation Revenue fund for 00:09:38.970 --> 00:09:42.279 Texas financing structures, to be effective October 00:09:42.279 --> 00:09:45.950 1, 2020, as recommended by our Executive Administrator. 00:09:46.740 --> 00:09:47.518 <v Chairman Lake>Is there a second? 00:09:47.542 --> 00:09:49.663 <v Director Jackson>I second. 00:09:49.687 --> 00:09:51.769 <v Chairman Lake>All in favor, say aye. 00:09:52.740 --> 00:09:57.200 Motion passes. Thank you, David. Next item, please, 00:09:57.200 --> 00:09:58.156 Mr Harden. 00:09:58.180 --> 00:10:01.070 <v GC Harden>Mr. Chairman, The next item on the agenda 00:10:01.639 --> 00:10:05.860 is consider adopting an amendment (audio cuts) to 31 Texas 00:10:05.860 --> 00:10:10.320 Administrative Code, Section 365.41, relating to low 00:10:10.320 --> 00:10:13.370 closing for the Rural Water Assistance Fund program. 00:10:14.639 --> 00:10:17.649 Glenna Bowman will address the Board on this issue 00:10:19.340 --> 00:10:21.679 <v Glenna Bowman>Good Morning, Chairman Lake, Director Jackson, Director 00:10:21.679 --> 00:10:24.240 Paup. For the record, my name is Glenna Bowman of 00:10:24.250 --> 00:10:27.730 the Executive Administrator staff. This proposed amendment 00:10:27.730 --> 00:10:30.340 would authorize the Executive Administrator to accept 00:10:30.340 --> 00:10:33.120 payments from borrowers and the RWAF program by 00:10:33.120 --> 00:10:36.809 wire transfer or in a manner acceptable to the executive 00:10:36.809 --> 00:10:39.870 administrator. The Board authorized publication of 00:10:39.870 --> 00:10:43.740 the proposed amendment on August 5th, 2020. The amendment 00:10:43.740 --> 00:10:46.779 was published in the Texas Register on August 21st 00:10:46.789 --> 00:10:50.149 with a deadline to receive comments By September 21st. 00:10:50.539 --> 00:10:53.860 No comments were received, and the executive director 00:10:53.870 --> 00:10:58.370 recommends approval of this item. That concludes 00:10:58.370 --> 00:11:00.960 my presentation. I'll be happy to answer any questions. 00:11:02.539 --> 00:11:07.340 <v Chairman Lake>Thank you, Glenna. Questions, comments? 00:11:07.340 --> 00:11:09.250 All right. Thank you for this effort going on, I know 00:11:09.250 --> 00:11:12.070 it's a pretty straightforward measure, but there's 00:11:12.070 --> 00:11:15.190 a lot of work that goes into it, making sure all the 00:11:15.200 --> 00:11:17.720 i's are dotted and tees are crossed, so thank you for working 00:11:17.720 --> 00:11:19.952 on this. Is there a motion? 00:11:19.976 --> 00:11:21.850 <v Director Jackson>Chairman, I move 00:11:21.850 --> 00:11:25.210 we adopt the amendment to 31 Texas Administrative 00:11:25.210 --> 00:11:30.360 Code 3.65.41, related to loan closing for the Rural 00:11:30.360 --> 00:11:33.330 Water Assistance Fund program, as recommended by our 00:11:33.330 --> 00:11:35.105 Executive Administrator. 00:11:35.129 --> 00:11:36.495 <v Chairman Lake>Is there a second? 00:11:36.519 --> 00:11:37.350 <v Director Paup>I second. 00:11:38.039 --> 00:11:43.590 <v Chairman Lake>All in favor, say aye. Motion passes. Thanks, Glenna, 00:11:43.590 --> 00:11:46.661 nice to see you. Next item, please, Mr Harden. 00:11:46.685 --> 00:11:47.700 <v GC Harden>Mr. Chairman 00:11:47.700 --> 00:11:50.210 The next item on the agenda is considered designating 00:11:50.220 --> 00:11:53.059 representatives to serve on the initial regional flood 00:11:53.059 --> 00:11:56.580 planning groups, as required by Texas Water Code section 00:11:56.580 --> 00:12:05.139 16.62c. 00:12:05.139 --> 00:12:07.370 I'm sorry, and Reem Zoun will address the Board on 00:12:07.370 --> 00:12:11.840 this issue. 00:12:11.840 --> 00:12:14.720 <v Reem Zoun>Good Morning, Chairman Lake, Director Jackson, and Director 00:12:14.720 --> 00:12:19.299 Paup. For the record, I'm Reem Zoun, presenting on behalf 00:12:19.299 --> 00:12:22.909 of the Executive Administrator. The Statewide flood 00:12:22.909 --> 00:12:26.190 planning for the state of Texas is an ambitious undertaking 00:12:26.200 --> 00:12:30.429 which is unique and first off a kind. Well, while much 00:12:30.429 --> 00:12:33.049 has been done in the universe of flood based production, 00:12:33.049 --> 00:12:36.440 there has not been anything done at scale in the United 00:12:36.440 --> 00:12:41.700 States, or perhaps even globally. The 2019 Texas Legislature 00:12:41.700 --> 00:12:44.789 and Governor Abbott greatly expanded the Texas Water 00:12:44.789 --> 00:12:47.740 Development Board's role in flood planning, making 00:12:47.740 --> 00:12:51.539 the TWDB responsible for administering a new state 00:12:51.539 --> 00:12:54.350 and regional flood planning process with flood planning 00:12:54.350 --> 00:12:59.769 regions based on river basins. On April 9, 2020, the 00:12:59.779 --> 00:13:02.139 Texas Water Development Board designated the flood 00:13:02.139 --> 00:13:05.309 planning region boundaries that created 15 flood planning 00:13:05.309 --> 00:13:08.549 regions in the state of Texas required to implement 00:13:08.549 --> 00:13:11.460 the flood planning departments of Senate Bill 8. 00:13:12.039 --> 00:13:17.529 On May 21, 2020, the Board adopted new 31 Texas Administrative 00:13:17.529 --> 00:13:22.210 Code, Chapter 361 and 362, relating to regional and 00:13:22.210 --> 00:13:24.960 state flood planning to implement the flood planning 00:13:24.960 --> 00:13:28.740 requirements SB8 as well. 00:13:28.740 --> 00:13:34.179 Texas Water Code 16.062c requires the Board to designate 00:13:34.190 --> 00:13:37.009 representatives to serve on the initial regional flood 00:13:37.009 --> 00:13:41.129 planning groups. Immediately following the May 21, 00:13:41.129 --> 00:13:44.399 2020, Board meeting, the Executive Administrator opened 00:13:44.399 --> 00:13:48.460 a solicitation for nominations for individuals to serve 00:13:48.470 --> 00:13:51.990 as an initial regional flood planning group members 00:13:52.000 --> 00:13:55.210 to fill the 12 voting interest categories for each 00:13:55.210 --> 00:13:59.899 of the 15 regions. The EA engaged in extensive 00:13:59.909 --> 00:14:05.039 outreach, including via news and social media. 00:14:05.039 --> 00:14:08.779 Over 600 nominations were received during the nomination 00:14:08.779 --> 00:14:12.789 period, including multiple nominations of the same 00:14:12.789 --> 00:14:15.549 individual for different interest categories or regions. 00:14:17.539 --> 00:14:20.179 Three off the flood planning regions do not appear 00:14:20.179 --> 00:14:23.639 to contain interest within their boundaries that fall 00:14:23.639 --> 00:14:26.720 into the specific interest categories, as included 00:14:26.730 --> 00:14:32.210 in 31 Texas Administrative Code 361.11. These include 00:14:32.220 --> 00:14:35.000 River authorities in the Lower Rio Grande Flood Planning 00:14:35.000 --> 00:14:38.639 Region and Flood District in the Upper Vargas and 00:14:38.639 --> 00:14:42.440 Upper Rio Grande flood planning regions. This reduces 00:14:42.440 --> 00:14:49.139 the total designations record from 180 to 177. 00:14:49.139 --> 00:14:52.440 No individual is recommended to be designated for more 00:14:52.440 --> 00:14:56.860 than one voting position, and no two individuals are 00:14:56.860 --> 00:14:59.750 recommended to represent the same region interest 00:14:59.750 --> 00:15:02.840 category position. 00:15:02.840 --> 00:15:05.889 There were 11 voting positions for which either no 00:15:05.889 --> 00:15:08.960 nominations were received, or there was not someone 00:15:08.960 --> 00:15:12.629 nominated who the EA considered to be in a position 00:15:12.629 --> 00:15:15.980 to provide adequate representation for that interest 00:15:15.980 --> 00:15:19.070 category within the region for which they were nominated. 00:15:19.840 --> 00:15:23.320 Therefore, the Executive Administrator makes no recommendations 00:15:23.330 --> 00:15:27.440 on those interest category positions. However, once 00:15:27.440 --> 00:15:31.769 convened and operating, the RFPDs will themselves 00:15:31.769 --> 00:15:34.419 fill thse remaining voting positions through their 00:15:34.419 --> 00:15:37.139 process. 00:15:37.139 --> 00:15:41.100 Based on a review of all the nominations, the executive 00:15:41.100 --> 00:15:44.889 administrator recommends designating initial members 00:15:44.899 --> 00:15:48.340 as shown in the Attachment B of the posted Board memo 00:15:48.340 --> 00:15:51.559 to be the initial regional flood planning group members 00:15:51.570 --> 00:15:58.029 for 166 off the 177 possible voting positions associated 00:15:58.029 --> 00:16:03.240 with the 15 regions. 00:16:03.240 --> 00:16:06.970 If approved, the Executive Administrator will notify 00:16:06.970 --> 00:16:10.899 the nominees designated as members, thank those who 00:16:10.899 --> 00:16:13.659 weren't designated, and encourage them to stay engaged 00:16:13.659 --> 00:16:18.059 in the process, begin orienting the designated 00:16:18.059 --> 00:16:21.620 members prior to convening their first meetings, and 00:16:21.620 --> 00:16:24.250 schedule and convene their initial flood planning 00:16:24.250 --> 00:16:26.340 group meeting. 00:16:26.340 --> 00:16:29.500 The Executive Administrator anticipates that the first 00:16:29.500 --> 00:16:32.039 of the 15 initial flood planning group meetings will 00:16:32.039 --> 00:16:37.250 occur by early November. At those first largely organizational 00:16:37.250 --> 00:16:40.470 meetings, we would like them to take a least three 00:16:40.480 --> 00:16:45.580 key actions. Number one. Adoption of the bylaws. Number 00:16:45.580 --> 00:16:48.750 two. Election of a chairman or interim chairman. 00:16:48.759 --> 00:16:51.840 And number three, designation of a political subdivision 00:16:51.840 --> 00:16:56.820 to act on their behalf, including applying for grant 00:16:56.820 --> 00:16:59.240 funding. 00:16:59.240 --> 00:17:01.980 Until the flood planning groups have met and selected a 00:17:01.980 --> 00:17:05.299 chair to lead them and a political subdivision to support 00:17:05.299 --> 00:17:09.230 them, the Texas Water Development Board will provide 00:17:09.230 --> 00:17:13.640 notice and organize and facilitate their meetings. 00:17:13.640 --> 00:17:16.890 Once operating, the RFPGs will then continue to 00:17:16.890 --> 00:17:20.309 meet with varying frequency as required to develop 00:17:20.309 --> 00:17:23.740 their own plans by the deadlines. They will determine 00:17:23.740 --> 00:17:27.220 flood risk reduction goals in the basin, direct their 00:17:27.220 --> 00:17:30.269 technical consultant in developing the planning information, 00:17:30.839 --> 00:17:34.769 solicit and consider public input and technical information, 00:17:35.140 --> 00:17:38.430 and make many decisions that will be required to develop 00:17:38.430 --> 00:17:41.930 their regional flood plans. Planning 00:17:41.930 --> 00:17:44.420 group members will be responsible for representing 00:17:44.420 --> 00:17:48.769 a diverse group of regional stakeholders. The regional 00:17:48.779 --> 00:17:51.180 planning groups will be responsible for developing 00:17:51.180 --> 00:17:55.470 the first sets of 15 regional plans by January 2023, 00:17:55.940 --> 00:17:58.680 based on the regional plans that Texas Water Development 00:17:58.680 --> 00:18:01.990 Board will prepare and adopt Texas's first ever state 00:18:01.990 --> 00:18:04.880 flood plan and presented to Texas Legislature in September 00:18:04.880 --> 00:18:09.789 of 2024. We are very appreciative of the large number 00:18:09.789 --> 00:18:12.890 of individuals who expressed an interest and willingness 00:18:12.890 --> 00:18:16.640 to serve on the regional planning groups. I would like 00:18:16.640 --> 00:18:19.769 to thank each person who expressed interest to serve, 00:18:20.140 --> 00:18:23.890 submitted nominations, provided endorsements, and supported 00:18:23.890 --> 00:18:27.799 the nomination process. It underscored the need for 00:18:27.809 --> 00:18:30.970 and the energy around this much needed planning effort. 00:18:32.539 --> 00:18:35.779 I would also like to take this opportunity to acknowledge 00:18:36.140 --> 00:18:39.170 the many staff across the agency who generously lend 00:18:39.170 --> 00:18:42.579 their time and expertise to assist the Executive 00:18:42.579 --> 00:18:45.599 Administrator's process of reviewing and ranking these 00:18:45.599 --> 00:18:49.940 nominations. These individuals served in various review 00:18:49.940 --> 00:18:53.170 roles and collectively reviewed over 600 nominations 00:18:53.170 --> 00:18:56.369 including over 1400 documents in support of these 00:18:56.369 --> 00:18:59.859 nominations. The staff of the flood planning division 00:19:00.440 --> 00:19:03.539 specially James Gronkowski, Morgan White and Richard 00:19:03.539 --> 00:19:06.609 Begins, who very efficiently organized and supported 00:19:06.609 --> 00:19:09.589 this entire online nomination's submission and review 00:19:09.589 --> 00:19:13.579 process. Our communication director, Mary Clanhauer, 00:19:13.579 --> 00:19:16.690 and her staff, who did the critical job of facilitating 00:19:16.690 --> 00:19:20.079 an effective outreach effort. Our attorney, Annette 00:19:20.079 --> 00:19:25.480 Mass who helped us navigate the process, and our ADEA 00:19:25.480 --> 00:19:28.789 Matt Nelson who continues to guide and provide 00:19:28.799 --> 00:19:32.160 feedback on this entire effort from behind the scene. 00:19:33.240 --> 00:19:35.910 We look forward to the next phase of the flood planning 00:19:35.910 --> 00:19:40.180 program. This concludes my presentation, and I'm happy 00:19:40.180 --> 00:19:45.240 to take any questions. 00:19:45.240 --> 00:19:49.405 <v Chairman Lake>Thank you, Reem. Questions, comments? 00:19:49.429 --> 00:19:51.230 <v Director Jackson>Reem just so exciting 00:19:51.230 --> 00:19:53.380 that we're moving forward with the first ever state 00:19:53.380 --> 00:19:57.230 flood plan and just a great, great work product that 00:19:57.230 --> 00:20:00.059 you and everybody across the agency that participated 00:20:00.059 --> 00:20:04.539 in it, actually were able to deliver. Again, I think 00:20:04.549 --> 00:20:08.079 just exciting that we're at the onset of this process. 00:20:08.089 --> 00:20:12.210 Very similar to maybe where we were a number of 00:20:12.210 --> 00:20:16.700 years ago state (inaudible) planning process. And I think 00:20:16.700 --> 00:20:19.089 as you mentioned, you know, one of the tasks that the 00:20:19.089 --> 00:20:22.710 group will have at the onset will be, you know, soliciting 00:20:22.710 --> 00:20:26.299 from the Board the grant funding again to kind 00:20:26.299 --> 00:20:28.960 of provide for the services of the consultants that 00:20:28.960 --> 00:20:32.799 will be used to take the group through a very prescribed 00:20:32.809 --> 00:20:39.170 process of identifying flood risk and then those projects 00:20:39.170 --> 00:20:41.809 or strategies that will be needed to mitigate that 00:20:41.809 --> 00:20:46.380 risk. So again, a structure in place that will hopefully 00:20:46.390 --> 00:20:50.599 in the years to come turn planning into projects, both 00:20:50.599 --> 00:20:54.259 structural and non-structural. The selection process, 00:20:54.269 --> 00:20:58.859 again, I know it was very tough. I looked at many 00:20:59.240 --> 00:21:03.480 if not almost all of the 600 nominations that came 00:21:03.480 --> 00:21:06.160 forth and kind of looked at their their background 00:21:06.160 --> 00:21:10.579 and their qualifications. And I can tell you, and having 00:21:10.579 --> 00:21:12.869 looked at the list, it was a tough choice. 00:21:12.869 --> 00:21:18.099 And in in many, many situations, I guess I would just 00:21:18.099 --> 00:21:22.240 kind of encourage those who you know, were not necessarily 00:21:22.240 --> 00:21:25.309 selected as the official members of the team at the 00:21:25.309 --> 00:21:29.809 onset to continue to participate in the process 00:21:29.819 --> 00:21:32.839 provide your thoughts and ideas. As you mentioned, 00:21:32.839 --> 00:21:35.470 the hope is that moving forward, it will continue to 00:21:35.470 --> 00:21:39.109 be something where we solicit public input, stakeholder 00:21:39.109 --> 00:21:42.559 input and get people's thoughts and ideas moving forward. 00:21:42.839 --> 00:21:47.519 I know there were a number of criteria that 00:21:47.519 --> 00:21:51.680 the staff used in terms of reviewing the applications 00:21:51.680 --> 00:21:54.549 that came in, their commitment to public service, 00:21:54.559 --> 00:21:57.829 understanding of flood risk issues, affiliation with 00:21:57.829 --> 00:22:01.509 their interest category. And then in my mind, you 00:22:01.509 --> 00:22:04.589 know, this willingness to work together cooperatively 00:22:04.589 --> 00:22:07.069 in a leadership role because, you know, if there's 00:22:07.079 --> 00:22:10.450 kind of one thing I think that was, kind of, 00:22:10.460 --> 00:22:14.369 a resounding directive from the Legislature and I think 00:22:14.369 --> 00:22:17.180 is really kind of, you know, serves as the foundation 00:22:17.180 --> 00:22:20.380 moving forward is the need to do, you know, this Basin 00:22:20.380 --> 00:22:23.869 wide Assessment, recognizing what happens upstream impacts 00:22:23.869 --> 00:22:26.819 downstream, and and vice versa, and to have, you know 00:22:26.819 --> 00:22:28.990 groups coming together, these groups coming together, 00:22:28.990 --> 00:22:32.519 to work together cooperatively, so very excited for 00:22:32.519 --> 00:22:36.150 this group. I feel like it is going to be at 00:22:36.150 --> 00:22:39.490 the very core of our success, the contributions that 00:22:39.500 --> 00:22:42.109 they're gonna make, and just appreciate all of your 00:22:42.109 --> 00:22:45.420 work and the staff's work in putting together these 00:22:45.430 --> 00:22:50.000 initial first flood planning groups. So you know 00:22:50.000 --> 00:22:52.839 cheers. And, you know, great job and excited to see 00:22:52.839 --> 00:22:56.440 everything moving forward. 00:22:56.440 --> 00:23:00.509 <v Director Paup>K. I love that you said cheers at 10 AM. 00:23:00.509 --> 00:23:04.420 <v Chairman Lake>We got cheers and billion dollar sparklers. Ms 00:23:04.420 --> 00:23:06.619 Jackson's on a roll. 00:23:06.643 --> 00:23:10.720 <v Director Paup>My type of Thursday. Reem, 00:23:10.720 --> 00:23:15.339 Congratulations. This process was far more complicated 00:23:15.339 --> 00:23:19.630 than it seems. We had 600 very qualified applicants 00:23:19.630 --> 00:23:23.720 for 180 spots. It was kind of like the perfect 00:23:23.720 --> 00:23:27.019 hybrid of chess meets wack a mole, trying to get these 00:23:27.019 --> 00:23:32.930 spots filled with the most effective and knowledgeable 00:23:32.930 --> 00:23:36.170 candidate. It was not easy. I know it took quite 00:23:36.180 --> 00:23:40.210 sometime, so thank you. It's very important to have 00:23:40.210 --> 00:23:42.950 the right people in these spots, because again, you 00:23:42.950 --> 00:23:46.380 know, the first, Statewide flood plan is going 00:23:46.380 --> 00:23:49.900 to come from these 180 individuals and the agency, 00:23:49.900 --> 00:23:53.140 so thank you. This was not easy. It took a lot 00:23:53.140 --> 00:23:56.180 of time, but you guys did a tremendous job as usual. 00:23:58.240 --> 00:24:02.990 <v Chairman Lake>Well said Brooke, and I like that Reem, Congratulations 00:24:02.990 --> 00:24:06.799 to you and the entire staff. Tremendous. Tremendous milestone 00:24:06.799 --> 00:24:12.019 in flood planning. Flood mitigation in Texas. SDA 00:24:12.019 --> 00:24:15.769 was a landmark piece of legislation, thanks to Senator 00:24:15.769 --> 00:24:18.259 Perry and Representative Larson for their leadership on 00:24:18.259 --> 00:24:20.420 that. Like you said, Reem, and this is something 00:24:20.420 --> 00:24:23.940 that's not been done at this scale anywhere in the 00:24:23.940 --> 00:24:26.710 country, in the world, certainly not when paired with 00:24:26.710 --> 00:24:32.460 the ongoing mapping and paired with the flood infrastructure 00:24:32.460 --> 00:24:37.059 funds. So truly unprecedented effort and the 00:24:37.069 --> 00:24:40.369 core of it, the keystone of all of it is this Statewide 00:24:40.369 --> 00:24:43.349 flood planning. For the first time ever, like Director 00:24:43.349 --> 00:24:46.559 Jackson said, we're gonna have folks up working together 00:24:46.569 --> 00:24:50.250 up and down watersheds in a coordinated, consistent 00:24:50.250 --> 00:24:53.480 manner all under the same framework. It's happening 00:24:53.480 --> 00:24:56.759 in piecemeal spots before, but never at a Statewide level 00:24:57.440 --> 00:25:01.250 never under the same framework. So just, well, echo 00:25:01.250 --> 00:25:06.059 again, what a truly landmark event, this state 00:25:06.059 --> 00:25:09.309 flood plan is. So congratulations, Reem. And thanks 00:25:09.309 --> 00:25:13.779 again to you and the staff that puts so so much work 00:25:13.779 --> 00:25:17.579 into this and thanks to all the people who volunteered 00:25:17.589 --> 00:25:20.369 and especially the folks who are gonna be putting in 00:25:20.369 --> 00:25:22.490 the work. None of this can happen without that local 00:25:22.490 --> 00:25:26.400 leadership, that local expertise, so a special thanks 00:25:26.400 --> 00:25:30.240 to you all. Is there a motion? 00:25:30.240 --> 00:25:33.130 <v Director Paup>Mr. Chairman, I move we approve the representatives 00:25:33.130 --> 00:25:36.319 for the initial regional flood planning groups as required 00:25:36.319 --> 00:25:40.990 by Texas Water Code Section 16-062c, as 00:25:40.990 --> 00:25:43.295 recommended by our Executive Administrator. 00:25:43.319 --> 00:25:45.612 <v Chairman Lake>Is there a second. 00:25:45.636 --> 00:25:47.229 <v Chairman Lake>I second. 00:25:47.253 --> 00:25:50.259 <v Chairman Lake>All in favor, say aye. Motion 00:25:50.259 --> 00:25:55.250 passes. Thanks, Reem. Next item, please. 00:25:55.250 --> 00:25:55.888 Mr Harden. 00:25:55.912 --> 00:25:59.059 <v GC Harden>Mr. Chairman, the next item on the agenda 00:25:59.059 --> 00:26:02.269 is consider approving by resolution a request from 00:26:02.269 --> 00:26:05.869 the city of Iola for financing from the Clean Water State 00:26:05.869 --> 00:26:08.910 Revolving Fund for planning, acquisition, design, and 00:26:08.910 --> 00:26:13.140 construction of a new wastewater system. Tom Barnett 00:26:13.150 --> 00:26:17.940 will present to the Board on this item. 00:26:17.940 --> 00:26:20.500 <v Tom Barnett>Good morning, Chairman Lake, Director Jackson, Director 00:26:20.500 --> 00:26:23.640 Paup. FOr the record My name is Tom Barnett of the executive 00:26:23.640 --> 00:26:27.410 administrator's staff. The city of Iola is located 00:26:27.410 --> 00:26:30.500 in Grimes County, approximately 25 miles northeast 00:26:30.500 --> 00:26:34.980 of Bryan College Station. Existing residences are currently 00:26:34.980 --> 00:26:38.460 served by failing individual on-site sewage facilities 00:26:38.470 --> 00:26:41.500 and the Texas Department of State Health Services issued 00:26:41.500 --> 00:26:45.940 a nuisance determination back in 2011. That same year 00:26:45.950 --> 00:26:48.359 Iola received a small grant through the economically 00:26:48.359 --> 00:26:51.819 Distressed Areas Program For the planning phase of 00:26:51.819 --> 00:26:55.299 the proposed project. The city is requesting financial 00:26:55.299 --> 00:26:57.759 assistance through the Clean Water State Revolving 00:26:57.759 --> 00:27:01.559 Fund for an updated planning phase, as well as the 00:27:01.559 --> 00:27:04.950 subsequent acquisition, design and construction phases. 00:27:05.339 --> 00:27:08.990 For a first time new wastewater system for their 00:27:08.990 --> 00:27:13.099 community. This project will include a gravity collection 00:27:13.099 --> 00:27:16.059 system, lift stations, and a wastewater treatment plant. 00:27:16.740 --> 00:27:19.259 The city will also complete an asset management plan 00:27:21.039 --> 00:27:24.099 The city qualifies for over $7 million in principal 00:27:24.099 --> 00:27:27.839 forgiveness as a disadvantaged community and for the 00:27:27.839 --> 00:27:31.329 remaining loan of $3.9 million to be zero interest 00:27:31.329 --> 00:27:34.670 financing as a disadvantaged small rural community 00:27:35.640 --> 00:27:39.079 The city is requesting a multiyear commitment with 00:27:39.079 --> 00:27:42.859 a first closing in 2020 for $1.9 million to finance 00:27:42.859 --> 00:27:46.240 the planning, acquisition and design phases, and the 00:27:46.240 --> 00:27:50.509 second closing scheduled for 2022 for $9.1 million 00:27:50.519 --> 00:27:54.089 for the construction. The Executive Administrator 00:27:54.099 --> 00:27:56.950 recommends approval of this item. This concludes my 00:27:56.950 --> 00:27:59.180 presentation, and I'm happy to answer any questions 00:27:59.640 --> 00:28:05.674 <v Chairman Lake>Thank you, Tom. Questions, comments. 00:28:05.698 --> 00:28:06.119 <v Director Jackson>Tom, I really appreciate 00:28:06.119 --> 00:28:08.750 you working on this project for a small community. 00:28:08.750 --> 00:28:12.180 And as you mentioned, this was a community that had 00:28:12.190 --> 00:28:15.490 availed itself of EDAP funds. And were able 00:28:15.490 --> 00:28:18.490 to work with them and structure the loan in such 00:28:18.490 --> 00:28:21.819 a way and the loan forgiveness through the clean water 00:28:21.819 --> 00:28:23.890 program that they're able to move forward with the 00:28:23.890 --> 00:28:27.920 project. Of course there was, you know, tremendous 00:28:27.920 --> 00:28:31.059 I think, effort on behalf of the community in terms 00:28:31.069 --> 00:28:34.559 of doing a number of things that they had to do financially 00:28:34.569 --> 00:28:39.470 so that in our review process, we feel very comfortable 00:28:39.480 --> 00:28:41.920 about working with them and kind of moving forward 00:28:41.920 --> 00:28:45.390 with this project. I think the fact that there are 00:28:45.390 --> 00:28:48.680 going to do an asset management plan, particularly 00:28:48.680 --> 00:28:52.509 for a small community that doesn't provide their own 00:28:52.519 --> 00:28:56.279 potable water service, and also is building new 00:28:56.279 --> 00:28:58.630 infrastructure for wastewater treatment. I mean, this 00:28:58.630 --> 00:29:02.950 is going to be tremendously important, again, because 00:29:03.240 --> 00:29:06.660 as you as you get a new facility in, there is need 00:29:06.660 --> 00:29:10.539 to do routine maintenance, there's need to do kind 00:29:10.539 --> 00:29:13.460 of maintenance that has to be done kind of throughout 00:29:13.460 --> 00:29:17.210 the cycle and through the life of the project and for 00:29:17.210 --> 00:29:21.269 the infrastructure. So, hearing the asset management 00:29:21.269 --> 00:29:24.470 plan with this new investment just makes all the 00:29:24.470 --> 00:29:26.789 sense in the world. And of course, we know that 00:29:26.789 --> 00:29:30.779 it's twofold. It's not just the facilities and making 00:29:30.779 --> 00:29:35.089 sure that you've got an eye on that, but it's also making 00:29:35.089 --> 00:29:37.920 sure that you've got your operating procedures 00:29:37.920 --> 00:29:40.759 in place. You've got an inventory of what your equipment 00:29:40.759 --> 00:29:45.079 is, and so just I mean tremendously, I think, will really 00:29:45.079 --> 00:29:48.559 help them to be successful. Being able to move forward 00:29:48.569 --> 00:29:52.220 their, I think a number of of special conditions that 00:29:52.220 --> 00:29:56.539 will be on the resolution, one of them being 00:29:56.539 --> 00:30:00.700 that their Class C operator will be provided under 00:30:00.700 --> 00:30:03.609 contract and that will be made available to the executive 00:30:03.619 --> 00:30:09.569 administrator as well as, I think there is 00:30:09.579 --> 00:30:13.940 provisions in terms of moving forward and 00:30:13.940 --> 00:30:17.140 operating this system. We're investing in this 00:30:17.140 --> 00:30:19.619 community. We want the city and our investment to be 00:30:19.619 --> 00:30:22.559 successful. And part of that success is maintaining 00:30:22.559 --> 00:30:25.309 the system through ongoing maintenance and upkeep, 00:30:25.319 --> 00:30:28.200 as required by the Board's resolution to commit funding, 00:30:28.200 --> 00:30:31.779 the city's bond resolutions, and obligations to the 00:30:31.779 --> 00:30:35.859 state requires the city to levy taxes or 00:30:35.940 --> 00:30:38.549 a revenue sufficient to pay all the maintenance 00:30:38.549 --> 00:30:41.440 and the operations expense, they further have to 00:30:41.440 --> 00:30:44.839 certify they will operate the system efficiently. So 00:30:44.849 --> 00:30:47.829 just want to stress that is very important that 00:30:47.829 --> 00:30:52.299 the city have a plan to maintain the total system. 00:30:52.309 --> 00:30:55.549 This is extremely important for the long term viability 00:30:55.549 --> 00:30:59.720 of the city and for the state's investment. So appreciate 00:30:59.720 --> 00:31:02.910 you working on this project again. A small community. 00:31:02.920 --> 00:31:06.569 A little over 400 people. 196 connection. So this 00:31:06.569 --> 00:31:09.640 is gonna make a huge difference in terms of their quality 00:31:09.640 --> 00:31:12.250 of life, and you know, their ability to move forward 00:31:12.250 --> 00:31:17.740 and to be successful. So thank you so much. 00:31:17.740 --> 00:31:21.660 <v Director Paup>Hard to follow, Director Jackson. But I will. Thank 00:31:21.660 --> 00:31:24.990 you, Tom, for putting together such a great package 00:31:24.990 --> 00:31:27.750 for the city of Iola. I think the special conditions 00:31:27.750 --> 00:31:31.259 made all the difference in this project, the non-level 00:31:31.259 --> 00:31:34.660 debt service, the reserve fund, the combo pledge. You 00:31:34.660 --> 00:31:38.470 guys really went the extra effort to make this project 00:31:38.470 --> 00:31:42.630 work. That will protect the state's interests and 00:31:42.630 --> 00:31:45.775 also help the city, so well done. 00:31:45.799 --> 00:31:47.859 <v Chairman Lake>Couldn't say it 00:31:47.859 --> 00:31:50.700 better. Good job across the board and thank you for 00:31:50.700 --> 00:31:55.039 the community leadership in Iola and the citizens of 00:31:55.039 --> 00:31:59.059 Iola for taking the steps that they needed to make 00:31:59.059 --> 00:32:02.339 this work. 00:32:02.339 --> 00:32:03.395 Is there a motion? 00:32:03.419 --> 00:32:05.920 <v Director Jackson>Chairman, I move we adopt the proposed 00:32:05.920 --> 00:32:08.769 resolution from the city of Iola for financing from 00:32:08.769 --> 00:32:11.420 the Clean Water State Revolving Fund for planning, 00:32:11.420 --> 00:32:14.329 acquisition, design and construction of a new wastewater 00:32:14.329 --> 00:32:17.559 system as recommended by our Executive Administrator. 00:32:18.240 --> 00:32:19.714 <v Chairman Lake>Is there a second? 00:32:19.738 --> 00:32:20.490 <v Director Paup>I second. 00:32:20.514 --> 00:32:22.369 <v Chairman Lake>All in favor say aye. 00:32:22.740 --> 00:32:28.589 Motion passes. Thanks, Tom. Good to see you. Next 00:32:28.589 --> 00:32:32.140 item, please, Mr Harden. 00:32:32.140 --> 00:32:34.640 find 00:32:34.640 --> 00:32:37.869 <v GC Harden>Mr. Chairman, The next item on the agenda is public 00:32:37.869 --> 00:32:41.140 comments. 00:32:41.140 --> 00:32:44.590 <v Chairman Lake>Do we have anyone signed up from the public? 00:32:44.614 --> 00:32:46.500 <v GC Harden>No, sir 00:32:46.500 --> 00:32:49.769 We did not get any visitor registration cards today. 00:32:51.240 --> 00:32:53.650 <v Chairman Lake>Alright, if any member of the public would like to 00:32:53.650 --> 00:32:56.638 address the board, now would be the time, please-- 00:32:56.662 --> 00:32:57.650 <v WebEx Narrator>Chairman 00:32:57.650 --> 00:32:59.950 Lake, we do not have any raised hands at this time. 00:33:00.740 --> 00:33:05.829 <v Chairman Lake>Thank you. Mr Kreider, the Board will not meet in executive 00:33:05.829 --> 00:33:10.950 session today. So having no further business, this 00:33:10.960 --> 00:33:13.980 meeting of the Texas Water Development Board is hereby 00:33:13.990 --> 00:33:18.170 adjourned. The time is 10:05 a.m. Thank you.