Will begin momentarily. On this date Thursday,
October 12, 2023. President Reynolds will convene the meeting uh, shortly. If you wish to speak
during the public comment period. Please unmute your phone, and press *1
and record your first and last name slowly and clearly
when prompted. You will be placed in the queue
in the order that you have identified yourself.
When it comes time for you to speak. I will announce your name and open your line.
You will have 1 minute to speak. Good morning everyone, and welcome to the
California Public Utilities Commission Voting Meeting. I'm calling
this meeting of October 12, 2023
Public Agenda No.
3534 to order. We need to start by establishing a
quorum. And I did want to note that uh,
Commissioner Houck is necessarily absent today.
So Agenda Clerk, could you please call the role? Commissioner Douglas?
Here. Commissioner John Reynolds? Here.
Commissioner Shiroma? Here. President Alice Reynolds? Here.
We have a quorum. Today we're meeting at the San Joaquin County Administration Building in Stockton, California. And I do wanna thank the County of
San Joaquin for offering the use of their facilites, and for
giving us such a warm welcome today. It's really great to be here and we appreciate
uh, the opportunity.
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icon.
Um, I did want to
take a moment, before we start public comment. To note and
recognize, celebration of National Disability
Employment Awareness Month in October.
Uh, National Disability Employment Awareness Month was
created in 1988. To help raise awareness regarding
ways to better achieve meaningful
inclusion and celebration of individuals with disabilities
in the American workforce. Today, we continue that
tradition by recognizing this year's National theme.
of Advancing Access in Equity. Advancing Access
in Equity means supporting works with mental health
issues. Um,
promoting accessible workplace technology and fostering competitive integrated
employment opportunities. National Disability Employment
Awareness Month provides an annual opportunity to
them y'all. So, um anyways, uh a little Aggie sound
that y'all make who I think it's fitting for that,
right? Everyone want to whoop. No, I'm not gonna make
you do it. Um No, but we had a, we had a
very successful bond sale and I think it's just a testament
to Texas water and to the good work that uh Georgia
and D PM do every day. Um They are very deliberate
in who they pick to be in our syndicate and who that
seniors and Wells Fargo did an incredible job. So,
um well done and snaps and you know, all good things
So, and with that item number two, chairwoman, item
number two is consider authorizing the publication
of notices of intent to review rules in 31 Texas administrative
code chapters 3 57 58 59 60 63 64 67 71 75
and 77. And Kendall Kal is here to present to the board
on this item today. Good morning, chairwoman Pop director
Payton, Director Stephanie, I'm Kendall Kowal of the
executive administrator staff. This item includes the
proposed publication of notices of intent to review
rules in various chapters of the agency's administrative
rules in December of 2022 the board approved a schedule
of review for the agency's rules and according to that
schedule, this item proposes to publish a notice of
intent to review review rules for 10 chapters. Chapter
3 57 Regional Water Planning, Chapter 3 58 state water
Planning guidelines. Chapter 3 59 water banking which
includes the Water Trust as well. Chapter 3 60 designation
of river and coastal basins. Chapter 3 63 financial
assistance programs which governs our state funded
programs. Chapter 3 64 model subdivision rules. Chapter
3 67 agricultural water Conservation program. Chapter
3 71 drinking water State revolving fund. Chapter 3
75 Clean Water State Revolving Fund and Chapter 3 77
the Hydrographic survey program, uh staff will review
these rules to determine whether the factual legal
and policy reasons for adopting the rules continue
to exist and whether the rules should be repealed,
readopted or readopted with amendments. Um If staff
recommends any changes to the rule chapters, pursuant
to staff review or public comments, uh those changes
will be brought to you in a separate board item. Um
If approved, these notices will be filed with the Texas
register and open for a 30 day public comment period
The executive administrator recommends approval of
this item and I'm available for any questions. Thanks
Kendall questions, comments. Yeah, it no comments from
me and uh thanks. It's just, I I understand it's 10
chapters. So a heavy lift for staff. So thank you very
much. We look forward to the feedback. It's a team
effort. So I can't take all the credit. It's a lot
Um 18 years in state government and I've worked at
a lot of different agencies. I really feel like we
have the best General Councils division in the state
and I brag on this agency all the time. But y'all just
do an extraordinary job and you're very thorough. You
have a really small team, but y'all are just um excellent
at what you do. So, Ashley, congratulations on all
your your team. So, with that, yeah, Director Peyton
do you have a motion uh madam chair? I move, we authorized
the publication of notices of intent to review rules
in 31 Texas administrative code chapters 3 57 3 58
3 59 3 63 63 3 64 3 67 3 71 3
75 and 3 77. As recommended by our executive administrator
Is there a second a second? All those in favor. Say
hi, hi, the motion passes. Thanks kind.
Ashley Adam. Number three, please.
Chairman item number three is considered adopting with
changes the previously proposed amendments to 31 Texas
administrative code chapters 3 61 and 3 62 relating
to regional and state flood planning. And Rem Zun is
here to present to the board on this item today.
Good morning, Chairman pop Director Payton and Director
Stephanie for the record. And in June of the executive
administrators, staff uh the 2019 Texas legislature
and Governor Abbott greatly expanded TWD BS role in
flood planning making the TW DB responsible for administering
the state and regional flood planning process with
flood planning regions based on river basins. With
the near completion of the first cycle of regional
flood planning. There was a need to modify the rules
prior to the second cycle of planning. The goal of
this amendment process was to make the regional flood
planning process more efficient while providing the
level of information needed to compile a comprehensive
state flood plan. As 1st, 1st step of the rulemaking
update process. The TW DB solicited preliminary input
from a wide variety of regional flat mining group of
stakeholders to better inform the development of the
draft proposed amendments to the rules. Uh The preliminary
input received was incorporated into the draft proposed
amendments to the rules on April 6th 2023. The board
authorized the publication of the draft proposed amendments
to the rules which were published in the Texas register
on April 21st 2023. Public comment was accepted for
30 days until May 22nd of 2023 comments were received
from entities comprising 26 pages of written comments
Uh tw DB appreciated the comments and made a number
of changes as a result. The proposed changes to the
rules in chapter 3 61 includes but are not limited
to the following. The amendment rules require that
as part of the technical memorandum of deliverable
the RFPGS provide a summary and maps of locations that
are considered to be the greatest flood risk. Uh The
amendment require public meeting to uh meetings to
take public comment related to the draft regional flood
plan to be held in a central location in the flood
planning region. This was required by the statute based
on the preliminary feedback from the RFPGS and the
technical consultants that some requirements were overly
burdensome and impractical. The proposed rule amendments
removed the requirements that the regional flood plans
included the future conditions analysis for the 0.2%
an all chance flood plain and the requirement of an
equitable comparison and consistent assessments of
all potentially visible if flood media projects and
flood management strategies. However, TW DB received
significant input during the formal public input period
recommending the restoration of both of these requirements
and they were restored. Uh The the proposed amendment
move the flood mitigation need analysis before the
development of flood mitigation and flood management
goals.
Um The proposed amendment uh requires uh clarifies
a clarification that the TW DB ranking of flood mitigation
strategies will only include those that have non recurring
non capital cost changes to Chapter 3 62 was minor
and correctional in Na Nature. Uh The attached preamble
to chapter 3 61 and uh chapter 3 62 provides further
rule context and describes the public comments received
and changes made in response to the comments upon adoption
of the final regional flood planning rules. The executive
administrators will begin updating the CD guidance
document including the regional flood planning scope
of work. Uh This will inform the development of the
updated contracts which will TW DB will enter into
the planning group sponsors expecting in um early next
year, the input received from the stakeholders were
thoughtful and constructive and resulted in beneficial
changes to 31. Texas administrative code chapters 3
61 and 3 62. We'd like to thank all the stakeholders
who took the time to provide feedback. Um On our end
I would like to take this opportunity to acknowledge
flood planning. Staff members specifically began ingram
and our dedicated attorney and mass. We look forward
to the second cycle of regional flood planning being
supported by this enhanced and updated rules based
on regional flood planning groups and public feedback
Uh The executive administrator recommends that the
board adopt which changes the previously proposed amendments
to 31 Texas administrative code chapters 3 61 and 3
62 relating to regional and estate flood planning.
This concludes my presentation and I can take questions
Thanks for any questions, comments, ream thank you
so much for the update and uh the work of your staff
and many others across the agency on this project.
Uh I just a couple of things I want to point out
number one, you know, we're ultimately trying to, trying
to mitigate risk associated with um impacting life
and property. So this is just a great effort. Uh Two
things to point out there was quite a bit of coordinating
with our sister agencies on the, the guidance document
which I think it's great for, you know, for us to,
you know, talk across um across the a not across the
aisle, but with other agencies. I think that's really
a great thing that your team has done. And then secondly
you use the example of the 0.2% annual chance floodplain
um factor and I guess we were going one way and then
we have significant comments and we turned back around
and I think that's really the very important point
that our staff are actually listening to comments and
responding to the comments and making adjustments as
necessary. So I just applaud your effort. Thank you
Yeah, II, I would echo that and I would commend the
process in general, not only your, your team doing
a fantastic job, but also just the process of going
out and soliciting um stakeholder feedback and being
able uh to appreciate and listen to that feedback and
incorporate it where appropriate, so great job and
and great process. Thank you, re you have an excellent
team. Um Again, TW DB is transparent and we're stakeholder
driven and we wanna hear from everyone who's impacted
um by our programs and I, you always thank your team
I'm gonna thank you today. Um You managed to get uh
this flood program up and running and a herculean effort
of three years. And we're gonna deliver the first uh
statewide flood plan to the ledge next year. It's incredible
and really thank you and all of your, your staff for
the efforts. It's, it's a really big deal. So 500 million
committed right now, 100 and 40 130 flood mitigation
projects. Um 600 600 now, 600 now mitigation.
Yes, we move up and our uh statewide flood plan has
a new capital cost of almost $40 billion. Um Flood
mitigation is real for the state of Texas and we're
putting uh the best and the brightest behind it and
I can't thank you enough. So, with that director Stephanie
do you have a motion? Yes, madam chair, we adopt the
changes, the previously proposed amendments to 30 Texas
administrative code chapters 361 and 362 relating to
regional and state flooding planning. As recommended
by our executive administrator. Is there a second?
All those in favor say the motion passes. Thank you
Thank you so much. Ashley. Item number four, please
Chairwoman. Item number four is consider approving
internal audits fiscal year 2024 audit plan and Nicole
Campbell is here to present to the board on this item
today.
Um Good morning chair pop director Payton and director
Stepney for the record. I'm Nicole Campbell. I'm the
board's internal audit director. This item is to consider
approving the internal audit division's fiscal year
2024 audit plan. Before I begin, I just want to take
the opportunity to express our sincere appreciation
to staff management, executive administration and to
each of you for participating in this year's risk assessment
process and contributing towards the development of
the plan. I also want to confirm that the board's internal
audit program is carried out with objectivity and independence
and that the division currently has the resources necessary
to do the work outlined in the plan, the Internal Auditing
Act and professional auditing standards require the
development of an audit plan based on a systematic
assessment of risk. The Act also requires that the
plan be presented to the board for review and approval
The fiscal year 2024 plan allocates resources to complete
risk based and statutorily required audits, carry forward
audits and follow up on prior audits, administrative
responsibilities and requirements as well as other
uh audit activities anticipated for the year were also
included in the plan. And additionally, uh contingency
projects were selected and can be performed if our
allocated to the planned audits are not fully expended
or agency priorities change. This concludes my presentation
and I'm available for any questions, Nicole questions
comments. Thank you, Nicole and I support the audit
plan. I just want to say that I think internal audit
provides an a very critical function for our agency
Um always providing great input to improve our effectiveness
and our overall governance and to mitigate risk. And
when you're an agency as large as ours um with a portfolio
like ours and then with daily day operations is really
important and not only does Nicole's group um conduct
internal audits, but she also coordinates with I'll
say external auditors that come to audit our functions
And so I just appreciate your effort and your team's
effort. Thank you so much. I, I would, I would echo
that as well. Um The role y'all play is critical. Um
The professionalism that you all and your team carry
out um is, is top notch. Uh I think I speak for
all of us when it allows us to sleep better at night
knowing that y'all are uh on top of things um and carrying
out a, a very professional and well run internal audit
service, so great job. Yeah, but a again echo our two
board members sentiments. Um Not every agency really
likes their internal auditors. Um It's um you know
a peak behind the curtain is sometimes never um never
appreciated. But um our internal audit is not adversarial
and you work so well with the agency and um you know
the the work product is, is really, really uh necessary
and um you do a great job. So, um you know, kudos
to you
with that uh Director Peyton, is there a motion madam
chair? I move, we approve the fiscal year 24 internal
audit plan as recommended by our executive administrator
Is there a second a second? All those in favor. Say
I I the motion passes. Thanks Nicole. All right. Item
number five, please. Ashley,
the chairwoman. Item number five is considered approving
by resolution. The establishment of the lending rate
scales for the Swed financing structures to be effective
October 5th 2023 and David Duran is here to present
to the board on this item today. Good morning chair
own pop director Peyton and director Sty for the record
I'm David Duran. The executive administrative staff
the executive administrator is recommending the adoption
of lending rate scales for borrowers receiving funds
from the state water implementation and revenue fund
for Texas revenue bonds series 2023 A and taxable series
2023 B on Wednesday, September 27th. The board priced
the bonds to provide new money proceeds for borrowers
closing on board committed projects in the state water
plan. The board will issue just over 1 billion of bonds
to generate approximately 1 billion of proceeds to
provide to borrowers. And the bonds were issued at
a 4.69% all in true interest cost. The boards bonds
will close on October 12th and Swift borrowers will
have until December 7th to close on their bonds in
board participation master agreements. The proposed
lending rates are calculated based upon the yield of
maturity on the board's bonds less the applicable subsidies
previously adopted by the board in April of this year
plus four basis points for the series 2023 A bonds
and plus 19 basis points for the 2023 B bonds representing
the board's cost of issuance with the adoption of the
proposed lending rates. Staff has estimated that entities
will realize savings of approximately 100 and $33 million
by utilizing the Swift Program and inclusive of all
previous swift bond sales, swarf bond sales savings
of approximately $1.5 billion. The executive administrator
recommends approval and I'm happy to answer any questions
You have
questions, comments.
Um So thank you. Thank you for the effort on the swift
of course, is um just so important for water infrastructure
in Texas. And uh I really don't have any common 100
and $30 million savings for entities. This is extraordinary
Thank you. Yeah. Cornerstone program, I mean, I, I've
said it time and time again. This is a fantastic program
Um It's fantastic to see it hit price. Um where it
did we, how are we relative to, to treasuries? We're
kind of right on top of treasuries. Was there a we
had a spread to treasuries? Yeah, I should have a bit
of a spread but, but not too far, right. I mean, I
think it was in line with our prior spreads. Um Yeah
M MD and, and, and, and treasuries, you know, maybe
we're tightening, but I think we still had a sizable
spread because that's our normal pricing range. Yeah
I, I will, I will say it's pretty impressive to see
the state of Texas having AAA AAA, you know, credit
rating above the sovereign, which you don't see that
often. Um It was fantastic. And again, I, I mean, I
think the service that we're providing and the, and
the function of the swift and how it actually mechanically
works for communities is just tremendous. Um So great
job. These are great rates. Yep, it's the gold standard
of infrastructure lending programs in the country.
Uh 1.5 billion now. Um of savings to our, our borrowers
That's, that is absolutely extraordinary. Um The, the
swift is, is working, it's doing exactly what it was
supposed to do. Um Excited to see um what it holds
in the future. Um Bond sales sometimes aren't fun.
Uh This one was pretty jovial and pretty fun. Um for
the day. Um So I think that's because Georgia and D
PM put in so much work uh beforehand, so got there
and just, you know, did what Texas water does so well
done. 11 more thing to quickly chairwoman that, that
1.5 billion you referenced comes at an ultimate taxpayer
cost of only a couple $100 million. Um Which is, which
is incredible. You talk about one of the best uses
of taxpayer funds. Awesome. How can you, we've used
$300 million or so, maybe a little bit more to save
taxpayers 1.5 billion. Uh Incredible and the swift
is working. Um It's doing exactly what the ledge really
wanted it to do and it's because we've got a great
team behind it, so appreciate it and appreciate the
trust as well. Um Couldn't do it without uh the controller's
office and the trust. So, is there a motion director
Stephanie Yes madam chair I move, we adopt the proposed
resolution. The establishment of the lending rate scale
for the swf financing structure to be effective. October
5th 2023 is recommended by our executive administrator
Is there a second? All those in favor say the passes
Ashley. Item number six, please. Uh Item number six
I number six is considered approving the adopted minor
amendment to the 2021 region h regional water plan
and authorizing the executive administrator to hold
the associated 2022 state water plan public hearing
And Heather Rose is here to present to the board on
this item today. Good morning, chairwoman pop director
Stephanie and director Peyton for the record. My name
is Heather Rose of the executive administrator staff
The adopted minor amendment to the 2021 regional region
H regional water plan adds an additional recommended
water management strategy and project. The Lower Neches
Valley diverse pump station relo relocation. This project
sponsored by the Lower Inches Valley Authority will
replace an existing raw water pump station with a higher
capacity pump station, a new intake structure on the
Trinity River and discharge structures. The amendment
adds a capital cost of approximately $17.6 million
to the plan. The new facility will provide approximately
9000 acre feet per year in additional water supply
to address water supply needs of the irrigation water
user groups. This amendment was previously reviewed
by the executive administrator and determined to be
a minor amendment. A determination response was provided
to the Planning group on July 7th 2023. The region
h planning group held a public meeting and adopted
this amendment on August 3rd of this year and no public
comments were received on the amendment.
If the board approves this amendment authorization
is also requested to hold a public hearing for a proposed
amendment to the 2022 state water plan. After a 30
day notice period, the board will be asked to consider
approving a state water plan amendment at a future
board meeting. The executive administrator recommends
approval of this item. This concludes my presentation
and I am happy to answer any questions. Thanks, Heather
questions, comments. Thank you. Um Heather, as I understand
it, this is an important project to the AG users in
that area. So and also you did a great job going over
the process. So um the region has the regional group
has approved and then one more step to get it approved
by the board for the state plan. So no comments. Payton
Yeah, I I would just applaud the the flexibility um
and willingness of of not only our agency but region
h uh to incorporate new projects um and then get them
added to their regional plan and the state water plan
Um I think that flexibility, you know, um shows some
adaptability and things aren't set in stone when, when
great projects come up, that are that are beneficial
for the area they can be included in and added in and
eligible for for funding from the agency from swift
So, yeah, well said um the water planning process is
not a static process. It's a living breathing process
where we work with all the 16 regional water plans
and make sure that they have the projects they need
in the state water plants. So this just goes to show
that we're flexible and, and we can evolve as needed
So, uh Heather, thank you very much, Director Peyton
Do you have a motion madam chair? I move, we approve
the adopted minor amendment to the 2021 region uh H
regional water plan and authorize the executive administrator
to hold the associated 2022 state water plan public
hearing as recommended by our executive administrator
Is there a second a second? All those in favor say
I the motion passes. Thanks, Heather, appreciate you
Ashley. Item number seven, please, chair and item seven
is considered authorizing the executive administrator
to execute multiple contracts in a total amount not
to exceed $1,300,000 for Lidar data collection and
quality control in Texas under the Strategic Mapping
program and their associated contracts at the Texas
Department of Information Resources. Uh Richard Wade
is here to present to the board on this item today
Good, good morning chairwoman Pop Director Peyton,
Director Stephanie for the record. My name is Richard
Wade of your executive staff uh text geo primary role
is to develop statewide data layers uh for the state
agencies and for the public. Our primary role is for
the completeness, accuracy and integrity of that information
Light R is probably one of the most important data
sets that we have at the state level. Um It's primarily
uh developed by using aircraft to create a three dimensional
model of the earth's surface. And it's uh highly uh
accurate engineering grade level for use for all applications
Primarily things like uh uh flood planning, flood mitigation
Also to coastal erosion, coastal hurricane uh storm
surge modeling, watershed modeling facilities just
to name a few. Um This particular item um is focused
on an area uh uh four watersheds primarily of 7000
square miles in North Central and East Texas uh extending
primarily across the Sabine Red Lake Texoma, Upper
Trinity and Little basin watersheds. The counties involved
in that the primary counties involved with that are
Archer Jack Lampasas in Smith County. These data are
starting to become aged uh after eight years, they
lose their integrity when it comes to the federal quality
specifications. Uh They become what is uh considered
not, not valid after about eight years. Smith County
is plan to uh to contribute slightly to, to this project
not a lot, but they have a little area. They wanted
us to make sure that we got. So we're gonna do that
Their contribution is, is probably not to exceed about
$20,000. In addition, we have a 3d elevation program
grant from the US GS of a of approximately $272,000
which we will apply to this program. And it's, it'll
just be a pass through. Um The other thing to mention
is that liar isn't just for, for the, the things I've
mentioned, it also yields residual products that we
create, uh things like our buildings database. Uh It's
primarily used for, you know, uh stream restoration
change detection. 911 level information is really,
really critical specifically when you extract those
building data out of light. R. So anything that's eight
years old, that data becomes aged quickly when you
when you have those data products. Um So with, with
that, the executive administrator uh recommends approving
this item and I'm happy to take any questions you may
have. Thanks, Richard questions, comments. You know
I'm just happy that we're investing in. Um this technology
lidar has just really been a game changer and I really
liked um your presentation because it highlights uh
how many uses there are for this type of data, not
just water related, right? You talked about 911 building
for um and other agencies and private entities use
the data or the public. So I support the item paint
Yeah. No, th this falls squarely in the, in the aspect
of TGO and, and the agency being a science repository
for this type of information. So it's incredibly impactful
Um, can you remind me just how many different contractors
we typically use? Is it one contractor that, that flies
liar for these? Usually depending on the size of the
project, it could be multiple contractors. And so that
that gets depend, that's depending on um the timing
that it takes for us to do that. If we feel like
one contractor can do it from start to finish in the
time frame, we will usually award to the one, there's
usually two contractors though one to actually do the
project and one to do the quality control. Um, so they
can check each other and there, there's no, uh, there's
no issues with that, but if it's a big project and
we still need it done within a particular time frame
we could do multiple contracts. Yes. And it's typically
done in the fall winter when the leaves have dropped
That is preferred. Yes. Ok, great. No, it, it, I mean
this, this is again core function of the agency. Uh
a, a very well, um, planned use of funds so supportive
of it. Yep, the, the better, the data, the better the
science, the better the planning. Um, I'd like to applaud
Smith County. I know $20,000 doesn't seem like a lot
but for a county that has a lot of different budgetary
um, issues, I mean, it, it just shows that they are
they see the value in the liar. So um again, I'm not
allowed to call you tener anymore according to Patrick
he and Brian. Um but you have the coolest job in the
state of Texas and you do um a great service for us
So thank you. And with that uh director Stephanie,
do you have a motion? Yes, madam chair, I move. We
authorize the execution of multiple contracts and the
total amount not to exceed $1.3 million for light our
data collection and quality control in Texas using
the Strategic Mapping program and their associated
contracts at the Texas Department of Information Resources
As recommended by our executive administrator. Is there
a second? All those in favor. Say hi, hi, the motion
passes. Thanks Richard Ashley. Item number eight, please
Uh Chairwoman item number eight is consider authorizing
the executive administrator to execute contracts as
approved and directed by the federal Emergency Management
agency in a total amount not to exceed $65 million
for sub grants from the fiscal year 2021 flood mitigation
assistance grant program upon notification and a board
and Cathy Hopkins is here to present to the board on
this item today. Um Good morning chairwoman pop director
Peyton directors. Um Stephanie for the record. I'm
Cathy Hopkins of this thing is really bothering me
Sorry, I'm short. They're tall. Um For the record.
I'm Cathy Hopkins of the executive administrator staff
The Texas Water Development Board is the state agency
tasked with administering the flood mitigation assistance
grant program. On behalf of Fe Ma, the flood mitigation
assistance grant program assists states and communities
by providing federal funds for cost-effective measures
to reduce and eliminate the long term risk of flood
damage and repetti flood damage to repetitive and severe
repetitive loss, structures and other structures insurable
Under the national flood insurance program for federal
fiscal year 2021 the Texas Water Development Board
forwarded 13 flood mitigation assistance community
sub applications along with the Texas Water Development
Board's management cost of application to Fe Ma for
review and selection. The TW DB was notified by F MA
that nine of the 13 community sub applications were
identified for further review. Sub applications selected
by FA by FF MA work for the city of Athens Conroe
in Houston, the County of Orange and Montgomery County
Jefferson County Drainage District. Number six and
number seven, these sub applications have a total project
cost of approximately $61.48 million of which approximately
51.53 million in federal funding with a total community
match requirement of roughly 9.95 million. Selected
sub applications anticipate to mitigate 3500 and 90
flood prone structures. Um complete a scoping project
and update a community hazard mitigation plan. In addition
to the nine community sub applications FEMA also selected
TWD BS management cost application in the amount of
approximately $4.5 million in federal funding which
requires the state match of a roughly 759,000. Summary
of each of these sub applications proposed mitigation
activities are included in your board. Memo F MA has
awarded six of the nine sub application within the
past 45 days. These awards were delayed by a year due
to Fema's processing and system issues. The remaining
three will be awarded after Fema's environmental assessment
process has been completed. F MA may ward um increase
in the federal funds due to overages caused by inflation
and increased costs. Staff is requesting $65 million
instead of the $61.8 million to allow the executive
administrator flexibility to execute contract amendments
As awarded by F MA. The executive administrator recommends
approval by the board to execute contracts with these
entities as approved and directed by F MA for a total
federal amount of $65 million for sub applications
from the Fema's flood mitigation assistance grant program
This concludes my presentation and I'm here to answer
any questions you might have. Thanks, Cathy questions
comments. Um Thank you so much. Just a quick question
Just to clarify the difference between the 65 61 million
and the 65 million is we're just trying to account
for any potential cost overruns which we're seeing
a lot of. Yes. So um but no comments. Thank you for
your work.
You know, this is fantastic. Um uh you know, ability
to kind of leverage um federal funds. And um we, we
love taking advantage of that um cognizant of any complications
that can arise from that funding. Are there any new
requirements regarding any federal funding that than
there have been in previous years past? Or is this
kind of business is normal? Kind of business is normal
I mean, every funding cycle fe ma I say likes to put
little treasures in the notice of funding opportunity
Yeah, little little treasures that we like to find
to dig out. But there hasn't really been any major
um overhauls to the the grant program. Um One of the
the biggest things right now is the additional funding
that's out there that's available. So we went from
about 100 and 60 million to 200 million a year to 800
million a year. So,
yeah, yeah, that's fantastic. Yeah, your shop's busy
Um a huge pet peeve of mine is leaving federal dollars
on the table because another state will just take them
So um you do a great job, Kathy. Thank you. Thank you
Uh Director Peyton. Do you have a motion madam chair
I move, we authorized the executive administrator to
execute contracts as approved and directed by the Federal
Emergency Management Agency in a total amount not to
exceed 65 million for sub grants for the fiscal year
2021 flood mitigation assistance grant program upon
notification of award is there a second. All those
in favor say
thank you,
Ashley. Item number nine, please, chairwoman. Item
number nine is considered the appointment of eight
members to the Water Conservation Advisory Council
and John Sutton is here to present to the board on
this item today. Uh Good morning chairwoman pop director
Stephanie, Director Peyton for the record. I'm John
Sutton with the executive administrator staff. This
item is to fill six expired in two vacant positions
on the water conservation Advisory council. Uh councils
comprised of 23 volunteers representing different interest
groups and provides expertise in water conservation
to the Texas legislature, Texas Water Development Board
Texas Commission on environmental quality, as well
as to other political subdivisions in the public. Two
of the main responsibilities of the council include
developing water conservation, best management practices
and a legislative report every two years that provides
an overview of conservation in Texas with recommendations
to further conservation in the state to fill the vacancies
Staff sought no uh nominations through correspondence
with interest groups, professional organizations, regional
water planning groups and notice on the council's website
Save Texas water. 11 nominations were received. The
executive administrator recommends the following appointments
to the advisory council with terms expiring August
31st, 2029 Troy Hill Environmental Protection Agency
to represent federal agencies, Karen Goose San Antonio
Water System to continue to represent municipalities
Donna, how capital area, suburban ex suburban exchange
to continue to represent mu Municipal utility districts
and with terms expiring August 31st 2027 Whitney Milberger
North Fort Bend, uh Water authority to represent landscape
irrigation and horticulture, Stacy Pandy Lower Colorado
River Authority to represent river authorities as well
as several state agencies are also represented on the
council and designate their own representatives um
for, for this round. Uh The um excuse me that for the
Texas Commission on Environmental Quality uh has designated
Leslie Patterson, uh the Texas Department of Agricultural
uh Doctor David Villarreal and for Texas Water Development
Board. Uh Sam Hermit, be glad to answer any questions
Thanks, John, questions, comments. Thank you, John
Um First of all, thanks for working to get all of the
nominations. And I just wanted to say thank you to
all of the volunteers for providing their service.
Conservation is important. And so thank you for your
service.
Yes. No, II I would say the exact same thing. Thank
you um to, to every to all the nominees for um for
their willingness to serve on the council and conservation
makes up roughly a third of the state water plan. So
it's a, it's a massive uh massive impact. Yep. Um No
we, we depend a lot on our volunteer army. Um You know
these are people professionals that have jobs and families
and they're stepping up to, to ensure that the state
of Texas has the water it needs. So we're very appreciative
and with that director, Stephanie, do you have a motion
Yes, ma'am madam chair and we we approve the appointment
of eight members to the Water Conservation Advisory
Council. As recommended by our executive administrator
Is there a second? All those in favor say I unless
you can. Thank you, John Ashley. Item number 10, please
Chairwoman. Item number 10 is consider approving by
resolution a request from the chat Water Supply Corporation
for $3 million in financing from the Texas Water Development
Fund for planning design and construction of a water
system improvements project. And Tom Barnett is here
to present to the board on this item today. Hey, good
morning chairman P director Peyton, Director Stepney
uh for the record. I'm Tom Barnett of the executive
administrator. Staff Chat Water Supply Corporation
provides water service to approximately 725 residents
across a large rural service area in southern Hill
County, south of the metroplex. The corporation's existing
water sources include one groundwater well in the Trinity
aquifer and treated surface water purchased from Aquila
Water Supply district with these supplies, they are
unable to meet the minimum supply capacity requirement
of 0.6 gallons per minute per connection. Uh That is
required by the Texas Commission on environmental quality
Additional water supplies needed for the corporation
to adequately serve its existing customers and to be
positioned to take on new customers in the future.
The corporation's proposed project includes drilling
a new well in the Trinity, Trinity aquifer, a new chlorine
disinfection system to treat the new raw, raw groundwater
supply, a new 10,000 gallon ground storage tank and
a new pump station and piping to connect the new supply
to the corporation's existing distribution system.
The executive administrator recommends approval approval
of this item and that includes my presentation. I'm
happy to answer any questions next time, questions
comments. Um Hi Tom. Yeah. So certainly this project
is important because they have some compliance issues
and we want it where we can be of assistance in helping
them provide um safe water for their, for their residents
is really important. Um Can you just talk about a little
bit about the, the financials and the uh the rate increases
that are, that have taken place and that are needed
Sure. Um They have had some, the corporation has implemented
um $30 in rate increases earlier this year. Um And
we, we project, they'll need another small additional
rate increase of about $6 a month to meet our add additional
bonds test. Um So that is, that does have a significant
impact on customers. Um However, this project we think
will put the corporation in a better position going
forward. Um They've, they've added 42 connections since
2019. Um They project and they expect to add 70 more
new connections once this new well is uh completed
and online. Um And having a second well, will also
help them with flexibility and their maintenance and
operations. Give them better resiliency. Um They'll
still have the surface, the contract with Aquila for
the surface water, uh which costs them money, but they
might, they won't have to use it as much if they have
more self supplied groundwater. Um So in the big picture
um the project should put the corporation in a, in
a better financial position in the long term. And this
financing the, I guess the way we have it laid out
will result in a quite a bit of savings for them. Um
I was just, it just kind of, um, I was high, it
was high. This one was highlighted for me because they're
two C but they're kind of at the edge of two C
like a 49 on our, our risk evaluation. But you're sad
I mean, you've looked at it and we're comfortable with
um, them being able to repay the debt. Uh, we are and
the corporation has an existing loan they're paying
back. They, um, they got funding from us through the
rural water assistance fund, uh, back in the around
2009. Um, and they've completed that project and they're
they're paying off that loan. Thank you. No more questions
Payton. Um Yeah, just a couple of questions when you
when you say they're, they're projecting to add 70
new customers and you're talking about the small $6
rate increase, is that $6 rate increase? Assuming they
don't add those 70 or is that assuming they do add
And then there's the rate increase on that, it's projecting
no, no change. So new customers coming online will
help um alleviate pro reduce that needed rate increase
Ok. Ok, good to know. Um And then, so this is this
is going through the defund. Uh Was that the best place
for them? Was it just a timing thing they needed to
get this done? Why defund versus some of our other
programs that may have afforded a cheaper cost of capital
I think it was a timing issue. Um That as you know
the SRFS are so competitive and um oversubscribed that
um
there's, there's not enough of those dollars to go
around and they, they wanted to move forward due to
the many issues that we're facing right now, there's
assurance of, of getting defund dollars, you know,
um quickly when you need them. That's, that's certainly
the case. Um ok, great. That, that answers my questions
Thanks Tom. Ok. Yeah, that's great. Yeah, Defund is
really flexible when you really need to get a project
done fast. And I mean, as you know, our SRFS are eight
times oversubscribed right now. The the need for those
dollars is extraordinary. So I'm glad we have a program
that is as flexible and is not easy. None of our programs
are easy but um more accessible to um smaller communities
that can get these projects done faster. And you know
this is a public health issue. So I'm glad that we're
able to step in with defund and they're putting in
half a million dollars of, of their, the WS CS capital
here. So they see the need for this project immediately
So, and with that director Peyton is there motion madam
chair I move, we adopt the proposed resolution from
the Chat Water Supply Corporation for $3 million in
financing from the Texas Water Development Fund for
planning design and construction of a water system
improvements project. As recommended by our executive
administrator. Is there a second a second? All those
in favor. Say hi, hi, the motion passes. Thank you
Thanks Tom. Item number 11. Ashley, chairwoman item
number 11 is considered amending by resolution. The
previously adopted Texas Water Development Board resolution
number 20-064 to transfer a multiyear commitment from
the North Texas Municipal Water District's Clean Water
State revolving fund, Rowlett Creek Regional wastewater
treatment plant project to the North Texas Municipal
Water District's Clean Water State Revolving fund,
Sister Grove Regional water resource recovery facility
project. Ashley, before we start, Joe, um I've been
told by my chief of staff that I got some of my
stats wrong and I need to clarify. Um The statewide
flood plan has a estimated costs that are north of
$50 billion not $40 billion. Um I think it, yeah, Patrick
was irritated with me for getting my, my numbers, my
numbers wrong. So $50 billion for the statewide flood
plan. That chippy, I know, I know it's like gotta fix
this and with that. Go ahead. All right. Thank you
Uh Good morning. My name is Joe Cohen of the executive
administrator, staff, North Texas municipal water district's
Upper East Fork Interceptor system service area treats
wastewater from 12 cities in north central Tex Texas
providing service to more than 750,000 residents and
is expected to grow to over 1.2 million by 2040. In
2020. TW DB approved a commitment to the district for
the construction of the Sister Grove regional water
resource recovery facility and a multiyear commitment
for the expansion of the Rale Creek uh regional wastewater
treatment plant in order to meet these projected needs
Construction is underway of the um at the Sister Grove
facility to date. TW DB has approved over $407 million
in contracts for this project. However, the district
has uh experienced construction cost increases due
to unanticipated site conditions and inflation. The
district will need additional funding to complete this
project. At the same time, the district has experienced
delays in the planning and design phases of the Rale
Creek project and does not expect these issues to be
resolved before their commitments expire. The district
is requesting to transfer the Rale Creek Multiyear
commitments to the Sister Grove project. This amendment
will provide additional funds needed for the construction
of the Sister grove project allow the district to better
utilize their commitments and to help the district
meet their service needs. The executive administrator
recommends approval of this request. This concludes
my presentation and I'm available for any questions
show questions comments. Yeah. Do you mind just explaining
that the, the whole no equivalency and non equivalency
piece. Yeah. So the equivalency are um the federal
dollars of the SRF program and the, so there's a few
more uh requirements associated with that uh such as
the uh um DB E requirements uh for that uh program
Uh where and you get a little bit better of a subsidy
rate for, for equivalency. Ok. Um Nothing else, Doctor
Payton. Ok. Yeah. So no, no change in our um you know
loan backing, guarantee any of that from a financial
security standpoint. Everything. That's correct. It's
all the same there. Great. No happy to provide the
flexibility. I think it's a smart move for them. Director
step. Do you have a motion? Yes, madam chair, I move
Um We um madam chair, I move, we adopt the proposed
resolution to amend, previously adopted TW DB resolution
number 20-064 to transfer a multiyear commitment for
North Texas municipal Water District's Clean Water
State revolving fund, Rollick Creek Regional Water
treatment plant project number 73881 to the North Texas
municipal water districts Clean Water State revolving
fund, Sister Grove Regional Water Resource recovery
Facility project number 73855. As recommended by our
executive administrator.
Is there a second a second? All those in favor say
I thank you. The motion passes. I got the rules one
earlier. You get that one. You don't want to mess up
a number or something, you know, and I know they have
to redo it. Oh, yes. Tragic. Um Item number 12, Ashley
uh chairwoman item number 12 is considered approving
by resolution a request from the city of Menard for
financing from the drinking water state revolving fund
for planning design and construction of a water treatment
and water system improvements project. And Jessie Milanovich
is here to present to the board on this item today
Good morning, chairwoman pop director Peyton and and
director Stephanie for the record. My name is Jesse
Milanovich of the executive administrator, staff, the
city of Menard uh provides water service to a population
of approximately 1348 with 790 service connections
Um In 2009, the city was notified by the Texas Commission
on environmental quality that its groundwater supply
is classified as a, as groundwater under the direct
influence of surface water and the city was then required
to meet surface water treatment standards for its water
source. The city uh received previous commitments of
funds from the economically distressed areas program
and drinking water state revolving fund for uh some
water system improvements but the city has not yet
completed all all of its necessary improvements. The
proposed work is a continuation of those efforts. Uh
The city pro proposes to construct water system improvements
um including a new filtration system, filtration, building
chemical feed system modifications, improvements at
its well field, uh rehabilitation of an exi e existing
elevated storage tank, uh facility, piping modifications
and related site work. Uh The city qualifies for principal
forgiveness as a disadvantaged community. The city
also qualifies for 0% financing as a disadvantaged
small rural community. The executive administrator
recommends approval of this request. Uh This concludes
my presentation and I am available if you have any
questions. Thanks, Jesse, questions, comments. Uh I
think it's great that we can provide financing for
this because we, we're, we want to help the city get
in the correct alignment with TCQS requirements um
and basically provide the correct treatment for their
water supply for their population and it's, you know
quite a bit, what is it? Uh four or five or a
little over 4 million $5 million and either 0% of forgiveness
It's pretty great. So, thank you. Yeah, it's a fantastic
package for the uh for the community. Can you tell
me a little bit about the um the history of the, the
other a uh funds uh that they were given and, and kind
of the timeline. Yeah, but back in the 2011, um we
um they were awarded uh ed A funding uh for planning
uh, some planning phase work. Um, they did a facil
uh, pretty sure they did a facility engineering, uh
plan, uh, for improvements at that time. They were
looking, um, to, uh, maybe drill another well, um,
in the hickory aquifer, but as we know, the hickory
aquifer might get radionuclides, you probably will
get radionuclides in the water. Um, and they determined
um, as they went through, uh, even the drinking water
um funding uh back in 2012, uh which was more design
um and some construction uh phase funds. Um They were
still investigating uh adding a well. Um But then they
just decided that wasn't gonna work out due to cost
of radionuclide treatment uh would have to be put in
and it just um economically wasn't going to be feasible
for that little community or small community to, to
handle that at that time.
Ok. So the, the commitments where those expended where
those pulled down and expended and, and this is a continuation
of, of, of work and projects that they just outrun
their, the capital allocated or uh yes, they, they
they do have a, a little bit of funds remaining in
the uh the, the account for um from the previous uh
drinking water funding um which could be uh put to
use towards this effort. Um They did some improvements
with the, the funds with their meters. Um am r uh work
um basically like water conservation type measures
Um because uh it, it seemed to make sense to, to implement
some water conservation measures to then mitigate,
having to drill another well and, and it's kind of
all ties together. Ok. Ok, great, thanks. Thanks. Yeah
thanks, Jesse. I think um I'm pretty cheesy sometimes
I think it's time to land this plane and get this project
over the finish line. Um We never like to see stranded
projects. So, um I, I applaud the additional funds
to to get it, get it done. Um And they got a
great deal. So I know Menard is probably pretty thrilled
with the financial package they got. So thank you.
Mhm. Dr Peyton, is there a motion madam chair? I move
We