2004 02 Nhcrwa Speaker Notes

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2004 02 Nhcrwa Speaker Notes

  1. 1. North Harris County Regional Water Authority An Overview presented to Southeast Texas Chapter of the TAWWA February Meeting February 19, 2004
  2. 2. Water-Levels Declining Harris County (1977-1995) Evangeline Aquifer • 3.3 million people • 1.1 million ac-ft annual water use • 656,000 ac-ft municipal use • 373,000 ac-ft mun. gw use • 283,000 ac-ft mun. sw use •Population to double in 30 yrs
  3. 3. District Regulatory Plan • Set specific timetables 1999 for GW reduction Adopted April, 1999 Amended September, 2001 • Required submission of GALV R R IS BU D E S Groundwater Reduction T O A N H X E Plan (GRP) A T T COA RIC S T ST IS A L SU BS I D E N C E D • Disincentive fee for failure to submit GRP Harris-Galveston Coastal Subsidence District as required ($3.00 1660 West Bay Area Blvd. Friendswood, Tx. 77546-2640 per 1,000 gallons of (281) 486-1105 water pumped). www.subsidence.org
  4. 4. State Response to the Problem • (HB 2965, 76th legislature) Creation subject to 1/15/2000 confirmation election (9:1) • To be run by elected 5-member Board of Directors • Major powers and duties; – Conserve/protect groundwater; assess pumping fees & other user fees – Acquire “wholesale” surface water & treat, store, distribute & resell to MUDs, etc. for sale to retail end users – Enter into contracts; participate in water planning/water conservation – Authorize financing, engineering, construction, operations of wholesale surface water supply system – Authority to issue revenue bonds; no taxing authority, etc.
  5. 5. Legislative Amendments (HB 1110) • Make Authority boundaries coincide with County Voting Precinct boundaries • Make Authority boundaries coincide with MUD boundaries • Clarify rights of eminent domain • Better define process for bringing in new MUDs from outside Authority boundaries • Eliminate exemption for wells pumping 10M gal. Or less • Monitor other regional water supply and water issue legislation in best interests of Authority customers
  6. 6. MISSION STATEMENT… To find and assure a long-term supply of quality drinking water at the lowest responsible cost. • Promote water conservation. • Identify/provide cost-effective alternative water sources. • Maintain regulatory compliance. • Encourage intergovernmental cooperation.
  7. 7. Some Basic Statistics • 337square miles • 400,000 residents • 160 Water Districts • 70 MGD water demand • 1,612 gw wells
  8. 8. What process did the Authority follow to obtain its water supply? River Authorities & Water Rights Remote Groundwater Resources Cost Effective & Fair City of Houston
  9. 9. CoH Water Contract Components • Untreated Water Capacity • Treated Water Capacity • Transmission Lines
  10. 10. City of Houston Water Supply Contract Principles/Terms: Raw Water • Pay pro-rata share of remaining debt service of Houston raw water facilities/online 2002. • Pay for raw water when treated water is delivered. • Pay for raw water facilities O&M when treated water is delivered. • Future raw water facilities – based on pro-rata share and payment due at time of reservation or when contract commences.
  11. 11. City of Houston Water Supply Contract Principles/Terms: Treatment Facilities • Houston responsible for operation and maintenance of facility. • Pay for pro-rata share of capacity needed. • Capital payment can be deferred until time of water delivery by making interest only payments. • Pay pro-rata share of O&M at time of treated water delivery.
  12. 12. City of Houston Water Supply Contract Principles/Terms: Transmission Lines • Houston owns, operates and maintains transmission lines within corporate limits, and some in unincorporated area. • Pay pro-rata share of capacity needed. • Capital payment can be deferred until delivery time by making interest only payments. • Pay pro-rata share of O&M at time of treated water delivery.
  13. 13. Groundwater Reduction Plan • Prepared to meet HGCSD mandates: - 30% conversion by January 2010 - 70% conversion by January 2020 - 80% conversion by January 2030 • Authority prepared and submitted GRP to HGCSD • Authority’s GRP certified by HGCSD – 6/11/03
  14. 14. Conversion To Surface Water
  15. 15. Q. WHAT IS THE AUTHORITY’S GRP? A. It outlines how the Authority will comply with HGCSD requirements and defines: • The anticipated water needs through 2030 • How much surface water (SW) is needed to comply • Identifies the source of this SW • Identifies the system to deliver/distribute SW • Estimates the cost of the required infrastructure • Defines the mechanisms to fund the infrastructure • Defines the GRP implementation mechanism.
  16. 16. COMPLIANCE PHILOSOPHY • Impractical to deliver SW to all districts. • Address known areas of water quality and quantity issues. • Serve a core, compact area, some 47 districts, in 2010. • Phase in additional districts in 2020 and 2030 • Build a technically sound, practical and economical system of infrastructure to meet HGCSD requirements. • Implement a fair pricing policy to pay for the system.
  17. 17. NHCRWA system to be built in phases to allow compliance with HGCSD mandates and will consist of: • Approximately 38 miles of transmission line • Approximately 126 miles of distribution line • 3 Pump Stations • 4 Regional Water Plants • 32 Regional Wells
  18. 18. The estimated cost (in million dollars) of the system to meet each target year is: 2010 2020 2030 Transmission Lines 74.719 145.622 0 Distribution Lines 96.050 211.467 26.512 Pump Stations 8.712 16.795 3.811 Regional Water Plants 11.709 30.432 5.220 Regional Wells 11.330 29.515 4.110 Total 202.520 433.831 39.653
  19. 19. Q. GRP IS CERTIFIED… WHERE DO WE GO FROM HERE? A. HGCSD regulations require construction on infrastructure to begin by January 2005, however, some districts have water quality/quantity problems, declining well levels, aging district infrastructure and growth issues to be solved before 2010. THE SOLUTION… The Groundwater Transfer Plan
  20. 20. Implement the Groundwater Transfer Program...
  21. 21. Q. What is the Groundwater Transfer Program (GTP)… • Districts with excess capacity sell water to Authority. • Districts that need water buy water from NHCRWA. • Authority makes up supply deficits • System to convey the water consists of components of the Authority’s proposed 2010 Distribution System
  22. 22. BENEFITS OF THE GTP: • Addresses immediate and short-term needs. • Maximizes investment in existing district infrastructure. • Minimizes investment in additional district infrastructure which will have less than optimal usage. • Minimizes the amount of debt the Authority would have to absorb under its current Pricing Policy. • Minimizes number of new wells. • Primary system components consistent with ultimate Authority system.
  23. 23. Potential GTP Participants: Approximately… • 11 Seller Districts • 15 Buyer Districts • 3 Districts that are seeking backup supply
  24. 24. GTP Highlights: • 13 projects • Projects involve construction of lines, wells, pump station(s) and water plant(s) • Schedule calls for projects to go in service at various times from 2004 through the end of 2005 • Approximately 53% of the ultimate 2010 planned water distribution system will be constructed under the GTP.
  25. 25. GTP Highlights: • Estimated cost of GTP including engineering, construction and real estate acquisition is approximately $85 million • Funding will come from Authority’s 2003 bond sale.
  26. 26. How Will The System Be Paid For? Interim • $110 million line of credit • Pumpage fees Long Term • Sale of bonds (initial sale $160 million) • Pumpage fees and sale of water
  27. 27. Bond Validation Suit Obtained Judgment Validating: • Creation and Boundaries • All statutory purposes • Current Rate Order, including Import Fee • City of Houston Contract • Pledge of Revenues to Bonds • Issuance of Bonds • Proposed Expenditures of Funds • Legislative Solution to Annexation Issue.
  28. 28. NHCRWA INITIAL BOND SALE • $124,685,000 Senior Lien Revenue Bonds, Series 2003 • Marketed to the public on 9-17-03 • Delivery date of funds 10-16-03 • Proceeds $127,971,159.15 • Rate /Yield All cost of issuance included: 5.0575% Federal Arbitrage Yield: 4.9327%
  29. 29. NHCRWA INITIAL BOND SALE • Issued to finance: ~ Capital payment to City of Houston ~ Design and construction of Phase I water transmission network ~ Capitalized interest and debt reserve surety bond, and ~ Cost of issuance of Series 2003 bonds.
  30. 30. NHCRWA 2004-2005 CAPITAL IMPROVEMENT PROGRAM • NHCRWA’S first CIP program • Two year plan • Includes all projects to be undertaken in 2004 and 2005. • Major components include: ~ Engineering Design and Management ~ Real Estate Acquisition ~ Construction and Construction Management ~ Construction Materials Testing, etc.
  31. 31. NHCRWA 3648 FM 1960 West, Suite 110 Houston, TX 77068 281-440-3924 Visit online: www.nhcrwa.com

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