Presentation that was shown during the West Harris County Regional Water Authority Town Hall Meeting on November 10, 2014

1. West Harris County Regional Water Authority
TOWN HALL MEETING
NOVEMBER 10, 2014
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2. TONIGHT’S TOPICS
• Status of Conversion
• Capital Projects
• Other Accomplishments
• 2025 System
• Finances
• Water Conservation
• Q&A
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3. STATUS OF CONVERSION
• Surface Water to 54 Water Plants
• 40 Districts Converted
• HCMUD 172 Water Plant #2 added in 2014
• 36.5 percent converted in 2013
• 39.0 percent converted to date
• 2015 – Two more water plants will be added
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4. ONGOING DESIGN PROJECTS
• CONTRACT 49
* Design 95% complete
* Construct in 2015
* Serves Mayde Creek MUD & Ricewood MUD
• CONTRACTS 33 & 34
* Acquiring easements
* Design Contract 34 90% complete
* Serves HCMUD 371
* Design Contract 33 starting now
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5. ONGOING DESIGN PROJECTS (Cont.)
• CONTRACT 22D
* Design starting now
* Construct mid-2015-2016
* Serves HCMUD 433
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6. NEXT CIP PROJECTS
• Contracts 35, 36
Design starts January 2015
Construction starts late 2015
Connects 3 water plants in HC 165
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7. CAPITAL PROJECTS
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8. OTHER ACCOMPLISHMENTS
• REFUNDING BONDS
2005 -- $49 million for PV savings
of $6.2M or 12.51%
Redeeming the remainder
of 2005 bonds in Dec.
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9. ALTERNATIVE WATER CREDIT AGREEMENTS
• Incentivizing effluent reuse projects,
non-potable surface water, and
rainwater/stormwater capture projects
• Credits for metered alternate water equal to
½ current GRP rate – now $1.90/1000 gals
• Allow potentially full reimbursement of
capital cost
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10. ALTERNATIVE WATER CREDIT AGREEMENTS
• Negotiating/Executed Contracts for:
6 effluent reuse projects to serve golf
courses and green space
2 non-potable surface water project
4 rainwater/stormwater capture projects
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11. CONTRACT WATER
AGREEMENTS
• WHCRWA has contracted
with MUDs to address water
quality/quantity issues
• Several new requests this year
• Evaluating new water
commitment policy
• Currently over 40% of water
supply is committed
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12. DEMAND RESPONSE PROGRAM
PARTICIPATION
• Sites Acquired
• WHCRWA switches to emergency
power during peak demands, helps
stabilize power grid
• Offsets power costs
for Authority
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13. AUTOMATED METER READING (AMR)
• For groundwater wells in Authority
• 270 wells in aggregate Authority permit
• Data reported lags by 6 weeks
• Conversion requirements increasing
• WHCRWA needs to track water usage
more closely
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14. AMR PILOT PROGRAM
• WHCRWA trial of various manufacturer’s
technology
• Paid by WHCRWA
• Volunteer program
• Work though pitfalls
• Evaluate effectiveness of system-wide
implementation
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15. BENEFITS OF AMR SYSTEM
• Independent system used to verify pumpage
• Protects both parties
• Reduces human error
• Saves time on pumpage reconciliations
• Reduction in administrative requirements
over time
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16. HARRIS GALVESTON SUBSIDENCE DISTRICT
• Submitted updated Groundwater
Reduction Plan (GRP)
• New conversion milestones
• Changes from 1999 Plan
• Convert to 60% by 2025
• Convert to 80% by 2035
• Current HGSD disincentive fee –
$7.00/1000 gallons
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17. PROJECTS FOR THE 2025 SYSTEM
• Luce Bayou
• CoH Treatment Plant
Expansion
• Second Source Project
• Repump Station
• Central Pump Station
• CIP Distribution Lines
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18. ADDITIONAL RAW WATER SUPPLY
• Luce Bayou Interbasin Transfer Project
brings raw water from Trinity River to
Lake Houston
• Design for River Intake
Pump Station underway
• Canal design project to
start in 2015
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19. LUCE BAYOU
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20. LUCE BAYOU FACTS
• Transfer of Trinity River Water
• Capacity of 400 MGD
• Estimated Cost $300 Million
• Participants include CoH, WHCRWA,
NHCRWA, NFBWA and CHCRWA
• Start Design in 2014
• Construction complete by June 30, 2019
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21. NE WATER PURIFICATION PLANT EXPANSION
EXPANSION TO THE PLANT TENTATIVE SCHEDULE
• 320 MGD expansion
• Consisting of four
80MGD Modules
• New Intake Structure
• 2015 – Permitting
Pilot Studies
• 2016 – Begin Design
• 2017 – Begin
Construction
• 2021 – First Module
(80MGD) complete
• 2025 – Remaining
Modules complete
(240MGD)
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22. NEWPP NEGOTIATIONS
• Negotiating a contract for Expansion
of the CoH NEWPP at Lake
Houston from 80MGD to 400MGD
• Estimated cost of Expansion $1.27B
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23. SECOND SOURCE PROJECTS MAP
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24. SECOND SOURCE PROJECT WEBSITE
• Website now live – www.secondsourceproject.com
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25. SECOND SOURCE TRANSMISSION LINES
• Joint WHCRWA/NFBWA
• Projected 39 miles of 96” pipe
• Includes 2 Pump Stations
• Obtained Environmental Permits
• Acquiring additional easements,
about 900 total needed
• Estimated cost $600M
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26. 2025 CIP DISTRIBUTION LINES
• Approximately 75 new mi, 54 mi existing
• Evaluating alternate routes
• Acquiring easements; 90 next year
• Designing and constructing sections
• Estimated cost $300M
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27. There’s a lot left to pay for!
Future Capital Improvement Plan
Other
Bellaire Pump Station
NE Water Purification Plant Exp
Central Pump Station
Repump Station
CenterPoint Line
Segments 2, 4, 5
NEWPP Meter Station
Second Source Trans Main
Joint Facilities
Distribution System
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28. PROJECTED FUTURE
BOND REQUIREMENTS
2015 $ 78,580,000
2016 46,760,000
2017 308,860,000
2018 234,080,000
2019 195,455,000
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29. INDEPENDENT RATE ANALYST…
• Evaluated finances
• Confirmed approach and
financial policy of Board
• Incremental increases in rates to
support future project costs
• Avoids dramatic rate increases
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30. WHERE ARE RATES GOING?
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31. WHCRWA ESTIMATED RATES
Ground Water Surface Water
GRP Rate Rate
Current $1.90 $2.30
2015 2.05 2.45
2016 2.25 2.65
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32. SWIFT FUNDING
TEXASWATER DEVELOPMENT BOARD
• Low interest loans available in 2015
• Rules regarding funds adopted in November
• WHCRWA meeting with TWDB
representatives to pursue available funding
• Already received $42M in funding for the
Second Source Line
• Financing from TWDB will help rates
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32

33. FINANCES
• Bond Refunding Early Calls
• OM Surface Water Cost
• Budget
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34. BOND REFUNDING IN AUGUST
• Refunded $49.620 M of bonds with
an average coupon of 5.00%
• Issued only $46.03M in Refunding
Bonds at 3.13%
• Present Value Savings was 12.51%
• Present Value Savings of $6.2M
• Gross savings of $7.66 M
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35. BOND CALL IN DECEMBER
• Board to use $10M in cash on hand to
pay off 2005 bonds in December 2014
• Interest savings of $5.149 M
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36. NEW BOND SALE EARLY 2015
• Projected to be approximately $79M
• Capital contribution correspondence
going to MUDs in November
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37. OM SURFACE WATER COSTS
CITY OF HOUSTON FY
ITEM 2010 2011 2012 2013 2014 2015
Treated
Water Costs
0.4341 0.3754 0.4088 0.4882 0.4544 0.4694
Untreated
Water Costs
0.1170 0.1109 0.1130 0.1343 0.1291 0.1398
Major
Rehab
0.1468 0.0158 0.0375 0.1667 0.4112 0.2949
TotalWater
Cost per
1000 Gal.
0.6979 0.5021 0.5594 0.7891 0.9946 0.9390
Figures for FY 2010 through FY 2011 are based on true-up costs. FY 2012 from
draft true-up not finalized. FY 2013 and FY 2014 are based on City of Houston
estimated OM cost prior to true-up. FY 2015 current CoH Budget rates.
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38. 2014 BUDGET STATUS
(through September)
YTD BUDGET YTD ACTUAL
Revenues $31,774,148 $30,773,866
Expenditures
Operating Fund $ 8,611,266 $ 9,674,022
Bond Debt Service
Fund Transfer
(Excluding NFBWA Share)
$18,813,976 $15,058,918
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39. DRAFT 2015 BUDGET
Revenues $46,241,395
Expenditures
Operating Fund $11,447,647
Bond Debt Service
Fund Transfer
(Excluding NFBWA Share)
$20,109,572
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40. WATER CONSERVATION EDUCATION
• Annual resident newsletter
• Homeowner brochures and
billing inserts
• Participating Sponsor of
major water conservation
education outreach effort –
Save Water Texas Coalition –
• Radio and Television messages;
comprehensive website
www.SaveWaterTexas.org
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41. MOBILE TEACHING LAB
COLLABORATIVE EFFORT WITH KATY ISD CURRICULUM SPECIALISTS
SOCIAL STUDIES CURRICULUM (GRADES 4-7)
FEATURES INTERACTIVE STORMWATER POLLUTION PANELS
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42. Mobile Teaching Lab
Interactive Display
Student “novel” and
Teacher Guide
Classroom support
activities about causes
and prevention
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43. SUMMARY
Status of Conversion
Current System and
Operations
2025 System
Finances
Water Conservation
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WEST HARRIS COUNTY REGIONAL WATER AUTHORITY
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44. Questions?
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