West Harris County Regional Water Authority

TOWN HALL MEETING

NOVEMBER 10, 2014

1

• Status of Conversion

• Capital Projects

• Other Accomplishments

• 2025 System

• Finances

• Water Conservation

• Q&A

TONIGHT’S TOPICS

2

• 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

STATUS OF CONVERSION

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• 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

ONGOING DESIGN PROJECTS

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• CONTRACT 22D

* Design starting now

* Construct mid-2015-2016

* Serves HCMUD 433

ONGOING DESIGN PROJECTS (Cont.)

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• Contracts 35, 36

� Design starts January 2015

� Construction starts late 2015

� Connects 3 water plants in HC 165

NEXT CIP PROJECTS

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CAPITAL PROJECTS

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• REFUNDING BONDS� 2005 -- $49 million for PV savings

of $6.2M or 12.51%

� Redeeming the remainder

of 2005 bonds in Dec.

OTHER ACCOMPLISHMENTS

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• 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

ALTERNATIVE WATER CREDIT AGREEMENTS

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• 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

ALTERNATIVE WATER CREDIT AGREEMENTS

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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

11

• Sites Acquired

• WHCRWA switches to emergency

power during peak demands, helps

stabilize power grid

• Offsets power costs

for Authority

DEMAND RESPONSE PROGRAM

PARTICIPATION

12

• 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

AUTOMATED METER READING (AMR)

13

• WHCRWA trial of various manufacturer’s

technology

• Paid by WHCRWA

• Volunteer program

• Work though pitfalls

• Evaluate effectiveness of system-wide

implementation

AMR PILOT PROGRAM

14

• Independent system used to verify pumpage

• Protects both parties

• Reduces human error

• Saves time on pumpage reconciliations

• Reduction in administrative requirements

over time

BENEFITS OF AMR SYSTEM

15

• 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

HARRIS GALVESTON SUBSIDENCE DISTRICT

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• Luce Bayou

• CoH Treatment Plant

Expansion

• Second Source Project

• Repump Station

• Central Pump Station

• CIP Distribution Lines

PROJECTS FOR THE 2025 SYSTEM

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• 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

ADDITIONAL RAW WATER SUPPLY

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LUCE BAYOU

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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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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)21

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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SECOND SOURCE PROJECTS MAP

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SECOND SOURCE PROJECT WEBSITE

• Website now live – www.secondsourceproject.com

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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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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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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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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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• Evaluated finances

• Confirmed approach and

financial policy of Board

• Incremental increases in rates to

support future project costs

• Avoids dramatic rate increases

INDEPENDENT RATE ANALYST…

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WHERE ARE RATES GOING?

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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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SWIFT FUNDING

TEXAS WATER 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

• Bond Refunding & Early Calls

• O&M Surface Water Cost

• Budget

FINANCES

33

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

34

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

35

NEW BOND SALE EARLY 2015

• Projected to be approximately $79M

• Capital contribution correspondence

going to MUDs in November

36

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

Total Water

Cost per

1000 Gal.

0.6979 0.5021 0.5594 0.7891 0.9946 0.9390

O&M SURFACE WATER COSTSCITY OF HOUSTON FY

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 O&M cost prior to true-up. FY 2015 current CoH Budget rates.37

37

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

2014 BUDGET STATUS(through September)

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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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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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COLLABORATIVE EFFORT WITH KATY ISD CURRICULUM SPECIALISTS

SOCIAL STUDIES CURRICULUM (GRADES 4-7)

FEATURES INTERACTIVE STORMWATER POLLUTION PANELS

MOBILE TEACHING LAB

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� Mobile Teaching Lab

� Interactive Display

� Student “novel” and

Teacher Guide

� Classroom support

activities about causes

and prevention

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SUMMARY

WEST HARRIS COUNTY REGIONAL WATER AUTHORITY

� Status of Conversion

� Current System and

Operations

� 2025 System

� Finances

� Water Conservation

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Questions?

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