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2004 02 Nhcrwa Speaker Notes
1. North Harris County
Regional Water Authority
An Overview
presented to
Southeast Texas Chapter of the TAWWA
February Meeting
February 19, 2004
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. 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. 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.
6. 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
7. 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.
8. Some Basic Statistics
• 337square miles
• 400,000 residents
• 160 Water Districts
• 70 MGD water
demand
• 1,612 gw wells
9. What process did the Authority follow
to obtain its water supply?
River Authorities & Water Rights Remote Groundwater
Resources
Cost Effective & Fair
City of Houston
10. CoH Water Contract Components
• Untreated Water Capacity
• Treated Water Capacity
• Transmission Lines
11. 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.
12. 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.
13. 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.
14. 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
16. 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.
17. 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.
18. 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
19. 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
20. 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
22. 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
23. 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.
25. 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.
26. 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.
27. 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
28. 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.
29. 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%
30. 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.
31. 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.
32.
33. NHCRWA
3648 FM 1960 West, Suite 110
Houston, TX 77068
281-440-3924
Visit online: www.nhcrwa.com
