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Council member trees. Council member Moore. Council member Wilson. Mayor scurrup. Mayor pro

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Tim Green. Council member Sutton. Mayor council member author has indicated that he's unable

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to attend tonight's meeting. There is a quorum to conduct. Thank you very much.

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So we'll move

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on to item number three, Portland Water Needs. So city council will discuss future water needs after

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your presentations from staff and other subject matter experts on water.

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The current water sources shorted short and long-term water needs and the need for alternative

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water sources for Portland.

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Excuse me, before we get started, I want to read kind of opening statement.

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So good evening, everyone.

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Tonight's workshop is one of the most important discussions we have as a city.

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water is just is not just a utility. It's the foundation of our homes, our

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businesses, and our community's future. Across the Corpus Christi region we

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are facing a water crisis that demands attention and action. Here in Portland we

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currently rely on the City of Corpus Christi and the San Patricia Municipal Water

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District for our water supply. We do not have our own water and that

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That dependence puts our community at risk if supplies tighten or new projects are delayed.

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For the past several years, we have made water a priority topic in our strategic planning

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sessions.

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We've always known that this day could come.

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The day when discussion alone would no longer be enough.

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I speak for the entire City Council when I say that we value our regional partnerships

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and appreciate the work being done to secure new water sources for the entire

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coastal bend. But time is no longer on our side. It is now necessary for Portland

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to begin the process toward water independence to ensure that our

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residents and businesses have a reliable sustainable water supply for the future.

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Our city manager will lead us in tonight's discussion and I know the

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Council will have many questions and difficult decisions as we move forward.

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This workshop marks the beginning of a critical process for our city's long-term future.

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Time is of the essence.

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Every day we delay making securing water for Portland more difficult and more expensive.

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Our responsibility as your elected officials is to act now to protect the future of Portland

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and the people who call it home. Mr. Wright.

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Mayor, thank you.

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Tonight's meeting is really a high level discussion,

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an overview of our water situation here in Portland.

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We'll go over a kind of a presentation agenda in a minute.

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But what we want to do tonight is give the council a snapshot

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of our current conditions, our future needs,

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and also the various alternatives that are available to us as a community.

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We've got a long history of purchasing water from the San Francisco Municipal Water

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District.

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I think 1951, 1952 Brian, long time.

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But since that time, we've grown considerably.

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This chart shows how Portland's population has really taken off over the last 60 years

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or so.

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So we've grown, outgrown a lot of the cities here in the community, we've grown where

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other cities have not grown.

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This has been somewhat organic just because, you know, I think we've got a great city,

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we attract citizens, but the industry, industrial development around us also contributes to our

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growth.

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All in all though, it means that our growth requires that we secure water sources in the

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future.

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Brian's going to show you some really dramatic information about that matter here in just

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a few minutes.

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You know, this is not the first water shortage that we've faced, the water droughts are

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really cyclic, and we can expect droughts in the future, obviously.

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And what makes this cycle different, however, is that this reason, as a region, we haven't

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solve the water problem even after these many decades of risk from drought.

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So as a city we shouldn't continue to separate through these cycles when there are alternatives

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for us to look at and to study.

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As you know we've been working behind the scenes to evaluate a number of options for the city

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important. Our goal is to achieve long-term

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Resiliency with our community. Resiliency really begins with kind of understanding that we cannot depend on one single source of water. Resiliency means we need a diversified water source, and we need to find out what those sources are, and the most efficient, most effective ones, and pursue those as a community. To that end, we've recently executed an agreement with an Oasis River Authority

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to reserve 2,800 acre feet per year.

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It's about 2.5 million gallons a day of water

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from their Future Harbor Island project.

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The NRA is here tonight,

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and they've got a presentation for us as well.

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The council will ratify that agreement

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at our November 4th meeting.

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As you know, we've also engaged an law firm in Austin.

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The Vincent and Elkins firm is partnered by John Neurman.

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John was the former chairman of the TCEQ.

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We've been dealing with him directly.

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That law firm specializes in water procurement projects

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and water contracts, specifically P3 contracts.

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We're also actively seeking an engineering firm.

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We're out. We've got RFQs out. Those are due back in by the month. So I expect to have an engineering firm on on board by the first part of November at that point where you know, we're going to begin an earnest looking at the process of identifying securing additional water sources for Portland and moving forward with those.

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I don't expect any solutions tonight. What I would like to do is make sure that the council gets a full measure of information

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from these experts on what our conditions are and what the alternatives are to give you some background and framework as we move forward in this process.

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You know, we're taking positive steps towards a long-term drought-proof, resilient water supply for our citizens. That's what they demand. That's what we need to give them.

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As the mayor said, we want to make the right decisions here, but we are facing a critical shortage in time as of this.

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So we've got to get these things done sooner rather than later.

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With that, I want to move into our agenda for tonight.

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Introduction of guests, there's a couple of people I just want to introduce

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and acknowledge tonight, Ryan's course of the City of Corks Christie this year.

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Ryan, thanks for being here.

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Also, Lyle Larson just came in.

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Lyle was a former state representative, former San Antonio City Council member,

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former Bear County Commissioner and probably the water guru, the most informed person in Texas on water and we appreciate him being here working with us through these new processes.

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So with that, we're going to, here's the kind of line up we're going to talk about existing water use of conditions, projections for the City of Portland for a few minutes and I want to turn it over to John Michael.

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with Hanson Engineering and John I go back 30 years.

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John knows water better than anybody else in the county.

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And so he's going to give a presentation on all things water about San

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Churchill County. Then we'll move towards, we'll move with, to Brian Williams, the,

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with San Churchill and Mr. Water District, talk about current conditions and what the

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district's plans are going forward. We'll also have a report then from Noises of

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River Authority. John is here, John Chisholm, the new Deputy Executive

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Directors here, and we'll give that presentation for us. And then we have a

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report from Seven Seas who will be here to talk about kind of their business

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model and what they do as a company. And then we'll have an opportunity if time

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permits we have two hours for this so as I told the mayor if if this runs over you

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know we could delay the start of the council meeting if y'all are still

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engaged in conversation we can just delay that according to by law we can we need

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to start the meeting no sooner than 7 o'clock we can't start after 7 o'clock so

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with that so with that I want to turn it over John Michael let him give kind of an

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update on what's going on county John thank you for being here yeah thanks for

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I think most of you all know me.

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I'm John Michael with Hanson.

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Used to be day Smith engineering for many years.

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And we've been Hanson now for nine years.

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I was going to quit working four years ago

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and I'm still working, but I love what I'm doing.

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So there's not a lot of good things with getting old.

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You know, you can't grow hair anymore.

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You can't see, you got hearing aids.

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But you do gain institutional knowledge over time. And I've been practicing engineering here now for 44 years. I moved here in 1982, went to work for Jim Naysmith, and got immersed into the water business immediately, because Jim was very actively involved in all aspects of water, particularly here in Sampat County. He and his father for all practical purposes built the Sampat Municipal Water District. And so I got to work

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on those facilities, very early on in my career, you know, starting back in 1982.

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What I'm going to do is I'm going to take you through some history.

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Randy's heard this, Kathy's heard this, I know Brian's heard this, but I'm going to

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take you through kind of a history of progression over the last 40 years to show you how we got

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where we are, because I think it all makes sense at the end, because we have lots of options.

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You know, the good thing about being here is we do have options, it's a function of which

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trigger to you pull first. You know water supply planning is a it's a three-legged

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stool. It's pretty simple. Is it safe? Is it reliable? And is it affordable? And it's

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that affordability that is probably the hardest of the boxes to check off. Because you

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can make anything reliable and you can make anything safe. It's just a function of how

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much is it going to cost. So let's start back in 1982. This is my fourth drought, and

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they're no fun. It comes with a lot of anxiety. Mother Nature never tells you when the drought

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is going to start, and she doesn't tell you when it's going to end. And the bad thing

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about the drought that we're in right now is by far the worst I've lived through with

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no end in sight. And what compounded the problem was we added a lot of demand to our system

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without replacing supply. So we have everything working against us, you know, going into

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where we are today. And as I said, we have options. We've got to get some of them moving pretty

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quick. We have both short-term, mid-term, and long-term options that will allow this area

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to grow, but we've got to start moving on them. So as I said, this is my fourth drought.

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When I started with Jim Naysmith, one of the first things I got to do was go to Chocanian

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Reservoir for the ribbon cutting of the dam.

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They had just finished the construction, and there was no water in it, and what I didn't

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realize at the time is that we were going into a drought in 1982.

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I just didn't know it.

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Well, none of us really knew it, but they finished the dam.

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So our community, all of our region, was surviving off of one reservoir, Lake Mathis.

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Everything was Lake Mathis.

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So the city of Sinton at that time, Walter Hill was a city manager,

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hired Jim and I to help them in 1983 to rebuild their water supply system.

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They had old wells that were left over from the 40s and 50s that had just lived their life,

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if they were no good, their pump stations were bad.

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And so we put together a plan.

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And the plan was to drill three new water wells,

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two of which would be on welder property,

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which was Robin Bessie-Welder Park.

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It was donated to the city for park purposes.

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We had to get permission from the welder family

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to drill those wells for sentence use for future water supply.

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And then we drilled another well across the street.

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Our groundwater hydrologist was a guy named Steve Reed

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at El Read and Associates. You probably remember that name, right? He was really good.

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Probably knew more about groundwater hydrology than anybody in this region.

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And Steve was our hydrologist when we drilled the wells in Sydney.

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And I got to sit on the rig and do the logging of that well. And Steve showed me how to

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pick out the sands. We're the good sands. We're the bad sands where I was so impressed. I went home

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and told my wife what I got to do that day. And she's a petroleum engineer. She just laughed at me.

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that I do that every day with oil.

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So I learned a lot through that exercise in Sinton.

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What I learned the most important thing I learned

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is there was good groundwater quality

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right here in Sampat County.

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So that was in 83, we finished the first well

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and then we took five years,

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we drilled two additional wells

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and replaced the pump station.

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Then we drilled Judge Edmondson,

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some of you all might remember him,

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And he got a grant to put a water system in for the community ed Roy.

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So Steve and I went over there and drilled two wells in ed Roy and built a water system

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for them.

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Again, pretty good groundwater, not as good a groundwater as in, but it was pretty good.

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Well the drought started to deepen. In 1984 the alarm

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Bill started going off. We got to a point where we were looking down the shoot of literally running out of water. It's kind of like where we're at today. And it was so serious that we thought maybe we had six months of water supply. Luther Jones was the mayor, Ed Martin was our city manager, and they tasked Hayden Head and Judge Wood to go figure out how we were going to get through this

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this crisis.

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Jim Naysmith was in charge of the technical activities

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working with Gene Urban.

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And of course, I was working on the project with Jim,

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trying to figure out how do we re-plum this system

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to get water so the Corpus Christi in its region

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could stay alive.

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Everything was on the table.

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We looked at reactivating Kingsville wells.

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They had just built the South Texas Water Authority line,

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the 42-inch line that takes water down to Driscoll

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and Bishop and Kingsville.

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We were looking at reactivating old wells in Kingsville,

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sending them back to Corpus Christi to keep industry alive.

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We were looking at tassel wells.

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Could we reactivate them?

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Put them into the Sampat water distribution system.

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We looked at everything.

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And at the end of the day, what we decided to do,

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was just start poking holes in the ground

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along the Nueces River.

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Because we knew that there was water along the river.

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and the further you got up towards the dam,

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the better the water quality.

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And so we reactivated some of the old city wells

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that were both upstream of Lake Mathis and Downstream,

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and we drilled eight new stainless steel wells,

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800 feet deep, each one of those wells

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produced a million gallons of day of water,

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and we just literally dumped it into the river.

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And we were gonna continue to drill wells

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until the drought ended,

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because that was really our only option.

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The city had entered into agreements with the welder family

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to negotiate acquiring water rights

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on the welder property north of Sinton,

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which is what we call the evangelist now.

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But we didn't have enough time to be able to plumb that up

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and get it into the Sampat water district system

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because it would have taken a lot of time to get that done.

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The water was there.

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You just had to get it into the system.

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So we focused on drilling wells on the Nueces River.

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Well, the drought ended, you know, I want to say 87, 88.

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We had a big flood, filled Chocan and filled the Lake Mathis.

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And we got through it.

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You know, we didn't have to drill anymore wells.

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Those wells got put into a maintenance program at the city

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that would allow us to use them at some point in the future.

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The city maintained those wells all the way up to the mid 90s

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and then they just let the leases go.

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And by the way, the alloyer we worked with

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to get the leases with Steve Ellis.

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He was his first job with a Clevver law firm

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from Portland, Texas.

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He wrote those leases with those landowners

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along the noises that allowed us to drill wells

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on their property to keep this community alive.

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So we got through the 80s and we get into the 90s.

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EPA had just unleashed the new stormwater regulations

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on all the municipalities in the country.

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and Juan Garza was our city manager,

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Hasec Garza was the assistant city manager.

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They hired a guy named James Dodson to manage

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the EPA verdict with all these new stormwater regulations.

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So James got us through that.

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Well, in the early 90s and 90s,

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we had a very strong,

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Randy, is there any water, like a bottle of water?

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Look, I'm told I'm gonna get dry here.

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So, and we had a very strong environmental community.

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The Sierra Club was very strong, Pat Souter,

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and it was very hard to disseminate the environmental community

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00:18:57,380 --> 00:18:58,780
from the Tax Rares Association.

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It was kind of one and the same, but they were powerful.

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And if you couldn't get their blessing on something,

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it probably just wasn't going to happen, right?

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00:19:08,740 --> 00:19:13,220
So, the agreed order, there was a lawsuit file

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00:19:13,220 --> 00:19:19,020
because when they built Chocanian, they did not settle with the environmental community,

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00:19:19,820 --> 00:19:27,320
the fresh water, the fresh water inflows to the base in estuaries. So, James went from stormwater

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00:19:28,040 --> 00:19:34,520
to go negotiate a settlement, which we call now the agreed order, right, so that when we have

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00:19:34,520 --> 00:19:41,060
times of plenty, we're releasing water out of our dams for environmental flows. And then we have

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You know, there was a prescriptive calculated way that that was that was to be done and then we also got credit for waste water flows that went back into the bay.

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And so that's enough that we need to know now.

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00:19:54,920 --> 00:19:59,660
And by the way, don't get hung up with dates and times and I'm going to get you in the ballpark with all this stuff.

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Make sense. So, we go into another drought. Now, Choke Canyon had been full and like Mathis had been full. We added some demand to the system, not a lot, but we had added some demand to the system. But we started going into a drought. And it was a pretty, pretty tough drought. Industry could see it very early on. They knew that we were going to be in trouble.

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This state of Texas started what was called the

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I'm

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00:20:35,340 --> 00:20:36,260
going to show until kind of guy.

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00:20:36,940 --> 00:20:41,820
The state of Texas funded a program, which was called the Trans-Texas Program, which

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is now kind of morphed into the region end plan, but this was the first effort to get

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00:20:47,200 --> 00:20:51,960
communities to start looking down the road at all of their alternative water supplies.

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And I can assure you, there is nothing you can dream up today that we didn't look at in

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00:20:59,340 --> 00:21:02,280
the 90s drought because it's all in this document right here.

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And one of those was the banjo and drought water.

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We talked about diesel.

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We talked about all that stuff.

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Mary Rhodes was our mayor at the time, and the drought continued to deepen.

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Mary Rhodes was smart.

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00:21:18,360 --> 00:21:25,740
She formed a mayor's task force for water supply, and that task force included players and

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00:21:25,740 --> 00:21:28,140
customers from the water system from all over the region.

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00:21:28,140 --> 00:21:33,420
Portland had a representative on there, industry had representatives, the Sierra Club had representatives.

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00:21:33,900 --> 00:21:39,700
It was a very inclusive effort that vetted that trans-Texas water program.

285
00:21:40,640 --> 00:21:46,960
And out of that program, the number one project that the committee decided was the mayor

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Rhodes pipeline.

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I brought the diesel report, both the one done in the 80s and the one I did in 94.

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00:21:58,160 --> 00:22:00,880
I made a presentation with City Council about desalination.

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And remember that three-legged stool?

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00:22:04,160 --> 00:22:06,280
Well, my bottom line to the council was, yeah, it works.

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00:22:07,340 --> 00:22:08,200
Technology's getting better.

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00:22:08,920 --> 00:22:11,880
We can't afford it because it's not there yet.

293
00:22:12,040 --> 00:22:13,660
We've got other alternatives we can look at.

294
00:22:13,660 --> 00:22:20,100
And the one that rose to the top was, let's go get water rights from Lake Texana.

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00:22:21,460 --> 00:22:23,040
James Dodds had led that whole effort.

296
00:22:23,920 --> 00:22:26,640
We had to, we looked at getting water supply from Garwood.

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00:22:26,820 --> 00:22:30,180
That took an interface and transferred. That was a monumental thing to get done.

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00:22:30,180 --> 00:22:33,600
I think it might have been the first one in the state of Texas ever to have gotten done.

299
00:22:34,320 --> 00:22:36,320
James led that whole effort.

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00:22:36,640 --> 00:22:40,320
And some of you may remember James Dodds and he was the waters are, right?

301
00:22:40,320 --> 00:22:44,140
He was the waters are and James is still a good friend. I rely on him for

302
00:22:44,620 --> 00:22:50,980
Information all the time because he when he left the city he took everything with him kind of like Donald Trump when he left the White House

303
00:22:51,440 --> 00:22:57,080
He has everything so if I need some history on water. I just called James and he'll send it to me

304
00:22:57,640 --> 00:23:03,220
So that route got tough. We put to the vote of the people to build the Mary Road's pipeline

305
00:23:04,380 --> 00:23:05,820
And it didn't pass

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00:23:06,740 --> 00:23:08,800
Well, that didn't solve our problem.

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00:23:09,400 --> 00:23:14,440
And Mary Rhodes was a strong-willed woman, even though she got elected by the environmental

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00:23:14,440 --> 00:23:16,460
community and the tax process association.

309
00:23:16,620 --> 00:23:20,940
But she knew that we needed to be proactive and we needed to get this done.

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00:23:22,780 --> 00:23:30,880
So the city asked the port to help get the Mary Rhodes pipeline permitted, designed and built.

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00:23:30,880 --> 00:23:33,620
Well, we felt like we had about an 18-month window

312
00:23:33,620 --> 00:23:36,140
or curtailment was going to start happening.

313
00:23:37,200 --> 00:23:40,800
Frank Brogan at the port took a year and a half off

314
00:23:40,800 --> 00:23:44,000
of his life and did nothing but manage the building

315
00:23:44,000 --> 00:23:44,840
of the Mary Road's pipeline.

316
00:23:45,260 --> 00:23:48,640
HDR was the engineer of records for the project.

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00:23:49,500 --> 00:23:51,960
They split it up amongst three engineering firms.

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00:23:52,120 --> 00:23:53,960
We did the section from Owen Stevens

319
00:23:53,960 --> 00:23:55,400
to Woodsboro Palm Station.

320
00:23:55,740 --> 00:23:59,140
Urban did Woodsboro to Bloomington.

321
00:23:59,140 --> 00:24:02,960
and I think Goven or Goldston did the last section

322
00:24:02,960 --> 00:24:05,680
to Mayor Rhodes pipeline and then HCR did the pump stations.

323
00:24:06,400 --> 00:24:08,720
So we had a bunch of firms that were all coming together

324
00:24:08,720 --> 00:24:11,420
because we had 18 months to literally acquire the right

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00:24:11,420 --> 00:24:14,020
of way, get it all permitted and get it built

326
00:24:14,480 --> 00:24:15,660
and Frank got it done.

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00:24:16,300 --> 00:24:19,000
It was, and thank God, because that's what we're surviving

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00:24:19,000 --> 00:24:19,760
off of today.

329
00:24:20,840 --> 00:24:23,900
So that got us through the drought of the 90s.

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00:24:25,120 --> 00:24:26,760
Well, then we went into a period, you know,

331
00:24:26,800 --> 00:24:28,840
it's easy to manage a city when you're not growing, right?

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00:24:28,840 --> 00:24:30,240
all you got to do is maintain everything.

333
00:24:31,600 --> 00:24:34,220
But when you're growing, it gets a little tougher.

334
00:24:34,980 --> 00:24:38,400
Well, from the late night, we finished Maribrow's Pipeline

335
00:24:38,400 --> 00:24:39,340
in 1997.

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00:24:41,700 --> 00:24:44,480
And we really didn't see growth

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00:24:45,600 --> 00:24:48,140
until the effects of the Eagleford shale.

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00:24:49,300 --> 00:24:51,640
So we went through about a 15-year period

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00:24:51,640 --> 00:24:54,580
where really all we had to do was maintain things.

340
00:24:54,760 --> 00:24:57,280
And what happens when you have to just maintain things?

341
00:24:57,280 --> 00:24:59,470
you let your guard down and

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00:25:00,000 --> 00:25:07,380
And what happened is we dropped our water wells along the river. We gave up the leases, which

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00:25:07,380 --> 00:25:11,900
we should have always maintained. And by the way, what's up on the screen is our regional

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00:25:11,900 --> 00:25:17,440
water supply system. We'll get to that here in a minute. So, the May Rose pipeline was

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00:25:17,440 --> 00:25:24,300
built. We've been into a maintenance mode. The state of Texas knew that we were going

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00:25:24,300 --> 00:25:28,440
to have water supply problems because the state was growing. Even though we weren't growing,

347
00:25:28,440 --> 00:25:29,900
The rest of the state was growing, right?

348
00:25:31,000 --> 00:25:36,560
So Governor Perry and the Water Development Board funded two studies to look at where to

349
00:25:36,560 --> 00:25:38,620
locate a desalination facility.

350
00:25:38,980 --> 00:25:42,760
Where was the best place to locate a desalination facility in the state of Texas?

351
00:25:43,940 --> 00:25:48,780
And at the end result was two locations, one in the valley and Barney Davis power plant.

352
00:25:49,160 --> 00:25:53,880
CPL owned the plant at the time, but it had all the attributes you wanted.

353
00:25:53,880 --> 00:25:56,960
it had land, it had power, it had an intake structure,

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00:25:57,120 --> 00:25:59,800
a 500 million gallons a day, it's the closest location

355
00:25:59,800 --> 00:26:01,780
to the Gulf of Mexico, if you have to discharge it,

356
00:26:01,980 --> 00:26:02,580
had everything.

357
00:26:04,080 --> 00:26:06,600
Those studies got put on the shelf

358
00:26:07,120 --> 00:26:08,660
because we weren't growing, right?

359
00:26:08,820 --> 00:26:10,200
We didn't need to spend the kind of money

360
00:26:10,200 --> 00:26:11,500
that it would take to get that done.

361
00:26:12,680 --> 00:26:17,540
So we got through about, and there's some things

362
00:26:17,540 --> 00:26:20,160
that happened in between there, but we get to about,

363
00:26:20,740 --> 00:26:24,120
Well, let's just start with a drought of 2011, all right?

364
00:26:25,140 --> 00:26:28,800
You know, the economy went off the cliff in 2007, 2008.

365
00:26:29,280 --> 00:26:30,100
We weren't growing.

366
00:26:30,120 --> 00:26:34,980
Everybody was just kind of holding on, praying that we would get the economy turned around.

367
00:26:35,920 --> 00:26:38,600
Well, during that period of time, the Eagle for Chale was found.

368
00:26:40,460 --> 00:26:45,380
Remember that guy, Steve Ellis, I was talking about he told me about it before anybody knew about it,

369
00:26:45,380 --> 00:26:46,720
because he worked on all those leases.

370
00:26:46,720 --> 00:26:50,860
I just didn't know that what he was telling me was going to change my life.

371
00:26:51,240 --> 00:26:54,600
It's going to change all of our lives here in South Texas and it still is.

372
00:26:55,260 --> 00:27:00,540
It just morphed into the Permian and, you know, horizontal fracking and all the things that have come from that.

373
00:27:01,500 --> 00:27:10,040
So we were all of a sudden starting to see an interest in bringing large-scale industry back to corpus.

374
00:27:10,140 --> 00:27:11,540
We hadn't seen that in a long time.

375
00:27:11,880 --> 00:27:13,620
We weren't growing from a municipal standpoint.

376
00:27:13,620 --> 00:27:19,080
even Portland, that's all your graph, you really weren't growing until we hit that period of time

377
00:27:19,080 --> 00:27:26,700
when all of a sudden we're on the map and things were starting to move. So we go into this drought

378
00:27:26,700 --> 00:27:37,180
of 2011 through 13, and it was a bad one, but not only for us, that one was statewide. So we were

379
00:27:37,180 --> 00:27:43,200
challenged with, you know, we had the Mary Rhodes pipeline, but we only had phase one. We had not

380
00:27:43,200 --> 00:27:50,780
built the pipeline to Colorado River at Garwood. So the question was at that time, and it was getting

381
00:27:50,780 --> 00:27:57,820
pretty darn serious, what do we do next? Do we build the second phase of Mary Road's pipeline to the

382
00:27:57,820 --> 00:28:06,000
Colorado River? Or do we look at groundwater resources in the area? And in my mind, it was

383
00:28:06,000 --> 00:28:11,800
of Angela. What people, there's a myth out there that we finally put to rest last week

384
00:28:11,800 --> 00:28:18,820
when we met with HDR and all the water people. Brian was there. The urban myth was groundwater

385
00:28:19,540 --> 00:28:26,920
at the Evangelion location was brackish and needed to be treated with RO treatment. And

386
00:28:26,920 --> 00:28:35,080
there was no capacity in the Mary Road's pipeline. Both of them were false. I told the city

387
00:28:35,080 --> 00:28:39,780
staff this for the last 15 years that that was false.

388
00:28:40,320 --> 00:28:42,180
Sit and drink that water every day.

389
00:28:42,460 --> 00:28:45,020
It meets all primary and secondary drinking water standards.

390
00:28:46,020 --> 00:28:52,020
And when we designed the Mary Road's pipeline, it was designed to get all of Texana, all

391
00:28:52,020 --> 00:28:57,420
of the Colorado River water, and about 25 million gallons a day of Gulf Coast aquifer water.

392
00:28:57,720 --> 00:29:02,480
And that could come from either Ovanjolin or a potential well field which we call Goliad

393
00:29:02,480 --> 00:29:09,180
sand's up in B and Rapero county. The water district, when Jim was at the water

394
00:29:09,180 --> 00:29:13,760
district, commissioned a study to look at groundwater at both those two

395
00:29:13,760 --> 00:29:18,780
locations and picked to move forward with the Goliad sand's project for a

396
00:29:18,780 --> 00:29:21,600
variety of the mainly because they had their act together. The landowners had

397
00:29:21,600 --> 00:29:26,920
come together and said hey we're willing to do this. When they did test wells to

398
00:29:26,920 --> 00:29:30,640
prove the well field out, when it came time to go to the next phase of funding and

399
00:29:30,640 --> 00:29:33,640
And this was in the mid 2000s, again, we weren't growing, right?

400
00:29:35,540 --> 00:29:39,660
Jim turned it over to the city for funding for the next phase.

401
00:29:40,140 --> 00:29:41,700
Ron Massey was our public works director.

402
00:29:42,520 --> 00:29:46,340
Well, we weren't growing, and Ron just put it on the side of his desk and decided not to pursue it.

403
00:29:49,200 --> 00:29:53,600
So, we weren't trying to get out of a drought at the time, we were just managing our system.

404
00:29:54,180 --> 00:29:59,140
If you can take on customers with your existing infrastructure, it helps you pay your water

405
00:29:59,140 --> 00:29:59,300
bills.

406
00:29:59,300 --> 00:29:59,960
You don't have to raise...

407
00:30:00,000 --> 00:30:27,460
That's the rights every year, right? And when you're a city council, our council, you're elected every two years, nobody wants to raise water rights. Well, how do you build future water supplies if you're not willing to encumber addition debt to meet the demand for future water customers? So it's a difficult thing to manage your way through. Well, the decision at the time was either do we go do a vangeland or do we do? Mary Rhodes phase two.

408
00:30:28,400 --> 00:30:31,800
Lloyd Neill and I used to laugh at each other driving back and forth to college station.

409
00:30:31,940 --> 00:30:35,080
We looked at Lagrange at the Colorado River and there was no water in it.

410
00:30:35,600 --> 00:30:41,140
We were like, why would we build the pipeline to the Colorado River when Austin has senior

411
00:30:41,140 --> 00:30:46,180
rights to that water and it's run of the river water and if there's no water in the river

412
00:30:46,180 --> 00:30:48,760
you don't have anything to put in the pipeline, right?

413
00:30:50,200 --> 00:30:57,060
But the decision was to go build Mary Rose phase two because this urban myth out there that

414
00:30:57,060 --> 00:30:58,600
that water up and said was no good.

415
00:30:59,940 --> 00:31:01,520
Well, I thought that battle I lost,

416
00:31:02,600 --> 00:31:04,860
but we were gonna do that at some point anyway.

417
00:31:05,100 --> 00:31:07,100
So, it's good that it got done.

418
00:31:08,040 --> 00:31:09,580
It's what we're living off of today.

419
00:31:09,840 --> 00:31:13,360
Fortunately, the Hill Country had a horrific rain this summer

420
00:31:13,360 --> 00:31:15,540
and bought us a little bit of time there,

421
00:31:15,620 --> 00:31:17,340
but they had a Colorado River was in trouble.

422
00:31:17,900 --> 00:31:20,500
And over the last couple of years, Austin would send us

423
00:31:20,500 --> 00:31:21,880
a little love letter every once in a while

424
00:31:21,880 --> 00:31:24,260
and say, hey, just want you to know that, you know,

425
00:31:24,260 --> 00:31:30,100
in a pinch, you know, maybe our water, well that was always the risk with building that

426
00:31:30,100 --> 00:31:31,220
to the Colorado River.

427
00:31:31,680 --> 00:31:35,420
James Dotson always thought that we would never build that section, that we would trade

428
00:31:35,420 --> 00:31:40,880
it for something else that we could build in our own backyard, whether that was a decal

429
00:31:40,880 --> 00:31:45,620
facility or a brackish groundwater project or something else, but we built it.

430
00:31:46,820 --> 00:31:47,560
And that's okay.

431
00:31:48,560 --> 00:31:53,160
Well, the drought started to let up, as a matter of fact, there were big floods all over the

432
00:31:53,160 --> 00:32:03,800
state of Texas during that 2014-15 timeframe. Our reservoirs never got much above 50% reservoir

433
00:32:03,800 --> 00:32:08,940
capacity. While all the other reservoirs in the state filled up, we never got really out

434
00:32:08,940 --> 00:32:17,660
of that drought. And what was beginning to happen is steel dynamics was, you know, Tommy

435
00:32:17,660 --> 00:32:23,340
Many curts in the EDC was very active trying to market this region for industrial activity,

436
00:32:23,920 --> 00:32:27,760
creates jobs, wealth for the community, all the things that we know that it does.

437
00:32:29,560 --> 00:32:36,680
But we were managing a water system that was not adding enough supply to meet that demand.

438
00:32:37,680 --> 00:32:44,660
Most cities don't have, to deal with what we deal with, 60% of our water every day is used

439
00:32:44,660 --> 00:32:45,760
by industry.

440
00:32:46,440 --> 00:32:53,800
So when you're managing a growth, a projected growth of your city, you can see the horizon pretty far out and plan for that.

441
00:32:54,640 --> 00:33:01,500
But when an industry comes in and needs 20 million gallons a day, that jumps and that's hard to predict.

442
00:33:02,260 --> 00:33:05,220
And when the next project come in and it jumps, that's hard to predict.

443
00:33:06,220 --> 00:33:13,040
steel dynamics was kicking around. The reason I'd drove Will Holly to

444
00:33:13,040 --> 00:33:18,040
sit in in my pickup truck to show him the welder ranch is because there was two

445
00:33:18,040 --> 00:33:23,060
water supplies, the Mary Road's pipeline and the Vangeland water, dual rail,

446
00:33:23,400 --> 00:33:28,820
access the deep water port in a highway and they picked that site. Now they chose

447
00:33:28,820 --> 00:33:32,560
not to buy the Vangeland groundwater rights because the city of Corpus

448
00:33:32,560 --> 00:33:35,540
sold in water for a dollar five, the published raw water rate.

449
00:33:36,580 --> 00:33:41,960
One of the replacement costs for new water would have been much, much greater than that.

450
00:33:43,120 --> 00:33:47,640
So we have a water rate model that we're going to have to figure out, move and forward.

451
00:33:48,020 --> 00:33:53,920
Because as we get these big industries wanting to come here, are you going to pass the cost

452
00:33:53,920 --> 00:34:00,860
of that new water onto mom and dad living on Elm Street that didn't create that problem?

453
00:34:02,060 --> 00:34:04,960
Well, that's why cities have impact fees, right?

454
00:34:05,780 --> 00:34:07,480
Well, they do it for industry as well.

455
00:34:07,620 --> 00:34:09,220
And we're going to have to think about doing that.

456
00:34:09,460 --> 00:34:10,660
I'm not a rate modeler guy.

457
00:34:10,880 --> 00:34:12,260
That's a science all in its own.

458
00:34:12,880 --> 00:34:14,720
But we have to start addressing that issue.

459
00:34:15,700 --> 00:34:17,320
So steel dynamics came in.

460
00:34:17,780 --> 00:34:20,500
Gulf Coast junters was starting to kind of kick around.

461
00:34:21,260 --> 00:34:24,860
I got invited to go to Taiwan with a trade mission

462
00:34:24,860 --> 00:34:28,380
led by the Port of Corpus Christi and the CCREDC.

463
00:34:29,100 --> 00:34:37,020
And the reason they brought me is because there was a rumor out around the world that you don't want to come to Corpus Christi with your business because they don't have water.

464
00:34:39,290 --> 00:34:47,470
So they asked me to go over there and make the pitch that we had water. Well, I knew Dernwell we didn't have enough water, but we could always make water.

465
00:34:47,590 --> 00:34:56,150
We could go get groundwater, and we could always use the Gulf of Mexico for desalination. And we didn't even touch brackish groundwater, right?

466
00:34:56,150 --> 00:34:59,950
So we could go make more water so when we left on

467
00:35:00,000 --> 00:35:11,780
Local government trade mish, I had a letter from Margie Rose, our city manager that said we had in 2017, 90 million gallons a day of available water for new customers.

468
00:35:14,710 --> 00:35:30,950
When we were in Taiwan, we got a note that the LNRA pulled back 10 million gallons a day or 10,000 acre feet of water that was interruptible, it was interruptible water supply that was in our contract with the LNRA.

469
00:35:30,950 --> 00:35:34,490
that they were going to keep in Jackson County for a future industry.

470
00:35:34,650 --> 00:35:38,570
Well, for most of them wanted it, and they had the right to get it.

471
00:35:39,150 --> 00:35:42,110
So while we were in Taiwan, we went down from 90 to 80.

472
00:35:44,190 --> 00:35:52,610
HDR had just completed the drought of record impact on our firm yield of our

473
00:35:52,610 --> 00:35:57,630
lake system, and it dropped our firm yield 30 million gallons a day.

474
00:35:58,290 --> 00:36:00,710
And the thing you got to keep in mind about reservoirs

475
00:36:00,710 --> 00:36:02,730
as they lose capacity every single day,

476
00:36:03,350 --> 00:36:05,770
one either through evaporation or siltation.

477
00:36:06,530 --> 00:36:09,690
The most elever hold is the day you build the dam

478
00:36:09,690 --> 00:36:12,070
and shut the gates, and from there on,

479
00:36:12,190 --> 00:36:13,870
it slowly starts to go down.

480
00:36:15,330 --> 00:36:18,270
So now we're at 40 million gallons a day.

481
00:36:21,410 --> 00:36:24,190
Steel dynamics needed six to eight at the time.

482
00:36:24,510 --> 00:36:27,130
Gulf Coast joint ventures was asking for 25.

483
00:36:27,390 --> 00:36:28,970
Fortunately, they're not using anywhere near that.

484
00:36:29,650 --> 00:36:32,630
But their contract was gonna be for 25 million gallons a day.

485
00:36:33,750 --> 00:36:35,890
Project Falcon, some of y'all remember that.

486
00:36:37,130 --> 00:36:42,810
They wanted 40 million gallons a day, and so I write this on a napkin at lunch one

487
00:36:42,810 --> 00:36:48,410
day when we were in John LaRue and Charlie's on and everybody, and I say, hey guys, hold

488
00:36:48,410 --> 00:36:48,670
on.

489
00:36:48,830 --> 00:36:49,730
We're selling the water.

490
00:36:49,870 --> 00:36:50,430
We don't have.

491
00:36:53,520 --> 00:36:56,960
And they're like, you're right, we don't have this water.

492
00:36:57,680 --> 00:37:00,640
But we're out there telling the world to come and do business with us.

493
00:37:01,420 --> 00:37:03,240
So we weren't adding any supply.

494
00:37:04,440 --> 00:37:15,920
Well, during the drought of 2011-13, get into 14-15 and 2015, the desal guys, I met the

495
00:37:15,920 --> 00:37:20,600
Poseidon guys during the drought and went out to Carlsbad and looked at that facility

496
00:37:20,600 --> 00:37:21,480
that was just being built.

497
00:37:23,900 --> 00:37:28,900
And, you know, it's a pretty interesting facility, certainly has helped them through their drought.

498
00:37:28,900 --> 00:37:38,180
But I asked the manager of the San Diego Water Authority, I said, why did you use a P3,

499
00:37:38,300 --> 00:37:41,360
a private developer to develop that diesel facility?

500
00:37:42,540 --> 00:37:44,120
And he said, look, it's real simple.

501
00:37:44,980 --> 00:37:50,540
Any elected official or water district manager in California that tried to do a diesel project

502
00:37:50,540 --> 00:37:53,140
was either not re-elected or fired.

503
00:37:53,800 --> 00:38:01,420
And we chose to offload that responsibility to the private sector and let them get it built because that was the only way it was going to get built.

504
00:38:01,940 --> 00:38:07,220
And it's now the second largest diesel facility in the country, about 50 million gallons a day.

505
00:38:07,800 --> 00:38:14,840
Kappa was the first big one, Santa Barbara was the first one but it was so expensive to operate when their drought was over they turned it off.

506
00:38:15,300 --> 00:38:17,060
So I'm going to wrap it up here pretty quick.

507
00:38:17,060 --> 00:38:26,680
So the decals thing really started to take hold and it was kind of funny it was all that it was like shark circling

508
00:38:26,680 --> 00:38:29,920
You know the dead body in the middle of the ocean, you know

509
00:38:29,920 --> 00:38:36,040
They could they were there was there was a feast that could have Todd Hunter had a big powwow down at the Orchie Center

510
00:38:36,040 --> 00:38:43,480
Where he invited all the vendors in the decal world to come and everybody was just all excited about how this decals because decals

511
00:38:44,420 --> 00:38:46,300
It's almost like a magic potion.

512
00:38:46,400 --> 00:38:49,120
Everybody wants it because you're looking at that ocean

513
00:38:49,120 --> 00:38:51,140
and you know, Dernwell, we're not going to run out of water

514
00:38:51,140 --> 00:38:52,940
if we can figure out how to make it fresh water.

515
00:38:53,560 --> 00:38:55,440
But again, it always comes down to cost.

516
00:38:56,400 --> 00:38:59,340
And so at that time, that was about 2015-17,

517
00:39:02,060 --> 00:39:04,540
I won't go into the details, but Sean Sroberidge

518
00:39:05,080 --> 00:39:06,560
wanted to look at Harbor Island.

519
00:39:06,600 --> 00:39:10,520
He had me run the cost of a pipeline for 20 million gallons a day

520
00:39:10,520 --> 00:39:12,940
from Harbor Island to Bryan Williams facilities

521
00:39:12,940 --> 00:39:13,980
He sent out water district.

522
00:39:14,460 --> 00:39:17,160
The number was stupidly high.

523
00:39:18,280 --> 00:39:19,500
And I asked him, I said, what are you doing?

524
00:39:19,640 --> 00:39:20,880
And he said, well, that's some of your business.

525
00:39:21,020 --> 00:39:23,040
I just need you to run the cost of the pipeline

526
00:39:23,040 --> 00:39:24,940
to get this moved into the system.

527
00:39:25,700 --> 00:39:27,020
I said, well, you're not in the region now,

528
00:39:27,080 --> 00:39:29,240
and you don't qualify for Swift funding.

529
00:39:29,600 --> 00:39:30,760
He said, well, that's my problem.

530
00:39:31,000 --> 00:39:31,840
We're going to deal with that.

531
00:39:32,620 --> 00:39:35,020
So then became the diesel wars.

532
00:39:35,240 --> 00:39:36,380
Corpus Christi versus the port.

533
00:39:36,380 --> 00:39:39,520
We ended up wasting a whole bunch of time on that effort.

534
00:39:40,060 --> 00:39:42,280
We tore our community apart politically.

535
00:39:44,120 --> 00:39:46,020
It resulted in where we are today.

536
00:39:46,700 --> 00:39:51,240
That's unfortunate because we should have been better about making those decisions.

537
00:39:52,160 --> 00:39:54,920
We didn't go look at low-hanging fruit during those efforts.

538
00:39:55,020 --> 00:39:56,540
We were just solely focused on it.

539
00:39:56,580 --> 00:39:58,240
Well, people will say, oh, we looked at everything.

540
00:39:58,240 --> 00:39:59,800
Well,

541
00:40:00,000 --> 00:40:28,440
So they kind of looked at everything, but if you bump the cost of groundwater so high that it looks like it's competitive with diesel, then you go, oh, diesel is guaranteed it's drought proof. Well, okay, those urban myths got put to rest at City Hall last week. So today, the city moved forward with the purchase of the water rights from a Vangeland. Still have a lot of work to do. Pape Dawson has been hired by the city to,

542
00:40:28,440 --> 00:40:34,340
and Hanson is working with Pape Dawson to get a vangeline moving and moving quickly.

543
00:40:34,560 --> 00:40:40,300
Our goal is to have water into the Maryroads pipeline at the fence line by next November.

544
00:40:41,100 --> 00:40:44,980
You can produce 24 million gallons a day when it's ultimately built.

545
00:40:45,780 --> 00:40:49,360
We're hoping to get maybe 12 million gallons a day in the system.

546
00:40:50,500 --> 00:40:51,560
So where we are today,

547
00:40:56,400 --> 00:41:02,400
this region before drought restrictions was using about 130 to

548
00:41:02,400 --> 00:41:05,220
140 million gallons a day on a peak summer day.

549
00:41:05,940 --> 00:41:08,240
Everybody can water the yard, industry can blow and go.

550
00:41:09,840 --> 00:41:16,140
With all the drought restrictions we've had, I think we're under 100 million gallons a day for the whole system right now.

551
00:41:16,540 --> 00:41:17,100
So that's helped.

552
00:41:18,360 --> 00:41:22,200
The Maribrow's pipeline, we had some long issues I won't go into on that, but

553
00:41:23,240 --> 00:41:29,300
the city had to better understand how to operate that pipeline, because they thought it was falling apart.

554
00:41:29,840 --> 00:41:35,420
and it wasn't, they just weren't operating the two booster pump stations to move the water to Cal

555
00:41:35,420 --> 00:41:41,860
Island. They were trying to push it from Lake Texana all the way to Owen Steven's treatment plant

556
00:41:41,860 --> 00:41:47,560
without operating the booster stations. Well, you can do that when your demand doesn't require you to

557
00:41:47,560 --> 00:41:51,740
have that much water. But if you're paying for the water in a take or pay and you're draining your

558
00:41:51,740 --> 00:41:55,780
reservoirs, you ought to be taking the water you're paying for and getting it in the pipeline.

559
00:41:58,640 --> 00:41:59,280
So start

560
00:41:59,280 --> 00:42:12,640
70 million gallons a day. So we're short, right? Drew Mollie came, I'm going to wrap this up real quick. Drew Mollie came to my office last November, and he said, I want to run a wild idea by it.

561
00:42:13,580 --> 00:42:21,920
He said, what if we start just real and well along the Nueces River to get through this drought, and I said, true, we did that 40 years ago.

562
00:42:21,920 --> 00:42:23,440
So he goes, what?

563
00:42:23,920 --> 00:42:25,860
I said, we did that 40 years ago.

564
00:42:26,420 --> 00:42:29,160
Well, fortunately, James Dodson had all of that information

565
00:42:29,160 --> 00:42:31,680
of Victoria, and he sent it to us,

566
00:42:31,760 --> 00:42:33,560
and we'd sat on with Drew and his staff and Peter

567
00:42:34,060 --> 00:42:37,960
and said, look, this is water from emergency purposes only.

568
00:42:38,100 --> 00:42:43,800
The water quality is brackish or slightly saline.

569
00:42:44,020 --> 00:42:46,400
TDS is above 1,000, sometimes well above it.

570
00:42:46,980 --> 00:42:49,140
Chlorides is too high, industry won't like it.

571
00:42:49,140 --> 00:42:53,460
but to get through a drought, you can make it work.

572
00:42:53,760 --> 00:42:56,040
So they started drilling wells on the lower,

573
00:42:56,200 --> 00:42:57,260
what they call the east field.

574
00:42:57,260 --> 00:42:58,440
They've now moved up the river,

575
00:42:59,040 --> 00:43:01,000
which is where they really should have started focusing

576
00:43:01,000 --> 00:43:02,800
because that's where the better water quality is.

577
00:43:02,900 --> 00:43:04,920
They got a bed and bags permit for the first well field

578
00:43:04,920 --> 00:43:07,160
they're applying for a bed and bags for the next.

579
00:43:07,740 --> 00:43:11,220
They think that they could get 28 million gallons a day

580
00:43:11,220 --> 00:43:13,920
of water, groundwater into the noises river

581
00:43:14,340 --> 00:43:16,060
to help bridge this gap.

582
00:43:16,900 --> 00:43:24,740
We've got 70 coming from points north and by the way Texas and I checked this morning is that 76% capacity fills up fast drops fast.

583
00:43:25,980 --> 00:43:32,060
It lost 25% capacity in the last three months to then rain and we're going to get some rain.

584
00:43:32,620 --> 00:43:40,400
Hopefully it fills up in the spring and we'll have that set at least at 70 will have the emergency wells moving on a banjo line.

585
00:43:40,400 --> 00:43:46,900
And there's some other things that the city can talk to you about on reuse and some other things.

586
00:43:47,520 --> 00:43:54,940
Barney Davis, I think, is finally starting to, people are starting to understand the value of why are we not looking at Barney Davis.

587
00:43:55,800 --> 00:44:05,420
In the past, when Barney Davis was looked at, you had a private entity that owned the plant, owned the plant, and you would have to marry that up with the interest of a municipality.

588
00:44:05,420 --> 00:44:06,520
Now, that's kind of tricky.

589
00:44:07,540 --> 00:44:10,000
Well, this past year, last two years,

590
00:44:10,320 --> 00:44:14,760
CPS Energy, which is San Antonio, bought that power plant.

591
00:44:15,680 --> 00:44:17,600
So now we have an opportunity to marry up

592
00:44:18,540 --> 00:44:20,440
two big large Texas cities

593
00:44:20,440 --> 00:44:24,600
that could look at a large-scale diesel facility.

594
00:44:25,320 --> 00:44:29,000
And if I was king for the day, I'd go do a Vangelin.

595
00:44:29,900 --> 00:44:31,340
I'd do some wastewater reuse.

596
00:44:31,960 --> 00:44:33,980
You've got your emergency wells when you need them.

597
00:44:34,460 --> 00:44:39,080
You do Barney Davis, and we're done for a good long while.

598
00:44:41,700 --> 00:44:42,740
So I'll end it with that.

599
00:44:43,440 --> 00:44:45,480
That's how we got to where we are today.

600
00:44:45,680 --> 00:44:49,500
And the good news is, is the council acted today to go get that advantage of water.

601
00:44:56,050 --> 00:44:58,130
I don't know if we want to get through all the presentation.

602
00:44:58,350 --> 00:44:58,650
Are you sure?

603
00:44:59,110 --> 00:44:59,930
Is that okay with you?

604
00:45:00,460 --> 00:45:07,800
Okay. Absolutely. Right up, back up here and Brian, kind of go over a couple of things. Yeah.

605
00:45:10,620 --> 00:45:30,040
Thank you. And John gave us a great presentation on, you know, kind of regionally, what are water supply where it's coming from historically. I want to share with you for the city of Portland, you know, where we get our water, what does that look like? And then Brian Williams is going to share, you know, plans on the water district moving forward. But we as a city of Portland,

606
00:45:30,040 --> 00:45:36,740
And as Mr. Wright mentioned earlier about the last 75 years have been purchasing treated water from the San Patricia Municipal Water District.

607
00:45:37,140 --> 00:45:42,740
The City of Portland does not treat any of its water, it just receives treated water and then it distributes it through its system.

608
00:45:43,520 --> 00:45:54,980
The San Patricia Municipal Water District operates a number of transmission lines throughout the region and we receive water in two points at the 1 million gallon storage tanks.

609
00:45:55,540 --> 00:46:01,120
The first being next to the Waterburger on US-181 in Broadway, and the second by the sports complex.

610
00:46:01,740 --> 00:46:09,800
At each of those ground storage tanks, we operate a series of pumps, those pumps in the neighborhood of 5,000 GPM throughout the city.

611
00:46:10,550 --> 00:46:13,500
That in turn fills up our elevated storage tanks.

612
00:46:13,720 --> 00:46:17,180
The one next to Walmart, and the one in the corner of Moore and

613
00:46:17,180 --> 00:46:19,100
Akins, those 500,000 gallon tanks.

614
00:46:19,100 --> 00:46:25,980
And so between those four structures that provides both the capacity and the pressure to operate our water system.

615
00:46:26,460 --> 00:46:30,560
And again, we do not treat our water, we buy that water treated from the water districts.

616
00:46:30,680 --> 00:46:35,300
The only thing that we're doing on a routine basis, whether it's daily, weekly, monthly,

617
00:46:35,820 --> 00:46:40,520
checking chlorine residuals, checking for contaminants, any heavy metals, anything along those lines.

618
00:46:41,440 --> 00:46:47,060
And at that point, we then distribute the water to each of our customers over 6,000

619
00:46:47,060 --> 00:46:52,080
single-family residential customers as well as multi-family and retail customers.

620
00:46:52,380 --> 00:46:56,820
The City of Portland does not provide any water to industry for industrial purposes.

621
00:46:57,540 --> 00:47:03,500
We do provide water for the office buildings at about three of our industrial partners

622
00:47:03,500 --> 00:47:07,640
to use outside of the city limits, but when there is no industrial water, no industrial process

623
00:47:07,640 --> 00:47:11,860
water provided to anybody outside the City of Portland.

624
00:47:14,180 --> 00:47:25,300
You know, John mentioned during his presentation, you know, kind of the long-term trajectory of water usage throughout the region and Brian and his presentation here in a couple of minutes will do the same thing.

625
00:47:25,800 --> 00:47:30,420
I want to share kind of a snapshot of last decade or so of Portland and where we've been in our water usage.

626
00:47:31,200 --> 00:47:37,440
We've grown about 25% of water usage from 2015 through 2024-2025.

627
00:47:37,940 --> 00:47:48,000
We've got a trend line that kind of smooths out, you know, you see in droughts and periods of COVID through there, but we're generally, you know, keeping track within growth within the city of Portland.

628
00:47:48,240 --> 00:47:58,320
We're growing on average with our population growth is in the chart that Mr. Wright showed you about 3% per year and our water usage has generally tracked that.

629
00:47:58,320 --> 00:48:06,800
And so, you know, in 2010, 2012, 2014, we're about the 600 million gallon a year range.

630
00:48:07,420 --> 00:48:11,940
If it weren't for this last drought, we'd be closer to 850 million gallons per day.

631
00:48:12,280 --> 00:48:16,380
So significant increase, and so that's going to require some additional reliance on the

632
00:48:16,380 --> 00:48:22,640
Summertime Minus Water District and the City of Corpus Christi to provide an additional capacity.

633
00:48:22,640 --> 00:48:30,420
In the end, the trend line, you know, through 2028, we, you know, will exceed 850 million gallons if it weren't for a drought.

634
00:48:30,960 --> 00:48:35,660
And so we're, don't see that trend line changing for the foreseeable future.

635
00:48:35,960 --> 00:48:41,540
Everything that we're telling us from our residential developers, commercial developers, we expect that to continue.

636
00:48:41,540 --> 00:48:42,540
Next

637
00:48:48,620 --> 00:48:51,380
up is Brian Williams, a general manager with the San

638
00:48:51,380 --> 00:48:54,680
Fish and Water District, and I also want to recognize

639
00:48:54,680 --> 00:48:57,400
the Tom Bridges, vice president of the district.

640
00:48:57,680 --> 00:48:58,180
It's here tonight.

641
00:48:58,640 --> 00:48:59,920
Also Tom, thanks for being here.

642
00:49:00,340 --> 00:49:01,600
Brian, I'll turn it over you.

643
00:49:01,980 --> 00:49:02,860
Okay, thank you, Randy.

644
00:49:03,600 --> 00:49:05,940
Mayor Council, appreciate the opportunity to come this evening

645
00:49:06,380 --> 00:49:08,880
and provide a presentation to y'all.

646
00:49:09,860 --> 00:49:12,840
We appreciate the opportunity to serve the city of Portland.

647
00:49:13,600 --> 00:49:16,160
And I'll try to go through this fairly quick.

648
00:49:16,160 --> 00:49:21,840
Again, Tom Bridges is a representative part of the city of Portland on our board.

649
00:49:21,840 --> 00:49:23,800
He's also the vice president of our board.

650
00:49:26,740 --> 00:49:32,260
Some of this may be a little history, some of the same things you may have heard from John Michael,

651
00:49:32,260 --> 00:49:37,180
but at current time, city of Corpus Christi is the regional water provider.

652
00:49:37,780 --> 00:49:42,220
San Patricia Municipal Water District was created in 1951 by the state legislature,

653
00:49:42,220 --> 00:49:49,220
50 second state legislature, treated water began flowing from the city of Corpus via the Reynolds

654
00:49:49,220 --> 00:49:56,200
aluminum wire 24 inch line to the city of Odom in 1952. That was the first customer of the district.

655
00:50:00,000 --> 00:50:27,680
We're going to jump over a little bit. The San Patricia Municipal Water District has two contracts with the city of Corpus Christi, a raw water contract for 46,800 acre foot per year. That contract is in perpetuity. We've also got a treated water contract for 34,760 acre foot per year. That one's good. Another 33 years to 2058.

656
00:50:27,680 --> 00:50:32,300
that was renegotiated when Gulf Coast growth ventures came to town.

657
00:50:33,720 --> 00:50:38,880
Likewise, San Patricio Municipal Water District has a contract with the City of Portland.

658
00:50:39,780 --> 00:50:45,500
We have an obligation to provide .4 gallons per minute per connection.

659
00:50:46,340 --> 00:50:50,920
That contract is for 30 years and will take us out to 2043.

660
00:50:50,920 --> 00:50:59,120
We just keep numbers, or one number you may want to keep in mind, at 0.4 gallons per minute per connection.

661
00:50:59,520 --> 00:51:04,680
I think I'll have 6,635 was the last number we had on our books.

662
00:51:05,460 --> 00:51:17,460
So we, San Francisco Municipal Water District has an obligation to, I guess, by TCEQ rules to provide up to 3.8 million gallons per day of water.

663
00:51:17,460 --> 00:51:25,260
currently using about $2 million per day on the average, but by contract, by TCEQ rules,

664
00:51:25,260 --> 00:51:27,500
it's $3.8 million per day.

665
00:51:32,330 --> 00:51:35,770
The status where we're at right now, it doesn't look good.

666
00:51:36,710 --> 00:51:41,130
The rains haven't been coming. We're in a drought that's been lasting several years.

667
00:51:41,130 --> 00:51:48,190
Chalk Canyon Reservoirs, 10.9%, Lake Corpus Christi's 13.5%,

668
00:51:48,190 --> 00:51:56,230
the Nueces Basin combined, 11.6%. Lake Texana's at 76%.

669
00:51:56,230 --> 00:52:01,050
And that's the water that's made up from from Texana,

670
00:52:01,210 --> 00:52:05,910
31,000 acre foot, firm, 12,000 acre foot, interruptible.

671
00:52:05,910 --> 00:52:13,310
and recently, City of Corpus, I guess did a two year contract for up to 10,000

672
00:52:13,310 --> 00:52:17,950
acre foot per year additional from Formosa, that water that John Michael mentioned

673
00:52:17,950 --> 00:52:24,650
while ago that was recalled by Jackson County, the city was able to secure it

674
00:52:24,650 --> 00:52:30,670
back for another couple of years. Colorado River, 35,000 acre foot per year, those

675
00:52:30,670 --> 00:52:38,210
rights or run river rights in junior to LCRA. The firm yield for the city of Corpus Christi

676
00:52:38,210 --> 00:52:48,930
is 189,000 acre foot per year. So I think I ran that number somewhere. At 109 million

677
00:52:48,930 --> 00:52:56,190
gallons per day, that's 122,000 acre foot. So theoretically, there should be enough water

678
00:52:56,190 --> 00:53:00,650
through the firm healed out there from year to year, but we're in the new drought of record,

679
00:53:01,070 --> 00:53:05,690
some things, you know, the rains just aren't coming, the lakes aren't filling up. So

680
00:53:06,690 --> 00:53:13,270
so where we are, we're in stage three, no lawn watering, but I will say to our customers,

681
00:53:13,710 --> 00:53:19,850
some kudos from year to year, looking at January through September of

682
00:53:22,090 --> 00:53:31,750
2024 versus 2025, potable water use has been reduced, 13.3% industrial use has gone

683
00:53:31,750 --> 00:53:38,290
down 6.9% raw water that we have a couple of customers purchasing raw water.

684
00:53:38,730 --> 00:53:45,710
That has gone up 0.01%, but overall we've got a total reduction in our system of 8%.

685
00:53:46,930 --> 00:53:58,350
Portland in particular January through September 2024 through 2025, we've seen a 5.3% reduction in yellow's consumption.

686
00:53:58,590 --> 00:53:59,110
Appreciate that.

687
00:53:59,550 --> 00:54:00,630
Who does to the city?

688
00:54:04,380 --> 00:54:11,060
I've plagiarized a couple of grass charts from the City of Corpus Christi because I think they do provide a lot of information.

689
00:54:11,060 --> 00:54:16,660
If anybody is interested, you can go out and look at these at the City of Corpus Christi's

690
00:54:16,660 --> 00:54:22,440
website, the Water Dashboard, but I'll just kind of walk through this one quickly and

691
00:54:22,440 --> 00:54:27,380
just, she'll have some understanding of it so you can go back and look at it any time

692
00:54:27,380 --> 00:54:35,500
it's updated month to month, but top right hand corner, the month of September, the system

693
00:54:35,500 --> 00:54:43,760
regional system used 108.99 million gallons per day, 65% of that water came

694
00:54:43,760 --> 00:54:50,200
through the Mary Road's pipeline and his John Michael mentioned, it was 70.8

695
00:54:50,200 --> 00:54:57,780
million gallons a day, the Nueces River provided 30% or 32.7 million gallons per

696
00:54:57,780 --> 00:54:59,920
Day, Lake Corpus Christ.

697
00:55:00,000 --> 00:55:27,280
Trustee, those taking directly from me up 5% or 5.4 million gallons per day. So you can always just take that top right hand number and use those percentages if you're curious to see the division of water over on the right hand side. The Mary Road's pipeline provided 51% of the city of Corpus Christi's water to Owen Stevens, which amounted to 55.6 million gallons a day.

698
00:55:27,280 --> 00:55:36,220
The 16% came from the Nueces River, so that was 17.4 million gallons a day.

699
00:55:36,980 --> 00:55:53,800
The San Patrice Hill, we took about half from each of the two sources, 13% from the Mary Road's Pipeline, which was 14.2 million gallons per day, and from the Nueces River 13.1 million gallons per day.

700
00:55:53,800 --> 00:56:01,480
And those two numbers, there's a number that's been kind of out there that we use about

701
00:56:01,480 --> 00:56:03,080
40 million gallons per day.

702
00:56:03,520 --> 00:56:10,180
The one thing that this graph really doesn't show, I guess the water that goes to GCGV

703
00:56:10,180 --> 00:56:12,380
comes out of the Owen Stevens plants.

704
00:56:12,380 --> 00:56:18,460
If you had a little arrow that you put around the right hand side, there'd be, for the month

705
00:56:18,460 --> 00:56:21,580
of the September 14.2 million gallons per day

706
00:56:21,840 --> 00:56:27,320
that went to GCGV via the Owens Stevens water treatment plant.

707
00:56:28,040 --> 00:56:33,320
And just again, that 108.99 million gallons a day

708
00:56:33,320 --> 00:56:38,400
equates to 122,000 acre foot back in August.

709
00:56:39,000 --> 00:56:42,080
The number was 116 million gallons per day.

710
00:56:42,580 --> 00:56:47,280
So the system used 130,000 acre foot per day.

711
00:56:47,280 --> 00:56:53,540
And if you think back that firm yield number was 189, but we're in the condition we're in right now

712
00:56:53,540 --> 00:56:57,840
It's the firm yield probably needs to be re-looked at in the future

713
00:56:59,740 --> 00:57:04,300
The other chart that's out there on the city website

714
00:57:07,260 --> 00:57:13,720
Point or around here use have to use the mouse mouse. Okay. Okay. I'll

715
00:57:18,620 --> 00:57:20,460
see it popping up now. That's okay

716
00:57:33,980 --> 00:57:38,060
The very top line, if you look at it, that's the demand of the system.

717
00:57:40,580 --> 00:57:46,960
So if you look at that, there's three humps there and they just duplicated the demand hump

718
00:57:46,960 --> 00:57:53,860
over those three years of the future, looking down from, I guess, January 24 on the left

719
00:57:53,860 --> 00:57:54,580
hand side.

720
00:57:55,140 --> 00:58:00,820
That's the water coming out of the eastern supplies, the Murray Road's pipeline, which is Colorado

721
00:58:00,820 --> 00:58:06,120
Carter River and Lake Texana, Western Supplies,

722
00:58:06,580 --> 00:58:09,760
Choke Canyon, above that, the darker blue, Choke Canyon,

723
00:58:10,480 --> 00:58:12,420
and Lake Corpus Christi.

724
00:58:13,060 --> 00:58:19,980
So as you move across to about January 25th,

725
00:58:21,400 --> 00:58:24,420
the Western Supplies jumped up.

726
00:58:25,040 --> 00:58:27,920
I think they were hoping for 75 million gallons a day.

727
00:58:27,920 --> 00:58:34,020
it's closer to 70 million gallons a day, so that decreased the amount that we were having

728
00:58:34,020 --> 00:58:41,620
to take out of the western reservoirs, which were going down fairly quick since we weren't

729
00:58:41,620 --> 00:58:50,740
getting any rain. Move across to July 25, the city started bringing on the water wells,

730
00:58:50,740 --> 00:58:58,120
the eastern water wells. They hope, I think if I can graph, if I remember right, it's showing

731
00:58:58,120 --> 00:59:03,400
about 11 million gallons a day that they're hoping to get from those. They aren't showing

732
00:59:03,400 --> 00:59:11,960
the eastern wells yet because they don't have the bed and banks permit. But the one item

733
00:59:11,960 --> 00:59:18,560
that it is of interest is you move along to the right hand side of that graph and see that

734
00:59:18,560 --> 00:59:25,820
it on May of 27 somewhere around there, the dark blue bar doesn't make it up to that

735
00:59:25,820 --> 00:59:32,680
demand line. So that's the first month that we're not going to, if the rains don't

736
00:59:32,680 --> 00:59:38,600
come, we're not going to be able to meet the demand. So if you move back to the left from

737
00:59:38,600 --> 00:59:47,000
that mark six months, that's where you'll get the information that's on the bottom part

738
00:59:47,000 --> 00:59:57,840
that graph November of 26. That's the 180 days prior to not being able to meet our demand based off

739
00:59:57,840 --> 00:59:58,820
current supplies.

740
01:00:00,500 --> 01:00:12,120
Some things that we, that's a graph that we can continue looking at, the city of Corpus Christi Updates it on a monthly basis that provides some very good information for planning.

741
01:00:15,280 --> 01:00:18,220
With some of these things that we're talking about,

742
01:00:23,090 --> 01:00:37,290
what San Patricia Municipal Water District, as it's been mentioned, we've been a contract customer, the city of Corpus Christi for about 75 years since our beginning. But,

743
01:00:37,290 --> 01:00:46,950
I guess that was in my mind was working well up until September the 2nd. A lot of things

744
01:00:46,950 --> 01:00:54,970
happened on September the 2nd. The inner harbor was put on hold. The inner harbor desalination

745
01:00:54,970 --> 01:01:06,570
plants put on hold. Prior to that happening, San Patricio's plan for moving forward into

746
01:01:06,570 --> 01:01:13,750
the future was the inner harbour plant was going to provide 30 million gallons a day and that would

747
01:01:13,750 --> 01:01:20,870
free up some of the western water supply that we could bring it down through our pipelines to

748
01:01:20,870 --> 01:01:31,510
our treatment plant with the inner harbour desiled plant put on hold that kind of changed the thought

749
01:01:31,510 --> 01:01:39,870
that we would have some water available from the western source but the plan was in her harbor

750
01:01:40,630 --> 01:01:47,910
rebuild our old 36-inch line that comes from the Noiseless River and at some point in the future

751
01:01:47,910 --> 01:01:55,070
as demand dictated the Le Quente desalination plan would go online from the city of Corpus Christi.

752
01:01:56,110 --> 01:02:02,590
That didn't come to fruition because of the events of September the 2nd came a parent

753
01:02:02,590 --> 01:02:09,510
that we needed to be thinking about some other options and these are the options that we're

754
01:02:09,510 --> 01:02:16,510
looking at right now and we had been looking at some of them prior to, we've been looking

755
01:02:16,510 --> 01:02:18,750
at all of them prior to September the 2nd.

756
01:02:18,750 --> 01:02:27,630
In the short term, we are working with some of our industrial partners to develop some

757
01:02:27,630 --> 01:02:34,090
brackish groundwater wells in the close to the vicinity of San Patricia of our location

758
01:02:34,090 --> 01:02:42,830
there between Gregory and Portland, talking to the Porta Corpus Christi to utilize groundwater

759
01:02:42,830 --> 01:02:44,730
water rights on some of their properties.

760
01:02:45,130 --> 01:02:47,730
So between Portocorpus, Christie, Oxy,

761
01:02:47,990 --> 01:02:50,350
Commerce, and San Patricia, municipal water district,

762
01:02:51,390 --> 01:02:53,350
we'll have about 6,000 acres.

763
01:02:54,910 --> 01:02:56,190
There's possibility.

764
01:02:56,710 --> 01:02:59,510
That's at 1.25 acre foot for acre.

765
01:03:00,110 --> 01:03:04,190
So per year, you could get about 6 million gallons a day.

766
01:03:04,550 --> 01:03:06,170
I think there's some hope out there

767
01:03:06,530 --> 01:03:10,410
that possibly get a temporary variance

768
01:03:10,410 --> 01:03:36,770
from the San Patricia County Groundwater Conservation District, but the intent for that water to be, to use it expeditiously would be to provide it to our industrial customers, hopefully then that if there was a curtailment put in place by the City of Corpus Christi, we could mitigate that curtailment across the board by putting some more water into our system.

769
01:03:36,770 --> 01:03:44,410
but thinking of that as a temporary option for us, not long-term, but just through this drought.

770
01:03:46,410 --> 01:03:54,310
Looking at more of a medium-term option out there, San Patricia has been talking with some

771
01:03:54,310 --> 01:03:56,310
of the LI Ranch people.

772
01:04:01,110 --> 01:04:04,010
I'll show the slide in a second, but there's a little,

773
01:04:04,010 --> 01:04:07,170
little a couple of rectangles that are in the middle of the

774
01:04:07,170 --> 01:04:13,010
evangel in Laguna. Through talking with them, we share some of

775
01:04:13,010 --> 01:04:18,950
the same, same thoughts about how to develop that. I think

776
01:04:18,950 --> 01:04:23,630
the intent would be to go ahead and put the water rights under

777
01:04:23,630 --> 01:04:28,910
reservation with San Frishio Municipal Water District for

778
01:04:28,910 --> 01:04:33,650
future development as demand dictates. Probably would make

779
01:04:33,650 --> 01:04:39,510
sense no more water than that would be that you might dedicate it to the

780
01:04:39,510 --> 01:04:50,590
municipal side of our business. Our cost model has a delineate between municipal

781
01:04:50,590 --> 01:04:55,910
and industrial and that may be a good option to consider for some of the

782
01:04:55,910 --> 01:04:59,250
municipal growth since it does not come in the chunks.

783
01:05:00,000 --> 01:05:27,980
Like the industrial development does. In the long term, seeing the events of September the second, in Corpus Christi, they had been moving forward with the Lequinto desalination plant. That permit, they have the water rights permit for that. The DCQ discharge permit is at the model being reviewed by the modelers in Austin now.

784
01:05:27,980 --> 01:05:36,820
So at some point decision will have to be made and I'll show that in a minute but I have

785
01:05:36,820 --> 01:05:44,160
sent a letter to the City of Corpus Christi requesting that we go into negotiations

786
01:05:44,160 --> 01:05:46,760
potentially to transfer those permits.

787
01:05:48,860 --> 01:05:54,860
Going back on those slides, just the brackish ground water, the Port of Corpus Christi

788
01:05:54,860 --> 01:06:00,140
He has that light green area, about 3,000 acres around the Campbell airport.

789
01:06:00,820 --> 01:06:10,980
It's continuous to some commerce property that I think that's oxys property in the pink,

790
01:06:11,460 --> 01:06:18,060
which is continuous to San Patricios in the blue, which is continuous to commerce property.

791
01:06:18,060 --> 01:06:25,220
there's about 6,000 acres there that we could develop with the intent of it being

792
01:06:25,220 --> 01:06:32,140
short-term brackish water that would need reverse osmosis but to go into the

793
01:06:32,140 --> 01:06:36,860
industrial side so that you're not dealing with the TCQ with their

794
01:06:36,860 --> 01:06:38,040
potable requirements.

795
01:06:41,560 --> 01:06:46,800
This is the graph that I mentioned. The LI Ranch is about 5,000

796
01:06:46,800 --> 01:06:51,140
and acres surrounded by the Evangel and Laguna property.

797
01:06:52,200 --> 01:06:56,960
We are talking with attorneys, landowners,

798
01:06:57,200 --> 01:07:01,800
far that and looking at that kind of in the medium term

799
01:07:01,800 --> 01:07:04,320
distance in the future, but probably going ahead

800
01:07:04,320 --> 01:07:07,400
and moving forward to go under contract

801
01:07:07,400 --> 01:07:09,320
with reservation rights for that.

802
01:07:11,400 --> 01:07:16,300
That's the letter that's out there that I sent to Corpus

803
01:07:16,300 --> 01:07:21,840
is Christy requesting the transfer of the permits

804
01:07:21,840 --> 01:07:24,420
for the Lakinta desalination plant.

805
01:07:27,630 --> 01:07:29,130
This is from the permits.

806
01:07:29,130 --> 01:07:32,530
Sorry, you know, it's turn, turn your head sideways,

807
01:07:32,950 --> 01:07:38,070
but the far left, right below that blue and green area

808
01:07:38,070 --> 01:07:40,510
is the San Patricia Municipal Water District.

809
01:07:41,310 --> 01:07:43,530
Our treatment facility is right above that.

810
01:07:43,790 --> 01:07:45,990
It's a maximal chemical property

811
01:07:45,990 --> 01:07:55,490
where the decal plant was proposed to be located coming out of the bottom right-hand corner

812
01:07:55,490 --> 01:08:02,110
of the blue green area, you'll see a dotted orange line and that if you follow it down

813
01:08:02,110 --> 01:08:08,950
that goes to the bay, that was the intake point for that decal plant, then if you go to

814
01:08:08,950 --> 01:08:15,510
the top left of the blue green area, there's a yellow line that goes up across the top

815
01:08:15,510 --> 01:08:21,630
and down to the bay that is the proposed discharge point for the decal plant.

816
01:08:22,510 --> 01:08:33,190
That plant was initially thought to be 30 million gallons a day, expandable to 40, depending

817
01:08:33,190 --> 01:08:41,550
on the city of Corpus Christi, develops things differently than San Patricio Municipal Water

818
01:08:41,550 --> 01:08:41,990
District.

819
01:08:41,990 --> 01:08:45,590
heard something about replacement costs. Well that's kind of the way

820
01:08:45,590 --> 01:08:51,210
the San Patricio Municipal Water District operates with replacement costs. Some of

821
01:08:51,210 --> 01:08:56,750
y'all may know that when GCGV came to town, they reimbursed the district

822
01:08:56,750 --> 01:09:03,110
about 60 million dollars for a 48-inch line that feeds their facilities. None of

823
01:09:03,110 --> 01:09:10,590
that hit our ratepayers. That was all on GCGV and we own the asset and we're

824
01:09:10,590 --> 01:09:18,630
under contract to provide water to GCGV for the 40 years and I think we would

825
01:09:18,630 --> 01:09:24,550
probably think similarly with the looking to decal plant that we would be

826
01:09:24,550 --> 01:09:30,190
looking at some potential new industry that might come there's nothing that

827
01:09:30,190 --> 01:09:35,050
says that has to be 30 to 40 million gallons a day it could be 10 million gallons

828
01:09:35,050 --> 01:09:41,810
today which would really I think be a good indicator of seeing how that how the

829
01:09:41,810 --> 01:09:46,250
bay would react to a desal facility. So I think there's some really good

830
01:09:46,250 --> 01:09:51,630
options out there for the future. It's probably I know some of some of y'all on

831
01:09:51,630 --> 01:09:57,670
the city council know right across the road. City Corpus Christi has

832
01:09:57,670 --> 01:09:58,950
That's an extra-torial jurisdiction.

833
01:10:00,000 --> 01:10:03,960
The ability to develop some industrial development agreements.

834
01:10:06,460 --> 01:10:08,600
This would be a water source that

835
01:10:08,600 --> 01:10:15,660
we would operate to provide far some of that growth that might come with that. And it could

836
01:10:15,660 --> 01:10:21,660
be industrial, depending on when it would come in the future, it may be driven by municipal

837
01:10:21,660 --> 01:10:24,020
growth. We just don't know what the future holds.

838
01:10:26,400 --> 01:10:30,000
I think with that, unless there's some

839
01:10:30,000 --> 01:10:35,000
questions or if the questions are at the end, I think that's all my presentation.

840
01:10:37,940 --> 01:10:38,560
Thank you, Brian.

841
01:10:38,720 --> 01:10:39,280
I appreciate that.

842
01:10:40,200 --> 01:10:42,580
Next up, we have Nation's River Authority.

843
01:10:42,740 --> 01:10:43,840
John, are you going to present?

844
01:10:45,000 --> 01:10:47,200
John Chisholm, Deputy Executive Director.

845
01:10:51,670 --> 01:10:52,450
Good evening, y'all.

846
01:10:53,310 --> 01:11:01,030
And I want to emphasize, I'm the new Executive Director, this is my third week, I'm really

847
01:11:01,030 --> 01:11:02,950
kind of learning by far.

848
01:11:03,890 --> 01:11:09,370
John's apologized as he couldn't be here with us tonight and I think we let Travis go on vacation so we have to do this.

849
01:11:10,850 --> 01:11:17,410
I'm here I want to tell you, and I may tell you things you already know so you're welcome to stop me or say yeah that's fine.

850
01:11:18,330 --> 01:11:21,650
And I'll try to answer any questions that you have when we get to that point.

851
01:11:22,370 --> 01:11:26,070
I want to tell you a little bit about the New Waisers River Authority some of these things I know you'll know.

852
01:11:26,690 --> 01:11:31,290
I want to tell you about the new water for South Texas project, Harbor Island.

853
01:11:32,670 --> 01:11:35,230
and we'll see if we can't make it through there.

854
01:11:36,030 --> 01:11:42,430
The Noises River Authority started in 1935, primarily a regional water source planning

855
01:11:42,430 --> 01:11:50,950
agency and we are governed by a 21-member board all appointed by the governor, and I'm

856
01:11:50,950 --> 01:11:52,810
sure you'll know Eric and many of the others.

857
01:11:55,750 --> 01:12:01,930
In R.A. is to protect, preserve, try to develop surface water projects.

858
01:12:02,810 --> 01:12:07,470
We are a part of region in and region L planning groups.

859
01:12:09,670 --> 01:12:13,770
I think we're the political sponsor for N and our participant in L.

860
01:12:16,170 --> 01:12:20,430
The new water for South Texas project, the Harbor Island.

861
01:12:21,130 --> 01:12:27,010
We do intend to procure this through a P3, a public private partnership.

862
01:12:27,670 --> 01:12:31,790
I'm sure many of the reasons that John pointed out is a good way to go.

863
01:12:33,650 --> 01:12:42,750
We are anticipating the, or designing the phase one to be a 100 MGD reverse osmosis plant.

864
01:12:42,970 --> 01:12:44,650
We believe RO is what we'll have to do.

865
01:12:44,650 --> 01:13:02,310
I think one of the things that makes this particular project interesting and unique and different from some of the others that have been proposed throughout the years, is the intake and the discharge will both be out in a little deeper water section of the Gulf.

866
01:13:02,750 --> 01:13:06,990
We're going to tunnel out from Harbor Island out into the Gulf.

867
01:13:07,350 --> 01:13:11,390
I think I remember it's going to be 30 or 45 feet deep, something like that.

868
01:13:11,390 --> 01:13:20,930
out there, and it's quite a diffuser structure that the discharge will go through.

869
01:13:21,510 --> 01:13:26,810
And I can tell you from experience, I used to work for the Acton Municipal Utilities

870
01:13:26,810 --> 01:13:33,430
District in Grandbury, Texas, and was part of a regional RO plant.

871
01:13:34,650 --> 01:13:39,490
Not everybody knows the brises for ever salty, and you can't drink it without going through

872
01:13:39,490 --> 01:13:47,390
diesel as well. And so we were part of a consortium of water utilities and cities and river authorities

873
01:13:47,390 --> 01:13:54,330
and we're a partner in that plant but one of the interesting things that I found was we did

874
01:13:54,330 --> 01:13:59,410
studies on the discharge because that was a concern about what it was going to do to water quality

875
01:13:59,410 --> 01:14:08,710
when you discharge the the reject brine back out into the water and the engineers designed a pretty

876
01:14:08,710 --> 01:14:15,210
simple diffuser type system, similar to what this one will have. A lot of water sampling

877
01:14:15,210 --> 01:14:22,590
was done around that diffuser array as the plant was in operation, and we found that

878
01:14:23,590 --> 01:14:29,350
the study's fine, they didn't let me do it. We found that like six to eight feet away

879
01:14:29,350 --> 01:14:35,330
from the diffuser, the water quality was no different than the ambient water quality in

880
01:14:35,330 --> 01:14:43,070
the lake. That's how quick this work. So I think this is a wise choice to go out into

881
01:14:43,070 --> 01:14:49,110
the Gulf and stay away maybe from the Bay or one of the inland places to offshore marine

882
01:14:49,110 --> 01:14:58,610
work. The P3, I'm sorry, I'm getting off topic. The P3 project is so that the P3 partner

883
01:14:58,610 --> 01:14:59,710
we'll design build.

884
01:15:00,000 --> 01:15:07,260
Finance, own and operate the system. There will be an option for, it can transfer over, we

885
01:15:07,260 --> 01:15:14,220
bought out by NRA at the right time. We anticipate our customers to have to do a 30-year take-or-pay

886
01:15:14,220 --> 01:15:23,880
water purchase agreement. And then part of the, part of the P3 partnership will also be

887
01:15:23,880 --> 01:15:26,020
to be getting the electrical distribution to the facility.

888
01:15:26,480 --> 01:15:28,180
That is one of the hurdles that we have to do.

889
01:15:35,100 --> 01:15:38,000
The product water pipeline, as you can kind of see it,

890
01:15:38,540 --> 01:15:40,760
where it's going, it's about six miles of pipeline

891
01:15:40,760 --> 01:15:44,640
to delivery point in Iran's past, this is our plan right now.

892
01:15:45,440 --> 01:15:47,700
It's described in the permits and approvals

893
01:15:47,700 --> 01:15:49,700
that the Port of Corpus Christi already had.

894
01:15:50,320 --> 01:15:52,680
And I think y'all are aware we already have a least in place

895
01:15:52,680 --> 01:15:57,080
with the port to transfer all this and let us use all these things that have been done before,

896
01:15:57,400 --> 01:16:02,820
and I'll get to that in just a minute. The next project as a part of this is the conveyance

897
01:16:02,820 --> 01:16:12,220
in the distribution pipeline, and boy, this is a big one, and the RFQ responses to the RFQ

898
01:16:12,760 --> 01:16:18,820
are due tomorrow. So we'll be evaluating that, and I anticipate or John anticipates that we'll

899
01:16:18,820 --> 01:16:25,380
pick multiple partners to help us with this, but this would be maybe up to an

900
01:16:25,380 --> 01:16:30,880
84-inch transmission line to take water from the delivery point north.

901
01:16:32,080 --> 01:16:38,120
Following roughly some route that would probably parallel, I'm guessing I-37.

902
01:16:40,480 --> 01:16:46,790
The pipeline would take water all the way up to, and I'm not kidding,

903
01:16:47,930 --> 01:16:52,230
North East, Vericannon, and out into the Hondo area as well.

904
01:16:52,870 --> 01:16:57,950
And we have reservation commitments from people in that area.

905
01:16:59,590 --> 01:17:00,990
So that will start soon.

906
01:17:01,150 --> 01:17:04,890
I think there will be a pump station at the plant and maybe two more along the way.

907
01:17:08,450 --> 01:17:13,590
The Harbor Island, I'm sure you're aware of this, 30 acres owned by the port.

908
01:17:13,590 --> 01:17:20,950
We have a 50-year lease agreement with the port, it can be extended, it gives us the

909
01:17:20,950 --> 01:17:26,130
right to build, own and operate, it includes all the pipeline easements around that we need,

910
01:17:26,690 --> 01:17:33,250
the improvements will ultimately, the improvements pipeline saying that will be owned by NRA, and

911
01:17:33,250 --> 01:17:38,010
the port has responsible for the facility permits and water rights because they already have.

912
01:17:38,610 --> 01:17:40,790
And those rights are going to convey to us through the lease.

913
01:17:42,630 --> 01:17:48,050
This is kind of where we are on some of the permitting, of course the lease and easement

914
01:17:48,050 --> 01:17:55,030
is in place between the port and NRA, the offshore water rights, this application is submitted,

915
01:17:55,030 --> 01:17:56,910
it's under technical review right now.

916
01:17:58,550 --> 01:18:04,490
The core of engineers has reviewed or is reviewing the

917
01:18:07,240 --> 01:18:12,720
environmental impact and then the discharge

918
01:18:12,720 --> 01:18:16,100
George Permit has been submitted earlier this year.

919
01:18:16,400 --> 01:18:20,380
Public notice has been complete with TCEQ,

920
01:18:21,020 --> 01:18:24,820
and we think we're gonna see the draft permit just any day now.

921
01:18:25,620 --> 01:18:28,980
And then the easements with GLO won't be submitted,

922
01:18:29,160 --> 01:18:31,320
but they'll be submitted before the end of this year.

923
01:18:35,330 --> 01:18:39,050
This is kind of the timeline of how things are gonna go.

924
01:18:39,610 --> 01:18:41,610
There's a little bit of adjustment I wanna tell you.

925
01:18:42,050 --> 01:18:44,270
The first thing you see there early fall,

926
01:18:44,270 --> 01:18:49,870
All the P3 procurement, we have not released the RFP out on the street yet.

927
01:18:50,250 --> 01:18:52,210
We do anticipate that to go out,

928
01:18:55,330 --> 01:18:56,870
John says by the end of these months.

929
01:18:57,210 --> 01:19:00,770
I'm thinking probably sometime in November not to contradict him, but

930
01:19:01,410 --> 01:19:09,310
the P3 procurement will go out and so that's the one thing that we'll have to shift probably a month down the road.

931
01:19:09,530 --> 01:19:11,770
But everything else is working very well.

932
01:19:11,770 --> 01:19:19,190
So we anticipate in the plan, the target is that we're going to be delivering water in

933
01:19:19,190 --> 01:19:19,750
29.

934
01:19:21,170 --> 01:19:27,230
I'm going to say late 29 but in up here we say 29 to 32 so phase one will be in 29.

935
01:19:31,180 --> 01:19:34,740
We have looked at other projects around the world.

936
01:19:35,240 --> 01:19:42,140
We're seeing that the average cost worldwide and John mentioned this, it's not cheap water.

937
01:19:42,140 --> 01:19:47,860
it's just not. It's 10 to 15 dollars per thousand gallons. That's what it's

938
01:19:47,860 --> 01:19:52,940
pretty much worldwide we're seeing. So far everything we're seeing is we're

939
01:19:52,940 --> 01:19:54,580
going to be in that range as well.

940
01:19:57,200 --> 01:19:59,840
We are looking at ways to mitigate that.

941
01:20:00,140 --> 01:20:11,060
This new Water for South Texas project has been designed to align with the, I'm forgetting

942
01:20:11,060 --> 01:20:15,980
the numbers now, Senate Bill 3, is that right? The just passing and that we're going to be voting on.

943
01:20:16,960 --> 01:20:24,020
It aligns well with that. It should be eligible for state participation loans.

944
01:20:24,020 --> 01:20:29,640
We're also pursuing some federal financing as well.

945
01:20:31,180 --> 01:20:37,420
The BLM has, Bureau of Land Management actually has a diesel program that they're looking

946
01:20:37,420 --> 01:20:43,540
for a project to fund or to help fund and so we'll be one of the few, I think, that we'll

947
01:20:43,540 --> 01:20:44,420
be ready to do that.

948
01:20:44,960 --> 01:20:51,100
Mr. Interjective, the council, just for your reference, we're currently paying $3.80 for

949
01:20:59,780 --> 01:21:05,280
We have close to 40 million gallons a day in reservation fees currently.

950
01:21:06,780 --> 01:21:15,240
The city of Corpus is meeting right this minute to consider a 50, 30 to 50 MGD commitment.

951
01:21:15,740 --> 01:21:21,880
I don't know if they'll do that or not, but it's on their agenda and today is the day that they're supposed to decide.

952
01:21:22,720 --> 01:21:34,860
For municipal customers like yourself, the reservation fee is 24, 40, an acre foot, and then for some industrial customers which we do have a few, it's basically double that.

953
01:21:41,460 --> 01:21:42,980
The advantages we really,

954
01:21:45,370 --> 01:21:52,550
once you can get your head wrapped around the expense of it, which we understand, this thing is expandable.

955
01:21:52,550 --> 01:21:58,210
We think we can go up to at least 450 million gallons a day, ultimately, on this site.

956
01:21:58,930 --> 01:22:00,930
We feel like it's environmentally sound.

957
01:22:02,070 --> 01:22:07,970
I think moving the intake and the discharge out into the Gulf is just a great move.

958
01:22:08,930 --> 01:22:13,230
And the infrastructure that we're talking about, the conveyance and the transmission lines

959
01:22:13,230 --> 01:22:19,710
going north, give us a lot of room for future growth in a lot of different areas of Texas.

960
01:22:21,330 --> 01:22:26,650
And we're getting inquiries from good word Kyle and view the and you know those kind

961
01:22:26,650 --> 01:22:32,190
of areas because they just don't have a lot of other places to go for water and they're

962
01:22:32,190 --> 01:22:37,750
interested in this about learning more about this so I think yeah that's all.

963
01:22:38,450 --> 01:22:39,470
John will be here if he could.

964
01:22:39,510 --> 01:22:40,530
He might have walked in behind me.

965
01:22:40,630 --> 01:22:45,030
I don't even know but we'll try to answer any questions that you may have when appropriate

966
01:22:45,030 --> 01:22:45,330
time.

967
01:22:45,950 --> 01:22:46,410
Thank you.

968
01:22:46,490 --> 01:22:47,050
Thank you for your time.

969
01:22:47,050 --> 01:22:48,130
I appreciate it.

970
01:22:53,470 --> 01:23:02,270
I'll take just a second here and switch the programs and then we'll have 7Cs at the

971
01:23:02,270 --> 01:23:02,870
other presentation.

972
01:23:03,090 --> 01:23:04,450
Rosanna, are you going to do that?

973
01:23:08,560 --> 01:23:10,580
Mayor, I do want to do just that while we've got a couple of minutes.

974
01:23:10,760 --> 01:23:17,280
I want to recognize Paul Chewles, who's here at CEO and founder of WaterCycle LLC.

975
01:23:18,260 --> 01:23:23,080
Paul and his wife, Elizabeth, are actually co-founders.

976
01:23:23,080 --> 01:23:27,340
It's pretty experts in water, and the good news is there are resident supportments, so

977
01:23:27,340 --> 01:23:31,320
we appreciate everything Paul has done to kind of help us along with this process as

978
01:23:31,320 --> 01:23:31,480
well.

979
01:23:32,400 --> 01:23:32,700
Thank you, Paul.

980
01:23:35,700 --> 01:23:36,240
Okay, Rosanna.

981
01:23:57,380 --> 01:23:59,760
Thank you very much for having us here.

982
01:24:00,300 --> 01:24:02,300
I just want to introduce myself quickly.

983
01:24:02,940 --> 01:24:08,260
My name is Rosanna Ramirez, the Business Development Director for Seven Seas for the State

984
01:24:08,260 --> 01:24:08,760
of Texas.

985
01:24:09,580 --> 01:24:13,660
I have a team of people with me that are from the area as well.

986
01:24:13,660 --> 01:24:22,760
By the way, I live at the 600 block of Broadway, so Portland resident, and this is very important

987
01:24:22,760 --> 01:24:23,400
for me.

988
01:24:24,020 --> 01:24:27,820
I'm learning a lot too, so thank you very much for having me here.

989
01:24:28,300 --> 01:24:29,400
I'm going to introduce my team.

990
01:24:29,820 --> 01:24:36,500
So back there is a very important name that you need to remember, and his name is Mark Wenley.

991
01:24:36,760 --> 01:24:39,620
He's our director for operations in Texas.

992
01:24:39,620 --> 01:24:48,200
Steve Walden. He is our technical consultant. Steve has many, many, many years of experience

993
01:24:48,200 --> 01:24:56,380
in the water treatment industry. He worked for 28 years with DCQ, so very much respected name

994
01:24:56,380 --> 01:24:58,080
in the wild treatment arena.

995
01:24:58,560 --> 01:24:59,620
Jerry Arnold, our

996
01:25:00,000 --> 01:25:05,880
This is the development consultant and myself, of course. So, I'm going to go quickly about

997
01:25:05,880 --> 01:25:15,760
who 7C's is and why are we here. So, who is 7C's water group? So, we treat water. This

998
01:25:15,760 --> 01:25:21,540
is, we are at water treatment company only. We have about 22 plants in the Caribbean that

999
01:25:21,540 --> 01:25:29,260
we treat, see water and make portable water for the citizens in the Caribbean islands. 7C's

1000
01:25:29,260 --> 01:25:31,160
was founded in 1997.

1001
01:25:32,240 --> 01:25:35,380
And it was founded to bring water to the Korean allies.

1002
01:25:35,540 --> 01:25:37,640
As you may imagine, they don't have a lot of fresh water.

1003
01:25:38,700 --> 01:25:42,720
So this alienation was a way to bring water

1004
01:25:42,720 --> 01:25:45,200
and to bring more development into the islands.

1005
01:25:45,980 --> 01:25:49,120
Currently, the US Virgin Islands, for example,

1006
01:25:49,400 --> 01:25:52,600
have drink water only from seven seas.

1007
01:25:52,780 --> 01:25:54,440
We are the only source of drinking water

1008
01:25:54,440 --> 01:25:56,440
for all the US Virgin Islands.

1009
01:25:56,440 --> 01:26:01,780
in some of the BVLNs as well, or British Virgin Islands.

1010
01:26:02,860 --> 01:26:05,220
We are the provider of water as a service,

1011
01:26:05,500 --> 01:26:07,260
that's a trademark of seven seas.

1012
01:26:07,980 --> 01:26:09,460
Let me know if it's someone else who uses it

1013
01:26:09,460 --> 01:26:10,380
because it's mine.

1014
01:26:11,480 --> 01:26:16,760
And we have experienced both local and state ground water regulations

1015
01:26:17,380 --> 01:26:19,080
working with state agencies.

1016
01:26:19,740 --> 01:26:23,160
That's why we have, we have, take it, the expense

1017
01:26:23,160 --> 01:26:33,200
and I guess the foreknowledge or for preparation to hire people like Steve to help us with state regulatory issues.

1018
01:26:36,330 --> 01:26:37,610
So what is water as a service?

1019
01:26:40,530 --> 01:26:48,610
So in a nutshell, water as a service is seven c's comes in with design and engineer.

1020
01:26:48,610 --> 01:26:57,090
We finance, we operate and maintain the projects that we engage on.

1021
01:26:58,170 --> 01:27:08,630
So we bring the full financial investment to the projects from the beginning.

1022
01:27:09,430 --> 01:27:16,670
Our execution is between 12 and 24 months and that's not because of how I get this question

1023
01:27:16,670 --> 01:27:22,170
ask a lot, and why is that? It's a little long. It's actually not because of how quickly

1024
01:27:22,170 --> 01:27:27,150
one of these plants can be built, but a lot of the time that's about how long it takes

1025
01:27:27,150 --> 01:27:35,070
to obtain the permits. So, the permit process is what delimits how long these plants are

1026
01:27:35,070 --> 01:27:43,550
going to be built. Of course, we do the plant operations. We do training, staffing, and maintenance

1027
01:27:43,550 --> 01:27:44,910
for the life of the projects.

1028
01:27:46,350 --> 01:27:48,550
We've been doing this since 1997,

1029
01:27:49,110 --> 01:27:52,470
operating all of the projects we engaged in.

1030
01:27:53,270 --> 01:27:56,770
Mark is responsible for Texas and the Caribbean,

1031
01:27:56,950 --> 01:27:59,310
some of the alias in the Caribbean as well.

1032
01:28:00,030 --> 01:28:03,270
He has many, many years since the 90s

1033
01:28:03,270 --> 01:28:05,470
in operation experience.

1034
01:28:06,470 --> 01:28:09,590
And he is the one that is in charge of training the operators.

1035
01:28:10,530 --> 01:28:18,770
So, one of the, get asked how you can ensure that you can run a plant for 30 years, where

1036
01:28:18,770 --> 01:28:21,770
we've been doing it for more than 30 years, in operating the same plants.

1037
01:28:22,970 --> 01:28:30,210
Like I mentioned, we provide all the capital upfront for the project, costing the customers

1038
01:28:30,210 --> 01:28:39,050
zero up front for the parts that seven is engaged in and in part of the water as a service

1039
01:28:39,790 --> 01:28:46,950
model is that we deliver a guarantee quantity and quality of the water. If the quantity and

1040
01:28:46,950 --> 01:28:52,210
quality is not there, we don't get paid. So water has to be delivered at a quantity and quality

1041
01:28:52,210 --> 01:28:53,290
that's contracted.

1042
01:28:57,970 --> 01:29:01,810
So a little bit about brackish water and why brackish water? I get

1043
01:29:01,810 --> 01:29:05,510
I asked that question a lot, imagine that I do this all over the state.

1044
01:29:06,550 --> 01:29:15,330
So by TWAEDB, there's a lot of reservoirs of brackish groundwater in Texas.

1045
01:29:16,310 --> 01:29:20,370
That's mostly unused, and you can imagine why because it's pretty salty.

1046
01:29:20,810 --> 01:29:26,730
We can drink salty water, we can water our crops, we can water our cattle.

1047
01:29:26,730 --> 01:29:32,970
So, that is something that right now, and I heard someone say, you know, back in the

1048
01:29:32,970 --> 01:29:40,550
90s, whenever they explore desalination, it was expensive, it was, and it was something

1049
01:29:40,550 --> 01:29:47,430
that could not be considered as a viable source of water, as a viable way to obtain potable

1050
01:29:47,430 --> 01:29:47,770
water.

1051
01:29:48,370 --> 01:29:49,490
Now, it's a little bit different.

1052
01:29:49,490 --> 01:29:55,630
that curve of how much decalinate water cost has curved down.

1053
01:29:56,470 --> 01:29:59,510
There's new technologies, new ways that you can do things.

1054
01:30:00,000 --> 01:30:17,460
And the main source of that expense, which is power, has diminished, so plans have become more efficient. And that's why we can bring the salination a little easier and the more cost effective. The other thing that

1055
01:30:17,460 --> 01:30:22,540
So as the SNC has done to be able to bring the goals down is to standardize the operation.

1056
01:30:23,360 --> 01:30:31,280
So as standardizing the operation, it's standardizing how we maintain and how we treat our systems as a system as a network utility.

1057
01:30:31,720 --> 01:30:33,540
We've been able to bring that price down.

1058
01:30:34,480 --> 01:30:37,460
So when I say network utility, what does that mean?

1059
01:30:38,040 --> 01:30:43,980
That means that all of the plans that SNC's runs are part of that network utility.

1060
01:30:43,980 --> 01:30:52,640
And we keep the parts for those plants, pumps, controllers, meters, you name it.

1061
01:30:52,720 --> 01:30:56,260
We keep the critical path parts on hand.

1062
01:30:56,840 --> 01:31:02,820
So if something breaks, it doesn't matter if it's in Alice Texas or is in Aruba, it's

1063
01:31:02,820 --> 01:31:05,040
the same part, the same pump.

1064
01:31:05,540 --> 01:31:08,720
So it gets sent to whatever we need it.

1065
01:31:09,400 --> 01:31:15,280
And I have a story on Alice that was last week, so I can tell you that later.

1066
01:31:16,820 --> 01:31:18,080
So why brackish?

1067
01:31:18,220 --> 01:31:24,960
So it's plentiful, it's a reliable source of water, has lower saline than seawater.

1068
01:31:25,180 --> 01:31:27,880
That's why brackish plants are less costly to build.

1069
01:31:29,920 --> 01:31:35,660
I was given a presentation today in just to give you an idea, I used my hands and I said,

1070
01:31:35,740 --> 01:31:37,360
okay, salty water is up here.

1071
01:31:38,300 --> 01:31:44,180
brackish waters up here. You need very strong materials for a sea water

1072
01:31:44,180 --> 01:31:49,380
desalination plan because the salinity content in the water. If you think

1073
01:31:49,380 --> 01:31:53,360
about it, you brackish groundwater is less salty, so you don't need those

1074
01:31:53,360 --> 01:31:57,320
strong, the stronger materials. So the cost of building a brackish desalination

1075
01:31:57,320 --> 01:31:59,400
plan is much lower, which makes sense.

1076
01:32:03,750 --> 01:32:11,150
And what is brackish versus

1077
01:32:11,150 --> 01:32:12,270
base desalination process.

1078
01:32:13,050 --> 01:32:16,310
So basically we use reverse osmosis to desalinate water.

1079
01:32:16,450 --> 01:32:18,410
If you've never seen a reverse osmosis membrane,

1080
01:32:18,630 --> 01:32:19,710
it looks like a sheet of paper.

1081
01:32:20,430 --> 01:32:22,850
And basically it's a sheet of paper that's rolled up,

1082
01:32:23,050 --> 01:32:24,110
or it's not a sheet of paper.

1083
01:32:24,250 --> 01:32:25,650
It looks like a sheet of paper that's rolled up.

1084
01:32:26,830 --> 01:32:29,490
And it basically filters the water

1085
01:32:29,490 --> 01:32:30,990
and the components of the water from,

1086
01:32:31,190 --> 01:32:33,090
separates the components of the water

1087
01:32:33,090 --> 01:32:35,510
from portable water to the discharge.

1088
01:32:36,450 --> 01:32:40,250
It's proven, it has been used many, many, many times

1089
01:32:40,250 --> 01:32:45,530
all over the world is scalable and it's energy efficient, like I was telling you back in the

1090
01:32:45,530 --> 01:32:53,370
90s, it was a different story. I started as a row water operator back in 2008. That's how

1091
01:32:53,370 --> 01:32:58,770
I started water treatment and I never deviated from water. I've been doing water treatment since

1092
01:32:58,770 --> 01:33:04,510
and a lot of improvements has come even from 2008. And of course it's suitable for municipal

1093
01:33:06,730 --> 01:33:13,370
I'm not going to go. This is just the Gulf Coast aquifer, just a little snapshot of how

1094
01:33:13,370 --> 01:33:19,310
much water is in there. This is on the TWDB website. Just wanted to show you how much

1095
01:33:19,310 --> 01:33:25,260
the numbers look big, but that's not the TWDB website.

1096
01:33:27,690 --> 01:33:29,850
So a little bit on the city of

1097
01:33:29,850 --> 01:33:31,610
All is in the business model.

1098
01:33:32,490 --> 01:33:36,430
So like I mentioned before, seven seas takes care of all the capital all lay.

1099
01:33:36,990 --> 01:33:41,870
So the city of all is, the plan itself was built with funds from seven seas.

1100
01:33:42,050 --> 01:33:46,890
They did not spend a dime on any of that plan.

1101
01:33:47,510 --> 01:33:49,670
It's a turn key worry free solution.

1102
01:33:51,130 --> 01:33:57,650
I'm going to tell you the little story, I don't know if Mark is going to be too happy about it, but he was the one that solved it.

1103
01:33:57,650 --> 01:34:00,810
But a week and a half ago, one of the pumps

1104
01:34:00,810 --> 01:34:04,010
at the brackish desalination plant in Alice went out.

1105
01:34:04,570 --> 01:34:07,650
All of the blue things break and the pump went out.

1106
01:34:08,330 --> 01:34:11,010
I was sitting at the Bayes and Histories

1107
01:34:11,010 --> 01:34:16,110
or Bayes Foundation banquet with the City of Alice Major.

1108
01:34:16,830 --> 01:34:20,390
And I asked him, oh, hey, did you know that your plant,

1109
01:34:20,570 --> 01:34:22,490
your plant, one of the pumps went out.

1110
01:34:23,490 --> 01:34:25,070
And she turned pale a little bit,

1111
01:34:25,070 --> 01:34:28,830
And then she thought back, and she was like, no, I did it.

1112
01:34:29,210 --> 01:34:31,050
And it was a good, because that's intention.

1113
01:34:31,610 --> 01:34:31,990
That's intention.

1114
01:34:32,170 --> 01:34:34,130
You'll never find out whenever we have a problem.

1115
01:34:35,430 --> 01:34:39,490
And so that was more than $100,000 pump

1116
01:34:40,370 --> 01:34:42,650
that is included in the water right.

1117
01:34:43,730 --> 01:34:46,570
So you only pay for the services delivered.

1118
01:34:47,750 --> 01:34:51,190
We have work class engineering and field service support,

1119
01:34:51,470 --> 01:34:53,450
that's one of the reasons why Mark is here.

1120
01:34:53,450 --> 01:34:57,590
the contrast guarantee quality in quantity.

1121
01:34:58,030 --> 01:34:59,950
If we cannot deliver quality in

1122
01:35:00,000 --> 01:35:05,480
In quantity, we don't get paid. So it doesn't incentive for us to maintain the plant's

1123
01:35:05,480 --> 01:35:10,920
epic performance. Economies of scale are reflected in the plants. The bigger the plant, the better

1124
01:35:10,920 --> 01:35:20,160
the economy of scale. We have, of course, top notch EHS and ESG metrics for our facilities.

1125
01:35:21,560 --> 01:35:27,680
We have, of course, we invest in materials because we run the plants and they have to run

1126
01:35:27,680 --> 01:35:33,400
a big performance if not we don't get paid. So we make sure the materials that we use

1127
01:35:33,400 --> 01:35:40,280
from the very beginning are the best ones. We don't sell the plant and then leave it.

1128
01:35:40,660 --> 01:35:49,320
We have to run it. There's never unforeseen cost because everything in the plant has been

1129
01:35:49,320 --> 01:35:54,600
planned to run for the 30 years and like I said the mayor of all is surprised that she

1130
01:35:54,600 --> 01:35:57,440
actually went through a crisis without even knowing it.

1131
01:36:01,650 --> 01:36:02,990
How do we deliver our projects?

1132
01:36:04,130 --> 01:36:05,970
So we start with project management,

1133
01:36:06,630 --> 01:36:08,810
and this is all the different step and different areas

1134
01:36:08,810 --> 01:36:10,410
of how we deliver the projects.

1135
01:36:11,350 --> 01:36:12,890
We have, of course, a technical staff.

1136
01:36:13,830 --> 01:36:15,110
We have construction management.

1137
01:36:16,390 --> 01:36:18,350
We do the regulation in our permitting.

1138
01:36:18,550 --> 01:36:21,150
We work with the CD to do that

1139
01:36:21,150 --> 01:36:24,190
and work together to do that with the engineer of record.

1140
01:36:25,510 --> 01:36:29,690
That's why we hired people from T.C.Q to help us navigate through those issues.

1141
01:36:30,930 --> 01:36:34,790
Of course, we do all the procurement, there's no, we handle the procurement to build

1142
01:36:34,790 --> 01:36:38,270
in the plant, the shipping and logistics, this is pretty self explanatory.

1143
01:36:39,090 --> 01:36:41,990
And we do continued training for the City of Alice.

1144
01:36:42,190 --> 01:36:46,730
We hire the people that were some of the operators from the plant at the City of Alice.

1145
01:36:47,310 --> 01:36:51,590
This goes, of course, the City of Alice is going to rely about 95% of the water is going

1146
01:36:51,590 --> 01:36:53,870
to be brackish desolimation water.

1147
01:36:55,130 --> 01:36:59,270
So their plant is going to be just running to maintain it.

1148
01:36:59,990 --> 01:37:01,330
Their surface water plant.

1149
01:37:02,170 --> 01:37:04,370
And we hire them, we send them about a month

1150
01:37:04,370 --> 01:37:05,990
to the Caribbean to be trained.

1151
01:37:06,850 --> 01:37:08,190
We do not build custom plants.

1152
01:37:09,570 --> 01:37:12,050
And let me tell you why, because usually whenever

1153
01:37:12,050 --> 01:37:15,870
you go and buy custom, custom means expensive.

1154
01:37:16,490 --> 01:37:19,070
You go get a custom car and put some organic car

1155
01:37:19,070 --> 01:37:20,370
and get some custom things.

1156
01:37:20,370 --> 01:37:22,990
You're going to get expensive, nice looking car.

1157
01:37:23,910 --> 01:37:29,170
We want something that is going to be reliable, is going to be responsive, is going to be there

1158
01:37:29,170 --> 01:37:33,810
for 30 years and it's not going to go anywhere, but it's doable, it's actually affordable.

1159
01:37:35,890 --> 01:37:42,090
The things that we do to that is, again, an offers radio, been doing it for 30 years and

1160
01:37:42,090 --> 01:37:45,830
we have improved the process year after year after year.

1161
01:37:49,430 --> 01:37:53,690
So how do we go into delivering a project?

1162
01:37:54,490 --> 01:37:56,350
So we start with initial discussions.

1163
01:37:56,750 --> 01:37:58,430
What do you need?

1164
01:37:59,790 --> 01:38:02,650
We're not going to tell, I'm never going to come to a city

1165
01:38:02,650 --> 01:38:05,510
or to a municipality or a customer and say, hey,

1166
01:38:05,590 --> 01:38:06,690
let me tell you what you need.

1167
01:38:07,650 --> 01:38:09,270
Because you need this and this and this.

1168
01:38:09,490 --> 01:38:11,190
Nobody knows the city better than you do.

1169
01:38:11,530 --> 01:38:14,490
Although I live in Portland, so I may have a vote.

1170
01:38:15,550 --> 01:38:16,970
But we're never going to do that.

1171
01:38:16,970 --> 01:38:19,670
because nobody knows the city better than the council

1172
01:38:19,670 --> 01:38:20,750
better than the city manager.

1173
01:38:22,050 --> 01:38:25,770
We lay out the distribution system in the ideal location

1174
01:38:25,770 --> 01:38:30,490
for the seawater or brackish water or plant.

1175
01:38:31,890 --> 01:38:34,430
And this is all at the beginning, a front.

1176
01:38:34,990 --> 01:38:37,130
Remember, there's no contract, there's no signature,

1177
01:38:37,710 --> 01:38:40,650
there's no at a penny lay down at this time.

1178
01:38:43,190 --> 01:38:50,570
The, we go through the brackish hydrology study, that's commissioned by seven C's.

1179
01:38:52,990 --> 01:38:58,490
Whenever that happens, we come back with a price based on conservative estimates.

1180
01:38:58,830 --> 01:39:05,470
Basically, what we do, we look at the area, the hydrology in the area, and we give you a price

1181
01:39:05,470 --> 01:39:05,730
range.

1182
01:39:05,730 --> 01:39:16,870
We say, look, with what we know now, you prices from this to this is not going to be from $10

1183
01:39:16,870 --> 01:39:23,070
to $24. It's going to be a very tight price range because we are very confident that we know

1184
01:39:23,070 --> 01:39:28,650
what's down there. That's why we have people like Steve Walden that help us with that.

1185
01:39:29,770 --> 01:39:35,130
Then, at that point, whenever we have that price range, we sign the water services agreement.

1186
01:39:37,050 --> 01:39:40,590
When that happens, as a contract, when that happens, we go full throttle.

1187
01:39:41,050 --> 01:39:43,510
We get funded for projects in about four weeks.

1188
01:39:44,310 --> 01:39:49,570
So in four weeks, we have all the funds to start working on drilling a test well.

1189
01:39:50,250 --> 01:39:54,070
Whenever we drill a test well, a test well is going to tell us exactly what's down there.

1190
01:39:55,750 --> 01:39:57,390
And that's when you know that you know.

1191
01:39:58,410 --> 01:39:59,890
Before that, you have goodest.

1192
01:40:10,590 --> 01:40:30,190
Let's say the pricing, we stick the straw down there, we drill the well, and the water comes out horrendous, is 10 times saltier than we thought it was going to be, we blend Steve, and we say, you know what? Now, the prices are not going to be, you know what?

1193
01:40:30,190 --> 01:40:34,010
what we told you is going to be 15% higher.

1194
01:40:35,170 --> 01:40:39,230
At that point, our contracts, and you can read it in the contracts that are out there as well.

1195
01:40:40,430 --> 01:40:42,550
At that time, our contracts have an out.

1196
01:40:43,510 --> 01:40:49,450
At that point for seven cities and for our customers, we can say no.

1197
01:40:49,890 --> 01:40:51,590
We can say no. What? Thank you very much.

1198
01:40:52,090 --> 01:40:55,790
Nice to have done a business with you, but we stop here.

1199
01:40:56,930 --> 01:41:05,470
We take that drilling of that well as a risk of doing business because we don't want an unhappy customer.

1200
01:41:05,870 --> 01:41:09,570
We cannot afford in Texas to have an unhappy city.

1201
01:41:10,270 --> 01:41:13,350
Why? Because you all talk to each other and you all know each other.

1202
01:41:13,450 --> 01:41:17,410
We're going to TML next week and we know that everybody's going to talk.

1203
01:41:17,930 --> 01:41:19,490
That's why we have a great story in Alice.

1204
01:41:20,110 --> 01:41:27,670
Alice is the success story for seven seas in Texas is the first one and you can go talk

1205
01:41:27,670 --> 01:41:30,790
to them and ask what has happened there and how happy they are.

1206
01:41:31,370 --> 01:41:36,350
They are the only ones that can water everything, they can wash everything, they can do whatever

1207
01:41:36,350 --> 01:41:37,110
they want with the water.

1208
01:41:39,030 --> 01:41:45,770
So at that point the price is finalized, then we begin construction of the production wells.

1209
01:41:46,350 --> 01:41:54,330
We start working on the permits, as you know, you cannot permit a well if it's not real, so that's whenever you start drilling and permitting the wells.

1210
01:41:55,030 --> 01:41:59,750
At that point also we hire the people that are going to be able to operate the plant.

1211
01:42:00,870 --> 01:42:03,830
The construction of the plant in Alice took six months.

1212
01:42:05,050 --> 01:42:09,390
The actual permitting in everything else is what took the longest.

1213
01:42:10,510 --> 01:42:14,470
So in six months there's a plant that our operators can start practicing it.

1214
01:42:16,570 --> 01:42:22,290
Then it comes a commissioning and then the delivery of a contracted quality and quantity

1215
01:42:22,290 --> 01:42:23,130
and quality of water.

1216
01:42:23,730 --> 01:42:28,490
And that's whenever you pay your first bill when water starts running.

1217
01:42:30,050 --> 01:42:34,490
And that's a kind of, in a nutshell, what the water services.

1218
01:42:36,960 --> 01:42:38,920
So what's the future of the salination in Texas?

1219
01:42:38,920 --> 01:42:47,380
So, it can be a reliable source of water, groundwater, and when I'm talking, I'm talking

1220
01:42:47,380 --> 01:42:48,080
groundwater.

1221
01:42:48,780 --> 01:42:53,980
Texas has many alternatives for seawater and brackish groundwater desalination and

1222
01:42:53,980 --> 01:42:54,300
source.

1223
01:42:55,420 --> 01:43:01,920
The P3 business model can help communities without funding up and also with speed.

1224
01:43:01,920 --> 01:43:08,620
The state of Texas has made big strides into funding water projects as we know

1225
01:43:08,620 --> 01:43:15,180
Proposition 4 is coming up but we need them today actually we need them we

1226
01:43:15,180 --> 01:43:21,160
needed them five years ago but that's another story we we can help that

1227
01:43:21,160 --> 01:43:29,700
fund fund that gap in a short amount of time and of course we offer resiliency

1228
01:43:29,700 --> 01:43:33,460
see groundwater is something that's been there for a long time and I'm going to show you.

1229
01:43:34,620 --> 01:43:41,100
And this alienation applies plans can provide our reliable source of water and water supply.

1230
01:43:44,320 --> 01:43:45,460
And that's all I have.

1231
01:43:45,740 --> 01:43:47,120
Is there any questions, comments?

1232
01:43:49,320 --> 01:43:52,140
That's our last presenter if you would like to ask questions now.

1233
01:43:52,740 --> 01:43:53,800
All right.

1234
01:43:55,160 --> 01:43:56,060
That was ready to go.

1235
01:43:56,340 --> 01:43:56,440
Yeah.

1236
01:43:57,120 --> 01:43:58,580
So what are you selling water?

1237
01:43:59,060 --> 01:44:00,940
What's the right you're selling to Alice right now?

1238
01:44:01,620 --> 01:44:05,980
The rate we're selling to Alice is less than $3 per thousand dollars.

1239
01:44:07,580 --> 01:44:09,700
I don't know the exact number.

1240
01:44:10,560 --> 01:44:12,300
That is less than $3 per thousand dollars.

1241
01:44:13,280 --> 01:44:14,740
And that's public information.

1242
01:44:19,640 --> 01:44:21,840
Most of the questions are to these other folks.

1243
01:44:22,340 --> 01:44:23,920
Any other questions for Rosanna?

1244
01:44:25,200 --> 01:44:27,640
I just want to, I

1245
01:44:29,760 --> 01:44:33,840
guess state our intentions with seven scenes and maybe rainy paraphrase it better.

1246
01:44:33,840 --> 01:44:44,540
But Rosanna is a Portland resident and she cares deeply about our community and she reached out to assist us in our future water potential future water needs.

1247
01:44:44,980 --> 01:44:58,560
We've had a long discussion with seven C's and they know that we will 99% we will go out for request for qualifications and we will seek the best qualified candidate to help us if we go down this path.

1248
01:44:58,560 --> 01:44:59,980
and then...

1249
01:45:00,000 --> 01:45:21,180
We understand that, and they encourage that. So thank you again for being here and giving us the information that will help us make the right decision for Portland. And, like I said, I live here. So please don't hesitate to reach out. Feel free to reach out through Hathier. Thank you. Thank you.

1250
01:45:21,180 --> 01:45:26,560
in terms of permits or received or what's the current for issues.

1251
01:45:27,140 --> 01:45:31,420
How long before basically you're able to provide water?

1252
01:45:32,460 --> 01:45:37,580
So if the taking the example of Alice, if the plant is built, that's not very far.

1253
01:45:38,180 --> 01:45:39,240
How long do you take us, Mark?

1254
01:45:57,080 --> 01:46:02,160
And there's also a schedule to introduce new water into a water system.

1255
01:46:02,160 --> 01:46:07,880
So you have to do it gradually to not impact or negatively impact the

1256
01:46:08,600 --> 01:46:14,500
Distribution system. So we had that schedule built and worked with the engineer of record and

1257
01:46:14,500 --> 01:46:20,280
In the city of Alice to introduce the new water into the system. By the way, our old water is that quality water

1258
01:46:20,980 --> 01:46:26,460
So so that's that's one of the reasons why you have to be careful when introducing. It's a great water

1259
01:46:26,460 --> 01:46:32,100
I think you know city of Alice is a very interesting example and

1260
01:46:34,160 --> 01:46:36,320
because I'm a friend with the mayor there.

1261
01:46:37,020 --> 01:46:42,580
I have been involved in their project from early 2019.

1262
01:46:43,160 --> 01:46:47,100
Kathleen Weiss and Berger and I actually went down to the city of Alice, and

1263
01:46:47,100 --> 01:46:48,980
they actually had a big presentation.

1264
01:46:49,260 --> 01:46:51,560
It was a full day presentation just for the two of us.

1265
01:46:51,960 --> 01:46:56,520
And that's where I first met Bill Norris, who was their engineer and

1266
01:46:56,520 --> 01:47:01,760
Bill is now retired, but he's in private practice now his own business.

1267
01:47:01,760 --> 01:47:06,320
and he is very instrumental in the Texas D Salis Association.

1268
01:47:06,660 --> 01:47:11,240
So he is also here tonight and we fully intend to type every expert, you know,

1269
01:47:11,300 --> 01:47:13,640
that we can as we make these decisions.

1270
01:47:14,560 --> 01:47:15,980
And so, thank you Bill for that.

1271
01:47:16,380 --> 01:47:22,760
And I know we've had a lot of discussions on what we may do differently or what we need

1272
01:47:22,760 --> 01:47:24,940
to continue to do in the city of Dallas.

1273
01:47:25,200 --> 01:47:30,200
So, they were the processor, they were the prototype and I know that we have a lot of things

1274
01:47:30,200 --> 01:47:32,960
that we learned from that and very appreciative of that opportunity.

1275
01:47:34,300 --> 01:47:35,420
Thank you.

1276
01:47:35,420 --> 01:47:36,520
Thank you.

1277
01:47:37,160 --> 01:47:38,400
All right, Bill.

1278
01:47:38,520 --> 01:47:39,060
Who's who?

1279
01:47:39,360 --> 01:47:40,220
John Michael.

1280
01:47:40,420 --> 01:47:40,900
John Michael.

1281
01:47:42,440 --> 01:47:44,160
Mr. Michael, please step forward.

1282
01:47:46,620 --> 01:47:54,100
You made a point that I definitely agree with about the notion of rate modeling being something

1283
01:47:54,100 --> 01:47:55,580
that's going to have to really be looked at.

1284
01:47:55,580 --> 01:48:02,500
And I want to share some information that I extracted from the St.

1285
01:48:02,620 --> 01:48:04,220
Christian County tax collector.

1286
01:48:04,500 --> 01:48:07,360
It took her about two weeks to compile all the data.

1287
01:48:08,160 --> 01:48:09,920
But I got the data this afternoon.

1288
01:48:09,920 --> 01:48:13,360
And the fact is that, you know, as we know, industry,

1289
01:48:13,440 --> 01:48:16,040
according to Brian Williams, uses 70% St.

1290
01:48:16,180 --> 01:48:17,500
Christian County's water.

1291
01:48:19,120 --> 01:48:23,440
And, you know, that's where the majority of the growth is projected to be.

1292
01:48:23,440 --> 01:48:30,920
but if you go back and look at the tax benefits that San Patricio County

1293
01:48:30,920 --> 01:48:38,320
industry has received since 2010. From tax abatements and 312 agreements and

1294
01:48:38,320 --> 01:48:42,940
313 agreements with all of the various taxing entities and this does not

1295
01:48:42,940 --> 01:48:49,500
include future look which is even larger than the past. San Patricio County

1296
01:48:49,500 --> 01:48:57,700
industry has benefited to the tune of $1 billion, $50 million in relief from local taxes.

1297
01:48:59,240 --> 01:49:06,640
And that number does not include the abatement agreements that are in place that will relieve

1298
01:49:06,640 --> 01:49:12,880
them even further as these incredibly large industrial pieces get built.

1299
01:49:12,880 --> 01:49:42,100
And so, the notion that we've undervalued water and that we need to make sure that as we invest in water infrastructure, I think that collectively, regionally, it's important that industry and governments understand the benefits and tax relief that has been essentially, when you would bake taxes for one entity,

1300
01:49:42,100 --> 01:49:47,580
you put the tax burden on others and that's it's a statewide impact but it is

1301
01:49:47,580 --> 01:49:54,000
local that's the number local to this county that's the number of taxes that

1302
01:49:54,000 --> 01:49:59,680
our county industries have not had to pay it's in favor of that since 2010

1303
01:50:00,000 --> 01:50:29,160
And then the numbers have grown as we've gone forward. And so, how would a new model, costing model, be implemented with respect to long-term regional water investment? Do you have any ideas how that might work? Well, you know, I mean, that's, that's the challenge. What you just said about industry coming to San Pat County is so true. I remember when the total assess value of San Francisco County was like, I don't know, $2 billion or something, that sounds like a big number.

1304
01:50:29,160 --> 01:50:31,480
It was $3 billion when I got on the Texas support.

1305
01:50:31,740 --> 01:50:32,860
It wasn't much, right?

1306
01:50:33,060 --> 01:50:36,920
And so the drainage district didn't have a whole lot to operate on.

1307
01:50:37,080 --> 01:50:38,540
Now they have the surplus.

1308
01:50:39,500 --> 01:50:46,600
So you got to balance jobs, growth, income, investment into your community.

1309
01:50:46,600 --> 01:50:48,540
All those things that new industry brings.

1310
01:50:51,440 --> 01:50:59,680
But the person that's on Elm Street that's lived in Portland for their entire life gets hit

1311
01:50:59,680 --> 01:51:03,620
with a water bill, and they're struggling to make payments.

1312
01:51:04,800 --> 01:51:07,520
No elected official wants to raise water rights, right?

1313
01:51:07,740 --> 01:51:09,280
You guys want to raise water rights.

1314
01:51:10,020 --> 01:51:13,320
Sometimes, under the old model, when you had industry come in,

1315
01:51:13,380 --> 01:51:15,880
if you're not investing in future water supply,

1316
01:51:16,340 --> 01:51:19,500
it actually can help you keep your water right down, right?

1317
01:51:19,780 --> 01:51:22,020
Sometimes even maybe even lower it.

1318
01:51:23,180 --> 01:51:27,000
But we haven't added the real expensive stuff yet.

1319
01:51:27,000 --> 01:51:32,560
But we're living off of reservoirs that we're built and paid for.

1320
01:51:32,720 --> 01:51:39,360
Our raw water cost is a little over $1,000 to replace that cost per thousand today.

1321
01:51:39,760 --> 01:51:41,420
It's going to be $10 up.

1322
01:51:42,280 --> 01:51:44,360
So that's a big disparity.

1323
01:51:45,400 --> 01:51:54,880
So if you're a resident that's living here in a new industry comes in, there's no impact

1324
01:51:54,880 --> 01:52:02,060
be associated with how you replace this new water, that cost, when we weren't growing

1325
01:52:02,060 --> 01:52:02,600
it worked great.

1326
01:52:02,760 --> 01:52:05,320
You just put the cost in, you start the pot and outcome a new number.

1327
01:52:05,820 --> 01:52:09,880
And so we would go on up on a little bit of incremental rate, it was tolerable, it was good.

1328
01:52:11,040 --> 01:52:17,980
But if we get into a situation where we're looking at big facilities that need 10 MGD, 30

1329
01:52:17,980 --> 01:52:22,900
MGD, I've heard crazy numbers out there, and there's a lot of pen up industry waiting

1330
01:52:22,900 --> 01:52:26,440
for these decisions to get made to decide whether or not they want to come here.

1331
01:52:27,100 --> 01:52:28,660
I'd like to see a bunch of them come here.

1332
01:52:29,060 --> 01:52:33,700
I love industry, but we got to figure out this rate model on how we go forward.

1333
01:52:34,400 --> 01:52:35,900
Bill, I'm not the guy that do that.

1334
01:52:36,020 --> 01:52:42,120
There are people that do that for a living, but I think you need to apply at least some

1335
01:52:42,120 --> 01:52:47,140
kind of impact fee, just like you do with new developers who are coming in.

1336
01:52:47,140 --> 01:52:49,280
You don't put that burden on your existing customers.

1337
01:52:49,700 --> 01:52:51,460
They're helping make up that difference.

1338
01:52:51,460 --> 01:52:53,740
So you get the benefit of both worlds.

1339
01:52:55,700 --> 01:52:59,960
They're here because of cheap energy, access to deep water,

1340
01:53:00,440 --> 01:53:03,280
good transportation network, good labor force.

1341
01:53:03,760 --> 01:53:06,380
The cost of water is minimal.

1342
01:53:07,260 --> 01:53:09,800
So increasing that cost, I don't think is gonna run them off.

1343
01:53:09,960 --> 01:53:11,820
I had the plant manager at Oxy over here

1344
01:53:11,820 --> 01:53:14,420
told me in the last drought of 2011,

1345
01:53:14,560 --> 01:53:16,640
I asked him, I said, what's your threshold for pain?

1346
01:53:16,740 --> 01:53:18,500
He came from Louisiana, they had plenty of water.

1347
01:53:19,140 --> 01:53:22,780
He said, I'll pay $9,000 if I know I can get it.

1348
01:53:24,860 --> 01:53:28,960
So, I'm not a rate model guy, what you said was exactly true.

1349
01:53:29,160 --> 01:53:31,440
Well, it needs to get factored into the equations.

1350
01:53:31,660 --> 01:53:36,000
I just don't know how that happens, and particularly with long-term contracts.

1351
01:53:36,300 --> 01:53:45,040
And I do have a question that segues into a question for NRI, and that is, how do you, you know,

1352
01:53:45,040 --> 01:53:53,060
So if you're producing, see what a diesel and you're piping a big percentage of it through

1353
01:53:53,060 --> 01:53:58,100
San Patricia County to San Antonio, are our rate payers going to be hit with the cost

1354
01:53:58,100 --> 01:53:59,960
of that pipeline going to San Antonio?

1355
01:54:00,460 --> 01:54:06,800
Are you going to have some distinguishing price difference for feeding because we don't

1356
01:54:06,800 --> 01:54:10,880
need a pipeline to San Antonio to sort of our needs and our rate payers shouldn't have

1357
01:54:10,880 --> 01:54:11,980
to pay for that pipeline.

1358
01:54:11,980 --> 01:54:16,200
How are you going to handle the cost model for that kind of infrastructure?

1359
01:54:17,020 --> 01:54:26,420
I don't have a firm answer for you yet, but I think the outline that you just gave is what we're going to have to do.

1360
01:54:27,200 --> 01:54:34,560
There's going to have to be some cost of service, modeling done, be exactly what you said sort of that.

1361
01:54:34,560 --> 01:54:41,040
you know, it would be unreasonable or it would be very hard to expect, let's just say Portland

1362
01:54:41,040 --> 01:54:45,060
to pay the same rate as the, you know, the water that's being delivered, let's say in

1363
01:54:45,060 --> 01:54:45,300
Kyle.

1364
01:54:46,280 --> 01:54:47,700
There's a tremendous amount of income.

1365
01:54:47,720 --> 01:54:49,220
We got your recorded on that, now.

1366
01:54:49,340 --> 01:54:49,540
Pardon?

1367
01:54:49,900 --> 01:54:50,960
I said we have you on record.

1368
01:54:51,160 --> 01:54:56,200
Yeah, well, maybe that's why John said we so he can go, no, he didn't know what he's talking

1369
01:54:56,200 --> 01:54:56,440
about.

1370
01:54:56,900 --> 01:54:58,100
But I think you're right.

1371
01:54:58,100 --> 01:54:59,780
And we've talked about that cost of service.

1372
01:55:00,000 --> 01:55:20,180
And how we'll do that. It's very complicated. I think John's right that, you know, you've got, in his example, you know, legacy $1,000 water and we're looking at $10,000 or $15,000 water now. You've got to mix all that up to come up with what your water rates are going to be.

1373
01:55:22,400 --> 01:55:29,600
I'm seeing groundwater up in the San Antonio area being sold for $11,000 and $12,000 and they're just glad to get it.

1374
01:55:31,440 --> 01:55:35,780
So that's kind of what we're seeing, but yes, there's a lot of rate model work that has

1375
01:55:35,780 --> 01:55:36,200
to be done.

1376
01:55:36,860 --> 01:55:39,220
That's the way it's into a question I bet for Brian Williams.

1377
01:55:43,230 --> 01:55:49,450
So Brian, you showed the letter and your request for the transfer of Corpus Christi's

1378
01:55:49,450 --> 01:55:52,350
decal permit to San Frisier County Water District.

1379
01:55:52,890 --> 01:55:59,290
And I wanted to confirm, you and I have had a separate conversation about, you know, that

1380
01:55:59,290 --> 01:56:06,670
I ask the question, do you anticipate having to reimburse Corpus Christi for all of their

1381
01:56:06,670 --> 01:56:09,930
cost in getting those permits up to where they are today?

1382
01:56:11,170 --> 01:56:12,930
I'll let you answer the question.

1383
01:56:16,080 --> 01:56:23,220
I guess it would depend on where that, if it was a new industry that was taking the water

1384
01:56:23,220 --> 01:56:31,080
where it was located, if the city of Corpus Christi were able to reimburse themselves through

1385
01:56:31,080 --> 01:56:39,560
an industrial development agreement, possibly night, probably night. If it was outside that

1386
01:56:39,560 --> 01:56:45,240
ETJ and industrial development agreement, I think we would probably figure out the way to put

1387
01:56:45,240 --> 01:56:52,560
that cost on that new potential industry that they could repay that, a portion of that to the city

1388
01:56:52,560 --> 01:56:59,260
a court of electricity, some of the money that the city had fronted through the permit

1389
01:56:59,260 --> 01:57:00,380
development process.

1390
01:57:00,940 --> 01:57:07,220
You also spoke to your presentation about, you know, the potential investment of this

1391
01:57:07,220 --> 01:57:15,980
in this plant would likely be paired with a new industry coming to the area and using that

1392
01:57:15,980 --> 01:57:17,080
water, if you will.

1393
01:57:17,080 --> 01:57:24,700
I mean, is that also, I mean, that seems to be a more fair and likely approach to it to me.

1394
01:57:24,840 --> 01:57:31,780
I mean, I appreciate the fact that Exxon ponied up $60 million for a pipeline when they came to town.

1395
01:57:32,080 --> 01:57:39,920
But in retrospect, when you look at the tax benefit numbers that they've already benefited from,

1396
01:57:40,240 --> 01:57:44,140
it's a drop in the bucket, particularly when we're looking at the city court

1397
01:57:44,140 --> 01:57:47,720
electricity that stopped progress on a one point,

1398
01:57:47,740 --> 01:57:50,900
well, ended up being put out there as a $1.2 billion

1399
01:57:50,900 --> 01:57:54,220
investment, you know, once again,

1400
01:57:54,360 --> 01:57:56,900
it seems to me that it's back to that right model

1401
01:57:56,900 --> 01:58:00,480
question and who the customer is and who's going to pay for it.

1402
01:58:00,580 --> 01:58:04,320
I mean, I think that, you know, our interest collectively

1403
01:58:04,320 --> 01:58:08,060
as the city council is not only securing long-term water supply,

1404
01:58:08,280 --> 01:58:11,220
it's reliable, but protecting our right payers

1405
01:58:11,220 --> 01:58:13,500
in the best way possible.

1406
01:58:14,600 --> 01:58:17,460
I think we've demonstrated that over the years

1407
01:58:17,460 --> 01:58:21,600
and the way before I got here, I've been here 13 years,

1408
01:58:21,740 --> 01:58:23,560
but that's been the way that we've developed

1409
01:58:24,020 --> 01:58:29,140
our system over the years prior to GCGV,

1410
01:58:30,240 --> 01:58:32,220
putting up the money for a 48-inch line,

1411
01:58:32,420 --> 01:58:34,460
Occidental Chemical, put up the money

1412
01:58:34,460 --> 01:58:37,540
to replace a 24-inch line back to Corpus,

1413
01:58:37,540 --> 01:58:40,260
I think it was 11.5 million at the time,

1414
01:58:40,260 --> 01:58:49,280
before that back in 2000 when the water district built plant sea, the membrane treatment plant,

1415
01:58:49,460 --> 01:58:56,640
those costs were, I think, 50% of that was fronted by the Occidental Chemical,

1416
01:58:57,120 --> 01:59:04,560
commerce, air lequid, and the municipal customers had half of that plant dedicated to them

1417
01:59:04,560 --> 01:59:06,880
and they picked up the other half through the rate model.

1418
01:59:06,880 --> 01:59:12,840
So that's I just the way we've developed over the years and I think that's a fair way to the

1419
01:59:12,840 --> 01:59:14,900
industry pays their way through the system.

1420
01:59:16,200 --> 01:59:16,720
Thanks.

1421
01:59:16,920 --> 01:59:20,060
I appreciate all of y'all coming tonight.

1422
01:59:20,240 --> 01:59:24,540
It's been informative and I just wish we'd solved all the problems.

1423
01:59:29,720 --> 01:59:32,140
I do have a question from Brian though.

1424
01:59:34,520 --> 01:59:38,500
Most of your presentation tonight is a matter of fact short term potential.

1425
01:59:38,500 --> 01:59:46,140
you mentioned Porto Corpus Christioxic Comores, your own district, long-term reservation for future

1426
01:59:46,140 --> 01:59:54,360
production, your reference industry, long-term your reference industry. Again, our concern is

1427
01:59:54,830 --> 01:59:59,900
water for our residential and business in Portland. I know

1428
02:00:00,000 --> 02:00:29,980
I know that for years, our mayor coalition has been talking to y'all about water, particular development of the abangeline, potentially in getting in contract with the court, with Harbor Island before the NRA did. I mean, these are all ideas. So, what Brian, are you doing? It comes back to looking, and I guess that's where I'm having to gravitate now.

1429
02:00:29,980 --> 02:00:38,160
to take care of our own interests because I don't see that interest being looked at at

1430
02:00:38,160 --> 02:00:43,480
the municipal level either at the rate model or at new, you know, how we're going to

1431
02:00:43,480 --> 02:00:49,520
pay for new water sources and we seem to be losing that municipal component.

1432
02:00:49,760 --> 02:00:54,540
And one time in the future, I asked you this question and you said, first come, first serve.

1433
02:00:54,540 --> 02:01:14,220
Well, how do you first come if you are incrementally growing as a city and, you know, that small incremental growth and then how are you protecting the water rates for current existing cities without having to pass on that new water cost?

1434
02:01:14,700 --> 02:01:15,820
How are you protecting us?

1435
02:01:17,100 --> 02:01:18,980
Let me talk about a couple of things there.

1436
02:01:19,200 --> 02:01:27,340
I guess first off, I would say when I think Randy mentioned that y'all are paying $3.80

1437
02:01:27,340 --> 02:01:31,280
per thousand, that's based on two million gallons a day.

1438
02:01:32,200 --> 02:01:40,080
If you decide to go to another provider of water, someone's going to have to pick up, I guess

1439
02:01:40,080 --> 02:01:51,700
that delta that the TCEQ requires you to have, so you'll be paying, you'll be having to provide water for 3.8 million gallons of water a day.

1440
02:01:52,160 --> 02:02:06,440
So, if you run through the numbers, trying to do apples and apples instead of $3.80, city of Portland is paying about $2,000 to make 3.8 million gallons available for the requirements of the TCEQ.

1441
02:02:06,440 --> 02:02:08,980
So that's something you need to be thinking about.

1442
02:02:09,600 --> 02:02:15,720
And then also mentioned short and long in the medium term, as I mentioned, we're looking

1443
02:02:15,720 --> 02:02:23,520
talking with the L.I. ranch folks, and I guess that's, I probably got the first two nickels

1444
02:02:23,520 --> 02:02:26,380
I ever made in my pocket, I'm pretty tight.

1445
02:02:26,820 --> 02:02:31,000
But that's why we are in discussions with the L.I. ranch.

1446
02:02:31,000 --> 02:02:41,740
We're not paying the equivalent, not planning on paying the equivalent of $169 million for that water that might be available from the LI ranch.

1447
02:02:42,060 --> 02:02:51,820
What we're talking about is reserving that, going ahead, and probably I think there's a good argument to be made to assign that to the municipal signs.

1448
02:02:52,040 --> 02:02:54,600
So I think that's probably where we're looking at in the future.

1449
02:02:55,100 --> 02:02:55,960
Okay. Thank you.

1450
02:02:58,540 --> 02:02:59,060
Any other questions?

1451
02:03:00,600 --> 02:03:07,380
Okay. It sounds 703. We've been going here now for two hours and we're going to actually

1452
02:03:07,380 --> 02:03:11,160
be starting our regular city council meeting in just a few minutes. We're going to take

1453
02:03:11,160 --> 02:03:16,360
a break. But before we do, I do want to also recognize Charles Ring is here tonight with

1454
02:03:16,360 --> 02:03:21,200
us from the groundwater conservation group. And I know you'll probably speak to us in our

1455
02:03:21,200 --> 02:03:25,800
area in our regular council meeting. And I want to thank you for being here. I know this

1456
02:03:25,800 --> 02:03:29,960
This is an important topic for y'all too, so thank y'all very much.

1457
02:03:30,040 --> 02:03:31,820
Thank you everyone for coming tonight.

1458
02:03:32,140 --> 02:03:38,120
As you know, this is a very important topic for not only the City of Portland but for

1459
02:03:38,120 --> 02:03:45,920
our region, so this is the start of what we hope to be a very quick resolution on how we're

1460
02:03:45,920 --> 02:03:49,200
going to provide water and water security for the City of Portland.

1461
02:03:49,620 --> 02:03:51,820
Thank you Commissioner Yardley for being here tonight too.

1462
02:03:51,820 --> 02:03:59,060
Thank you everyone, spouses included a lot of people are here so appreciate it and we're

1463
02:03:59,060 --> 02:04:04,560
going to take just a very brief probably 10 minute recess or we'll conclude our workshop

1464
02:04:04,560 --> 02:04:09,020
now and then we will go into our city council meeting.

1465
02:04:09,360 --> 02:04:10,920
Thank you all very much, good night.