Travis County Commissioners Court
June 23, 2009,
Item 24
Number 24 is consider and take appropriate action on resolution to support cross country water supply corporation's financing for a water pipeline facility.
Commissioner Davis.
>> yes, judge, staff, anna bolin and the folks from the cross country water supply corporation I guess at this time will basically come up and make a presentation to us on what their intentions are and what they are doing as far as bringing added capacity of water to -- to eastern Travis County.
and all the connectivity and all the aspects of that, I guess they will go ahead and lay that out so I will go ahead at this time, judge, and let anna bolin with the transportation and natural resource department take the lead on this and basically allow the proper presentation to be set forth and hopefully approval which is required by law to move forward with this particular pipeline for water.
anna.
>> good morning, anna bolin, Travis County t.n.r., along with tom webber and two representatives from the water supply corporation, rich keiser and patrick riley.
the cross country water supply corporation is not a retail provider of water and it does no have a c.c.n.
but it's a wholesale -- provides wholesale water to retail utilities.
what they are seeking to do is to build a 52-mile pipeline from southwest of the city of caldwell to eastern Travis County ending approximately at the shadowglen elevated storage tank.
this pipeline would be 30 inches in diameter and has a capacity -- maximum capacity of 18 million gallons of water per day.
this pipeline will go through the burleson, lee, bastrop, Williamson and Travis County's.
and it's strategically -- it will have strategically located interconnects to allow potential cross country water supply corporation members and other members to tie into the system for emergency or permanent use.
so what this pipeline will do in part is to convey a long-term, high quality dropproof water supply to eastern Travis County from the tear is a wilcox aquifer in burleson county and this project has got all necessary production and transportation permits from the post oak savannah ground water conservation district to produce and deliver this through the wilcox water.
and as I said, this water is replacement water and a new supply for this area.
and it's my understanding that the design of this project is approximately 70% complete and that they've obtained 80% of the right-of-way for the -- for where this pipeline traverses the 52 miles.
it's also my understanding that they have already obtained their environmental permits both from the u.s.
army core of soldiers, the 404 permit and the tceq storm water permit.
the purpose of the resolution is -- it's a requirement for the private activity bonds that they are seeking.
they are seeking bonds through the river valley industrial development corporation and this bond -- or this type of financing must be issued through a governmental entity; therefore, the cotton creek m.u.d.
number 1 has created an industrial development corporation that is the conduit -- will be the conduit for the sale of these bonds.
in order to get these bonds, the water corporation is required to obtain a resolution from Travis County and all of the other counties in which the pipeline will be located.
but this resolution does not obligate the county with respect to the project or the financing of the project.
but it does provide Travis County's consent to the financing of the project by the river valley industrial development corporation.
the other thing I'd like to add is the population of Travis County is estimated to double by the year 2030 and in precinct 1 alone the population is estimated to go from about to 342,000 people.
that's the purpose of the resolution and what the pipeline is intended to serve.
>> what are those population figures again?
>> I'm sorry.
140,000 in precinct 1 to about 342,000 in precinct 1.
>> you're not making those numbers up, are you is this.
>> no, I got that from -- hold on.
i can tell you exactly --
>> that's all right.
i believe you.
as long as you say I didn't make them up, that's good enough for me.
>> I asked legal to also review the resolution that's presented here today to see if there's any hardship that would fall on the county and the property and I guess they can speak for themselves or the county attorney.
>> I think anna summarized it very well.
it's just a consent for the financing.
>> all right.
>> so the intention is to wholesale water to what entity.
>> judge, pat riley.
president of cross county water corporation.
we currently are agreements with southwest water company which owns the utility which is off 969.
hornsbye bend utility has approximately 1400 homes that they service right now in addition to serving kennedy ridge subdivision.
in addition to that, southwest water also provides wholesale water to four municipal utility districts up in the manor area.
will barger mud 1 and 2, cotton creek m.u.d.
number 1 and Travis County mud number 2.
in addition we have an agreement with the city of manor to provide water and an agreement with the city of Pflugerville so Pflugerville could transport water through the pipeline.
>> okay.
and this route goes through public right-of-way?
>> we are acquiring the right-of-way.
not public right-of-way.
we are using some right-of-way from the lcra, but the majority of the right-of-way has been acquired, easements have been acquired.
>> from private property owners?
>> yes, sir.
>> okay.
questions?
>> I'm sorry, you are the president of ccsc?
ccwsc.
it sounds like we're going to be in relationship with y'all for a long time.
the -- the regulatory entity over ground water in burleson county, is that the post oak savannah ground water conservation district?
>> that's correct.
>> okay.
and is the ccwsc the owner of the -- I'm guessing is there one well in burleson county from which --
>> no, ma'am.
cross country water supply corporation is strictly to be the owner of the pipeline.
it will transport water from different users through that pipeline to end users.
so no, they do not own water, they do not have a c.c.n.
this is strictly the pipeline.
>> strictly the pipeline.
okay.
and in terms of the capacity, the 18 million gallons per day?
i see.
i'm just rechecking the memo here.
so it's strictly a potable water pipeline.
in which anyone can purchase capacity on that line as long as there is capacity.
>> yes, ma'am.
this pipeline is considered a common carrier so that is if there the capacity available, any user could use the pipeline to transport water.
that's the agreement with city of Pflugerville has with us is transport water what they consider lake Pflugerville to another user.
>> okay.
>> so the carizzo is in burleson county.
>> the area that we're dealing with is up in that area, yes, sir.
>> do you have to get anybody's authority to pipe water from that aquifer?
>> we have those already.
we have both the production permits or the entity that's going to be putting water into the pipeline, already has the production permits, and the transportation permits.
so yes, we did have to get permission and those have been already obtained.
>> from what entity?
>> the under ground entity, post oak savannah.
>> and they've agreed already.
>> yes, sir.
>> the ccwsc is a nonprofit.
can you elaborate on its structure, who are the members, how was the membership created?
>> it was created under the Texas water act commission under chapter 67.
it is a member owned water supply corporation.
any entity that signs up to use the services are eligible tore members.
right now the members are southwest water company, blue water corporation.
we have applications pending from city of manor and the city of Pflugerville.
>> I see.
the -- the well source for the water, can you talk to me about the rate structure from a standpoint of the pipeline is the carrier.
tell us a little about how the rate structure is.
>> this is a wholesale only water supply corporation.
it's not regulated by the tceq.
we will be selling to retail utilities that have ccns.
so the price would be what we are dealing with right now is if you are familiar with rate structure, a lot of these they have what is called a cap of recovery fee and a volumetric rate.
the rate structure that we're currently using a volumetric rate.
for example, southwest water company has a rate or a contract with cross county right now that's a 20-year agreement that has a fixed rate.
and the only adjustments to that rate would be cost of living increases or increase in electrical costs.
>> so I've seen -- without having a full understanding of the different rate structures around but some understanding, I've seen some places end up with a water resource where the rates are really high and the people have no recourse.
is there a risk involved here?
>> well --
>> particularly with the eastern Travis County people.
>> this is a little different in that we are signing long-term agreements with the end users and those rates are locked in for that term.
there's no administration fees added to this.
the rates will only be increased via consumer price increases or increases that can be validated and passed along, electrical, chemical costs, so no, it's none of these where you are going to come up with the low rate and later on increase the rates.
these rates are locked in of the contract.
>> I see.
okay.
what's your timing?
>> well, we're hoping to begin construction by the end of this year and have the pipeline in within 12 months.
>> you are the president of the corporation?
>> yes, sir.
>> and you are.
>> my name is rich keiser.
i'm an engineer in Austin, Texas.
and I'm managing the project for cross county water supply corporation, coordinating all the engineering, right-of-way acquisition, things like that.
and we also have with us cal palumbo, bond counsel for river corporation.
>> judge, I would like to move approval of this particular project if there are no further questions from the court.
>> discussion and a motion.
>> and thank you all very much.
>> all in favor.
show Commissioners Davis, Eckhardt -- show a unanimous court.
>> thank you all very much and we're going to need that added capacity of 18 million gallons provided per day for a particular part of the county that's rapidly growing and rapidly needs added capacity to those ccns or whoever else would tap into this project as far as providing water.
thank you all so much.
>> thank you very much.
>> thank you, judge and Commissioners.
>> thank you.
>> good luck to you.
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Last Modified:
Tuesday, June 23, 2009 1:31 PM