WHCRWA 2011 Town Hall Meeting Nov 8, 2011

The Authority makes no representations or warranties regarding the amount of its future fees or water rates, conditions of service, terms of its Groundwater Reduction Plan, terms of its future orders or rules, or any other matters set forth in this presentation.

Status of FacilitiesStatus of Facilities Status of 2010 GRP ConversionStatus of 2010 GRP Conversion Impact of DroughtImpact of Drought Issues for 2020 SystemIssues for 2020 System Finances – Rates, Rules and CreditsFinances – Rates, Rules and Credits Water ConservationWater Conservation Source Water ProtectionSource Water Protection Jeffrey Lindner, HCFCD MeteorologistJeffrey Lindner, HCFCD Meteorologist Q&AQ&A

STATUS OF FACILITIESSTATUS OF FACILITIES• All projects for 2010 conversion completed• Lines to serve Riata Ranch being constructed• Bids received for early delivery contracts• Addition of 2 GST completed (15mg total)• Upgrade of Control System completed

STATUS OF 2010 GRP CONVERSIONSTATUS OF 2010 GRP CONVERSION

• 53 miles of pipelines installed• Surface water to 48 water plants• 38 Districts converted• ADF of 27.4 MGD in September• Converted 29.5% to surface water YTD

O&M SURFACE WATER COSTO&M SURFACE WATER COST

ITEM 2006 2007 2008 2009 2010 2011 2012

Treated Water Costs

0.3109 0.3902 0.3887 0.4863 .04891 0.5262 0.5489

Untreated Water Costs

0.1098 0.1068 0.0931 0.0946 0.1212 0.1297 0.1444

Total Water Cost per1000 Gallons

0.4207 0.4970 0.4818 0.5009 0.6103 0.6559 0.6932

CITY OF HOUSTON FYCITY OF HOUSTON FY

*Figures shown are prior to true-up.

WHCRWA Groundwater and Surface Water WHCRWA Groundwater and Surface Water Pumpage Report Per Permit YearPumpage Report Per Permit Year

WHCRWA Cumulative Groundwater PumpageWHCRWA Cumulative Groundwater Pumpage(Millions of Gallons)(Millions of Gallons)

Highlights importance of alternate water supplyHighlights importance of alternate water supply Total usage over 3.2 billion gallons in AugustTotal usage over 3.2 billion gallons in August Conversion in August – 26.3%Conversion in August – 26.3% Permit Amendment of 2 billion gallonsPermit Amendment of 2 billion gallons

• Luce Bayou• COH Treatment Plant capacity• North-South Second Source Project• East-West Second Source Project • Repump Station• CIP distribution lines• Connections to MUDs • Delay of conversion date?

• Transfer of Trinity River Water• Capacity of 400 MGD• Approximately 3 miles of pipeline• Approximately 23.6 miles of canal• Raw Water Pump Station• Estimated Cost $300 Million• Participants include COH, WHCRWA, NHCRWA, NFBWA, and CHCRWA

Must reserve 5 years prior to needMust reserve 5 years prior to need Fund Pro-Rata share of NEWPP expansionFund Pro-Rata share of NEWPP expansion

~ Design – Prior to design start~ Construction – when bids received

• Joint WHCRWA/NFBWA• Projected 96”• North –South Project approximately 9 miles• East-West Project approximately 30 miles • Acquiring approximately 600 easements

• HGSD Mandate of 70% Conversion by 2020• 2020 System

Additional 55 to 60 MUDs Larger geographic area Larger lines

•Currently acquiring approximately 690 Easements

• Provide pressure to get water to WHCRWA• Location – Fairbanks North Houston & West Little York• 17.3 ac. Site acquired for $4.5 Million• Ultimate capacity 146 MGD• 30 MG of storage• Joint facility with NFBWA

• Distribution to 2020 and 2030 Systems• Location – Fry Road and Second Source Easement• 30 ac. Site acquired for $1.9 Million• Initial Phase 50% larger than Pump Station #1• Initial Phase 30 MG Storage• Joint facility with NFBWA

• Applies to: Second Source Line & Related Pump Stations Connection Line to NFBWA Pump Station NFBWA Pump Station Shared NFBWA Lines

• Pro Rata Sharing of Capital Costs Based on Estimated Capacity Reserved

WHCRWA: Approx. 60% in Second Source Line NFBWA: Approx. 40% in Second Source Line

• Pro Rata Sharing of O&M Costs Based on Amount of Water Used

• HGSD requires one permit for all wells in WHCRWA’s GRP• WHCRWA paying permit fees• Permit based on historical & projected usage in WHCRWA• Owner receives a copy with well number & owner name

• Owner must keep monthly records• Owner must submit annual report by January 31st• Owner must read meter 15 days before or after permit expires• Owner must test meter

*< 6” – every 3 years *> 6” – every year

• Adopts the HGSD Rules• Prior to installing a well meter, owner must get WHCRWA approval of type, make and model

• Due to drought and use of wells, levels received from COH fluctuated•WHCRWA adds chemicals to exceed TCEQ minimum requirements•Districts may need to supplement before distribution•WHCRWA paid for facilities at District water plants

• $13.6 WIF not available• Priority List $40,100,000 WIF

Debt Service not deferred Interest at State Bond Rate Minus 1%

• At current rates, over $12M in debt service savings • TWDB Decision 12/11

YTD BUDGETYTD BUDGET YTD ACTUALYTD ACTUALRevenues $26,635,726 $36,671,690

Expenditures

Operating Fund $ 7,260,704 $ 8,076,093

Bond Debt Service Fund Transfer

$18,291,138 $18,722,462

Construction Fund(from Bond Proceeds)

$21,286,196 $18,543,459

Revenues $42,480,000

Expenditures

Operating Fund $11,841,000

Bond Debt Service Fund Transfer

$23,372,000

Construction Fund(from Bond Proceeds)

$15,858,000

Second Source $10,150,000

SURFACE WATERSURFACE WATER GROUNDWATEGROUNDWATERR

WHCRWA $1.85 $1.55

NHCRWA $2.20 $1.75

NFBWA $1.55 $1.20

SURFACE SURFACE WATERWATER

GROUNDWATEGROUNDWATERR

Current $1.85 $1.55

2012 $2.15 $1.75

2013 $2.40 $2.00HGSD disincentive fee HGSD disincentive fee $5.00 per 1,000 gallons$5.00 per 1,000 gallons

20012001 20112011Electricity $0.14 $0.20

Routine O&M $0.04 $0.03

Chemicals $0.03 $0.06

Major Rehab $0.07 $0.13

TOTAL $0.28 $0.42

• Expanded to include raw surface water• Requirement to have WWTP removed• Credit increased to 50% of Pumpage Fee• Length of credit increased to up to 10 years• Covers construction cost only

• Water importer uses more than 10 mgy and imports water into Authority boundaries• Must report to WHCRWA• Fee equal to SW Fee if on SW• Fee equal to GRP Fee if not converted to SW• Exempt from Fee:

~ If WHCRWA agrees in writing~ Emergency not to exceed 60 days~ From Waller County to Municipality

• Public education efforts 50,000 sets of billing inserts provided to MUDs 107,000 copies of water conservation brochures to MUDs WATERWORKS newsletter

• School programs Mobile Teaching Lab New Curriculum, Assembly programs, and classroom materials

•WORKSHOPS – Promote MUD Conservation efforts

• Brochure offered to MUDs for distribution to customers and professional landscapers• 7TH grade science teachers workshop with focus on stormwater pollution• 7th grade student book/curriculum “Journey to Gunk Junction”

Visit www.whcrwa.com forVisit www.whcrwa.com forregular updates about theregular updates about the

Texas Drought.Texas Drought.

2010 System in place2010 System in place Currently meeting 2010 HGSD MandateCurrently meeting 2010 HGSD Mandate 2011 Budget in good shape2011 Budget in good shape Major projects required for 2020 SystemMajor projects required for 2020 System Overall cost of water will continue toOverall cost of water will continue to increaseincrease

Jeffrey Lindner, MeteorologistJeffrey Lindner, MeteorologistHarris County Flood Control Harris County Flood Control

DistrictDistrictNovember 8, 2011November 8, 2011

Texas Annual Rainfall

Texas Annual Rainfall 1895-2010

Texas Annual Temperature 1895-2010

Notice Any Trends?

Texas Spring Rainfall 1895-2010

Less Spring rainfall since 1950

Texas Summer Rainfall 1895-2010

Greater summer rainfall since 1960

Texas Fall Rainfall 1895-2010

Greater Fall rainfall since 1960

Texas Winter Rainfall 1895-2010

Less winter rainfall since 1950

Texas Climate Trends

• Drier winter and spring seasons since 1950• Wetter summer and fall seasons since 1960• Overall Texas annual rainfall has been greater since 1960 compared 1895-1960• Drought was much more common, long term, and severe pre 1960• Annual temperatures have been above average since 1996

2010 Texas Rainfall

2010 Texas Rainfall Departures

DRY

WET

2010-2011 Texas Rainfall Departures (Sept 10- Oct 11)

2011 Drought Conditions

2011 Summer Heat

Days at or above 100:Houston IAH: 46 (32 in 1980)Hobby: 18 (13 in 1998/2000)Conroe: 53 (42 in 1998)Huntsville: 72 (43 in 1980)College Station: 69 (58 in 1917)Dallas: 71 (69 in 1980)Waco: 90 (63 in 1980)Austin Mabry: 90 (69 in 1925)San Antonio: 57 (59 in 2009)Del Rio: 85 (78 in 1953)

Most Consecutive 100 degree days:Houston IAH: 24 (14 in 1980)Austin: 27 (21 in 2001)Dallas: 40 (42 in 1980)Waco: 44 (42 in 1980)

• Houston tied all-time record high of 109 on 8-27-11• Galveston: 100 on 8-27-11 for only the 7th time ever• Hottest June-August (summer) period ever!

Top 4 Warmest months for Texas ever:July 2011: 87.2July 1998: 86.5July 1980: 86.3August 1952: 85.7

2011 Drought Conditions Lake Levels and Capacity Nov 7

Lake Conroe: -7.61 (68%)Lake Houston: -5.60 (74%)Lake Livingston: -4.02 (82%)Lake Somerville: -10.30 (38%)Lake Texana: -12.08 (43%)Lake Buchanan: -31.39 (38%) Lake Travis: -54.23 (34%)Lake Georgetown: -24.67 (35%)Toledo Bend: -12.24 (58%)Sam Rayburn: -13.55 (55%)

Lake Houston

Lake Travis

Lake Travis

Conservation Storage Statistics -TWDB

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2011 Drought Conditions

March 30

November 7

Mandatory: 635Voluntary: 312

Mandatory: 33Voluntary: 34

Texas Wildfires 11/15/2010-11/1/2011

• 3.8 million acres burned• 24,279 fires• 51,617 structures threatened• 7,223 structures burned• 49 states responding• 175 million acre ft of timber destroyed worth 1.6 billion

April 2011

4 out of the 10 largest TX fires occurred in April 2011

Texas Wildfires – Labor Day Weekend

Bastrop Complex:34,036 acres2 fatalities1554 homes lost5,000 evacuated1351 ground personnel, 14 aircraft

Tri-County:18,638 acres63 homes lost (23 damaged)8,000 evacuated698 ground personnel, 16 aircraft20.8 million acre feet of timber burned (12.8 million in value)

12 large fires, Labor Day 2011

Over 2,000 homes lost in 3-4 days

Texas Burn Ban Map

213 out of 254 counties under burn bans, old record was 221 in 2006, 252 at worst

Fire Fuel ConditionsKBDI Index

AUSTIN 684 GALVESTON 616BRAZOS 684BURLESON 721BASTROP 643COLORADO 700 FORT BEND 672 GRIMES 652 HARRIS 567 HOUSTON 718 JACKSON 707 LIBERTY 655 MADISON 706 MATAGORDA 643MONTGOMERY 608POLK 686SAN JACINTO 620 TRINITY 675 WALKER 685 WALLER 569 WASHINGTON 690 WHARTON 689

Fall Fire Weather Conditions

• Low RH (20-30%)• Strong Winds (15-25mph)• Critical days behind cold fronts• Conditions will worsen after first freeze• Pine areas most risk• Threat for wind driven crown fires

Steiner Ranch

2010-2011 Drought

Top 5 Driest Jan 1-Nov 7 Periods for Houston: IAH Hobby1917 - 15.54 in 2011 - 18.352011 - 15.59 in 1963 - 21.751956 - 19.24 in 1956 - 21.781930 – 19.41 in 1931 - 22.361988 – 19.49 in 1988 - 24.36

1.1950-1957 (Sept 1956 peak)2. 2010-?3. 1916-1918 (Aug 1918 peak)4. 1924-1925 (July 1925 peak)5. 1999-2000 (Sept 2000 peak

Texas Drought Rankings Drought Lowest PDSI 2010-2011 -7.97 SEP 20111951-1957 -7.80 SEP 1956 1916-1918 -7.09 AUG 1918 1924-1925 -6.10 JUL 1925 1999-2000 -5.51 SEP 2000

Hobby needs 3.40 in of rain to move to second place

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1917 1.29 1.56 0.65 2.30 2.21 0.83 3.30 1.13 1.95 0.32 0.93 1.192011 5.05 0.69 0.78 0.11 0.33 0.92 2.98 0.09 1.28 3.36 T -

2010-2011 Drought

Source: OSC

2010-2011 DroughtDriest 12-Month Period Ever (September 22, 2010 to September 23, 2011)

Location Rainfall (in) (9-22-10 to 9-23-11) Previous Rainfall Record (in) Record Exceedance (in)

Bellville 12.75 19.90 (1987-88) 7.15

Brenham 16.10 13.76 (1924-25) 2.34

Columbus 14.84 17.57 (1955-56) 2.73

Conroe 17.42 22.51 (1924-25) 5.09

Freeport 17.98 24.77 (1953-54) 6.79

BUSH IAH 17.71 23.25 (1916-17) 5.54

Huntsville 15.31 18.09 (1916-17) 2.78

Katy 14.67 27.31 (1987-88) 12.64

Livingston 17.77 31.35 (1947-48) 13.58

Somerville 14.83 19.77 (1970-71) 4.94

Tomball 12.44 22.15 (1960-61) 9.71

Wash on the Brazos 14.52 24.44 (1955-56) 9.92

Red: broke previous record by over 10 inchesOrange: broke previous record by over 5 inches

2010-2011 Drought

Bellville: -29.67Brenham: -31.16Baytown: -36.35College Station: -28.29Columbus: -30.21Conroe: -34.07Freeport: -34.39Hobby: -31.36IAH: -32.19Katy: -28.40Livingston: -35.40Matagorda: -30.71Huntsville: -34.90Tomball: -39.54

Rainfall Deficits (Oct 1 2010 to Nov 4 2011)

Baytown: -50.89Galveston: -43.07 Houston IAH: -31.09 Houston Hobby: -35.06 College Station: -31.10 Richmond: -41.00Bay City: -40.20Wharton: -38.66Livingston: -43.28

Rainfall Deficits since Hurricane Ike

Have been in mild drought since Ike, but the last 8 months have been brutal

October 2010 to September 2011: Driest 1-year period ever for state of TX

2010-2011 Drought

2011

Driest water year on record for Texas

2010-2011 Drought

2010-2011 Drought

• 2nd worst in SE TX based on rainfall behind 1917-1918 (likely worst in some areas) • 2nd worst drought in TX history (behind 1950’s)• Driest April ever at Houston (.11 of an inch), driest Spring ever for Houston• Driest year to date ever for the City of Houston• At least 5.2 billion in economic losses so far, 90% of corn crop failed•Hay no longer available for cattle•Tremendous impacts on livestock, vegetation, economy

•2.1 million trees lost, estimate 66 million in two years (10% of area canopy)

2010-2011 Drought

Most areas would require 25-35 inches of rainfall to bring them to near normal conditions and end the drought

2011-2013 ENSO Forecast Models

La Nina

El Nino

Neutral

La Nina Impacts

La Nina Impacts

2011 Drought Forecast

Rainfall Forecast

8-14 days

1 month

3 months

Questions