WHCRWA 2013 Town Hall

2013 TOWN HALL MEETINGWater management strategies for the future

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.NOVEMBER 12, 2013

TONIGHT’S TOPICS

§ Status of Conversion§ Current System and Operations§ 2025 System§ Finances§ Water Conservation§ Q&A

STATUS OF CONVERSION

§ Surface Water to 53 Water Plants§ 42 Districts converted§ 2 more Districts, adding 2 Water

Plants by end of 2014§ 34.8 percent converted in 2012§ 35.7 percent converted to date

STATUS OF CONVERSION

SW PURCHASED FROM CITY OF HOUSTON

CONSTRUCTION STATUS

CURRENT SYSTEM & OPERATIONS

FACILITIES UNDER CONSTRUCTION

¨ Two active construction contracts

¨ 2.9 miles of pipelines¨ Connection to one

Water Plant

ONGOING PROJECTS

¨ CONTRACT 49§ Design 75% complete§ Construct in 2014§ Serves Mayde Creek MUD

& Ricewood MUDo CONTRACTS 33 & 34§ Acquiring easements§ Design to start 1/14§ Serves HCMUD 371

q Added 6.1 miles of transmission mains in 2013q Added 3 Districts in 2013q Adding 2 Districts in 2014q Why continue to add Districts?

§ 30 % conversion grows with population§ To meet conversion requirements, will need

to deliver more water during winter and maximize surface water delivery

§ Provide loop system

EXPANSION OF SYSTEM

q Agreement with Kinder Morgan§ 60” Main in their Easement§ Approximately 6 miles

q Agreement with CenterPoint§ 36” Main in their Fee Strip§ Supply NFBWA/WHCRWA Pump Station§ 10.8 miles

q Refunding Bonds

OTHER 2013 ACCOMPLISHMENTS

KINDER MORGAN EASEMENT

CENTERPOINT EASEMENT

¨ Revised Regulatory Plan 1/9/13¨ Changes from 1999 Plan§ Convert to 60% by 2025§ Convert to 80% by 2035

o Revised GRP by 7/14o New General Manager, Mike Turco

HARRIS GALVESTON SUBSIDENCE DISTRICT

ADDITIONAL WATER SUPPLY

¨ In discussions with the City of Houston regardingpurchase of additional water to satisfy HGSDrequirements

DROUGHT CONTINGENCY

¨ Revised Plan adopted 5.8.13¨ Stage 1 (Voluntary) implemented 8.14.13¨ Governor has declared State of Drought Emergency

in almost all Texas counties, including Harriso First 9 months of Permit Period rainfall 23.48 inches

less than same period last yearo USGS Addicks Monitor #1 Water Level 40 feet

lower than before 2011

MAINTAIN YOUR WELLS

¨ Interruption of water supply from City

¨ Unanticipated damage to WHCRWA Transmission Main

¨ Drought¨ Summer demand

exceeds supply

CIP EASEMENTS

¨ Agreement with Kinder Morgan completed

¨ Acquiring 168 easements from underlying Fee Owners

¨ Surveys being completed

¨ 61 easements (20 acquired)

¨ Contracts 33, 34, 39, 40, 41 & 49

¨ Surveys being completed

KINDER MORGAN CORRIDOR OTHER CIP EASEMENTS

PROJECTS FOR THE 2025 SYSTEM

¨ Luce Bayou¨ COH Treatment Plant

Capacity¨ Second Source

Project¨ Repump Station¨ Central Pump Station¨ CIP Distribution Lines¨ Connections to MUDs

SECOND SOURCE EASEMENTS

¨ Surveys completed or being finalized

¨ Title certificates completed

¨ Offers to purchase on 18

¨ 6 easements acquired

¨ Acquiring 2 Fee Parcels

358 EASEMENTS IN PROGRESS JOINT FACILITY METER STATION

LUCE BAYOU

LUCE BAYOU FACTS§ Transfer of Trinity River Water§ Capacity of 400 MGD§ Estimated Cost $300 Million§ Participants include COH, WHCRWA,

NHCRWA, NFBWA and CHCRWA§ Permitting ongoing§ Start Design in 2014

NE WATER PURIFICATION PLANT EXPANSION

¨ Improvements to the existing plant and increase to 92MGD

¨ 320 MGD expansion¨ Consisting of 4 – 80

MGD modules¨ New Intake Structure

¨ 2014 - Permitting & Pilot Studies

¨ 2015 - Begin Design¨ 2017 – Begin

Construction¨ 2021 – First Module

Completed

IMPROVEMENTS/EXPANSION TO THE PLANT TENTATIVE SCHEDULE

o www.SecondSourceProject.como Setup and Content being preparedo Launch date February 2014

SECOND SOURCE PROJECT WEBSITE

SECOND SOURCE TRANSMISSION LINES

¨ Joint WHCRWA/NFBWA¨ Projected 39 miles of 96” pipe¨ Permitting ongoing¨ Acquiring additional easements

o Sites acquiredo Sites platted and recordedo Joint WHCRWA/NFBWAo Environmental Permits issued

REPUMP & CENTRAL PUMP STATIONS

REPUMP STATION LOCATION

CENTRAL PUMP STATION LOCATION

CIP DISTRIBUTION LINES

§ Approximately 75 miles§ Evaluating alternate routes§ Acquiring easements§ Designing and constructing

sectionso Close loopso Deliver more water

in winter

o Bond Refundingo O&M Surface Water Costo Budget

FINANCES

BOND REFUNDING

¨ Refunded $47.370 M of bonds with an average coupon of 4.79%

¨ Issued only $35.86 M in Refunding Bonds at 2.63%

¨ Used $10 M in available funds to pay-off a portion of the Refunded Bonds

¨ Net Present Value Savings was 10.54% of the Refunding Bonds

¨ Total savings of $9.075 M (net of $10 M contribution)

ITEM 2007 2008 2009 2010 2011 2012 2013 2014

Treated Water Costs

0.3584 0.3799 0.6187 0.4341 0.3754 0.4088 0.4882 0.4544

Untreated WaterCosts

0.1054 0.1260 0.1224 0.1170 0.1109 0.1130 0.1343 0.1291

Major Rehab -- -- 0.2140 0.1468 0.0158 0.0375 0.1667 0.4112

Total Water Cost per 1000 Gallons

0.4638 0.5059 0.9551 0.6979 0.5021 0.5594 0.7891 0.9946

CITY OF HOUSTON FY

Figures for FY2007 through FY 2011 are based on true-up costs. FY 2012 from draft true-up not finalized. FY 2013 and FY 2014 are based on City of Houston

estimated O&M cost prior to true-up.

YTD BUDGET YTD ACTUALRevenues $30,558,813 $32,354,503

Expenditures

Operating Fund $ 7,869,343 $ 8,631,463

Bond Debt Service Fund Transfer

(Excluding NFBWA Share)

$19,278,828 $19,768,931

2013 BUDGET STATUS(through September)

Revenues $42,676,590

Expenditures

Operating Fund $11,520.608

Bond Debt ServiceFund Transfer(Excluding NFBWA Share)

$23,989,353

SURFACE WATER GROUNDWATER

CURRENT $2.30 $1.90

2014 $2.30 $1.90

HGSD Disincentive Fee$7.00 per 1,000 gallons

WATER CONSERVATION EDUCATION

CONSERVATION FOR ALL AGES

§ Homeowner brochures and billing inserts§ Annual resident newsletter § Participating Sponsor of major water

conservation education outreach effort(Save Water Texas Coalition); radio and television messages, comprehensive web site, social media

COLLABORATIVE EFFORT WITH KATY ISD CURRICULUM SPECIALISTSSOCIAL STUDIES CURRICULUM (GRADES 4-7)

FEATURES INTERACTIVE STORMWATER POLLUTION PANELS

MOBILE TEACHING LAB FOR KATY ISD

2ND GRADE ASSEMBLY PROGRAMS, LIFE ON THE TEXAS FRONTIERTEACHER WORKSHOPS, DISTRIBUTION OF CLASSROOM MATERIALS

LEARNING FROM OUR PAST TO INFLUENCE OUR FUTURE

§ Mobile Teaching Lab§ Interactive Display§ Classroom support

activities about causesand prevention

§ Collaborative effort withCity of Katy -- StudentVIDEO COMPETITION

We will schedule a second Open House at the Pump Station

in early 2014…

SUMMARY

WEST HARRIS COUNTY REGIONAL WATER AUTHORITY

§ Status of Conversion§ Current System and

Operations § 2025 System§ Finances§ Water Conservation

WHCRWA 2013 TOWN HALL MEETING