SULPHUR RIVER BASIN AUTHORITY BOARD OF DIRECTORS MEETING TUESDAY, OCTOBER 20th, 2015 1:00 P.M.

PRESENT:

  • Michael Russell, President
  • Borden Bell, Jr., Vice President
  • Patricia Wommack
  • Kirby Hollingsworth
  • Wally Kraft

STAFF:

  • Nancy Rose, Secretary/Treasurer
  • Kirk Patton, Attorney
  • John Jarvis, Consultant

ABSENT:

  • Brad Drake
  • David Neeley

VISTORS: See Attachment

ITEM# 1: MEETING CALLED TO ORDER AT 1:00 P.M:

Michael Russell, President called the meeting to order at 1:00 P.M.

He welcomed and thanked everyone in attendance.

ITEM# 2: INVOCATION:

Invocation was given by Borden Bell, Jr., Vice President.

ITEM# 3: DISCUSS AND TAKE ACTION ON THE APPROVAL OF THE MINUTES FOR

SEPTEMBER 15th, 2015:

Michael Russell, President stated that each one has a copy of the Minutes for September 15th,

2015. He asked if there were any comments or amendments.

A motion was made by Borden Bell, Jr., and seconded by Patricia Wommack to approve the

Minutes as presented.

The motion carried with all members present voting AYE.

ITEM# 4: DISCUSS AND TAKE ACTION ON THE APPROVAL OF THE REPORTS OF CASH

POSITIONS AND EXPENDITURES:

Michael Russell, President stated that we had $243,162.10 in the Checking Account as of

October 13, 2015.

He stated that each one has a copy of the General Ledger listing all the checks and to who they

were written.

A motion was made by Kirby Hollingsworth and seconded by Borden Bell, Jr., to approve the

Reports of the Cash Position and the Expenditures as presented.

The motion carried with all the members present voting AYE.

ITEM# 5: UPDATES ON THE CLEAN RIVERS PROGRAM:

Dr. Mike Buttram stated that he had helped with an Audit of the North Texas Municipal Water

District. He stated that was the first “Audit” that he had ever been involved with.

He stated that we were about to complete the 1st quarter monitoring in Lake Wright Patman.

ITEM# 6: DISCUSS AND TAKE ACTION IF NECESSARY AFTER “PRESENTATION OF AN OVERVIEW

OF THE SUNSET PROCESS” BY THE SUNSET COMMISSION GROUP:

Michael Russell, President turned the Presentation over to Sarah Kirkle with the Sunset

Commission. Sarah introduced herself (Sarah Kirkle) Review Director and the other four Sunset

Commissioners.

Ken Levine, Director and Jennifer Jones, Deputy Director and Robert Romig and Morgan

Constantino.

Sarah stated that the mission and performance of the Sulphur River Basin Authority are under

review by the Legislature as required under the Texas Sunset Act. She stated that they were

reviewing four of the smallest Texas River Authorities. She stated that agencies typically

undergo review once every 12 years, and about 20 to 30 agencies go through the Sunset

process each Legislature Session. She stated in 2015, the Legislature provided for the Sunset

Commission, composed of legislators and public members, to review the Authority, but unlike

other state agencies undergoing Sunset review, SRBA is not subject to be abolished under the

Sunset Act. However, based on the recommendations of the Sunset Commission, the Texas

Legislature will ultimately decide whether changes are needed to improve the Authority’s

mission and performance.

Sarah stated the Sunset review involves three steps. First, Sunset Commission staff will evaluate

the Sulphur River Basin Authority and issue a report in May 2016 recommending solutions to

problems found. A month or so later, the Sunset Commission will meet to hear public testimony

on the Authority and the recommendations of the Sunset staff. Based on public input and the

Sunset staff report, the Sunset Commission will adopt recommendations for the full Legislature

to consider when it convenes in January 2017.

She stated that they have been working with Nancy Rose and will continue working with Nancy

and also, at a later date, will be meeting with each Board of Director’s and Stakeholders.

She stated that the Sunset Commission will look at the following of Sulphur River Basin

Authority; History, Governance, Transparency and Operations.

ITEM# 7: DISCUSS AND TAKE ACTION ON PROCEDURE FOR RELEASING FINAL REPORTS AND

STUDIES TO THIRD PARTIES:

Michael Russell, President stated that at last month meeting, it was discussed to put this item

back on the agenda in regards to the study being released to Region C and not Region D.

Michael Russell, President stated that each one had a copy of the “Confidentiality” clause that

was listed in the original agreement.

Patricia Wommack stated that she thought Section 10: Confidentiality and Section 21:

Ownership of Documents should be revised and clause added by Kirk Patton, Attorney with a

“Resolution” at the next meeting for future agreements.

Patricia stated that if paid for by SRBA it belong to SRBA.

Kirk Patton, Attorney read the “Resolution” that he had prepared for the last month meeting.

It was stated that there would be no action taken on the “Resolution” at this time.

ITEM# 8: DISCUSS AND TAKE ACTION ON PROCEDURE FOR RELEASING THE “REVISED YIELD

STUDY”:

Michael Russell, President stated that each one had a copy of the “Revised Yield Study”.

Becky Griffith stated that everyone had received a copy of this study in the Notebook that she

passed out to all Board of Directors a couple of months ago.

Patricia Wommack stated that the two‐reports were different. She stated that the copy in her

Board Packages had several different pages and other differences.

Becky Griffith stated that she did not know what Patricia was saying, but the report in the

Notebook dates June 4, 2015 done by Jon Albright and Spencer Schnier was the correct study.

Becky stated she thought they were the same study.

John Jarvis stated there may possibly be a new drought of record.

Michael Russell, President asked John to find out, what the WAM estimation is and we may

need to write a letter to TCEQ. Michael stated that we put this as an agenda item for next

month meeting.

Kirby Hollingsworth asked John Jarvis if he was satisfied and approved this “Revised Yield

Study”, John’s reply to Kirby was “Yes”.

A motion was make by Kirby Hollingsworth and seconded by Wally Kraft to approve the

releasing of the Study dated June 4, 2015 by Jon Albright and Spencer Schnier the “Revised

Patman and Nichols Yield Modeling” as presented in the Notebook.

The motion carried with AYE.

Kirby Hollingsworth voting Aye.

Wally Kraft voting Aye.

Michael Russell, President voting Aye.

Borden Bell, Jr., Vice President voting Aye.

Patricia Wommack voting Nay

ITEM# 9: DISCUSS AND TAKE ACTION ON FINALIZING AND RELEASING THE “TIMBERLAND AND

AGRICULTURAL LAND IMPACT ASSESSMENT” ANALYSIS:

Bob Murray stated that the study was complete except he make a minor correction, but it will

not change any results. He stated that otherwise the study was ready for releasing.

A motion was made by Borden Bell, Jr., Vice President and seconded by Kirby Hollingsworth to

release the study and place on the Web Page and have hard copies available for the public

within seven days.

The motion carried with all members present voting AYE.

ITEM# 10: DISCUSS AND TAKE ACTION ON PROCEDURES FOR “LETTERS” BEING MAILED OUT

FROM SRBA’S BOARD OF DIRECTORS OR PRESIDENT:

Michael Russell, President stated a letter was mailed out because time was running out in

regards to “Wholesale Water Provider”.

Patricia Wommack stated that she felt the Board should know about “Letters” before they are

mailed out. She asked what the rush was; she had never heard the words “Wholesale Water

Provider” in regards to SRBA before the letter.

A motion was made by Wally Kraft and seconded by Borden Bell, Jr., that the President be

prudent and share with the Board of Directors and a notice be given to the Board of Directors

before mailing out “Letters”.

The motion carried with all members present voting AYE.

ITEM# 11: DISCUSS AND TAKE ACTION ON RESOLUTION AUTHORIZING EXECUTION OF THIRD

MODIFICATION TO PROFESSIONAL SERVICES AGREEMENT WITH SULPHUR BASIN GROUP,

PLLC (“SBG”):

Bob Murray stated that the Master Agreement “Professional Services Agreement” was

approved on January 20, 2015.

The First Modification was approved on April 21, 2015.

The Second Modification was approved on June 16th, 2015.

The Third Modification was approved on October 20, 2015.

A motion was made by Wally Kraft and seconded by Kirby Hollingsworth to authorize to enter

into Third Modification to Professional Services Agreement with Sulphur Basin Group, PLLC, in

accordance with the terms and provisions presented at this meeting of the Board of Directors.

A copy of said Third Modification to Professional Services Agreement is attached to these

Resolutions. It be Resolved, that Michael Russell, President of Sulphur River Basin Authority, is

authorized and directed to execute said Third Modification to Professional Services Agreement

on behalf of Sulphur River Basin Authority.

The motion carried with AYE.

Wally Kraft voted Aye.

Kirby Hollingsworth voted Aye.

Michael Russell voted AYE

Borden Bell, Jr., voted Aye.

Patricia Wommack voted Nay.

ITEM# 12: DISCUSS STATUTORY REQUIREMENTS THAT SRBA WOULD HAVE TO MEET IN

ORDER TO BECOME A “WHOLESALE WATER PROVIDER”:

Kirk Patton, Attorney read a letter to the Board of Directors in regards to statutory for SRBA to

be a Wholesale Water Provider.

The Texas Administrative Code contains the following definition of a “Wholesale Water

Provider”. “Wholesale Water Provider (WWP)…Any person or entity, including river authorities

and irrigation districts, that has contracts to sell more than 1,000 acre‐feet of water wholesale

in any one year during the five years immediately preceding the adoption of the last regional

water plan. The regional water planning groups shall include as wholesale water providers

other persons and entities that enter or that the regional water planning group expects or

recommends to enter contracts to sell more than 1,000 acre‐feet of water wholesale during the

period covered by the plan. (Title 31, Part 10, Chapter 357, Subchapter A, Rule 357.10).

SRBA does not have any contracts to sell more than 1,000 acre‐feet of water wholesale in any

one year during the five years immediately preceding the adoption of the last regional water

plan. Consequently, SRBA will have to qualify as a WWP under the provisions of the second

sentence of the above definition.

Rules of Texas Commission on Environmental Quality contained in Title 30, Part 1, Chapter 288,

Subchapter A, Rule 288.5, and Subchapter B, Rule 288.22, require a WWP to develop a water

conservation plan and a drought contingency plan prior to contracting for the wholesale of

water.

Michael Russell, President and Board of Directors asked that John Jarvis, Consultant to set up

some Training for the Board of Directors on the rules for “Wholesale Water Provider”.

ITEM# 13: UPDATES ON THE FEASIBILITY STUDY:

John Jarvis stated that on 09/30/2015 he attended the Project Development Team (PDT)

meeting and they went over information to be presented to Corps Headquarters during the

Alternative Milestone Meeting (AMM).

He stated on 10/05/2015 he met at the Corps office in Dallas, Texas for the Alternative

Milestone Meeting (AMM).

The objective of this reallocation study is to determine if reallocation at Lake Wright Patman is

a viable option for meeting the short term need of the local sponsor. The purpose for the AMM

is for the Vertical Team to agree on the final array of alternatives and the proposed path

forward.

The Dam Safety override factor in determination. Reallocation should not significantly impact

life safety.

There are risks and the Dam Safety Program priorities and resources.

a. Presentation of “International Paper Phrase 2 Analysis”.

There was no Presentation at this date and time.

b. Presentation and discussion concerning proposed new SBG Work Order.

This Presentation will be done at next month regular meeting.

ITEM# 14: PUBLIC COMMENTS:

1. Walt Sears, Administrator of Region D: He introduced Linda Price, Chairman of Region D

And Liz Fazio, CEO for Riverbend regional Water and Wayne Owens for Region C.

Walt asked the Board of Directors to be more Transparent and work and cooperation

with stakeholders.

2. David Simpson, State Representative, Longview, Texas from Gregg & Upshur Counties:

He stated the SRBA Board of Directors needs to be more Transparent. He wants agenda

information before the meeting. He stated it should not take 7 days to get study copies.

All actions items should be read and available, but they are not.

3. Gabe Tarr, Vice Chairman of TexAmerica Center Board of Directors.

He asked who are the people that are listed on the Contract Agreement between SRBA &

JCPD. Who is JCPD and Jon‐Lark, Inc.? He wants full disclosure.

4. Robert Lorance, Mayor for City of Redwater, Texas.

He asked, that SRBA support the City of Texarkana, Texas and Riverbend Water District

for water rights. Why the Advanced Funding Agreement with the Metro? Why Marvin

Nichols is the goal?

5. John Whitson, City Manager of Texarkana, Texas

He asked, that SRBA be more Transparent.

6. Linda Price, Chairman of Region D

She asked, that SRBA share their information (Basin Wide Study) with Region D and

others as requested by TWDB.

7. Fred Milton, Secretary of the Riverbend Regional Water District

He stated that he represent the City of New Boston, Texas for Riverbend

He asked that SRBA approve the “Resolution” for the City of Texarkana, Texas

He stated that he had asked for information and he was told “Not No but Hell No”.

He stated that SRBA needs to do a News Article for the Public to know what is going on.

8. Steve Mayo, Liaison for the City of Texarkana, Texas and Riverbend Water Resources:

He asked that they be the Wholesale Water Provider and Future Water Rights.

He asked that we put the “Resolution” on next month agenda

9. Gary Cheatwood, Region D

He stated that if they build Marvin Nichols it will only give him one way out of his

property. He stated, that SRBA needs to be more transparent. He does not want to lose

his Land. Building the Reservoir in the Sulphur River Basin would impact his Land.

10. Marshall Wood, Treasurer for Riverbend Water Resources District.

He stated that he asked for a copy of the JCPD Agreement two years ago and was told

“NO”… He thinks they should be able to put in their comments before the SRBA Board of

Directors votes on anything.

ITEM# 15: ANNOUNCEMENTS FROM THE BOARD OF DIRECTORS AND/OR STAFF:

The next meeting is set for Tuesday, November 17, 2015 at 1:00 P.M.

ITEM# 16: ADJOURNMENT:

A motion was made by Borden Bell, Jr., and seconded by Wally Kraft to Adjourn.

The motion carried with all members present voting AYE.