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.
