Rapid Assessment Process Project Strategic Plan City of Alamo Municipal Water and Wastewater Project Hidalgo County, Texas Presented to: Project Sponsor and BECC Staff Transition Meeting December 19, 2002

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Rapid Assessment ProcessProject Strategic
PlanCity of AlamoMunicipal Water and
Wastewater Project Hidalgo County,
TexasPresented toProject Sponsor and BECC
StaffTransition MeetingDecember 19, 2002
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Agenda

• General Aspects
• Environmental and Human Health Indicators
• Technical Approach, Objectives and Funding Plan
• Public Participation
• Sustainable Development
• Record of Project Coordination

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General Aspects

• Project Location
• City of Alamo is located in Hidalgo County, Texas
  between McAllen and Harlingen. The community is
  10 miles north of the U.S./Mexican Border.

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General Aspects

• State of Existing WTP and Distribution System
• Originally constructed in the 1920s and last
  upgraded in 2002.
• Systems include a 5.0 MGD WTP, storage reservoir,
  clarifiers and filters.
• The water storage capacity includes two elevated
  storage tanks (150,000 and 300,000 gallons
  respectively) and two ground storage tanks (1
  million gallons each).
• The water distribution system includes
  approximately 370,000 linear feet of distribution
  water lines and 3,750 retail water connections.
• Concerns No back-up generator for emergencies.
  Deteriorating elevated water storage tanks.
  Exceedance of contaminant levels for total
  trihalomethanes (TTHM) in the public water
  system. Additional water rights. Water breaks due
  to current pressure from new WTP.
• Proposed Water Treatment System Improvement
  Project
• Upgrade and refurbish an elevated water storage
  tank.
• Improvements to the WTP systems to address TTHM
  levels and pressure problems.
• Addition of back-up power supply to the WTP.
• Improvements to eliminate water loss at HCID2
  diversion point.
• Additional Water Rights

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General Aspects

• State of Existing WWTP and Collection System
• The system includes a WWTP with a capacity of 2.0
  MGD and consists of 8 lagoons located on 45
  acres.
• Sludge left in the first lagoon and deteriorating
  lagoon embankments and perimeter fence.
• The wastewater collection system contains 19 lift
  stations and over 286,000 linear feet of sewer
  lines. Most of these sewer lines are located near
  the center of town. Approximately 40 of the
  original clay pipe lines have been replaced with
  PVC lines.
• Approximately 100 original brick lined manholes
  with infiltration and inflow problems during rain
  events need replacement.
• Concerns Expansion of WWTP based on TCEQs
  inspection findings on capacity. Overall
  maintenance of WWTP site. Deteriorating lift
  stations, brick lined manholes and clay pipes.
  Facility inventory.
• Proposed Wastewater Treatment System Improvement
  Project
• Improvements to lift stations, brick lined
  manholes, clay pipes and the addition of an SCADA
  system.
• Sludge removal in the first lagoon, lagoon
  embankment repair work and replacement of
  perimeter fence.

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General Aspects

• Total Estimated Cost TBD
• (Based on STEP I Application)

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General Aspects
Project Sponsor Profile
Prior Agency Support and Existing Studies

• Population 14,760
• Growth rate (90-00) 79.8
• MHI 23,928.00
• Unemployment rate 8.7
• Legal utility provider
• 3,750 water accounts
• 3,560 sewer accounts
• 17 employees (7 certified operators)
• Billing efficiency 99

• USDA infrastructure funding for construction of
  new 5.0 MGD WTP and rehabilitation of City
  streets. The City issued a Certificate of
  Obligation for 2.9 million for the same project.
• CDBG funding provided for reconstruction of
  streets, waterlines and stormwater drainage in
  colonias.
• EDA funding for expansion of WWTP in 1992.
• No prior BECC or NADB assistance.
• 1994 WTP study for WTP expansion.

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Environmental and Human Health Indicators

• Human Health Indicators
• Water distribution deficiencies show existing WTP
  capacity is not adequate to meet peak demands or
  fire protection demands.
• TTHM levels have created deficiencies in water
  quality and threat to the health and safety of
  the Citys residents.
• Although existing statistics are not specific to
  the City of Alamo, the Texas DOH has indicated
  that cases of Cryptosporidiosis and Amebiasis
  have been reported in Hidalgo County. The number
  of cases per 100,000 people are as follow

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Environmental and Human Health Indicators

• Environmental Indicators
• The improvements to the WTP and WWTP systems will
  enhance and protect the general health of the
  population and environment.
• Improvements will eliminate deteriorating lift
  stations, infiltration problems in clay pipes and
  brick lined manholes, which increase risk for
  potential groundwater contamination.
• Wastewater service to colonias and subdivisions
  around the City will help reduce and eliminate
  the current discharge of wastewater into septic
  and outdoor systems.

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Environmental and Human Health Indicators

• Compliance with Environmental Norms Regulations
  Including Violations
• To comply with TCEQs requirements, the City must
  initiate planning for the expansion of the
  existing wastewater treatment plant when the
  influent flow reaches 75 of the permitted
  average daily flow for three consecutive months.
• Additional compliance with the regulations
  requires the City to take proper measures to
  reduce the exceeding maximum contaminant levels
  for total trihalomethanes (TTHM) in the public
  water system Community has taken action on this
  item.

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Technical Approach,Objectives and Funding Plan

• Project Objectives
• Rehabilitation and expansion of the water
  distribution and wastewater collection system.
• Expansion of the wastewater treatment plant.
• Refurbishing of an elevated storage water tank
  and improvements to the water treatment plant.
• Technical Approach
• Technical Assistance needed to develop the
  following documents
• Facility Plan and EID for water and wastewater
  systems.
• Financial Analysis.
• Public Participation Program.
• Final Design.
• Rate Study.

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Technical Approach,Objectives and Funding Plan

• Identified Potential Funding Sources
• Texas Water Development Board (TWDB)
• Funds may be available through TWDB Dfund II,
  EDAP and CWTAP
• North American Development Bank (NADB)
• BEIF and IDP
• Border Environment Cooperation Commission (BECC)
• PDAP program
• US Army Corps of Engineers

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Technical Approach,Objectives and Funding Plan

• Project Sponsor Financial Potential
• Revenues and Expenditures Summary (millions)
• 1999 2000 2001
• Revenues 1.4 1.5 1.4
• Expenses 1.1 1.2 1.1
• Net Available
• from Operations 0.3 0.3 0.4
• Existing Debt 2.9 million Annual Debt Service
  TBA
• (Bond due in installments of 7,000 to 155,000
  thru August 2040 at interest of 4.5 percent.)
• Water WW
• Average Monthly Bill 13.50 7.00

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Technical Approach,Objectives and Funding Plan

• PDAP Eligibility Criteria
• 1) Financial strategy for the entire
  project Yes
• 2) Project sponsor awareness of technical aspects
  of project Yes
• 3) Project sponsor has provided demonstration of
  documentation Yes
• support for the project
• 4) BEIF financing eligible Yes
• 5) C.N.A. and/or state/local gov. support, for
  projects in Mexico NA
• 6) Funds allocated on a per task basis Yes
• 7) Project coordination with all government
  agencies involved Yes
• 8) Value engineering as required under BEIF
  program Yes

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Technical Approach,Objectives and Funding Plan

• BEIF Eligibility Criteria
• 1) Project located within 100 km of the
  border Yes
• 2) Project addresses a human health and/or
  ecological issue Yes
• 3) Project provides U.S. side benefits Yes
• 4) Project scope entails community infrastructure
  in W/WW Yes
• 5) Project sponsor to pursue Certification of
  Project Yes
• 6) Drinking water projects quality of water
  only, not raw water supply Yes
• 7) Projects have a funding strategy with funding
  sources identified Yes
• 8) Projects that discharge into U.S. side waters
  to target US norms Yes
• 9) Payment and benefit to public entity only not
  private sector Yes
• 10) For final design must meet eligibility
  requirements NA
• 11) Colonias projects, after 06-01-01,
  eligibility based on established Yes
• enforceable ordinances preventing
  exacerbation or new colonias

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Technical Approach,Objectives and Funding Plan
Task Name Duration Start Finish
Application Process 11 days 07/25/02 08/08/02
Rapid Assessment Process 89 days 08/19/02 12/19/02
Technical Assistance Process 29 days 12/03/02 01/24/03
Project Development Process (TA, Public Participation, NEPA) 522 days 12/16/02 12/28/04
Project Design Process 325 days 10/01/03 12/28/04
TWDB Funding 66 days 10/01/03 12/31/03
NADB Rate Study 67 days 05/13/04 08/13/04
BECC Certification Process 39 days 10/18/04 12/09/04
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Technical Approach,Objectives and Funding Plan

• Agency Perspectives
• NADB
• An initial analysis of the proposed project in
  regards to BEIF eligibility criteria provides a
  sense that the project will be eligible for this
  program.
• An affordability will be completed to determine
  any participation with BEIF grants including
  construction, hook-up and transition support.
• Loan assistance can be available for construction
  and potential support may be provided by the IDP
  for completion of a rate study and other
  institutional capacity building needs.

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Technical Approach,Objectives and Funding Plan

• Agency Perspectives
• TWDB
• Because the project will address recently annexed
  colonias, this project may be eligible for EDAP
  funding through TWDB.
• Water Rights purchases may be an eligible
  activity supported by EDAP if the need for the
  additional supply is related to the new service
  provided to the colonias.
• Project will meet criteria for application to SRF
  and Dfund II.

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Technical Approach,Objectives and Funding Plan

• Technical Assistance Tasks
• Task Amount
• Water and Wastewater Facility Plan 160,000
• Environmental Information Document 40,000
• Financial Analysis 20,000
• Public Participation Program 10,000
• Project Certification Document 20,000
• Final Design TBD
• TOTAL 250,000

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Technical Approach,Objectives and Funding Plan

• Institutional Capacity Building
• The project sponsor identified such needs as a
  capital improvement plan, rate study and the
  development of public participation programs.
• The Frank M. Tejeda Center has conducted an
  Institutional Capacity Needs Assessment with the
  City of Alamo.

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Technical Approach,Objectives and Funding Plan

• Institutional Capacity Building
• In specific, observations were made pertaining
  to
• Current Operating Violations
• Other Infrastructure Projects Ongoing or Planned
• Planning
• Project Development and Funds Management
• Outsourcing
• Operational Capacity
• Management Capabilities
• Governance
• Other Issues

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Technical Approach,Objectives and Funding Plan

• Potential Obstacles
• The City of Alamo informed the BECC that some
  potential obstacles for the implementation of
  this project may include water rights
  acquisition, public perception of water quality
  issues given existing litigation related to
  levels of total trihalomethanes (TTHM) and
  wastewater treatment plant technology, or site
  changes.
• Although the City has a water CCN inter-local
  agreement with the City of San Juan, no obstacles
  are anticipated to meet the proposed project
  objectives.
• Improvements and planning should take into
  consideration that the Citys population does not
  reflect additional winter Texans (between 6,000
  and 7,000) that come to the area for
  approximately 5-months every year.

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Public Participation

• Identification of Main Stakeholders
• City of Alamo and its residents
• Texas Water Development Board
• Texas Commission on Environmental Quality
• North American Development Bank
• Frank M. Tejeda Center
• Border Environment Cooperation Commission
• United States Department of Agriculture
• Secretary of State
• US Army Corps of Engineers

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Public Participation

• Local Politics
• The Mayor has been in office for the past 10-14
  years.
• Mayor and four commissioners, with a four-year
  election term, and one municipal judge with a
  two-year, are all elected at large.
• The relatively new commission recently approved
  the bond issuance to support the WTP improvements
  and also passed rate increases for the utility,
  displaying their commitment to sustainable
  operations.

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Sustainable Development

• Minimum Criteria Requirements
• The City of Alamo made a commitment to comply to
  all applicable minimum requirements for the
  project in compliance with the BECCs sustainable
  development criteria during the meeting held on
  August 22, 2002 at the local City Hall, with
  BECC, SOS and the Frank M. Tejeda Center.

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Sustainable Development

• Service Indicators
• Water service indicators all available water
  service indicators were recorded, identifying all
  relevant factors for the proposed infrastructure
  project in the City of Alamo.
• Sewer service indicators all available sewer
  service indicators were recorded in relevance to
  the proposed project.
• Wastewater service indicators all available
  wastewater service indicators were recorded in
  relevance to all factors of the proposed project.

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Immediate Action Items

• Financial Potential separate accounts, identify
  reserves and policy.
• Formation of Steering Committee.
• Not Available Water, Sewer and Wastewater Service
  Indicators.
• Population of Future Colonias that will Become
  Part of the Citys System.
• Consultant Proposal.