Ad Hoc Infrastructure Committee
Wednesday, 9:00 a.m., January 24, 2001Commission Hearing Room
4200 Smith School Road
Austin, TX 78744
Agenda Item No.
|Approval of the Committee Minutes from the previous meeting.|
|Summary of Minutes|
|1.||Chairman's Charges (Oral Presentation)||Committee Only|
|2.||Bond and Capital Program
Staff: Scott Boruff
Texas Parks and Wildlife
Ad Hoc Infrastructure Committee
November 8, 2000
BE IT REMEMBERED that heretofore on the 8th day of November 2000, there came on to be heard matters under the regulatory authority of the Parks and Wildlife Commission of Texas, in the Commission Hearing Room of the Texas Parks and Wildlife Department Headquarters complex, Austin, Travis County, Texas beginning at 3:30 p.m., to wit:
I. COMMISSION ATTENDANCE:
Lee M. Bass, Chair
Carol E. Dinkins
Ernest Angelo, Jr.
John Avila, Jr.
Dick Heath (absent)
Alvin L. Henry
Katharine Armstrong Idsal
Nolan Ryan (absent)
Mark E. Watson, Jr. (absent)
II. OPENING STATEMENT: Commissioner Bass called the meeting to order. The opening statement was read into the record by Executive Director Andrew Sansom.
III. APPROVAL OF MINUTES: Commissioner Bass asked for a motion to approve the minutes from the April 5, 2000 meeting. The motion was moved by Commissioner Henry, was seconded by Commissioner Idsal and carried. The motion passed unanimously.
IV. THE FOLLOWING ITEMS WERE PRESENTED TO THE COMMITTEE:
1. BRIEFING – Chairman Charges
Presenter: Mr. Andrew Sansom
2. BRIEFING – Capital Program Update
Presenter: Mr. Scott Boruff
Scott Boruff, Director of the Infrastructure Division, briefed the Commission on the status of the Bond and Total Capital Program. He began with reminding the Commission that in 1996, the agency chartered an Infrastructure Task Force Committee to review the critical backlog repair condition of the agency’s aging infrastructure. The Committee identified $75 million in critical repairs: $50 million for water/wastewater, $20 million for facility repair and $5 million for ADA. With this information, the Agency requested funding from the Legislature. The 75th Legislature provided $60 million in revenue bonds to address those needs. Out of $60 million, $40 million was identified for water/wastewater, $16 million for facility repair, and $4 million for ADA.
He further reminded the Commission that it was decided to distribute the $60 million revenue bond into four different issues. The first one was issued in March of 1998 and totaled $12 million. The second one was issued in February of 1999 totaling $18 million. The third one was issued in February 2000 and totaled $20 million. The remaining issue includes $3.5 million in interest earned bringing the total issue to $13.5 million. The last bond issue is anticipated for issuance in February 2001. He then explained to the Commission that we are managing three different revenue bonds at all times. Each bond issue will not have been fully expended before the next bond issue is distributed.
Next, Mr. Boruff explained the process of implementing a revenue bond project. From the time authority is received from the Legislature to the time of project construction and closeout, the process takes two-to-two-and-a-half years to complete. The majority of the expenditures are expended towards the completion of the project, resulting in a higher spending curve very late in the issuance.
He then moved on to explain the status of each issue of the Bond Program. He began with the FY 98 Bond Issue. Out of $12 million, a total of $11.5 million has been expended to date. Out of 87 projects, 92% are complete and the remaining is in the construction phase.
Out of the $18 million authorized from the FY 99 Bond Issue, a total of $9.36 million has been expended to date. Out of 132 projects, 28% are complete, 38% are in the construction phase, 29% are in the design phase, and the remaining 5% is currently in the bidding phase.
The third issue of approved bonds includes 125 projects with bond revenue totaling $20M. The issue was made available February 2000. A total of $1.1 million has been expended to date with $3.42 million encumbered. Only one percent is complete, however, 69% are in the design phase, 14% are in the construction phase, 11% are scheduled and 5% is in the bidding phase.
The last issuance of the $60 million bond revenue is scheduled for release in February 2001. The final issue totals $13.5 million. The proposed distribution is 68% for water/wastewater, 21% for facility repair and 11% for ADA.
Mr. Boruff commented to the Commission that Infrastructure not only manages bond dollars, but also manages non-bond capital dollars as well. He illustrated in a graph that in the last three years more dollars have been spent on non-bond projects than bond projects.
Mr. Boruff moved on to explain the status of the Total Capital Program. Currently, the program totals 552 active projects budgeted at over $93 million. He commented that we are already $700,000 ahead of our projected expenditure goal for this time period.
He then referenced our productivity increase. Over the last three years we have increased our expenditures from $14 million to over $24 million per fiscal year. This is partly due to our expanded contracting authority, which was authorized by the 76th Legislature. Another reason for the productivity increase is credited to the new automated Project Management Information System that assists with planning, scheduling, and tracking projects. The upcoming Facility Management System is anticipated to also aid in increasing productivity by affording the ability to predict future capital needs.
In summary, he showed a slide depicting a critical repair needs strategy. He explained to the Commission that in order to recover from our backlog and prevent another backlog situation, an additional $15 million is still needed. In addition, $12 million - $15 million is needed annually for anticipated scheduled repair and another $3 million - $6 million is needed for ongoing maintenance and minor repair.
Chairman Bass then commented that a project list divided by each legislative district and by critical need category is needed for the upcoming legislative session. Mr. Boruff was appreciated of his comment and assured the Commission we would have the information readily available.
V. OTHER BUSINESS: None
VI. ADJOURNMENT: There being no further business, Commissioner Bass adjourned the November 8, 2000 meeting of the Ad Hoc Infrastructure Committee of the Texas Parks and Wildlife Department.
(This item will be an oral presentation.)
Committee Agenda Item No. 2
Presenter: Scott Boruff
Ad Hoc Infrastructure Committee
Bond and Capital Program
I. DISCUSSION: Briefing on the status of the bond and capital program. The report will reflect project status of each bond issue, current status of capital dollars expended, and projected expenditure goals.