TBCD introduces a new round of bonds

WINNIE— As the population in Chambers County continues to expand, the Trinity Bay Conversation District continues to improve services by implementing various technologies and infrastructure.

TBCD held a regular meeting Wednesday, March 12, to discuss bonds for future projects, including a water line, water meters and a ground water storage tank.

Three items on the agenda address bonds for various projects, totaling about $3 million, while other items ensure proper paperwork is completed to allow for the bonds.

TBCD is planning to build a 20-inch water line, headed south across Interstate 10 from the water treatment plant in Winnie.

"We can't get enough water to the southside, and this is where the growth is," TBCD General Manager Jerry Shadden said.

The project has gone out for bids, with the lowest coming back at $559,370.

Since there is already a bid for this project, Shadden suggested using TBCD funds for the project with a reimbursement agreement.

The second project entails installing 2,700 auto-read water meters, which is estimated to cost about $837,000. The contractor for the project can install 500 meters a week.

The final project is to install an underground water storage tank, which would cost about $1,583,000. Shadden said the current tank has rusted and TBCD is required to replace it.

Shadden said, after discussion with their attorney, TBCD would only be able to borrow money for three years. Because of this, just the water tank project would cost $600,000 a year.

"I just don't have that kinda money," Shadden said. "I would be totally strapped to where I couldn't do anything but survive."

Due to this, the district plans to use bonds to cover fees for the projects.

Other items were passed to secure proper bond paperwork, including approving an application to the Texas Commission on Environmental Quality, approval to use Germer PLLC as bond counsel and approving a resolution authorizing U.S. Capital Advisors LLC to prepare the notice of sale for the bonds.

TBCD currently has a note of $970,850 a year for bonds from 2000, 2002, and 2012 that were used to construct water and sewer plants and the current office space.

Before Shadden joined TBCD in 2011, the bonds had an interest rate of about 6%, but Shadden was able to refinance to drop the rate to about 2%.

In 2026, the bonds from 2012 will be paid for.

"That means that $786,000 is gonna drop off, so the plants are completely paid for," Shadden said.

As of 2026, the note will be $307,000 for bonds from 2014. Those will be paid off in 2034.

The three projects will add about $320,000 annually to their yearly payment.

From 2025 to 2026, including the new bonds, the district will go from paying $970,850 to paying $628,900 yearly.

TBCD Board President Victor Caraway said the district will pay $27,000 a month for the next 15 years, confirmed by Shaden.

Funds within the budget are allocated for these projects so that bonds will be paid for through TBCD funds.

As for ongoing projects, Amos Roy, district employee, provided updates on drainage projects.

Roy's first update was on the Chambers-Liberty Counties Navigation District Siphon Pipe Project, which began in late January.

Roy said a leak was discovered when the water was turned on a couple of weeks ago. The crew is patching the pipe March 12 and hopes to release the water the next day.

The project's purpose was to replace the existing 72-inch pipe that is 200 feet in length.

Crews are still working on projects with Crooked Bayou, Onion Bayou, Elm Bayou watershed and a few other projects.

David Hoyt, operations manager for TBCD, and Shadden provided updates on utilities.

As for water meters, 60 were changed within the last month.

CLCND increased their rates for raw water from 88 cents per thousand to 92 cents per thousand. Right now, TBCD is paying CLCND and LMDA about $10,000 a month.

TBCD has switched to paperless billing and customers will no longer receive billing notices through the mail. Instead, customers will be emailed reminders.