Infrastructure Discussion 1 Mark A. Harral and Raul Rodriquez April 19 th, 2016

 Mission Statement of City’s Water Utility  Broad Infrastructure Repairs Needed-$45M  History of City’s Water Use and Rights  Current Application for 30 a-f Industrial Use and 960 a-f Public Use Production Permits  Justification for 960 a-f Public Use Permit ◦ Wells support water users across 10,240 acres; ◦ Pipeline is 20 years past useful life and will fail; ◦ Provides 3 months to fix a manmade or weather event.  City’s Growth is above TWDB projections and existing water rights 2

 Build and maintain a resilient infrastructure and legal rights to provide the lowest cost, highest quality water possible to our water users 3

 To replace the 9 mile water main pipeline and needed repairs of Belding well field and plant are $15M;  To repair and replace the sewer system and upgraded plant is $15M  To needed investments in the police building and new land field are $15M  This Presentation only addresses the water infrastructure issues 4

 Relied on wells in permit application since 1930s;  Relied on Belding well field since 1960’s;  Existing pipeline installed and conveyed by Pecos County to City during the 1960s;  Purchased Stockton Farms and Blue Ridge Farms as secondary well field locations early 1990’s;  City built a water station before 1960s to provide water to construction and oil and gas industries; 5

 City registered 36 wells from all of the City’s property;  City only applied for HE Permits for 8,081 a-f ◦ using 4 registered wells at Belding; ◦ 8,081 a-f was only for Municipal Use; ◦ City park wells have their own HE Permits  Initial Filing Errors by City in 2005 ◦ Did not apply for Industrial Use for existing water station; ◦ Did not apply for additional Municipal Use for wells relied on by City for  Main water source prior to Belding Well field since 1930’s  Emergency Situations since at least 1960s; 6

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 Location of Collection System/Wells  Location of Beneficial Use ◦ Existing Water Station inside Pecos County ◦ Existing Secondary RO Plant built in 2012  Customers ◦ Construction and Oil & Gas Industries ◦ Existing Water Users 8

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 Clerical error-City did not file for an additional Historical Use Permit in 2005;  City has consistently relied upon these wells for main water source since 1930s and emergency needs for resilience purposes since 1960;  Pipeline from Belding to Ft. Stockton is 20 years past useful life and needs to be replaced;  Ft. Stockton needs existing 8,081 a-f HE permit to meet near term growth needs of City’s water users. 10

 Every week 150,000 gallons are produced to storage tank in case of emergency;  When an emergency exists, 500,000 gallons are produced a day from each well;  Wells supply water in case of emergencies to: ◦ 16 sections-10,240 acres of land; ◦ Schools and governmental buildings; ◦ Pecos County buildings; ◦ 3,600 meters equivalent to over 8,000 citizens 11

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 TWDB projects are significantly lower than current City’s use of water;  City is growing between 9.66% to 7.55% based on annual Sales Tax Revenue;  City’s water usage increasing between 2.73% to 3.25% a year based on Historical data;  By 2030-City May Exceed 8,081 Existing Water Rights 14

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 The City’s production permit application for emergency use has nothing to do with selling water to Republic Water Company  The City’s production permit application has everything to do with providing water to our existing customers with MPGCD 21