Agenda

1. Rapid Assessment ProcessProject Strategic PlanCity of La JoyaWastewater Treatment Plant and Collection System Improvements Hidalgo County, TexasPresented to: Project Sponsor and BECC StaffTransition Meeting January 9, 2003

2. Agenda • General Aspects • Environmental and Human Health Indicators • Technical Approach, Objectives and Funding Plan • Public Participation • Sustainable Development • Immediate Action Items • Project Development Schedule

3. General Aspects • Project Location • City of La Joya is located in Hidalgo County, Texas west of McAllen. The community is 5 miles north of the U.S./Mexican Border.

4. General Aspects • State of Existing WWTP and Collection System • Originally constructed in 1982, the WWTP is a no-discharge pond facility. • The system includes a WWTP with a capacity of 0.175 MGD and consists of two lagoons, two stabilization ponds, one holding pond, one submersible pump and wet well for irrigation and re-circulation purposes and one 5.24-acre irrigation field. • The WWTP includes five storage ponds with total capacity of 27.8 acre-feet for storage of treated effluent prior to evaporation and irrigation. • It should be noted that the renewal permit requires 28.9 acre grassland drainage area. • Currently in poor condition, the WWTP operates well-above its designated capacity. • The City’s wastewater collection system consists of 8-inch gravity sewer pipe, 4-inch to 6-inch force main, and 9 lift stations, with most of the gravity sewer mains flowing at full capacity and not able to accept additional flow. • Concerns: Currently violating renewal permit requirements with only 5.2 acres of grassland available for disposal. Additional expansion is required to address capacity demands.

5. General Aspects • Proposed Wastewater Treatment System Improvement Project • Continued use of the existing WWTP requires acquisition or lease of additional disposal land under the current TCEQ no-discharge permit is still needed. • Expansion/Replacement of existing WWTP in order to comply with TCEQ’s permit, which requires the City to commence construction of additional treatment facilities after reaching 90 percent of capacity. • The WWTP will be constructed to accommodate additional flow from the expanding school district and from the planned extension of wastewater services to outlying colonias of Tierra Blanca, Havana and Penitas. • The City agrees with the existing technical studies’ recommendation to construct a new conventional WWTP rather than expanding the existing WWTP because of land requirements of that technology. The proposed alternative for the ww treatment will implement an activated sludge process consisting of oxidation ditches, clarifiers, chlorine disinfections, and sludge processing facilities, requiring approximately 9-acres and treat 1.57 MGD. • Improvements to the existing wastewater collection system, including the rehabilitation of some existing lift stations, collection lines, manholes, laterals, extension of new service to the outlying colonias and household connections.

6. General Aspects • Total Estimated Cost: $8.7 Million • (Based on STEP I Application)

7. Population: 3,303 (5,027 with colonias) Colonias Population Penitas: 958 Tierra Blanca: 380 Havana: 386 Growth rate (90-00): 26.8% MHI: $22,820.00 Unemployment rate: 19.6% Legal utility provider 985 water accounts 1,073 sewer accounts 10 employees (4 certified operators) Billing efficiency: 96 % USDA – City applied for funding for construction of lift stations in 2001 (currently awaiting completion of review by USDA). CDBG – grant funding provided in 2001 to prepare plans, specs and estimates to re-certify pond-lining and repair areas of erosion of the WWTP stabilization and holding ponds. TWDB – the City has applied for funding for the proposed project. No prior BECC or NADB assistance. 2001 – Environmental Information Document. Drafted Category A, B and C planning documents per TWDB. General Aspects Project Sponsor Profile: Prior Agency Support and Existing Studies:

8. Environmental and Human Health Indicators Human Health Indicators • The limitations of the WWTP pose a direct threat to the health and safety of the residents of La Joya, given the potential health risks that can be derived from groundwater contamination due to higher application rates. • The residents of Tierra Blanca, Havana and Penitas currently utilize septic tanks and drain fields. Failure of these systems represents a public risk. • Most of these on-site systems do not meet TCEQ On-Site Sewage Facilities design requirements, with most residential lot sizes with less than 0.5 acres or multiple homes on a single lot.

9. Year Disease Case Region 11: Hidalgo County Texas (All Other Regions) 1997 Cryptosporidiosis 0.1 0 – 0.8 Amebiasis 1.7 0 – 1.2 1998 Cryptosporidiosis 0.6 0 – 43.2 Amebiasis 1.4 0 – 1.0 1999 Cryptosporidiosis 0.5 0 – 1.1 Amebiasis 0 0 – 1.3 Environmental and Human Health Indicators Human Health Indicators • The expansion of the City’s WWTP and the rehabilitation of the existing collection system will address several human health and environmental concerns of the residents of City of La Joya and outlying colonias of Tierra Blanca, Havana and Penitas, which currently utilize septic tanks and drain fields. • Although existing statistics are not specific to the City of La Joya, 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:

10. Environmental and Human Health Indicators Environmental Indicators • The poor conditions and under sizing of the existing WWTP may have a significant environmental impact on the groundwater and air quality of the area. • Overflow conditions and exposed wastewater accumulated at the surface of land disposal areas due to higher application rates can create a pest and odor nuisance for the community of La Joya. • Groundwater contamination may occur due to improper lining of the stabilization ponds and higher land application rates on designated disposal areas. • The proposed project will bring positive improvements to the general environment of the City of La Joya are by eliminating the environmental impacts that can be caused by the current wastewater disposal practices and systems deficiencies.

11. Environmental and Human Health Indicators • Compliance with Environmental Norms & Regulations Including Violations • The City received a notice of violation on January 5, 2000, by TCEQ, regarding the City’s failure to commence additional construction planning of the WWTP after reaching 90 percent of capacity for three consecutive months. • Previous TCEQ violations included the need to repair stabilization and holding pond embankments, failure to provide an audio-visual alarm system for all lift stations and failure to submit a permit application within the appropriate time before the expiration date of the effective permit. • The City needs to improve the existing wastewater distribution system to resolve the overflow conditions in pipelines due to the increase in flow by rainfall events, causing significant increase to influent at the WWTP.

12. Technical Approach,Objectives and Funding Plan • Project Objectives • Improvements to the wastewater treatment, rehabilitation of existing wastewater collection system and expansion of new collection services to meet the demands of the existing population of the City, and to comply with TCEQ’s permit requirements. • The expansion will allow the City to provide wastewater services to the outlying colonias of Tierra Blanca, Havana and Penitas. • Technical Approach • Technical Assistance needed to develop the following documents: • Facility Plan and EID for WWTP improvements (In progress and funded by CDBG). • Preliminary Engineering Report and Environmental per USDA • Financial Analysis. • Rate Study. • Public Participation Program. • Engineering Design for the proposed wastewater systems improvements.

13. 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 • United States Department of Agriculture (USDA) • Funds tailored for rural areas with populations of less than 10,000 • North American Development Bank (NADB) • BEIF and IDP • Border Environment Cooperation Commission (BECC) • PDAP program • US Army Corps of Engineers

14. Technical Approach,Objectives and Funding Plan • Project Sponsor Financial Potential • Revenues and Expenditures Summary (millions) • 199920002001 • Revenues $1.1 $0.5 $0.5 • Expenses $1.4 $0.03 $0.2 • Net Available • from Operations ($0.3) $0.5 $0.3 • Existing Debt: $0 Annual Debt Service: $0 • WaterWW • Average Monthly Bill: $23.50 $22.50 • (City approved rate increase in July 2002.)

15. 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

16. 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 NA 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 Yes 11) Colonias projects, after 06-01-01, eligibility based on established Yes enforceable ordinances preventing exacerbation or new ‘colonias’

17. 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 analysis 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.

18. Technical Approach,Objectives and Funding Plan • Agency Perspectives - TWDB • Because the project will address nearby colonias, this project will be eligible for EDAP funding through TWDB, a process already initiated by the community. • Project will meet criteria for application to SRF and Dfund II. Application to be included on priority list (IUP) needs to be submitted in Feb. 2003. • The community will include a line-item request for project management assistance. • Upsizing collection lines of the existing system will not be eligible for EDAP.

19. Technical Approach,Objectives and Funding Plan • Technical Assistance Tasks • Task Source • Facility Plan and EID CDBG • Revisions to Planning Docs to meet USDA BECC • Financial Analysis BECC • Public Participation Program BECC • Project Certification Document BECC • Final Design BECC/Other

20. Technical Approach,Objectives and Funding Plan • Institutional Capacity Building • The project sponsor identified such needs as a capital improvement plan, rate study, project management assistance and the development of public participation programs. • The Frank M. Tejeda Center has conducted an Institutional Capacity Needs Assessment with the City of La Joya.

21. Technical Approach,Objectives and Funding Plan • Institutional Capacity Building • In specific, observations were made pertaining to: • Current Operating Violations – WWTP capacity, berm wall leaks. • Planning – Under development per TWDB guidelines, may need modification to meet USDA requirements. • Project Development and Funds Management – City requires assistance. • Outsourcing – City provides all operation services. • Operational Capacity – Additional certified operators will be needed, specifically with “B” and “C” certifications. Operator training recommended. • Management Capabilities – working with the Tejeda Center for continued assistance. • Governance – Recommend elected official training and development of manuals.

22. Technical Approach,Objectives and Funding Plan • Potential Obstacles • Inter-local agreement are complete with the City of Penitas to allow the City to provide wastewater treatment within the Penitas wastewater CCN (No. 20794), further obstacles for this community are not anticipated to meet the proposed project objectives. • La Joya WSC has agreed to decertify a portion of CCN to provide an opportunity for the City to certify this area. Further obstacles are not anticipated on this issue. • USDA has not participated in RAP and is a potential funding source for the project. Efforts must continue to be made to bring this agency to the table. Modifications to planning documents be required. • Potential obstacles may exist because of the public perception problems encountered during the recently certified project with La Joya WSC. • The final WWTP site selection process should take into account significant public outreach. A site is recommended in the existing planning documents, public outreach must be extensive to comfort the response of the community.

23. Public Participation • Identification of Main Stakeholders • City of La Joya 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 Local Politics • The City’s government structure is composed of a City Mayor and two commissioners. Current counsel members have a two-year term. The Mayor has a long history of public service with this community.

24. Sustainable Development Minimum Criteria Requirements • The City of La Joya made a commitment to comply to all applicable minimum requirements for the project in compliance with the BECC’s sustainable development criteria. Based on the status of existing planning and capacity assessment conducted by the Tejeda Center, a strategy to meet the applicable requirements has been included in Attachment H of the Strategic Plan.

25. Sustainable Development • Service Indicators • Water service indicators: all available water service indicators were recorded. • Sewer service indicators: all available sewer service indicators were recorded. The indicators describe 99% coverage of the existing service area with 1073 connections. Other flagged indicators such as O&M problems, infiltration/inflow problems will be addressed with the proposed project . • Wastewater service indicators: all available wastewater service indicators were recorded. Indicators were not provided to describe actual flow into the existing WWTP or sludge quality. O&M problems and non-compliance notifications will be addressed with the proposed project.

26. Immediate Action Items • City of La Joya • Provide procurement documentation for consultant selection. • Determine financial needs to complete the development of technical documents to meet TWDB requirements. Is the existing CDBG funding adequate? • Provide letter accepting Strategic Plan. • Formation of Steering Committee. • Provide additional information to complete Baseline Conditions report and TBD indicators. BECC • Develop SOW. SOW to include a determination of modifications required to meet USDA requirements.

27. Project Development Schedule