LCRA Transmission Services Corporation Board Agenda Wednesday, May 20, 2015 9:00 a.m. LCRA Board Room Austin Items from the Chief Executive Officer Chief Operating Officer s Update Items from the Chair Items from the Chief Financial Officer 1. Financial Report... 4 Consent Items 2. Minutes of Prior Meetings... 5 Action / Discussion Items *3. Conveyance of a Distribution Line Easement in DeWitt County... 13 4. Acquisition of Interests in Real Property - Use of Eminent Domain in DeWitt County... 16 5. Acquisition of Interests in Real Property - Use of Eminent Domain in Pecos County... 23 6. Acquisition of Interests in Real Property - Use of Eminent Domain in Gonzales County... 30 7. Acquisition of Interests in Real Property - Use of Eminent Domain in Guadalupe County... 37 8. Fiscal Year 2016 LCRA Transmission Services Corporation Business and Capital Plans... 49 *This item requires the approval of at least 12 Board members. Legal Notice Although this is the expected agenda, the Board may discuss or take action on any item listed in the legal notice, which may include some items not currently on the Board agenda. Legal notices are available on the Texas Secretary of State website 72 hours prior to the meeting at www.sos.state.tx.us/open. Executive Session The Board may go into executive session for deliberation on the matters listed in the legal notice posted pursuant to Chapter 551 of the Texas Government Code. The Board may take final action on any of the executive session matters upon reconvening in open session pursuant to Chapter 551 of the Texas Government Code. LCRA Transmission Services Corporation Board Agenda - May 2015 1
OVERVIEW OF LCRA TRANSMISSION SERVICES CORPORATION In connection with the implementation of retail competition in the electric utility industry in Texas, LCRA was required by the Texas Legislature in its amendments to the Public Utility Regulatory Act (enacted in 1999 under state legislation known as Senate Bill 7, and referred to as SB 7) to unbundle its electric generation assets from its electric transmission and distribution assets. LCRA conveyed, effective Jan. 1, 2002, all of its existing electric transmission and transformation assets (collectively, the Transferred Transmission Assets) to the LCRA Transmission Services Corporation (LCRA TSC) pursuant to the terms of an Electric Transmission Facilities Contract (the Initial Contractual Commitment), dated Oct. 1, 2001. LCRA TSC is a nonprofit corporation created by LCRA to act on LCRA s behalf pursuant to Chapter 152, Texas Water Code, as amended. After Jan. 1, 2002, LCRA TSC engaged in the electric transmission and transformation activities previously carried out by LCRA and assumed LCRA s obligation to provide, and the right to collect revenues for, electric transmission and transformation services. LCRA TSC is an electric transmission service provider (a TSP) under the state s open-access electric transmission regulatory scheme within the approximately 85 percent area of the state covered by the Electric Reliability Council of Texas (ERCOT). In such capacity, LCRA TSC is entitled to receive compensation from all electric distribution service providers using the electric transmission system within ERCOT. As a TSP in the ERCOT region of the state, the rates that LCRA TSC will charge for transmission services are regulated by the Public Utility Commission of Texas (PUC) and determined pursuant to transmission cost of service rate proceedings filed with and approved by the PUC. Within the framework of SB 7, LCRA TSC implements the electric transmission business of LCRA, including the expansion of electric transmission services outside of LCRA s traditional electric service territory. LCRA personnel are responsible for performing all of LCRA TSC s activities pursuant to a services agreement between LCRA TSC and LCRA. This includes procuring goods and services on behalf of LCRA TSC and is reflected in the LCRA Board agenda contracts. Under the LCRA Master Resolution, defined as the LCRA Board resolution governing LCRA s outstanding debt, and certain provisions of state law, the LCRA Board is required to exercise control over all operations of LCRA TSC. This control includes approval of LCRA TSC s Business Plan and of the sale or disposition of any significant assets of LCRA TSC. The Board of Directors of LCRA TSC (LCRA TSC Board) is appointed by and serves at the will of the LCRA Board. The current membership of the LCRA TSC Board is made up entirely of the existing LCRA Board. The LCRA TSC Board Policy on Authority and Responsibilities directs that the Business Plan of the affiliate include for approval a schedule of capital projects proposed for the fiscal year. The policy also states that only deviations from the approved plan will be brought before the LCRA TSC Board. As such, the LCRA TSC Board agenda will not include consent items to approve specific capital projects, unless the project scope or budget changes significantly from what was originally approved. 2 LCRA Transmission Services Corporation Board Agenda - May 2015
LCRA Transmission Services Corporation Board Agenda - May 2015 3
FOR DISCUSSION 1. Financial Report Board Consideration Staff presents this report monthly to the Board for discussion. Summary The financial report for LCRA Transmission Services Corporation covers the month and fiscal year to date. Presenter(s) Julie Rogers Controller 4 LCRA Transmission Services Corporation Board Agenda - May 2015
FOR ACTION (CONSENT) 2. Minutes of Prior Meetings Proposed Motion Approve the minutes of the February 18, March 11 and April 14, 2015, meetings. Board Consideration Section 4.06 of the LCRA Transmission Services Corporation bylaws requires the secretary to keep minutes of all meetings of the Board. Budget Status and Fiscal Impact Approval of this item will have no budgetary or fiscal impact. Summary Staff presents the minutes of each meeting to the Board for approval. Exhibit(s) A - Minutes of Feb. 18, 2015, meeting B - Minutes of March 11, 2015, meeting C - Minutes of April 14, 2015, meeting LCRA Transmission Services Corporation Board Agenda - May 2015 5
EXHIBIT A Minutes Digest February 18, 2015 15-01 Approval of the minutes of the Dec. 16, 2014, meeting. 15-02 Approval of the Capital Improvement Project Authorization Request for the Blewett Substation Addition Project. 15-03 Approval of the Capital Improvement Project Authorization Request for the Transmission Line T485 Modification Project. 15-04 Approval of the Capital Improvement Project Authorization Request for the Lytton Springs Autotransformer Failure Remediation Project. 6 LCRA Transmission Services Corporation Board Agenda - May 2015
MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE LCRA TRANSMISSION SERVICES CORPORATION Austin, Texas February 18, 2015 Pursuant to notice posted in accordance with the Texas Open Meetings Act, the Board of Directors (Board) of the LCRA Transmission Services Corporation (LCRA TSC) convened in a regular meeting at 2:58 p.m. on Wednesday, Feb. 18, 2015, in the Board Room of the Hancock Building, at the principal office of the Lower Colorado River Authority (LCRA), 3700 Lake Austin Blvd., Austin, Travis County, Texas. The meeting was open to the public, and the following directors were present, constituting a quorum: Timothy Timmerman, Chair John C. Dickerson III, Vice Chair J. Scott Arbuckle Steve K. Balas Lori A. Berger Pamela Jo Ellison John M. Franklin Raymond A. Gill, Jr. Jett J. Johnson Sandra Wright Kibby Robert D. Lewis, D.V.M Thomas Michael Martine Vernon E. Schrader Franklin Scott Spears, Jr. Absent: Michael G. McHenry Chair Timmerman convened the meeting at 2:58 p.m. During his update to the Board, Stuart Nelson, senior vice president of Project Services, reported there have been no major weather-related outages on the LCRA TSC transmission system. Nelson gave an update on the recent failure of an autotransformer at the Lytton Springs Substation and damage to equipment adjacent to the autotransformer. He said staff is working with the Electric Reliability Council of Texas to maintain system reliability. He also outlined plans for repair of the damaged equipment and a possible replacement autotransformer. Next, Nelson gave an update on LCRA TSC s Fiscal Year 2015 capital project spending forecast. He explained that staff projects the spending limit to be below the current fiscal year cap primarily due to projects that have been cancelled, put on hold or delayed. He also noted LCRA TSC is saving money by renegotiating line construction contracts. LCRA Transmission Services Corporation Board Agenda - May 2015 7
The Board took action on the Consent Agenda next. 15-01 Upon motion by Vice Chair Dickerson, seconded by Director Gill, the Board, by a vote of 14 to 0, unanimously approved the minutes of the Dec. 16, 2014, meeting [Consent Item 2]. 15-02 Stuart Nelson, senior vice president of Project Services, presented for consideration a staff recommendation, described in Agenda Item 3 [attached hereto as Exhibit A], that the Board approve the Capital Improvement Project Authorization Request for the Blewett Substation Addition Project. Upon motion by Director Gill, seconded by Director Balas, the recommendation was unanimously approved by a vote of 14 to 0. 15-03 Stuart Nelson, senior vice president of Project Services, presented for consideration a staff recommendation, described in Agenda Item 4 [attached hereto as Exhibit B], that the Board approve the Capital Improvement Project Authorization Request for the Transmission Line T485 Modification Project. Upon motion by Director Berger, seconded by Director Ellison, the recommendation was unanimously approved by a vote of 14 to 0. 15-04 Stuart Nelson, senior vice president of Project Services, presented for consideration a staff recommendation, described in Agenda Item 5 [attached hereto as Exhibit C], that the Board approve the Capital Improvement Project Authorization Request for the Lytton Springs Autotransformer Failure Remediation Project. Upon motion by Director Berger, duly seconded, the recommendation was unanimously approved by a vote of 14 to 0. There being no further business to come before the Board, the meeting was adjourned at approximately 3:19 p.m. Thomas E. Oney Secretary LCRA Transmission Services Corporation 8 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B Minutes Digest March 11, 2015 15-05 Request and approval of the adoption by LCRA of the Twenty-Second Supplemental Resolution to the Controlling Resolution establishing the LCRA Transmission Contract Revenue Financing Program to authorize the renewal of the $200 million Transmission Services Tax-Exempt Commercial Paper Program credit facility, and authorizing the chief executive officer or his designee to negotiate and execute certain related agreements, including the First (Second) Amendment to the Amended and Restated Letter of Credit Reimbursement Agreement among LCRA; LCRA Transmission Services Corporation (LCRA TSC); JPMorgan Chase Bank, National Association; and State Street Bank and Trust Company, setting forth the terms and conditions governing the issuance of the direct-pay letter of credit securing the tax-exempt commercial paper program for LCRA TSC in the amount of $200 million. 15-06 Approval of the adoption of the Twenty-First Supplemental Resolution to the Controlling Resolution establishing the LCRA Transmission Contract Revenue Financing Program authorizing the issuance of Transmission Contract Refunding Revenue Bonds, Series 2015A and 2015B (collectively, the Bonds), in an amount not to exceed $550 million for the following purposes: (i) current refunding of the LCRA Transmission Contract Revenue Commercial Paper Notes, Tax-Exempt Series; (ii) current refunding of the LCRA Transmission Contract Revenue Revolving Notes, Tax-Exempt Series C; (iii) advance refunding of certain outstanding long-term Transmission Contract Debt; (iv) funding debt service reserve funds for the Bonds; and (v) paying for issuance costs. 15-07 Approval of the Capital Improvement Project Authorization Request for the Telecommunication Assets Purchase and authorization for the chief executive officer or his designee to negotiate and execute an agreement with LCRA to purchase certain telecommunication assets owned by LCRA, including related ongoing projects, and to do all things reasonably necessary to accomplish the acquisition of such assets. LCRA Transmission Services Corporation Board Agenda - May 2015 9
MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE LCRA TRANSMISSION SERVICES CORPORATION Austin, Texas March 11, 2015 Pursuant to notice posted in accordance with the Texas Open Meetings Act, the Board of Directors (Board) of the LCRA Transmission Services Corporation (LCRA TSC) convened in a regular meeting at 11:49 a.m. on Wednesday, March 11, 2015, in the Board Room of the Hancock Building, at the principal office of the Lower Colorado River Authority (LCRA), 3700 Lake Austin Blvd., Austin, Travis County, Texas. The meeting was open to the public, and the following directors were present, constituting a quorum: Timothy Timmerman, Chair John C. Dickerson III, Vice Chair J. Scott Arbuckle Lori A. Berger Pamela Jo Ellison John M. Franklin Raymond A. Gill, Jr. Jett J. Johnson Robert D. Lewis, D.V.M Thomas Michael Martine Vernon E. Schrader Franklin Scott Spears, Jr. Absent: Steve K. Balas Sandra Wright Kibby Michael G. McHenry Chair Timmerman convened the meeting at 11:49 a.m., and the Board next took up Agenda Item 1. 15-05 Treasurer and Chief Financial Officer Richard Williams presented for consideration a staff recommendation, described in Agenda Item 1 [attached hereto as Exhibit A], that the Board request and approve the adoption by LCRA of the Twenty-Second Supplemental Resolution to the Controlling Resolution establishing the LCRA Transmission Contract Revenue Financing Program to authorize the renewal of the $200 million Transmission Services Tax-Exempt Commercial Paper Program credit facility, and authorizing the chief executive officer or his designee to negotiate and execute certain related agreements, including the First (Second) Amendment to the Amended and Restated Letter of Credit Reimbursement Agreement among LCRA; LCRA Transmission Services Corporation (LCRA TSC); JPMorgan Chase Bank, National Association; and State Street Bank and Trust Company, setting forth the terms and conditions governing the issuance of the direct-pay letter of credit securing the taxexempt commercial paper program for LCRA TSC in the amount of $200 million. Upon motion 10 LCRA Transmission Services Corporation Board Agenda - May 2015
by Director Spears, seconded by Director Gill, the recommendation was unanimously approved by a vote of 12 to 0. 15-06 Treasurer and Chief Financial Officer Richard Williams presented for consideration a staff recommendation, described in Agenda Item 2 [attached hereto as Exhibit B], that the Board approve the adoption of the Twenty-First Supplemental Resolution to the Controlling Resolution establishing the LCRA Transmission Contract Revenue Financing Program authorizing the issuance of Transmission Contract Refunding Revenue Bonds, Series 2015A and 2015B (collectively, the Bonds), in an amount not to exceed $550 million for the following purposes: (i) current refunding of the LCRA Transmission Contract Revenue Commercial Paper Notes, Tax-Exempt Series; (ii) current refunding of the LCRA Transmission Contract Revenue Revolving Notes, Tax-Exempt Series C; (iii) advance refunding of certain outstanding long-term Transmission Contract Debt; (iv) funding debt service reserve funds for the Bonds; and (v) paying for issuance costs. Upon motion by Director Lewis, seconded by Director Arbuckle, the recommendation was unanimously approved by a vote of 12 to 0. 15-07 Vice President and Chief Operating Officer Ross Phillips presented for consideration a staff recommendation, described in Agenda Item 3 [attached hereto as Exhibit C], that the Board approve the Capital Improvement Project Authorization Request for the Telecommunication Assets Purchase and authorize the chief executive officer or his designee to negotiate and execute an agreement with LCRA to purchase certain telecommunication assets owned by LCRA, including related ongoing projects, and to do all things reasonably necessary to accomplish the acquisition of such assets. Upon motion by Director Spears, seconded by Director Ellison, the recommendation was unanimously approved by a vote of 12 to 0. There being no further business to come before the Board, the meeting was adjourned at approximately 11:52 a.m. Thomas E. Oney Secretary LCRA Transmission Services Corporation LCRA Transmission Services Corporation Board Agenda - May 2015 11
EXHIBIT C MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE LCRA TRANSMISSION SERVICES CORPORATION Bastrop, Texas April 14, 2015 Pursuant to notice posted in accordance with the Texas Open Meetings Act, the Board of Directors (Board) of the LCRA Transmission Services Corporation (LCRA TSC) convened in a special meeting at 12:06 p.m. on Tuesday, April 14, 2015, in the Texas Building at LCRA s Riverside Conference Center, 1405 Willow Street, Bastrop, Bastrop County, Texas. The meeting was open to the public, and the following directors were present, constituting a quorum: Timothy Timmerman, Chair John C. Dickerson III, Vice Chair J. Scott Arbuckle Steve K. Balas John M. Franklin Raymond A. Gill, Jr. Jett J. Johnson Sandra Wright Kibby Thomas Michael Martine Michael G. McHenry Vernon E. Schrader Franklin Scott Spears, Jr. Absent: Lori A. Berger Pamela Jo Ellison Robert D. Lewis, D.V.M Chair Timmerman convened the meeting at 12:06 p.m., and the Board took up the agenda item for consideration at this special meeting. 15-08 Treasurer and Chief Financial Officer Richard Williams presented for consideration a staff recommendation, described in Agenda Item 1 [attached hereto as Exhibit A], that the Board authorize the payment of an Extraordinary LCRA Optional Purchase Price Payment (ELOPPP) to the Lower Colorado River Authority (LCRA) of $7.1 million for fiscal year 2015, contingent on the determination by the LCRA Board of Directors of such payment being due and payable pursuant to the Electric Transmission Facilities Contract (the Contractual Commitment) between LCRA and LCRA TSC dated as of Oct. 1, 2001. Upon motion by Director McHenry, seconded by Director Franklin, the recommendation was unanimously approved by a vote of 12 to 0. There being no further business to come before the Board, the meeting was adjourned at approximately 12:07 p.m. Thomas E. Oney, Secretary LCRA Transmission Services Corporation 12 LCRA Transmission Services Corporation Board Agenda - May 2015
This agenda item requires the approval of at least 12 members of the Board. FOR ACTION 3. Conveyance of a Distribution Line Easement in DeWitt County Proposed Motion Authorize the chief executive officer or his designee to convey an electric distribution line easement containing 0.05 acres to Guadalupe Valley Electric Cooperative (GVEC) for a power backup to the LCRA Transmission Services Corporation (LCRA TSC) Guadalupe Substation in DeWitt County. Board Consideration LCRA TSC Board Policy T401 - Land Resources requires the Board to approve the terms of all land sales and acquisitions and requires the affirmative vote of 12 members of the TSC Board for the disposition of property. Budget Status and Fiscal Impact The administrative costs associated with the conveyance of this easement are included in the budget of the Kenedy Switch-to-Guadalupe Transmission Line Upgrade Project. This project is included in the Board-approved Fiscal Year 2014-2018 Transmission System Improvements Plan. Summary As part of the Kenedy Switch-to-Guadalupe Transmission Line Upgrade Project, LCRA TSC is constructing the new Guadalupe Substation in DeWitt County. LCRA TSC has requested electric service for the substation from GVEC. However, GVEC requires an easement across the substation property for the service line prior to its installation. There is no compensation from GVEC for the easement because LCRA TSC requested the service feed. LCRA TSC will perform environmental and cultural due diligence studies and address all identified concerns. Presenter(s) Kelly Wells Manager, Real Estate Services Exhibit(s) A - Vicinity Map B - Site Map LCRA Transmission Services Corporation Board Agenda - May 2015 13
EXHIBIT A 14 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B LCRA Transmission Services Corporation Board Agenda - May 2015 15
FOR ACTION 4. Acquisition of Interests in Real Property - Use of Eminent Domain in DeWitt County Proposed Motion I move that the Board of LCRA Transmission Services Corporation (LCRA TSC) adopt the attached resolution; that the Board authorize by record vote the use of the power of eminent domain to acquire rights in the property described in Exhibit 1 to the resolution for the Kenedy Switch-to-Guadalupe Transmission Line Upgrade and Cuero Hydro-to-Hochheim Transmission Line Overhaul Projects and that the first record vote applies to all units of property to be condemned. Board Consideration LCRA TSC Board Policy T401 - Land Resources and Section 2206.053 of the Texas Government Code requires Board authorization prior to the initiation of eminent domain proceedings. Section 2206.053 of the Texas Government Code provides that if two or more Board members object to adopting a single resolution for all units, a separate record vote must be taken for each unit of property. If two or more units of real property are owned by the same person, those units may be treated as one unit of property. Budget Status and Fiscal Impact The funding and administrative costs associated with the Kenedy Switch-to-Guadalupe Transmission Line Upgrade Project and the Cuero Hydro-to-Hochheim Transmission Line Overhaul Projects were included in the Fiscal Year 2014-2018 Transmission System Improvements Plan. Summary LCRA TSC proposes to relocate portions of four existing transmission lines to connect to the newly constructed Guadalupe Substation. This work requires new easements on one property. Kokel-Oberrender-Wood, Appraisal, LTD. performed an independent appraisal of the interests in real property to be acquired for use in determining just compensation to the landowner. Staff has made a bona fide offer to acquire the necessary interests in real property voluntarily from the landowners listed on Exhibit C, as required by Section 21.0113 of the Texas Property Code. Staff will continue to negotiate for the purchase of the interests in real property. However, in those instances where agreement cannot be reached with the landowners, staff seeks Board authorization to proceed with condemnation. Staff has provided to the Board,under separate cover, description of the specific easements to be acquired and will attach them to the resolution. LCRA TSC will perform environmental and cultural due diligence studies and address all identified concerns. Staff requests the Board adopt the resolution in Exhibit D authorizing the initiation of condemnation proceedings on the first record vote for all units of property. 16 LCRA Transmission Services Corporation Board Agenda - May 2015
Presenter(s) Kelly Wells Manager, Real Estate Services Exhibit(s) A - Vicinity map B - Site map C - Landowner list D - Resolution LCRA Transmission Services Corporation Board Agenda - May 2015 17
EXHIBIT A 18 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B LCRA Transmission Services Corporation Board Agenda - May 2015 19
EXHIBIT C Parcel Number Landowner Name 1 AEP Texas Central Company Approx. Parent Tract Acreage Land Rights Approx. Easement Acreage County Appraised Value 10.85 TL 2.10 DeWitt $28,000 Land Rights Legend TL = Transmission Line Easement Total: $28,000 20 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT D Page 1 of 2 PROPOSED MOTION I MOVE THAT THE BOARD OF LCRA TRANSMISSION SERVICES CORPORATION ADOPT THE ATTACHED RESOLUTION; THAT THE BOARD AUTHORIZE BY RECORD VOTE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE RIGHTS IN THE PROPERTY DESCRIBED IN EXHIBIT 1 TO THE RESOLUTION FOR THE KENEDY SWITCH-TO-GUADALUPE TRANSMISSION LINE UPGRADE AND CUERO HYDRO-TO-HOCHHEIM OVERHAUL PROJECTS AND THAT THE FIRST RECORD VOTE APPLIES TO ALL UNITS OF PROPERTY TO BE CONDEMNED. RESOLUTION AUTHORIZING ACQUISITION OF INTERESTS IN REAL PROPERTY BY CONDEMNATION IN DEWITT COUNTY INCLUDING ELECTRIC TRANSMISSION LINE EASEMENTS WHEREAS, the LCRA Transmission Services Corporation has determined the need to acquire the interests in real property necessary for the public purposes of construction, operation, and maintenance of an electric transmission line in DeWitt County; and WHEREAS, an independent, professional appraisal of the subject property has been submitted to the LCRA Transmission Services Corporation, and an amount has been established to be just compensation for the interests in real property to be acquired; NOW, THEREFORE, BE IT RESOLVED that the chief executive officer or his designee is authorized to purchase the interests in real property from the landowner listed in the attached Exhibits B and C for the construction of the Kenedy Switch-to-Guadalupe Transmission Line Upgrade and the Cuero Hydro-to-Hochheim Transmission Line Overhaul Projects, with the description of the location of and interest in the property that LCRA Transmission Services Corporation seeks to acquire being more particularly described in maps provided to the Board and attached to this Resolution as Exhibit 1 ; that the public convenience and necessity requires the acquisition of said interests in real property; that the public necessity requires the condemnation of the interests in real property in order to acquire them for such purposes; that LCRA Transmission Services Corporation does not intend to acquire rights to groundwater or surface water in the land; that LCRA Transmission Services Corporation has made a bona fide offer to acquire the interests in real property from the landowner(s) voluntarily as required by Sec. 21.0113 of the Texas Property Code; and that at such time as LCRA Transmission Services Corporation has determined that the landowner(s) and LCRA Transmission Services Corporation will be unable to reach an agreement on the fair market value of the subject interests in real property and that it should appear that further negotiations for settlement with the landowner(s) would be futile, then the chief executive officer or his designee is authorized and directed to initiate condemnation proceedings against the owner of the property, and against all other LCRA Transmission Services Corporation Board Agenda - May 2015 21
EXHIBIT D Page 2 of 2 owners, lien holders, and other holders of an interest in the property, in order to acquire the necessary interests in real property, and that this resolution take effect immediately from and after its passage; BE IT FURTHER RESOLVED that the chief executive officer or his designee is hereby authorized to do all things necessary and proper to carry out the intent and purpose of this resolution, including determination and negotiation of the interest in real property that are proper and convenient for the operation of the electric transmission lines. 22 LCRA Transmission Services Corporation Board Agenda - May 2015
FOR ACTION 5. Acquisition of Interests in Real Property - Use of Eminent Domain in Pecos County Proposed Motion I move that the Board of LCRA Transmission Services Corporation (LCRA TSC) adopt the attached resolution; that the Board authorize by record vote the use of the power of eminent domain to acquire rights in the property described in Exhibit 1 to the resolution for the Long Loop Circuit Breaker Addition Project previously called the Mesa View Circuit Breaker Addition Project and that the first record vote applies to all units of property to be condemned. Board Consideration LCRA TSC Board Policy T401 - Land Resources and Section 2206.053 of the Texas Government Code require Board authorization prior to the initiation of eminent domain proceedings. Section 2206.053 of the Texas Government Code provide that if two or more Board members object to adopting a single resolution for all units, a separate record vote must be taken for each unit of property. If two or more units of real property are owned by the same person, those units may be treated as one unit of property. Budget Status and Fiscal Impact The funding and administrative costs associated with the Long Loop Circuit Breaker Addition Project were originally approved by the LCRA TSC Board in the Fiscal Year 2015-2019 Transmission System Improvements Plan. Summary LCRA TSC proposes to construct the Long Loop Circuit Breaker Addition Project. The project will purchase approximately 5 acres near the existing Mesa View Substation in Pecos County. The project will increase the reliability of transmission facilities on the T446 West Yates Switch-to-Mesa View Switch transmission line. Clint W. Bumguardner MAI, ASA of WT Appraisal Inc. will perform an independent appraisal of the interests in real property to be acquired for use in determining just compensation to the landowner prior to making a final offer or initiating condemnation. Staff will make a bona fide offer to acquire the necessary interests in real property voluntarily from the landowners listed on Exhibit C, as required by Section 21.0113 of the Texas Property Code. Staff will continue to negotiate for the purchase of the interests in real property. However, in those instances where agreement cannot be reached with the landowners, staff seeks Board authorization to proceed with condemnation. Staff has provided to the Board, under separate cover, a description of the substation property to be acquired and will attach it to the resolution. LCRA TSC will perform environmental and cultural due diligence studies and address all identified concerns. Staff requests the Board adopt the resolution in Exhibit D authorizing the initiation of condemnation proceedings on the first record vote for all units of property. LCRA Transmission Services Corporation Board Agenda - May 2015 23
Presenter(s) Kelly Wells Manager, Real Estate Services Exhibit(s) A - Vicinity map B - Site map C - Landowner list D - Resolution 24 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT A LCRA Transmission Services Corporation Board Agenda - May 2015 25
EXHIBIT B 26 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT C Parcel Number Long Loop Circuit Breaker Addition Landowner Name Approx. Parent Tract Acreage Murray Pecos Ranch, Ltd. et. al. 600.12 Land Rights Approx. Acquisition Acreage County Approx. Value F AE 7.36 Pecos $6,075 Land Rights Legend F = Fee Simple AE = Access/Utility Easement LCRA Transmission Services Corporation Board Agenda - May 2015 27
EXHIBIT D Page 1 of 2 PROPOSED MOTION I MOVE THAT THE BOARD OF LCRA TRANSMISSION SERVICES CORPORATION ADOPT THE ATTACHED RESOLUTION; THAT THE BOARD AUTHORIZE BY RECORD VOTE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE RIGHTS IN THE PROPERTY DESCRIBED IN EXHIBIT 1 TO THE RESOLUTION FOR THE LONG LOOP CIRCUIT BREAKER ADDITION PROJECT AND THAT THE FIRST RECORD VOTE APPLIES TO ALL UNITS OF PROPERTY TO BE CONDEMNED. RESOLUTION AUTHORIZING ACQUISITION OF INTERESTS IN REAL PROPERTY BY CONDEMNATION IN PECOS COUNTY INCLUDING A SUBSTATION SITE IN FEE SIMPLE AND AN ACCESS AND UTLIITY EASEMENT WHEREAS, the LCRA Transmission Services Corporation has determined the need to acquire the interests in real property necessary for the public purposes of construction, operation, and maintenance of an electric substation in Pecos County; and WHEREAS, an independent, professional appraisal of the subject property will be submitted to the LCRA Transmission Services Corporation, and an amount will be established to be just compensation for the interests in real property to be acquired; NOW, THEREFORE, BE IT RESOLVED that the chief executive officer or his designee is authorized to purchase the interests in real property from the landowners listed in the attached Exhibits B and C for the construction of the Long Loop Circuit Breaker Addition Project, with the description of the location of and interest in the property that LCRA Transmission Services Corporation seeks to acquire being more particularly described in maps provided to the Board and attached to this Resolution as Exhibit 1 ; that the public convenience and necessity requires the acquisition of said interests in real property; that the public necessity requires the condemnation of the interests in real property in order to acquire them for such purposes; that LCRA Transmission Services Corporation does not intend to acquire rights to groundwater or surface water in the land; that LCRA Transmission Services Corporation will make a bona fide offer to acquire the interests in real property from the landowner(s) voluntarily as required by Sec. 21.0113 of the Texas Property Code; and that at such time as LCRA Transmission Services Corporation has determined that the landowner(s) and LCRA Transmission Services Corporation will be unable to reach an agreement on the fair market value of the subject interests in real property and that it should appear that further negotiations for settlement with the landowner(s) would be futile, then the chief executive officer or his designee is authorized and directed to initiate condemnation proceedings against the owner of the property, and against all other owners, lien holders, and other holders of an interest in the property, in order to acquire the necessary interests in real property, and that this resolution take effect immediately from and after its passage; 28 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT D Page 2 of 2 BE IT FURTHER RESOLVED that the chief executive officer or his designee is hereby authorized to do all things necessary and proper to carry out the intent and purpose of this resolution, including determination and negotiation of the interest in real property that are proper and convenient for the operation of the electric substation. LCRA Transmission Services Corporation Board Agenda - May 2015 29
FOR ACTION 6. Acquisition of Interests in Real Property - Use of Eminent Domain in Gonzales County Proposed Motion I move that the Board of LCRA Transmission Services Corporation (LCRA TSC) adopt the attached resolution; that the Board authorize by record vote the use of the power of eminent domain to acquire rights in the property described in Exhibit 1 to the resolution for the Nopal Substation Addition Project and that the first record vote applies to all units of property to be condemned. Board Consideration LCRA TSC Board Policy T401 - Land Resources and Section 2206.053 of the Texas Government Code requires Board authorization prior to the initiation of eminent domain proceedings. Section 2206.053 of the Texas Government Code provides that if two or more Board members object to adopting a single resolution for all units, a separate record vote must be taken for each unit of property. If two or more units of real property are owned by the same person, those units may be treated as one unit of property. Budget Status and Fiscal Impact The funding and administrative costs associated with the Nopal Substation Addition were included in the Fiscal Year 2014-2018 Transmission System Improvements Plan. Summary LCRA TSC proposes to provide the transmission point of interconnection, Gillett Substation, for the soon-to-be constructed 8.6-mile 138-kV transmission line from the Guadalupe Valley Electric Cooperative (GVEC) Nopal Substation. Kokel-Oberrender-Wood, Appraisal, LTD. will perform an independent appraisal of the interests in real property to be acquired for use in determining just compensation to the landowner. Staff will make a bona fide offer to acquire the necessary interests in real property voluntarily from the landowners listed on Exhibit C, as required by Section 21.0113 of the Texas Property Code. Staff will continue to negotiate for the purchase of the interests in real property. However, in those instances where agreement cannot be reached with the landowners, staff seeks Board authorization to proceed with condemnation. Staff has provided to the Board, under separate cover, a description of the specific property to be acquired and will attach it to the resolution. LCRA TSC will perform environmental and cultural due diligence studies and address all identified concerns. Staff requests the Board adopt the resolution in Exhibit D authorizing the initiation of condemnation proceedings on the first record vote for all units of property. Presenter(s) Kelly Wells Manager, Real Estate Services 30 LCRA Transmission Services Corporation Board Agenda - May 2015
Exhibit(s) A - Vicinity map B - Site map C - Landowner list D - Resolution LCRA Transmission Services Corporation Board Agenda - May 2015 31
EXHIBIT A 32 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B LCRA Transmission Services Corporation Board Agenda - May 2015 33
EXHIBIT C Parcel Number Landowner Name Approx. Parent Tract Acreage Land Rights 1 Mark & Beverly Carter 87.3 F AE Approx. Easement Acreage County Approx. Value 4.52 Gonzales $16,950 Land Rights Legend F = Fee Simple AE = Access/Utility Easement Total: $16,950 34 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT D Page 1 of 2 PROPOSED MOTION I MOVE THAT THE BOARD OF LCRA TRANSMISSION SERVICES CORPORATION ADOPT THE ATTACHED RESOLUTION; THAT THE BOARD AUTHORIZE BY RECORD VOTE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE RIGHTS IN THE PROPERTY DESCRIBED IN EXHIBIT 1 TO THE RESOLUTION FOR THE NOPAL SUBSTATION ADDITION PROJECT AND THAT THE FIRST RECORD VOTE APPLIES TO ALL UNITS OF PROPERTY TO BE CONDEMNED. RESOLUTION AUTHORIZING ACQUISITION OF INTERESTS IN REAL PROPERTY BY CONDEMNATION IN GONZALES COUNTY INCLUDING ELECTRIC SUBSTATION SITE IN FEE SIMPLE AND AN ACCESS AND UTILITY EASEMENT WHEREAS, the LCRA Transmission Services Corporation has determined the need to acquire the interests in real property necessary for the public purposes of construction, operation, and maintenance of an electric substation in Gonzales County; and WHEREAS, an independent, professional appraisal of the subject property will be submitted to the LCRA Transmission Services Corporation, and an amount will be established to be just compensation for the interests in real property to be acquired; NOW, THEREFORE, BE IT RESOLVED that the chief executive officer or his designee is authorized to purchase the interests in real property from the landowner listed in the attached Exhibits B and C for the construction of the Nopal Substation Addition Project, with the description of the location of and interest in the property that LCRA Transmission Services Corporation seeks to acquire being more particularly described in maps provided to the Board and attached to this Resolution as Exhibit 1 ; that the public convenience and necessity requires the acquisition of said interests in real property; that the public necessity requires the condemnation of the interests in real property in order to acquire them for such purposes; that LCRA Transmission Services Corporation does not intend to acquire rights to groundwater or surface water in the land; that LCRA Transmission Services Corporation will make a bona fide offer to acquire the interests in real property from the landowner(s) voluntarily as required by Sec. 21.0113 of the Texas Property Code; and that at such time as LCRA Transmission Services Corporation has determined that the landowner(s) and LCRA Transmission Services Corporation will be unable to reach an agreement on the fair market value of the subject interests in real property and that it should appear that further negotiations for settlement with the landowner(s) would be futile, then the chief executive officer or his designee is authorized and directed to initiate condemnation proceedings against the owner of the property, and against all other owners, lien holders, and other holders of an interest in the property, in order to acquire the necessary interests in real property, and that this resolution take effect immediately from and after its passage; LCRA Transmission Services Corporation Board Agenda - May 2015 35
EXHIBIT D Page 2 of 2 BE IT FURTHER RESOLVED that the chief executive officer or his designee is hereby authorized to do all things necessary and proper to carry out the intent and purpose of this resolution, including determination and negotiation of the interest in real property that are proper and convenient for the operation of the electric substation. 36 LCRA Transmission Services Corporation Board Agenda - May 2015
FOR ACTION 7. Acquisition of Interests in Real Property - Use of Eminent Domain in Guadalupe County Proposed Motion I move that the Board of LCRA Transmission Services Corporation (LCRA TSC) adopt the attached resolution; that the Board authorize by record vote the use of the power of eminent domain to acquire rights in the property described in Exhibit 1 to the resolution for the Zornto-Seguin Transmission Line Upgrade Project and that the first record vote applies to all units of property to be condemned. Board Consideration LCRA TSC Board Policy T401 - Land Resources and Section 2206.053 of the Texas Government Code require Board authorization prior to the initiation of eminent domain proceedings. Section 2206.053 of the Texas Government Code provides that if two or more Board members object to adopting a single resolution for all units, a separate record vote must be taken for each unit of property. If two or more units of real property are owned by the same person, those units may be treated as one unit of property. Budget Status and Fiscal Impact The funding and administrative costs associated with the Zorn-to-Seguin Transmission Line Upgrade Project originally were approved by the LCRA TSC Board in the Fiscal Year 2015-2019 Transmission System Improvements Plan. Summary LCRA TSC proposes to construct the Zorn-to-Seguin Transmission Line Upgrade Project. This line is approximately 13.2 miles long and connects the Zorn Substation located southeast of San Marcos to the Seguin Substation in the north part of Seguin. To construct the Zorn-to- Seguin Transmission Line Upgrade Project, seven existing easements require additional rights for reconstruction, structural changes and communications. Staff prepared compensation summaries based on the appraisal records of the Guadalupe Central Appraisal District of the interests in real property to be acquired. Staff will obtain independent appraisals before making final offers and initiating condemnation. Staff will make an initial offer based on the compensation summaries and will complete bona fide offers to acquire the necessary interests in real property voluntarily from the landowners listed on Exhibit C, as required by Section 21.0113 of the Texas Property Code. Staff will continue to negotiate for the purchase of the interests in real property. However, in those instances where agreement cannot be reached with the landowners, staff seeks Board authorization to proceed with condemnation. Staff have provided to the Board under separate cover descriptions of the specific easements to be acquired and will attach them to the resolution. LCRA TSC will perform environmental and cultural due diligence studies and address all identified concerns. Staff requests the Board adopt the resolution in Exhibit D authorizing the initiation of condemnation proceedings on the first record vote for all units of property. LCRA Transmission Services Corporation Board Agenda - May 2015 37
Presenter(s) Kelly Wells Manager, Real Estate Services Exhibit(s) A - Vicinity map B - Site maps C - Landowner list D - Resolution 38 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT A LCRA Transmission Services Corporation Board Agenda - May 2015 39
EXHIBIT B Page 1 of 6 40 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B Page 2 of 6 LCRA Transmission Services Corporation Board Agenda - May 2015 41
EXHIBIT B Page 3 of 6 42 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B Page 4 of 6 LCRA Transmission Services Corporation Board Agenda - May 2015 43
EXHIBIT B Page 5 of 6 44 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT B Page 6 of 6 LCRA Transmission Services Corporation Board Agenda - May 2015 45
EXHIBIT C Parcel Number Landowner Name Approx. Parent Tract Acreage Land Rights Approx. Easement Acreage County Approx. Value A002 Warren Marvin Kutscher 77.612 TL 4.95 Guadalupe $14,179 A003 Jenny Cox III, LP 8.68 TL 0.54 Guadalupe $3,117 A008 Nancy Lee Elbel 74.24 TL 4.05 Guadalupe $10,763 A026 Gregory W. Kraft and Pamela S. Kraft 155.0017 TL 6.33 Guadalupe $10,657 A031 Marlene Boenig Bierstedt 67.73 TL 2.56 Guadalupe $4,475 A035 Bartoskewitz Farm Foundation 67.73 TL 2.60 Guadalupe $5,414 A038 Independence T.C., LLC 399.96 TL 5.14 Guadalupe $10,528 Land Rights Legend TL = Transmission Line Easement Total: $59,133 46 LCRA Transmission Services Corporation Board Agenda - May 2015
EXHIBIT D Page 1 of 2 PROPOSED MOTION I MOVE THAT THE BOARD OF LCRA TRANSMISSION SERVICES CORPORATION ADOPT THE ATTACHED RESOLUTION; THAT THE BOARD AUTHORIZE BY RECORD VOTE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE RIGHTS IN THE PROPERTY DESCRIBED IN EXHIBIT 1 TO THE RESOLUTION FOR THE ZORN-TO-SEGUIN TRANSMISSION LINE UPGRADE PROJECT AND THAT THE FIRST RECORD VOTE APPLIES TO ALL UNITS OF PROPERTY TO BE CONDEMNED. RESOLUTION AUTHORIZING ACQUISITION OF INTERESTS IN REAL PROPERTY BY CONDEMNATION IN GUADALUPE COUNTY INCLUDING ELECTRIC TRANSMISSION LINE EASEMENT AMENDMENTS. WHEREAS, the LCRA Transmission Services Corporation has determined the need to acquire the interests in real property necessary for the public purposes of construction, operation, and maintenance of an electric transmission line in Guadalupe County; and WHEREAS, an independent, professional appraisal of the subject property will be submitted to the LCRA Transmission Services Corporation, and an amount will be established to be just compensation for the interests in real property to be acquired; NOW, THEREFORE, BE IT RESOLVED that the chief executive officer or his designee is authorized to purchase the interests in real property from the landowners listed in the attached Exhibits B and C for the construction of the Zorn-to-Seguin Transmission Line Upgrade Project, with the description of the location of and interest in the property that LCRA Transmission Services Corporation seeks to acquire being more particularly described in maps provided to the Board and attached to this Resolution as Exhibit 1 ; that the public convenience and necessity requires the acquisition of said interests in real property; that the public necessity requires the condemnation of the interests in real property in order to acquire them for such purposes; that LCRA Transmission Services Corporation does not intend to acquire rights to groundwater or surface water in the land; that LCRA Transmission Services Corporation will make a bona fide offer to acquire the interests in real property from the landowner(s) voluntarily as required by Sec. 21.0113 of the Texas Property Code; and that at such time as LCRA Transmission Services Corporation has determined that the landowner(s) and LCRA Transmission Services Corporation will be unable to reach an agreement on the fair market value of the subject interests in real property and that it should appear that further negotiations for settlement with the landowner(s) would be futile, then the chief executive officer or his designee is authorized and directed to initiate condemnation proceedings against the owner of the property, and against all other owners, lien holders, and other holders of an interest in the property, in order to acquire the necessary interests in real property, and that this resolution take effect immediately from and after its passage; LCRA Transmission Services Corporation Board Agenda - May 2015 47
EXHIBIT D Page 2 of 2 BE IT FURTHER RESOLVED that the chief executive officer or his designee is hereby authorized to do all things necessary and proper to carry out the intent and purpose of this resolution, including determination and negotiation of the interest in real property that are proper and convenient for the operation of the electric transmission line. 48 LCRA Transmission Services Corporation Board Agenda - May 2015
FOR ACTION 8. Fiscal Year 2016 LCRA Transmission Services Corporation Business and Capital Plans Proposed Motion Adopt a resolution (Exhibit A) approving the Fiscal Year 2016 Business and Capital Plans for LCRA Transmission Services Corporation (LCRA TSC). Board Consideration LCRA TSC Board Policy T304 - Financial Planning requires approval of a business plan by the LCRA TSC and LCRA boards prior to the start of each fiscal year. Budget Status and Fiscal Impact The proposed business plan and the budgets included therein provide targets for revenue, operating and maintenance expenses, and capital spending for FY 2016. Summary The Board received a draft of the LCRA TSC Fiscal Year 2016 Business and Capital Plans for a work session on April 14, 2015. The business and capital plans are the LCRA TSC comprehensive operations plans and budget. Approval of the LCRA TSC FY 2016 Business and Capital Plans provides authorization for all expenditures and plans of LCRA TSC. Staff provided to the Board under separate cover, the formal LCRA TSC Fiscal Year 2016 Business and Capital Plans document, incorporating key policy elements from the April work session. Presenter(s) Richard Williams Treasurer and Chief Financial Officer Exhibit(s) A - LCRA Transmission Services Corporation Board Resolution approving the Fiscal Year 2016 Business and Capital Plans for LCRA Transmission Services Corporation LCRA Transmission Services Corporation Board Agenda - May 2015 49