MEETING OF THE BOARD OF DIRECTORSPLUM CREEK CONSERVATION DISTRICT'oti:lfff',t:ffi78644
Notices of this regular meeting were posted in the Caldwell and Hays County
Courthouses at leaslT2 hours prior to the meeting. Receipts of the notices areon file in the office of Plum Creek Conservation District.
Checks were reviewed and signed just prior to the call to order byTreasurer/Secretary, Mrs. Lucy Knight.

l:00 PMThe meeting/hearing was called to order by President of the Board, JamesHolt. Stacy Britton of Montemayor, Britton, Bender, PC; Quantum Wei of Harmony Desalting; Eric Vaughn of Gardeners of Eden; Graham Moore of Alliance Regional Water Authority; Brian Rice of BGE Engineering; Trey Jonesand Brad Bechtol both of Montoya Anderson Construction were present. Thefollowing Board members were present: Peter Reinecke (Vice President), Lucy Knight (Secretary/Treasurer), Fred Rothert (Director) and Tom Owen(Director). PCCD Attorney Bob Wilson, PCCD Geologist FeathergailWilson(via ZOOM), and PCCD staff members Daniel Meyer, Nora Lopez-Castillo,
Alan Burklund, and Tyler Farco were present. Nora Lopez-Castillo transcribed
the minutes.

l:00 PMPresident Holt called the meeting to order

l:00 PM

President Holt requested public comments. There were no public comments.

1:00 PMl:00 PM

l:01PM

President Holt requested motions or comments regarding the minutes of theregularly scheduled meeting held on December 19th,2023. Mr. Reinecke
made a motion that the minutes of the regularly scheduled meeting held onDecember 19th,2023, be accepted as mailed out. Mrs. Knight provided thesecond and the motion was approved unanimously.
President Holt asked if there was any unfinished business that required theBoard of Directors' attention. Mr. Meyer stated that there was no unfinishedbusiness.
President Holt requested discussion of agenda item V regarding lhe 2022lo
2023 audit from Montemayor, Britton & Bender. Mr. Meyer introduced Stacy
Britton to the Board. Stacy Britton outlined the responsibilities of the management staff and the auditors during the audit process. Ms. Britton stated theaudit resulted in a "clean opinion," meaning that PCCD's financial statements
were fairly stated in all material respects in accordance with generally accepted accounting principles. Ms. Britton pointed out that PCCD has a strong picture of financial health and sufficient liquid resources on hand to meet shortterm operating liabilities. Ms. Britton reported there were no compliance issues
with federal or state funds. Mrs. Knight made a motion to accept the 20222023 audit. Mr. Reinecke provided the second and the motion was approved
unanimously.

President Holt requested discussion of agenda item Vl regarding a financial
request from Harmony Desalting for a desalination research project. Mr. Meyl:14 pM er stated that Harmony Desalting's research specialized in developing innovative technology, specifically batch reverse osmosis (RO). Mr. Meyer statedthat one of the requirements of PCCD's Management Plan was to look at thepotential benefits of desalination, alternative water sources, and the needs
and feasibility of developing a project to research different technologies. Mr.

2Meyer briefly summarized the events that had connected PCCD and Harmony Desalting. Mr. Meyer introduced Dr. Quantum Weito the Board. Dr. Wei
informed the Board that after submitting his desalination research project proposal to the Bureau of Reclamation, they had been awarded $300,000 in federalfunding contingent on contributing additional cost-share funding. Dr. Wei
explained the project would require digging a well into the Edwards Aquiferand desalinating the water, which would then be used for research purposes
and by the Gardeners of Eden for irrigation and livestock. Dr. Wei stated thatthe research project would be used for proof of concept to confirm that theirtechnology could efficiently desalinate water with high water recovery in anenergy efficient manner. FeathergailWilson presented slides to the Board
regarding the location of the well and discussed that the depth of the wellwould be 2100 feet. Feathergail Wilson discussed issues that could arise
from the leftover minerals/salts that could require remediation/cleanup or theuse of an approved injection well. Mr. Owen asked Dr. Wei what the goal
was after the two-year research project was completed. Dr. Wei stated if histechnology proved successful, the goalwould be to build small/modular, energy efficient desalination plants that would be located closer to where water
was needed. Dr. Wei stated he needed an additional $170,000 in financial
assistance before the Bureau of Reclamation would release the $300,000
grant. A lengthy discussion was held regarding topics including additionalcosts that could be incurred, jurisdiction, future access to landowner's property once project completed, need for easements, the amount of land thatwould be needed, and the use and costs associated with an evaporation
pond. Mr. Holt stated that if the Board decided to commit funding for this project, it would be an investment in research and education of the desalination
process, without any monetary return. Mr. Owen made a motion that Plum
Creek Conservation District fund a minimum of $170,000, up to a maximumof $300,000, toward drilling the well and for research and development contingent on all involved parties reaching an approved agreement on the issues
raised. Mrs. Knight provided the second and the motion was approved unanimously. Mr. Reinecke stated that as part of the agreement, he would like
PCCD to maintain rights and access to the well, should the project be abandoned, forfuture projects. Mr. Owen agreed to include this in his previous
motion and Mrs. Knight provided the second and the motion was approved
unanimously.

2:19 PMPresident Holt requested discussion of agenda item Vll regarding the PCCD
Quarterly lnvestment Report. Mrs. Knight stated that both the audit and thereport showed that PCCD was accumulating the money needed to perform
necessary work on the dams and assist with projects, such as the desalination project. Mrs. Knight stated that the report had been received, reviewed,and signed.

2:19 PM

President Holt requested discussion of agenda item Vlll regarding the Site 2
rehabilitation project. Mr. Meyer gave a quick summary of the events that occurred after the December 2023 Board Meeting. Mr. Meyer stated that PCCD
sent Montoya Anderson Construction (MAC) a letter that notified them of theBoard's decision to take no action on the two requests to have a sit-down todiscuss options for resolving respective claims and took no action on considering revisiting the seeding options. Mr. Meyer also stated that at the December meeting, Jean Ann Maynard, PCCD Contracting Consultant, outlined thegeneral procedures under the contract for the contractor to file a claim andthe responsibilities the Contracting Officer had for responding to a claim. Mr.
Meyer stated at that meeting the Board also decided not to send the retainage check to MAC. Mr. Meyer introduced Brad Bechtol to the Board. Mr.

JBechtol stated that there may have been confusion and that he understoodthat the previous agreement was that MAC complete the winter seeding andPCCD would release 50% of the retainage. Mr. Bechtol stated the seed had
been planted by December Sth, 2023. A discussion was held regarding thismatter. Mr. Owen made the motion to release the 50% retainage check. MrReinecke provided the second and the motion was approved unanimously.

2:39 PM

2:49PI$I

President Holt requested discussion of agenda item lX regarding the Site 28
rehabilitation project. Mr. Bob Wilson informed the Board that he, National
Resources Conservation Service (NRCS) representatives, Jean Ann
Maynard, and Mr. Meyer held a meeting to discuss the $250,000 the landowners were claiming for soil that would be used during the rehabilitation project. Mr. Bob Wilson stated he had recommended that PCCD not pay for thesoil, but if a contractor thought it was necessary under the contract, then thecontractor would be free to negotiate with the landowner for this. Mr. Bob
Wilson stated that a clause would be added to the lnvitation for Bid (lFB) regarding this. Both NRCS and Jean Ann Maynard stated that on-site materials
had always been used as part of the construction project. Mr. Bob Wilson
stated under Texas easement law, PCCD's easement stated a structure
could be built, but it did not explicitly state that dirt (on-site material) was included. During the meeting, Jean Ann Maynard asked whether the cost of
the soil could be paid for using construction funds. NRCS had calculated that
36,000 cubic yards of materialwould be needed. NRCS recommended that
PCCD negotiate with the landowner regarding the soil, not the contractor. Mr.
Bob Wilson informed all the parties that PCCD could not negotiate with thelandowner because he had previously informed the Board that under theeasement it was the contractor's obligation to negotiate. Mr. Bob Wilson also
stated he had informed all the parties that if litigation ensued regarding thismatter, it could take years, the federal funds could be withdrawn, and the project abandoned. Mrs. Knight made a motion that Mr. Bob Wilson and Mr.
Meyer offer the landowner a total of $109,323 ($3.00 a cubic yard times
36,441 cubic yards needed) for the on-site soil. Mr. Owen provided the second and the motion was approved unanimously. The Board agreed that if thenegotiated amount exceeded this total, it would need to be brought back tothe Board for consideration.
President Holt requested discussion of agenda item X regarding NRCS' review of Alliance Regional Water Authority's Water (ARWA) Phase 1B Segment C. Mr. Meyer reminded the Board that back in August of 2020, BGE
came in on behalf of ARWA to request that the designs for the northern routeof the water line be sent to NRCS for review; the Board agreed. Mr. Meyer
stated that changes were made to the water line route and, in 2023,hhelOOo/o designs were sent to NRCS. Mr. Meyer stated that in January, NRCS
sent PCCD a letter with their recommendations. One of NRCS' recommendations was that "the owner of the pipe should indemnify the District to be held
harmless for the operation of the dam and its impact on the pipe within theeasement." Mr. Graham Moore asked whether this recommendation would
need to be a separate agreement between PCCD and ARWA and, if so, what
language should be used by ARWA to provide this indemnification. Mr. Bob
Wilson stated that if the Board made a motion to approve NRCS' recommendations, PCCD's approval letter could include this language. Mrs. Lucy
Knight made the motion that PCCD follow the recommendations of the NRCS
regarding the Alliance route. Mr. Reinecke provided the second and the motion was approved unanimously.

4

3:00 PMPresident Holt requested discussion of agenda item Xl regarding GMA 10's
lnterlocal Agreement. Mr. Meyer stated that per the Board's request at theDecember 2023 Board meeting, the GMA-10 interlocal agreement (lLA) now
included a provision that would require the GMA 10 members to reimburse
PCCD for costs incurred as the contract administrator. Mr. Meyer stated thata provision had also been added indicating that if a GMA member did notsign the lLA, then no work would be done for that District under the consulting
agreement. Mr. Meyer stated that if the Board made a motion to approve therevised ILA version, he would take it to the next GMA 10 meeting for the other districts to review. Mrs. Knight made a motion to approve the latesU
revised version of the GMA 10 interlocal agreement. Mr. Rothert provided
the second and the motion was approved unanimously.

3:06 PM

President Holt requested discussion of agenda item Xll regarding a Contract
between PCCD & Collier Consulting to assist GMA 10 in developing DFCsand performing modeling. Mr. Meyer suggested holding off on this agenda
item until the GMA 10 ILA had been signed by all members. The Boardagreed.

3:06 PMPresident Holt requested discussion of agenda item Xlll regarding a Resolution to authorize PCCD's Executive Manager to amend the Contract with Collier Consulting. Mr. Meyer suggested holding off on this agenda item until theGMA 10 ILA had been signed by all members. The Board agreed.

3:07 PMPresident Holt requested discussion of agenda item XIV regarding a request
for Recordable Release & Termination of Site 10 Temporary Construction
Working Space and Access Easement. Mr. Bob Wilson stated that this document was not ready because he had asked Mr. Meyer to determine if the areas described in this easement were released, would PCCD still have sufficient area to perform operations and maintenance on the dam. The Board
tabled this agenda item until this information was determined.

3:08 PM

3:19 PM

3:28 PM

President Holt requested discussion of agenda item XV regarding quotes received to drill and install a Wilcox monitoring well. Mr. Meyer stated that themonitoring well would be located on Mr. Tom Owen's property and drilled to adepth of 600 feet. Mr. Meyer informed the Board that PCCD had received
one quote. Mr. Holt then announced that 2 bid amounts were received fromHydro Resources. Mr. Meyer stated that the driller submitted 2 bids, one using concrete and one using bentonite. President Holt stated that Exhibit A
was at two hundred twenty thousand dollars and zero cents ($220,000.00)
and Exhibit B was at one hundred sixty-five thousand dollars and zero cents($165,000.00). Mrs. Knight made a motion to accept the $165,000.00 bid
from Hydro Resources for the drilling of the Wilcox monitoring well. Mr. Rothert provided the second and the motion was approved unanimously.
President Holt requested a report from the PCCD Geologist, Mr. Feathergail
Wilson. Mr. FeathergailWilson presented a slideshow on the drawdown/wellpump test that had been performed on Mr. Reinecke's well. Mr. Feathergail
Wilson stated that the data collected from this well would be used as a pointof control; thus, a spreadsheet was created to collect future test data, which
would be used to create contour maps and could indicate where the best
wells were located. Mr. FeathergailWilson stated that CentralTexas remained in a severe drought.
President Holt requested a report from the NRCS' District Conservationist,
Mr. Jeremy Hasty. Mr. Hasty was not in attendance.

5

3:28 PM

3:34 PM

3:38

President Holt requested a report from the PCCD Executive Manager, Mr.
Daniel Meyer. Mr. Meyer stated that PCCD held an Emergency Action Plan(EAP) tabletop exercise with both Hays and Caldwell Emergency Management. Mr. Meyer reminded the Board that the Texas Commission on Environmental Quality (TCEO) required this to be done every five years. Mr. Meyer
presented a slide on Site 2 that showed some rye grass visible in the reseeded areas. Mr. Meyer gave an update on Site 21 and stated that the designs,
which extended the dam, had not anticipated the removal of portions of theaccess road. Mr. Meyer stated arrangements had been made with the contractor to install an access road around the eastern end of the dam. Mr. Meyer also stated the contractor continued to work on the roller-compacted concrete (RCC) repairs. Mr. Meyer informed the Board that he had received anemail from Kimley-Horn, engineers for Sunfield, regarding upcoming development near PCCD's Site 10 and easement encroachment. Mr. Meyer stated it
appeared there would be encroachment on PCCD's easement and accesseasement. Mr. Meyer indicated he informed the engineers that a PCCD
Easement Use Application would need to be submitted. Kimley-Horn statedthey would begin working on the required application.
President Holt requested a report from PCCD's Attorney, Bob Wilson. Mr.
Bob Wilson stated that S.B. No. 2440 legislation had passed and now required anyone who was attempting to file a subdivision plat, which would depend on groundwater as a source for water, would need to include a groundwater study that certified adequate water was available for the subdivision.
Mr. Bob Wilson recommended a letter be written to the County Commissioners as well as Planning and Zoning Departments informing them that PCCD
would be available to answer questions regarding water availability.

pM President Holt President Holt moved the meeting into Executive Session for
yearly employee reviews and subjects allowable.

3:48 PMPresident Holt called the meeting back into Regular Session. Mr. Reinecke
made a motion to increase the salary of each employee by Soh to account forthe cost of living. Mr. Reinecke proposed a separate motion to reclassify
Nora Lopez-Castillo's position from Office Secretary to Administrative Assistant with a base salary of $60,000 plus 5%. Mrs. Knight provided the second
All Board members voted aye, and the motion passed unanimously.

3:55

pM President Holt requested public comments. There were no public comments.

3:55

PM the motion to adjourn passed unanimously.

Mrs. Knight made a motion to adjourn. Mr. Rothert provided the second and-l(t,()l-'' <-*President

Vice-President