The Lavaca-Navidad River Authority is a conservation and reclamation district of the State of Texas, created in August, 1941, pursuant to Article 16, Section 59, of the Texas Constitution, codified in Vernon's Annotated Texas Civil Statutes as Article 8280-131. The boundaries of the Authority are coextensive with the boundaries of Jackson County, Texas. The Authority was created for the purpose of controlling, storing, preserving, and distributing the storm and flood waters, and the waters of the rivers and streams of Jackson County, and their tributaries, for all useful and beneficial purposes.

Administration of the Authority:

The Authority is governed by a nine member Board of Directors, who must reside within the Authority's boundaries. The Board members are appointed by the Governor of Texas and confirmed by the Senate. Board members serve six-year terms ending May 1st of each odd-numbered year. The terms are staggered so that three members are reappointed or replaced each odd-numbered year.

The present Board includes:

The current Management Staff are:

History of the Authority:

The Authority (called Jackson County Flood Control District until 1969) was created by the Act in 1941 for the general purposes described above, but more specifically, for the purpose of providing local sponsorship of the Palmetto Bend Dam and Reservoir Project (A Federal Bureau of Reclamation Project in Jackson County, Texas). The Congress of the United States authorized the Palmetto Bend Reclamation Project in October, 1968 (P.L. 90-562; 82 Stat. 999), and by a later action changed the name of the reservoir to Lake Texana.

In May, 1967, the Authority called an election in Jackson County provided for in the Act to utilize up to an authorized fifteen cent temporary ad valorem tax for maintenance, operation, and upkeep of the Authority and its facilities, and to authorize the tax bonds described later in the TWDB Contract discussion. Since approval, a tax has been used only to fund the Authority's O & M responsibilities of the Palmetto Bend Project.

The Authority contracted with the Texas Water Development Board to issue $3,770,000 Lavaca-Navidad River Authority Unlimited Tax Bonds, which were authorized by the election on May 11, 1967. If insufficient amounts of water had been sold by August 1, 1996 to meet repayment obligations of the Authority, the Bonds would have been issued, sold, and delivered to the Texas Water Development Board at the interest rate prescribed by law for such bonds under the financial assistance program of the Texas Water Development Board. (However, all water from Lake Texana allocated to LNRA was sold prior to August 1, 1996, so the authorized $3.77 million bond issue (tax bonds) will never be required.)

In 1972, a Texas water rights permit (permit number 2776) was obtained for the water stored in Lake Texana. The permit was issued jointly to the Authority and the Texas Water Development Board. The permit provided for the appropriative rights to 75,000 acre-feet of water per year. In 1993 the permit was amended by TNRCC, revising the project firm yield to 79,000 acre-feet per year, but reducing the amount allowed for diversion to 74,500 acre-feet per year. The remaining 4,500 acre-feet per year yield is reserved to cover the mandated releases for bay and estuarine needs. however, in "wet" years, an additional diversion up to 4,500 AF/YR may be available for sale.

In 1972, the Authority entered into a contract with the State (Texas Water Development Board) and Federal government guaranteeing repayment of the costs of constructing the Palmetto Bend Project. At the same time, a contract between the Authority and the State was executed detailing the financing arrangements of the Authority for the Project. The Authority is responsible for 42.67% and the TWDB for 57.33% of the amount to be repaid.

In 1976, both the three-party (State, Federal, and Authority) and the two-party (State and Authority) contracts were amended to accommodate Project cost increases experienced since 1972. Finally, the two-party contract was amended in 1979 to accommodate water sales by the Authority, of the Texas Water Development Board's share. All agreements, three-party, two-party, and respective amendments, provide for the transfer of the Texas Water Development Board's share of the water and financial obligations to the Authority, at such time sufficient water sales allow the Authority to assume such liability. The Authority is responsible for operating and maintaining the project as well as providing any delivery facilities such as pipelines and pumping plants.

In May, 1978, the Authority and Bureau of Reclamation executed a Lease Agreement which provided for the Authority to assume control of operation and maintenance of Project lands. In October, 1980, the Bureau relinquished control to the Authority of all Project lands and facilities except the spillway and river outlet works.

The Palmetto Bend Project was declared substantially complete by the Bureau of Reclamation in 1985. The Authority then assumed full operation and maintenance responsibility for the entire Project, including the spillway and river outlet works. This action triggered the first payment to the United States by the Texas Water Development Board on August 1, 1986, and set the time for the Authority's first payment on August 1, 1996.

Construction of the Palmetto Bend Dam, Lake Texana Water Delivery System:

Under the three-way contract, the U. S. Bureau of Reclamation designed the dam, purchased all the land required, relocated highways, railroads, and pipelines as necessary, and financed the Project. After a delay from 1973 to late 1975 caused by a lawsuit brought in Federal Court by the Sierra Club, the Bureau commenced construction of the dam in early 1976. After a lengthy trial, Federal Judge Owen D. Cox found in favor of the Bureau of Reclamation on all counts. It is estimated that construction costs escalated some $15 to $20 million during these two years of delay.

In May of 1980, Palmetto Bend Dam and Spillway were completed and heavy rains put flood waters through the spillway structure for the first time and in 1981 boat ramps and recreation areas were opened to the public. The reservoir was gradually filled, and reached elevation 44.0, top of conservation storage in May, 1982.

On May 1, 1980, the Authority signed a 50 year water supply contract with Formosa Plastics Corporation, Texas, under which a pumping plant and 15 mile, 36-inch pipeline would be built, owned, and operated by the Authority to deliver 5,000 acre-feet of water annually to their Point Comfort plant. This pipeline and pumping plant was designed by Bernard Johnson, Inc. and began delivery of water to Formosa in July, 1982.

On April 1, 1990, the Authority again contracted with Formosa Plastics, this time for the construction of a 54-inch water distribution pipeline which together with the existing 36-inch pipeline, deliver 32,000 acre-feet of water annually to Formosa's existing PVC plant and $1.5 billion plant expansion at Point Comfort. HDR Engineering, Incorporated of Austin designed the new system, and construction of the pipeline and associated pumping plant modification was declared substantially complete on May 24, 1991.

On October 21, 1992 the Authority contracted with Inteplast Corporation for the delivery of 2,000 acre-feet of raw water annually to their plastics plant near Lolita, Texas. Delivery of water began immediately. The 32,000 acre-feet per year sale to Formosa Plastics Corporation was reduced by 2,000 acre-feet per year and transferred to Inteplast. Inteplast's quantity of water was reduced by 168 acre-feet in November, 1995 and that same amount was contracted to the City of Point Comfort.

On December 14, 1993 the Authority contracted with the City of Corpus Christi for the sale of 31,440 acre-feet per year of raw water on a permanent basis and 10,400 acre-feet per year on a temporary basis until such water is needed to supply demand in Jackson County. The City began making debt service payment for the water in August, 1995. Operation & Maintenance payments by the City began in August, 1996 on a graduated scale until 100% of the costs are paid in the year 2000 (unless delivery of water begins sooner).

On December 21, 1994, the Authority contracted with the City of Point Comfort for 168 acre-feet of raw water per year, which was amended to 178 acre-feet per year in October, 1996. This agreement additionally provides that the Authority will operate the City's water treatment plant at the City's cost. Delivery of treated water to Point Comfort residences, businesses, and industry began in February, 1995.

On May 17, 1995 the Authority contracted with Calhoun County Navigation District for the purchase of 410 acre-feet of raw water per year and amended the agreement on August 1, 1996 to increase that amount to 594 acre-feet per year.

An agreement between the Authority and Central Power and Light Company for the purchase of 56 acre-feet of water per year was executed in September, 1996.

All the permitted water of Lake Texana is under contract.

The following table summarizes the Authority's water supply contracts:

By terms of these water supply contracts, the entities pay their proportionate percentage of the Authority's General O&M Budget, 100% of the Pipeline O&M Budget, and payments for project debt service in accordance with the repayment schedule to the United States. By letter dated March 11, 1991 to the Texas Water Development Board, the Authority invoked the terms of the two-party contract in transferring the Board's share of the water to the Authority for which payment is being received and deposited in escrow.

The Activities of the Authority:

The costs of the activities and facilities of the Authority are temporarily being supplemented by an ad valorem tax. For 1996, the Authority levied 2.1 cents of the authorized 15 cents per $100 valuation. This was down from 3.63 cents in 1995, and down from 15 cents, the greatest amount ever levied (1980). Revenues also come from water sales, interest, hay and grazing leases, and other sources. The amount collected from ad valorem taxes will decrease as water use revenues increase. As provided in the Authority's repayment contract, revenues from water sales are placed into an escrow account to be used for repayment of the Project. However, administrative fees along with operation/maintenance reimbursements are also collected from water customers and contribute to the Authority's present revenues. The Fiscal Year 1998 budget includes no ad valorem tax revenue.

The Authority presently operates and maintains only one reservoir and the surrounding land and recreation facilities. These facilities include two campgrounds (Brackenridge Plantation Park & Campground and Mustang Primitive Campground), eight public boat ramps, and three fishing areas. Brackenridge Plantation Park & Campground and Lake Texana Marina, owned by the Authority, were leased to Gulf Bend Mental Health/Mental Retardation Center in June, 1990. A third campground on the Lake is owned and operated by the Texas Parks and Wildlife Department. The boat ramps are open to the public without charge and provide launching and picnic facilities at strategic points around the Lake. In addition, the Authority promotes water safety by maintaining buoys and assisting the Texas Parks & Wildlife Department in enforcing regulations on the Lake for the safety of the boating public.

Since the passage of the Clean Rivers Program by the Legislature in 1991, LNRA has participated as a Clean Rivers Program contractor for the Texas Natural Resource Conservation Commission (TNRCC). This program affords the Authority the opportunity to play a major role assuring the quality of water in the Lavaca Basin.

The Authority also operates a 50,000 gallons per day wastewater treatment plant which services both Brackenridge Plantation Park & Campground and Lake Texana State Park.

The Authority cooperates with several State and Federal agencies by collecting water samples for water quality studies, providing weather and rainfall data, maintaining and monitoring rain and stream gages across the Navidad River Basin, monitoring and reporting water pollution, and providing man power, materials, and equipment to control and remove noxious aquatic vegetation from the Lake.

The Authority maintains and manages the 10,000 acre reservoir and over 7,000 acres of land around the Lake, of which approximately 2,400 acres are developed hay meadows, any of which may be leased through bids, to private individuals. Much of the perimeter land is subject to flooding. The hay meadow program allows local farmers to use the land for a very reasonable charge, but more importantly this activity saves the Authority the expense of maintaining these areas. There are also 340 acres which the Bureau of Reclamation leased for grazing to adjacent landowners and the Authority continues to maintain the agreements.

Both the 36-inch and 54-inch water supply pipelines and the pumping plant are owned, operated, and maintained by the Authority to supply raw water to the Point Comfort area and points along the way. This system is valued at approximately $23.9 million and was paid for with water customer guaranteed LNRA revenue bonds. These costs will be paid solely by the water customers on the system.

The Water Supply and Conveyance Contract with the City of Corpus Christi provides that the diversion facilities, pumping plant, and about 2,000 feet of pipeline, all on project lands, be constructed by LNRA. These facilities will also be owned and operated by LNRA.

Financial Highlights of the Authority:

The Authority, together with the Texas Water Development Board, has contracted with the United States Government to repay the water supply portion of the Lake Texana Project. The Board's share of the repayment obligation is presently set at $37,652,458, while the Authority's share is $28,024,252. The full cost of the Project is planned to be borne by water users. The United States holds title to the land, minerals, and all Project facilities.

The Authority also is responsible to repay the non-Federal share of the costs for recreation facilities which is now estimated at $ 1.4 million. The repayment contract provides that repayment is to be made from gross revenues of the LNRA recreation operations.

In July, 1996, the Authority presented the TWDB a check in the amount of $1,256,922 which represents the Board's full 1996 debt service payment to the Bureau of Reclamation. Also, in July, 1996, the Authority submitted a check to the Bureau of Reclamation in the amount of $842,011 representing the Authority's first debt service payment.

An interbasin transfer permit was received from TNRCC in September, 1996 completely validating the Corpus Christi contract.

Future Needs and Development:

Stage II of the Palmetto Bend Project, which will be located on the Lavaca River, was permitted by the Texas Water Commission (now TNRCC) along with Stage I in 1972. While the total yield of Stage II is approximately 42,000 acre-feet per year, it is expected that estuarine requirements will reduce the amount allowed for diversion. A reasonable estimate used for planning is 30,000 acre-feet per year. It is the stated policy of the Authority not to construct Stage II in advance of needs.

The Authority and the Texas Water Development Board in a joint initiative have completed a study of the projected availability and demands for the region (Lavaca Basin and adjoining coastal basins). A Lake Texana Water Pricing Model has been developed. The Authority has indicated willingness to design and construct water/wastewater treatment facilities to meet the municipal and industrial needs of the area, if required.

The Authority also works with other entities such as cities and counties to coordinate the maintenance and construction of drainage structures, disposal of wastewater, flood and emergency planning, public events, and law enforcement.