Volume 17, Issue 11- Friday, March 15, 2019 Optional Link
Senate approves appropriations from rainy day fund
The Economic Stabilization Fund (ESF), also known as the rainy day fund, is estimated to have more than $12 billion. If the 2019 legislative session doesn't tap the rainy day fund, it should contain about $15.4 billion by August 2021, according to Texas Comptroller Glenn Hegar. 

On Wednesday, the Texas Senate passed Senate Bill 500, providing over $6 billion in a supplemental budget bill to address damages from Hurricane Harvey and several other issues. The nearly $3 billion of Hurricane Harvey-specific funds account for most of the $4.36 billion to be given out by the state's ESF. The Senate also wants to provide school districts up to $100 million for school safety improvements. The funding could be used to install video monitors, metal detectors, vehicle barriers, security systems, shooter-alarm systems, two-way radios, security fencing, bullet-resistant glass and door-locking systems on campuses. 

Texas Health and Human Services would receive $110 million for Medicaid client services to replace money transferred from that strategy to disaster assistance programs to address needs resulting from Hurricane Harvey. Other monetary mentions include $300 million for state hospital facilities and $542 million to the Teacher Retirement System. The bill also funds the rebuilding of The University of Texas Marine Science Institute in Port Aransas, with $14.8 million dedicated to the facility. Apart from the rainy day fund expenditures, the Texas Senate also approved $2 billion toward a Medicaid shortfall as part of the budget amendment among other things. The measure now heads to the Texas House for approval.

An infographic of Senate Bill 500 is located here
Port of Corpus Christi included in President's proposed budget
For the second year, the Port of Corpus Christi's Ship Channel Improvement Project (CIP) was included in the President's FY 2020 budget for U.S. Army Corps of Engineers (USACE) Coastal Navigation Construction that was released Monday by the White House. The Port of Corpus Christi is the only Texas port included in the President's proposed budget. 

The proposed budget includes more than $53.3 in funding for the Port of Corpus Christi's CIP in the USACE Civil Works budget. The CIP received $13 million in the 2019 federal budget, $23 million in the 2019 USACE Work Plan, and $59 million in the USACE 2020 Work Plan, in addition to the $132 million the Port of Corpus Christi has contributed to the CIP project. Completion of the ship channel will allow the port to increase export volumes of U.S. oil and natural gas, bolstering domestic energy production and supporting the nation's allies abroad. The Port of Corpus Christi exported $10.8 billion of crude oil to U.S. trading partners in 2018, contributing to the offset of the United States trade deficit.
League City begins work on Grissom Road
League City voters on May 4 will decide two propositions for issuing a total of $145 million in bonds to fund transportation and drainage projects as well as consider increasing the city's sales tax rate to help cover the bond debt. 

Proposition A would provide $73 million in general obligation bonds for flood protection and drainage improvements. Proposition B would provide $72 million in general obligation bonds to fund street, roadway and mobility improvements. The city decided this week to get to work on one of the bond projects, an $11.2 million project to reconstruct part of Grissom Road. The City Council approved a contract with Houston-based civil engineering group for design work on the Grissom Road reconstruction project as well as installing a water line alongside the roadway, despite the project being part of a bond package voters have yet to approve. 

The project involves reconstruction of about 5,600 feet of road with a four-lane divided roadway and includes the installation of 5,000 feet of 12-inch water line from a booster station to West NASA Road. This project is part of the city's master mobility plan and will proceed regardless if Prop B passes. 
Galveston soliciting request for proposals on 25th Street
The city of Galveston is soliciting for proposals from contractors on a $7.6 million road project and expects to award the contract in April. The city anticipates issuing a notice to proceed on the 25th Street project in June and expects to complete the work in 2020. 

Some of the funds will come from a $212.5 million bond package, approved by voters in 2017 to improve roads including 26th, 73rd, 27th and 45th streets. In addition to pavement and drainage work, signs will be added to aid pedestrian crossings, curbs and sidewalks will be replaced and intersections will receive landscaping improvements.
Chao makes announcement at SXSW Conference
Elaine Chao
U.S. Transportation Secretary Elaine Chao spoke this week at the South by Southwest (SXSW) Conference in Austin. Chao announced the creation of a new council at the U.S. Department of Transportation (USDOT) that would be tasked with identifying and resolving jurisdictional and regulatory issues that may impede the deployment of new and emerging technology. 

The USDOT has 11 operating administrations, each with its own traditional jurisdiction over certain environmental and regulatory approvals. New technology may not always fit into the department's existing regulatory structure, which could result in a slower pace of transportation innovation. Inventors and investors approach the DOT to obtain necessary safety authorizations, permits and funding and often face uncertainty about how to coordinate with the department. The Non-Traditional and Emerging Transportation Technology Council (NETT) will address this and technologies such as tunneling, hyperloop and autonomous vehicles.
Strategic Partnerships salutes Texas' Lone Stars
Noel Bernal, City Manager, City of Brownsville
Noel Bernal

Career highlights and education: Noel Bernal began serving as City Administrator in small cities at the age of 25. This provided him a strong foundation, and the privilege of making an impact in under-served communities. As City Administrator of La Villa, he oversaw the development and implementation of a multi-year financial plan leading to the city's first bond issuance for critical wastewater treatment plant improvements which avoided a state takeover of operations. He then transitioned Falfurrias to the Council-Manager form of government serving as the first City Administrator. He has also served in the high-growth metropolitan areas of Austin-Round Rock and Dallas-Ft. Worth as Assistant City Manager in Taylor and Deputy City Manager in Coppell. 

Having served communities in South, Central, and North Texas, his career came full circle with his appointment as City Manager for the City of Brownsville, the largest city in the Rio Grande Valley, on Dec. 3, 2018. 

Mr. Bernal earned an undergraduate degree and a Master of Public Administration from the University of Texas Pan American (now The University of Texas Rio Grande Valley). He is a Credentialed Manager through the International City/County Management Association, a Certified Public Manager through the William P. Hobby Center for Public Service at Texas State University and graduate of the Senior Executive Institute at the University of Virginia. 

What I like best about my public service: Public service is a people business. The vision, strategies, and plans we execute are for improving the quality of life and standard of living for our citizens. I collaborate with various stakeholders, elected officials, and talented staff to make this happen. I am blessed for being able to live my values, serve others, and make a positive impact in my community as city manager. 

The best advice I have received for my current job: Embrace your background and don't make apologies. The imposter syndrome was once a challenge that impacted my thinking. A mentor helped me understand that people will respect you for who you are and what you have accomplished.

Advice you would give a new hire in your office: I'm a big believer in the intangible qualities that feed an individual's drive and desire to succeed. My advice is to make a commitment to personal growth, learning, development, and operating outside of our comfort zone for sustainable success. Pursuing excellence and never being satisfied is a life-long journey.
If I ever had the opportunity to leave work early, I could probably be found: I have a 1-year old son and 5-year old daughter so my free time is primarily spent with them. They are a joy to be with and keep me balanced.

People would be surprised to know that: I was raised in a migrant family through high school and was the first in my family to graduate from college.

One thing I wish more people knew about the City of Brownsville: Brownsville has a rich culture which is best embodied by the welcoming and warm nature of its people. Brownsville people have a lot of Corazon (heart). And you will be greeted with this kindness when visiting Brownsville.
City of Anahuac to update water infrastructure
The Anahuac city council this week received an update on its water infrastructure projects totaling $16 million. This included plans for a water plant project, sewer projects and Texas Water Development Board (TWDB) projects. 

The preliminary design phase of a wastewater treatment plant, a $6.25 million project, has begun and plans for the rehabilitation of a lift station have been submitted to the TWDB for approval. Once approved, requests for proposals (RFP) for projects will be solicited for bidding. An RFP will also be advertised for the city's sanitary sewer collection system. Another improvement in the works is to clean up City Hall from damages caused by Hurricane Harvey. The building received water damage and the city plans to advertise for bids for the rebuild of the facility.
Raymondville building reverse osmosis plant
In February 2013, the city of Raymondville was facing water issues due to extreme drought conditions. The city was informed by its water provider that it could run out of water in 60 days. The city ended up administering harsh drought restrictions and eventually had to buy extra water from another irrigation district. Fortunately, rain showers followed the action and filled the Delta Lake. 

After this drought experience, City Manager Eleazar Garcia has been working on a way to build a reverse osmosis plant to make the city's water supply self-sustaining. The city is building a $4.5 million reserve osmosis plant to turn salty, brackish groundwater into an alternative water source. The plant's construction is expected to be completed in 2020. The plant will clean 1.5 million gallons of groundwater a day and it will get mixed with the water supply from Delta Lake. The city will become the third city in the Rio Grande Valley to operate a reserve osmosis plant.
GLO releases coastal resiliency plan
The Texas General Land Office (GLO) this week announced the release of the 2019 Texas Coastal Resiliency Master Plan, which addresses natural and man-made coastal environments. This Resiliency Plan also recommends 123 projects compiled by the GLO coastal team with input from a Technical Advisory Committee to mitigate issues that negatively impact coastal communities. 

The plan focuses on the protection of both coastal infrastructure and natural resources through the implementation of recommended projects. The recommended projects are located with four different regions of the coast to target all areas in need of better protection and restoration. The Resiliency Plan additionally incorporates the utilization of the most current storm surge and relative sea level rise models to illustrate the need and benefit of these projects into the future.
Three appointed to Texas A&M University System Board of Regents
Jay Graham
Jay Graham, Mike Hernandez and Michael J. Plank have been appointed to the Texas A&M University System Board of Regents for terms set to expire on Feb. 1, 2025. 
Graham of Houston is chairman and CEO of an oil and gas exploration and production services corporation. He is a member of the Society of Petroleum Engineers (SPE), the Texas A&M School of Petroleum Engineering Industry Advisory Board, College of Engineering Advisory Council, 12th Man Foundation Board of Directors and the Chancellor's Century Council. 

Mike Hernandez
Hernandez of Fort Worth is owner and CEO of an auto leasing service and owner and dealer principal of four vehicle dealerships. He is a member of National Automobile Dealers Association and the Texas Automobile Dealers Association. He is a member of the Advisory Committee to Chancellor Sharp for the McAllen Campus of Texas A&M University and the Advisory Committee to Lt. Gov. Patrick on workforce training. 

Michael Plank
Plank of Houston is chairman and CEO of a commercial real estate corporation and three affiliated companies. He is a member and past chairman of the Young Presidents' Organization, past president of the Trench Shoring & Shielding Association of America and the Houston Equipment Distributors. He is a gubernatorial appointee to the Texas Higher Education Coordinating Board and the Governor's University Research Initiative Board.
City of Greenville to sell municipal bonds for water/sewer upgrades
The city of Greenville this week mulled over bids on a water and sewer improvements bond totaling $20.2 million. The bond will be repaid from the 5 percent increase in water and sewer user rates approved in previous city budgets. The funds will cover an assortment of water projects including the construction of a pump station at Center Point Lane at a cost of $5.6 million. 

Repairs and improvements to the water treatment plant filter will cost more than $5.2 million, and construction of a new sedimentary basin at the water treatment plant is estimated to cost more than $3.9 million. The public bids were reviewed Tuesday and a bidder submitting the lowest true interest cost was awarded the sale of the certificates. The city also has called for a $15 million streets bond election for May.
Brownsville to develop/open entrepreneurship center
The Brownsville Community Improvement Corporation (BCIC) plans to transform the old La Casa del Nylon building at 1304 E. Adams St. into an entrepreneurship center tentatively called the "e-Bridge Center for Business & Commercialization." The structure, built in 1967, was purchase by the city of Brownsville in 2012. 

The BCIC plans to issue a request for proposals this month to begin work on engineering and architectural plans and anticipates a groundbreaking by mid-summer. The center will be a business incubator for launching start-ups and will provide resources for small businesses and entrepreneurs. The building has already been gutted and this will lower the cost of renovations. The BCIC submitted an application to the Economic Development Administration with the hope of landing a grant to defray half the renovation cost.
Sherman to solicit bids for entertainment project next to library
The Sherman Public Library in 2018 moved back into its refurbished location after a year of renovations on its facility. With an updated library in place, the city of Sherman wants to expand on educational and entertainment opportunities offered at the library by adding a pavilion and musical instruments outside of the building. 

Sherman City Council recently approved a request from city staff to solicit bids for the pavilion and instruments. Construction should begin on the pavilion as soon as bids are approved. The pavilion and grassy area will be installed at the corner of Mulberry and Walnut on the southeast corner of the lot. There will be large outdoor musical instruments such as bongo drums for children play. The pavilion will provide outdoor concerts for children. Library personnel are also hoping to bring a butterfly garden to the new outdoor space.   
DSHS confirms 11 cases of measles in Texas
The Texas Department of State Health Services (DSHS) is reporting 11 cases of measles as of this week. Last week, the state surpassed the total number in all of 2018 when there were nine confirmed cases. In 2017, Texas only had one case of measles. One case has been confirmed in the counties of Bell, Collin, Centon, Galveston, Guadalupe, Jefferson and Montgomery. Four cases have been confirmed in Harris County. 

Measles is a highly contagious respiratory illness transmitted when an infected person coughs or sneezes virus particles into the air. It's so contagious that if one person is sick and spreading measles, nine out of 10 people around them who aren't immune will get it, too. The illness usually starts a week or two after someone is exposed to the virus with symptoms like a high fever, cough, runny nose and red, watery eyes. A few days later, the telltale rash breaks out as flat, red spots on the face and then spreads down the neck and trunk to the rest of the body. A person is contagious about four days before the rash appears to four days after. 

The best way to prevent getting sick is to be immunized with two doses of the measles vaccine. DSHS and the Centers for Disease Control and Prevention recommend children receive one dose at 12 to 15 months of age and another at 4 to 6 years. DSHS will continue to update case counts for the current year.
National League of Cities publishes report on road use charge
The National League of Cities published on March 11 its report "Fixing Funding by the Mile: A Primer and Analysis of Road User Charge Systems," which makes the case that states and cities should explore such fundraising mechanisms. Road user charge (RUC) programs base fees on the number of miles driven rather than the gallons of fuel their vehicles consume. 

Currently, a federal gas tax of 18.4 cents per gallon is the primary source of income for the federal Highway Trust Fund (HTF). However, the HTF has faced years of declining revenue alongside increasing demands for funding road maintenance and new construction projects. The American Society of Civil Engineers (ASCE) predicts that by 2025 the United States will see a $1.1 trillion-dollar shortfall for transportation funding at the federal, state and local levels. At the local level, local option fuel taxes are authorized in sixteen states; however, only cities in eight states use this funding option.
TRS bill approved by Senate State Affairs Committee 
The Texas Senate State Affairs Committee this week approved Senate Bill 12, updating the Texas Teacher Retirement System (TRS). The active teacher contribution would rise from 7.7 percent today to 8.5 percent in 2024. State contributions would rise from 6.8 percent of payroll to 8.25 percent over the same period, and district contributions would rise from 1.5 percent of eligible payroll to 2 percent by 2025. Under the bill, retired teachers would be eligible for a one-time bonus check of up to $500, payable in the 2020-2021 biennium. 

The Senate bill would cost the state $551 million next biennium, according to Legislative Budget Board analysis. The TRS provides pension annuities for the state's 420,000 retired teachers, supported by a percentage of each active teacher's paycheck, money from school districts and funds from the state. House Bill 9 seeks to accomplish similar goals by raising only the state contribution, up to 8.8 percent by 2025. 
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April 3-5/ Austin, Texas
The State Energy Conservation Office (SECO), PACENation (Property Assessed Clean Energy) is offering 25 scholarships for local county, city and special district Texas government participants to attend the 2019 PACENation Summit. The Summit is scheduled for April 3-5, 2019 at the Hilton Austin Hotel. Join PACE experts, local governments, entrepreneurs and other PACE leaders to network, learn and share experiences. 

The 2019 PACENation Summit is the only national conference focused completely on PACE and this year PACENation is showcasing a Texas track including sessions on PACE as an Economic Development Tool, Rural PACE in Texas, Measuring the impact of PACE and more! For more information on the Summit or to apply for a scholarship, visit here or email sarah@pacenation.org. The scholarships are being offered on a first-come, first-serve basis.

By Mary Scott Nabers, CEO of Strategic Partnerships, Inc.

Cities and counties have common problems throughout the U.S. And, these common issues are opening up a new marketplace that is catching the attention of investors and contractors. There's definitely a trend developing here. 

Public officials at the state and local levels of government are seeking alternative sources of funding to deal with thousands of infrastructure issues that threaten their economy and the well-being of citizens. Large cities and counties have no trouble finding interested private-sector investors. That's not been the case, however, for small communities and rural areas in most states. That is now changing. 

The trend that is turning heads is occurring in smaller cities, counties, healthcare districts, community colleges and school districts. It's here where local companies, nonprofits, universities and regional banks are partnering with government leaders to ensure sustainability, boost the local economy, provide affordable housing and increase public safety resources.  

The trend is just emerging...but it is noticeable. It is surprising local firms that are being asked to bring funding to projects that interest them. It is delighting some banking groups that like this type of investment and it is catching the attention of a few large investment funds. These types of partnerships are atypical and most are structured specifically to conform to local norms. Unless something significant changes, alternative funding of this type will soon become the norm in smaller cities and counties for many types of critical projects. Sourcing funding locally or regionally for smaller sized projects is definitely a new trend. 

The smaller projects, usually under $50 million, and the various engagement models have some commonality with large P3 projects but they are also quite different in many cases. Regardless, this new marketplace should not be overlooked by government contractors because big changes are occurring.  

Check out this article from our Pipeline newsletter!

Sega named CTO for Army Futures Command
Ronald Sega
Retired Air Force Maj. Gen. Ronald Sega is Army Futures Command's chief technology officer (CTO). Sega, who will be supporting the technical integrative aspects of Future Commands, has served as director, Systems Engineering Programs at Colorado State University and special assistant to the chancellor for Strategic Initiatives since September 2013. 

A former astronaut, Sega flew two missions into space on the space shuttle Discovery in 1994 and as payload commander for the third shuttle/Mir docking mission aboard Atlantis in 1996. Sega served as under secretary of the U.S. Air Force from August 2005 to August 2007. From August 2001 until August 2005, Sega was director of Defense Research and Engineering, Office of the Secretary of Defense, which is the CTO for the Department of Defense.
Ripoll to lead business development/marketing at SPI
Carol Ripoll
Carol Ripoll has joined the Strategic Partnerships, Inc. (SPI) team to lead the business development and marketing efforts. Ripoll holds a degree in Business Administration with a major in Marketing from Polytechnic University of Puerto Rico. Additionally, she has certifications in Digital Marketing.  

Ripoll will assist in SPI's outreach efforts, and direct the company's marketing initiatives. She will work closely with the consulting teams and the research division. As an individual with excellent bilingual skills, she will assist with international clients and also work with the company's two weekly newsletters and social media. View Ripoll's profile here
Wilson tapped as UTEP president
Heather Wilson
In the first presidential search for its El Paso campus in three decades, The University of Texas Board of Regents tapped Heather Wilson. Currently serving as the secretary of the U.S. Air Force, Wilson is a Rhodes scholar and is a five-term congresswoman from New Mexico. 

Wilson is the sole finalist to succeed The University of Texas at El Paso (UTEP) President Diana Natalicio, who has served in that position since 1988. State law requires a 21-day waiting period before regents can confirm her appointment. Wilson plans to leave her position on May 31 and is to become the UTEP president effective Sept. 1.

Mendoza appointed to chief of economic development
Michael Mendoza
Michael A. Mendoza has been appointed to the position of chief of Economic Development and Neighborhood Services. Effective April 3, Mendoza will begin leading efforts to deliver neighborhood services and strengthen collaboration among stakeholders to improve the quality of life for Dallas residents. 

Throughout his 25-year career, Mendoza has served in various capacities to multinational organizations. He has served as trade commissioner for the Consulate General of Canada and as the director for international development with the Dallas Market Center.
Butler selected as senior director in Williamson County
Dale Butler
Dale Butler has been named Williamson County's senior director of Facilities Management and Planning. Commissioners Court approved the change in position to a senior director, which reports directly to the court. 

Butler began working for Williamson County in June 2011 as the project manager for new construction projects, then was promoted to assistant director. Prior to working for Williamson County, Butler worked as a project manager for various general contractors. The Facilities Department has 30 employees who maintain and repair all facilities as well as oversee new construction and remodels.
Submit comment on draft of Central Texas Regional Fair Housing Study
A draft of the Central Texas Regional Fair Housing Study is now available for public comment through April 23. The study is a planning process for local governments and public housing agencies (PHAs) to take meaningful actions to overcome historic pattern of segregation, promote fair housing choice and foster inclusive communities that are free from discrimination. 

This study was conducted for the Central Texas Region in 2018 and 2019. Fourteen focus groups were completed with residents who are typically most vulnerable to experiencing barriers to housing choices. More than 200 residents also participated in community events and ten focus groups were completed with policymakers, advocates and community leaders throughout the region. The Executive Summary and Appendix A can be found here.  A full draft of the study can be found here
Willis city manager to retire
Hector Forestier
Hector Forestier, who was appointed as the city manager of Willis in 2009, plans to retire on Sept. 30. The city will begin the process to find a new city manager in May and hope to select a candidate by mid-August. 

One of Forestier's accomplishments was to help the city just north of Conroe switch from the Jasper aquifer to Catahoula aquifer as part of the Ground Water Reduction Plan. 

Snyder resigns as El Campo city manager
Mindi Snyder
El Campo City Manager Mindi Snyder is resigning after eight years in the position. Her last day is expected to be April 30. Snyder left her position in June 2010 as a finance director in Rosenberg to become the city manager in El Campo. 

She replaced John Steelman, who retired after 33 years of service, rising through the municipal ranks to the city manager's post. Snyder is reportedly seeking another post and has no plans to leave the city. A committee has been formed to find Snyder's replacement.
Crooks to resign as Orange County judge
Dean Crooks
Orange County Judge Dean Crooks tendered his resignation on March 13. His last day is March 19. Crooks was appointed his first term of office on May 2, 2018. As County Judge he presides over the five-member Commissioners' Court. 

Crooks served in the U.S. Army as an intelligence analyst. He joined the city of Beaumont Police Department in 1993. He was promoted to lieutenant in 2003 and retired from the department in December 2015.
Marlin city manager leaving position
Marlin City Manager Alan Grindstaff will step down from his position this week. Grindstaff, Marlin's fourth city manager in about five years, was hired in February 2017. 

His contract was supposed to run until April of 2020, however, there are clauses in Grindstaff's contract that allowed for a buyout. The city will now look at bringing in an interim manager and a permanent one after that.

Gov. Greg Abbott has announced the following appointments/reappointments from March 8-March 14

Carl Ray Polk Jr.- Lufkin, Texas State Soil and Water Conservation Board (reappointed)
Sydney B. Hewlett- Cleburne, 18th Judicial District Court
Ryan Sinclair- Granbury, District Attorney for 355th Judicial District
Texas House of Representative House Research Organization- Legislative Staff 86th Legislature 2019
Legislative Budget Board- House Appropriations Committee Adopted Decision Documents
Legislative Budget Board- Senate Finance Committee Initial Decision Documents
U.S. Chamber of Commerce Chamber Technology Center- Unlocking the Digital Potential of Rural America
Dozens of public-sector jobs are available. Click here to view all job openings and guidelines for job submissions to SPI. New jobs added this week:  
  • Texas Facilities Commission- Program Specialist VI
  • Texas Historical Commission- Project Design Assistant Historic Sites Division
  • Texas Department of Public Safety- eLearning Specialist 
  • Texas Education Agency- Financial Analyst II
  • Office of the Texas Governor- Grant Coordinator I
  • Teacher Retirement System- Lead Data Engineer
  • Texas Water Development Board- Credit Analyst
  • Texas Department of Information Resources-Administrative Assistant IV
  • City of San Angelo- Deputy Airport Administrator
  • City of Sugar Land- Contracts Coordinator
  • City of Garland- Capital Project Management Director
  • City of Waco- Airport Security Advisor
  • Brazos River Authority- Lake Ranger in Granbury
View our Texas Government Insider and Government Contracting Pipeline newsletter archives

Texas Government Insider is a free weekly newsletter detailing important happenings throughout the state and summarizing current political issues relevant to individuals interested in government.   
Publisher: Mary Scott Nabers
Editor: Kristin Gordon 
TGI is published by Strategic Partnerships, Inc. (SPI), a research and consulting firm. Founded in Texas in 1995 by former government executives and public sector experts, SPI has developed a national reputation as the premier marketing partner dedicated to helping companies secure contracts in the $1.5 trillion state and local government marketplace.   
To learn more about SPI services, click here or contact our sales department at 512-531-3900. 
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