LCRA board approves land-leveling funds, Series F revenue note and a package of contracts totaling hundreds of millions

The Lower Colorado River Authority board on Wednesday approved a package of operational and procurement items, including additional funding for the agricultural land-leveling program, a companion revenue note (Series F), and nine new contracts plus one contract change for transmission, transformer and related services.

Monica, a staff member who addressed the board about the agricultural program, said the Ag Advisory Committee—nine members appointed by the county judges of Matagorda, Wharton and Colorado counties—recommended approval of additional funding for the land-leveling program. The item carried on a voice vote; the meeting transcript records the motion, a second and a voice vote in favor. The transcript's numeric amount for the additional land-leveling funding is unclear (the recorded phrase is "$500,000.04 50"). Monica also said staff requested $25,000 per year for two years for program studies or administration. The board approved the request.

The board also approved a companion finance item related to transmission, described in the packet as "revenue note Series F." Staff reported no additional updates on the item and the board approved the companion motion on a voice vote.

Supply-chain and procurement staff presented nine new contracts and one contract change and requested board approval. Mr. Chavez, the supply-chain presenter, summarized the package: three contracts to construct new sites for private long-term-evolution (LTE) telecommunications towers with not-to-exceed values of $10,000,000 each (NextEdge, Deep South Communications and CA BaaS Ventures); four professional-engineering contracts for high-voltage substation and transmission-line projects with not-to-exceed values of $75,000,000 each (Burns & McDonnell; Macdonald; Power Engineers; Oltec); a contract to Ilgen Electric USA for 138 kV and 345 kV power transformers with a not-to-exceed value of $70,000,000 to secure production capacity; a PricewaterhouseCoopers consulting contract to provide general-auditing services with a not-to-exceed value of $8,500,000; and a contract-change request to Allen Plumbers Associate to increase the contract by $7,300,000, bringing its total not-to-exceed value to $10,000,000 for wastewater and stormwater permitting support.

Mr. Chavez said the $70,000,000 transformer request intends to secure production slots and that LCRA "more than likely will only procure ... 5 to 10 from them, and they're each around $5,000,000 apiece." He and other staff described severe industry-wide supply-chain constraints for transformers, breakers and other components, and said securing multiple qualified vendors and production slots is the organization’s strategy to manage long lead times. Staff told directors some transformer manufacturing slots are booking three years or more into the future.

The board moved, seconded and approved the procurement package on a voice vote; the chair announced the motion carried. After the approvals the board entered executive session and took no further action in open session. The meeting adjourned at 2:32 p.m.

Recorded materials in the meeting packet identify the contract counterparties and not-to-exceed amounts; board members asked clarifying questions about quantities, domestic manufacturing and tariff impacts but did not block approval. The approvals permit staff to proceed with the awarded contracts and the amended Allen Plumbers agreement under the not-to-exceed limits approved by the board.