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SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662PETITION OF THE CITIES OFGARLAND, MESQUITE, PLANO ANDRICHARDSON APPEALING THEDECISION BY NORTH TEXASMUNICIPAL WATER DISTRICTAFFECTING WHOLESALE WATERRATES2: 3BEFORE THE STATE 0141111GE LLiOFADMINISTRATIVE HEARINGSNORTH TEXAS MUNICIPAL WATER DISTRICT'SRESPONSE TO PETITIONING CITIES FOURTH REQUESTFOR INFORMATION AND REOUEST FOR RULE 194 DISCLOSURESNorth Texas Municipal Water District ("NTMWD” or the "District") files this Responseto the aforementioned request for information and request for disclosures.I.WRITTEN RESPONSESAttached hereto and incorporated herein by reference is NTMWD's written response to theaforementioned request for information and request for disclosures. Each such response is setforth on or attached to a separate page upon which the request has been restated. Such response isalso made without waiver of NTMWD's right to contest the admissibility of any such matters uponhearing. NTMWD hereby stipulates that its response may be treated by all parties exactly as if itwas filed under oath.II. INSPECTIONSIn those instances where materials are to be made available for inspection by request or inlieu of a written response, the attached response will so state.1
Respectfully submitted,Lauren J. KalisekState Bar No. 00794063James T. AldredgeState Bar No. 24058514LLOYD GOSSELINK ROCHELLE& TOWNSEND, P.C.816 Congress Avenue, Suite 1900Austin, Texas 78701(512) 322-5800(512) 472-0532 COFFIN RENNER LLP98 San Jacinto Blvd., Suite 1450Austin, Texas 78701(512) 879-0900(512) 879-0912 m-(14111\OAA1111,6t/u--KATE NO1 MANState Bar No. 24051121GENE MONTESState Bar No. 14284400ATTORNEYS FOR NORTH TEXASMUNICIPAL WATER DISTRICTCERTIFICATE OF SERVICEI hereby certify that true and correct copy of the foregoing document has been served onall parties of record on January 22, 2018 in accordance with 16 Tex. Admin. Code § 22.74.1\,(yvvvutAA,Kate Norman22
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1Pursuant to Rule 194, please disclose the information or material described in the followingsubsections of Rule 194.2:(c)the legal theories and, in general, the factual bases of the responding party'sclaims or defenses;(e)the name, address, and telephone number of persons having knowledge ofrelevant facts, and a brief statement of each identified person's connectionwith the case;(f)for any testifying expert:(1)(2)(3)(4)the expert's name, address, and telephone number;the subject matter on which the expert will testify;the general substance of the expert's mental impressions and opinionsand a brief summary of the basis for them, or if the expert is notretained by, employed by, or otherwise subject to the control of theresponding party, documents reflecting such information;if the expert is retained by, employed by, or otherwise subject to thecontrol of the responding party:(A) all documents, tangible things, reports, models, or datacompilations that have been provided to, reviewed by, orprepared by or for the expert in anticipation of the expert'stestimony; andthe expert's current resume and bibliography;(B)any witness statements described in Texas Rule of Civil Procedure 192.3(h).Response:(c)The protested rate does not adversely affect the public interest under CommissionRule 24.133. The Commission should issue a final order denying the petition. The factual basesfor these claims will be detailed in the pre-filed direct testimonies of Tom Kula, Judd Sanderson,and Mike Rickman, which will be filed on February 5, 2018.(e)The following persons have knowledge of relevant facts:Tom KulaExecutive Director of the North Texas Municipal Water District3
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1 (cont'd)Judd Sanderson, CPADeputy Director — Personnel and Finance, North Texas Municipal Water DistrictMike RickmanDeputy Director — Operations and Maintenance, North Texas Municipal Water DistrictJoe StankiewiczDeputy Director — Engineering and Capital Improvement Program, North Texas MunicipalWater DistrictAll Members of the District's Board of Directors:Joe Farmer— AllenPhil Dyer— PlanoJames Kerr— AllenRod Hogan— PlanoWayne May— FarmersvilleBill Glass - PrincetonDarrell Grooms— ForneyDave Island— PrincetonRichard Peasley— FriscoJohn Murphy— RichardsonLynn Shuyler— FriscoJohn Sweeden— RichardsonDon Gordon - GarlandBill Lofland - RockwallJack May— GarlandLarry Parks - RockwallJoe Joplin— McKinneyDavid Hollifield— Royse CityCharles McKissick— McKinneyMarvin Fuller - WylieTerry Sam Anderson - MesquiteRobert Thurmond - WylieDavid Paschall— Mesquite4
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1 (cont'd)Each of the preceding persons can be contacted at the following location:501 East Brown StreetWylie, TX 75098Telephone: 972-442-5405Alan Raynor717 North HarwoodSuite 900Dallas, Texas 75201Telephone: 213-754-9200Mr. Raynor is an attorney at the McCall Parkhurst & Horton law firm and serves as bondcounsel for the North Texas Municipal Water District.David Medanich1201 Elm Street, Suite 3500Dallas, Texas 75270Telephone: 214-953-4000Mr. Medanich is Vice Chairman, Head of Public Finance, for HilltopSecurities/FirstSouthwest Asset Management and serves as a financial advisor to the NorthTexas Municipal Water District.(0The District currently intends to offer the testimony from the following experts:Chris D. EkrutDirector, Environmental PracticeNewGen Strategies and Solutions1300 East Lookout Drive #100Richardson TX 75082Telephone: 972-680-2000Mr. Ekrut is expected to testify regarding the issues raised relevant to the public interestanalysis set out in 16 Tex. Admin. Code § 24.133 (TAC). Specifically, Mr. Ekrut willtestify about contentions made regarding the purchaser's ability to continue to provideservice to its retail customers based on the purchaser's financial integrity and operationalcapability. It is anticipated that he will testify regarding allegations that the District hasabused its monopoly power. It is also anticipated that he will testify regarding whether the5
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1 (cont'd)protested rate is unreasonably preferential, prejudicial, or discriminatory, compared to thewholesale rates charged other wholesale customers. The bases for Mr. Ekrut's opinionsand mental impressions include his years of experience in the water industry in Texas,experience with wholesale water and retail water providers in Texas, and his experiencespecifically with the North Texas Municipal Water District. The details of Mr. Ekrut'smental impressions and opinions will be set out in his pre-filed testimony, which will bedistributed to the parties on February 5, 2018.In preparation of his testimony, Mr. Ekrut has reviewed the pre-filed testimony in this caseand many of the documents filed in the case and publicly available on the CommissionInterchange in Docket No. 46662. Because Mr. Ekrut has begun preparing his testimony,the District expects to provide additional documents responsive to Rule 194.2(f)(4)(A) ashe completes and files his testimony. A copy of Mr. Ekrut's resume is attached.Thomas C. Gooch, P.E.Vice PresidentFreese and Nichols, Inc.4055 International Plaza, Suite 200Fort Worth, Texas 76109Telephone: 817-735-7300Mr. Gooch is expected to testify regarding issues raised by the Petitioning Cities witnessesin direct testimony. Specifically, Mr. Gooch will testify about the District's activitiesrelated to regional project planning and water conservation. It is anticipated that he willtestify as to misstatements made by Petitioning Cities' witnesses regarding the District'splanning for anticipated future demands of the Petitioning Cities. It is also anticipated thathe will testify regarding factors that influence municipal water demand, including waterconservation and drought contingency planning. The bases for Mr. Gooch's opinions andmental impressions include his many years of experience in the water industry in Texas,including water supply planning, water right permitting, water conservation and droughtresponse planning, reservoir operation studies, water quality evaluations, analyses offlooding, preliminary design and cost estimates for water supply projects and transmissionsystems, and economic analyses. His experience also includes serving as leader of theconsultant team for the Region C Regional Water Planning Group and his specific waterplanning work for the North Texas Municipal Water District since the 1990s. The detailsof Mr. Gooch's mental impressions and opinions will be set out in his pre-filed testimony,which will be distributed to the parties on February 5, 2018.6
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1 (cont'd)In preparation of his testimony, Mr. Gooch has reviewed the pre-filed testimony in thiscase and many of the documents filed in the case and publicly available on the CommissionInterchange in Docket No. 46662. Because Mr. Gooch has begun preparing his testimony,the District expects to provide additional documents responsive to Rule 194.2(0(4)(A) ashe completes and files his testimony. A copy of Mr. Gooch's resume is attached.Carlos RubinsteinPrincipalRSAH20, LLC16238 Ranch Road 620 North, Suite F364Austin, Texas 78717Telephone: 512-394-8929Mr. Rubinstein is expected to testify regarding issues raised relevant to the public interestanalysis set out in 16 TAC § 24.133 as well as other issues raised by the Petitioning Citieswitnesses in direct testimony. Specifically, Mr. Rubinstein will testify regarding prior casesdealing with the application of the public interest criteria outlined in 16 TAC § 24.133. Itis anticipated that he will testify as to misstatements made by Petitioning Cities witnessesregarding certain public interest criteria and factors. It is also anticipated that he will testifyregarding how state and regional water planning considerations, as well as waterconservation and drought contingency planning considerations, impact a public interestanalysis under 16 TAC § 24.133. The bases for Mr. Rubinstein's opinions and mentalimpressions include his experience serving as chairman of the Texas Water DevelopmentBoard ( TWDB"), commissioner of the Texas Commission on Environmental Quality("TCEQ”), the TCEQ's Rio Grande Watermaster, and City Manager for the City ofBrownsville. More specifically, Mr. Rubinstein will base his opinions and mentalimpressions, in part, on his personal experience administering the public interest criteriaset out in 16 TAC § 24.133 during his time as a TCEQ Commissioner. The details of Mr.Rubinstein's mental impressions and opinions will be set out in his pre-filed testimony,which will be distributed to the parties on February 5, 2018.In preparation of his testimony, Mr. Rubinstein has reviewed the pre-filed testimony in thiscase and many of the documents filed in the case and publicly available on the CommissionInterchange in Docket No. 46662. Because Mr. Rubinstein has begun preparing histestimony, the District expects to provide additional documents responsive to Rule194.2(0(4)(A) as he completes and files his testimony. A copy of Mr. Rubinstein's resumeis attached.7
SOAH DOCKET NO. 473-17-4964.WSPUC DOCKET NO. 46662NTMWD's Response to Cities Fourth RFI andRequest for Rule 194 DisclosuresCITIES 4-1 (cont'd)Jack E. Stowe, Jr.Executive ConsultantNewGen Strategies and Solutions, LLC3409 Executive Center Drive, Suite 128Austin, Texas 78731Mr. Stowe is expected to testify regarding issues raised relevant to the public interestanalysis set out in 16 TAC § 24.133. Specifically, Mr. Stowe will testify about therelevance of the District's ability to continue to provide service based on its financialintegrity or operational capacity. It is anticipated that he will testify on contentions maderegarding the purchaser's ability to continue to provide service to its retail customers basedon the purchaser's financial integrity and operational capability. It is anticipated that hewill testify regarding allegations that the District has abused its monopoly power. It is alsoanticipated that he will testify regarding whether the protested rate is unreasonablypreferential, prejudicial, or discriminatory, compared to the wholesale rates charged otherwholesale customers. The bases for Mr. Stowe's opinions and mental impressions includehis decades of experience in the water and electric regulatory industries in Texas,experience with wholesale water and retail water providers in Texas, and his experiencespecifically with the North Texas Municipal Water District. The details of Mr. Stowe'smental impressions and opinions will be set out in his pre-filed testimony, which will bedistributed to the parties on February 5, 2018.In preparation of his testimony, Mr. Stowe has reviewed the pre-filed testimony in this caseand many of the documents filed in the case and publicly available on the CommissionInterchange in Docket No. 46662. Because Mr. Stowe has begun preparing his testimony,the District expects to provide additional documents responsive to Rule 194.2(f)(4)(A) ashe completes and files his testimony. A copy of Mr. Stowe's resume is attached.(i)The District is unaware of any witness statements at this time.Preparer: Counsel for NTMWD8
SOAH Dkt. No. 473-17-4964.WSRic Dkt No 46662Cities RFI 4-1 AttachmentPage 1 of 33Chris D. EkrutNewGenStrategies & SolutionsDirector, Environmental Practicecekrut@newgenstrategies.netMr. Ekrut currently serves as a Director of NewGen Strategies and Solutions, LLC Environmental Practice. He hasbeen in this role since September 2012. Prior to joining NewGen Strategies and Solutions, Mr. Ekrut joined J. Stowe& Co. (now NewGen) as a Senior Consultant in May 2008 and was subsequently promoted to Manager in December2009. Prior to joining J. Stowe & Co., Mr. Ekrut was employed by R.W. Beck, Inc. as a Staff Consultant beginning inJune 2005, after earning his Masters in Public Administration from the University of North Texas and graduating withhonors. Prior to beginning his consulting career, Mr. Ekrut served as an intern for U.S. Congressman Larry Combest,Texas 19th District.EDUCATIONMasters of Public Administration, University of North Texas Bachelor of Arts in Public Administration, West Texas A & M UniversityPROFESSIONAL AFFILIATIONS American Water Works Association Texas Municipal Utilities AssociationEXPERIENCEDuring his career, Mr. Ekrut has assisted in conducting a variety of engagements for water, wastewater, drainage,solid waste, electric, and natural gas utilities. A sampling of Mr. Ekrut's experience is included below:Assisted in conducting an Economic Impact and End User Impact Analysis for the Toledo Bend Water SupplyProject, which proposes to supply at least 600,000 acre-feet of raw water to the DFW Metroplex. Assisted the City of Arlington in conducting a wholesale water sales assessment study. Assisted the Texas Water Development Board in conducting a Socioeconomic Analysis of Select InterbasinTransfers in Texas and developing a model to quantify the financial impact of water conservation measures. Assisted the North Texas Municipal Water District in analyzing rate alternatives for its Member Cities. Assisted in conducting Socioeconomic Analysis in support of the Region C Study Commission Report inresponse to SB 3, 90' Texas Legislative Session requirements. Assisted Dallas Water Utilities and Tarrant Regional Water District in conducting a study of the Raw WaterTransmission System Integration of Lake Palestine. Served as the Project Controls lead for the Program Management of the Waco Metropolitan Area RegionalSewer System Treatment Plant Expansion Program. Conducted a top-down Water Audit and assisted in the development of a wholesale water contract for theCity of Gainesville, Texas. Assisted the City of Terrell, Texas in conducting a top-down water audit and developing a StandardizedDeveloper Agreement related to Water and Wastewater Infrastructure.Assisted the City of Denton, Texas in developing and Indirect Cost Allocation Model for general fund andinternal service fund nabilitywww.newgenstrategies.net9
SOAH Dkt No. 473-17-4964 WSPUG Dkt No. 46662Cities RFI 4-1 AttachmentPage 2 of 33Chris D. EkrutDirector, Environmental Practice Assisted the City of Gunter, Texas in performing due-diligence and establishing a developer proposed TaxIncrement Reinvestment Zone. Assisted Nueces County Water Control & Improvement District No. 4 in reviewing and negotiating a water ratemethodology with the City of Corpus Christi. Assisted the Pittsburgh Water and Sewer Authority in reviewing the appropriateness of subsidy paymentsmade to Pennsylvania America Water CompanyAssisted the Navajo Tribal Utilities Authority in updating and amending its water and wastewater service tariffterms and conditionsAssisted the City of Killeen in evaluating the feasibility of establishing and setting a user fee for aTransportation UtilityAssisted the City of New Braunfels in conducting a benchmarking study of the fees charged by its Planning andCommunity Development Department Utility Business Plans: City of Blue Mound, Texas City of Gainesville, Texas Town of Prosper, TexasOperations and Management Reviews: Lower Colorado River Authority's Water andWastewater Service Unit Brownsville Public Utilities BoardSystem Valuations: City of Blue Mound, Texas Town of Lakeside, Texas Mustang Special Utility District City of Oak Point, TexasCity of Southmayd, Texas City of Tyler, TexasWholesale and/or Retail Water, Reclaimed Water, Wastewater, and Drainage Cost of Service and Rate DesignStudies:itTown of Addison, Texas City of Colleyville, Texas City of Aledo, Texas * Double Diamond Utilities Co. * City of Amarillo, Texas City of Farmersville, Texas * City of Bellaire, Texas City of Bonham, Texas * City of Garland, Texas * City of Burkburnett, Texas * City of Glenn Heights, Texas * City of Burnet, Texas *I" City of Graham, Texas Canyon Regional Water Authority * City of Cedar Park, Texas City of Killeen, Texas * City of Cisco, Texas Town of Lakeside, Texas * City of Coleman, Texas City of Lancaster, Texas *Thoughtful Decision Making for Uncertain TimesCity of Gainesville, Texas *City of Grapevine, Texas *210
SOAH Dkt. No 473-17-4964.WSPUC Dkt. No 46662Cities RFI 4-1 AttachmentPage 3 of 33Chris D. EkrutDirector, Environmental Practice City of Portland, TexasS'City of League City, Texas City of Lewisville, Texas *'City of Lubbock, Texasi Town of Prosper, Texas * City of Mansfield, Texas * City of McGregor, Texas * City of Mexia, TexasPossum Kingdom Water Supply CorporationCity of Roanoke, TexasCity of Seagoville, Texas * City of Terrell, Texas *Trophy Club Municipal Utility District No. 1 *City of Murphy, TexasNavajo Tribal Utility Authority City of Tyler, Texas *Nueces County Water Control and ImprovementDistrict No. 3 City of Waco, Texas * City of Weatherford, Texas *aCity of Willow Park, Texas * City of Paris, Texas *"Pittsburgh Water and Sewer Authority* Engaged for multiple studiesExpert Witness Testimony Development and/or Litigation SupportaSOAH Docket Nos. 582-02-1652, 582-03-1820, 582-03-1821, & 582-03-1824 — Applications of McKinney,Melissa, and Anna and North Collin Water Supply Corporation to Amend CCN Nos. 10194, 11482, 12976,11035 and Sewer CCN No. 20898 and of the City of Melissa to Obtain a
flooding, preliminary design and cost estimates for water supply projects and transmission systems, and economic analyses. His experience also includes serving as leader of the consultant team for the Region C Regional Water Planning Group and his specific water planning work for the North Te
