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Wednesday, September 21, 2011

County loses bid for 290 water line to two out-of-state companies


County officials had expressed hope that by acquiring the system they could ensure a stable water supply and avoid high water rates for thousands of north Hays County customers


LCRA's board of directors
today voted unanimously to divest a large chunk of LCRA water utility properties – including the Hwy 290 water line that serves north Hays County subdivisions and Dripping Srings – to one of two out-of-state companies.

Pct. 4 Commissioner Ray Whisenant led the county's
failed efforts to acquire the Hwy 290 water line


According to the resolution passed by the board, LCRA will consider final offers by the Canadian firm, Corix Infrastructure, Inc., and the California Water Group, at its next meeting on Oct. 19.

The board's decision virtually knocks Hays County out of the competition to acquire the 290 water line infrastructure and distribution.

County officials had expressed hope that by acquiring the system they could ensure a stable water supply and avoid high water rates for thousands of north Hays County customers that could result under private ownership. The county's efforts were led by Pct. 4 Commissioner Ray Whisenant. Whisenant was not immediately available to comment when the RoundUp contacted his office.

In the run up to today's news, the county had invested more than $60,000 in due diligence research and other costs associated with its bid to the LCRA.

The RoundUp received a copy of the board's resolution passed today from LCRA's public information office.

It states that LCRA agreed to the following sales:

- Sandy Creek water System to the City of Leander
- Lakeway Regional Raw Water system to Lakeway Barge Participants
- Glenlake Water System to the City of Austin
- Whitewater Springs Water System to the Whitewater Springs Water Supply Corporation

It sets a deadline of Oct. 14 for the sale of the Liberty Hill Wastewater System.

The resolution excludes from divestiture/sale: Rollingwood Wastewater System, Tahitian Village Wastewater System, Westlake Hills Wastewater System; and raw water and wastewater system serving Windmill Ranch.

The Hwy 290 water line is a part of the LCRA's West Travis Regional Water System, one of the systems identified by the board in its resolution as "not previously named . . . or not already progressing toward divestiture," which are to be sold to either Corix or the California Water Group.

20 comments:

Anonymous said...

Liberty Hill was already in process of bidding on its WTP before LCRA announced it was selling its w/ww properties, and so Liberty Hill is given until Oct. 14 to finalize the sale.

Whitewater Springs is a subdivsion located halfway between Marble Falls and Burnet.

West Lake Hills threatened to condemn their WTP if LCRA didn't let them buy it, and so LCRA sold it to them. Probably the same story with Rollingwood WTP.

Anonymous said...

LCRA is considering a permanent ban on new houseboats on Lake Travis. Ones already there can stay there.

Sounds like a good idea. You know where sewage from the homes is going, don't you? And LCRA says the floating homes are a hazard when they break loose during strong storms.

Charles O'Dell said...

As the drought wears on and the outlook for rain remains grim through the fall and winter, import water marketers are already gearing up again.

Lack of serious water planning at the legislature and local efforts to stall our Groundwater Conservation District will only have negative results on our local economy.

Without water in our streams to recharge our groundwater and refill our lakes, the cycle of drought impact will only get worse for those living here now.

Talk about closing the door---where is the water for new development---at any cost?

As water conservation sets in, the cost of water per 1,000 will go higher in order to pay for the infrastructure.

It's a perverse consequences of conservation that happened in California.

At least we have stopped the wasteful "leakage" of most of our springs. This will make one of our HTGCD directors happy.

JL said...

I want a rebate! This was a fool's errand by Conley, Cobb and Whisenant from the start. The county keeps throwing money around like there's no tomorrow. Where's the control??

Sal A'mander said...

Yea, but the "Friends of Blue Hole" are going to honor Will Conley at their celebration next month. Does that mean Will is my friend, and that I'll contribute? I think not!

Water Boarded said...

I'm glad Hays County lost the bid.

The more water shortage we must deal with and the more anger is generated by greedy private water companies, the quicker we will cut to the chase and deal with our nonsensical overdevelopment and their local government errand boys.

Nothing like a good 'ol asskicking to make people come up with a better way to fight.

Kathi Thomas said...

Water should never be privitized, IMHO. Since this is a basic need of every person and other living thing, it is morally wrong to make a profit out of it. One can only hope that these private companies won't be rapacious, but given the shortages of water, and the way the so many in Texas think there should be no regulation on water in any form or shape, I wouldn't count on it. Belterra and others on the water system need to prepare themselves for even higher water bills.

Kathi Thomas said...

First LCRA extends the "emergency line for only existing homes," then they open it up to anyone who wants it, then they say "oh, we're not making any money" once Belterra is here with all its dense development and pollution that comes with it, NOW they sell it to out of state profiteers. Sheesh, they have a monopoly, why not just raise the rates to the point that they can afford to keep it? It would still be less than a for-profit company will charge.
I actually feel sorry for folks on this surface water line!
I wonder if the agreement LCRA has with the County about paying the money for water conservation education will transfer with the agreement?

Anonymous said...

I'm with you, Sal. I won't attend any activity that "honors" Will Conley.

Ms. Blue said...

This reminds me of the line in Steinbeck's poem "To A Mouse - The best laid schemes o' mice an' men."

As for The Friends of Blue Hole, honoring and worshiping those who give the most money to a project sends exactly the worst signal to our community and especially to our youth. Everybody who donated $50 towards the development of the Blue Hole Regional Park and everybody who pitched in with volunteerism should be honored alongside the high rollers.

Just because Mr. Conley has free access to the public till is no reason to elevate him above anyone else. Please remember that everything he contributed came from thousands of Hays County tax payers, whether or not they cared to contribute.

I had considered attending the celebration. Now I fear that I cannot support this perverse production, rather like a local version of The Price is Right.

Rocky B. said...

Dear Ms. Blue,

I gave $100.00 to the Blue Hole project because I wanted to and so local citizens can enjoy a hike and bike trail and some other natural attractions that fit Wimberley's environment.

I did not give the money to get attention or accolades (of course $100.00 would never get that anyway).

So as just another local citizen, let me say I honor all you taxpayers and additional small amount contributors and gratefully thank you for your support.

Yet I also think the local politicians and the Blue Hole committee who made it happen deserve a high five for the project.

And I understand the naysayers. But I think the benefit of the new Blue Hole project far outweighs any politics involved and is great for our kids and the local citizens (especially during the week when the tourists aren't here).

Anonymous said...

Amen, Ms. Blue!

The Beatles said...

"I got blisters on me fingers."

Bubba S. said...

Corix Infrastructure, Inc. (Canada), and the California Water Group are both from socialist countries that are trying to undermine our Texas free markets way of doing things.

I think Rick Perry should do an intervention prayer to stop this legal immigration takeover of our Right to Work state business nirvana.

I say the Hays County commissioners have a God given right to vastly overpay for these trashy water properties.

We need to bring in more good conservative Christians into north Hays County to offset the socialists in Wimberley.

God Bless Texas and that sweetie Rick Perry.

Matrix said...

I heard the city of Buda is joining Kyle and other cities to fight a big increase in water rates by the Monarch water company. Something like 60% increase. They are a private company. They serve places around Buda and Kyle that are available for commercial development and the cities are afraid high water rates will discourage the development.

Maybe private ownership of water utilities is a good idea since their poor service/high rates seem to blunt development plans and homes sales like in Woodcreek.

This water thingy is getting weirder all the time.

Anonymous said...

"Monarch" as in pay the king's ransom.

Screw these private water gougers and screw more development.

The answer is to have residential water ONLY be non-profit and let commercial water be for-profit.

Then we will see natural "managed growth."

Anonymous said...

I certainly would hope that Rollingwood is excluded. Those folks ended up with a $14 million bill for a system that was supposed to only cost $6 million and ended up suing their law firm (Armbrust & Brown). According to the complaint, Armbrust & Brown was representing both sides of the contract - the city of Rollingwood and the LCRA and that wasn't disclosed to city officials (representation was through counsel). So there is NO reason for that system to be subject to any sale.

Folks, you get taxed to pay for it but then you don't own it. The government makes a buck by selling it and you get screwed again through the high rates - into perpetuity. The LCRA was involved in imposing deed restrictions that prohibited residential wells as a condition of expanding lines in many places. That's not good - but at least there was a governmental entity providing the service. Now LCRA has capitalized on that by selling these systems to private for-profit entities who will benefit from monopolies that can't otherwise obtain under the law.

Anonymous said...

For all you "non-profit" fans - "non-profit" just means that it isn't profitable for the MEMBERS. There are plenty of VENDORS out there that make a killing to the detriment of the MEMBERS.

Consider all the so-called "non-profit" HOAs in Hays county. How many homeowners are forced under threat of foreclosure on their home to pay into these things so that the HOA can then overpay for worthless managers and unscrupulous HOA management companies?

"Non-profit" is not necessarily a solution without additional constraints. "Non-profit" just means that YOU are prohibited from making a buck off of it. Is your goal really to establish a system that you have to pay into that still allows everyone else to make a buck off of you and laugh all the way to the bank?

He's All Wet said...

Last Anonymous is mis-informationing the difference between a public water utility and a homeowner's association.

On the surface his points have some merit but in practice is nonsense.

Do your own research - especially if you live in a subdivision with Aqua Texas or Monarch as your predatory water company.

Anonymous said...

@"He's all Wet" September 24, 2011 3:29 PM said:

Last Anonymous is mis-informationing the difference between a public water utility and a homeowner's association.

Really? For which part is there misinformation? By the way, there are several different types of "public water utilities" including water supply companies (WSC) and investor owned utilities (IOU).

On the surface his points have some merit but in practice is nonsense.

Again, really? Which part? Don't you agree that the members of these "nonprofit" HOAs get nothing while the money taken from them under threat of foreclosure is spent on vendors and "managers"? A number of the HOAs in the area come to mind.

The point was that the term "non-profit" was the term used by several posters as their objective goal for water utilities. The counterpoint was that "non-profit" means only that the involuntary MEMBERS were not allowed to receive money from the non-profit but that the for-profit VENDORS could extract money from the members with impunity. Thus "non-profit" is not a sufficient constraint to solve the problem that the poster was trying to solve.

Do your own research - especially if you live in a subdivision with Aqua Texas or Monarch as your predatory water company.

These are both examples of for-profit, investor owned utilities - and you will never have any negotiating power or leverage unless you have the ability to "opt out" for example by installing your own residential well. You can thank the FORMER group of county commissioners (some of which are here this term) for adopting "subdivision rules" that enable IOUs to prey upon homeowners in all the new subdivisions. The county isn't going to provide the water but it is sure going to open up your back pocket to these investor owned utilities. Oh, and by the way, the "non-profit" HOAs will be used to force you to have to purchase water from these utilities (vendors). Again, the term "non-profit" just means that you as a member can't receive money - it does not mean that you will be protected from financially rapacious vendors.