LCRA water line construction facilitated helter-skelter development that put humans and their property at great risk. LCRA water lines led unsuspecting home owners into high risk wildfire traps and generally unsustainable suburban sprawl
Those who cannot remember the past
are condemned to repeat it.
are condemned to repeat it.
~ George Santayana
Drought approaches
worst in history as lakes
are 39% full and dropping
one foot a week
Note: LCRA's 15-member board of directors will once again consider the sale of LCRA's remaining water utility assets at its Wednesday Sept. 21 board meeting. The board postponed announcing a sale at its August meeting to a Canadian firm, saying more review was needed. Hays County is making a bid for LCRA's Hwy 290 (North Hays County/Dripping Springs) water line but the prospects reportedly still are not looking good for the county. The item is No. 13 on the board's agenda: "Authorize the general manager or her designee to negotiate and execute agreements for the sale of LCRA’s water and wastewater utility assets . . . Further declare that the LCRA water and wastewater utilities are no longer necessary or convenient or of beneficial use to the business of LCRA . . . "
Send your comments and news tips to roundup.editor@gmail.com, to Charles O'Dell at codell@austin.rr.com or click on the "comments" at the bottom of the story
NEWS COMMENTARY
Send your comments and news tips to roundup.editor@gmail.com, to Charles O'Dell at codell@austin.rr.com or click on the "comments" at the bottom of the story
NEWS COMMENTARY
By Charles O'Dell
Contributing Editor
The current drought is just one of Mother Nature’s harsh reminders of who is really in charge on our planet. This reminder can be made especially difficult by those placed in charge of our public assets and who use them without responsibility or honor. Such is the story of former Lower Colorado River Authority (LCRA) board of directors and former General Manager, Joe Beal, now living in Bastrop, Texas and receiving a handsome LCRA pension.Beal orchestrated and directed the building of unsustainable water infrastructure for short-term financial benefit of special interests. This unsustainable infrastructure came at great long-term cost to taxpayers and LCRA customers. LCRA is now divesting itself of those $300 million water infrastructure assets that are still being paid for by LCRA utility customers.
LCRA began as a conservation and reclamation district created by the Texas Legislature in 1934. It's mission statement: To provide reliable, low-cost utility and public services in partnership with our customers and communities and to use our leadership and environmental authority to ensure the protection and constructive use of the area's natural resources.
Deeds without Honor
In just seven years as General Manager (2000 – 2007), Joe Beal and his Perry appointed board of directors facilitated huge profits for large land owners, developers, law firms, engineering firms, consultants, banks, insurance, title and building material companies, and expanded tax revenues for local government entities.
At the same time, Beal and his board helped to destroy the very wildlife habitat and other natural resources LCRA was charged to protect, increased public infrastructure costs (roads, schools, EMS, etc), and created a large debt that required increasing its customer utility costs by double and triple digits.
LCRA water line construction facilitated helter-skelter development that put humans and their property at great risk. LCRA water lines led unsuspecting home owners into high risk wildfire traps and generally unsustainable suburban sprawl. The current drought, wildfires and crush of dry water wells (24/7 bulk water truck deliveries are running 1 – 2 weeks behind) emphasize just how unsustainable this development is.
In 2005, HaysCAN engaged in an extensive review and analysis of LCRA records and determined its water/wastewater business plan was seriously flawed and that LCRA was failing in its mission to serve Central Texas. We reported our findings to the LCRA board on November 16, 2005. On August 22, 2007, Joseph J. Beal announced that he was ending his career as general manager of the Lower Colorado River Authority.
Fox in the Hen House
“The opportunity to serve as their (LCRA) leader has been the highlight of my career.”Beal joined LCRA in 1995 to lead its Water Services division, which provides, "water resources management, flood protection, drought management, agricultural irrigation and water and wastewater utility services.” Beal became LCRA's eighth general manager on Jan. 20, 2000, and seven years later announced that he would leave LCRA in mid-January 2008.~ Joe Beal, LCRA General Manager, August 22, 2007
Before joining LCRA, Beal was senior vice president at Espey Huston & Associates, a large engineering and environmental consulting firm in Austin. Espey Huston & Associates are the folks who offered New Braunfels city officials expanded flood plain boundaries along the Guadalupe River for an additional $2,000. A city councilman owned property in the flood plain and wanted to develop it despite repeated floods that destroyed many homes.
As if to rub salt in Beal’s gaping public wound, LCRA Board Chair Ray Wilkerson (now deceased) turned the Beal $300 million debacle and other Beal miscues into “great accomplishments.” “Joe Beal has served LCRA and the people of Texas with distinction,” said Wilkerson.
Wilkerson lived in Austin and was president of Ray Wilkerson Companies, Inc., a commercial real estate development company. Wilkerson served on the board of Stewart Title of Austin, Inc. LCRA Chair Wilkerson also served on the boards of several financial institutions. Clearly, Wilkerson had an interest in LCRA facilitating new development.
Those who lost their homes in the recent wildfires, and those who have seen priceless natural infrastructure destroyed, their water quality degraded and sharply higher utility bills wouldn’t agree with Wilkerson’s claim of great accomplishments.
A Brief History of Accountability vs. Accomplishments
Accomplishment spin – LCRA and the San Antonio Water System launched a multi-year, $42 million study of a unique, collaborative water-sharing agreement that could allow both regions to enjoy expanded water resources.
Accountability reality – This expensive and hair brain Beal project ended in wasted dollars and a major law suit against LCRA.
- May 7, 2009 - LCRA population decision prompts legal claim by San Antonio Water System Board of TrusteesAccomplishment spin – Grew water utility operations to serve rapidly growing needs and applied stringent water quality protections to new developments in western Travis and northern Hays counties.
- Aug. 24, 2009 - LCRA disappointed in SAWS’ decision to file meritless lawsuit
Accountability reality – A flawed business plan forced LCRA to divest its $300 million water/wastewater infrastructure after destroying wildlife habitat and degrading water quality.
- Feb. 18, 2011- LCRA formally announces sale of water/wastewater systems to financial marketThe convergence of money, politics, greed and drought in Central Texas has clearly exposed the need for accountability at LCRA. Droughts come and go, but money, politics and greed are with us always, making accountability essential.
Those who cannot remember the past are condemned to repeat it.
15 comments:
O'Dell you are a first rate illuminator. I celebrate your articles more and more each time I read them. Bad decisions by our public policy makers must be exposed. Few do it like you do in our piss poor media area.
There is a herd mentality by elected and appointed officials to enrich themselves at the expense of the tax payers and our environment. Crony capitalists like Rick Perry and his minions are perfect examples. And we have some stellar examples at the local level.
Yes, this is an old story but it is getting worse with each election cycle. In the beginning our country was governed by honorable men. I recall what Gen. MacArthur once said that old soldiers don't die they just fade away. I am sad to say that is exactly what has happened to our country's founding principles and the once honorable public service sector.
This article by O'Dell exemplifies the hidden truth behind the big Republican Party lie.
The big lie is how these phony public servants trash government but then use governmemt to pilfer our tax dollars to enrich their crony elite business friends and corporate masters.
Or they talk about hating big government but then use its legislative and regulatory power to impose human rights repression on women, minorities, and the disenfranchised.
Worse, these phomy patriots talk about how our soldiers are heros fighting for our freedoms but then they make sure our soldiers come back to a horrible economy that they keep lying about its causes and its solutions.
Moreover, our soldiers are dying for our so-called freedoms and yet the right wing politicians make it more and more difficult for citizens to vote democratically by targeting groups that don't fit into their white, gun owning, gated community, mindless consumer, right wing mindset.
Bottom line is the Republican Party has become a heartless destroyer of democratic values, compassionate economic policies, and sound environmental safequards.
The pathetic part of these truths is that they are proud of themselves and think they have won.
Won what? The end of a great country that used to believe everyone deserved a chance to make it - and sometimes needed a little help?
You are right. You have won - a very empty victory.
Btw Charles, Great article.
O'Dell:
Sounds like you support the right of landowners besides yourself to have individual wells.
"O'Dell:Sounds like you support the right of landowners besides yourself to have individual wells."
This LCRA report has nothing to do with exempt water wells. Our de facto Rule of Capture (despite having a local GDC) and lack of official restraint has already started us down the road of destroying many existing individual wells of landowners, a process accelerated by the current drought.
This LCRA report is about those with public authority and responsibility recklessly using a quasi governmental monopoly to create financial opportunity for special interests at great risk to unsuspecting home buyers, incurring public funded developer subsidies, destruction of natural environment and degradation of groundwater quality.
A little understood reality is that Dripping Springs controls an ETJ encompassing about 20% of Hays County and is selling off that ETJ to developers of high density subdivisions that could not be sustained on groundwater without disastrous impact on existing landowner wells.
DS officials pull in $500 for each developer lot and have no associated cost except the $1,000,000 annual personnel cost for running a town of 1,600. City officials are selling off the ETJ to feed City personnel and working hard to create other forms of taxation in the ETJ, such as a bed tax.
For the record, our well downstream from Belterra has not been operational since the water table dropped below the pump we had lowered.
Charles is it really true that Dripping Springs spends $1 Million on personnel? How is that possible? Does that show up specifically in their budget? I have reviewed it numerous times, and I don't see that. They have something like a $1.2 Million dollar budget, but their outlay for personnel doesn't appear no where near a Million dollars. What were you looking at, or where was that information at?
Dr. O'Dell,
I appreciate your normally lucid and applaudible stories; however, your comment on this story regarding Dripping Springs is confusing. You state that their personnel expenditure is $1,000,000a year. That piqued my interest and caused me to research it as you astutely advise us to do.
I went to their website, www.cityofdrippingsprings.com, and found last year's budget (FY 2011). It appears to be a $1,400,000 budget; with sales tax accounting for $900,000+ of their revenue; and $210,000 of ad valorem taxes; and then some sundry revenue streams. The subdivision fees appear to be only $20,000, with Site Development fees appearing to be approximately $40,000. Neither of these figures correspond with your figures of $500 per lot being charged for developers to pay the salaries of city employees. Then, looking further, it appears that the salary line item is $299,000, with about $18,000 in benefits. That appears to be short of the $1,000,000 you assert is being paid to "personnel".
Can you assist with the clarification? I know you are someone who values your integrity; and this is quite shocking that you would make such an allegation without knowing your facts clearly. Perhaps this is someone posing as you? Please help us understand.
Sorry to hear about your well. It will rain again someday.
Mr. Dawson,
You quit too soon in your review of the City budget. You overlooked other listed salaries, taxes, benefits, retirement, and a biggie, professional services such as city attorney, engineer, and numerous inspectors to name a few. The City’s creative accounting is meant to hide the magnitude of personnel expenditures. Direct salary costs are more like $700,000. Add the additional expenditures directly associated with these City personnel and you easily reach $1 million annual expenditure.
You also quit too soon in your review of the City Fee Schedule that has fees for every imaginable item. Specifically, look at item 4.3 for a major preliminary plat (just an interim stage). The filing fee is $500 per plat plus $175 per lot. Then 4.5 lists a filing fee for a final plat of $250 per plat plus $450 per plat. Therefore, every major subdivision lot has a permit cost of $625 per lot when the final plat is approved, not the $500 I reported. This is because the City’s fee schedule was changed in June and I was quoting from an earlier and lower cost fee schedule.
Current development lowed to a trickle in 2008 and lot fee revenue will remain a pittance of those heady days of Belterra, High Point, Stoneledge and Sawyer Ranch to name a few subdivisions.
When development picks up City officials will resume selling off the ETJ.
Finally, notice how the City Council has also raised property taxes to help pay for the central sewer system that is backed by a large public bond debt.
"...$450 per plat" should read per lot.
Dr. O'Dell:
Yes, I looked at their personnel costs as counting their professional services. But didn't add it in. I have lived around here for a while and can't remember the last time a major subdivision came to town. Aren't all of the big ones already paid for largely? I don't know, but I think this time that you may have made a mistake. I will look again, but you didn't mention the amount of money that they didn't make from development; and appear to ignore their ad valorem and sales taxes. It seems that the idea of $1M in salaries don't make sense in a $1.4 budget - I think you're missing something. Sorry to disagree with you doc; but that's what I see.
Bee Cave City Council on Sept. 13, 2011 "created the West Travis County Public Utility Agency with partners Travis County MUD No. 5 and HAYS COUNTY [emphasis added] to serve as a vehicle for Central Texas Utility Development Corp. members to acquire the West Travis County Water and Wastewater System from the Lower Colorado River Authority (Lake Austin View, Sept.
25, 2011)."
Hays County Commissioners Court will decide on October 18 at their 9 a.m. meeting whether to sign on as a member of the West Travis County PUA. Look for that to be a done deal, with Commissioner Ray Whisenant as the Hays County representative to that PUA.
There will be a Special UDC (Utility Development Corp.) Board meeting at 8:30 a.m., Oct. 3, in Bee Cave City Hall, followed by a Special UDC Executive Committee meeting at 10 a.m.
Same meetings at same times will be
held again on October 6.
Bee Cave City Hall is at 4000 Galleria Parkway, Bee Cave, TX.
Mr. Dawson,
Hiding total salaries of highly-paid employees is a common practice. A Wall Street executive, for example, may say that his salary is $500,000. The fact that he gets fistfuls of money for
transportation expense, communications, insurance, etc. are line items buried elsewhere in the budget. Not to mention that the exec may get a $15 million bonus!
Even school superintendents use this ruse. The supt. is shown as getting a certain salary, but elsewhere in the budget there will be line items for payment for other particular duties the supt. may perform -- transportation manager, representative to various Boards, etc. It takes someone willing to wade through a world of
words to find the total salary of almost anyone who is given a high income.
Anonymous -
Except that in this budget - there are too many expenses that are not accounted for if $1M is simply salaries. The premise Dr. O'Dell asserts is wrong because of the mistaken source of the funds alone which was supposedly subdivision fees - but in the same budget the income from that is only $20K, much less than the supposed $1M that was taken in from subdivisions to fund high salaries. A mistake of such simplicity obviously is the source of something else, what other axe does Dr. O'Dell have to grind against Dripping Springs? He mistakenly or on purpose misses the income from ad valorem and sales tax which obviously adds up to a million dollars - he misses the expenditures for insurance, park maintenance, debt to the wastewater plant, etc., etc., etc. And this is supposedly all taken care of out of the leftover $400K? I don't think so. Somehow, it really seems that Dr. O'Dell really got it wrong and for some reason will not admit it. I hope that I am wrong, because I would hate to think that Dr. O'Dell would not be man enough to admit when he might have gotten his facts wrong.
"The premise Dr. O'Dell asserts is wrong because of the mistaken source of the funds alone which was supposedly subdivision fees..."
I make no such assertion about the revenue sources, only that the personnel related expenditures associated with a small town of 1,600 is excessive.
I commented: "DS officials pull in $500 for each developer lot and have no associated cost except the $1,000,000 annual personnel cost for running a town of 1,600. City officials are selling off the ETJ to feed City personnel..."
If you look back over the years, the primary source of revenues shifted from development fees before the market crash, to tax revenues when the Home Depot and HEB came to town.
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