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Wednesday, October 5, 2011

County to try another route to cushion or fend off sale of 290 water line


What the ad doesn't mention is that, like all PUAs, it will have authority to issue bonds (= debt) and will have limited power of eminent domain


Note: In a recent phone interview with Pct. 4 County Commissioner Ray Whisenant (R-Dripping Springs), Mr. Whisenant confirmed to the RoundUp an upcoming County resolution proposing to join the West Travis County PUA. By joining, Whisenant briefly explained, the county can have a say in moderating future increases in water utility rates in northern Hays County.

Last month, the county lost its bid to purchase LCRA's Hwy 290 water pipeline and distribution system that serves an estimated 7,000 customers in north Hays County subdivisions and supplies water to the member-owned Dripping Springs Water Supply Corporation. LCRA's board of directors instead decided to review bids from the Canadian firm, Corix, and the California Water Group. Some members of the Dripping Springs Water Supply board of directors, the county and other interests, are reported to be determined to stop the sale of the 290 water line to the two out-of-state companies.

LCRA, for its part, is not saying whether Corix or California Water Group are the preferred buyers of the system. LCRA's public information office emailed this statement to the RoundUp today: “Since LCRA has not fully negotiated purchase/sale agreements with either party, LCRA has not determined with certainty that the system will go to either bidder.”

Send your comments and news tips to roundup.editor@gmail.com, to Ms. Hopson at hopsonbarbara@yahoo.com, to Commissioner Whisenant at ray.whisenant@co.hays.tx.us or click on the "comments" at the bottom of the story

By Barbara Hopson
Guest Commentary

Without much fanfare or information distribution that I'm aware of, Hays County Commissioners Court is now engaging in an effort to create – along with neighboring entities – a Public Utility Agency (per a public notice in a local newspaper).

Besides Hays County, the City of Bee Cave and the West Travis County MUD #5 have already signed to establish the PUA. Two maps accompany the published notice.

This PUA is a last ditch effort for north Hays County to acquire the West Travis properties of LCRA. The plan is that if, somehow, the UDC ("Coalition") should be successful in its bid to buy the West Travis properties, the UDC would immediately transfer ownership of those properties to a newly-formed West Travis County Public Utility Agency. North Hays County would then retain access to the Lake Travis surface water it covets via the Hwy 290 pipeline.

The published notice mentions that "The PUA will be a non-taxing public entity." What the ad doesn't mention is that, like all PUAs, it will have authority to issue bonds (= debt) and will have limited power of eminent domain.

The ad advises that "Hays County will consider the adoption of the resolution to create the PUA at a meeting of the Hays County Commissioners Court at 9:00 am on October 18, 2011 at Hays County Courthouse . . ."

1 comment:

Anonymous said...

Citizens need to be very watchful at the Commissioners Court meeting on Tuesday, October 18, 9 a.m. That is when the Court will discuss whether Hays County will join a West Travis County Public Utility Agency. One of the important things to note is the boundaries of the PUA. A PUA can issue bonds. Therefore, anyone who is included in the PUA area is potentially on the hook to pay off enormous bond issues. North Hays County would be glad to have the whole of Hays County included in the PUA, but, at least for probably many years, only the north part of the county would benefit from the PUA, while the entire county would be paying off the bonds.

Some parts of Hays County have already provided for their future water needs and don't want to be roped in to paying for water for other areas of the county. San Marcos, Kyle, and Buda, for example, have formed the Hays Caldwell Public Utility Agency and are already paying increased water/wastewater bills to gear up the project.

A PUA also has limited power of eminent domain.