EDA grant a no-go if Aqua Texas chosen

The whirlwind and whiplash of the discussion centered on Wimberley’s wastewater treatment plant continues.

In the span of about a week, the city of Wimberley announced the results of the mayor’s three-month long investigation, called for a potential vote on Aqua Texas, postponed the vote, announced plans to schedule a town hall, called a special meeting for another vote and potentially lost a second $1 million grant.

On Friday, August 17, the Economic Development Agency told the city of Wimberley that the $1 million grant would not be available if the city decided to contract with Aqua Texas. However, the grant could still be used if the city does not change course and continues with the city-owned treatment plant.

“The EDA Austin Regional Office in consultation with the EDA Office of Chief Counsel has determined consistent with EDA’s and government-wide regulations (13 C.F.R. Chapter III and 2 C.F.R. Part 200) that the proposed amendment changes the scope of the award so significantly as to make this proposal a different EDA grant request all together,” an email from Jorge Ayala, Regional Director of the EDA Austin Regional Office said. “Thus, EDA is unable to approve the grant amendment request.”

The requested change was to allow the city to use the funds on the collection system as opposed to only on the treatment plant. The denial of that request means the city will not be able to use the $1 million EDA grant on the sewer system project if it decided to go with Aqua Texas as the treatment plant provider.

The mayor did not immediately respond to a request for comment on the impact of the change.

This is now the second $1 million grant that the city of Wimberley can use on the city-owned treatment plant but cannot use on the Aqua Texas option. The Way Family Foundation announced two weeks ago that its grant would only be good for the city-owned system also.

The city of Wimberley has scheduled a potential vote on Thursday, August 23 at a special meeting. The agenda has two items: “Discuss and consider possible action to modify the scope of the Central Wimberley Wastewater Project” and “Discuss and consider possible action to cancel the contract with Black Castle General Contractor.”

However, the grant from the EDA could be reapplied for.

“In summary, going forward there are two viable options for the EDA grant,” the email from the EDA said. “The first option is that the City continue with the currently approved EDA grant scope of completing construction of the City-owned treatment plant in the approved location. The second option is that if the City wishes to pursue the Aqua Texas plan instead, then the City and EDA can mutually agree to terminate the EDA grant for convenience. Simply put, this type of EDA grant termination means that the grantee did their best to carry out the approved grant project, but that unforeseen circumstances made it impossible for the grantee to do so, and EDA was not able to accommodate the grantee’s requested grant changes under the changed circumstances. Under the second option, EDA would terminate its grant funding, but the City would then be free from the current EDA grant requirements. After the termination, the City could subsequently submit a new Application for EDA funding, subject to EDA’s competitive review process. EDA will await notice from Wimberley as to which option you would like to pursue.”