Concerns about the city’s sewer project

First I would like to state that I fully support a sewer solution to the Central Wimberley District.

That being said, during my campaign I committed to ensure that the project is both fiscally and environmentally responsible, this was a common theme of all the candidates running for office. In the first few weeks of office, we have been studying the current status of the project, with findings that give me “pause”. The City Council and I have a fiduciary responsibility to the Citizens of Wimberley to make sure we understand all of the ramifications of where we stand, take required actions if needed, and set appropriate expectations as we proceed.

What gives me concern?

I am concerned about the project cost. When the City’s engineers initially estimated the cost, the total was $4.8 million. With the awarding of the contracts for the collection system, the plant and other costs, and before a shovel of dirt was turned, the estimated project cost had escalated to $8 million – 67% over budget.

I am concerned about sufficient funding and where the City will get the money to pay for the project. The current proposed funding sources include:

• A $5.5 million loan from the Texas Water Development Board (TWDB)

• A $1.0 million grant from EDA, a federal agency

• A $1.0 million grant from the Way Foundation, a private contribution

• $0.5 million from the City’s limited operating reserves (savings)

Status:

• We have received the $5.5 million TWDB loan proceeds – but it comes with conditions. And there is concern that the City may not be abiding by all of the requirements.

• The $1 million EDA grant is a reimbursable grant – but there are concerns that the City’s lack of competitive bidding procedures have endangered it.

• The $1 million Way grant agreement was made in August 2017 – but subsequently there were major changes to the scope, cost, and timing of the project. No amendment to the agreement was made and there is concern about its enforceability.

• It is currently estimated the City will need to pay a half million dollars out of its operating funds (savings) for the project that are not covered by other sources.

• If the project goes over budget, or the grants fail to materialize, the City’s savings funds will need to be further depleted. Or on a worst case basis, additional taxing revenue would be needed (i.e. property taxes) – or major cuts to the City’s budgeted spending.

I am concerned about the financial burden placed on the affected property owners.

• Last year, the City was planning to pay for the cost of connections to the properties – which will be several thousands of dollars per property. Because of the other high bids, the City eliminated this assistance. Now this expensive burden will be placed solely on the property owners.

• Keep in mind the project is financed with revenue bonds, meaning the users are responsible for paying for the entire cost of the system – this includes debt repayment and annual operating costs. With a small customer base and high costs, this is a major concern.

• It is imperative that the system have the lowest costs possible to make the mandatory sewer reasonably affordable to its users – as well as minimize the risk to the City’s taxpayers.

• I am concerned that the updated user rate study will indicate even higher rates due to lower volumes and higher operating costs.

I am also concerned about some of the construction project details. This includes whether all TXDOT permits have been obtained and all necessary easements are in place.

Lastly, but certainly not least important – I am concerned that the City’s plan is not sufficient to ensure NO DISCHARGE into the Blanco River.

• The City does have a plan for beneficial reuse of the sewer effluent. However, it is significantly short in both storage capacity and irrigable acreage to ensure that discharge will never occur.

• Blue Hole Park needs to provide a water requirements study to help evaluate the situation and alternatives need to be considered.

• ANY discharge into the River will be harmful to the health and beauty of the river, as well as the quality and safety of our aquifers from which we get our drinking water.

In summary, the question marks are too big and the potential consequences too large to ignore. The City must address each of these concerns as it proceeds down the path to implementing a sewer system that meets the needs of the City that is affordable and not adversely affect water quality. We are expeditiously evaluating these major issues with City staff, City attorneys, other governmental entities and affected parties. Only with a complete and accurate picture can the City Council make the most informed decisions and take appropriate actions.