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Facing the consequences

Citizens of Wimberley, no matter which side of the WWTP project you were on, please demand from the Mayor and City Council the following three actions:

1. That the design for the Cypress Creek underground crossing is a “Double-Pipe” design with moisture sensors and alarms. Do not accept the Mayor’s statement in a recent City Council meeting that no permit is required.

2. Insist on transparency that ensures that no contract for either project funding or sewage treatment is signed with Aqua Texas prior to an Open Forum discussion being held to review, discuss, and comment on the Proposal. Wimberley has no national security issues. If a City/ Aqua Texas proposal can’t handle open review, then it is probably not in the best interest of Wimberley.

3. Resolving the TWDB funding is the primary issue. Executing any contracts with Aqua Texas can and should wait until we have written confirmation that an underground creek crossing design has been approved and permitted.

If you are interested in the basis of my project cost and schedule concerns and their potential financial impacts due to cancelling the Black Castle contract, read on.

During the past two months, I wrote two Letters to the Editor, “Understanding the Consequences,” and spoke in front of the City Council twice, expressing my concerns at making a major scope change to the WWTP project at this time. In each instance my message was consistent – you do not make a major scope change to a project in the field, unless it has been determined that the project will not work as designed. When last minute scope changes are made, items are missed and/or wrong assumptions made and unintended consequences result. The first consequence has already surfaced. The purple pipe installation to provide water for the new school and Blue Hole Park was eliminated at the last minute from the Mayor’s City/AT Project estimate. I believe that many supporters of the Mayor’s plan were surprised and disappointed by this additional last-minute scope change. The reclaimed water line was still included in the City-Owned option.

As most of you are aware, the vote cancelling the Black Castle contract was passed at the August 28th, special City Council meeting. The Mayor has scheduled a meeting with TWDB on Friday, August 30th to try to salvage the TWDB loan. Why should the TWDB approve the scope change? The original funding approval was based on WWTP production of reclaimed effluent which would then be sold, for “up to $200,000 per year,” to the Park to provide revenue to pay off the loan. With no WWTP, there is no revenue to pay off the loan. Using City general funds is not allowed per the terms of the current TWDB loan agreement.

I have not heard anyone from the Mayor, the City Council, or City/AT option supporters ask the question “What if the TWDB has the same response as the EDA and will not allow TWDB loan funds to be used for the City/AT option?” “Is there a backup funding plan in place if this happens?” These questions should have been asked and answered two months ago.

If the Mayor is not successful in modifying the loan agreement, here are some probable consequences: 1) There are zero project funds to pay for the Black Castle project cancellation costs. Payment will have to come from City funds; 2) Zero project funds to pay the Collection System contractor who will be forced to stop work and file for “breach of contract” unless they are paid from City funds until new funding sources established; 3) a partially completed collection system to nowhere; 4) a schedule that will be delayed for probably a year to clean up the mess, obtain new funding, and prepare and award new contract/s for the collection system; and 5) resolve several lawsuits. If the City goes to Aqua Texas for funding, the cost may also include the CCN and a loan at current interest rates of 5% to 7%. If this occurs, the Mayor’s economic justification is no longer valid. The additional cost over 30 years for just interest alone for the City/AT option will be $2,000,000 to $3,500,000 more than the City-Owned option. This is due to a higher interest rate (2% TWDB loan versus 5% to 7%).

I have been surprised that no one has challenged the Mayor’s cost numbers presented at the various meetings. “To Be Determined (TBD)” is not zero as shown in her justification calculations. The City has already paid Black Castle approximately $350,000; been billed an additional $400,000 not yet paid, and can expect additional expenses from contract cancellation negotiation (for a total of $850,000?). There were also no costs shown for site remediation at Blue Hole Park ($60,000); additional cost for “Double-Pipe” versus “Single-Pipe” crossing under Cypress Creek ($100,000); geological site survey at crossing point ($10,000). In addition, there are unknown costs that will be encountered during Engineering Design and Field Construction; additional legal fees, etc. The known additional costs that are not included in the estimate total approximately $1,000,000.

The Mayor and three Council members campaigned on a platform of fiscal responsibility, No Aqua Texas, No Discharge, Keep CCN, and to provide Level 1 effluent to water the soccer fields and landscaping at Blue Hole Park. Summarizing the consequences to date, where is this in respect to their campaign platform?: 1. A project cost for the City/AT option that will be significantly higher than the City-Owned option; 2. No reclaimed water pipe to Blue Hole and loss of ability to use effluent from Wimberley for city projects; 3. A project schedule that will be delayed from 6 months, best case, to a year or more; 4. The loss of the EDA Grant ($1,000,000) and Way Grant ($1,000,000); 5. Loss of $243,000 Loan Forgiveness funds; 6. Plans for a single pipe (rather than double pipe) carrying raw sewage across Cypress Creek, which presents a great environmental risk for leakage due to the inability to know if the pipe is leaking.

Future potential consequences to be determined in the next couple of months:

1. A project with no funding if the TWBD loan is cancelled or placed in default;

2. Collection contractor off the job; 3. A partially completed collection system; 4. A CCN at risk; and 5. Several lawsuits.

On the subject of a future City-Aqua Texas sewage treatment agreement, we as Wimberley citizens should demand transparency from the City Council. The proposal should be shown to and commented on by the citizens of Wimberley prior to a signed agreement being finalized. It should definitely not include transfer of the CCN to Aqua Texas.

I have provided several concerns that, if I am correct, will leave Wimberley with a high interest debt for the next 30 years and an incomplete sewage collection system for the next couple of years. I hope I am wrong.

William Bowman

Wimberley View

P.O. Box 49
Wimberley, TX 78676
Phone: 512-847-2202
Fax: 512-847-9054