LETTERS TO THE EDITOR

WWTP - A Closer Review of Potential Consequences

Against the wishes of the majority of Wimberley citizens, at the January 3, 2019 City Council meeting, the council voted (4 to 1) to finalize termination of the Black Castle treatment plant contract. This will result in a settlement payment of $200,000 dollars, in addition to the approximately $345,000 already paid to Black Castle, for a total of $545,000 of wasted dollars.

I have since read several comments on a local website of individuals supporting the cancellation of the contract. What council has refused to acknowledge is, by terminating the Black Castle contract prior to finalizing:

1) the scope change engineering details; 2) resolving environmental questions via an environmental assessment and obtaining permits for placing a pipeline under Cypress Creek; 3) obtaining a wastewater pipeline easement; and 4) confirming TWDB approval of the proposed change of scope, the council has placed the City in a position of having No “back-up plan.” If any of the items listed has a negative outcome, the result will likely be a $3,600,000 sewer collection system with no place to go. Food for thought: If the “hold” had not been placed on Black Castle in late May, per the original construction schedule, the Treatment Plant would now be complete.

Council person, Allison Davis, expressed similar concerns prior to casting a “nay” vote. She also mentioned that payment of the settlement amount would put the General Fund reserve account below the required minimum amount.

This “Engineering and Project Management as you go” process has inherent risks. What can we expect if any of the above items have a less than positive outcome?

1. Lack of completing engineering details: When the termination documents are signed, the City/AT option project cost will officially become more expensive (debt to city) than the City-Owned option. Additional known expenses that will have to be paid from the City’s General Funds include the treatment plant site remediation; tens of thousands of dollars of legal fees; Public Hearing preparation costs, preparation of an “Environmental Assessment,” etc. How much more expensive all this will be will not be determined until the consequences of the following three items are resolved.

2. Environmental Assessment: Authorization to place a pipeline under Cypress Creek has not been approved. The city is being required to prepare an “Environmental Assessment.” The City Website, Parks & Recreation, states “Blue Hole Regional Park has been featured in many publications and in August 2008 was named the second-best swimming hole in Texas by Texas Monthly Magazine. In 2010, Travel Leisure magazine named Blue Hole as one of the top twelve best swimming holes in the nation.” Can you imagine the damage a raw sewage leak will cause to the reputation of and the resultant negative financial impact on Wimberley? Without a permit to cross under Cypress Creek, what is the next option – a raw sewage pipeline all the way around Winter’s Mill Parkway and tie-in to Woodcreek sewer system?

3. Lack of Easement: You may not be aware that at present, the City/AT scope change option does not have an approved easement location; that is, once the pipe goes under the creek, it has no egress point and thus no way to get the sewage to an Aqua Texas connection point. Recently uncovered correspondence reveals that the “free easement” across the Sabino Ranch property, touted several times by the Mayor, has been denied by the Johnson family. Resolution options: 1) find another easement option although none is obvious; 2) make a monetary offer to the Johnson family that may encourage them to reconsider their decision; 3) claim “eminent domain” to secure the easement; and 4) reroute by way of Winter’s Mill Parkway – so much for cost savings.

4. Loss of TWDB Funding: Loss of funding will require the city to obtain funding from a new source at a significantly higher interest rate. This will create major impacts to the

1) 30-year project cost due to the higher interest costs of $4,000,000 or more;

2) schedule completion time will be extended while securing a new funding source; and 3) the City will be in a very dangerous cashflow position. If the new funding source becomes Aqua Texas, this decision becomes a double win for them. Even if TWDB funding is reconfirmed, it will most likely be for less than the total project amount and due to our current Reserves drawdown situation, will require the establishment of a city tax to ensure the ability of Wimberley to make loan payments.

Finalizing the termination of the Black Castle contract prior to resolving the above issues (and more will be uncovered as detailed engineering progresses) is short-sighted at best. What is known at this time?

1. The final project cost, due to their decision and even if every issue has a positive result, will prove to be much more expensive than you, the citizens of Wimberley, have been led to believe.

2. Cost was never the reason. The decision to cancel the Black Castle contract had been made prior to the City elections as is evidenced by the May 6, 2018 email to Sally Trapp, the Mayor, and only the 3 newly elected council members.

3. The only “guaranteed” winner that is obvious at this time will be Aqua Texas.

4. To make the City/ AT option project scope approximately equivalent to the City-Owned option, ie.to include reclaimed water to Blue Hole, would require an additional expenditure of $750,000 per the Mayor’s estimate.

5. Termination of the Black Castle contract does not stop the city plan, but will create a large delay to rebid the project should TWDB not approve the change in scope.

It will take several months to know just how adversely their decision will impact Wimberley’s financial status. If it goes poorly, as in my opinion it will, express your dissatisfaction to the Mayor and applicable council members at the ballot box next May. Also, demand that the next elected Council have an independent audit done reflecting the total extra costs due to the scope change.

William Bowman