"Stay Connected in The Texas Hill Country" • Current News For Leakey & Surrounding Areas

September 30, 2009

Tom Brown, Naismith Engineering, Inc., presented updated information to the Leakey City Council and citizens at their most recent meeting. Con Mims from Nueces River Authority opened the meeting (see video) requesting citizens, over 15 in attendance, delay their questions until the end of the presentation.

Brown said the NRA has requested grant funding from the Texas Water Development Board for the purchase of the 194 acres (see map) and anticipates 100% funding for the acquisition. The next meeting of the TWDB is scheduled for October 15. Brown said Twin Forks Subdivision was originally included in the project but since the Texas Department of State Health Services did not find a health nuisance for the subdivision it has been deleted from the project.

TWIN FORKS OUT

Mims said if in the future the TDSHS determines there is a public health nuisance within the subdivision it could be included in the current project. Without the nuisance finding Twin Forks was only eligible for a 50% grant with a 50% loan which was not affordable. NRA has protested the finding and requested a new study and review be performed by the TDSHS. The initial Survey and Evaluation conducted on January 15, 2008 by Kassie Rogers and Roy Burton can be viewed at this link(survey). Special notice was given to paragraph 3.

With the exclusion of Twin Forks and the other subdivisions that requested to be dropped from the project the scope of the project has been reduced. The proposed plant will now have a capacity of 400,000 gallons per day versus the original plan of 650,000 per day. The irrigation system will be phased in over time. The projected low-end cost of the project is $12,872,464 and high-end cost is $13,860,747.

PROJECTED COST

The residential portion of the project accounts for approximately 95% of the plant capacity with commercial accounting for the other 5%. The amount of residential usage is eligible for up to 100% grant funding. The commercial must be covered by a loan. Based on these estimates and assuming a 100% grant for residential users, the estimated loan amount for the project would be $750,000.00 or 5.4 to 5.8% of the total project cost.

Brown summarized the proposed timeline with purchasing the land by mid November 2009 and construction completion in June 2013.

FUTURE ISSUES

The City of Leakey would set retail rates for residential and commercial users of the system. They would also collect all bills, sign up new customers and have service contract with the customers. The Texas Water Development Board would require mandatory hook-ups to the system. The NRA has applied to USDA-Rural Development for funding to connect residential customers to the system at no cost to the customer.

POLICY DECISIONS

The City will be faced with several policy decisions that will have a direct impact on retail rates. Should residential and commercial users have different rates? Should rates be different for customers located inside the city limits and those outside the city limits? Should the rates be based on water usage, flat rate or a combination of the two? Will the City require a “tap fee” for new customers?

NEW DEVELOPMENTS

All new subdivision development must be in conformance with the Model Subdivision Rules. The NRA will require new development to pay all costs to extend service to the development and require payment for plant capacity used by the new development in accordance with State law.

ANNEXATION

What will be the City’s policy dealing with potential voluntary annexation? Does the City desire to require voluntary annexation in order to receive water and/or wastewater service? Could voluntary annexation reduce utility rates by being inside the City Limits?

The City Council will hold a meeting on Tuesday October 27, 2009 at 10:00 a.m. at the Leakey City Hall. Brown and Mims will present the information obtained from the October 15^th meeting with the Texas Water Development Board. Citizens are encouraged to attend.

For more videos from The City Council Meeting, Visit Here Now.