The following email was sent by the General Manager of Brushy Creek MUD on November 3, 2015
The purpose of this correspondence is to provide a status report regarding recent developments that may result in a change in your water service provider.
As you may recall, the District’s engineering consultants previously recommended that the District replace the water transmission lines within Brushy Bend Subdivision in order to reduce maintenance costs, reduce water leaks, and to improve water system volumes and pressures for residents in the Subdivision. The Texas Water Development Board (TWDB) approved a $2,425,000 loan to fund the waterline replacement project The cost of the paying the debt service on the TWDB loan would have increased the monthly base rate for Brushy Bend residents to approximately $100. A number of residents raised concerns about the cost and asked the Board to consider alternatives.
As a result of concerns raised by Brushy Bend customers, the Board requested proposals from other utility providers to acquire the Brushy Bend public water system. Aqua Texas, Inc. was the only company that submitted a purchase proposal, and the Board has been in negotiations with Aqua since February 2015. In October, an Asset Purchase Agreement was approved providing for the sale and conveyance of the Brushy Bend public water system assets by the District to Aqua Texas, Inc. The contract has not yet been signed.
The sale and conveyance of the public water system assets to Aqua Texas, Inc. will likely not be completed until next year (2016) assuming both parties sign the contract. At that time, the District would furnish a wholesale water supply to Aqua Texas, so the quality of your water will not change. The retail water rates charged by Aqua to Brushy Bend customers will be identical to the existing rates charged by the District, and will be fixed for a number of years. Any future replacement of the water transmission lines in Brushy Bend would be shared by thousands of Aqua customers, and would not increase customer rates in the same way as would be the case if the District undertakes the project.
In the event the proposed Asset Purchase Agreement is goes forward, we will continue to provide periodic updates, and more information, to Brushy Bend customers.
BCMUD General Manager