President’s Perspective

Dear Brushy Bend Park Customers of the BC MUD Water Utility,

The purpose of this post is to update you on recent developments concerning ongoing negotiations between the BC MUD BOD and Aqua Texas regarding the sale of BBP water distribution system assets. Section I below summarizes developments since the MUD generated and distributed an RFP (request for proposal) on December 18, 2014 . On October 13th officers on the BBP BOD were informed that the BC MUD had signed a purchase agreement that would transfer the assets of the BBP system to Aqua Texas. Section II outlines the major points leading up to the MUD’s decision to sell the BBP system assets. Section III lists relevant points affecting BBP customers that were provided in the 10/8 meeting by Mike Petter, general manager of the BC MUD. We will receive more details when the purchase agreement is finalized and are planning to invite a representative from Aqua Texas to present at our annual meeting in January 2016. If you have questions related to the MUD’s actions please contact Mike Petter directly at the number on your water bill.

  1. Update on BBP Customer Discussions with BC MUD General Manager
  • Dec 11th  Attended BC MUD BOD mtg. – BOD updated on Design (100% complete), Funding (22 yr/3.2%), impact to BBP customer base rate (+$55 – $70/mo)
  • Dec 18th Mtg. w/MUD GM – Met to discuss issues re: project justification, fire protection, funding, and schedule. We were informed the MUD BOD published RFP for providers to acquire BBP water system.
  • Jan 22nd Attended monthly mtg. w/BC MUD BOD  —  Present as citizen and customer on BBP water plan concerns
  • Feb 18th Notified that one proposal was submitted to BC MUD to purchase BBP system by Aqua Texas
  • Feb 26th Contacted MUD. Notified there were no new updates in discussions w/Aqua Texas
  • April 07th Notified by BC MUD that Aqua was putting together a revised proposal
  • June 10th Notified by BC MUD that Aqua was updating several points in their proposal
  • Sept 29th Notified by BC MUD that they were in negotiations with Aqua and anticipated purchase agreement would be presented to MUD Board in October
  • Oct 2nd Received email from BBP resident containing portions of system purchase terms documented in MUD BOD minutes
  • Oct 8th Mtg. with MUD GM concerning pending agreement with Aqua. GM summarized major points of agreement and stated Board would vote on agreement that evening in MUD BOD mtg.
  • Oct 13th Notified by BC MUD that BOD approved purchase agreement and document was being sent to Aqua for signatures
  1. Summary of BC MUD GM Discussions with BBP representatives on Thursday 10/8  ( Overview of Discussions w/BBP Residents)
  • Acknowledged that justification for project specifying the complete replacement of BBP system was not provided
  • Accepted BBP residents’ position that new estimated $102 base rate ($37 + 65) was too high. Stated the BOD had no other options to spread the cost other than allocating to BBP property owners (approx. 204 owners)
  • BCMUD GM verified preliminary purchase terms summarized in 10/2 email from E. Dameron were reasonably accurate
  • GM commented MUD accepted write-off of BBP system cost plus new system design, survey work etc (total estimated cost $800K) in place of having a $2.5M note to finance the new system

III Points concerning Aqua Texas terms related to purchase contract (summarized by BC MUD GM)

  • Aqua Texas is part of larger nationwide water supply utility called Aqua Water Company
  • Aqua Texas serves 15,000 connections (155,000 customers) in central Texas (https://www.aquaamerica.com/our-states/texas.aspx )
  • Capital for a new BBP water distribution system would be spread over larger (15,000) connection customer base
  • BC MUD will be the wholesale water provider under a long term contract (est. 40 yrs.)
  • BBP Water rates will likely remain unchanged for next five years (based on 5 yr. rate study cycle recently completed and implemented for central Texas customers by Aqua)
  • Finalization of contract terms and acquisition of BC MUD system assets will take approx. one year.
  • Aqua is controlled under same TCEQ/PUC (Texas Commission on Environmental Quality/Public Utilities Commission) regulations as BC MUD
  • Aqua Texas has a local office in Austin-Round Rock area

For additional reference I have included the summary of 2014 activities by the HOA water committee presented in our annual POA meeting on January 20th of this year. Your neighbors who served on this committee include Juan Campaneria, Sunil Mahale, Jeff Fluegel, Steve Sorenson and Paul Lake.

Best regards,

Paul Lake

One Response to President’s Perspective

  1. Pingback: Update – Recent developments – ongoing negotiations between the BC MUD BOD and Aqua Texas | Brushy Bend Park HOA News

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