“Thank you for your post. You will be pleased to know that the BCRUA project team is continuously monitoring the economic climate and local growth trends. In light of the current situation, the BCRUA board has decided to delay project construction by six months to give the volatile market time to settle. We appreciate your interest and assure you that we will continue to act responsibly and in the best interests of the community.”

Well, 6 months is indeed good news, but we can not slowdown or stop. There is still the lingering problem of Obama’s recovery/stimulus/bailout/municipal welfare/Government boondoggle plan that could put money directly into the TECQ coffers. If this happens, “Gird Your Loins” as our new Vice President says. The complexion of Lake Travis could change quite a bit and the BCRUA will be the least of our problems. As with politics and business, follow the money and you will find 2 things – reasons and rats.

We need to continue to put pressure on them, and I will continue hunting rats.

I know a little something about bonds and how they work as I sat on the bond oversight board for 4 years of the second largest bond city in the country. Leander has done some good things to get their junk bond status turned around, albeit mostly PR, but it is important to note that the BCRUA master agreement does not have joint and/or several liability, or bond insurance. If one city defaults, the others are not liable or responsible. Because Leander has agreed to take a majority of the cost for this project (47%) will their residents take on the expense if Cedar Park or Round Rock defaults? Leander’s 23, 000 residents are already overburdened with over a half a billion dollars in bonds. Leander current bond packages represent over $22,000 per resident – not a good position to be in and one that will certainly need to be taken into consideration when they submit their bond package for due diligence.

The current economic downturn has caused the bond market to come to a standstill with most bond traders only purchasing secured bonds – i.e school bonds (Permanent School Fund (PSF) bonds). We can thank the sub-prime mortgage crisis for causing the monoline insurers (companies that guarantee the timely repayment of bond principal and interest when an issuer defaults) to incur heavy losses. This caused the Institutional investors — the biggest buyers of municipal bonds — to sell off the bonds they own, and aren’t interested in buying new bond issues. If there continues to be a lack of market liquidity and uncertainty I anticipate any new bond projects not being killed outright, but delayed and cost a lot more than anticipated. We will also see unprecedented scrutiny put on municipalities by the monoline insurers before they guarantee anything new.

With a general slowdown of growth in the tri-cities and the fact that this project is still in the planning stages it will be difficult for the BCRUA to put together a bond package that will appeal to the market – especially if Leander does not hit its growth projections. Bond financing will be one of the BCRUA’s toughest challenges in the coming years, especially when there are other less expensive alternatives that do not put significant risk on their existing residents in a down economy.

More on bond issues in coming posts.

In addition to citizens there were other organizations, cities, and counties that are also requesting a contested case hearing include: Matagorda and Wharton Counties, The Village of Volente, the Marina Association of Lake Travis, and the Volente Neighborhood Association.  In addition to these groups the City of Austin has submitted their opposition to the pipe, and more interestingly one of the three legs of the BCRUA – Cedar Park has requested a case hearing.

Austin’s opposition to the pipeline is straightforward – it threatens their water rights.  However, Cedar Park is another story.  In my opinion, I believe there are several reasons for their opposition.  First, they do not want to put a significant tax burden on their residents in the current economic crisis and without rate increases and a bond package Cedar Park cannot afford the project.  Second, this issue is becoming more and more politically poisonous as their constituents and others educate themselves about this project and realize that Leander is the only real winner in this deal. Leander benefits more than the others from this ill-conceived project through usage, water recharging/reuse, and access.  Finally, the cost estimates for this project were done in 2005 by a non-objective engineering firm HDR.  It only makes sense that a $415M tax burden should not go forward without these questions being answered and the homework being done.

In addition to the above, we have learned that Round Rock has agreed to provide Cedar Park with any water they may need “so the tri-cities can delay incurring the debt for Phase 1 for another year…this will require a Master Contract amendment with TWDB…”

As the opposition to the project gains critical mass, our elected officials Donna Howard and Kirk Watson have also been moved to request public hearings on the TECQ permit. Their actions have made these hearings mandatory (kudos & thank you!).

We still have a lot of work to do, and I still believe the only way they are going to shove this through is legislatively – warts and all.  It is good to know that we are not the only ones who see the callousness and arrogance of the BCRUA.  As we start seeing cracks, we need to turn-up the pressure.

Leander, Round Rock & Cedar Park’s Ill-Conceived Plan to Drain Lake Travis

Under the shell of the Brushy Creek Regional Utility Authority (BCRUA), In what seems to be yet another political boondoggle for our political heroes, the cities of Leander, Round Rock, and Cedar Park have quietly hatched a plan to put a $330M taxpayer funded pipe into Lake Travis to pull nearly 140 MILLION gallons of water out of the lake – per day. If this much water were pulled from Lady Bird Lake it would be drained in less than 2 weeks!

Now, I understand this is Texas – and water rights are a presiding political issue – but the manner and arrogance of how the tri-cities are conducting business is troubling. Here are just a few examples:

1. Existing residents will foot the bill for real estate developers. To pay for this project BCRUA will more than likely need to establish a bond package that will either be paid through taxes or higher water rates. Unfortunately, they conveniently leave out the fact that the water will be used for future development, not the existing resident capacity.

2. The LCRA is irresponsible with our water. In addition to the tri-cities, The City of Austin has their own pipe dreams too. Their pipe will pull over 300 MILLION gallons per day making the total amount of water pulled from the lake nearly 500 Million per day. Neither Austin nor the BCRUA has any plan for recharging or replacing the water they take out of the lake, and Cedar Park already has a pipe. Just last week Lake Travis dropped 3 feet naturally – what will happen when we have another drought or when the LCRA releases water downstream to service the rice farmers in the Colorado Basin?

3. Politics over the environment. Current plans call for a massive industrial structure on the lakeshore in Volente. Their plan is to drill into the lakebed to lay their pipes, and then lay a 96-inch pipe that’s route would destroy several square miles of the habitat for at least 2 endangered species.

The impact this project will have on the lake is massive and its effects will be devastating for generations to one of the most beautiful treasures in Texas. The way in which the BCRUA is running roughshod to get this project pushed though is astonishing and smells of lobbyist influence and backroom deals that have unfortunately become the mainstay in politics today. - CRW, Volente

It is unfortunate that the residents of the tri-cities do not know that their elected officials have their sites on destroying one of Texas’ most valuable and beautiful resources (Ok, call me biased), and especially Leander’s wanton willingness to bear a majority of the tax burden for its residents. Rife with conflicts of interest, back-door deals, and a general contempt for the residents of Volente, we must make sure everyone knows about their plans as I suspect none of our elected officials or the BCRUA board have seen the lake recently. To put it simply, and using an old military term that I am certain only Capt. Fuller would understand, they should change their name from BRUCA to B.O.H.I.C.A. as it is more descriptive of their ethos.

Call to action: Our best weapon is educating the media and the residents of the tri-cities of this plan. In the current economic slowdown these cities should NOT be putting additional tax burdens on their residents to support future real estate development. That said, keep your arguments concise and focused on core value issues like increased taxes, damage to the environment, and political greed. Do not get pedantic about facts and figures as they will make their eyes gloss over.

Water rights in Texas are a political hotbed issue, and I suspect (based on what she told me) that Donna Howard is not going to do anything to help us unless we get critical mass, and Kirk Watson has his sights past his state office so his attention span is about zero. Pam Waggoner, Donna Howard’s opponent, has stated that she will oppose the Pipe and because she lives in and around our community (Steiner Ranch) – I am going to give her the benefit of the doubt. In the interest of full disclosure, I am supporting Pam for the house race, but I will support any candidate or politician that opposes this project!

Volente requires new electical lines to be installed underground. PEC and their contactors are contacting residents to obtain additional easments to place the poles and wires.

You do have rights! You do NOT have to sign the draft easment!  These guys will use thug tactics in order to compel you to sign agreement for easments.  The Volente City Council has been outstanding in making sure we know our rights, and have even voluenteered to come out to provide additional support.  If you are contacted by the PEC, please contact someone on the City Council or at the Village Office at 512-250-2075.

I will be speaking to both the Mayor and our Council to better understand our rights, and what to do if/when we are contacted.  Once I find out, I will make sure we get the word out.

The good people at DELTA gave us some good advice on next steps.  Basically, we have 30 days to write letters to ask for a public meeting. Unfortunately, we cannot e-mail TCEQ.  You must write individual letters and mail them to:

Chief Clerk, Texas Commission on Environmental Quality
P.O. Box 13087
Mail Code 105
Austin, Texas 78711

There is also a petition DELTA (and some of our neighbors) have been passing around.  They need to be sent back to Reps Howard and Bolton and Senator Watson. Please email me if you would like a copy of the petition to distribute.  You will need to send the signed petitions to 15781 Booth Circle, Volente, TX 78641.

Third:  Representatives Howard and Bolton and Senator Watson must contest this permit and require a contested case hearing.  Please e-mail them at donna.howard@house.state.tx.us, valinda.bolton@house.state.tx.us, kirk.watson@senate.state.tx.us. Focus on their hot buttons: conservation, conjunctive use of water and the environment!  None of this is being considered in this permit.

Bottom-line, to date, our political heroes have done nothing to stop this so it is important to focus your efforts on their key concerns.  Unfortunately, these are professional politicians so don’t get into the minutia or be too technical when writing your letters, as they will not read it. Make your arguments pithy and focus on the top issues (other than getting reelected) they have on their agendas.  Finally, if you haven’t done so already, make a donation to their PACs or campaigns because after all that is really the best way to get their attention.

In this blog we will try to keep-up on the happenings in our area, especially as it pertains to the ill-conceived land grab and the massive pipe the cities of Leander, Round Rock, and Cedar Park are shoving down our throats. In addition to facts, the editorial portions are my own opinion and may or may not necessiarly represent the opinions of any resident or official within Volente.

Please feel free to make suggestions or comments through the blog. However, I will not publish caustic comments about individuals or rumors that can cause harm to any business or the residents in our area.

Thank you for visiting!