
The LCRA approved the sale of four water and wastewater systems Sept. 21, deciding to retain five and delay the sale of 20 other utilities to two private companies—Corix Infrastructure, a Canadian utility company, and California Water Group.
The Lakeway Raw Water Barge, Sandy Creek, Glenlake and Whitewater Springs utilities are being sold to the Lakeway Barge Participants, the City of Leander, the City of Austin and Whitewater Springs Water Supply Corporation, respectively.
The LCRA announced its intentions to sell the utilities in November 2010, citing a $3 million annual shortfall in maintenance costs. The systems serve about 125,000 people—roughly 30,000 in West Lake Hills, Bee Cave and Rollingwood combined. If sold to a private company, about 70 LCRA employees could be affected.
The 32 water and wastewater systems were built throughout the 1990s and early 2000s in response to the needs of various communities, from Lometa southeast along the Colorado River to the Gulf at Matagorda Bay.
The LCRA board members, however, expressed a desire to relieve themselves of the unprofitable systems to focus providing electric energy generation and on the growing issue of regional water availability.
The cities of West Lake Hills and Rollingwood hope to take ownership of their own systems to avoid a probable increase in rates.
“We were unhappy with the relationship the way it was before because we felt the costs were too high,” said Robert Wood, West Lake Hills city administrator, said after the decision.
Their system serves about a quarter of the city’s homes and most of the establishments along RR 2244.
“Our whole goal was to get out from under the LCRA,” he said.
Leander Urban Design Officer Pix Howell serves as president of the Coalition of Central Texas Utilities Development Corp., which represents the interests of West Lake Hills, Bee Cave, Leander, Lakeway Municipal Utility District and others.
Howell encouraged the board to follow through with the sale but said the coalition’s cumulative offer is a reasonable option for the remaining systems.
“I still feel that’s the case and offer that in case the proposed negotiations somehow sour,” he said. “We still look forward to working with you long-term on service issues and hope that you consider that.”
Rollingwood Mayor Bill Hamilton said while it is not the decision he wanted, it gives the city the opportunity to continue working toward a deal.
“We understand we’re maybe on a different path than the other systems, but we’ll continue to be a part of the coalition to reach the best possible situation for our residents,” he said.
The board is expected to vote on agreements for the other 20 systems at the next meeting, scheduled for Oct. 19 at 3700 Lake Austin Blvd. in Austin.