The Lower Colorado River Authority (LCRA), Cedar Park, and Round Rock signed a memorandum of understanding June 3 that is intended to lead to the sale of the Brushy Creek Regional Wastewater System to these cities by Dec. 8, 2009.
The Brushy Creek Regional Wastewater System serves five wastewater providers, including the cities of Cedar Park, Round Rock and portions of Austin, Fern Bluff Municipal Utility District (MUD), and Brushy Creek MUD. System capacity is about 24.5 million gallons per day, and the system serves about 200,000 residents. Under an agreement with the customers and an alliance with the Brazos River Authority, LCRA has developed and expanded the regional system and the Brazos River Authority has operated it since 1996.
“While the City of Cedar Park is appreciative of the LCRA for setting up this system and providing a necessary service to our residents, we believe by purchasing the system we can save our ratepayers money. Ultimately, this is in the best interest of our city and our residents,” says Cedar Park Mayor Bob Lemon.
“This is a real benefit for our customers,” Round Rock Mayor Alan McGraw said. “We have worked successfully for decades to keep our utility rates among the lowest in the region, and when this agreement is finalized, it will help ensure our wastewater rates remain competitive in the future.”
“I am proud of the contribution LCRA has made to help develop a regional system that has allowed economic development and environmental benefits for the region,” said Thomas G. Mason, LCRA general manager. “We have worked with the cities to negotiate a fair price for the ratepayers of the Brushy Creek system and the ratepayers of LCRA’s other systems.”
The next step for Round Rock, Cedar Park, and LCRA is negotiation of a purchase agreement by Sept. 1, 2009, and involving the other entities that are served by the system – City of Austin, Brushy Creek MUD, and Fern Bluff MUD – and Brazos River Authority, the system operator.
The memorandum of understanding calls for these cities to pay off all debt related to the system, which is estimated to be about $115 million, and the costs of related financial transactions. The cities also will pay $2.6 million to LCRA at the closing in consideration of the value of the system and project management fees that would have been paid to LCRA under the contract by which LCRA managed the system. LCRA will use these funds to the benefit of its remaining water and wastewater customers.
