Note to subscribers: This is the 12th issue of a customer e-newsletter to distribute news about LCRA's process to seek a buyer or buyers for its water and wastewater systems. This e-newsletter will be LCRA's primary method for sharing information with customers during this process.
 
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(512) 473-3334

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November 17, 2011

LCRA negotiating to sell West Travis County Water and Wastewater System

LCRA's Board of Directors Wednesday unanimously authorized General Manager Becky Motal to negotiate the sale of the West Travis County Regional Water and Wastewater System to the Coalition of Central Texas Utilities Development Corporation.

Under the terms approved by the Board, LCRA and the coalition have until Jan. 17 to negotiate the purchase and sale agreements.

"The Board's decision represents an opportunity for local communities to exercise their wishes," said Motal. "This decision is in the best interest of the communities served by the West Travis county systems and LCRA."

Wednesday's decision was an important step in LCRA's efforts to sell its retail water and wastewater systems. The Board decided in November 2010 to seek buyers for the systems, pointing out that a water utility made up of multiple systems does not leverage the strengths of LCRA as a regional supplier of raw water and wholesale power.

"The Board took a very hard look at the coalition and decided it was appropriate to move forward," said LCRA Chair Timothy Timmerman. "LCRA has run a thorough and fair process over the last year to find the best buyers for these systems, and I am confident that when we finish the process we will have accomplished that goal."

LCRA purchased and developed community water systems in the Hill Country and along the Colorado River, mostly in the past 10 to15 years, and has since invested more than $300 million to improve the systems' infrastructure. In many cases, LCRA purchased the systems to help meet the environmental needs and economic development goals of the local communities. However, despite cutting costs and raising rates, these systems do not cover their costs and are subsidized by more than $3 million a year.

In November 2010, the Board set four criteria for choosing buyers:

  • Ability and commitment to provide reliable, quality utility services;
  • Ability to invest capital for needed infrastructure;
  • Commitment to meeting state regulatory requirements; and
  • Willingness to compensate LCRA for its investment.

The Board Wednesday also considered authorizing LCRA to negotiate the sale of 12 systems in the Hill Country and six in LCRA's southeast service area to Corix, an international company that provides service to more than 220 water and wastewater systems that serve 650,000 people in North America.

That motion fell one vote short of the 12 required for approval of sale. Three Board members voted against the motion and one was not present. There will be a specially called Board meeting on Monday to reconsider the motion.

Read the resolution approved Wednesday.

 
 
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