By Karen Gleason
The 830 Times
City council members peppered City Manager Shawna Burkhart with questions Tuesday
following her presentation on the city’s recent work on its “urgent and important” water
and wastewater projects and funding options.
Burkhart made her presentation at the beginning of a special meeting of the Del Rio City
Council on Tuesday.
After Burkhart finished, Mayor Al Arreola asked council members if they had any
questions, then recognized Councilwoman Carmen Gutierrez.
Councilwoman Carmen Gutierrez questions
“Ms. Burkhart, from what you stated, just a few minutes ago, I do want to clarify that any
funding sources and anything that we have set aside for the (second international) bridge,
is an enterprise fund, and cannot be used on another enterprise fund, such as water and
wastewater. Is that correct?” Gutierrez asked.
Burkhart replied, “It is an enterprise fund, (and) it is determined by city council how
those funds are to be used, but they are normally not intermingled.”
Burkhart added, “The reason I say that is because the city water system and wastewater
system is its own enterprise funds, and we do make transfers to the general fund for just
the cost of administration, to cover my time, Mr. Chavez’s time, finance’s time, HR’s
time, et cetera. There is a transfer there from the utility fund to the general fund, but that
is simply for oversight and administration.”
Arreola asked when the city had approved its last water and sewer rate increase.
“I believe, most recently, two years ago. You adopted one year of utility rates, rather than
five years,” Burkhart replied.
Arreola asked if there were any more questions, and Gutierrez indicated she had another.
“Just also to clarify: What you’re presenting today does not mean that we’re not
necessarily going to, at this point in time, raise water or wastewater rates?” Gutierrez
asked.
Burkhart responded, “No, we are not sitting here tonight ready to make that decision,
because we have not quantified what it’s going to cost to issue debt to address these
(water and wastewater) issues, to see what the interest rate will be for each of these debt
issuances, and so all of that has to play into the rate structure. In addition, maintenance
and operation of a new well will have to be considered as well in that new rate structure.”
Gutierrez added, “As well as revenue sources, grants that you are currently pursuing,
correct?”
“That’s correct,” the city manager replied.
Burkhart told the council that earlier in the day, she was notified the city had received a
grant through NAD Bank (the North American Development Bank) that City Public
Works Director Greg Velazquez had applied for two years ago.
“How much was that?” Gutierrez asked.
“$500,000,” Burkhart said, thanking Velazquez and City Assistant Finance Director
Roxy Soto.
Arreola invited Velazquez, who was in the audience, to the podium to address the
council.
Velazquez noted the city is seeking additional NAD Bank grants, saying he has worked
with Soto and Michael Garcia, the city’s assistant to the city manager and grants writer,
to obtain the funding.
“It’s a $4 million grant?” Gutierrez asked.
“$3 million to $5 million, and that’s for Phase 2 water line replacement,” Velazquez said.
“And that’s 100 percent funded, no match,” Gutierrez said.
Burkhart said, “It is for water line replacements, which are not in this document (her
presentation earlier), which leads me to the next statement:
Please note that the reason
we’re not making decisions on utility rates is simply because things are still moving.”
She noted that two years ago, Velazquez applied for SWIFT funds through the Texas
Water Development Board and has had three projects approved.
Burkhart said one of the projects eligible for funding is the city’s new water well, and the
two other projects deal with the replacement of water lines as well as the first phase of
filter testing at the city’s water treatment plant.
After making a few more comments about the filtration system, Burkhart said, “So the
reason I bring this before you tonight is because it is all a moving target at this moment.
There is no way that we can bring before you a utility rate with so many moving
variables.”
The city manager said she hopes to resolve those “moving variables” within the next two
months and to submit that data to the city’s utility rate analyst.
Once that new data is entered, she said, “We can generate an accurate utility rate.”
Councilman Jesus Lopez Jr. questions
Councilman Jesus Lopez Jr. asked questions about water line replacements, and Velazquez spent some time addressing those questions, discussing the city’s ongoing
work to replace those lines.
Mayor Pro-tem Jim DeReus questions
Mayor Pro-tem Jim DeReus spoke next.
He said, “I just need to comment on one of my favorite topics, which is transfers from the
enterprise funds. So last year, after Ms. Burkhart came on board, we did not transfer
money from the enterprise funds to the general fund; well, above the administrative costs, which you mentioned.
“However, six years previously, we basically used the enterprise funds as a slush fund, right? It was kids in a candy store. Oh, we need more money? Transfer it over. And I
know it was going on well before that because someone who was on city council 10, 15 years ago, before I even got elected, was talking about it.
“So, I’m not saying you (Burkhart) are wrong, I’m saying in your experience here we did
not do that, but we have transferred millions of dollars, and every year, I’ve asked questions about it, and, you know, I’m glad that we’re just not willy-nilly doing it anymore, but we have to realize that our rates on the utilities have been affected by
subsidizing the general fund (with enterprise fund transfers).
That’s why the rates are what they are,” DeReus finished.
Burkhart also spoke to the council about funding opportunities she is seeking for the city’s wastewater projects.
Councilman J.P. Sanchez questions
Councilman J.P. Sanchez also said he had a few questions.
“On the East Springs, the East Springs wall reconstruction. How are we coming along
with the design of that? Has that gone out? Are we talking to engineers about that? That, I understand, by redoing that East Springs wall, will allow us to be able to utilize our East
Springs more? Correct?” Sanchez asked.
“That is correct, sir,” Velazquez replied, adding that the city will be making an award to an engineering firm for the design of the East Springs wall reconstruction. He added once
the award is made, it will take about six months for the design to be completed, then another 18 months for construction.
“It is an urgent need. It is something that needs to be addressed immediately, so we’re doing this as fast as we can,” Velazquez said.
Sanchez: “With that said, we had a pump that was down on our West Springs. Where are we at; I understand it was out to be repaired? Has it been installed yet? What’s that status?”
Velazquez replied, “The status is we have gone for a new pump and that’s about three weeks out.”
“So do you feel that pump will be ready to go. . .” Sanchez said.
“It should be the end of the summer,” Velazquez replied.
“From what I understand, we can meet our city’s water needs with one of the two springs, the West or the East, but since the East is going to be 18 months out, we’re going to be looking at our West Springs to be accommodating our city needs, is that correct?” Sanchez asked.
“That’s correct,” Velazquez replied.
“So we need that pump,” Sanchez said.
“That is correct too, and I appreciate council, our administration and finance for rushing
that order, approving that packet, in order for us to make that order,” Velazquez said.
“So we do foresee this West Spring pump to be operable by the summer?” Sanchez
asked.
“That is correct,” Velazquez replied.
Burkhart said she will bring the five-year water and wastewater engineering services contract to the council during its first meeting in March. She said the city has received 15 RFQs for the services and now must review them.
At the second meeting in March, she said, the city will issue the work order for the engineering firm to start work on the East Springs.
“You’ve already allotted money for the engineering portion that we found in savings through our current debt, so you’ve already addressed the engineering portion of the East Springs,” Burkhart said.
Velazquez told the council he and his staff have met with a representative of Texas Rep. Eddie Morales’ office, who has asked to see “a detailed outline of our needs, including
water and wastewater” and will be sending that to Morales’ office.
“That is to find us grant money; no loans, but grant money, for any of those projects that are out there,” Velazquez said.
Sanchez complimented Velazquez, saying, “Let’s rock and roll.”
Gutierrez then asked another question.
“When you were talking about these different phases, these phases that you all have been
working on, in the recent past and present, are they part of the water master study?” she asked.
Velazquez replied, “The first study that I’m aware of was in 1998. That was done by
LAN Engineers, and that addressed Val Verde Park Estates, Hamilton and Grissom storage tanks and the water lines. Then in 2009, we had the study for water and
wastewater and we had a leak study done by JPS and Tetra Tech engineers. The 2009
study is what we’re basically working off of.”
Gutierrez also asked, “You talked about some of these phases that are going to be coming into play in the near future. I would highly suggest, for transparency and for communicating our needs and what we’re working towards, to put it on our website. You identified the different phases and what’s a priority, so that our citizens will also be aware.”
Burkhart said by the end of March, the city will have an updated water master plan.
“Why is that important? What we heard from every single entity that we worked with in Austin, was that if you don’t have your studies done, your master plan done, and your
engineering done, you’re not considered ‘shovel-ready,’ so we will be pursuing shovel-ready projects because only when those are shovel-ready, by their terminology, are we
eligible for grants and loans and so please keep that in mind. I know master plans are not fun. Studies are not fun. . . But when it comes to funding agencies, they look at those
documents,” Burkhart said.
The writer can be reached at delriomagnoliafan@gmail.com .
