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New ECC board stymied
Board splits in GBC takeover discussion
By Pearl Cantrell
Monitor Staff Writer
GUN BARREL CITY–The new East Cedar Creek Fresh Water Supply
District board was evenly split over Gun Barrel City’s proposal to take
over the district and set up its own water department.
However, board members reached a consensus during Wednesday’s meeting,
agreeing to schedule a work session with the interested parties to
examine issues and field ideas involved in such a project.
Newly elected ECC board members opposed a motion to retain special legal
counsel Mark Zeppa, but also opposed a motion to formally voice
opposition to actions being taken by Gun Barrel City.
Two holdover members voted for the two motions, with board president
David Burch casting a third vote. Jack Stegall was not present,
reportedly due to illness.
The 3-3 vote meant no action was taken by the board on these two issues.
May 23, the Gun Barrel City Council approved five measures empowering
the city manager to initiate procedures and make application to the
Texas Commission on Environmental Quality for taking over water and
wastewater services for the city.
June 13, the city formally established a water and wastewater
department, which to date is unmanned and unbudgeted.
These actions prompted the response at the ECC board’s meeting.
A standing-room-only crowd overflowed into the hallway at the district’s
Hammer Road office.
Zeppa was described as a “scorch and burn” litigator by new director Ken
Landers, and as a “very competent expert” by board secretary Jim Boyles,
who has worked with Zeppa in the past at another water utility.
“Is it your intention to initiate litigation?” Boyles asked general
manager Bill Goheen, who strongly recommended the retention of Zeppa.
“Absolutely not,” Goheen answered. “However, it would be negligent to
wait and not take some action to prepare a plan or have a consultant on
board that could give timely answers.”
“Once you get attorneys involved, it’s too late to talk,” Landers
countered.
Board treasurer Carol Meyer pointed out the board has employed experts
in the past without jumping to the conclusion that litigation was the
goal.
“We’re better off getting a best and worst case scenario, so we’ll know
the facts,” Landers said. “We need a feasibility study, not expose
ourselves to the risk of litigation.”
New director Karen Jentzen said nothing has been presented to her to
suggest a Gun Barrel City takeover would be a bad thing for ratepayers,
“so why would I oppose it?”
“There is no evidence that a takeover would be positive for rate
payers,” Meyer countered.
“As a steward of the district’s and your assets, it is my job to prevent
any takeover of the district’s and your assets,” Boyles said.
At least two directors found Boyles’ comments highly offensive.
Not voting for the motion doesn’t mean “we’re giving assets away,”
Landers answered.
According to the latest audit completed for years 2004-05 by accounting
firm Johnson and Johnson, the district’s gross assets amount to nearly
$30 million, including $27.5 million in property, plant and equipment.
“I will not take actions on issues I am uneducated on,” new director
Mike Grant said, adding he had many questions, but the agenda did not
afford him an opportunity to ask them at this time.
Meyer voted to oppose GBC until such time “facts and figures could be
presented that showed no risk associated with it.”
During public comments, representatives from outlaying property owners
associations, as well as other cities within the district, addressed the
board.
The majority were opposed to the takeover and pointed out both Enchanted
Oaks and Payne Springs city councils had approved formal resolutions
opposing the GBC takeover.
All speakers recommended the board retain special legal counsel to deal
with these issues, and to host a forum where Gun Barrel City’s
complaints can be examined and solutions proposed.
GBC Economic Development Corporation board president Dennis R. Wood
explained the takeover was prompted in part by the needfor the
installation of an aerobic sewer system for a development project on
Main Street.
“I’d say it’s broken,” Wood said, referring to comments made by those
outside GBC who say, “if it ain’t broke, don’t fix it.”
Wood also pointed out other developments (Lowe’s, Wal-Mart) in the city
were not asked to pay any impact fee, while the Landers’ project has
been asked for a $200,000 contribution.
“When you consider that the project will likely pay $70,000 a year for
sewer service, that amounts to double billing,” he said.
The GBC EDC has invested $1 million in the project, so the citizens of
Gun Barrel have a high stake in this matter, Wood said.
“If the entire project were ready to go on-line today, (something
projected to occur within five years) your existing (wastewater)
capacity would be able to handle it, without a single upgrade,” Wood
charged.
“The TCEQ obligates you to provide for growth in this community,” he
said. “We’re also talking about quality of life issues here that affects
everyone who lives around the lake – issues related to jobs, and
economics.”
Enchanted Oaks Mayor Don Warner told the board that after reviewing the
facts, Enchanted Oaks is satisfied with the district’s current and past
performance, and has gone on record opposing GBC’s actions.
Warner added he feels much of the animosity around these issues comes
from a clash of personalities in the past, and that an open meeting
should be called.
“Basically, there are just two issues to look at – the immediate needs
of the Landers Development, and whether $200,000 is a fair impact fee,
and the long-term solutions for accommodating growth in the area, Warner
outlined.
“We’re happy to do that, Burch said. “GBC is the hostile party here.”
“If GBC can be satisfied, it will be great for all involved,” Warner
answered.
Boyles agreed that the time is right to hold open discussions.
“I want it to be fair to the rate payers and fair to the developers,”
Boyles said. “It may be as simple as ‘user pays’.”
“Communication is key,” Timber Bay POA representative Carol Halliday
interjected. “We’ve heard nothing. And we’re being asked: Are we going
to have water next week? Are we being sold off? We’re very, very
concerned.”
Payne Springs Mayor Michael McDonald complemented Gun Barrel City for
calling a meeting early in the week with the parties involved and
stressed that in litigation, nobody wins.
“Hurt feelings and anxieties can be addressed as a group before going
down the road to litigation. But do get legal advice. The best
litigators all say ‘don’t litigate’,” he said.
Gun Barrel City councilman Marty Goss also referred to a previous
meeting of some of the parties involved.
“It’s possible to head this off,” Goss said. “Stipulate all board
members attend any future (joint) meetings, so we can know one another’s
mind, good or bad.”
He also said the actions taken by GBC were suggested to them by West
Cedar Creek Municipal Utility District as a solution to supplying water
to the islands along the causeway bridge towards Seven Points.
“You (the district) look good on paper, but do you look good in the
town? The answer is ‘No.’ Gun Barrel City has the impression of poor
management, but now you have a new board,” Goss said.
In a related item, the board directed Landers Development representative
Curtis Webster to meet with the financial committee and general manager
to renegotiate the $200,000 in light of Landers’ offer of $50,000, and
additional computations not before considered that may lower that
figure.
The meeting will also deliver a set expense value for extending the
district’s waste water CCN (certificate of convenience and necessity) to
include Landers’ property.
These were the two of eight conditions outlined in the board’s previous
letter to the developer under the direction of then-president Giles
Farmer.
“We agree with six of the eight conditions (in the letter),” Webster
said.
KISD trustees change policies
New superintendent asks, gets direct
control over employment
By Barbara Gartman
Monitor Staff Writer
KEMP–The new man at the helm, in his first official meeting Tuesday,
steered the Kemp Independent School District toward a new future.
“I want to be able to hire – not just ‘recommend’ hiring (of
personnel),” Superintendent Dr. Peter Running said.
Running explained the current system of waiting to bring prospective
employees before the board for official hiring often gave time for good
teachers to accept positions with other districts.
Trustees agreed with Running and gave the new superintendent authority
to hire personnel for current positions – but not to create positions.
On the other side of the coin, trustees agreed to allow Running to
accept resignations and make terminations, as long as no policy disputes
were involved.
Several other requests from Running also met with approval.
EISD gets Optional Flex Year
Monitor Staff Reports
EUSTACE–The Eustace school district’s request to participate in the
Optional Flexible Year Program has been approved for 2006-07, Eustace
school district trustees heard Tuesday.
It means a reduction in the number of school days, to give teachers time
to work more closely with students at risk of failing, or who have not
performed successfully on their TAKS (Texas Assessment of Knowledge and
Skills) test.
Those in grades six through 12 will have eight less instructional days,
while grades three through five will have six “flex days” built into the
school year, Superintendent Coy Holcombe explained.
Board trustees decided to terminate the district’s contract with Robby
Roberson Photography of Athens, after a review of the problems
encountered this year with school pictures, and replace him with Randy
Phillips Photography of Tyler for the 2006-07 school year.
Holcombe presented a proposal for the lease-purchase of a color copier
from Xerox. The lease cost is $674 monthly.
“This (copier) could allow us to print our own programs for sports,
various brochures, and possibly yearbooks for the primary and middle
school campuses, who have expressed an interest in doing so,” Holcombe
said.
The copier would be networked throughout the district, and could reduce
the cost of contracted printing services, he added. The proposal passed
unanimously.
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