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| 6/10/2009 11:20:00 AM | Email this article • Print this article | City to buy regional wastewater system
KATHRYN EAKENS
Leader Staff
The Lower Colorado River Authority and the cities of Round Rock and Cedar Park signed a memorandum of understanding June 3 intended to lead to the sale of the Brushy Creek Regional Wastewater System to the two municipalities by Dec. 8.
"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."
The Brushy Creek system serves five wastewater providers, including Round Rock, Cedar Park, the Fern Bluff Municipal Utility District, the Brushy Creek MUD and portions of Austin - an estimated 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 to a capacity of approximately 24.5 million gallons per day. The BRA has operated the Brushy Creek system since 1996.
"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 LCRA General Manager Thomas G. Mason. "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 the LCRA is the negotiation of a purchase agreement by Sept. 1, as well as working with the other entities served by the system and system operator BRA.
The memorandum of understanding calls for those cities to pay all debt related to the system, an estimated $115 million, as well as costs related to the financial transaction. The cities will also pay $2.6 million to LCRA at closing for project management fees.
LCRA officials said the river authority will use the funds to the benefit of its remaining water and wastewater customers.
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