Ballot could include pump stations, larger pipes, new equipment for improved safety

With recent prolonged drought conditions and a high risk of area wildfires, Water District No. 10, which serves the city of West Lake Hills along with neighborhoods Rob Roy and Camelot, is considering a nearly $53 million bond for the November ballot.

The proposed bond, which would likely be split into three components, could include about 50 miles of new pipes, two pumping stations and an updated communication system for the district.

"What the [WD10] board is looking at is an increase in water for system-wide fire flows," WD10 President Clif Drummond said. "Our attention has been focused on increasing the amount of water available in fire demand situations where they were the lowest. These are typically at the highest elevations in the Westbank [area] and those areas where it is not possible to loop distribution, [which increases water pressure]."

Drummond said the board must make a decision by Aug. 18 to include the bond on the November ballot.

Increasing fire flow

The city of West Lake Hills passed an ordinance in September 2012 requiring all fire hydrants in the city to be capable of delivering 2,000 gallons of water per minute. However, Drummond said there are areas in the district that still provide just 500–700 gallons per minute. The water flow at those locations needs to be increased, according to Michael Lacey, Emergency Services District No. 9 fire marshal.

Lacey said he thinks the bond improvements would help protect existing structures and future growth in the district.

"Having 2,000 gpm of flow from fire hydrants changes [the fire department's] ability to utilize equipment while fighting a fire," he said. "The large [main fire hoses] we use require 1,000 gpm alone. If we don't have adequate water we are limited in our tactical abilities, and that puts the community at risk."

WD10 initially studied the cost of increasing all hydrants in the district to either 1,500 gpm or 2,000 gpm. Drummond said the cost between the two options was negligible and the district moved forward with a cost estimate of making every hydrant in the district capable of 2,000 gpm.

After the first study of more than 30 identified projects came back with a price tag of about $89 million, Drummond said the WD10 board evaluated the must-haves of those projects.

"It isn't a small number," Drummond said. "Each pumping station is about $9 million, and we need another $9 million for the Bee Caves Road pipe alone; that is more than $27 million right there."

Drummond said the proposed bond would add new 8-inch-wide where there are currently 6-inch-wide pipes, but the new pipes would act in addition to those pipes, not replace the existing.

"It would effectively give us [increased] piping where we had only 6 inches before," he said.

Cost to residents

Drummond said if the potential November bond passes it could eventually cost homeowners in the district 15 to 17 cents per $100 of property valuation in addition to the 2.9 cent maintenance tax already in place. That could result in an additional bill of about $1,300 a year for the average homeowner, he said.

"We have had four bonds in the history of the district and tend to pay them back very quickly in order to keep interest payments low," Drummond said. "The last bond payment we made was in 2010."

The tax increase would not jump to 15 to 17 cents per $100 of property valuation initially, but would be a step increase with each phase of the project, he said.

For the first phase of the bond project, which could begin as early as spring 2015, residents might see a tax increase of 8 to 9 cents per $100 of property valuation beginning in 2016.

"This is a big decision for taxpayers," Drummond said. "I know [the city of] West Lake Hills and [ESD No. 9] are pleased with this plan. It is something that needs to be done."

West Lake Hills Mayor Dave Claunch said he thinks there are many areas in the district that need to be upgraded and praised WD10 for taking the steps to do so.

"[West Lake Hills residents] have been getting underpriced water service for years," Claunch said. "Our community needs a more robust [water] infrastructure, and I believe most residents are willing to pay for a higher level of fire protection for their homes and loved ones."

Backup plans

Drummond said he is concerned the bond might not pass in the November elections because of some negative feelings about other bonds in the area.

"There are almost $1.5 billion in bonds for transportation and community colleges planned," he said. "There is a lot of pushback against those, and I'm afraid people will have a tainted view of bonds in general for this election. If the bond fails we will have to choose another way to implement these improvements. The reasons for doing [the improvements] don't go away if the bond fails."

Lacey said if the bond should fail the area could be more prone to a large fire spreading—something that could be avoided with improved infrastructure.

"I would hate to see a situation where we identify a problem and not move forward [by passing a bond]," Lacey said.

Drummond said the WD10 board has discussed several options if the bond fails. The district could present a new bond in May with a similar proposal or decide to issue a revenue bond to finance the improvements.

A revenue bond, which is a bond that pledges the revenue from the district as payment for the bond, would raise water rates in place of raising tax rates, Drummond said. He said he estimates the increase to water bills for district residents to be about $150 per month before monthly water usage is calculated.

"A big difference with a revenue bond is that is not voted on by the public," Drummond said. "It is something the board alone votes on.

"These are hard choices. The risk of fire in this area is very real. Homes ignite for a host of reasons. We need better fire prevention in the areas in which we live."