FAQ Friday: What About GBRA's Role?

Dear Neighbors

As you know, FAQ Friday looks at one Frequently Asked Question each week.  This week, the topic is "What About GBRA's Role?"

Check out this video for more on this topic and please feel free to share this link on your social media and elsewhere!: https://vimeo.com/457188821/6e6b2ad417 

so ... What About GBRA's Role?

Some Background. 
We chose this topic for this week's FAQ Friday because for a significant portion of district residents, there is a concern that GBRA has not earned our trust, and we acknowledge that yes indeed, the past administration of GBRA made very few friends. 

At the same time, a key part of what we have been able to accomplish working with the GBRA is that there is a new team in place there. They inherited these dams and the terrible state they were in.

The current leaders at GBRA were not responsible for that negligence, and have a different view than their predecessors did. I believe that they too felt a deep loss when our dam failed — not like ours, but real nonetheless — and that they truly want to see these lakes restored. My personal sense, from meeting with them, by now many times, is that the executive management of GBRA deeply wants this plan to succeed, and for all the right reasons.  They have worked with us hand-in-hand to find creative ways to get this dam fixed, and yes, we will have to pay part of the cost, but we CAN get our dam back.

What all of us need to understand is that the plan we have developed with them over more than a year — the plan going before voters November 3  — that is the only plan there is. 

There is no Plan B. 

We have turned over every stone we could, and looked under lots of others to see if they had any potential to help us.  This is the plan, and GBRA has done much to make it workable for district taxpayers.

Now, all that said, I come from Texas, as almost all of us do, and there is an old saying here:  "Money talks ... you-know-what walks." 

Let's start there:

How much is GBRA contributing?
GBRA’s contributions are substantial. We will receive 100% of the gross hydroelectric revenues from Lake Dunlap over the life of the loan.  For the past ten years, these revenues have averaged $750,000 per year. We expect that with the more modern dam technology, we will be able to produce even more revenue from the hydroelectric operations than has been possible before the dam failed.  In addition, GBRA has contributed the entire cost of the engineering for the dam reconstruction.
 
The total GBRA contribution breaks down like this: GBRA has already spent $3 million to design our dam. They are planning to spend $21 million over the 30 years to pay for their share of construction via the hydro revenues. 
 
Before we put in a dime, GBRA has stepped up and committed well over $24 million for a $35 million project. By any measure, that is the lion's share of the cost.  That project total could actually cost a good deal less, and that is a number that we will know soon, based on the contractors' bids.  
 
In terms of what GBRA has agreed to contribute over the life of the project, the bottom line, this is a great plan for Dunlap’s waterfront owners. 
 
What is the status of our contract with GBRA?  
We have reached agreement on the detailed formal contract with GBRA and it has been passed unanimously by both boards. The agreement is currently being reviewed by the TCEQ and the Attorney General.  In the broad scope, this contract is based on the MOU we reached with GBRA ahead of our last town hall. The formal agreement adds considerable detail to those overarching points in the MOU, and expands the agreement from the single page MOU to a 30-page formal contract that in the big picture, conforms completely to those guiding principles.

What safeguards do we have to ensure the contract is honored over its lifetime?
The contract provides for a multitude of safeguards for the WCID including construction and engineering design oversight and approvals, financing oversight and approvals, limitations on costs to the WCID, limitations on minimum Hydroelectric revenues paid to the WCID, legal restraints and limits on liability of the WCID and many more.

Will the WCID own the dam and operate it or will GBRA still operate and maintain the dam.
We had intensive discussions both internally and with our legal and financial counsel about the benefits and downsides of owning the dam. That was a complex choice and we spent a good deal of time learning as much as we could about the pros and cons before we made a decision.

GBRA will own, operate and maintain the dam as well as finance the construction and repair of the dam, oversee the repairs, and operate the hydroelectric facilities so as to maximize the gross revenues available to the WCID.

The potential for litigation claims arising out of a dam failure or dam operations is one of the reasons why it was decided that it was not prudent for the WCID to acquire ownership of the dam or responsibility for operations.
 
What are the GBRA’s responsibilities in the event of a flood? As an example, what if the gates are not lowered in a timely manner?
The new dam will enable the gates to be operated remotely, which will both reduce the response time significantly, and make this kind of situation much less likely.  It is currently contemplated that the WCID will contract with GBRA to manage all aspects of the dam operations, including flood events.  Anything related to the operation and maintenance of the dam would be their contractual responsibility, but an interlocal agreement would protect the interests of the WCID and its property owners.

Hopefully that gets to most questions people might have on that topic.  If we missed yours, hit reply and send it along!   One last announcement:
 
Boat/Float Parade in Support of Lake Dunlap Oct 3rd!!
The long-term forecast for October 3rd looks to be sunshine and nice weather, so we are hopeful it will stay that way.  As you know. we are planning a fun event in support of the plan to #RestoreLakeDunlap on October 3rd, and we want you to be part of it!  Mush more will come out next week, but we plan to kick off at 10am at Schumann's Beach and will stick to the lower part of the lake for our float.

Plan to bring your kayak, canoe, paddleboard, Jon boat, inner tube, floaty, party boat, or whatever you have for a leisurely cruise/paddle/float with your neighbors down the lake from Schumann's and back!  Much more detail will be coming out ahead of that date, but we already hope to see you there!   (Rain dates are Oct 4 and Oct 10). See you there!

Questions?  Hit reply and send 'em along!

Sincerely,

Larry Johnson