Citizens Make The Call in El Paso, TX

Fort Bliss Subsidy

Water bills to El Paso Citizens will subsidize Fort Bliss

The Department of Defense (DOD) was reluctant to expand Fort Bliss because it would "likely require purchase or development of new potable water sources, to include, perhaps desalination technology."¹ On May 27, 2004 the El Paso Water Utilities Public Service Board (PSB) promised DOD that PSB would build the world's largest inland desalination plant on Fort Bliss property to allow Fort Bliss to keep its' existing wells in reserve as a strategic buffer.²

The Base Realignment and Closure Commission announced plans to expand Fort Bliss on May 13, 2005. Later that same day, the PSB General Manager signed an agreement to build the desalination plant on Fort Bliss property.³ The agreement guaranteed PSB nothing in return. Fort Bliss retained the right to cancel the agreement at will. PSB agreed to execute, accept and be bound by an easement and "to such terms and conditions which the Department of the Army may deem to be reasonable and proper to protect its interest."

On August 18, 2009,PSB announced plans to execute an easement, water supply contract ⁴ and water purchase contract⁵ with Fort Bliss. If Fort Bliss does not pay its' fair share of costs, El Paso Citizens will be forced to make up the difference. The easement, water supply contract and water purchase contract could cost El Paso citizens as much as $930 Million.

Cost to El Paso Citizens:

PSB pays $61 Million to construct the desalination plant. Fort Bliss pays nothing. Costs paid by Fort Bliss will be reimbursed by the PSB with interest.⁶
PSB pays Fort Bliss $20.5 Million for easement ($409,500 a year for 50 years.)⁶
PSB operates the plant and pays all costs.⁷
PSB has been selling water to Fort Bliss at rates ranging from $1.45 to $4.87 per CCF.⁸ PSB must reduce the rate to a flat $.64 per CCF, a discount of between $.81 per CCF ($1.45 - .$64) and $4.23 per CCF ($4.87-$.64).
If Fort Bliss elects to keep its' existing wells in reserve as a strategic buffer, PSB will be forced to supply 4.4 Million CCF a year (9MGD)⁷ to Fort Bliss at a total discount of between $178 Million and $930 Million over the life of the contract. PSB will raise the price of water to El Paso Citizens to make up the difference.
PSB is required to take corrective action if water production lowers the water table on Fort Bliss. An increase in water production will lower the water table and PSB may have to deepen or drill new wells for the exclusive use of Fort Bliss.
PSB must purchase feed stock water from Fort Bliss in order to effectively operate the plant.⁵ Feed stock cannot be readily obtained from any other source.⁵ However, Fort Bliss may terminate feed stock sales to PSB with 30 day notice.⁵ Such termination would render the plant useless. However, PSB would be obligated to pay Fort Bliss $409,500 a year for the easement and sell potable water to Fort Bliss at $.64 per CCF for up to 50 years.
PSB cannot meet the demands of their own citizens for fifty years. According to their web site, “Current supplies can meet expected future demands until sometime between 2015 and 2020.”⁹ PSB is in no position to guarantee water to Fort Bliss when they are facing a water shortage for their own citizens. PSB has a fiduciary duty to Bond Holders and El Paso Citizens, not to Fort Bliss.

Benefits to Fort Bliss

PSB commits to supply Fort Bliss's total water demand for 50 Years.
Fort Bliss pays no construction costs. Any costs paid by Fort Bliss will be reimbursed with interest.
Fort Bliss pays no operating costs.
Fort Bliss receives $20.5 Million for easement ($409,000 a year for 50 years.)
Fort Bliss purchases water at a discount of between $.81 per CCF and $4.23 per CCF. Total savings could amount to $930 Million.
PSB is required to take corrective action if water production lowers water table on Fort Bliss.
Fort Bliss must sell feed stock water to PSB for 30 days. In return, Fort Bliss is guaranteed a supply of potable water to meet their demands for 50 years.

PSB President Archuleta denies that Fort Bliss will receive a discount as a result of these agreements. He claims that "The Utility charges a wholesale rate to Fort Bliss based on industry-accepted cost of service priciples"⁷ and "the current rate to Fort Bliss is $.71 per CCF."⁷ However, copies of June 2009 invoices to Fort Bliss show billing rates between $1.45 and $4.87 per CCF.⁸

PSB will bury the cost of the discount in water bills to unsuspecting El Paso Citizens. I wish to propose a solution that will settle this matter once and for all. The El Paso City Council can ask the Texas Commission on Environmental Quality (TCEQ) to give their opinion¹⁰ as to whether the Easement, Water Supply Contract and Water Purchase Contract are fair to El Paso Citizens.

President Archuleta says "This is a tremendous partnership with the Army, and everybody across the State and Nation acknowledges that."⁷TCEQ will also acknowledge that if it is true. Please call your council representative to encourage a fairness opinion from TCEQ. We must stop the lies that emanate from the PSB.¹¹

1.Impact study http://www.brac.gov/ShowPubDoc.aspx?Doc_st=USA-0221v4_Criteria_8_Army_SSEI.pdf&Path_st=BRAC\RPT&DocID_in=185 page 2

2.Team Bliss BRAC Commission Familiarization Briefing 27 May 05, Slide 51.
http://www.brac.gov/ShowPubDoc.aspx?Doc_st=Fort_Bliss_Installation_Familiarization_Briefing
_(27_May_04).pdf&Path_st=BRAC\OTHER&DocID_in=9864

3.Immediate Right-of-Entry No. DACA63-9-05-0535 DATED May 11, 2005 https://www.citizensmakethecall.com/restricted/tinymce/jscripts/tiny_mce/plugins/filemanager/files/Note10.pdf

4.PSB Water Supply Contract to Fort Bliss http://www.epwu.org/public_info/agenda/attachments/Item6082609.pdf

5.PSB Water Purchase Contract from Fort Bliss Contract http://www.epwu.org/public_info/agenda/attachments/Item7082609.pdf

6.Memorandum of Agreement between PSB and Fort Bliss https://www.citizensmakethecall.com/restricted/tinymce/jscripts/tiny_mce/plugins/filemanager/files/Note2.pdf

7.Letter from PSB July 24, 2009 https://www.citizensmakethecall.com/restricted/tinymce/jscripts/tiny_mce/plugins/filemanager/files/ResponsetoJ.JanacekemailfromE.Archuleta7-24-09.pdf

8.Invoices from PSB to Fort Bliss in July 1009. https://www.citizensmakethecall.com/restricted/tinymce/jscripts/tiny_mce/plugins/filemanager/files/ORRresponseToJanacekInvoicesFtBlissWtrService.pdf

9.PSB website http://www.epwu.org/water/water_resources.html

10.Sec. 13.042 Texas WATER CODE "ASSISTANCE BY COMMISSION. On request, the commission may advise and assist municipalities and affected counties in connection with questions and proceedings arising under this chapter. This assistance may include aid to municipalities or an affected county in connection with matters pending before the commission, the courts, the governing body of any municipality, or the commissioners court of an affected county, including making members of the staff available to them as witnesses and otherwise providing evidence."http://tlo2.tlc.state.tx.us/statutes/docs/WA/content/htm/wa.002.00.000013.00.htm#13.004.00

11.Documentation https://www.citizensmakethecall.com/the_lies.htm