Susie on Desalination Plant

Susie Byrd on title problem

El Paso City Council Representative Susie Byrd comments on PSB failure to secure title to desalination plant.

Letter to Ms. Byrd November 25, 2008
There are no laws in this country to force water customers to give a desalination plant to the U. S. Army in order to stimulate the local economy. A local government can not cut off a poor man's water because he refuses to pay for economic development. You promised to look into my allegations regarding the desalination plant and to ask Ed Archuleta to answer my letter dated March 13, 2008.

Letter to Archuleta March 13, 2008

Dear Mr. Archuleta,

On May 13, 2005, the Base Realignment and Closure Commission announced plans to expand Fort Bliss. Later that day you agreed to spend $70 Million of your customers' money to construct a Desalination Plant on Ft Bliss property (Exhibit A). The agreement does not guaranty that you will receive anything in return. It "is revocable at will by the Department of the Army" and you agreed to "accept and be bound by an easement to be drafted by the Department of the Army and to such terms and conditions which the Department of the Army may deem to be reasonable and proper to protect its interest." The agreement does not mention water rights.

Although the agreement provides that "in no instance shall the term of the agreement exceed two years from the date of its execution," it was extended for a one year period on April 18, 2007 (Exhibit B). You are approaching the end of the one year extension but the details of the easement are "still in negotiation" (Exhibit C). You may receive nothing in return for your $70 Million investment because you have already agreed to accept such terms and conditions that the "DOA may deem to be reasonable and proper to protect its interest."

You find yourself in this position "because of the urgency expressed by the City of El Paso to proceed with construction" (Exhibit A). The agreement and all of the contracts for construction of the plant were approved by the Public Service Board. I am an EPWU customer and a citizen of the City of El Paso. I believe that it is fair to ask what the "urgency" was and why you spent $70 Million of our money with no guaranty of anything in return.

Sincerely,

Jimmy W. Janacek

EMAIL from Ms. Byrd December 1, 2008
The PSB has a right of entry and a memo of understanding with the military for the desal plant. The PSB owns the facility that was paid for using federal grants and capital from ratepayers. The PSB is currently working on a long term lease agreement with the military that would be in keeping with the original memo of understanding

EMAIL to Ms. Byrd December 1, 2008
I know that you are very busy and don't have time to do investigative work but, due to the magnitude and importance of this issue, I hope that you can find an independent third party to review the information that you provided to me and advise you of the following information that I am providing to you:

I believe that the right of entry has expired.
Would you build your house on land that you did not own? Can we expect the PSB to take the same precautions on behalf of citizens that they would take on their own behalf ? Is the PSB serving anyone's cause but their own? They spent $100 Million without a lease or water rights. Over three years have passed, the plant is finished and they are no closer to a lease or water rights than when they started. 
There is good reason to believe that the plant was a gift to the U.S. Army to entice the BRAC commission to stimulate the local economy by sending more troops to Fort Bliss. If water customers are paying to stimulate the economy they should be given credit. Why does the PSB go to great lengths to cover it up? There will never be a lease or a water rights agreement that will allow the City of El Paso to take water from Fort Bliss. The PSB and Archuleta are intentionally delaying this matter until they retire. Please see the following link: Citizens Make The Call in El Paso, TX - Bum Steer Award
 
According to the performance plan that you sent to me, Archuleta was rewarded for "Delay CIP as much as possible without endangering the public or impact commitment to Fort Bliss and economic development." Archuleta receives $508,000 a year because he delays improvement to your constituents so that he can spend the money on Fort Bliss and expensive new homes in the Northeast and West El Paso.  
 
I am grateful for your willingness to discuss this issue. I hope that you will examine the facts and continue the discussion. Where do citizens turn when they are defrauded by their own government? Can they turn to you?

EMAIL to Ms. Byrd December 5, 2008This communication has taken on the familiar thread of double talk followed by silence. If, as you say, the PSB owns the plant they should be able to provide a lease or some legal document to prove their right of ownership. Otherwise we can only assume that the plant is a $100 Million gift to the U. S. Army to entice the BRAC Commission to expand Fort Bliss to stimulate the economy for the benefit of a few influential businessmen.

EMAIL To Ms. Byrd September 3, 2009

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