Annetta to buy Deer Creek; Hudson Oaks to take Dyegard

Crystal Brown

cbrown@weatherforddemocrat.com

Community leaders of East Parker County walked out of a 12-hour mediation late last week effectively ending a five-year dispute over the ownership and water rates of the Deer Creek and Dyegard water systems.

Once closing is complete, Willow Park will no longer own either of the water systems. Rather, the City of Annetta will purchase Deer Creek Water for $6.1 million and Hudson Oaks will purchase the Dyegard system for $2.8 million.

Willow Park Mayor Kenneth Hawkins said the arrangement made Friday is the same agreement the city leaders reached four months ago.

“I’m very pleased that the negotiations of the mayors laid the ground work for the deal to take place,” Hawkins said.

Previous discussions by the mayors included the possibility of the Parker County Utility District purchasing and operating the water systems. Annetta Mayor Phil Lumbsden said city leaders were concerned they would end up in the same situation they have been in with no say to their water rates or input on the operation of the system, of which about 70 percent lies within the Annetta city limits or extraterritorial jurisdiction (ETJ). The remaining pieces lie within the county or ETJ of Annetta South.

“PCUD is made up of some reliable, intelligent, knowledgeable people, but it doesn’t mean it’s going to be that way forever,” Lumbsden said. “Annetta felt we might end up back in the same boat with someone else controlling our destiny.”

Lumbsden added this agreement is the start to the healing process for the East Parker County cities.

“All parties and the attorneys put forth a tremendous effort in order to accomplish an end to this ongoing disagreement that has literally torn East Parker County to shreds,” Lumbsden said. “However, now looks as though we can all join together and pursue a regionalization program for water and sewer projects that will satisfy the needs of Parker County for many years to come.”

Hudson Oaks Mayor Pat Deen did not return weekend phone calls, but Hawkins explained Hudson Oaks’ purchase in more detail. Hawkins said the City of Hudson Oaks will purchase the Dyegard system, including a portion of the Willow Park ETJ where the system lies. He said this is a keystone for Hudson Oaks’ plan to extend south and provide water to the Annettas.

“So many of their long term hopes and aspirations can now be realized by this transaction,” Hawkins said.

The agreement also brings an end to the rate cases and lawsuits filled against Willow Park at the state level and leaves Willow Park in control of the water systems until the closing date, which could be up to 270 days, Lumbsden said. Hawkins said he expects closing to take longer.

Once closing occurs, Willow Park will hand over a large portion of its customer base and begin making adjustments to their own system.

“Our future direction of our city is going to have to be redirected,” Hawkins said. “We will yield to the wisdom of our council to set a different course for our city.”

And while they were not directly effected, Mayor Kit Marshall represented Aledo at the hearing. She said she is pleased with the outcome.

“What happened is an incredible benchmark for East Parker County,” Marshall said. “I really see it nothing short of a miracle. The true winners here are the ratepayers. They now have the opportunity to give input into those fees that impact their pocket book and their lives.”

All of the mayors agreed the outcome of the mediation laid the groundwork for the cities to work together in the future on regionalization goals.

“All of the impediments to cooperation have been removed,” Hawkins said. “We’ll need some period of time to let things settle down. After which, I think we’ll find a venue where we can work together much more cooperatively. I myself am very anxious to have city council meetings without the need to discuss these ongoing litigations. It’s a great relief to have these issues behind us.”