The Dallas Morning News
By KEVIN KRAUSE
November 5, 2005

An appeals court has ruled that a Denton County district judge may hear a dispute over attorneys' fees related to Flower Mound's ongoing conflict with a regional water district over a proposed lake.

Upper Trinity is trying to recoup more than $400,000 in legal costs associated with fighting Flower Mound's unsuccessful lawsuit to halt the Lake Ralph Hall project. The suit delayed Upper Trinity's $23 million bond issue to pay for the lake's planning costs, a treatment plant and other projects.

Upper Trinity officials say they expect to be back in Judge L. Dee Shipman's courtroom in a few weeks for a hearing on the issue of attorneys' fees.

Upper Trinity's executive director, Thomas Taylor, said that if Flower Mound does not reimburse the district for the delays and other costs, the district would have to raise its rates by 10 cents per 1,000 gallons.

The water district provides water to Flower Mound and 17 other cities and towns, including Highland Village.

Flower Mound has been outspoken in its opposition to Upper Trinity's plans to build the lake in Fannin County named after the longtime Rockwall congressman. Town officials say the town doesn't need the extra water but would be stuck with a majority of the cost because the town is the water district's largest customer.

Upper Trinity officials say the lake is needed as a future water source to supply growing areas of the county.

A majority of the district's board members have voted for the project.

Flower Mound filed suit in May 2004 and the court dismissed Flower Mound's claims four months later.

The decision to sue has had costly ramifications for the town.

Upper Trinity sent the town a letter last month detailing $5.2 million in costs it said Flower Mound incurred with its court action. And the district wants the town to pay up.

"While the independent actions of the town have not stopped the projects and programs of the district, the town's actions have inflicted damage on the district and its members," Mr. Taylor wrote in the Oct. 21 letter.

The letter said the district incurred more than $4.4 million in engineering and construction costs associated with the Tom Harpool water treatment plant because of delays caused by the town's actions.

Paul Stone, a Flower Mound council member, said the town is looking at its options, which he said include other potential providers. However, he acknowledged it would be costly to get out of the town's contract with the district.

"We have to get them to treat us right," Mr. Stone said. "I believe that the management is out of control."

Mr. Stone said he thought relations would improve after Flower Mound got a new representative on the district. But they haven't, he said.

Mr. Taylor said he hopes town officials will respond to the letter and that negotiations can begin.

"We're trying to find a way to rectify it without going to court and raising rates," he said. "A settlement is the best way to go. That takes two parties."

He said it's unprecedented for a district board member to sue the district but that plans to build Lake Ralph Hall are still on track.

"The more we learn about the project, the more right and feasible it looks," he said.