Water district seeks to recover opposition costs
Upper Trinity board wants Flower Mound to pay as much as $6.4 million

The Dallas Morning News
By Kevin Krause
September 2, 2005

What started out as a difference of opinion between Flower Mound and the Upper Trinity Regional Water District over a proposed new lake has gradually eroded into a war of words, legal action and even separate public relations campaigns.

Now it's about money.

The Upper Trinity board of directors voted Thursday to recommend district staff try to recover costs associated with Flower Mound's opposition to Lake Ralph Hall - a bill for as much as $6.4 million.

That number includes legal fees, extra staff costs and delay costs associated with a water treatment plant. Upper Trinity board members hinted at a lawsuit against Flower Mound if the town doesn't pay the estimated costs related to the town's actions "initiated outside the board room."

"We all act independently. But when we act independently and it costs this partnership dollars, and in the magnitude of this order, then ... we also as a board have a right to try to recover damages," said board member Richard Huckaby, who represents Denton County Fresh Water Supply District 1A.

He said they should try everything possible to recoup the costs and that a lawsuit will be the final step.

Upper Trinity is currently trying to recoup legal costs associated with fighting Flower Mound's unsuccessful lawsuit to halt the lake project.

The suit delayed Upper Trinity's $23 million bond issue to pay for the lake's planning costs, a water treatment plant and other projects.

And the district voted in March to pay a Dallas public relations firm $20,000 a month.

"We've stood back, taken the insults and blows ... long enough. Let's move forward," said Upper Trinity secretary Todd Madison, who represents Lincoln Park.

Upper Trinity supplies water and other services to more than 20 area cities and towns.

The measure passed by a 16-4 vote, with Flower Mound, Double Oak, Denton and Oak Point voting against it. Five members were absent.

Timothy S. Fisher, who represents the city of Denton, asked the board to consider how the public may perceive the board's action.

"I would recommend that we stop this process now before it gets further out of hand," he said.

Flower Mound, a member of the district and its largest water customer, has been outspoken in its opposition of Upper Trinity's plan 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 it is the water district's largest customer.

"This doesn't seem to be an appropriate way to treat a district member," said Chris Torley, Flower Mound's representative, about the board's actions.

Saying some information is not getting out, Flower Mound officials have been trying to talk to anyone who will listen by scheduling informational meetings for other city officials and the public.

Town officials want the district to seek less costly alternatives to the estimated $200 million reservoir. District officials say they are considering all possibilities but the lake is needed to supply water to growing areas of the county in the future.

The lake project, which would be financed with bonds, would take about 15 years to complete.

Relations between Flower Mound and Upper Trinity have been eroding since 2003 when the district implemented a 5 percent rate increase.

Last week, Flower Mound was host to an informational meeting in unincorporated Denton County to tell the public about concerns it has about Upper Trinity's management practices and rates.

"Flower Mound took their amusing dog and pony show on the road to outlying communities last night," board member Richard Wilkinson, who represents Ponder, wrote in an e-mail. "The dog got shot and they were barbecuing the pony as I left."