OLMOS PARK TO SELL SEWER SYSTEM TO SAWS

Prompted by Terrell Hills' recent sale of its sewer system – a transaction that netted that city nearly $600,000 – the Olmos Park City Council has authorized the mayor to negotiate a sale of their lines to a major utility as well.

During its Jan. 15 regular session, the Olmos Park City Council unanimously endorsed a move to have Mayor Ron Tefteller to pursue the sale of the city's sewer lines to the San Antonio Water System (SAWS), the area's dominant utility. Tefteller said SAWS has made overtures in buying the lines.

“My feeling is that it doesn't hurt to have discussions,” Tefteller said. He noted the time was ripe for selling the system at a premium price given that the city's sewers recently were refurbished as part of a major capital improvements project that was recently wrapped up. “Our sewer system has just been revitalized, and will in the be best condition that it'll be in.”

Councilman Joe Izbrand agreed with the assessment, likening the lines to a used vehicle that has undergone fine-tuning, thus increasing its resale value. “What better time to sell the car now that's it's been detailed and spiffed up.”

In June, Terrell Hills received a $590,000 payment from SAWS for its system. In a previous interview after that sale, Terrell Hills City Manager Mark Browne noted the city would reap significant savings from sewer line repairs – some $40,000 annually in routine maintenance alone – by divesting itself of the sewer system.

Izbrand adopted the same line of thinking, saying a substantive repair of the system had potential to obliterate municipal cash on hand: “All's we need is one major problem with our sewer system to take away every penny saved for other projects.”

Fellow council member Jeff Judson endorsed the potential sale as well, with the hopes that integrating the local system into SAWS network might lower water rates for residents. SAWS charges a higher water rate to users outside its system – including Olmos Park, despite the city being surrounded by the boundaries of SAWS' San Antonio base – than those inside the utility's network.

Councilman Susan Gragg noted the irony of the utility's Catch-22: “We're being charged a higher rate because we're considered to be outside of San Antonio, even though we're surrounded by San Antonio. It makes no sense.”

What's worse, SAWS recently notified Olmos Park property owners of a 5.9 percent increase to their water rates to be first reflected in their February bill. Judson's own water bill already hovers around $200 monthly, he said.

“Now is our window of opportunity,” Judson said in a subsequent telephone interview. But even while hopeful a sale might translate into lower water rates, he said the prospect was no foregone conclusion. “The difference is quite a bit between those inside the system and those outside, but rates would have to be part of the negotiations.”

Still, for Judson, a windfall from the sale is enough of an incentive to sell the system. He said a cash infusion is particularly appealing as the city continues efforts to build a new municipal complex to replace aging city quarters.

“It could help us pay for our new City Hall and avoid having to pass a bond issue,” Judson said. “It's my understanding that the best time to sell these systems is when they are in good working order.”

The rest of the council agreed in the end, voting unanimously to authorize the mayor to pursue a sale. While the eventual price tag for the lines is unknown, some council members suggested it might fetch more than Terrell Hills' windfall because of its recent refurbishing.