Background
(Click here to download a copy of this document)
On May 14, 2019, a catastrophic failure of one of the Dunlap dam’s spillway gates occurred, and the spillgate explosively detached from the dam with no indication of a problem beforehand. The lake subsequently dewatered within 24 hours.
The failure of the dam has had a devastating effect on the local and regional economy. Businesses whose livelihood was related to the lake or lake recreation have seen revenues plummet, and the ability of residents, their families, tourists, and visitors to enjoy and use the lake is greatly diminished.
More than a year after the failure of the spillgate, all the spillways remain out of service, two spill gates are not repairable, there are no plans to replace them other than the plan advanced by the PLDA, and the lake is still down an estimated 14 feet. Residents are concerned about the safety and utility of their waterfronts, as well as the future. There is currently no ability to control or mitigate downstream effects from a flood, and no one knows what that may mean for lakefront property owners in that event.
Neither GBRA, Comal nor Guadalupe Counties, nor the City of New Braunfels has the funds to make the needed repairs. The dam does not qualify as a disaster, nor does it qualify for FEMA or similar support. Despite considerable efforts by community, business, state, and federal political leaders, and others, there has been no source identified to date for the needed funds.
The plan developed by the PLDA and outlined below is the only viable plan that exists to restore our lake.
Due to the pandemic, the WCID election originally planned for May 2, 2020 was postponed. Voters will now be asked to approve the plan and the Lake Dunlap WCID that will enable it on November 3, 2020.
1a) What is the plan?
The goal of the plan is to restore the dam and refill the lake as soon as possible, hopefully with construction beginning before the end of this year. We have successfully created the Lake Dunlap Water Control and Improvement District (WCID) with the authority to levy a tax on waterfront property owners to fund the repairs. The WCID will work closely with the GBRA from both funding and construction perspectives to repair and improve the dam.
We plan to restore the lake to its original levels prior to the spillgate failure by creating the WCID to fund the infrastructure improvements needed to bring the dam up to current standards, and to keep it maintained and in operating condition in perpetuity.
The WCID includes all waterfront real property, parcels, lots, and/or developments on the shores of Lake Dunlap, from the spillway upstream of Faust Bridge to the dam with McQueeney, on both sides of the lake.
On November 3, 2020, registered voters in the district will be asked to vote in an election to confirm creation of the WCID, to elect WCID directors, and to authorize the WCID to levy taxes to raise the funds necessary to repair and maintain the dam in conjunction with GBRA for purposes of restoring property values and economic viability for the Lake Dunlap community.
This plan will directly benefit all of the landowners included in the district and provide a significant indirect benefit to all the residents of both counties and the City of New Braunfels who use the lake or make their living in ways related to it. Restoring the lake to its previous capacity would also restore property values, return businesses that provide services to homeowners or users of the lake to viability, and restore tax revenues for area governments, schools, and roads.
1b) Who is leading this effort?
From the day the dam failed, the effort to develop a viable plan has been led by the PLDA. Three PLDA Board members, in particular, have each devoted hundreds of hours to the effort: J Harmon, PLDA President, and PLDA board members Doug Harrison and Dr. Larry Johnson. These individuals convened an Advisory Committee of 15 business and other leaders who live on the lake in early July to help formulate plans and ideas. Over the course of the past nine months, these individuals have brought considerable knowledge and expertise to the table, as well as an important sounding board.
Now that the Lake Dunlap WCID has been created, a five-member temporary WCID Board of Directors has been named. The members are J Harmon, Doug Harrison, Dr. Larry Johnson, Harry Moeller, and Gary Schaub. Each of these WCID temporary board members is standing for election as the official board of directors in the November 3rd election. Together, the board brings a wealth of experience and leadership to the task that spans engineering and construction, finance, communications, and more.
1c) Who is the Committee to Restore Lake Dunlap?
Friends of the PLDA who live within the Lake Dunlap community have launched an independent specific-purpose political action committee (PAC) focused on the passage of the three LDWCID measures on the November 3 ballot.
PLDA is a strong supporter of this effort and while it cannot directly engage in political activities, its members stand solidly with the PAC in favor of the Lake Dunlap WCID’s ballot measures to restore our lake. The values of the two groups are aligned around a common purpose: to step up as a community to do what is needed to ensure that Lake Dunlap is restored affordably and as soon as possible — and preserved for generations to come.
The new PAC, which is a completely independent organization unaffiliated with the Lake Dunlap WCID, will be called the Committee to Restore Lake Dunlap (CRLD). The group will work in parallel with the PLDA in vote-getting efforts and to ensure voters have the facts they need ahead of the election.
Led by Treasurer Dr. Larry Johnson and a ten-member group of business and community leaders, the CRLD will work to organize neighborhoods to get out the vote, engage in communication efforts to reach voters, conduct direct-mail campaigns to voters, and organize virtual and other meetings in support of the LDWCID ballot measures in Guadalupe and Comal counties and the city of New Braunfels. Learn more at the CRLD’s new home on the web, http://lakedunlap.org
1d) Who is paying the attorneys and engineers?
The Lake Dunlap Property Owners (LDPO), an organization managed by the PLDA but a legally separate entity, initially covered the minimal costs related to the District creation effort out of its unrestricted general funds. A fundraiser was held last fall to repay these loans and raise operating funds for the new WCID until tax revenues begin to flow in. The community donated over $100,000 which has enabled the WCID to repay the LDPO and to now cover further costs from its own budget. We welcome further donations to continue to help fund these efforts. GBRA funded the cost of the engineering of the dam reconstruction, which is now 100% complete.
1e) How much is GBRA contributing?
GBRA’s contributions are substantial. We will receive 100% of the gross hydroelectric revenues from Lake Dunlap over the life of the loan. For the past ten years, these revenues have averaged $750,000 per year. We expect that with the more modern dam technology, we will be able to produce even more revenue from the hydroelectric operations than has been possible before the dam failed. In addition, GBRA has contributed the entire cost of the engineering for the dam reconstruction.
The total GBRA contribution breaks down like this: GBRA has already spent $3 million to design our dam. They are planning to spend $21 million over the 30 years to pay for their share of construction via the hydro revenues.
Before we put in a dime, GBRA has stepped up and committed well over $24 million for a $35 million project. That project total could actually cost a good deal less, which we will know soon, based on the contactor’s bids.
In terms of what GBRA has agreed to contribute over the life of the project, this is a great plan for Dunlap’s waterfront owners.
1f) What is the status of our contract with GBRA?
We have reached agreement on the detailed formal contract with GBRA and it has been passed unanimously by both boards. The agreement is currently being reviewed by the TCEQ and the Attorney General. In the broad scope, this contract is based on the MOU we reached with GBRA ahead of our last town hall. The formal agreement adds considerable detail to those overarching points in the MOU, and expands the agreement from the single page MOU to a 30-page formal contract that in the big picture, conforms completely to those guiding principles.
1g) When will the contract be signed?
GBRA and the WCID have agreed on the terms of the formal 30-page contract, which is now being reviewed by the TCEQ and Attorney General. Once that review is complete, the contract will be signed.
1h) What safeguards do we have to ensure the contract is honored over its lifetime?
The contract provides for a multitude of safeguards for the WCID including construction and engineering design oversight and approvals, financing oversight and approvals, limitations on costs to the WCID, limitations on minimum Hydroelectric revenues paid to the WCID, legal restraints, and limits on the liability of the WCID and many more.
1i) Are the counties, cities, or State of Texas going to contribute?
We continue to be in discussions with both counties and the city on this point, as well as with state officials in Austin. Those conversations are ongoing but disappointing. To date, none of these entities has identified any sources of funds to help. We anticipate that the state will make a low-interest loan available to us.
1k) How can I learn more?
Both http://PLDA.org and CRLD’s new home on the web, http://lakedunlap.org are great sources for the latest information on the project.
Lake Dunlap Water Control & Improvement District (WCID)
2a) What is a Water Control and Improvement District (WCID)? Why do we need it?
A WCID is a type of conservation and reclamation district empowered by the State of Texas to control and preserve the waters of the State of Texas. A WCID is empowered to finance, build, construct, improve, reconstruct, repair, and maintain dam facilities. It is a type of governmental entity and will be governed by a board of directors elected by the registered voters within the District. Upon approval by voters, a WCID is authorized to levy annual ad valorem property taxes to fund district operations and costs. Our plan is for the WCID to work with GBRA to fund and repair the Dunlap Dam and re-establish Lake Dunlap to its original levels condition, but with a modern dam and funding to ensure it is maintained in perpetuity. As all other efforts to seek funding have been unsuccessful, the WCID is the only means of raising the necessary capital to make the repairs.
2b) Who are the WCID Board members?
WCID Board members will be elected on November 3rd. There are five candidates:
7e) What happens if the vote does not pass?
All three propositions must pass for the plan to move forward. We hope that voters will endorse the plan, of course, so we can capitalize on Water Development Board funding, and not lose unnecessary time in getting our dam back.
All our efforts at the moment are on helping district voters, owners, and residents understand the plan and why it makes sense to vote FOR all three Lake Dunlap Propositions — A, B, and C —on Nov 3rd.
Potential Liability
8a) Can the WCID and its members be sued?
As a political subdivision with elected officials, the WCID and its directors will generally enjoy governmental immunity from claims. There are some exceptions to the immunity, but the WCID would secure insurance to protect the district and its directors from liability exposure.
Waterfront property owners (e.g, property owners within the District) will have no liability exposure arising out of the district’s actions.
8b) What if the dam breaks and there are injuries or fatalities? What are the consequences?
The potential for litigation claims arising out of a dam failure or dam operations is one of the reasons why it was decided that it was not prudent for the WCID to acquire ownership of the dam or responsibility for operations.