FORNEY, Texas — The City of Forney will begin performing maintenance and operations for the Markout Water Supply Corporation (WSC) beginning April 1, 2017.
FORNEY, Texas — The City of Forney will begin performing maintenance and operations for the Markout Water Supply Corporation (WSC) beginning April 1, 2017.
The move comes as talks of the City of Forney taking over Markout WSC’s system, or certificate of convenience (CCN), continue.
City of Forney City Manager James Fisher tells inForney.com talks began late last year with Markout WSC on assuming the maintenance and operations from the Tatly Special Utility District (SUD).
Fisher, in a briefing to the Forney City Council in January, said the move, in addition to a feasibility study to determine the costs of absorbing the Markout WSC’s CCN, would be an option moving forward.
Last year, Markout WSC members were faced with a vote to merge with Tatly SUD in light of news the district, faced with rising costs of utilities and infrastructure, would likely be absorbed into one, or a combination, of three surrounding entities — the City of Forney, the City of Mesquite, and Talty SUD.
Of the members who voted, a majority voted to merge with Talty SUD, however, the vote didn’t meet a required two-thirds vote for the measure to pass, according to Markout WSC Board President Brian Andrews in a March newsletter to Markout WSC members.
Following the vote, the district and the City of Forney began discussions of a possible merger as well as the City of Forney performing the maintenance and operations instead of Talty SUD.
Those talks culminated in a memorandum of understanding (MOU) in which the City of Forney would perform the maintenance and operations for Markout WSC beginning April 1, according to Fisher.
Earlier this month, Markout WSC Board Members voted to terminate their maintenance agreement with Talty SUD.
Fisher says the costs associated with any maintenance performed by the City of Forney would be charged back to Markout WSC.
“There’s not going to be a cost to the City of Forney,” Fisher told inForney.com. “They pay us a monthly fee and anything that exceeds the provisions of [the MOU] then there is a way to get those costs back from Markout.”
The Markout agreement is one of many factors the City of Forney is considering in hiring additional Public Works staff, according to Fisher who says new homes and proposed new home starts also play a major factor.
In the briefing to the Forney City Council in January, Fisher says an all-out takeover of the Markout CCN would likely cost between $6 and $10 million and could potentially be offset by additional development in the area such as the Wynne Jackson development.
During the March 21 council meeting, Fisher provided details on a possible development agreement with the Wynne Jackson development which was ultimately tabled by the council on the request of the developer.
Fisher said the Wynne Jackson developers proposed to petition for voluntary annexation into the city limits of Forney as well as a petition for release from the Markout WSC’s CCN should their project move forward.
Fisher said the City of Forney would agree to certain expenses related to the development of Wynne Jackson including providing water service, an elevated storage tank, sewer lines, and roadway improvements on Farm-to-Market (FM) 740 and FM 548. Those expenses, he said, are estimated at $5,625,000.
“Annexation into the City of Forney will allow for the collection of property taxes, impact fees, building fees, water/sewer fees and park fees,” Fisher read from the agenda item summary report. “This revenue will help offset the cost of providing utility services to the site and with the cost of road improvements to FM 548 and FM 740.”
Fisher estimates the development’s associated fees will provide possible revenues of $9,725,070 at total build out in five to seven years, excluding ongoing property taxes collections.
Some council members argued the upfront costs associated with providing services to the site would be at the tax expense of current city residents. Others argued the revenues outweigh the expenses and additional income from future property taxes.
Its unknown what impact the proposed Wynne Jackson development would have on the estimated costs of the City of Forney absorbing the Markout WSC’s system.
inForney.com has filed a public records request for a copy of the MOU and service agreement between the City of Forney and Markout WSC which was not available at the time of press.
The day-to-day business affairs of Markout WSC will continue to be run by employees and directors of Markout WSC, according to Andrews.
“We are grateful for the assistance that Talty SUD has provided us over the past two years and wish them well in their future endeavors,” he said.
Markout WSC members should call (972) 564-7600 with after-hours emergency water issues. All non-emergency water issues should be directed to Markout WSC at (972) 564-1250.
