by KIM HILSENBECK
The city of Kyle reached a settlement in May with Monarch Utilities that would allow the private utility to raise water rates 14 percent for about 900 customers in the Amberwood and Indian Paintbrush subdivisions.
At the time, Mayor Lucy Johnson said the goal of the council should be to rid the city of Monarch completely.
She and the rest of the Kyle City Council have not eased up on that position. At the July 17 council meeting, they directed city staff to seek permission from the Texas Commission on Environmental Quality (TCEQ) for dual certification, which means running a second set of pipes next to the existing Monarch infrastructure.
The new lines would give Kyle the opportunity to offer competitive water utility service for residents in those neighborhoods.
City Manager Lanny Lambert said the project, if approved by TCEQ, could cost nearly $2 million. However, he believes Monarch is costing the city in terms of economic development.
“Several businesses have declined to locate to Kyle because of the low water quality, high cost and poor customer service from Monarch,” Lambert said. “Monarch is not a friend to the city of Kyle.”
Monarch, a subsidiary of the California-based SouthWest Water Co., was not willing to discuss selling their water utility business in Amberwood and Indian Paintbrush to Kyle at the time of the settlement, according to Lambert.
That settlement, which took several months, allows Monarch to raise its rates 14 percent, as opposed to the 62 percent originally requested last year.
Under the settlement terms, the average Monarch customer’s water bill increased from $65.29 to $71.47 a month in June; it will go up again in January to $74.40.
Monarch agreed not to seek another rate increase until 2014.
The city of Kyle may also have to raise its water utility rates this year, following a 30 percent increase last year.
Kyle officials said the typical city water utility customer pays about $39 per month. Average water usage per month is about 5,000 gallons.
Of the proposed dual certification, Diane Hervol, Kyle mayor pro-tem and Monarch customer, said, “I’m hoping that we’ll provide an opportunity for the ratepayers to have an option to choose.”
But city officials said the dual certification process could be costly and may take several years to be approved, if at all.
A draft application will be ready for council in about a month, according to Johnson. Lambert said the city will use in-house staff and the city attorney to develop the application draft.
