City parks staff and consultants briefed the Highland Village Parks and Recreation Advisory Board on July 21 about infrastructure failures and proposed improvements at Pilot Knoll, the Corps-leased park on Lake Lewisville. Staff said aging potable-water and septic systems in the campground are undersized and failing and presented funding options tied to a larger project that would add cabins, upgrade the gatehouse and renovate day-use and trail areas.

Scope and condition: Park staff said the park currently includes 55 rentable RV spaces (56 counting a camp manager location), three large rentable pavilions, 24 picnic shelters, a boat ramp and parking, walking and equestrian trails, and vendor agreements for paddleboards, jet-ski rentals, a kayak kiosk and a firewood dispenser. Staff said the park was developed in 1966 and that some utility components date to the 1960s–1970s. “These systems … are outdated, failing, and need to be replaced now,” a staff presenter told the board.

Repairs and recent findings: An engineering review and work-order records show frequent water-line breaks and evidence the RV-area septic leach system is no longer functioning properly. During a recent site assessment staff uncovered a previously undocumented set of tanks and learned an older double-tank design sometimes overflowed into an environmentally sensitive area. Staff had fenced and serviced the tanks and began monitoring levels, and they described the septic system as undersized for modern RV usage.

Public-works cost estimate: Highland Village Public Works provided an opinion of probable cost for complete replacement of site utilities: water service $1,100,000; sanitary sewer $2,100,000; engineering and related fees roughly $348,000; total principal estimate $3,500,000 and about $3,675,000 with the added 5% inflation allowance included in staff materials. Staff emphasized this figure was not part of the original feasibility work for cabins and represents additional, newly identified costs.

Funding, grants and earlier planning: Pilot Knoll operates under a Corps lease and its revenues are placed in a dedicated fund that by policy targets a fund balance of about 25% (policy minimum 20%). The city received a Texas Parks and Wildlife Department (TPWD) local park grant in 2024 (staff said the grant-funded planning and some construction design steps) and a TPWD boat-ramp planning grant that is expected to flow into construction grant opportunities after plan approval. The city issued parks bond proceeds in 2021 that staff have set aside for Pilot Knoll items; staff said available bond proceeds plus expected grant dollars — roughly $1.2 million in grants, $2.9 million in bond allocations and interest earnings on those proceeds — form the primary financing plan under discussion.

Cabins, revenue modeling and payback: Staff presented a development scenario that would include 16 permanent cabins and associated day-use improvements. In modeling, staff used multiple occupancy assumptions: 75% occupancy (their planning baseline, close to current RV occupancy at Pilot Knoll), 64% and 50%. Under the 75% occupancy scenario, staff projected positive net cash flow and said the investment would reach payback in roughly 18 years when the full utility rebuild is included. With lower occupancy the project’s near-term fund balance impact becomes more constrained; at 50% modeled occupancy staff showed a net negative effect on the park’s core-lease fund.

Delivery approach and contracting: Because recent small construction projects in the area received few competitive bids, staff proposed a construction-manager-at-risk (CMAR) delivery method. The city solicited CMAR proposals, received two qualified submissions and gained council authority to negotiate a contract with a recommended firm (Dean Construction) to serve as construction manager on the cabins, gatehouse and day-use improvements.

Operational and regulatory notes: Staff noted that Corps approval is required on plans and that federal grant funding requires additional reviews, such as an archeological review, which the city has completed and which remains valid for two years. Staff also stressed licensing and certified-contractor requirements for water and sewer work because the city does not hold the same certifications as private utility contractors.

Board questions and next steps: Board members pressed staff on whether full RV-site “full service” hookups (water and sewer to individual sites) had been analyzed; staff said that possibility had been raised but had not been fully costed and that Public Works had advised it could be cost-prohibitive. Staff promised to provide additional engineering and cost information to city council at an upcoming work session and to return to the board with more detailed scenarios and phasing options. No formal action was taken by the board at the meeting.