Title
1.) Executive Session Item: Consultation with legal counsel pursuant to Chapter 551.071 of the Texas Government Code regarding the second amendment to the wholesale water agreement with SWWC Utilities, Inc. (previously Windermere Utility Company). 2.) Open Session Item: Discuss and consider action to approve the second amendment to the wholesale water agreement with SWWC Utilities, Inc.
Summary
The City of Pflugerville approved the original agreement for wholesale water service with the Windermere Utility Company in February of 2007. The take or pay contract continues to be for 100,000,000 gallons per year which represents about 14% of the total amount of water that can be sold by the City of Pflugerville to entities other than governmental units. The original contract was for three years at a rate of $2.25 per 1000 gallons. The first amendment to the agreement was approved in March of 2010. That amendment extended the agreement for 18 months, until September of 2011, and increased the rate to $3.25 per 1000 gallons. Due to a merger, the agreement also changed the name of the other party to the agreement from Windermere Utility Company to SWWC Utilities, Inc.
This second amendment extends the agreement for twelve additional months to September of 2012. Although both parties are interested in a longer term agreement, staff would like to pursue those options following the completion of the water master plan. The water master plan is scheduled to be completed in the fall of 2012. SWWC Utilities, Inc. has already executed the second amendment. The signed document is attached to this agenda item.
Deadline for City Council Action
The current agreement for wholesale water service with SWWC Utilities, Inc. expires in September 2011.
Fiscal Impact
The City of Pflugerville receives $325,000 from this agreement each fiscal year. The revenue is shown in the budget under the line item Wholesale Water - Windermere.
Staff Recommendation
Approve the secon...
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