Title
Approving a resolution to amend the New Sweden Development Agreement to include wholesale wastewater service and a wastewater construction agreement for New Sweden Municipal Utility District No. 1 and authorizing the City Manager to execute the same.
Summary
The New Sweden MUDs are generally located along the FM 973 corridor and along Brita Olson Road within the far-eastern portion of the City’s ETJ. Per the New Sweden Development Agreement, executed on March 14, 2007, the City agreed to the creation of up to three MUDs on land totaling approximately 1,000 acres. The City subsequently purchased the wastewater treatment and disposal TPDES permit from TCEQ for the construction, ownership, and operation of a wastewater treatment plant to serve New Sweden and the respective 10-acre future wastewater treatment plant site from 973 Wastewater Company in 2008. Since 2008, the City purchased an additional 62.6 acres of land in order to accommodate the future needs of the Cottonwood Wastewater Treatment facility, which is currently located in New Sweden MUD 1.
Since 2008, no development has occurred on the property and there is now renewed interest in the development of New Sweden MUD 1. This amendment to the current Development Agreement is to remove the requirement for the City to construct a new wastewater treatment plant along New Sweden Church Road and instead requires the City to construct a wastewater lift station (New Sweden Lift Station) to convey flows to the City’s Wilbarger Regional Wastewater Treatment Facility. As the City is currently heavily investing into wastewater infrastructure with the construction of the Wilbarger Regional Wastewater Treatment Facility, it would be more effective to delay the construction of a future 3rd wastewater treatment facility until the areas along the FM 973 corridor continue to develop. This shift to move to a wastewater lift station mitigates the City’s risk to construct a wastewater treatment plant that could be both difficult to staff while we are working to staff a second wastewater treatment plant and it would be economically difficult to fund another large capital improvement project with the large expense of the Wilbarger Regional Wastewater Treatment Facility.
Prior City Council Action
N/A
Deadline for City Council Action
Action is requested on June 11, 2024.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: N/A
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: 4/17/24
Supporting documents attached:
Resolution
Wholesale Wastewater Agreement - New Sweden MUD 1
Wastewater Construction Agreement - New Sweden MUD 1
Recommended Action
City staff recommends approving a resolution to amend the Development Agreement for New Sweden Municipal Utility District No. 1 to include wholesale wastewater service and a wastewater construction agreement and authorizing the City Manager to execute the same.