Title
Approving a rate stabilization agreement with Windermere Utility Company, and authorizing the City Manager to execute the same.
Summary
In September 2014 a Water and Sewer Rate Stabilization Agreement was approved by the City of Pflugerville and the Windermere Utility Company, Inc. as is required for any private water utility that operates within the city limits of a municipality. This agreement set forth the path for Windermere Utility Company if they wanted to increase water and wastewater rates for normal operations of the system before any large capital expenditures are considered. As the Windermere system is mostly built-out, the capital expenses expected for this water and wastewater system is not significant.
The agreement from 2014 is slated to expire by the end of this calendar year and Windermere Utility Company is required to update the agreement and resubmit it to the Public Utility Commission (PUC) for final recordation and approval. If the City were to opt to not allow Windermere Utility Company to operate within the Pflugerville City Limits, the City would be required to pay them the fair market price as outlined in the Rate Stabilization Agreement. While this option is available to the City, the cost that would be incurred would be significant and the City would have the additional cost to upgrade any infrastructure that did not meet the City’s standard for water and wastewater systems. With this agreement and with the rules laid out by the PUC, the City will still have oversight capabilities over the utility and would still be able to work with Texas Water Utilities (the owner of Windermere Utility Company) to resolve any issues that may arise during the course of their normal operation.
This agreement would become effective on October 1, 2024 to coincide with the beginning of the City’s fiscal year.
Prior City Council Action
City Council approved a Rate Stabilization Agreement with Windermere Utility Company at it’s September 9, 2014 regular meeting.
Deadline for City Council Action
August 13, 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: __7/29/24_______
Supporting documents attached:
Rate Stabilization Agreement - Windermere Utility Company
Recommended Action
Approve a rate stabilization agreement with Windermere Utility Company, and authorize the City Manager to execute the same.