Title
Approving a resolution of the City of Pflugerville, Texas authorizing the City Manager to execute the Wastewater Service Agreement Between the City of Hutto and Kelly Lane Utility Company Addendum No. 2. providing a six-month extension to the Wholesale Wastewater Service Agreement between the City of Hutto and Kelly Lane Utility Company.
Summary
The City of Hutto has requested a six-month extension to the Wholesale Wastewater Service Agreement between the City of Hutto and Kelly Lane Utility Company (City of Pflugerville). Please find the attached letter from the City of Hutto requesting the extension of the agreement from January 1, 2021 to July 1, 2021. The City of Hutto currently has a project underway that will divert existing flows from Pflugerville's wastewater system to Hutto's system. The project is anticipated to be substantially complete in June 2020.
A wholesale wastewater service agreement between the City of Hutto and Kelly Lane Utility Company was entered into June 9, 1999 and was assumed by the City of Pflugerville with the purchase of the Kelly Lane Utility Company in December 2002. The agreement provided for wholesale wastewater service for an area in the City of Hutto north of County Road 138 until January 1, 2020. In 2019, the City of Hutto requested an extension of the agreement until January 1, 2021 which was approved by City Council on November 12, 2019. The current request is for an additional six-month extension of the wholesale wastewater agreement to July 1, 2021.
Following the wastewater rate increases that became effective in November 2020 for City utility customers, Addendum No. 2 also provides for a wholesale rate increase to the agreement increasing the rate from the existing $30 per month per residence to $52.82 per month per residence, which is $5 more per month per residence than the average in-City Pflugerville wastewater customer pays for service.
City staff have evaluated this request in conjunction with the existi...
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