Title
Approving the fourth amendment to the agreement for wholesale water service between the City of Pflugerville and Southwest Water Company (SWWC) Utilities, Inc. extending the agreement to September 30, 2014 and authorizing the City Manager to execute same.
Summary
The City staff has been meeting with representatives of SWWC since the interim agreement was signed on April 10, 2012 which dismissed the administrative proceedings and other actions related to the proposed consolidation and rate increase. Within that interim agreement, the City agreed to extend its existing wholesale water delivery contract with Windermere for at least 12 months from the effective date of the agreement to April 10, 2013. The City Council subsequently approved a third amendment to the wholesale water agreement with Windermere Utility Company on September 25, 2012, extending the agreement until September 30, 2013.
As negotiations continue between the City of Pflugerville and SouthWest Water Company, staff recommends the fourth amendment to the original agreement for the provision of wholesale water to SWWC adding an additional one-year extension of the wholesale water agreement until September 30, 2014.
Deadline for City Council Action
Action is requested on April 9, 2013 to coincide with approval of the one-year extension of the negotiations agreement.
Fiscal Impact
The fiscal year 2013 budgeted amount for wholesale water sales to Windermere is $325,000.
Staff Recommendation
Authorize the City Manager to execute the fourth amendment to the wholesale water agreement with Windermere Utility Company providing a one-year extension of the current agreement.
Drafter
Brandon Wade
City Manager