Title
Consider a resolution authorizing the Mayor to execute a Wholesale Water Agreement with Fern Bluff Municipal Utility District.
Body
In 1991, the City of Round Rock entered into a wholesale water supply agreement with the Fern Bluff Municipal Utility District (MUD). Fern Bluff MUD is located within the City of Round Rock’s extraterritorial jurisdiction near FM620 and Wyoming Springs Drive. The MUD provides retail water and wastewater services to the land within its boundaries.
The existing water supply agreement has expired and both parties now wish to renew the agreement. Under the renewed agreement, the City of Round Rock will be responsible for selling and delivering water, which will be supplied from the City’s water distribution system to the boundaries of the MUD. Fern Bluff MUD currently has two metered locations that receive water from the City of Round Rock. Retail water service within Fern Bluff MUD will continue to be provided by the MUD.
The rate charged by the City to Fern Bluff MUD for water supplied under this agreement will include a monthly base charge and a volume charge. The City of Round Rock will continue to review and amend these rates annually based on a cost-of-service study.
This agreement will extend the water supply contract for 40 years from the date of execution. Fern Bluff MUD is a “developed district” as defined under Section 49.23602, of the Texas Water Code. Therefore, Fern Bluff does not anticipate making any new water or wastewater connections during the term of this agreement.
This agreement has been approved and signed by Fern Bluff MUD.