Title
Consider a resolution authorizing the Mayor to execute a Water Treatment and Transmission Agreement with the City of Georgetown.
Body
The City of Round Rock operates an existing Water Treatment Plant (WTP) that has a treated water rating of 52 million gallons per day (mgd). Because of the success of the City’s Water Conservation and Water Reuse Programs, the peak demand for the City of Round Rock has not been increasing over the past few years and was approximately 32 mgd in 2015. Therefore, based on projected water demand for the City over the next few years, Round Rock will have additional capacity in the City’s WTP that could be utilized to create additional revenue to the City.
The City of Georgetown has asked if the City of Round Rock could treat up to 6 mgd of Georgetown’s available raw water supply from Lake Georgetown and then transport the treated water to the City of Georgetown at the Barton Hill Interconnect. Round Rock and Georgetown executed an Inter-local Agreement for Emergency Water Service in 2007 where an interconnect between the potable water supplies of each City was constructed just east of IH-35 at Barton Hill. A 12-inch water meter was installed at this location at that time.
After review of the City’s WTP capacity and demand projections over the next five years, Round Rock is able to treat and deliver potable water to Georgetown at a monthly base rate of $3,136 and a volumetric rate of $2.16 per thousand gallons. This rate was determined based on the cost of providing the water treatment and transmission services to Georgetown, plus an additional 10% rate of return. In the event that Round Rock provides notice to Georgetown that treated water production at the WTP, over a 24-hour period, has reached 47 mgd or if Round Rock enters its Drought Contingency Plan for any reason, Georgetown will be required to curtail its take of water to no more than 3 mgd. This agreement would only be effective for five years.
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