AGENDA CAPTION:
Title
Consider approval of Resolution 2024-195R, approving a settlement agreement with Walton Texas, LP and David Tuckfield providing for the release of land in Caldwell County east of the city from the Cotton Center Development agreement and MUD Consent Agreement and providing for the payment of $50,000.00 to the city upon such release; and declaring an effective date.
Body
Meeting date: October 2, 2024
Department: Utilities/City Attorney
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Background Information:
This Settlement Agreement resolves issues regarding approximately 120.73 acres of land out of the Thomas Yates league, abstract-313. Walton filed a Petition with the Public Utility Commission to Amend the City’s Sewer Certificate of Convenience and Necessity (“CCN”) in Caldwell County by Streamlined Expedited Release pursuant to Texas Water Code (“TWC”) §13.2541 and 16 TAC §24.245(h) to release Walton’s property from the City’s CCN sewer service area. The City and Walton negotiated a price of $50,000 for the release from the CCN service area and the release of the associated land from the Cotton Center development agreement and from the City’s consent agreement for the related Municipal Utility District (“MUD”).
The PUC ordered release of Walton’s property from the City’s sewer service area and ordered that there would be no payment owed to the City for the CCN release. The settlement agreement provides for the release of the property from the Cotton Center development agreement and the City’s consent agreement for the related MUD in exchange for the payment of $50,000.00 by Walton.
Providing sewer service to this area was not practical or preferred by the City and the release of land from the agreements is consistent with the PUC’s release of the land from the city’s sewer service area.
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Recommendation:
Staff recommends approval of the settlement agreement.