AGENDA CAPTION:
Title
Consider approval of Ordinance 2021-25, on the third of three readings, granting to Maxwell Special Utility District, formerly Maxwell Water Supply Corporation, the right, privilege and franchise to construct, install, extend, remove, replace, abandon, operate and maintain its facilities within the Public Rights-of-Way of the City of San Marcos, Texas for the transportation, delivery, sale and distribution of potable water; containing other provisions relating to the foregoing subject; providing for severability; including procedural provisions; providing for approval on three readings of the ordinance; and providing an effective date.
Body
Meeting date: May 4, 2021
Department: Public Services
Amount & Source of Funding
Funds Required: N/A
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Fiscal Note:
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Background Information:
Maxwell Special Utility District (SUD) has the water CCN to the North, Northeast, and Eastern quadrant of the ETJ area. As the City limits expand and with residential housing now under construction in subdivisions that will be served by Maxwell SUD within the City limits, it is necessary to enter a franchise agreement with Maxwell SUD. This agreement allows them to locate, operate and maintain their utility infrastructure within the City Right of Way (ROW). This is similar to agreements currently in place between the City and PEC, BlueBonnet Elec, Centerpoint, and Si gas utilities. This franchise is granted in consideration of payment calculated as a percentage of utility sale revenues by Maxwell in the areas of their service CCN within the City of San Marcos city limits. The franchise fee is capped by Texas State Statute at 2% for this utility. This agreement will be in effect for a period of five years. The agreement has been approved by the Maxwell Board of Directors at their March, 2021 meeting.
Council Committee, Board/Commission Action:
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Recommendation:
Approve franchise agreement