AGENDA CAPTION:
Title
Consider approval of Resolution 2025-56R, approving an amendment to the 2024 Regional Wastewater Treatment Cost Sharing Agreement to add Cottonwood Phase 4, Mulberry Meadows, and Mason Developments to the agreement and to modify certain terms of the original agreement to, among other changes, delay both the original developer payments and the required initial service date; authorizing the City Manager, or her designee, to execute the appropriate documents to implement the change in service on behalf of the city; and declaring an effective date.
Body
Meeting date: April 1, 2025
Department: SMTX Utilities, Director - Tyler J. Hjorth
Amount & Source of Funding
Funds Required: None
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: Executive Session on Jan 7, 2025; Res 2024-78R approving the Cost Sharing Agreement on May 7, 2024; Res 2024-63R approving a professional services agreement to provide owner advisor services; Ord 2024-32, 2024-33, and 2024-34 consenting to MUDs for cost sharing participants; Res 2024-223R approving an application with the Texas Water Development Board for financial assistance; Res 2025-009R approving an earlier amendment that was not executed.
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Background Information:
May 7, 2024 Council approved a Cost Sharing Agreement with the developers of Fleming Farms, Rattler Ridge, Sedona South, and Highlander properties for the construction of a regional wastewater treatment plant, the “1978 Water Reclamation Facility” or “WRF”. After approval, three additional development sites (“Mason”, “Mulberry Meadows”, and “Cottonwood - Phase 4”) who were seeking City wastewater services were identified as being best served by flowing through the original cost sharing developer sites and to the WRF. The benefits to the City include offsetting load on the existing system and plant on River Road, increased reclaimed water capacity, and additional developer financial contributions to the WRF, all without affecting the City’s design and schedule. The amendment will add an additional $12.7M to the funding for the Plant and divert more than 1,700 LUEs of wastewater system load away from our existing system and treatment plant. While the developers benefit from their own cost sharing of transmission line infrastructure from their sites to the WRF.
An Amendment was approved by Council on Jan 21, 2025 (Res 2025-009R), but one of the developers chose not to execute that version and sought additional changes to two paragraphs which have been reviewed by all parties and incorporated into this final revision. There were also two date changes in the Amendment that were missed in the prior Council action; those are corrected here as well. Attached are both the red-line of the Amendment Council approved in January and the full Amendment currently being considered for approval.
Council Committee, Board/Commission Action:
None
Alternatives:
None
Recommendation:
Staff recommends approval of the Amendment.