AGENDA CAPTION:
Title
Consider approval of Resolution 2026-122R, approving a Contribution in Aid of Construction agreement with Bluebonnet Electric Cooperative, Inc., for Bluebonnet to install overhead electric distribution facilities for the FM 1978 Water Reclamation Facility Project in the amount of $2,550,000.00; authorizing the City Manager, or her designee, to negotiate final terms of and execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: July 7, 2026
Department: Engineering and Capital Improvements
Amount & Source of Funding
Funds Required: $2,550,000.00
Account or Project Number (C = CIP funds): C571
Funds Available: Yes
Account Name: FM 1978 Water Reclamation Facility
Fiscal Note:
Prior Council Action: Res. 2024-78R Regional Wastewater Services and Facilities Cost Sharing Agreement and subsequent amendments; Res. 2025-125R Contract with Burns & McDonnell Engineering Company, Inc.
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Background Information:
The attached contribution-in-aid of Construction from Bluebonnet Electric Cooperative, Inc., for $2,550,000.00, will provide the electrical distribution infrastructure to power the FM 1978 Water Reclamation Facility that will begin construction in September, 2026.
This electrical distribution infrastructure will power the proposed FM 1978 Water Reclamation Facility that will treat wastewater flows from growth in southern San Marcos. The Bluebonnet Electric Cooperative, Inc. improvements will include upsizing the existing overhead overhead electric lines from Bebak Inn Road. electrical substation to Fleming Pass Rd. and new overhead electric line from FM 1978 into the FM 1978 Water Reclamation Facility site. These improvements will provide power for the construction and operation of the facility described in the Regional Wastewater Services and Facilities Cost Sharing Agreement approved by council in May 2024, Res. 2024-78R.
This project was identified as a priority in the 2025 Wastewater Master Plan to address treatment capacity issues anticipated in the near future due to growth in southern San Marcos. Once FM 1978 Water Reclamation Facility is operational it will serve the immediate area and will allow the diversion of flows from the existing River Road Water Reclamation Facility to help defer some near-term capacity improvements needed there.
Construction is anticipated to begin on FM 1978 Water Reclamation Facility in September 2026 and complete in approximately two years.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of this item.