AGENDA CAPTION:
Title
Consider approval of Resolution 2023-85R, approving a contract with Martin Marietta North Texas Cement, LLC, formerly known as TXI Operations LP d/b/a Martin Marietta, for the sale of reclaimed water at prevailing rates; authorizing the City Manager or her designee to execute the contract documents; and declaring an effective date.
Body
Meeting date: May 2, 2023
Department: SMTXU, Tyler J. Hjorth - Director
Amount & Source of Funding
Funds Required: NA
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Fiscal Note:
Prior Council Action: Initial agreement for the supply of water and construction of a reclaimed water pipeline and interconnection was entered into in March of 2007 for a term of ten years. Initial agreement was renewed through Res 2018-40R on Mar 20, 2018.
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Background Information:
This agreement is a renewal of the reclaimed water supply agreement approved in 2018 and runs through 2028.
Under the previous contract and this renewal, the City will continue to provide Martin Marietta with a guaranteed maximum quantity of reclaimed water of up to 700,000 gallons per day. Customer may take smaller quantities at its discretion but will pay for a minimum 120,000 gallon daily take each month. The contract stipulates that the prevailing rates for reclaimed water will be used in calculating the monthly bill, which is currently $1.90 per 1,000 gallons, for minimum and maximum annual payments of approximately $83,000 and $486,000, respectively.
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Recommendation:
Staff recommends approval.