Agenda No. 3.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | September 5, 2023 |
| Department: | Public Works |
| Subject: | Resolution 23-R-89 - Approving the Water Supply Contract between Schertz/Seguin Local Government Corporation (SSLGC) and Springs Hill Water Supply Corporation (Springs Hill WSC). (B. James/L. Busch) |
BACKGROUND
The SSLGC has an existing Regional Water Supply Contract with Springs Hill WSC for 840 ac-ft/yr. which expires August 29, 2023. This new Water Supply Contract between SSLGC and Springs Hill WSC shall be effective for a period of twenty (20) years from the Effective Date for 840 ac-ft/yr. Springs Hill WSC will pay the same O & M Rate and Water Lease Rate as the Cities of Schertz and Seguin under this new contract, unless a separate rate is established in the future, as well as an annual debt service. The SSLGC Board has approved the Water Supply Contract on August 17, 2023 and Springs Hill WSC approved the contract on July 25, 2023.
GOAL
For the City of Schertz City Council to approve the Water Supply Contract between the SSLGC and Springs Hill WSC.
COMMUNITY BENEFIT
The City of Schertz is a member of the SSLGC, and it is through the SSLGC that the City provides water to its residents and businesses. Approval of the Water Supply Contract in August 2003 provided the opportunity to keep the rates more stable for the residents and businesses of Schertz. Entering in to this new agreement with some required system improvements will continue this benefit for Schertz' customers as well as provide for future efficiencies to allow for increased water delivery to the City of Schertz.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of the Resolution approving the Water Supply Contract between the SSLGC and Springs Hill WSC.
FISCAL IMPACT
Springs Hill WSC will currently pay the same O & M Rate and Water Lease Rate as the Citie's of Schertz and Seguin under this new contract to SSLGC, as well as an annual debt service amount of $343,414.
RECOMMENDATION
Approval of Resolution 23-R-89.