Title
Consider a memorandum/resolution authorizing a contract for wholesale of potable water between the City of Killeen and Texas Water Utilities, L.P.
Body
DATE: April 15, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Wholesale Water Contract
BACKGROUND AND FINDINGS:
Texas Water Utilities, L.P. (TWU), a Texas limited partnership, has requested wholesale potable water service from the City of Killeen. The City has the capacity to supply up to 1.5 million gallons per day of treated water from the City's 36-inch water transmission line located north of FM 2484 in Bell County. The Bell County Water Control and Improvement District No. 1 has approved the agreement as required under the Amended and Restated Water Supply Contract dated June 24, 2004.
Under the agreement, TWU is responsible for designing, constructing, and maintaining two 12-inch water lines that will connect to the City's supply line. TWU will also install metering equipment at its own cost, which becomes the property of the City upon installation. The City retains responsibility for reading and calibrating the meters and will deliver water of the same quality it provides to its own customers.
Additional requirements include:
- A one-time $1,000,000 connection fee payable within 30 days of substantial completion
- Monthly payments of $10,000 during the phase-in period
- Post-phase-in, water will be billed at $4.00 per 1,000 gallons
- Rate increases are permitted annually with a 60-day notice; termination is allowed by TWU if an increase exceeds 10%
- TWU must adopt the City's water conservation and drought contingency plans
- The City is not obligated to deliver water during force majeure events or if doing so would compromise service to retail customers
The contract term is 10 years with the option for one additional 10-year renewal.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO C...
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