Title
Consider a memorandum/resolution authorizing Addendum No. 7 to the Amended and Restated Water Supply Contract with WCID for the Lake Belton Water Plant Power Resilience Project.
Summary
DATE: June 21, 2022
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the execution and delivery of Addendum No. 7 to the Amended and Restated Water Supply Contract for the Lake Belton Water Plant Power Resilience Project
BACKGROUND AND FINDINGS:
Bell County Water Control and Improvement District No. 1 (the District) operates a water treatment plant and transmission facility at the edge of Lake Belton. The District supplies treated water to area cities, including the City of Killeen. Senate Bill 3 (SB 3) of the 87th Texas Legislature requires all water providers to develop and implement an Emergency Preparedness Plan (EPP). A key factor of this plan is the ability to provide water to all customers at a 20-psi minimum pressure for at least 24-hours in the event of a system-wide power outage. The District's EPP includes the installation of standby generators at the Lake Belton Water Plant.
On June 7, 2022, the District presented their proposed Lake Belton Water Plant Power Resilience Project to City Council. City Council issued a Motion of Direction for City staff to bring this project back with the necessary contract addendum for further review.
It is the intent of the District to sell $11,330,000 in Water System Revenue Bonds, Series 2022A to finance the project. The District has prepared a contract wherein all of the customers receiving water from the Lake Belton Water Plant will pay a proportionate share of the cost of the Power Resilience Project. The portion of the bonds that the City of Killeen will be responsible for is 43.2432% or $4,895,000.
THE ALTERNATIVES CONSIDERED:
(1) Do not authorize the execution and delivery of Addendum No. 7 to the Amended and Restated Water Supply Contract o...
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