Title
Resolution - A Resolution Authorizing the Acquisition and Transfer of the Knob Hill Water Supply Corporation (“Knob Hill”) Water Distribution Facilities and Customers to the City of Mansfield and Authorizing the City Manager or his Designee to Execute a Contract with Knob Hill and Make Application for Sale Transfer Merger (STM) with the Public Utility Commission (PUC)
Requested Action
Consider the Resolution authorizing a contract with Knob Hill for acquiring distribution facilities and customers and authorization to apply with the PUC for an STM of the service area.
Recommendation
Staff recommends approval of the Resolution.
Description/History
Over the past couple of years, the Knob Hill system has fallen into disrepair. In October of 2022, Mansfield began serving Knob Hill through a metered connection to stabilize distribution pressures to their customers. The Knob Hill system does not have enough revenue to operate long-term under this condition and no longer desires to operate as a public water system.
Considerations:
• Knob Hill will assign the distribution assets at no cost.
• The cost to tie into our system is estimated at around $50,000 with replacing all the water meters and adding two fire hydrants.
• Knob Hill will maintain ownership of the water well and the lot the well is on.
o Knob Hill will dispose of the plant and cap the water well.
Justification
While the Knob Hill WSC is wholly located in the Mansfield City Limits, we do not have service area rights through a Certificate of Convenience and Necessity (CCN). Upon passage of this Resolution, Mansfield will apply with the PUC to transfer the service area rights. We have had some preliminary discussions with the PUC and TCEQ to expedite the process. I expect that it will likely take six months to complete the transfer.
Funding Source
Utility Fund
Prepared By
Jeff Price, Executive Director, Public Works
817-728-3602