Title
Resolution - A Resolution Approving an Agreement for the Sale and Delivery of Treated Water to a Wholesale Customer - Mountain Peak Special Utility District
Requested Action
Consider the Resolution authorizing the City Manager to execute an Agreement for the Sale and Delivery of Treated Water to Mountain Peak Special Utility District.
Recommendation
Staff recommends approval of the Resolution.
Description/History
A wholesale water contract with MPSUD was first presented to the council on October 14th of, 2019. Council directed us to begin negotiating contract terms with MPSUD. Over the past several years, MPSUD has needed resources faster than a wholesale agreement with Mansfield could provide, leading them to acquire some capacity by improving their current wells and through a separate wholesale agreement with Johnson County Special Utility District.
Utilizing the same agreement structure and rate methodology with JCSUD and GP, MPSUD has agreed to contract terms to include 1 million gallons of water per day initially. During the 20-year term of the agreement, MPSUD and Mansfield would plan for up to 10 MGD. The 1 MGD initial take has minimal impact on our current system capacity and will not change our current Capital Improvement Plan. The growth in demand to 10 MGD will be planned through our water master plan, and the cost will be programmed into our CIP and MPSUD's cost of service.
Justification
Expansive growth is taking place in the Dallas-Fort Worth Metroplex and the service areas of Mansfield and neighboring communities. This growth is driving the need for additional water supply. Mansfield is uniquely positioned with water resource availability and our water treatment plant. We have built and are expanding our treatment plant to meet the max day demand. Our max day demand generally occurs in or around August and is primarily driven by single-family residential irrigation use. Our peaking factor is over two times our average daily flow...
Click here for full text