Item Coversheet

City of Georgetown, Texas
City Council Regular Meeting
August 27, 2019

SUBJECT:
Consideration and possible action to execute an agreement between the City of Georgetown and Blanchard Refining Company for the temporary sale of 10,000 acre-ft of Brazos River Authority (BRA) System Water -- Glenn Dishong, Utility Director
ITEM SUMMARY:

The current utilization and the predicted use of BRA system water with current growth trends indicate that up to 10,000 acre-ft of raw water that is currently under contract until August 31, 2040 will not be needed for at least the next 10 years. The contract payment terms require the City to pay for the contracted water, whether or not it is used.

The contract with Blanchard Refining Company allows Blanchard to use up to 10,000 acre-ft of water until August 31, 2029 in exchange for payment to the City of 125% of the standard BRA system rate, currently $79.00 per acre-ft. Payment will be made in monthly installments regardless of use/non-use by Blanchard.

The contract contains "claw back" provisions that in the unlikely event that the City needs some of the water due to growth in excess of that predicted, the City can curtail the sale by up to 2,500 acre-ft in the last two years of the contract.

The BRA System Water Agreement for 10,000 acre-ft has been temporarily amended to allow the sale of water to Blanchard Refining Company for Industrial use for the same period as this contract.

FINANCIAL IMPACT:
The revenue from the sale of the excess water will exceed the cost of the water by 25% resulting in net revenue for the water fund in the amount of $197,500. for the next fiscal year, increasing annually with the BRA System Rate until the agreement expires in 2029.
SUBMITTED BY:
Glenn W Dishong
ATTACHMENTS:
Description
Diversion Point Exhibit
Blanchard Agreement