On March 24, 2020, the cities of Round Rock and Georgetown entered into a Wholesale Water Service Agreement for Georgetown to buy 4 million gallons of water per day (“MGD”) from Round Rock. The City of Georgetown had a need for a source of additional treated water for the southwest portion of its water service area, and the City of Round Rock had excess capacity in its water treatment system and was willing to sell wholesale potable water to the City of Georgetown. This Wholesale Water Service Agreement included two points of delivery, one of which is currently active and delivers 1 MGD. The second point of delivery is located at Country Road 175, and according to the agreement, Georgetown was able to begin taking the additional 3 MGD effective as of June 2022.
The City of Georgetown Water Utility has been unable to begin taking water through the County Road 175 Point of Delivery due to timing issues related to capital improvement infrastructure requirements. There are two capital improvement projects that are needed for Georgetown to take Round Rock water at this location. One project is construction of the Parkside elevated storage tank, and the other is the construction of a water line and pump station. The elevated tank was awarded for construction at the July 26,2022 City Council meeting. The water line is approximately 15,500 feet from the Brushy Creek Regional Utility Authority entry point into the Round Rock System, near Sam Bass Road, to the Mayfield Parkside development. This project is currently under design. Both projects are estimated to be completed by summer 2024. Upon completion, Georgetown will be able to receive the additional 3 MGD outlined in this contract.
Approval of amending the Wholesale Water Service Agreement to delay delivery of water through the County Road 175 Point of Delivery beginning June 1, 2024, instead of the current delivery date of June 2022, will allow the City of Georgetown Water Utility the time needed to put the required infrastructure in place and will give the City of Round Rock a more accurate view of water delivery timing.
STAFF RECOMMENDATION:
Staff recommends approval to amend the Wholesale Water Service Agreement Between the Cities of Round Rock and Georgetown to delay the date to June 1, 2024, when Georgetown may start taking water from the County Road 175 Point of Delivery, with an initial monthly base charge in the amount of $43,530.00 for each calendar month.