Title:
Consider and take action on a resolution authorizing staff to negotiate an agreement with Gulf Coast Water Authority (GCWA) to acquire new available water capacity in Thomas Mackey Water Treatment Plant (TMWTP) for up to 3,000,000 gallons per day (MGD) at an estimated cost of $8,400,000 (Director of Public Works)
Background:
Approval of this item will allow staff to develop an agreement to acquire new available water capacity in GCWA’s Thomas Mackey Water Treatment Plant (TMWTP) up to 3,000,000 gallons per day (MGD) at an estimated cost of $8,400,000. Approval of this item is not a binding financial commitment to acquire the proposed capacity but gives GCWA a baseline to continue efforts to negotiate contractual issues along with engineering and operational level determinations to ensure delivery of the newly allocated capacity. Associated contractual commitments will require Council’s future consideration of approval.
The attached letter from GCWA is a notice of opportunity to increase the City’s reserve capacity in the TMWTP. The letter dated September 10, 2020 notifies all TMWTP co-participants of the opportunity to acquire new capacity made available from the recent Texas Commission on Environmental Quality (TCEQ) approved re-rating of the GCWA treatment facility. GCWA has requested written notice specifying the desired amount of the increase in the City’s reserve capacity by December 15, 2020. The GCWA Board plans to approve the allocation of reserve capacity at its December 17, 2020 meeting, for sales to be effective March 1, 2021.
The re-rated capacity of TMWTP provides 7.9 MGD of additional treated potable water to 13 municipal co-participants based on their current contracted reserve capacity allocation. Each co-participant reserves the first right of refusal to acquire their available allocation of new wate...
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