HomeMy WebLinkAboutIR 8689INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8689
• the Mayor and Members of the City Council May 24, 2005
A, Page 1 of 2
X SUBJECT: SALE OF WATER TO AQUA UTILITIES, INC.
fe7,13 FOR THE RESORT ON EAGLE MOUNTAIN LAKE
The purpose of this Informal Report is to provide information to the City Council
concerning a request for the City to sell water to Aqua Utilities, Inc. as a supplemental
water source for The Resort on Eagle Mountain Lake. It is anticipated that a Mayor and
Council Communication authorizing execution of a supplemental water agreement will be
submitted to the City Council for consideration on May 31, 2005.
The Resort on Eagle Mountain Lake (The Resort) is a 529-acre master-planned lakeside
community located in the City's extraterritorial jurisdiction, which is being developed by
The Resort at Eagle Mountain Lake, L.P. The Resort currently consists of 70 homes, a
if course and a clubhouse. Plans for The Resort upon full build-out provide for 650
homes, including canal lots and a 27-acre island. A map of The Resort provided by the
developer is attached.
Aqua Utilities, Inc. is the authorized retail provider of treated water for The Resort
dftl pursuant to a certificate of convenience and necessity issued by the Texas Commission
qV on Environmental Quality or its predecessor agency. Currently, Aqua Utilities provides
water for The Resort from two wells on the premises. Aqua Utilities, Inc. is drilling two
additional wells, which the company expects will provide a sufficient water supply to
serve The Resort. Aqua Utilities plans to complete the wells in summer, 2005.
Approval of the Mayor and Council CommuniClation will authorize the City Manager to
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
enter
into a temporary agreement to supplemental
water until
December 3-1,
provide
2006,
If requez, ed by Aqua Utilities and The Resort at Eagle Mountain,
L.P,
the City may
also
conflinue the padies' previous discussions concerning
prowision
of
a long-ter
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8689
supply of supplemental water to The Resort in exchange for transfer of the water CCN for
The Resort to the City at some future date. The City and Aqua Utilities have previously
entered into an agreement allowing the City to provide wastewater service to The Resort
commencing on a future date to be determined by the City.
If the City Council approves execution of the agreement, The Resort at Eagle Mountain
Lake, L.P. will construct a six-inch pipeline at its expense to connect the development to
the City's water system. Upon completion of construction and acceptance of the pipeline
by the City, the developer will convey the line and all related easements to the City. The
maximum amount of treated water to be delivered to The Resort will not exceed 300
gallons per minute. Such rate of delivery will not create an adverse effect on the City's
water supply or delivery system. The initial contract rate will be a volume rate of $2.13
per thousand gallons.
The current wholesale rates for the City's municipal customers are calculated using a
different methodology than the straight volume rate calculation for The Resort, in that
they include charges for the maximum amount of water delivered per hour and per day.
Consequently, the rate for The Resort cannot be compared directly with the rates for
municipal customers because of the different methods of calculation. However, by way
of comparison, the effective rates in FY 2004 for larger municipal customers that have
signed long term contracts varied from $1.43 to $2.76 per 1,000 gallons. FY 2004 is the
most recent year for which the City has complete year-end data.
If you have any questions or need any additional information, please contact Frank
Crumb at 817-392-8207.
Charles R. Boswell
City Manager
Attachment: Map of The Resort
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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