SUBJECT: Assignment Agreement for Wastewater Treatment Capacity in Blackhawk Regional Wastewater Treatment Facility.
RECOMMENDATION: (SUMMARY)
Adopt an ordinance approving the Assignment Agreement for Wastewater Treatment Capacity in Blackhawk Regional Wastewater Treatment Facility Between the City of Houston and Harris County Municipal Utility District No. 55.
SCOPE OF CONTRACT AND FEE: The City of Houston (“City”) participates in the Blackhawk Regional Wastewater Treatment Facility (“Blackhawk”), which is owned and operated by the Gulf Coast Waste Disposal Authority (“Authority”). Under the City’s Regional Waste Disposal Facility Contract with the Authority dated April 13, 1976 (“Participation Contract”), the City has the right to discharge up to 1,497,000 gallons per day (“GPD”) of wastewater to Blackhawk (referred to as “reserved capacity”), and must contribute toward capital costs based on reserved capacity.
The Department of Public Works and Engineering (“PWE”) has determined that the City needs only 400,000 GPD of reserved capacity in Blackhawk over the next 40 years. PWE therefore proposes to sell up to 1,000,000 GPD of reserved capacity to two other Blackhawk participants, Harris County Municipal Utility District No. 55 (“MUD 55”) and the City of Friendswood (“Friendswood”), as permitted under the Participation Contract. These sales will reduce the City’s financial liability for current and future capital projects and generate income to the utility.
Under the proposed Assignment Agreement with MUD 55, the City will assign 90,000 GPD of treatment capacity to MUD 55 in exchange for a sum equal to the City’s then-current wastewater impact fee, which is currently $1,199.11 per 250 GPD.
Following the sales to MUD 55 and Friendswood, the City will have 497,000 GPD of wastewater treatment capacity remaining in Blackhawk – more than enough to meet the City’s projected needs over the next 40 years.
ESTIMATED FISCAL OPERATING IMPACT: Revenue will be deposited into the Water and Sewer System Operating Fund (No. 8300), Therefore there is no fiscal impact anticipated as a result of this project.
LOCATION: 3902 W. Bay Area Blvd., Friendswood, TX 77546
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Carol Ellinger Haddock, PE
Acting Director
Department of Public Works and Engineering