City Council
	Agenda Request
Agenda Of:	05/20/08	Agenda Request No:		V-C
Initiated By:	Justin Bower, Water Resources Manager	Responsible Department:		Utilities
Presented By:	Justin Bower, Water Resources Manager	Department Head:		SuEllen Staggs, Director of Utilities
		Additional Department. Head (s):
Subject / Proceeding:	Water Supply Agreement with The Orchard-Sugar Land Property Owners Association, INC. Authorize Water Supply Agreement
Exhibits:	Map of Orchard Pump Station Location Water Supply Agreement
Clearances			Approval
Legal:	Meredith Wilganowski, Assistant City Attorney		Executive Director:	N/A
Purchasing:	Linda Symank Director Fiscal Services		Asst. City Manager:	Karen Daly
Budget:	N/A		City Manager:	Allen Bogard
Budget
Expenditure Required: $			0
Current Budget: $			n/A
Additional Funding: $			N/A
Recommended Action
The Utilities Department recommends that City Council authorize a Water Supply Agreement whereby the City of Sugar Land will supply raw surface water to The Orchard-Sugar Land Property Owners Association, Inc.
Executive Summary
The Orchard development, located north of Highway 90A and south of Cleveland Lake, between Ulrich Street and Eldridge Road, has a small surface water pump station designed to irrigate public rights of way and other public areas held by The Orchard-Sugar Land Property Owners Association, Inc. The Orchard developers and the City of Sugar Land have created a Water Supply Agreement under which the City would supply the Orchard with raw surface water from the water leased from Fort Bend County Water Control & Improvement District No. 1 or other intermediate surface water supplies on Oyster Creek. The proposed Water Supply Agreement is modeled on the existing Agreements with the Telfair and Lake Pointe communities, with the exception that there is no period of free water as an incentive to offset the large investments in infrastructure made by those communities. The Agreement stipulates that the Orchard will use at least 500,000 gallons a year, with a maximum of 5,000,000 gallons a year. The rate for the water is 11.39 cents per 1,000 gallons which is the same rate the City pays for the water from WCID #1. The agreement also stipulates this rate is effective until an ordinance rate is established at which time they will be charged the ordinance rate. The revenue of this contract will be a minimum of $57 to a maximum of $570 annually depending on the volume of water they actually use. The City also gains early conversion credits from the Fort Bend Subsidence District for the water supplied to the Orchard that would equate to $11,000. If the Orchard fails to use the minimum volume, they still pay for that volume. The Orchard would continue to own and maintain the pump station they have previously installed, and would be required to follow the same monthly testing regimen as Lake Pointe and Telfair to ensure acceptable water quality. The City would read the meter as part of our City meter reading route. This contract would start immediately after the Orchard’s meter installation is complete. The Utilities Department requests City Council authorize the execution of a Water Supply Agreement with The Orchard-Sugar Land Property Owners Inc.
Exhibits