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File #: 16-5765   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 2/23/2017
Posting Language: An Ordinance authorizing the approval of consent for a Certificate of Convenience and Necessity from the Public Utility Commission of Texas from the South Central Water Company for service to Cibolo Valley Ranch. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]
Attachments: 1. Board Resolution, 2. CCN Agreement, 3. Cibolo Valley Ranch Map - CCN Affected Area, 4. Draft Ordinance, 5. Ordinance 2017-02-23-0112
DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT: Cibolo Valley Ranch CCN


SUMMARY:

South Central Water Company (SCWC) has requested consent from the City of San Antonio (City) to apply for a Certificate of Convenience and Necessity (CCN) from the Public Utility Commission (PUC). San Antonio Water System (SAWS) staff has conducted an analysis of the request working with SCWC and recommends that the City agree to the consent request under the specified conditions contained in the Settlement Agreement between SAWS, Cibolo Valley Partners, LLC and SCWC, and as stated in the proposed Ordinance. Due to the additional capital cost required to serve the area, it is more economical for SCWC to provide service to the area.

BACKGROUND:

SCWC has requested consent from the City to apply for a CCN from the PUC allowing the SCWC to provide service to the Cibolo Valley Ranch (CVR) Tract. The CCN would apply to a 498-acre tract in southern Comal and northern Bexar Counties south of FM 1863 and East of US 281, of which 394 acres is within SAWS sewer CCN. CVR is located in the Edwards Aquifer Recharge Zone and the remainder of the Ranch is located in the Edwards Aquifer Contributing Zone. The portion of the Ranch located inside of the City's extraterritorial jurisdiction (the ETJ) is subject to the City's Aquifer Protection Ordinance.

Section 13.245 of the Texas Water Code requires consent from a city with a population of 500,000 or more prior to PUC granting a CCN within the ETJ of the city. As a condition of the consent, the city can require that all sewer facilities be designed and constructed in accordance with the municipality's standards for facilities.

SAWS staff worked directly with SCWC discussing various options relating to the development and operations of the sewer system. SCWC has agreed to make certain improvements to existing facilities and committed to construct future development in a manner ...

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