Looky Here!!!

More insanity in City contracting. This item was on the agenda of the City Council last night.

City of Georgetown, Texas City Council Regular Meeting August 27, 2019

SUBJECT: Consideration and possible action to execute an agreement between the City of Georgetown and Blanchard Refining Company for the temporary sale of 10,000 acre-ft of Brazos River Authority (BRA) System Water -- Glenn Dishong, Utility Director

ITEM SUMMARY: The current utilization and the predicted use of BRA system water with current growth trends indicate that up to 10,000 acre-ft of raw water that is currently under contract until August 31, 2040 will not be needed for at least the next 10 years. The contract payment terms require the City to pay for the contracted water, whether or not it is used. Just like the electric contracts, the City has apparently contracted for a fixed amount of water from the Brazos River Authority through August 31, 2040. How long is that contract? The kicker is that the City has to pay for the water whether or not the City uses it!!!!! Does that sound like the electric contracts for which the ratepayers are dearly paying? What is wrong with the City entering into these long term contracts that require payment even if the commodity is not delivered or used? It looks like it is time for some completely new innovative thinking at the City in how it contracts for utilities!