Howe has agreed to hand its sewer service territory to a private company, under a franchise the City Council approved in a special meeting last month. Signed minutes of that Sept. 10 meeting were posted to the city's document site on Tuesday.
The minutes show the 11-minute meeting drew no comments at its public hearing. Council member Billie Ingram moved to approve Ordinance 833B, Ed Whitfield seconded, and it passed unanimously. Ricky Price and Chad Woods then moved and seconded an amended facilities lease with the company, BVRT II, LLC, which also passed unanimously. Shawn Tyler was absent.
Why the deal was rewritten
Ordinance 833B replaces two earlier versions, Ordinances 833 and 833A. The original plan had the city and the company sharing a sewer certificate of convenience and necessity, the state permit that defines who may serve an area. According to the new ordinance, BVRT II was told during talks with the Public Utility Commission of Texas that the PUC would not approve that dual arrangement.
Under the new version, the city consents to transferring its sewer certificate, No. 20406, to BVRT II. That consent still depends on separate council approval of the filings, and the franchise does not take effect for retail service until the company has its state permits and shows the city it can run the system.
What the company must do
- Build a plant. BVRT II must finance and build a Howe North Wastewater Treatment Plant in the northern part of town, mainly for existing customers, and have it operating within 24 months of acquiring land. Missing that deadline is a breach that could lead the city to end the franchise.
- Leave the pipes with the city. Sewer lines and collection infrastructure stay city property, and new lines built by the company or developers are dedicated to the city.
- Pay the city. The company owes a quarterly franchise fee of $12,500 or 4% of its gross sewer receipts, whichever is greater, and half of any profit from selling treated reuse water. The ordinance lets the company recover the fee from customers through its rates.
- Get its money from customers only. The city pays the company nothing; its revenue comes from rates and fees approved by regulators.
