The McAllen Public Utility (MPU) Board voted Oct. 16 to authorize the utility’s general manager to enter into a wholesale water service contract with the City of Mission.
Board action and terms: Assistant General Manager JJ Rodriguez told the board the draft contract mirrors MPU’s existing wholesale agreements with other neighboring cities and includes an initial allocation and an agreed wholesale rate. Rodriguez said the proposed rate in the contract is $2.25 per 1,000 gallons. Staff said the contract provides a 50,000 gallons-per-day allocation (as described at the hearing) and contains standard force‑majeure and termination provisions to protect MPU in the case of drought or other supply constraints.
Vote and staff recommendation: MPU staff recommended approval and the board moved and passed a motion to authorize the general manager to execute the contract. The board’s roll call vote was not recorded individually in the public remarks; the chair called for the voice vote and announced the motion passed.
Related contract closeout: At the same meeting the board also approved final reconciliation for the Manhole Rehabilitation 2025 project (Southern Trenchless Solutions), which produced a net contract credit of $141,803.20 and extended contract time by 52 calendar days; the board accepted the project as complete.
What remains: Staff said the Mission contract includes renewal language and force‑majeure protections; MPU officials said they will work with Mission on an additional northern interconnection point in the future. The contract documents will be executed per the board’s authorization.
Provenance: The board discussion and motions were reported from the MPU public meeting transcript (3A agenda item) and the manhole final reconciliation presentation (3B), both on Oct. 16.