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Athens council approves transfer agreement with municipal water authority
Summary
Council unanimously approved a Second Amended Agreement with the Athens Municipal Water Authority to transfer capital assets to the city, establish a 50-year contract with a $300,000 minimum annual payment, and authorize property-closing documents.
City Manager Elizabeth Borstad briefed the council on a Second Amended Agreement with the Athens Municipal Water Authority (AMWA) that would transfer ownership of capital assets — including the surface water treatment plant, raw water intake, and groundwater wells — to the City of Athens and authorize related real-estate closings.
Borstad said the contract would run for 50 years with a review every three years and that AMWA will make a minimum annual payment of $300,000 to the city to support debt service, capital improvements and maintenance; those funds will be held in a separate city account and reported annually to both AMWA and the council. She noted the raw water intake will need reconstruction within the next few years and that the city has the ability to pursue grants and low-interest financing that AMWA cannot.
The agreement contains a provision, based on legal advice citing Section 271.903 of the Texas Local Government Code, that conditions some city obligations on the council's best efforts to appropriate funds in future budgets. After discussion, Councilmember Bill Priestley moved and Councilmember Bryan Barker seconded the resolution authorizing the mayor to execute the Second Amended Agreement and permitting the city manager to sign closing documents. The motion carried unanimously.
The council did not set a further procedural requirement at the meeting; staff will proceed with the closing steps authorized by the resolution.
