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ITEM #: 7.
DATE: 06/06/2022

AI #:900
CITY COUNCIL ACTION REPORT
 
SUBJECT: APPROVE A BULK WATER AGREEMENT BETWEEN LIBERTY UTILITIES (LITCHFIELD PARK WATER & SEWER) CORP. (LIBERTY) AND THE CITY OF GOODYEAR
 
STAFF PRESENTER(S): Barbara Chappell, Deputy Public Works Director

SUMMARY

Bulk water agreement between Liberty and the city of Goodyear whereas the city of Goodyear will provide and Liberty will receive and pay for up to one million gallons per day for three years with an option of two one year renewals.

Recommendation

Approve the Bulk Water Agreement between Liberty and the city of Goodyear. (Barbara Chappell, Deputy Public Works Director)

FISCAL IMPACT

Liberty will provide a 12-inch meter, pay the city the monthly base meter fee and published irrigation rates for all water they receive. The Agreement is anticipated to generate between $1.5M and $3.0M in annual revenue for the water fund which will offset the costs of providing water.

BACKGROUND AND PREVIOUS ACTIONS

Liberty, as part of its water supply strategies, has requested that Goodyear provide up to one million gallons per day of potable water to Liberty pursuant to the terms of this Agreement. 

STAFF ANALYSIS

Goodyear presently has sufficient water production capacity to provide Liberty with up to one million gallons per day of potable water.  The Parties understand and agree, however, that the amount of water available to Liberty under this Agreement is intended to be a temporary arrangement and that the amount may be decreased depending on demands for water by customers within the city of Goodyear’s service area.

The Agreement includes the provision that Liberty shall assign to Goodyear long term storage credits equal to the amount of water delivered by Goodyear to Liberty.

Goodyear will assist Liberty to ensure a reliable water supply that will support their current and committed customers while they develop new wells and install treatment.

This Agreement is being reviewed by the Arizona Department of Water Resources (ADWR). The term of the Agreement is three years from the date it is fully executed or the date ADWR approves the Agreement, whichever is later.  It may be extended for up to two additional years upon the written Agreement of Liberty and Goodyear.

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