| ITEM #: 5. DATE: 03/23/2026 AI #:2796 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVAL OF BULK WATER AGREEMENT WITH LIBERTY UTILITIES |
| STAFF PRESENTER(S): | Barbara Chappell, Water Services Director |
SUMMARY
Agreement with Liberty Utilities (Liberty) for the City of Goodyear (city) to provide bulk water to Liberty, authorizing the sale of up to one million gallons per day for a one-year term with the option to extend for up to three additional years.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Approve the Bulk Water Agreement with Liberty Utilities and providing authorization and direction to the City Manager, or their designee, to take actions and execute documents necessary to carry out the intent of the agreement. (Anthony Dudley, Interim Water Services Director)
FISCAL IMPACT
Liberty will pay the city the monthly base meter fee and published irrigation rates for all bulk water it receives. The Agreement (Attachment A) is anticipated to generate approximately $1 million in annual revenue for the water fund, and the revenue will completely offset the costs of providing the bulk water to Liberty. In addition, Liberty will provide long-term storage credits for water purchased.
BACKGROUND AND PREVIOUS ACTIONS
Liberty, as part of its water supply strategies, has requested that the City provide Liberty up to one million gallons per day of potable water on an as-needed basis. The agreement includes a provision that requires Liberty to assign to the City long-term storage credits equal to the amount of water delivered by the City to Liberty.
Council last approved a Bulk Water Agreement on June 6, 2022 (the “2022 Agreement”). The initial term of the 2022 Agreement was three years with an option for two one-year renewals for a potential total term of five years. Liberty did not request that the City renew the 2022 Agreement prior to the June 6, 2025, expiration date. With the expiration of the 2022 Agreement, a new agreement is required.
The new agreement is for one year with an option to renew for three additional years. The option to renew is subject to the written agreement of both the City and Liberty.
Council last approved a Bulk Water Agreement on June 6, 2022 (the “2022 Agreement”). The initial term of the 2022 Agreement was three years with an option for two one-year renewals for a potential total term of five years. Liberty did not request that the City renew the 2022 Agreement prior to the June 6, 2025, expiration date. With the expiration of the 2022 Agreement, a new agreement is required.
The new agreement is for one year with an option to renew for three additional years. The option to renew is subject to the written agreement of both the City and Liberty.
STAFF ANALYSIS
The City has sufficient water production capacity to provide Liberty with up to one million gallons per day of potable water if the full four-year term of this agreement is exercised. Both Liberty and the City understand and agree 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’s water service area.