Regular City Council Meeting
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Regular City Council Meeting
Resolution - Water
Consider a resolution authorizing the Mayor to execute the Third Amendment to the Raw Water Lease, between the City of Lubbock and the Lake Alan Henry Water District.
In 2003, the 78th Texas Legislature passed Senate Bill 1941 creating the Lake Alan Henry Water District (LAHWD), a special law conservation and reclamation district. On May 8, 2008, the City of Lubbock executed a 20-year contract with the LAHWD and the South Garza Water Supply (SGWS) to provide up to 520 acre-feet (169 million gallons) of raw water each year to developments surrounding Lake Alan Henry within the LAHWD service area. Lubbock's raw water is supplied to SGWS, a private water system operating under a contract with LAHWD. SGWS constructed a pump station, transmission lines, a surface water treatment plant, and distribution lines, to provide treated water to lot owners in the Northridge Development located along the north side of the Lake. The SGWS began pumping raw water from Lubbock's intake structure in December 2009.
On November 1, 2018, the City Council executed a new raw water lease between the City and the LAHWD. The contract with LAHWD was designed to replace the existing raw water contract. LAHWD plans to purchase the SGWS facilities and extend the water system to other developments within their service area on both the north and south side of the Lake.
On October 21, 2019, the City Council executed the First Amendment to the Raw Water Lease. The amendment was necessary in order to meet the requirements of the U.S. Department of Agriculture's (USDA's) grant and low interest loan program, which will fund LAHWD's project. The amendment provided the City with the option to renew the contract for an additional 10 years (from 35 to 45 years).
On September 22, 2020, the City Council executed the Second Amendment to the Raw Water Lease. The amendment was necessary because the Original Raw Water Lease required the LAHWD to finalize the SGWS agreement within 730 days or by November 1, 2020. The amendment extended the deadline for LAHWD to execute the SGWS agreement until November 1, 2021.
This Third Amendment to the Raw Water Lease is needed in order to provide the LAHWD additional time to finalize the agreement to purchase the SGWS. Due to USDA grant/loan program delays, the LAHWD will not meet the contractual deadline of November 1, 2021, to finalize the SGWS agreement. Therefore, this amendment extends the deadline for LAHWD to execute the SGWS agreement for another 365 days or until November 1, 2022.
Jesica McEachern, Assistant City Manager
L. Wood Franklin, P.E., Division Director of Public Works
Contract-LAHWD- RawWater- A3
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