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Regular City Council Meeting
Resolution - City Manager:
Consider a resolution authorizing the Mayor to execute an Interlocal Wholesale Water Sales Contract by and between the City of Lubbock and the City of Wolfforth for the provision of wholesale water.
The resolution and Contract for consideration is between the City of Lubbock and the City of Wolfforth whereby Lubbock agrees to sell a defined quantity of potable water to Wolfforth. The City of Lubbock requires that any water sold outside the City limits be sold only to another qualified political subdivision and per existing ordinance, the billing rate is set at an amount equal to 1.5 times the current wholesale rate, as such may be changed from time to time. The proposed contract meets these requirements.
The term of this contract is for 25 years, beginning on June 1, 2023. Water volumes are capped and in two steps. Step one is for the first three years, with a maximum of 500,000 gallons per day. Step two begins either on June 1, 2026 or earlier if certain Wolfforth infrastructure is completed prior to June 1, 2026, at a maximum of 750,000 gallons per day. All infrastructure and regulatory costs associated with this contract are at Wolfforth’s expense. The billing rate is 1.5 times the current in-city wholesale rate, which may be changed in the future. The maximum volume associated with this contract has been evaluated by water system modeling and City staff and does not place a burden on the existing Lubbock water system. For comparison, at the maximum volume, the contract represents approximately 2.1% of Lubbock’s average daily water use. By contract, Wolfforth agrees to conservation and drought contingency requirements/reductions equal to Lubbock’s.
The maximum first year revenue to Lubbock under the contract is approximately $1.3 million. There is no significant additional expense to Lubbock.
W. Jarrett Atkinson, City Manager
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