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AI# 10565
Regular City Council Meeting
8.11.
03/22/2022:
Information
Agenda Item
Resolution - Water Utilities:
Consider a resolution authorizing the Mayor to execute a Treated Effluent Supply Contract, related to the purchase of effluent water, with Leprino Foods Company of Denver, Colorado.
Item Summary
This item considers a contract between the City of Lubbock and Leprino Foods Company of Denver, Colorado. Leprino Foods will build and operate a large, world-class cheese manufacturing facility on East 19th Street, located within the limits of the City of Lubbock. Leprino Foods will purchase potable water for the manufacturing facility operations as a regular water rate customer. Leprino Foods will also construct and operate an on-site water reclamation treatment facility. This facility will receive and treat reclaimed water from the manufacturing process and discharge treated effluent regulated by the Texas Commission on Environmental Quality (TCEQ). This treated effluent will be treated at a level qualified to full stream-quality standards established by TCEQ. The treated effluent will be discharged into Canyon Lake 6.
This contract binds the City into the purchase of the treated effluent discharged into Canyon Lake 6. The City of Lubbock intends to impound this water in the proposed future Canyon Lake 7, which is identified as a future water supply in the current City of Lubbock Strategic Water Supply Plan.
The City of Lubbock has undertaken tremendous efforts to secure the ownership of water from developed water sources, such as developed stormwater flows and stream quality treated effluent discharges from the Northwest Water Reclamation and the Southeast Water Reclamation Plants. This additional water supply flowing into the proposed Canyon Lake 7 is a positive impact into the future water supply for the City of Lubbock.
Fiscal Impact
Exhibit A in the attached contract details the payment for the Treated Effluent. Initial cost is $.88 per 1,000 gallons, increasing at the same percentage as future Commercial Block 1 water volume rate increases. Upon impoundment in Lake 7, or should the City divert the treated effluent for another beneficial reuse, the rate will be 65% of the weighted average of the City of Lubbock’s ‘cost of water supply’. Funds for payment under the contract will be established in the Operating Budget of Water Utilities.
Staff/Board Recommending
Jarrett Atkinson, City Manager
L. Wood Franklin, P.E., Division Director of Public Works
Attachments
Resolution - Treated Effluent Supply Contract
Agreement and Exhibits - Leprino Effluent Supply Contract
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