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AI# 10825
Regular City Council Meeting
4.19.
06/28/2022:
Information
Agenda Item
Resolution - City Manager:
Consider a resolution authorizing the Mayor to execute a Memorandum of Understanding, on behalf of the City of Lubbock, with Palisade Pipeline, LLC, for lease of property and purchase of reclaimed water from the City's Southeast Water Reclamation Plant.
Item Summary
Palisade Pipeline, LLC, desires to purchase reclaimed water produced by the City's Southeast Water Reclamation Plant. The purpose of the attached Memorandum of Understanding (MOU) is to set forth certain expectations of discussion and negotiation between the City and Palisade, regarding the potential purchase by Palisade of up to 6 million gallons per day (MGD) of reclaimed water and the lease of real property. The term of the MOU is for a period of 12 months. This time period, called the exclusivity period, will allow Palisade to conduct its due diligence and negotiate the terms of the Reclaimed Water Use Agreement (Agreement) with the City. Palisade will pay to the City $120,000 for the 12-month exclusivity period.
In addition to establishing the term for the exclusivity period, the MOU sets forth the general terms and intent of the Agreement negotiations to date. Both Palisade and the City agree to further negotiate in good faith toward a final agreement. Staff recommends approval of this Memorandum of Understanding with Palisade Pipeline, LLC.
A copy of the MOU is available for review in the City Secretary's Office.
Fiscal Impact
Revenue of $120,000 per year to the Water/Wastewater Fund
Staff/Board Recommending
Jesica McEachern, Assistant City Manager
Attachments
Resolution
Memorandum of Understanding
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