Resolution - Water Utilities: Consider a resolution authorizing the Mayor to execute a four-year Interlocal Wholesale Water Sales Contract, with Texas Tech University, to serve potable water to a classroom/research facility located outside the City's incorporated boundaries.
Item Summary
During 2017, Texas Tech University (TTU) constructed a classroom/research facility located east of the Texas Tech Research Facility at 1051 East Loop 289 outside of Lubbock's incorporated limits. The facility is part of the East Campus Oilfield Technology Center. TTU contacted the City and requested that the City provide water service to the new classroom facility.
On December 7, 2017, the City executed an Interlocal Wholesale Water Sales Contract with TTU based on a template recommended by the Lubbock Water Advisory Commission. The contract allowed TTU to purchase Lubbock's potable water for 4 years to serve the classroom facility. Since the TTU classroom is located outside the City's incorporated limits, it is considered a wholesale customer.
Wholesale customers are required by ordinance to pay wholesale water rates adopted by the City Council in Section 22.03.085(6) of the City's Code of Ordinances unless the City Council specifically approves other water rate provisions. The contract limits the amount of water that can be purchased to 120,000 gallons each year.
The contract being considered will allow TTU to continue to purchase Lubbock's potable water for an additional 4 years to serve the classroom facility that is located outside the City's incorporated limits. The terms and conditions of the proposed contract are the same as agreed upon in the current contract with TTU.
Fiscal Impact
If TTU uses all of their allocated water for this classroom, the City will receive approximately $940 in metered water revenue annually for the next 4 years.
Staff/Board Recommending
Jesica McEachern, Assistant City Manager L. Wood Franklin, P.E., Division Director of Public Works