Resolution - Water Utilities: Consider a resolution authorizing the Mayor to execute a new five-year Interlocal Water Sales Agreement, and all related documents, with the Lubbock Cooper Independent School District - Woodrow Campus, for the continued purchase of water from the City's potable water system.
Item Summary
In June 2006, the City of Lubbock entered into a 10-year water supply contract with the Lubbock Cooper Independent School District (Cooper ISD), to provide water services to the Woodrow Campus which is located several miles south of the city limits near Woodrow Road and Highway 87. Previously, Cooper ISD was supplying the Woodrow Campus with water from wells they owned and operated. However, due to water quality issues, it became necessary to switch to Lubbock's potable water supply instead of continuing to use their wells for domestic water usage. They continue to irrigate with their wells.
In May 2016, Lubbock continued to provide water to Cooper ISD by entering into a 5-year wholesale water supply contract. The contract was based on an Interlocal Wholesale Water Sales Contract template recommended in February 2013 by the Lubbock Water Advisory Commission.
This new contract being considered updates the terms and conditions of the existing contract, and allows Cooper ISD to continue to purchase the City's water for 5 more years. The new contract contains the following provisions:
• It reduces the limits on the amount of water that can be used from 30 million to 25 million gallons each year. • It acknowledges the new Point of Delivery located at 130th Street and Avenue P. • It requires Cooper ISD to pay two times (2X) their normal rate for every gallon that exceeds the annual allocation. • It prohibits the use of water outside of the expanded Woodrow Campus. • It continues to require Cooper ISD to enact water conservation and drought restrictions that are at least as stringent as the City's restrictions.
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. Wholesale customers pay 50% more for their water than commercial customers within the city limits pay, since Lubbock citizens have paid for expensive water supply projects necessary to continue meeting the City's water demand. However, the City Council has previously approved commercial rates for Cooper ISD's Woodrow Campus since schools inside the city limits pay a flat unit rate,resulting in Cooper ISD's Woodrow Campus paying more for their water at the Woodrow Campus than schools inside the city limits pay.
The Woodrow Campus used 7.7 million gallons of water in FY 2019-20. Over the past 7 years, the Woodrow Campus peak annual usage was 12.7 million gallons. The City used a total of 12.8 billion gallons of water in Fiscal Year 2019-20. The amount of water the City supplies to Cooper ISD on an annual basis, represents less than 0.06% of the City's total usage.
Fiscal Impact
Staff/Board Recommending
Jesica McEachern, Assistant City Manager Lubbock Water Advisory Commission