Title
Approving a firm water supply contract with the Lower Colorado River Authority for a Maximum Annual Quantity of 24,000 acre-feet per year and authorizing the City Manager to execute the same.
Summary
The City’s current water supply contract allows for a maximum of 12,000 acre-feet per year and the City will be very close to that limit within the next 5 years given current growth projections and water needs for the Pflugerville water system. City staff has been working with the Lower Colorado River Authority (LCRA) with the City’s third-party legal counsel, Ed McCarthy, to amend our current water supply contract to expand our water supply to serve the future growth of the City of Pflugerville’s water system.
This amended water supply contract will allow for a Maximum Annual Quantity (MAQ) of 24,000 acre-feet per year which will be coupled with the expansion of the pump station and the second raw water line that transports water from the current Colorado River diversion point that is currently under design. This increased MAQ and expansion of the pump station and pipeline will allow the City to continue to serve the City’s water customers while also addressing peak demand during the summer months to ensure Lake Pflugerville is constantly at a near full level.
As part of this agreement, the City will be responsible for paying LCRA for the reservation of this water for use by Pflugerville. This Reservation Fee is equivalent to 50% of the firm water rate that is set by LCRA annually. The current firm water rate is $155 per acre-foot which would equal a minimum of $930,000 annually that the City would need to pay LCRA in order to reserve the additional 12,000 acre-feet for the City’s use.
This item is supported by the Infrastructure pillar of the Strategic Plan.
Prior City Council Action
N/A
Deadline for City Council Action
Action is requested on June 28, 2022
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes __ No _X_ N/A __
Amount: _$930,000 annually__
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A __ Required _X_ Date Completed: _6/6/22____
Supporting documents attached:
LCRA Firm Water Contract
Recommended Action
City staff recommends authorizing the City Manager to approve a firm water supply contract with the Lower Colorado River Authority for a Maximum Annual Quantity of 24,000 acre-feet per year and authorizing the City Manager to execute the same.