SUBJECT
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Discussion with possible action directing the City Manager to negotiate a Regional Water Transportation Agreement with Webb County governing the transportation of water through the City's utility system, including transportation charges and full cost recovery consistent with the City's adopted utility rates and ordinances for the use of City water, treatment facilities, transmission infrastructure, and related utility services, operational responsibilities, water quality requirements, maintenance responsibilities, emergency operations, liability allocation, and other related implementation provisions, and to return the proposed agreement to the City Council for future consideration.
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VIVA LAREDO PLAN ALIGNMENT
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PREVIOUS COUNCIL ACTION
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BACKGROUND
As development of the regional supplemental water supply project continues, water may ultimately be transported through portions of the City's existing treatment, transmission, storage, and distribution system to serve Webb County customers, including the Highway 59 colonias and other future regional service areas.
Management recommends negotiating a separate Regional Water Transportation Agreement between the City of Laredo and Webb County to govern these future operational relationships.
The proposed agreement will establish the terms governing transportation of water through the City's utility system, including transportation charges, operational responsibilities, water quality requirements, maintenance responsibilities, emergency operations, metering, liability allocation, and other implementation provisions necessary to protect the City's utility system and ratepayers.
The agreement will also establish full cost recovery, consistent with the City's adopted utility rates, ordinances, and applicable policies, for the use of City water, treatment facilities, transmission infrastructure, storage facilities, pumping capacity, and related utility services. Should City water be utilized during any interim period before regional supplies become operational, the agreement will provide an appropriate methodology to ensure the City is fully compensated for all water supplied and utility services provided.
Separating these operational responsibilities into a stand-alone agreement allows transportation, utility operations, and cost recovery to be negotiated independently of the regional policy, governance, and wholesale purchase agreements while preserving flexibility as the project evolves.
Following negotiations, the proposed Regional Water Transportation Agreement will be presented to the City Council for future consideration.
COMMITTEE RECOMMENDATION
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STAFF RECOMMENDATION
recommendation
Authorize the City Manager to negotiate a Regional Water Transportation Agreement with Webb County and return the proposed agreement to the City Council for future consideration.
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Fiscal Impact
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FINANCIAL IMPACT:
None at this time. Future transportation charges, utility service charges, and cost recovery methodologies will be presented to the City Council as part of the negotiated agreement