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LCRA Board directs staff to negotiate water supply agreement with City of Austin and sets limitations

For Immediate Release: August 24, 2007 12:00 AM

revisions to agreement

Nov. 1 UPDATE: See the LCRA-City of Austin supplement water supply agreement with proposed revisions. The proposed changes are largely in response to public comments received. This version of the document will be considered for approval by the Austin City Council at its meeting on Nov. 8. 

MORE
Aug. 8: Fact sheet on the agreement 

videoVideo on how Austin and LCRA agree on sharing return flows from wastewater facilities


AUSTIN – The LCRA Board of Directors authorized the General Manager to negotiate and execute a supplemental water supply agreement with the City of Austin at its meeting on Aug. 22.

The agreement will establish a framework for LCRA and Austin to plan together for Austin’s water needs beyond 2050. Austin anticipates it will need up to 250,000 acre-feet of water between 2050 and 2100. The partnership between LCRA and the City of Austin will give the entities a forum to discuss alternative water supplies, plan the appropriate timing for developing new water supplies and implement those plans.

“The Board’s action sets clear direction that LCRA will continue to plan for customers throughout the basin while meeting the long-term needs of the City of Austin,” said Karen Bondy, manager of River Services.

The Board adopted limitations to guide the negotiations, which allow for maintaining flexibility to address changing circumstances in the future, ensuring fair means of recovering costs and allowing Austin to pursue alternative water supplies and conservation strategies.

The board resolution included the following limitations:

  1. The agreement must maintain future Board discretion to make decisions regarding water supply development, rates and policy.
  2. The agreement must not restrict LCRA’s ability to continue to plan for and consider its other customer needs, including any implementation of recommendations that may result from the Water Supply Resource Planning effort that is currently under way.
  3. The agreement must allow LCRA to recover from Austin the fair and reasonable cost of service in a manner that is not detrimental to other LCRA customers.
  4. The agreement must establish a framework for evaluating future water supply options and addressing cost recovery while preserving flexibility for both Parties to respond to changing conditions throughout the lengthy term of the agreement.
  5. The agreement must be consistent with the terms set forth in the Settlement Agreement regarding quantity, location and timing of Austin’s use of any water to be provided by LCRA.
  6. The agreement must ensure that Austin will use the water only for its own purposes.
  7. The agreement must allow the City of Austin to pursue alternative water supplies.
  8. The agreement must support the City of Austin’s efforts to implement water conservation.
  9. The terms of the agreement with Austin should reflect terms that we should be willing to offer to any customer seeking a similar arrangement with us for long-term water supply planning and development.

The City of Austin is working with stakeholders, boards and commissions and the City Council, which will vote on the agreement in late September or October.

— Updated November 1, 2007 05:34 PM