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Hot Springs moves to buy 2 million gallons-per-day of storage from Hot Springs Village
Summary
The city proposed purchasing 2,000,000 gallons-per-day of storage rights from Hot Springs Village for $42,168.57 per year, increasing the city's allocation in the Mid Arkansas Water Alliance from 23 to 25 mgd; the agreement requires signoff by all alliance participants and will be on the March 4 agenda.
City staff recommended purchasing 2,000,000 gallons per day of water storage rights from Hot Springs Village under the Mid Arkansas Water Alliance reallocation agreement.
City Manager Bill Burrow said the original Mid Arkansas Water Alliance allocation from Lake Ouachita totaled 30,000,000 gallons per day (23 mgd for the City of Hot Springs, 2 mgd for Hot Springs Village, 5 mgd for North Garland County Water). Hot Springs Village offered to sell its 2 mgd allocation; the city would increase to 25 mgd and North Garland County would retain 5 mgd. Burrow said Mid Arkansas Water Alliance and Hot Springs Village boards have approved the reallocation and that North Garland County will consider it at its meeting; the city is to sign the assignment and reallocation agreement as well.
The annual cost of the reallocation was stated as $42,168.57 (covering storage and O&M). Burrow told the board staff recommends moving forward and noted, "we'll never have an opportunity to purchase 2,000,000 gallons a day of water storage rights at this cost again." The agreement (R-25-45) will be presented for action on March 4.
