Amarillo City Council approves the non-binding CRMWA II memorandum of understanding, 4-0

Item 6.5: on a motion by Councilmember David Prescott, seconded by Councilmember Les Simpson, the council approved the Memorandum of Understanding between the City of Amarillo and CRMWA 4-0 (ayes: Cole Stanley, Tim Reid, David Prescott, Les Simpson; absent: Don Tipps). The item asked the council to authorize the Mayor to execute the non-binding MOU, as ten other member cities were also asked to do.^[1][2]

The City's agenda summary says the need for CRMWA II is driven by the long-term decline in Lake Meredith's reliability and water quality, aging infrastructure and growing demand; that CRMWA II would raise CRMWA's groundwater delivery capacity from 65 MGD to 112 MGD; and that the MOU reflects consensus reached at a January 2026 member-city roundtable.^[2]

The agenda item's funding summary states: "The City of Amarillo annual contribution will increase to help prepare our budget over time for the eventual large CRMWA II construction costs. Our increase payments between now and construction will go towards our share of any CIPs that CRMWA builds that the City of Amarillo benefits directly from, as well as designing the CRMWA II project to make it ready for construction." It gives no dollar amount.^[2][4]

The MOU, made under the Interlocal Cooperation Act among CRMWA and the cities of Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O'Donnell, Pampa, Plainview, Slaton and Tahoka, states the parties agree CRMWA II should be operational by the end of 2038; that construction would take about four years, requiring CRMWA to issue construction debt in 2034; that CRMWA should increase its Capital Improvements Plan budget each year starting October 1, 2026 and use it for critical infrastructure improvements and CRMWA II design, prioritizing the critical improvements; and that CRMWA will discuss CRMWA II and the CIP at each April board meeting at a minimum. The MOU is non-binding, takes effect on the date of the last signature and lasts until CRMWA II is operational.^[2]

The MOU states that each member city has rights to a defined allocation of CRMWA's water supply and system capacity, and that "each Member City's city council is required to approve CRMWA's debt issuances."^[2]

Drew Satterwhite: Estimate: presenting to the council, CRMWA General Manager Drew Satterwhite put the cost of CRMWA II at about $1.2 billion, of which about $450 million would be the City of Amarillo's portion, and estimated that Amarillo uses about 55% of CRMWA's supply. He said the project would include 70 miles of 72-inch pipeline, additional wells and two pump stations, and would take about eight years to complete if all member cities approve.^[3]

Cole Stanley: Mayor Cole Stanley said the existing line is "a six-foot pipe that's concrete that's underground under high-pressure conditions and it's over 50 years old and it is a single point of failure," and that "having an alternate line and opening up the additional well field and capacity is what the future of Amarillo needs."^[4]

Cost estimates for CRMWA II differ by source, date, price basis and scope.

Sources describe the CRMWA II pipeline length and number of pump stations differently.