City’s new water contract to save $105M over 30 years
What happened: The Midland City Council met July 22.
Why it matters: The council renegotiated a water contract projected to save more than $100 million, deferred action on the $16.2 million Midland Development Corporation (MDC) budget, and weighed business versus homeowner property rights.
Approved spending:
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$666,205: Three-year GPS/camera contract consolidates departments and cuts costs compared to previous individual contracts.
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$614,146: Server upgrades approved with enhanced security and five years of licensing/support.
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$1,519,399: New video board at Momentum Bank Ballpark approved; city now retains 100% of ad revenue.
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$263,550: HVAC system replacement approved in the RockHounds clubhouse after three MLB complaints.
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$317,244: Edgewood tank and pump station modifications to connect T-Bar water as backup if the primary plant fails.
Key points:
- Water contract: Council approved a new 30-year contract with the Colorado River Municipal Water District (CRMWD) starting in 2030, reducing take-or-pay from 17.5 million to 10 million gallons per day, with a 10-year extension option. The deal adds mutual force majeure protection and audit rights, intended to protect the city. The city estimates $3.5 million in annual savings, $105 million over 30 years, or $140 million if extended.
The contract also prevents the city from being billed for capital projects that don’t benefit Midland, unlike the current agreement. Mayor Lori Blong said that’s a key benefit because “they don’t get to send us a bill for things that don’t impact us and our ratepayers.”
Utilities Director Carl Craigo said the contract frees up 7.5 million gallons per day of unused water to help other CRMWD cities. “It’s really helping the entire region,” he added.
- MDC budget: Council deferred the $16.2 million budget after Councilman John Burkholder requested more time to review. During the lengthy discussion, multiple council members discussed the value added to the community by the MDC.
Blong emphasized that MDC projects have benchmarks in place that must be met before funds are dispersed, saying this safeguard has protected the city. She also noted that state law tightly restricts how MDC funds can be used, requiring them to support business expansion and be provably tied to economic development outcomes.
Councilman Brian Stubbs noted that the MDC now directs 35% of its budget to infrastructure projects, up from 30% in previous years. Councilwoman Amy Burkes and Burkholder echoed support for this increase. Stubbs said the MDC is effective, cash flow positive, and debt free.
“They pay for themselves,” said Councilman Jack Ladd, who added the return on investment changed his initial skepticism.
- RockHounds upgrades: Council approved replacing the 11-year-old video board with obsolete parts, allowing the city to retain all advertising revenue. Council also approved HVAC upgrades after three MLB complaints, noting the unit requires a specialized system to avoid carbon dioxide buildup. The project received only one bid, for the second time.
City staff said 92% of the bid was equipment. “I believe [city staff] did your due diligence to make sure the price is right,” Burkholder said. He added that even if the city could save money by rebidding the project a third time, it wouldn’t be worth the risk of potentially losing the RockHounds’ MLB affiliation.
- Live Oak venue: Council reviewed outdoor music and alcohol permits for Live Oak venue following neighbor noise complaints. Blong, Burkholder, and Stubbs said the issue was a difficult balance between business and homeowner property rights. Ultimately, council approved the permits with a noise limit on the outdoor music permits and scheduled six-month reviews to follow up with neighbors.
- Vision Zero: After one year, the initiative saw a 19% drop in serious crashes despite 3% population growth. The city secured $8.6 million in federal funding and identified new enforcement and infrastructure priorities following increases in pedestrian and cyclist injuries.
- IT savings: The IT department reported $1.4 million in fiscal year 2025 savings through software cancellations, renegotiated contracts, and consolidation. The savings funded new citizen permitting and reporting platforms without a budget increase.