O-1998-2234 - Laserfiche WebLink

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. ,. e e WATER CAPACITY PURCHASE AND SALE AGREEMENT This WATER CAPACITY PURCHASE AND SALE AGREEMENT (this "~Agreement") is made and entered into as of the 28th day of April, 1998, between GULF COAST WATER AUTHORITY, a conservation and reclamation district and political subdivision of the State of Texas created pursuant to Article XVI, Section 59 of the Texas Constitution and with the powers under Chapters 49 and 54 Texas Water Code, as amended ("GCWA"), the CITY OF GALVESTON, TEXAS, a municipal corporation located in Galveston County, Texas ("Galveston"), and the LA PORTE AREA WATER AUTHORITY, a conservation and reclamation district authorized and created under Article XVI, Section 59 of the Texas Constitution and acting under Chapters 49 and 54, Texas Water Code, as amended ("LPAWA"). WITNESSETH WHEREAS, The City of Houston, Texas, a municipal corporation located principally in Harris County, Texas ("Houston"), and GCWA, acting for the benefit of Galveston and the City of League City, Texas ("League City") are parties to that certain Cost Sharing Water Project Contract, effective as of April 30, 1987 as amended (the "CGWA Contract"), under the terms of which GCWA purchased, on behalf of Galveston and League City, an equitable ownership interest in the City of Houston Southeast Water Purification Plant (as more fully described in the GCWA Contract, the "Project", but referred to herein as the "Southeast Plant"); and WHEREAS, the Southeast Plant has a maximum production capacity of 80 MGD and GCWA's equity ownership interest entitles it to 26.25% of the production capacity of the Southeast Plant (or 21 MGD) and 10.845% of the pumping capacity of the Southeast Plant (or 24.4 MGD) (collectively, "GCWA's Interest"); and WHEREAS, pursuant to Section 2.01 of the GCWA Contract, GCWA conveyed to Galveston a 76.19% share of GCWA's Interest in the Southeast Plant (16 MGD production capacity) and related pumping capacity (18.40 MGD) ("Galveston's Interest") and to League City a 23.81 % share of GCWA's Interest in the Southeast Plant (5 MGD production capacity) and related pumping capacity (6 MGD); and WHEREAS, Galveston deems it more efficient and desirable to obtain its treated water supply from GCWA's Thomas S. Mackey Water Treatment Plant (the "Mackey Plant"), which is located closer to Galveston; and . WHEREAS, at the request of Galveston, GCWA has agreed to use its best efforts to issue a series of contract water revenue bonds for the purpose of financing an addition of capacity to the Mackey Plant and a pipeline to deliver the water to Galveston and such parties; and WHEREAS, LPAWA, the Clear Lake City Water Authority, Harris County Municipal Utility District No. 55 and League City (through GCWA) (collectively the "Participants" or individually, a "Participant") are present co-owner participants with Houston and others in the Southeast Plant, and each delivered to GCWA and Galveston resolutions in which their governing bodies expressed interest in purchasing a portion of Galveston's Interest in the Southeast Plant; and 1