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• • <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: February 21, 2000 <br />Requested By: Robert T. Herrera Department: Administration <br />Report Resolution XXX Ordinance <br />Exhibits: Ordinances Approving Agreements <br />Sample Excess Rebate Water Capacity Purchase and Sale Agreement <br />SUMMARY & RECOMMENDATION <br />The La Porte Area Water Authority (LPAWA) owns the right to purchase 3.6 Million Gallons per Day (MGD) of <br />Interim Expansion Capacity at the Southeast Water Purification Plant (the "Plant'). The Authority intends to purchase <br />0.6 MGD of this capacity, and sell the rights for the remaining 3-MGD to interested Co -Participants at the Plant by <br />means of Interlocal Agreements. The Authority, with the concurrence of the City Council, has set the minimum value of <br />these rights at $0.85 per gallon. <br />Three Co -Participants have expressed an interest in purchasing these rights. At a meeting on February 11, 2000, they <br />informed the City that they would each be interested in purchasing 1 MGD each, at the minimum price of $0.85 per <br />gallon. <br />The attached Excess Rebate Water Capacity Purchase and Sale Agreement is intenders to convey 1 MGD of the Authority's <br />right to purchase Interim Expansion Capacity at the Plant to each of the three Co -Participants, for a total sale of 3 MGD. <br />The total sales price is $2,550,000, with each entity paying $850,000. Terms are 40% downs, payable by February 29, <br />2000. The balance is due by June 30, 2000. Upon request, the Authority may extend the final payment date to October <br />31, 2000, and the balance will accrue interest from June 30, 2000 at 5.5%. The City Council of the City of La Porte is <br />required by the Authority's enabling legislation to approve all contracts entered into by the Authority. <br />Action Required by Council: Approve Ordinances authorizing the Mayor to execute a Interlocal Excess Rebate Water <br />Capacity Purchase and Sale Agreement with the Cities of Friendswood and Pasadena and the Clear Lake City <br />Water Authority for a total price of $2,550,000. <br />Availability of Funds: <br />_ General Fund_ Water/Wastewater <br />_ Capital Improvement General Revenue Sharing <br />Other <br />Account Number: N/A Funds Available: YES NO <br />Approved for City Council Agenda <br />(2j.k i a-i(v a000 <br />Robert T. Herrera Date <br />Citv Manager <br />