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<br />• <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: 9/28/87 <br />Requested By: Robert T. Herrera <br />XX Report <br />Exhibits: <br />Department: Administration <br />Resolution <br />Ordinance <br />SUMMARY & RECOMMENDATION <br />The La Porte Area Water Authority is in need of interim financing <br />to perform the planning efforts needed to supply treated surface <br />water to its clients. Texas Water Development bond monies for <br />engineering design work will not be available to the La Porte Area <br />Water Authority until they review a complete set of detailed <br />drawings showing how the Authority will transmit treated water to <br />La Porte, Shoreacres, BayMUD, and Morgan's Point. <br />The financing requested is in the amount of $400,000 over an 18 <br />month payback schedule with an .attractive interest rate paid only <br />on the drawn balance beginning on the 90th day after initial <br />funding. This line of credit was arranged through the joint <br />venturing of Bayshore National Bank and the La Porte State Bank. <br />The funds will pay for tasks associated with transporting treated <br />water from the Southeast Water Purification Plant to the take <br />points of the clients of the La Porte Area Water Authority. The <br />City is asked to cosign this note as the Authority has no <br />collateral at this time. However, this is the first step in <br />developing a credit history and should be viewed as a positive <br />step. As per the bylaws governing the Authority the City Council <br />of La Porte must approve all contracts the Authority enters. <br />Action Required by Council: <br />Availability of Funds: <br />General <br />Capital <br />Other <br />Account Number: <br />Fund <br />Improvement <br />Water/Wastewater <br />General Revenue Sharing <br />Funds Available: _. YES _ NO <br />Approved for City Council Agenda <br />~~ C ~i , ~- ~ 2 ~ -'sc~l <br />Robert T. Herrera DATE <br />City Manager <br />