1997-10-20 Special Called Regular and Workshop Meeting of City Council

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e 'e, tA PORTE AREA WATER AUTHORITY I i' Memo To: LPAWA Board Members From: Ro)aert T. Herr~a" General Manager . .~~-t \.. ~~'r" . CC: John Joems, Assistant City Manager Date: 08/19/97 Re: Purchase of Additional Capacity - SEWPP The Gulf Coast Water Authority (GCWA) is interested in selling the City of Galveston's ownership in the Southeast Water Purification Plant GCWA currently owns, in Galveston's name, sixteen (16) million gallons per day of capacity in the PI~nt. The proposed sale pri.ce is $1.1688 per gallon (LPAWA's cost in 1986 was approximately $1.1~ per gallon). GCWA is willing sell this capacity now, with the .caveat that treated water will not be available from the Southeast Plant for approximately three years, to give them time to expand the existing Texas City Plant VVhen completed, Galveston Will receive its water.from the Texas City Plant However, the purchaser will not have to pay for.the capacity until water is made available. The City of Houston is cu~ntly planning for an interim expansion at the Southeast Plant,. but this additional capacity will come from a rating increase for existing facilities, with some modification, subject to approval by the TNRCC. Estimated cost is $0.40 per gallon, and. additional unknown costs associated With delivery of additional raw water from 'CWA However, this interim capacity will be subjed to continued approval of the TNRCC. Should they change acceptable filter flow rates, the interim capacity could disappear. The City of La Porte is currently using approximately 80 % of its Capacity at the plant Both Morgan's Poim ~nd Shoreacres. are cUrrently using almost 100 % of their capacity. It is clear that additional capacity is necessary to ensure and adequate water supply for the Bayshore area In the future. The Authority currently owns 4.2 million gallons per day of capacity. The Authority's transmission system was . Page 1