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<br />e.., <br /> <br />e.. <br /> <br />designed fOr 1.5 times the original capacity P!Jrchased. The existing system can <br />deliver 6.3 million gallons per day, or a little over two million GPO more that ~xisting. <br /> <br />With the reduction in water rates last year from the City of Houston, the Authority has <br />set aside the difference in a capital reserve' account With the purchase price due <br />three years after initial purchase, the Authority has ~e potential to pay cash for the <br />additional capacity. Additionally, GCWA has indicated that they are willing to sell. <br />revenue bonds for the purchase price, with debt service to be paid by the purcl:laser. <br /> <br />I feel that firm, existing capacity available from GCWA is better from a long-term <br />perspective.). GCWA held. a meeting on Friday, August 15, 1997 to entertain <br />interest in purchase of capacity. They indicated a resolution from the governing body <br />of each interested purchaser be forwarded to GCWA no later than September 15, <br />"1997. I recommend that'the La Porte Area Water Authority indicate its intent to <br />. purchase two and one-half (2 112) million gallons per day of capacity from GCWA by <br />resolution (copy attached). <br /> <br />The resolution will not bind the Authority to the purchase. It will, however, allow <br />, GCWA to plan for its upcoming bond sale and expansion of existing facilities for the <br />City of Galveston. A formal contract is anticipated once the City of Galveston has <br />. formally accepted offers to purchase its capacity in the SEWPP. This is the first step - <br />in the process to secure additional long-term capacity for the Authority. <br /> <br />. Page 2 <br />