2000-02-21 Special Called Regular Meeting and Workshop Meeting

Browse Search

• • REQUEST FOR CITY COUNCIL, AGENDA ITEM Agenda Date Requested: Febnlary 21, 2000 Requested By: Robert T. Herrera Department: Administration Report Resolution XXX Ordinance Exhibits: Ordinance No. 2000- Cost Sharing Agreement Southeast Water Purification Plant SUMLMARY & RECOAUKENDATION The La Porte Area Water Authority (Authority) owns 4.2 Million Gallons per day (MGD) of capacity at the Southeast Water purification Plant (Plant). Additionally, the Authority has purchased an additional 3 MGD of capacity from the City of Galveston, with the capacity conveyed to the Authority when an alternative water source under construction by the Gulf Coast Water Authority is completed, estimated in March 2001, for a total capacity of 7.2 MGD. The City of Houston has planned an Interim Expansion of the Plant from 80 MGD to 120 MGD. The Authority has the contractual right to purchase up to 3.6 MGD of the Interim Expansion Capacity. The Authority has determined that it needs an additional 0.6-MGD to provide water to its customers over the next 40 years, and has sold the rights to purchase the remaining 3 MGD of Interim Expansion Capacity to other interested Co -Participants. The Authority has also determined the need to purchase additional Pumping Capacity at the Plant. Finally, certain repairs to the existing facility are necessary, with costs apportioned to each Co -Participant according to their percentage of ownership. The City of Houston has prepared a new Cost Sharing Agreement for this expansion and repair, replacing the existing Cost Sharing Agreement. In addition to changes in capacity, the Agreement simplifies administration of the Agreement, as well as giving the Co -Participants more voice in the operation of the Plant. The total estimated cost to the Authority for its share of the repair and expansion project is $1,009,453. This cost is offset by the sale of the rights to purchase additional capacity to other Co -Participants for $2,550,000. The Authority has approved the new Agreement. The City Council of the City of La Porte is required by the Authority's enabling legislation to approve all contract entered into by the Authority. Action Required by Council: Approve Ordinance No. 2000 authorizing the Mayor to execute a Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended) with the City ofHoustan for an estimated cost of $1,009,453. Availability of Funds: _ General Fund_ Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: N/A Funds Available: YES NO Approved for City Council Agenda Robert T. Herrera Date City Manager