HomeMy WebLinkAboutResolution - 2061 - Letter Of Agreement - City Of Pampa - Surface Water Purchase - 06/14/1985LJM:js
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Resolution #2061
Agenda Item #44
June 14, 1985
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Letter of
Agreement by and between the City of Lubbock and the City of Pampa for the
purchase of surface water, attached herewith, which shall be spread upon
the minutes of the Council and as spread upon the minutes of this Council
shall constitute and be a part of this Resolution as if fully copied herein
in detail.
Passed by the City Council this 14th of
ATTEST:
anette Boyd, City 5ecrbtary
APPRO D AS TO ENT:
am Wahl, ectfbi of Water Utilities
June 19RS
APPROVED AS TO FORM:
Laura J. Monroe, Assistant City Attorney
,TO: CITY OF LUBBOCK, TEXAS
SUBJECT: Sale of Water by City of Pampa, Texas,
from its allocation from. the Canadian
River Municipal Water Authority
Resolution #
THIS MEMORANDUM is to set forth the agreement between the CITY
OF PAMPA, TEXAS ("Pampa") and the CITY OF LUBBOCK, TEXAS
("Lubbock"), each acting by and through its duly authorized
officer, for the sale by Pampa to Lubbock of surplus water from
Pampa's 1985 allocation from the Canadian River Municipal Water
Authority ("CRMWA") from Lake Meredith.
Pampa agrees to sell to Lubbock, and Lubbock agrees to purchase
from Pampa, 500,000,000 gallons ("initial water") of untreated
water to be delivered to Lubbock at Lake Meredith. Said water
shall be taken by Lubbock no later than December 31, 1985, at which
time this agreement shall terminate.
Lubbock agrees to pay to Pampa, at Pampa, Texas, no later than
September 1, 1985, a lump sum cash consideration of $74,885.00 for
the 500,000,000 gallons purchased hereunder, whether or not the
total amount is taken by Lubbock.
Lubbock further agrees to pay all expenses relating to the
delivery of said water, including, without limitation, all pumping,
chemical and pipeline costs.
No warranty, express or implied, as to the fitness.of any water
to be sold hereunder is made by Pampa.
Pampa grants to Lubbock an option to purchase an additional
500,000,000 gallons of untreated water ("option water") on an
actual take basis. Said option water shall be taken prior to
December 31, 1985. Lubbock agrees to pay to Pampa, at Pampa,
Texas, for the option water at the rate of 14.977 cents per 1,000
gallons (or part thereof) taken by Lubbock. Payment shall be made
no later than January 15, 1986, for the option water taken. Addi-
tionally, Lubbock agrees to pay all expenses relating to the
delivery of said option water, including, without limitation, all
pumping, chemical and pipeline costs.
This agreement is contingent upon:
(1) the approval by the governing body of
Lubbock; and
(2) the approval by the Board of Directors
of CRMWA and the ability of CRMWA to
transport the water'to Lubbock through
the existing pipeline serving Lubbock.
If, because of circumstances beyond the control of Pampa, its
1985 water allocation is reduced by CRMWA so that it does not have
surplus water over Pampa's estimated needs to furnish the amount of
initial water, the lump sum price will be adjusted based on 14.977
cents for the amount of initial water which can be furnished by
Pampa. Likewise, if there is sufficient surplus water to supply
the initial water but not the amount of option water as provided
above, Pampa will notify Lubbock of the amount of option water
available and the amount of option water to be purchased hereunder
will be amended accordingly.
.If this sets forth your understanding of our agreement, please
acknowledge your agreement at the place indicated below and return
three executed copies to us. We will submit this agreement to
CRMWA for its approval and, upon such approval, forward you a fully
executed copy.
Respectfully submitted,
CITY PA T AS
B
Bob liart,, QIty Manager
ACKNOWL DGED AND EED TO this
the day of ,
1985.
CITY OF L , TE S
By!
APPROVED this the 15th day of
July , 1985.
CANADIAN RIVER MUNICIPAL WATER
AUTH0
7 %
B
eneral Manager