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<br />DRAFT <br /> <br />f:attomeyreswrok\currentlPrepayment of Water Purchase-Pat Mayse Reservoir <br />February 21, 2007 <br /> <br />RESOLUTION NO. <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />AUTHORIZING THE CITY MANAGER TO PROPOSE A CASH SETTLEMENT <br />TO PREPAY THE PAT MAYSE RESERVOIR PURCHASE CONTRACT FOR <br />WATER RIGHTS; MAKING OTHER FINDINGS AND PROVISIONS RELATED <br />TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. <br /> <br />WHEREAS, the City of Paris has entered into several water contracts with the U.S. Corps of <br />Engineers for water rights at the Pat Mayse Reservoir, Lamar County, Texas; and, <br /> <br />WHEREAS, pursuant to these water contracts the City of Paris owes the U. S. Corps of Engineers <br />the following amounts as of March 31, 2007: <br /> <br />1. Principal payoff on space one <br />2. Principal payoff on space two <br />3. Principal payoff on spaces three, four, & five <br />4. Accrued interest on above $1,925,722 principal <br /> <br />$ 208,515.69 (paid current) <br />$ 370,399.16 (paid current) <br />$ 1,925,722.00 <br />$ 2,864,691.22; and, <br /> <br />WHEREAS, the amount of accrued interest on the outstanding principal of$1 ,925,722.00 calculated <br />at 3.137% compounded annually since 6-15-78 is $2,864,691.22, but using the same rate with simple interest <br />for the same time period would only be $1,739,301.20; and, <br /> <br />WHEREAS, it would be in the best interest of the City of Paris and its citizens to authorize the City <br />Manager to make a cash settlement proposal to the U. S. Corps of Engineers in the form of the letter attached <br />hereto and incorporated herein as Exhibit "A" to reduce the interest charges paid by the City under these <br />water contracts; <br /> <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />PARIS, PARIS, TEXAS: <br /> <br />Section 1. That the findings set out in the preamble to this resolution are hereby in all things <br />approved. <br /> <br />Section 2. That the terms and conditions of the proposal letter attached hereto as Exhibit "A" is in <br />the best interest of the City of Paris and the its citizens and is in all things approved, and the City Manager <br />of the City of Paris is hereby authorized to execute said proposal on behalf of the City of Paris. <br /> <br />Section 3. That this resolution shall be effective from and after its date of passage. <br /> <br />PASSED AND APPROVED this 26th day of February, 2007. <br /> <br />Richard Manning, Mayor <br /> <br />r - . <br />