2007-030 RES-Aut. the City Manger to propose a cash settlement to prepay the Pat Mayse Reservoir Purchase contract for water rights

Home Browse Search

RESOLUTION N0. 2007-030 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE CITY MANAGER TO PROPOSE A CASH SETTLEMENT TO PREPAY THE PAT MAYSE RESERVOIR PURCHASE CONTRACT FOR WATER RIGHTS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris has entered into several water contracts with the U.S. Corps of Engineers for water rights at the Pat Mayse Reservoir, Lamar County, Texas; and, WHEREAS, pursuant to these water contracts the City of Paris owes the U. S. Corps of Engineers the following amounts as of March 31, 2007: 1. Principal payoff on space one $ 208,515.69 (paid current) 2. Principal payoff on space two $ 370,399.16 (paid current) 3. Principal payoff on spaces three, four, & five $1,925,722.00 4. Accrued interest on above $1,925,722 principal $ 2,864,691.22; and, WHEREAS, the amount of accrued interest on the outstanding principal of $1,925,722.00 calculated at 3.137% compounded annually since 6-15-78 is $2,864,691.22, but using the same rate with simple interest for the same time period would only be $1,739,301.20; and, WHEREAS, it would be in the best interest of the City of Paris and its citizens to authorize the City Manager to make a cash settlement proposal to the U. S. Corps of Engineers in the form of the letter attached hereto and incorporated herein as Exhibit "A" to reduce the interest charges paid by the City under these water contracts; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms and conditions of the proposal letter attached hereto as Exhibit "A" is in the best interest of the City of Paris and the its citizens and is in all things approved, and the City Manager of the City of Paris is hereby authorized to execute said proposal on behalf of the City of Paris. Section 3. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 26th day of February, 2007. ~~ .. Richard Manning, Mayor .