2010-053 RES APPROVING AND AUTHORIZING EXECUTION OF AN AGREEMENT CONCERNING THE RELEASE OF THE DAISY FARM ACREAGE

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RESOLUTION N0. 2010-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A1VD AUTHORIZING THE EXECUTION OF AN AGREEMEIVT CONCERNING THE RELEASE OF THE DAISY FARMS ACREAGE FROM THE CERTIFICATED SERVICE AREA OF LAMAR COUNTY WATER SUPPLY DISTRICT TO ALLOW THE CITY OF PARIS TO PROVIDE A REGULAR SUPPLY OF TREATED WATER TO DAISY FARMS IN CONNECTION WITH THEIR COMMERCIAL DAIRY OPERATION LOCATED IN LAMAR COUNTY, TEXAS; MAKING OTHER FINDIIVGS AND PROVISIOIVS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City is a home rule municipal corporation owning and operating a water supply and treatment system and holding water utility certificate of convenience and necessity ("CCN") number 10480; and, WHEREAS, the City provides retail water utility service to its customers and further is a wholesale supplier of water to the District; and, WHEREAS, the District is a Conservation and Reclamation District and political subdivision of the State of Texas owning and operating a water distribution system; and, WHEREAS, the District purchases water from the City under an agreement entitled "Wholesale Treated Water Contract" (hereinafter, "the Contract,) executed May 8, 2006; and, WHEREAS, subject to the Contract, the District possesses all rights granted by State law to a person holding a water utility CCN to provide retail water utility service to customers within its certificated service area; and, WHEREAS, Daisy Farms, LLC ("Daisy Farms") acquired approximately 5,299 acres in Lamar County near the intersection of State Highway 19/24 and FM 2036 to develop a commercial dairy farm being more particularly described in the Agreement attached hereto as Exhibit "A" and incorporated herein by reference(the "Property"); and, WHEREAS, the City and Daisy Farms plan to execute a long term Water Supply Agreement by which the City would provide a supply of treated water to the Property through a pipeline to be constructed between the City's treated water distribution system and a meter to be set at the site of the commercial dairy Property; and, WHEREAS, the Property is located in an area currently within the certificated area of the District and the City has requested the District to release the Property from its certificated area so that the City can begin to provide treated water to the Property; and, WHEREAS, the District has agreed to decertify the Property from its Certificated Service Area; and, WHEREAS, in return for decertifying the dairy farm acreage, the District has requested the Ciry to execute a letter to the Texas Water Development Board to help the District obtain approval on some new Water Revenue Bonds; and,