05-Approval of Official Record of Council

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Regutar Council Meeting October 25, 2010 Page 10 million gallons per day (55 MGD) of water supply storage in Pat Mayse Reservoir for municipal purposes. Under the terms of the contract, the City would pay the associated construction costs of its portion of the reservoir plus interest. The City would also pay 23.659% of actual operations and maintenance expense of the reservoir. The City initially began making principal and interest payments on an 11 MGD space while interest at 3.137% accrued on the remaining 44 MGD. In June 1978, the City began making principal and interest payments on the second 11 MGD space. Interest continued to accrue on the remaining 33 MGD at 3.137%. In February 2005 the City proposed to prepay the remaining costs under this agreement and the related 1978 supplemental agreement. The savings under the proposal amounted to $1,750,935.12. The U. S. Congress approved the prepayment proposal in November 2007 as part of the Water Resources Development Act (WRDA 2007). At that time the savings to the City had shrunk by $149,484.03 due to principal and interest payments made by the City during the period between proposal and approval. However, the City also avoided O&M expenses of $169,969.41 during this same waiting period. Actual payment of the $3,461,432 settlement amount could not be made until a second supplemental agreement was drawn up by the U.S. Army Corps of Engineers. This supplemental agreement was received and reviewed by staff in September. By executing this supplemental agreement, the City of Paris will have paid in full its obligation regarding the water rights in Pat Mayse Reservoir. The Corps of Engineers has also agreed to refund to the City of Paris the $149,484.03 in principal and interest payments the City was required to make between the passage of the WRDA of 2007 and the City's acceptance of the new supplemental agreement. The City has the funds needed to make its payment held in reserve for this purpose and is prepared to make payment once the City Council has approved the supplemental agreement. The City will continue to have to pay its share of actual O&M costs at the lake estimated to be $70,000 to $100,000 annually. A Motion to approve this item was made by Council Member Pickle and seconded by Council Member Rhonda Rogers. Motion carried, 7 ayes - 0 nays. 32. Deliberate and possibly act on A RESOLUTION OF THE CITY COLTNCIL OF THE CITY OF PARIS, TEXAS, APPROVING THE CONTRACT WITH THE CHAMBER OF COMMERCE OF LAMAR COUNTY, INC. TO MAINTAIN THE VISITORS & CONVENTION COUNCIL FOR THE PURPOSE OF MANAGING THE MUNICIPAL HOTEL OCCUPANCY TAX FUND TO PROMOTE TOURISM AND THE CONVENTION AND HOTEL 1NDUSTRY IN THE CITY OF PARIS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. After a brief discussion, Council Member Rhonda Rogers said that she would like to confer with the Chamber Director prior to voting on this item. - - 11