2012-094 RES AUTHORIZING/APPROVING AGREEMENT BY AND AMONG COP, NEXTERA ENERGY AND DAISY FARMS

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RESOLUTION N0. 2012-094 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING AND APPROVING AN AGREEMENT BY AND AMONG THE CITY OF PARIS, TEXAS, NEXTERA ENERGY A1VD DAISY FARMS, LLC, FOR THE USE OF EXCESS RAW WATER FOR IRRIGATIOIV PURPOSES AT DAISY FARMS COMMERCIAL DAIRY LOCATED O1V SH 19/24 AT FM 2036, LAMAR COUNTY, TEXAS; AUTHORIZIIVG THE CITY MAIVAGER TO 1VEGOTIATE AND EXECUTE ALL NECESSARY DOCUMEIVTS; MAKING OTHER FIIVDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris, Texas (hereinafter "CITY") has an existing agreement with NextEra Energy for the sale of raw water for their industrial usage at the NextEra Power Plant up to 8 MGD; and WHEREAS, NextEra does not use all of its contracted supply and desires to allow Daisy Farms to utilize any of NextEra's reserved raw water not needed by its operations. NextEra retains the priority right to the raw water and Daisy Farms is not guaranteed a minimum quantity of raw water; and WHEREAS, the City Staff recommends the sale of raw water to Daisy which is over and above the actual supply taken by NextEra on a daily basis but which does not exceed the maximum daily contracted amount of eight (8) million gallons per day; and WHEREAS, NextEra agrees to amend its agreement with the City of Paris to allow for this diversion of raw water. NextEra and Daisy Farms would be responsible for all costs relating to the transmission of the raw water to their facility; and WHEREAS, the term of the Excess Raw Water Agreement with Daisy Farms is 30 years but can be terminated for failure to perform the terms of the contract; and, WHEREAS� the City Council of the City of Paris hereby finds that it is in the best interest of the City of Paris and its citizens to allow City to sell excess raw water to Daisy Farms and does hereby authorize the City Manager to negotiate and execute an Agreement with Daisy Farms, in a form similar to the agreement attached hereto as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The terms and conditions of the Agreement, having been reviewed by the City Council of the City of Faris, Texas and found to be acceptable and in the best interests of the City of Paris and its citizens, are hereby in all things approved.