18-MOTION TO APPROVE RAW WATER AGREEMENT WITH DAISY FARMS LLCSubmittal Date:
12-04-12
Council Date:
12-10-12
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Originating Department: Presented By:
Finance Gene Anderson
RECOMMENDED MOTION:
Motion to approve raw water agreement with Daisy Farms, LLC.
POLICY ISSUE�S�:
Financial management
Agenda Item No.:
18.
BACKGROUND:
Daisy Farms wishes to use raw lake water for irrigation purposes at its facility. The City has an existing
agreement with the NextEra power plant for the sale of raw water for their industrial usage up to 8
MGD.
This agreement would allow Daisy Farms to utilize any of NextEra's reserved raw water not needed by
NextEra in its operations. NextEra retains the priority of first usage so Daisy Farms is not guaranteed a
minimum quantity of raw water. By this agreement NextEra agrees to amend its agreement with the City
of Paris to allow for this diversion of raw water. Daisy Farms is responsible for all costs relating to the
transmission of the raw water to their facility.
The term of the agreement is 30 years but can be terminated for failure to perform the terms of the
contract.
BOARD�COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution. A copy of the agreement may be obtained from the City Clerk's Office.
ACTION:
❑ Financial Report ❑ Minute Order
❑ Department Report � Resolution
❑ Presentation ❑ Ordinance
❑ Public Hearing ❑ Other
FISCAL NOTES:
BUDGET INFO:
Expense $
Budgeted Amt. $
YTD Actual $
Acct. Name
Acct. Number
City of Paris Revised 6/20/12
82
Draft
RESOLUTION NO.
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 AND DAISY FARMS, LLC, FOR
THE USE OF EXCESS RAW WATER FOR IRRIGATION PURPOSES AT DAISY
FARMS COMMERCIAL DAIRY LOCATED ON SH 19/24 AT FM 2036,
LAMAR COUNTY, TEXAS; AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS; MAKING
OTHER FINDINGS 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 Paris, Texas and found to be acceptable and in the best interests
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of the City of Paris and its citizens, are hereby in all things approved.
Section 3. The City Manager be, and is hereby authorized to execute the Agreement
and all other documents in connection therewith on behalf of the City of Paris, Texas
substantially according to the terms and conditions set forth in the Agreement attached
hereto as Exhibit "A".
Section 4. This resolution shall become effective immediately upon its passage.
DULY PASSED AND APPROVED this 10th day of December, 2012.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
A.J. Hashmi, M.D., Mayor
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