Loading...
HomeMy WebLinkAboutRes 2020-08-788 Interlocal Agreement with City of Melissa for Water PurchaseCITY OF ANNA, TEXAS RESOLUTION A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF ANNA AND THE CITY OF MELISSA FOR THE PURCHASE OF A PORTION OF THE CITY OF MELISSA'S CONTRACT MINIMUM WATER SUPPLY THROUGH THE GREATER TEXOMA UTILITY AUTHORITY; AND FURTHER AUTHORIZING THE CITY MANAGER TO MAKE PAYMENT TO THE CITY OF MELISSA FOR THE PURCHASE OF SAID ADDITIONAL WATER SUPPLY AS SET FORTH IN THE TERMS AND CONDITIONS OF THE INTERLOCAL AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Anna and the City of Melissa are both members of the Collin Grayson Municipal Alliance; and WHEREAS, the Collin Grayson Municipal Alliance has a contract with the Greater Texoma Utility Authority for the purchase of water with agreed upon take or pay minimum volumes for each City; and WHEREAS, the City of Ana is growing in both size and population, which is increasing the demand for water within the City; and WHEREAS, it is in the public interest for the City of Anna to purchase a portion of the City of Melissa's unused take or pay minimum volume in order to supply the City of Anna with the volume of water required to serve the public; and WHEREAS, the purchase of a portion of the City of Melissa's unused take or pay allows the City of Anna to prevent the automatic increase to their contractual take or pay minimum volume; and WHEREAS, the Interlocal Agreement is attached hereto as Exhibit A; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Approval of Interlocal Agreement and Authorization of Payment The City Council of the City of Anna, Texas hereby approves the Interlocal Agreement attached hereto as Exhibit A and authorizes the City Manager to execute the Interlocal Agreement and approve payment for the purchase of a portion of the City of Melissa's take or pay minimum volume of water;. CITY OF ANNA, TEXAS RESOLUTION NO.` '3'5 PAGE 1 of 2 PASSED AND APPROVED by the City Council of the City of Anna, Texas and to be effective this 25th day of August 2020. APPROVED: , 'f4i to Pike, Mayor ATTEST: ,����� 0 IF• AN�L�'' Carrie L. Land, City Secretary = �` TEXP CITY OF ANNA, TEXAS RESOLUTION NO.' lff PAGE 2 of 2 INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF ANNA, TEXAS AND THE CITY OF MELISSA, TEXAS FOR PURCHASE AND CORRESPONDING SALE OF A PORTION OF THE SELLING CITY'S MINIMUM TAKE OR PAY OBLIGATION UNDER THE GTUA- CITIES OF MELISSA, ANNA, VAN ALSTYNE, AND HOWE POTABLE WATER SUPPLY CONTRACT THIS AGREEMENT is made and entered by and between the CITY OF ANNA, TEXAS, a Texas Home -Rule Municipal Corporation, hereinafter referred to as "Anna", and CITY OF MELISSA, TEXAS, a Texas General Law City hereinafter referred to as "Melissa", collectively referred to herein as the "Cities", as follows: WITNESSETH: WHEREAS, both Anna and Melissa are political subdivisions within the meaning of Interlocal Cooperation Act, Texas Government Code, Chapter 791, as amended (the "Act"); and WHEREAS, the Act provides authority for entities such as Anna and Melissa to enter into inter -local agreements with each other to perform governmental functions and services as set forth in the Act; and WHEREAS, each of the Cities has previously entered into an agreement with the Greater Texoma Utility Authority, hereinafter referred to as "GTUA" for the planning, construction, funding, and operations of a surface water supply system to serve the collective Contract Cities of Melissa, Anna, Van Alstyne, and Howe, which agreement specifies the obligations of each participant; and WHEREAS, each of said Cities has entered an Amended and Restated Contract for Water Supply providing that from the time water has been delivered to each Participating City for one month and forward, on a monthly basis, each Participating City shall be charged for water at the greater of its minimum take -or -pay amount (MT-P) under the Potable Water Supply Contract made and entered between such Participating City and GTUA; and WHEREAS, for the water year 2018-2019 ended July 31, 2019 as provided for in said water purchase agreements, including the North Texas Municipal Water District, hereinafter referred to as `NTMWD" standard water purchase agreement, only the City of Anna received delivery of water which equaled or exceeded the individual City required MT-P; and WHEREAS, the Contract Cities of Melissa, Anna, Van Alstyne, and Howe have a multi- year precedent of the referenced Minimum Take or Pay Buy -Sell concept as referenced herein and as is further referenced and detailed in "Exhibit A" attached hereto for reference in establishing the buy -sell rate; and WHEREAS, the Cities Van Alstyne, Howe, and Melissa are desirous of selling to Anna a portion of their unused MT-P and Anna is willing to purchase said unused portion of the minimum MT-P as defined in this agreement and detailed in "Exhibit A" thus allowing Van ILA for MT-P Transfer Agreement for 2019 Water Year - Page 1 Alstyne, Howe, and Melissa to recover a portion of the purchased but unused MT-P for the stated water year; and WHEREAS, the background of the above noted agreements, volumes, rates, and circumstances are further detailed in the October 31, 2019 memorandum titled "Sale of GTUA- CGMA Minimum Take or Pay to Participant City" attached hereto for reference and labeled "Exhibit A". NOW, THEREFORE, ANNA and MELISSA, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: I. TERM This Agreement shall apply to the NTMWD water year ended July 31, 2019 and shall be executed and consummated in full between October 1, 2019 and January 31, 2020 and shall not apply to subsequent water volumes or water years unless said Cities so authorize by subsequent agreement. II. AGREEMENT The Cities agree that MELISSA shall transfer 796,000 gallons (796.0 one thousand gallon increments) of MT-P water to ANNA for the water year ended July 31, 2019 and ANNA shall remit to MELISSA a payment for said transfer of MT-P at the rate of $1.72 per thousand gallons totaling in the sum of $1,369.55 as payment in full for said portion of MELISSA's MT- P. Following execution of this agreement, MELISSA shall submit to ANNA an invoice for the transfer of the described MT-P for the above stated sum and ANNA shall remit payment for said transfer within twenty (20) days of receipt of said invoice, it being the intent that this transaction shall be completed on or before January 31, 2019, although it is specifically provided that completion of said invoicing and payment after said date shall not invalidate any portion of this agreement, it being the intent however to complete said transaction by the stipulated date. III. RESPONSIBILI'TIES OF THE PARTIES 1. The respective City Councils of ANNA and MELISSA shall each approve an interlocal agreement authorizing the sale / purchase of MT-P as described herein and further detailed in the attached Exhibit A. 2. MELISSA, following approval of the interlocal agreement by each party thereto shall submit to ANNA an invoice for the referenced gallons of MT-P water detailed above in Section II and in the stipulated amount. 3. ANNA shall remit to MELISSA the above stated payment for the transferred MT-P within twenty (20) working days of the receipt of referenced invoice. 4. Any party hereto wishing to verify the metered quantities of water or the portion of the minimum take or pay to which this agreement refers shall be entitled to verification subject to said verification being completed prior to the submission of the invoice referenced in item III — 2 ILA for MT-P Transfer Agreement for 2019 Water Year - Page 2 above. Should GTUA verification indicate a different volume of minimum take or pay than referenced herein, the parties hereto shall modify said quantity and the resultant payment for said quantity of minimum take or pay prior to the invoicing and payment phase (item III — 2 & 3 above). IV. TERMINATION C. The Cities recognize that this Agreement shall commence upon the effective date herein and continue in full force and effect until termination in accordance with its provisions. Anna and MELISSA herein recognize that the continuation of any contract after the tennination of this agreement or impacting any future water year shall be subject to City Council approval for each City, respectively. Following termination of this agreement, or should either City fail to execute this agreement, there shall be no further commitment hereunder. V. RELEASE AND HOLD HARMLESS Anna and Melissa, to the extent authorized under the constitution and laws of the State of Texas, agree to be responsible for their own acts of negligence which may arise in connection with any and all claims for damages, cost, and expenses to person or persons and property that may arise out of or be occasioned by this Agreement. In the event of joint and concurrent negligence, Anna and Melisa agree that responsibility shall be apportioned comparatively. This obligation shall be construed for the benefit of the parties hereto, and not for the benefit of any third parties, nor to create liability for the benefit of any third parties, nor to deprive the parties hereto of any defenses each may have as against third parties under the laws and court decisions of the State of Texas. VI. AUTHORITY TO SIGN The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto. The Cities have executed this Agreement pursuant to the authority granted by its governing body. IX. SEVERABILITY The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause, or phrase of this Agreement is for any reason held to be contrary to the law or contrary to any rule or regulation having the force and effect of the law, such decisions shall not affect the remaining portions of the Agreement. However, upon the occurrence of such event, either party may terminate this Agreement by giving the other party thirty (30) days written notice. ILA for MT-P Transfer Agreement for 2019 Water Year - Page 3 X. VENUE This Agreement and any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. The parties agree that this Agreement shall be enforceable in Collin County, Texas, and, if legal action is necessary, exclusive venue shall lie in Collin County, Texas. XI. INTERPRETATION OF AGREEMENT It is acknowledged that this is a negotiated document. Should any part of this Agreement be in dispute, the Cities agree that the Agreement shall not be construed more favorably for either City. XII. REMEDIES No right or remedy granted herein or reserved to the parties is exclusive of any right or remedy granted by law or equity; but each shall be cumulative of every right or remedy given hereunder. No covenant or condition of this Agreement may be waived without the express written consent of the parties. It is further agreed that one (1) or more instances of forbearance by either party in the exercise of its respective rights under this Agreement shall in no way constitute a waiver thereof. XIII. SUCCESSORS AND ASSIGNS The parties each bind themselves, their respective successors, executors, administrators and assigns to the other party to this contract. Neither party will assign, sublet, subcontract or transfer any interest in this Agreement without the prior written consent of the other party. No assignment, delegation of duties or subcontract under this Agreement will be effective without the written consent of both parties. ILA for MT-P Transfer Agreement for 2019 Water Year - Page 4 IN WITNESS WHEREOF, the parties have executed this Agreement by signing below. Date: �� �✓�� APPROVED AS TO FORM: CITY ATTORNEY CITY OF MELISSA, TEXAS Date: Jason Little City Manager APPROVED AS TO FORM CITY ATTORNEY ILA for MT-P Transfer Agreement for 2019 Water Year - Page 5 ACKNOWLEDGMENTS STATE OF TEXAS § COUNTY OF COLLIN § This instrument was acknowledged before me on the 1454h day of 0-t�ccra.E 2019, by J � 0,Cg of the City of Anna, Texas, a Texas Home -Rule Municipal Corporation, on behalf of said municipality. CARRIE L SM1TH =� •*= * Nohvy D # 1141M Expires February 4.2023 STATE OF TEXAS § COUNTY OF GRAYSON § Notary Public, State of Texas This instrument was acknowledged before me on the day of , 2019, by , of the City of Melissa, Texas, a Texas General Law City, on behalf of said municipality. Notary Public, State of Texas Exhibit A Attach copy of October 31, 2019 memorandum from Donald E. Paschal, Jr. to CGMA Mayors and City Managers regarding the subject: Sale of GTUA-CGMA Minimum Take or Pay to Participant City ILA for MT-P Transfer Agreement for 2019 Water Year - Page 6 DONALD E. PASCHAL, IR0 904 Parkwood Court McKinney, TX 75070 Tel. & FAX 972.529.1325 email: don@paschalconsulting.com To: CGMA City Managers Subject: Sale of GTUA-CGMA Minimum Take or Pay to Participant City Date: October 31, 2019 Only Anna used water in excess of their required GTUA-CGMA minimum take or pay (MT/P) through the North Texas Municipal Water District (NTMWD) agreement for the water year ended July 31, 2019. Based on prior year precedents, a member City may acquire a portion of the MT/P from other CGMA member Cities at an agreed price. If there were no other source of water, the price would be the standard CGMA-GTUA price based on the MT/P, unless the purchasing city had exceeded its MT/P. In the case of Anna, however, the City has exceeded their MT/P. Once a city exceeds their MT/P for any year, they have the right by contract to acquire additional water under the NTMWD excess rate for the applicable water year, or, they can choose to shift some of the consumption to the GTUA- CGMA meter to use some of the other cities Minimum Take or Pay (MT-P) if the cost were sufficiently attractive and in so doing can reduce their potential succeeding year MT-P thus reducing monthly minimum while maintaining the potential for subsequent year excess use savings or further acquisition of other CGMA city's unused MT/P. Since the 2015 water year, Melissa and Anna had both exceeded their MT/P, but for 2019 only Anna exceeded the MT/P thus affording them the option of buying NTMWD water at the excess water rate or other CGMA members unused MT/P until it is exhausted and then pay for water beyond the combined Anna and purchased MT/P at the excess rate level The excess water rate is the easiest cost option to understand and to calculate; additionally, it has generally been the methodology used in the buy -sell agreements since the 2015 water year. This buy -sell action has allowed other CGMA Cities using less than the MT/P the opportunity to recoup a portion of the MT/P water cost paid during the water year and allowed the buying City to keep a lower MT/P. For the recently completed 2019 water year (ended July 31, 2019) only Anna exceeded their MT/P sufficiently to purchase 100% of the other three city's (Van Alstyne, Melissa, and Howe) unused MT/P. The details of the proposed transaction are provided below; the explanation and process are intended to be as simple as possible. The basic concept is that three CGMA Cities (Van Alstyne, Melissa, and Howe) sell their unused portion of their MT/P to another user Cities exceeding its respective MT/P at an agreed price that provides benefits to both seller and buyer. The following summary is an update of the similar / same document / transaction from last year with minor tweaks as noted. This program is not regulated or controlled by GTUA, but is purely an agreement among CGMA participating cities for the benefit of the participants. MT/P obligations are paid by all cities in equal monthly payments beginning in October and concluding in September of each budget year for the MT/P as set for the water year beginning August 1 of each year. Participation in this program is not a requirement, but a choice that each participant determines independently. However, the purpose is: 1. To allow selling Cities to recoup a portion of the funds already spent for their required MT/P; and 2. To provide a mechanism for purchasing cities to pay for water actually used which then allows them to keep their respective MT/P at a lower level. RAI While this process is not managed by GTUA, it's staff does use the results to adjust and maintain each City's MT/P at the lowest possible levels; it is noted that this process is supplemental to NTMWD and GTUA and since neither regulate this process, the cities of CGMA are able to have a mechanism through which to moderate the otherwise higher growth that would occur in MT/P thus keeping individual and group Minimum annual water take to lower levels. As this process is continued in future years, it has the potential to be of benefit to all participants. Background: • Minimum Take or Pay / City - CGMA City MT/P: The base MT/P water purchase for the 2019 water year (minimum contract provision that the GTUA-CGMA system has with NTMWD for water) was a total of 761,555,000 gallons of water annually (MT/P amount) which represents 761,555 one -thousand gallon increments (K gals). Each CGMA City is responsible for the lesser of 59,312.5 K gals or the previously set higher MT/P based on use plus pumping and related cost). Once all four CGMA Cities reach the MT/P, or when any combination of cities exceed the total CGMA MT/P volume for the subject water year, the excess water is charged to that respective City or Cities at the cost then in effect for excess volumes (plus proportionate pumping and related costs) over the 59,312 K gallon volume which was the initial responsibility of each City, but may have risen in higher use city's. A blend of the base rate and the District excess water rate would allow the cities to acquire water at a rate that exceeds the excess water rate for users exceeding the MT-P but less than the base rate while the cities using less than their MT/P would recoup a portion of the MT/P base rate that they paid during the fiscal year. It is noted that when the MT/P is exceeded by any individual City, a new MT/P is established for the subsequent year. By acquiring unused MT/P, the purchasing cities are allowing the selling cities to recoup a portion of the cost they paid during the water year for their obligated MT/P. Additionally, this intra CGMA buy -sell arrangement helps to reduce the total buying City MT/P and keeps the entire CGMA MT/P at the lowest possible level. While this concept will cease to provide major benefits when all CGMA participants are using their MT/P, staff is reviewing the potential of preserving the concept for buying — selling MT/P in small to moderate increments in future CGMA rate and MT/P programs. 2018-2019 water year take - For the recently ended water year, only took all of their respective full MT-P water, that being Anna who took 339,960.75 K Gallons, well above their MT/P. Melissa took all but 796 K gallons which was 99.8% of their MT/P. From all indications, Anna and Melissa will continue a strong development trend and are expected to continue to take volumes equaling or exceeding their MT/P for future years. Van Alstyne took 77.7% of their MT/P using water for the entire water year. Van Alstyne growth is positive and coupled with some water system management is fully expected to take all (or more) than the MT/P in the new, 2019-20, water year having started with by far their largest month ever in September. Howe did not take any water year during the 2019 water year as actual use, although a small amount (2452.75 K gallons) is allocated to each city for overall system maintenance, meter discrepancy, and lost or unaccounted for water. Howe is now working on planning and subsequent system adjustments which should allow them to begin taking water from late in the water year to the early part of the subsequent water year. During the 2019 water year, ground water sources continued to provide a significant portion of the water used by Anna, most of the water used by Van Alstyne, and all of Howe's water. Ground water will continue to be used by these cities in the 2020 water year, but as a decreasing % over several years. It is expected that surface water will be used to accommodate growth and gradually replace small, but increasing percentages of ground water in subsequent years as ground water is slowly depleted (note: careful management of the aquafers may stabilize supplies and allow the use of some base level Q of ground water for many years thus, extending the useful and economic life of many CGMA Cities' wells for decades for some potable water as well as for irrigation purposes. Break out of Maintenance Water — in 2018 (past water year), total unaccounted for water was a negative value showing the system gained a small amount of water, probably a meter reading timing discrepancy, since in the just completed 2019 water year, 9,811 K was unaccounted for; this includes all water used for flushing the main, maintenance, meter reading timing, and / or lost and unaccounted for water. It is noted that the volume of flushing / maintenance water does not vary greatly from year to year and is typically fairly constant in the range of 10,000 to 15,000 K Gallon units, although as noted above, the unaccounted-for water declined. Much of this lost water has been due to the necessity to flush the northern portion of the CGMA transmission main since the two north most cities had not used sufficient water to maintain chlorine levels. Van Alstyne's much higher use seems to have reduced the amount lost to flushing. Historical Practice and Buy -Sell Rate Calculation —A blended rate methodology has been used to establish the buy -sell rate for several years. The blended rate is based on the average of the base and excess rates. For the recently completed 2019 water year, the standard rate / K gallons was $2.97 and the excess water rate was $0.47 / K gallons. These water rates and the blended calculation are illustrated below. It is noted that the using cities have all been invoiced for the McKinney Pass -through Agreement charges and the GTUA pumping and administrative charges. In the future, once all cities are taking water at MT/P levels, the water rates are expected to be structured to incorporate all related cost of delivering water including a share of GTUA administrative cost, system maintenance cost, and operational cost (power and similar operational costs) so that the charging methodology reflects the aggregate cost of a thousand gallons of water thus assuring simplicity of invoicing and that water costs are paid in an equitable share of costs. Debt Service will be the only item of system cost not currently anticipated to be included in the water cost per thousand gallons. Once the Debt Service cost is fully transitioned from equal '/4 shares to proportional, the concept can be revisited so that debt service cost can be included with the water use invoice if deemed to be the best practice. System Concept Objective of Buy -Sell - The current main issue to be determined is if the non- users or under -users wish to recoup a portion of the water cost they have already paid during the water year although this concept has become generally accepted by all and could be formalized as part of the future water contracts for participants. Thus, at this time, the buy -sell agreements only address the price of the bought or sold potable water. It is noted that in past years both Melissa or Anna would have paid a lesser rate under the excess water calculation than through the blended rate methodology, however, the blended rate has helped keep both the Anna and Melissa MT/P somewhat lower, thus providing a benefit. For the recently completed 2019 water year, only Anna used more than the required MT/P and in fact used all the under -using participants MT/P and beyond. This is the first year of the buy -sell concept that Melissa has not been a buyer and the first year that Anna is the only buyer. This would seem to indicate that the continued use of this concept could be a slight positive for all participants in future water years. • Continuation of Historical Calculation Methodology - It is proposed that the same rate methodology be applied to the 2019 buy -sell agreements as was used in the prior years although various calculations (lost water for example) have gradually been enhanced to standardize the methodology and better explain the concepts. Cost Calculations for 2018-19 Water Year - The cost calculations for the above described Buy - Sell of MT/P is being based on prior years practice. For 2019 Water Year, the base NTMWD Cd Customer City rate was $2.97 / K gal and the excess water rate 0.47/ K gal; the blended rate is $1.72 / K gal. The rate is an average of the normal CGMA Customer City rate and the NTMWD Customer City Excess Water Rate for 2019 as illustrated below: 2019 customer rate data Entities CGMA MT/P water / 1000 GPD Melissa Excess Water Blended Average rates $2.97 $0.47 1 $1.72 It is noted that even though only one city (Anna) exceeded its MT/P, the total CGMA MT/P again set a new high at 792,226 K gallons, thus raising the aggregate MT/P for the subsequent year (2019-20) by 30,671 K gallons (believed to be the final, reconciled adjustments by NTMWD and / or GTUA). 2019 Water Compared to MT-P —Since the volume of excess water to be purchased for the recently completed 2019 water year exceeded the full MT/P of all three selling cities, the proration is technically a moot point for 2019, but as a technical matter, the proration amount for buy -sell agreements is 100% of the collective unused MT/P. In summary, the purchasing city (Anna) will be acquiring the full amount of the selling cities un-used MT/Ps. Additionally, this practice actually encourages a City with other options (could be separate surface source like Melissa or available well capacity like Anna) to use a portion of the CGMA Cities MT/P by allowing that City to preserve other sources of water or to keep their MT/P lower Calculation of the proportionate share of unused MT-P to be sold is as follows: Proportionate Share Use: MT-P available to be sold to Excess use City for 2019 water year: MT-P Anna Melissa Van Howe Alstyne MT-P water (all in K 239,032 403,845 59,312.5 59,312.5 gallons) Total water Used 339,960.75 403,048 46,763.75 2,452.75 All charged equal maintenance 8 Flushing Unused (after NA 796 12,549 56,860 maintenance Adjust) Excess water use 100,929 NA NA NA over MT/P (after adj) Excess water to be 70,205 NA NA NA purchased by excess MT-P cities Unused water to be NA 796 12,549 56,860 offered for sale to excess MT/P cities Note in various years the un-used MT/P water has been more than Buyers excess use could absorb, in other years the full un-used can be absorbed. Recognizing this reality: 5 A. It is expected that the amount that can be sold in future years will continue to decline, except if a major user were to terminate operations or economic circumstances caused a major drop off in some cities by not others. Any long-range continuation of the buy -sell concept will need to recognize such situations. B: In past years, if the total unused was less than the excess use by buying city(s), the amount for each seller was equally divided by the number of purchasers; if the total unused was less than the excess use: 1. If only one purchasing city, the amount to be sold -purchased was 100% of the amount available. 2. If there were multiple purchasing cities, the amount to be sold, per seller) was proportioned based on the ratio of the purchasing city total take to the total of all CGMA cities; in the future, this may be adjusted to equal purchases or proportionate purchase of unused water. • Applying concept to the 2019 water year results in the following calculation: 2019 Proposed MT-P Sale Amt (apportioned as noted above) to buver Citv Item Melissa Van Alstyne Howe K gallons offered for sale / 796 12,549 56,860 purchase Total amount of sale by / purchase $1,369.55 $21,583.85 $97,798.77 @ $1.72 / K gal from 2019 Proposed MT-P Purchase Amt Item From Melissa From Van Alstyne From Howe Anna: Purchase K Gallons 796 12,549 56,860 Purchase $ amount $1,369.55 $21,583.85 $97,798.77 Thus, the total purchase of unused MT/P by Anna is $1,369.55 from Melissa, $21,583.85 from Van Alstyne, and $97,798.77 from Howe resulting in a grand total purchase of un- used MT/P purchase of $120,752.17. Implementation of Sale / Purchase: • Buying City Actions - Anna may purchase from each of the other three CGMA Cities (Melissa, Van Alstyne, and Howe) the above calculated portion of the Van Alstyne and Howe unused CGMA MT/P for the 2019 water year. Should Anna not purchase the unused MT/P, it will then be billed by GTUA for excess water used and will have a larger subsequent year MT/P. • Selling City Actions — Melissa, Van Alstyne and Howe may agree to sell their respective un- used MT/P volume to Anna at the agreed rate of $1.72 per K gallons as illustrated in the above table. Under this scenario, Anna would pay the totals shown above equaling an aggregate of $120,752.17 assuming each selling City chooses to sell their unused MT/P the purchasing City). [01 Process / Steps: 1. GTUA has verified the volumes from NTMWD billings; the above is believed to be the final, reconciled calculations as of October 31, 2019. 2. Each selling City may adopt a Resolution authorizing an inter -local agreement to sell the above noted MT/P to the buying City(s) at the agreed rate. 3. Each Buying City may adopt a Resolution authorizing an inter -local agreement to purchase the above noted MT/P from the respective Selling City(s) at the agreed rate. 4. An inter -local agreement will be attached to each of the Resolutions noted in items 2 & 3 detailing the provisions of the sale / purchase between the selling CGMA Cities and the purchasing Cities. 5. Following approval of Resolutions and execution of the inter -local agreements, the selling Cities will forward an invoice to the buying City(s); this will then trigger the Buying City(s) payment to the respective Selling City for the agreed purchase. This can be completed by late 2019 or early 2020 as the respective Cities complete authorization of the stipulated Resolutions and Inter -local Agreements. 6. Consultant will draft the respective Resolutions and inter -local agreements similar to the documents used in 2018 for use by the Cities. 7. It is suggested that this document be attached as a reference document to the inter -local agreement to help clarify the concept and to serve as a future reference. 8. Additionally, GTUA will invoice Anna for any use over their 2019 MT/P plus the unused MT/P purchased from the cities not using their MT/P at the excess water rate plus pumping fees. CITY OF MELISSA, TEXAS RESOLUTION NO. 20-02 (R) A RESOLUTION RELATED TO AN INTER -LOCAL AGREEMENT BETWEEN THE CITIES OF MELISSA AND ANNA UNDER WHICH THE CITY OF MELISSA AGREES TO TRANSFER A PORTION OF ITS CONTRACTUAL MINIMUM TAKE OR PAY WATER OBLIGATION WITH THE GREATER TEXOMA UTILITY AUTHORITY TO THE CITY OF ANNA IN EXCHANGE FOR AN AGREED PAYMENT FROM ANNA AND AUHORIZING THE EXECUTION AND ADMINISTRATION OF SAID INTER -LOCAL AGREEMENT WHEREAS, the City of MELISSA has previously authorized and executed agreements with the Greater Texoma Utility Authority for a surface water supply system to be planned, funded, constructed, and operated by GTUA, including the payment of monthly minimum take or pay water purchase provisions necessary to fund said water transmission system and purchase of potable water; and WHEREAS, the City of MELISSA has chosen to not accept delivery of a portion of the agreed minimum take or pay water through the end of the 2019 water year (ended July 31, 2019) and desires to transfer a portion of its obligated minimtmi take or pay for said 2019 water year to the City of Anna for consideration detailed in an inter -local agreement; and WHEREAS, the City of Anna has indicated interest in purchasing a portion of the City of MELISSA's minimum take or pay for the water year ended July 31, 2019 as explained in a report memorandum to the City Managers / Administrators of the Cities of Melissa, Anna, Van Alstyne and Howe dated October 31, 2019 by Donald E. Paschal, Jr., consultant to said cities, which report memorandum is attached to said Inter -local agreement as "Exhibit A"; and WHEREAS, it is acknowledged that a companion or similar agreement is contemplated between the Purchasing CGMA-GTUA City of Anna and the Selling CGMA-GTUA Cities of Melissa, Howe and Van Alstyne. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of MELISSA that: SECTION 1: The City Council of the City of MELISSA authorizes the execution by the City Manager or Mayor of the attached Inter -local agreement with the City of Anna for the terms detailed therein providing for the following: A. Transferring a portion of MELISSA's GTUA required minimum take or pay to Anria as provided for in the attached Inter -local Agreement. B. Invoicing Anna for the agreed portion of the 2019 water year minimum take or pay. C. Accepting Payment from Anna as provided for in the attached Inter -local agreement. SECTION 2: It is specifically provided that the participating cities shall have the right to verify quantities of water with the GTUA prior to final consummation of the attached agreement. Upon motion of Jay Northcut, seconded by Craig Ackerman, the above resolution was approved by the City Council of the City of Melissa at its meeting held this 12th day of November 2019, by the following vote: 7 AYE 0 NAY 0_ ABSTAIN Reed Greer, Mayor Attest: �/--�"O' , � - Kacie Galyon, Ci y Se re s aSEd -.WQA 1MM 610Z 10J IuawQQAV IzJsuul d-1bV -IO3 ` qT .►apaury� ,{;l0 alilirI uosEr W`d03 01 SV Q9AO'dddV a113Q SVX:IZ `VSSI'Igw 30 A LID 2x"dO.L.LV .A.LID '0 iyc IN-Ml Ol SV CMAMIddV E n�olaq OuiuDis ,tq juaulaa. RV sigl palnoaxo OAL14 saiued 041 `AOJHgHAx SSaN ILM NI