Title
Consider and take action on a resolution approving the First Supplement to Fourth Amended and Restated Water Supply Contract between Gulf Coast Water Authority (GCWA) and City of League City, Texas (Director of Public Works)
Background:
Approval of this item will authorize the First Supplement to Fourth Amended and Restated Water Supply Contract between GCWA and City of League City (COLC).
The subject Settlement Agreement concerns an outstanding Capital Debt payment owed to the City of Houston (COH) for Coastal Water Authority’s (CWA) raw water conveyance improvements required for the 2008 era expansion of the Southeast Water Purification Plant (SEWPP).
In 2020, the City of Houston (COH) identified this debt and presented it to the Southeast Water Purification Plant (SEWPP) co-participants. League City’s share of the total co-participant debt of $22,165,315 was calculated at $2,878,535. Through multi-party negotiations involving the Gulf Coast Water Authority (GCWA, representing League City), the other co-participants, and COH, a proposed Settlement Agreement was reached. Under the agreement, the co-participants are responsible for 60 percent of the original debt, reducing League City’s obligation to $1,727,121.
League City will pay its share of the settlement-$1,727,121-to GCWA in ten (10) equal annual installments of $172,712.10. These installments will be invoiced monthly at $14,392.68, beginning in COH’s fiscal year 2027 (July 1, 2026-June 30, 2027). Upon receipt of the City’s settlement payments, GCWA will forward funds to COH in the same manner it transmits all Operating Charges under the Plant Cost Sharing Agreement.
Attachments:
1. Proposed Resolution
2. Exhibit A - First Supplement to Fourth Amended and Restated Water Supply Contract
3. Exhibit I - COH Untreated Water Facilities Outstanding Debt Summary
CONTRACT ORIGINATION: Agreement has been reviewed by the City Attorney’s Office
FUNDING
{X} Funding in the amount of $43,179 is available from Water Contract Purchases account # 10207300-53910 in FY2026. The future payments will be funded upon the council’s approval as follows: $172,712.10 annually for FY2027 through FY2035, with the remaining $129,533.10 in FY2036.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #1: Develop and Maintain City Infrastructure