Title
A resolution authorizing the acquisition and transfer of the Markout Water Supply Corporation (“Markout”) water system and customers to the City of Mesquite, Texas (“Mesquite”); authorizing the City Manager to execute such documents and to take such actions as necessary or requested to complete the acquisition and transfer of the Markout water system and customers to Mesquite; authorizing the City Manager to finalize, execute and administer a Memorandum of Understanding between Mesquite and the City of Forney, Texas (“Forney”) defining the expectations and responsibilities of both Cities related to the acquisition by Mesquite of the Markout water system and customers and division of the Markout water system including, without limitation, the transfer to Forney of the rights to provide water service to the Grayhawk subdivision located in Forney.
Body
The Markout Water Supply Corporation (Markout) Board of Directors has requested that Mesquite acquire Markout’s water supply system and customers. The City of Forney currently provides treated water to the Markout system and desires the rights to provide water to a current subdivision within the Markout service area (Transfer Area). Until Mesquite has designed and constructed facilities to extend its water system to connect to the current Markout water system, Mesquite will need to obtain treated water for Markout through the Forney water system.
The purpose of this Memorandum of Understanding is to (1) outline the steps both Mesquite and Forney will take to evaluate and transfer the rights to provide water service to the Transfer Area from Mesquite to Forney, (2) provide consent to the assignment of the current Markout Wholesale Contract to Mesquite, and (3) provide for the termination of the Wholesale Contract.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Mark Kerby
Head of Department
Mark Kerby