· Resolution
City and Fermi, Inc. sign the water supply agreement
The executed agreement caps delivery at 2.5 MGD from the City's Carson County Well Field, at two times the rate for a like-size connection inside city limits, adjusted annually. The term is 20 years with two optional 10-year renewals. Fermi must build and dedicate two wells, connecting pipe and a backup generator for existing pump stations by January 2027. Deliveries are subject to the City's Drought Contingency Plan.[1][2][3]
Grayson PathFermi America (Fermi, Inc.)
What the sources say
- ✓ Verified
The agreement limits delivery to 2.5 million gallons per day measured daily (Section 7.01). Its term is 20 years from final execution, renewable for two additional 10-year terms by mutual written agreement requested at least 180 days before expiration (Section 7.02).[1]
- Max mgd
- 2.5
- Term years
- 20
- Renewal terms
- 2
- Renewal years
- 10
- ✓ Verified
The rate is two times what the City charges a connection of like size within city limits (Section 6.01). Before July 1 each year the City projects its budgeted cost of service and notifies Fermi of the next fiscal year's rates, which Fermi agrees to pay (Section 6.02).[1]
- Rate multiple
- 2
- ✓ Verified
Fermi must design, build and install at its sole cost all public improvements, including two wells in the City's Carson County Well Field, related piping to existing transmission lines and a backup generator for the existing pump station(s), dedicated to the City on completion. The City's duty to supply water is contingent on completion and dedication by January 2027 (Section 3.01). Fermi also pays for an air-gapped system at the point of delivery (Section 4.01).[1]
- ✓ Verified
Water is to come from the City's Carson County Well Field unless an emergency prevents it, in which case the City will endeavor to deliver from other sources (Section 4.02). Supply is subject to the City's Drought Contingency Plan, and Fermi must apply the same rationing or restrictions the City imposes citywide (Section 1.02).[1]
- ✓ Verified
Before the improvements are completed and dedicated, either party may terminate with cause on at least 180 days' written notice; afterward, either party may terminate for material default, subject to a 180-day cure period. On termination for any reason, all public improvements, complete or not, become City property (Section 7.03).[1]
- ✓ Verified
Fermi may not resell City water outside its project site or extend lines beyond its property without City approval (Section 7.04). Fermi may assign the agreement to affiliates or as collateral to financing parties with prior notice but without City consent (Section 7.06).[1]