City and Fermi America sign a non-binding MOU describing up to 10 MGD
A non-binding memorandum of understanding stated the parties' intent to explore agreements for the City to provide up to 10 MGD of potable water in three phases between January 2026 and January 2027, at 1.5 times or more the in-city rate for a like-size connection, with Fermi paying for the public improvements. Either party could end it on 60 days' notice.[1][2]
The non-binding MOU stated the parties' intent to explore agreements for the City to provide up to 10 MGD of potable water in three phases: 2.5 MGD by January 31, 2026; an additional 3.0 MGD by May 31, 2026; and an additional 3.0 to 4.5 MGD by January 31, 2027, each contingent on council-adopted terms and completion of public improvements being designed by Parkhill.[1]
Max mgd
10
Phase1 mgd
2.5
Phase2 mgd
3
Phase3 max mgd
4.5
✓ Verified
The MOU contemplated that the City would furnish water at a rate of 1.5 times or higher the rate it charges a connection of like size within city limits, and that Fermi would design and build all necessary public improvements at its own expense.[1]
Rate multiple
1.5
✓ Verified
The MOU states it is not legally binding, creates no obligation to spend funds or enter a definitive agreement, and that no binding commitment exists until a written contract is adopted by the City Council in a public meeting. Either party could terminate it on 60 days' written notice.[1]
✓ Verified
The MOU's date is September 25, 2025 according to the City's file name; the text extracted from the posted document shows no legible signature date. The City signatory block is the City Manager, and Fermi's signer is listed as Charlie Hamilton, authorized signer.[1][2]
✓ Verified
Both the MOU and the final agreement state they do not contemplate any attempt by Fermi to acquire Hollywood Road Wastewater Treatment Plant effluent already allocated to Lake Tanglewood by prior agreement.[1][3]