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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Public Works Committee Item: Purchase of Sewer Loading Units Per the 1989 Sunlight Development Co. Agreement Date: September 11, 2009 Prepared by: Linda Jordan Initiated by: Bruce Bender Action Required: Approve an agreement between the City of Missoula and T & T Development LLP to purchase 62.5 sewer loading units. Recommended Motion: I move that City Council approve and authorize the mayor to sign an agreement between the City of Missoula and T & T Development, LLP, to purchase sewer loading units per the 1989 Sunlight Development Company agreement. Timeline: Referral to committee: September 11, 2009 Committee discussion: September 16, 2009 Deadline: September 21, 2009 Background and Alternatives Explored: Sunlight Development Company entered into a municipal sanitary sewer agreement on March 20, 1989 and participated in the extension of the Rattlesnake Interceptor Sewer. T & T Development, LLP, purchased real property from and are successors in interest to Entech Inc./Sunlight Development Company. Sewer loading units were created under the 1989 municipal sanitary sewer agreement making T & T Development, LLP, successors in interest to existing Sunlight Development Company sewer loading units. As of this date there are 62.5 unused sewer loading units remaining and are owned by T & T Development, LLP. T & T Development, LLP, agrees to sell these remaining 62.5 sewer loading units. If an agreement is entered into, T & T will submit an invoice along with a bill of sale for the appropriate number of unit certificates to the City of Missoula in July each of year in order to be paid by the first of September. Financial Implications: The 62.5 sewer loading units will cost $900 per unit and is payable over four years. The total purchase price is $56,250 and will be paid out by the following schedule: ---PAGE BREAK--- Year 1 (September 2009) 17.5 units $15,750 Year 2 (September 2010) 15.0 units $13,500 Year 3 (September 2011) 15.0 units $13,500 Year 5 (September 2012) 15.0 units $13,500 Total 62.5 units $56,250 Attachments: Agreement Letter