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<br /> basis established by the City and further described in a letter <br /> dated September 14, 1984 from A.C. Gonzalez, City Manager of the <br /> City, to Judge Walter Burnett, County Judge of the County, a copy <br /> of which letter is attached hereto as Exhibit C; <br /> NOW, THEREFORE, for and in consideration of the prem- <br /> ises and the mutual covenants herein contained, and subject to <br /> the conditions herein set forth, the parties hereto covenant, <br /> agree, and bind themselves as follows: <br /> Section 1. Sale and Purchase of LUEs. (a) The City <br /> hereby sells to the County and the County hereby purchases from <br /> the City, for the price set forth in Section 1 (b), a reservation <br /> from package plant wastewater treatment facilities of 125 LUEs to <br /> be utilized by the County in the Jail Expansion and in the <br /> development of the Hospital Tract. <br /> (b) The County hereby delivers to the City and the <br /> City hereby accepts from the County $62,500 in payment for the <br /> reservation sold and purchased pursuant to Section 1 (a). <br /> Section 2. Re~resentations and Warranties of the City. <br /> The City represents and warrants as follows: <br /> (a) the City has duly authorized the execution of this <br /> Agreement by appropriate action of the City Council; and <br /> (b) the City has the requisite power and authority to <br /> enter into the sale of reservqti~ns as described in Section 1 and <br /> to make available to the County the LUEs described therein. <br /> -3- <br />