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HomeMy WebLinkAboutOrdinance No. 16,572 (Item 7.s.)ORDINANCE NO. 16,572 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A WATER SUPPLY AGREEMENT WITH TARINA PROPERTIES, LLC.; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City Manager to execute and the City Clerk to attest to a Water Supply Agreement with Tarina Properties, LLC. Said agreement is attached as Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the City of Baytown this the 27th day of August, 2026. CHARLES JOHNSON, Mayor ATTEST: ANGELA JACKSON, City Clerk APPROVED AS TO FORM: Scott Lemond, City Attorney R:\Ordinances and ResolutionslOrdinance Drafts\2026-08-2710rd-H20 Agt-Tarina-SL.doc EXHIBIT "A" WATER SUPPLY AGREEMENT BETWEEN THE CITY OF BAYTOWN, TEXAS AND TARINA PROPERTIES, LLC This Agreement is made and entered into as of the date herein last specified by and between the City of Baytown, Texas, a municipal corporation and home -rule city which is principally located in Harris County, Texas (the "City"), and Tarina Properties, LLC, a Texas limited liability company ("Owner"). 1. The City is a municipal corporation and home -rule city principally located in Harris County, Texas. The City owns, operates and maintains a water supply and distribution system supplying water to residents of the City. 2. Owner is a Texas limited liability company that owns the real property located in Chambers County, Texas, more particularly described in Exhibit "A" (which is attached hereto and incorporated herein by reference), as well as, property adjacent to the real property described in Exhibit "A." 3. The City and Owner entered into the Utility Easement attached hereto as Exhibit "B" and incorporated herein by reference for the purpose of extending utility service from the easement if adjacent property owners enter into a separate utility service agreement with the City. NOW THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained the parties hereto do mutually agree as follows: AGREEMENT ARTICLE I DEFINITIONS AND EXHIBITS 1.01 Definitions. The terms and expressions used in this Agreement, unless the context clearly shows otherwise, and in addition to other defined terms herein, have the following meanings: "City's System" shall mean the systems for the supply and distribution of water and any extensions thereof and additions thereto, currently serving or that may be constructed to serve the City. "Director" shall mean the Director of Public Works/Engineering of the City of Baytown, or his designee. "Effective Date" shall mean the date of execution of this Agreement. "Impact Fee" means a charge or assessment imposed by the City against new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development in accordance with Chapter 395 of the Texas Local Government Code. "Interconnections" shall mean those improvements necessary for the connection of the City's System and the Owner's System as set forth herein. "Point of Delivery" shall mean the point of connection from the City's System to the real property, which will be at a mutually agreed upon location. "TCEQ" shall mean the Texas Commission on Environmental Quality or its successor agency. "Water" shall mean potable water meeting the minimum drinking water standards prescribed by Texas Department of Health Resources and TCEQ, and their successor agencies. 1.02 Exhibits. The following Exhibits attached or to be attached to this Agreement are a part of this Agreement as though fully incorporated herein. Exhibit A Real property description Exhibit B Utility Easement Exhibit C City's Present Rate Ordinance Exhibit D Amendatory Contract entered into by the City of Houston and the San Jacinto River Authority ARTICLE I1 CONSTRUCTION OF IMPROVEMENTS BY OWNER 2.01 Owner's System. The Owner shall acquire or construct, or cause to be acquired or constructed, the Owner's System. No cost of the Owner's acquisition or construction of the Owner's System, including engineering fees, the acquisition of any lands or easements in connection therewith, and obtaining the approval of any regulatory agency, shall be borne by the City. 2.02 City Approval of Plans and Specifications. Prior to the initiation of any construction of the Owner's System, the engineers of the Owner shall submit to the Director for written approval the plans and specifications for the Owner's System. No construction of the 2 Owner's System shall begin until such plans and specifications are approved in writing by the Director. The Owner's Engineer will provide the City, upon completion of the construction, with one set of "as built" drawings sealed by a licensed engineer in the State of Texas, which meet the approval of the Director and certification that the Owner's System was built in accordance with the City's standard plans and specifications and as indicated in the "as built" drawings. The Owner will likewise obtain approval for and supply the City with "as built" drawings, sealed by a licensed engineer in the State of Texas, and similar certification for any subsequent alterations or modifications made to the Owner's System during the term of this Agreement. 2.03 Inspection. The Owner specifically grants the City the right to inspect at any time any and all construction of the Owner's System in order to determine whether such construction is in conformance with the City's standards and the approved plans and specifications. Should all or any portion of the Owner's System be found by the Director not to conform with the City's standards or the approved plans and specifications, then the Owner shall immediately upon receiving written notice from the City of such non-conformance take those remedial steps necessary to meet the required standards, regardless of when such non -conformity is detected. The Owner's System must be brought into conformity with the City's standards and the approved plans and specifications within thirty (30) days of the Owner's receipt of notice of non-conformance, unless an extension is approved in writing by the Director. Failure to adequately and timely remedy the Owner's System shall be construed as an Event of Default for which no additional opportunity to cure shall be given. 2.04 Points of Delivery. The Points of Delivery between the City's System and the Owner's System shall be approved by the Director and shall not be changed without prior written approval of the Director. 2.05 Completion of Construction. Upon completion of the construction provided for in Section 2.01 and subject to the terms of this Agreement, both the City and the Owner agree as follows: (i) the City shall deliver to the Owner and the Owner shall accept from the City water in quantities as specified in Article IV herein, for the price at the Point of Delivery herein provided, consistent with other limitations as stated herein. 2.06 Commencement of Use of Interconnections. The Interconnections shall be placed into operation only upon the inspection and approval of the Interconnections and the Owner's System by the City and the Owner. Furthermore, the City reserves the right to reject any Interconnection designated by the Owner which would, in effect, interfere with or increase the cost of any other facilities or operations which the City might wish to construct or implement, or plan to construct or implement, or which would adversely affect the City's ability to provide water services to any of its customers. 2.07 Water Measuring Equipment, The Owner will, at its sole cost and expense, furnish and install or contract with the City to furnish and install, at any and all Interconnections, 3 all measuring equipment as may be required by the City, including, but not limited to, meters, totalizers, and devices of standard type for measuring and recording accurately the quantity of water delivered within an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow. It is expressly understood and agreed by the parties hereto that a master meter(s), with a double-backflow preventer at all points of interconnection and measuring total flow through the Interconnection having an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow, is required and must be approved and inspected by the City prior to the City being obligated under this Agreement to deliver any water to the Owner. The Owner shall also install, operate and maintain, or contract with the City to install, operate and maintain, as required by the City, pressure regulating devices and equipment. Such measuring equipment shall be approved by the City; and after the City's approval of the installation, the same shall become the property of the City. (1) Inspection. During all reasonable hours, the City and the Owner shall have access to such measuring equipment so installed. The City shall have access to all records pertinent to determining the measurement and quantity of treated water actually delivered hereunder, but the reading of the meters for purposes of billing shall be done by the Owner. (2) Calibration. After approved installation thereof, the City shall perform, at its own cost and expense, periodic calibration tests on the primary measuring equipment so installed in order to maintain the accuracy tolerance within the guarantees of the manufacturer thereof, not to exceed tolerance of two percent (2%), at least once every twelve (12) months. At reasonable intervals, the City agrees to properly check and calibrate the flow, recording the totalizing measuring equipment for the purpose of ascertaining its condition of accuracy. The City agrees to notify the Owner at least forty-eight (48) hours in advance of the time any test is to be made, to permit the Owner to observe such test and to furnish the Owner with a copy of the results of all checks and calibration tests performed on said measuring equipment. If any tests or calibration checks show a condition of inaccuracy, adjustments shall be made immediately by the City so said measuring equipment will register correctly within the aforesaid accuracy tolerance. In addition, the Owner shall have the right to independently check said measuring equipment at any time upon at least forty-eight (48) hours' notification to the Director. (3) Check Meters. The City may install, at its own cost and expense, such check meters in the Owner's pipeline as may be deemed appropriate and the Owner shall have the right of ingress and egress to such check meters during all reasonable hours; provided, however that the billing computation shall be on the basis of the results of the measuring equipment set forth in Section 2.07(a) hereinabove. 4 (4) Inaccuracy Adiustments. If, upon any test, the percentage of inaccuracy of any measuring equipment is found to be in excess of five percent (5%) for the aforesaid given rate of flow, then the Owner's account shall be adjusted for a period extending back to the time when such inaccuracy began, if such time is ascertainable, and if such time is not ascertainable, for a period extending back one-half (%) of the time elapsed since the date of the last test, or, the date of the last adjustment to correct the registration, whichever is later, but not to exceed one hundred twenty (120) days. If, for any reason, the measuring equipment is out of service or out of repair and the amount of treated water delivered cannot be ascertained or computed from the reading thereof, water delivered during the period shall be estimated and agreed upon by the parties hereto on the basis of the best data available. (5) Independent Check of Metering Equipment. In the event of a dispute between the Owner and the City as to the accuracy of the testing equipment used by the City to conduct the test of accuracy upon the meters being used, an independent check may be mutually agreed upon between the Owner and the City to be conducted by an independent measuring equipment company suitable to both the Owner and the City, the cost of such test to be at the Owner's sole expense. (6) Given Rate of Flow. As used in this Article, the expression "given rate of flow" means the total quantities of treated water delivered during the preceding period (usually a calendar month) as reflected by the recording devices, divided by the number of days in the period. ARTICLE III OWNERSHIP, OPERATION AND MAINTENANCE OF SYSTEMS 3.01 Owner's System. The Owner shall own, operate and maintain at its sole cost and expense the Owner's System and will promptly repair any of its facilities so as to prevent leakage. However, should the Owner fail to operate and maintain the Owner's System in a manner consistent with sound engineering principles and should such failure become a danger to the continued proper operation of any portion of the City's System as determined at the sole discretion of the City, then such failure shall be considered an Event of Default. It is expressly understood and agreed that the City at any time upon notice to the Owner may take whatever steps it believes are necessary to preserve the integrity of the City's System, including but not limited to, discontinuing services. 3.02 City's Utility Requirements. The Owner covenants and agrees to comply with Chapter 126, Article V, Division 4 of the City's Code of Ordinances ""and all amendments thereto (the "Utility Requirements"), for water distribution facilities and agrees not to permit 5 plumbing work relating to water service or allow connection to the Owner's System except in compliance with the Utility Requirements and Chapter 18, Article IV of the Code of Ordinances and all amendments thereto (the "Plumbing Code"), and after inspection and approval by the Owner's operator or other authorized representative. The Owner shall, after such inspection and approval and prior to service to the facility, submit to the City an affidavit of inspection certifying that all requirements of the Utility Requirements have been satisfied. The Owner further agrees that all water service connections shall be maintained in compliance with the Utility Requirements and the Plumbing Code of the City. In order to enforce this provision, the City inspectors shall be permitted to act for and on behalf of the Owner or in lieu of the Owner's operator, and the Owner will enforce any notice issued by such inspectors. The Owner will be charged an inspection fee in the amount as specified in Section 2- 595 of the Code of Ordinances, as amended, for each inspection made by the City pursuant to this provision. If any such notices are not complied with, the Owner shall discontinue service upon the request of the City to do so. Failure of the City to act on behalf or in lieu of the Owner shall not be construed as a waiver of the right to so act in the future or to exercise any right or remedy occurring as a result of the Owner's default. Should the Owner for any reason fail to enforce the standards established by the Utility Requirements or Plumbing Code for water or should the Owner fail to comply with the foregoing provisions of this section, such failure shall be an Event of Default. 3.03 Outside Service Contracts. The Owner agrees that should the Owner desire to delegate responsibility for maintenance or for supervision of the Owner's System to any individual or entity other than its own employees holding any permit or certificate required by law, then any such proposed service arrangement, by written contract or otherwise, must be approved in writing by the Director, whose consent shall not be unreasonably withheld, prior to execution by the parties. Failure of the Owner to submit any such proposed service agreement to the Owner prior to its execution shall be considered an Event of Default. Any outside service agreement, whether submitted to the City or not, shall contain a clause terminating the service agreement as to the Owner on the date of dissolution of the Owner by the City. 3.04 Title to and Responsibility for Water. Title to, possession, and control of water shall remain in the City, or its assigns, to the Point of Delivery where title to possession, and control of water delivered under this Agreement shall pass from the City to the Owner; and the Owner will take such title, possession and control at the Point of Delivery. As between the parties hereto, the City shall be in exclusive control and possession of the water deliverable hereunder and solely responsible for any damage or injury caused thereby until the same shall have been delivered to the Owner at the Point of Delivery, after which delivery the Owner shall be in exclusive control and possession thereof and solely responsible for any injury or damage caused thereby, and such party respectively shall save and hold the other party harmless from all claims, demands, and causes of action which may arise while said water is under its respective C ownership and control. The City shall not be responsible in damages for any failure to supply water or for interruption of the water furnished hereunder. The Owner agrees to save harmless the City from all damage to real and personal property occasioned or caused by the making of the water connection or connections herein referred to or caused by the furnishing of water hereunder, and shall also save and keep harmless the City from all damage of any kind, nature and description which may arise as the result of the making of this Agreement. ARTICLE IV QUANTITY AND CAPACITY 4.01 General. All services to be provided by the City herein shall be expressly subject to the payment of the appropriate impact fees, without credit and/or reimbursement, and other costs specified in this Agreement and the City's Code of Ordinances. Subject to the terms and conditions of this Agreement, the City agrees to sell and deliver (or cause to be delivered) to the Owner, the Owner's water requirements of treated water, and the Owner agrees to purchase from City the Owner's treated water requirements for resale during the term of this Agreement for water services to be supplied in the Service Area, subject to the limitations expressed hereinabove. The Owner's total treated water requirements shall mean the total quantity of treated water the Owner needs to conduct operations, use or resell within the Service Area. The maximum amount of total treated water that the City shall be obligated to provide shall be the alternate capacity requirement assigned by the TCEQ to the Owner. As such, the Owner is hereby required to submit a request to obtain alternative capacity requirements from the TCEQ in accordance with 30 TAC §290.45(g) within six (6) months after it has acquired three (3) years of data regarding the daily production of the Owner's System. Until such alternative capacity requirement is obtained, it is stipulated that the Owner's total treated water requirements shall not exceed 1,625 (400 gpd/ESFC) equivalent single-family connections ("ESFCs"). The City shall not be required at any time during the term of this Agreement to provide more than 1,625 (400 gdp/ESFC). Notwithstanding any provision contained herein to the contrary, it is expressly understood and agreed that in no event shall the City at any time during the term of this Agreement be obligated to reserve water in quantities in excess of the number of ESFC's necessary to serve any undeveloped property included within the Service Area and a preliminary plat submitted to the City, plus the number of ESFC's necessary to serve property previously developed or currently under development within the Service Area. 4.02 Capacity Reserved. The City covenants and agrees that upon receipt of impact fees as provided for in Section 5.01 of this Agreement, the City shall endeavor to reserve for the exclusive benefit of the Owner, the capacity in its water supply facilities sufficient to supply and treat the quantities set forth in Section 4.01 of this Agreement. However, the Owner shall not be guaranteed any specific quantity or pressure of water for the services to be provided herein by WA the City if the City's water supply is limited or when the Owner's equipment may become inoperative due to unforeseen breakdown or scheduled maintenance and repairs, and the City is in no case to be held to any liability for failure to furnish any specific amount or pressure of water. 4.03 Service Contracts with Other Entities. The Owner shall not permit any entity located outside the Service Area to connect to the Owner's System during the term of this Agreement without the express prior written consent of the City. Failure to comply with this provision shall constitute an Event of Default. ARTICLE V PAYMENT AND TERMS 5.01 Impact Fees. The Owner shall pay to the City impact fees pursuant to Article IV, Chapter 114 of the Code of Ordinances, Baytown, Texas to purchase water capacity from the City to serve the Service Area. The impact fees may be adjusted from time to time by the City Council, and the Owner shall be required to pay the rate in effect at the time payment is due. The water impact fee shall be one hundred twenty-five percent (125%) of the water impact fee pursuant to Section 114-99(b) of the City of Baytown Code of Ordinances for each equivalent single-family connection ("ESFC") charged to development within the City at the time of collection. The water impact fee shall be collected at the time the Developer submits each final plat. 5.02 Monthly Service Charge. The Owner shall pay to the City in monthly installments a service charge (to cover the City's operation and maintenance) equal to the City's minimum charge and additional charges, if any, applied to the actual quantity of treated water delivered to the Owner during the month in question per connection. The charge shall be calculated on the basis of the metered water use and otherwise for each user connected to the Owner's system, consistent with the provisions for such calculation found in the City's Water Service Rate Ordinance, which may be amended from time to time. A copy of the City's present rate ordinance for water service, as set forth in Chapter 98, Article III of the Code of Ordinances of the City of Baytown, in effect as of the date of this Agreement, is attached as Exhibit "C," and incorporated herein. For example, as of the Effective Date of this Agreement for water service for commercial units, each commercial unit individually metered for the consumption of water shall be charged a monthly water service charge based the meter size and upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in Chapter 98, Article Ill, Section 98-59(a) for nonresidential service. The Owner agrees that the payment due herein shall be calculated on a per residential/commercial connection basis by using the water delivered as measured by the master meter(s) or individual residential/commercial meters, whichever is greater. Should a disparity between 3 the master meter(s) and meters of the individual residences or commercial developments exist and the master meter(s) records a greater water usage, the Owner shall be responsible for the payment of the amount of water usage indicated by the master meter(s) at the rate hereinabove expressed. As used in this section, the term "day" shall mean a period of twenty-four (24) consecutive hours beginning at eight o'clock (8:00) a.m. on one calendar day and ending at eight o'clock (8:00) a.m. on the next succeeding calendar day. The term "month" shall mean a period beginning at eight o'clock (8:00) a.m. on the first day of a calendar month and ending at eight o'clock (8:00) a.m. on the first day of the next succeeding calendar month, except that the first month or partial month shall begin on the day of the initial delivery of water hereunder, and the minimum monthly payment, if any, shall be prorated for such partial month. The measuring equipment used for the measurement of treated water shall be read by the Owner on the last day of each month (or at such period of frequency arranged between the parties) at eight o'clock (8:00) a.m., or as near thereto as reasonably practicable; and on such day, the Owner shall account and certify to the City the amount of treated water delivered to the Owner. Additionally, on that day, the Owner shall render to the City an accounting of the service charges as provided in Section 5.04. On receipt of the above -described accounting, the Director will bill the Owner for the service charges accrued during the preceding month. Payment by the Owner to the City shall be made within thirty (30) days following the receipt of the bill. 5.03 Right of Inspection. City shall have the right at any time by actual count or by an inspection of the Owner's books, records and accounts to determine the number of water connections served by the Owner, and the Owner shall have the right at any time to inspect the City's books, records and accounts to verify the charges levied by the City. It shall be the duty of the parties to cooperate fully with each other in any such count, inspection or audit. All books, records and accounts shall be open for inspection at all reasonable hours for any authorized representative of the parties. 5.04 Reporting Requirements. Each month, the Owner shall provide to the City a preliminary operating report in a form approved by the City's Director of Finance. Such preliminary operating reports shall be tendered to the City on or before the 10`h day of each month concerning the prior month's operations. After receipt of each preliminary operating report, the City will generate an invoice specifying the amount due and owing for the report period. The Owner shall present both the preliminary operating report and the corresponding invoice to its Board of Directors each month on or before the third Thursday of the month for the Board's review and approval. On or before the Friday after the third Thursday of each month, the Owner shall tender to the City a final operating report for the previous month in a form approved by the City's Director of Finance containing a certification by the presiding officer of the Board that the information contained in the report is true and correct. Should there be any 9 difference between the preliminary and final operating reports, which affects the amount due and owing to the City, the City shall adjust the next month's bill to address such difference. 5.05 Payments. Payment by the Owner to the City shall be made within thirty (30) days following the receipt of the invoice specified in Section 5.04 hereinabove. Any sums payable by the Owner to the City under this Agreement which are not paid within thirty (30) days following the receipt of the invoice shall bear interest in accordance with Section 2251.025, Texas Government Code. If the Owner defaults on the payment of any invoice, and the amount so past due and unpaid, including interest thereon, is collected by the City by suit, there shall be reasonable attorneys' fees added thereto for collection thereof by suit. Failure to pay charges when due shall constitute an Event of Default. Notwithstanding any of the above, in the event the Owner fails to tender payment of any amount when due and such failure continues for thirty (30) days after notice in writing to the Owner of such default, the City may suspend delivery of services offered hereunder, but the exercise of such right shall be in addition to any other remedy available to the City. 5.06 Service Charge Modifications. Although the City believes that the present charges for such services as set forth herein are fair and reasonable, nonetheless, the parties realize that due to unforeseen contingencies, the City may increase the charges for such services, whether by amendment of the rate schedule for like services outside the City limits upon which the service charges levied hereunder are based, or by other means. 5.07 Operating Expense and Covenants as to Rates. The sums to be paid the City by the Owner under the terms of this Agreement are declared by the Owner to be an essential cost of operating and maintaining the Owner's System as a part of the Owner's System and such costs shall be first charged upon the gross revenues received from the Owner's System as a part of the Owner's System, and such costs shall be a first charge upon the gross revenues received from the Owner's operation of said system. The Owner agrees to establish and maintain rates sufficient to pay all costs and expenses of operation and maintenance of the Owner's System. 5.08 Events of Default. An Event of Default, as stated from time to time herein, shall constitute a material breach of this Agreement. For any material breach of this Agreement, the City may, and the Owner explicitly recognizes the City's right to, terminate service under this Agreement and to seek all remedies at law or in equity necessary to enforce the provision(s) violated; provided however, that this Agreement shall not be terminated prior to the City's giving thirty (30) days' written notice to the Owner of the Event of Default complained of and a reasonable opportunity for the Owner to cure said default, or, if not curable in that time as determined at the sole discretion of the City, to commence substantial curative efforts within thirty (30) days and faithfully prosecute the same. Termination of service pursuant to this section shall not limit either party to any other remedy at law or in equity. U ARTICLE VI PERFORMANCE REGARDING TREATED WATER SERVICES The City covenants and agrees that it will not contract for the sale of water to other users to such an extent or for such quantities as to impair the City's ability to perform fully and punctually its obligations to the Owner under this Agreement. In case of temporary shortage of water notwithstanding the City's compliance with the provisions of this Article, the City shall distribute the available supply as provided by the laws of the State of Texas. It is specifically agreed and understood that this Agreement contemplates that the Owner will resell the water purchased pursuant to the terms hereof. Pursuant to the Amendatory Contract entered into by the City of Houston and the San Jacinto River Authority, a copy of which is attached hereto as Exhibit "D" and incorporated herein for all intents and purposes, and not withstanding any other provision of this Agreement to the contrary, the Owner covenants and agrees that it takes the treated water under this Agreement from the City for solely municipal purposes, as such term is defined by the TCEQ rules, currently in effect or hereinafter amended, and no other purposes. Such treated water shall be sold, distributed or used and ultimately consumed only for residential household and municipal purposes exclusively within the Owner's Service Area. The Owner understands and agrees that the City, the Baytown Area Water Authority, the City of Houston or the San Jacinto River Authority, or any combination thereof, may enforce the covenants contained in this Article by an action brought directly against the Owner. In the event that the City maintains any legal proceeding to enforce such covenants, the Owner agrees to indemnify the City in the amount of all expenses relating to the legal proceeding, including, but not limited to, costs of court and reasonable attorney's fees. The Owner acknowledges that the City may be liable to the Baytown Area Water Authority, the City of Houston and/or the San Jacinto River Authority for monetary damages in the event that the Owner or any purchaser of water from or through the Owner fails to comply with the restrictions and limitations on the sale of water set out in this Article. The Owner acknowledges that such monetary damages would amount to seventy-five percent (75%) of the consideration or revenue received by the City for the estimated amount of water distributed, sold or used in violation of such restrictions or limitations plus all litigation expenses, reasonable attorney fees, and all other remedies available to the Baytown Area Water Authority, the City of Houston and/or the San Jacinto River Authority. The Owner hereby agrees to fully indemnify, hold harmless and defend the City from and against any such expenses and liability which the City might incur or any loss the City might suffer as a result of any failure by the Owner or any purchaser of water from or through the Owner, to comply with such restrictions and limitations. The Owner further agrees to include covenants in any sales or contracts for sale of water by the Owner to any other entity to ensure that said other entity will likewise indemnify, hold harmless and defend the City. The Owner agrees to submit the wording of such covenants for the written approval of the City prior to entering into such contracts. The Owner acknowledges that the City of Houston may be liable to the San Jacinto River authority for monetary damages in the event that the Owner or any purchaser of water from or through the Owner fails to comply with the restrictions and limitations on the sale of water set out in this Article. The Owner acknowledges that such monetary damages would amount to seventy-five percent (75%) of the consideration or revenue received by the City of Houston for the estimated amount of water distributed, sold or used in violation of such restrictions or limitations plus all litigation expenses, reasonable attorney fees, and all other remedies available to the San Jacinto River Authority. The Owner hereby agrees to fully indemnify, hold harmless and defend the City of Houston from and against any such expenses and liability which the City of Houston might incur or any loss the City of Houston might suffer as a result of any failure by the Owner or any purchaser of water from or through the Owner, to comply with such restrictions and limitations. The Owner further agrees to include covenants in any sales or contracts for sale of water by the Owner to any other entity to ensure that said other entity will likewise indemnify, hold harmless and defend the City of Houston. The Owner agrees to submit the wording of such covenants for the written approval of the City prior to entering into such contracts. On or before the first anniversary of the date this Agreement is signed, the Owner shall approve and implement and throughout the term hereof remain in full compliance with a water conservation program in accordance with the requirements of the TCEQ. Such plan and any amendments thereto shall be submitted to the appropriate authority as required by state law for review and approval. In the event that the TCEQ adopts new requirements, the Owner shall adopt an amended plan and submit same to the appropriate authority for review and approval. Within thirty (30) days after the term of this Agreement, the Owner shall furnish the City with a statement, under oath, showing the quantities and sources of all water for use or resale by the Owner. ARTICLE VII MISCELLANEOUS PROVISIONS 7.01 Force Majeure. In the event any party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, it is agreed that on such party's giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied upon, then the obligations of the party giving such notice, to the extent it is affected by force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability but for no longer period. Such cause shall as far as possible be remedied with all reasonable dispatch. 12 The term "force majeure" as used herein, shall include, but not be limited to acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades, insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions, breakage or damage to machines or pipelines and any other inability of either party, whether similar to those enumerated or otherwise and not within the control of the parties claiming such inability, which by the exercise of due diligence and care such party could not have avoided. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party having the difficulties, and the above -referenced requirement that any force majeure be remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to demands of the opposing party when such course is inadvisable in the discretion of the party having the difficulty. 7.02 Approval. Whenever this Agreement requires or permits approval or consent to be hereinafter given by any party, such approval or consent shall not be unreasonably withheld, and, if finally given, shall be effective without regard to whether such approval or consent is given before or after the time required herein. Such approval or consent on behalf of a party shall be evidenced by an ordinance or resolution adopted by the governing body of the party, or by an appropriate certificate executed by a person, firm or entity previously authorized to determine and give such approval or consent on behalf of the party pursuant to an ordinance or resolution adopted by the governing body, unless stated otherwise herein. 7.03 Address and Notice. Unless otherwise provided in this Agreement, any notice, communication, request, reply or advice (herein severally and collectively for convenience, called "Notice") herein provided or permitted to be given, made or accepted by any party to the other must be in writing and may be given or served by depositing the same in the United States mail, postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram, when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this Agreement, from and after the expiration of three (3) days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party to be notified. However, in the event of service interruption or hazardous conditions, neither party will delay remedial action pending the receipt of formal notice. For the purpose of notice, the address of the parties shall, until changed as hereinafter provided, be as follows: 13 If to the City, to City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax: (281) 420-6586 If to the Owner, to Tarina Properties, LLC Attn: President, Tajddin Momin 3035 Dahigren Trl Sugar Land, TX 77479 The parties shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address, provided at least fifteen (15) days' written notice is given of such new address to the other parties. 7.04 Assignability. This Agreement shall bind and benefit the respective parties and their legal successors and shall not be assignable in whole or in part by any party without first obtaining written consent of the other party. 7.05 Regulatory Agencies. This Agreement shall be subject to all present and future valid laws, orders, rules and regulations of the United States of America, the State of Texas, and of any regulatory body having jurisdiction. 7.06 No Additional Waiver Implied. The failure of any party hereto to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement, shall not be construed as a waiver or relinquishment of the future performance of any such terms, covenants or conditions by any other party hereto, but the obligation of such other party with respect to such future performance shall continue in full force and effect. 7.07 Modification. Except as otherwise provided herein, this Agreement shall be subject to change or modification only with the mutual written consent of the parties hereto. 7.08 Parties in Interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third party. The City shall never be subject to any liability in damages to any customer of the Owner for any failure to perform its obligations under this Agreement. 7.09 Captions. The captions appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or 14 given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. 7.10 Severability. The provisions of this Agreement are severable, and if any provision or part of this Agreement or its application thereto to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provisions or part of this Agreement to other persons or circumstances shall not be affected thereby. 7.11 Merger. This Agreement embodies the entire understanding and agreement between the parties as to the water supply services, and there are no prior effective representations, warranties or agreements between the parties. 7.12 Construction of Agreement. The parties agree that this Agreement shall not be construed in favor of or against any party on the basis that the party did or did not author this Agreement. 7.13 Term. This Agreement shall be in force and effect from the date of execution hereof for a term of thirty (30) years; provided that (i) City's contract with the Baytown Area Water Authority for the purchase of treated water in sufficient quantities to supply the Owner under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged; and (ii) the Baytown Area Water Authority's contract with the City of Houston for the purchase of raw water in sufficient quantities to supply the Baytown Area Water Authority under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged. Should the City's contract with the Baytown Area Water Authority or the Baytown Area Water Authority's contract with the City of Houston be terminated for any reason or should the City become legally unable to supply the Owner, then this Agreement shall terminate automatically at the time of such termination or inability. This Agreement shall be automatically extended for additional five (5) year terms unless either party gives written notice of termination three (3) months prior to the date of any such automatic extension. However, both parties expressly understand and agree that should any portion of the property involved in this Agreement become annexed by the City of Baytown for full purposes, this Agreement may terminate with respect to such area at the sole option of the City. 7.14 Agreement Read. The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. 7.15 Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. 15 '[REMAINDER OF PAGE INTENTIONALLY. LEFT BLANK.] .16 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this day of ATTEST: ANGELA JACKSON, City Clerk APPROVED AS TO FORM: SCOTT LEMOND, City Attorney 17 CITY OF BAYTOWN JASON E. REYNOLDS, City Manager C)WNER: TARIN.k x TTLS. LL.C' -""- (Signature) �a��1�n Mo�•�n t Printed Name) (Title) STATE OF T EAAS COUNTY 01' IL-\RRIS &-fire one on this daN Rcrx)nallN aprvured - � Akli ME Vk%Ivi in his -her capacit% as _ �Y a c " _ on h.-half ot' such T^ r )R Trfj I Ly known to me: . / prtl�ed it-) nie on the oath of i_. _ : or :V/ proved to me throuL-h his. her current De; ,-t v s L: c tKcA— ;description of identification card or ether document issued hN the federal vo%ernmem or and hate zolernment [hit %contains the photograph and si=nature of the acknox%lcd i%, jvrson tcheck one) to be the person %hose name i; suhNcnhed ►o the l'orcgtiin_, instnintent and ecknoyledged to me that he she executed the ;ame t%)r the purTxl;c,, and consi-deration therein expreis d. fh Sl'BSCRI141-D \�1.) SWORN hvi-Ore me triis V da% O \o uNkJ'C in a IrOr the State of fe\a� ?�y SAFtiJ MAKNOJI,�, :g CCatary Pvh}ic, Stair at Teals x i Comm Exiwe, 10-24-202e �� nd Notary 10 135142UO 30 m w 86 ON �(VA4 v' ci 0 d s qyOAPO � �� o• d e 66.1 \ f _ s CHAR18£RS COUNTY PUBLIC R.O. ly (TO 8£ RECORDED)_ -- — - \ O z �1 RESIDUE Of `- I CALLED 17.55 ACRES COSTAL INDUSTRIPC. WATER C.0 D R ORI,r — VOL. 315, — CALLED 392.6772 AC. / CHAMBER C COUNTY C.C.f. N0�2019GISTITER C54 0021NA1, LP / I I / \ cs W a FZ� a / L4% � g 1 n o _ N mQ z ` Pg 'IL CL 0 "F Z q Q� j� LIJ < 04 � 333W N ago NN cs ul zce4n��n m N Uf O O w ulzN Z J N 7 J J L— IM w o s 17 3 J Y C. CD 0 O m w ul O leZ w ul a 0 U O UP V) CNI �- N X ,w wawQ,- �wo�wZ OHc�?> a �wrpM=)0 X=UQ0� wP=QOw �n Zn N -j _ UU WINDROSE IAIIU SIITtVFYING I PIATnt)(- DESCRIPTION OF 0.0300 ACRES OR 1,307 SQ. FT. A TRACT OR PARCEL CONTAINING 0.03Ov ACRES OR 1,307 SQUARE FEET OF LAND SITUATED IN IIH G.L. SHORT SURVEY, ABSTRACT NO. 22.8, CHAMBERS COUNTY, TEXAS. BERIG OUT 01: THE RESIDUE OF A CALLED 4-1.0166 ACRE. TRACI OF LAND CONVEYED TO 99 S. LAND DEVELOPMENT. LLC, RECORDED IN VOLUME IVOL•) I1 1) 1799, PAGE (PG.) 333, CHAMBERS COUNTY DEED RECORDS (.C.C.D.P,.), Willi SAID 0.0300 ACRE TRACT BEING IMORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, WITH ALL BEARINGS BASED ON THE TEXAS STATE: PLANE COORDINATE SYSTEM. SOUTH CENTRAL 10Nr. (NAD 83). COMMENCING AT A POINT AT THE. INTERSECTION OF THE WESTERLY RIGHT orWAY(R.O.W.) LINE OF STATE 1110"WAY NO.99 IR.O.W. VARIES) AND THE NORTHERLY R.O.W. LINE OF FM. 565 (R.O.W. VARIES): THENCE. SOUTH 50 DEG. 27 MIN. 59 SEC. WIST. ALONG IHL- IjORHLWFSIERI.Y R.O.W. LINE: OF SAID FM. 565. A. DISTANCE: OF 142.49 FEET TO AN ANGLE POINT: THENCE, SOUTH 50 DEG. l4 MI,1. 41 SEC. WEST, CONIIPIUING AIOt-TG THE NORIHWESIERL.Y R.O.W. LINE OF SAID F.m. 565, A DISTANCE OF 135.81 FEET 10 A. 1/2. INCH IRON ROD rOLIPID I OR THE BEGINNING OF A NON -TANGENT CURVE TO EHE RIGHT; THENCE. CONTINUING ALOtNG THE NORIHWESTERLY R.O.VJ LINE OF SAID F&I. 565 AND AI-ONG, SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 1.849.86 FEET. A CENTRAL ANGLE OF 0/ DEG. 11 NAIN. 37 SEC., AN ARC LENGTH OF 235.49 FEET, AND A CHORD BEARING AND DISTANCE OF SOUTH 54 DEG. 01 MIN. 25 SEC. WEST .. 235.33 FEET TO THE SOUTHEAST CORNER AND POINT OF BEGINNING OF THE HEREIN DESCRIBED EASEMENT; THENCE, CONTINUING ALONG THE NORTHERLY R.O.W. LINO Of: SAID F.M. 565 AND ALONG A CURVI: TO THE RIGHT, HAVING A RADIUS OF 1,849,86 FEET, A CENTRAL ANGLE OF 01 DEG. 34 MIN. 30 SEC.. AN ARC LENGTH OF 50.85 FEET, AND A CHORD BEARING AND DISTANCE OI' SOUTH 58 DEG. 27 MIN. 29 SEC. WEST - 50.85 FEET TO A. 5/8 INCH IRON ROD FOUND ON THE COMMON LINE Or SAID RESIDUE OF A CALLED 4-1.0166 ACRE TRACT AND ❑LL' RESIDUE OF A CALLED 17.55 ACRE TRACT CONVEYED TO COSTAL INDl1STRIAL WATER AUTHORITY. RECORDED III VOL. 315. PG. 498. C.C.D.R.. FOR THE SOUTHWEST CORNER OF THE HEREIN DESCRIBED EASE MrN1: THENCE, NORTH 07 DEG. 29 tiNN. 40 SFC. W ST. ALONG SAID COMMON LINE. A DISTANCE Or 2/.25 FLFT 10 THE NORTHWEST CORNER OF THE HEREIN DESCRIBED FASEi•tE-NT. THENCE, OVER AND ACROSS SAID RFSIDUL 01 A CALLED •1-1.0166 ACRE: TRACT, WITH A NON -TANGENT CURVE' TO IhE LEFT, NAV'NG A RADIUS OF 1.824 86 FFIr, A CENTRAL ANGLE OF 01 DEG. Al MIN. 10 SEC.. AN ARC: LENGTH OF 53.10 FEET AND A CHORD BEARING AND DISTANCE Or NORTH 58 DEG. 03 MIN. 53 SEC. EAST - 53.70 FEET TO ENE: END OF SAID CURVE: THENCE, SOUTH 02 DEG. 37 MIN. I I SEC.. EASI, A DISTANCE OF 2.8.85 rni TO THE POINT OF BEGINNING, AND CONTAINING 0.0300 ACRES OR 1.307 SOUARE FEET OF LAND. AS SHOWN ON JOB NO. 54676-UE-30. PREPARED BY V:IFEDROSE I AND SERVICES. ROBERT KNESS \`._. ;'� t '! DAIF: R.P.L.S. NO. 6486 STATE OF TEXAS FIRM REGISTRATION ENO. 10108801 Stieo 2 of 2 J13.450.228t 1 11111 SIC itMOND AVI SIl 150, HOUS10iN. 1x //002 q I 1 bMH�.0 o I u�o. 9i O,a�%1 ,p o' . ddo st oy�bo�o� J u 0, �y byye A§ g CHAR COON'Y PUBLCC R. .0.IV. �\ (TO BE RECOROM RESIDUE OF CALLED 17.55 ACRES COSTAL INDUSTRGIIAL WAT C. RER AUTHORITY VOL. 315, CALLED 392.6772 AC. CHAMBER C COUNTY C.C.F. NOO2019CS TERMINAL. L.P. 49 y a z of W 2�pZ m ~�� V jdS G 88 y OFT `Z �V ;0 pO1� �N �a yzN�a m WWm fA� DOODF Yiz �m mo �Td �aZ=4 d ri e6 J W NO .a t0 J 3: Bm# W W W W} N (9WI�iOv R � 00 z�o*nv►iou� z�n��v;n000 7 {vren7-i`�:nP� mioieonw�i�i1On`r w w ZZZZIA0 � L 3° W zo 4/)a-10 Z O1 "; AGz � >O ZatS a c N � z u� J a� �IN �I rcl irl rc�a N ri N X N LLJ wQwQr- u- W � r lL Z oN�Z>> OO W � o _>---wCnC) r-- xjQ'c wrQ�0Lu m CO tn H NLo -T Q o �U WINDROSF- IAND SURVEYING � F'lATtIIJG DESCRIPTION OF 0.3457 ACRES OR 15,059 SQ. FT. A TRACT OR PARCEL. CONTAINING 0.3457 ACRFS OR 15,059 SQUIRE FEET OF LAND SITUATED IN THE G.L. SHORT SURVEY, ABSTRACT NO, 228, CHAMBERS COUNTY, TEXAS, BER,IG OUT OF THE RESIDUE OF A CALLED 44.0166 ACRE TRACT OF LAND CONVEYED TO 99 S. LAND DFVELOPMENT , LLC, RECORDED IN VOLUME (VOL.) (11) 299. PAGE (PG.) 333, CHAMBERS COUNTY DEED RECORDS (C.C.D.R.), WITH SAID 0.3457 ACRE TRACT BEING MORE PARTICUI-ARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, WITH ALL BEARINGS BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE INAD 83): WAY NO. 99 BEGINNING AND THE NORTHWESTERLY R.O.W. LINE OF FM ESTERLY `565TI OW VOARIES), FOR AN ANGLE TPOINT OF THE HEREIN VARIES) ON DESCRIBED EASEMENT: THENCE, SOUTH 50 DEG. 27 MIN. 59 SEC. WEST. ALONG THE NORTHWESTERLY R.O.W. LINE OF SAID FM. 565, A DISTANCE OF 142.49 FEET 10 AI•I ANGLE POINT: THENCE, SOUTH 50 DEG. 14 MIN. 47 SEC.'NESI, CONTINUING ALONG THE NORTHWESTERLY R.O.W. LINE OF SAID NO. 565, A DISTANCE OF 185.81 FEET TO A 1/2 INCH IRON ROD FOUND FOR THE BEGINNING OF A NON-IANGF.NT CURVE TO THE: RIGHT: THENCE, CONTINUING ALONG THE NORTH R.U.W. LINE OF SAID FM. 565 AND ALONG SAID CURVE TO THE RIGHT. HAVING A RADIUS OF 1,849.86 FEET, A CENTRAL ANGLE OF 02 DEG. 04 MIN. 29 SEC., AN ARC LENGTH OF 66.98 FEET. AND A CHORD BEARING AND DISTANCE OF SOUTH 51 DEG. 24 MIN. 51 SEC. WEST - 66,98 FEET TO TIIE MOST SOUTHERLY CORNER OF THE HEREIN DESCRIBED EASEMENT: THENCE, NORTH 64 DEG. 30 MIN. 16 SEC. WEST, OVER AND ACROSS SAID 4 4.0166 ACRE TRACT, A DISTANCF OF 28.10 FEET TO THE MOST WESTERLY CORNER OF IIIE HEREIN DESCRIBED EASEMENT: THENCE, OVER AND ACROSS SAID RESIDUE OF A CALLED 4-1.0166 ACRE TRACT THE FOIIOWING FIVE (5) COURSES AND DISTANCES; ALONG A NON -TANGENT CURVE TO THE LEFT, HAVING A RADIUS OF 1.824.86 FEET. A CENTRAL ANGLE OF 02 DEG. 28 MIN. 25 SEC., AN ARC LENGTH OF 78.79 FEET AND A CHORD BEARING AND DISTANCE Or NORTH 51 DEG. 36 MIN. 52 SEC. EAST - 78.78 FEET TO THE END OF SAID CURVE; NORTH 50 DEG. 14 MIN. 47 SEC. FAST, A DISTANCE OF 185.83 FEET TO AN ANGLE POINT; NORTH 50 DEG. 27 MIN. 59 SEC. FAST, A DISTANCE: OF 135.(X) FEET TO AN ANGLE POINT: NORTH 16 DEG. 55 MIN. 09 SEC. EAST. A DISTANCE OF 201.15 FFFT TO THE PIORTH CORNER OF THE HEREIN DESCRIBED EASEMENT: SOUTH 73 DEG. 06 MIN. 02 SEC. FAST, A DISTANCE OF 25.00 FEET TO A POINT ON THE VfESfERLY R.O.W. LINE OF SAID STATE HIGHWAY 99, SAME BEING flIE P IORTI (EAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE, SOUTII 16 DEG. 55 MIN. 09 SEC. WEST, ALONG ME WESTERLY R.O.W. LINE: OF SAID STATE HIGHWAY 99, A DISTANCE OF 208.69 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.3457 ACRES OR 15.059 SQUARE FEET Of LAND, AS SHOWN ON JOB NO. 54676-UF-3, PREPARED BY WINDROSE IAND SERVICES. •1.��`•?`°f�;i' jai:• ..... ....................... ROBERT KNESS R.P.L.S. NO. 6486 STATE OF TEXAS FIRM REGISTRATION NO. 10108800 11-15-19 DATE: Sheel 2 ul 2 %13.•558.7?AI I 1111 I RICIIMOT•ID AVE . SIC 150. floUslON, IX //082 ' EXHIBIT "B" STATE OF TEXAS) COUNTY OF CHAMBERS) FIELD NOTES of an 88,2886 acre tract of land situated in the Benjamin Winfree Survey, Abstract 28, Chambers County, Texas and being all of the residue of that certain 93,30329 acres (Tract One) as conveyed by A. D. Smart, et ux, to ADS Smart Land, Ltd. by Deed dated March 10, 2006 and recorded in Volume 858 at Page 69 of the Official Public Records of Chambers County, Texas. Said 93.30329 acres also being out of and a part of that certain 181.26 aore tract ($hare No. 1) as described in Volume 260 at Page 609 of the Deed Records of Chambers County, Texas. This 88,2886 acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE; BEARINGS ARE GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.999897792. REFERENCE IS MADE TO THE PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 5/8 inch iron rod, with cap marked "Cotton Surveying", found in the West right- of-way line of State Highway 99 (right-of-way width varies) at the Northeast corner of said 93.30329 acres and the Southeast corner of that certain 129.96 acre tract of land conveyed by Joseph Kilgore Heirs to Grand Parkway/Kilgore Parkway, LP, by Deed dated August 20, 2008 and recorded in Volume 1067 at Page 264 of the Official Public Records of Chambers County, Texas. Said point being in the North line of said Wlnfree Survey and the South line of the Jacob Townsend Survey, Abstract 25, Chambers County, Texas and being the Northeast corner and POINT OF BEGINNING of this tract. Said BEGINNING POINT has a State Plane Coordinate Value of Y=13,861,546.84 and X=3,278,063,90; from which a 5/8 inch iron rod (found) bears South 42°19'09" West 0.85 feet. THENCE: South 02°33'26" East along the Fast line of this tract, the East line of said 93.30329 acres and the West right-of-way line of said State Highway 99, for a distance of 2532.09 feet to a 5/8 Inch Iron rod found for the BEGINNING POINT of curve to the right, conenvo Westerly. THENCE: Along and around said curve to the right, in a Southerly direction, along the East line of this tract and the West right-of-way line of said State Highway 99, said curve having a radius of 2000.00 feet, a central angle of 02*51'53" and a ohord bearing and distance of South 06°39'28" West 713.55 feet, for an are length of 717.39 feet to a 1/2 Inch iron rod, with cap (BHA), sot for the TERMINATION POINT of said curve. THENCE: South 16055'00" West along the East line of this tract and the West right-of-way line of said State Highway 99 for a distance of 594,82 feet to a 5/8 inch iron rod, with aluminum TXDOT cap, found for the Southeast corner of this tract and an interior corner of said State Highway 99. PAGE 2 - 88,2886 ACRES. THENCE: South 83°57151" West along the South line of this tract and an exterior right -of --way line of said State Highway 99 for a distance of 77.91 feet to a 5/8 inch iron rod, with aluminum TXDOT cap, found for the Southwest corner of this tract and the intersection of said State Highway 99 right- of-way line with the East right-of-way line of Needlepoint Road (right-of-way width varies, approximately 80 feet wide). Said point being In the West line of said 93.30329 acres. THENCE: North 28°59'24" West along the West line of this tract, the West line of said 93,30329 acres and the East right-of-way line of said Needlepoint Road for a distance of 1739.66 feet to a 1/2 inoh iron rod found for an angle point In said line. THENCE: North 27°02'42" West along the West line of this tract, the West line of said 93,30329 acres and the East right-of-way line of said Needlepoint Road for a distance of 336.24 feet to a 1/2 inch iron rod found for an angle point In sold line. THENCE: North 02005147" West along the West line of this tract, the West line of said 93,30329 acres and the East right-of-way line of said Needlepoint Road for a distance of 1033.61 feet to a lit inch iron rod, with cap (BHA), set for an angle point In said line. THENCE: North 01°01'08" West along the West line of this tract, the West line of said 93.30329 acres and,the East right-of-way line of said Needlepoint Road for a distance of 81.47 feet to a V x 1' creosote fence corner post for an angle point in said line. THENCE: North 08057130" East along the West line of this tract, the West line of said 93.30329 acres and the East right-of-way line of said Needlepoint Road for a distance of 89.98 feet to a V x V creosote fence corner post found for an angle point in said line. THENCE: North 17131'56" East along the West line of this tract, the West line of said 93.30329 acres and the East right-of-way line of said Needlepoint Road for a distance of 787.00 feet to a 5/8 inch iron rod, with cap marked "Cotton Surveying", found in the South line of said Townsend Survey and the North line of said Winfree Survey for the Northwest corner of this tract, the Northwest corner of said 93.30329 acres and the Southwest corner of said 129.96 acres and a Southeast corner of that certain 270.727 acre tract conveyed by Joseph Kilgore Hairs to Grand Parkway/Kilgore Parkway, LP, by Deed dated August 20, 2008 and recorded in Volume 1067 at Page 264 of the Official Public Records of Chambers County, Texas; from which a 518 inch Iron rod, with cap marked "Cotton Surveying", found in a South line of said 270.727 awes at the Northwest corner of that certain 17.55 acres conveyed by Robert Matherne, Trustee - Robinson Tract to Coastal Industrial Water Authority by Deed dated June 1, 1970 and recorded in Volume 315 at Page 498 of the Deed Records of Chambers County, Texas and the Northeast corner of that certain 2.47 acre tract conveyed by Kilgore Heirs to Greg Angel, Trustee, bears South 87°40'42" West 235.81 feet; and a 2 inch Iron pipe (bent) found for an interior corner of said 270,727 acres and the Northwest corner of said called 2.47 acres bears South 87°40'42" West 510.56 feet (called 507.97 feet). Said 2 inch iron pipe being the Northwest corner of said Winfree Survey, an Interior corner of said Townsend Survey and the Northwest corner of the heretofore mentioned 181.26 acre tract and has a State Plane Coordinate Value of Y=13,861,485.44 and X=3,276,549.42. PAGE 3 - 88,2886 ACRES. THENCE: North 87°4942" East along the North line of this tract, the North line of said 93.30329 acres, the North line of the Winfiee Survey, the South line of said 129.96 acres and the South line of said Townsend Survey for a distance of 1005.33 feet (called 1007.39 feet) to the PLACE OF BEGINNING and containing within these boundaries 88.2886 acres of land. SURVEYOR'S CERTIFICATE 1, Jullene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared from an actual survey made on the ground, under my supervision, in July of2011 and that all lines, boundaries and landmarks are accurately described therein. This description is based on the Land Title Survey and plat made by me on July 27, 2011 and revised on October 4 and October 7, 2011. WITNESS my hand and seal at Baytown, Texas, this the 7th day of October, A, D., 2011. i ene Ramsey-' Registered Professional Land Surveyor No. 4379 q'I �C:- �" �Th I1-3919.fdn.88.2886ac.doc .................. JULIFNE RAMsFy.'_Sui ?Zjj r' \a 437t1 P~J� STATE OF 'TEXAS) COUNTY OF CHAMBERS) FIELD NOTES of a 44,0166 acre tract of land situated in the Benjanun Winrftec Survey, Abstract 28, Chambers County, Texas and being all of'tile residue of that certain 24.8275 acres (Tract Two -called 24.861 acres) and all of the residue of that certain 28.8542 acres (Tract Three) as conveyed by A. D. Smart, et ux, to ADS Smart Land, Ltd. by Deed dated March 10, 2006 and recorded in Volume 858 at Page 69 of the Official Public Records of Chambers County, Texas. Said tracts also being out of and a part of that certain 181.26 acre tract (Share No. 1) as described in Volume 260 at Page 609 of the Dead Records of Chambers County, Texas. This 44.0166 acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: BEARINGS ALtE GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.999897792. REVRRENCE IS MADE TO THE PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 1/2 inch iron rod, with cnp (BHA), set in the North right-of-way line of F. M. Highway 565 (120 feet wide right-of-way), in the East line of that certain 17.55 acres conveyed by Robert Matherne, Trustee - Robinson. Tract to Coastal Industrial Water Authority by Deed dated June 1, 1970 and recorded in Volume 315 at page 498 of the Deed Records of Chambers County, Texas and the West line of said 24.8275 acres. Said point being the Southwest corker and PO1NT OF J3RGiNNING of this tract and has a State Plane Coordinate Value of Y=13,855,782.19 and X=3,276,954.46; from which sucker rod (found leaning) at a fence corner bears South 07°48'02" East a distance of 27.63 feet.. THENCE: North 07"29'49" West along the West line of this tract, the West line of said 24.8275 acres and the East line of said 17.55 acres for a distance of 103.26 feet to a fence corner post found for all angle point in said line. THENCE: North 02°36'07" West along the West line of this tract, the West line of said 24.8275 acres mid the East line of said 17.55 acres for a distance of2659.97 feet to a 1/2 inch iron rod, with cap (13I1A), set for the Northwest con ier of this tract, the Northwest corner of said 24.8275 41 acres and tileasGrac aebt corner of Deed daledOctober 24, 2003 t certain called 8anda recorded u Volume 656 at Page 382 cres conveyed by Le onel Garcia, et ux, to Aduan Y of the Official Public Records of Chambers County, Texas. THENCE: North 67050'37" East along the North line of this tract, the North line of said 24,8275 acres and the South line of said called 2.8,11 acres for a distance of 424.77 feet to a 1/2 Inch iron rod, with cap (BHA), set in the West right-of-Nvay line of Needlepoint Road (right-of-way width varies - approximately 80 feet wide) for the Northeast corner of this tract, the Northernmost the Southeast corner of said called 2.841 acres. corner of said 28.8542 acres and PAGE 2 - 44.0166 ACRES. THENCE: South 28"59'55" East along the Lust line of this tract, tiro East line of said 28,8542 acres and the West right-of-way line of said Needlepoint Road for a distance of 1232.09 feet to a 5/8 inch iron rod, with aliuninum TXDOT cap, found at the intersection of the West right-of-way line of said Needlepoint Road with the West right-of-way line of State Highway 99 (right-of-way width varies). Said point has a State Plane Coordinate Value of Y=13,857,624.067 and X=3,277,810.859. THENCE: South 06* 12-16" East along the East line of this tract, the Bast line of said 28.8542 acres and tine West right-of-way, litie of said State Highway 99 for a distance of 184.37 feet to a 1/2 inch iron rod, with cap (BHA), set for an angle point in said line. THENCE: South 16°55'00" West along the East line of this tract, the East line of said 28.8542 acres and tite West tight -of -way line of said State Highway 99 for a distance of 1342.76 feet to an "X" set hi concrete at the intersection of said West right-of-way line of State Highway 99 with the North rigint-of-way line of said F. M. Highway 565 for the Southeast corner of this tract. THENCE: South 50°20'20" West along the South line of this tract and the North right-of-way line of said F. M. Highway 565 for a distance of 141.69 feet to a 1/2 inch iron rod found for all angle point in said line in the West line of said 28.8542 acres and the East line of said 24.8275 acres. THENCE: South 50"14'38" West along the South line of this tract and the North right-of-way line of said F. M. Highway 565 for a distance of 185.81 feet to a 1/2 inch iron rod found for the BEGINNING POINT of a curve to the right, concave Northwesterly. THENCE: Along and around said curve to the right, in a Southwesterly direction, along tine South line of this tract and the North right-of-way line of said F. M. Highway 565, said curve having a radius of 1849.86 feet, a central angle of 03°05'50" and a chord bearing and distance of Sot►th 54*48'31" West 286.05 feet, for an are length of 286.34 feet to the PLAC13 OF BEGINNING and containing within these boundaries 44.0166 acres of land. SURVEYOR'S CERTIFICATE I, Juliene Ranisey, Registered Professional Land Surveyor No. 4379, do hereby certify that tine foregoing Field notes were prepared from gun actual survey made oil tine ground, under my supervision, in July of 2011 and that all lines, boundaries and landmarks are accurately described therein. 'This deseriptiou is based on the Land Title Survey and plat made by me on July 27, 2011 and revised on October 4 and October 7, 2011. WITNESS my hand and seal at Baytown, Texas, ihis 7th clay of October, A. D., 201 L JulPin'sey ,lot No, Registered Professional Land Surveyor No. 4379 11-39191dn.44.0166ac.doc i, ,.:%C !;i �7 i!�,'M1i►i �1i3: yti�' , ,..` i�a t `° tin.' ;1 +:1...."iuI1"{�, CA Ll(;A L DESCRIITfON Bablg 1.50o acts, of Ole DeDJamin wid- Survey, Absfiaot No. 28. Chambers County. Toxns, said 1.0acm being out of a 29.4474aote tract daudbed In Pilo mmrbu 89 77 504 of dta olBcfal Yobdo Records of Chambers Comity, Taxes' and !King more particularly described by motes and boards as follows: Beginning at s oonMte monument found for the North corner of the said 29A474 acre but utd the north coiner of the 11MIG dracdbed tract: Tbonoo S 29 dog. 10' 07" B 572.12 tact along the west righbof way LDa of Cotton calm Rned also known as NeeedlapoW Road to a In Inch Iran rod act firr Is southeast comer cf the heroin de=dbed tract Thence S 87 deg. 28 26' W 255.21 fiat to the west Line of the avid 29.4474 ames and the east line of The Co utd industrial Water Autbacty Canal and 1/t meb iron rod setIli e the sarrmwost comer of Cha huoin described tract •!hence N 02 deg. 33' 34' W with the Kest Una of the acid 29.4474 sere tract and Ike Uco of the sold cane! tract 512.04NA to the plane of beginning containing to st 65.339 square foot of 1500 aotnl, more of less. gotgrelLltl l9toldr1 reU1•I6 OjMM12 YropeNy (including sny%finprovomouts): BEING 2.R41 ACRES OUT OF A 27.702 ACRE TRACT CONVEYED UNTO LBONBL AND ROSE GARCIA BY DEED RECORDED IN VOLUME 387, PAGE 407 OF THE OFFICIALPUBLIC RECORDS OF CHAMBERS COUNTY, TEXAS, AND ALSOBBING IN TRB BENJAMIN WINF$BB SURM, MSTRACT NO. 28, AND 13MNG MORB PARTICULARLY DBSCRIBEDBYMETES AND BOUNDS AS FOLLOWS: COMMENCINGAT THE INTERSECTION AT THENORTH RIGHT OF WAY LINE OF F. M. 565 AND THE WEST RIGHT OF WAY LINE OF COTTON LAKE ROAD ALSO KNOWN AS NBBDLEPOINT ROAD; THENCE NORTH 290 03' 07" WEST WITH THB WBST RIGHT OF WAY L1NB OF SAID COTTON.L.AKBROAD A DISTANCE OF 2,160.93 FEET TO A 5/8 INCH IRON ROD FOUND FOR TIM NORTHEAST CORNER OF A 29.447 ACRE TRACT CONVBYBD UNTO WALTER C. AND MONA K. HILL BY DEED RECORDED IN VOLUME 77, PAGE 502 OF THE OFFICIALPUBLIC RECORDS OF CHAMBERS COUNTY, TEXAS, THE NORTH CORNER OF A CALLErk 28.8542 ACRE TRACT CONVEYED UNTO A. D. SMART BY DEED RECORDED IN VOLUME 386, PAGE 583 OF THE OFFICIAL PUBLIC RECORDS OF CHAMBERS COUNTY, AND THE, SQPTBEAST CORNER OF THB HER13TNDBSCRMED 2,841 ACRBS FOR THE POINT OF BEGINNING OF THE HRRBIN DESCRM13D TRACT OF LAND; THENCE CONTINUING NORTH 29° 03' 07" WEST, WITH THB WEST RIGHT OF WAYLINB OF SAID COTTONLAKB ROAD AND THE BAST LINE OF TFIBHERBIN DESCRIBED TRACT, A DISTANCB OF 324.57 FHBT TO THENORTHBAST CORNER OF THE BmIN DESCRIBgD TRACT, THE NORTHBAST CORNER OF THE SAID 27,702 ACM.AND.A K rNCHIRONROD FOUND FOR CORNER; THBNCB SOUTH 87° 26' 20" WEST, ALONGTHE NORTH LINE OF THE SAID 27.702 ACRE TRACT, A DISTANCE Q$ 255.21 ItET TO TH13 NORTHWEST C6RNER OF THE HEREIN DBSCRIBBD TRACT AND A Yj INCH IRON ROD VOUND FOR CORNER; THBNCB SOUTH 02° 33' 34" EAST, ALONG THE WEST DINE OF THE HEREIN DESCRIBED TRACT AND THE EAST LINE OF A TRACT OF LAND CONVEYED TO THE COASTAL INDUSTRIAL WATER AUTHORITY AS RECORDED IN VOLUME 315, PAGE 496 OF THE CHAMBERS COUNTY DEED RECORDS A,DISTANCE OF 433 AS FEET TO THB SOUTHWEST CORNER OF THE HEREIN DESCRIB ED TRACT AMID A Y. INCH IRON ROD FOUND FOR CORNB1t; THENCE NORTH 67° 46' 26" BAST, A DISTANCE OF 424.77.FBET TO TILBPOINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT OF LAND AND CONTAINING 2.841 ACRES OF LAND, MORE OR LESS. Raservntlonsfrom Con voynnce: Nono 8/18/26. 2:19 PM EXHIBIT "C" Baytown, Tx Code of Ordinances Sec. 98-59. - Rates. (a) Race schedules. The following are the rate schedules for water service per 1,000 gallons: Water Service - Rate Schedule Individually Metered Single -Family Residential Inside City Outside City Base Charge $8.34 $12.52 Customer Charge $4.01 $6.02 Tier 1 First 2,000 $3.89 $5.01 Tier 2 Next 4,000 $7.52 $11.29 Tier 3 Over 6,000 $10.38 $15.57 Base Charge Customer Charge Tier 1 Tier 2 Water Service - Rate Schedule Multifamily Residential Master Meter Service Inside City $8.34 $4.01 First 2,000 $3.89 Over 2,000 $7.52 Unit = Constructed, regardless of whether occupied. Water Service - Rate Schedule Nonresidential Service Outside City $12.52 $6.02 $5.01 $11.29 ahrn d •hlank 8118126, 2:19 PM Base Charge 8 3KIN 2" 3" 4" 6" 8" 10" Customer Charge Tier 1 All Use Base Charge Baytown, TX Code of Ordinances Inside City i Outside City $8.34 $12.51 $12.53 $18.79 $20.86 $31.29 $41.73 $62.60 $66.75 $100.12 $133.49 $200.23 $208.59 $312.88 $417.16 $625.74 $ 667.45 $1001.18 $959.49 $1,439.24 $4.01 $6.02 $7.52 $11.29 Water Service - Rate Schedule Metered Irrigation Service Inside City Outside City about:blank .F I VtGV. f.. 1.7 r-l•+ tsaytown. i x (:oae of urainances $8.34 $12.51 3/a" $12.53 $18.79 1 " $20.86 $31.29 1'/2" $41.73 $62.60 2" $66.75 $100.12 3" $133.49 $200.23 4" $208.59 $312.88 6" $417.16 $625.74 8" $667.45 $1001.18 10" $959.49 $1,439.24 Customer Charge $4.01 $6.02 W, First 6,000 $7.52 $11.29 Over 6,000 $10.38 $15.57 3/a" First 9,000 $7.52 $11.29 Over 9,000 $10.38 $15.57 1" First 15,000 $7.52 $11.29 Over 15,000 $10.38 $15.57 1'/2' First 30,000 $7.52 $11.29 Over 30,000 $10.38 $15.57 I about:blank 8/18/26, 2:19 PM Baytown, TX Code of Ordinances 2" First 48,000 u $7.52 $11.29 Over 48,000 $10.38 $15.57 3" First 96,000 $7.52 $11.29 Over 96,000 $10.38 $15.57 4" First 150,000 $7.52 $11.29 Over 150,000 $10.38 $1 S.57 6" First 300,000 $7.52 $11.29 Over 300,000 $10.38 $15.57 8" First 480,000 $7.52 $11.29 Over 480,000 $10.38 $15.57 10" First 690,000 $7.52 $11.29 Over 690,000 $10.38 $15.57 (b) Residential dwelling units. (1) Individually metered units. Each residential dwelling unit individually metered and billed for the consumption of water shall be charged for and owe each month a water service charge based upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for individually metered single-family residential. (2) Jointlymetered unit. The monthly water service charge for multifamily dwelling unit projects, with units not individually metered for water, shall be determined as follows: a. The total monthly water consumption for the project will be divided by the number of units in the project served by the meter; b. about:blank of IW40. (: I'd F'M Baytown. TX Code of Ordinances The per -unit water consumption will determine the applicable charge for each unit based upon the rate schedule in subsection (a) of this section for multifamily residential master meter service; and c. The applicable water service charge for each unit will be multiplied by the number of unit: in the project served by the meter to determine the monthly water service charge for the entire project. (c) Manufactured home parks. The monthly water service charge for manufactured home parks shal be determined as follows: (1) The total water consumption for the project will be divided by the actual number of rental spaces served to determine the per unit water consumption; (2) The per unit water consumption will determine the applicable water service charge for each space based upon the rate schedule in subsection (a) of this section for multifamily residentia master meter service; and (3) The applicable charge for each space will be multiplied by the number of spaces in the project served by the meter to determine the monthly water service charge for the project. (d) Commercial units. (1) Individually metered units. Each commercial unit individually metered for the consumption of water shall be charged a monthly water service charge based the meter size and upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (2) Jointly metered units. The monthly water service charge for multiunit commercial projects, with units not individually metered for water, shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (e) Combinations of residential dwelling units and commercial units. The applicable monthly water service charge for a complex containing a combination of dwelling units and commercial units, with units not individually metered for water, shall be shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (f) Service for property outside the city. A person outside the city limits and authorized by the director of utilities to receive water service shall pay in accordance with subsection (a) of this section for the applicable service or any other amount as may be established and approved in writing by the city council pursuant to a water supply agreement. (g) Volume users. A user of water that: (1) Either: a. abouttlank 8/18/26, 2:19 PM Baytown. TX Code of Ordinances Is located within the corporate limits who qualifies for tax abatement under the city's tax abatement policy or b. Is located within an established industrial district and has in effect an industrial district agreement with the city; and (2) Uses a minimum of 400,000 gallons of water per day, shall be billed a customer charge, a base charge based on meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for high -volume user service. The minimum usage shall be determined by dividing the total consumption during the billing period by the number of days in the billing period to determine the daily usage. Any user or customer who does not pay the amount due by the due date indicated on his statement shall be charged a late charge, as provided in section 98-61. (h) Recreational vehicle parks. The monthly water service charge for recreational vehicle parks shall be determined in accordance with subsection (d)(1) of this section as if it were a commercial unit individually metered. (Code 1967, § 31-56; Ord. No. 943, § 3, 11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1351, §§ 1, 2, 1-25-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2426, § 1, 3-9-78; Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-8- 81; Ord. No. 3120, § 1, 4-9-81; Ord. No. 4548, § 1, 9-25-86; Ord. No. 5101, § 1, 9-22-88; Ord. No. 5645, § 1, 9- 27-90; Ord. No. 6006, § 1, 9-26-91; Ord. No. 6349, § 1, 9-24-92; Ord. No. 6427, § 1, 11-12-92; Ord. No. 6777, § 1, 9-23-93; Ord. No. 6836, § 1, 10-10-93; Ord. No. 7097, § 1, 9-22-94; Ord. No. 7392, § 1, 9-14-95; Ord. No. 7622, § 1, 2-8-96; Ord. No. 8061, § 1, 9-11-97; Ord. No. 8151, § 9, 12-16-97; Ord. No. 8677, §§ 1, 2, 9-9-99; Ord. No. 9225, §§ 1, 2, 9-13-01; Ord. No. 9379, §§ 1, 2, 7-11-02, Ord. No. 9416, §§ 1, 2, 9-12-02; Ord. No. 9629 §§ 1, 2, 9-25-03; Ord. No. 9854, § 2, 8-26-04; Ord. No. 9869, §§ 1-3, 9-9-04; Ord. No. 10,158, §§ 1, 2, 9-27-05; Ord. No. 10,403, §§ 1, 2, 9-14-06; Ord. No. 10,704, §§ 1, 2, 9-13-07; Ord. No. 10,962, §§ 1, 2, 9-22-08; Ord. No. 11,308, § 4, 2-25-10; Ord. No. 11,494, § 1, 11-11-10; Ord. No. 11,717, § 1, 9-8-11; Ord. No. 12,331, § 1, 9-12- 13; Ord. No. 12,624, § 1, 8-28-14; Ord. No. 14,827, § 1, 9-9-21; Ord. No. 15,272. § 1, 11-22-22; Ord. No. 15,538, § 1, 9-14-23; Ord. No. 15,9�2, § 1, 9-26-24; Ord. No. 16,251. § 1, 9-25-25; Ord. No. 16,277, § 1, 10-23- 25) Editor's note- Ord. No. 16,277, adopted Oct. 23, 2025, shall take effect for all billings occurring on or after the first full billing cycle after October 1, 2025. ahnuthlank EXHIBIT "D" Amendatory Contract between the City of Houston and the San Jacinto River Authority � �.y't:?1 a'l:!.� L'� l_1L'—�.11. 7iLi. � :.•a' AMENDATORY CONTRACT BETWEEN SAN JACINTO RIVER AUTHORITY AND THE CITY OF HOUSTON, TEXAS THE STATE OF TEXAS X X COUNTY OF HARRIS X THIS CONTRACT executed as of the_;:;?,..(day of17 1976, by and between the SAN JACINTO RIVER AUTHORITY, ("SJRA") a conservation and reclamation district and political subdivision of the State of Texas, and the CITY OF HOUSTON, TEXAS, ("the City") a municipal corporation: I. The provisions of Section VII of the contract between the parties dated March 27. 1944. shall have no application to sales of Trinity River raw water by the City to the Baytown Area Water Authority ("BAWA"), a municipal corporation created by Ch. 600, p. 641, Sixty -Third legislature, Regular Session, 1973, for the limited purpose of treating and selling the same as potable treated water to the City of Baytown and other local governmental entities for distribution through the municipal water systems of such local governmental entities, such water to be used for municipal purposes, as defined by Rule 129.01.15001-.041, promulgated by the Texas Water Rights Commission on December 1, 1975, and for no other pur- poses, and only within the boundaries of BAWA as such boundaries exist on the date of this contract; PROVIDED, that no such water shall be sold, distributed or used other than for residential household and other strictly domestic purposes within the area bounded by Interstate Highway No. 10 on the north, Sjolander Road -n the v:cot, Archer Road on the south, and Cedar Rayon on the east, Without written consent of SJRA. ta The City shall insure that all instruments relating to the sale of water to BAWA include appropriate covenants on EXHIBIT C the part of BAWA to observe the limitations and restrictions imposed on the City by the contract dated March 27, 1944, as modified by this contract, and to include covenants in all sales and contracts for the sale of water by BAWA insuring compliance with such restrictions and limitations. The word- ing of the covenants giving effect to such restrictions and limitations shall be submitted to the General Manager of the SJRA for approval as to conformity to this paragraph prior to any sale by the City subject to this contract. The City shall be responsible for the enforcement of such covenants, but they shall also be enforceable by SJRA directly. 3. In the event any water delivered by the City to BAWA under this contract is used in violation of such restrictions or limitations, SJRA shall be entitled to recover from the City as liquidated damages an amount equal to seventy-five percent (75%) of the consideration or revenue received by the City for the estimated amount distributed, sold or used in violation of such restrictions or limitations, plus all liti- gation expenses and reasonable attorney's fees. The recovery of such liquidated damages shall be in addition to all other remedies available to SJRA. 4. In consideration of the foregoing limited waiver by SJRA of the restrictions and limitations imposed by the contract dated March 27, 1944, the City shall pay to the SJRA an amount equal to $50 per day during such period that the City receives payment from BAWA for water sold under this La ver, but s� A payu,:nts to SJRA sl.o1L nor extend beyond a period of 20 years. Payment shall be made on a quarterly basis on or before the loth day of the month following each calendar quarter. Iva 5. The contract shall not be assignable by either party without the written consent of the other; however the obligations imposed hereunder shall be binding on their successors or assigns. The waiver provided herein shall be applicable only to sales by the City to BAWA and shall not be applicable to any sale by the City to any other entity, including any successors or assignee entity to BAWA, without the written consent of SJRA. 6. Except as amended by this contract and the contracts between the parties dated July 19, 1955, 4ay 9, 1968 and the contract dated September 1, 1971, the provisions of the March 27. 1944. contract shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto, acting under the authority of their respective governing bodies have caused this contract to be executed on this day of 1976 in duplicate originals, each of which shall constitute an original ATTEST: By AeccsE Secretary SAN JACINTO RIVER AUTHORITY By. Vice -Pre nt CITY OF HOUSTON , ATTEST: By mm- r By City Secretary COUNTERSIGNED: ty Controll—er -3-