Ordinance No. 14,098ORDINANCE NO. 14,098
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 THE SEVENTH AMENDMENT TO THE
WATER SUPPLY AND WASTE DISPOSAL AGREEMENT WITH
CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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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 the Seventh Amendment to the Water
Supply and Waste Disposal Agreement with Chambers County Municipal Utility District No. 1.
A copy of said amendment is attached hereto 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 13th day of June, 2019.
BRANDON CAPETILLCVMayor
APPROVED AS TO FORM:
NACIO RAMIREZ, SR., i y A torney
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Exhibit "A"
SEVENTH AMENDMENT
TO THE
WATER SUPPLY AND WASTE DISPOSAL AGREEMENT
BETWEEN THE CITY OF BAYTOWN, TEXAS,
AND THE CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This Seventh Amendment (the "Seventh Amendment") to that certain Water Supply and
Waste Disposal Agreement between the City of Baytown, a municipal corporation situated in
Harris and Chambers Counties, Texas, acting by and through its governing body, the City
Council of the City of Baytown, Texas (the "City"), and Chambers County Municipal Utility
District No. 1, a conservation and reclamation district created pursuant to Article XVI, Section
59, Texas Constitution and operating pursuant to Chapters 49 and 54, Texas Water Code (the
"District") is made by and between the same parties on the date herein after last specified.
RECITALS
WHEREAS, the City and the District entered into the Water Supply and Waste Disposal
Agreement on the 4th day of March, 1996 (the "Agreement"); and
WHEREAS, the City and the District thereafter entered into the First Amendment to the
Agreement on the 22°d day of August, 1997, to expand the Service Area to include Sections 3
and 4 of Country Meadows Subdivision (the "First Amendment"); and
WHEREAS, the City and the District thereafter entered into the Second Amendment to
the Agreement on the 26`h day of August, 2002, to expand the Service Area to include the
following:
➢ Block A Addition to Section 4 of Country Meadows Subdivision,
➢ Section 5 of Country Meadows Subdivision,
➢ Block A Addition to Section 5 of Country Meadows Subdivision,
Block B Addition to Section 5 of Country Meadows Subdivision,
➢ Section 6 of Country Meadows Subdivision, and
➢ Sections 1, 2 and 3 of Hunters Chase Subdivision;
(the "Second Amendment"); and
WHEREAS, the City and the District entered into the Third Amendment to the
Agreement on or about the 4`h day of June, 2004, to expand the Service Area to include the
following:
Seventh Amendment, Page 1
(the "Third Amendment'); and
WHEREAS, the City and the District amended the Agreement through the Strategic
Partnership Agreement, dated on the 27`h day of June, 2005, to expanded the Service Area to
include approximately 16.0964 acres of commercial frontage adjacent to Pine Meadows, Country
Meadows and Hunters Chase Subdivisions (the "Fourth Amendment'); and
WHEREAS, the City and the District amended the Agreement through the Strategic
Partnership Agreement No. 2, dated on the 28`h day of January, 2008, to expanded the Service
Area to include approximately 107.2936 acres of commercial development along State Highway
146 and/or Interstate 10 (the "Fifth Amendment"); and
WHEREAS, the City and the District entered into the Sixth Amendment to the
Agreement on or about the 24`h day of February, 2016, to expand the Service Area to include
approximately 231.5763 acres (the "Sixth Amendment"); and
WHEREAS, on the 281h of February, 2019, the City Council passed Resolution No. 2569,
authorizing the City Manager to notify the District of the City's intent to terminate the
Agreement on March 3, 2021, in order to determine the best course of action for the City and the
residents of the Districts, which could include (i) negotiate a new agreement with the District or
(ii) annex the Service Area for full purposes and provide full municipal services to the District;
and
WHEREAS, having considered its options and recognizing that it has the absolute right
to annex the Service Area pursuant to the provisions of the Strategic Partnership Agreements and
pursuant to state law, the City Council has determined that it is in the best interest of the City and
the residents of the District to extend the Agreement; and
WHEREAS, recognizing such right, the District desires for the Agreement to be extended
as set forth herein;
NOW THEREFORE, THE PARTIES CONTRACT AND AGREE AS FOLLOWS:
Definitions. Unless a different meaning clearly appears from the context, words and
phrases as used in this Seventh Amendment shall have the same meanings as in the Sixth
Amendment, the Fifth Amendment the Fourth Amendment, the Third Amendment, the
Second Amendment, the First Amendment, and the Agreement.
Seventh Amendment Page 2
2. Amendments.
a. Article VII "Miscellaneous Provisions," Section 7.13 of the Agreement is hereby
amended to read as follows:
7.13 Term. This Agreement shall be in force and effect from the date of
execution hereof for a term of twenty-five (25) 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 District 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. This Agreement shall be automatically extended for
additional five (5) year terms if, and only if, both of the conditions,
numbered (i) and (ii) contained in the preceding sentence are satisfied,
unless either party gives written notice of termination two (2) year prior to
the date of any such automatic extension. Notwithstanding anything to the
contrary contained herein, it is expressly understood and agreed that the
City has the right to annex all or part of the Service Area pursuant to the
Strategic Partnership Agreements as well as state law. Should the City
exercise such right, this Agreement may terminate with respect to such
area at the sole option of the City. If only a portion of the Service Area is
annexed by the City and the City terminates this Agreement with respect
to such area, the annexed area shall automatically be removed from this
Agreement and the quantity of water and wastewater services to be
provided to the District and the capacity reserved for the District shall be
reduced. The City shall give the District written notice of such reductions
within thirty (30) days of any action requiring such reductions. Lastly,
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 District, then this Agreement shall terminate automatically at
the time of such termination or inability without liability to the City.
3. Interpretation. The provisions of this Seventh Amendment and the provisions of the
Sixth Amendment, the Fifth Amendment, the Fourth Amendment, the Third Amendment,
the Second Amendment, the First Amendment, and the Agreement should be read
together and construed as one agreement provided that, in the event of any conflict or
inconsistency between the provisions of this Seventh Amendment and the provisions of
the Sixth Amendment, the Fifth Amendment, the Fourth Amendment, the Third
Amendment, the Second Amendment, the First Amendment, and the Agreement, the
provisions of this Seventh Amendment shall control.
Seventh Amendment, Page 3
IN WITNESS WHEREOF, the parties have executed this Agreement in multiple copies,
each of which shall be an original, as of the day of , 2019, the date signed
by the City Manager of the City of Baytown.
CHAMBERS COUNTY MUNICIPAL
UTILITY DISTRICT NO. 1
By:___",_,__
Signature
Printed Name
President
ATTEST:
By:
Signature
Printed Name
Secretary
STATE OF TEXAS §
COUNTY OF
This instrument was acknowledged before me this day of , 2019,
by , as President, and , as Secretary,
of Chambers County Municipal Utility District No. 1, a political subdivision of the State of
Texas, on behalf of said political subdivision.
Notary Public in and for the State of Texas
(NOTARY SEAL)
CITY OF BAYTOWN, TEXAS
By:_
RICHARD L. DAVIS, City Manager
Seventh Amendment Page 4
ATTEST:
LETICIA BRYSCH, City Clerk
APPROVED AS TO FORM:
By:__-- -
IGNACIO RAMIREZ, SR., City Attorney
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me this day of , 2019,
by Richard L. Davis, as City Manager and Leticia Brysch, as City Clerk of the City of Baytown,
a home -rule municipal corporation in Harris and Chambers County, Texas, on behalf of said
municipal corporation.
Notary Public in and for the State of Texas
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Seventh Amendment, Page 5