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Ordinance No. 4,04750110 -3 ORDINANCE NO. 4047 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE TREATED WATER CONTRACT BETWEEN THOMPSON ROAD UTILITY DISTRICT AND BAYTOWN AREA WATER AUTHORITY; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. 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 approves and authorizes the execution of an amendment to the treated water contract between Thompson Road Utility District and Baytown Area Water Authority. A copy of the above referred to amendment is attached hereto, marked Exhibit "A," and made a part hereof 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 10th day of January, 1985. ALLEN CANNON, Mayor ATTEST_ � V a EILEE�N P. HA L ,City Clerk / i f..` �• W 50110 -3a SUPPLEMENTAL AGREEMENT TO WHOLESALE WATER SUPPLY CONTRACT TREATED WATER THE STATE OF TEXAS § COUNTY OF HARRIS § This Supplemental Agreement ("Agreement") is made and entered into on the date hereinafter last specified by and between the BAYTOWN AREA WATER AUTHORITY, a governmental agency and body politic and corporate which is principally situated in Harris County, Texas, and has its principal office in Baytown, Harris County, Texas, (hereinafter called "Seller "), and THOMPSON ROAD UTILITY DISTRICT, which is principally situated in the extraterritorial jurisdiction of Baytown, Harris County, Texas, and has its principal office in Houston, Harris County, Texas, (hereinafter called "Buyer"). This Agreement supplements and amends that certain "Wholesale Water Supply Contract Treated Water ", (hereinafter called the "Original Contract "), dated June 7, 1984 and entered into by the parties hereto. R E C I T A L The Seller and the Buyer have hereto contracted for the furnishing of a potable water supply by Seller to Buyer to serve Buyer's anticipated needs. Due to current economic conditions, Buyer's expected water supply requirements as set out in the Original Contract are not anticipated to occur as originally estimated, but for one year thereafter. It is the intent of this Agreement to set back all such terms and conditions of the Original Contract for a one -year period. NOW, THEREFORE, and in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto do mutually agree as follows: AGREEMENT 1. Section 2.2 of the Original Contract is repealed and the following is substituted therein: 50110 -3b 112.2 Notwithstanding the provisions of Section 2.1 above, the minimum monthly quantity. of treated water Buyer is obligated to purchase from Seller, or pay for, whether taken or not, shall be: Initial Delivery until MP Date -- No minimum purchase required. 1st six months after MP Date .07 MGD 7th - 12th month 11 " .14 MGD 2nd year " " it .35 MGD 3rd year " " to .50 MGD 4th year " " to .56 MGD 5th year to " It .63 MGD 6th year " It " .69 MGD 7th year " " to .76 MGD 8th year " .82 MGD 9th year I It .89 MGD 10th year " " It .90 MGD To determine the minimum monthly quantities for Buyer, the minimum in terms of MGD (from the above tabulation) shall be multiplied by the number of days in the month. As used herein, "Initial Delivery" means the date on which Buyer is ready to receive treated water from Seller, of which date Buyer shall give Seller one (1) month advance notice, but which in no event shall be later than July 1, 1986. As used herein, "MP Date" means minimum purchase date, the date at the end of the first calendar month during which the Buyer purchases an average of at least 10,000 gallons per day that month. 2. Section 3.1 of the Original Contract is repealed and the following is substituted therein: "3.1 As a contribution to the capital investment of the Seiler, and in consideration for connection of Section 1, 2, and Thompson Road Commercial System, the Buyer shall pay to the Seller, the amount of THREE HUNDRED FIFTY -SIX THOUSAND, SEVEN HUNDRED SIXTEEN AND 75/100 DOLLARS ($356,716.75), within two (2) weeks of the funding of the first issue of capital improvement bonds by the Buyer. 50110 -3c Notwithstanding the above, however, the Buyer is' obliged and hereby promises to pay, or cause to be paid, to the Seller said amount no later than two (2) years from the date of this Contract. Additionally, in order to further secure Buyer's assurance of the availability of such funds, the Buyer will provide, or cause to be provided, to the Seller an irrevocable Letter of Credit, payable to the Seller, in a form acceptable to the Seller in the amount of THREE HUNDRED FIFTY -SIX THOUSAND, SEVEN HUNDRED SIXTEEN AND 75/100 DOLLARS ($356,716.75), so that, should the Seller be required to enlarge - or expand its water treatment facili- ties to provide treated water to Buyer in the amounts set forth herein prior to the payment to the Seller by the Buyer of THREL HUNDRED FIFTY -SIX THOUSAND, SEVEN HUNDRED SIXTEEN AND 75/100 DOLLARS ($356,716.75), described above, then, in such event, the Letter of Credit can be drawn upon by the Seller in such amounts and installments necessary in order to provide funds for such enlargement or expansion of water treatment facilities in the amount of Buyer's pro rata share of any such capital expansion costs. The Seller shall also be entitled to draw upon the full amount of such Letter of Credit if the full amount of the capital investment contribution has not been paid within two (2) years of the date of this Contract. Furthermore, in consideration for connection of Sections 3, 4, and 5 of Buyer's development, Buyer agrees to pay the sums of -3- 50110 -3d FIFTY SEVEN THOUSAND, SEVENTY -NINE AND 75/100 DOLLARS ($57,079.75), EIGHTY -ONE THOUSAND, SIX HUNDRED TWENTY -SEVEN AND N0 1100 DOLLARS ($81,627.00) and EIGHTY -NINE THOUSAND, NINE HUNDRED EIGHT AND N0 1100 DOLLARS ($89,908.00), respectively, with payment of each section due on the date construction of improvements begin in that section. For example, FIFTY- SEVEN THOUSAND, SEVENTY -NINE AND 75/100 DOLLARS ($57,079.00) will be due as the capital con- tribution for Section 3 upon the date construc- tion of improvements begin in Section 3. The above capital contribution charge for Section 3, 4, and 5 of Buyer's development shall be subject to an adjustment to recognize the effect of inflation /deflation between the date of this Agreement and the date construction begins for the Section in question. The pay- ment for each Section shall be the amount shown above multiplied by a fraction, the denominator of which shall be the Engineering News Record (20 cities) Construction Magazine, as of the date of this Agreement is signed, and the nominator of which shall be the Engineering News Record (20 cities) Construction Cost Index, as described above, on the date construction begins for the Section in question." 3. All other terms and conditions of the Original Contract not amended, modified, repealed, or substituted herein, shall remain in full force and effect. DATED this the day of 1984. THOMPSON ROAD UTILITY DISTRICT BAYTOWN AREA WATER AUTHORITY DON CANTRELL, President Robert Gillette, President ATTEST: ATTEST: TlMM WOOTEN, Secretary Peter R. Buenz , S retary