Ordinance No. 6,017910926 -16
ORDINANCE NO. 6017
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF
AN AMENDMENT TO THE WHOLESALE WATER SUPPLY CONTRACT
BETWEEN HARRIS COUNTY FRESH WATER SUPPLY DISTRICT NO. 27
AND BAYTOWN AREA WATER AUTHORITY; 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 approves and authorizes the execution of an
amendment to the wholesale water supply contract between Harris
County Fresh Water Supply District No. 27 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 26th day of
September, 1991.
ATTEST:
EILEEN P. HALL# City Clerk
J
eaSNACIO RAMIREZ, ., City Attorney
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SECOND AMENDMENT
TO THE
WHOLESALE WATER SUPPLY CONTRACT
(TREATED WATER)
BY AND BETWEEN THE
BAYTOWN AREA WATER AUTHORITY
AND THE
HARRIS COUNTY FRESH WATER SUPPLY DISTRICT 127
THE STATE OF TEXAS S
COUNTY OF HARRIS
This Second Amendment (^'Amendment") to that certain
"Wholesale Water Supply Contract, "Treated Water" between the
Baytown Area Water Authority and the Harris County Fresh Water
Supply District #27 dated February 1, 1983, and amended November
1, 1984, is made by and between the same parties on the date
hereinafter last specified.
WITNESSETH
WHEREAS, the Baytown Area Water Authority ( "Seller") and
Harris County Fresh Water Supply District #27 ( "Buyer") did enter
into a Wholesale Water Supply Contract, Treated Water on February
1, 1983, and amended on November 1, 1984, ( "Contract"); and
WHEREAS, the Seller and the Buyer now desire to make
provisions for the connection of Buyer's water systems and the
use of certain storage facilities for treated water by Buyer;
NOW THEREFORE, for and in consideration of the premises and
the mutual covenants and agreements herein contained, the parties
hereto do hereby mutually agree as follows:
EXHI& s A
I
Unless a different meaning clearly appears from the context,
words and phrases as used in this Amendment shall have the same
meaning as in the Contract.
II
The provisions of Article III of the Contract are hereby
repealed, and a new Article III is hereby inserted in its
entirety as follows:
Article III
Rate and Prices
3.1 As a contribution to the capital investment for ground
storage facilities of the Seller and in consideration for
connection of Buyer's water system, Buyer shall pay to Seller
$15,000.00. In addition thereto Buyer shall pay to the City of
Baytown $50,000.00 as a capital buy -in fee for elevated storage
capacity.
3.2 Payment of the above described capital buy -in fees and
connection fee shall be made to Seller at Seller's address, and
Seller shall forward the appropriate amount due to the City of
Baytown. Buyer shall pay to Seller the sum of the above
described fees, being $65,000.00, with interest from October 1,
1991, at the rate of 5.00% per annum until paid. Principal and
interest shall be payable in monthly installments of Six hundred
eighty -nine and 43/100 dollars ($689.43) commencing on the 1st
day of November 1991, and continuing on the first day of each
month thereafter until October 1, 2001, on which last mentioned
date the entire unpaid balance of principal and interest then
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owing shall become immediately due and payable. The interest
shall be paid monthly by apportioning for that purpose out of
each monthly payment when made, a sum sufficient to pay said
interest; interest to be computed on the unpaid principal balance
at the beginning of each monthly interval; the balance of the
monthly payments after such apportionment to interest, shall be
credited on the principal thereof.
3.3 Failure to pay any installment as required, shall at
the election of the Seller, mature all of the principal without
notice, and all of the principal, and then accrued interest shall
at once become due and payable. Furthermore, such failure to pay
any installment shall be a breach of this contract and entitle
Seller to terminate any and all of its obligations under this
contract. The Buyer reserves the right to prepay the balance of
the amount due at any time without prepayment penalty. The
amount required under this section is in addition to the charge
for the water purchased by Buyer under this contract.
3.4 All water sold and delivered by Seller to Buyer for
which Buyer is obligated to pay for hereunder shall be sold to
Buyer from Seller at the rate of $1.10 per 1000 gallons of water
utilized by Buyer.
3.5 Additionally, Buyer understands and agrees that Seller
may at any time, by order duly enacted, increase or change the
price or prices for treated water as set forth in Section 3.4;
provided, however, that except where an independent rate analysis
conducted by a qualified concern indicates that a certain rate
increase is required, the price or prices for treated water shall
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not be increased percentagewise to Buyer during any 12 -month
period of this contract in excess of the percentage rate increase
in Seller's water rates to other purchasers of treated water
during the same period.
3.6 The total price or charge to Buyer for water hereunder
shall be the price or prices for water referred to in Sections
3.4 and 3.5 above.
III
The provisions of the Second Amendment and the provisions of
the Contract should be read together and construed as one
agreement provided that, in the event of any conflict or
inconsistency between the provisions of this Second Amendment and
the provisions of the Contract, the provisions of this Second
Amendment shall control.
IN WITNESS WHEREOF, the parties hereto have executed this
Amendment in multiple copies, each of which shall constitute buy
one and the same Amendment, this the day of
1991, the date of execution by the President of the Baytown Area
Water Authority.
ATTEST:
Secretary
BAYTOWN AREA WATER AUTHORITY
By
President
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ATTEST:
ecretary
5:5:19:9
HARRIS COUNTY FRESH WATER SUPPLY
DISTRICT 127
By
President
{SEAL}
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