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Ordinance No. 7,847961126 -4 ORDINANCE NO. 7847 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN APPROVING AND AUTHORIZING THE EXECUTION OF THE WATER SUPPLY CONTRACT BETWEEN THE BAYTOWN AREA WATER AUTHORITY AND THE CITY OF BAYTOWN; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section l: That the City Council of the City of Baytown, Texas, hereby approves and authorizes the execution of the Water Supply Contract between the Baytown Area Water Authority and the City of Baytown. A copy of said contract 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 November, 1996. ATTEST: 5L_a� Z' 2��4� EILEEN "P. HALL, City Clerk APPROVED AS TO FORM: - * F-wm, — ate . J c:\council\mcetings\november\bawa.26 ' �P. cf� PETE C. ALFARO, Mayor C7 Water Supply Contract for Treated Water STATE OF TEXAS COUNTY OF HARRIS § This Water Supply Contract for Treated Water, hereinafter referred to as "Contract," is made and entered into on the date herein after last specified by and between the Baytown Area Water Authority, a governmental agency and a body politic and corporate of the State of Texas, created pursuant to Chapter 600, Acts of the 63rd Legislature, Regular Session, 1473, hereinafter referred to as "BAWA," and the City of Baytown, a municipal corporation and home -rule city which is located within Harris and Chambers Counties, Texas, hereinafter referred to as "CITY," WHEREAS, BAWA has the right under a contract with the City of Houston to buy untreated waters from the City of Houston; and WHEREAS, BAWA has constructed certain facilities to treat and deliver the aforementioned untreated water to CITY as treated water; and WHEREAS, CITY has constructed or contracted with BAWA to construct certain facilities to enable CITY to receive the aforementioned treated water; and WHEREAS, BAWA is desirous of selling large quantities of treated water from such source or sources to CITY; and WHEREAS, CITY is, subject to the terms and conditions contained herein, desirous of purchasing from BAWA its treated water; and WHEREAS, BAWA and CITY have found, and do hereby find, that BAWA and CITY are authorized by the laws of the State of Texas to enter into a contract for the sale of water upon such terms and for the period of time hereinafter set forth; and WHEREAS, CITY is authorized to enter into a contract for the purchase of treated water from BAWA pursuant to Chapter 402 of the Texas Local Government Code; 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: 1V r S i 1v Conmici for Tr •i 11V•} cr, Pagc I EXHIBIT A ® ARTICLE I DEI: rN1TIONS Unless a different meaning or intent clearly appears from the context, the following words and terms shall have the meanings specified in this Article, respectively: 1.01 "BeOnnina Date" shall mean the date that CITY begins receiving treated water from BAWA under this Contract or the effective date hereof, whichever is later. Such date may occur after the effective date of this Contract as defined in Article VIII. Provided, however, that if CITY does not begin receiving treated water within one year of the effective date hereof, BAWA shall be under no further obligation to supply CITY with treated water. 1.02 "City's Facilities" shall mean facilities constructed by CITY to enable CITY to receive treated water. 1.03 "Contract Quantity" shall mean the maximum quantity of treated water that BAWA agrees to reserve and sell to CITY pursuant to Section 2.01 herein. 1.04 "(2ontract Term" is defined in Article VIII. 1.05 "Director" shall mean the Director of Utilities of the City of Baytown or any successor department and all persons designated by the Director to administer the sale and delivery of water to customers within the City of Baytown. 1.06 "General Manacur" shall mean the General Manager of the Baytown Area Water Authority or any successor agency and all persons designated by the General Manager to administer the sale and delivery of water to CITY. 1.07 "MGD" is an abbreviation for million gallons of water per day. As used in this contract, "MGD" refers to a quantity of water during a period of time expressed for convenience in terms of an average daily quantity during a calendar month (unless a different period of time is specified). The volume of two MGD for a calendar month, for example, is calculated as follows: Two million gallons multiplied by the number of days in such calendar month. 1.08 "Dint of Delivery" shall mean those delivery points as indicated on Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes, to which BAWA agrees to deliver treated water to CITY. 1.09 "hint of Measurement" shall mean the location of the meter at which CITY's consumption of water is measured, more particularly described in Exhibit "A." • Water 5unnly Contract for Trrncd Water, P;igc 2 ® 1.10 "Service Area" shall mean the area within the boundaries more particularly described in Exhibit °B," which is attached hereto and incorporated herein for all intents and purposes. 0 1.11 "TNRCC" shall mean the Texas Natural Resource Conservation Commission or its successor. 1.12 "Water" shall mean potable water meeting the minimum drinking water standards prescribed by Texas Department of Health Resources and Texas Natural Resource Conservation Commission, and their successor agencies. ARTICLE H SALE AND DELIVERY OF NVATER -2 01 =I Subject to the terms and conditions of this contract, during the Contract Term, BAWA agrees io sell -and deliver (or cause to be delivered) to CITY, all of CITY's water requirements of treated water for municipal purposes at the Points of Delivery at daily rates of delivery; and CITY agrees to purchase from BAWA, all of CITY's treated water requirements for municipal purposes (as such tern is defined by the TNRCC in its rules) at such Points of Delivery during the term of this Contract. It is expressly agreed to and understood that BAWA shall not obligated to deliver to CITY treated water in- excess of therZ-o-ntracV Quantity which shall be the monthly average per day 2.02 The Points of Delivery for treated water sold under this contract shall be designated in writing by CITY; provided, however, BAWA reserves the right to reject any point of delivery designated by CITY which would affect, interfere with or increase the cost of any other facilities or operations which BAWA might wish to construct or implement, or plan to construct or implement, or which would adversely affect BAWA's ability to provide treated water to any of its customers. Both BAWA and CITY agree that the points of delivery shall be those indicated on Exhibit "&" which is attached hereto and incorporated herein for all intents and purposes. Additionally, CITY may give BAWA notice in writing of any additional or change in point(s) of delivery designated by CITY, and BAWA agrees to accept or reject such point(s) of delivery by a response in writing within thirty (30) days after BAWA's receipt of the notice. 2.03 Treated water may be delivered to CITY from any source or combination of sources available to BAWA. 2.04 The treated water to be delivered shall meet minimum standards prescribed by the State of Texas for municipal purposes (as such term is defined by the TNRCC in its rules) and shall be only used by CITY within the Service Area, Walcr Suntrly Contract for Trcatcd \V itcr, Rig 3 2.05 If CITY wishes to reserve for itself additional monthly quantities of treated water, CITY must notify BAWA in writing of CITY'S desire to do so. The General Manager may, at his discretion after considering the treated water requirements of CITY and its obligations and commitments, increase the quantity of treated water supplied to CITY, provided, however, that BAWA shall be under no obligation to deliver treated water in excess of Contract Quantity. CITY may, at its discretion, discontinue delivery of such additional monthly requirements of treated water by giving BAWA thirty (30) days' written notice. 2.06 CITY shall own and be responsible for all lines connected to BAWA's transmission line, beginning at the point where the metering device is installed to meter sales to CITY. ARTICLE 1H RATES AND PRICES 3.01 Billing at the rate for water as specified hereinbelow shall not commence until the Beginning Date of service on or after the effective date of this Contract. 3` 02—� Whenever CITY's consumption shall exceed Contract Quantity by ten percent (10 %), a five percent'(5 %) surchare`shall -be charged against that portion of the consumption that exceeds the Contract Quantity. Provided, however, this surcharge shall not apply to any increase in the quantity of treated water granted by the General Manager pursuant to Section 2.05 hereof. 3.03 All water sold and delivered by BAWA to CITY for which CITY is obligated to pay hereunder shall be sold to CITY at the rate of S 1. IS per one thousand gallons. 3.04 The amount of water delivered to CITY shall be measured by the metering equipment located at the treatment plant which measures the total quantity of treated water delivered into the transmission lines, with the amount delivered to the CITY being the total delivered into the transmission line at the plant, less such amounts sold /metered to other customers of the Authority. 3.05 Additionally, CITY understands and agrees that BAWA may at any time, by order duly enacted, increase or change the price or prices for treated water as set forth in Section 3.01; provided, however that except where an independent rate analysis conducted by a qualified concern indicates that certain rate increase is required, the price or prices for treated water shall not be increased percentagewise to CITY during any twelve (12) month period of this contract in excess of the percentage rate increase in BAWA's water rates to other purchasers of treated water during the same period. 0 Watcr Supply Comi-aci for Tr al W•i r, Pagc 4 ARTICLE IV REPORTS 4.01 Within fifteen (15) days after the end of each quarterly period during the term of this Contract, CITY shalt furnish BAWA with a statement under oath showing the quantities and sources of all water for use or resale by CITY. ARTICLE V MEASURING EQUIPMENT 5.01 All measuring equipment shall be owned by BAWA, even when purchased by CITY, and all measuring equipment shall be located at the Point of Measurement as shown on Exhibit "A." 5.02 During all reasonable hours as determined by the General Manager in his sole discretion, CITY, BAWA, the City of Houston, and the Coastal Water Authority of Texas shall have access to the measuring equipment. CITY may have access to all records pertinent to determining the measurement and quantity of treated water actually delivered hereunder, but the reading of the measuring equipment for purposes of billing shall be done by BAWA. 5.03 BAWA shall maintain the measuring equipment within the accuracy tolerance specified in Section 5.04 by periodic tests. BAWA shall conduct such tests at least once every twelve (12) months and shall notify CITY at least forty -eight (48) hours in advance of the time and location at which tests are to be made. BAWA agrees to properly test said measuring equipment at BA�VA's cost when requested to do so by CITY once every twelve (12) months. If CITY requests an additional test within twelve (12) months, BAWA shall charge CITY an amount equal to BAWA's costs to perform such test unless the test reveals that the equipment registers one hundred two percent (102 %) or more for a given flow rate. In addition, CITY sha11 have the right to independently check, at its own cost, said measuring equipment at any time upon forty -eight (48) hours notification to the General Manager and opportunity for the General Manager to witness such tests. 5.04 Should any test of the measuring equipment in question show that the equipment registers either more than one hundred two percent (102 %) or less than ninety -five percent (95 %) of the water delivered for a given flow rate, the total quantity of water delivered to CITY will be deemed to be the average daily consumption as measured by the measuring equipment when in working order, and the meter shall be calibrated to the manufacture's specifications (in the case of Venturi meters) or the AWWA specifications (for all other types of meters) for the given rate of flow, or replaced by BAWA with accurate measuring equipment that is tested before it is placed in service. The adjustment shall be for a period extending back to the time when the inaccuracy began, if such time is ascertainable; and if such time is not ascertainable, for a period extending back to the last test of the measuring equipment or one hundred twenty (120) days, whichever is shorter. If, for any reason, the measuring equipment is out of service or out of repair and the amount of treated water WLilcr 12 N ConiracLor Trc;ilcd Wi1tcr, Page 5 ® 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. As used in this section, the expression "given rate of flow" means one of the following selected by the General Manager: the total quantity of water delivered during the preceding period (usually a calendar month) as reflected by the totalizer, converted to gallons per minute; 2. high, low and intermediate rates of flow in the flow rate, as reflected by the flow recording devices; 3. the applicable Contract Quantity for the current period, usually a calendar month, converted to gallons per minute; or 4. AWWA- specified test flow rates for that size and type of meter. 5.05 In the event of a dispute between BAWA and CITY as to the accuracy of the testing equipment used by BAWA to conduct the accuracy test, an independent check may be mutually agreed upon between CITY and BAWA and shall be conducted by an independent measuring equipment company suitable to both CITY and BAWA. The cost of such test shall be at CITY's sole expense. 5.06 CITY may install, at its own cost and expense, such check meters in CITY's pipeline or canal as may be deemed appropriate, but BAWA shall have the right of ingress and egress to such check meters during all reasonable hours; provided, however, that billing computations shall be on the basis of the results of the measuring equipment set forth above. ARTICLE VI BILLING AND PAYMENT 6.01 As used in this Article VI, the term "day" shall mean a period of twenty -four (24) consecutive hour beginning at a mutually agreed -upon time on one calendar day and ending at the same time on the next succeeding calendar day, and the term "month" shall mean a period beginning at a mutually agreed -upon time on the first day of a calendar month and ending at the same time on the first day on the next succeeding calendar month. 6.02 The measuring equipment shall be read on the day at the end of each month (or at such period of frequency arranged between the parties) and at a mutually agreed upon time, or as near thereto as practicable. Wa(cr „Su ly C ntrac f r Trcmcd Walcr, Pag 6 1�JL �! _ 0 6.03 The quantities of treated water for which payment is due by CITY hereunder in any month shall be the total quantity oftreated water delivered to CITY in such month determined by the measuring equipment described in Article V hereof. 6.04 BAWA shall bill CITY at CITY's address within ten (10) days after the read date by a statement showing the quantity of water used during the preceding month. Payment shall be due and payable to BAWA at its offices in Baytown, Harris County, Texas, on or before the twentieth day after receipt of such statement. 6.05 Should CITY fail to tender payment of any amount when due, interest thereon shall accrue at the rate of ten percent per annum from the date when due until paid and CITY shall be deemed to be in default. ARTICLE VII TITLE TO AND RESPONSMLLITY FOR WATER 7.01 As between BAWA and CITY, BAWA shall be in exclusive control and possession of, and solely responsible for, all treated water deliverable hereunder and solely responsible for any damage or injury caused thereby until the same shall pass through the Point of Delivery and thereafter, CITY shall be in exclusive control and possession thereof and solely responsible for any injury or damage caused thereby. 7.02 BAWA MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING THE QUALITY OR DELIVERY PRESSURE OF TREATED WATER, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 7.03 With respect to all water handling facilities located between the Point of Delivery and the Point of Measurement, BAWA and CITY specifically agree: that all such facilities, other than the measurement equipment itself, shall be and remain the property of CITY subject to the terms of this Contract; 2. that CITY shall take all reasonable steps to maintain such facilities and to prevent leaks or discharges from such facilities; 3 that CITY shall repair any such leak or discharge at once upon receiving notice thereof and pay BAWA the price of any water lost by reason of such a leak or discharge; 4. that CITY shall correct or repair any damage caused by any such leak or discharge and shall hold BAWA harmless from and against any such damage and claims therefore; 0 Wa cr Slipply Conigg for Trcaic Wiicr, Rig 7 ® 5. that CITY shall alter or relocate, at its sole cost, any such facilities whenever BAWA shall reasonably request in writing that the same be done; and 6. that CITY shall promptly remove such facilities and restore their locations to their pre - existing conditions whenever this Contract is no longer in effect and BAWA so requests in writing. ARTICLE VII TERM This Contract shall be in force and effect beginning on the date of countersignature shown below until December 31, 2020, at 8:00 a.m. ARTICLE IX PERFORMANCE Bl' BAWA AND CITY 9.01 BAWA 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 BAWA's ability to perform fully and punctually its obligations to CITY under this Contract. In case of temporary shortage of water, notwithstanding BAWA's compliance with the portions of this Article IX, BAWA shall distribute the available supply as provided by the laws of the State of Texas, particularly Section 1 1.039(a) of the Texas Water Code, as amended. 9.02 Pursuant to the Amendatory Contract entered into by the City of Houston and the San Jacinto River Authority, which is incorporated herein by this reference, CITY covenants and agrees that it shall take treated water for the purpose of distribution through its municipal water system, and such water shall be used for municipal purposes (as such term is defined by TNRCC Rules, currently in effect or as hereinafter amended) and for no other purposes. CITY covenants and agrees that such treated water shall be sold, distributed or used and ultimately consumed only for residential household or other strictly municipal purposes exclusively within the Service Area. No extension of these boundaries may be made by CITY without written consent of BAWA as well as the written consent of the San Jacinto River Authority and City of Houston, when required pursuant to the Water Supply Contract between the City of Houston and BAWA, dated October 24, 1994. CITY agrees to include covenants similar to those contained in this Section 9.2 in any sales or contracts for sale of water by CITY to any other entity. CITY agrees to submit the wording of such covenants to BAWA for the written approval of BANVA and all other required entities prior to entering into such contracts. W i r i fl n rac f r Trcalcd Wa r, Pa"I 8 CITY understands and agrees that BAWA, the City of Houston and /or the San Jacinto River Authority may enforce the covenants contained in Section 9.02 herein by an action brought directly against CITY. In the event that BAWA and /or the City of Houston maintains any legal proceeding to enforce such covenants, CITY agrees to indemnify BAWA and /or the City of Houston in the amount of all expenses relating to the legal proceeding, including, but not limited to, costs of court and reasonable attorneys' fees. 9.03 CITY acknowledges that according to the terms of the contract between BAWA and the City of Houston, BAWA may be liable to the City of Houston and/or the San Jacinto River Authority for monetary damages in the event that CITY (or any purchaser of water from or through CITY) fails to comply with the restrictions and limitations on the sale of water set out in Section 9.02 herein. CITY acknowledges that such monetary damages would amount to seventy -five percent (75 %) of the consideration or revenue received by BAWA for the estimated amount of water distributed, sold or used in violation of such restrictions or limitations, plus all litigation expenses, reasonable attorneys' fees, and all other remedies available to the City of Houston and /or the San Jacinto River Authority. CITY hereby agrees to totally indemnify, defend, and save BAWA harmless from and against any such expenses and liability which BAWA might incur or any loss BAWA might suffer, as a result of any failure by CITY, or any purchaser of water from or through CITY, to comply with such restriction and limitation. CITY agrees that in the event that CITY furnishes or sells water or water services to a third party that in turn will furnish water to the ultimate consumer, CITY shall include covenants in any such sales or contracts for sale of water to such third party(ies) to ensure that said other entity(ies) will likewise indemnify, hold harmless, and defend BAWA. CITY agrees to submit the wording of such covenants for the approval of BAWA prior to entering into such contracts. CITY acknowledges that according to the terms of the contract between the City of Houston and the San Jacinto River Authority, the City of Houston may be liable to the San Jacinto River Authority for monetary damages in the event that CITY (or any purchaser of water from or through CITY) fails to comply with the restrictions and limitations on the sale of water set out in Section 9.02 herein. CITY 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 attorneys' fees, and all other remedies available to the San Jacinto River Authority. CITY hereby agrees to fully indemnify, defend, and save the City of Houston harmless 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 CITY, or any purchaser of water form or through CITY, to comply with such restrictions and limitations. CITY agrees that in the event that CITY furnishes or sells water or water services to a third party that in turn will furnish water to the ultimate consumer, CITY shall include covenants in any such sales or contracts for sale of water to such third party(ies) to ensure that said other entity(ies) will likewise indemnify, hold harmless, and defend the City of Houston. CITY agrees to submit the wording of such covenants for the approval of BAWA and the City of Houston prior to entering into such contracts. 0 Walcr Suonly COTIMICt for Trcatcd Wale , Pagc 9 9.04 CITY agrees to maintain, at its sole expense its water wells, if any, in good repair and • working order to facilitate the use of such water wells as an emergency source of supply, if required, should BAWA be unable to deliver the Contract Quantity of water for any reason. CITY shall bear all costs of maintaining and supplying such emergency sources of supply. ARTICLE X ENVIRONMENTAL CONSIDERATIONS 10.01 On or before the first anniversary of the effective date of this contract, CITY shall approve, implement and throughout the term hereof remain in full compliance with a water conservation program in accordance with the requirements of the TNRCC. 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 TNRCC adopts new requirements, CITY shall adopt an amended plan and submit the same to the appropriate authority for review and approval. 10.02 CITY agrees that in the event that CITY furnishes or sells water or water services to a third party that in turn will furnish water to the ultimate consumer, the requirements of this Contract relative to water conservation shall be met through contractual agreements between the CITY and the third party, providing for the implementation and continued compliance with a water conservation program consistent with the requirements of the TNRCC. ARTICLE XI REMEDIES UPON DEFAULT 11.01 In the event of any default by CITY in the performance of any of CITY's obligations hereunder which shall continue for a period of thirty (30) days or more, BAWA shall give w6tten notice to CITY specifying the matter with respect to which CITY is in default and requesting that the same be remedied with promptness and dispatch. In the event CITY, within forty -five (45) days after the mailing of such notice by BAWA, has failed to remedy the matter in default, BAWA may suspend further delivery of treated water to CITY hereunder; and in the event such default on the part of CITY continues for an additional thirty (30) days, BAWA may, by an additional written notice to CITY, cancel and terminate this contract, whereupon all rights of CITY and all obligations of BAWA hereunder shall terminate and be at an end. The exercise of such rights shall be in addition to any other remedies available to BAWA under the laws of the State of Texas. 11.02 During any monthly period in which BAWA is unable to deliver to CITY, CITY's daily requirements of water, whether as a result of temporary curtailments resulting from temporary shortages as provided in Section 9.01 hereof or of force majeure as provided in article XI1 hereof, CITY shall be obligated to pay BAWA only for the quantities of treated water actually delivered to • Watcr Supl2ly Qgnlract for Trc�ijcd W-iter, Rig 10 CITY under this contract during such month. During any such period, CITY shall be free to obtain ® treated water from other sources. 11.03 The failure of either party to insist in any one or more instance upon performance of any of the terms, covenants or conditions of this Contract, shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant, or condition by the other party hereto, but the obligation of such other party with respect to future performance shall continue in full force and effect. ARTICLE XfI FORCE MAJEURE 12.01 In the event either party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Contract, or in the event CITY is rendered unable, wholly or in part, by force majeure to operate CITY's facilities, it is agreed that on such party's giving notice and full particulars of such force majeure in writing or by telefax or telegraph to the other party as soon as possible after the occurrence of the cause relied upon, then the obligations of the party given 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 so caused as to the extent provided but for no longer period. Such cause shall as far as possible be remedied with all reasonable dispatch. 12.02 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, lighting, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of government and people, explosions, breakage or damage to machinery, equipment, pipelines or canals, and any other inabilities of either party whether similar to those enumerated or otherwise and not within the control of the party claiming such inability which by the exercise of due diligence and care such party could not have avoided. 12.03 It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party having the difficulty and the above 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. 12.04 CITY shall not be guaranteed any specific quantity or pressure of water whenever BAWA's treated water supply is limited or when BAWA's equipment may become inoperative due to unforeseen breakdown or scheduled maintenance and repairs, and BAWA is in no case to be held to any liability for failure to furnish any specific amount or pressure of water. BAWA agrees that it will attempt to make any necessary repairs or adjustments to its equipment within reasonable times 49 1V atcr SnRply Contract fQr Trc ijcd Waicr, Pagc I I mutually agreeable to both parties. It is further agreed that BAWA may, without liability of default,. ® interrupt its services hereunder to make necessary alterations to or repairs in its facilities, but only if such interruption cannot otherwise reasonably be avoided. BAWA shall schedule interruptions in advance after consultation with CITY. ARTICLE \IT[ ADDRESS AND NOTICES 13.01 Until CITY is otherwise notified in writing by BAWA the address of BAWA is and shall remain as follows: Baytown Area Water Authority Attn: General Manager 2401 Market Street Baytown, Texas 77520 Until BAWA is otherwise notified in writing by CITY, the address of CITY is and shall remain as follows: City of Baytown Attn: City Manager 2401 Market Street Baytown, Texas 77520 13.02 All written notices, statements, and payments required or permitted to be given under this Contract from one party to the other shall be deemed given by telefax or the deposit in a United States Postal Service mailbox or receptacle of certified or registered mail, with proper postage affixed thereto, addressed to the respective other party at the address set forth above or at such other address as the parties respectively shall designate by written notice. ARTICLE XIV MISCELLANEOUS PROVISIONS 14.01 This contract shall bind and benefit the respective parties and their legal successors, but shall not otherwise be assignable, in whole or in part, by either party without first obtaining the written consent of the other; provided, however, that CITY shall have the right, without any consent of BAWA to pledge or otherwise assign CITY's rights hereunder to the extent required by any mortgage, deed of trust or other similar agreement to which CITY may be, or hereafter become a party or to otherwise assign CITY's rights and obligations hereunder in connection with any merger or consolidation of any sale of all or substantially all of CITY's facilities; provided that, CITY's • Walcr Sunr}ly Contract for Trcatcd Walcr, R%c 12 successor or assignee, as the case may be, is a responsible person and shall (by operation of law or is otherwise) expressly assume CITY'S' obligations hereunder; and provided, further, however, that no successor or assignee of CITY shall be entitled to receive water or sell water to a third party under this Contract unless and until the City of Houston and the San Jacinto River Authority give their written consent to such assignment. • 14.02 This Contract shall be for the sole and exclusive benefit of BAWA and CITY and shall not be construed to confer any rights upon any third party. BAWA shall never be subject to any liability in damages to any customer of CITY for any failure to perform under this Contract. 14.03 This Contract shall be subject to all present and future valid laws, orders, rules and regulations of the United States of America and the State of Texas and of any regulatory body having jurisdiction. 14.04 This instrument contains all the agreements made between the parties concerning the sale and delivery of water by BAWA to CITY at the Point of Delivery set out in this Contract. 14.05 With respect to any prior agreements between the parties or their predecessors for the sale of water to CITY at any point of Delivery hereunder, the future obligations of both parties to perform under any such prior agreement are terminated effective as of the effective date hereof, except as follows: Any obligations which arise prior to such effective date, including specifically the obligations of CITY to pay money to BAWA for time periods or deliveries prior to such effective date, are not terminated. 14.06 The construction, interpretation and performance of this Contract shall be governed by the laws of the State of Texas. 14.07 A11 parties agree that should any provision of this Contract be determined to be invalid or unenforceable, such determination shall not affect any other term of this Contract, which shall continue in full force and effect. 14.08 Each party has the full power and authority to enter into and perform this Contract, and the person signing this Contract on behalf of each party has been properly authorized and empowered to enter into this Contract. Tile persons executing this Contract hereby represent that they have authorization to sign on behalf of their respective entities. 14.09 The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Contract. Willer Simply Conir,,cl for Trc.ilcd %V ;i1cr, Rig 13 IN WITNESS WHEREOF, the parties hereto have executed this contract in multiple copies each of which shall be deemed to be an original, but all of which shall constitute but one and the same contract, as of the date of the countersignature. CITY OF BAYTOWN PETE C. ALFARO, Mayor ATTEST: EIL.EEN P. HALL, City Clerk BAYTOWN AREA WATER AUTHORITY ROBERT L. GILLETTE, President ATTEST: PETER R. BUENZ, Secretary APPROVED TO CONFORMING TO REQUIREMENTS OF CONTRACT NO. 34739, SECTIONS 9.2 AND 9.3: GENE L. LOCKS, City Attorney CITY OF HOUSTON c :klh241E3AWA1CityolB.L%town33AW A.Contr,ict 0 Walcr Sun21y Coniract, for Trc;11Cd Walcr, Ngc 14 • Exhibit A Point of Measure TEXAS [CATER COMMISSION -r CERTIFICATE OF CONVENIENCE AND NECESSITY To Provide Water Service Under V.T.C_A., Water Code and Texas Water Commission Substantive Rules Certificate No. 10860 I. Certificate Holder: Name: City of Baytown Address: P. O. Box 424 Baytown, Texas 77522 -0424 II. General Description and Location of .Service Area: HARRIS COUNTY: The area covered by this certificate in Harris County is located approximately 22 miles east of Houston, Texas on State Highway 146. The service area is generally bounded on the north by portions of Decker Drive, Baker Road, South Road and Massey - Tomkins Road; on the south by Scott Bay, Black Duck Bay and Tabbs Bav; on the east by Cedar Bayou; and, on the west by Burnet Bay and Crystal Bay. Dual certification exists with Baytown Area Water yuthority, CCN No. 10672. CHAMBERS COUNTY: Pinehurst subdivision - The area covered by this certificate in Chambers County is located approximately 13. 5' niles west /northwest of downtown Anahuac, Texas on State Highway 146. The service area is generally bounded on the north by willow Oak Drive, on the northeast by the Southern Pacific Railroad, on the south by Cherokee Street, on the west by Cedar Bayou and on the southeast by State Highway 146. Cedar Bend Subdivision -- The area covered by this certificate in Chambers County for Cedar Bend Subdivision is located approximately 13.5 miles west of downtown Anahuac, Texas on State Highway 146. The service area is generally bounded on the east by State Highway 146 and on the west by Cedar Bayou. • Lincoln Cedar Subdivision - The area covered by this certificate in Chambers County is located 13.5 miles west of downtown Anahuac, Texas on State Highway 146. The service area is generally l�� . • � D ' / \ F•P ��:a:•,::.... 111 SO �'• . r3 1942 555 �::::.yyy• ::::. \� • C1o5by �c•' Q � r: �A$ � Vi'� � , �' b 2 -2 .•` .� .:::....iii 1 /V • � ,� _ � :•�::. I ® � Cf � � . ��;:::. f iii: rber..::.::ii::::: Gu • ' i s� 12079 10860 7. i p 20465 i 167 10860 ' 31E 0333 Q' ; ' 20593 . . •� EP 10860 `' ;y • 565 `h 0 I E S - •' 3r80 • 0 I n5 S `� SC 10860 0 54 LAKE 10860 — �.,..... 1. 17 ' FI E !, 20333 I . • . �• „ �Q T 01 / IE 0 '' �• 1 BQ Y TOWN � POP 0 56 92,3 ••..i c •- 1 I • 1. •• / ul 13 wRS -36 w 'tHA.MBERS COUNTY 2 5 /' T N Citv of Bavtown �^ wa'd'er Service Area 20465 •� �� CCN No,_ 10860 ) 1 I 1 mile 10/27/93 '. Scale: 1" - t • � •.,e1 n � � ° .•' �% .�' /. •; •.' n *NVAP �