Ordinance No. 14,742ORDINANCE NO. 14,742 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE SECOND AMENDMENT TO THE WATER SUPPLY AND WASTE DISPOSAL AGREEMENT WITH CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2; 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 hereby authorizes and directs the City Manager to execute and the City Clerk to attest to the Second Amendment to the Water Supply and Waste Disposal Agreement with Chambers County Improvement District No. 2. Said amendment 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 10i1' day of June, 2021. BRANDON CAPETILLO, Mayor ATTEST: Al OF A A GEL CKSON, Inter,. gity-jerk APPROVED AS TO FORM: KEN L. HORNER, City Attorney R:\Karen HomenDocumcnts\Files\City Council\OrdinancesC1021`June 10\ I stAmendment2CCID2WaterSupplyAgreement.doe Exhibit "A" SECOND AMENDMENT TO WATER SUPPLY AND WASTE DISPOSAL AGREEMENT This Second Amendment to Water Supply and Waste Disposal Agreement (this "Second Amendment") is entered into to be effective as of , 2021, by and between the City of Baytown, Texas, a municipal corporation and home -rule city which is principally located in Harris County, Texas and Chambers County, Texas (the "City"), and Chambers County Improvement District No. 2., a special district created pursuant to Sections 52 and 52-a, Article III, and Section 591) Article XVI, Texas Constitution (the "District"). RECITALS WHEREAS, the City and the District entered into that certain Water Supply and Waste Disposal Agreement (the "Agreement"), dated as of July 24, 2015 (the "Effective Date"), pursuant to which the City agreed to provide water supply and waste disposal services to the Service Area (as defined in the Agreement); and WHEREAS, effective March 29, 2019, the City and the District amended the Agreement to (i) extend the time period by which the District must apply for the ACR, (ii) include the land to be annexed by the District in the Service Area, and (iii) deduct the amount of irrigation meter usage in the District when calculating the District's wholesale wastewater service charge; and WHEREAS, the City and the District desire to amend the agreement again to align the capacity and quantity requirements to the needs of the District; NOW THEREFORE, for and in consideration of the mutual covenants and agreements here contained, the parties do hereby mutually agree as follows: AGREEMENT For and in consideration of the mutual covenants and terms contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the District agree as follows: Unless otherwise specifically set forth in this Second Amendment, all capitalized terms herein shall have the meanings set forth in the Agreement. 2. Article IV "Quantity and Capacity" of the Agreement is hereby deleted in its entirety and replaced with the following: Second Amendment, Page 1 ARTICLE IV QUANTITY AND CAPACITY 4.01 uanti . (a) Water. Subject to the terms and conditions of this Agreement, City agrees to sell and deliver (or cause to be delivered) to the District, the District's Water requirements of Water, and the District agrees to purchase from City the District's Water requirements for resale during the term of this Agreement for water services to be supplied to the Service Area as defined in Article I hereof. The District's total Water requirements shall mean the total quantity of Water the District needs to conduct operations, use or resell within the Service Area. The maximum amount of total Water that the City shall be obligated to provide shall be no more than 200,000 gallons per day ("gpd") average daily flow and no more than 245,900 gpd average daily flow at full build -out; provided that such quantities do not exceed the rate of 400 gpd times the actual number of equivalent single- family connections ("ESFC") calculated pursuant to Chapter 114 of the Code of Ordinances, Baytown, Texas, as it currently exists and as hereinafter amended. Any increase in quantity above the annual 110% quantity adjustment set forth in Section 4.02 below must be approved in writing by the City's Director of Public Works and Engineering, which approval shall not be unreasonably withheld, but may not exceed 245,900 gpd average daily flow. Tile Director shall provide a written response to the District within thirty (30) days of the District's written request for such an increase. (b) Waste. In consideration of the compensation stated herein, the City shall accept and treat waste from the District and the District shall have the privilege of discharging waste into the City's System, not to exceed 184,500 gallons per minute of capacity in the FM 565 Wastewater Facilities, which consist of a wastewater force main and a section of twelve -inch (12") gravity line from FM 565 to the District's territory. 4.02 Adjusted Quantity. It is expressly understood and agreed that the quantity specified in Section 4.01 and the capacity reserved in Section 4.03 shall be adjusted annually to a quantity that equals 110% of the average annual water usage during the previous year; provided that such quantity does not exceed the quantities specified in Section 4.01. 4.03 Capacity Reserved. The City covenants and agrees that the City shall reserve for the benefit of the District, the capacity in its water supply facilities and in its treatment plant sufficient to supply and treat the quantities established in Section 4.01 and adjusted in Section 4.02 of this Agreement. However, the District shall not be guaranteed any specific quantity or pressure of Water for the services to be provided herein by the City if the City's Water supply is limited or when the District's equipment may become Second Amendment, Page 2 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. 4.04 Service Contracts with Other Entities. The District shall not permit any entity located outside the Service Area to connect to the District'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. 3. This Second Amendment shall continue in full force and effect for the same period as the Agreement. 4. Except as specifically amended in this Second Amendment, the First Amendment and the Agreement shall remain in full force and effect in accordance with their terms and conditions, which terms and conditions shall apply to this Second Amendment. In the event of any conflict between this Second Amendment and the First Amendment and the Agreement, the terms and conditions of this Second Amendment shall govern and control. 5. This Second Amendment, the First Amendment and the Agreement embody the entire agreement between the City and the District relative to the subject matter hereof and thereof. b. This Second Amendment may be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. [SIGNATURES COMMENCE ON FOLLOWING PAGE] Second Amendment, Page 3 IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of this day of DISTRICT (Signature) By: (Printed Name) (Date) (Title) Chambers County Improvement District No. 2 ATTEST: (Signature) (Printed Name) (Title) APPROVED AS TO FORM: (Signature) (Printed Name) (Title) Second Amendment, Page 4 CITY RICHARD L. DAVIS (Date) City Manager City of Baytown, Texas ATTEST: ANGELA JACKSON, Interim City Clerk APPROVED AS TO FORM: KAREN L. HORNER, City Attorney RAKaren Horner\Documents\Files\Contracts\CCID n2\Second Amendment to Water Supply and Wastc Disposal Agreement 06072021.doc Second Amendment, Page 5