R2021-005 2021-01-11RESOLUTION NO. R2021-5
A Resolution of the City Council of the City of Pearland, Texas, authorizing
an Amended Water Supply Agreement with the Gulf Coast Water Authority
(GCWA), to reduce the required reserve fund associated with the annual
cost of service.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Amended Water Supply Agreement, a copy of which is
attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized
and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an Amended Water Supply Agreement.
PASSED, APPROVED and ADOPTED this the I1 day of JQ11U4 j
A.D., 2021. �J
-'(
J. - IN COLE
AYOR
ATT
TAL RIAN, T'MC, CMC
CIT SECRETARY
APPROVED AS TO FORM:
•
DARRTN M. COKER
CITY ATTORNEY
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EXHIBIT A
FIRST AMENDMENT TO THE
SYSTEM RAW WATER AVAILABILITY AGREEMENT
BETWEEN
GULF COAST WATER AUTHORITY
AND
CITY OF PEARLAND
This First Amendment to the System Raw Water Availability Agreement ("Agreement")
is made and entered into effective this the 1st day of [ MONTH ], 2020 (the "Effective Date"), by
and between GULF COAST WATER AUTHORITY (hereafter, "GCWA"), and the CITY OF
PEARLAND (hereafter, "Purchaser"). GCWA and Purchaser are sometimes referred to herein as
a "Party" or the "Parties."
1
RECITALS
GCWA is a conservation and reclamation district created and organized under Art. XVI, Sec. 59,
Texas Constitution that operates a system of water rights, canals and water diversion, pumping,
storage and transmission facilities and appurtenances (hereafter, the "System") for obtaining,
diverting, storing and transporting raw water (hereafter, "Water") in order to make the Water
available for beneficial use.
Purchaser is a home -rule municipality and political subdivision of the State of Texas and desires
to purchase Water from GCWA for beneficial use.
GCWA and Purchaser have heretofore entered into an "Option Water Agreement" dated January
26, 1998, which was superseded and replaced as part of a subsequent "System Raw Water
Availability Agreement" made effective April 27, 2015, and that the City of Pearland executed on
May 6, 2015 (the "Prior Agreement").
GCWA and Purchaser enter into this Amendment to the Prior Agreement to evidence GCWA's
reduction of the reserve fund established and maintained as provided in Section 13 of the Prior
Agreement;
Now therefore,
GCWA and the Purchaser agree to amend Section 13 of the Prior Agreement to read as follows:
13
OPERATION, MAINTENANCE AND REPLACEMENT RESERVE FUND
GCWA and Purchaser recognize and agree that GCWA's current Budgeted Cost of Service
includes provision for a reserve fund for operation, maintenance and replacement costs. The
current amounts in the reserve fund were accumulated from prior payments from customers of the
System and through annual payments for previous years' Budgeted Costs of Service. GCWA
agrees to continue its practice of requiring new customers or existing customers that increase the
amount of water purchased from GCWA to contribute appropriate amounts to the reserve fund in
order to equitably distribute the burden of the reserve fund over all customers of the System.
Currently, GCWA has established shall maintain the reserve fund at a level equal to sue) three
(3) months or less more of the annual amount of the Budgeted Cost of Service, and shall maintain
the reserve fund at or about the same level in calculating the System Rate. Neither Purchaser nor
any other customers of GCWA shall be entitled to any refund of any portion of the reserve fund.
Except as Amended above, the Prior Agreement
with all its terms and conditions.
IN WITNESS WHEREOF, the Parties hereto
governing bodies have caused this Agreement to
shall continue in force and effect in accordance
acting under the authority of their respective
be duly executed as of the Effective Date.
[SIGNATURES FOLLOW]
GULF COAST WATER A..... _!_ ' TY
ATTEST;
ERAL • GER
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CITY OF PEARLAND
Date:
City/Secretary