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R2007-112 2007-07-09 PF oi u ErIEenn PEARLAND � T E X A S � CERTIFICATION THE STATE OF TEXAS § COUNTIES OF BRAZORIA, HARRIS, & FORT BEND. § I, Young Lolling, City Secretary of the City of Pearland, Texas, hereby certify that the attached constitutes a true and correct copy of Resolution No. R2007-112 duly passed and approved by the City Council on the 9th day of July 2007. Witness my hand and seal of the City of Pearland, Texas, this 13th day of July, 2007, at Pearland, Texas. ei<'f-7 4 ;a,+auu►„ ng g T y Secretary 3519 LIBERTY DRIVE • PEARLAND,TEXAS 77581-5416 • 281-652-1600 • www.cityofpearland.org ,)Printed on Recycled Paper RESOLUTION NO. R2007-112 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A WATER SUPPLY AGREEMENT WITH GULF COAST WATER AUTHORITY. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Water Supply Agreement by and between the City and Gulf Coast water Authority, 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 a Water Supply Agreement with Gulf Coast Water Authority. PASSED, APPROVED and ADOPTED this the 9th day of July, A.D., 2007. �O101 EID MAYOR ATTEST: NG �� , Y S RETAR APPROVED AS TO FORM: �- DARRIN M. COKER CITY ATTORNEY • WATER SUPPLY CONTRACT BETWEEN GULF COAST WATER AUTHORITY AND CITY OF PEARLAND,•TEXAS June 29, 2007 WATER SUPPLY CONTRACT BETWEEN GULF COAST WATER AUTHORITY AND CITY OF PEARLAND, TEXAS THE STATE OF TEXAS § COUNTIES OF BRAZORIA, § HARRIS AND FORT BEND § This WATER SUPPLY CONTRACT dated as of June 29, 2007, is by and between the GULF COAST WATER AUTHORITY, a conservation district and political subdivision of the State of Texas, created and operating under the provisions of Article XVI, Section 59 of the Constitution of Texas, Chapter 712, Acts of the 59th Legislature of Texas,Regular Session, 1965 (Article 820 339, TEX. REV. CW. STAT. ANN.), as amended, acting herein by and through its - duly authorized officers (the "Authority"), and the CITY OF PEARLAND, TEXAS, a municipal corporation and home rule city situated in Brazoria, Harris and Ford Bend Counties, Texas, duly organized and existing under its charter and the Constitution and laws of the State of Texas (the"City"), acting herein by and through its duly authorized officers. WITNES SETH: WHEREAS, the City owns and operates a waterworks system supplying water to inhabitants of the City and adjacent areas. Due to the increase in the City's population and in its water usages, its water supply is inadequate to supply the needs of the City and its customers and it became necessary to develop an additional supply of potable water to permit the City to serve its customers and continue its growth; and WHEREAS, the Authority, formerly known as the "Galveston County Water Authority," was created by the Texas Legislature in 1965, and such creation legislation was subsequently amended to provide that the Authority has the responsibility and authority to develop water supplies for municipal, domestic, industrial and other uses in the Gulf Coast area; and WHEREAS, the Authority has heretofore entered into that certain Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended) (the "2001 Cost Sharing Agreement") in or about 2001 with the City of-Houston and other participants in which the Authority acquired water supply capacity in the Southeast Water Purification Plant (the "Plant") on behalf of the City of League City; and WHEREAS, Houston is in the process of expanding the capacity of the Plant and in order to acquire additional capacity therein on behalf of the City and the City of League City, Houston has requested the Authority to amend the 2001 Cost Sharing Agreement by entering into an Amendment To Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended) with the City of Houston and certain other parties (the "2007 Amendment") to arrange to acquire additional capacity in the "200 MGD Project" as defined in the 2007 Amendment on behalf of the City and the City of League City; and WHEREAS, the City requests the Authority to enter into the 2007 Amendment on behalf of the City; and WHEREAS, the City recognizes that the Authority has no power to levy ad valorem taxes and that the Authority's sole source of revenues to purchase water from Houston, and to maintain, operate and keep in good repair its water facilities is the revenues to be derived under this Water Supply Contract and similar contracts; and WHEREAS, the City has heretofore approved and directed and hereby approves and directs, the Authority to enter into the 2007 Amendment on behalf of the City; and WHEREAS, this Water Supply Contract was approved by a majority vote of the governing body of the City at a meeting duly called and held; NOW, THEREFORE, in consideration of the premises, and for good and valuable consideration, the City and the Authority agree as follows: AGREEMENT The City and the Authority agree that this Water Supply Contract is hereby adopted. DEFINITIONS "200 MGD Project" shall have the meaning given to it in the 2007 Amendment. "2007 Pearland Project"means the acquisition by the Authority for the benefit of the City of a 10.0 MGD Demand Allocation of the 200 MGD production capacity or a 5.0000% Demand Allocation factor, a 10 MGD pumping allocation of the 255 MGD pumping capacity or a 3.9216% pumping allocation factor in the Plant, a 10 MGD distribution allocation of the 250 MGD distribution capacity or a 4.0000% distribution allocation factor in the 96-inch pipeline from points B to C and a 10 MGD distribution allocation of the 250 MGD distribution capacity or a 4.0000% distribution allocation factor in the 96-inch pipeline from points C to D as more fully described as the"200 MGD Project"in the 2007 Amendment. "City"means the City of Pearland, Texas. "Cost Sharing Agreement" means that certain Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended), effective May 16, 2001, between Houston and the Authority, Harris County Municipal Utility District No. 55, the Clear Lake City Water Authority (the City of Nassau Bay), the La Porte Area Water Authority, the City of Pasadena, Clear Brook City Municipal Utility District, the City of South Houston, the City of Webster, the City of Friendswood and Baybrook Municipal Utility District No. 1, as amended including the 2007 Amendment and as amended from time to time in the future. The terms and provisions of the Cost Sharing Agreement are hereby incorporated into this Water Supply Contract by reference. -2- The Cost Sharing Agreement as currently amended, is included herein as Exhibit A of this Water Supply Contract. "Force Maj eure"means, without limitation, acts of God, unavoidable accident, acts of the public enemy, strikes, riots, floods, fires, government restraint or regulations, breaks in the Authority's pipelines, default by Houston in delivering water to the Authority, or for any other cause beyond the Authority's control, then the obligation of the Authority to deliver water to the City shall be temporarily suspended during the continuance of such force majeure. "Houston"means the City of Houston, Texas. "MGD"means million gallons of water per day. "Managing Participant" means the City of Houston, Texas as the operator and co-owner of the Plant. "Operating Charges" shall include all of the sums which are due and payable from time to time to Houston under the Cost Sharing Agreement with respect to the 2007 Pearland Project and future Pearland Project(s) if any approved by the City and Authority by amendment(s) if any to this Water Supply Agreement and any costs incurred by the Authority or directly arising out of ownership and operation of the 2007 Pearland Project and future Pearland City Project(s) if any approved by the City and Authority by any amendment(s) if any to this Water Supply Agreement, including the costs and expenses of any claim or cause of action asserted against the Authority even if asserted by the City and even if due to the Authority's negligence except to the extent the Authority receives funds from a related insurance claim and an allocation of the Authority's overhead and general administrative expenses. "Plant" means the Southeast Water Purification Plant located south of Genoa Red Bluff Road north of Ellington Field, Harris County, Texas and all associated facilities, which facilities are further defined in the Cost Sharing Agreement. "Point(s) of Delivery" means the point(s) at which treated surface water is supplied to the City after the flow meter at the location(s) of the flow control devices. The City's initial Point(s) of Delivery are shown on the Exhibit(s) in the Cost Sharing Agreement. "Water Supply Contract" means this Water Supply Contract between Gulf Coast Water Authority and the City of Pearland, Texas, as amended from time to time. I. PLANNING, FINANCING AND CONSTRUCTION Section 1.1 2007 Pearland Project. The Authority will cooperate with the Managing Participant which is responsible for causing the construction and acquisition of the 200 MGD Project pursuant to the terms of the 2007 Amendment. The City shall timely provide from time to time and the Authority shall disburse monies to Houston as required by the terms of the Cost Sharing Agreement to pay the City's share of the costs of the 2007 Pearland Project as set forth in the 2007 Amendment. The City recognizes that the 2007 Amendment requires that any -3- underpayment must be paid with interest to the Managing Participant.within 90 days or the City's Demand Allocation Factors shall be reduced. II. DELIVERY OF WATER Section 2.1 Point(s) of Delivery and Title. Title to, possession and control of water delivered hereunder shall remain in the Authority until such water shall pass through the flow control device(s) at the Point(s) of Delivery where title to, possession and control of such water shall pass from the Authority to the City. Pursuant to the Cost Sharing Agreement Section 3.15, Backflow Prevention, the City shall install downstream each Point of Delivery an air gap or backflow prevention assembles downstream from the flow control .device as required by Houston. A different or additional Point(s) of Delivery may be designated by the parties as circumstances may require subject to Houston's approval. Section 2.2 Quantities. (a) The Authority will acquire, on behalf of the City and hereby conveys and confirms a beneficial interest in the Plant as defined in the Cost Sharing Agreement. (b) The Authority agrees to deliver to the City in the manner, at the times, and for the price set out herein, water in amounts as required by the City up to the amounts to which the City is entitled pursuant this Water Supply Contract. (c) The City agrees that, to the extent that it is not using its full production capacity or pumping capacity hereunder, a portion of such unused capacity may be used by the Authority; provided that the Authority shall be responsible for paying operating costs attributable to any portion so used; and provided further that the City shall at all times have the right to the full use of its production capacity and pumping capacity hereunder and that Authority's rights hereunder to use such unused capacity shall be subordinate and subject to the rights of the City in all respects. Section 2.3 Pressure. In the Cost Sharing Agreement, Houston has agreed to deliver water from the Plant to the Participant at a pressure meeting the requirements of state law at the respective Point(s) of Delivery, and the Authority shall enforce this provision if requested by the City. Section 2.4 Quality. The parties recognize that the source of water to be furnished by the Authority to the City under this Water Supply Contract is from the Plant and the Authority shall not be responsible for the quality of water as produced by the Plant. Section 2.5 Measuring Equipment. (a) Pursuant to the Cost Sharing Agreement Houston shall furnish, install, operate and maintain at its own expense at the Point(s) of Delivery the necessary equipment and devices of standard type for measuring properly the quantity of water received from Houston and delivered to the City under this. Water Supply Contract and the Authority shall have no responsibility with respect to such metering. Such meter or meters or other equipment so -4- installed shall be the property of Houston. The City and the Authority shall have access to such metering equipment at all reasonable times, but the reading, calibration and adjustment thereof shall be done only by the employees or agents of Houston. (b) Upon written request of the City, the Authority shall request Houston to give the Authority and the City access to books and records pursuant to the terms of the Cost Sharing Agreement. Upon written request of the City, the Authority shall request Houston to calibrate its meters relating to the delivery of water to the City as provided for in the Cost Sharing Agreement and shall exercise the Authority's rights relating to calibration of meters and check meters pursuant to the terms of the Cost Sharing Agreement. (c) All obligations of the Authority as a Participant under the Cost Sharing Agreement to supply back flow or air gap assembly and similar operational shall be the responsibility of the City and upon written request of the Authority, the City shall comply with such obligations. Section 2.6 Billing and Payment. (a) Pursuant to the Cost Sharing Agreement Houston shall read all of the meters monthly. (b) The Authority shall bill the City for Operating Charges monthly, or at such other interval as may be agreed to by the parties. Such bills will be sent to the City by the 10th day of the month and shall be due and payable on the 20th day of such month. (c) Any unpaid bills shall bear interest at the rate of 10% per annum from the date due to the date of payment. Section 2.7 Price of Water. Participants who increase their Demand Allocation in the 200 MGD Project may pay the Managing Participant's standard contract rates for untreated water currently described in the city of Houston Code of Ordinances Section 47-85 or may alternatively elect to pay an existing untreated water Capital Charge, untreated water New Debt Service Expenses, and Untreated Water 0 & M in accordance to Article VII of the Amendment To Cost Sharing Agreement South Water Purification Plant (Restated and Amended). , The Authority will use its best efforts to exercise the option elected by the City for the untreated water. The parties hereto recognize that because the price the Authority must pay for untreated and treated water from Houston will vary from time to time according to volume, and further because the operation, maintenance and repair expenses of the Authority and other customers will also vary from time to time, it is neither practical nor possible to fix a schedule of specific rates in this Water Supply Contract that will control the price paid by the City to the Authority for water delivered throughout the term of this Water Supply Contract. The parties further recognize, however, that the Authority is not organized for profit and that its rates for water should at all times be the lowest possible rates consistent with good business management on the part of the Authority. Section 2.8 Operating Charges. The City shall timely pay to the Authority all Operating Charges at or prior to the time any such payment is due or payable. -5- Section 2.9 Annual Operating Budget. The Authority shall deliver by mail a copy of the budget prepared by Houston and submitted to the Authority within five business days of the Authority's receipt of such budget, and the Authority shall prepare and submit to the City Manager for review, at least 30 days prior to the beginning of each Authority fiscal year a budget for the cost of water supplied to the City under this Water Supply Contract for the ensuing year, including estimated overhead and administration costs of the Authority. The City has the right to receive the detailed backup of the overhead and administrative costs which are allocated and the methodology of allocation. Any annual budget may be amended only with the written approval of the Authority Board of Directors and the City Council. Section 2.10 Source of Payments to Authority. All payments required to be made by the City to the Authority under this Water Supply Contract shall be payable from the revenues and income received by the City from the ownership and operation of its water system. The Authority shall never have the right to demand payment by the City of any obligations assumed by or imposed upon it under or by virtue of this Water Supply Contract from any funds raised or to be raised by taxation, and the City's obligations under this Water Supply Contract shall never be construed to be a debt of the City of such kind as to require it under the Constitution and laws of the State of Texas to levy and collect a tax to discharge such obligation. Nothing in this Subsection, however, shall be construed as preventing the City, in its sole discretion, from making any such payment from sources other than revenues and income of the City's water system. Pursuant to the provisions of TEX. GOV'T CODE, §.791.026 (the Interlocal Cooperation Act), such payments made hereunder shall be an operating expense of the City's water system or combined utility system as the case may be. Section 2.11 Serving Other Customers. (a) The parties recognize that the Authority contemplates the construction of additional facilities to serve other cities, towns, conservation districts, industries and customers and nothing in this Water Supply Contract shall be construed to hinder or impair the Authority's power and privilege to do so. No part of the capital or operating costs of any such facilities constructed or acquired solely for the benefit of other customers shall be charged to the City; provided that the Authority's general overhead and administrative expenses shall be allocated on an equitable basis among all of the Authority's customers. (b) The Authority and the City may agree to increase or decrease the City's entitlement in the capacity of the Plant or other facilities during the term of this Water Supply Contract. Nothing herein shall prevent the Authority from contracting to sell water to other customers through these or other facilities acquired by the Authority for the conveyance of water provided that nothing in any such contract shall impair the ability of the Authority to deliver to the City the full daily quantity of water. The City may sell any portion of the water received by it under this Water Supply Contract to third parties provided that no such sales shall reduce the City's obligation to the Authority to pay Operating Charges on water delivered to the City pursuant to this Water Supply Contract hereunder. Section 2.12 Water Conservation and Drought Contingency Programs. On or before the year from the effective date of this Water Supply Contract, the City shall approve and implement a Water Conservation Plan and a Drought Contingency Plan as required by the Texas -6- Commission on Environmental Quality pursuant to 30 TAC § 288. The City agrees to amend its Water Conservation Plan and/or Drought Contingency Plan, as necessary, to reflect amendments in state law, Authority Plans, or Houston Plans as it applies to the water subject to this Water Supply Contract. Section 2.13 Force Majeure. (a) If the Authority is prevented, wholly or in part, from furnishing water to the City under this Water Supply Contract by reason of any Force Majeure, then the obligation of the Authority to deliver water to the City shall be temporarily suspended during the continuance of such Force Majeure. (b) No damage shall be recoverable from the Authority by reason of the temporary suspension of delivery of water due to any Force Majeure. If the Authority's ability to deliver water to the City is affected by any Force Majeure, the Authority shall promptly forward to the City Manager of any information the Authority receives from Houston in writing or by telegraph as soon as practicable. Nothing in this Section shall prevent the Authority from asserting damages against any third party for interruption of services, in which event, the Authority and the City shall share in the proceeds of any recovery, to the extent of their respective damages. III. TERM AND GENERAL PROVISION Section 3.1 Limits of Liability: THE CITY RECOGNIZES THAT THE AUTHORITY ENTERED INTO THIS CONTRACT TO. ASSIST THE CITY OBTAIN WATER FROM THE PLANT AND IN NO EVENT WHATSOEVER SHALL SELLER HAVE ANY LIABILITY TO THE BUYER FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION ANY DAMAGES RELATING TO LOST PROFITS, GOODWILL OR REPUTATION, BUSINESS INTERRUPTION, OR THE LIKE, REGARDLESS OF THE FORM OF CLAIM OR CAUSE OF ACTION AND REGARDLESS OF WHETHER SOUNDING IN CONTRACT, TORT (INCLUDING NEGLIGENCE, STRICT PRODUCTS LIABILITY, AND OTHERWISE), STATUTORY, OR OTHERWISE, AND REGARDLESS OF WHETHER HAVING BEEN NOTIFIED OF THE POSSIBILITY OR LIKELIHOOD OF ANY SUCH DAMAGES. WITHOUT REGARD TO THE NATURE OF ANY CLAIM OR CAUSE OF ACTION. THE CITY WAIVES ANY CLAIM OR CAUSE OF ACTION FOR DAMAGES AGAINST THE AUTHORITY EVEN IF DUE TO AUTHORITY'S NEGLIGENCE RELATING TO OR ARISING OUT OF THIS AGREEMENT OR THE WATER TO BE PROVIDED BY THE AUTHORITY TO THE EXTENT THE AMOUNT OF SUCH CLAIM OR CAUSE OF ACTION EXCEEDS THE AMOUNT, IF ANY, WHICH THE AUTHORITY RECEIVES FROM INSURANCE, IF ANY,RELATED TO SUCH CLAIM. Section 3.2 Approval by the City. Whenever this Water Supply Contract requires or permits approval or consent to be hereafter given by the City, such approval or consent shall be effective without regard to whether such approval or consent is given before or after the time required herein. Such approval or consent shall be evidenced by an ordinance or resolution -7- adopted by the governing body of the City or by an appropriate certificate executed by a person, firm or entity authorized to determine and give approval or consent on behalf of the City pursuant to an ordinance or resolution adopted by the governing body of the City. No consent or approval of the City shall be required as a condition to any action by the Authority except as expressly required in this Water Supply Contract. Section 3.3 Special Conditions. This Water Supply Contract and the Authority's obligation to deliver water to the City as provided herein shall be subject to the following: (a) All present and future valid laws, permits, orders, rules and regulations of the United States of America, the State of Texas, and any regulatory body having jurisdiction (and the parties agree to cooperate to obtain compliancy therewith); (b) The Cost Sharing Agreement, as it may be amended from time to time with the written approval of the City, and the City agrees to cooperate in making such applications and in taking such actions as may be desirable to obtain compliance therewith. Section 3.4 Effective Date; Term. This Water Supply Contract shall be in full force and effect upon approval by the City and unless sooner terminated by agreement, shall remain in force until the termination of the Cost Sharing Agreement; provided further that the Authority shall not agree to a termination of the Cost Sharing Agreement without the City's prior written consent to such termination. Section 3.5 Remedies Upon Default. (a) Recognizing that failure in the performance of any of the Authority's obligations hereunder could not be adequately compensated in money damages pursuant to this Water Supply Contract, the parties agree in the event of any default on the part of the Authority, the City shall have available to it the equitable remedy of specific performance in addition to any other equitable remedies (other than termination of this Water Supply Contract or non-payment of the City's obligations hereunder). In the event of a default by the City under this Contract, the Authority shall have all remedies existing at law or in equity (other than termination of this Water Supply Contract), including right to cease delivery of water in the event of non-payment by the City of the Operating Charges. Notwithstanding anything to the contrary contained in this Water Supply Contract, any right or remedy or any default hereunder shall be deemed.to be conclusively waived unless asserted by a proper proceeding at law or in equity within two years after occurrence of such default. (b) The Authority recognizes the great importance of the water supply provided by this Water Supply Contract to the health and welfare of the City and its citizens and that the City is a principal beneficiary of the Cost Sharing Agreement. If Houston should at any time default in the performance of its obligation to deliver water to the Authority, thereby impairing the Authority's ability to deliver water to the City, the Authority covenants and agrees with the City to proceed promptly and with diligence at the sole cost and expense of the City to require Houston to remedy such default, failing which the City shall have the right to proceed in . -8- its own name, or in the name and on behalf of the Authority to enforce by judicial action or otherwise the Authority's contractual and statutory rights to the delivery of water from the Plant. Section 3.6 No Additional Waiver Implied. No waiver or waivers of any breach or default (or any breaches or defaults) by either party hereto of any term, covenant, condition, or liability hereunder or of performance by the other party of any duty or obligation hereunder shall be deemed a waiver thereof in the future, nor shall any such waiver or waivers be deemed or construed to be waiver thereof in the future, nor shall any such waiver or waivers be deemed or construed to be a waiver of subsequent breaches or defaults of any kind, character, or description, under any circumstances. Section 3.7 Addresses and Notice. Unless otherwise provided in this Water Supply Contract, any notice, communication, request, reply or advise (herein severally and collectively, for convenience, called "Notice") herein provided or permitted.to be given, made, or accepted by either party to the other must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram, when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this Notice given in any other manner shall be effective only if and when received by the party to be notified. For the purposes of notice, the addresses of the parties shall, until changed as hereinafter provided,be as follows: If to the City, to: City of Pearland Attn: City Manager 3519 Liberty Drive Pearland, Texas 77581 If to the Authority, to: Gulf Coast Water Authority Attn: General Manager 3630 Highway 1765 Texas City, Texas 77591 The parties shall have the right from time to time and at any time to change their respective addresses and shall have the right to specify as its address any other address by at least 15 days' prior written notice to the other party. Section 3.8 Modification. This Water Supply Contract shall be subject to change or modification at any time, but only in writing and with the mutual consent of the governing bodies of each of the parties hereto. Section 3.9 Assignability. This Water Supply Contract shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, but this Water Supply Contract shall not be assignable by the Authority without the prior written consent -9- of the City and shall not be assignable by the City without the prior written consent of the Authority. Any assignment without such prior written consent shall be void. Whenever reference is made in this Water Supply Contract to either of the parties hereto, such reference shall be deemed to include, wherever applicable, a reference to the permitted successors and assigns of such parties. Section 3.10 Severability. The provisions of this Contract are severable and if any provision or part of this Water Supply Contract or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Water Supply Contract and the application of such provision or part of this Water Supply Contract to other persons or circumstances shall not be affected thereby. Section 3.11 Venue; Choice of Law: This Contract is made and entered into in Galveston County, Texas, is performable in all particulars in said Galveston County,.Texas, shall be construed and enforced in accordance with the laws of the State of Texas and any cause of action hereunder shall be filed and maintained in a court of competent jurisdiction in Galveston County, Texas. Section 3.12 Cost Sharing Agreement (a) The following provisions are included in this Water Supply Contract for the purpose of providing for the arrangements with Houston to provide surface water to the City through the Authority, which are reflected in the Cost Sharing Agreement. (b) Approvals and Consent. It is understood and agreed that in those instances .in which the Cost Sharing Agreement requires or permits the written approval or written consent of the Participant Director as that term is defined and used in the Cost Sharing Agreement, such approval or consent shall be given only after the written approval and consent of appropriate representatives of the City and/or other appropriate Authority customer representatives. If one or more of the Authority customers of the Plant including the City give consent, but the City and other Authority customers of the Plant do not each give written approval and consent, the Authority shall provide such approval and consent as it determines in its discretion. (c) Payment of Costs. Under certain circumstances set out in the Cost Sharing Agreement, additions to or replacements or repairs for the Plant, or differences between estimated and actual costs may result in the obligation of the Authority to pay a share of costs incurred by Houston for such purposes. In addition, Article IV of the 2007 Amendment provides for refund of overpayment or additional payments of underpayment for the cost of the 200 MGD Project after formal acceptance of the completed. project by the Managing Participant City Council. Section 3.8 of the Cost Sharing Agreement provides for the possibility of a Major Replacement(as defined in the Cost Sharing Agreement for the Plant). Unless the City and the Authority agree otherwise, the City's share of any additional payment to Houston by the Authority under the Cost Sharing Agreement(other than the payment described in Article II of the 2007 Amendment and other than payments under Articles IV of the -10- 2007 Amendment or payments described in (d) below shall be paid to the Authority by the City in the following manner: (1) The City shall pay to the Authority in cash, not less than ten days prior to the date on which the Authority is obligated to make payment to Houston, an amount equal to the amount to be paid to Houston. The amount payable by the City shall be its proportionate share of the amount to be paid to Houston for costs attributable to production plus its proportionate share of the amount to be paid to Houston for costs attributable to pumping and distribution. Cost for production, pumping and distribution shall be allocated in accordance with Exhibit II "GCWA Pearland" of the 2007 Amendment. (2) If the payment from the Authority is not for a Major Replacement (as defined in the Cost Sharing Agreement) and if the Authority and the City do not agree on a payment plan to be submitted to Houston by a date that is 60 days prior to the time payment to Houston is due, then the City's Demand Allocation Factor shall be reduced to reflect the actual percentage of the 200 MGD Project in accordance with Article IV of the 2007 Amendment. (3) If the payment from the Authority to Houston is for a Major Replacement (as defined in the Cost Sharing Agreement), and if payment is not made paid to Houston on or before the day Houston issues notice to the contractor to proceed, then pursuant to Section 3.8 of the Cost Sharing Agreement the expense shall be treated as a capital expense with funding temporarily supplied by the Houston's short term borrowing to be reimbursed by the City with interest within a 270 day. (d) Purchase and sale of rights use of another's capacity. The Authority agrees that it will, at the request of the City, cooperate fully and act on behalf of the City to allow the City to exercise the rights to sell water under Section 5.16 of the Cost Sharing Agreement. (e) Reduction of supply. Under the circumstances set out in Section 3.9 of the Cost Sharing Agreement the supply of water to the Authority from the Plant may be reduced. In such event the Authority agrees that it will,at the City's request, request Houston to provide an alternate supply of water. If alternative supplies are not available in sufficient quantities to supply the City and the other Authority customers of the Plant at their respective Demand Allocation, the Authority or Houston shall be entitled to pro rate among the Authority's customers flow as required by Tex. Water Code § 11.039(a) and applicable law. (f) Credits refunds. Any pro rata share of credit or refund of capital costs from Houston to the Authority will be allocated to the City. (g) Expansion of Plant. The Authority has a right of first refusal under Section 3.7 of the Cost Sharing Agreement to acquire production capacity and/or pumping capacity in any expansion of the Plant undertaken by Houston. The Authority agrees that the City shall have a right of first refusal to participate in any such expansion, in proportion to the Authority's then current City's proportion of production capacity, pumping capacity, or distribution capacity rights under the Cost Sharing Agreement. Such right of first refusal shall be -11- exercisable by written notice to the Authority during the 150-day notice period provided for in Section 3.7 of the Cost Sharing Agreement. (h) Conflicts. In the event of any conflict between the provisions of this Water Supply Contract and the provisions of the Cost Sharing Agreement, the provisions of the Cost Sharing Agreement shall control. -12- IN WITNESS WHEREOF, the parties hereto have executed this Water Supply Contract in multiple counterparts, each of which shall be deemed to be an original, as of the date and year first written in this Water Supply Contract. CITY OF PEARLAND, TEXAS Mayor ATTEST: By: City Secretary GULF COAST WATER AUTHORITY President, Board of Directors ATTEST: By: Secretary-Treasurer, Board of Directors -13- EXHIBIT A COST SHARING AGREEMENT AI. Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended) A2. 2007 Amendment To Cost Sharing Agi—te-ement Southeast Water Purification Plant(Restated and Amended) • '5279 i Al COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT (RESTATED AND AMENDED) GULF COAST WATER AUTHORITY TABLE OF CONTENTS Page No. RECITALS . . . . . . .. ... .., „ . . . 1 ARTICLE 1 DEFINITIONS ., 2 1.1 "Annual O&M Budget" . . .. . ... .. . . . . 2 1.2 "Contingency Reserve" . . . ... . . .„ 2 L.3 "CWA" . ... .. . . . . .2 1.4 "Day" . 2 1.5 "Demand Allocation" .. .. .2 1.6 "Demand Allocation Factor" .. . 2 1.7 "Distribution Allocation" . ...,...,..,. .. ., 3 1.8 "Distribution Capacity" . .,. . . .. . . 3 1.9 "Distribution Allocation Factor" . . .,. . ,... 3 1.10 "Fiscal Year" .. ., 3 1.11 "Interest Rate" .. ,. . 3 1.12 "Major Replacement" ., ,. . . .„ 3 1.13 "Managing Participant Director" . . , „ . • , . „ • 3 1.14 "MGD" . . .. .. ,. „ ... .„ . . 3 1.15 "Modification Project Cost" . .. . . .„ . 3 1.16 "O&M" 4 1.17 "O&M Expense" . . . . ., . . . „ . . 4 1.18 "Operating Advisory Committee" . „ „ .. 4 1.19 "Other Projects" . .. 4 1.20 "Participants" .. . . ..,. . . „ •. ....,. . . .4 1.21 "Participant Director" . ,.5 1.22 "Peak Hour" . ,. . ,. 5 1.23 "Plant" . . ,. " . ., • 5 1.24 "Plant and Raw Water Recoupment Cost" . . ..,. S 1.25 "Point(s)of Delivery" ., .. . „ . •.. • . .•. . 5 1.26 "Production Capacity" 6 1.27 "Pumping Allocation" ., •• •„ .,. , . . 6 1.28 "Pumping Allocation Factor" • 6 1..29 "Pumping and Distribution Recoupment Cost" . „.... „ . . . . . 6 1.30 "Pumping Capacity" .,, . .. ..•. ...,. 6 1.31 "Raw Water Storage and Transmission Facilities" „ ., •. .6 U\WPFILESICONTRACIIEWB1I999\EWB 10975 RV I February 9 2000 L D File No 80-99146-01 1,32 "Substantial Completion" . . ... ... . . . . .7 1.33 "Treated Water Pumping Facilities" „ . . .. . . ,. .7 1.34 "Treated Water Transmission Facilities" ,. 8 1.35 "Trinity River Authority" . ..„., . . . .8 ARTICLE 2 CONSTRUCTION OF MODIFICATIONS TO THE PLANT TO PROVIDE 120 MGD FIRM CAPACITY . . . . . 9 2.1 In General . ... . • .9 2..2 Construction and Design-In General .„ 10 2.3 Review of the Construction of the Modification Project by Participants . . ... 10 2.4 Payment of Modification Project Cost and RecoupmentCosts by Participants .... .... 11 2.5 Completion of the Modification Project. . „. 13 2.6 Additional Pumping and Distribution Allocations 13 ARTICLE 3 OPERATION AND MAINTENANCE OF THE PLANT .. . . . ,... 15 3.1 In General . .. .. , 15 3..2 Relationship of Participants . . . .•., 15 3.3 Duties of Managing Participant-In General „ .. . .. . . 16 3.4 Annual O&M Budget . 16 3.5 Operating Advisory Committee 17 3.6 Demand and Pumping AIlocations ., ,.,. . 19 3.7 Other Projects .. . .. „ . .21 3.8 Major Replacements ., . „ . . . 22 3.9 Operation in the Event of,a Loss in Production or Pumping Capacity 22 3.10 Measurement of Water' . . „ . . .23 3.11 Facilities Between the Point of Delivery and Transmission Line . ..24 3.12 Calibration , . , • .. • •. 24 3.13 Estimated Water Consumption . . .. 25 3.14 Check Meters ,. . . ,. . • •• .26 3.15 Back Flow Pr•eviention. . ., . .,., 26 ARTICLE 4 OPERATION AND MAINTENANCE CHARGES ,. . . ..„ , . ., . . . .27 4..1 In General . „ .. . . . . . . . 27 4.2 Operation and Maintenance Charges .. . . ,. „ . .., .27 U:\WPFLES\CONTRACTIEWB\I9991E14B 10975 RV I February 9 2000 L.D File No 80-99146.01 11 4.3 O&M Expense Calculations ,. . . . . „ .. , . ... . .28 4.4 Contingency Reserve .... . .. ,... . . .. ., . . . ... . . ., . .30 4.5 Failure to Pay When Due —„ . . . . . . . . . . , . . .. .. . . ..30 ARTICLE 5 MISCELLANEOUS . 31 5.1 Insurance . . . „ . . . . . . .. .. . ... . . . . . 32 5.2 Title to All Water Produced by the Project . . ,. 32 5.3 Unit of'Measurement . .. .32 5.4 Water Quality .., 32 5.5 Water Conservation . .. 32 5.6 Regulatory Action 33 5.7 The Managing Participant to Keep Books 33 5.8 Assignments 33 5.9 Governing Law 34 5.10 Force Majeure . 34 5.11 No Additional Waiver Implied 35 5.12 Entire Agreement; Amendments 35 5.13 Notices . ,. • .. ,. 35 5.14 Parties in Interest .. .. 36 5.15 Dispute Resolution and Remedies . .36 5.16 Sale of Water ,. . . . . . . . . „ . 37 5.17 Authorship ... . 0 . . . . . .. .. ,. .. . . . . ,, . . . . ... . .. ... . . . . . . .. .. .37 5.18 Severability . . . . . ... . . .., . „ . . ..,. . . . .37 5..19 Contract Term . .. ,. . ... .. . . . . .. ., ., 37 5.20 No Partnership Created Hereby . . . .. 38 EXHIBITS A Map Showing Raw Water Storage and Transmission Facilities B. Map Showing Treated Water.Transmission Facilities C-1 Schedule of Actual and Estimated Costs for the Plant C-2 Schedule Showing Recoupment of Unrecovered Raw Water and Plant Costs C-3 Schedule Showing Recoupment of Prior Year CWA Debt Service D-1 Schedule Showing Actual Costs for Pumping and Distribution D-2 Schedule for Recoupment of Pumping and Distribution Costs E- Calculation of Annual Budget E LaPorte Calculation of Annual Budget,LaPorte Area Water Authority E Pasadena Calculation of Annual Budget,Pasadena F Calculation of Investment by Participant U:\WPF7L.ES\CONIRACIIEWB\19991EWB1[1975 RV1 February 9 2000 L D File No 80-991 46-01 111 PARTICIPANT EXHIBITS I. Maps of Points of Delivery IL Schedules of Demand,Pumping and Distribution Allocations and Costs } } _ U:1WPFTLES\CONTRACTIEWB\I999\E\B10975 RVI Fobruary 9 2000 L D File No 80-99146-01 iV COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT {RESTATED AND AMENDED) THIS COST SHARING AGREEMENT for the Southeast Water Purification Plant is made on the date of the City of Houston countersignature by and between the CITY OF HOUSTON ("Managing Participant")and GULF COAST WATER AUTHORITY(CITY OF GALVESTON, CITY OF LEAGUE CITY), CLEAR LAKE CITY WATER AUTHORITY (THE CITY OF NASSAU BAY), CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT, THE LAPORTE AREA WATER AUTHORITY, HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO.55,THE CITY OF PASADENA,THE CITY OF SOUTH HOUSTON,THE CITY OF WEBSTER, THE CITY OF FRIENDSWOOD, and BAYBROOK MUNICIPAL UTILITY DISTRICT NO. 1.("Participants"), RECITALS WHEREAS, the Participants entered into various Contracts with the Managing Participant for cost sharing in the construction and operation of the Southeast Water Purification Plant("PIant"), which had a production capacity of 80 million gallons of water per day(MGD); and WHEREAS, the Participants are agreeable to cost sharing in certain modifications to the Plant such that the production capacity will be increased to 120 MGD; WHEREAS, the Participants are agreeable to standardize their relationships to one another as well as the Managing Participant in one Agreement, which will supersede their existing agreements; and H:EWBIEWB 10975.RV f February 9,2000 I D File\o 80-99146-01 WHEREAS, a portion of capacity of the Plant presently owned by the Gulf Coast Water Authority on behalf of the City of Galveston is subject to pending sales to other Participants, and the Participants agree to incorporate this reallocation of capacity ownership into this Agreement; NOW, THEREFORE, the Participants agree as follows: ARTICLE 1 DEFINITIONS 1.1 "Annual O&M Budget" is defined in Section 3..4 and Exhibit "E,." 1_2 "Contingency Reserve" is defined in Section 4.5. 1.3 "CWA" means the Coastal Water Authority. I.4 "Day"means the period beginning 8:00 a.m. and ending at 8:00 a.m.the next calendar day or such 24 hour period agreeable to the Participant Director and the Managing Participant Director. 1.5 "Demand Allocation" means that portion of Production Capacity measured in MGD which a Participant is entitled to take during a day 1.6 "Demand Allocation Factor" is the percentage of the Production Capacity which a Participant is entitled to take during a day.. The Participants'Demand Allocation Factors are specified in the Participant Exhibits.. The sum of the Demand Allocation Factors of all the Participants to this Agreement at any given time, including the Managing Participant, shall always total one hundred percent(100%) February 9 2000 (WA.HILESlCONTRACT1EWB1l999EVVB10975 RV I I.._ : 1_D File No SO-99146-01 7 1.7 "Distribution Allocation" means that portion of the Distribution Capacity in the Treated Water Transmission Facilities measured in MGD which a Participant is allowed to take in an hourly period.. 1.8 "Distribution Capacity" means the maximum rate at which the Ireated Water Transmission Facilities can deliver. The Distribution Capacity equals 250 MGD,expressed as peak hour transmission rate. 1.9 "Distribution Allocation Factor"is the percentage of the Treated Water Transmission Facilities,which a Participant is entitled to taking during an hourly period 1.10 "Fiscal Year"means the Managing Participant's fiscal year,which currently runs from July 1 to June 30 f • 1.11 "Interest Rate"means the 20 City Municipal Bond Index at the beginning of the Fiscal Year. 1..12 "Major Replacement" means any single repair or replacement for the Plant requiring the expenditure of$100,000 or more. 1..13 "Managing Participant Director" means the Director of Managing Participant's Department of Public Works and Engineering. 1.14 "MGD" is an abbreviation for the flow rate of a million gallons of water per day. 1.15 "Modification Project Cost" includes: 1 Cost for facilities to increase the reliable capacity of the Plant to 120 MGD, including engineering,testing,construction,construction management, legal, February 9 2000 U:1 WPFILESNCONTRAC T'$W B%1999E W B 10975 RV 1 L.D File No 80-9914&01 3 • auditing expenses, contractor claims expenses and cost for services performed by employees of the Managing Participant.Reference Exhibit "C- l." .2 Costs for restriction devices and facilities to accommodate changes in codes and governmental regulations, including engineering, testing,construction, contractor claims expenses, construction management, legal, auditing expenses and the cost for services performed by employees of the Managing Participant. Reference Exhibit "C-1.." "Modification Project" is defined in Subsection 2..1.1. Costs that are borne in common by both 9['s .1 and .2,such as engineering and auditing expenses, will be apportioned between 9['s .1 and .2 based on actual construction costs for 9['s..1 and ..2.. 1.16 "O&M" is an abbreviation for operations and maintenance 1.17 "O&M Expense" is an amount of operation and maintenance expenses to be paid by each Participant computed as set forth in Section 4 3 herein. 1 18 "Operating Advisory Committee" means the committee so designated in accordance with Section 3.5. 1.19 "Other Projects" are defined in Section 3.7.. 1.20 "Participants" means all the entities designated in the Preamble including the Managing Participant. February 9 2000 UNWPF1LES1CONTRACTIEWB\19991EWS10975 RV 1 l D File No 80-99146-01 4 1..21 'Participant Director" means the General Manager of the Participant or any other person designated by Participant to act as the "Participant Director." Any notice by the Participant of an alternate designation or revocation of designation shall be in writing and delivered to all Participants pursuant to the notice provisions herein_ 122 "Peak Hour" is the 60 consecutive minute period during the day during which the maximum amount of flow is delivered.. 1 23 "Plant" means those water purification facilities Iocated south of Genoa-Red Bluff Road and north of Ellington Field (known as the "Southeast Water Purification Plant"), as well as the facilities referenced in Section 3.11.. "Plant" does not include any facilities owned by CWA or the Treated Water Transmission Facilities even though Participants have purchased capacity in these facilities.. See Exhibits "C-1" and C-_2 „ 1 24 "Plant and Raw Water Recoupment Cost"includes: .1 Unrecovered capital costs for the Managing Participant's initial construction of the Plant as shown in Exhibit "C-2." 2 CWA debt service costs for the 96" Raw Waterline as described in Exhibit "C-3." 1.25 "Point(s) of Delivery" shall mean the point(s) at which treated surface water produced by the Plant is supplied to the respective Participants at the location(s)of the flow control devices The Points of'Delivery are shown on the Participant Exhibits.. February 9 2000 U:\VPF1LES\CONT RACIIEWB11999\EW B 10975 RN,1 L D File No 8 0-9 9 1 46-0 1 5 1 26 "Production Capacity" means the maximum rate of production of water from the Plant. The Production Capacity of the Plant after Substantial Completion of construction of the Modification Project is 120 MGD expressed as a peak day production rate 1.27 "Pumping Allocation" means that portion of the Plant's pumping and treated water storage capacity measured in MGD,which a Participant is entitled to take during any hourly period.. 1 28 "Pumping Allocation Factor" is the percentage of the Plant's pumping and related treated water storage capacity which a Participant is entitled to take during an hourly period. The Participants'Pumping Allocation Factors are specified in the Participant Exhibits. 1.29 "Pumping and Distribution Recoupment Cost" includes .1 Capital costs for additional capacity in the Treated Water Pumping Facilities and the Ireated Water Transmission Facilities as shown in Exhibit"D-L" .2 Unrecovered capital costs for the Managing Participant's initial construction of the Treated Water Pumping Facilities and Treated Water Transmission Facilities as shown in Exhibit "D-2." 1.30 "Pumping Capacity" means the maximum rate of delivery of water from the Plant.. The initial Pumping Capacity equals 200 MGD,expressed as a peak hour pumping rate_ L31 "Raw Water Storage and Transmission Facilities" means the Lake Livingston Reservoir and the Trinity River Channel downstream from Lake Livingston to the CWA Pumping Station located on the Trinity River north of the Redmond Community and south of the City of Liberty, Texas. The CWA facilities that transport raw water from the Trinity River are: February 9 2000 U:1W PFILES1CONTRACTEWB119991EW010975 RV 1 L D File No 80-991.16-01 6 .1 The CWA Trinity River Pumping Station, the CWA canal, the Lynchburg Pumping Station and Reservoir, and the C.WA untreated water transmission Line A as shown Exhibit "A." 2 Line B as shown on Exhibit "A," which begins at the Lynchburg Pumping Station and follows Line A to its intersection with State Highway 225 and extends westward. .3 Line C as shown on Exhibit "A," which follows Line A and near the San Jacinto Monument extends westward to the East Water Purification Plant 4 Line Al as shown on Exhibit "A," which connects to Line A, with interconnection to Line A2,which feeds untreated water to the Plant. .5 Line A2 as shown on Exhibit "A," which parallels untreated water transmission line Al from the San Jancinto Monument to the Southeast Water Purification Plant.. 1,32 "Substantial Completion"is the date on which the Modification Project can be used far the production of treated water as determined by the Managing Participant Director. 1-3.3 "Treated Water Pumping Facilities"are those facilities Iocated on the site of the Plant which are downstream of the Treated Water Storage Facilities located on the site of the Plant and upstream of any and all transmission or distribution pipelines which connect the Plant to the Managing Participant's distribution and transmission pipeline system. Under no circumstances shall the term Ireated Water Pumping Facilities include any pipeline facilities belonging to the Managing Participant, whether transmission or distribution, which are located off-site of the 9 2000 Plant. U•1WPFlLES\CONTRACTIE�1'B\f9491E�ti'B10975 RV I February L D Fik No 80-99146-01 7 1.34 "Treated Water Transmission Facilities" are the pipeline facilities having a peak capacity of 250 MGD,constructed by the Managing Participant, which connect the Treated Water Pumping Facilities to the existing 42" line along Old Galveston Highway(State Highway 3)at Point C on Exhibit "B"and continue on to connect to other Managing Participant water lines The Treated Water Transmission Facilities line is depicted on Exhibit"B" as being the line from Point B through Point C to Point D. 1 35 "Trinity River Authority,"hereinafter referred to as "TRA," means that agency which controls that portion of the Raw Water Storage and Transmission Facilities located on the Trinity River, February 9 2000 L'-1WPFlLE51CONTRACT\EW811999\EWB 10975 RV I !.D File No 80-99 1 46-0 1 8 ARTICLE 2 CONSTRUCTION OF MODIFICATIONS TO THE PLANT TO PROVIDE 120 MGD FIRM CAPACITY 2..1 In General 2..1.1 It is agreed that each Participant has an equity ownership interest in the Plant's Pumping and Production Capacity in proportion to its capital investment from time to time in such Pumping and Production Capacity. The Participant Exhibits show the initial and projected ownership interests up to the time of completion of the Modification Project The Participants agree to the construction of certain rehabilitation and modifications to the Plant in order to ensure the Plant can provide the 120 MGD firm capacity of potable water for the Participants ("Modification Project") The Participants also recognize that the Managing Participant did not recover certain costs for(1)the Plant and Raw Water Iransmission Facilities and(2)Distribution and Pumping Facilities. 2 1.2 In order to pay for the cost of the Modification Project and obtain the 120 MGD firm production capacity, (1) each of the Participants agrees to pay its pro rata share of Modification Project Cost and(2) each Participant (except the Managing Participant) agrees to pay the Plant and Raw Water Recoupment Cost. Those Participants desiring an increase in Pumping and Distribution Allocation Factors shall pay the Pumping and Distribution Recoupment Cost. The Participant Exhibits show the allocation of such costs for each Participant. It is anticipated that all of the City of Galveston's beneficial interest in the Plant, which is held in the name of the Gulf Coast Water Authority,will be sold to other Participants prior to the date of operation of'the Modification Project and the City of Galveston will accrue no benefit from the Modification Project. Thus, each of the Li:\WPFFLESICONT RAC TNEWEA19991E9.810975 RV1 February9 2000 L D File No SO-99146-01 9 Participant purchasers of the City of Galveston's beneficial interest in the Plant shall pay to the Managing Participant its pro rata share of the costs described in this Section 2.1.2 as if such transfer had already occurred on the effective date of this Agreement.. Each such Participant's interest before and after the transfer is described in its Participant's Exhibit.. Notwithstanding the aforesaid, the Gulf Coast Water Authority, acting on behalf of the City of Galveston and the City of League City, shall have all other obligations and rights under this Agreement corresponding to its pro rata ownership interest in the Plant from time to time. 2.2 Construction and Design-In General The Participants approve of the "City of Houston Southeast Water Purification Plant Immediate Firm Capacity Improvements" report, prepared by Camp Dresser& McKee, Inc. and incorporated herein by reference. The Managing Participant shall manage the design and construction of the Modification Project. 2.3 Review of'the Construction of the Modification Project by Participants 2 3.1 During all working hours of the construction period, the Participant Directors and anyone authorized by such Directors shall have access to the Plant premises and may inspect or review the Plant and all engineering specifications and documents related to the Plant. 2.3.2 The Managing Participant shall give all other Participants an opportunity to review any changes in the design or specifications of the Modification Project. CI:\W PFSLES CONTRACTIEW B1I999\EW B 10975 R VI February 9 2000 L D File No 80-99146-01 10 2 4 Payment of Modification Project Cost and Recoupment Costs 2 4 1 After bids have been received but prior to contract award for the Modification Project and upon notice to Participants, Participants shall pay the Managing Participant the estimated cost of their pro rata shares of the Modification Project Cost,as well as their allocated Recoupment Costs Participants'respective Pumping, Demand and Distribution Allocation Factors and estimates for the Modification Project Costs are shown on Participant Exhibits, together with allocated Recoupment Costs.. Participants shall have the option of paying Modification Project Costs through an escrow account payable monthly for actual costs based on written demand from the Managing Participant Director. • • In the event a Participant is unable to make payment during this'period because its financing has not yet closed, the Managing Participant Director on a case lIy case basis may grant the Participant a time extension to a date no later than the first month of the Participant's fiscal year beginning after the Managing Participant's Council Award of the construction contract for the Modification Project. If any such extension is given, Participant shall pay the Managing Participant interest for deferral of the principal amount at the Interest Rate. In the event bids exceed by 20% the estimated Modification Project Costs shown herein, the Participant Directors will confer with the Managing Participant Director concerning disposition of bids and any Participant (except the Managing Participant) will have the right to withdraw from participation in the Modification Project. February 9 2000 U:1WPFTLES\CONTRACT\EWB119991EWS 10975 RV 1 D File No 50-99Ia6.01 • 11 • 2.4.1 Participants' contributions for the Modification Project Costs shall be kept by the Managing Participant in an account with interest accruing to the benefit of each Participant Funds from the account may be spent by the Managing Participant only for Modification Project Cost.. 2.4 2 Within ninety (90) days of the formal acceptance of the completed construction of the Modification Project by the Managing Participant City Council, the Managing Participant Director shall cause an accounting to be made of the Modification Project Cost.. 2.4.3 The Managing Participant shall engage its then-current independent certified public accounting firm to audit the Managing Participant's accounting.. As soon as the firm has completed the audit, the Managing Participant shall submit the audited accounting to the Participants. 24.4 The accounting shall state the difference between the estimated Modification Project Cost paid by the Participants, and the actual Modification Project Cost. 2.4 5 If the Modification Project Cost,as determined by the audited accounting,is less than the estimated Plant Modification Cost, resulting in an overpayment by the Participants of their pro rata.shares, the Managing Participant shall refund such difference with interest accrued, at the Interest Rate, to each Participant within ninety(90)days of the date of the receipt of the accounting by Participants.. 2 4 6 If the Plant Modification Cost, as determined by the accounting, is more than the estimated Modification Project Cost paid by the Participants,resulting in an underpayment by the Participants of their pro rata shares, the Participants shall pay such difference with interest February 9 2000 U:\WPFILES\CONTRACT\EWB\1999\EWa 10975 RV L.D File No S0-9914b-0I 12 determined at the Interest Rate to the Managing Participant within ninety(90)days of the date of the receipt of the accounting by the Participants 2.4.7 If a Participant does not pay its underpayment within such ninety(90)day period, the Participant's Demand Allocation Factor shall be reduced to reflect the actual percentage of Modification Project Cost paid by the Participant. 2 5 Completion of the Modification Project 2.5..1 When the Managing Participant Director gives thr: construction contractor notice of Substantial Completion for the Modification Project, the Managing Participant shall notify each Participant Director and designate a day for the initial operation of Plant at 120 MGD firm capacity.. 2.5.2 The Managing Participant shall provide each Participant full access to the Plant and to the books and records of the Modification Project, including all engineering reports, design specifications, change orders, correspondence, plant accounts, construction plan accounts or any other written document or instrument associated with or pertaining to the construction of the Modification Project 2.6 Additional Pumping and Distribution Allocations Certain Participants are requesting additional Pumping and Distribution Allocations as shown in the Participant Exhibits. The Pumping and Distribution Allocation Factors for these Participants will be adjusted upon payment to the Managing Participant of the respective amounts shown in the Participant Exhibits. February 9 2000 UAWPFILESICONTRACTIEWB1I999\EW81097i RVi L D File No SO-991 I6-01 I3 The Managing Participant Director is authorized to sell as available Pumping and Distribution Capacity to Participants, • February 9 2000 U:1WPF1LES\CONFRACIAEWB11999\EWBI0975 RV1 L.D File No 30-99146-01 14 ARTICLE 3 OPERATION AND MAINTENANCE OF THE PLANT 3.1 In General 3.1.1 The Participants, as co-owners of the Plant, understand that, except as otherwise s ecified herein,the Managing Participant will serve as managing owner for construction at the Plant P as well as for the maintenance and operation of the Plant and shall have charge of its business and sr:eral conduct.. (The equity ownership for each Participant is set forth in Participant's Exhibit II) g 3.1 2 The Participants shall have an interest in the conduct, affairs and decisions of the in onion to the Participant's capital contribution.. The Participants shall have the authority Plant prop to enter the Plant premises upon proper identification provided to Plant security personnel. 3.1..3 The Participants are willing to make capital contributions and payment of O&M partici ant as managing owner agrees Expenses as specified herein on the basis that the Managing P to use its best efforts to assure proper construction, operation and maintenance of the Plant and its str uctures,equipment and facilities, and proper conduct of all employees, agents or contractors,to pay debts when due and to obey all applicable federal, state or local regulations.. 3.2 ionship of'Particiants 3.2 1 The relationship of the Participants is of a fiduciary character.. The Managing Participant is trustee with respect to the Participants, with respect to the operation of the Plant and specified herein. Each Participant shall act in the highest good faith toward care of all joint property s p the othe r in conducting the operation of the Plant as well as their respective duties under this • Revised U:\WPFII.ESICONTRACi1EWBU999\EWB 10973 RV l q File No 80.99146.01 15 Agreement. Each Participant is under obligation, on demand of the other, to render true and full information and performance of all matters affecting the Plant and its operations under the terms of this Agreement. 3.3 Duties of Managing Participant-In General 3.3.1 The Managing Participant shall keep and maintain an accurate accounting system based on accepted accounting standards that provides documentation of the costs of constructing and operating the Plant Such records shall be maintained-for a minimum period of five(5) years and as otherwise required by law.. All such documents and records shall be available to the Participants for inspection, copying or audit at reasonable times and places and upon reasonable notice. 3.3.2 The Managing Participant shall provide an adequate program to insure that the Plant is maintained in a state of repair in a cost-effective manner, including a five (5) year Capital Improvement Program, which shall be updated annually, and subject to review by the Participants. 3.3.3 The Managing Participant shall employ and supervise employees,agents,consultants and contractors connected with the Plant in a cost-effective manner by employing only those that are reasonably necessary for proper operation and maintenance of the Plant. 3.4 Annual O&M Budget The Managing Participant shall submit for review to all Participants, not later than sixty(60) days prior to the beginning of the Managing Participant's fiscal year; an estimated Annual Budget consisting of various departmental components that constitute the O&M expenditures. The components are described in greater detail in Exhibits "E.," Exhibit "E Pasadena" and Exhibit "E February 9 2000 LMWPflLES\CONTRACT\EWB11999\EWBI0975 RV L D File No.80-99146.01 16 LaPorte Area Water Authority." The estimated Plant production will also be provided, along with the breakdown of the production per Participant.. The estimated Annual Budget and the estimated Plant production will be used to calculate the annual estimated cost per thousand gallons for the ensuing fiscal year. The final Annual Budget will be submitted to the Participants when the Managing Participant's City Council approves its yearly budget. 3.5 Operating Advisory Committee 3.5.1 To facilitate the review and approval rights set out in this Agreement, the Managing Participant will provide for the Operating Advisory Committee to include all Participants The Operating Advisory Committee shall be composed of Participant Directors or their designees, including the Managing Participant.. The chair of the Operating Advisory Committee shall be elected each Fiscal Year by the weighted majority of the Participants. "Weighting" shall be based on total investment of each Participant, including Production Allocation, Pumping Allocation and Distribution Allocation. (Reference Exhibit"F"for anticipated investments for each Participant after completion of the Modification Project.) 3.5.2 The Operating Advisory Committee shall have access at all reasonable times to the books,records and accounts pertaining to the Plant. The Managing Participant agrees to solicit the advice and counsel of the members of the Operating Advisory Committee with regard to the operation,maintenance and expansion of the Plant and each member shall be given full opportunity from time to time to express his or her views regarding such matters February 9 2000 uwip us‘cONTRACiIE«811999\Ew610975 RV 1 L.D File No 80-99146-01 17 3.5 3 Except in the case of emergency repairs required by the Plant, the Managing Participant shall include members of the Operating Advisory Committee in the development of any Request for Qualifications, Request for Proposals, and Invitation to Bids that lead to contracts for which the Managing Participant intends to seek reimbursement. The Managing Participant shall provide the Operating Advisory Committee the proposed scope of services,qualifications,costs and other information submitted by the responding contractors or consultants. Before selection of a consultant, the Operating Advisory Committee may appoint two or more members to sit on the selection committee, who will have no authority to provide scoring for the evaluation matrix or otherwise vote for selection of the consultant.. The selected Operating Advisory Committee members may convey information pertaining to the selection to the Operating Advisory Committee. All _ • Participants recognize that information obtained from review of proposals is CONFIDENTIAL and agree to maintain such information as confidential such that no proposer is given a competitive advantage by disclosure of the information, and no trade secret or other confidential proposal information is disclosed to unauthorized persons The Managing Participant Directot shall seek the counsel and advice of the Operating Advisory Committee regarding the scope of service and an assessment of the costs and qualifications of the proposers or bidders prior to submittal to the Managing Participants governing body. 3 5 4 Each Participant Director (or designee) shall have the right to attend meetings between the Managing Participant and contractors or consultants regarding the Modification Project and other major service or construction activities for the Plant. The Managing Participant shall use February 9 2000 li:\W PFILE5\C0N'SRt\C11E WB\19991EW810975 RV I L D File No 80.99146-01 18 its best efforts to provide Participants advance notification for the meetings through the Operating Advisory Committee or other means reasonably available. 3.6 Demand and Pumping Allocations 3.6.1 the Demand, Pumping and Distribution Allocations of Capacity are described on each Participant's Exhibit. The sum of all Participant Factors for Demand,Pumping and Distribution Capacities must equal 100%for each Capacity. the Managing Participant shall deliver water from the Plant to the Participants at pressure meeting the requirements of state law at their respective Points of Delivery. Subject to Section 3.6 5, no Participant (including the Managing Participant) may take water from the Plant that exceeds the Production Capacity of the Plant multiplied by the Participant's then-current Demand Allocation Factor (expressed as a decimal), nor may such Participant take water from the Plant at a rate which exceeds the Pumping and Distribution Capacity of the Plant multiplied by the Participant's then-current Pumping or Distribution Allocation Factor (expressed as a decimal). The Managing Participant shall monitor and control the amounts of water and the rates at which water is taken by the other Participants. The monitoring and control measures may include controls,valves and related appurtenances, which shall be set to restrict instantaneous flows to equal the Participant's Pumping Allocation.. 3.6 2 The Participants recognize that it is not feasible for the Managing Participant to meter water delivered to it from the Plant, because of multiple points of connection.. Hence, all Participants (including the Managing Participant) agree that control and measurement of water for the Managing Participant will be as follows: February 9 2000 U_\W PHLES\CONTRACTIE W B\1 9991E W B 10975 RV I L.D Fik No 9 0-99 146-0 1 19 3 6.3 Flow measurement for the Managing Participant will be generally calculated by subtracting the total flow to the other Participants from the total production of the Plant The Managing Participant agrees to operate its water transmission system such that the water it takes (measured as provided herein) is within its Demand, Pumping, and Distribution Allocations by restricting flow through valves or reallocating water flow from its East Water Purification Plant. 3.6.4 In the event another Participant cannot obtain water from the Plant at the pressure required herein (as measured upstream of the Participant's meter), such Participant may deliver notice to the Managing Participant,who shall provide it best efforts to increase pressure to the Point of Delivery by increasing the production of the Plant or diverting water from the East Water Purification Plant, restricting the internal valves in its own system, removing a force majeure or other hindrance that may be causing the low pressure,and restricting Participants that may be taking more water than allowed under this Agreement as provided in Subsection 3..6..1. The Managing Participant may also restrict flow as necessary in emergency situations (fires, major leaks, etc..) or when the purchased distribution capacity is exceeded by actual flows.. 3 6..5 Once the hydraulics of the Plant and water distribution system are better known and subject to the acquisition of any necessary flow monitoring and control facilities,all members of the Operating Advisory Committee by unanimous vote may adopt procedures that will allow unused Demand, Pumping and/or Distribution Capacity to be used in common by the Participants on a temporary basis. (Permanent redistribution of capacity is subject to the assignment requirements of Section 5 8) u Fcbrvary 9 2000 :1wPFlLEs1CONT R.�C-[1Ew8119991Ew810975 RV 1 L.D Fik No SO-99146.0t 20 3.7 Other Projects • If the Managing Participant undertakes additional expansions of the Plant ("Other Projects"), any Participant shall have the right to purchase additional Demand, Pumping and/or Distribution Allocations as such Participant desires out of such expansion by paying Managing Participant its pro-rata share of the cost for such expansion as well as unreimbursed original capital costs (if any) as shown in Exhibits "C-.2," "C-3" and "D-2," and executing an amendment to this Agreement affirming Participant's obligation to make payment for construction of the Other Project and the Managing Participant's obligation to construct the expansion and operate the same generally as provided herein for the Plant, Provided, however, in the event the total additional Demand, Pumping and/or Distribution Allocations requested by the Participants is greater than the proposed expansion,then each Participant shall have the option to take a percentage share of the Demand,Pumping and/or Distribution Allocation in the expansion at least equal to its then existing Demand,Pumping and/or Distribution Allocation Factor. This option must be exercised by notice to the Managing Participant during the 150 day notice period described below.. The Managing Participant shall give 150 days' advance written notice to Participants of any proposed expansion of the Plant. At any time during the 150-day notice period, any Participant desiring to purchase capacity in the expansion must give the Managing Participant written notice of intent to purchase additional Demand, Pumping and/or Distribution Capacity in such expansion.. The Managing Participant and Participants agree,in making any such amendment,to act timely and in good faith in order to permit an orderly enlargement or expansion of the Plant for the lowest cost reasonably obtainable without causing undue delay. the Managing Participant reserves the right to charge its standard rates for untreated water for water produced by Other Projects in lieu of the raw water component of the O&M Expense. Revised U:\WPRLES\CONiRAC7\EWB\19991EWB 10975 RV I L D file No S0-99146-01 21 3.8 Major Replacements The Managing Participant shall perform such Major Replacements as necessary for the operation and maintenance of the Plant and to supply water to the Participants. Plans and specifications (if applicable) f'or such Major Replacements shall be prepared by the Managing Participant and submitted to the Operating Advisory Committee for review. Each Participant shall pay its pro rata share of the cost of any such work based on the following.. For Major Replacements costing less than or equal to $500,000, the expense shall be treated as an O&M Expense and billed according to the ordinary O&M Expense billing procedure. For purposes of Major Replacements costing in excess of $500,000, the expense shall be treated as a capital expense, with funding temporarily supplied by the Managing Participant's short term borrowing to be reimbursed by the Participants with interest within a 270-day repayment period that runs from the date of notice to proceed to the contractor.. Such Major Replacements must be paid by the Participants in the ratio of their respective Demand,Pumping or Distribution Allocation Factors,as applicable. A Participant may prepay its prorated share of a Major Replacement costing in excess of$500,000 without penalty. A Participant shall never be required to pay for portions of replacements,additions or transmission facilities that provide capacity or water solely to other Participants. 3 9 O eration in the Event of a Loss in Production or.Pum ina Ca acit If production of water from the Plant is lost or substantially reduced, any Participant may request the Managing Participant Director to provide interim alternative water supply service. The cost of such interim alternative water service shall be the total usage by the Participant(in thousands of gallons) times the current budgeted O&M Expense (computed on the basis of thousand gallon units). Provided, however, if the Participant takes water from the alternate source for a period of U February 9 _0(X> .\WPFILES\CONfRAc7\EWB\1999\EWB10975 RV I L D File No 8099146-0I 22 • time longer than one hundred eighty(180) days, operation and maintenance expenses shall be based on the Managing Participant's_contract treated water rate.. If alternate supplies are not available in sufficient quantities to supply the Participants water at their respective Demand Allocations, Participants agree that Managing Participant shall reduce the flow to all Participants pro-rata as required by Tex..Water Code § 11.039(a).. 3.10 Measurement of Water Managing Participant will maintain and operate at the Points of' Delivery, measuring equipment capable of measuring accurately all of the water to be produced by the Plant and delivered to the Participants. The measuring equipment will include telemetry devices capable of transmitting data (rate of flow, pressure, etc.) to the Managing Participant. Participants may monitor the telemetry data through access facilities approved by the Managing Participant Director. Each Participant shall have access thereto at all reasonable times for inspection and examination. The reading, calibration and adjustment of such measuring equipment shall be performed by the Managing Participant and entered upon proper books or records to be maintained by the Managing Participant Upon request, Participant may have access to such books or records during reasonable business hours. Such books or records shall be kept by the Managing Participant for at least five (5) years February 9 I000 UAW PFILES\CONTRACr1EW S11999\EW810975 RV I L.D File No 80.99146-01 23 3.11 Facilities between Point of Delivery and Transmission Line With respect to any water conveyance facilities located between a Participant's Point of Delivery and connection to the Managing Participant's transmission lines (except backflow prevention devices), the Participant agrees: .1 That it shall not permit any tap to be made to such facilities; ..2 That all such facilities, together with the measurement equipment, flow control devices and related appurtenances, shall be and remain part of the Plant; .3 Ihat it shall take all responsible steps to prevent leaks or discharges from such facilities and shall not suffer, permit, cause or allow any water to be taken or used from such facilities, except through the meter equipment; and 4 That the Managing Participant shall make the repair and charge the Participants for the cost of maintaining the line to the Points of Delivery as well as the costs of maintaining the meters, flow control devices, and related appurtenances. These costs are included in the 0 &M Expense as defined herein.. 3..12 Calibration Not less than once in each year of operation, the Managing Participant shall calibrate the measuring equipment of each Participant in the presence of a representative of the Participant Additional calibrations shall be made by the Managing Participant if requested in writing by the February 9 2000 UAWPflIES1CONTRAC11EWB119991EW010975 RV! L..D File No 80.99146 01 24 Participant Director. Provided, however, if a Participant requests more than one (1)inspection of the measuring equipment in any one (1)calendar year, the Participant shall bear the total cost of any additional inspections if the measuring equipment is found to be operating correctly. the Managing Participant and such Participant may jointly observe any adjustments which are made to the measuring equipment, if any adjustments are found to be necessary 3..13 Estimated Water Consumption Should the test of:the measuring equipment in question show that the equipment registers either more than 102% or less than 95% of the water delivered for a given flow rate, the total quantity of water delivered to Participant 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 manufacturer'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 the Managing Participant with accurate measuring equipment that is tested before it is placed in service. This 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 120 days, whichever is shorter. As used in this paragraph, the expression "given rate of flow" means one of'the following flow rates. The Managing Participant Director shall choose the "given rate of flow" based on the particular meter installation and consumption f'or each calibration or test: February 9 2000 u-`W PFILES\COIv1 RACI1EW B\1999\EW B 10975 R VI L D File No 80-99146-01 25 1 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 range, as reflected by the flow recording devices; or .3 AWWA-specified test flow rates for that size and type of meter.. • 3.14 Check Meters Participants may,at their option and expense,install and operate check meters,but all official measurements of water shall be made by the Managing Participant's measuring equipment,except in cases of specific written consent to the contrary by the Managing Participant Director. Check meters must be installed in such a manner that they do not interfere with the accuracy of the measuring equipment at the Point of Delivery.. 3.15 Back flow Prevention Each Participant(except the Managing Participant)shall install and maintain an air gap or back flow prevention assemblies downstream from its Point of Delivery as required by the Managing Participant Director Participants must demonstrate that the back flow prevention assemblies successfully pass testing once each calendar year. Testers must be accredited by the Texas Natural Resource Conservation Commission or other state regulatory authority having jurisdiction. February 9 2000 IJAWPF1LESICONTRAC ilE WB119991EW B 10975 R V i 1..D File No 80-99146-01 26 ARTICLE 4 OPERATION AND MAINTENANCE CHARGES 4 1 In General It is expressly understood by the Participants to this Agreement that the Participants shall directly reimburse the Managing Participant on a periodic basis for the expenses incurred in producing and pumping the water delivered to the Participants.. Each Participant pledges to enact rates and fees for its customers sufficient to pay the O&M Expenses.. 4.2 Operation and Maintenance Charges 4.2.1 Each Participant shall pay O&M Expenses in arrears monthly at the rate per thousand gallons established in the then-current Annual Budget established under Section 3..4 and Exhibits "E," "E Pasadena" and "E LaPorte Area Water Authority," plus applicable costs for any shared debt service and transmission maintenance costs.. 4 2 2 The Managing Participant will bill each Participant on or about the tenth(10th) day of the month at the rates calculated as provided herein.. Each quarter, the Managing Participant shall prepare a cost accounting of the O&M Expenses that shows the actual O&M Expenses for each Participant as well as the amount of O&M Expenses paid by the Participant The accounting is for the purpose of information only, except the final yearly accounting described in Subsection 4 2.3.. 4.2.3 Within 180 days of the close of the Managing Participant's fiscal year, the Managing Participant shall prepare an accounting of the O&M Expenses. The Managing February 9 1000 UAW PFILES\CONTRACIIEWB\19991EWB109'75 RV1 L D File No 80-99146-0I 27 Participant shall engage its then-current independent certified public accounting firm to audit the accounting of costs. As soon as the firm has completed the audit, the Managing Participant shall submit the audited accounting to the Participants. The Managing Participant and Participants agree to "true-up" the previous payments made for services during the fiscal year such that each Participant who has underpaid will make timely payment of all O&M Expenses owed in the next monthly billing following the audit, and the Managing Participant agrees to give credit to each Participant who has overpaid O&M Expense for the fiscal year, such credit to be given in the monthly billing following the audit. 4.2,4 The Managing Participant agrees to provide the independent auditor all expense, meter readings and cost data required for the audit, including any documents or records available to Participants under this Agreement.. 4.2.5 The audit must include an itemization for each Participant of'all costs and meter recordings used to compute the O&M Expenses. 43 O&M Expense Calculations For the purposes of this Agreement the yearly O&M Expense for each Participant, except the City of Pasadena and the LaPorte Area Water Authority, is computed according to the following formula below. (Pasadena's O&M Expense is the same as below except replace Exhibit "E" with Exhibit "E Pasadena" and eliminate factor "G" in the formula;LaPorte's O&M Expense is the same as below except replace Exhibit "E"with Exhibit "E LaPorte Area Water Authority" and eliminate factor "G" in the formula.) Revised U:\WPFILES\CONIRACI1EW511999\EW810975 RV! L D File No 80-99146-01 28 O&M Expense (AXC.)x (1 +H) + (AXD) x (1 + H) +(IxF) +G B E "A" is the amount of water(in thousands of gallons)produced by the Plant and delivered to the Participant at its Point of Delivery during the given year "B" is the total amount(in thousands of gallons) of water produced by the Plant during the year. "C" is the total Managing Participant expenditures during the given year for the operation and maintenance of the Plant (including reasonable costs for services of Managing Participant employees as well as costs of fire and liability insurance), including expense items described in Section 3.4 and Exhibit "E," but excluding debt service on bonds, notes, and other evidence of indebtedness issued for capital purposes.. "D" is the total Managing Participant expenditures for the operation, maintenance and debt service for the Raw Water Storage and Transmission Facilities during the year, including payments to CWA and the Trinity River Authority, including expense items described in Section 3.4 and Exhibit "E,"but excluding any debt payments for facilities for which Participants have purchased capacity.. "E" is the total amount of water sold to the Managing Participant's water customers that is diverted from the Trinity River into Line A, as designated on Exhibit"A," during the given year As defined herein, "E" includes such raw water received at the Managing Participant water treatment plants receiving Trinity River water through Line A as well as the billable quantity (including take-or-pay amounts as applicable) taken by the Managing Participant's raw water customers, but excludes line loss by evaporation, leakage,etc.. "F" is the CWA Debt Service expense(allocated 93.11% to the Plant) for the 96- inch raw water pipeline leading to the Plant,times the then-current portion of the pipeline used (currently 126 MGD/240 MGD).. "G" is a pro rata share of the total Managing Participant expenditure for the repair of water transmission lines leading from the Plant to the Points of Delivery The Managing Participant expenditure shall be calculated by dividing the repair cost by the capacity of the effected line. The cost shall include reasonable costs for services of the Managing Participant employees but shall not include expenditures for the sale of bonds,notes and February 9 3000 IJAWPFILE51CONTRAC"IIEWBll999EWB10975 RVI L.D File No 80-99[46-01 29 other evidences of indebtedness issued to finance the capital cost of the transmission lines "H" is ..025 or such smaller number as necessary to fund the Contingency Reserve "I" is the Participant's Demand Allocation Factor 4.4 Contingency Reserve The Managing Participant will maintain a separate interest-bearing account to include all funds generated from O&M Expense billings to the Participants for a Contingency Reserve, which shall not exceed$1,000,000. The Managing Participant may use funds from the Contingency Reserve to reimburse itself for (1) emergency repairs, (2) Major Replacements costing in excess of$500,000 for which the Managing Participant has not been reimbursed within 270 days, or(3)difference between actual O&M Expenses incurred and O&M Expenses paid on basis of Annual Budget.. The Managing Participant shall provide an accounting for all expenditures from the Contingency Reserve with its monthly invoice to the Participants 4.5 Failure to Pay When Due Should a Participant fail to tender payment within thirty(30) days of invoice of any O&M Expense(or any part thereof) or should the Managing Participant fail to refund any overpayment to a Participant within thirty(30) days of the date due,interest thereon shall accrue at the rate of ten percent (10%)per annum from the date due until paid.. Revised UAWPFlLES1CONiRAC T WB11999\EW B 10975 R V I L.D Ale No 80-99 1 4 6-01 30 ARTICLE 5 MISCELLANEOUS 5.1 Insurance 5 1..1 The Managing Participant shall carry all risk fire and property coverage insurance on the Plant in an amount at least equal to the replacement cost of the portion of the Plant that is located above ground, with a standard deductible amount established by the insurance policy contract of the Managing Participant.. Premiums for the insurance policy shall be included in the O&M Expense and paid pro rata by the Participants as provided elsewhere in this Agreement.. (In the event of casualty covered by the insurance, the Managing Participant will bill Participants for payment of the deductible as a "Major Replacement" as provided elsewhere in this Agreement..) 5.1.2 If'the Plant shall be damaged or destroyed by fire or other casualty, the Managing Participant shall apply the proceeds from any fire or casualty insurance either (1) to repair such damage or destruction so as to restore the Plant as nearly as possible to the condition thereof immediately prior to such damage or destruction, or(2) to construct, install, or otherwise add to the Plant improvements substantially equal in value to the portion of the Plant which was damaged or destroyed,and of usefulness comparable to that destroyed or damaged such that the Production Capacity and the Pumping Capacity specified elsewhere herein are maintained. U:\WPFILES\CONTRACT EWB119995EWB10975 RV I February 9 2000 LO File No 30-.99 1 46-0 1 31 5 1 3 Copies of all insurance policies shall be forwarded to Participants upon request.. Insurance requirements may be adjusted by agreement of the Managing Participant Director and the Participant Directors. 5.1..4 The Managing Participant shall carry liability insurance in the amount of $5,000,000 occurrence/aggregate,including completed operations and pollution liability insurance All Participants will be carried as "additional insureds"on the policy. 5 2 Title to All Water Produced by the Project Title to all water produced by the Plant shall remain in the Managing Participant until the same shall pass through the Points of Delivery, Thereafter,Participants shall have exclusive title, control and possession thereof and be solely responsible therefor_ 5.3 Unit of Measurement The unit of measurement for water produced and delivered by the Plant shall be one thousand (1,000) gallons,U.S.Standard Liquid Measure. 5 4 Water Quality The potable water to be delivered hereunder shall meet the minimum water quality standards for human consumption prescribed by the Texas Natural Resource Conservation Commission and any other federal or state agency having jurisdiction.. 5..5 Water Conservation On or before the year from the effective date of this Agreement,each Participant shall approve and implement a water conservation program as required by the Texas Natural Resource Conservation Commission pursuant to 30 TAC § 288, as amended from time to time. February 9 3000 U:\WPFILES\CONTRACTEWB11999\EWH10975 RVI I.D File No S0-991 i6.01 32 5 6 Regulatory Action Participants recognize that the obligations of the Managing Participant to render operation and maintenance services as provided in this Agreement are subject to all present and future permits, rules or regulations issued or adopted from time to time by any regulatory authority having jurisdiction,and the Participants agree to cooperate in making such applications and in taking such actions as may be desirable to obtain compliance therewith.. 5 7 The Managing Participant to Keep Books The Managing Participant shall keep books,records, and all other documents related to the costs of operating the Plant for at least five (5) years and thereafter as required by law,and said books, records, and other documents shall be available upon reasonable notice for inspection, copying or audit by Participants.. 5 8 Assignments This Agreement shall bind and benefit the Participants and their legal successors; however, a Participant share(or part thereof) shall not be assignable (1) to a non-Participant unless all Participants are given notice and 30 days to match the offer of the non-Participant;(2) to a non-Participant except with the written approval of the Managing Participant Director; and (3) to any entity without first obtaining written consent of the Managing Participant Director. Written consent for(3) shall not be withheld unless the assignment would create a condition that would deprive any Participant from obtaining water from the Plant in accordance with the terms of this Agreement February 9 2000 UMVPFILESICONFRAC[1EWBU999NEW810975 RYl L Q Fife No 30-99146.01 33 5.9 Governing Law This Agreement shall in all respects be subject to the regulatory authority of the State of Texas and shall be interpreted, construed and governed by, and in accordance with the laws of the State of Texas.. 5.10 Force Majeure If a Participant is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, then the obligations of the Participant to the extent affected by such 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 to the extent provided, but for no Ionger period. Such cause, as far as possible. shall be remedied with all reasonable diligence.. The term "Force Majeure," as used herein, shall include, without • limitation of the generality thereof, acts of God, acts of the public enemy, orders of any kind of the government of the United States or of the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fire, hurricanes, storms, floods, washouts, droughts, arrests,restraints of government and people, civil disturbances,explosions, breakage or accidents to machinery, shortage or contamination of surface water, and any other inabilities of such Participants, whether similar to those enumerated or otherwise,which are not within the control of such Participant and which such Participant could not have avoided by the exercise of due diligence and care.. February 9 2000 LY1W PFILESICUNTRACTE W B119991EWB 10975 R V I L.D.File No 80-99146-01 34 5.11 No Additional Waiver Implied The failure of any Participant hereto to insist in any one or more instances upon performance of any of the terms, covenants or conditions of this Agreement, shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant or condition by any other Participant hereto,but the obligation of such other Participant with respect to such future performance shall continue in full force and effect. 5.12 Entire Agreement: Amendments Subject to Section 5.19 and existing assignment agreements between Participants,this instrument contains all the agreements made between the Participants and the Managing Participant with regard to equity ownership and operation of the Plant and is the full and final expression of such agreement.. Unless otherwise provided herein, the Agreement may only be amended by written instrument signed by all Participants.. 5.13 Notices 5.13..1 Until the Participants are otherwise notified in writing by the Managing Participant Director, the address of the Managing Participant is and shall be as follows: Director, Department of Public Works and Engineering City of Houston P.O.Box 1562 Houston, Texas 77251 5 13 2 Until the Managing Participant is otherwise notified in writing by a Participant, the address of such Participant is the address listed on the Participant Exhibits attached hereto. The Managing Participant will maintain a list of Participant addresses. February 9 2000 IP.WPF LES1CONTRAC'17ENVB119991EWB 10975 RV I L D Fie No 80-99146-01 35 5..13.3 All written notices, statements and payments required or permitted to be given under this Agreement shall be deemed given by the third day following the deposit in a United States Postal Service mailbox or receptacle, of certified or registered mail, return receipt requested, with proper postage affixed thereto, addressed as set forth above or at such other address as shall be designated by written notice. 5.14 Parties in Interest This Agreement shall be for the sole and exclusive benefit of the Participants and shall not be construed to confer any rights upon any other party. the Participants shall never be subject to any liability in damage to any customer of the others with rights hereunder for any failure to perform under this Agreement. 5.15 Dispute Resolution and Remedies 5.15.1 The Participants agree that if disputes arise regarding the terms or performance of this Agreement or any review or approval called for hereunder, the respective Participants or their Directors agree to meet and use their best efforts to resolve same. 5,15.2 It is not intended hereby to specify an exclusive remedy for any dispute or default, but all remedies existing at law or in equity, including specific performance, may be utilized by Participants and shall be cumulative.. Provided, however, as a necessary condition for declaration of default under this Agreement, the non-defaulting Participant shall give the defaulting Participant at least thirty(30) days' notice of default with the opportunity to cure during the notice period. February 9.2000 1 \WPF1LES\CON?RACT\EWB119991EWB10975 RVS L D File No BO-99146-01 36 • 5_16 Sale of Water The Participants hereto are free to sell water obtained pursuant to this Agreement as they may choose_ 5.17 Authorship It is agreed that this Agreement shall not be construed more strictly against any Participant because that Participant authored particular provisions of this Agreement. 5.18 Severaability If any part of this Agreement is for any reason found to be unenforceable against one or more Participants, all other parts remain enforceable unless the result materially prejudices the other Participants.. 5.19 Contract Term Except as provided herein, this Agreement shall be effective on the Date of Countersignature and shall be perpetual, except if the term is limited by law for a Participant (City Charter, Water Code) the term for such Participant shall be the longest allowed by law. Sections 4.2, 4..3, 4 4, and Exhibits "E," "E Pasadena" and "E LaPorte Area Water Authority" shall not take effect until July 1,2000, and Section 3.6 and the Demand Allocation changes (related to firm capacity) shall not take effect until the first month following Substantial Completion of the Modification Project.. Prior agreements between the Managing Participant and the other Participants will remain effective as applicable before these dates.. Ftbruary 4.2000 Ud9.'pF1LES\CONTRACREWBA19991EWB10975 RV I E D File No 80-99146-01 37 5.20 No Partnership Created Hereby The Participants agree that no partnership relationship or joint venture is created by this Agreement and that no Participant is made an agent or representative of the other for any purpose_ IN WITNESS WHEREOF,Participants have executed this Agreement in multiple copies, each of which shall be deemed to be an original, as of the date of countersignature by the City Controller of the Managing Participant. February 9 2000 U:\W PF1LES\C ONTRACT E W B1 I999\EW B 10975 RV I L D File No 80-99146-01 38 BAYBROOK MUNICIPAL UTILITY DISTRICT NO,, 1 ATTEST: ( ; . l(S1 l J \ i „ Secretary Pre ' t Board of Directors Board of Directors February 9 2000 (JAW PFlLEMCONTRACT E14B119991E14 B 10975 R4 1 L D File No 80-99 1 46-0 1 44 CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT ATTEST: Secretary Preside/It Board of Director Board of 'rectors Executed for and on behalf of the Clear Brook City Municipal Utility District pursuant to authority granted by Resolution No. . passed LTy- A 4)afro.. a copy of which is a[fached hereto for•reference • L.«PF1LES‘CONTRACTEwB11VgvNEV.B107;RV I L 0 F:e`o A-Qv 11ry-i)l 42 CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT Resolution Authorizing Officials of the District to Execute Cost Sharing Agreement The Board of Directors("Board")of Clear Brook City Municipal Utility District met and held a regular meeting on May 4, 2000, with a quorum of directors present, as follows: Bill Tones, President Jim B.. Bishop, Vice President Chris Clark, Assistant Secretary and the following absent: William L..H., Morgan, .Tr.,, Secretary Ralph A. Patterson, Assistant Secretary when the following business was transacted: The resolution set out below was introduced for consideration of the Board.. It was then duly moved and seconded that said resolution be adopted;and after due discussion said motion carried by the following vote: Ayes: All directors present Noes: None The resolution thus adopted is as follows: Whereas, the District will enter into the Restated and Amended Cost Sharing Agreement(the"Cost Sharing Agreement") with the City of Houston, et.. al, for the construction and operation of the Southeast Water Purification Plant; and Whereas,the City of'Houston requires a Board Resolution Authorizing the President and Secretary of the District to execute the Cost Sharing Agreement on behalf of the District 91 _>86049v1 ILW Therefore,it is resolved by the Board of Directors of said District, as follows: the President and the Secretary of the District are hereby authorized to execute the Cost Sharing Agreement for the Southeast Water Purification Plant on behalf of the District, and to do all other things necessary or proper in connection with said Cost Sharing Agreement as set forth therein. The President or Vice President is authorized to execute and the Secretary or Assistant Secretary to attest this resolution on behalf of'the board of directors and the District. Passed and ordered this May 4, 2000 BILL JONES President ATTEST: WILLIAM L.H.MORGAN, JR. Secretary (SEAL) 91f . .36049v1 II W I,the undersigned Secretary oftheBoard of Directors of Clear Brook City Municipal Utility District, hereby certify that the foregoing is a true and correct copy of the Resolution Authorizing Officials of the District to Execute Cost Sharing Agreement, adopted by said Board at its meeting of May 4, 2000, together with excerpts from the Board's minutes of that date showing the adoption thereof; the originals of which order and minutes are on file in-the minute book of the Board, in the District's office. I further certify that said meeting was open to the public, and that notice thereof was posted in compliance with the provisions of Iex.. Gov't Code Ann § 551,001 et seq Witness my hand and the official seal of said District, this fAll4) Qom /47 Secretary VIOL .J2 86044v1 IIW ATTEST: CLEAR LAKE CITY WATER AUTHORITY .- • ,-.... •.1 ...._ ,ip .'''igl -. - . . ii. / i..,,I. .1A) •-•' - 7-' ;V " .4- I• .j•It 1.,4,1-24'''f 1)7571,Jgdfit.'''." .."-' •-•,•;,:;2..„....:::." ,4.• 1 . ll,,,ttft,t::.1,.._ , v... r. ' . ..'5.- • k-, - _. i"' ' // Secretary ,...,-'" President 7) -. Board of Directors 4. Board of Directors ;...-.' c . • e 2 I AV,OFTLES 1 CONTRACTW,E 8\1999\EW B 1005 RV"I Fbniary 9 000 ID File No 80-99 I46-Cil 40 CITY OF FRIE.NDSWOOD, TEXAS By: ,zd(14( Mayor • . cuted for and on behalf of City pursuan authority granted by Council Ordrn e No j• passed , 19 4' a copy of which is attached o for reference • ATT S /S L: F ,) City Secretary APPROVED: 20„ef,n..) Director. Department of Public Works and Engineering APPROVED AS TO F O--RM: (044,1 JF� Assistant City Attorney • L.:11 PFILESICONTRACEVe B119991Ew B 1D97?RV I Feoruary 9 _(XX) T\ L D.Fil¢No.$O-9911E-01 47 Dnp Mayor ��j 1�7 n y� [*7�f /�y HAROLD L. WHITAKER F ...'t r.,. \4. City of F i nd lY oo C members • Donal A ' ' �� '44 % KITTEN BRIZENDINE r, -`> '"' 910 South Friendswood Drive JERRY ERICSSON ���"' ^ Fiendswood Texas 77546-4856 TRACY GOZA r KIM BRIZENDINE z! f (281) 996-3270 L.ARRYTAYL_OR MEL MEASEL.ES 3;yxA_ss Fax: (281)482-1634 City Manager RONAL D E.COX City Secretary STAIE OF' TEXAS DELORIS McKENZIE r.R.M.C. CITY OF FRIE.NDSWOOD )( GALVESTON/HARRIS COUNTIES )( • CERIIFICATION I,DELORIS MCKENZIE, CITY SECRETARY OF IHE CITY OF FRIENDS WOOD,DO HEREBY CERTIFY THAI THE ATTACHED TO BE A TRUE AND CORRECT EXCERPT FROM THE ORIGINAL MINUIE.S OF NOVEMBER 20,2000 THAT ARE ON FILE AND OF RECORD AI THE CIIY OF FRIENDSWOOD.. **MOTION WAS MADE BY COUNCILMEMBER KITTEN BRIZENDINE TO APPROVE 'THE CONSENT AGENDA,WHICH INCLUDED-"APPROVAL OF AMENDMENIS TO • THE CONTRACT WITH THE CITY OF HOUSION FOR THE SOUTH EAST WAIER PURIFICATION PLANK" SECONDED BY COUNCILMEMBER MEASELE.S_ MOTION APPROVED UNANIMOUSLY.. ATTE I: C DE ORIS MCKE IE, I C/CMC CITY SECRETARY CITY OF FRIENDSWOOD NOVEMBER 21, 2000 i, A2AA'' 2007 AMENDMENT TO COST SHARING AGREEMENT } SOUTHEAST WATER PURIFICATION PLANT (RESTATED AND AMENDED) • H:'EWB\SOUIHE DOC 9/19/2006 TABLE OF CONTENTS Page No. RECITALS 1 ARTICLE I DEFINITIONS • 2 ARTICLE II PAYMENT 5 ARTICLE III • CONSTRUCTION 6 ARTICLE IV MANAGEMENT AND ACCOUNTING FOR 200 MGD PROJECT COST 7 ARTICLE V SUBSTANTIAL COMPLETION 8 ARTICLE VI ACCESS TO PLANT AND RECORDS .,. 9 ARTICLE VII UNTREATED WATER COSTS; CERTAIN • AMENDMENTS REGARDING ANNUAL O&M BUDGET 9 ARTICLE VIII COSTS FOR WATER LINE UPGRADE OR REPLACEMENT 14 • • ARTICLE IX INSURANCE 15 ARTICLE X ENTIRE AGREEMENT 15 EXHIBITS Addendum to Operations and Maintenance for Southeast Water Purification Plant Cl Schedule of Actual and Estimated Costs for Plant H:1EWB\SOUTHE DOC 1 9/19/2006 C2 Calculation of Unrecovered Original Capital Costs C3 CWA Bond Debt Service Di Schedule of Actual Costs of Pumping/Distribution D2 Calculation of Unrecovered Capital Costs for Pumping/Distribution F Calculation of Total Investment by Participant Calculation of Total Gallons per Participant G Beamer Road and Related Transmission Allocation H (No Exhibit) I Untreated Water Facilities Outstanding Debt J Transmission Line Capacity Map PARTICIPANT EXHIBITS I Maps of Point of Delivery H Demand,Pumping and Distribution Allocations and Costs HABVMSOLI DIE DOC ii 9/19/2006 EXHIBIT A Cost Sharing Agreement • AMENDMENT TO COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT • (RESTATED AND AMENDED) THIS AMENDMENT TO THE COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT (RESTATED AND AMENDED) is made on the date of countersignature shown below by and between the CITY OF HOUSTON (herein "Managing Participant") and THE GULF COAST WATER AUTHORITY,THE CLEAR LAKE CITY WATER AUTHORITY, THE CITY OF NASSAU BAY, THE CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT, THE LAPORTE AREA WATER AUTHORITY, HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 55, THE CITY OF PASADENA, THE CITY OF SOUTH HOUSTON, THE CITY OF WEBSTER, THE CITY OF FRIENDSWOOD and BAYBROOK MUNICIPAL UTILITY DISTRICT NO. 1 (herein "Participants"). RECITALS WHEREAS, the Participants and the Managing Participant entered into various Contracts for cost sharing in the construction and operation of the Southeast Water Purification Plant("Plant"), which had the initial production capacity of 80 million gallons of water per day (MGD)during 1986-87; and x:Ewa\SOUTHE DOC 1 9/19/2006 • WIEEREAS, the Participants and the Managing Participant entered into the Cost Sharing Agreement, Southeast Water Purification Plant (Restated and Amended) (herein "Restated Agreement") on or about.Tune 22, 2001 to increase the production capacity of the Plant to 120 MGD; and WHEREAS, the Participants and the Managing Participant have agreed to share in the cost of a new modification of the Plant to increase its production capacity to 200 MGD and add certain enhancements to the Plant; and WHEREAS, the Participants have reviewed and approved the scope of the' Project described herein; NOW,THEREFORE,the parties agree as follows: ARTICLE I. • DEFINITIONS All definitions included in the Restated Agreement shall apply unless the context requires otherwise or in case the term is otherwise defined in this Amendment. "200 MGD Project" includes certain improvements to the Plant that will increase its Production Capacity to 200 MGD and the Plant's Pumping Capacity to 255 MOD. The "200. MGD Project" also includes certain upgrades for the Plant's existing facilities that will benefit the Participants, A summary of these improvements and estimated costs is attached as Exhibits "C1"and"DI"hereto. The 200 MGD Project is an "Other Project" as defined in Section.3'.7 of the Restated Agreement. "200 MGD Project Cost"includes: • a Costs for facilities to increase the reliable capacity of the Plant fiom•120 MGD to 200 MOD to benefit only the Participants sharing in the increased 80 MOD H:1Eva SOOTHE DOC 2 9/19/2006 capacity of the Plant, including engineering, testing, construction; equipment, legal services, contractor claims expenses, construction management, cost of services performed by the Managing Participant's employees, and auditing expenses.. (Reference Exhibit Cl "Firm 200 MOD" Columns, herein these expenses are"Firm 200 MOD Expenses"). . b. Costs for the upgrades to the facilities built to enhance the operation of the Plant for the benefit of all Participants, including engineering, testing, construction, equipment, legal services, contractor claims expenses, construction management, cost of services performed by Managing Participant's employees and auditing expenses.. (Reference Exhibit Cl columns labeled "Enhancements (existing 120 MGD capacity only)",herein those expenses are"Enhancement Expenses"). c. Cost for the additional 55 MGD high service pump station to benefit only the Participants sharing in the increased 80 MGD capacity of the Plant, including engineering, testing, construction, equipment, legal services, contractor claims expenses, construction management, cost of services performed by Managing Participant's employees and auditing expenses. Reference Exhibit D1, column "High Service Treated Water Pumping" with rows labeled "Cost per Gallon New Pump less Old Pump", "Incremental Cost-Original Capacity" and "Purchase of Original Capacity" with details shown in Exhibit D2,columns labeled"200 MGD Costs Purchased Capacity" and 'Increased $", herein these expenses are "Pump Station Expenses"). HAEV BISOUIHE DOC 3 9/19/2006 Costs that are borne in common by paragraphs a, b and c, such as engineering and auditing expenses, will be apportioned among paragraphs a, b and c based on actual construction costs fbr• work describe in paragraphs a,b and c "Plant Recoupment Cost" means certain unrecovered and redistributed capital costs for. the Managing Participant's initial construction of the Plant as shown on Exhibit Cl,row labeled "Additional Capital Allocations Recoupment" and columns labeled `Existing Facilities," and Exhibit C2, Treatment Plant (SEWPP), column labeled "Recoupment Increased.$" hereto. The Managing Participant affirms that Plant Recoupment Costs required under this Amendment are based on the accounting for the prior capital costs for the Plant and are final foi the Demand Allocation of each Participant as shown on the Participant Exhibits II. "Pumping and Distribution Recoupment Cost"includes: a Unrecovered capital costs for additional capacity in the Treated Water Pumping Facilities and the Treated Water Transmission Facilities are as shown on Exhibits "Dl" and "D2." The Treated Water Transmission Facility additional capacity capital costs are shown on Exhibit Dl in rows labeled as follows, with the capacity purchased specific to the area of service: "Cost per Gallon-Existing Pipeline(96"C to D and Beamer)"and C to D portion shown separately on Exhibit D2 in columns labeled `Balance of Distribution$(C to D)and New Allocation %" "Purchase of Original Capacity (Dist. `B to C")" and detail shown on Exhibit D2 in column labeled"Jun-00 Allocation$ (B to C)". H:'EWB\SOUIHE DOC 4 9/19/2006 The Treated Water Pumping Facility additional capacity capital costs are shown on Exhibit DI in row labeled as `Purchase of Original Capacity (Dist. "B to C")" and further detailed on Exhibit D2 in column labeled "200 mgd costs Purchased Capacity"_ b. Unrecovered capital costs for the Managing Participant's initial construction of the Treated Water Pumping Facilities as shown in Exhibit Dlcolumn labeled "High Service Treated Water Pumping" and row labeled "Incremental Cost- Original Capacity" with details shown in Exhibit D2.High Service Treated Water Pumping, column labeled"Increased$" c Unrecovered capital costs for construction of the Beamer Road transmission line as shown on Exhibit"Dl". The Managing Participant affirms that Plant Recoupment Costs and the Pumping and Distribution Recoupment Costs required under this Amendment are based on the accounting for the prior capital costs for the Plant and constitute all of the remaining unrecovered costs for the Plant and that there are no further unrecovered costs to be recovered from any of the Participants in the future other than those costs in Exhibit C2 in the column labeled "Balance of SEWPP"for treatment plant costs, those costs in Exhibit D2 in the column labeled `Balance of HS PS" for pumping costs, and any additional capacity purchased for distribution for the amount shown on Exhibit D2(B to C allocation is$.04660/gallon and C to D allocation is$0..0570lgallon) ARTICLE II. PAYMENT Participants agree to make payment to the Managing Participant in the amounts shown on Exhibit II, except payment for the 200 MGD Project Cost shall be based on the bid cost of the H:1EwB1 SOU 7HE DOc 5 9/19/2006 200 MGD Project plus a five percent construction contingency of the bid cost plus other non- construction cost items included in the definition of"200 MGD Project Cost?' After bids for the 200 MOD Project are opened and read, the Managing Participant shall provide each Participant an accounting and invoice for the payment, which shall be due within 90 days• of the Participant's receipt of such accounting. 'A summary of the investment dollars and Demand Allocation purchased per Participant is shown on Exhibit "F" Payments for Plant Recoupment Costs and Pumping and Distribution Recoupment Costs are firm as shown in Exhibit II. The Managing Participant shall use diligent efforts to obtain bids for construction of the 200 MOD Project-after execution of this Amendment by all Participants. At such time as the Managing Participant has secured sufficient financing for the 200 MGD Project from the Participants, it will award the construction contract and complete the 200 MGD Project. If the Managing Participant does not timely receive the funds necessary to construct the 200 MGD Project and the Project is canceled, then the Managing Participant shall promptly-refund all funds paid by the Participants to the Managing Participant for the 200 MGD Project Costs, plus interest thereon compounded quarterly at the Interest Rate. ARTICLE III. CONSTRUCTION During all working hours of the construction period, a Participant Director and anyone authorized by such Director shall have access to the Plant premises and may,inspect or review the Plant and all engineering specifications and documents related to the Plant. The Managing Participant shall present any change order(s) in the design, specifications or construction of the 200 MGD Project that exceed(s), cumulatively, the five percent construction contingency-to the Operating Advisory Committee for prior written approval Failure to •do so will result in the H:\EWBNSOUI7HE DOC 6 9/19/2006 change order not being included in the 200 MGD Project unless and until written approval is received from the Participants. Change orders caused under Force Majeure or acts of terror shall be excluded from this provision. ARTICLE IV. MANAGEMENT AND ACCOUNTING • FOR 200 MGD PROJECT COST • Each Participant's contribution fox' the 200 MGD Project Cost shall be kept by the Managing Participant in an account with interest accruing to the benefit of each Participant at the Interest Rate until it is spent for the 200 MGD Project Costs.. Funds from the account may be • spent by the Managing Participant only for 200 MGD Project Costs.. Within-90 days of'the formal acceptance of the completed construction of the 200 MGD • Project by the Managing Participant City Council, the Managing Participant Director shall cause an accounting to be made of the 200 MGD Project Cost. A copy of the accounting shall be delivered to each Participant within ten days after its completion_ Additionally, within 30 days after completion of the accounting, the Managing Participant shall engage an independent certified public accounting firm from a selection of no more than three prequalified firms selected by the Operating Advisory Committee to audit the Managing Participant's accounting. As soon as the firm has completed the audit, the Managing Participant shall submit the audit to all Participants.. the audit scope must be approved by the Operating Advisory Committee and, at a minimum, shall state the difference between the estimated 200 MGD Project Cost paid by each Participant, and each Participant's actual share of the 200 MGD Project Cost and must be in accordance with good accounting practices and principles. If a Participant's share of' the 200 MGD Project Cost, as determined by the audit, is less than the share paid by the Participant of H:1EWB1SOUIHE DOC 7 9/19/2006 the 200 MGD Project Cost, resulting in an overpayment by the Participant of.its. share,•the Managing Participant shall refund such difference with interest accrued, at the Interest Rate compounded quarterly from the date deposited to the date of payment, to.such Participant within 90 days of the date of the receipt of the audit, If a Participant's share of the 200 MGD Project Cost,as determined by the audit,is more than the share of the 200 MGD Project Cost paid by the Participant,resulting in an underpayment by such Participant of its share, the Participant shall pay such difference,with interest determined at the Interest Rate compounded quarterly from the date payment is required to the date of payment, to the Managing Participant within 90 days of the date of the receipt of the audit by the Participant.. Any of the Participants who disagree with the audit shall have the right to pay any amounts under protest and seek refunds,plus reasonable attorneys fees and court costs, in a court of appropriate jurisdiction or pursue any other available remedy at law or in equity.. If the Participant does not pay its underpayment within such 90 day period, the Managing Participant shall pay same and the Participant's Demand Allocation Factor shall be reduced, and the Managing Participant's Demand Allocation Factor shall be increased, to reflect the percentage deficit of the payment. The reduction in the Demand Allocation Factor shall be determined by dividing the amount owed by the amount previously paid, with the resulting percentage used to reduce the existing Demand Allocation Factor. • ARTICLE V. SUBSTANTIAL COMPLETION When the Managing Participant Director gives the construction contractor notice of Substantial Completion for the 200 MGD Project, the Managing Participant shall notify each H:\EWB1SOUTHE DOC 8 9/19/2006 Participant Director within ten business days thereafter and designate a day for the initial operation of Plant at 200 MGD firm capacity. • ARTICLE VI. ACCESS TO PLANT AND RECORDS The.Managing Participant shall provide the Participants full access to the Plant and to the books and records of the Plant, including the 200 MOD Project, during all regular working hours, including all engineering reports, design specifications, change orders, correspondence, plant accounts, construction plan accounts or any .other written document or instruction associated with or pertaining to the construction of the Plant and the 200 MGD Project. ARTICLE VII. UNTREATED WATER COSTS; CERTAIN AMENDMENTS REGARDING ANNUAL O&M BUDGET A. Participants that have increased their Demand Allocation (City of Friendswood, Clear Brook City Municipal Utility District, City of Pasadena, and Gulf Coast Water Authority) may pay the Managing Participant's standard contract rates for untreated water currently described in the City of Houston Code of Ordinances Section 47-85 as amended from time to time for"Other Project Water" produced by the 200 MGD Project (an "Other Project" is defined in Section 3.7 of the Restated Agreement) "Other Project Water" shall include all gallons in excess of 6022.5 million gallons per year taken by the Gulf Coast Water Authority, and all gallons in excess of 547.5 million gallons per year taken by the Clear Brook City Municipal Utility District, all gallons in excess of 8,577.5 million gallons per year taken by the City•of Pasadena and all gallons in excess of 2,190 million gallons per year taken by the City of Friendswood_ Payment H:\EwB\.SOUrns DOC 9 9/19/2006 of the Managing Participant's standard contract rates for untreated water shall be referenced herein as the"Other Projects Untreated Water Payment". Alternatively, each Participant that has increased its Demand Allocation may elect to pay an Existing Capital Charge, New Debt Service Expenses, and Untreated O&M.Expenses (as explained below), in lieu of making Other Projects Untreated Water Payments. Such payments shall be referenced herein as "Other Projects Alternative Untreated Water Payments". Each Participant that will be increasing its Demand Allocation must give the Managing Participant notice of its payment election in writing by the Participant within 2 months of the effective date of this Amendment. In the event no election is made by the Participant, the provisions for the Other Projects Alternative Untreated Water Payments shall apply. Payments for the Participants that have increased their Demand Allocations and certain changes to their O&M Expense(Section 4.3 and Exhibits E"and `B"Pasadena) are as follows: OTHER PROJECTS ALTERNATIVE UNTREATED WATER PAYMENTS One Time Raw Water Capital Cost Payment Existing Capital: (A2/D2 x C) Contribution (To be paid 60 days after notice from the Managing Participant for the first delivery of water from the Plant expansion.) Changes made to O&M Expenses under Restated Agreement New Debt Service Expenses: (A2/D: x E) (for fiscal year) (To be paid monthly for debt issued for new untreated water facilities.) • Untreated Water Same as provided in the Restated Agreement except O&M Expense: delete the `(A/E x D)x(1 +H)' term and the `(I X F.)' term but add the term `(A1/D1 x B)' x:\awMSOUTHs Doc 10 9/19/2006 (To be paid monthly beginning 30 days after delivery of water beginning on the date the Plant expansion•begins delivery of water.) These New Debt Service Expenses and Untreated Water 0 & M Expense shall be paid and administered in accordance with procedures applicable to 0 &.M Expense as provided in the Restated Agreement OTHER PROJECTS UNTREATED WATER PAYMENTS For Participants who have selected the Other Projects Untreated Water Payments, O&M Expenses under the Restated Agreement shall be charged for the Other Projects Water they take • by deleting the `(A/E x D) x (I + II)' term and the '(I x F)' term, but add the term `(A1 x R)' where R is the Managing Participants contract rate for untreated water. As used herein: "Al"is the amount of treated water taken by a Participant during a fiscal year in excess of its Demand Allocation under the Restated Agreement. "Az"is 3,650 million gallons for the Gulf Coast Water Authority,365 million gallons per year for the Clean Brook City Municipal Utility District, 6,022 5 million gallons per year for the City of Pasadena and 2,190 million gallons per year for the City of Friendswood_ "B" means all costs and expenses incurred by the Managing Participant (whether incurred by the Managing Participant through its own staff or by independent contractors)for the maintenance and operation of the untreated water facilities during the fiscal year, including, (i) chemicals, labor, power, testing, permits, insurance, and other related costs, necessary for the efficient maintenance and operation of the untreated water facilities as required under the • Restated Agreement and all applicable regulatory requirements and the preparation of costs of the annual audit; (ii)necessary repairs and replacements to the untreated water facilities; and (iii) H:\Ews\SOUIHE DOC 11 9/19/2006 improvements and betterments to maintain the untreated water facilities in proper operation and to comply with Restated Agreement and all applicable regulatory requirements. No cost to the Managing Participant's government not directly related to the maintenance and operation of the Untreated Water Facilities shall be included in factor"B" "C"is the outstanding debt for all existing untreated water facilities listed in Exhibit letter "I" adjusted for the calendar year preceding substantial completion, but excluding any debt payments for existing untreated water facilities for which Participant has paid a capital contribution.. `Di" is the total amount of surface water sold to the Managing Participant's water customers during the fiscal year.. As defined herein,DI includes such raw water received at the Managing Participant water treatment plants as well as the billable quantity (including take-oi- pay amounts as applicable) taken by the Managing Participant's untreated water customers, but excludes line loss by evaporation,leakage,etc_ "D2" is the total amount of surface water sold to the Managing Participant's water customers during the Managing Participant's calendar year preceding substantial completion of the 200 MGD Project.. As defined herein, D2. includes the untreated water received at the Managing Participant's water treatment plants as well as the billable quantity (including take-or- pay amounts as applicable) taken by the Managing Participant's raw water customers, but excludes line loss by evaporation,leakage,etc.. "B" is the annual debt service paid by the Managing Participant for all new untreated water facilities for each fiscal year.. As used herein "new untreated water facilities "means untreated water facilities such as reservoirs, canals;pipelines and water rights that convey or H:VEWB\SOUTHE DOC 12 9/19/2006 .store untreated water but are not listed in Exhibit "I" as well as improvements, repairs, or expenses for items listed on Exhibit"I",for which the Managing Participant issues new debt. B Section 3.4 of the Restated Agreement is amended to read as follows: 3.4.1 The Managing Participant shall submit for review to all Participants, not later than 60 days prior to the beginning of the Managing Participant's fiscal year,an estimated Annual Budget consisting of various departmental components that constitute the O&M expenditures.. The components are described in greater detail in Exhibits`B", "B Pasadena"and "E LaPorte Area Water Authority"(see Restated Agreement). The estimated Plant production will also be provided,along with the breakdown of the production per Participant The estimated Annual Budget and the estimated Plant production will be used to calculate the annual estimated cost per thousand gallons for the ensuing fiscal year The final Annual Budget will be submitted to the Participants when the Managing Participant's City Council approves its yearly budget.. 3.4.2 A majority of Participants by weighted vote may object to any specific item of the Annual O&M Budget. However,if such item is necessary for regulatory compliance,health, safety or security,it shall be excluded from this provision and the Participants shall continue to make payments for such item as provided by the Annual O&M Budget presented by the Managing Participant(or such amended Budget acceptable to the Managing Participant and the majority of the Participants by weighted vote). If such item is not necessary for regulatory compliance,health,safety or security,the payment made for such item shall be the amount the Participants by majority weighted vote decide and shall continue while the Participants pursue dispute resolution procedures as described herein. x:\Ews'SOUIHE DOC 13 9/19/2006 3.4.3 During the first month after the objection to items of the Annual O&M Budget, the Participants shall pursue the dispute resolution procedures found in Section 5.15 of the Restated Contract• 34.4 If the Participants are still at an impasse one month after the vote objecting to item of the Annual O&M Budget, the Managing Participant shall procure a mediator acceptable to a majority of the Participants by weighted vote. If the Participants reach no agreement after mediation, then the amounts established above shall continue for the remainder of the Budget year unless amended by the majority of Participants by weighted vote, including the Managing Participant. All Participants shall make payment to the mediator as an O&M Expense. 3.4.5 As used herein "weighted vote" means a system of voting under which each Participant's vote is weighted in proportion to the amount of water it has taken in the prior 12 months under the Restated Agreement. Thus, for example, if A has taken 10% of all the water taken under the Restated Agreement, A is entitled to 10% of the voting strength.. For voting purposes, no Participant's shall count for more than 49% regardless of the amount of water taken ARTICLE VIII. . COSTS FOR WATER LINE UPGRADE OR REPLACEMENT It is anticipated that it will be necessary to replace one or more water lines joining the Treated Water Transmission Facilities to the points of delivery of many of the Participants due to an order of the Texas Department of Transportation that some of such facilities be removed from State right-of-way or easement or other upgrade/replacement of the lines. Costs for any such replacements,including the cost of real estate and right-of-way are the responsibility of the Participants using the affected water line, and the Managing Participant shall charge the H:\EWB\SOUTHE DOC 14 9/19/2006 Participants for their share of costs of such facility based on each Participant's Distribution Allocation in such facility. Distribution Allocations under this Amendment for two of the lines are shown on Exhibit"G". Distribution Allocations for the Beamer Rd., the existing 42,"the existing 24,"and the 48"transmission lines are shown on Exhibit"T". The Managing Participant shall be responsible for constructing the replacement facility when it has secured adequate funding from the Participants. ARTICLE IX. INSURANCE Section 5.1.4 of the Restated Agreement is deleted. ARTICLE X. ENTIRE AGREEMENT The Restated Agreement and the Amendment am the entire agreement of the parties. In the event of any irreconcilable conflict between a provision of the Restated Agreement and this Amendment,the provision of this Amendment shall prevail to the extent of conflict only.. The parties have executed this Amendment in multiple copies,each of which is an original.. H:\EWB\SOUTHE DOC 15 9/19/2006• ATTEST/SEAL: CITY OF NASSAU BAY By: By: Name:- Name: Title: Title: • H:\EWB\SOUTHE.DOC 16 9/19/2006 ATTEST/SEAL: GULF COAST WATER AUTHORITY By: By: Name: Name: • Title: Title: H:\EWBISOUTHE DOC 17 9/192006 ATTEST/SEAL: CLEAR LAKE CITY WATER AUTHORITY By: By: Name: Name: Title: Title: WEWB sOLYTHE DOC 18 9/19/2006 ATTEST/SEAL: CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT By: By: Name: Name: Title: Title: H_\HWB1SOUTHE DOC 19 9/19/2006 ATTEST/SEAL: TRE LAPORTE AREA WATER AUTHORITY By: -- By: Name: Name: Title: President Title: Secretary CITY OF LAPORTE • By: By: Name: Alton B.Porter Name: Martha A.Gillett Title: . Mayor Title: City Secretary APPROVED AS TO FORM: By: Name: Knox W. Askins Title: City Attorney H:\EWB\SOUIFEE Doc 20 9/19/2006 ATTEST/SEAL: HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 55 By: By: Name: Name: Title: Title: • H:1EWBISOUTHE.DOC 21 9/19/2006 ATTEST/SEAL: THE CITY OF PASADENA By: By: Name: Name: Title: Title: • H_\EW8\SOUTHE DOC 22 9/19/2006 900Z/61/6 £Z 3oarax1n0sMam0VH :ammN :atWRN :icg :fig NOZS(1OH HMS 3O)Z17 ATIT, :'Iva.SALSHI,LV • ATTEST/SEAL: THE CITY OF WEBSTER . By: By: • Name: Name: ' Title: Title: HAEWB\SOUTHE DOC 24 9/19/2006 ATTEST/SEAL: THE CITY OF FRIENDSWOOD By: By: Name: Name: Title: Title: • H:\EWB\SOUTHE DOC 25 9/19/2006 ATTEST/SEAL: SAYBROOK MUNICIPAL UTILITY DISTRICT NO.1 By: By: Name: Name: Title: Title: • H:' WB\SOUTBB DOC 26 9/19/2006 ATTEST/SEAL: CITY OF HOUSTON,TEXAS City Secretary Mayor APPROVED: COUNTERSIGNED BY: Director,Public Works and Engineering City Controller Department APPROVFn AS TO FORM: DATE COUNTERSIGNED: Assistant City Attorney L.D.File No. • H;1ENB\SOUTEE DOC 27 9/19/2006 ADDENDUM TO OPERATIONS AND MAINTENANCE FOR THE SOUTHEAST WATER PURIFICATION PLANT A. Operation and Maintenance Services by Managing Participant. During the Service Term,the Managing Participant shall provide full time management, operation and maintenance for the Plant by means of the Managing Participant's employees.. The Managing Participant shall operate and maintain the Plant in accordance with Attachment A—O&M Scope of Services and all applicable federal and state laws,regulations and permits.. E. Costs. Cost of Services shall be calculated as provided in 3..4 and Exhibits "E", "E Pasadena" and "E La Porte Area Water Authority",except: 1, Treated water will be produced at an electrical efficiency of no more than 1100 kilowatt hours per million gallons treated, determined on an annual basis. Participants will not be required to make payment for electrical costs, on a per million gallon basis,in excess of this maximum usage. Should the annual average usage exceed the specified efficiency, reimbursement will be made by the Managing Participant in the annual operations and maintenance cost true up. 2. Treated water will be produced at an efficiency determined by the maximum treatment chemical usages per million gallons treated specified below (list), as determined on an annual average basis: Ferric Sulfate—300.0 lbs/MG Lime—150 Ibs/MG Caustic— 15 lbs/MG Polymer—30 lbs/MG S:lpweshareWLANSEC71Water Supply and Cost Sharing Contracts\Treated Water Supply Contracts\Southeast Plantlsoutheast expansion September 12.2006 contract\operations addendum\ADMSEWP091206accepted DOC I 2 Fluoride—30 lbs/MG(wet weight) Aqueous Ammonia--5..0 lbs/MG(dry weight) Chlorine Ton Cylinder 30.0 lbs/MG(dry weight) Participants will not be required to make payment for treatment chemicals in excess of the specified maximum usages. Should an annual average usage exceed the specified maximum usage, reimbursement for that cost will be made by the Managing Participant in the annual operations and maintenance cost true up . . 3. The Managing Participant shall provide the draft Annual O&M Budget at least 30 days prior to the beginning of the Managing Participant's fiscal year. Exhibits "E", "E LaPorte" and "E Pasadena" are amended such that during the Service Term "Overhead Costs" shall include $600,000 for the Managing. Participant management, support and other indirect costs, but there shall be no percentage payment for "Total Contracted Water Services" Each fiscal year the Managing Participant may adjust the Overhead Costs by increasing this amount by no more than the increase in the CPI Index for the previous fiscal year "CPI Index" means the U.S., Consumer Price Index for all Urban Consumers for the Houston-Galveston Br azoria Texas Metropolitan Area.. C. Fines and Liquidated Damages. Any fines imposed by the Texas Department of Health, T CEQ,EPA or any other state or federal agency for non-attainment of drinking water quality, effluent discharge violations, or improper handling and disposal of the sludge or waste materials shall be entirely paid by Managing Participant. &%.pweshare\PLANSEC1\Water Supply and Cost Sharing Contmcts\Ireated Water Supply Contracts\Southeast Piant\southeast expansion contracdoperatiens addendum1ADMSEWP091506accepted DOC 2 September 15 2006 3 In the event the Managing Participant believes the regulatory fine is unjustified because the excursion was caused by a Force Majeure or other reason, it is the Managing Participant's responsibility to contest the regulatory fine at its own expense. The Operating Advisory Committee may withhold from payment as liquidated damages amounts as shown in Attachment A, Table [1] — Treated Water Quality Standards for exceedances of the specified water quality performance standards. Provided, however, the Operating Advisory Committee shall not impose liquidated damages (i)if the raw water exceeds the limits shown in Attachment A, Table 12] — Raw Water Parameters, and the Managing Participant demonstrates "best efforts" for water treatment; or (ii) the Managing Participant demonstrates that the exceedance was due to a Force Majeure. (Each Participant shall be given credits for liquidated damages on the basis of its percentage share of total Demand Allocation in the Plant). D. Term. The Service Term shall begin June 1, 2006 and last for five years. The Service Term is automatically renewable for successive five-year terms unless either the Managing Participant Director or a majority of the Participant Directors gives six months' notice of non-renewal. In addition, Participants may terminate the Service Term, if they can secure another service provider that can provide the same operation and maintenance services as described herein for a lower cost than the Managing Participant and obtain a two-thirds majority of Participants in favor of hiring the new service provider. No costs for the procurement of such replacement service provider shall be assessed against the Managing Participant. Voting under this Section D shall be one vote for each Participant.Each Participant must show that the proper authority has approved its vote. The Managing Participant shall continue to S:lpweshare\PLANSECr\Water Supply and Cost Sharing Con tractsUreated Water Supply Contracts\Southeast Planilsouthea_st expansion contractloperations addendumWDMSEWP091206accepted DOC 3 September 12.2006 4 provide service under the service terms of this agreement until the contract for the new service provider is approved.. E. Close-Out At the end of the Service Term, the Managing Participant shall return the Plant to its condition when Managing Participant,commenced maintenance, less .normal wean.and tear during the Service Term.. The Managing Participant shall.ensure all equipment is filly operational in accordance with the manufacturer's equipment specifications.. Managing Participant shall replenish inventory levels to the levels that existed at the time Managing Participant commenced its maintenance of the Plant. • • S:\pweshare\FLANSECIIWater Supply and Cost Sharing Contractslireated Water Supply Connaets'Southeast Plant\southeast expansion contracdoperations addenduntlADMSEWP091206accepted.DOC 4 September 12,2006 ATTACHMENT A O&M SCOPE OF SERVICES 1. General Requirements The Managing Participant shall operate and maintain(O&M) the Treatment Facility and Water Facilities to ensure the ability to treat water up to the design capacity of the plant in compliance with all applicable laws and regulation. As described below,the Managing Participant shall be responsible for all aspects of operation and maintenance, including providing all labor, materials,and utilities necessary to treat up to the maximum design capacity of water daily.the amount of water treated by the Managing Participant shall be determined by the custody transfer flow meters located at the High Service Pump Station, as adjusted for in-plant uses (plant potable water - PPW) through flow meters FMI5101 and FMT 5102. The Managing Participant will assume the status of "generator," and will be responsible for the ultimate disposal of all sludge and waste residuals resulting from the contract activities,. In addition,any lubricants or bulk chemicals proposed to be utilized at the Treatment Facility must comply with ANSI/NSF Standards 61 and 60,respectively.. 2. Performance Standards The Managing Participant shall be responsible for meeting the following performance standards: • Meeting the Water Quality Performance Standards set forth in Schedule 1 of this Scope of Services. • Performing all of the Managing Participant's obligations as set forth in this Scope of Services. • Performing all related preventive maintenance in accordance with prudent industry standards. 3. Description of Managing Participant Responsibilities The Managing Participant shall operate and maintain the Ireatment Facility in accordance with all Applicable Law,the Scope of Services and Schedules 1 through 8 of this Attachment,and the Cost Sharing Agreement. The Managing Participant is required to provide all necessary corrective, preventative and predictive maintenance at the Ireatment Facility and Water Facilities. The Managing Participant shall, at a minimum, perform the following preventative maintenance: (i) as required by the manufacturer of the equipment; and (ii) generally accepted engineering,operational and maintenance practices for a facility of this size,type and age. The Managing Participant accepts without limitation the Treatment Facility in"as is"condition. During the Service Ierm of the Cost Sharing Agreement, the Managing Participant shall be responsible for the operation and maintenance of the Treatment Facility. This will include providing the staff and materials necessary to ensure that the Treatment Facility is capable of and can produce up to the design capacity of water,365 days per year. S:lpweshare\PLANSECT\Water Supply and Cost Sharing Contractslrreated Water Supply contras s\SoutheastPiantlsoutheast expansion contractlopetations addendum\ADMSEWP091506accepted DOC 5 September 15.,2006 ATTACHMENT A O&M SCOPE OF SERVICES 3.1 Transition Services Upon receiving a notice to proceed,the Managing Participant shall implement a transition plan to begin to assume responsibility for the Treatment Facility. These transition services are intended to ensure that the Managing Participant is fully able to commence operations of the Treatment Facility on June 1,2006.. This shall include: • Recruiting staff necessary to fill all positions required by the City of Houston Public Utility's staffing plan; • Monitoring plant operations for at least 21 days on multiple shifts prior to assuming operational responsibility; • Utili7e the existing computerized maintenance management system that incorporates the specifications and requirements described in Section 3.3 below. • Updating within sixty (60) days of the effective start date the Emergency Response Plan and a Risk Management Plan • Conducting an inventory and the quantities of materials, supplies, fuel and other consumables on site at the time service commences.. 3.2 Operation The Managing Participant will operate the Treatment Facility to ensure that it treats up to the plant design capacity of water each day as needed to supply sufficient flow and pressure to the OAC members.. The Treatment Facility shall be operated in accordance with the Cost Sharing Agreement and attached Schedule 1. Operational decision making will reflect the following minimum objectives: • Protecting public health and welfare; • • Protecting the health and safety of the plant operating staff; • Complying with all applicable laws, rules, regulations and ordinances, including without limitation, City, State, and Federal water quality and supply requirements and safety requirements; • Protecting the environment; • Protecting and preserving the plant equipment and facilities;and • Maximizing plant operational efficiency and minimization of operating costs.. The Managing Participant shall develop and implement procedures to ensure attainment of these goals. The Managing Participant shall comply with the Water Quality Performance Standards set forth in Schedule 1. 6 9/I5/2006 ATTACHMENT A O&M SCOPE OF SERVICES The City of Houston Public Utility's responsibilities include,but are not necessarily limited to: • Treating raw water and distributing potable water to the Co-Participants and the City of Houston distribution system in response to their demand requirements, in conformance to all applicable laws and the Cost Sharing Agreement; • Providing a Texas Class"A"licensed Water Operator who will be in charge of the operation of the Treatment Facility. Ihis operator will be a full-time employee dedicated solely to the • Treatment Facility and will also be responsible during evening call-outs. • Staffing the Treatment Facility in accordance with the City of Houston Public Utility's proposed staffing plan and at a minimum consistent with the requirements of the State of Texas. This shall include at least one Texas Class "B" licensed Surface Water Operator or higher onsite during each shift.. • . Providing all materials, both durable and consumable, and supplies necessary to operate and maintain the Water Facilities,including but not limited to chemicals,utilities,residuals management, rolling stock, and consumables.. the payment for all such items is described in the Cost Sharing Agreement; • Maintaining: 1) a minimum water level in the ground storage tanks to satisfy all regulatory requirements; 2) discharge pressures from the Treatment Facility to meet all regulatory requirements; and 3) a goal of a minimum delivery point pressure of 35 psig at each Co- participant's delivery point. • Add additional chemicals as needed to address periodic water quality problems; • Obtain laboratory services to ensure compliance with all applicable law and to monitor and manage the treatment process.. The Managing Participant will develop and implement an appropriate QA/QC plan for all such work • The Managing Participant will be responsible for maintaining the lagoon in a condition such that it can be used for its intended purpose. Maintenance of the lagoon facility includes maintenance of all side slopes and removal of all rooted vegetation. The Managing Participant will be responsible for the proper handling and disposal of all materials removed from the lagoon. • the Managing Participant is responsible for operating and maintaining the on-site monofill in compliance with the operating plan contained in the Permit Application and Site Development Plan for the Southeast Water Purification Plant Onsite Sludge Disposal Area, dated February 1992 and submitted to the Texas Department of Health as well as the current operating permit Number 03523. Furthermore, the Managing Participant will be responsible for maintaining the side slopes,vehicle road ramp as well as the paved road and sludge processing area. The Managing Participant will be responsible for pest and fire ant control at the sludge lagoon and monofill. 7 9/12/2006 ATTACHMENT A O&M SCOPE OF SERVICES • Responding immediately to emergency or disaster situations in a manner equal to of better than existing plans,and in accordance with the current"Emergency Operations Plan of the Department of Public Works and Engineering"and the approved Emergency Response and Risk Management plans.. • Providing emergency repair services to the Water Facilities and related infrastructure.. This may include repairing main breaks and valves between the Ireatment Facility and the points of delivery to each co participant. The Managing Participant may subcontract that work to qualified firms,if deemed necessary.. The Managing Participant may use,its own labor to make the repairs. • Conducting preventive maintenance on the Co-Participant delivery point locations including: maintaining fencing and security; grounds maintenance; and maintaining the valve vault,the flow control valves and the flow and pressure transmitters to the Ireatment Facility when construction has been completed The Managing Participant shall be responsible for the operation, maintenance and calibration of the flow control devices and the flow and pressure transmitters that transmit signals to the Treatment Facility. the Managing Participant shall be responsible for the operation,maintenance and calibration of the Co-Participant flow meters and flow transmitters that transmit signals to the City of Houston water billing department; • Maintaining professional responsible working relationships with the Co-participants, regulatory authorities,material and service vendors,the media and the public. • Providing and maintaining adequate security at all Treatment Facility facilities, systems, buildings,plants and equipment which is inside the fence line • Providing unrestricted access by the Co-participants to the Water Facilities to observe operations and evaluate the condition of said facility.. This will include allowing the Co- participants to test and audit the performance of the equipment at Water Facilities. 3.3 Maintenance the Managing Participant shall be responsible for all aspects of maintenance at the Water Facilities, including corrective, preventative, and predictive maintenance. Ihis may include emergency repairs at the Water Facilities sites or to the mains and point of service connections, replacement of certain equipment and capital improvements. The Managing Participant shall use its professional judgement in determining what additional maintenance is appropriate and necessary.. The Managing Participant will be required to implement maintenance procedures to ensure attainment of the objectives set forth in this Scope of Services. This includes, at a minimum, responding to corrective maintenance needs in a timely and appropriate manner. The Managing Participant shall provide necessary corrective, preventative and predictive maintenance for all systems, structures and equipment at the plant. In addition,the Managing Participant shall: 8 9/12/2006 ATTACHMENT A • O&M SCOPE OF SERVICES • Perform all necessary preventive maintenance on installed cathodic protection at the Treatment Facility.. All needed,repairs must be made to ensure the integrity and operability of the system • Inspect annually all tanks and piping systems,including the ground storage tanks and clear well.. Piping that is equipped with heat tracing shall be inspected prior to winter conditions,and repaired as necessary. • Inspect annually,at a minimum,tank level indicators,including the two ground storage tanks,and calibrate and adjust the level indicator as necessary.. • Perform preventative maintenance on the 138 KV Substation,High and Medium Voltage • Equipment as required by standard industry practice. • Perform maintenance on all chlorine feed systems,including relief-valves,evaporators, and vacuum regulators on a bi-annual basis, per manufacturer's specifications. This shall include complete disassembly of the units and repair or replacement as necessary. • Perform maintenance on flexible metal tubing used to connect chlorine supply cylinders to piping systems, according to manufacturer's and the Chlorine Institute's specifications,and replace on an annual basis or sooner if needed. • Perform annual vibration analysis testing of critical mechanical equipment. The Managing Participant shall perform interpretation and analysis of test results and submit an evaluative written report in an approved format to the OAC, including necessary action plans. The Managing Participant shall promptly address any deficiencies identified in the testing report. • Perform annual oil sampling of critical mechanical equipment. the Managing Participant shall perform interpretation and analysis of test results. The Managing Participant shall promptly address any deficiencies identified in the testing report. • Inspect,maintain and test all backflow preventers within the Water facilities operated or maintained by the Managing Participant in accordance with Iexas Commission on Environmental Quality(TCEQ) requirements, and at least annually perform calibration and testing. • Perform maintenance on the on-site City of Pasadena Metering Station, which shall include all valves and flow meters. • Touch up paint on any equipment or facilities as needed to minimize corrosion and maximize service life.. • Maintain the Sludge Lagoon and monofill free from excessive vegetation and overgrowth.. The side slopes of the monofill will be maintained for stability and to prevent erosion.. 9 9/12/2006 • • ATTACIIIVIENT A • O&M SCOPE OF SERVICES • • Conduct annual infrared inspections of all motor control centers, transformers•and motor connections greater than 60 hp.. • Perform periodic calibration of instruments in accordance with manufacturer's recommended procedures. • • Repair expansion joints to maintain integrity of concrete structures and prevent leaks. • Operate, maintain and calibrate, or arrange for the operation, maintenance and - calibration of the High Service Pump Station discharge custody transfer flow meters and the two in-plant potable water (PPW)flow meters FMI5101 and FMT 5102;and • Operate, maintain and calibrate, or, arrange for the operation, maintenance and calibration of the off-site Co-Participant's flow meters and the flow transmitters that transmit signals to the City of Houston's water billing department. the Managing - Participant shall be responsible for the operation, maintenance and calibration.of the flow control devices and the flow and pressure transmitters that transmit signals to the - Ireatment Facility.. • The Managing Participant will be responsible for maintaining the physical facilities of the Treatment Facility. Ihis will include at a minimum: • • All spare parts,materials and supplies shall be stored in an orderly manner; • Regular pest-control including fire ant control; - • • As needed pest control for capture and removal of wild hogs and any other pest animals which may cause destruction of property or endanger treatment processes; • Repair of all plumbing and piping leaks and failures; • External cleaning, such as pressure washing of the ground storage tanks and similar facilities as needed; • Walls will be cleaned and touch up paint applied as necessary • Tile walls will be washed as needed; • Repair of cracks or spauled concrete and expansion joints; • Railroad track beds and fence lines will be treated with herbicides as necessary to prevent weed growth; • Weed control will be performed in paved areas to keep cracks and joints•clear of vegetation; • • l 0 9/3 2/2006 ATTACHMENT A O&M SCOPE OF SERVICES • Grass and landscaped areas will be maintained in an attractive,neat manner,which may be used for open houses and plant tours. For purposes of this section,maintenance of the ditch along the southerly side of the property,outside the fence is included; Grass will be mowed as needed during the growing season from April through November 15th of each year;and • Grass will be mowed and weed control will be performed on a regular basis at the Co- Participant delivery point locations.. 3.4 Reporting Requirements All reports and data shall also be saved in electronic format the reports at a minimum shall include: • A monthly operations report summarizing daily raw water quality, finished water quality, staffing changes, chemical and utility usage, maintenance activities, (summary of preventative maintenance projects started, completed, backlogged, corrective maintenance activities undertaken), sludge production, sludge disposal locations and such other information appropriate for the OAC to understand performance,operations and maintenance at the Treatment Facility. Sludge that is taken off-site must be disposed of at facilities that are properly operated and licensed by the State to accept such sludge. Sludge disposal manifests must be maintained on-site during the entire period of this Agreement. ' • Monthly list of the warranty status of any warranties for components purchased and installed by the Managing Participant or a third party. • A monthly report of the actual chemical purchases and invoiced amounts for any chemicals utilized at the Water Facilities • Quarterly report summarizing maintenance activities completed in the last quarter and scheduled to be undertaken for the upcoming quarter. This should also include proposed repair and replacement projects. • Annual report summarizing the operations over the previous year,major issues moving into the upcoming year, including but not limited to recommended modifications or improvements to the facility, anticipated modifications enhancements to maintenance procedures. • Any reports required of water producers under applicable law • Any reports requested by the OAC to verify operation and maintenance issues, or document special circumstances. 11 9/12/2006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Quality Performance Standards PURPOSE The purpose of this schedule is to identify the Treated Water Quality Performance Standards that the Managing Participant is required to meet.. WATER TREATMENT REQUIREMENTS All analytical methods used to demonstrate compliance shall be according.to approved methods by EPA. In the event that a particular parameter does not have a method approved by EPA, methods currently accepted by the industry shall be used.. . The Managing Participant shall operate the SEWPP in such a manner that the SEW PP will produce Treated Water that is in compliance with all applicable laws, rules and regulations. The requirements were developed to maintain consistency with current internal requirements, minimize public health risks, allow for flexibility to meet future regulations and eliminate or reduce the need for major modifications to the SEW PP in the near future, SAMPLING AND ANALYSIS 1. The Managing Participant will ensure performance of all sampling, analysis and record keeping required by USEPA and the TCEQ. Managing Participant will be responsible for ail monitoring, up to and including the point of entry into the distribution system. USEPA and TCEQ approved laboratory procedures will be followed. 2. For any analytical laboratory work performed at an outside or offsite laboratory, the.Managing Participant shall use an approved testing laboratory.. 3.. The Managing Participant will be responsible for compliance with all currently effective monitoring requirements as well as those becoming effective during the Service Term of the Cost Sharing Agreement..The Managing Participant will perform other tests for process control as necessary. • 2 9/12/2006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULEI Treated Water Quality Performance Standards • 4. Compliance monitoring parameters which are currently effective and required at the SEWPP (Entry Point 002 in PWS ID No 1010013) include the list of samples and analyses outlined in a document titled, "Drinking Water Samples to be collected by the TCEQ in 2000," These samples are collected and analyzed by TCEQ personnel. The Managing Participant will be responsible for all labor Costs • associated with annual compliance monitoring 5. Also included in the current required monitoring are ail parameters associated with the Surface Water • Treatment Rule (SWTR).. • 6. Current TCEQ approved T10 values,shall be used when calculating the CT value, 7 Managing Participant is responsible for all costs associated with the sampling, analysis,•report completion and submission. 8. Lead and Copper Rule compliance monitoring at the SEWPP includes bi-weekly monitoring and reporting of the following Water Quality Parameters at the point of entry into the distribution system. The lead and copper rule related water quality parameter report is to be completed by the 10th day of the month following the quarterly reporting period.. a. Alkalinity as CaCO3 b pH c Calcium as Ca d. Conductivity e: Temperature • 9. Radionuclides are sampled by TCEQ_ every four (4) years at each point of entry on a quarterly schedule. The SEWPP will be sampled during a total of eight (8) quarters in two (2) different years during the Service Term of the Cost Sharing Agreement.. These analyses include: a. Gross Alpha b. Total Radium c_ Radium 226 d. Radium 228 e. Total Uranium • f.. Gross Beta 3 9/J 2/2006 • ATTACHMENT A • 1 • O&M SCOPE OF SERVICES SCHEDULE 1 • Treated Water Quality Performance Standards • 10. In addition to all other compliance related monitoring,the Managing Participant will be responsible for the following analyses of record. Analysis/Report Frequency 1 Complete chemical analysis report Biweekly • • 2. Heterotrophic plate counts at each process through distribution: • A. Settled Weekly • B. Filtered Weekly C. Distribution(see Table 1 —Item 15 for limits) Daily • D. Raw Daily 3.. Total Coliform Counts A. Raw Daily • B. Settled . Weekly C. Filtered Weekly D. Distribution(see Table 1 —Item 14 for limits) Daily 4.. Giardia and Cryptospordium Monthly A. Raw B. Distribution(see Table 1 —Items 27 and 26 for limits) 5. Algae Counts and Enumeration Biweekly A. Raw B. Distribution(see Table 1 —Item 24 for limits) . 6. Trihalomethanes A. Distribution Biweekly • 7. Trihaloacetic Acids(HAA6) • (see Table 1 —Item 26 for limits) A. Distribution Biweekly • • 14 9/12/2006 ATTACHMENT A • O&M SCOPE OF SERVICES SCHEDULE 1 • • Treated Water Quality Performance Standards 11. Process control monitoring will be performed by Managing Participantat a minimum of the following grab sample tests and frequencies.. Parameter/Location Frequency • 1. pH Every 4 hours • A.. Raw(Once/day) B. Settled C. Filtered • D. Distribution(see Table 1 —Item 18 for limits) 2. Turbidity: Every 4 hours A. Raw(Once/day) B. Settled(see Table 1 —Item 3 for limits) • C Clearwell (see Table 1 —Item 1 for limits) D. Individual Filters(see Table 1 —Item 2 for limits) 3. Alkalinity Daily A.. Raw B., Settled C Filtered • D. Distribution 4. Jar Tests Weekly Using D/DBP protocol to establish diminishing returns for TOC. 5. T.O..N. Daily, Mon-Fri A Raw B. Distribution(see Table 1 —Item 30 for limits) 6. Hardness Daily A Raw B. Settled C. Filtered D.. Distribution 7. True Color(City of Houston Method) Daily A. Raw B Settled C, Filtered D.. Distribution(see Table 1 —Item 31 for limits) • 15 9/12/2006 ATTACHMENT A O&M SCOPE OF SERVICES Parameter/Location Frequency 8. Fluoride Daily A Distribution(see Table 1 -Item 21 for limits) • 9. Filter Profile(Each filter element) Weekly 10. Chloride Daily A. Raw B. Distribution • 11.. Calcium Daily A. Raw • B. Distribution 12.. Ammonia Daily A. Raw -Total 0 B. Distribution-Free(see Table 1 -Item 28 for limits) 13. Chlorine Residual-Free and Total Every 4 hours A. Raw B. Settled C. Filtered D. Distribution (see Table 1 -Item 13 for limits) • • i 6 9/12/2006 ATTACHMENT A O&M SCOPE OF SERVICES • TABLE 1 -TREATED WATER QUALITY STANDARDS • Water Treatment Water treatment Performance Monitoring and Standard Subject Reporting to Liquidated Requirement Subject Reporting Damages up to a to Liquidated . frequency or Maximum of Damages up to a Point of Monitoring Reason Data Monitoring $10,000/day Total Maximum of Parameter Compliance Value(1) Frequency Needed Responsibility $1,000/dayTotal 1.Turbidity Clearwell Less than 0.100 NTU,more Continuously 15 minute Certified than 95%of the 15 minute interval Operator. x Intervals. Less than 0.300 NTU readings,report • 100%of the time. daily • 2.Turbidity Individual filter Less than 0.100 NTU more -Continuously 15 minute Certified x effluent lines than 95%of the 15 minute intervals Operator intervals,less than 0.300 NTU 100%of the time. • 3.Turbidity Individual filter A maximum of 0.300 NTU spike Within 15 Intervals not Certified effluent lines following a filter backwash and minutes exceeding one Operator X recovery to less than 0,100 following a minute,report NTU within 15 minutes tram filter daily . initiating filter operations backwash . _ and recovery • • 4.Turbidity Sedimentation Daily average of less than 2.00 4 hour Daily Average Certified x Basin effluents NTU at all times for the intervals Report . Operator • combined basin effluent • 5.Giardia and High Service Surface Water Treatment Rule Daily Daily for Certified x virus Pump Station requires a total of 3 fog Giardia demonstration Operator • inactivation discharge and virus(4 log) of CT removallinactivation compliance for each parameter Provide a minimum of.5 log Daily Gierdla and a 2-log virus • inactivation using disinfectant . residual 6.Temperature Raw Water Degrees C Daily Lowest value Codified • x each day tor Operator • • CT calculation • 17 9/12/2006 ATTACHMENT A . • O&M SCOPE OF SERVICES I I Water Treatment Water treatment Performance Monitoring and • Standard Subject Reporting to Liquidated Requirement Subject Reporting Damages up to a to Liquidated Frequency or Maximum of Damages up to a Point of Monitoring Reason Data Monitoring $10,0001day Total Maximum of Parameter Compliance Value(1) Frequency Needed. Responsibility $1,000/day Total 7.Peak Hour Flow High Service MGD Daily Highest value Certified .X Pump Station each day for Operator discharge CT calculation • 8.Disinfectant Each Report Continuous Lowest value Certified • X residual Disinfection each day for Operator Zone CT calculation 9.TOC-Raw Prior to Report Monthly Enhanced TCEQ Water chemical coagulation Approved X ' addition compliance Laboratory 10.TOC-Raw Influent to Report Weekly I Enhanced , TCEQ • Water Treatment coagulation Approved X Module compliance Laboratory ' 11.TOC-Treated High Service Report _Monthly Enhanced TCEQ X Water • Pump Station coagulation Approved Discharge compliance Laboratory _ 12.TOG-Treated High Service Report Weekly, •Enhanced TCEQ X Water • Pump Station Actual Plant coagulation Approved Discharge compliance Laboratory 13.Chlorine High Service 2.50 mg/(minimum)to 3.90 Continuous Grab samples Certified X Residual Pump Station mg/(maximum),+/-0.10 mg/I as specified Daily. Operator • Combined discharge and sufficient concentration to by Owner meet CT requirements of the ' Surface Water Treatment Rule . • (SWTR).Owner will have the . option to specify a tree residual • of up to 3.50 mg/L on an intermittent basis under emergency conditions to • address microbiological• problems in the transmission and distribution system or in response to treatment process . . . _ needs • 18 • • .• 9/12/2006 • ATTACHMENT A O&M SCOPE OF SERVICES . ' 14.Total Coliform High Service I Not detected 100%of time,In Daily Daily based on .TCEQ x Pump Station compliance when sample result grab samples approved discharge is negative.If initial test is laboratory positive,in compliance when confirmation test Is negative. 15. Hetrotrophic High Service Less than 25 colony forming Daily • TCEQ X Plate Count Pump Station units;R2A;5 days,26 degree approved (HPC) discharge C;or other method approved by laboratory Owner 1 16,Fecal Coliform High Service Not detected 100%of time.In Daily I Daily based on TCEQ • x • Pump Station compliance when sample result grab samples approved discharge is negative.If initial test is laboratory positive,In compliance when . • confirmation test is negative. 17.pH High Service Maintain pH greater than 0.00 Continuously Daily Certified X Pump Station to 0.20+Stability pH(pHs)not Operator discharge exceeding a pH of 8.60. 18.pH High Service Report Daily Daily grab Certified • • Pump Station samples Operator • • discharge _ 19.Alkalinity High Service See Langelier Index Daily Daily Certified • x Pump Station requirements Operator • discharge 20.Manganese High Service Less than 0.050 mg/L Once Per Once Per TCEQ X Pump Station Month Month approved . discharge _ laboratory 21.Iron High Service Less than 0.200 mgiL Once Per Once Per TCEQ x Pump Station Month Month approved discharge laboratory 22.Fluoride Clearweli 0.850 40.100 mglL Continuous Once per day Certified ,x Operator 23.Arsenic Raw Water Report Monthly Monthly TCEQ X approved High Service Report i Monthly Monthly laboratory x Pump Station discharge 24.TTHMs High Service Less than 64.0 ugiL daily max. Twice per Twice per TCEQ x Pump.Station month month approved discharge laboratory • 19 10/11/2006 • ATTACHMENT A O&M SCOPE OF SERVICES 25,HAAs High Service Less than 48.0 ug/L daily max. Twice per Twice per TCEQ X Pump Station month month approved discharge laboratory 26.Giardla(2) High Service Report Monthly Monthly grab EPA Method x Pump Station samples 1623 or most discharge current method 27.Ctvtosporidium High Service Report Monthly Monthly grab EPA Method x (2) Pump Station. samples 1623 or most discharge , current method 28.Free Ammonia Plant Influent Report Daily Reported daily Certified X Operator High Service No more than a 0.500 mglL as Daily Reported daily Pump Station N increase over plant influent x • • discharge value •29.Nitrite Plant influent Report Twice a Twice a month Certified • X month Operator High Service No more than a 0.500 mg/L Twice a Twice a month X Pump Station increase over plant influent month discharge value • 30.Threshold High Service Less than 2.0 T.O.N.100%of Daily during Daily during Certified X Odor Number Pump Station time odor event odor event, Operator discharge otherwise otherwise Weekly Weekly • 31.True Color High Service Less than 5.0 Pt Co Units Daily Daily Certified X Pump Station 100%of the time Operator discharge , • (1) Absence of data to demonstrate compliance with these requirements shall be assumed to be non-compliance unless Managing Participant can demonstrate that the performance was met and that every reasonable effort has been made to maintain and/or restore the collection of data. (2) Sufficient sample must be analyzed to ensure laboratory achieves detection limit below any current or future regulatory trigger. • Analysis procedures shall meet the following criteria: 1. Analysis for Cryptosporidium to be completed by a method•and laboratory approved by the U.S.EPA and City of Houston. . Note:TOC analysis method with a detection limit of 0.5 mg/I. • • • • • • • • • • 20 10/11/2006 ATTACHMENT A • O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Quality Performance Standards IABLE 2 RAW WATER QUALITY TREATMENT PARAMETERS' Parameter Minimum Value. Maximum Value Turbidity-NTU . 1 120 Alkalinity=mg/l as CaCO3 60 150 Hardness-mg/I as CaCO3 60 .150 pH-pH scale 7.0 8.5 Chloride-mg/L _ 60.0 10.0 Temperature-0C 5 35 Fluoride-mg/L 0.1 •1.2 Calcium-mg/L as Ca 10.0 55.0 • Magnesium-mg/L 1.0 6.0 W�mn-cm-1.. <0.01 0.60 _ Color-co-pt unit 1 . 40 Conductivity-umhos/cm 100 500 Total Iron mg/L <0.03 3.0 Sodium-mg/L 5.0 — 50.0 . Potassium-•mg/L 1.0 - 6.0 Total Manganese-mg/L r <0.01 _ 0.30 Total Iron-mg/L <0.03 2.50 Bromide-mg/L <0.01 0.30 Total Organic Carbon-mg/L 1.0 15 Total Dissolved Solids(Cale.)-mg/L _ 100 350 Sulfate-mg/L 2 50 Nitrate (N)-mg/L 0 2 Total Phosphate(P)-mg/L <0.01 1.5 Notes: 9 Any raw water quality parameter not listed in this table must be demonstrated-at . the City of Houston Public Utility's expense to result in a condition such that the Treatment Facility is not capable,despite"best efforts",including but not limited toaddition of chemicals,of meeting one or more of the water quality standards specified in Table 1.. 2. These values are provided only for the purposes of determining whether credits shall apply for exceedance of any water quality performance standard described in Table 1. 21 !on 1/2006 ATTACII TENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Quality Performance Standards TABLE 2 RAW WATER QUALITY TREATMENT PARAMETERS' Parameter Minimum Value Maximum Value Turbidity-NTU 1 120 Alkalinity-mg/I as CaCO3 60 150 . . Hardness-mg/I as CaCO3 60 150 r pH-pH scale 7.0 8.5 Chloride•-mg/L 60.0 10.0 Temperature-aC 5 ___ 35 Fluoride-mg/L 0.1 . 1.2 Calcium--mg/L as Ca 10.0 _ 55.0 . Magnesium-mg/L 1.0. 6.0 " Wes,,,,,-cm4 <0.01 0.60 Color-co-pt unit 1 40 Conductivity-umhos/cm 100 500 Total Iron mg/L r <0.03 3.0 . Sodium-mg/L -^ 5.0 50.0 Potassium-mg/L 1.0 6.0 - Total Manganese-mg/L <0.01 0.30 Total Iron-mg/L <0.03 2.50 Bromide-mg/L <0.01 0.30 Total Organic Carbon-mg/L 1.0 15 Total Dissolved Solids(Calc.)-mg/L 100 350 Sulfate-mg/L 2 50- . Nitrate(N)-mg/L 0 2 • Total Phosphate(P)-mg/L <0.01 1.5 Notes: 1. Any raw water quality parameter not listed in this table must be demonstrated at the City of Houston Public Utility's expense to result in a condition such that the Treatment Facility is not capable,despite"best efforts",including but not limited to addition of chemicals,of meeting one or more of the water quality standards specified in Table 1. 2. These values are provided only for the purposes of determining whether credits shall apply for exceedance of any water quality performance standard described in Table 1. • 22 9/12/200.6 • EXHIBIT C1(200 mgd) . SCHEDULE OF ACTUAL AND ESTIMATED COSTS FOR PLANT Enhancements(existing 120 Total New Firm 200 MGD mgd capacity only) Construction New Existing New Existing Enhancements 80 mgd Enhancements SEWPP Expansion Costs Construction Facilities Construction Facilities 200 mgd Expansion 120 mgd Total Forebav $ 623,086 $ (623,086) Existing Raw Water Modifications $ 533,997 $ 800,996 $ 1,334,993 $1,334,993 $1,334,993 New Raw Water Pipeline 1,269,163 $ 1,269,163 1,269,163 1,269.163 TM No 1&Lift Stations 1&2 $1,189,491 - 1,189,491 1,189,491 1,189,491 Treatment Module#2 17,269,339 17,269,339 17,269,339 17,269,339 Chemical Feed Facility(Disinfection) 12,996,804 258,661' - (258,661) 12,996,804 12,996,804 12,996,804 New Ground Storage Tank 8,773,994 6,773,994 8,773,994 0 8,773,994 Existing Ground Storage Tank Modifications 2,946,173 2,946,173 - 2,946,173 2,946.173 Filtration/Clearwell&Alter Complex I 10,533,623 - 10,533,623 10,533,623 10,533,623 New Transfer Pump Station No.2 10,578,790 - 10,578,790 10,578,790 - 10,578,790 Transfer Pump Station No.1 Modifications 124,458 124,458 124,458 124,458 High Service Pump Station(Exh 01) - - Clarifier 192,729 (192,729) - Backwash Waste Pump System 2,874,527 - 0 2,874,527 2,874,527 2,874,527 Sludge Processing Facility 2,011.677 249,437 - (249,437) 2,011,677 2,011,677 2,011,677 Overflow Basin&Sludge'Lagoon - 824,135 - (824,135) - Generator Installation 203,986 305,978 509,964 509,964 509,964 Plant Security 3,346,004 5,019,006 8,365,009 ' 8,365,009 8,365,009 Fire Alarm System - 752,197 752,197 752,197 752,197 Operations Building&Electrical Subs - 2,544,906 - (2,544,906) - - ControVElectrical Comptes(Arohitecti 4,343,486 4,343,486 4,34.3,486 - 4,343,486 Instrumentation and Controls 2,559,669 2.559,669 2,559,669 2,559,669 Subtotal $78,484,550 $4,692,954 $9,948,808 ($4,692,954) $88,433,358 $10,209,966 $74,400,564 $3,822,828 $88,433,358 • • • • Diane%275%20Summary_90%25%20Modlfied_No%20UV_Rev3%20082906(1).XI3 9/12/2006 EXHIBIT C1(200 mgd) SCHEDULE OF ACTUAL AND ESTIMATED COSTS FOR PLANT Enhancements(existing 120 -Total New ' . Firm 200 MGD mgd capacity only) Construction New Existing New Existing Enhancements 80 mgd Enhancements SEWPP Expansion Costs Construction Facilities Construction Facilities 200 mgd' Expansion 120 mgd Total Engineering - Cost Allocation Analysis $292,674 $37,100 $329,774 $38,074 $277,445 $14,256 $329,774 Storm Sewer System Hydraulic Ma 49,815 6,315 56,130 6,480 47,223 2,426 56,130 Facility Expansion Evaluation • .390,500 - 390,500 - 390,500 - 390,500 Programming 900,000 300,000 1,200,000 - 900,000 300,000 1,200,000 O&M Training - - Regulatory Issues - _ - UVT Testing _ CT Analysis 27,186 27,186 - • 27,186 • - 27,186 CFO Modeling(GST's&UV Inlet) 45,696 5,792 I 51,488 5,944 43,318 2,226 51,488 Geotechnical 131,339 - 131,339 , 131,339 131,339 Surveying 80,157 - 80,157 80,157 80,157 Stormwater Pollution Prevention 20,471 - 20,471 - 20,471 - 20,471 Technical Review Committee 21,300 2,700 24,000 2,771 20,192 1,037 24,000 UV Pilot Testing 7,455 945 8,400 970 7,067 363 8,400 Filter Pilot Testing 223,500 - 223,500 223,500 223,500 Air Stripping for pH 155,312 19,688 175,000 20,204 147,231 7,565 175,000 Wetlands Delineation 21,032 - - 21,032 • 21,032 21,032 Electrical Services 370,500 - 370,500 - 370,500 - 370,500 Pump Station Surge Model - . _ ' . _ - Co-Participant Flow Control Valve - -• Sludge Disposal Site ' - - - - Bid-Document Reproduction . - _ _ . Tracer CT Study - Record Drawings - Balance of Amendment#2-Basic E. • 355,000 45,000 400,000 46,182 336,527 17,291 400,000 Balance of Amendment#2-Addilio 1,030,637 130,645 1,161,282 134,074 977,007 50,200 1,161,282 Phase I Preliminary Design 1,886,362 239,118 2,125,480 245,395 1,788,204 91,881 2,125,480 Phase I Final Design 3,699,767 468,988 . 4,168,755 481,299 • 3,507,248 180,208 4,168,755 Balance of Amendment#1 -Basic E 2,123,045 269,120 2,392.165 276.185 2,012,571 103,409• 2,392,165 Lab Tests,Legal,City Const Mgt. 7,063,610 895,393 ' '7,959,002 918,897 6,696,051 344,055 7,959,002 Construction Management(Estimate) 5,324,996 675,004 6,000,000 • 69,2,723 • 5,047,907 259,370 6,000,000 $24,220,355 $3,095,806 $27,316,161 $2,869,197 $23,072,676 $1,374,288 $27,316,161 Subtotal Construction+Engineering $ 102,704,905 $4,692,954 •$13,044,614 $ (4,692,954) $ 115,749,519 Additional Capital Allocations Recoupmen 3,009,957 3,009,957 • Retroactive CWA Debt Service(Exhibit Cc Total $ 105,714,862 $4,692,954 $13,044,614 $ (4,692,954) $ 118,759,476 $ 13,079,163 $. 97,473,240 $ 5,197,116 f$ 115,749,519 Capacity per Component 80,000,000 80,00.0,000 120,000,000 120,000,000 . Cost per Gallon-Construction and Engine $ 1.2838 $ 0.0587, 0.1087 (0.0391) . Cost per Gallon-Recoupment $ 0.0376 . . Cost per Gallon-CWA Debt Service $ , . Cost per Gallon-Total $ 1.3214 $ 0.0587 $ 0.1087 $ (0.0391) • . • A . Diane%27e%20Summary_90%25%2OModified_No%20UV_Rev3%20082906(1).xis 9/12/2006 • EXHIBIT C2(200 mgd) . CALCULATION OF UNRECOVERED i ORIGINAL CAPITAL COSTS , Raw Project Original Original Jun-00 Jun-00 Jun-00 New New Original Coat(a) Cost(a) Allocation%(e) Allocation$(a) • Allocation% Allocation$ increased$ Allocation% Allocation$ Increased$ Row Water Supply: Pipeline CWA•98°Pipeline $ 14,367,830 $ 14,367,830 80/250 $ 4,597.708 126/250 • $ 7,241,388 $ 2,043,681 210/250 $11,494,264 $ 4,252,878 Pump Station,CWA 21,261,0513 7,492,883 225/225 7,492,883 225/225 • 7,492,883 225/225 7,492,883 S 35,628,888 $ 21,860,713 $ 12,090,589 $ 14,734,289 $ 2.643,661 $18,987,147 $ 4,252,878 with new raw water contract $0.00 SEWPP I Original Original Jun-00 I Jun-00 Jun-00 New j New - Recoupment Balance of l Original Cost Cost(73%) Allocation% Allocation$ Allocation% Allocation$ Increased$ Allocation% Allocation$ Increased$ SEWPP Treatment Plant(SEWPP): Land Acquisition $ 6,675,192 $ 4,872,890 80/750 $ 519,776 120/750 8 779,662 $ 250,887 200/750 $ 1,299,437 $ 519.775 53,673,453 Site Cleanup 1,149,372 0 0 0 r Engineering: Preliminary 606,239 442.554 80/750 47,206 120/750 70,809 23,603 200/750 118,014 47,206 324,539 Siting Study 145,660 106,332 80/750 11,342 120/750 17,013 5,671 200/750 28,355 11,342 77,977 Final Design-180 mgd 6,285,146 4,588,157 80/160 2,294,078 80/180 2,294,078 180/160 4,588,157 2,294,078 Final Design-80.mgd 2,692,423 1,965.469 90/00 1,985,469 80/80 1,965,469 . 80/80• 1.965,469 Construction 728,232 531,609, 80/80 531,609 80/80 531,609 80/80 531,609 Construction 80.393,507 58.687,260 80/80 58,687,260 80/80 513,687,280 .80/80 58,687,260 138 KV Electric 1,895,900 1,238.007 80/760 132,054 120/720. 208.335 74,280 200/720 343,891 137,566 894,116 Construction Mgt. 6,102,064 4,454,507 80/80 4,454,507 80/80 4.454,507 80/80 4,454,507 - Audit Fees 25,150 25,150 80/80 25,150 80/80 25.150 00/80 25,150 $ 106,498,884 $ 76,911,934 $ 68.668.450 $ 69,031,892 $ 363,442 $72,041,849_$ 3,009,957 $4,870,085 Total Raw Water Supply and SEWPP $ 142,127,770 $ 98,772,847 $ 80,759,039 $ 83,766,161 $ 3,007,123 $91,028,996 $ 7,282,835 (a)Source: KPMG Audit of SEWPP Construction Coals as of November 30,1995. . • (b)The onrecovered costs anorthic expansion will be$4,870,085. • • • • • 9/12/2008 Olane%276%20Summery_90%25%20Modilled_4o%20W_Rev3%20082906(1).xis • EXHIBIT C3(200 mgd). . CWA BOND DEBT SERVICE-SERIES 1995 BONDS CONSTRUCTION OF 96"RAW WATER LINE RECOVERY OF PRIOR YEAR DEBT SERVICE Fiscal CWA Bond Series SEWPP Allocation Allocation to 80 Allocation to 126 Additional 46 MGD Allocation to 210. Additional 84'MGD Year 1995 Debt Service of Debt Service(1) MGD SEWPP(2) MGD SEWPP(3) Debt Service MOD SEWPP(3) Debt Service 1996 $ 2,808,990 $ 2,429,231 $ 809,744 $ 1,275,346 $ 465,602 $ 2,125,577 $ . 850,231 1997 2,809,890 2,616,289 872,096 1,373,551 501,455 .2,289,252. 915,701 • 1998 2,806,223 2,612,874 870,958 1,371,758 500,800 2,286,264 914,506 1999 2,806,705 2,613,323 871,108 1,371,994 500,886 2,286,657 914,663• • 2000 2,806,465 2,613,100 871,033 1,371,876 . 500,843 2,286,461 914,585 • 2001 2,720,039 2,532,628 844,209 1,329,629 • 485,420 • '2,216,049 ' 886,420 2002 2,723,914 2,536,236 845,412 1,331,523 486,111 2,219,206 887,683 2003 2,722,133 2,534,578 844,859 1,330,652 485,793 2,217,755. 887,103 2004 2,724,695 2,636,964 845,654 1,331,905 486,251 2,219,842. 887,937 2005 2,720,989 2,533,513 •844,504 1,330,093 485,589 2,216,823 886,730 $ 25,558,736 $ 8,519,578 $ 4,808,749 $ 22,363,886 $ . 8,945,559 with new raw water contract $0.00 1) Allocation of$45 million bond debt service to 96°raw water pipeline for SEWPP based on the following: Allocation of Costs After Cost(millions) Issuance Costs . Allocation 96°line construction cost(est) $ 40 3 $ 1.6 $ 41.9 Line"C°project cost(est.) 3.0 0.1 31 issuance cost,discount,accrued interest 1.7 (1.7)• - $ 45.0 $ - $ 45,0 • 2) Allocation to 80 MGD SEWPP based on the following: 96°Line Capacity 240 MGD . Module Capacity 80 MOD Module'!.of Allocation 33,33% 3) Allocation to 126 MGD and 240 MOD SEWPP based on the following: 96°Line Capacity 240 MGD 240 Module Capacity 126 MGD 210 Module%of Allocation 52.50% 87 50% 4) The balance of the unrecovered costs will be$3,194,849 through 2000 and varies annually thereafter • • • EXHIBIT D1 (200 mgd)(With Distribution Purchased Capacity for Transmission Allocation) SCHEDULE OF ACTUAL COSTS OF PUMPING/DISTRIBUTION DISTRIBUTION COSTS BASED ON NO RESIDUAL VALUES Estimated Protect Costs • • Distribution(Treated High Service Treated Water Line)* Water Pumping Total • Land Acquisition $ - i $ _ $ _ Site Cleanup - - Engineering: Preliminary - - - Siting Study - - - Final Design-160 MGD - - ' • - Final Design Construction - - Construction-12"Hall Rd. - • - Construction- 10" Plumley Construction-36" Beamer- 10,000 If(Original Beamer Rd.) 2,752,075 2,752,075 Construction-36"Beamer-26,000 If(bid+City costs 8/12/02) 9,796,047 - 9,796,047 Construction-New Pumping 2,712,212 2,712,212 Less: Original Pumps` (429,063) (429,063) Construction-96" Point C to Point D 1,823,009 1,823,009 Audit Fees - - - • Total $ 14,371,131 $ 2,283,148 $ 16,654,279 Capacity Purchased Existing Pipelines 32,000,000 55,000,000 Capacity Purchased New Beamer Rd.Pipeline 32,000,000 • Cost per Gallon-Existing Pipeline(96"C to D and Beamer) . $ 0.1430 • Cost per Gallon-New Beamer Rd.pipeline $ 0.3061 Cost per Gallon-New Pump less Old Pump • $ 0.0415 Incremental Cost-Original Capacity $ - $ 0.0187 Purchase of Original Capacity(Dist. "B to C") $. 0.0466 • Purchase of Original Capacity $' •0,1256 (See Exhibit D2 for Details) • $ 0.4957 $ 0.1858 The original pump costs were estimated to have been$1,560,230 per the Kalluri Group report dated March 5,2002. . 55 mgd/200 mgd was allocated. • • Diane%27s%20Summary_90%25%20Modified_No%20UV_Rev3%20082906(1).xls • 9/12/2006 • • EXHIBIT D2(200 mgd) CALCULATION OF UNRECOVEREO ORIGINAL CAPITAL COSTS ' RawProloct Otlgtnal Original JUn.00 Jun-00 Jun-00 I New Now Balance of Now Distribution(C to Odginai Cost(a) Cost(45%)(a) Allocation%(a) Ailo0Otion S() Allocation% Allocation$0 to C Increased$ Allocation h Allocation S Incroasod$ 0) Allocation% Distribution(Treated Water Pipeline): 32250 • PreliminaryEilginaeing - $ 1,132,802 S 509,761 225225 $ 58,640 250/750 $ 169,920 $ 113,260 250/750 $ 169,920 5 • S 20683 2501750 Final Design 1879,080 845,686 225/675 281,862 250/250 845,588 663,724 250/250 845.586 132287 250250 Construction 23,638,329 10,637,248 2251675 3,545,749' 250/250 10,637,248 7,091,499 250/260 10,637,248 250/250 S 26.650,211 S 11,992,595 _S 3,584251 `$ 11,652,754 5 7,768,503 S 11652,754 _$ $ 321,863,000090 Capacity Included In Costs • 250,000,000 Distribution Cost per Gallon $ 084860 $ $ 0.0570 i HS Pumping Original Original Jun-00 Jun-00 JUn-00 New New 200 mgd Costs Balance of u Original Cost(a) Cost(27%) Allocation% Allocation S Allocation% Allocation$ Increased S Allocation% Allocation S °urehased Cepaclt. Increased S HS PS(b) High Service Treated Water Pumping Land Acquisition S 6,675.192 $ 1,802,302 80/750 $ 192,248 200/750 $ 480,614 S 288,368 255/750 $ 612,783 $ 132,169 $ 1,189,519 Site Cleanup 1,149.372 0 0 0 0 0 0 Engineering: Prelfmmary 806,238 163,684 80/750 17,460 200r/50 43,649 26,189 286/750 55,653 12,004 108,032 Siting Study 145,660 39,328 80150 4,195 2001750 10,488 6,293 255/750 13,372 2884 25,957 Final Design-160 mgd 6,285.146 1,698,989 80/160 848,495 801160 848.495 160/160 1.696,989 848,495 846,495 Final Design-80mgd 2,692423 726.954 80180 725,854 200/200 726,954 200200 726,954 728,954 Construction 728,232 195.523 60(80 198,623 200200 196,623 200200 196,623 196,623 - Construction 80,393,507 21,708,247 80180 21,706,247 200200 21,706,247 200/200 21,708,247 21,706,247 138 KV Eteeirtc 1,895,900 457,893 80/750 48,842 2001720 127,193 78,351 255/750 162,170 34,978 295.723 Consbudfon Mgt 6.102,064 1,647.557 60/80 1,647.557 200/200 1.647,557 200200 1,847,557 1,647,557 . Audit Fees 25,150 80/80 200200 200200 $ 106,496,684 S 25,437,578 '$ 26,388,816 $ 25,787,819 5 359,201 S 28,818,348 $ "25,125.876 5 1,030,529 5 1,619,230 Capeclis Included in Costs 200,000.000 260,000,000 65,000,000 Pumping Cost per Gallon . 5 0.1289 S 0,1255 5 0.0187 Cost par gallon or Incremental w/o Final Design Costs 5 0,0033 0.1289 (a)Source:KPMG Audit of SEWPP Construction Costs as o1 November 30,1995. Original Cost HS Pumping Fully Alloc. $ 25,125876 • (b)The unrecovered high service pumping costs after this expansion will be$1,619,230. Less Cost of Original Pumps (1,560,230) (c)The uncovered 96"distribution coats after tills expansion will be 512,604,758. $ 23,565,646 Original Firm HS Pumping Capacity 200,000,000 Original Firm HS Pumping Fully Allot.Costs/gat $0,1178 Original Firm Fully Moo Costs+Incremental+New PI. 60.1858 • • • A 10M 12006 Olane'e Summery_90%Modlfted_NoUV_Rev3091608.rds • . EXHIBIT F CALCULATION OF TOTAL INVESTMENT BY PARTICIPANT Original Investment Investment Total Investment FY 2000 FY 2006 Investment Percent Gulf Coast Water Authority $24,373,666 $3,346,676 $28,151,400 $55,871,742 Less:Capacity Sold (11,540,553) (11,540,553) League City $12,833,113 $3,346,676 $28,151,400 $44,331,189 15 88% Webster 3,369,608 860,012 1,117,206 5,346,826 1.91% South Houston 2,848,968 853,507 261,000 3,963,475 1.42% Pasadena 17,093,807 6,358,195 28,451,365 51,903,367 Pius:Capacity Bought _ 0 850,000 850,000 , Pasadena 17,093,807 7,208,195 28,451,365 — 52,753,367 18.89% Harris Co.MUD#55 1,153,386 876,180 851,766 2,880,332 Plus:Capacity Bought 2,318,695 2,318,695 Less: Ownership Sold 0 (1,168,800) (1,168,800) Harris Co.MUD#55 3,472,081 (293,620) 851,766 4,030,227 1.44% LaPorte Area WA 4,831,404 1,141,744 542,880 6,616,028 Plus:Capacity Bought 3,425,120 3,425,120 Less:Capacity Sold 0 (2,550,000) (2,550,000) LaPorte Area WA 8,256,524 (1,408,256) 542,880 7,391,148 2.65% Friendswood 3,418,761 2,021,459 10,150,076 15,590,296 Plus:Capacity Bought 0 1,434,400 1,434,400 Friei 3,418,761 3,455,859 10,150,076 17,024,696 6,10% Clear Lake City WA 12,046,367 6,916,939 1,670,400 20,633,706 Plus:Capacity Bought 5,796,738 1,434,400 7,231,138 Clear Lake City WA 17,843,105 8,351,339 1,670,400 27,864,844 9.98% Baybrook MUD#1 1,650,470 324,272 125,280 2,100,022 0,75% Clear Brook City MUD 1,375,392 452,073 2,034,407 3,861,872 1.38% Co-Participant Totals $72,161,829 $23,150,057 $73,355,779 $168,667,665 City of Houston 67,040,991 3,973,245 62,461,043 133,475,279 Less:Recoupment Costs 0 (4,214,809) (1,447,600) (5,662,409) Less:Capacity Sold 0 (7,965,697) (9,294,422) (17,260,119) City of Houston 67,040,991 (8,207,261) 51,719,021 110,552,751 39.59% TOTAL NET $139,202,820 14,942,796 $125,074,800 $279,220,416 100..00% TOTAL COSTS $139,202,820 27,123,302 135,816,822 { r _ A Exhbis-200 mgd 020907 As 6/20/2007 Page 1 of 3 r.. EXHIBIT F(continued) CALCULATION OF TOTAL GALLONS BY PARTICIPANT Distribution Allocation Demand Pumping -�. Existing New r Allocation Allocation 96"B to C 96"C to D Reamer Reamer Gulf Coast Water Authority Original 16.5000 16 5000 18.1675 Capacity Sold Incremental Purchase 15.0000 15.0000 15.0000 15.0000 5.0000 5.0000 Subtotal 31.5000 31..5000 33.1675 15.0000 5.0000 5 0000 Webster Original 4.0500 5.8310 5..8310 Incremental Purchase - 1.8600 1.8600 1.8600 Subtotal 4 0500 5 8310 5.8310 1.8600 1 8600 1.8600 South Houston Original 3 7500 3.7500 3.7500 Incremental Purchase Subtotal 3.7500 3..7500 3..7500 0.0000 0 0000 0.0000 Pasadena Original 23.5000 31.0000 16..6675 Incremental Purchase 16.5000 21.7660 _ Subtotal 40.0000 • 52,7660 16,6675 0.0000 0.0000 0.0000 Harris Co.MUD#55 Original 3.4625 4.2520 4.2520 Incremental Purchase 1.3600 1.3600 1.3600 Subtotal 3.4625 4,2520 4 2520 1.3600 1..3600 1.3600 LaPorte Area Water Authority Original 7.8000 9 7500 0.0000 Incremental Purchase Subtotal 7 8000 9 7500 0,0000 0.0000 0.0000 0.0000 Friendswood Original 6.0000 8.5200 8..5200 Incremental Purchase 6.0000 6.0000 6.0000 9.6800 9.6800 9.6800 Subtotal 12.0000 14 5200 14.5200 9 6800 9.6800 9.6800 A Page 2 of 3 Exhibits-200 m9a_o2oso7.xus 6/20/2007 9 EXHIBIT F(continued) CALCULATION OF TOTAL GALLONS BY PARTICIPANT Distribution Allocation Demand Pumping Existing New Allocation Allocation 96"B to C 96"C to D Bawer Reamer Clear Lake City Water Authority Original 24.0000 36.5100 36..5100 Incremental Purchase 0.0000 0.0000 0.0000 Subtotal 24.0000 36.5100 36 5100 0.0000 0 0000 0.0000 Baybrook MUD#1 Original 1.8000 3.3750 3.3750 Incremental Purchase 0.0000 0.0000 0.0000 Subtotal 1 8000 3.3750 3,3750 0..0000 0 0000 0 0000 Clear Brook City MUD Original 1.5000 3„8455 3.8455 Incremental Purchase 1.0000 0.0000 3.8455 3.8455 0.0000 Subtotal 2 5000 3.8455 3..8455 3.8455 3.8455 0 0000 TOTAL(prior to City) 130.8625 166.0995 121,.9185 31 7455 21 7455 17.,9000 City of Houston Original 27.6375 76.6665 149.0815. 250.0000 32.0000 32.0000 Capacity Sold 0.0000 (21.0000) (31.7455) (21.7455) (17 9000) Incremental Purchase 41.5000 12.2340 Subtotal 69.1375 88,.9005 128.0815 2182545 10.2545 14.,1000 TOTAL 200,0000 255.0000 250.0000 250..0000 32.0000 32.0000 A Exhibits-200 mgd 020907 xls 6/20/2007 Page 3 of 3 Exhbit G Beamer Rd. and Related Transmission Allocation to Benefiting Participants .K a,„ZI' tt,tit'rrar�r%: E T y,(',,.,}�''k`.!':`i„`*�'0,,.: .iF>r9 � 6?�:1F '?�•OY.�1f�p6H£�.^.x,',., .*.i: Incremental :=:^ z'ii«�„ `'t:G •.=t�;;�s. U-�'= '!l ,.w.,;, ia s .:.: Existing Distribution Total Purchased+ai?l i. t l ittititi '°.<.�''.D striiautiai: Purchased >'*�-��" Participant (Contract Purchase) Distribution 3 4•Ci p: >EY I iP r taj i ii:Fy:w1; MGD Distribution Capacityc�"'s, ' Capacity(MGD) i. ;4§0,f tlV.fa );';1 ty,42;'t0.1:Gb)' (MGD) ,z ; c ,: ;.: '.' (33ea'r Yi0:1dc)s'ii>: F(42").: Friendswood 8.5200 6.0000 14.5200 ,xf:;K g;9 000,;-..rr'.r'; 4:840'0 =:' •,i���- iuc.-7:.„a,:'• t .Y•:L:ya:E�s�;.taa..'i a_: aL: ,• GCWAJLeague City 16.5000 0.0000 16.5000 s:`i5.P000. eg ..;::.:1;'-1:i 50.00'A;=;" $ Y :$ 1, Es r : f S Webster 5.8310 0.0000 5.8310 #ar1t860 tza' # 037310 < f i'lf ga `t Harris Co MUD 55 4.2520 lotroz3pb8' " t ,`,��.Fli ;8 2 4.2520 0.0000 ti 0+ ',;-: EuFuY'{n 9".'�'r,'Yi,`;e s: c,75;itiSS,i'-:?'3 _r:':^..,�,i1,4 Clear Lake City(25%of ° �- s i 1 :="�. -rk,:, 9.1200 0.0000 9.1200 4 ,. ; ' Total) r'. tlOr,t . -.>i::. 4wis(i ="'�r:.ze. a�'4i.lf�r•tYt��r1.�, l,�a+�+,�,S,�r Y,�'.l"NS4� day: ntril drR ,AIN>" TIY.1'FANS-i lgg. Saybrook MUD 3.3750 0.0000 3.3750 P:. O 000 ` ll's rx' 0 37S0 fenlrngrYgt.05 i F 1 .i, !Clear Brook MUD 3.8455 0.0000 3.8455 °z} �, 040,�f7; }'�"' i3O 0000v+ ,:i•��$L'.E;S;."`fir r_u;o. y,�; ,ssq�N,1„�•"a ,,: ail'h3fglitJ[ir;N�;s.'dinti7?7�i>+✓"'i7ii�iiijs'rF�':'. •.•':;'Zi•':; City of Houston 10.9000 0.0000 10.0000 TIV '.fY,gO i+•i��Fi T'AZ.0.2,5- ; '; • 7�?9„QM'i �° T.Mth:e4'�rfl, _„+1 5i�,i1Y'.':.;a i .!';', '':'?:: Totals 1 `�r.,r -:. 6i.4435 6.0000 � fi7.4435 .;�5r„,t��32.3�00v0<0��:';,::,;; �_,,�'�J%5238> ; Totals without Clear Brook or City of Houston P 's`,38;ii3OQNt ' Clear Brook MUD for Existing 96"and 36" ` '"' :435 ' City of Houston for Existing 96"and 36" 1 a 1;0 25,.;4.0 1°' ; Total with City of Houston and Clear Brook for Existing 96"and 36" O _t ;0;; CAPACITY 42"LINE'MGD) 43.5238 F--- . CAPACITY 36"LINE(MGD) 32.0000 • • EXHIBIT I CITY OF HOUSTON UNTREATED WATER FACILITIES'OUTSTANDING DEBT FACILITY COMPONENT Principal 6.7/1/200S 1 Coastal Water Authority(General) $198,625 000 2 Trinity River Authority(General) _ 6,000,000 $204,625,000 Less: '87P91 Issue 96°Initial Capital Payment 514,734,269 of$120,000,000 Principal Total(12.28%)times Outstanding Principal 0 7/1/2005 of$86 700.000 (10,646,760) $193 978.240 3 Coastal Water Authority(TRA/Lynchburg PS Upgrade)(General) 40 385,000 4 TRA-Current Lake Livingston Improvements 17,996 000 5 Aliens Creek Land Purchase 14,000,000 6 Lake Houston Dam/Reservoir Improvements 17,016,400 7 WaUisville Lake Project 10,077,550 8 Dayton Canal 5.150,000 Total Outstanding Debt: $298,603,190 ESTIMATED COST OF RAW WATER FOR EXPANSION TO 200 MOD GCWA/ Clear Brook Friendswood Pasadena GCWA/Peariand League City Raw Water Costs(Formula for Exhibit C) (Az/Da x C) (AZ/D2 x C) (AZ/Da x C) (Addo2 x C) (A2/D2 x C) (A2)Additional Demand Capacity(mgd) 1.00 6 16 5 10 5 (D2)Defined Year Average Day Production(mgd) 518.65 518 65 518.65 518.65 518.65 (Fiscal Year 2004 data) (C)Houston's Untreated Water Outstanding Debt (for period ending 7/1/05) $298,603,190 $298,603,190 $298,603,190 5298.603,190 $298,603,190 Additional Raw Water Capacity Cost Formula equals(NB)x C= Total Estimated Raw Water Demand Capacity Cost $576,304 $3,464,839 59,498,667 $5,767,070 $2,878,535 • ExhiGtts-200mgd O20907061207corxls 6/12/2007 Page 1 , • , , . • • • .• . ,;.;;.,,.i.:::..,v,,,,,.z...,,i....4,-.•-,..,: • ' E xhibit J - TransmissionLine Capacity Distribution Map • 200-mgd Capacity Distribution with Beamer Road Line Houston V •Total Capacity of 42"&36"Lines=75.52 mgd •Exist&Expansion Purchased Capacity=75.52 mgd(as of October 7,2005) tor.1:44...4&JL48 48=..a South Houston .....t.• Point B Point C SE 'PP 40" 96" •.151. Clear Lake City --- tv ..i,!if LaPorte Area - Water Authority OW&24') • -pasadena Water Authority r5,7 & Gulf Coast Point D &1-30..) (246 ...„ Water Authority • . V (10.00 mgd) . -6:42 1. 3s" Clearbrook Clearbrook ,etii(Scarsdale&Beamer) - .4/'. Clear Lake City (Han&Sage Canyon) iiia, , .e" ''''': (1.9210 mgd) . Water Authority mgd)l'P. 0( /9.12 mgd) 2-10'' PRVs., -c-,9 N----'454,_ 1 •7,,, rt,... Lodge Saybrook AINb‘s,<Zik,5:9 Apartments Malt ob..' 24' , Friendswood • cp. .% N a. , . :,.'T (9.68/0 mgd)* i'J,3. - eas urselv • .. 'W HC MUD 55 ' ; krt,". --__eli:Vo r1.4' N.119 (1.36/2.892 •"!, ri.,,,, '34- .:E'r Webster (Plumley) Friends wood ,z1,4, - (vo , D-142 (0.93/1.99mgd) • 76 2. (0/4.84mgd) th,. A.4, (10151 83 6•0• , 4R.‘ mgd) I Webster to' -:0.d.R Take Point (Magnolia) B (0. .98 mgd) 4-A , (1.5 mgd) Purchased Capacity ' Gulf Co/est '4)Gulf Coast Water V aybVater rook s Plant(6' ir) 93/1 4!?. 20.0Q_ Balance of Purchase 1. Water Authority (0/3.38 mgd) (5.00/0 mgd) -,;!i., ,.41, Authority Line Capacity(mgd) (0/18.50 mgd) S:\8138\43343-ADDEND\CO-PART DELIVERY POINTS\FINAL 2006\MAPF.dwg,9/11/2006 5:38:51 PM,hofiandJr MAPF.DWG . \ —P':',OCZ r—L..-)'. ./) C . k 9 1 ? // //// ` .g. . / / \ ---- \ f � • am--N_r,.. i, iN ,o ,s, ..5„, ,0 \ , .., . ,. ‘4.„ / \-- 2.>// co 4,i„ (1,, -1/ A ,� // Z 11 / `\ t�? . NCI:: .„. r - ., -,., •0 c..:;a1- 4% / \ \<.- 2 Att.#410c, % • i 4-0 \ 'Mtlir aef)\ - R. • 4/,-* (.., -P 40 y/ N'-..,\. -fit\ c.).A <9.,,,‹ . . i f413E A 4 fit rn �c G' F aS,r Qti�• i \- ...., \ * / 2.N=—eI S..4 4 1 ^O ... m , f ) \, i\ No• :L., Illy . 1 ..... , • • 4? ,,i6") \ . \/ 4:04 E. § 1 g s / i ci. Aa L Q / \ \ 1 Gulf Paims Pa .1 \ \ '�' `4 t._. \....1 z a ---- \ \\ I ALM AUA_ GENOA i \ \ \ IX \ \ is.' o KINGSPOINT _—_ x, > N \.1, "'"- 7 c .i re iiI o \ \ p i / ;veil y -lk. ca ,.., . ( - Yiy ��.�• j �<40 ) f evik ark arc �; �'�� FUTURE ., - \\ c-) o CONNECTION �� \ .,6>.�� `.?.. J,� 0 PEARLAND -• \\ \� �` S cC •,�'\ \,' . •\ a , te ~ ,�I 4- , `i-\/ ��� • 41 n 1,P mac ° G�' \ �P F `s Li 1 i/ $- K•.RKSHiR if k' . .. _ \ • Uia �� 1� KiRKDAL �-C99 �cz. 10 N \ y( r�� �`f\I K?RK`II MEADOW k �i.-, ep. ��� 11 j, ke \ pia`' .' K1PKi HOLLCAN ,ii r<9 c,1� s�1� �/z 1( .A� C5iF- k _ \ 70 ` ) 6-"s'''C:)'. .9C' N , spa. �rj C' C S \ Ct G% { 4' Sc. -: }t . ` � ,/ 7O . �� <` c, ,o` / o s .1. 16 ,�CO3, ,_ ,e „ ‹). g S 'MINT GULF COAST WATER AUTHORITY (GCWA) 4 FUQUA RD o BEAMER RD Rg CONNECTION POINT 5 M1 S:\8138\43343-ADDEND\CO-PART OEUVERY POINTSIFINAL 2006\MAP-GDC.dwg,9/11/2006 5:40:42 PM,hollandjr MAP—GEXAWG ,`r F j/ '�`h c \may „zt/ r {c't ‘).").100 T 43 6A," ).'1 4)))4 N.6. (16/.<.< 6' /F �' {<4 �l5 N. im--N--i•�- D �04) # 4,, �. k. / 0 - /b, , /,,, / ii 1 / /'`b, ���`�° �, � '> „-z' 15(b "\--'4, ,i....;.„c..) 5-7 NO.,c/\1\ /§t e t'k -- / * > C) 6\ / / / v r ' s \-0 00,.."---. z_ z �° , ---s- - ,'fin, `/ � ,� o may - \ \\\\ . .6),, 00 0 1/ 7 4/;// st"\)/. v‘',', ,'''''.A.' -‘i't•?'".: •,',-.',-,;,..4y,"--;-:,,,--,,,)r?,,.'.:,,%.,:,-‘‘nri.i.-',,'.--,f',-;.,:"47:1;;A;:i'iv.:,,•:.,-",'',A"zi::,..:/v -'4r.:;-..,f:'4?..';'1,,,''',.. .,:':•.,::V-.',';.:.,'f-f.','-:',"-scl.f.- •'4:'=;!,,r, ''' '..,'":',,,..:•'-);-'.1.,", b, 'EXHIBIT II .,.,..., ESTIMATED COSTS PER CO-PARTICIPANT ..- GCWA.- MARIANO ,Kv.;.. '..r., MGD Cost .er Gal. Char.! - Rebate ....:`,; ::-.SEWPP . ,. ..,.?„ Existing.Capacity- 0.0000 $0.0696 . .., $0 1... , Attied Capacity Neecied 10.0000 $1.3801 13,8014000 .';''= .;i:.• .40 Total SEWPP 2005 Capacity 1010000 613,801,000: 4: ...,:',..,„ .•., ' . ..,- .q...,..„. ..1,:•,.i.;Pumping ...,Existing.Capacity 0.0000 •$0 ;,...:.: ,14 incremental Capacity 10.0000 60..1858 1..858,000 , ..- . Total Pumping. 10.0000 $1,,858,000 .,•-,,,,Distribution •.....f.• Existirtg Capacity 0.0000. -. ..-: .?.1' 96"Line-Point C to Point D 0.00.00 .., . ...„... :::.. and Existing 36"-Beamer 0.0000 $0.1430 ... New 36" Bowler Lino 0.0000 60.3061 ,.,..... Incremental Capacity 96"Line - Point C to Point D -10.0000 S0 0570 .570,000',....„, New 3$" Beamer Line 0.0000 $0,3061 .....1.,,','. 96H•Line Point B to Point C 10.0000 $0,0466. 466 000 , . ..:.. Total Distribution 10.0000 $1;036;000 -.,;'..: 2...... ,..:Total Costs $10695,000 .;‘ , . 1.6675 MGD.is owned b GOVVA; - •,?.:,1 :t),.,4 ..,. ...,.. ,,...„.4,,,.,;.,..•.,.,..,... 4.:,..,:a.:.,.<,,g,'‘,,,,,..',`.".%. ',4,4';...•i. 4`i..,..„.":,",":.;,..,j-,;;;,,,, „,;,:,..=',,,,:.'.4,...,:•X-1,,-.',14",:',.‘4'?'%.".'':','".4."'!:'•:'.1..-`.... m '\--,ra.".,..'::'''':,.:-.. ".!7:,:f.17.;.1.1 ''.:4',7''' '. "'','j:..5.4:.‹U`.- ` ...ic'-,yr›:;-.'•-;', ..;-'',,.......•:,,,,-;,..,-*.:::,!,' ' '*.*:,f,::',--. •'-'1..,44ir, ,,,,'„,;:,,:t.:;,k,,-...,::,.. .:,,i •:,:•:cz,,,:-:. ,'i.-, --,,,.. . .,:,,,:i,,:,:AfsP,:.: ?•':`f.'s:.:''.., ".',;..:'-'..'k,:•*:'','';;?:'''':''•:-::<1`.:-' •';,`;;'.. ': .''" ' ''''Z1'—' ''''''''''' '' - '' ' s':•' '. '' '.": , :'''''."''''''r:. .• ' - ' . - '..'• A Dianes Summary_90 Modified_No UV_Rev_030607_do1061207cor.xls 6/12/2007 Page 1 of 1 ipi.....:Z.:.•1:".,"::,':';.:,;-0,- 'i'Y.T....V.%;.•,••;:',:.'r„''', .•.);,K4.>.,..;4',>"t4;'.•:.••?:-•'•.'".,,:.,,-•••,,--,?-:,•;;=.;..•,../,..r.•-., ••..----.:---cr.-•-,,',--,-•••--, ..,-,,,-,--2.-.,,,-,-- .:,.!,,:...i-.,: ,,!;:i.,;,•;,: EXHIBIT!! •,..:. 4 ESTIMATED COSTS PER CO-PARTICIPANT GCWA.- LEAGUE CITY „„,,.... -MGD 'Cost .er Gal. Cha .a/Rebate ..,.. „,ggSEWPP Existing Capacity 16.5000. $0,0696 .$1,148,400 :-::•:::, Added Capacity Needed 6.0000 61.3801 6 000 500 -,•,-. :, , .-..,..•.,--:, -.•,6,,.••:,<. ......;.•:,..... `-. ':.:-•'• Total SEWPP 2005-Capacity 21.5000 $8,048,900•,-i:).:f. •-•:.,jZ, -..,,,,,, •.*!:;;.-i Pumping .:i:-.:7••;... •••••••ti.c. ,•,;,-.:,,,,i• Existing Capacity 16.5000 SO•:'-. 4.;:,' '.!;:•• incremental Capacity 5.0000 $0.1858 '929.000 •••:' .., -:•••.,/,..,! ,.....•:.' Total Pumping .21.5000 $929„000 :•;,..,.-:-•••,;.• i•':. .i -';;k'.'• - • . . : -",•,,Distribution .:-.:.,•.-- ..',..i Existing Capacity 16,5000 *'•;:.-i..,,i.',•::. '''1...'..i ,••••.::." 96"Line-Point.Cta Point D and EXisting$W Elearneir 0.0000 $01430 - :...,:-•..,• • ‘••• " New•-36*Beamer Line: 0.0000 $0.3061 .:.•• :-.. •••••;.-..-". ':-•:::,.- Incremental Capacity . .. •;,;;;:,' -. ...:.:::;.: 96"Line- Point C to Point I) ....,,,w, '.•,;?,.; ...,-,...z• z.,...-,,•• and Existing 36ii&lamer. 5.0000 $0.1430 715,000 •:•••:''',•,'• t.!.:..,•,:f *..i,•,:•„: Now 36"Beamer Line 5.0000 $0.3061 I i530,600 .;----- ,.•,•.:ii•:,,• -.•••..?,- "96 Line Point B to.Point C 5.0000 $0.;0466 233,000 •'-!•"••', 0,.:•,....,•:„ .....•w.j,,. ...'••'• Total Distribution 21.500 $2,478,500 ..„- :f.,s,Total Costs $11,466,400 .:,,,I,.:•:• .v....,-„,- - • 6. •;,•,;:rf,;,.; .•.„....• '4;1^4.-''''''' '.l''''''V•'''‘'''''r"..;". ..Y,V1*.. ' •• Z: ''',...',1,.''''.".1 •',,..:'•..'*:,,%'.•...^ , ,.".;,'` ,..,,,:,•,,:1„ ,,, ,,:•—•,,,,'-,•,,,,,.,....,..?,,, ,ir..f., ,,• p..,,,,,..,i....4„...„*.,•%.-..f ,,,,,,,,s 1,1•,,;., ..,,.0.4 1,:,r t.• ,''.-.,• .,. , I:J.:.- ' -f.:.'''',!`:'"-..1.- s -:,--:,,f1',:'1,'' ' • ,• ' ',:v••••',.-'(' !',,,..1.• ..:4•..;,,,%',:',;•... ;...'.,..,'•<•••5:?,;; ',..,;?-•-•1:,'::.",?..?••.,/f:li -1-,„', ,x4eV7‘.'''',.; x',./.1.4 .''''.4",:','(X 1:".:'('.....1.4.4''i::' . •'''f :'"'''''.s'• '-'.V., ',' :' `,"•`':' A Dianes Summary_90 Modified_No UV_Rev_030807_do1061207c,or.xls 6/12/2007 Page 1 of 1 mmi lEibmz F____5Q1�!T f� ---`—" EI SCfTr ::_____ f • , , i 1 / /1 .,_ \! jffl . . In Lii- REDWOOD• ",iii / RAi4CE COLDSIREAM ' i � IFAIRBOURW; . I / b: z� Q GLENEAGLES WI EMU)/ GZ { L� T h_e � r r a -f—j o ( ti . as ` • > W CED ARL•Vv' / / 0 co 0 • PASADENA. r -OUST 4 GENOA -- RED BLUFF . ----— _ CONNECTION 'A" . • • I } gi 0o SEWPP 1,1 a c Q • oO n Q • • Z S Scale: (Huuebd Feet) adr . s EXHIBIT I Ei CLEAR LAKE QYY EAST OF SEWPP CONNECTION POINT N cn JNK d NO11.O3NNO3 3. £ 'ON 1Nd1d 213LYM g u13 � I uSIHX3 4 \ /7--. --- E �\ ` `\ cr•4��) \ \ \.,/ si of s d \ \' -f, \ 1 7 . \ - j (.: ZA \\ 1 \ \ I tg t ': N7 \ . ,_.,\ el !•p - • � � o 1 , d do•A 6 / �.�a a �,1 yr+ C- �T \ . ° /N. . '4"" , -&440,\--g}r -4\- , 0; \-5---g• ..,\Irp e ..,, , ,,,-,,,-At,„ .,,,, 4 4Ajo,-,) / it_.\\...laMi ^(1)rd � fl�-a • C} /\ //\/ \, /// • �4 - ///• / \\ / \ . > '\ N' • \ f r� 31 i 1% \, 6-. /— / � s. Nou33NNa� / / ` . .-‘1----- 41. ' -- ' / \\. / �� fS,0 0 11 / \, /-t - )y�' 0 EXHIBIT II ;n'... : ESTIMATED COSTS PER CO-PARTICIPANT :'`: `?" CLEAR LAKE CITY WATER AUTHORITY "',; MGD Cost per Gal. Charge/Rebate ;=. , SEWPP Existing Capacity 20.4500 $0.0696 $1,423,320 x'' ° Added Capacity Needed 0.0000 $1.3801 . :' = Total SEWPP 2005 Capacity 20.4500 $ 1,423,320 :'1:;' Pumping Existing Capacity 32 00000 - $ - , " Incremental Capacity 0.00000 $0,1858 - ', 1 Total Pum in 32.00000 $0 'f p g i,x4 r ;; Distribution •. r Existing Capacity 32.00000 ';.r 96" Line- Point C to Point D ., 1 and Existing 36" Beamer 0.00000 $0.1430 - " ' New 36" Beamer Line 0.00000 $0.3061 - <<' Incremental Capacity 'tf ' 96" Line- Point C to Point D .'` f`s and Existing 36" Beamer 0.00000 $0.1430 - •s :`' ""'` '. ' New 36" Beamer Line 0.00000 $0.3061 96".Line Point B to Point C 0.00000 $0.0466 - Total Distribution 0.00000. $0 Total Costs ' . $1,423,320 A Diane%27s%20Summary_90%25°l020Modified_No%20UV Rev3%20082906(1).xis 9/12/2006 EXHIBIT II .W� i ESTIMATED COSTS P.ER CO-PARTICIPANT �e'' x" CLEAR LAKE CITY WATER AUTHORITY JOHNSON SPACE CENTERfq,* ' r w. MGD Cost per Gal. Charge/Rebate „ �4 SEWPPtOd Existing Capacity 1.6000 $0.0696 $111,360N'i ' ,r Added Capacity Needed 0.0000 $1.3801 f-, . •b ' 'iga. 4 Total SEWPP 2005 Capacity 1.6000 $111,360 2e i i . ,, Pumping R; Existing Capacity 2.560 $0 ,xs:"'u Incremental Capacity 0.000 $0.1858 - aAr v}. Total Pumping 2.560 $0 --'fi : Distribution '-�1 Existing Capacity 2.560 ,..,l':' 96" Line- Point C to Point D and Existing 36" Beamer 0.000 $0.1430 — "" New 36" Beamer Line 0.000 $0.3061 - •Y : Incremental Capacity �, ;; 96" Line-Point C to Point D 1 and Existing 36" Beamer 0.000 $0.14300 - ""' New 36" Beamer Line 0.000 $0.30610 - 96" Line Point B to Point C 0.000 $0.04660 - .1 t Y 1Y ', Total Distribution 0.000 $0 t t w, ,Total Costs $111,360 , , j,l'-; A Diane's Summary_90% Modified_No UV Rev3 082906.xls 9/15/2006 -, EXHIBIT II . ' ;'.t` ESTIMATED COSTS PER CO-PARTICIPANT1. F ..; NASSAU BAY ,t 40, MOD Cost per Gal. Charge/Rebate SEWPP '4: ti:• N a`ht Existing Capacity 1.9500 $0.0696 $135,r 20 ` 'f_ �, Added Capacity Needed 0.0000 $1.3801 - .' .- '' Total SEWPP 2005 Capacity 1.9500 $135,720 "?�,e t�t Star r » Pumping , ,: Existing Capacity 1.95000 $0 : Incremental Capacity 0.00000 $0.1858 �c : a Total Pumping 1.95000 $0 ;A:. f . 'i 4 4,i':t tt r' Distribution fz}>; Existing Capacity 1.950000 96" Line-Point C to Point D °'{ <`` and Existing 36" Beamer 0.000000 $0.1430 — 4 ` New 36" Beamer Line 0 000000 $0.3061 - ' ` Incremental Capacity , 4,; 96" Line- Point C to Point D _ it 9 and Existing 36" Beamer 0.000000 $0.1430 - r' r, New 36" Beamer Line 0.000000 $0.3061 - i ':.`r' 96" Line Point B to Point C 0.000000 $0.0466 - J{,';. ' Total Distribution 0.000000 $ - • Total Costs $ 135,720 A . Diane's Summary_90%Modified_No UV Rev3 082906.xis - 9/15/2006. ii S �..� \ R E __�Ahli _ fig^ tc7, a/{ifY 1° �4'�. P�F' -V< t.P • o G IVY'9.,g4'5e� c ."E l&9, . #f- 9 p \I.:i• ,,,,(...e-, x\c?../ `'s\ <� �°{1i 052''k- • i� La I 5E,c `� c� i.relL �� 45 KlRKSH. � l#� 0 t KIRKDAi . # of • 4v } .l . 4 � a, l . s 4 � � f -5."4.?,k....\.q..4(4:.••,'''. —.Kt<IIRRKHHvAOLLELLOyY4 . / • 4411232 ,,-- ty 5,0 / / --- — .----t►: i: - 1ti�.. .—' sys.Oi' • s �/ .w � 14' G 6�.,, fro ., �q'p s/YJ#117- � `5''t -6} iZ'fi % C / G� • �-/�f y. '''' . %S' 'P'4!` /,,.-: - 3' 1-7 sir' G,Q•�'�j pC�piu� / if•F` 0 %;ir r 44 t52 . \ Cep �+'F�`�Y�. j`� / ? G', �\ .tie. �G� <7. 3gGt�^` L • PG O �kO 'O 7:5 /` ''i Q 4. D ,/` o �Oly ", '10� /0�ems,4���Fr , ��G /' m _ G Cad ` `O 'F P1/4/ { ;1►' 1 r / �� ;� ` Sag \ Oc"o {'.st3lp ' G 1 e ‘,_,,,,,m.,- 400;,_ \,:aiii. 7, ,,,,,sci, ,Niimi, . .{, , c., v. • , ,,, , ...., ..,...,..., ,s.4 ...,„/ ,-,..104, cc r;.,,M ' ), 1), er c,..' (c, ' AZ- . i At,.6,.i. 6�C:� 4,�� <<?` C�' t'� "p.G' o_ s 10 is gGr r0 �'? �� \`4r�C3� / ` (Hundred Feet) H oc d, c� / O'ta„'h`fkr • I '---MIBIT I CLEAR BROOK CITY M.U.D. o SCARSDALE BLVD. .AT REAMER RD. m p AND HALL ROAD AT SAGECANYON gi' 2 • CONNECTION POINTS m EXHIBIT II ' '- ESTIMATED COSTS PER CO-PARTICIPANT ,,, CLEAR BROOK CITY MUD .-.,,,, . MGD Cost per Gal. Charge/Rebate =; . SEWPP .,,, Existing Capacity 1.5000 $0.0696 $104,400 '{r, Added Capacity Needed 1.0000 $1.3801 1,380,100 -, (`, r' Total SEWPP Costs 2.5000 $1,484,500'`• -• :. Pumping Existing Capacity 3.8455 $0 • `' Incremental Capacity 0.0000 $0.1858 - ":_.• t Total Pumping 3.8455 $0 .°' Distribution �` Existing Capacity 3.8455 96" Line - Point C to Point D :> and Existing 36° Beamer 3.8455 $0.1430 549,907 .' New 36" Beamer Line 0.0000 $0.3061 - ;?-; Incremental Capacity 96" Line - Point C to Point D 0.0000 $0.1430 - . New 36" Beamer Line 0.0000 $0.3061 - 96" Line Point B to Point C 0.0000 $0.0466 - Total Distribution 3.8455 $549,907 - Total Costs $2,034,407 ; A Diane%27s%20Summary_90%25%20Modified_No%20UV_Rev3%20082906(1).xls 9/12/2006 I 4 FA RMONT I I a ---- ELf SCWI r I .J / c uni. REDWOO gm i r/ v� DADA z MO R: FG)FT _ 11I.fl RA(tiCEcat r.A!� / FAIRBOURN` / z GLENEAGLES fi1Dl.EEF1CLD ' cn� � t� �P srum ►- // / a z , �,Yti� 01 N \ 0 ri, zst a > to CEDAR ,W / S rr. z Q a 0 v f J- al PRSf L7EhA *-- = HOUSTON G p {� " GENOA •-BRED Buum __ _`—�=— 15' COASTAL STATES EASEMENT 80' H.C.F.C.D. EASEM 2, 13 —_-- CONNECTION `A'% ... C.W.A. 0 (3 EASEMENT SEWPP-- 115' H.C.F.C.D. g EASEMENT A u a i 0 0 JN 4 Z0. o Scale: EL FIELD ON o s ,o ,. C (Hunbsd Fug O a 8 - EXHIBIT I CONNECTION POINT y EXHIBIT Il ESTIMATED COSTS PER CO-PARTICIPANT LAPORTE MGD Cost per Gal. Charge/Rebate SEWPP Existing Capacity 7.8000 $0.0696 $542,880 . ; Added Capacity Needed 0.0000 $1.3801 `•+ Total SEWPP 2005 Capacity 7.8000 • $542,880 . Pumping Existing Capacity 9.750 $0 ; Incremental Capacity 0.000 $0.1856 - Total Pumping/Distribution 9.750 $0 . Total Costs $542,880 A Diane%27s%20Summary_9O%25%20Modified_No%20UV_Rev3%20082906(1).xis 9/12/2006 N i \ \ N. N �\� \ \ -... 1 <')// X . \ •Sel \,4"3: Ilk-'%c\‘-' \‹ /<0, q> % It ,,,- F° i��' AAA i '\A 7i ,` am �� ��,P' 1 o \ o -L �-=_` \ oo;; . /• j }! f \ Ne. \dG c�5� .,� C` ..„ G r l PGG r °/71 4.1/ 4 t \\ \ Q- � i,FEV (AVr\ 4 m AGE \\ 1fe'A �� 3.i r N \ /1-- 4 Irk i Whitcomb / N // J g / Scale: s 1! ems. 1n ../ i / e a��F.ev in � // s_ EXHIBIT I fl g HARRIS COUNTY M.U.D. No. 55 th CONNECTION POINT ii a lr- m In EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT HARRIS COUNTY MUD #55 MGD Cost per Gal. Charge/Rebate SEWPP Existing Capacity 3.4625 $0.0696 $240,990 ,F. Added Capacity Needed 0.0000 $1.3801 - ,'E'r Total SEWPP 2005 Capacity 3.4625 $240,990 Pumping • Existing Capacity 4.25200 $0;-y;ti Incremental Capacity 0.00000 $0.1858 $0 Total Pumping 4.25200 $0;1,1: Distribution -Alternative#2 Existing Capacity 4.25200 . °. ,s • F 96" Line- Point C to Point D F".. and Existing 36" Beamer 1.36000 $0.1430 194,480 ',-- . New 36" Beamer Line 1.36000 $0.3061 416,296 Incremental Capacity 96" Line- Point C to Point D 0.00000 $0.1430 - ;: New 36" Beamer Line 0.00000 $0.3061 - 96" Line Point B to Point C 0.00000 $0.0466 - Total Distribution 4.25200 $ 610,776 Total Costs $ 851,766 A Diane%27s%20Summary 90°1°25%20Modified_No%2OUV_Rev3%20082906(1).xls 9/12/2006 5:\8138\43343-ADDEND\CA-PART DEUVERY PDINTS\FINAL 2006\newmep.dwg,9/11/2006 5:42:05 PM,hollandir NEWMAP.DWG rep 07,i",vs..,.. n-rv�+!rr',. Ferri r _ :w a f �l'•i �Fj milling '� q� 3 Vt,9' 1 , a .� � + — K 4 -4r:.a L___ f , :9,.. ,.„ ,,r , `' . . ,,, ,,„.... :.i/vf, ,,\ A fircaszc— iti, ��' • @e al ,.i •-f— :, �ItiRAa'+xdl• ..m..+^'1 itt.tom} •7 % 64'..' ,r . of3B IL I & t •t, ,Its <e x -ro-- $—— ref• �i17M1 �\ F. I ' 4, r; ,,,....,.�iSN< ;�'1rt ,...n 2it{I'w.r • pi 14 j3L.0 MO a ', 1 Unix". t 1. . h }[ r = J h'.• .� r I Y • a �a a: 3 r, py t" { • .r 5 W.h d• \.I 5 N'n.,,,,,,,Z77,,,,_ ,tts • ,,, 1u . kit i!':. V illt3rt ;5-74: ,, i• , • ,, r 11 , it' "1 4';' T''''. 4; U • me, 7 • rr. 1 s. . t*@'o4,. d ,t3Tj• w `� d. It A 1 <,' PilS "t' 1 2 ,n e. a t • 1-8 i. * ' ,Ae..'Is t '� Mv ih, 4 in • ...,.0 catti,,,iii ,.„. iviiihih., �l 237 Ikt,'4 1 lltN ",+t �,':{ ram.' "'J, kSO4.ctt,Al■ k EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT �. . PASADENA ;e: x• MGD Cost •er Gallon Charge/Rebate . • SEWPP -,,,. i:2r • • Existing Capacity 23.5000 $0.0696 $1,635,600 4 Added Capacity Needed 16.5000 $1.3801 22,771,650 - Total SEWPP Costs 40.0000 $24,407,250`•, • Pumping 'Er Existing Capacity 31.00000 $0 :F, Incremental Capacity 21.76596 $0.1858 4,044,115 Total Pumping 52.76596 $4.044,115'r„x .t Distribution .:�,,,, 9Y :'_ Existing Capacity 16.66750 - 96" Line Point C to Point D 1$ ,ti? , and Existing 36" Beamer 0.0000 $0.1430 New 36" Beamer Line 0.0000 $0.3061 - '; :,. . • Incremental Capacity 96" Line - Point C to Point D 0.0000 $0.1430 - New 36" Beamer Line 0.0000 $0.3061 - 96" Line Point B to Point C 0.0000 $0.0466 - Total Distribution 16.6675 $0 • . Total Costs $28,451,365 • • A . Diane%27s%20Summary_90%25%20Modified_No%2OUV_Rev3%20082906(1).xls 9/12/2006 j 1 J L•, / �BONNIE • AMMO S _f c� 'f �. G. a 1 fKl C:? Por cc t- L---- fi . ,,c, G. , o IIIII AVE A AVE B . -. S EIC:R H' ! � , �► 1 co AVE D {:fi ,.... • . • (.?••1 . --1---- - .• A I eie,k EC e. , kn p - AVE F II - ?_ 1 AG L • Tr - , CONNECTION 'D' I «+ NEC ON 'C" t.ti'E III = _ 11 . ,,,€.ems l l I V% • ' 1111I AVir �� . I ti,1 AVE K 14 11., e- Nomom 4 �t S �`_�' C1\' - AVE t ERI$� • 4,is. Q4 AVE N , 1 _ _-------T-- __I } I t 4� O a\Qs° EMPRESSf. latelli Z 1 . r eeWQ r SS 1 ✓ EL:O� � G 1 i Itdenoi ROPER �� �� + I Pork / y SULPHUR _ w / 01:14.. N �pt;'3 �, 1 Nt. -- ! REGAL u , R `1 .v.0- h • I — 7 SHAWNEc - --.,, y\O�drl•-4s 1 c n 1 — r-� �' —� U ,LBY -. P K 4�4 1 Z x AS'LAKE ' ---- -- lra A A RVAi� � •12.3 - - i < GILPIN > / r— /orN Scale: ^ t(il$vCl iEii?v 'JI D 3 . ID ip E. t�s li� 1'O y (Kindred F ✓ f 6. a _MAN �!;� zm Ea �• , EXHIBIT I W c, CITY OF SOUTH HOUSTON 4 0 7th STREET el cd a CONNECTION POINTS . ',, • 4 EXHIBIT II ,'` ESTIMATED COSTS PER CO-PARTICIPANT SOUTH HOUSTON "'y' MGD Cost per Gal. Charge/Rebate "'` SEWPP °rrr- `= Existing Capacity 3.7500 $0.0696 $261,000 Added Capacity Needed 0.0000 $1.3841 - ;'4= Total SEWPP 2005 Capacity 3.7500 $261,000 , t., Pumping . Existing Capacity 3.75000 $0 Incremental Capacity 0.00000 $0.1858 - ;. : Total Pumping 3.75000 $0 j.,,, Distribution a ` . Existing Capacity ` -' a 96" Line- Point C to Point D ' ° , and Existing 36" Beamer 0.0000 $0.1430 - ,'` New 36" Beamer Line 0.0000 $0.3061 - incremental Capacity �b 96" Line -Point C to Point D ' .' and Existing 36" Beamer ' 0.0000 $0.1430 - • New 36" Beamer Line 0.0000 $0.3061 - 'ry 96" Line Point B to Point C 0.0000 $0.0466 - Total Distribution 0.000 $0 Total Costs $261,000 A Dlane%27s%20Summary_90%25%20Modified_No%20W_Rev3%20082906(1).xis 9/12/2006 U) m m SLNIOd NOLL33NNO3 LI INYIdy I3LMIA3ffN'3AY VfONNOd 1�aNV p Mid �Yi11 S A3 N 10 m Z v \ / 41 • OL Q 0 \ \ / INVld d31YM -‘' (\gi\e'l‘ . ,) .- • VfIONOYW \\' \\ .a. NOLLO3NNOJ \ \ \ \_ O a S�� \\ b. `./4 ' \ ��-�, a �a s�y `\ \ 4t*qb --* c \ \ X i\ � a d0 a ' _e V. NOLLO3NNO;3 Qo/ #V--'''> � b ��, r' s�."› adI\. t ":61dans \\ \\ / x .• / ."a3113 \z, ° I al/ ,-\ •\ / \, ,b�` / � \ / - z \ o / .-4 ' ,5-/ �� 0. /" ! / . ''''- ._,111110 _ .s� r�' \, / -)j`' c n, ., ,_ . ,'aN EXHIBIT IIr. ESTIMATED COSTS PER CO-PARTICIPANT WEBSTER MGD Cost •er Gal. Charge/Rebate SEWPP :; , - Existing Capacity 4.0500 $0.0696 $281,880 r;'. `, ' . Added Capacity Needed 0.0000 $1.3801 . $0 ;4 f, erk , Total SEWPP 2005 Capacity 4.0500 $281880 t5=-'• ''', Pumping Existing Capacity 5.831 $0 ,:is...' Incremental Capacity 0.000 $0.1858 - Total Pumping 5.831 $0 Distribution -Alternative#2 Existing Capacity 5.831 ••'V" 96" Line- Point C to Point D and Existing 36" Beamer 1.860 $0.1430 $265,980 •.. ,• New 36" Beamer Line 1.860 $0.3061 569,346 Incremental Capacity 96" Line- Point C to Point D 0.000 $0.1430 - • • New 36" Beamer Line 0.000 $0.3061 - ' 96" Line Point B to Point C 0.000 $0,0466 - Total Distribution 5.831 $835,326 Total Costs $1,117,206 A Diane%27s%20Summary_90%25%20Modified_No%20UV_Rev3%20082906(l).xis 9/12/2006 • • • • 5:18138 43343-ADDEND\cO-PART DELIVERY POINTSWINAL 2006\MAPE,dwg,9/11/2006 5:34:46 PM,h0llandIr MAPE.OWG . • • V; 5:1 /4..) ,,,. ./ '':X^ "-Y(''e • ! 3•-+i Y ..:1 N / (-/ (�� r CAS \ �c n cr / °4,'N\'' U*\ �5� ��,r ni/ s . /4/ A-.14,09, / • L . r — �+ ,�- ' C, as ;� y is -, • gyp -IJ :: : , . ,1 GI �.f.- y�'/ ��? N ~>�� 0 �9 ne• ar y\�tiCr O'` •`', g4 . r,s, .‘,„,, e,,,Av tin o 00 1 o • . et, . . a �UO� ►}/ gi / /.. �oo���b 11 �G/ iE f t \ `'' / � N"��0' • Il N . W 4 1NKKd NO11O3NNOO 000MSflN31211 J0 JLLp o I J IgIHX3 * $ 9 •) 6.1 (teeJ • • •-AWN >pa d 04. 0 \\< fl 'v> v Gi \\ �A Fiat u'a�t a ��,�rJ%, s� � a S ���� \• ���Z 'r �f�& 3 `6,�j0-, Yes (10 ` V.. ,4 CY 6.,(Z? e N "411011111' .b, JO 6-/ .. • 4, "' . t P, oni ,t'� 'tea ...,..Ai.xl k, \�` 1j� c, '��y =° �i G �y^� -a' 0 0 • • 'V.'. \� `Sofd, e r / may' ��� �o�"' — Aae�s '' , a° 0044..., 6.7 S.. E. s V -�'�,� pQ O 74�,f �. is) ? LL1 od 71, �'�in 3 t 11t�J . \ -1''iN K 7 a� 5 'y ..N., -t.,'lit* / . Ob .'. +6'1 I, 4, 4. 3J/ .a. NOl1O3NNOO -.�, ^� , opu t 4iiir r> ''xi ly ,%- -(0 • Y. JAY C' EXHIBIT II. ''4•�: ,. ESTIMATED COSTS PER CO-PARTICIPANT • FRIENDSWOOD , ry ; MGD Cost per Gal. Charge/Rebate , SEWPP ' ;•• Existing Capacity 6.0000 $0.0696 $417,600 , Added Capacity Needed 6.0000 $1.3801 8,280,600 • :. Existing Capacity- Costs Total SEWPP Exp Capacity 12.0000 $8,698,200 • z,. • Total SEWPP Costs ,':il' Pumping Existing Capacity 8.52000 $0 1 Incremental Capacity 6.00000 $0.1858 1,114,800 }`. Total Pumping 14.52000 $1,114,800 ;'` • Distribution -Alternative#2 Existing Capacity 8.52000 µ' • 96" Line - Point C to Point D 0.68000 $0.0570 38,760 "'r Existing 36" Beamer 0.68000 $0.0860 58,480 ,'•:`;, New 36" Beamer Line 0.68000 $0.3061 208,148 • ' . Incremental Capacity -... 96" Line - Point C to Point D 0.00000 $0.0860 • - New 36" Beamer.Line 0.00000 $0.3061 - 96 Line Point B to Point C 0.68000 $0.0466 31,688 . Total Distribution 14.52000 $337,076 Total Costs $10,150,076 A Diane%27s%20Summary_90%25%20Modified_No%20UV_Rev3%200:=%ga iifais Page 1 of 1 \ \ { \\ _ `tv" \ \\ / \ I \\ 0\ \\\ I \ C / vr �� • F, Z 0� \ /\ • � GAt. P�• � _ ` <,-. { S � _ t `1. CT 4, \9\ o X, -----\\ \\ . 7 N \\ \ / pG y \ mil' =..=..::.--- =--- ! 9h -=:a!,' `_'.-*_ \ \ Z;Q`a i \\ OC� Cc` \\•\ O , Qom\ \Cps - = = ` ' s \ \ .- S' V � ,fi�' erg, \`C O- /� \\ Vc' c3� / v { '� i.� {t -< O WS, , ' . i 0 g ` /GO`� Fk-- y��'�+0 .-A 6L '. -i--_ •- G I \ \ coO rr90E'n tq¢�, -- = • rn c j in w \\% 8i-mg8agP§Sa_.,E#e... ,,-;‘.,',"64,'1.4?V<9%4°.,'5.'-'\A 1 \\\\\ . \N4\.'C'0C'I',o ,,, ,G/ ':1'..Ci.,„\.`,.s..1„N 4K,,;,;'4-.-_- ,7 p jz \ . .�„ ... -_61.I—W::..,0cC, Scale: \\�'I03 \ G/ ZO o 5 10 t6 y\ OQ 5�, F cs "�' o L e11:u n (Hwdnd Feet) `� ,or' A0/ c'1'i ti. 0 T 0, v($- \\ Y A,Y C', S'ERiTA s — r r-- r EX :IT I 8 BAYBROOK M.U.D. Na 1: SAYBROOK SQUARE, 8. THE LODGE APTS., BAYBROOK VILLAGE DR WATER PLANT, McDONALDS, CIRCUIT CITY, AND LAKES OF SAYBROOK CONNECTION POINTS M ti m N EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT BAYBROOK MUD #1 . MGD Cost per Gal. Char.a/Rebate , '!:' 'SEWPP a::n. Existing Capacity 1.8000 $0.0696 $125,280 '�`'. Added Capacity Needed 0.0000 $1.3801 - .•`'ry• Total SEWPP 2005 Capacity 1.8000 $125,280 .. ,l. Pumping ; � Existing Capacity 3.375 $0 y y; Incremental Capacity 0.000 $0.1858 - • Total Pumping 3.375 $0 ,: Distribution Existing Capacity 3.375 96" Line- Point C to Point D and Existing 36" Beamer 0.000 $0.1430 - '` New 36" Beamer Line 0.000 $0.3061 - Incremental Capacity 96"Line-Point C to Point D 0.000 $0.1430 - New 36" Beamer Line 0.000 .$0.3061 - 96"Line Point B to Point C 0.000 $0.0466 Total Distribution • 3.375 $ • - Total Costs $ . 125,280 A Diane%27s%20Summary_90%25%20Modi8ed_No%20UV_Rev3%20082906(1).xls 9/12/2006