R2007-112 2007-07-09 PF
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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.
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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.
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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
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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
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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.
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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
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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
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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 .
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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
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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
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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
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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
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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
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PARTICIPANT EXHIBITS
I. Maps of Points of Delivery
IL Schedules of Demand,Pumping and
Distribution Allocations and Costs
}
}
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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
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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%)
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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,
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•
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.
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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..
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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:
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.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.
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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,
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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
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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.
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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.
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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
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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.
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The Managing Participant Director is authorized to sell as available Pumping and
Distribution Capacity to Participants,
•
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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
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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
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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
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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
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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
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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)
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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
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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
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•
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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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)
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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
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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.
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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.
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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)
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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
(.:
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tg
t ': N7 \
. ,_.,\
el
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1
, d do•A 6 / �.�a a
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. ° /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.
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• 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
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i r/ v� DADA z MO
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/ FAIRBOURN`
/ z GLENEAGLES fi1Dl.EEF1CLD
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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
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EL FIELD ON o s ,o ,.
C
(Hunbsd Fug
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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 �\�
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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
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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
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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
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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,
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, 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
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,. 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
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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
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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 ..
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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