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R95-74 12-11-95 • RESOLUTION NO. R95-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE, ON BEHALF OF THE CITY, A WATER PURCHASE CONTRACT BY AND BETWEEN THE CITY AND BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 16 ( "DISTRICT ") FOR PURPOSES OF PROVIDING POTABLE WATER TO THE DISTRICT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. Attached hereto as Exhibit "A" and incorporated herein by reference, is the Water Purchase Contract by and between the City and the District, for purposes of providing potable water to the District, which is acceptable to the City. Section 2. The City Manager is hereby authorized and instructed to execute on behalf of the City the Water Purchase Contract attached hereto as Exhibit "A" and to execute any other documents necessary to accomplish the intent and purposes of this Contract. PASSED, APPROVED and ADOPTED this the Fa-day of �/�y(� u , A. D., 1995. - /c ) A-- / ti TOM REID MAYOR ATTEST: )/ / kid 41/(-1° • Yi1 DA C. BENI EZ CIT SECRETARY APPrIVED AS TO FORM: i k /A& /Lc 4 ��•z AM 4 S McCULLOUGH CITY TORNEY • • WATER PURCHASE CONTRACT THE STATE OF TEXAS § COUNTIES OF BRAZORIA AND HARRIS § This Water Purchase Contract ( "Contract ") is entered into as of the 6th day of December, 1995, between the City of Pearland, a home rule city within Brazoria and Harris Counties, Texas ( "City "); Brazoria County Municipal Utility District No. 16, a political subdivision of the State of Texas, organized pursuant to the provisions of Article 16, Section 59 of the Texas Constitution ( "District "); and Peyton Martin, Trustee, ( "Developer "), a developer of land within the District. RECITALS WHEREAS, the District was created, was organized and exists for the purpose of furnishing water, sewer and drainage facilities and services; and WHEREAS, the City owns and operates a water supply and distribution system which is located in the vicinity of the District; and WHEREAS, Developer is the owner of land located within the District and is in the need of a supply of water to serve his land. NOW, THEREFORE, know all men by these presents that for and in consideration of the mutual promises, covenants, obligations and benefits hereinafter set forth, the District, the City and the Developer hereby contract and agree as follows: TGG\ 60931 .2 \WATERPURCHASECONTRACT3114 • • ARTICLE I WATER SERVICE Section 1.1. Provision of Water. The City agrees to furnish the District potable treated water meeting applicable purity standards of the Texas Natural Resource Conservation Commission, the U. S. Environmental Protection Agency and any other governmental agencies having jurisdiction in amounts sufficient to allow for the full development of all lands located within the District from time to time. The current land plan of Developer reflects that at full development, the District will contain customers utilizing approximately 800 equivalent single family connections of water service. Both the District and the Developer agree to use their reasonable, good faith efforts to keep the City apprised of development plans for land within the District so that the City may serve the District. Water shall be provided by the City at the times required by the District provided that the water trunk line described in Article II is constructed in accordance with the provisions of this Contract and thereafter conveyed to the City. Section 1.2. Points of Delivery. Water shall be delivered to the point or points of delivery agreed to by the City and the District (hereinafter "Points of Delivery "). At each Point of Delivery there shall be constructed a cut -off valve so that the transmission of water between the two(2) systems can be controlled. There shall be no meters constructed at the Points of Delivery. TGG\ 60931 .2 \WATERPURCHASECONTRACT3114 2 • • Water shall be furnished by the City at a Point or Points of Delivery between the City's water system and the District's water system at a minimum pressure of 40 pounds per square inch ( "psi ") under normal circumstances. Emergency failures of pressure or supply due to line breaks, flood, earthquake, fires within the District or other catastrophe shall excuse the City from this provision during such emergency. Section 1.3. Shortage. In the event of a shortage of water or if the supply of water available to the City is diminished, the supply of water to the District shall be reduced or diminished by the City in the same ratio or proportion as the supply to the City's other customers is reduced of diminished. In the event of any shortage, the City agrees that the District may obtain an interim water supply from any other source or water supplier during said shortage; provided the District shall give the City advance notice if the District is going to obtain water from another source. If the City is unable to resume a full supply of water to the District within a reasonable time, the District is authorized to obtain water from other sources on a permanent basis; provided the District shall give the City advance notice of its intention to obtain such new source of water. The City agrees to use its reasonable good faith efforts to notify the District in advance if the City knows it is going to incur a water shortage. Section 1.4. Metered Connections Within the District. Each water connection within the District shall be metered and each month the District shall provide the City with the District's TGG\ 60931 .2 \WATERPURCHASECONTRACT 3 • • calculation of the total amount of water consumed by parties within the District, as reflected by such meters. Section 1.5. Bills. Upon the City receiving the District's calculation of the amount of water delivered to customers by the District, the City shall invoice the District for such water in accordance with the provisions of Section 1.6. Section 1.6. Payment and Rates. The District agrees to pay the City for the water delivered by the City as calculated by the total amount of water metered at the meters within the District. City rate assessed by the C y to the District shall be one The monthly rat Y Y and six tenths (1.6) times those rates set by City ordinance for water service in excess of the minimum amount charged to Multi -Unit Residences. For example, Ordinance No. 679, in effect as of the date of this Contract, provides that Multi -Unit Residences shall be billed $1.41 per 1000 gallon usage for all water used in excess of the initial 2000 gallons of water use. Consequently, the District would be charged $2.26 per 1000 gallons of water passing through the meters located in the District. No other payments shall be due by the District or its customers for the City providing water to the District pursuant to this Contract. Section 1.7 Title to and Responsibility for Water. Title to, possession, and control of water shall remain in the City until it passes through the Point(s) of Delivery, where title to, possession, and control of the water shall pass from the City to the District. Section 1.8 Quality of Water. The City shall provide to the District water of the quality referenced in Section 1.1. TGG\ 60931 .2 \WATERPURCHASECONTRACT 4 • . Except as provided in Section 1.1, the City makes no warranty express or implied, regarding the quality of the water, including the implied warranties of merchantability and fitness for a particular purpose. Section 1.9 District's Water Supply System. The District agrees to use its reasonable good faith efforts to operate and maintain its water supply system in a manner that minimizes water leakage from its system. ARTICLE II WATER TRUNK LINE Section 2.1. Water Trunk Line. In conjunction with the initial development of Developer's land within the District, but in no event later than 24 months from the date hereof, Developer, acting on behalf of the District, shall complete construction of a sixteen inch (16 ") diameter water trunk line extending from the point reflected as point "A" on Exhibit "A" to the point reflected as point "B" or extending along such other alignment as the City and the Developer may agree upon (the "Water Trunk Line "). Such line shall be designed by the District's engineers; shall be designed and constructed in accordance with the requirements of all governmental agencies, including the City; and shall include a cut- off valve at the Point of Delivery. At such time as Developer lets the contract for construction of the Water Trunk Line, Developer shall notify the City and representatives of the City shall have the right to inspect the construction at any time. TGG\ 60931 .2 \WATERPURCHASECONTRACT 5 • . Section 2.2. Costs of Water Trunk Line The City, the District, and Developer all acknowledge that the Water Trunk Line is larger than is necessary to convey water from the City's water system to the District, but such line is being oversized to provide capacity for serving the lands outside the District that may be served by the City. In the event Developer was constructing a water line solely to extend water service to the District, such water line would be 12" in diameter. At such time as Developer advertises for bids for construction of the Water Trunk Line, he shall also seek alternate bids for constructing a 12" water line. Thereafter, based upon the bid accepted by the Developer for construction of the Water Trunk Line, the District's engineer shall submit to the City its calculation of the total increase in construction costs related to increasing the size of the Water Trunk Line from a 12" line to a 16" line, including engineering fees, construction costs, right -of -way costs, permit fees, and all other costs reasonably necessary for constructing the Water Trunk Line (the "Additional Costs "). Such calculation shall be subject to review and approval by the City. Within ten (10) days after Developer notifies the City that he is prepared to let a contract for construction of the Water Trunk Line, the City agrees to make available an amount of money equal to the Additional Costs. As construction proceeds, the City shall pay its pro rata share of each invoice for the construction costs of the Water Trunk Line directly to the contractor, which share shall be equal to a fraction the numerator of which will be the Additional Costs and the denominator will be the total costs of the TGG\ 60931 .2 \WATERPURCHASECONTRACT 6 Water Trunk Line. Upon completion of construction of the Water Trunk Line, Developer shall provide the City with a final accounting of the construction costs. The construction contract for the Water Trunk Line may provide that the contractor will look solely to the City for payment of the City's pro rata share of the costs. 2.3. Ownership of Water Trunk Line Upon completion of construction of the Water Trunk Line, Developer and the District shall execute a Bill of Sale, Deed or such other conveyance document reasonably acceptable to the City conveying all of their rights, title and interest in the Water Trunk Line to the City. Thereafter, neither the District nor the Developer shall have any rights to or interest in the Water Trunk Line, except the right for connect its water s the District (i) to con system to the Water Trunk Y Line at the Points of Delivery, and (ii) to receive sufficient water through the Water Trunk Line to service the full development of land in the District. ARTICLE III MISCELLANEOUS Section 3.1. Developer's Limited Rights and Duties Hereunder. The Developer is a party to this Contract solely for the purpose of assuming the duty to construct the Water Trunk Line in accordance with Article II. Upon completion of construction of the Water Trunk Line and conveyance thereof to the City, the Developer no longer shall be a party to the Contract and shall not have any rights or obligations hereunder. TGG\ 60931 .2 \WATERPURCRASECONTRACT 7 • • Section 3.2 Books and Records. The City shall have the right at any time by actual count or inspection by its authorized representatives or by checking and inspecting the books, records, and accounts of the District to determine the number of customers being served by the District's water system, the number of connections thereto, and the quantity of water being provided. It shall be the duty of the officials of the District to cooperate fully with the City in obtaining such information. The District's books, records, and accounts shall be open for inspection at all reasonable business hours by any authorized representative of the City. Section 3.3 Term. This Contract shall extend for a term of forty (40) years from the date of its execution and thereafter may be renewed or extended for such term or terms as may be agreed upon by the District and the City. Notwithstanding the provisions of this Contract, in the event the District finds a less costly source of water, the District may terminate this Contract upon one hundred eighty (180) days advance notice to the City. Section 3.4. Applicable Law. This Contract is subject to such rules, regulations, or laws as may be applicable to similar agreements in this State. The parties agree to cooperate in obtaining such permits, certificates or other documents as may be required to comply therewith. Section 3.5. Binding Contract. This Contract shall be binding upon the parties, their successors and assigns. The provisions of this Contract may be modified or altered only by mutual written agreement of the parties. TGG\ 60931 .2 \WATERPURCHASECONTRACT 8 • • • Section 3.6. Severability. If one or more provisions contained in this Contract shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Contract shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. Section 3.7. Sale of Water Outside Boundaries. In entering into this Contract the parties contemplate that the District will sell water solely to inhabitants of the District. Therefore, the parties agree that the District may sell water purchased hereunder outside its boundaries on a temporary or permanent basis only upon the prior written approval of the City. Section 3.8. Remedies. In enforcing the performance of the provisions of this Contract all parties shall have the right to the exercise of all procedures available under the law including, but without limiting the generality thereof, a writ of mandamus to command performance of any provision. No waiver of any breach or default of any provision of this Contract shall be deemed a waiver of any subsequent waiver or default. If any party hereto is the prevailing party in any legal proceedings against any signatory on this Contract brought under or with relation to this Contract, such prevailing party shall additionally be entitled to recover court costs and reasonable attorney's fees from any non - prevailing party to such proceedings. Section 3.9 Assignment This Contract may not be assigned in whole or in part by any party without the prior written consent of the other parties; provided, however, after notification to all TGG\ 60931 .2 \WATERPURCHASECONTRACT 9 • parties, the Developer may assign its obligations and rights to all or a portion of this Contract to any business entity of which Developer is a principal. Section 3.10 Notice Any notice required by any provision of this Contract shall be mailed to the following address: Brazoria County Municipal Utility District No. 16 C/O Coats, Rose, Yale, Holm, Ryman & Lee 800 First City Tower 1001 Fannin Houston, Texas 77002 -6707 City of Pearland Attention: City Manager 3519 Liberty Drive Pearland, Texas 77581 Peyton Martin, Trustee C/O Midway Companies 5200 San Felipe Houston, Texas 77056 Any party may change its address upon written notice to the other parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this Contract in multiple copies, each of equal dignity, on this the 6th day of December, 1995. BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 16 a f t t,s ; i ) cx__ Q) BY: President, Board of Directors ATTEST: Secretar , Board of Directors CITY OF EARLAND BY: Paul Grohman, City Manager TGG\ 60931 .2 \WATERPURCHASECONTRACT3114 10 • • • ATTEST 1 At Ali a , ' ' / e Ci cretary / E ON MARTIN, TRUSTEE TOG\ 60931 .2 \WATERPURCHASECONTRACT3114 11 =I j; j 1 I �I \1 I III". \ _ 1 FELLOWS FELLOWS , Clear Creek �f{ I } II OHA. • - ,I O.J t • `.: '••" " 11 S S •4t ' ,ion vAU10I11 e48' r. I BROOKSID • GUT .,ows 1\ 1 LIMIT Pop 1.47 C' am d - / K 'I KNAPP 7 ti 1 - " 1 Tom Bass '� Regional Pork I Christie 4 South Golf Course County �" I C et Coun Country Place 41 vL"at y q pR j a CD UHT � � I�� jr, `t" — � -. e‘ r [ UN ' N Country Club 1000 I 0 300 1000 2000 ,. . .. 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INC. ... • • II THE STATE OF TEXAS S COUNTY OF HARRIS § This instrument was acknowledged before me on fi r. c.e.w► bP_,,. 6, , 1995 by tl,g� A. 1'�'IacLDnw� 1v r ,,, a l -.-e.s;e,'C'" of Brazoria County Municipal Utility District No. 16, a political subdivision, on behalf of said political subdivision. ,ti GWEN BRIGGS Notary Public i n� for the i Pia State of T E X A' ' STATE OF TEXAS r' C O M M ? Name Printed or Tyy ,4 _ My commission expires: 2)1 1)g/ THE STATE OF TEXAS § COUNTY OF BRAZORIA § This instrument was acknowledged before me onfee yk /02,. 1995 by Paul Grohman, City Manager, of City of Pearland, a home rule city, on behalf of said city. o ,s,,q, ) Notary Public n and for the TOMMIE JEAN VIAL State of T E X A S . Notary Public . State of Texas // ` f "•c•` Commission Expires 2 -25-97 / / U/Y e c�e n Y i4 (.„.� »..���..�����. �. i Name Printed or Typed � a � ; �� My commission expires 1 THE STATE OF TEXAS § COUNTY OF HARRIS § This instrument was acknowledged before me onLl -, 1995 by Peyton Martin, Trustee. ,...,. .. > .r. Nota Pub c i n n a or the ariv GWEN BRIGGS State of T E X A S ryPWaW 4 STATE OF TEXAS Cr .r i Name Printed or Tx s 44 A MyCmnm.Exp 2/21/97 My commission expires: TGG\ 60931 .2 \WATERPURCHASECONTRACT3114 12