R-2014-042 2014-04-28 RESOLUTION NO. R2014-42
A resolution of the City Council of the City of Pearland, Texas,
authorizing the City Manager or his designee to enter into a Wastewater
Effluent Purchase Option Agreement with Third Coast Terminals, Inc.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Wastewater Effluent Purchase Option Agreement, a copy
of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is
hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest a Wastewater Effluent Purchase Option Agreement.
PASSED, APPROVED and ADOPTED this the 28th day of April, A.D., 2014.
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TOM REID
MAYOR
ATTEST:
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•i SE 'ETARY
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
Resolution No. R2014-042
Exhibit "A"
WASTEWATER EFFLUENT
PURCHASE OPTION
This Agreement is entered into this 28 day of heti f , 2014, by and
between the City of Pearland, Texas (hereinafter "City"), and Third Coast
Packaging, Inc., doing business as Third Coast Terminals (hereinafter"TCT").
Whereas: It is the intent of TCT to secure an alternate water source for use in
TCT's plant for various process applications; and
Whereas: the City has available effluent from the Barry Rose Wastewater
Facility("Facility"); and
Whereas: the City and TCT desires to enter into a Purchase Option Agreement for
the sale of treated effluent to TCT; and
Whereas: the use of the effluent purchased shall be used by TCT to reduce the
overall potable water use in an industrial application providing
additional potable water for use by the City;
NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged,
it is hereby agreed as follows:
1. The City hereby grants unto TCT, the Option, during the term of
this Agreement, to purchase effluent from the Facility. In
addition, TCT shall have a Right of First Refusal to purchase
additional effluent from the Facility; however, TCT must exercise
its right to purchase additional effluent within thirty (30) days
from written notification by the City that the City desires to sell
effluent from the Facility to a third party that has made an offer to
purchase effluent from the Facility.
2. As consideration to secure the Option and the Right of First
Refusal, TCT shall make a payment of$5000 ("Option Payment")
to the City within three (3) days following the execution of this
Agreement by both parties. The initial term of the Option and
Right of First Refusal shall be for a period of twelve (12) months
commencing on the _ day of , 2014 and ending on the
_ day of , 2015, provided, however, this Agreement
may be renewed for additional one year terms upon the written
agreement of both parties and the payment of an additional Option
Payment for each renewed term.
3. It is understood by both parties hereto that in the event TCT
exercises its option to purchase effluent under this Agreement, the
terms of said purchase will be governed by a separate Effluent
Purchase Agreement that must be executed with days
following TCT's written notification of the City of its intent to
exercise its Option. The initial price for effluent purchased as part
of TCT's Option shall be $0.64/1000 gallons, subject to price
adjustments every five (5) years as more particularly described in
the Purchase Agreement.
This option will become effective upon the signature and acceptance of both parties
and approval by the City Council ofthe City of Pearland.
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City o Pearland: Third A oast Terminals,Inc.:
City Manager - Ar-ohti.gt, Vice President
_1. 4),e/ # e. Grif Carnes
Printed Name Printed Name
04- ae . Ji/ _March 17, 2014
Date Date