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. . e e Page 21: Pasadena requested language guaranteeing each Participant a pro-rata share of capacity in a Plant expansion equal to its Demand Allocation Factor for the Plant. Representatives of the cities arrived at language that gives each Participant the option to participate pro-rata in the expansion if the Plant cannot be expanded enough to meet all Participants I requirements. This new option is in addition to the right of each Participant to purchase whatever it needs out of any expansion that is unlimited, i.e., as large as the Participants as a group are willing to finance. Page 28, Exhibits B, F, E Pasadena, I Pasadena, IT Pasadena, and IT Houston: Changes at these locations of the Contract relate to the decision by Pasadena to take water only from the head works of the Southeast Plant. Therefore, Pasadena will not be paying for added capacity in the Treated Water Transmission Facilities or for maintenance of the Treated Water Transmission Facilities. Page 30: This change was not requested by Pasadena. However, we noticed that the definition of "H" needed to be modified to fit the formulation page 29. The intent of the Participants is that the periodic payments for operation and maintenance include an amount not to exceed 2 1h % for the Reserve Fund. We believe these revisions are beneficial to all Participants, and in keeping with our mutual decision to have all Participants sign the same agreement, we are asking all parties to approve this revised document. If you have any questions, please contact me at 713-247-1465. P.S. After the Participant meeting of October 18, a Friendswood representative contracted me and stated that page two of its Exhibit I map was missing from the exhibit package that was distributed at the meeting. I have attached hereto both pages of Friendswood Exhibit I. ~. E. W. Beauchamp Sr. Assistant City Attol1ley EWB:jdw U:\ WPFILES\PHIL. WPD cc: Gary Oradat Ben Simmons SeIWia 7~ ~aeu. @ Pmled an Recycled Paper