1987-11-09 Regular Meeting - Laserfiche WebLink

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e e .... -- Section 11.02 Pursuant to Section 3.03 of the Houston Contract, in the event that, Houston undertakes an expansion of the Southeast Plant, the Authority shall have the option of increasing its Demand Allocation Factor, its Pumping Allocation Factor, or both, by paying to Houston a sum or sums of money representing an additional capital con- tribution to the cost of such future expansion of the Southeast Plant (as defined in the Houston Contract) to increase its Production Capacity and its Pumping Capacity. Houston shall give one hundred fifty (150) days advance wr i t ten not ice to the Au thori ty of any proposed future enlargement or expansion of the Southeast Plant. Immediately upon re- ceipt of same from Houston, the Authority shall give written notice to the City and the other Participants of such proposed future enlargement or expansion of the Southeast Plant. At any time during the one hundred fifty (150) days notice period, the Authority shall be authorized to give notice of intent to enter into such agreement. The Authority will not give notice to enter into such agreement, unless it receives writ- ten notice from the City, or any other Participant, of its respective desire to increase its share of the Demand Allocation Factor or Pumping Allocation Factor. The Authority and the City agree, in giving or responding to any such notice, to act timely and in good faith in order to permi t an orderly enlargement or expansion of the Southeast Plant for the lowest cost reasonably obtainable without causing undue delay. The Authority and the City understand that the option rights provided to the Authority in the Houston Contract in this Section shall be limited to an allocation of capacity in the expanded Southeast Plant equal to or less than the then current demand allocations. Section 11. 03 If, in order to continue to supply the Authori ty -36-