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HomeMy WebLinkAboutO-2006-2959 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 6. 2006 Requested By' S. GUlet! ~ Department: Public Works Appropriation Source of Funds: Fund 016 Account Number: 016-705-553-8085 Report: Resolution: Ordinance: x Amount Budgeted: $600,000 Exhibits: Ordinance Amount Requested: $542,880 Exhibits: Report on A2reement Budgeted Item: YES Exhibits SUMMARY & RECOMMENDATION ~ The City of Houston Southeast Water Purification Plant (SEWPP) is schedul~for an expansion from 120 Million Gallons per Day (MGD) to 200 MGD. Additionally, repairs and upgrades of the existing facility are also planned to improve operational efficiencies and comply with Surface Water Treatment regulations. The La Porte Area Water Authority (Authority) is not participating in the expansion, but its share of the repairs and upgrades total $542,880, based on ownership capacity (7.8 MGD). The Authority' existing capacity is estimated to serve the cities of La Porte, Morgan's Point and Shoreacres through 2030. The attached excerpt from the Report Regarding Proposed Expansion of the SEWPP, approved by the Authority Board on January 12, 2000 meeting, outlines the projected demands for its service area through 2040. The Authority Board, at its October 18, 2006 meeting, approved the attached Amendment to Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended). The Agreement changes ownership allocations with the Co-Participants and details costs associated with the expansion and repair/upgrades. Additionally, it formalized the recent change from contract operation to operation by the City of Houston, and imposes the same performance standards as the previous contract operator. The enabling legislation of the Authority requires the La Porte City Council to approve all contracts entered into by the Authority. Funds for this Project are available in the fund balance of the Authority. Action Required bv Council: Approve ordinance authorizing the Mayor to execute the Amendment to Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended). /ph06 I te ORDINANCE NO. 2006-~q~ AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT BETWEEN THE LA PORTE AREA WATER AUTHORITY AND THE CITY OF HOUSTON, APPROPRIATING THE SUM NOT TO EXCEED $542,880.00, TO FUND SAID CONTRACT, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The Mayor is hereby authorized to execute such document and all related documents on behalf of the city of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum not to exceed $542,880.00 from the City of La Porte Fund 016, to fund said contract. Sec tion 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 6th day of November, 2006. ATTEST: By: CITY OF LA PORTE ~~y~ Alton E. Porter Mayor ~dUJa O. ~ Martha A. Gillet City Secretary APPROVED: rytZU Knox W. Askins City Attorney 2 CITY OF LA PORTE PUBLIC WORKS DEPARTMENT Memo To: La Porte Area Water Authority Board From:Steve Gillett, Director of Public Works ~ CC: John Joerns, Interim City Manager Michael Dolby, Finance Director Date: 10/12/2006 Re: LPAWA - Additional Capital Cost Update I have previously provided reports on the Progress of the expansion and upgrade of the Southeast Water Purification Plant, as well as the cost estimates for the Authority's share of the upgrade (the Authority is not participating in the expansion). I will summarize the history of the cost estimate to the Authority, and then report on the recent progress made by the Co-Participants in reducing the scope and cost of the Project. The City of Houston originally informed the Authority of its estimated cost totaling $669,059 in December 2002. This cost was upgraded to $742,003 in March 2003, $784,756 in October 2003 and $833,181 in January 2004. In March 2004 the Authority's cost estimated was $904,800, and was expected to increase to over $1,000,000 by the time design was complete and bids issued. Co-Participants began questioning Houston on individual cost elements of the Project, and after several months, Houston supplied information on major elements of the Project. It quickly became apparent that several components that were previously presented as regulatory requirements were in fact Houston's estimate of future regulatory requirements, some as far as 10 years in the future. Additionally, it appeared that some security improvements were excessive for threat levels, and the Co- Participants began to demand input into the process. At the February 10, 2005 Co-Participant's monthly meeting, two committees were formed. The Technical Review Committee would review the need for various design elements, and recommend changes and/or reductions in scope. The Financial . Page 1 -----~ Committee would review the proposed cost allocation for each Co-Participant, as well as examine recoupment costs due to Houston from past projects. Because La Porte was not involved in the expansion, I volunteered for the Financial Committee, and was appointed chairman. Both committees met numerous times over the next few months, and eventually reduced the scope and cost of the Project, as well as identifying costs not eligible for reimbursement to Houston. The estimated cost to the Authority is now $542,880. The City of Houston has prepared a new Amendment to Cost Sharing Agreement (Restated and Amended) to reflect the proposed expansion, upgrade and changes in ownership allocation with the Co-Participants. The Agreement also incorporates the change in operator from contract to the City of Houston. The City of Houston has agreed to be bound by similar contractual language as previous contract operators, and has reduced contract operational costs significantly. The new contract also allows the Co-Participants to convert back to contract operations should the need arise. The City of Houston requests that the new Amendment to Cost Sharing Agreement (Restated and Amended) be approved by the governing bodies of the Co- Participants before January 1, 2007 to allow the Houston to bid the Project and award bids in the coming year. The Authority's share of the Project ($542,880) would be payable after bids were tabulated and apparent low bidder identified, but before award by the Houston City Council. Estimated time schedule is as follows: . Executed agreement with Co-Participants . Advertise Project . Open Bids . Funds Due from Co-Participants . Award Contract If you have any questions, please advise . Page 2 January 2007 February 2007 April/May 2007 May/June 2007 June/July 2007 PROJECTED CAPACITY DEMANDS The Consultant has indicated that the total demand for the new capacity is 43 MGD, but only 40 MGD will be available. To date, three (3) Participants have expressed a desire to obtain an option on excess Authority capacity. Should the Authority have excess capacity to sell, the price, as indicated by the new proposed Contract, is subject to negotiation. The La Porte Area Water Authority currently owns 4.2 MGD, with an additional 3 MGD available by August 2001. With a total capacity of 7.2 MGD, the Authority can meet its average daily demand, with a 2% growth rate, through 2040, and peak daily demand through 2025. Current demand (including groundwater usage) averages 3.6 MGD, with peak day at 4.5 MGD (See Table 3). TABLE 3 - LP A W A WATER DEMAND PROJECTIONS FLOW TYPE 2000 2002 2010 2020 2025 2030 2040 Daily Average 3.302 3.447 4.025 4.907 5.417 5.981 7.291 Daily Peak 4.513 4.710 5.501 6.706 7.403 8.173 9.964 Purchase of the Authority's percentage share of the expansion would cost $2,711,630, and would supply the Authority's average daily demand beyond 2050. However, the additional capacity would also result in 50% increase in O&M, emergency repair, and overhead costs that are allocated according to the percentage of ownership. These additional costs would be paid for over 25 years before the additional capacity is needed. With the transfer of the 3-MGD from Galveston to the Authority scheduled in August 2001, the need for additional capacity is approximately .6 MGD. This additional capacity will ensure that the Authority can meet its peak daily demand without exceeding its capacity. Additionally, the increased maintenance costs would only increase approximately 7%, and the Authority would have capacity beyond 2030. Original pumping capacity at the Plant totaled 225 MGD. The Expansion Study performed by the Consultant indicated that the firm pumping capacity, defined as the capacity after failure of the largest single pump, is 200 MGD, a reduction of 25 MGD. There are no plans to upgrade the pumping facilities to increase this capacity. 7 Due to the volume of this contract, a copy is available for your review in the City Secretary's Office. Signature page attached from La Porte Area Water Authority showing approval H:\EWB\SOUTHE.DOC AMENDMENT TO COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT (REST A TED AND AMENDED) (!6fL 7tJ1 r7l ~ ()t/:L7 Q119:2006 TABLE OF CONTENTS Page No. RE CIT ALS .. .................... a.................. .... a.. ..... a.. a. a.. ...... a. ..... a. a... ....... ........................... ........ ......... ..1 ARTICLE I D EFINITI 0 NS . a..... a........ ~.......... ... .... ...... a. a. a.... ....... ........... a.................... a... ..... a..... a... a.. .....2 ARTICLE II PAYMENT . ............... a....... ............ ........ a...... ........ .............. ... a... ............................... ... .......S ARTICLE III CONS TR U CTI ON............. ....... ................ .... ........... .................... a..... ................................6 ARTICLE IV MANAGEMENT AND ACCOUNTING FOR 200 MGD PROJECT COST .............................................................................................7 ARTICLE V SUBSTANTIAL CO l\tIPLETI ON....................... ..............................................................8 ARTICLE VI A CCESS TO PLANT AND RECORDS ..........................................................................9 ARTICLE VII UNTREA TED 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\EWB\SOUTHE.DOC 9/19/2006 C2 Calculation of Unrecovered Original Capital Costs C3 CW A Bond Debt Service 01 Schedule of Actual Costs of Pumping I Distribution D2 Calculation of Unrecovered Capital Costs for Pumping I 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 II Demand, Pumping and Distribution Allocations and Costs H\EWB\SOUTHEDOC 11 9/19/2006 Al\1ENDl\1ENT TO COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT (REST A TED AND AMENDED) THIS AMENDMENT TO THE COST SHARING AGREEMENT SOUTHEAST WATER PURIFICATION PLANT (REST A TED 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 FRIENDS WOOD and BA YBROOK MUNICIPAL UTILITY DISTRICT NO.1 (herein "Participants "). RECITALS WHEREAS, the Participants and the Managing Participant entered into vanous 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 (MOD) during 1986-87; and H:\EWB\SOUTHE.DOC 1 9/1912006 WHEREAS, 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 June 22, 2001 to increase the production capacity of the Plant to 120 MOD; 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 MOD 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 MOD Project" includes certain improvements to the Plant that will increase its Production Capacity to 200 MOD and the Plant's Pumping Capacity to 255 MOD. The "200 MOD 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 "Cl" and "Di" hereto. The 200 MOD Project is an "Other Project" as defined in Section 3.7 of the Restated Agreement. "200 MOD Project Cost" includes: a. Costs for facilities to increase the reliable capacity of the Plant from 120 MOD to 200 MOD to benefit only the Participants sharing in the increased 80 MOD H:\EWB\SOUTHEDOC 2 9/19/2006 capacity of the Plant, including engmeenng, 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 MGD" Columns, herein these expenses are "Pirm 200 MGD 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 Dl, 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"). H:\EWBISOUTHE.DOC 3 9/19/2006 Costs that are borne in common by paragraphs a, band c, such as engineering and auditing expenses, will be apportioned among paragraphs a, b and c based on actual construction costs for work describe in paragraphs a, band 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 for 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 "DI" and "D2." The Treated Water Transmission Facility additional capacity capital costs are shown on Exhibit DI 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-OO Allocation $ (B to C)". H:\EWBISOUTHEDOC 4 9/1912006 The Treated Water Pumping Facility additional capacity capital costs are shown on Exhibit D 1 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 $0.0570/gallon). ARTICLE II. PAYMENT Participants agree to make payment to the Managing Participant in the amounts shown on Exhibit II, except payment for the 200 MOD Project Cost shall be based on the bid cost of the H\EWB\SOUTHE.DOC 5 9/19/2006 200 MOD Project plus a five percent construction contingency of the bid cost plus other non- construction cost items included in the definition of "200 MOD 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 MOD Project from the Participants, it will award the construction contract and complete the 200 MOD Project. If the Managing Participant does not timely receive the funds necessary to construct the 200 MOD 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 MOD 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 MOD 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:\EWB\SOUTHE.DOC 6 9/19/2006 change order not being included in the 200 MOD 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 for the 200 MOD 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 MOD Project Costs. Funds from the account may be spent by the Managing Participant only for 200 MOD Project Costs. Within 90 days of the formal acceptance of the completed construction of the 200 MOD Project by the Managing Participant City Council, the Managing Participant Director shall cause an accounting to be made of the 200 MOD 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 MOD Project Cost paid by each Participant, and each Participant's actual share of the 200 MOD Project Cost and must be in accordance with good accounting practices and principles. If a Participant's share of the 200 MOD Project Cost, as determined by the audit, is less than the share paid by the Participant of H\EWB\SOUTHEDOC 7 9/19/2006 the 200 MOD 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 MOD Project Cost, as determined by the audit, is more than the share of the 200 MOD 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 MOD Project, the Managing Participant shall notify each Hc\EWB\SOUTHEDOC 8 9/19/2006 Participant Director within ten business days thereafter and designate a day for the initial operation of Plant at 200 MOD 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 MOD Project. ARTICLE VII. UNTREA TED 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\SOUTHEDOC 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 "E" Pasadena) are as follows: OTHER PROJECTS AL TERNA TlVE UNTREATED WATER PAYMENTS One Time Raw Water Capital Cost Payment Existing Capital: Contribution (Az/Dz x C) (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: (AZ/DI x E) (for fiscal year) (To be paid monthly for debt issued for new untreated water facilities.) Untreated Water o & M Expense: Same as provided in the Restated Agreement except delete the '(AlEx D) x (1 + H)' term and the '(I X F)' term but add the term '(A1fDl x B)' HIEWB\SOUTHE.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 UN'FREA TED 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 '(AlE x D) x (I + H)' term and the '(I x F)' term, but add the term '(AI x R)' where R is the Managing Participants contract rate for untreated water. As used herein: "AI" is the amount of treated water taken by a Participant during a fiscal year in excess of its Demand Allocation under the Restated Agreement. "A2" is 3,650 million gallons for the Gulf Coast Water Authority, 365 million gallons per year for the Clear 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) R\EWB\SOUTHE 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". "e" 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, Dt includes such raw water received at the Managing Participant water treatment plants as well as the billable quantity (including take-or- pay amounts as applicable) taken by the Managing Participant's untreated water customers, but excludes line loss by evaporation, leakage, etc. "Dz" 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 MOD Project. As defined herein, Dz 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. "E" 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 conveyor H IEWB\SOUTHEDOC 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 "E", "E 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. H.\EWB\SOUTHE.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. 3.4.4 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 "J". 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 AGREEl\1ENT The Restated Agreement and the Amendment are 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\SOliTHE.DOC 15 9/19/2006 ATTESTISEAL: By: Name: Title: .,(~ ../ //'>~.,i,/, 'C N D 1-1 k:o RrLI< C' <-- 'fY c.)f:.Cf:Zr::TI1~y H:\EWB\SOUTHE.OOC i /../ ~~ -/ / ( ',. t: THE CITY OF PASADENA BY:~~ P' Nam .-:]6H/U /VI,.. N L./J Uc Title: MA y C(:L 22 9/19/2006 ATTEST/SEAL: THE CITY OF SOUTH HOUSTON B~~d~tl~^~.~ N e: aricela Barrera "- Title: City Secretary Date: 08/10/2007 By: Name: oe Soto Title. Mayor Da Authorized: Date Executed: 08/08/2007 08/10/2007 NOTE: This Agreement is executed on the condition that the City of South Houston shall have 5.5 years (66 months), interest free, to pay the $261,000.00 detailed in Exhibits No. I & II. H:\EWB\SOUTHE.DOC 23 911912006 A TTEST/SEAL: ----. AS-- Name: Title: H ,EWB'SOUTHE DOC CITY OF NASSAU BA Y r:~~\ \ . By: i ,JJL 6, Name: Title: 16 IOHN D. KENNEDV 'CITY MANAGER CITY OF NASSAU, 9/1912006 A TTEST/SEAL: Q~~/ Title: Board Secret ary-Treasurer ~\\\\\Uftl"11. ~,.... ~"Tr/f I,~ ~~~'''''''''''''~4~- .,~ ~~.?'~.t '-T.f~ ==..., I :a :: ~3..\ ~ ~ =1: - ;,'\ ~- -:;.'" \ S ;:: ~ ..... ~ ~. ....-..... ~ ~~ * '!\'~ "IIJ'~Ul\\,,\1 H.\EWB\SOUTHE.DOC GULF COAST WATER AUTHORITY BY:~~ Name: W. W. Latimer Title: Board fresident 17 9/19/2006 A TTEST/SEAL: By: f/ cA:{~<re!~ -(Ji v '{_ Name: . / / Title: H:\EWB\SOUTHE.DOC CLEAR LAKE CITY WATER A UTHORlTY // \. /. By: . / ../ Ct.! Name: (j/ / Title: lE .lid 9/] 9/2006 A TTEST/SEAL: ; ~ HIEWB\SOUTHE.DOC rjli "'-, J 1"". CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT ~ By' N~e: J,M. E Title: ?FE. os. 19 9/19/2006 A TTEST/SEAL: By: Name: Steve Valerius Title: President By: ~~ Name: Alton . . ..... Title: Mayor ::P:;::::L Name: Knox W. Askins Title: City Attorney H:\EWB\SOUTHE.DOC THE LAPORTE AREA WATER AUTHORITY By: Name: Chester Pool Title: Secretary CITY OF LAPORTE By: vfJflJlffr4~- Name: Martha A. Gillett Title: City Secretary 20 9/19/2006 A TTEST/SEAL: By: (]L- CP ~-x- Name: Title: H\EWB\SOUTHE.DOC HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 55 Zl By: ~-<:'-fL/' Name: Title: 21 9/19/2006 A TIEST/SEAL: By: (:;Li;,~ ~1.. u Name: /,,~1 tl1-/~):.~- .s)-!~/.i.L- Title: c~~~ ~{!,~ e;'t1 H:\EWB\SOUTIiE DOC THE CITY OF WEBSTER /---... '"' By: " Name: PCA-A/1- ,fe't:';..C:- Title: )1 ,,1 YCI/Z- 24 p~)s <"" 9/1912006 A TrEST/SEAL: @"~ J^ I ' B~ f(;~d ~2-'tP; Deloris McKenzie, CMC City Secretary Date: 11/21/06 H:\EWB\SOUTHE.DOC THE CITY OF RIENDSWOOD c--~ ( .1 B~V-t/~ -navid J.H. Smith Mayor Date: 11/21/06 25 9/19/2006 ATTEST/SEAL: By:~~A~ Name: DAl..)/t> {<.W5"l4A Title: 51::(..~ej/ij...Y ...~ \\,\,,,ttt""tt,~ "'\\\n~\.. urlL!'r ""'" " r\'{ .,~"'"'''' Y ^ ~ " ....'-1 .......'(""0 ", ..... v" ~ ~ ~ ..,..';,~~" \ ~. " 0 /:.... ~ ~ ~ ~)/,'>. .<r..t,'\."'~~ , "'~ t,e . ^"\~ ~ g -'::.::' {f.J.." ?'~...(.\ c=; S = ('iO~ -.: ;0 y', .:.lo ~= ~ (j;. /r" .', 0 :: - ..,.. ,'. ,..\ ..... .,~ 0..... !IIIo \"1'.6-,..: .....1 ~ ~ TEX~ _..~ "'" ~o(It' ""1. ..a'i It,,,,.,,,.,,,,...- H:\EWB\SOUTHE.DOC BA YBROOK MUNICIPAL UTILITY DISTRICT NO.1 ,.,,~ ~ ( I' ' ! ". ." , By: eLl' L l . [ Name: ()A.\./d) A, CI..)fC/)/I'V' Title: f' (( f:: 5 II) E IV T 26 9/19/2006 City Secretary APPROVED: ;8# qc ~ cfJzt:U~J-7e/>r Director, Public Works and Engineering Department APPROVED AS TO FORM: 'ifl;(~ " ~.. Assistant City A~ey L.D. File No.l'} ~OC> 5'{}CJ () ~Or ~() I &e.> - CJ 1/ HEWB'.sOCTHE DOC CITY OF HOUSTON, TEXAS /311 W~ Mayor COUNTERSIGNED BY: ~~.?~ City Controller~~'~ DATE COUNTERSIGNED: ~-,,</-t!/ 27 9/19/2006 FORM 132.M (Approving! Authorizing) , ~S2117 City of Houston, Texas Ordinance No. ~tltJJ- Y,;:/7 AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO THE COST SHARING AGREEMENT FOR THE SOUTHEAST WATER PURIFICATION PLANT BETWEEN THE CITY OF HOUSTON 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 LAPORT 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 BA YBROOK MUNICIPAL UTILITY DISTRICT NO. 1; CONTAINING PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY. * * * * BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HOUSTON, TEXAS: Section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this Ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of Houston. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The Mayor is hereby authorized to take all actions necessary to effectuate the City's intent and objectives in approving such agreement, agreements or other undertaking described in the title of this ordinance, in the event of changed circumstances. Section 3. The City Attorney is hereby authorized to take all action necessary to enforce all legal obligations under said contract without further authorization from Council. Section 4. There exists a public emergency requiring that this Ordinance be passed finally on the date of its introduction as requested in writing by the Mayor; therefore, this Ordinance shall be passed finally on such date and shall take effect immediately upon its passage and approval by the Mayor; however, in the event that the Mayor fails to sign this Ordinance within five days after its passage and adoption, it shall take effect in accordance with Article VI, Section 6, Ho~ston City Charter. PASSED AND ADOPTED tbis /5!ifday of ~ 20 () 7 APPROVED this _ day of , 20 - 1 - FORM 132.M (Approving! Authorizing) Mayor of the City of Houston, Texas (Prepared by Legal Dept. (EWB ajj 07/31/2007) Assistant City tomey "-. (Requested by Michael S. Marcotte, Director, Public Works and Engineering Department) (L.D. File Nos.0800S000S9001-11) Pursuant to Article VI, Section 6, Houston City foregoing Ordinance is AUG 2 1 (nO? AYE NO MA VOR WHITE .... .... COUNCIL MEMBERS ,/ LAWRENCE ~r<< JOHNSON ~ CLUTIERBUCK ,/ EDWARDS AI WISEMAN v KHAN HOLM GARCIA ALVARADO BROWN LOVELL NORIEGA GREEN BERRY CAPTION PUBU$HED IN DAlLY COURT CAPTION ADOPTED REVIEW ,..~JJG'''''~1- 2007 DATE: ~;:;,.,.f'-" - 2- MAY 017 Rev.M)4 ADDENDUM TO OPERATIONS AND MAINTENANCE FOR THE SOUTHEAST WATER PURIFICATION PLANT A. Operation and Maintenance Services bv Manas!ine 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. B. 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 IbslMG Lime - 150 IbslMG Caustic - 15 IbslMG Polymer - 30 IbslMG S:lpweshareIPLANSEC1\Waler Supply and COSI Sharing ComractslTreated Water Supply ComractslSoulheasl Plamlsoulheast expansion contraclloperatlOns addendumIADMSEWP091206accepled.DOC 1 September 12.2006 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 Brazoria Texas Metropolitan Area. C. Fines and Liquidated Damae-es. Any fines imposed by the Texas Department of Health, TCEQ, EP A 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. S:lpweshareIPLANSECT\Water Supply and Cost Sharing ContractslTreated Water Supply ContractslSoutheast Plantlsoutheast expansion contract\operations addendurnIADMSEWP09l506accepted.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 [2] - 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). p. 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. V oting 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;lpwesharelPLANSECnWaler Supply and Cost Sharing Contracts\Treated Water Supply COnlracts\Southeast Plant\southeast expansion contraclloperalions addendum\ADMSEWP091206accepted.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 wear and tear during the Service Term. The Managing Participant shall ensure all equipment is fully 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\PLANSECT\Water Supply and Cost Sharing Contracts\Treated Water Supply Contracts\Southeast Plant\southeast expansIOn contractloperatjons addendum\ADMSEWP09 I 206accepted.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 FMT5101 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 Treatment 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 Treatment 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 Term 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. S:\pweshareIPLANSEC1\Water Supply and Cost Sharing ContractslTreated Water Supply ContractslSoutheast Plantlsoutheast expansion contractloperations addendumIADMSEWP091506accepted.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; . Utilize 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 9/1 5/2006 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. This 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/] 2/2006 ATTACHMENT A O&M SCOPE OF SERVICES . Responding immediately to emergency or disaster situations in a manner equal to or 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 Treatment 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 Treatment 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. This 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 Texas 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 9/1 2/2006 ATTACHMENT 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 m 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 FMT5101 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 Treatment Facility. . The Managing Participant will be responsible for maintaining the physical facilities of the Treatment Facility. This 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 m paved areas to keep cracks and joints clear of vegetation; 10 9/12/2006 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 summanzmg 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 OAe to verify operation and maintenance issues, or document special circumstances. I) 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 SEWPP 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 SEWPP 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 all 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. 12 9/1212006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Qualitv Performance Standards 4. Compliance monitoring parameters which are currently effective and required at the SEWPP (Entry Point 002 in PWS 10 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 all parameters associated with the Surface Water Treatment Rule (SWTR). 6. Current TCEQ approved TlO 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 CaCOa 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 13 9/J 2/2006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Qualitv 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 B. Filtered C. Distribution (see Table 1 -Item 15 for limits) D. Raw Weekly Weekly Daily Daily 3. Total Coliform Counts A. Raw B. Settled C. Filtered D. Distribution (see Table 1 - Item 14 for limits) Daily Weekly Weekly Daily 4. Giardia and Cryptospordium Monthly A. Raw B. Distribution (see Table 1 -Items 27 and 28 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 (HAAs) (see Table 1 - Item 26 for limits) A. Distribution Biweekly ]4 9/1212006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Qualitv 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 A. Raw (Once/day) B. Settled C. Filtered D. Distribution (see Table 1 - Item 18 for limits) Every 4 hours 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 9112/2006 ATTACHMENT A O&M SCOPE OF SERVICES Parameter/location 8. Fluoride A. Distribution (see Table 1 - Item 21 for limits) 9. Filter Profile (Each filter element) 10. Chloride A. Raw B. Distribution 11. Calcium A. Raw B. Distribution 12. Ammonia A. Raw - Total B. Distribution - Free (see Table 1 -Item 28 for limits) 13. Chlorine Residual- Free and Total A. Raw B. Settled C. Filtered D. Distribution (see Table 1 -Item 13 for limits) 16 Frequency Daily Weekly Daily Daily Daily Every 4 hours 9/1 2/2006 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 Uquidated Frequency or Maximum of Damages up to a Point of Monitoring Reason Data Monitoring $10,OOOIday Total Maximum of Parameter Compliance Value (1) Freauency Needed Responsibility $l,OOOIdav Total 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. dailv 2. Turbidity Individuallilter 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 W~hin 15 Intervals not Certified X effluent lines following a filter backwash and minutes exceeding one Operator recovery to less than 0.100 following a minute. report NTU within 15 minutes from filter daily initiating Iilter 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 Waler Treatment Rule Daily Daily lor Certified X virus Pump Station requires a total of 3 log Giardia demonstration Operator inactivation discharge and virus (4 log) ofCT removal/inactivation compliance for each parameter Provide a minimum of .5 log Daily Giardia and a 2-log virus inactivation using disinfectant residual 6. Temperature Raw Water Degrees C Daily Lowest value Certified X each day for Operator CT calculation 17 9/1 2/2006 ATTACHMENT A O&M SCOPE OF SERVICES -- 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,OOOIday Total Maximum of Parameter Compliance Value (1) Frequency Needed Responsibility $l,OOOIday Total 7. Peak Hour Flow High Service MGD Daily Highest value Certified X Pump Station each day for Operator discharae 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 TCEO X Water chemical coagulation Approved addition compliance Laboratory 10. TOC- Raw Influent to Report Weekly Enhanced TCEO X Water Treatment coagulation Approved Module conloliance Laboratory 11. TOC- Treated High Service Report Monthly Enhanced TCEO X Water Pump Station coagulation Approved Discharae compliance Laboratory 12. TOC- Treated High Service Report Weekly, Enhanced TCeO X Water Pump Station Actual Plant coagulation Approved DiSCharge compliance Laboratory 13. Chlorine High Service 2.50 mgll (minimum) to 3.90 Continuous Grab samples Certified X Residual Pump Station mgll (maximum), +/-0.10 mgll 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 free 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 Not detected 100% of time. In Daily Daily based on TCEO 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 neaative. 15. Hetrotrophic High Service Less than 25 colony forming Daily TCEO X Plate Count Pump Station units; R2A; 5 days, 26 degree approved (HPC) discharge C; or other method approved by laboratory Owner 16.Fecal Coliform High Service Not detected 100% of time. In Daily Daily based on TCEO 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 neaative. 17. pH High Service Maintain pH greater than 0.00 Continuously Daily Certified X Pump Station to 0.20 + Stability pH (pHs) not Operator discharae exceedina a oH of 8.60. 18.pH High Service Report Daily Daily grab Certified X Pump Station samples Operator discharae 19.Alkalinity High Service See Langelier Index Daily Daily Certified X Pump Station requirements Operator discharae 20. Manganese High Service Less than 0.050 mglL Once Per Once Per TCEQ X Pump Station Month Month approved discharge laboratorv 21. Iron High Service Less than 0.200 mglL Once Per Once Per TCEQ X Pump Station Month Month approved discharae laboratorv 22. Fluoride Clearwell 0.850 +/-0.100 mgIL Continuous Once per day Certified X Operator 23. Arsenic Raw Water Report Monthly Monthly TCEQ X approved High Service Report Monthly Monthly laboratory X Pump Station discharae 24. TTHMs High Service Less than 64.0 uglL daily max. Twice per Twice per TCEQ X Pump Station month month approved discharae laboratorv 19 10/1 112006 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 discharae I laboratorv 26. Giardia (2) High Service Report Monthly Monthly grab EPA Method X Pump Station samples 1623 or most discharae current method 27.Crytosporidium High Service Report Monthly Monthly grab EPA Method X (2) Pump Station samples 1623 or most discharae current method 28. Free Ammonia Plant Influent Report Daily Reported daily Certified X Operator High Service No more than a 0.500 mg/L as Daily Reported daily X Pump Station N increase over plant influent discharae 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 discharae 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 Weeklv Weekly 31. True Color High Service Less than 5.0 Pt Co Units Daily Daily Certified X Pump Station 100% of the time Operator discharae (1) Absence of data to demonstrate compliance with these requirements shall be assumed to be non-compliance unless Managing Participant can demonstrate that the perfonnance 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 mgl/. 20 10111/2006 ATTACHMENT A O&M SCOPE OF SERVICES SCHEDULE 1 Treated Water Quality Performance Standards TABLE 2 RAW WATER QUALITY TREATMENT PARAMETERS. Parameter -NTU as CaC03 as CaC03 Minimum Value 1 60 60 7.0 60.0 5 0.1 10.0 1.0 <0.01 1 100 <0.03 5.0 1.0 <0.01 <0.03 <0.01 1.0 100 2 o <0.01 Maximum Value 120 150 150 8.5 10.0 35 1.2 55.0 6.0 0.60 40 500 3.0 50.0 6.0 0.30 2.50 0.30 15 350 50 2 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. 21 101J 1/2006 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 mad EXDsnsion 120 mad Total Forebay $ 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 8,773,994 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 & Filter Complex ~ 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 D1 ) - - - - 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) - - Control/Electrical Com pies (Architect 4,343,486 - 4,343,486 4,343,486 - 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 EXHIBIT C1 (200 mgd ) SCHEDULE OF ACTUAL AND ESTIMATED COSTS FOR PLANT A Diane"lo27s"lo20Summary_90"Io25%20Modified_No%20UV _Rev3%20082906(1 ).xls 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 mad Expansion 120 mgd Total Engineering - Cost Allocation Analysis $292,674 $37,100 $329,n4 $38,074 $2n,445 $14,256 $329,n4 Storm Sewer System Hydraulic AnI: 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 CFD Modeling (GST's & UV Inlet) 45,696 5,792 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 Storm water Pollution Prevention 20,471 - 20,471 - 20,471 - 20,471 Technical Review Committee 21,300 2,700 24,000 2,nl 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 355,000 45,000 400,000 46,182 336,527 17,291 400,000 Balance of Amendment #2 - Additio 1,030,637 130,645 1,161,282 134,074 9n,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 1 2,123,045 269,120 2,392,165 276,185 2,012,571 103,409 2,392,165 Lab Tests, Legal, City Canst 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 6,000,000 692,723 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 CW A Debt Service (Exhibit C - - 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 $ 115,749,519 Capacity per Component 80,000,000 80,000,000 120,000.000 120,000,000 Cost per Gallon - Construction and Engine $ 1.2838 $ 0.0587 0.1087 (0.0391 ) Cost per Gallon - Recoupment $ 0.0376 Cost per Gallon - CW A Debt Service $ - Cost per Gallon - Total $ 1.3214 $ 0.0587 $ 0.1087 $ (0.0391 \ EXHIBIT C1 (200 mgd ) SCHEDULE OF ACTUAL AND ESTIMATED COSTS FOR PLANT A Diane%27s%20Summary_90%25%20ModifiecCNo%20UV _Rev3%20082906(1 ).xls CALCULATION OF UNRECOVERED ORIGINAL CAPITAL COSTS EXHIBIT C2 (200 mgd) Raw Water Supply: Pipeline CWA - 96" Pipeline Pump Station, CWA Treatment Plant (SEWPP): Land Acquisition Site Cleanup Engineering: Preliminary Siting Study Final Design - 160 mgd Final Design - 80 mgd Construction Construction 138 KV Electric Construct,on Mgt. Audit Fees Total Raw Water Supply and SEWPP Raw Project Original Original Jun-OO Jun-OO Jun-OO New New OriQinal Cost (a) Cost fa) Allocation %(a) Allocation $ (a) Allocation % Allocation $ Increased $ Allocation % Allocation $ Increased $ $ 14,367,830 $ 14,367,830 80/250 $ 4,597,706 126/250 $ 7,241,386 $ 2,643,681 210/250 $ 11,494,264 $ 4,252,878 21,261,056 7,492,883 225/225 7,492,883 225/225 7,492,883 225/225 7,492,883 $ 35,628,886 $ 21,860,713 $ 12,090,589 $ 14,734,269 $ 2,643,681 $ 18,987,147 $ 4,252,878 with new raw water contract $0.00 SEWPP Original Original Jun-oo Jun-oo Jun-oo New New Recoupment Balance of Orig,nal Cost Cost (73%\ Allocation % Allocation $ Allocation % Allocation $ Increased $ Allocation % Allocation $ Increased S SEWPP $ 6,675,192 $ 4,872,890 801750 $ 519,775 120/750 $ 779,662 $ 259,887 200/750 $ 1,299,437 $ 519,775 $ 3,573,453 1,149,372 0 0 0 606,238 442,554 801750 47,206 1201750 70,809 23,603 200/750 118,014 47,206 324,539 145,660 106,332 801750 11,342 1201750 17,013 5,671 200/750 28,355 11,342 77,977 6,285,146 4,588,157 801160 2,294,078 80/160 2,294,078 160/160 4,588,157 2,294,078 2,692,423 1,965,469 80180 1,965,469 80180 1,965,469 80/80 1,965,469 728,232 531,609 80180 531,609 80/80 531,609 - 80180 531,609 80,393,507 58,687,260 80/80 58,687,260 80180 58,687,260 80180 58,687,260 1,695,900 1,238,007 801750 132,054 1201720 206,335 74,280 200/720 343,891 137,556 894,116 6,102,064 4,454,507 80180 4,454,507 80/80 4,454,507 80/80 4,454,507 25,150 25,150 80180 25,150 80/80 25,150 80180 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 1$ 142,127,770 I $ 98,772,647 I 1$ 80,759,039 I 3,007,1231 1$91,028,9961 $ 7,262,8351 1$ 83,766,161 1 $ (a) Source: KPMG Audit of SEWPP Construction Costs as of November 30, 1995. (b) The unrecovered costs after this expansion will be $4,870,085. A D.ane%27s%20Summary _90%25%20Modified_No%20UV _Rev3%20082906( 1 ).xls 9/12/2006 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 MGD SEWPP (3) Debt Service 1996 $ 2,608,990 $ 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 2,536,964 845,654 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 $ 4,898,749 $ 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: 96" line construction cost (est.) Line "C" project cost (est.) Issuance cost, discount, accrued interest Cost (millions) $ 40.3 3.0 1.7 45.0 $ $ Allocation of Issuance Costs $ 1.6 $ 0.1 (1.7) Costs After Allocation 41.9 3.1 $ 45.0 2) Allocation to 80 MGD SEWPP based on the following: 96" Line Capacity Module Capacity MOdule % of Allocation 240 MGD 80 MGD 33.33% 3) Allocation to 126 MGD and 240 MGD SEWPP based on the following: 96" Line Capacity Module Capacity Module % of Allocation 240 MGD 126 MGD 52.50% 240 210 87.50% 4) The balance of the unrecovered costs will be $3,194,849 through 2000 and varies annually thereafter. EXHIBIT 01 (200 mgd) (With Distribution Purchased Capacity for Transmission Allocation) SCHEDULE OF ACTUAL COSTS OF PUMPINGlDISTRIBUTION DISTRIBUTION COSTS BASED ON NO RESIDUAL VALUES Land Acquisition 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.) Construction - 36" Beamer - 26,000 If (bid + City costs 8/12/02) Construction - New Pumping Less: Original Pumps' Construction - 96" Point C to Point D Audit Fees Total Capacity Purchased Existing Pipelines Capacity Purchased New Beamer Rd. Pipeline Cost per Gallon - Existing Pipeline (96" C to 0 and Beamer) Cost per Gallon - New Beamer Rd. pipeline Cost per Gallon - New Pump less Old Pump Incremental Cost - Original Capacity Purchase of Original Capacity (Dist. liB to C") Purchase of Original Capacity (See Exhibit D2 for Details) · 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. Estimated Project Costs Distribution (Treated High Service Treated Water Line)* Water PumoinQ Total $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - 2,752,075 2,752,075 9,796,047 - 9,796,047 2,712,212 2,712,212 (429,063) (429,063) 1,823,009 1,823,009 - - - $ 14,371,131 $ 2,283.148 $ 16,654,279 32,000,000 55,000,000 32,000,000 $ 0.1430 $ 0.3061 $ 0.0415 $ - $ 0.0187 $ 0.0466 $ 0.1256 $ 0.4957 $ 0.1858 A Diane%27s%20Summary _90%25%20Modified_No%20UV _Rev3%20082906(1 ).xls 9/12/2006 CAlCULA noN OF UNRECOVERED ORIGINAL CAPITAL COSTS EXHIBIT D21200 mgd) Distribution (Treated Water Plpellnel: Preliminary Engineering Final Design Construcllon Capacity Included in Costs Distribution Cost per Gallon High Service Treated Water Pumping Land AcquIsition Site Cleanup Engineering: Pre\iminll/)' Siting Study Final Design. 160 mgd Final Design. 80 mgd ConstrucliOn Construction 136 KV EIecIric Construcllon MgI. Audit Fees Capacity Included In Costs Pumping Caet per Gallon Raw Project Original Original Jun-OO Jun-OO Jun-OO N"", NN Balance of N"", Allocation %la \ Dia1ribuIion Ie to Onainal Cost (a) Cost /45%\ la\ Allocation SIal Allocation % Allocation $ B to C Increased $ Allocation % Allocation $ Increased $ 0\ Allocation % 32/250 $ 1,132,802 $ 509,761 2251225 $ 56,640 2501750 $ 169,920 $ 113,280 2501750 $ 169,920 $ . $ 26,583 2501750 1,679,060 645,566 2251875 261,662 2501250 645,566 563,724 2501250 645,566 132,267 2501250 23638,329 10,637248 2251875 3,545749 2501250 10637248 7 091 499 2501250 10637248 1664,138 2501250 $ 26650211 $ 11 992 595 $ 3664 251 $ 11652 754 $ 7 766 503 $ 11652754 $ . $ 1 823,009 250,000,000 32,000,000 $ 0.04660 $ " $ 0.0570 HS Pumping Original Original Jun-oo Jun-OO Jun-oo New New 200 rngd Costs Balance ot Onainal Costla\ Cost 127%\ Allocation % Allocation $ Allocation % Allocation $ Increased $ Allocation % Allocation $ urchased CanAri1 Increased $ HS PS tOI $ 6,675,192 $ 1,802,302 801750 $ 192,246 2001750 $ 480,614 $ 288,368 255/750 $ 612,783 $ 132,169 $ 1,189,519 1,149,372 0 0 0 0 0 0 606,238 163,684 801750 17,460 2001750 43,649 26.189 255/750 55,653 12.004 108,032 145,660 39.328 801750 4,195 2001750 10,488 6,293 255/750 13.372 2,664 25,957 6,285,146 1,696,889 801160 848.495 801160 848,495 1601160 1,696,989 848,495 848,495 2.692,423 726,954 80180 726.954 200I20O 726,954 - 2001200 726,954 726,954 - 728,232 196,623 80180 196,623 200I20O 196,623 - 2001200 196,623 196.623 - 60,393,507 21.706.247 80180 21,706.247 200I20O 21,706.247 . 2001200 21,706.247 21,706,247 - 1,695,900 457,893 801750 48,642 2001720 127,193 78.351 255/750 162,170 34,978 295,723 6,102,064 1,647,557 80180 1,647.557 2001200 1,647,557 - 2001200 1,647,557 1,647,557 - . 25150 - 60180 2001200 2001200 . $ 106 498 664 $ 28 437 578 $ 25388618 $ 25787 819 $ 399 201 $ 26 818 348 $ 25,125876 $ 1 030 529 $ 1 619,230 200,000,000 200,000,000 55,000,000 $ 0.121e $ 0.12&1 $ 0.0117 Cost per gallon of Incremental wlo Final Design Costs Original Cost HS Pumping Fully AlIoc. $ Lass: Cost of Original Pumps $ 0.0033 01289 $ 25,125,878 (1,560,230) 23,565,646 200,000.000 $0 1178 $0.1858 (a) Source: KPMG Audit at SEVvPP Canstrucllon Costs as of November 30, 1995. (0) The unrecovered high service pumping oasis after this expansion will be $1,619,230. (e) The unrecovered 96" distribution costs after this expansion will be $12,604,758. Original Firm HS Pumping Capacity Original Firm HS Pumping Fully Alice. Costs/gal 0IiginaI Firm Filly Aloe Costs + Incremental + New p, A Diane's Summary-QQ'.. Modified_No UV_Rev3091506.x1s 1011112006 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 Plus: 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 1,153,386 875,180 851.766 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 W A 4,831,404 1,141,744 542,880 6,516,028 Plus: Capacity Bought 3,425,120 3,425.120 Less: Capacity Sold 0 (2,550,000) (2,550,000) laPorte Area W A 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 Friel 3,418.761 3,455,859 10,150,076 17,024,696 6.10% Clear Lake City W A 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 W A 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,n9 $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 A E)(hibits - 200 mgd_Cl20907 xiS 6/20/2007 Page 1 of 3 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 Beamer Beamer 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 Exhibits. 200 mgd_020907ds 6/20/2007 Page 2 of 3 EXHIBIT F (continued) CALCULATION OF TOTAL GALLONS BY PARTICIPANT Distribution Allocation Demand Pumping Existing New Allocation Allocation 96" B to C 96"CtoD Beamer Beamer 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 218.2545 10.2545 14.1000 TOTAL 200.0000 255.0000 250.0000 250.0000 32.0000 32.0000 A Exhibits. 200 mgd_020907 xis 6/20/2007 Page 3 of 3 Beamer Rd. and Related Transmission Allocation to Benefiting Participants Incremental Total Total Existing Distribution Purchased Total Purchased Distribution Distribution Participant (Contract Purchase) Distribution Capacity Distribution Capacity wi Capacity wi MGD Capacity (MGD) Only 36" (MGD) Only 42" (MGD) (MGD) (Beamer Rd.) (42") Friendswood 8.5200 6.0000 14.5200 9.6800 4.8400 GCWA 18.1675 5.0000 23.1675 5.0000 18.1675 Webster 5.8310 0.0000 5.8310 1.8600 3.9710 Harris Co MUD 4.2520 0.0000 4.2520 1.3600 2.8920 Clear lake City (25% of 9.1200 0.0000 9.1200 0.0000 9.1200 T otan Baybrook MUD 3.3750 0.0000 3.3750 0.0000 3.3750 Clear Brook MUD 3.8455 0.0000 3.8455 0.0000 0.0000 City of Houston 10.0000 0.0000 10.0000 14.1000 1.1583 Totals 63.1110 11.0000 74.1110 32.0000 43.5238 Totals without Clear Brook or City of Houston 17.9000 Clear Brook MUD for Existing 96" and 36" 3.8455 City of Houston for Existing 96" and 36" 10.2545 Total with City of Houston and Clear Brook for Existing 96" and 36" 32.0000 43.5238 32.0000 EXHIBIT I CITY OF HOUSTON UNTREATED WATER FACILITIES' OUTSTANDING DEBT FACILITY COMPONENT 1 Coastal Water Authority (General) 2 Trinity River Authority (General) Pnncipal @ 71112005 $198,625,000 6,000,000 $204,625,000 Less: '87f91 Issue 96" Initial Capital Payment $14,734,269 of $120,000,000 Principal Total (12.28%) times Outstanding Principal @ 7/1/2005 of $86,700,000 (10,646,760) $193.978,240 3 Coastal Water Authority (TRAlLynchburg PS Upgrade) (General) 4 TRA - Current Lake Livingston Improvements 5 Aliens Creek Land Purchase 6 Lake Houston Dam/Reservoir Improvements 7 Wallisville Lake Project 8 Dayton Canal Total Outstanding Debt: 40,385,000 17,996.000 14,000,000 17,016,400 10,077,550 5,150,000 $298,603.190 ESTIMATED COST OF RAW WATER FOR EXPANSION TO 200 MGD Raw Water Costs (Formula for Exhibit C) GCWAI League Clear Brook Friendswood Pasadena GCWAlPeartand City (AiD2 x C) (AiD2 X C) (AiD2 X C) (AiD2 X C) (AiD2 X C) 1.00 6 16.5 10 5 518.65 518.65 518.65 518.65 518.65 (A2) Additional Demand Capacity (mgd) (02) Defined Year Average Day Production (mgd) (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 $298,603,190 $298,603,190 Additional Raw Water Capacity Cost Formula equals (A1B) x C = Total Estimated Raw Water Demand Capacity Cost $576,304 $3,454,839 $9,498,567 $5,757,070 $2,878,535 $22,165,315 A S IpwesharelPLANSECTlWater Supply and Cost Shanng ConlractslTrealed Waler Supply ConlractslSoutheast PlanlYales~QWanslon contract 091506lfor prinlinglExhiblls - 200 mgd_020907 062007 xis Page 1 Exhibit J - Transmission Line Capacity Distribution Ma~ 200-mgd Capacity Distribution with Beamer Road Line . Total Capacity of 42" & 36" lines = 75.52 mgd . Exist & Expansion Purchased Capacity = 75.52 mgd (as of October 7, 2005) South Houston Clear Lake City Water Authority (16 & 24'} Gulf Coast PointQ Water Authority (10.00 mgd) Clearbrook (Hall & Sage Canyon) (1.92/0 mgd) Clear Lake City Water Authority (0/9.12 mgd) LEGEND .. (, "I: Balance of Purchase ",-- ---f/> Line Capacity (mgd) Gulf Coast Water Authority (5.00/0 mgd) Baybrook Water Plant \6' & m (0/3.38 mgd) Webster (Magnolia) (0.93/1.98 mgd) Gulf Coast Water Authority (0/16.50 mgd) . Take Point (1.5 mgd) Purchased Capacity ;:\B13B\43343-ADDEND\CO-PART DEUVERY POINT5\FINAL 2006\MAPF.dwg, 9/11/2006 5:38:51 PM, hollandjr MAPF.DWG ~ C;; 8 ~~ zS!r"'I ~r;tX :::f!;d= i~~ ~:i!- z~ -f~ 1 - / / / / / N . o CII(/) o Q I g~ !e: , ~C) rfl, x- .~ -r>. ~ -0 l'l . t i i N ~ ~ ~ ~ Ul @ o ~ "" ~ o z Ul o o <: ,:., ~ ,., ,., $. co ,., ... ~ t- W .....l ?; .0 et:. r \.d ~ ~ o W -1 :L KINGSPOINT t .. ~ ~ .... IC .., ~. In l ... ... Q> z o If) ~l\ :L ~\ o ~ t..J ~ I ~ :::E EXHIBIT I GUlf COAST WA'JER AUTHORiTY (GCWA) FUQUA RO 0 BEAMER RD CONNECllON paNT t t ! ~ ~ ;;. \ ... ... 0\ t .1fI ~ ~ ~ ~ t G; \ \ i 0- S \ t) m ~ . \ Q ~ .., ~ ~ ~ \ scale: & '&0 ~ ~f-) EXt01l1 ' Ql\f cotSt tjt.1E1\ ~1't (GC'fl~ llt.'l foIV. Bl.~ O~ ~. CONNEC1\oN pCJttl EXHIBIT II ESnMATED COSTS PER CO-PARTICIPANT GCWA - PEAHLAND MGO Coet Gal. Char EXisting Capacity 0.0000 $0.0696 AdOed CapaCity Needed 10.0000 $1.3801 Total SEWPP 2005 CClpaCity 10.0000 PUmping ExiSting Capacity 0.0000 $0 Incremental CapaCity 10.0000 $0.1858 1.858.000 T Oldl Pumping 10.0000 $1.858.000 Dtatribution EXISting CapaCity 0.0000 96" line . POUlt C to POlOt 0 0.0000 and EXisting 36- Beamer 0.0000 $0.1430 NtiW 36M Beamer Line 0.0000 $0.3061 IncrenlBntal~cdy 96. LIne . POInt C to Point 0 10.0000 $0.0570 New 36- Beamer line 0.0000 $0.3061 96M Line POlOt 8 to Point C 10.0000 $0.0466 Total DlStnbutlOn 10.0000 A Dianes Summary_OO ModifiecCNo UV_Rev_030807 _dol061207cor.xls 6I12J2007 Page 1 of 1 MAPC3.DWG I I I I I ~~ \ I ~~ I I . I I I I I I -Cj I I ; G- I~~~ ~~ % ~ i~ 0 aia- "'(1) BAYWOOD :z: =< f.~ -f oeD .. J:I~ I i: gllll ..... ~I~ I> I ~:\I.I136\'13313-ADDEN[)\CO_"ART DEUVERY POINTS\FINAl2006\MAPC3.dwg, 9/11/2006 5:28:47 PM, hollandJr .--.....-. . "'-""--"~ ,~..- ._,..~_". ..w__..__"_'_..._..,.._~..___,_......___.__~~__...._.....__.~ _.-...,____~.___..__._.___._.__~..___ N . PANe '1 )> ;:u s: o Z -l NATIONS '1l'11C)O :;o0l'11)>> )>-<2:2: z"s;::)> (1-1)>0 l'11 :;0)>- ^ EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT GCWA . LEAGUE CITY MGD coet Gal. ebete SEWPP EXISting CapacIty 16.5000 $0.0696 AdOed Capacity Needed 5.0000 $1.3801 T Oldl SEWPP 2005 CapacJty 21.5000 Pumping ExtStlng Capacity 16.5000 Incremental Capactty 5.0000 $0.1858 T otaJ Pumping 21.5000 Oi.trtbutJon EXIsting Capacity 16.5000 96" Line" Point C to POInt 0 and Existing 36- Beamer 0.0000 $0.1430 New 36- BeaI1l8( Ltne 0.0000 $0.3061 Incremental CapacJty 96 ~ Line . POint C to POint 0 and ExIsting 36- Beamer 5.0000 $0.1430 715.000 New 36- Beamer Line 5.0000 $0.3061 1,530,500 96 ~ Line POUlt 6 to POIOt C 5.0000 $0.0466 233.000 T Olal Dlstnbutlon 21.500 $2,478.500 T olJIt Coat. $11.451.400 A Dianes Summary _90 Modified_No UV _Rev_030807 _doI061207cor.x1s 611212007 Page 1 of 1 \Nt.. p \ i 8 ~ on ~ ';:t ~ ~ ~ \ i M a ~ ~ ~ \ ~ l:\- S ~ 3 ~ $ .., '" -:- .:::; ,. ~...y ,,(f. ,!'- , '?"? ~ 'l.- sco\e: r. '\o.-J!> (t4U"dlW6 f.,.t) " " " " " E~1.1111 C\.f.I'R t.H<E art ...~1ER pt>>l1 No.3 CONNEC1\oN ~NT ~ ~ t""> ~ 2- ~ EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT CLEAR BROOK CITY MUD MGD Cost per Gal. Char e1Rebate SEWPP Existing Capacity 1.5000 $0.0696 Added Capacity Needed 1.0000 $1.3801 Total SEWPP Costs 2.5000 Pumping Existing Capacity 3.8455 Incremental Capacity 0.0000 $0.1858 Total Pumping 3.8455 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 $2,034,407 A Diane%27s%20Summarv_ 90%25%20Modified No%20UV Rev3%20082906(1 txls 0/1 ')/')nnc: t :g i ~ ~ .n i ~ 0- a. ~ ... i i N i ~ tn ~ ~ ~ ~ S ~ 6 ~ ~ ~ ~ -<:: i. " I' v z ~ fAtRMONl ~ % ,/ ./ J // jl f.fl Z o i= <{ Z CANADA DENMARK EGYPT FRANCE PASADENA - ---- <<. GENOA _ R~ BcurJ - .. '"'''''''' ---- 15' COASTAL', STAlES EASEMENT' 1 . 80 H.c.r.C.o. EA C.W.A. . EASEMENT . . 1151 H.C.F.C~D. EASEMENT .. '6' c t i 8 l':i Iii ... ~ .... '" CONNECllON. .~.. c;;SE'M'P~ ~ i !$ ..J 0(. Z ~ ~ ~ Cl ~ 0.. ~ Cl ~ -f ... .,. ... i ... ..... !!l- DJJNGTON AElD Scale: ? II 10 15 (1Iundr'ed Feet) ~ o .N o ~ ::E EXHIBIT I alY OF LAPORTE CONNECllON paNT A Diane%27s%20Summary_90%25%20Modified_No%20UV _Rev3%20082906(1 }.xls 9/12/2006 EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT BA YBROOK MUD #1 MGD Cost per Gal. Char e1Rebate SEWPP Existing Capacity Added Capacity Needed 1.8000 0.0000 $0.0696 $1.3801 Total SEWPP 2005 Capacity 1.8000 Pumping Existing Capacity 3.375 Incremental Capacity 0.000 $0.1858 Total Pumping 3.375 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 $ A Diane%27s%20Summary _90%25%20Modified_No%20UV _Rev3%20082906( 1 ).xls 9/12/2006 J r ~ ci:i N Vi ~ 0;- t i 8 N ~ ~ 2 >- co: ~ w o i ~ o ! .., ii; i ~ .... s Vi -1 -- ~,=--d-~~~::~-,;:~:'~==:J=r, -~-~---~:-=~.:--'f-~--'- " ,__ (,I, - i 1 /' ! Ii I 1.!:lr,f I : I /' i I, ' - I)' j / / If, . r.--<5~/ : I~~'I :1 I , -I :---------l Ii ~I -J .' ,~I~; I ,I r~-~~-=j IF~L I ~> ~ ~ ///, \-ri-.- 'I I( ,1 (-~~ ", :~f,ft I '/ Ie: Ji Ii.... ~ I~"I; ,', .. / /j::l-~-I':'\ 'H \, I / i'l - I ,<; I ,.I %-[---' _" l- I ':, " :1 :21.;)-,," \ ""'I ~:=I:: _ / / '~"'I U~~~ ,".,) -'.r -:7' '~~ Q f , ~ / /.// -1"// /I/, 1/" -' // //// // j <::. -~ i Q ~ :a ~T~ '1/ C;-SEVl'P~ ELlINGTON REID o Scale: 5 10 t5 (HuftchcI Feet) EXHIBIT I Q.EAR LAkE aTY EAST CF SEW'P CONNECnON POINT - -----t---- i --l\ "~i:;;Ff~)r, -~ L.:r4- "". I I : ;',.',", j, 'r::::;,~_>/__ _~~ \ 1 c~ () {- ----' ~ >- <: Q! > <( cr.: PA'.:JDCt'J;\ HCU~_:TChf / / .... '/"f / ~~)';<;>) ~<</ / '. / "'(.. ./ .. ..../ ' , ./ '<( ,~~/ <^ ~ / 'Z/ / '~~, (/ ""~..-i',./" / ,"~ '. >^" . / ." ./ ~ ,~~ "", /'("-.." ''''~~ 'I"j , . , " ,~,," ' ~. "' '" " '.~,,' ' ,~, /1lf~ ~ ~\~~ ~. /:f1 "" / ,,\~ '- ~I ". !'~~~ i'/) ", ~"" //' ,'~",,, -:fJ(/'/ '''';:~\'. L /j ,~ ' / ,~~ " " " ~ ~ ^' / , / 'V <-. " ~~ '> /'v ,/ ,,"-. > v "-,, / ~ >. / \ v ..~ ' /; ./ ~1 f I \, I ~ ' .' J" 7',> , "'<..:-- X / /':,:, // I ~ '<" , :::'~/'>"k' '-". , .-- '><:.. I "'-' ... .,,/ ~/ \. I ,,% /' /' . ',- "- '11</ / \ I %', '. /.it / '---~.... \ III \ '-<,)I{/CQNNE\I\lVI' 0 \"" /// "/.' #'~" + //'---./'~ ,,' ~ \ --.1 ...... "if' "-'"" \ / \ 1 /'< , ,,/ ,ff ", ,"" ~ "" t/F "" ......... f "'~"'" ~ I' y....../ "?' /,. d- " 'if '''- 1;( ~ If' ~ " ~ ~~_. c", ,. .\:0. \ i '8 ~ .n i ... ... ~ t \ ~ t rri ~ ~ \ i ... ~ ~ ~ ,:., ~ ~ '" ... ~ Iii '" ,,<>" , ~ '''':::j/ '" ~~ ~ " > ~~<'/ " ..~/ , , ~... ,,~ "- " " , /~ Scale: ~ a ,0 (~ ,.-t) / /,/' / , / "'- // "-.. // EXt'111l 1 QIHllH<E aTe ~~lMo.3 1I~C1\()l paMl - ~ ,,; ~ :s A Diane%27s%20Summary_90%25%20Modified_No%20UV _Rev3%20082906(1 ).xls 9/12/2006 EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT CLEAR LAKE CITY WATER AUTHORITY JOHNSON SPACE CENTER MGD Cost per Gal. Charge/Rebate SEWPP Existing Capacity 1.6000 $0.0696 Added Capacity Needed 0.0000 $1.3801 Total SEWPP 2005 Capacity 1.6000 Pumping Existing Capacity 2.560 Incremental Capacity 0.000 $0.1858 Total Pumping 2.560 Distribution Existing Capacity 2.560 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 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 Total Distribution 0.000 A Diane's SummarL90% Modified_No UV_Rev3 082906.xls 9/15/2006 ~ A Diane's Summary_90% Modified_No UV_Rev3 082906.xls 9/15/2006 ...... \ i '" ... 1, ;,.; l ;:. ... (;\ t \Ii \ , a \ R \ 'i. 8 f:i ffi 15 "f .... ~ ~ ( L- Sco\e: , ,0 ~ OU"~ f-) L 0\\11111 a11 f:E fRlOlDs1OOO CONMEC1\oN ~'" ~ ~ ~ S:\8138\43343-AODEND\CD-PART DEUVERY POINTS\ANAl2006\MAPE-GEX.dwg, 9/11/2006 5:34:08 PM, hoIlandjr "APE -GEX.DY<<; ~~ ~~~ ~il; i52~ 11- ''''~ ", " " '-. '. " A Diane%27s%20Summary _90%25%20Modified_No%20UV _Aev3%20082906(1 ).xls Q/1 ?/f)nnc: \Nt.. t' t .~ i ~ ~ .:n i ~ C\ ! ~ \ \ i .... i- re \ \ 'i "r ~ ~ ~ 2 ~ a ~tlEC1l(1t -p: ~lUM1 sco,.e: o ' 10 ~ - - (~ v.-t) OT1~~ pUllAIEf ~ 1l~1iR ~ ~ ~(l.It. ~"If)UJt ~~~ fU.Il1 EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT SOUTH HOUSTON MGD Cost per Gal. SEWPP Existing Capacity 3.7500 $0.0696 Added Capacity Needed 0.0000 $1.3801 Total SEWPP 2005 Capacity 3.7500 Pumping Existing Capacity 3.75000 Incremental Capacity 0.00000 $0.1858 Total Pumping 3.75000 Distribution Existing Capacity 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 96" Line - Point C to Point D and Existing 36" Beamer 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 0.000 Total Costs $261,000 Alternatively, the City of South Houston can make payment by paying $0.1011000 gallons until a total of 3.05 billion gallons have been purchased. (At 1.5 MGD, the COH will be repaid in approximately 5.5 years.) A Dianes Summary_90 Modified_No UV _Rev__030807 _dol061207cor062107.xls 7/11/2007 ~i A\( . 80\"H-\\E- l' \)"-1' ~' >-...J - ~ ~/ J:O~ g \i ~ .-1 lW /J V ...J:..J lQ ~_~ p or~".~ <0 u.1 9 S -- \ /' ? /^ - ,/ \\? CC~~. . \'" 51 (I-\d'R \-\ NY ~ <: r- oJ f>.. Vt. 0 ~~~EC]1,* -~- -~ por\ r- AVE f ~ ~ ;E is F ~ p,yt. G t"'') '..t U1 ~ J~. - ,.. >> cc: iNME<:noN"ri' - c<l1lEC' OIl 'II" ,V,- k /('-i? ,,he sty S'~ p,yt. \ n- '" f>.. VE. J /O~ AVE. \< ~ ~ , ~-0 ,:'11-' "" ~ \fE. L "-, AVE M ~ A'VE. N '<; " -I:'- J: l-' '-" .- s \'": ~ /:--\ ~ ~ \;('- ~~' O~ (<;3 ~ r:- -------' ---~---- , '1( ,~ ' _ S>- , /'a ?Iv' \ R \ t 10 ~ i IS B lI\ g S .... Q\ t t \D ~ ;;i , R ~ 0 ~ "" ~ 0 ffi ~ ~ ~ t ~ ~ <0 .... ~ freeW(Y~ ELION tJ\Unorl ROPER por~ Su\\ p\-lUR r i...... --,' I )- I~ REGAL W :!- _ CC [0::- - 0 SHf>.. \~l:-[.. \..I- \~ ~ l~ " 'ST\ "K E 0:.; t..?\ . _,I"' ARV p,NA i~ w GILP\N :;;~ o Al8"'() o ...J ...J LJ 'Z \.1.1 ~ v-- ~ ~ 1/ -" ,...- oS I JAAN lRElL - '~I Z " , I'dJ \1 :J ...J \\ 1,1 ...J Z ~\ '!-, --'6) -\() i\~ 't:::. Ct: 0:, III ~\ ..:( <''''' ii, -------------- \~ f EXHIBIT 1 cnY OF SOUlli HOOSlQN 7th S1REET COHNECllONPON1S EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT PASADENA MGD Cost per Gallon Char elRebate SEWPP Existing Capacity 23.5000 $0.0696 $1,635,600 Added Capacity Needed 16.5000 $1.3801 22,771,650 Total SEWPP Costs 40.0000 $24,407,250 Pumping Existing Capacity 31.00000 $0 Incremental Capacity 21.76596 $0.1858 4,044,115 Total Pumping 52.76596 $4,044,115 Distribution Existing Capacity 16.66750 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 96" line - Point C to Point 0 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 $28,451,365 A Diane%27s%20Summary _90%25%20Modified_No%20UV Rev3%20082906l1 ).xls nJ~ nJn___ ... '6' fa =0 .s::. i U'l 0 ~ .n ~ .... ~ '" t 0- .. i ;;, ... ~ ~ ~ ~ ~ ~ 0 ~ .s: a. ~ .~ 0 z w 0 0 ~ ~ .... ~ ;l; '" ::!:- % ClO '" .... ~ ~ 00l0" - flEj) \lUlff Ci~.VIF/) <> ELLINGTON p.IRPO~l' Scale: o 10 20 30 (Hunnd F.-t) EXHIBIT 1 all OF pASADENA CONNECll~ P<JNlS ................"--"".....~~-~-~ -.---- A Diane%27s%20Summary _90%25%20Modified_No%20UV__Rev3%20082906(1 ).xls 9/12/2006 ... ~ .!!! '0 .c :i a. " 0 .:; .... Ii; ID 0 0 t::!. -' -' 0;- ~ .., li1 ~ S 0 N ::t z Ii: - ~ ~ ~ ~ C l- i ~ z i w g 0 1= fj ~ ~ .~ :::IE lXl ~ ~ Ii; , , " , "-' , ,', , , ' , , " , "- "- , , '-s: '> "0.:/ / ,;s';" ~'" {:. / , v~/ , ~/ , c)'/ , / v . p AR~<E~ - R:; --. -- - - ,---- \ \ ....\t: Si. ~ ::Ii';) ) / / / ~/ 0/-0 /a < ) / / / o Scale: II 10 15 (HundrwcI Feet) EXHIBIT I HARRIS COUNTY ".U.O. No. 55 CONNECllON POINT EXHIBIT II ESTIMATED COSTS PER CO-PARTICIPANT FRIENDSWOOD MGD Cost per Gal. Charge/Rebate SEWPP Existing Capacity Added Capacity Needed Existing Capacity - Costs Total SEWPP Exp Capacity Total SEWPP Costs Pumping Existing Capacity Incremental Capacity Total Pumping 6.0000 6.0000 $0.0696 $1.3801 12.0000 $8,698,200 8.52000 6.00000 14.52000 $0.1858 $0 1,114,800 $1,114,800 Distribution - Alternative #2 Existing Capacity 96" Line - Point C to Point D Existing 36" Beamer New 36" Beamer Line Incremental Capacity 96" Line - Point C to Point D New 36" Beamer Line 96" Line Point B to Point C Total Distribution 8.52000 0.68000 $0.0570 0.68000 $0.0860 0.68000 $0.3061 0.00000 $0.0860 0.00000 $0.3061 0.68000 $0.0466 14.52000 A Diane%27s%20Summary _90%25%20Modified_No%20UV _Rev3%200aw~'pils PHOA 1 nf 1 ~ ID P t !;! o ... Ui ~ .... C> t ~ ~ ~ ::E: i N :;i Z ~ ~ ! o ~ it ~ o ~ ~ p, ..,. ... M ~ M .... ~ Ui t i -- - - Scole: o 5 10 115 (HuncIr.d FNt) PA~W.2-0~- 2~=-- - -- r- ---- \ EXHIBI BAYBROOK Y.U.D. No.1: BAYBROOK SQUARE. lHE LODGE APlS., SA YBROOK \1UAGE DR WATER PLANT, McDONALDS. QRCUlT an, AND