SUBJECT: It is recommended City Council approve the First Amendment to the Untreated Water Supply Contract with Enterprise Products Operating LLC.
RECOMMENDATION: The First Amendment to the Untreated Water Supply Contract between the City of Houston and Enterprise Products Operating LLC be approved.
SPECIFIC EXPLANATION: The City of Houston and EGP Fuels Company, the original buyer, entered into an Untreated Water Supply Contract on September 4, 1996, by Ordinance No. 96-880. The contract sets forth the terms and conditions for delivery of up to 0.8 MGD (million gallons per day), for use at its facilities located at 1200 N. Broadway, La Porte, Texas 77871. Enterprise Products Operating LLC acquired EGP Fuels Company, including its Morgan’s Point facilities.
Houston Public Works approved a water supply increase, by letter as allowed under the contract, from 0.8 MGD to 1.88 MGD effective March 1, 2015.
Enterprise now requests this First Amendment to increase its contract quantity from 1.88 MGD to 2.30 MGD, and to update their addresses for purposes of notice, billing, and payments. The contract charges rates for untreated water as specified in the City of Houston Code of Ordinances, Section 47-85. The base rate is currently $0.7461 per thousand gallons. Revenue is estimated to be $617,770.80 annually.
Houston Public Works recommends the First Amendment be approved.
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Carol Ellinger Haddock, P. E.
Director
Houston Public Works