ORDINANCE approving and authorizing Six Untreated Water Supply Contracts between City of Houston and ENTERPRISE PRODUCTS OPERATING, LLC

SUBJECT: A Package of Six Untreated Water Supply Contracts between the City of Houston and Enterprise Products Operating LLC for six facilities.

RECOMMENDATION: Approve an ordinance authorizing the Mayor to execute a package of six Untreated Water Supply Contracts between the City of Houston and Enterprise Products Operating LLC.

SPECIFIC EXPLANATION: Enterprise Products Operating LLC ("Enterprise") previously had seven Untreated Water Supply Contracts with the City of Houston (the "City") that became month to month in 2021. Enterprise has requested to enter six Untreated Water Supply Contracts with minor adjustments to the standard template to accommodate Enterprise's unique situation. Each facility has unique circumstances requiring differing contracts. These contracts will charge rates for untreated water as specified in the City of Houston Code of Ordinances, Section 47-85 and contain a contract quantity for each facility.

The package of six contracts for each facility is as follows:

• The Morgan's Point facility, located at 1200 North Broadway, La Porte, Texas, has a contract quantity of 1.87 million gallons per day ("MGD") with a peak rate of 1,820 gallons per minute ("GPM"). 
• The EHT/HSC/Appelt facility, located at 15602 Jacintoport Boulevard, Houston, Texas, has a contract quantity of 2.75 MGD with a peak rate of 2,674 GPM. This facility has further notification requirements for routine tank testing or inspections that are detailed in Article 2.7 of the contract. 
• The West Storage facility, located at 201 West Winfree, Mont Belvieu, Texas, has a contract quantity of 0.026 MGD with a peak rate of 500 GPM during normal operations and 1,400 GPM during any period when the facility is filling water tanks.
• The East Storage facility, located at 234 Cochran Lane, Baytown, Texas has a contract quantity of 7.23 MGD with a peak rate of 6,000 GPM.
• The Hatcherville facility, located at 13133 Hatcherville Road, Mont Belvieu, Texas, has a contract quantity of 8.19 MGD with a peak rate of 7,963 GPM. 
• The Mont Belvieu Plant, located at 10207 FM 1942, Mont Belvieu, Texas, has a contract quantity of 3.624 MGD with a peak rate of 3,521 GPM. 

Additional contract modifications include Article 9.2.4 to provide clarification on the Threshold test, Article 2.10.3 to give Enterprise the option of not maintaining storage facilities but acknowledging the sole risk of meeting excess demands, and the addition of Articles 15.9 and 15.10 to provide for special considerations for critical infrastructure and advanced notice of violation of the contract quantity or peak rate.

The City's Drinking Water Operations Water Infrastructure Planning team has evaluated the request and found that the water supply and delivery system is adequate to provide the requested quantities. 

____________________________

Randall V. Macchi, JD

Director, Houston Public Works