HomeMy WebLinkAboutC2014-378 - 12/16/2014 - Approved •
Amendment and Extension to the Agreement for Exclusive Reservation of Recycled Water Between
Valero Refining-Texas, L.P.and City of Corpus Christi
Whereas,on December 17, 2013, the City of Corpus Christi and Valero Refining-Texas, L.P. entered into
an Agreement for Exclusive Reservation of Recycled Water("the Reservation Agreement") with a term
of nine months,with an option to extend the Reservation Agreement for an additional three-month
period;
Whereas, the Reservation Agreement provided for the City to reserve for the exclusive benefit of Valero
the capacity for delivery of up to 4 million gallons per day("mgd") of recycled water/treated wastewater
effluent from the new Broadway Wastewater Treatment Plant ("BWWTP") or from any other
wastewater treatment plants in the event that the City will no longer be operating the BWWTP;
Whereas,Valero desires to reserve up to 4 mgd of recycled water/treated wastewater effluent from the
Greenwood Wastewater Treatment Plant("GWWTP") recycled water/treated wastewater effluent;
Now, therefore, the parties agree to amend the Reservation Agreement and extend the term as follows
(the "Amendment");
1. The Reservation Agreement is amended so that the City agrees to reserve for the exclusive benefit of
Valero up to 4 mgd of recycled water/treated wastewater effluent from the GWWTP. This amended
Section I.A. replaces Section I.A. of the Reservation Agreement:
"I. Reservation.
A. Term and Fee. For and in consideration of payment of a reservation fee in the amount of One
Hundred Thousand Dollars ($100,000.00) to be paid within thirty days of the date the City
Manager or the City Manager's designee signs this Amendment, the City will reserve for the
exclusive benefit of Valero up to 4 million gallons per day ("mgd") of recycled water/treated
wastewater effluent from the Greenwood Wastewater Treatment Plant ("GWWTP"). During the
term of the amended Reservation Agreement, the City shall not enter into any other agreement
or reservation for treated wastewater effluent from the GWWTP. The Reservation as amended
herein shall expire nine months from the Effective Date of this Amendment. The nine-month
extended reservation period is to allow Valero and the City time for, including but not limited to
evaluation, equipment pilot testing, pipeline right of way development, and project design.
Before the expiration of this Amendment to the Reservation Agreement, Valero will inform the
City in writing if it intends to enter into a recycled water agreement(s) for either or both of its
local refineries dba the Valero Corpus Christi West Refinery and the Valero Corpus Christi East
Refinery."
Section I.D.of the Reservation Agreement is amended as follows:
"D. Extension. Valero may extend this Amendment to the Reservation Agreement for an
additional three-month period by providing the City with written notice at least thirty (30) days
prior to the termination date of this Amendment along with an extension fee of Seventy-Five
2014-378 1
12/16/14
M2014-177 INDExED
Valero Refining-Texas L.P.
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Thousand Dollars ($75,000.00). During the three-month extended term of the reservation, the
City shall not enter into any other agreement or reservation for treated wastewater effluent that
would in any way restrict the City's ability to furnish Valero the 4.0 mgd of treated wastewater
effluent subject to this Amendment."
2. This Amendment to the Reservation Agreement takes effect on December 16, 2014 (the "Effective
Date").
3. Within thirty days of the date the City Manager or the City Manager's designee signs this this
Amendment to the Reservation Agreement Valero will pay the City One Hundred Thousand Dollars
($100,000.00).
4. Any provision of the Reservation Agreement that is not expressly amended by this Amendment
remains unchanged and in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year
written below.
VALERO: CITY:
VALERO REFINING—TEXAS, L.P. CITY OF CORPUS CHRISTI
By: By: LA6ULD6W. C
Name: Dennis Payne Name: Ma' 1e1 C •
Title: Senior Vice President&General Manager Title: C41 M
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Date: ( 11 I -z l Date: 14130 /i4
ATTEST: 1-2 -O+
1-4,4e.-4-•
REBECCA HUERTA
CITY SECRETARY
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