HomeMy WebLinkAboutC2016-498 - 10/24/2016 - NA JMEMBER
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VALEROOCT 2016 '"°CLEAN
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RETURN RECEIPT REQUESTED
Lisa O. Aguilar
Senior Assistant City Attorney
City of Corpus Christi
1201 Leopard Street
Corpus Christi, Texas 78401
Reference: Reservation Agreement
Dear Ms. Aguilar:
Pursuant to Paragraph 1 of the attached Second Amendment and Extension to the Agreement for
Exclusive Reservation of Recycled Water Between Valero Refining—Texas, L.P. and the City of
Corpus Christi(the"Agreement"),Valero Refining—Texas, L.P. is providing notice that it wishes
to extend the term of the Agreement by six months.Si4..S ac -e-rL----""—
Dennis Payne
Vice President and General Manager
Valero Tejas Company LLC, which executes this notice in its individual capacity and as the
general partner of Valero Refining-Texas, L.P.
2016-498
10/24/16
I Greehey Refinery • Valero Refining-Texas, L.P.
Valero Refining- Texas LP 3 • Corpus Christi, Texas 78469-9370 •Telephone (361) 289-6000
INDEXED
Second 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,the Parties later determined that recycled water from the Greenwood Wastewater Treatment
Plant("GWWTP")would be preferable;
Whereas, the Parties entered into an Amendment and Extension to the Agreement for Exclusive
Reservation of Recycled Water Between Valero Refining-Texas, L.P. and City of Corpus Christi on
December 16,2014 which reserved 4 mgd from the GWWTP for Valero, provided a term of nine months,
and provided for one three-month extension after the nine-month term (the"Amendment");
Whereas,the Amendment will expire on December 16,2015 and the Parties desire to further extend the
Reservation Agreement;
Now, therefore,the Parties agree to amend the Reservation Agreement and extend the term as follows
(the"Second 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. For and in consideration of payment of a reservation fee in the amount of Seventy-Five
Thousand Dollars ($75,000.00) to be paid within thirty days of the date the City Manager or the
City Manager's designee signs this Second 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 Agreement as
amended herein shall expire twelve months from the Effective Date of this Second Amendment.
The twelve-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,
project design, and project financing. Should the Parties need additional time to negotiate an
agreement for the delivery of recycled wastewater,Valero may extend this Second Amendment
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by an additional six months at no additional cost by providing written notice to the City thirty
days prior to the expiration of this Second Amendment.
Section I.D.of the Reservation Agreement is amended as follows:
D. Extension. The Parties may extend the Reservation Agreement by mutual agreement.
2. This Amendment to the Reservation Agreement takes effect on December 16, 2015 (the "Effective
Date").
3. 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 Second Amendment as of the day and
year written below.
VALERO: CITY:
VALERO REFINING–TEXAS,L.P. CITY OF CORPUS CHRISTI
By: k ��' \ By: C71/:
Name: Dennis Payne Name: in, E. Lf r k9-
Title: Senior Vice President&General Manager Title: XeCv/r ve At re_ th ✓
Date: I - COT–. Date: Z C
fli {eCr: _ -ice
REBECCA HUERTA
CITY SECRE110174(i
Almost es to btpn:
Lisa AguitaJrrN
Aasistsnt City Attorney
For City Attorney
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