HomeMy WebLinkAboutPR 24795 AUTHORIZATION TO EXECUTE THE WATER SVC. AGREEMENT WITH PALNG City of
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INTEROFFICE MEMORANDUM
Date: March 3, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Calvin Matthews, P.E., Water Utilities Director
RE: PR No. 24795 —Authorization to Execute the Water Service Agreement with
PALNG Operator Company, LLC
Introduction:
The intent of this Agenda Item is to seek City Council's approval for the City Manager to execute
the Water Service Agreement("WSA") with PALNG Operator Company, LLC.
Background:
PALNG Operator Company, LLC, is seeking to use the City of Port Arthur drinking water
system for employee welfare, safety, fire protection, and demineralized water make-up for
tempered water process use. The agreement requires PALNG Operator Company, LLC, to
comply with the TCEQ requirements and prevent the cross-connection to the city water system,
including analyzing water samples as well as reviewing any water system modifications proposed for the
facility.
Budget Impact:
None.
Recommendation:
I recommend that the City Council approve Proposed Resolution No. 24795, authorizing the
execution of the drinking water Service Agreement between the City of Port Arthur and PALNG
Operator Company, LLC.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
PR No. 24795
3/3/26 JL
Page 1 of 3
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A WATER SERVICE AGREEMENT BETWEEN
THE CITY OF PORT ARTHUR AND PALNG OPERATOR
COMPANY, LLC,AS IT PERTAINS TO WATER SUPPLY.
WHEREAS, the City of Port Arthur, Texas (hereinafter referred to as "City" or "Water
System") is responsible for protectingthepublic drinkingwater supply from contamination or
p pp Y
pollution that could result from improper
water s stem construction or configuration on
y the
commercial connection owner's side of the meter; and,
WHEREAS, the purpose of this water service agreement is to notify each customer of the
restrictions that are in place to provide this protection; and,
WHEREAS, the public water system enforces these restrictions to ensure the public health
and welfare; and,
WHEREAS, each commercial customer must sign this agreement before the City/Water
System will begin service; and,
WHEREAS, when service to an existing commercial connection has been suspended or
terminated, the City will not re-establish service unless it has a signed copy of this agreement; and,
WHEREAS, PALNG Operator Company, LLC desires to enter into a Water Service
Agreement, in substantially the same form as Exhibit "A", with the City in order to comply with
TCEQ regulations and City plumbing restrictions, and be subject to inspections by the City of Port
Arthur.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
THAT,the facts and opinions in the preamble are true and correct.
PR No. 24795
3/3/26 JL
Page 2 of 3
THAT,the City Manager is hereby authorized and instructed to execute the Water Service
Agreement as per Exhibit"A" on behalf of the City with PALNG Operator Company, LLC.
THAT,a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED, AND APPROVED THIS day of , 2026, at a
Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor
Councilmembers:
NOES:
CITY OF PORT ARTHUR, TEXAS:
Charlotte M.Moses
Mayor
ATTEST:
Sherri Bellard
City Secretary
PR No. 24795
3/3/26 JL
Page 3 of 3
APPROVED AS TO FORM:
Roxann Pais Cotroneo
City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, C
City Manager
-liL �cl,L�
Suhail Kanwar, P.E.
Director of Public Services
Ca vin he , . .
Water Utilities Director
APPROVED AS TO THE AVAILABILITY
OF FUNDS:
Ly .f yn) Bosw:,iv, MA ICMA-
Finance Director
Clifton . Williams Jr. CPPB
Purchasing Manager
EXHIBIT "A"
5
WATER SERVICE AGREEMENT
I. PURPOSE.The City of Port Arthur, Texas(hereinafter referred to as"City"or"Water
System") is responsible for protecting the public drinking water supply from contamination or
pollution that could result from improper water system construction or configuration on the
commercial connection owner's side of the meter. The purpose of this water service agreement
is to notify each customer of the restrictions that are in place to provide this protection. The
public water system enforces these restrictions to ensure the public health and welfare. Each
commercial customer must sign this agreement before the City/Water System will begin
service. In addition, when service to an existing commercial connection has been suspended
or terminated,the City will not re-establish service unless it has a signed copy of this
agreement.
II. RESTRICTIONS.The following unacceptable practices are prohibited by State regulations.
A. No direct connection between the public drinking water supply and a potential source
of contamination is permitted. Potential sources of contamination shall be isolated
from the public water system by an air-gap or an appropriate backflow prevention
device. Without the proper devices, such a connection can result in public harm and
will be dealt with the severest of laws once it is discovered.
B. No cross-connection between the public drinking water supply and a private water
system is permitted. These potential threats to the public drinking water supply shall
be eliminated at the service connection by the installation of an air-gap or a reduced-
pressure-zone backflow prevention device.
C. No connection that allows water to be returned to the public drinking water supply is
permitted.
D. No pipe or pipe fitting containing more than 0.25%lead may be used to install or
repair plumbing at any connection that provides water for human use.
E. No solder or flux containing more than 0.2% lead can be used to install or repair
plumbing at any connection that provides water for human use.
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All the materials used for the water system should be NSF-approved.
Note: Violations of these restrictions can result in penalties and application of proper
laws to punish any or all such violations.
III. CONNECTIONS TO PUBLIC WATER SYSTEM. The following conditions are
established between customer users and Public Water Systems regulated by the TCEQ
A. PALNG Operator Company, LLC (Customer)is applying for a service connection
to the City of Port Arthur's Water System with a maximum capacity of 250 GPM
(gallons per minute)flow rate, targeting March 1st,2026,subject to availability.
Service will be for the benefit of the Port Arthur natural gas liquefaction and export
facility(the Facility).
B. The Daily Maximum flow rate shall not exceed 345,600 GPD (gallons per day).
C. This Agreement shall remain in full force and effect for so long as the Facility is
connected to the Public Water System and shall be subject to review every five(5)
years,or at such other times as may be deemed necessary, to ensure the continued and
adequate protection of the Public Water System. In the event this Agreement is
terminated, expires, or otherwise becomes null and void, it shall be the sole
responsibility of the Customer to apply for and obtain renewal of this Agreement.
IV. SERVICE AGREEMENT. The following are the terms of the service agreement(this
Agreement)between the City/Water System and PALNG Operator Company,LLC (the
Customer).
A. The City/Water System will maintain a copy of this Agreement as long as the
Customer and/or the premises is connected to the Water System. The Customer
should maintain a copy of the Agreement as well.
B. The Customer shall allow his (or his relevant affiliate's) property to be inspected for
possible cross-connections and other potential contamination hazards. These
inspections shall be conducted by the City/Water System or its designated agent prior
to initiating new water service and shall be at the sole risk of the City/Water System;
when there is reason to believe that cross-connections or other potential contamination
hazards exist; or after any major changes to the private water distribution facilities.
The inspections shall be conducted during the City/Water System's normal business
2JPage
hours and upon no less than 10 business days' prior written notice to the Customer.
While on the Customer's or its relevant affiliate's property, the City/Water System
shall,and shall cause its designated agent (if applicable) to, follow all policies and
procedures of the Customer or its relevant affiliate.
C. The City/Water System shall notify the Customer in writing of any cross-connection
or other potential contamination hazard which has been identified during the initial
inspection or the periodic re-inspection.
D. The Customer shall as soon as practicable taking into account all safety
considerations, including any hazard to human life,remove or adequately isolate
any potential cross-connections or other potential contamination hazards on his
premises.
E. The Customer shall, at his expense,properly install,test, and maintain any backflow
prevention device required by the Water System. Copies of all testing and maintenance
records shall be provided to the City/Water System annually.
V. ENFORCEMENT.Except in the case of any force majeure event that causes Customer's
failure to comply with this Service Agreement, if the Customer fails to comply with the terms
of the Service Agreement,the City/Water System shall, at its option, either terminate service
or properly install,test, and maintain an appropriate backflow prevention device at the service
connection. Any expenses associated with the enforcement of this Agreement shall be billed
to the Customer, except in the case of any force majeure event that causes Customer's failure
to comply with the Service Agreement, in which case, such failure to comply shall be
excused.
VI. FUTURE PARTICIPATION. The Customer agrees to consider participation with the
City/Water System in a future infrastructure improvement program, which will aid the
City/Water System in its ability to meet the Customer's requested water demand,provided
that Customer shall be under no obligation to participate in such program. The Customer
further agrees to work collaboratively in a commercially reasonable manner with the
City/Water System toward participating in such a program upon the City/Water System
completing an engineering design plan,project scope, and cost determination.
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CUSTOMER REPRESENT
PRINT NAME: CHRISTOPHER FORTENBERRY
TITLE: HEAD OF PORT ARTHUR OPERATIONS- PORT ARTHUR LNG
et DATE: March 2 2026
SIGNATURE: ,
Wage