HomeMy WebLinkAboutContract 39743 (3)AN AGREEMENT FOR RECLAIMED WATER SERVICE BETWEEN
THE CITY OF FORT WORTH AND
THE CITY OF EULESS
STATE OF TEXAS Zr
COUNTIES OF TARRANT, DENTON AND WISE §
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This Agreement is made and entered into this �-th day of 2009, by
and between the City of Fort Worth, a municipal corporation located in Tarrant County,
Texas, acting by and through 1�d Co,.J its duly authorized Assistant City
Manager, hereinafter called "Fort Worth," and the City of Euless, located in Tarrant
County, Texas, acting by and through Gary McKamie, its duly authorized City Manager,
hereinafter called "Customer."
WHEREAS, use of reclaimed water is a recommended water management
strategy for the City of Fort Worth in the 2006 Region C Water Plan; and,
WHEREAS, use of reclaimed water has been identified as a Best Management
Practice for water conservation by the Water Conservation Implementation Task Force
established by the 78th Texas Legislature under Senate Bill 1094; and,
WHEREAS, development of a reclaimed water program for the City of Fort Worth
will provide for efficient use of Fort Worth's and the region's water resources; and,
WHEREAS, it is in Fort Worth's and the region's best interest, when economically
justified, to provide reclaimed water to other entities in the region in order to conserve
valuable water supplies for the region; and,
WHEREAS, Fort Worth and the Customer recognize that the use of reclaimed
water for nonpotable uses allowed by the State of Texas is a p
method of relieving the demand on potable water supplies; and,
WHEREAS, Fort Worth is authorized to provide reclaimed
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under Authorization for Reclaimed Water No. R10494-013; and,
WHEREAS, Fort Worth owns, operates and maintains facilities for processing and
distributing reclaimed water, and at the present time may furnish and deliver reclaimed
waterI both within and without the corporate boundaries %a Fort Worth as allowed by its
TCEQ Authorization; and,
WHEREAS, Customer now wishes to establish, own and operate at its own cost
and expense a reclaimed water distribution system; and furnish reclaimed water service
to the customers within its own boundaries, and,
WHEREAS, it is deemed to be in the best interest of both parties to enter into an
agreement to allow the Customer to obtain from Fort Worth a supply of reclaimed water
at a rate and in accordance with the terms contained herein; and,
WHEREAS, Customer desires to purchase reclaimed water and Fort Worth
desires to sell reclaimed water to Customer; and
WHEREAS, Section 402.001 and 402.075 of the Texas Local Government Code,
and Chapter 791 of the Texas Government Code authorize Fort Worth and Customer to
enter into this Agreement;
NOW, THEREFORE, KNOW ALL BY THESE PRESENTS:
That, for and in consideration of the mutual covenants, promises and
agreements contained herein, Fort Worth and Customer do hereby covenant and agree
as follows:
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Table of Contents
1. Definitions...................................................................................................... 3
2. Reclaimed Water Delivery............................................................................. 5
3. Meters; Responsibilities................................................................................. 9
4. Point -of -Delivery, Meter, Testing.................................................................11
5. Meter Reading.............................................................................................12
6. BiIling...........................................................................................................13
7. Rates and Charges......................................................................................14
8. Effective Date; Term. . a a 0 a I W 0 a a 0 0 0 8 a a 0 a a a a 0 a a 4 a a * 4 a 0 a a a a a a A a V a a 4 a a 0 a 0 0 a * V I w 0 a 0 0 W a 1 4 0 V W a 0 1 0 a a 0 0 0 a a a 0 0 4 4 22
9. Easements and Rights-of-Way....................................................................22
10. Reclaimed Water Use Requirements..........................................................23
11. Resale of Reclaimed Water........................................................................0 24
12. Adequate Supply.........................................................................................24
13. Reclaimed Water System Advisory Committee...........................................25
14. Termination..................................................................................................25
15. Ownership of the System.............................................................................27
16. Third Party Beneficiaries..............................................................................28
17. Liability.... was, "Gotseva 96440199 W as a 0 me a 0 a a 0 0 0 0 1 as 0 1 a I a 0 a a a 8 a a a a a 0 a a a a & a a 8 a K a a a 9 a a a a I a a a a 0 4 ft a a A 9 a * 4 a 0 0 9 V a 4 a V V I a a 0 2 8
18. Force Majeure.............................................................................................0 28
19. Notices........ w*q*q4** *Now owed e a% 0 0 to a a Est a a a a we a a 0 1 1 0 a a a a a 0 a I a 8 0 a * a 8 a a a 0 a a a a a 0 0 1 a a 0 a a * a a a 0 a a a N N A 0 a 4 W a a 0 W W 0 W W w 0 29
20. Inspection and Audit.................................................................................... 29
21. Request for Service by Fort Worth.............................................................. 30
22. Arbitration....................................................................................................30
23. Licenses, Permits and Fees........................................................................32
24. Miscellaneous.............................................................................................. 32
1. Definitions
1.1 "Annual Amount" is defined in § 2.5 and is comprised of the Customer's
total annual Reclaimed Water use estimate, as adjusted.
1.2 "Applicable Law" is any statute, law, constitution, charter, ordinance
(including the Fort Worth city code and ordinances, rules and regulations), resolution,
judgment, order, decree, rule, regulation, directive, interpretation, standard or similarly
binding authority, which in any case, is enacted, adopted, promulgated, issued or
enforced that relates to or affects Fort Worth, the Customer, or a party's performance of
its obligations under this Agreement.
1.3 "Customer system" is the Customer's entire Reclaimed Water transmission
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and distribution system on the Customer's side of the point of delivery.
1.4 "Director" is the Director of the Fort Worth Water Department or the
Director's authorized designee.
1.5 "Fiscal Year" (or "FY") is Fort Worth's fiscal year, which is October 1
through September 30. For example, "FY 2011" is October 1, 2010 thru September 30,
2011.
1.6 "Maximum Rate" is the volume equivalent of the City of Fort Worth
wholesale treated water contract rate, as defined in § 7.4.1. The Maximum Rate
calculation includes Fort Worth's cost of raw water.
1.7 "MGD" is million gallons per day.
1.8 "Minimum Monthly Use" is an amount of Reclaimed Water equal to 50% of
the Annual Amount divided by 12 months.
1.9 "Peak Usage" is the Customer's maximum rate of flow of Reclaimed Water,
in any one Fiscal Year, measured in gallons per minute at the point -of -delivery meter.
1.10 "Reclaimed Water" is highly treated effluent from Fort Worth's wastewater
treatment plant(s), supplied through the System.
1.11 "Service Area" means the "City of Fort Worth Reclaimed Water Service
Area" identified in the TCEQ Reclaimed Water Authorization No. R10491-013, as
amended from time to time. Exhibit A describes the Service Area as of the effective date
of this Agreement, but an amendment of the TCEQ Authorization that expands the
Service Area shall become effective upon issuance by TCEQ, without the need to amend
this Agreement.
1.12 "Subsidy" means the amount, in dollars, equal to the revenue shortfall in
Fiscal Years when the Rates charged pursuant to this Agreement are less than rates
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necessary to recover the cost -of -service revenue requirement for the System, as
determined by the article 7 cost -of -service rate study. "Cumulative Subsidy" means the
total, un-recouped amount of all Subsidies paid by Fort Worth over the life of the
Agreement.
1.13 "System" is the entire Fort Worth Reclaimed Water transmission and
distribution system(s), which extends from its connection to Fort Worth's wastewater
treatment plants) to each customer's point of delivery, and includes all equipment and
related facilities owned or used by Fort Worth to pump, transport, measure, control, store,
distribute, deliver or otherwise manage Reclaimed Water within the Service Area.
1.14 "System Cost" means a cost associated with the System that is to be
included in the System -wide cost of service (as provided in Section 7.2).
1.15 "Users" means any user that Fort Worth permits as a distributor or a bulk
user of the Reclaimed Water.
1.16 "Volume Rate" is the wholesale rate per 1,000 gallons of Reclaimed Water
to be set annually pursuant to this Agreement.
1.17 "TCEQ" is the Texas Commission on Environmental Quality or its successor
in function.
2. Reclaimed Water Del
2.1 Fort Worth Reclaimed Water Delivery.
2.1.1 Fort Worth shall furnish and sell to Customer, pursuant to the terms
and conditions of this Agreement, Reclaimed Water that meets the
requirements for Type I reclaimed water uses, as set forth in Chapter
210 of Title 30 of the Texas Administrative Code and the TCEQ
Reclaimed Water Authorization No. R10494-013.
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2.1.2 Fort Worth is responsible for treatment and transportation of the
Reclaimed Amer, in compliance with Applicable Law, up to the
Customer's point of delivery, and the Customer shall have no liability
related to or arising out of the Reclaimed Water up to the Customer's
point of delivery.
2.2 Customer Reclaimed Water Purchase.
2.2.1 Customer shall purchase and pay Fort Worth for Reclaimed Water,
pursuant to the terms and conditions of this Agreement.
2.2.2 Customer is responsible for the transportation and use of the
Reclaimed Water, in compliance with Applicable Law, at and after
the point of delivery, and Fort Worth shall have no liability related to
or arising out of Reclaimed Water that complies with the
requirements of § 2.1 at the Customer's point of delivery.
2.2.3 Customer shall supply, install and maintain, at Customer's sole cost
and expense, all equipment to obtain Customer's desired Reclaimed
Water pressure if the pressure provided by Fort Worth is not
adequate for Customer's purposes. Fort Worth does not guarantee
a minimum pressure for the delivery of Reclaimed Water.
2.3 Point of Delivery. The Customer's point of delivery will be the meter vault
connection to Customer's side of the meter, installed at a mutually agreed location on the
System. The parties will designate the agreed location for the meter (including a map or
diagram of the location) in writing, signed by both parties, and that signed designation will
become part of this Agreement. The parties may agree to designate one or more
additional Customer points of delivery from time to time, following the requirements of this
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2.4 Customer's Estimated Reclaimed Water Use.
2.4.1 On or before the date of Customer's execution of this Agreement,
and thereafter on or before March 31 of each year, Customer will
provide to Fort Worth its best good -faith estimate of:
a. the Customer's Reclaimed Water use month -by -month for each
month;
b. the Customer's total annual Reclaimed Water use; and
c. the Customer's Peak Usage, consisting of the maximum rate of
flow of Reclaimed Water measured in gallons per minute at the
point -of -delivery meter (and must be provided for each point -of -
delivery meter)
for the Fiscal Year that begins the following October 1, in writing, in
the form of Exhibit B.
2.4.2 If the Customer has more than one point of delivery, its annual
estimates will included separate estimates of annual usage and
Peak Usage use for each of its points of delivery.
2.5 Customer's Annual Amount. The Customer's Annual Amount (used to
calculate monthly charges under § 7.5) shall be equal to the Customer's §
2.4 annual estimated Reclaimed Water use, unless adjusted as described
below. The parties agree that the adjustments below are just and
reasonable, in part because they provide greater stability in System
revenues and, therefore, in the supply of Reclaimed Water. Disputes over
these adjustments to the Annual Amount shall be resolved by arbitration.
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2.5.1 If Customer fails to withdraw at least 50% of 1/12th of the Annual
Amount each month for any twelve (12) consecutive months, for any
reason other than rainfall or disruption of service by Fort Worth, then
the Director may reduce the Annual Amount to an amount
approximating the Customer's actual historical usage over the
previous twelve (12) months. Months in which the Reclaimed Water
is reduced by Fort Worth, through no fault of Customer, shall not be
included in determining whether Customer has withdrawn at least
50% of 1/12th of the Annual Amount within the consecutive 12-
month period.
2.5.2 The parties may agree to any adjustments, in writing, signed by the
Customer and the Director. The Director may, in their discretion,
increase the Annual Amount at the Customer's request, subject to
available capacity and other factors related to the provisions of
Reclaimed Water.
2.5.3 The Director may unilaterally increase the Annual Amount to reflect
actual historical use if the. Customer exceeded the total annual
Reclaimed Water use by an average of 30 % or more in the three
prior Fiscal Years, and the Customer will be responsible for all
increase -related costs pursuant to § 3.1.3 and § 3.3.
2.5.4 If Customer ceases taking Reclaimed Water from the System for two
or more consecutive years, then the Director may adjust the Annual
Amount to an amount equal to the average of the Customer's
highest and lowest annual usage. The Director has the discretion to
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keep that Annual Amount in effect for the term of this Agreement, or
until the Customer withdraws at least that Annual Amount for two or
more consecutive years, whichever is sooner. Annual withdrawals of
less than 10% of Customer's highest historical Annual Amount will
be deemed to be cessation of use for purposes of this adjustment.
Alternatively the Director may allow the Annual Amount to be
reduced to actual withdrawals, and all subsequent requests to
increase the Annual Amount will be subject to available capacity.
2.6 Fort Worth may limit the maximum flow rate of the Customer's meter to the
estimated peak flow rate, through the installation and use of a flow control device, such
as, but not limited to, an orifice plate.
2.7 Service Interruptions. Equipment failures, plant upsets, water line breaks
and other similar events may cause disruptions to Fort Worth's Reclaimed Water Service.
In such events, Fort Worth will use all reasonable efforts to restore service as soon as
possible and limit the duration of any such disruptions. However, Fort Worth shall have no
liability arising out of or related to interruptions in Customer's Reclaimed Water service
causeA by such events.
2.8 If Fort Worth determines that the Reclaimed Water System is not compliant
or is near noncompliance with its TCEQ Reclaimed Water authorization or other
Applicable Law, then Fort Worth may cease the delivery of Reclaimed Water to Customer
to allow for such measures as determined necessary by Fort Worth to remain compliant
with its TCEQ permit and Applicable Law. Fort Worth shall have no liability arising out of
or related to interruptions in Customer's Reclaimed Water service caused by such events.
3. Meters; Responsibilities
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3.1 All Reclaimed Water furnished under this Agreement by Fort Worth shall be
measured by one or more meters as approved by Fort Worth and shall be equipped with
continuous flow Cl"d chart -recording devices. All meters, recording devices, and
appurtenances shall be approved and installed by Fort Worth at the Customer's point of
delivery.
3.1.1 Customer shall be solely responsible for all costs associated with the
meter, to include the meter vault, recording devices, equipment and
appurtenances, and installation costs.
3.1.2 Fort Worth shall be responsible for the costs associated with the
operation and maintenance of the meter, to include the meter vault,
recording devices, equipment and appurtenances, and necessary
replacement, as determined by Fort Worth, caused by malfunction or
ordinary wear and tear. Replacement costs shall be a System Cost.
3.1.3 If the Customer's meter or metering equipment is upgraded or
replaced to increase flows to the Customer as provided in this
Agreement, then the Customer is responsible for the cost incurred
and associated with the upgrade and/or additional capacity that is
over and above the cost of replacement as reasonably determined
by Fort Worth.
3.2 The Customer's point of delivery is the meter vault connection to
Customer's side of the meter installed at the locations identified as required by § 2.4. All
mains and distribution facilities on the Customer's side the point of delivery are the sole
responsibility of the Customer. No meter shall be moved or relocated except as agreed,
in writing, signed by both parties made a part of this agreement by Amendment.
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3.3 If Fort Worth determines through historical review that the Customer's
meters) is not sufficiently sized for the amount of Reclaimed Water that Customer takes,
then Customer shall be responsible for the cost and expense of upgrading such meter to
the appropriate size as reasonably determined by Fort Worth.
3.4 In the event of an unforeseeable mechanical failure, or an unusual high rate
of Reclaimed Water usage, or a Reclaimed Water main break of Customer, Customer
shall notify Fort Worth within twenty-four (24) hours of the occurrence of the emergency
condition and follow all procedures required by Applicable Law and as requested by Fort
Worth. Notwithstanding these conditions, the Volume Charge for all Reclaimed Water
delivered to the Customer shall be due and payable.
4. Point -of -Delivery, Meter, Testing
4.1 Fort Worth shall have the right to test for accuracy, service and calibration
of the meter at each Customer point of delivery as Fort Worth reasonably determines is
necessary. The meters shall be tested at least once each twelve (12) month period. Fort
Worth shall provide copies of the results of such test and all related information to
Customer in a timely manner.
4.2 Customer shall have access to the metering facilities for its point of delivery
at all reasonable times; provided, however, that any reading, calibration or adjustment to
such metering equipment must be done i) by employees or agents of Fort Worth, or other
mutually approved third party calibration agent; and ii) in the presence of representatives
of Customer and Fort Worth. Notification of any testing shall be provided to the Customer
at least seventy-two (72) hours prior to such test being conducted and Customer may
observe such test, if so desired.
4.3 If any calibration indicates that the accuracy envelope of the meter is found
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to be lower than ninety-five percent (95%) or higher than one hundred five percent
(1059/o), expressed as a percentage of the full scale of the meter, the registration of the
flow as determined by the meter shall be corrected for a period extending back to the time
such inaccuracy began if that time is ascertainable; or, if that time is not ascertainable,
then for a period extending back one-half (1/2) of the time elapsed since the date of the
last calibration, but in no event further back than a periodmonths. All meters will
be properly sealed, and the seals shall not be broken unless representatives of both
parties have been notified and given a reasonable opportunity to be present.
4.4 If any meter used to determine the flow of Reclaimed Water to Customer is
out of service or out of repair, so that the amount of Reclaimed Water metered cannot be
ascertained or computed from the meter reading, then the Reclaimed Water delivered
during the period that the meter is out of service or out of repair shall be estimated based
on reasonable factors, such as extrapolation of past patterns of flow for the meter under
similar conditions. Fort Worth may, in its own discretion, consider the volume of
Reclaimed Water delivered to the Customer's retail users to determine Customer's flow.
If the parties cannot agree on the extrapolated estimate of Reclaimed Water volumes
delivered, then the flow volume will be determined by arbitration.
4.5 Each party has the duty to notify the other immediately upon its own
knowledge that a Reclaimed Water meter is not functioning properly. Fort Worth shall
repair such meter as promptly as is reasonably practicable after learning of the meter's
malfunction.
5. Meter Reading
5.1 Fort Worth will read each of the Customer's point -of -delivery meters at
monthly intervals. Fort Worth will keep records of all meter readings. Customer shall
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have access to those records during reasonable business hours. Monthly readings for
each point of delivery meter will be included with Customer's monthly bill for Reclaimed
Water service.
5.2 If Customer has more than one point of delivery from the System, then the
sum of all meter readings shall be used to calculate the Customer's monthly Volume
Charge.
5.3 A review of Reclaimed Water usage amounts by Customer for the past
twelve (12) months shall be made during the presentation of the October bill each year.
6. Billin
6.1 Fort Worth will send bills for Reclaimed Water service to Customer each
month. All bills shall be due and payable by Customer thirty (30) days from the billing
date. The bills will show current charges, as well as past -due charges, if any. Past -due
charges shall be the total unpaid amount from all prior billings up to the current billing
date. Payments received by Fort Worth shall first be applied to the past -due charges, if
any, and thereafter to the current charges.
6.2 If Customer disputes a bill and is unable to resolve the difference informally,
Customer shall notify the Director in writing. If the Director and Customer are unable to
resolve the disputed bill, the dispute will be resolved by arbitration. Dispute of a bill shall
not be grounds for non-payment. For all past due charges, Customer shall pay Fort
Worth an interest charge of ten percent (10%) per annum, calculated from the date that
the payment was required to be made. If a billing adjustment is agreed upon by the
parties or established by arbitration, then the amount of any over -payment to Fort Worth
will be credited to Customer's account together with an interest charge of ten percent
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(10%) per annum calculated from the date the over -payment was received.
6.3 If requested by the Director, Customer shall provide quarterly the following
a. Actual number of individual users (by user account) using
Reclaimed Water from the Customer system within its service
area;
b. Actual monthly usage volumes of individual users (by user
account) from the Customer system within its service area;
c. Copies of service agreements or contracts between the
Customer and individual users within its service area.
Customer may require that Fort Worth pay the reasonable costs of providing the
requested data.
7. Rates and Charges
7.1 Rate. The rate per thousand gallons of Reclaimed Water ("Rate") is a
wholesale rate, charged pursuant to this Agreement. The Rate is set annually pursuant
to this Agreement, based on the System -wide cost -of -service rate study as provided in §
7.2, except when the terms of this Agreement require (i) fixed rates under § 7.3, which are
either the Initial Rates or rates based on the Annual 504 Adjustment or (ii) the Maximum
Rate under § 7.4. Fort Worth will maintain the records and documents related to the
annual rate studies and annual adjustment of the Rates, and these records shall be
available for Customer inspection at the Fort Worth Water Department during reasonable
business hours and upon prior request by Customer.
7.2
Cost -of Service Rate Methodology
7.2.1 System -Wide Cost of Service.
The cost -of -service rate will be
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determined based upon a System -wide cost -of -service rate study
performed by an independent utility rate consultant as provided in
§ 7.2.3. The Director shall select the independent utility rate
consultant from a list of qualified firms submitted to the Director by
the Reclaimed Water System Advisory Committee. The cost of any
rate study under this Agreement is a System Cost. All rate studies
shall use the cash basis of determining revenue requirements
applicable to the wholesale customer class of Reclaimed Water
purchasers. To determine the System -wide cost of service, the
independent utility rate consultant shall include relevant factors,
including: total volume, rate of flow, metering, utility costs, cost of
supplies, customer -related costs (such as accounting, billing, and
monitoring), system losses, debt service expenses, franchise fees,
Reserve Fund levels, and historical and projected use.
7.2.2 Rates to be Sufficient. The Rates shall be sufficient to promote
confidence in the financial stability of the System; to maintain and
support Fort Worth's credit; to enable Fort Worth to raise the money
necessary to pay the costs associated with the System of
reasonable and necessary operation and maintenance expenses,
debt service payments, and capital expenditures that are not debt
financed or contributed; and to maintain a reserve equal to twenty
(20) percent of the operation, maintenance and debt service
expenses associated with the System (the "Reserve Fund") in
accordance with City of Fort Worth Financial Management Policies,
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as adopted and amended from time to time by the Fort Worth City
Council.
7.2.3 Annual Rate Studies. For FY 2012, and every three (3) years
thereafter, the Rate will be established by a detailed wholesale
System -wide Reclaimed Water cost -of -service rate study performed
by an independent utility rate consultant selected by the Director as
provided in § 7.2.1. After the first rate study, the rate consultant will
use the same methodology that was used in the immediately
previous rate study. In the interim Fiscal Years between detailed
rate studies, Fort Worth will adjust the Rate annually, using the same
methodology as the last detailed rate study, using: the actual
operating expenditure for the twelve (12) month period ending
September 30th of the prior year, adjusted for all known and
measurable changes in cost data since the last adopted System
budget; historical usage; the Reclaimed Water use estimated by the
Customer under § 2.4, and the Reserve Fund. Annual rate studies
are necessary and shall be performed each year, regardless of
whether the Rate charged is determined by the rate study, or by §
7.3 (a fixed rate) or § 7.4 (a Maximum Rate).
7.3 Fixed Rates and Subsidy by Fort Worth during the Initial Years of Operation
Fort Worth and Customer acknowledge that, during the initial years of
System operation, a rate based purely on cost -of -service may not be competitive in the
Customer's Reclaimed Water market. To provide more marketable rates during these
initial years, Fort Worth agrees to the fixed rates and fixed rate increases in §§ 7.3.1 and
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7.3.2. Fort Worth further agrees that, if those Rates do not produce sufficient revenue to
meet the System revenue requirements in any one Fiscal Year, Fort Worth will pay an
annual Subsidy equal to the shortfall. The annual payment of the Subsidy will be
calculated as of September 30 each year.
7.3.1 Fixed Rates before FY 2015. Rates for the initial 5 years of this
Agreement are fixed as follows:
Fiscal Year 2010 $1.45 per 1,000 gallons.
Fiscal Year 2011 $1.45 per 1,000 gallons.
Fiscal Year 2012 $1.50 per 1,000 gallons.
Fiscal Year 2013 $1.50 per 1,000 gallons.
Fiscal Year 2014 $1.50 per 1,000 gallons.
These § 7.3.1 Rates will remain in effect until Fort Worth recoups the
Cumulative Subsidy, or through the Fiscal Year beginning October 1,
2014, whichever occurs first.
7.3.2 Annual 5 Percent Increase. If Fort Worth does not fully recoup the
Cumulative Subsidy before the end of the 2014 Fiscal Year, then the
Rate for Fiscal Year 2015, and each Fiscal Year thereafter until Fort
Worth fully recoups the Cumulative Subsidy, will be calculated by
multiplying the prior FY Rate times 1.05, resulting in a fixed annual
5% increase in the Rate.
Source of Recoupment. Fort Worth is entitled to recoup the entire
amount of the Cumulative Subsidy, without interest, out of revenue
produced by the Rates. Each Fiscal Year that System revenue
exceeds the annual cost -of -service revenue requirement, the excess
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revenue shall be transferred to Fort Worth until Fort Worth has
recovered the Cumulative Subsidy. At the end of the Fiscal Year in
which Fort Worth first fully recoups the Cumulative Subsidy, any
revenue received in excess of the Cumulative Subsidy will become
the initial Reserve Fund balance.
7.4 Maximum Rate Protection.
7.4.1 In any Fiscal Year, if the Rate exceeds the Maximum Rate, then the
Rate will be adjusted to equal the Maximum Rate. However, if the
Maximum Rate is less than the Rate in effect for the Fiscal Year just
ended, the Rate will not be lowered based on the Maximum Rate,
but will simply remain unchanged for that new FY. The Maximum
Rate is the equivalent of the volume rate portion of the City of Fort
Worth wholesale treated water contract rate (which currently is not a
volume -only rate), as that rate may be adjusted from time to time, as
reasonably determined by Fort Worth for each year that the
Maximum Rate is in effect. Exhibit C is the current example of this
calculation. The City currently charges a wholesale treated water
rate pursuant to contracts with over 25 wholesale customers
(primarily cities); if the City enters into new contracts after the
existing contracts expire, then the calculation of the Maximum Rate
will be adjusted as necessary to carry out the intent of the parties to
this Agreement that the Maximum Rate approximate the City's
wholesale treated water contract rate
include Fort Worth's cost of raw water.
The Maximum Rate shall
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7.4.2 If the resulting § 7.4.1 Rate does not produce sufficient revenue to
meet the System revenue requirements in any Fiscal Year, Fort
Worth agrees to resume paying an annual Subsidy equal to the
shortfall. To allow Fort Worth to recoup that Subsidy, Customer
agrees that the § 7.3.2 ("Annual 5 Percent Increase") will be in effect
the following Fiscal Year, and thereafter in any year when the
resulting Rate does not trigger the Maximum Rate, until Fort Worth
fully recoups any Cumulative Subsidy that accumulates from time to
time.
7.5 Charges. Charges for Reclaimed Water commence on the day when Fort
Worth first makes Reclaimed Water service available at the Customer's point of delivery,
7.5.1 Volume Charge. Customer shall pay Fort Worth a Volume Charge
for all Reclaimed Water withdrawn from the System at the
Customer's point of delivery. The Volume Charge is calculated
monthly as:
a. the amount of Reclaimed Water withdrawn from the system at
the Customer point of delivery during the monthly billing
period (in gallons x 1000) times,
b. the Rate in effect for that monthly billing period.
Minimum Charge. If the Reclaimed Water withdrawn from the
System at the Customer's point of delivery for any one monthly
billing period is less than half of the Customer's Annual Amount,
divided by twelve (12), then the Customer shall pay a Minimum
Monthly Charge instead of the § 7.5.1 Volume Charge. The
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Minimum Monthly Charge is calculated as:
a. fifty percent (5070) of the Customer's Annual Amount (in
gallons x 1000) divided by twelve (12) months, multiplied
by
b. the Rate in effect for that monthly billing period.
The parties agree that this monthly minimum charge is just and
reasonable, and is necessary to establish a minimum cash flow to
meet the operating expenses and debt service for the System.
Exhibit D presents three examples of how the monthly minimum and
any credit shall be calculated.
7.5.3 Adjustments to the Minimum Charge. When the System is
financially self-supporting and the Reserve Fund has been
established, Fort Worth may modify or eliminate this minimum
monthly charge. If the Customer is prevented from withdrawing
Reclaimed Water because of an extended interruption in Fort
Worth's delivery of Reclaimed Water (exceeding 5 consecutive
days), then the Minimum Monthly Charge shall be proportionately
reduced for that monthly billing cycle, based on the number of 24-
hour days that no Reclaimed Water was delivered by Fort Worth.
Credits. In any Fiscal Year that Customer incurs a Minimum Monthly
Charge for a month, but its annual withdrawal is equal to or greater
than its Annual Amount, Fort Worth will credit the Customer's
account with a credit (in dollars) calculated as:
a. the total charges for that year, minus
Execution Copy 20
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b. the Annual Amount / 12 x the Rate.
Examples of this calculation are in Exhibit D. Fort Worth will first
apply the credit to past -due charges, if any, and thereafter to current
charges.
7.6 Customer to Collect Resale Rates. Customer agrees throughout the term
of this Agreement, (i) to fix and collect such rates and charges for Reclaimed Water
service supplied by Customer as will produce revenues in an amount equal to at least all
of the operation and maintenance expenses of the Customer system, including
specifically its payments due to Fort Worth under this Agreement; and all other amounts
as required by Applicable Law, (ii) to enact or pass all ordinances or resolutions
authorizing the System's revenue bonds or other obligations now or hereafter
outstanding, including the amounts required to pay its allocable share as a System
customer of all principal of and interest on such bonds and other obligations.
7.7 Rates Charged to Additional Reclaimed Water Customers
7.7.1 Retail Customers. When and if Fort Worth provides Reclaimed
Water service to its retail customers, in the § 7.2 annual cost -of -
service study, Fort Worth shall allocate System Costs proportionately
between a retail customer class and a wholesale customer class.
The allocation shall be based upon generally acceptable rate -making
principles, and taking into consideration relevant factors, which may
include the facilities and customer services required to provide
Reclaimed Water Service to each customer class.
Wholesale Customers. New wholesale customers, added as
provided in § 12, shall pay the Rates as provided in this
Execution Copy 21
4-23-09
Agreement, and such other contributions, connection fees, rates
and charges as may be determined by Fort Worth to be in the best
interest of the System and its customers.
8. Effective Date; Term
8.1 Effective Date. The effective date of this Agreement shall be the date it is
fully executed by both parties. Reclaimed Water service to Customer begins on the date
the Reclaimed Water facilities and points of connection are constructed and Fort Worth
makes Reclaimed Water service available at the Customer's point of delivery.
8.2 Term. The term of this Agreement shall be twenty (20) years from the
Effective Date, subject to termination under Article 14. This Agreement may be renewed
on terms mutually agreeable to the parties.
9. Easements and Rights -of -Way
9.1 Customer shall grant, without charge to Fort Worth, such easements and
rights -of -way along public highways or other property owned by Customer, as requested
by Fort Worth for the purpose of constructing and/or maintaining Reclaimed Water mains
or facilities within the Customer's service area, as necessary to provide Reclaimed Water
service to Customer and as allowable by Applicable Law, to other areas. Alternatively, if
the Customer has owner cities, then Customer shall request its owner cities to grant,
without charge to Fort Worth, such easements and rights -of -way, or at Customer's
election, if the Customer's owner cities do not grant such easements and rights -of -way,
Customer shall grant licenses for the duration of this Agreement, as requested by Fort
Worth for the purpose of constructing and/or maintaining Reclaimed Water mains or
facilities within the Customer's service area, as necessary to provide Reclaimed Water
service to Customer and, as allowable by Applicable Law, to other areas. The easements
Execution Copy 22
4-23-09
and rights -of -way will be in a form reasonably acceptable to Fort Worth. Upon notice
from Customer and at Fort Worth'S expense, Fort Worth will move System water mains or
facilities located in street rights -of -way, or other property owned by Customer, when
reasonably necessary to the performance of essential governmental duties by Customer.
9.2 Fort Worth shall grant, without charge to Customer, such easements and
rights -of --way along public highways or other property owned by Fort Worth, as requested
by Customer, for the purpose of constructing and/or maintaining Reclaimed Water mains
or facilities within Fort Worth to provide reclaimed water to Customer. Upon notice from
Fort Worth and at Customer's expense, Customer will move such reclaimed water mains
or facilities when located in such street rights -of -way or other property owned by Fort
Worth when reasonably necessary to pen`ormance of essential governmental duties by
Fort Worth. All work done by or on behalf of Fort Worth under this paragraph will be
performed in accordance with specifications equal to those applying to work of a similar
nature performed within Fort Worth, but neither party hereto will be required to restore the
otherIs property to a condition exceeding its original condition, unless otherwise mutually
agreed in writing. Fort Worth and Customer agree to coordinate the location of the mains
and/or facilities in the other's easements and rights -of -way or license areas in order to
prevent further conflicts insofar as is reasonably practicable.
10. Reclaimed Water Use Requirements
10.1 The use of Reclaimed Water is regulated by the Texas Commission on
Environmental Quality ("TCEQ") under Chapter 26 of the Texas Water Code and 30
Texas. Administrative Code Ch. 210, and by Article VII of Chapter 35 of the Fort Worth
City Code, as it may be amended from time to time. Customer and its officers, agents,
employees, contractors and subcontractors, shall abide by and comply with Applicable
Execution Copy 23
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Law. Fort Worth may in its sole discretion, immediately terminate the delivery of
Reclaimed Water upon its good faith belief that a violation of any Applicable Laws) has
occurred.
10.2 Title 30 Texas. Administrative Code Ch. 210 states: "The producer of
reclaimed water will not be liable for misapplication of reclaimed water by users, except
as provided in this section," and lists certain requirements for providers and users.
Customer acknowledges that its actions under this Agreement may fall within the
definition of both a provider and a user from time to time. Customer agrees that
Applicable Laws include its obligation to comply with the requirements of Section 210.E
for providers and users, based on the capacity in which the Customer is acting.
11. Resale of Reclaimed Water
Customer agrees that it will not share the Customer system or any other facilities
for Reclaimed Water use with any other governmental or corporate entity outside of the
Customer's Service Area as identified in Exhibit E, without the prior written consent of
Fort Worth. Fort Worth neither recognizes nor approves any existing agreements entered
into by Customer with other governmental or corporate entities outside its service area
prior to the effective date of this Agreement.
12. Adequate Supply
Fort Worth will use its best efforts to provide an adequate supply of Reclaimed
Water for all of its customers. Before Fort Worth contracts with additional wholesale
Reclaimed Water service applicants, the Director will consult with the Reclaimed Water
System Advisory Committee and provide reasonable assurances that the projected five
(5) year Reclaimed Water demands of both the then -existing wholesale customers and
the proposed additional customer can be adequately fulfilled. Reasonable assurances
Execution Copy 24
4-23-09
may include an analysis of the economic feasibility of providing the requested service to
the new customer, taking into account additional operating and maintenance costs,
potential capital costs required to expand the System infrastructure, projected annual
volumes requested by the applicant, funds contributed by the applicant to defray
System expansion costs and impacts on the Volume Charge. Because Fort Worth, the
Dallas Fort Worth International Airport Board, and the Cities of Euless and Arlington
negotiated the terms of this Agreement collectively, and entered into their contracts
contemporaneously, those contracts do not require further assurances under this
Article 12.
13. Reclaimed Water System Advisory Committee
Customer's governing body shall appoint a representative to be a voting member
of the Reclaimed Water System Advisory Committee, whose purpose shall be to consult
with and provide advice to Fort Worth on matters related to the System pertaining to
conservation, wholesale planning, improvements, and additional wholesale Reclaimed
Water customers. The Committee shall establish bylaws governing the election of
officers, meeting dates and other matters pertinent to its function. It is understood and
agreeA that, by execution of this Agreement, neither Fort Worth nor any other Customer
waives or surrenders any of its governmental powers or immunities. The Committee shall
act on an advisory basis and its actions or decisions shall not bind the Fort Worth City
Council or the City of Fort Worth,
14. Termination
14.1 This Agreement may be terminated without cause by the mutual consent of
Customer and Fort Worth. Such termination shall be effective ninety (90) days from the
date of such mutual consent, which shall be in writing, signed by both parties.
Execution Copy 25
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14.2 Except as otherwise allowable herein, this Agreement may also be
terminated by either party for breach and/or failure to perform any of the duties or the
obligations as described hereunder or to faithfully keep and perform any of the terms,
conons Cl" provisions of this Agreement by either party (hereinafter "breach"). Upon
such breach, the non -breaching party may deliver to the breaching party, written notice of
its intention to terminate this Agreement if the breaching party fails to cure such breach no
later than forty-five (45) days from the date of the notice. Such notice shall also include a
reasonable description of the breach. The non -breaching party shall notify the breaching
party in writing upon acceptance of the cure of any breach. If by the forty-fifth (45t") day
the breaching party fails or refuses to cure such breach pursuant to the terms and
conditions of this Agreement, then and in such event, the non -breaching party shall have
the right to terminate this Agreement by issuing notice of termination and all rights,
powers, and privileges of the breaching party shall cease and terminate.
14.3 Upon a second breach of a similar nature by a party and irrespective of any
cure of such breach, the non -breaching party may, after six (6) months written notice
provided to the breaching party terminate this Agreement. In the event of such
termination, all rights, powers, and privileges of breaching party hereunder shall cease
and breaching party shall make no claim of any kind whatsoever against non -breaching
party, its agents, or representatives, by reason of such termination or any act incident
thereto.
14.4 The following is anon -exclusive list of acts or omissions which shall be
considered a breach of this Agreement
a. Failure to make any payment of any bill, charge or fee as provided
for in this Agreement;
Execution Copy 26
4-23-09
b. Making any connection to the System at any point except as
provided in Section 3.2 hereof;
c. Continuous failure to provide Fort Worth ingress and egress to any
metering facility for purposes of operation and maintenance of;
d. Failure to provide Fort Worth rights -of -way and/or easements or
licenses as required herein; and
e. Failure to strictly comply this Agreement and with all Applicable
Laws.
14.5 Any failure by a -party to terminate this Agreement or the acceptance by Fort
Worth of any payments for delivered Reclaimed Water under this Agreement for any
period of time after such breach shall not be determined to be a waiver by Fort Worth or a
non -breaching party of any rights to terminate this Agreement pursuant to the terms
herein. No waiver by either party hereto of any term or condition of this Agreement shall
be deemed or construed to be a waiver of any other term or condition or subsequent
waiver of the same term or condition.
15. Ownership of the System
15.1 No provision of this Agreement, including the use of the cash basis for rate
studies, shall be construed to create any Customer ownership or equity in the System.
Customer payments (whether past, present, or future) shall not be construed as granting
Customer partial ownership of, pre -paid capacity in, or equity in the System.
15.2 This Agreement will not be construed in any form or manner to establish a
partnership, joint venture or agency, express or implied, nor any employer -employee,
borrowed servant or joint enterprise relationship by and among the parties. Each party
shall be an independent contractor and shall be responsible at all times for directing its
Execution Copy 27
4-23-09
employees in the course of their duties.
16. Third Party Beneficiaries
This Agreement shall inure only to the benefit of the parties hereto and any person
oI entity not a party to this Agreement shall not, in any form or manner, be considered a
third party beneficiary of this Agreement. Each party to this Agreement is solely
responsible to fulfill its own contract obligations or commitments.
17. Liability
17.1 Customer shall be solely responsible for any and all claims, damages,
deaths, losses, injury, fines, penalties, suits and liability of every kind, including
environmental liability (the "Liabilities"), arising from the Customer's or the Customer's
reclaimed water users' use, distribution or discharge of the Reclaimed Water on the
Customer's side of the point of delivery, whether such use is intended or accidental, or
authorized by this Agreement and Applicable Laws or otherwise. Customer shall be
solely responsible for any and all claims, damages, deaths, losses, injury, fines, penalties,
suits and liability of every kind arising from or relating to the design, installation,
construction, connection, maintenance, operation and modification of its own system.
18. Force Maleure
18.1 If by any reason of force majeure either party hereto shall be rendered
unable, wholly or in part, to carry out its obligations under this Agreement, other than
the obligation of the Customer to make payments required under the terms hereof, then
if such parties shall give notice and full particulars of such force majeure in writing to the
other party within a reasonable time after the occurrence of the event or cause relied
on, the obligation of the party giving such notice, so far as it is affected by such force
Execution Copy 28
4-23-09
majeure, shall be suspended during the continuance of the inability then claimed, but
for no longer period, and such party shall endeavor to remove or overcome such
inability with all reasonable dispatch.
18.2 The term "force majeure", as employed herein shall mean acts of God,
strikesI lockouts or other industrial disturbances, acts of public enemy, orders of any kind
of the government of the United States or the State of Texas, or any civil or military
authorityI insurrection, riots, epidemics, landslides, lightning, earthquake, fires,
hurricanes, storms, floods, washouts, droughts, arrests, restraints of government and
people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or
canals, partial or entire failure of Reclaimed Water supply, and inability on the part of Fort
Worth to deliver Reclaimed Water.
19. Notices
Any notice, communication, request, reply or advice herein provided or permitted
to be given, made or accepted by either party to the other party must be in writing to:
City of Fort Worth: Water Director
City of Fort Worth
1000 Throckmorton Street
Fort Worth, TX 76102
Customer: City Manager
City of Euless
201 N. Ector Drive
Euless, Texas 76039
The parties hereto shall indicate in writing any change that may occur in such respective
addresses from time to time.
20. Inspection and Audi
20.1 Upon prior notice by Fort Worth, any duly authorized employee of Fort
Worth bearing proper credentials and identification shall have access to any premises
Execution Copy 29
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located within Customer's service area or served by Customer as may be necessary for
the purpose of inspections and observation, measurements, sampling and testing and/or
auditing, in accordance with the provisions of this Agreement.
20.2 Complete records and accounts required to be maintained by each party
hereto shall be kept for a period of five (5) years after their creation. Each party shall at all
timesI upon notice, have the right at reasonable times to examine and inspect said
records and accounts during normal business hours; and further, if required by any law,
rule or regulation, make said records and accounts available to federal and/or state
auditors.
21. Request for Service by Fort Worth
21.1 At the request of the Director, but only to the extent permitted by applicable
law and at no additional cost to Customer, Customer agrees to furnish Reclaimed Water
to areas and premises situated adjacent to the boundary of Customer and within the
boundaries of Fort Worth. The metered quantity of Reclaimed Water delivered used in
this area each month by Fort Worth shall be the total of all individual Fort Worth customer
meter readings. At the option of Customer or Fort Worth, a meter may be installed where
practicable at the expense of Fort Worth to meter all Reclaimed Water used by Fort
Worth under the terms of this section.
21.2 Each month, the metered quantity of Reclaimed Water furnished by
Customer to Fort Worth shall be deducted from the total quantity of Reclaimed Water
withdrawn from the System by the Customer, before computing the Customer's Volume
Rate Charge for that month.
22. Arbitration
22.1 The parties shall endeavor, but only to the extent permitted by applicable
Execution Copy 30
4-23-09
law and at no additional cost to Customer, to settle all disputes arising out of or relating to
this contract by amicable negotiations. However, where this Agreement expressly states
that a controversy or claim arising out of or relating to this Agreement will be settled by
arbitration, the Parties shall arbitrate the dispute or claim under the following procedures.
22.2 Such controversy or claim arising out of or relating to this Agreement as
provided for herein, shall be resolved by binding arbitration administered by the Federal
Mediation and Conciliation Services ("FedMed") in accordance with its Commercial
Arbitration Rules and judgment on the award may be rendered by the arbitrators and
entered in any court having jurisdiction thereof. The procedure for initiation and conduct
of the binding arbitration will be as follows:
a. The arbitration may be commenced by either party by the service of a
written request for arbitration ("Request for Arbitration") upon the other
party. The Request for Arbitration shall summarize the controversy and
claims to be arbitrated.
b. The arbitration shall be heard in Tarrant County, Texas before an
arbitration panel comprised of three (3) arbitrators. Upon initiation of a
Request for Arbitration by either party hereto, each party, within fifteen
(15) days of the date of the Request for Arbitration, shall select an
arbitrator. The arbitrators selected by the claimant and respondent
shall, within ten (10) days of their appointment, select a third arbitrator.
In the event the two arbitrators are unable to agree upon a third
arbitrator, then FedMed shall appoint the third neutral arbitrator. Prior to
commencement of hearings, each of the arbitrators appointed shall
provide an undertaking of impartiality. In determining the appropriate
Execution Copy 31
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background of the third arbitrator, the first two arbitrators shall give due
consideration to the issues to be resolved.
22.3 Judgment on the award rendered by the arbitrators may be entered in any
court having jurisdiction thereof.
22.4 Both parties may allow their clients, representatives, witnesses and agents
to participate and observe the Arbitration proceedings without compromising any
attorney/client or confidentiality privileges otherwise applicable. However, no other third
party may participate or observe an Arbitration proceeding.
22.5 Fort Worth's arbitration costs shall be a System Cost.
23. Licenses, Permits and Fees
23.1 Customer agrees to obtain and pay for all licenses, permits, certificates,
inspections and all governmental approvals as required by Applicable Law, including
those necessary for the use of Reclaimed Water.
23.2 This Agreement, so long as it is in effect between the parties, constitutes a
Fort Worth permit for the Customer to use Reclaimed Water under TCEQ Authorization
for Reclaimed Water No. R10494-013.
24. Miscellaneous
24.1 If any one or more of the provisions in this Agreement shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement; and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision was
not had never been contained herein
24.2 Whenever possible, each provision of this Agreement shall be interpreted to
be effective and valid under applicable law, but if any provision of this Agreement, or its
Execution Copy 32
4-23-09
application to any person or entity under any circumstance, is invalid or unenforceable to
any extent under Applicable Law, and the extent of the invalidity or unenforceability does
not cause substantial deviation from the underlying intent of the Agreement, then such
provision shall be deemed severed from this Agreement with respect to such person,
entity or circumstance, without invalidating the remainder of this Agreement or the
application of such provision to other persons, entities or circumstances, and a new
provision shall be deemed substituted in lieu of the provision so severed which new
provision shall, to the extent possible, accomplish the intent of the parties as evidenced
by the provision so severed.
Execution Copy 33
4-23-09
24.3 The parties acknowledge that each party and, if it so chooses, its counsel
have reviewed and revised this Agreement and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation %J this Agreement or any amendments or exhibits to it. As
used in this Agreement, the term "including" means "including without limitation," the
words "shall" and "will" are mandatory and the word "may" is permissive, and the term
"days" means calendar days, not business days. Wherever required by the context, the
singular shall include the plural, and the plural shall include the singular. Each defined
term may be used in its singular or plural form whether or not so defined.
24.4 In addition to any other remedy provided by law, this Agreement shall be
specifically enforceable by the parties hereto.
24.5 SHOULD ANY ACTION, WHETHER REAL OR ASSERTED, AT LAW OR IN EQUITY, ARISE
OUT OF THE TERMS AND CONDITIONS OF THIS CONTRACT, VENUE FOR SAID ACTION SHALL BE IN
TARRANT COUNTY, TEXAS.
24.6 Modifications or amendments to this Agreement must be in writing and
approved by the governing body of each party. Both parties agrees to implement and
abide by any changes in this Agreement made necessary by Applicable Law, including
any new, amended, or revised state or federal regulation.
24.7 Incorporation of Exhibits by Reference. All exhibits attached to this
Agreement are incorporated into this Agreement by reference for the purposes set forth
herein, as follows:
Exhibit A TCEQ Reclaimed Water Authorization and "Service Area"
Exhibit B Form for submitting Customer's estimate of Reclaimed Water
use as required by § 2.4
Exhibit C Maximum Rate Calculation Example
Exhibit D Volume Charge Calculation Examples
Exhibit E Customer's Service Area
Execution Copy 34
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IN TESTIMONY WHEREOF, after proper action by the respective governing
bodies of the parties hereto, we have caused these presents to be executed in
quadruplicate copies, each of which is considered to be Cl" original and the seals of the
respective parties to be hereto affixed on the date above written.
(THIS SPACE INTENTIONALLY BLANK]
Execution Copy 35
4-23-09
City Secretary, City of Fort W,
APPROVED AS TO FORM
C rista W Reynolds
Assistant City Attorney, City of Fort Worth
Date: t � A)w - J V6,
APP . L REC MM NDED:
a T "6
Frank Crumb
Director
City of Fort Worth Water Department
CITI�
BY:
City Manager
APRRO_V_EQ_AS TfD FORMAND I.EEALITY:
BoP1'NlcFarland
City Attorney
Date: c "7' �i
CITY OF FORT WORTH
Contract, Authori atiOR
Date
ATTEST:
Susan Crirr��
City Secretary, TRMC
OFFICI�IL RECORD'
CITY SECRI�TARY
T. WORTH, TX
Execution Copy 36 �'
4-23-09
EXHIBIT A
TCEQ Reclaimed Water Authorization and "Service Area"
Execution Copy 37
4-23-09
EXHIBIT A
- CCEIVEFDr
Kathleen Hartnett "Thite, ChainnanAPR 0
Larry R. Soward, Commissioner o
Martin A. Hubert, Commissioner WATER DEPA-P iM N
Clenn Shankle, Executiae Director
TEXAS UOMMISSION ON ENVIRONMENTAL QUALITY
Protc>ctiny Torus by Reducing and ,°rcn entirty Po((ution
March 23, 2007
Mr. 5. Frank Crumb, P.E.
Director, Fort Worth Water Department
City of Fort Worth
1000 Throckmorton
Fort Worth, "Texas 76102
Re: Reclaimed Water Authorization
Village Creek Wastewater Treatment Plant
TPDES Permit No. WQ0U10494013
WWPR R 10491-013
CN600128862; RN102076924
Tarrant County, Texas
Dear Mr. Crumb:
We have received your request to amend your Reclaimed Water Authorization to include areas shown
on the revised service area map which will be shown in your amended authorization as 'Attachment
A". The revised area is to include all areas within the current city limits, the city's Extraterritorial
Jurisdiction (ETJ), city limits of wholesale customers and surrounding cities, and all other areas within
Tarrant, Parker, Denton, Dallas, Johnson and Wise Counties. The project being updated consists of
the reuse of wastewater effluent from the Wastewater Treatment Plant referenced above. The treated
effluent will be used for the Type I and Type II uses as defined in 30 TAC §210.32 (Specific Uses of
Rec]aimed Water).
If you have any questions please contact Louis Herrin at (512) 239-4552 or Wanda Hamstra at
(512)239-2583.
Since
Chris Linen`tfCi11, Manager
Wastewater Permitting Section
Water Quality Division
F_,nclosure
cc: City of Fort 4VorYh, wiattachments
TCFQ Region 4 C)rfice, wialtac-h;nents
TCI:Q Water Quality Division. Application RevievN and Processing'reani
(M- . Katherine NylcKenzie (MC 148)_ w/attachments
P.(). }3os 13(JS7 • Austin, Tesas 70711-31)87 • 512%l"'39-IOOU • (nteniet aridress: ,v.vw.tcer).state.tx.us
37.1
Authorization No. R10494-013
This authorization supersedes
and replaces R 10494-013
approved August 28, 2006
AUTHORIZATION FOR RECLAIMED WATER
Producer: City of Fort Worth
P.O. Box 870
Fort Worth, Texas 76101
Producer: City of Fort Worth
P.O. Box 870
Fort Worth, Texas 76101
Users: Any user that the City of Fort Worth permits as a distributor or a bulk user of the reclaimed
water.
Location: The wastewater treatment plant is located southeast of the confluence of the West Fork
Trinity River with Village Creek in Tarrant County, Texas.
Authorization: Reclaimed water from the City of Fort Worth Village Wastewater Treatment Plant (TPDES
Permit No. WQ0010494013), to be used as defined in Title 30 Texas Admstrative Code,
(30 TAC) Chapter 210, Use ofReclaiined 91ater. See Attachment "A" for service area map.
This authorization contained the conditions that apply for the uses of the reclaimed water. The approval of
a reclaimed water use project under Chapter 210 does not affect any existing water rights. If applicable, a
reclaimed water use authorization in no way affects the need of a producer, provider and/or user to obtain
a separate water right authorization from the commission.
This action is taken under authority delegated by the Executive Director of the Commission on
Environmental Quality.
[sued Date: March 23, 2U07
f
For the Commission
37.2
City of Fort worth
Reclanned water Project
Authorization No. R10494-013
Page 2
Ltmitatiotls: The authorization is subjected to the following requirements:
I. General Requirements.
(a) No wastewater treatment plant operator (producer) shall transfer to a user reclaimed
water without first notifying the conunission.
(b) Reuse of untreated wastewater is prohibited.
(c) Food crops that may be consumed raw by humans shall not be spray irrigated. Food
crops including orchard crops that will be substantially processed prior to human
consumption may be spray irrigated. Other types of irrigation that avoid contact of
reclaimed water with edible portions of food crops are acceptable.
(d) There shall be no nuisance conditions resulting from the distribution, the use, and/or
storage of reclaimed water.
(e) Reclaimed water shall not be utilized in a way that degrades ground water quality to a
degree adversely affecting its actual or potential uses.
(f) Reclaimed water managed in ponds for storage must be prevented from discharge into
waters in the state, except for discharges directly resulting from rainfall events or in
accordance with a permit issued by the commission. All other discharges are
unauthorized. If any unauthorized overflow of a holding pond occurs causing discharge
into or adjacent to waters in the state, the user or provider, as appropriate, shall report
any noncompliance. A written submission of such information shall also be provided to
the commission regional office and to the Austin Office, Water Enforcement Section
(MC-149), within five (5) working days of becoming aware of the overflow. The written
submission shall contain a description of the noncompliance and its cause; the potential
danger to human health or safety, or the environment; the period of noncompliance,
including exact dates and times; if the noncompliance has not been corrected, the
anticipated time it is expected to continue; and, steps taken or planned to reduce,
eliminate, and prevent recurrence of the noncompliance, and to mitigate its adverse
effects.
(g) The irrigation site must be maintained with a vegetative cover or be under cultivation
during times when reclaimed water is being applied. The irrigation practices shall be
designed so as to prevent incidental ponding or standing water except where local
farming conditions and the accepted irrigation delivery systems and cropping patterns are
such that, as an unavoidable consequence of such conditions, systems, and patterns, there
will be standing water. Irrigation application rates and application times shall be
developed so as to minimize "wet grass" conditions in unrestricted landscaped areas
during the periods the area could be in use. Irrigation systems shall be designed so that
the irrigation spray does not reach any privately -owned premises outside the designated
irrigation area or reach public drinking f tintains. There shall be no application of
effluent when the ground is water saturated or frozen. Distribution systems must be
lestcFrterl fO hre<rcrf rph\ nflnrn 1h._s ,, ,,:fh ... r r nn I tr•f :f� � `a'r?ii,. 1 7 l cr cc: er:.c. : c ct. - L ,.c
managed in a manner to minimise the inadvertent contact of reclaimed water with
humans. Operational or t.ailwater controls shall be provided to preclude discharge of
reclaimed water from irrigation sites.
t 1) Signs in both English and Spanish shall be posted at storage areas, hose bibs and faucets
reading "Reclaimed Water, Do Not Drink" or similar warnings. Alternately, the area
may be secured to prevent access by the public.
37.3
City of Fort Worth
Reclaimed Water Project
Authorization No. R10494-013
Page 3
(i) The reclaimed water user shall provide reasonable control of the application rates for
reclaimed water applied to irrigation areas. These controls shall encourage the efficient
use of reclaimed water and avoid excessive application of reclaimed water that results in
surface runoff or excessive percolation below the root zone.
(j) The reclaimed water provider or user, as applicable shall determine and document typical
irrigation demands for the proposed use based on type of vegetation and land area to be
irrigated.
(k) The reclaimed water provider shall be responsible for conducting periodic audits of
appropriate controls implemented by reclaimed water users.
(1) All hose bibs and faucets shall be painted purple and designed to prevent connection to a
standard water hose. Hose bibs shall be located in locked, below grade vaults which
shall be clearly labeled as being of non -potable quality. As an alternative to the use of
locked, below grade vaults with standard hose bibs services, hose bibs may be placed in
a non -lockable service box which can only be operated by a special tool so long as the
hose bib is clearly labeled as non -potable water.
(m) One of the following requirements must be met by the user or provider, for any area
where reclaimed water is stored or where there exist hose bibs or faucets:
(1) Signs having a minimum size of eight inches by eight inches shall be posted at
all storage areas and on all hose bibs and faucets reading, in both English and
Spanish, "Reclaimed Water, Do Not Drink" or similar warning.
(2) The area shall be secured to prevent access by the public.
(n) Where a reclaimed water line parallels a sewer line, the reclaimed water line shall be
constructed in accordance with subsection (p) or (q) of this section. The horizontal
separation distance shall be three feet (outside to outside) with the reclaimed water line
at the level of or above the sewer line. Reclaimed water lines which parallel sewer lines
may be placed in the same benched trench. Where a reclaimed water line crosses a sewer
line, the requirements of Chapter290.44(e)(5)(B) (Location of Water Lines) shall be
followed, with "reclaimed water line" substituted for "water line."
(o) Reclaimed water lines which transport reclaimed water under pressure shall be sized
according to acceptable engineering practices for the needs of the reclaimed water users.
The designer shall consider methods to prevent or maintain lines to mitigate the effect of
the deposition of solids in such lines. Pipe specified for reclaimed water force mains
shall be of a type having an expected life at least as long as that of the lift station and
shall be suitable for the reclaimed water being pumped and operating pressure to which it
will be subjected. All pipe shall be identified in the technical specifications with
appropriate American Society for Testing and Materials, American National Standard
Institute, or American Water Works Association (AWWA) standard numbers for both
quality control (dimensions, tolerance, and installation such as bedding or backfill). All
pipes and fittings shall have a minimum working pressure rating of 150 pounds per
F(ltlRrt' ii1C'}l. 1`lr);il glans a11d st)eC'ifiCatlt�ns shall deSc.i-jl-le t'et711ired !,resstire 'Ill
installed reclaimed water force mains. Minimum test pressure shall be 1.5 times the
maximum design pressure. Allowable leakage rates shall be determined as described in
Chapter 317 relating to Pressure Sewer Systclrts.
(p) Gravity flow reclaimed water lines sliali meet the r<tfuirerrtc;nts of Chapter 317. The
designer shall consider methods to prevent high velocity scour or maintain liue fluid
velocity to mitigate the effects of the deposition of solids in the gravity conveyance.
37.4
Ciw of Fort Worth
Reclaimed Water Project
Authorization No. R10494-013
Page 4
(q) All exposed piping and piping wn a building shall be either purple pipe or painted
purple. All buried piping installed after the effective date of these rules shall be one of
the following: manufactured in purple, painted purple, taped with purple metallic tape, or
bagged in purple. All exposed piping should be stenciled in white with a warning
reading "NON -POTABLE WATER." All exposed or buried reclaimed water piping
constructed at a wastewater treatment facility is exempt from the color coding
requirements of this section.
(r) When applicable, in accordance with Chapter 317 the Design Criteria for Sewerage
System, the design of distribution systems which will convey reclaimed water to a user
shall be submitted to the executive director and must receive an approval. The design of
the distribution systems must meet the requirements of Chapter 317. Where a
municipality is the plan review authority for certain sewer systems which transport
primarily domestic waste, in lieu of the commission, design submittal will not be subject
to submittal to the commission and instead must be approved by the municipality.
Materials shall be submitted for approval by the executive director in accordance with
the Texas Engineering Practice Act (Article 3271 a, Vernon's Annotated Texas Statutes).
(s) All ground level and elevated storage tanks shall be designed, installed, and constructed
in accordance with current AWWA standards with reference to materials to be used and
construction practices to be followed, except for health -based standards strictly related
to potable water storage and contact practices, where appropriately less restrictive
standards may be applied.
(t) The reclaimed water producer and user shall maintain on the sites a current operation
and maintenance plan. The operation and maintenance plan which shall contain, as a
minimum the following:
(1) a copy of a signed contract between the user and producer and ;
(2) a labeling and separation plan for the prevention of cross connections between
reclaimed water distribution lines and potable water lines;
(3) the measures that will be implemented to prevent unauthorized access to
reclaimed water facilities (e.g., secured valves);
(4) procedures for monitoring reclaimed water;
(5) a plan for how reclaimed water use will be scheduled to minimize the risk of
I
nadvertent human exposure;
(6) schedules for routine maintenance;
(7) a plan for worker training and safety; and
(8) contingency plan for system failure or upsets.
(u) If effluent is to be used for irrigation within the Edwards Aquifer recharge zone, plans
and specifications for- the disposal system must be submitted to the executive director for
review and approval prior to construction of the facility in accordance with Chapter 213
(Edwards Aquifer Rules).
I?ecl�..,ed lA':ae..
(a) A11 initial holding ponds containing Type tI effluent, located in a vulnerable area as
defined by a rating of 1 10 or greater on the statewide "Cir c�urtcl-i1'ntc>r Pc,lltrlion Pv�crt[irtl
- (Jeneral, Alunicipal, and 11MUs11aiul.S0111cc>s" iDKAS I'it map, shall conform to the
following requirements:
(1) The ponds, whether constructed ofearthen or other impervious material, shall be
designed and constructed so as to prevent groundwater contamination;
37.5
C�IIV of Furt Worth
Reclain ed Water Project
Authorization No. R10494-013
t'age $
(2) Soils used for pond lining shall be free from Foreign material such as paper,
brush, trees, and large rocks;
(3) All soil liners must be of compacted material, at least 24 inches thick, compacted
in lifts no greater than 6 inches thick and compacted to 95% of Standard Proctor
Density. In -situ clay soil's meeting the soils liner requirements shall be
excavated and re -compacted a minimum of 6 inches below planned grade to
assure a uniformly compacted finished surface.;
(4) Soil Iiners must meet the following particle size gradation and Atterberg limits:
(A) 30% or more passing a number 200 mesh sieve; and
(B) a liquid limit of 30% or greater; and a plasticity index of 15 or greater
and have a permeability less than or equal to 1 X 10' cm/sec;
(5) Synthetic membrane linings shall have a minimum thickness of 40 mils with a
leak detection system. In situ liners at least 24 inches thick meeting a
permeability less than or equal to I X 10' cm/sec are acceptable alternatives;
(6) Certification shall be furnished by a Texas Registered Professional Engineer that
the pond lining meets the appropriate criteria prior to utilization of the facilities;
and
(7) Soil embankment walls shall have a top width of at least five feet. The interior
and exterior slopes of soil embankment walls shall be no steeper than one foot
vertical to three feet horizontal unless alternate methods of slope stabilization are
utilized. All soil embankment walls shall be protected by a vegetative cover or
other stabilizing material to prevent erosion. Erosion stops and water seals shall
be installed on all piping penetrating the embankments.
(b) All initial holding ponds designed to contain Type I and Type II effluent, located in areas
in the state not identified in subsection (a) of this section shall conform to the following
requirements:
(1) The ponds, whether constructed of earthen or other impervious materials, shall
be designed and constructed so as to prevent groundwater contamination;
(2) Soils used for pond lining shall be free from foreign material such as paper,
brush, trees, and large rocks;
(3) All soil liners must be of compacted material having a permeability less than or
equal to 1 x t0-' cm/sec, at least 24 inches thick, compacted in lifts no greater
than 6 inches each;
(4) Synthetic membrane linings shall have a minimum thickness of 40 mils. In situ
liners at least 24 inches thick meeting a permeability less than or equal to 1 X 10"
d cin/sec are acceptable alternatives;
(5) Certification shall be furnished by a Texas Registered Professional Engineer that
the pond lining meets the appropriate criteria prior to utilization of the facilities;
and
(6) Soil embankment walls shall have a top width of at least five feet. The interior
t f�,.; , f t , ,.,..
XJ CS. .,0: S OpcS ii UL Cr;iJ ,,t. ;iti.. `."Ti.i bhaii 5C iiu stccpc; Oltai; JIiU UGt
vertical to three feet horizontal unless alternate methods of slope stabilization are
utilized. All soil embankment walls shall be protected by a vegetative cover or
other stabilizing material to prevent erosion. Erosion stops and water seals shall
be installed on all piping penetrating the embankments.
37.6
Cipof Fnrt Worth
Reclaimed Water Project
Authorization No. Rto494-013
Page G
(7) An alternative method of pond lining which provides equivalent or better water
quality protection than provided under this section may be utilized with the prior
approval of the executive director.
(8) A specific exemption may be obtained from the executive director if, after the
review of data submitted by the reclaimed water provider or user, as appropriate,
the executive director determines containment of the reclaimed water is not
necessary, considering:
(A) soil and geologic data, and ground water data, including its quality, uses,
quantity and yield; and
(B) adequate demonstration that impairment of ground water for its actual or
potential use will be prevented,
(c) Reclaimed water may be stored in leak -proof, fabricated tanks.
III. Specific Uses and Quality Standards for Reclaimed Water
Numerical parameter limits pertaining to specific reclaimed water use categories are contained in
this section. These limits apply to reclaimed water before discharge to initial holding ponds or a
reclaimed water distribution system. It shall be the responsibility of the reclaimed water
producer to establish that the reclaimed water meets the quality limits at the sample point for the
intended use in accordance with the monitoring requirements identified in Section IV relating to
Sampling and Analysis.
(a) Type I Reclaimed water Use. This type of use includes irrigation or other uses in areas
where the public may be present during the time when irrigation takes place or other uses
where the public may come in contact with the reclaimed water.
(b) The following conditions apply to Type I of uses of reclaimed water. At a minimum, the
reclaimed water producer shall only transfer reclaimed water of the following quality for
Type I reclaimed water uses, reclaimed water on a 30-day average shall have a quality of:
CBODS 5 mg/L
Turbidity 3 NTU
Fecal Coliform 20 CFU/100 nil*
Fecal Coliform (not to exceed) 75 CFU/100 nil**
* geometric mean
** Single grab sample
(c) Type II Reclaimed Water Use. The type of use where the public would not come in
contact with the reclaimed water.
(d) The following conditions apply to this type of use of reclaimed water. At a minimum, the
reclaimed water producer shall only transfer reclaimed water of the following quality as
described for Type I1 reclaimed water use, reclaimed water on a 30-day average shall
have a quality of:
CIBOD
Fecal Coliform 200 CFU/l00 nil*
Fecal Coliform (not to exceed) 800 CFU/100 nil?*
* geometric mean
** single grab sample
(e) In the evens a reclaimed water provider or user proposes to design, construct. or operate a
reclaimed water system or to utilize reclaimed water in a manner other than permitted in
this authorization, the provisions of Chapter 210 Subchapter D shall apply.
37.7
City of Fort Worth
Reclaimed Water Project
Authorization No, R10494-013
Page 7
N. Sampling and Analysis.
"I'he reclaimed water producer shall sample the reclaimed water prior to distribution to user to
assure that the water quality is in accord with the intended contracted use. Analytical methods
shall be in accord with those specified in Chapter 319 (relating to Monitoring and Reporting).
The minimum sampling and analysis frequency for Type I reclaimed water is twice per week and
for Type II reclaimed water is once per week.
The monitoring shall be done after the final treatment unit. These records shall be maintained on
a monthly basis and be available at the plant site for inspection by authorized representatives of
the Commission for at least five years.
V. Record Keeping and Reporting.
(a) The reclaimed water provider and user shall maintain records on site fol- a period of five
years.
(1) Records to be maintained by the provider include:
(A) copies of notifications made to the commission concerning reclaimed
water projects.
(B) as applicable, copies of contracts made with each reclaimed water user
(this requirement does not include reclaimed water users at residences
that have separate distribution Iines for potable water).
(C) records of volume of water delivered to each reclaimed water user per
delivery (this requirement does not apply to reclaimed water users at
residences that have separate distribution lines for potable water).
(D) reclaimed water quality analyses.
(2) The reclaimed water producer shall report to the commission on a monthly basis
the following information on forms furnished by the executive director. Such
reports are due to the commission by the 20th day of the month following the
reporting period.
(A) volume of reclaimed water delivered to provider.
(B) quality of reclaimed water delivered to a user or provider reported as a
monthly average for each quality criteria except those listed as "not to
exceed" which shall be reported as individual analyses.
V I. "lransf er afReclaimed Water.
IZf'CIT}1?7?f!1 w,'IfEr frnnSfei-ret'1 FrT\+r� � l�rn\'+der i(l � �,�er c1�0l1 lie Cl<�Tle C�,^, ;T �(;•,,:2^.(� Oi11y' I�:IS;S.
'Phis means that the reclaimed water user may refuse deIively of such water at any time. All
reclaimed water transferred to a user must be of at least the treatment quality specified in
Section 1I1. Transfer shall be accomplished via pipes or tank trucks.
37.8
Citv of Fort Worth
Reclaimed Water Project
Authorization No. R10494-013
Page $
VII. General Prohibitions.
Storage facilities far retaining reclaimed water prior to use shall not be located within the
floodway and shall be protected from the 100-year flood.
VIII. Restrictions.
This authorization does not convey any property right and does not grant any exclusive privilege.
iX. Responsibilities and Contracts.
(a) The producer of reclaimed water will not be liable for misapplication of reclaimed water
by users, except as provided in this section. Both the reclaimed water provider and user
have, but are not limited to, the following responsibilities:
(1) The reclaimed water producer shall:
(A) transfer reclaimed water of at least the minimum quality required by this
chapter at the point of delivery to the user for the specified use;
(B) sample and analyze the reclaimed water and report such analyses in
accordance with Sections IV and V relating to Sampling and Analysis
and Record keeping and Reporting; respectively; and
(C) notify the executive director in writing within five (5) days of obtaining
knowledge of reclaimed water use not authorized by the executive
director's reclaimed water use approval.
(2) The reclaimed water provider shall:
(A) assure construction of reclaimed water distribution lines/systems in
accordance with 30 TAC Chapter 317 and in accordance with approved
plans and specifications;
(B) transfer reclaimed water of at least the minimum quality required by this
chapter at the point of delivery to the user for the specified use;
(C) notify the executive director in writing within five (5) days of obtaining
knowledge of reclaimed water use not authorized by the executive
director's reclaimed water use approval; and
(D) not be found in violation of this chapter for the misuse of the reclaimed
water by the user if transfer of such water is shut off promptly upon
knowledge of misuse regardless of contract provisions.
(3) The reclaimed water user shall:
(A) use the reclaimed water in accordance with this authorization; and
(B) maintain and proaide records as required by Section V relating to
Record Keeping; "mod Reporting
�. En force mcnt.
If the prcxluc:er. provtder and!or user fails to comt�ly with the terms of this authorization, t}le
executtve director may take en{.t}rcement action provided by the "Iexas Water Cade, §�2(i.019
and 26.136.
37.9
City of Fort worth
Reclaimed water Project
Authorization No. R10494-013
Page 9
XI. STANDAkD PKOVISIONS:
(a) This authorization is granted in accordance with the Texas Water Code and the rules and
other Orders of* the Commission and the laws of the State of Texas.
(b) Acceptance of this authorization constitutes an acknowledgment and agreement that the
provider and user will comply with all the terms, provisions, conditions, limitations and
restrictions embodied in this authorization and with the rules and other Orders of the
Commission and the laws of the State of Texas. Agreement is a condition precedent to
the granting of this authorization.
37.10
ty of Fort Worth
Reclaimed Water Project
Authorization No, R10494-013
Page 10
Attachment "A"
37.
March 9, 2007
Ms. Sherry Smith
Wastewater Permitting Section
Water Quality Division
Texas Commission on Environmental Quality
P.O. Box 13087
Austin, TX 78711
RE: Amendment to Service Area
Reclaimed Water Authorization R10494-013
Village Creek Wastewater Treatment Plant
TPDES Permit No. WQ0010494013
CN600128862; RN102076924
Tarrant County, Texas
Dear Ms. Smith:
The City of Fort Worth requests that the service area associated wish the above -
referenced reclaimed water authorization be amended per the attached revised service
area map. The service area has been revised to include all areas within the current City
Limits, the City's Extraterritorial Jurisdiction (ETJ), City Limits of wholesale customers
and surrounding cities, and all other areas within Tarrant, Parker, Denton, Dallas,
Johnson and Wise counties.
Tf you have any questions or concerns related to this request, please contact Mr. Richard
Talley at 817-392-8203. Your prompt consideration of this request is appreciated.
Sincerely,
O*R
S. Frank Crumb, P.E.
Director
Fort Worth Water Department
WATER DE!'ARTMENT
CITY Of FORT WORTH # I000 THROCXMORTON SrRser * FORT WORTH, TExas
817-392-8220 # Fnx 817-392-B195
..J Prinlyd on recycled paper
37.12
FORT WORT
Legend
® VCWWTP
�' Lakes
Fort Worth City Limit
Wholesale Water Customers
Surrounding Cities
Fort Worth ETJ
Counties
City of Fort Worth
Reclaimed Water Service Area
(Revised March 9, 2007)
1 1 1 1 � 1 ALAV ri.camtnc
ASSIXaATFti, hC.
a
EXHIBIT B
Form for Submitting Customer's Estimate of Reclaimed Water Use
Customer: City of Euless Date: 5.26.09
1. User's total maximum annual quantity of reclaimed water 120 Million Gallons
2. Peak usage required 1300 gallons per minute
3. Estimated Monthly volumes for October, 2010 through September 2011
MONTH
Approximate Usage (1000
gallons/month)
January
11489
February
1,433
March
21146
April
71660
May
11,363
June
16,686
July
24,139
August
23,706
September
13,126
October
91142
November
61353
December
21757
Does this Attachment A supersede a previous Attachment A? Yes ❑
If yes, what is the Effective Date of superseded Attachment A?
If yes, execution by authorized Fort Worth representative is required.
Fort Worth Water Department Representative Date
EXHIBIT C
Maximum Rate Calculation Example
based on the Wholesale Treated Water Contract Rate*
Maximum Rate Example from FY09 Wholesale Water Cost of Service Study:
WHOLESALE WATER VOLUME RATE
Treatment and Delivery Rate $ / kgal
Raw Water Rate $ / kgal**
RATE PER 1,000 GALLONS
$0.8277
$0.7424
Total Base Volume Rate $1.5701
The Maximum Rate calculated under this example would equal $1.5701 per 1,000
gallons.
* The "Maximum Rate" is calculated by adding the Treatment and Delivery Charge per
1,000 gallons and the Raw Water Out -of -District Charge per 1,000 gallons, as each of
those is calculated in the annual Wholesale Water Cost of Service Study, as shown in
this Exhibit C example.
** Fort Worth's cost of raw water presently includes the rate charged by the City's raw
water provider, the Tarrant Regional Water District, as adjusted by the provider from time
to time.
Execution Copy 39
4-23-09
EXHIBIT D
Volume Charge Calculation Examples
The following examples illustrate the calculation of Customer Charges under the
Agreement and resulting FY credits for three hypothetical Reclaimed Water Use
scenarios.
Example 1 -Customer uses less than Annual Amount during the fiscal year, and does
not use more than the Minimum Monthly Use in any one month.
Annual Amount (kgal)
Minimum Monthly Use (kgal)
Rate $/1,000 Gal
Monthly Minimum Charge:
Minimum Annual Charge:
October
November
December
January
February
March
April
May
June
July
August
Septembe
r
TOTAL
240,000 (x 1,000) gal
10,000 = 50% of Annual Amount / 12
$ 1 A5
$ 14,500 = Rate x Minimum Monthly Use
$ 1747000=$14,500 Minimum Monthly Charge x 12
months.
Monthly
Usage (kgal) Bill
51000 $14,500
0 $14,500
0 $14,500
0 $14,500
0 $14,500
0 $14,500
51000 $147500
51000 $14,500
10,000 $14,500
10,000 $14,500
57000 $14,500
5,000 $14,500
45,000 $174,000
Annual Charge $174,000
Credit to Next
FY $0
Execution Copy
4-23-09
Example 2 - Customer uses less than Annual Amount during the fiscal year, but uses
more than the Minimum Monthly Amount during some months. At FY year end,
Customer has paid more than the Minimum Monthly Charge x 12, but has not taken the
full Annual Amount. Fort Worth subtracts the Minimum Monthly Charge x 12 from the
actual amount paid and applies the difference to the Customer's account for the next
FY.
Annual Amount (kgal)
Minimum Monthly Use (kgal)
Rate $/1,000 Gal
Monthly Minimum Charge
Minimum Annual Charge:
October
November
December
January
February
March
April
May
June
July
August
Septembe
r
TOTAL
240,000 I gal
10,000 = 50% of Annual Amount / 12
$1.45
$141500 = Rate x Min. Monthly Use
$1741000=$14,500 Minimum Monthly Charge x 12
months.
Usage (kgal)
5,000
0
0
0
0
57000
10,000
15,000
201000
20,000
15,000
10,000
100,000
Monthly
Bill
$141500
141500
$141500
141500
$14,500
$141500
$14,500
$211750
$291000
$291000
$21,750
$14,500
$217,500
Annual Charge $174,000
Credit to Next
FY
$43,500
Execution Copy
4-23-09
41
Example 3 - Customer uses more than Annual Amount during the FY, but uses less
than the Minimum Monthly in some months. At FY end, Customer has paid more than
the Monthly Minimum Charge x 12, and has taken more than the full Annual Amount.
Fort Worth subtracts the Minimum Monthly Charge x 12 from the actual amount paid
and applies the remainder to the Customer's account for the next FY.
Annual Amount (kgal)
Minimum Monthly Use (kgal)
Rate $/1,000 Gal
Monthly Minimum Charge
Minimum Annual Charge:
Charges Due:
October
November
December
January
February
March
April
May
June
July
August
September
TOTAL
240,000 I Gal
101000 = 50% of Annual Amount / 12
$1 A5
$141500 = Rate x Min. Monthly Use
$ 1741000 = Annual Amount /2 x Rate
$ 355,250=$14,500 Minimum Monthly Charge x 12
months.
Usage (kgal) Monthly
Bill
301000 $43,500
151000 $21,750
0 $14,500
0 $147500
0 $14,500
151000 $21,750
151000 $21,750
301000 $43,500
351000 $50,750
357000 $50,750
401000 $58,000
301000 $43,500
245,000 $398,750
Annual Charge $355,250
Credit to Next $43,500
FY
Execution Copy
4-23-09
Exhibit E Customer's Service Area
Execution Copy 43
4-23-09
EXHIBIT E
43.1
M&C Review
Page 1 of 2
CITY COUNCIL AGENDA
DATE: 12/8/2009
CODE: C
COUNCIL ACTION: Approved on 12/8/2009
REFERENCE
N O..
TYPE:
C-23965
NON-
CONSENT
LOG NAME
PUBLIC
HEARING:
Official site of the City of Fort Worth, Texas
60RECLAIMED
WHOLESALE
CONTRACTS
NO
FORT WORTH
SUBJECT: Authorize the Execution of Wholesale Reclaimed Water Service Contracts with the City of
Arlington, the City of Euless and DFW International Airport and Authorize Execution of
Memorandum of Understanding for Federal Stimulus Funding with the City of Arlington,
the City Euless and DFW International Airport
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute individual contracts to provide Wholesale Reclaimed Water
Service to the City of Arlington, the City of Euless and the DFW International Airport; and
2. Authorize the City Manager to execute Memorandum of Understanding (M OU) for Federal Stimulus
funding with the City of Arlington, the City of Euless and the DFW International Airport.
DISCUSSION:
On May 10, 2005, the City Council approved C ity Secretary Contract No. 31841 (M&C C-20721) with Alan
Plummer Associates, Inc., (APAI) to design the Eastside Reclaimed Water System and to assist with
development of wholesale contracts for service to the Cities of Arlington and Euless and the DFW
International Airport.
To justify the City's cost in construction of the new reclaimed water distribution system needed large initial
customers to justify the construction of the system. Staff does not initially anticipate being able to recover
the capital and operational costs of the system through proposed wholesale rates as the full cost recovery
rate for reclaimed water would not be economical. However, the new reclaimed water distribution system
should be self-sufficient within five to 15 years depending on actual reclaim water usage.
Three customers were identified with having large enough need and use f or the reclaimed water service:
the City of Arlington, the City of Euless and the DFW International Airport. These customers have identified
uses for reclaimed water including golf courses, large parks, large irrigated areas, along with industrial
users (mainly gas well drillers) within their jurisdiction. The City of Euless has been trying for several years
to receive reclaimed water for their Texas Star Golf Course and Athletic Complex. The City in working with
the these three proposed customers for Wholesale Reclaimed Water Services developed economical
wholesale reclaimed water rates that are based on reclaimed water rates charged by other cities. All three
have approved and executed contracts through their appropriate governing bodies.
The contracts include the following terms:
Minimum monthly payments based on (50 percent) of monthly usage based on 1/12 of annual average
usage;
Rates for Fiscal Year 2011-Fiscal Year 2012 are set at $1.45/1,000 gallons;
Rates for Fiscal Year 2013-Fiscal Year 2014 are set at $1.5011,000 gallons; and
Rates starting in Fiscal Year 2015 will increase by five percent annually until such time as the cumulative
http://apps.cfwnet.org/council�acket/mc review.asp?ID=12769&councildate=l2/8/2009 12/28/2009
M&C Review
Page 2 of 2
amount of the annual system deficits has been recovered.
20 year term
MOU for Federal Stimulus Funding (DWSRF/ARRA Funding) with the City of Arlington, the City of Euless
and the DFW International Airport were also reached in anticipation of the City receiving such funding.
The MOU provides that Fort Worth and the wholesale customers will amend the original contract to
reduce any debt service avoided by stimulus funding, to incorporate a Capital Recovery Fee amount
based on the debt service avoided to be reserved for future capital expenditures on the Reclaimed Water
System and to normalize and/or average, the wholesale reclaimed water rate over a three-year period.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that the Water Department is responsible for the
collection and deposit of funds due to the City.
TO Fund/Account/Centers
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Fernando Costa (6122)
S. Frank Crumb (8207)
David Townsend (8430)
ATTACHMENTS
Reclaim Water Memorandum of Understanding.pdf
Wholesale Reclaim Water Contract.pdf
http://apps.cfwnet.org/council�acket/mc_review.asp?ID=12769&councildate=l2/8/2009 12/28/2009