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HomeMy WebLinkAboutContract 17930CITY SECTIETARY CONTRACT Nor1216- CONTRACT FOR WATER SERVICE BETWEEN THE CITY OF FORT WORTH, TEXAS, AND HASLET, TEXAS STATE OF TEXAS COUNTY OF TARRANT S S This contact and agreement is 'made and entered into this JP__ day of , , 19 7U, by and between the City of Fort Worth, a munici al corporation located in Tarrant County, Texas, acting by and through Ramon Guajardo, its duly authorized Assistant City Manager, hereinafter called "Fort Worth," and the City of Haslet, a municipal corporation located in Tarrant County, Texas, acting by and through 0,44 Cty) W h--rUT , its duly authorized Y0iC , hereinafter called "Customer." WHEREAS, Fort Worth has provided ,at its own expense, and now owns, operates and maintains facilities for processing and distributing a large supply of surface water, and at the present time is 'qualified to furnish and deliver treated water, both within and without the corporate boundaries of Fort Worth; and, WHEREAS, Customer has provided at its own expense and now owns, operates and maintains a distribution system; and furnishes water service to the customers within its boundaries, and, WHEREAS, Customer does not have and cannot provide economically and within a reasonable period of time, any other source of water supply, fully adequate to meet its present and/or future needs or potential emergency needs; and, MIME RECORD CITY SECRETARY FT. WORM H, TEX. -1- „UL ,a 4 44 WHEREAS, it is deemed to be in the best interest of both Fort Worth and Customer that said parties do enter into a mutually satisfactory agreement by means of which Customer may obtain from Fort Worth a supply of treated water at a reasonable rate; and, WHEREAS, by the execution of this contract, neither Fort Worth nor Customer will surrender any of its rights to the ownership and operation of its present water production and distribution facilities; and, WHEREAS, Customer desires to contract for the purchase of treated water and Fort Worth desires to sell treated water to Customer; and WHEREAS, Section 402.001 and 402.075 of the Texas Local Government Code, authorize Fort Worth and Customer to enter into this agreement; NOW, THEREFORE, KNOW ALL MEN 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: 1. Definitions 1.1 "Annual Consumption" is the total quantity of water purchased under the terms of this contract by Customer during the fiscal year of Fort Worth as determined by the difference in the annual October meter readings. 1.2 "Average Daily Use" is the total Annual Consumption divided by 365 days. 1.3 "Treatment, Pumping and Transmission Charge" is that part of the rate charged for 1,000 gallons used, regardless of rate of use. This charge shall include the maintenance and operation costs, and the capital facilities cost on the part of the production and transmission system related to annual use. 1.4 "Customer System" is all necessary Customer mains and distribution facilities on the Customer's side of the meter from and beyond the point of delivery of treated -water by Fort Worth. 1.5 "Delivery Facility" is any facility necessary for the transmission of water from the Fort Worth System that is on the Customer's side of the point of delivery that is constructed specifically to allow Fort Worth to serve Customer. 1.6 "Director" is the Director of the City of Fort Worth Water Department or his designee. 1.7 "Fiscal Year" is the fiscal year, of Fort Worth from October 1 through September 30. 1.8 "Fart Worth System" is the Fort Worth water treatment and distribution system. 1.9 "General Benefit Facilities" are water facilities that provide utility services and benefits common to all customers which include water treatment facilities, metering facilities, control systems and appurtenances, storage facilities, pumping facilities and all major mains that are sixteen inches (16") and greater in diameter. 1.10 "MGD" is million gallons per day. 1.11 "Maximum Day Demand" is the maximum quantity of water used by Customer during one calendar day of the Fiscal Year of Fort Worth. 1.12 "Maximum Hour Demand" or "Peak Hour Rate" is the quantity of water used by Customer during the one hour of the year that more water passed through the meter or meters serving the Customer than during any other hour of the Fiscal Year of Fort Worth multiplied by 24 hours. 1.13 "Rate of Use Charge" is the fixed charge determined for the Maximum Day Demand in excess of Average Daily Use and the Maximum Hour Demand in excess of Maximum Day Demand rates of use. 1.14 "Raw Water Charge" represents the rate for 1,000 gallons charged by the Tarrant County Water Control and Improvement District No. 1 to Fort Worth for raw water to be sold to the Customer plus eight percent (8%) of said rate, representing Fort Worth system losses of four percent (4%), and the street rental charge of four percent (4%). 1.15 "System Access Fee" is a capital contribution which represents a proportional capital cost of general benefit capital facilities capacity, less depreciation, outstanding debt, and contributions paid to Fort Worth, required to provide service for new connections, whether located within the jurisdictional limits of Fort Worth or Customer. 1.16 "System Cost" is the operating expense and capital related cost incurred by Fort Worth pursuant to the provision of water treatment and transmission to the wholesale class of water customers. Such costs are to be collected by Fort Worth as a component of the annual cost of providing wholesale water service. -4- 1.17 "Volume Charge" represents the combined treatment, pumping and transmission charge and the raw water charge in effect for the current Fiscal Year. 2. Terms and Conditions 2.1 Fort Worth agrees to furnish and sell to Customer treated water of potable quality meeting all applicable governmental standards, delivered under the normal, operating pressure prevailing in the Fort Worth System,,at the point or points of delivery mutually agreed upon. Customer agrees to accept delivery under the conditions of this agreement and to pay for the same in accordance with the terms herein. 2.2 In accordance with the terms of Fort Worth City Secretary Contract No. 12720 between Fort Worth, City of Arlington, City of Mansfield, Trinity River Authority and the Tarrant County Water Control and Improvement District No. 1, this contract shall be deemed subordinate in all respects to the water requirements of the above contracting parties as specified in Section 3 of that contract. 2.3 If Fort Worth shall ration the use of water throughout its corporate limits or issue water conservation measures or restrict the use of water in any way, Customer agrees to institute and apply the same rationing, conservation measures, or restrictions to the use of water by the customers of Customer for so long as any part of the total water supply of the Customer is being furnished by Fort Worth. Fort Worth agrees to consult with the Water System Advisory Committee, hereinafter created, in the development of any conservation or rationing plans that may be necessary to address operational constraints whether or not same are required by any state or federal regulatory agency, or are deemed advisable by the Water System Advisory Committee to manage long term System Costs, except where emergency conditions may dictate short-term conservation or rationing requirements as may be determined by the Director to meet all necessary water demands. 2.4 Customer is indirectly served by Fort Worth's Beach Street ground storage reservoir site. In the e'ent that the Fort Worth system capacity is unable to meet all of the wholesale demands at the Beach Street ground storage reservoir site, Customer agrees that the available capacity for wholesale customers will be allocated among each wholesale customer served from the Beach Street ground storage reservoir site based upon the percentage of the total annual use of the site which the wholesale customers used during the immediate previous fiscal year. Customer and Fort Worth agree that the capacity of the delivery facilities to the North Beach ground storage reservoir site is limited and that in the future concurrent demands may exceed the Fort Worth system's capabilities. Nothing contained in this agreement shall be construed as imposing any unconditional obligation on Fort Worth to supply any water ire, excess of the Fort Worth System capabilities. 2.5 Fort Worth will use its best efforts to provide an adequate water supply for all of its wholesale customers served from the North Beach Street ground storage reservoir site. Prior to the approval of contracts for additional wholesale customers to be served either directly from the North Beach Street ground storage reservoir site or indirectly through existing wholesale customers served from the North Beach Street ground storage reservoir site, Fort Worth will cause to be conducted such engineering studies as deemed appropriate to provide reasonable assurances that the projected five-year water demands of the then -existing wholesale customers can be adequately fulfilled. Fort Worth shall consult with the Water System Advisory Committee, hereinafter created, regarding the addition of wholesale customers to be served directly or indirectly from the North Beach ground storage reservoir site. The decision of Fort Worth regarding additional wholesale customers shall be final and in no manner alter any rights and obligations of either party to this agreement. 3. laocation and Maintenance of Measuring Devices 3.1 All water furnished under this agreement by Fort Worth shall be measured by one or more suitable meters equipped with continuous flow, chart -recording devices, and telemetering equipment connected with the Fort Worth control center. All meters, recording devices, telemetering equipment and appurtenances shall be approved and installed by Fort Worth. Customer shall pay for the meter vault and all metering equipment, including telemetering equipment to the Fort Worth control center, and appurtenances, plus the installation cost thereof. Fort Worth shall pay all costs associated with the operation and maintenance of said equipment and shall pay for the replacement of said equipment ps necessary. Such costs, as well as charges for the telelink line and microwave transmitter and the power to operate same, shall be a System Cost. 3.2 The point or points of delivery of treated water by Fort Worth shall be the meter vault connection to Customer's side of the meter, and all necessary mains and distribution facilities from and beyond said point shall be the responsibility of Customer. The location of each meter shall be mutually agreed upon in writing by and between the parties hereto, and the meter or meters shall not be moved or relocated except by mutual consent in writing by the parties hereto. 3.3 For the cost of each additional Customer connection to the Fort Worth System, Customer will pay an amount not less than that which would be paid by a developer to Fort Worth under its then existing connection and line extension policy, or an amount agreed upon mutually by Fort Worth, Customer, and the Water System Advisory Committee. 3.4 Either party, at its own expense, may install a check meter to check or measure the volume of water passing the master meter, provided that, if such check meter is installed, the same rules and regulations relative to its operation, maintenance and reading shall apply as to the master meter being tested. 4. Meters 4.1 Fort Worth shall routinely test for accuracy, and service and calibrate if necessary, the master meter(s) no less than once during each twelve (12) month period. Copies of the results of such calibration and all related information shall be provided to Customer. Customer shall have access to the metering facilities at all reasonable times; provided, however, that any reading, calibration or adjustment to such metering equipment shall be done by employees or agents of Fort Worth, or other mutually approved third party calibration agent, in the presence of representatives of Customer and Fort Worth, if so requested by Customer. Notification of any proposed test 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. 4.2 Upon any calibration, if it is determined that the accuracy envelope of such meter is found to be lower than ninety-five percent (95%) or higher than one hundred five percent (105%) expressed as a percentage of the full scale of the meter, the registration of the flow as determined by such defective meter shall be corrected for a period extending back to the time such inaccuracy began, if such time is ascertainable; or, if such time -8- 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 period of six (6) months. 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. 4.3 If any meter used to determine the flow of treated water to Customer is out of service or out of repair so that the amount of water metered cannot be ascertained or computed from the reading thereof, the water delivered during the period such meter is out of service or out of repair shall be estimated and agreed upon by the parties hereto upon the basis of the best data available. The basis for estimating such flow includes, but is not limited to, extrapolation of past patterns of flow for said metering station under similar conditions. In the event that the parties hereto cannot agree on the extrapolated estimate of water volume delivered, agreement on the flow volume will be determined by third party arbitration, as hereinafter provided. 5. Meter Reading and Billing 5.1 Fort Worth will read all meters provided for herein at monthly intervals, and the parties to this agreement shall have free access to read these respective meters daily, if either party so desires. It shall be the duty of the parties to give immediate notice, each to the other, should any meter be found not functioning properly, and, upon such notice; repairs to such meter shall be made promptly. 5.2 All readings of meters will be entered in ink upon, bound journals maintained by Fort Worth. Customer shall have access to such records during reasonable business hours and shall be furnished with monthly readings for each point of delivery metering facility. 5.3 If Customer has more than one point of connection to the Fort Worth System the sum of all meter readings and rates of flow shall be used for the purpose of calculating the water Volume Charge and the Rate of Use Charge. 5.4 A review of water usage amounts by Customer for the past twelve (12) months shall be made during the presentation of the October bill each year. The October statements shall be prepared so as to reflect any and all Rates of Use Charges which have not been previously billed and paid. A copy of the rate of flow charts or other records showing the Maximum Day Demand and the Peak Hour Rate of the year shall be furnished to Customer with the October billing. 5.5 Bills for water service shall be rendered to Customer monthly by Fort Worth. All such bills shall be due and payable by Customer not more than 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 amount unpaid from all prior billings as of 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. 5.6 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, agreement on the bill will be determined by third party arbitration, as hereinafter provided. Dispute of a bill shall not be grounds for non-payment. In the event a payment is not paid as specified in this agreement, a finance charge of ten percent (10%) per annum will be calculated from the date which the payment was required to be made. In the. event that a billing -10- adjustment is agreed upon or established by arbitration the amount found to be incorrect will be credited to Customer's account together with an interest charge of ten percent (10%) per annum calculated from the date payment of the disputed bill was received. ss 6. Rates 6.1 Method of Rate Determination 6.1.1 Wholesale water rates will be based upon a cost -of -ser- vice rate study performed by independent utility rate consultants as provided for in Section 6.1.5 hereof. The independent utility rate consultant shall be selected by the Director from a list of five qualified firms submitted to the Director by the Water System Advisory Committee. The cost of any such study shall be a System Cost. All cost -of -service studies shall be conducted utilizing the utility cost basis of determining revenue requirements applicable to the wholesale customer class. 6.1.2 The cost -of -service for the wholesale class shall include 'allocated reasonable and necessary operation and maintenance expense, depreciation expense and a fair and reasonable return on allocated capital facilities. To determine the allocation and distribution of costs to the wholesale customer class, the independent utility rate consultant shall consider at least the following factors: total volume, rate of flow, metering, and customer -related costs such as accounting, billing, and monitoring. Capital -related costs will consist of depreciation expense and return on original cost rate base. The rate base shall consist of all allocated capital facilities, net of depreciation and contributions, and shall include construction work in progress, a reasonable allowance for working capital, and a reasonable inventory of materials and supplies necessary for -11.r. the efficient operation of the Fort Worth System. Records of the original cost and the accumulated depreciation of all capital facilities shall be maintained in the Fort Worth Fixed Asset Tracking System. These records shall be available for inspection at the Fort Worth Water Department during reasonable business hours upon request by Customer. 6.1.3 Fort Worth shall be allowed an adequate opportunity to earn a reasonable rate of return. The return shall be sufficient to assure confidence in the financial soundness of the utility, shall be adequate to maintain and 'support its credit•, shall enable it to raise the money necessary for the proper discharge of its public duties, and shall be equal to the weighted average imbedded cost of outstanding debt plus one and one-half percent (1-1/2%). 6.1.4 For the wholesale service period between October 1, 1987, and September 30, 1989, the wholesale water rate study completed September 1, 1987, by Touche Ross and Company will remain in effect. For the Fiscal Year beginning October 1, 1989, Touche Ross and Company will be hired to revise the wholesale water rate study completed September 1, 1987, using the same methodology, save and except that the detailed wholesale revenue requirement will be developed on an actual historical cost test year basis utilizing 1987-88 data and allowing for reasonable and necessary expenses of providing such wholesale water service. Fort Worth will adjust wholesale water rates annually for Fiscal Years beginning October 1, 1990, 1991 and 1992, using the same methodology as that utilized by Touche Ross and Company in its most recent rate study. 6.1.5 For the Fiscal Years beginning October 1, 1993, 1996, 1999, 2002, 2005 and 2008, a detailed wholesale water rate study will be performed by an independent utility rate consultant selected by the Director in conformance with Section 6.1.1 herein. -12- The same methodology used in the immediate previous rate study will be utilized by the rate consultant so selected. In the interim Fiscal Years between detailed rate studies, Fort Worth will adjust wholesale water rates annually, using the same methodology as the last detailed rate study, and will utilize the actual operating data for the twelve month period ending September 30th of the prior year, adjusted for all known and measurable changes in cost data that may have occurred since the last audited financial statement. Such adjustments should allow for year-end trending and the spreading ofMon-recurring expenses over an appropriate benefit period. 6.1.6 Changes in the wholesale water rate methodology will be allowed if recommended by a majority vote of the Water System Advisory Committee and approved by the Fort Worth City Council. For purposes of this section, a majority is defined as any combination of Fort Worth wholesale customers that took more than fifty percent (50%) of the wholesale water delivered by Fort Worth during the immediate past Fiscal Year. 6.2 Rates to be Used 6.2.1 . The charges for the initial period of this contract shall be from the date of its execution through September 30, 1989, and have been computed as follows: The Treatment, Pumping and Transmission Charge shall be $0.3183 per 1,000 gallons withdrawn by Customer. The raw water charge shall be $.5186 per 1,000 gallons for Customers inside the Tarrant County Water Control and Improvement District #1, and $.6191 for Customer's outside the District. The annual charge per MGD of Maximum Day Demand in excess of Average Daily Use shall be $62,974 per MGD, and Maximum Hour Demand in excess of the Maximum Day Demand shall be $29,450 per MGD. The service charge shall be $25.00 per month per meter. 6.2.2 The amount charged for raw water shall be increased or decreased when the raw water cost paid by Fort Worth for water available for treatment and sale to Customer is increased or decreased as determined by the Tarrant County Water Control and Improvement District No. 1 in accordance with Fort Worth City Secretary Contract No. 12720, and adjusted for system losses and street rental. 6.2.3 The parties hereto agree that services obtained pursuant to this contract are essential and necessary to the operation of Customer's waterworks facilities and that all payments made by Customer hereunder shall constitute reasonable and necessary operating expenses of Customer's waterworks and wastewater systems within the meaning of Article 1113, Vernon's Annotated Texas Statutes, and the provisions of any and all ordinances of Customer authorizing the issuance of any revenue bonds of Customer which are payable from its waterworks and wastewater systems. 6.2.4 Customer agrees, throughout the term of this agreement, to fix and collect such rates and charges for water service to be supplied as will produce revenues in an amount equal to at least (i) all of operation and maintenance expenses of such system, including specifically its payments under this agreement; and (ii) all other amounts as required by law and the provisions of the ordinances or resolutions authorizing its revenue bonds or other obligations now or hereafter outstanding, including the -14- amounts required to pay all principal of and interest on such bonds and other obligations. 6.2.5 Customer understands that Fort Worth City Council has the right to annually revise the rates charged to cover all reasonable, actual, and expected costs. Revision of rates shall be pursuant to the provisions set forth in this contract. Fort Worth shall give Customer a minimum of six (6) months notice of intent to revise rates. Fort Worth will furnish members of the Water Advisory Committee a draft copy ofthe cost -of -service study of the proposed rates sixty (60) days prior to Fort Worth submitting a rate increase request to its City Council. Within thirty (30) days of receiving the draft study, the Committee will submit its written comments on the draft study to Fort Worth, and Fort Worth will respond to these comments as soon thereafter as possible. If the Committee has not provided its written comments within said period, the Committee is deemed to have accepted the proposed rates contained in the draft study, and Customer agrees that it will be bound by the rates as approved by the Fort Worth City Council. The rates approved by the Fort Worth City Council shall be the rates to be used in this contract for the succeeding Fiscal Year. 7. Payment for Water Payment of charges to Fort Worth for water used by Customer shall be made as follows: 7.1 The annual payment will be the charges computed based on all water delivered by Fort Worth to Customer during the current Fiscal Year using rates provided herein. For purposes of calculating the annual payment, the current year will be the Fiscal Year during which the water usage occurred. However, the minimum annual payment, will be the greater of the following: -15- 1) the charges calculated by applying the current Volume Charge to Annual Consumption, the appropriate meter reading and billing charge, and the Rate of Use Charge for the current Fiscal Year; or 2) the current Fiscal year Volume 'Charge, the appropriate meter reading and billing charge, and the current Fiscal Year Rate of Use Charge applied to the average of the Maximum Day Demand above Average Daily Use and the average of the Maximum Hour Demand above Maximum Day Demand for the most recently completed three Fiscal Years. The most recently completed three Fiscal Years will include the current Fiscal Year; or 3) Twelve thousand dollars ($),2,000). 7.2 The rate at which water is withdrawn from the Fort Worth System by Customer shall be regulated by rate -of -flow controllers, pumps, or other approved methods. The rate of withdrawal shall be controlled,so that the maximum rate shall not exceed 1.35 times the Maximum Day Demand experienced during the previous year unless Customer has notified the Director in writing at least (6) months prior to the date of the anticipated increase in the Maximum Day Demand. The Director shall be furnished with all pertinent information regarding the proposed increase in maximum rate of withdrawal. The Director may waive all notice requirements if, in his sole opinion, said notice is not necessary to protect the interest of Fort Worth. 7.3 Except as provided for in section 8 below, the monthly payment will be the greater of either one thousand dollars ($1,000) or a sum equal to the Volume Charge for the actual volume of water taken plus one -twelfth (1/12) of the sum of the estimated Rate of Use Charges and the appropriate Fiscal Year charges for meter reading and billing., For purposes of -16- estimating the rate of use payments, the current Fiscal Year Rate of Use Charges will be applied to the prior Fiscal Year's Maximum Day Demand, Maximum Hour Demand and Average Daily Use. 7.4 The total annual payment for water by Customer shall be related to the annual and peak volumes used by Customer during the Fiscal Year, as determined by meters, flow recording devices or other approved methods, subject to the annual payment provisions set forth above. The October bill for September usage shall reflect any necessary adjustment to'the annual payment due to actual rates of withdrawal from the Fort Worth System. ' Example The rate used in the example is based on Customer not being in Tarrant County Water Control and Improvement District No. 1 and water being withdrawn at one metering station, and the Volume Charge and Rate of Use Charges in effect until September 30, 1990. Usage Month Oct. Nov. Dec. Jan. Feb. Mar. April May May June July August Subtotal Volume Consumption Charges 1,000,000 $ 988.00 1,000,000 $ 988.00 1,000,000 $ 988.00 1,000,000 $ 988.00 1,000,000 $ 988.00 2,000,000 $ 1,976.00 3,000,000 $ 2,964.00 3,000,000 $ 2,964.00 3,000,000 $ 2,964.00 3,000,000 $ 2,964.00 3,000,000 $ 2,964.00 4,000,000 $ 3,952.00 • 23,000,000 $22,724.00 Rate of Monthly Use Service Charges Charges Total $ 1,340.88 $25 $ 2,353.88 $ 1,340.88 $25 $ 2,353.88 $ 1,340.88 $25 $ 2,353.88 $ 1,340.88 $25 $ 2,353.88 $ 1,340.88 $25 $ 2,353.88 $ 1,340.88 $25 $ 3,341.88 $ 1,340.88 $25 $ 4,329.88 $ 1,340.88 $25 $ 4,329.88 $ 1,340.88 $25 $ 4,329.88 $ 1,340.88 $25 $ 4,329.88 $ 1,340.88 $25 $ 4,329.88 $ 1,340.88 $25 $ 5,,17 38 $14,749.68 $275 $37,748.68 -17- Sept. 3,000,000 2,964.00 2,603.56 25 5,592.56 26,000,000 $25,688.00 $17,353.24 $300 $43,341.24 Prior Year Rate Of Use Calculation (for use in estimated monthly Rate of Use Charge) Average Daily Use for the prior year 60,000 gallons Maximum Day Demand for the prior year = 175,000 gallons Maximum Hour Demand for the prior year = 480,000 gallons Maximum Day Demand above Average Daily Use = 115,000 gallons Maximum Hour Demand above Maximum Day Demand 305,000 gallpns Monthly Excess Maximum Day and Hour Payment Calculation .115 mg X $57,873 $ 6,655.40 (Maximum day) .305 mg X $30,935 9,435.18 (Maximum hour) Total $16,090.58 Monthly Rate of Use Payment (Total Divided by 12)= $1,340.88 A. The annual payment calculation will be computed on the basis of the current year maximum usage rates or the average of the maximum usage rates of the most recent three Fiscal Years. whichever is greater. In Example A. the current year exceeds the average of the most recent three Fiscal Years. Current Year Rate Of Use Calculation Average Daily Use for the year = 71,233 gallons Maximum Day Demand for the current year = 200,000 gallons Maximum Hour Demand for the current year = 520,000 gallons Maximum Day Demand above Average Daily Use = 128,766 gallons Maximum Hour Demand above Maximum Day Demand = 320,000 gallons Fiscal Year Average of Most Recent Three Years CURRENT FY FY FY 1989 1988 Maximum Day Demand above Average Daily Use 128,766 115,000 130,000 Maximum Hour Demand above Maximum Day Demand 320,0007 305,000 325,000 Three year average of Maximum Day Demand above Average Daily Use 124,589 Three year average of Maximum Hour Demand above Maximum Day Demand 316,667 Customer's annual payment will be based on the greater of the current year maximum usage rates or the average of the maximum usage rates of the most recent three Fiscal Years. Annual Payment Calculation FY '90 Rates (Based on Current Year Data) 26,000 X .988 $25,688.00 .1288 mg X $57,873 7,454.04 .3200 mg X $30,935 9,899.20 12 X $25 X 1 300.00 Total Annual Payment $43,341.24 Previous Billings for October through August Usage 37,748.68 October Billing for September Usage $ 5,592.56 B. Example of computation when the average of the maximum usage rates of the most recent three Fiscal Years is greater than the current Fiscal Year rate of use: Current Year Rate of Use Calculation Average Daily Use for the current year Maximum Day Demand for the current year Maximum Hour Demand for the current year Maximum Day Demand above Average Daily Use Maximum Hour Demand above Maximum Day Demand 71,233 gallons 200,000 gallons 520,000 gallons 128,766 gallons = 320,000 gallons Fiscal Year Average of Most Recent Three Years CURRENT FY Maximum Day Demand above Average Daily Use 128,766 Maximum Hour Demand above Maximum Day Demand 320,000 Three year average of Maximum Day Demand above Average Daily Use Three year average of Maximum Hour Durand above Maximum Day Demand FY •FY 1989 1988 130,234 130,000 323,010 325,000 129,670 322,670 Customer's annual payment will be based on the greater current Fiscal Year maximum usage rates or the average maximum usage rates of the most recent three Fiscal Years. -20- of the of the Annual Payment Calculation FY '90 Rates (Based on average of most recent three years) 26,000 X .988 $25,688.00 .1297 mg X $57,873 7,506.13 .3227 mg X $30,935 9,982.72 12 X $25 X 1 300.00 Total Annual Payment $43,476.85 Previous Billings for October through August Usage 37,748.68 October Billing for September Usage $ 5,728.17 8.1 The Customer 8 • Effective date of contract effective date of this contract shall be the date that is first capable of withdrawing water from the Fort Worth System. Customer does from the Fort that Customer shall be' used the agreement. At the time of the execution of this agreement, not have facilities to,permit it to withdraw water Worth System. Water rates in effect at the time first withdraws water from the Fort Worth System to calculate any and all charges provided for in 8.2 The effective date of this contract for billing purposes shall be the fifteenth (15th) day of the month in which the transmission main and the meter installation are placed in service by the City of Fort Worth. The billing for the first month will be prorated according to the number of days of actual service included in said billing. 8.3 If the initial period of use of water. by Customer under the terms of this agreement is less than a Fiscal Year, the annual rate of use charges shall be reduced in the proportion that the -21- period of use bears to the Fiscal Year. Average Daily Use for the initial period will be the total Annual Consumption divided by the number of days served during the initial period of use. 9. yife of contract 9.1 This contract shall expire on December 31, 2010, and may be renewed on terms mutually agreeable to the parties hereto. 10. Rights -of -way 10.1 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, in order to construct or maintain mains or facilities within the corporate limits of Customer to provide water to Customer and to other areas. Upon notice from Customer and at Fort Worth's expense, Fort Worth will move such water mains or facilities located in such street rights -of -way, or other property owned by Customer when reasonably necessary to the performance of essential governmental duties by Customer. 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, in order to construct and maintain water mains or facilities within Fort Worth to provide water to Customer. Upon notice from Fort Worth and at Customer's expense, Customer will move such water mains or facilities when located in such street rights -of -way or other property owned by Fort Worth when reasonably necessary to performance 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 -22- be required to restore the other's 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 in order to prevent further conflicts insofar as is reasonably practicable. 11. State Health Department Approval 11.1 The Customer System shall be approved by the Texas State Department of Health during the life of this contract. If at any time the Customer System is not,approved by the Texas State Department of Health, or if Customer does not have an active cross -connection control program, there shall not be any direct physical connection between the Fort Worth System and the Customer System unless an approved backflow prevention device has been provided and installed and this installation hasbeen approved by the Texas State Department of Health. All expenses to provide and install backflow prevention device(s) will be borne by Customer. 12. Resale of Water 12.1 Customer agrees that it will not share facilities for water system use with any other governmental or corporate entity outside of the certificated area of Customer, commonly known and referred to as its service area, without the express written consent of Fort Worth, which consent shall not be unreasonably withheld. Fort Worth neither recognizes nor approves any existing agreements entered into by Customer with other governmental or corporate entities outside its service area. 12.2 Customer agrees that it will not enter into any resale or transportation agreement other than as a part of its normal offering and supply of water to existing and future subscribers to its water system without the recommendation of the Water System Advisory Committee and express written consent of Fort Worth. 13. Sanitary Sewer Facilities 13.1 The Customer covenants that' adequate sanitary. sewage facilities meeting state health department requirements will be provided for users of water obtained from the Fort Worth System, 14. ,Additional Parties 14.1 Fort Worth will use its best efforts to provide an adequate water supply for all of its customers. Prior to the approval of additional wholesale customers, Fort Worth will provide reasonable assurances that the projected five-year water demands of the then -existing wholesale customers so served and the proposed additional customer can be, adequately fulfilled. Fort Worth will consult with the Water System Advisory Committee prior to contracting with additional parties. 15. Water System Advisory Committee 15.1 Customer's governing body shall annually appoint a representative to be a voting member of the Water System Advisory Committee, which Committee is hereby created and established and whose purpose shall be to consult with and advise Fort Worth, through the Director, on matters pertaining to conservation, wholesale planning, improvements, grants, wholesale rate studies, -24- administration, budgets, and additional wholesale customers, whether same be wholesale customers of Customer or Fort Worth. Said Committee, at its first meeting, shall elect a Chairman, Vice -Chairman and Secretary. The Committee may establish bylaws governing the election of officers, meeting dates and other matter pertinent to its functioning. 16. System Access pees 16.1 Zn the event Fort Worth adopts an ordinance which will provide for a water System Access Fee for new development within the jurisdictional limits of Fort Worth, Customer agrees to pay to Fort Worth on a quarterly basis a charge for each new or enlarged connection for water service made within Customer's jurisdiction served by the Fort Worth System. The charge to Customer for such connections shall be based upon the size and type of connection and shall be equal to the charge imposed for the same size and/or type of connection made within the jurisdiction of Fort Worth. Tie calculation of said access fees shall be consistent with all applicable state and federal regulations, and shall include only those costs associated with general benefit capital facilities as herein defined. 16.2 Fort Worth agrees that all monies remitted to it pursuant to this section will be placed in a separate account to be used exclusively for treatment plant, metering and system general benefit improvements, and will not be used for operation and maintenance expenses or distribution system improvements. Such funds and all interest earned thereon will be considered a "contribution" for rate setting purposes only. 16.3 Customer shall provide to Fort Worth information pertaining to building permits as such permits relate to the making of new and/or enlarged connections within Customer's jurisdiction with -25- each quarterly payment required in this section. Customer further agrees to provide such other information relating to new and/or enlarged connections as may be requested by the Director. 16.4 Fort Worth will cause to be deposited into the proper revenue account the appropriate charge required by any future ordinance for each new or enlarged connection for water service made within Fort Worth's jurisdiction. 16.5 Following the establishment of a water System Access Fee, there will be created and established a Water System Access Fee Advisory Committee whose purpose shall be to consult with and advise Fort Worth, through the Water System Advisory Committee, on matters pertaining to the methodology of calculating access fees. Said Committee shall be composed of nine (9) members, three (3) of which shall be members of, and appointed by, the Fort Worth City Council. The remaining six (6) members shall be members of the City Councils of Customers' and shall be appointed by the Tarrant County Mayor's Council. The Chairman of said committee shall be a Fort Worth member elected by the membership of the committee at its first, annual called meeting. All committee members shall serve terms of one year but may be reappointed by the appropriate bodies for subsequent terms. On an annual basis beginning with the first meeting of the calendar year the committee shall consider adjustments to the access fee amounts and the administration of such charges through the Water System Advisory Committee. 16.6 It is understood by and between the parties that the system access fee referred to within this section may be construed or interpreted to be an impact fee or a capital recovery fee under the definitions then existing within state law. In the event that said fee is determined to fall in that category, it may be subject to certain state regulations as to it's adoption and/or implementation. The parties agree and jointly represent and -26- covenant that it is not their intent to require an illegal or inappropriate action on the part of any participant to this agreement. Any and all access fees, capital recovery fees or impact fees adopted by any participant to this agreement shall be done in full compliance with then existing state law. To the extent that this agreement requires any party to impose, collect or remit any or all of a fee not in compliance with state law, the provisions of Section 16 are abrogated and void in their entirety. 17. Termination 17.1 This agreement may be terminated in whole or in part by the mutual consent of Customer and Fort Worth. Notwithstanding anything contained herein to the contrary, any material breach by either party hereto to perform any of the duties or the obligations assumed by such party hereunder or to faithfully keep and perform any of the terms, conditions and provisions hereof shall be cause for termination, of this agreement by either party in the manner set forth in this paragraph. Fort Worth shall deliver to Customer ninety (90) days prior written notice of its intention to so terminate this agreement if Customer fails to cure or adjust such material breach, including in such notice a reasonable description of the breach. If within said ninety (90) days Customer shall fail or refuse to cure such material breach to the satisfaction of Fort Worth, then and in such event, Fort Worth shall have the right, with six months additional advance written notice to Customer and without any liability whatsoever on the part of Fort Worth, to declare this agreement terminated. In the event of termination of this agreement, all rights, powers, and privileges of Customer hereunder shall cease and terminate and Customer shall make no claim of any kind whatsoever against Fort Worth, its agents or representatives, by reason of such termination or any act incident thereto, provided Fort Worth -27- acted reasonably and such termination was not unreasonable, arbitrary and capricious. Fort Worth shall advise Customer in writing immediately upon acceptance of the cure of any breach. 17.2 In the event Fort Worth shall ration the use of water throughout its corporate limits or issue water conservation measures or restrict the use of water in any way as provided for in Section 2.3 hereof, and Customer fails or refuses to institute and apply the same rationing, conservation, or restrictions to the use of the water by the customers of Customer, Customer shall be in breach of this agreement. ,The notice provisions as contained in Section 17.1 hereof shall not apply and the Director, in his sole discretion, shall, in writing, set such time in which the Customer shall curesaid breach. If Customer fails or refuses to cure said breach within the stated time, then and in such event, after six (6) months written notice provided to Customer and without any liability whatsoever on the part of Fort Worth, Fort Worth shall have the right to declare this agreement terminated. In event of termination of this agreement, all rights, powers, and privileges of Customer hereunder shall cease and Customer shall make no claim of any kind whatsoever against Fort Worth, its agents, or representatives, by reason of such termination or any act incident thereto, provided Fort Worth acted reasonably and such termination was not unreasonable, arbitrary and capricious. 17.3 Irrespective of whether or not a breach hereof is a material breach or a non -material breach, and irrespective of any cure of such breach,'a second breach of the same nature violating any term or condition herein shall entitle Fort Worth, after six (6) months written notice provided to Customer and without any liability whatsoever on the part of Fort Worth, to declare this agreement terminated. In event of termination of this agreement, all rights, powers, and privileges of Customer hereunder shall cease and Customer shall make no claim of any kind whatsoever -28- against Fort Worth, its agents, or representatives, by reason of such termination or any act incident thereto, provided Fort Worth acted reasonably and such termination was not unreasonable, arbitrary and capricious. 17.4 The following breach, default or failure to perform a duty or obligation shall be considered to be a 'material breach: a. Failure to adopt and enforce any ordinance or conservation measure or rationing required to be adopted and enforced herein;' b. Failure to make any payment of any bill, charge or fee as provided for in this agreement; c. Making any connection to.the Fort Worth System at any point except as provided in Section 3.2 hereof; d. Failure to correct any potentially hazardous connection in accordance with Section 11 after reasonable written notice. e. Failure to provide Fort Worth ingress and egress for purposes of operation and maintenance of any metering facility; f. Failure to provide Fort Worth rights -of -way as required herein. 17.5 In the event of any other non -material breach, default or failure to perform duties under this agreement, Fort Worth shall deliver to Customer sixty (60) days advance written notice of such default. If Customer fails to cure such breach, default or failure, then Fort Worth shall give Customer written notice of such failure to cure and may surcharge Customer Five Thousand Dollars ($5,000) per month until such time as Customer cures such non -material breach. 17.6 Any failure by Fort Worth to so terminate this agreement or the acceptance by Fort Worth, of any benefits.under this agreement -29- for any period of time after such material breach, default or failure by Customer shall not be determined to be a waiver by Fort Worth of any rights to terminate this agreement for any subsequent material breach, default or failure. 17.7 Any failure by Customer to so terminate this agreement or the acceptance by Customer of any benefits under this agreement for any period of time after such material breach, default or failure by Fort Worth shall not be determined to be a waiver by Customer of any rights to terminate this agreement for any subsequent material breach, default or failure. 18. Ownership and Liability 18.1 No provision of this agreement shall be construed to create any type of joint or equity ownership of any property, any partnership or joint venture, nor shall same create any other rights or liabilities and 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 Fort Worth System. 18.2 Liabilities for damages arising from the proper treatment, transportation and delivery for all water provided hereunder shall remain with Fort Worth to the point of delivery and, upon passing through the meter, liability for such damages shall pass to the Customer, save and except that Fort Worth's sole responsibility is to provide to Customer water of a quality which meets state and federal drinking water standards. Each party hereto agrees to save and hold the other party harmless from all claims, demands, and causes of action which may be asserted by anyone on account of the quality, transportation and delivery while water is in the control of such party. This covenant is not made for the benefit of any third party. Fort Worth takes -30- the responsibility as between parties hereto for the proper treatment, quality, transportation, and delivery of all such water provided by it to the point of delivery. 18.3 Contracts made and entered into by either Customer or Fort Worth for the construction, reconstruction or repair of any Delivery Facility shall include the' requirement that the independent contractor(s) must provide adequate insurance protecting both the Customer and Fort Worth as co -insureds. Such contract must also provide that the independent contractor(s) covenant to indemnify, hold harmless and defend both the Customer and Fort Worth against any and all suits or claims for damages of any nature arising out of the performance of such contract. 19. Force Majeure 19.1 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 majeure, shall be suspended during the countinuance 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. 19.2 The term "force majeure", as employed herein, shall mean acts of God, strikes, 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 authority, insurrection, riots, epidemics, landslides, lightning, -31- 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 water supply, and inability on the part of Fort Worth to deliver water hereunder or the Customer to receive water hereunder on account of any other causes not reasonably in the control of the party claiming such inability. 20. Notices 20.1 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: Customer: Water Director City of Fort Worth 1000 Throckmorton Street Fort Worth, TX 76102 Mayor City of Haslet Route 1, Box 97 Haslet, Texas 76052 The parties hereto shall indicate in writing any change that may occur in such respective addresses from time to time,. 21. Inspection and Audit 21.1 Complete records and accounts required to be maintained by -32- each party hereto shall be kept for a period of five (5) years. Each party shall at all times, 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. 22. Xiscellaneous 22.1 Fort Worth and Customer agree that if Fort Worth should enter into any future contract for supplying treated water to any municipality under more favorable terms or conditions than set forth herein, this contract shall be amended to provide the same terms and conditions with respect to the sale of treated water to Customer. 22.2 During a temporary emergency condition created by unforeseeable mechanical failure or by, unprecedented high rate of water usage such as might result from a major fire or a major water main break, it may be necessary that water be withdrawn from the'Fort Worth System at a rate of usage in excess of that required for the usual agreed that extra Rate applicable shall not peak requirements of Customer. It is of Use Charges that would normally be apply for such bona fide emergency withdrawals provided that Fort within 48 hours of the occurrence any event, the volume and Rate delivered shall be due and payable Worth is notified in writing of an emergency condition. In of Use Charges for all water as described elsewhere herein. 22.3 At the request of the Director, Customer agrees to furnish water to areas and premises situated adjacent to the boundary of Customer and within the boundaries of Fort Worth. The metered quantity of water used in this area each month by Fort Worth shall be the total of all individual customer meter readings. At the option of Customer or Fort Worth, a master meter may be installed where practicable at the expense of Fort Worth to meter all water used by Fort Worth under the terms of this section. 22.4 The metered quantity of water furnis)ed by Customer to Fort Worth shall be deducted from the total quantity of water withdrawn from the Fort Worth System by the Customer before the charge for water service to Customer is computed in accordance with the payment computations set forth and based on the Volume Charge described herein and the quantity of water so withdrawn from the Fort Worth System. 22.5 This agreement is subject to all applicable federal and state laws and any applicable permits, amendments, orders, or regulations of any state or federal governmental authority having or asserting jurisdiction, but nothing contained herein shall be construed as a waiver of any right to question or contest any such law, order, rule or regulation in any forum having jurisdiction. 22.6 Customer agrees to abide by any changes in this agreement made necessary by any new, amended, or revised state or federal regulation. 22.7 Upon prior notice by Fort Worth, any duly authorized employee of Fort Worth bearing proper credentials and identification shall notify Customer of need for access to any premises located within Customer's city limits 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 contract. Customer may elect to accompany the Fort Worth representative. To the extent permitted by law, Fort Worth, agrees to indemnify Customer for any -34- damage or injury to person or property caused by the negligence of such duly authorized employee while such employee is in the course and scope of his employment. 22.8 Whenever any disputed matter herein is to be specifically determined by the use of an arbitrator, the following procedure is to be followed. The party requesting that the dispute be settled by arbitration shall serve on theother party a request in writing that such matter be handled by arbitration. Customer and Director shall mutually agree in writing on the selection of an impartial arbitrator. Such agreement shall be made within ten (10) days from the date that the request for arbitration is received. If an agreement is not reached on the selection of the impartial arbitrator on or before the tenth (10th) day after the date that notice is received, the Director shall immediately request a list of seven qualified neutral arbitrators from the American Arbitration Association or the Federal Mediation and Conciliation Service, or either's successor in function. The Customer and Director may mutually agree on one of the seven arbitrators on the list. If they do,not agree within five (5) working days after the receipt of the list, Customer and Director shall alternate striking a name from the list and the name remaining shall be the impartial arbitrator. Customer and Director shall mutually agree on a date for the arbitration hearing. The decision of the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. All costs of arbitration shall be considered a System Cost. 22.9 If requested by the Director, Customer shall provide quarterly the following data: A. Actual number of customer accounts consuming directly or indirectly from the Customer System within its service area; -35- B. Classification of domestic and nondomestic accounts within its service area by number and percentage of accounts consuming directly or indirectly from Customer System within its service area. C. Customer water usage from all 'sources other than the Fort Worth System, including,but not limited to, ground water, other surface water, and water supply agreements with other entities. D. Additional data which may assist Fort Worth and/or Customer in developing methodology for cost of service studies, planning studies for analyzing federal grants, and System Access Fees; provided, however, that neither party shall request data that will require either party to incur unreasonable expenses in providing such data. 22.10 Customer may not assign this agreement without the prior written consent of Fort Worth., Fort, Worth may not assign this agreement without the prior written consent of Customer; provided, however, in the event Fort Worth is designated as a regional• water authority or agency by a duly authorized regulatory body, or if Fort Worth should elect to contract with or assign this contract to a regional water authority to provide all or part of the services covered by this agreement, the participants hereto agree that any such regional water authority may, by way of assignment of this agreement, assume and receive the same obligations and responsibilities, the same benefits as Fort Worth; further, Customer hereby grants to Fort Worth the specific right to assign this agreement to such regional water authority. 23. Waiver. Remedy. Severability 23.1 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. 23.2 In addition to any other remedy as may be provided by law, this agreement shall be specifically' enforceable by the parties hereto. Venue for any action shall be in Tarrant County, Texas. 23.3 It is agreed that, in the event any term or provision herein contained is held to be invalid by any court of competent juris- dicition, the invalidity of such term or provision shall in no way affect any other term or provision contained herein; further, this agreement shall then continue as if such invalid term or provision had not been contained herein. 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 an original and the seals of the respective parties to be hereto affixed on the date above written. ATTEST: Ruth Howard, City Secretary, City of Fort Worth APPROVED AS TO FORM AND LEGALITY: City Date: torney, City of Fort Worth APPROVAL RECOMMENDED: RichardlW. Sawey, D rector City of Fort Worth Water Department ATTEST: City Secretary CITY �jOF FORT WORTH By: �T/A✓'/10,v) fJ Ramon Guajardo Assistant City Manager City of Fort Worth CITY OF HASLET CITY OF HASLET By: e, ROVED AS TO FORM AND LEGALITY: City Attorn S-2 o Date: 5- -I APPROVAL RECOMMENDED: • Mayor Cat trap Authorization Date City of Fort Worth, `1 exas Mayor and Council Communication 6cw 7kga DATE 6-26-90 REFERENCE NUMBER C-12388 SUBJECT: APPROVAL OF WHOLESALE WATER CONTRACT AND INTERLOCAL AGREEMENT WITH THE TOWN OF HASLET PAGE 1 of 1 RECOMMENDATION: It is recommended that the City Manager be authorized to execute: 1. a contract with the Town of Haslet for wholesale water service; and 2. an interlocal agreement with the Town of Haslet for repayment of construc- tion costs. DISCUSSION: Contracts for wholesale water service with eighteen customer cities and boards were approved by Council on June 27, 1989. In addition, contracts with the Benbrook Water and Sewer Authority and Dalworthington Gardens were subsequently approved by Council in August and October, 1989, respectively. The Town of Haslet has had no previous water contract with the City of Fort Worth; therefore, a metering station and water line had to be constructed in order to provide them with water service. Hasiet's portion of the costs of the construction and installation of the improvements will be repaid over a ten year period. The wholesale water contract with Haslet is essentially the same as that approved for other wholesale customers with minor modifications to recognize Haslet as a new customer. RG:r/6 SUBMITTED FOR Itit CITY MANAGER'S OFFICE BY: ORIGINATING DEPARTMENT HEAD: Ramon Guajardo 6191 Richard Sawey 8246 FOR ADDITIONAL INFORMATION CONTACT:Kathy Gibson 8202 :‘V DISPOSITION BY COUNCIL: ❑ APPROVED E OTHER (DESCRIBE) PROCESSED BY CITY SECRETARY