HomeMy WebLinkAboutContract 16115 CITY SECRETARY
CO'N TRACT
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 10564
This Agreement entered into this 6th day of October 1987, by and
between the City of Fort Worth and City of Keller
WHEREAS, the City of Fort Worth and City of Keller entered into
a contract for water service dated July 24, 1979 same being City of
Fort Worth City Secretary Contract No. 10564
and
WHEREAS, the City of Fort Worth and - City of Keller are desirous of amending
said City of Fort Worth City Secretary Contract Number 10564 1
NOW, THEREFORE. the City of Fort Worth and City of Keller
agree as
follows:
1.
Paragraph 5, Section 3(b), is hereby amended and, after having been so amended, shall
read as follows:
,1b. Commodity Charge and Rates of Use Charge.
"Except for fiscal year 1987-1988, the rate shall be reviewed and
adjusted every five (5) years beginning in fiscal year 1988-1989. The cost related
to the production and transmission function of distributing treated water to the
Fort Worth city limits in wholesale quantities plus a service charge shall be
determined in accordance with the methods herein. Such costs shall be projected
through the City of Fort Worth fiscal year 1991 to establish the fair rate for
water to be charged during the period October 1, 1988, to September 30, 1993.
The adjusted rate shall be made effective October 1, 1988„ A similar review
and rate adjustment shall be made for each succeeding five year period for the
term of this contract. For the rates for the five (5) years beginning 1988-1989,
the Touche Ross st-11dy dated September, 19871, ono computer model included
therewith shall be used by Fort Worth to project the rates to be charged for
said five (511 year period.
"For the period October 1, 1987, to September 30, 1988, the rates
indicated and the detail methodology used in the study conducted by Touche
Ross & Co., dated September 1, 1987, will be adopted."
2.
Every other term, condition and/or covenant contained in City of Fort Worth City
Secretary Contract Number — 10564 not amended hereby shall be unaffected
hereby and shall continue in full force and effect.
ATTEST CITY OF FORT WORTH
Bv:
City Se retary
APPROVED AS TO FORM AND LEGALITY:
AUthorination
i*ty A4o r�ne y,
Date:
ATTEST: CITY OF KELLER
Bv:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Citv Attornev
Date:
MASTER FILE-1 City of Fort lVorth, Tex L
ACCQ1JNTtNQ.2 Ma yor and Co-Linlcil Con-rinim iraticin
TRANSP0RTATJ0N1PU8L1G,W()RK,%A
AATER ADMINJ JR6T
,"4 4
REFERENCE SUBJECT: AMENDMENT TO THE WHOLESALE PAGE
NUMBER
11-10-87 **C-10646 WATER CONTRACTS
Recommendation
It- is- recommended that the City Council authorize the City Manager to execute
contract- amendments with the wholesale water
customers, a sample of which is
which provides that the Touche Ross rate methodology and wholesale
- --.-water rates be implemented in fiscal year 1988, and the 1987 Touche Ross
wholesale water rate study and the computer model be used to project rates for
the five-year period beginning in 1989.
Discussion
Beginning in May, 1987, the Fort Worth Water Department staff and the Wholesale
Water Advisory Committee met to select a rate consulting firm, discuss
potential wholesale water contract revisions, and review the 1987 Touche Ross
Wholesale Water Rate Study. As a result, the Water Department staff proposed,
and the Mayor' s Council approved, a contract amendment which implements the
rate methodology and rates of the 1987 Touche Ross Wholesale Water Rate Study
in fiscal year 1988. In addition, the amendment provides that the Touche Ross
rate study and computer model will be used by Fort Worth in fiscal year 1989 to
project rates to be charged -for the five-year period beginning in 1989.
The contract amendment is viewed by the Fort Worth Water Department staff as a
first-step in renegotiating the 'Wholesale water contracts which expire in the
period from 1993 to 2002. It is expected that the amendment would be a
temporary measure prior to revision of the wholesale water contracts in 1988.
Although the amendment is a temporary measure, it benefits the City in two
ways:
1) It immediately requires a rate review in 1989, whereas, the current
contract allows rate adjustments only every five years; and
2) It serves as an inducement to renegotiate the contracts for the long-term.
As of November 4, 1987, nineteen of the twenty-four billed wholesale water
customers have signed the contract amendments.
Upon receipt of signed contrac t
amendments from all wholesale water customers and execution of the amendment by
City Counc ,i the Fort Worth Water Department staff will proceed with contract
nego-tiations,
APPROVED BY
RAM:wl
CITY COUNCII'L
S,,,r,r,1-,TTj7D FOR 1H.-t
Z17Y MANAGER S DISPOSITION BY COUNC"L rIPOCE�19ED By
OFVCE BY Ruth Ann McKinnef, APPROVED
All
fOESCRfSE,
0FPAPTtA_PtjT HEAD,
Richar w
d a e PY
FZR AD'DiTIONAL iNFORWATION
secr-eia-y C.4 t-he
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