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CONTRACT
SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 10381
This agreement entered into this day of Gij/ • , 1987,
by and between the City of Fort Worth and Trophy Club Municipal Utility
District #1 (formerly known as Denton County Municipal Utility District #1).
WHEREAS, the City of Fort Worth and Trophy Club Municipal Utility
District #1 entered into a contract for water service dated March 13, 1979,
same being City of Fort Worth City Secretary Contract No. 10381; and
WHEREAS, the City of Fort Worth and Trophy Club Municipal Utility
District #1 are desirous of amending said City of Fort Worth City Secretary
Contract Number 10381 ;
NOW, THEREFORE, the City of Fort Worth and Trophy Club Municipal
Utility District #1 agree as follows:
1.
Paragraph 5, Section 3(b) , is hereby amended and, after having been
so amended, shall read as follows:
"b. 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 projection 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
Study dated September, 1987, and computer model included therewith shall
be used by Fort Worth to project the rates to be charged for said five (5)
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."
Every other term, condition and/or covenant contained in City of Fort
Worth City Secretary Contract Number 10381 not amended hereby shall be
unaffected hereby and shall continue in full force and effect.
ATTEST: % CITY OF FORT WORTH
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b,
By:
7�m City
y:
City Sec etary
APPROVED AS TO FORM AND LEGALITY:
/
Contract Authorization
City At orney v /a l
� Date
Date:
ATTEST: TROPHY CLUB MUNICIPAL UTILITY DISTRICT #1
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Board Secretary Jero H. Svore
Constance S. White President, Board of Directors
APPROVED AS TO FORM AND LEGALITY:
Attorney for 7-r-�Ikl C/.,6 yNuDy/
Date: /_T.
City of Fort Worth, 'Texas
MASTER FILE-II
ACCOUNTmG.2 Mayor
il.tVnd Council Com7nuni11.iIl.t tion
IRANSPORTATJONIPUBLIG WORKSi
NATER ADMINI TR614)tN { REFERENCE SUBJECT: AMENDMENT TO THE WHOLESALE PAGE
NUMBER
11-10-87 **C-10646 WATER CONTRACTS
- - Recommenaation
"It--is- recommended that the City Council authorize the City Manager to execute
:_��-T_ �ontrct• amendments with the wholesale water customers, a sample of which is
__attached_-, 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. iIn 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 contract
amendments from all wholesale water customers and execution of the amendment by
City Council , the Fort Worth Water Department staff will proceed with contract
negotiations.
APPROVED BYRAM:wI CITY COUNCIL
SUBMITTED FOR Ir+t
CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY
OFFICE BY: Ruth Ann McKinney APPROVED
CRIG!N ATING
OTHER (DESCRIBE) 1 fjl�
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DEPARTMENT HEAD: Richard Sawe ARY
FOR ADDITIONAL INFORMATION - City Secze cuy Cf the -----
CONTACT.. S . Nunn-8202 Ci-,y of F04 Wark-Texcm