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HomeMy WebLinkAboutContract 5572 CONTRACT FOR WATER SERVICE CITY SECRETARY BETWEEN THE C 1 TY OF FORT WORTH, TEXAS CONTRACT N0.,S,5 .r1aq,-) AND THE BENBROOK WATER & SEWER AUTHORITY THE STATE OF TEXAS COUNTY OF TARRANT THIS CONTRACT AND AGREEMENT made and entered into this 13th day of .T,i I v 19 66 by and between the City of Fort Worth,, a municipal corporation located in Tarrant County, Texas , acting by and through its duly authorized mayor, Willard Barr , and the Benbrook Water and Sewer Authority, duly authorized by law, acting by and through A.R. Cartwright,Sr. , President of the Board of Directors, hereinafter called "Purchaser", located in Tarrant County, Texas. W I T N E S S E T H: WHEREAS, the City of 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 qualififed to furnish and deliver treated water, both within and without the corporate boundaries of the City of Fort Worth; and, WHEREAS, the Benbrook Water & Sewer Authority has provided at its own ex- pense and now owns, operates and maintains an underground water supply system and a distribution system; and furnishes water service to the customers within the boundaries of the Authority, and, WHEREAS, the underground supply system of Purchaser, Benbrook Water and Sewer Authority, is expected in the future to be unable to meet the total needs of the said customers, and, WHEREAS, the Purchaser does not now have and cannot provide economically and within a reasonable period of time, any other source of water supply; and, WHEREAS, it is deemed to be in the best interest of both the City of Fort Worth and the Purchaser that said parties do enter into a mutually satisfactory agreement by means of which the Purchaser may obtain a supply of treated water at a reasonable rate; and, WHEREAS, by the execution of this contract, neither the City of Fort Worth nor the Purchaser will surrender any of its rights to the ownership and operation of its present water production and distribution facilities ; NOW, THEREFORE, KNOW ALL. MEN BY THESE PRESENTS That for and in consideration of the execution and performance of the mutual covenants herein set forth, the City of Fort Worth and the Purchaser do hereby covenant and agree as fol.l-ows i . TERMS AND CONDITIONS A. The City of Fort Worth agrees to furnish and sell to the Purchaser treated water under the normal operating pressure prevailing in the West Side H pressure plane of the City of Fort Worth's water distribution system at the point or points of delivery. The Purchaser agrees to accept delivery of such treated water at the said point or points of delivery under the condi- tions of this agreement and to pay for the same in accordance with the terms hereof. If at any time during the terms of this contract the quantity of water available to water customers of the City of Fort Worth through the West Side II Pressure Plane shall be insufficient to satisfy all of the needs of all of such customers , the quantity of water furnished to the Purchaser hereunder shall be subject to reduction in the same proportion as other customers , within or without the City of Fort Worth, then being served through West Side II Pressure Plane. If the City of Fort Worth shall ration the use of water throughout said City or issue water conservation measures or restrict the use of water in any way, the Purchaser shall , at its option, either: 1 . discontinue taking water from the City of Fort Worth under this agreement during the period of rationing, water conservation or restriction by the City of Fort Worthy or 2. institute and apply the same rationing, conservation measures or restric- tions to the use of water by the customers of the Purchaser, so long as any part of the total water supply of the Purchaser is being furnished by the City of Fort Worth. The City of Fort Worth and the Purchaser agree that if the City of Fort Worth should enter into any future contract for supplying treated water to any munici- pality under more favorable terms or conditions than set forth therein, this contract may be amended to provide the same terms and conditions with respect to the sale of treated water to the Purchaser. B. In the event that the corporate boundaries of the City of Fort Worth and the City of Benbrook are realigned so that areas now situated in the City of Benbrook shall be situated within the City of Fort Worth, the Authority agrees that it will exercise every good faith effort and every reasonable means known to it or suggested by the City of Fart Worth to secure authority from the Legislature of the State of Texas for the boundaries of the Authority to be made coincidental with the corporate boundaries of the City of Benbrook as they then exist or may be changed in the future. C. The City of Fort Worth will not furnish water service through an additional point of delivery to serve customers in any area or premises located within the Authority boundaries and situated south or east of the Clear• Fork of the Trinity River unless the area served is within the corporate boundaries of the City of Fort Worth. D. At the request of the City of Fort Worth, the Authority agrees to furnish water to areas and premises situated adjacent to the boundary of the Authority and 2. within the boundaries of the City of Fort Worth. Mains , services , meters , fire hydrants and appurtenances shall be constructed by the City of Fort Worth in accordance with the policy for the installation of community faci- lities in the City of Fort Worth. Approach mains required to serve such areas shall be provided by the developer in accordance with the policies and procedures of the Authority. The metered quantity of water used in this area each month by the City of Fort Worth shall be the total of all individual customer meter readings. At the option of the City of Fort Worth a master meter may be installed to meter all water used by the City of Fort Worth under the terms of this section. The metered quantity of water furnished by the Authority to the City of Fort Worth under the terms of this section shall be deducted from the total quantity of water withdrawn from the Fort Worth system by the Authority before the charge for water service to the Authority by the City of Fort Worth is computed, in accordance with the payment computations set forth herein based on the commodity charge described herein and the quantity of water so withdrawn from the Fort Worth system. Water delivered to the City of Fort Worth by the Authority under the terms of this section during months when the Authority is not receiving water from the City of Fort Worth hereunder shall be cumulated and deducted from the amount of water withdrawn from Fort Worth by the Authority during the next month or months such water is withdrawn from the Fort Worth system by the Authority. 2. METERS All water furnished under this agreement shall be measured by one or more suitable meters equipped with continuous flow chart-recording devices , and rate of flow control devices . All meters , recording equipment, and rate of flow de- vices shall be installed and operated by the City of Fort Worth, with the Benbrook Water & Sewer Authority paying to the City of Fort Worth the cost of the meter and appurtenances , plus the installation and maintenance cost thereof. Electric power shall be furnished by the Benbrook Water E. Sewer Authority. The point or points of delivery of treated water by the City of Fort Worth shall be the meter vault connection on the customer's side of the meter, and all necessary mains and distribution facilities from and beyond said point shall be furnished, installed, owned, operated, and maintained by the customer, the Pur- chaser. It is agreed that meters now located at the 6500 block Brook Chaplin Road and 3600 block Williams Road may be used on a temporary basis but not after June 1 , 1967. It is further agreed that meters will not be installed during the life of this contract for the purpose of withdrawing water from the Fort Worth system ex- cept at a suitable location on Williams Road between Mary's Creek and Brook Chaplin Road. The location of each meter shall be mutually agreed upon by and between the parties hereto, and the meter or meters shall not be moved or relocated except by mutual consent. The location of each meter shall coincide with the Fort Worth City limit line as nearly as is reasonably possible. The first permanent meter employed shall be located as shown on the map attached hereto marked Exhibit ''A'' which exhibit is expressly made a part hereof. The full cost of the construction 3 . of the service main from the intersection of Williams Road and Ewing Street to the meter shown on Exhibit ''A" shall be borne by the Authority. This service main shall be owned and operated by the City of Fort Worth. Each party shall have the right to test the meter and flow controller at any time, by first giving the other party notice of its intention to make such a test. No meter shall be adjusted, changed or tested, in place or elsewhere, without giving notice to the other party of this intention to make such a test, and there- after giving reasonable opportunity to the other party to have representatives participate in such test, change or adjustment. For these purposes , the meter and control equipment will be properly sealed, and the seal shall not be broken except in the presence of representatives of all parties or following due notice to all parties. The Purchaser or the City of Fort Worth at its own expense, including the cost of maintenance and repairs , may install a check meter to check measure the volume of water ppssing through the master meter, provided that if such check meter is installed, the same rules and regulations relative to its operation and reading shall apply as to the meter being tested. 3 . METER READING AND BILLING The City of 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, and upon such notice, repairs to such meter shall be made promptly. Whenever it is evident that a meter has not registered accurately for a period of time, the quantity and rate of withdrawal shall be estimated in accordance with usage under similar conditions for an equal period. The meter readings and rates of flow shall be added together when more than one meter is in service and the sum thereof shall be used for the purpose of calculating the charges for water used. A review of water usage amounts by the customer for the past twelve (12) months shall be made during the preparation of the September bill each year. The Septem- ber statement 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 showing the maximum day and the peak hour of the year shall be furnished to the customer with the September billing. The Purchaser, and specifically the Benbrook Water & Sewer Authority agrees to appropriate annually sufficient funds to pay the monthly charge for water service. The water charge to be paid by the Purchaser to the City of Fort Worth shall be deemed a current expense of the Purchaser for each year of this contract as such monthly charges become due and payable. Monthly bills shall be rendered by the City of Fort Worth to the Benbrook Water and Sewer Authority for payment. The monthly bill shall be due and payable at the office of the Fort Worth Water Department on or before the l5th day immed- iately succeeding the monthly billing date. 4. 4. DEFINITIONS "Annual consumption" is the total quantity of water purchased under the terms of this contract by the Purchaser during any fiscal year of the City of Fort Worth as determined by the difference in the annual September meter readings . "Average daily use" is the annual consumption divided by 365. "Maximum day usage" is the maximum quantity of water used during one calendar day of the fiscal year of the City of Fort Worth. "M.G.D." is million gallons per day. "G.P.D." is gallons per day. "T.G.P.D." is thousand gallons per day. "Fiscal Year" is the fiscal year of the City of Fort Worth from October 1 through September 30. "Maximum hour rate" or the "peak hour rate" is the quantity of water used during the one hour of the year when more water passed through the meter or meters serving the customer than during any other hour of the fiscal year of the City of Fort Worth, multiplied by 24. "Commodity charge" is that part of the rate charged per 1 ,000 gallons used, regardless of rate of use. The commodity charge shall include the maintenance and operation cost, the capital facilities cost on the part of the production and transmission system related to annual use and the raw water costs . "Raw water charge" is a part of the commodity charge and represents the rate per 1 ,000 gallons charged by the Tarrant County Water Control and Improvement District No. 1 to the City of Fort Worth for raw water to be sold to the Purchaser, plus 13% of said rate representing Fort Worth water system losses . "Rate of use charge" is the fixed charge determined for the maximum day and the maximum hour rates of use. "Base rate" is composed of the commodity charge, and the rate of use charge. 5. RATES 1 . Method of rate determination The annual rate charge by the City of Fort Worth for rendering water service under the terms of this contract shall be based upon the functional distribu- tion of the total annual cost incurred in furnishing treated water to its customers , provided that nothing herein shall be construed as contemplating an annual rate of less than the regular City of Fort Worth water only rate, plus 10 per cent of said rate. 2. Rates to be used The annual rate to be charged for water shall include the proper proportionate parts of the maintenance and operation cost as related to the production and 5. transmission facilities of the total Fort Worth Water System, the capital facilities cost (fixed charges) on the production and transmission plant related to the rendition of service at maximum withdrawal rates of use by the Purchaser and the raw water costs The charges for the initial period of the contract which shall terminate September 30, 1967, have been computed to be as follows : ao The commodity charge shall be 164, per 1 ,000 gallons withdrawn by the customer. b> The annual rates of use charges for maximum day usage shall be $16,000 per M.G.D. and maximum hour rate of usage in excess of the maximum day shall be $8,280 per M.G.D. ce The service charge shall be $25.00 per month per master meter. 3 > Adjustment of rate ao Raw Water The amount charged for raw water shall be increased or decreased pro- portionately when the raw water cost paid by the City of Fort Worth for water available for treatment and sale to the Purchaser is increased or decreased. At the time of execution of this contract, the rate, including 13% for system losses , to the Purchaser is 9�. per 1 ,000 gallons . The portion of the raw water charge which reflects system losses shall be adjusted in the manner set out in sub-paragraph bo below in accordance with actual experience during the preceding period. If the Benbrook Water & Sewer Authority enters the Tarrant County Water Control and Improvement District No. 1 and the raw water rate then being paid by the City of Fort Worth to the District for water furnished under this contract is reduced as a result thereof , the raw water rate then being paid by the Purchaser to the City of Fort Worth hereunder shall be reduced in the same proportion. As an example, if the Benbrook Water & Sewer Authority enters the District, it is anticipated that the raw water charge to the Purchaser will be reduced to 42 per 1 ,000 gallons . bo Commodity charge and rates of use charges The rate shall be reviewed and adjusted every five years except that the first such review shall be based on the annual cost of operation for the fiscal years , 1965-66 and 1966-67. 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 methods herein. Such costs shall be projected through the City of Fort Worth fiscal year 1970 to establish the fair rate for water to be charged during the period October 1 , 1967, through September 30, 1972. The adjusted rate shall be made effective October 1 , 1967. A similar review and rate adjustment shall be made for each succeeding five year period for the term of the contract. 60 6. PAYMENT FOR WATER Payment of charges to the City of Fort Wc;rth for water used by the Benbrook Water and Sewer Authority shall be made as follows : 1 . Minimum annual payments The Purchaser agrees to pay to the City of Fort Worth for the first and subsequent fiscal year's the annual rate of use charge based on a withdrawal rate of not less than 100,000 G.P.D. , the commodity charge for 4,000,000 gallons , and the service charge. 2. Maximum rate of delivery The rate at which water is withdrawn from the City of Fort Worth system by the Purchaser shall be regulated by rate of flow controllers , pumps or other approved methods . The rate of withdrawal shall be con- trolled so that the maximum rate shall ;not exceed 1 .35 times the "maxi- mum day rate" of withdrawal experienced during the previous year unless the Purchaser has notified the Director of the Fort Worth Water Depart- ment in writing at least six months prior to the date of the anticipated increase in maximum rate of wthdrawal and has furnished all pertinent information regarding the proposed increase in maximum rate of withdrawal to the Director of the Fort Worth Water Department and said Director has given his written approval thereof, except that the said Director may waive all notice requirements , if in his opinion, said notice is not necessary to protect the interest of the City of Fort Worth. 3 . Minimum monthly charge The minimum monthly charge shall be one-twelfth of the minimum annual rate of use charge plus the service charges . For the first and subse- quent fiscal years of the contract the minimum monthly payment shall be �133.33 plus $25.00 for each master meter in service for which payment the Purchaser shall be entitled to withdraw water at the rate of 100,000 gallons per day from the Fort Worth system. 4. Monthly Payment The monthly payment shall include the minimum charge plus the com- modity charge multiplied by the quantity of water withdrawn from the Fort Worth system during the month. For example, the monthly charge for 1 ,000,000 gallons for July, 1966, would be as follows : Minimum charge $158.33 1 ,000 ,000 x . 16 160.00 July billing $318.33 5. Annual payment The actual total annual payment for water by the Purchaser shall be related to the annual and peak volumes °ased by the customer during the fiscal year as determcned by meters , fiow recording devices or'other approved methods . The total annual payme-,t shail not be less than the sum of the monthly payments calculated at the ,regular City of Fort Worth water only rate plus 10%. The September bill shall reflect any necessary adjustment in the annual payment due to the actual rates of withdrawal being larger than the rate paid for Each month under the minimum charge. 7. If the initial period of use of water by the Purchaser 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 period of use bears to the fiscal year but not less than for a period of six months . The method of computation for determining the total annual payment and the September bill for the first year is shown using quantities of 100,000 gallons per day and a minimum yearly use of 4 million gallons as follows Month Usage Per Month Monthly Payment October $158.33 November 158.33 December 158.33 January 158.33 February 158.33 March 158.33 April 158.33 May 158.33 June 1 ,000,000 318.33 July 1 ,000,000 318.33 August 1 ,000,000 ;18.33 Sub-total 3 ,000,000 $2 ,221 .63 September 1 ,000)000 318.37 TOTAL 4,000,000 $2,540.00 Maximum day for the year 100,000 gallons . Maximum hour for the year 100,000 gallons per day rate. Total Annual Payment 4,000 x . 16 = $640.00 . 1 x 16,000 = . 1 ,600.00 12 x 25 - 300.00 TOTAL $2,54o.00 Less Previous Payments October through Augusr $2,221 .62 September billing $318.37 When the rate of withdrawal exceeds the minimum amount of 100,000 GPD and the Authority is furnishing water to City of Fort Worth customers , the September bill shall also reflect a credit in the total maximum day charge in proportion to the number of customers furnished water by the Authority in Fort Worth and in the boundaries of the Authority provided that the maxi- mum day charge to the Authority shall not be less than the minimum set forth herein. It is agreed that the total annual payment by the Authority shall not be increased Hue to furnishing water to City of Fort Worth customers . EFFECTIVE DATE OF CONTRACT FOR BILLING The effective date of this contract for billing purposes shall be the fif- teenth 0 5th) day of September 1966. 8. 8. LIFE OF CONTRACT The life of this contract shall be for thirty (30) years from the date of execu- tion hereof, and may be renewed at any time during life of the contract upon terms mutually agreeable to the parties hereto. 9• RIGHT OF WAY The Benbrook Water and Sewer Authority shall grant to the City of Fort Worth such easements and rights of way along public highways or other property within the boundaries of the Authority as are appropriate to construct and maintain water mains and facilities within the boundaries of the Authority to furnish water to the customers of the Authority. The City of Fort Worth will relocate such water mains within such easements when reasonably necessary upon notice from the Benbrook Water & Sewer Authority. In the event any damage to a street within the boundaries of the Authority is caused directly by the existence of such water mains in such street, the City of Fort Worth, upon receiving written notice of such damage, said notice to be delivered to the office of the City Manager of the City of Fort Worth and to contain a precise description of the location of such damage, will repair same in accordance with specifications equal to those applying for similar work per- formed by the City of Fort Worth within its own boundaries . However , the City of Fort Worth shall not be liable for any personal injury or property damage which is caused by the existence of any such damage to the streets in the Authority. 10. AUTHORITY MAY BECOME PART OF THE TARRANT COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NUMBER ONE The Benbrook Water & Sewer Authority has determined not to be a part of the Tarrant County Water Control and Improvement District Number 1 at this time but such Authority is in no way precluded by this contract from becoming a part of the District at any time in the future. If the District levies an additional ad valorem tax to finance water suppl.y facilities , the Purchaser will pay to the City of Fort Worth an additional amount for treated water equivalent to the estimated water district tax that would have been levied on property located within the boundaries of the Benbrook Water & Sewer Authority had the Authority been a part of the District. The additional payment shall be made annually in December to the City of Fort Worth. The amount of the additional payment shall be determined using tax valuations of property that is furnished water under the terms of this agreement as established by the County Tax Assessor and Collector of the County in which the property is located and the additional tax rate per $100.00 valuation for water supply as may be. established by the Tarrant County Water Control and Improve- ment District Number 1 for property located in the Tarrant County Water Control and Improvement District Number 1 . The City of Fort Worth agrees to transmit such additional payment to the Tarrant County Water Control and Improvement District Number 1 . 9• 11 . STATE HEALTH DEPARTMENT APPROVAL The water system of the Purchaser shall be approved by the Texas State Depart- ment of Health during the life of this contract. If at any time the water system of the Purchaser is not approved by the Texas State Department of Health, there shall not be any direct physical connection between the Fort Worth Water system and the Purchaser's Water System. 12. RESALE OF WATER The Purchaser does hereby covenant and agree not to sell water to any user located within the limits of its service at a rate lower than the equivalent Fort Worth rate charged a similar customer located within the City of Fort Worth. The Purchaser agrees to furnish the City of Fort Worth Water Department a complete rate schedule for all Purchaser's water sales . The Benbrook Water & Sewer Authority will not make any extension of water lines beyond the limits of the Benbrook Water & Sewer Authority as its boundaries now exist or may hereafter exist, nor permit any connections for water outside its limits , without the approval of the City of Fort Worth. In the event the City of Fort Worth agrees to any extension by the Benbrook Water & Sewer Authority of its water service outside its boundaries , the rates to be charged its customers by the Benbrook Water & Sewer Authority and the compensation to be paid by it to the City of Fort Worth shall be determined and fixed at the time such action is taken. 13. EMERGENCY RATES OF USE During a temporary emergency condition created by an unforeseeable mechanical failure, including the rate of flow control equipment, or by unprecedented high rate of water usage such as might result from a major fire or a major break, it may be necessary that water be withdrawn from the Fort Worth system at a rate of usage in excess of that required to meet the usual peak requirements of the Pur- chaser. It is agreed that extra rate of use charges that would normally be applicable shall not apply for such emergency withdrawals. However, the com- modity charge for such water shall be payable. —It is further agreed that if Fort Worth experiences such similar temporary emergency water supply conditions , water may be released to Fort Worth from the Purchaser 's system upon request by the Director of the Fort Worth Water Department. The quantity of water used by Fort Worth during such emergency conditions shall be deducted from the quantity of water withdrawn from the Fort Worth System during the month by the Purchaser before computing the monthly payment by the Purchaser. 14. FORCE MAJEURE If by 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 Purchaser to make payments required under the terms hereof, then if such party shall give notice and full particulars of such force majeure 10. 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 con- tinuance 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. 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, earthquake, fires , hurricanes , storms , floods , washouts , droughts , arrests , restraint of government and people, civil disturbances , explosions , breakage or accidents to machinery, pipe lines or canals , partial or entire failure of water supply and inability on the part of the City of Fort Worth to deliver water here- under or the Purchaser to receive water hereunder on account of any other causes not reasonably within the control of the party claiming such inability. 11 , IN TESTIMONY WHEREOF, after proper action by the respective governing bodies for the parties hereto, we have caused these presents to be executed in quadru- plicate 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. CITY OF FORT WORTH B Y Mayor ATTEST: City ecretary APPROVED AS TO FORM AND LEGALITY: 2, 61 City Attorney APPROVAL RECOMMENDED: Director, Fort orth Wa Department BENBROOK WATER AND SEWER AUTHORITY B IN President, Board of Direct fs ATTEST: c j Secr ary of Board APPR, VFD AS TO FORM AND LEGALITY : Attorney 4 {i;c'.:.' _ -._ -ea:s:.----.. -- � 1Y•`y�..•., ,,..�/.sue: ,._ ..,•,_.. '' '+sw� r� �-u�3t�""?fE +< :ii`t � 7. 17 tl �'� • „ :i d II. II Ilet /?! .gc5'/7/./'Ol' • .. L )' 1. ���(;'';� • ;' J'1' 1. � �\'� �. J= � •�i . l � City ®f Fort Worth, Texas $RpWNLEE Mayor lL and Council Communication MoftPHIS �pY DATE REFERENCE SUBJECT: Proposed Water Sale Contract PAGE NUMBER with Benbrook Water and Sewer 6/27/66 C-738 1 of 3 Authority A proposed contract for the sale of treated water by the City of Fort Worth to the Benbrook Water and Sewer Authority is attached. The Benbrook Water and Sewer Authority is, a governmental agency created by the State Legislature, and it provides retail water service to residents of the City of Benbrook. Since August of 1959, water has been furnished to the Authority by the City of Fort Worth on a temporary (double rate) basis . Background information on this sub- ject was furnished in a report to Council Members on February 9, 1966. The Authority officials report that extensive water system improvements are needed and that a pre-requisite for the anticipated sale of bonds for these im- provements is assurance of an adequate source of water on a long-term basis . It is the intention of the Authority at this time to use Fort Worth water only as a supplementary supply to its own. supply and therefore most water sales by Fort Worth are expected to be during the summer months . The Board of Directors of the Authority has approved the proposed water sales contract. Summary of Contract Provisions The proposed contract has been prepared in accordance with the standard policy of the City of Fort Worth for the sale of treated water to neighboring commun- ities . The proposed contract includes the following major provisions : 1) Rates : The charges for water service are based upon the following schedule : Commodity Charge - Includes maintenance, operating and raw water charges of 16 cents per 1,000 gallons used (this amount includes 9 cents per 1,000 gallons for raw water used outside the Tarrant County Water Control and Improvement District No. 1) . Cost of Facility Charge - Includes the fixed capital charges for the production and transmission of treated water, including an allocation of and charge for costs for facilities needed to meet maximum day water usage, plus an additional charge for facilities needed to meet maximum hour usage in excess of the maximum day usage. The initial charges under the proposed contract are $16,000 per M.G.D. for maximum day usage and $8,280 per M.G.D. for maximum hour usage. Service Charge - $25 per month for meter reading, billing, and miscellaneous expense. 2) Payment for water: The initial minimum annual payment under the proposed contract is $2,540, which is based on a withdrawal rate of not less than 100,000 G.P .D, a total usage of 4,000,000 gallons , and the service charge of $25 monthly. At least $158.33 shall be paid monthly. The actual annual payment for water by the purchaser shall be re- lated to the annual and peak volumes used and will not be less DATE REFERENCE SUBJECT: Proposed Water Sale Contract PAGE NUMBER with Benbrook Water and Sewer 6/27/66 C-738 Authority 2 °f 3 than the charge paid for an equivalent amount used by a water consumer within the corporate limits of Fort Worth, plus 10 per cent, plus 4.5�. per 1,000 gallons raw water payment for water used outside the boundaries of Tarrant County Water Control and Improvement District No. 1 , plus a $25 monthly service charge per meter. 3) Effective Date for Billing: The effective date of the contract for billing purposes if September 15, 1966. 4) Rate Adjustments : The contract provides for rate adjustments based on actual costs and rates of use, which will be reviewed at five- year intervals during the contract term. The charge for raw water will be increased or decreased in accordance with vari- ations in the cost of raw water to the City of Fort Worth. 5) Resale of Water: The Authority agrees not to sell water at a lower rate than the City of Fort Worth rate charged a similar customer located in Fort Worth. Extensions of water service by the Authority outside its boundaries will be subject to approval of the City of Fort Worth. 6) Water District Tax Levy: The Authority agrees to pay an amount equivalent to any additional ad valorem tax levied by Tarrant County Water Control and Improvement District No. 1 for water supply purposes . 7) Maximum Rate of Withdrawal : The maximum rate of water withdrawal from the Fort Worth system will be limited to the product of 1 .35 times the maximum withdrawal rate of the previous year, unless written notice has been given by the Authority to the City of Fort Worth at least six months in advance of the anticipated demand increase. The Director of the Fort Worth Water Depart- ment is authorized to waive the prior notice and time require- ments , provided adequate treated water is available. 8) Restricted Supply Procedures : In the event the water supply is restricted in Fort Worth for any reason, the quantity withdrawn by the Au- thority can be reduced in the same proportion. 9) Rationing: If it is necessary for the City Council of Fort Worth to ration the use of water used in Fort Worth, similar rules must be adopted by the Benbrook Water and Sewer Authority if any water is being supplied the Authority by Fort Worth at that time. DATE REFERENCE SUBJECT: Proposed Water Sale Contract PAGE NUMBER with Benbrook Water and Sewer 6/27/66 C-738 Authority 3 of 3 10) Meters : The meter installation, equipped with flow recording and rate of flow devices , will be installed by the Authority at its expense and will be located on Williams Road between Mary's Creek and Brook Chaplin Road . 11) Service to Fort Worth : At the request of the City of Fort Worth, the Authority agrees to furnish water to premises in Fort Worth. The metered quantity of water used by such customers will be deducted from the total quantity of water withdrawn from the Fort Worth system by the Authority. The annual maximum day charge, if in excess of the minimum, will be reduced in proportion to the number of consumers furnished water by the Authority within its boundaries and within Fort Worth. Summary and Recommendation The proposed long-term water sales contract between the Benbrook Water and Sewer Authority and the City of Fort Worth appears to be beneficial to the long-range interests of both parties. Terms of the contract are consistent with the standard policy for sale of water to other municipalities, and ap- pear to be equitable to both parties. Therefore, it is recommended that the attached water sales contract be approved, and that the Mayor be authorized to execute the attached contract on behalf of the City of Fort Worth. JBB:GA attach SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY n ❑ APPROVED ❑ OTHER (DESCRIBE) CITY SECRETARY /!f DATE CITY MANAGER