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HomeMy WebLinkAboutContract 31997 CITY SECRETARY 3iaqCONTRACT NO STATE OF TEXAS ) KNOW ALL BY THESE PRESENTS: COUNTY OF TARRANT ) THIS AGREEMENT is made and executed by and between the City of Fort Worth, Texas, a municipal corporation situated in Tarrant County, Texas, hereinafter called the "City", acting herein by and through Marc Ott, its duly authorized Assistant City Manager, and Malcolm Pimie, Inc., hereinafter called the "Consultant ", acting herein by and through Richard D. Giardina, its duly authorized Vice President and Project Officer. WITNF. SSFTH: WHEREAS, the City wishes to engage the Consultant to perform a wholesale water cost of service and rate study; WHEREAS, the Consultant is willing to perform such wholesale water cost of service and rate study for the City; WHEREAS, the City desires to engage the Consultant to render certain services in connection therewith and the Consultant is willing to provide such services. NOW, THEREFORE, that for and in consideration of the mutual covenants and agreements herein contained, the parties hereto do hereby covenant and agree as follows: SECTION 1. Services of the Consultant: The City hereby contracts with the Consultant as an independent consultant, and the Consultant hereby agrees to perform the professional services set out herein in accordance with standard utility rate-setting practices and policies and in accordance with the requirements of the uniform wholesale water contracts, a copy of which is attached hereto as Attachment A. SECTION 2. Sone of Services: The Consultant shall conduct a wholesale water cost of service rate study and develop wholesale water rates for fiscal year beginning October 1, 2005 in accordance with Attachment B. The Consultant shall not be responsible for additional services except by written amendment to this agreement signed by both parties hereto. SECTION 3. Time of Performance: Services of the Consultant shall commence upon execution of this Agreement. Unless otherwise directed by the City and agreed to by the Consultant, the timing of interim deliverables shall follow the schedule as set forth by the City, as follows: By June 9, 2005 - First interim review with Wholesale Advisory Committee(Operations &maintenance cost analysis) RCVD (Cip URIGINAL By June 23, 2005 - Second interim review with Wholesale Advisory Committee (Depreciation, rate of return analysis, and draft rate structure recommendations). Consultant shall complete and deliver the draft report on or before August 3, 2005, the final report on or before August 31, 2005, and shall complete all other services on or before September 23, 2005, unless an extension of time is granted by the City in writing. The City recognizes that portions of the Consultant's work and the completion thereof are predicated upon timely performance and completion of certain activities required to be performed by the City. Accordingly, delays in Consultant's performance and completion that occur due to circumstances and events beyond the reasonable control of the Consultant will give rise to the need for an extension of time for the completion of Consultant's work. Consent for extension of time for performance as a result of the foregoing shall not be unreasonably withheld or delayed. SECTION 4. Compensation to the C'onsnitant and Method of Pawent: As compensation for the services required to complete this Project in accordance with the terns of this Agreement, the City agrees to pay the Consultant on the basis of the hourly rates set forth in this section an amount not to exceed $79,560. This amount shall constitute ftrll and complete compensation for the Consultant's services under this Agreement, including all expenditures made and expenses incurred by the Consultant in performing such services, and which amount is hereinafter referred to as the"Basic Fee". The Basic Fee shall be paid to the Consultant in monthly installments upon submission of statements, together with supporting data indicating the progress of the work and services performed for the month immediately proceeding. Invoices will be due upon receipt and payable within 30 days, subject to certification by the Director of the Water Department, or his authorized representative, that such work has been performed and the expenses have been incurred. Such certification shall not be unreasonably withheld or delayed. Compensation for the services rendered by the Consultant as set forth in Attachment A, entitled `Basic Services," shall be paid at the following rates: Partners $265 Principle Consultants-Manager $255 Staff Specialist $132 tol55 Clerical Staff $ 80 These rates are effective for all work completed prior to October 1, 2005. After such time, these rates are subject to change based on written agreement by both parties. Reimbursable expenses are part of the Basic Fee and include, but are not necessarily limited to subcontractor expenses, travel, report production and other out-of-pocket expenses, which shall be paid based upon actual cost, supported by such documentation as the City may reasonably request. The undersigned representatives of the City hereby warrant and represent that the legislative authority of the City has complied with all necessary rules and regulations and statutory provisions in connection with the authorization of this Agreement and the amount to be paid hereunder and that the funds necessary to meet its contractual obligations under this agreement have been appropriated for this purpose and are free from any previous encumbrance and are being held in the appropriate fiend for the purpose of this Agreement. SECTION 5. Establishment and Maintenance of Records: Records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of three (3) years after receipt of final payment under this Agreement. SECTION 6. Audits and Inspections: The Consultant agrees that the City shall, until the expiration of three (3) years after the final payment under this Agreement have access to and the right to examine any directly pertinent books, documents, papers and records of the Consultant involving transactions relating to this Agreement. The Consultant agrees that the City shall have access during normal working hours to all necessary Consultant facilities and shall be provided adequate and appropriate workspace in order to conduct audits in compliance with the provisions of this section. The City shall give Consultant reasonable advance notice of intended audits. The Consultant further agrees to include in all its subcontracts hereunder a provisions to the effect that the subcontractor agrees that the City shall, until the expiration of three (3) years after the final payment and directly pertinent books, documents, papers and records of such subcontractor, involving transactions to the subcontract, and further, that City shall have access during normal working hours to all subcontractor facilities, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with the provisions of this article, and shall give subcontractor reasonable advance notice of intended audits. Consultant agrees to photocopy such documents as may be requested by the City. The City agrees to reimburse Consultant for the cost of copies at the rate published in the Texas Administrative Code in effect as of the time copying is performed. Notwithstanding anything to the contrary herein, this Section 6 shall survive expiration or- earlier termination of this Agreement. SECTION 7. Indemnify: The Consultant agrees to defend, indemnify and hold harmless the City and its officials, agents and employees from and against any and all third party claims, actions, suits or proceedings of any kind brought against said parties to the extent caused by the negligent act, error, or omission of the Consultant or anyone fo �0 rU 4 legally liable in the performance of services hereunder. The Consultant is not required hereunder to defend, indemnify and hold harmless the City of Fort Worth and its officials, agents and employees from liability resulting from the negligence or wrongful acts of the City or any third party. For the purposes of this section, the term "third party" does not mean officers, sub consultants, the agents or employees of the Consultant. The indenmity required hereunder shall not be limited by reason of the specification of any particular insurance coverage in this Agreement. The Consultant shall have the right to defend against any and all such claims, actions, suits or proceedings with counsel of its own choosing and shall have the right to settle and or compromise such matter as the Consultant deems appropriate. The City shall provide Consultant with written notice of such claims within 10 business days after receipt of same by the City. The City agrees that it will cooperate with the Consultant in the defense of any such matter including,but not limited to,providing necessary documents and persomiel to testify. SECTION 8. Limitations: To the Rillest extent permitted by law, Consultant shall not be liable to City for any special, indirect, or consequential damages resulting in any way from the performance of the services. To the fullest extent permitted by law, Consultant's total liability to City for all claims, losses, damages, and expenses resulting in any way from the performance of the services shall not exceed five hundred thousand dollars ($500,000). SECTION 9. Compliance with Taws: In providing the scope of services outlined herein, the Consultant shall comply with all applicable laws, ordinances, and codes of the Federal, State and local governments. SECTION 10. Non-Discrimination: The Consultant agrees that its employees and applicants for employment and those of any labor organization, sub consultants, or employment agency in either furnishing or referring employee applicants to the undersigned are not discriminated against as prohibited by the terms of City Ordinance No. 7278 as amended by City Ordinance No. 7400. SECTION 11. M/WBE Goals: In accord with City of Fort Worth Ordinance No. 15530, the City has goals for the participation of minority business enterprises and woman business enterprises in City contracts. Consultant acknowledges the M/WBE goal established for this contract and its commitment to meet that goal. Any misrepresentation of facts (other than a negligent misrepresentation) and/or the commission of fraud by Consultant may result in the termination of this agreement and debarment from participating in City contracts for a period of time of not less than three (3) years. SECTION 12. Changes: The City may, from time to time, request changes in the Scope of Services of the Consultant to be performed hereunder. Such changes, including any increase or decrease in the amount of the Consultant's compensation, which are mutually 4 agreed upon by and between the City and the Consultant shall be incorporated in written amendments to this Agreement. SECTION 13. Personnel: A. The Consultant represents that it has, or will secure at its own expense, all personnel required in performing all of the services required under this Agreement. Such personnel shall not be employees of or have any contractual relationships with the City. B. All the set vices required hereunder will be performed by the Consultant or under its supervision and all personnel engaged in the work shall be qualified and shall be authorized or permitted under state and local law to perform such set-vices. C. The Consultant represents that the Consultant's Principle Consultant, Mr. John A. Gallagher, is available for the direction of the Basic Services indicated in Attachment A. SECTION 14. Assignability: Neither party hereto shall assign, sublet or transfer its interest herein without prior written consent of the other party, and any attempted assignment, sublease or transfer of all or any part hereof without such prior written consent shall be void. SECTION 15. Termination for Cause. If through any cause, unless it is caused by another party or due to an act beyond the control of the Consultant, the Consultant shall fail to materially fulfill in a timely and proper manner its obligations under this Agreement or if the Consultant shall materially violate any of the covenants, agreements or stipulations of this Agreement, the City shall have the right to terminate this Agreement by giving written notice to the Consultant of such termination and specifying the effective date thereof, with such effective date not to occur earlier than seven days after the notice date. The Consultant shall have seven calendar days to cure such alleged defaults. Unless such alleged defaults are cured and accepted by the City within this seven-day period, the Consultant shall immediately cease all work. In such event, all finished or unfinished documents, data, maps, studies, surveys, drawings, models, photographs and reports prepared by the Consultant under this Agreement shall, at the option of the City, become its property, and the Consultant shall be entitled to receive compensation in accordance with the terms of this contract for all work completed in accordance with the terms of this contract up to the date of tennination. Performance shall be defined in accordance with the terms of this contract and all attachments. Compensation is to include fees and expenses incurred by the Consultant as defined in Section 4 of this Agreement. Nothing herein shall constitute a waiver of any right, at law and at equity, which the City may have if the Consultant is in default, including the right to bring legal actions for damages or force the specific performance of this contract. The Consultant's work papers are specifically excluded from the list of documents, which become the City's property under this Section. However, the City does have the right to make copies, at its own expense, of the Consultant's work papers. 5 16. Termination of Convenience of City: The City may terminate this Agreement for its convenience at any time by giving at least fifteen (15) days' notice in writing to the Consultant. In the event of termination pursuant to this paragraph, Consultant shall be entitled to receive payment for all work completed or in progress, and for costs reasonably incurred to close out its project services. Compensation is to include fees, expenses, and liabilities to sub consultants or other third parties. Consultant will make reasonable attempts to cancel all such liabilities in order to mitigate the cost- to the City. If this Agreement is terminated due to the fault of the Consultant, Section 14 hereof relative to termination shall apply. SECTION 17. Tnsrnrance: The Consultant shall maintain at its own expense the following insurance: Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate Automobile Liability $1,000,000 each accident on a combined single limit or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence A commercial business policy shall provide coverage on "Any Auto", defined as autos owned, hired and non-owned when said vehicle is used in the course of the project. Worker's Compensation Coverage A: Statutory limits Coverage B: Employer's Liability $100,000 each accident $500,000 disease-policy limit $100,000 disease - each employee Professional Liability $1,000,000 each claim $2,000,000 aggregate nr[r ��� Professional liability shall be written on a claims-made basis and shall contain a retroactive date prior to the date of the contract or the first date of services to be performed, whichever is earlier. Coverage shall be maintained for a period of 5 years following the completion of the contract. An annual certificate of insurance specifically referencing this project shall be submitted to the City for each year following completion of the contract. Under no circumstances shall a "claims-made and reported policy or provision" be acceptable to the City. (2) Certificates of insurance evidencing that the Consultant has obtained all required insurance shall be delivered to the City prior to Consultant proceeding with the project. (a) Applicable policies shall be endorsed to name the City an Additional Insured thereon, as its interests may appear. The term City shall include its employees, officers, officials, agents, and volunteers as respects the contracted services. (b) Certificate(s) of insurance shall document that insurance coverage specified in this agreement are provided under applicable policies documented thereon. (c) Any failure on part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirements. (d) A minimum of thirty (30) days notice of cancellation or material change in coverage shall be provided to the City. A ten (10) days notice shall be acceptable in the event of non-payment of premium. Such terms shall be endorsed onto Consultant's insurance policies. Notice shall be sent to the Director of the Fort Worth Water Department, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102. (e) Insurers for all policies must be authorized to do business in the State of Texas and have a minimum rating of A: VII in the current A.M. Best Key Rating Guide or have reasonably equivalent financial strength and solvency to the satisfaction of Risk Management. (f) Deductible limits, or self-insured retentions, affecting insurance required herein shall be acceptable to the City in its sole discretion; and, in lieu of traditional insurance, any alternative coverage maintained through insurance pools or risk retention groups must be also approved. Dedicated financial resources or letters of credit may also be acceptable to the City. (g) Applicable policies shall each be endorsed with a waiver of subrogation in favor of the City as respects the project. 7 (h) The City shall be entitled, upon its request and without incurring expense, to review the Consultant's insurance policies including endorsements thereto and, at the City's discretion, the Consultant may be required to provide proof of insurance premium payments. (i) The Commercial General Liability insurance policy shall have no exclusions by endorsements unless the City approves such exclusions. 0) For all lines of coverage underwritten on a claims-made basis, other than Professional Liability, the retroactive date shall be coincident with or prior to the date of the contractual agreement. The certificate of insurance shall state both the retroactive date and that the coverage is claims-made. (lc) The City shall not be responsible for the direct payment of any insurance premiums required by this agreement and all insurance required in this section, with the exception of Professional Liability, shall be written on an occurrence basis. (1) Subconsultants and subcontractors to/of the Consultant shall be required by the Consultant to maintain the same or reasonably equivalent insurance coverage as required for the Consultant. When sub consultants/subcontractors maintain insurance coverage, Consultant shall provide City with documentation thereof on a certificate of insurance. SECTION 18. Financial Model: The City acknowledges and agrees that the interactive financial model utilized by the Consultant, and demonstrated to the City, is a proprietary and confidential Consultant service instrument, and is to be used solely for the financial analysis proposed by the Consultant and is not to be resold or otherwise used for secondary commercial gain." Certificates of Insurance shall be furnished to the City upon request. SECTION 19. Seve_ rabil : If any portion of this agreement is held to be void, invalid, or otherwise unenforceable, in whole or part, the remaining portions of this agreement shall remain in effect. SECTION 20 Venue: Should any action,whether real or asserted, at law or in equity, arise out of the terms of this contract,venue for said action shall be in Tarrant County, Texas. SECTION 21. Agreement Amendment: This instrument represents the entire understanding between the City and the Consultant in respect to the Project, supersedes any and all prior written or oral negotiations of agreements between the parties, and may only be modified in writing signed by both parties. SECTION 22. des: All written notices to the respective parties shall be sent by registered mail and be addressed as follows: :TTY OF FORT WORTH CONST LTANT Mr. Marc Ott Mr. Richard D. Giardina Assistant City Manager VP and Project Officer City of Fort Worth Malcolm Pimie 1000 Throckrnorton 3300 S. Parker Road Fort Worth, Texas 76102 Aurora, CO 80014 SECTION 23. Captions: The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms and conditions of the Agreement. SECTION 24. Conflicts: This Agreement is the sole agreement between the City and the Consultant and any and all other prior agreements, whether oral or written, are merged into this Agreement and of no further force or effect. IN TESTIMONY WHEREOF, the City of Fort Worth, Texas, has caused this instrument to be signed in its name and on its behalf by its Assistant City Manager, and attested by its City Secretary, with the Corporate Seal affixed; and the Consultant has also properly executed this instrument in triplicate copies each of which is deemed an original. 1 lm e Mr. Richard D. Giardina VP and Project Officer Date Attest: ;ity o Fo ortl ex Marty Hendrix Ma Ot )) City Secretary Assistant City Manager Date Appro 1 Reco e d : Approve46onn and L ality: S. Frank Crumb,P.E. Assistant Acting Director Fort Worth Water Department Contract Authorization Date �a ATTACHMENT A CONTRACT FOR WATER SERVICE BETWEEN THE CITY OF FORT WORTH, TEXAS, AND CITY OF , TEXAS STATE OF TEXAS § COUNTY OF TARRANT § This contract and agreement is made and entered into this _th day of , 2005, by and between the City of Fort Worth, a municipal corporation located in Tarrant County, Texas, acting by and through Mike Groomer, its duly authorized Assistant City Manager, hereinafter called "Fort Worth," and the City of , located in County, Texas, acting by and through its duly authorized Mayor, 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, 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, ul.fel '\ LL ATTACHMENT A 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 continue to contract for the purchase of treated water and Fort Worth desires to continue to sell treated water to Customer; and WHEREAS, Section 402.001 and 402.075 of the Texas Local Government Code, and Chapter 791 of the Texas Government Code authorize Fort Worth and Customer to enter into this agreement; NOW, THEREFORE, KNOW ALL BY THESE PRESENTS: That, for and in consideration of the mutual covenants, promises and agreements contained herein, Fort Worth and Customer do hereby covenant and agree as follows: 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'wate , I` 2 ATTACHMENT A 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 "Fort 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 3 ATTACHMENT A system losses of four percent (4%), and the street rental charge of four percent (4%). 1.15 "Wholesale System Access Fee" is a capital contribution funding or recouping the costs of General Benefit Facilities capital improvements or General Benefit Facilities facility expansions necessitated by and attributable to new development. 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. 1.17 "Volume Charge" represents the combined treatment, pumping and transmission charge and the raw water charge in effect for the current Fiscal Year. 1.18 "Capital improvements" means any of the following facilities which provide utility services and benefits common to all customers and that have a life expectancy of three or more years, whether such capital improvements are located within the jurisdictional limits of Fort Worth or Customer water treatment facilities, metering facilities, control systems and appurtenances, storage facilities, pumping facilities and all mains that are sixteen inches (16") and greater in diameter. 1.19 "Facility Expansion" is the expansion of the capacity of an existing facility that serves the same function as an otherwise necessary new capital improvement, in order that the existing facility may serve new development. The term does not include the repair, maintenance, modernization, or an expansion of an existing facility to better serve existing development. 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 4 ATTACHMENT A 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, 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. 3. Location 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 5 ATTACHMENT A 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 as 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; ATTACHMENT A 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 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 7 ATTACHMENT A 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 8 ATTACHMENT A 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 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. 6. Rates 6.1 Method of Rate Determination 6.1.1 Wholesale water rates will be based upon a cost-of-service rate study performed by independent utility rate consultants as provided for in Section 6.1.4 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, 9 ATTACHMENT A 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 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 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. 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 staterne. �JVJG;l,.L 1�15��J.1� Such adjustments should allow for year-end trending and the spreading o n �7�1rr ���lr I�nl 10 ATTACHMENT A expenses over an appropriate benefit period. 6.1.5 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, 2005, and have been computed as follows: The Treatment, Pumping and Transmission Charge shall be $0.5398 per 1,000 gallons withdrawn by Customer. The raw water charge shall be $.6337 per 1,000 gallons for Customers inside the Tarrant County Water Control and Improvement District #1, and $.6823 for Customer's outside the District. The annual charge per MGD of Maximum Day Demand in excess of Average Daily Use shall be $108,262 per MGD, and Maximum Hour Demand in excess of the Maximum Day Demand shall be $16,895 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 11 ATTACHMENT A 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 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 of the 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 12 ATTACHMENT A 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: 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 ($12,000). 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 yeas__ unless Customer has notified the Director in writing at least (6) months prior Ato,t,�F�/ i Lfy,'�� C1 13C � ULG1 ATTACHMENT A 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 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, 2000. 14 ATTACHMENT A Rate Of Monthly Volume Use Service Month Consumption Charges Charges Charges Total Oct 1,000,000 $1,073.70 $762.31 $25 $1,861.01 Nov 1,000,000 $1,073.70 $762.31 $25 $1,861.01 Dec 1,000,000 $1,073.70 $762.31 $25 $1,861.01 Jan 1,000,000 $1,073.70 $762.31 $25 $1,861.01 Feb 1,000,000 $1,073.70 $762.31 $25 $1,861.01 Mar 2,000,000 $2,147.40 $762.31 $25 $2,934.71 Apr 3,000,000 $3,221.10 $762.31 $25 $4,008.41 May 3,000,000 $3,221.10 $762.31 $25 $4,008.41 Jun 3,000,000 $3,221.10 $762.31 $25 $4,008.41 Jul 3,000,000 $3,221.10 $762.31 $25 $4,008.41 Aug 4.000.000 $4.294.80 $762.31 $25 $5.082.11 23,000,000 $24,695.10 $8,385.37 $275 $33,355.47 Sep 3.000.000 $3.221.10 3.083.93 $25 6.330.03 26,000,000 $27,916.20 $11,469.30 $300 $39,685.50 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 gallons Monthly Excess Maximum Day and Hour Payment Calculation .115 mg X $79,545. $ 9,147.68 (Maximum day) .305 mg X $0 0.00 (Maximum hour) Total $ 9,147.68 Monthly Rate of Use Payment (Total Divided by 12)= $ 762.31 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 = 70,312 gallons Maximum Day Demand for the current year = 215,000 gallons Maximum Hour Demand for the current year = 545,000 gallons 15 ATTACHMENT A Maximum Day Demand above Average Daily Use = 144,688 gallons Maximum Hour Demand above Maximum Day Demand = 330,000 gallons Fiscal Year Average of Most Recent Three Years CURRENT FY FY FY 1999 1998 Maximum Day Demand above Average Daily Use 144,688 115,000 128,766 Maximum Hour Demand above Maximum Day Demand 330,000 305,000 320,000 Three year average of Maximum Day Demand above Average Daily Use 129,485 Three year average of Maximum Hour Demand above Maximum Day Demand 318,333 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 '00 Rates (Based on Current Year Data) 26,000 X $ 1.0737 $27,916.20 .1447 mg X $79,545 11,510.16 .3300 mg X $0 0.00 12X $25 X 1 300.00 Total Annual Payment $39,726.36 Previous Billings for October through August Usage 33,355.47 October Billing for September Usage $ 6,370.89 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 year = 70,312 gallons Maximum Day Demand for the current year = 215,000 gallons Maximum Hour Demand for the current year = 545,000 gallons Maximum Day Demand above Average Daily Use = 144,688 gallons Maximum Hour Demand above Maximum Day Demand = 330,000 gallons 16 ATTACHMENT A Fiscal Year Average of Most Recent Three Years CURRENT FY FY FY 1999 1998 Maximum Day Demand above Average Daily Use 144,688 115,000 178,234 Maximum Hour Demand above Maximum Day Demand 330,000 305,000 361,000 Three year average of Maximum Day Demand above Average Daily Use 145,974 Three year average of Maximum Hour Demand above Maximum Day Demand 332,000 Customer's annual payment will be based on the greater of the current Fiscal Year maximum usage rates or the average of the maximum usage rates of the most recent three Fiscal Years. Annual Payment Calculation FY '00 Rates (Based on average of most recent three years) 26,000 X $1.0737 $27,916.20 .1460 mg X $79,545 11,613.57 .3320 mg X $0 0.00 12 X $25 X 1 300.00 Total Annual Payment $39,829.77 Previous Billings for October through August Usage 33,355.47 October Billing for September Usage $ 6,474.30 8. Effective date of contract 8.1 The effective date of this contract for all purposes will be the earlier of 2000 or the day Customer first withdraws water from Fort Worth system. 9. Life of contract 9.1 This contract shall expire on December 31, 2010, and may be renewed on terms mutually agreeable to the parties hereto. 17 ATTACHMENT A 10. Rights-of-waT 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 service area 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 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 18 ATTACHMENT A 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 has been 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 corporate limits 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 Only those existing connections outside of the Customer's Water System that are shown in Exhibit(s) attached hereto, shall be permitted to continue. 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. anita Sewer Facilities 19 ATTACHMENT A 13.1 The Customer agrees that it will require all of its customers, who are provided water from the Fort Worth system, to have adequate sanitary sewage facilities meeting state health department requirements. 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, 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, administration, budgets, and additional wholesale customers, whether same be wholesale customers of Customer or Fort Worth. The Committee may establish bylaws governing the election of officers, meeting dates and other matters pertinent to its functioning. 16. System AFees 16.1 On a quarterly basis, Customer agrees to pay to Fort Worth a Wholesale System Access Fee for each new or enlarged connection for water service made within Customer's service area served by the General Benefit Facilities of the Fort Worth Water System. The Wholesale System Access Fee to the Customer for each such connection shall be based upon the size of water meter and shall be equal to the Wholesale System 20 ATTACHMENT A Access Fee collected for the same size water meter made within the jurisdiction of Fort Worth. The calculation of said Wholesale System Access Fee shall be consistent with all applicable state and federal regulations, including Chapter 395, Texas Local Government Code, or any amendment or successor statute thereto, and shall include only those costs associated with General Benefit Facilities expansions and capital improvements necessary to provide service to new development. Nothing within this contract shall be deemed to prevent either Fort Worth or Customer from charging their own retail customers impact fees in excess of the Wholesale System Access Fee provided for herein. 16.2 Fort Worth agrees that all monies remitted to it pursuant to this Section will be placed in a separate interest bearing account to pay only for the cost of constructing capital improvements or facility expansions as permitted by Chapter 395, Texas Local Government Code, or any amendment thereto, or by any successor statute thereto, and will not be used for operation and maintenance expenses. Once expended, 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 such information that relates to the making of new and/or enlarged connections within its jurisdiction as may be requested by the Director, including but not limited to building permits, with each quarterly payment required in this section. 16.4 Neither Fort Worth nor Customer shall waive any impact fee due from new or enlarged connections to its respective system within its jurisdiction. However, either Fort Worth or Customer may pay such impact fee into the fund required for paying for the capital improvements. 16.5 The Water System Advisory Committee created pursuant to Section 15 21 ATTACHMENT A hereof shall select five (5) of its members to a subcommittee to be known as the Customer Impact Fee Committee (CIFC). Every three years, beginning June, 1992, Fort Worth will update the land use assumptions and capital improvements plan upon which the Wholesale System Access Fees are based. In June 1992 and every three years thereafter, the CIFC shall submit a list of five qualified engineers or planning consultants to the Director. The Director shall select a consultant from such list to assist Fort Worth in developing land use assumptions, identifying capital improvements, and formulating capital improvement plans and access fees. The consultant shall be responsible to Fort Worth and its citizen's advisory committee, but shall also report to the CIFC. The cost of the consultant shall be deemed a System Cost. In the event the CIFC fails to submit a list of five consultants to Fort Worth, Fort Worth shall select a consultant to perform in the manner described herein. 16.6 Fort Worth agrees that only those capital improvements as defined in section 1.18 hereof shall be included in the capital improvements plan for the purpose of determining Wholesale System Access Fees; provided however, Fort Worth may include other capital improvements for the purpose of determining impact fees to its own retail customers. Fort Worth shall not be required to include all capital improvements in any capital improvements plan. The CIFC shall be responsible for working with Fort Worth and its consultant to determine the capital improvements to be included in the calculation of any Wholesale System Access Fees. The CIFC shall recommend to the Water System Advisory Committee which capital improvements should be included in the calculation of any Wholesale System Access Fees. The CIFC shall also meet with Fort Worth's citizen advisory committee as such citizen's advisory committee reviews and considers land use assumptions, the capital improvements plan and impact fees. v ,D 16.7 Prior to the adoption of any land use assumptions, capital improvements,_or UK 22 ATTACHMENT A access fees by Fort Worth, the CIFC shall be furnished a copy of the proposed land use assumptions, capital improvement plan or access fees at least 30 days prior to any scheduled hearing thereon. Any revised access fee adopted pursuant to such updated capital improvements plan shall not take effect for a period of at least ninety (90) days after adoption by Fort Worth. 16.8 Each year Fort Worth shall provide to the Wholesale Water Advisory Committee an audited financial statement of the Fort Worth Water Department's records. 16.9 For the period of time from January 1, 1991 until June 5, 1993, Customer agrees to pay to Fort Worth the water access fees per new connection based upon Exhibit "A" attached hereto and incorporated herein for purposes and intents. After June 5, 1993, Customer agrees to pay access fees in such amounts as may be determined in the manner provided in this Section 16. 16.10 Fort Worth and Customer agree that the methodology for the calculation of Wholesale System Access Fees required herein shall be consistent with the methodology prescribed by Chapter 395, Texas Local Government Code, or any amendment or successor statute thereto. In the event that such statutory methodology is amended or replaced by a new statute, the Wholesale Water Advisory Committee may engage legal counsel to work with Fort Worth to propose amendments to this contract to conform it to such amendment or new statute. The reasonable cost of such legal counsel shall be a System Cost. 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 23 ATTACHMENT A 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 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 cure said 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. 24 ATTACHMENT A 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 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 resolution 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. 25 ATTACHMENT A 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 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 26 ATTACHMENT A 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 rthe 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 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 27 ATTACHMENT A 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 continuance of the inability then claimed, but for no longer period, and such party shall endeavor to remove or overcome such inability with all reasonable dispatch. 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, 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 cause 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: Water Director City of Fort Worth 1000 Throckmorton Street Fort Worth, TX 76102 Customer: Mayor City of Address , Texas 7 28 ATTACHMENT A 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 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. Miscellaneous 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 peak requirements of Customer. It is agreed that extra Rate of Use Charges that would normally be applicable shall not apply for such bona fide emergency withdrawals provided that Fort Worth is notified in writing within 48 hours of the occurrence of an emergency condition. In any event, the volume and Rate of Use Charges for all water delivered shall be due and payable as described elsewhere herein. 22.3 At the request of the Director, Customer agrees to furnish water to areas 29 ATTACHMENT A 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 furnished 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 service area or served by Customer as may be necessary for the purpose of inspections and observation, measurements, sampling and testing and/or auditing, in accordance with the provisions of this contract. Customer may elect to accompany the Fort Worth representative. To the extent permitted by law, Fort Worth agrees to indemnify Customer for any damage or injury to person or property caused by the negligence of such duly authorized employee while 30 ATTACHMENT A 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 the other 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 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; 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; 31 ATTACHMENT A 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 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. 22.11 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. 22.12 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. r1 ,� D 22.13 It is agreed that, in the event any term or provision herein contained,`m �^ + L ''`} f 32 ATTACHMENT A to be invalid by any court of competent jurisdiction, 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. 33 ATTACHMENT A ATTEST: CITY OF FORT WORTH By: City Secretary, City of Fort Worth Assistant City Manager City of Fort Worth APPROVED AS TO FORM AND LEGALITY: City Attorney, City of Fort Worth Date: APPROVAL RECOMMENDED: Director City of Fort Worth Water Department CITY OF ATTEST: BY: Mayor City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney Date: APPROVAL RECOMMENDED: 34 ATTACHMENT B CITY OF FORT WORTH, TEXAS FORT WORTH WATER DEPARTMENT WHOLESALE WATER COST OF SERVICE AND RATE STUDY The Consultant shall conduct a wholesale water cost of service and rate study for Fiscal Year 2006 (year beginning October 1, 2005) in accordance with the scope of service task plan presented below. The scope of services includes basic elements covering revenue requirements determination, cost of service allocations, and rate design. In addition, it includes review of the City's rate model as well as meetings/presentations and the submittal of reports. Further, the scope ensures that the wholesale water rate study will be performed in accordance with generally accepted principles for water rate studies and that the methodology utilized will comply with the terms of the uniform contract between the City and its wholesale customers. Task 1 -Establish Cost of Service (Revenue Requirements) The cost of service, or revenue requirements, to be shared by the City's wholesale customers for the "test year" ending September 30, 2004, will be established utilizing the rate methodology contained in the uniform wholesale contract between the City and wholesale customers. Revenue requirements will be determined on a utility basis and will include operating and maintenance (O&M) expense, depreciation expense, return on investment, and street rental fees. Specific activities to be accomplished in this task include: 1. Operating & Maintenance Expense. Test year O&M expense to be shared will include historical costs for the fiscal year ending September 30, 2004, adjusted for known and measurable changes to expense categories, such as salary and wages, employee benefits, power and chemical costs, non-recurring costs recovered over a related benefit period, etc. 2. Depreciation Expense. Annual depreciation expense to be shared will be based on available plant investment data from the Fort Worth Fixed Asset Tracking System, as of March 31, 2005, net of grants and contributions, applied to appropriate annual depreciation rates as utilized in the most recent wholesale water cost of service study. 3. Return on Investment and Street Rental Fee. Return on investment to be shared will be calculated on investment in facilities providing water service to the wholesale customers (or rate base). Investment will include plant investment net of accumulated depreciation, grants and contributions, plus construction work in progress at March 31, 2005, including recognition of inventories and working capital. Return will be determined by applying a rate of return equal to the weighted average imbedded cost of outstanding debt plus 1-1/2 percent to plant investment. B-1 The street rental fee to be shared will be calculated as 4 percent of the sum of O&M, depreciation, and return on investment attributable to wholesale water sei vice. Task 2-Allocate Cost of Service to Customer Classes The wholesale customer share of the test year cost of service will be developed by first allocating the elements of cost of service identified in Task 1 to functional cost components and then to wholesale customers based on their proportional share of units of service associated with each functional cost category. Specific activities to be accomplished in this task include: 1. Allocate Cost of Service to Water Service Functional Cost Components. O&M, depreciation, and return will be allocated to the various costs of service components that constitute a functional classification of service provided to water customers. The allocation methodology must meet industry standards and accurately allocate to functional cost components all expenses and capital investments. The return element will be based on allocated net plant investment or rate base. 2. Allocate Functionalized Costs to the Wholesale Customer Class. The wholesale customer- class will be allocated their share of the fiuictional cost of service component costs based on their responsibility for each functional component cost as determined by their proportional share of related units of service associated with each cost function. Task 3 -Design Wholesale Water Rates for fiscal year 2005-2006 Percentage allocations and unit costs developed in connection with the cost of service methodology/allocation task (Task 2) will serve as the basis for the development of cost of service-based rates for the wholesale customers. As discussed in Task 6, the City's existing rate model will be revised as appropriate and will be utilized in performing this task. This rate design process will adhere to the rate structure requirements of the Wholesale Uniform Water Contract. Specific activities to be accomplished in this task include: 1. Recommend Wholesale Rate Pricing Structure. Unit costs developed in Task 2 will be utilized to develop a schedule of proposed charges and will be compared with existing charges. Task 4 -Provide Recommendations for Changes in Cost/Rate Methodology The City's current cost of service - rate methodology will be reviewed for: (1) adherence to the terms and conditions of the uniform wholesale contract; (2) correct and consistent application of the utility basis cost of service concepts and principles; and (3) recognition of special conditions and factors which may influence the wholesale rate design causing significant fluctuations from year to year in calculated rates. After discussions with City staff and the Wholesale Water Advisory Subconumittee, other assumptions/applications may be incorporated in the ratemaking methodology if considered necessary. Based upon this review and any recommendations resulting therefrom for making changes in the IL 6 LID YL wholesale rate calculation methodology, modifications will be made as appropriate, pertaining to each of the following areas: 1. Cost Allocation The portion of total system's cost attributable to wholesale customers is determined through an allocation process. The first requirement is to assign O&M Expense, Depreciation Expense and Rate Base to water service functional categories. 2. Functionalization Each expense and investment used to develop water system revenue requirement will be assigned to one or more of the following water service functions: Source of Supply; Water Treatment and Transmission; Distribution System; Customer Accounting; or Administrative and General; 3. Plant records are maintained using the National Association of Regulatory Utility Commissioners (NARUC) chart of accounts. 4. Classify Total Water System. When total water system expenses and investments are assigned, the amounts will then be classified into one of the following cost components: Base Capacity; Excess Maximum Day Capacity(Max Day) Excess Maximum Hour Capacity(Max Hour) Customer Billing; or Retail Only. 5. Interclass Allocation. After the total water system costs are functionalized and classified, the costs will then be allocated into customer class, between wholesale and retail. 6. Rate Design. A Volume Charge, consisting of a Raw Water Charge and a Treatment and Delivery Charge will be developed for wholesale customers that are Inside District or Outside District based. In addition to the Volume Charge, the following charges will be developed; Excess Max Day Charge; Excess Max Hour Charge; and Monthly Customer Charge per Meter; Task 5 - Conduct Status Meetings and Presentations Malcolm Pirnie is proposing visits to the City's offices to conduct and participate in a number of meetings. These visits and meetings are to include: B-3 1. Detailed Study Plan Meeting. On May 9th, Project Team personnel will visit the Department's office to deliver a detailed study plan and collect necessary data and information in order to conduct the rate study. 2. Project Overview Meeting. On May 19t�', participate in a project overview meeting with City Staff and the Wholesale Water Advisory Subcorn nittee to discuss the work plan, study methodology, and review key issues relating to the study. 3. Present O&M Interim Report. On June 9th, meet with City Staff and the Wholesale Water Advisory Subcommittee to present an interim report regarding O&M revenue requirements; and at the same time report on the overall progress of the study. 4. Present Capital Cost Interim Report. On June 23rd, meet with City Staff and the Wholesale Water Advisory Subcommittee to present an interim report regarding depreciation expense, rate of return, and the draft rate stricture findings; and at the same time report on the overall progress of the study. 5. Present Draft Wholesale Rates. On July 7th, present the draft study results including the proposed wholesale rates (after final adjustments) to City Staff and the Wholesale Water Advisory Subcommittee. 6. Present Draft Wholesale Rates. On July 21St, present the draft study results including the proposed wholesale rates (after final adjustments) to City Staff and the Wholesale Advisory Committee. 7. Present Final Wholesale Rates. On September 23`d, approximately, meet with City Staff, if required, for presentation of final wholesale rates to City Council for approval. Task 6-Use and Update Existing Rate Model The City's existing rate model will be utilized in performing Tasks 1 - 4 above for the wholesale water rate study, and further will be revised and updated as appropriate. Specific activities to be accomplished in this task include: 1. Review Model Stricture and Revise as Necessary. The City's rate model will be reviewed, revised, and updated as necessary after considering such factors as: a. Conformance with terms and conditions of the urufoml wholesale contract. b. Recognition of appropriate elements of cost (and revenue credits if applicable) in determining revenue requirements to be shared by wholesale customers. c. Identification and assignment of costs to cost functions in sufficient detail to allow for appropriate allocation to functional cost components. d. Appropriate and adequate recognition of plant investment, grants and contributions including impact fees, accumulated depreciation on plant investment, and other elements of rate base used in determining the return element of cost of service. B-4 e. The basis for apportionment of fiinctionalized customer costs to customer classes. E Design of wholesale cost of service rates utilizing the results of previous model calculations. g. After the City has considered recommendations made as a result of efforts in Task 4, the model will be edited/updated as directed by the City to reflect selected additional cost considerations. 2. Update Data. The City's rate model will be updated for a new year of data. 3. Update Model User Instructions. Malcolm Pirnie will update any user instructions in the model and/or for other existing instructional guides to recognize all changes developed as a part of the study. Task 7-Reports/Deliverables The following reports and deliverables are included as a part of the proposed study: 1. Detailed Study Plan. On May 9th prepare and deliver a detailed study plan including a list of schedules to be prepared by the City and/or Consultant and a timeline for project completion. 2. Overview Project Meeting Presentation. Prepare a project overview presentation covering the project scope, schedule, and key issues for the May 19th Wholesale Water Advisory Subcommittee meeting. 3. O&M Interim Report. Prepare an interim report regarding O&M revenue requirements for presentation to the Wholesale Water Advisory Subcon-unittee on June 9th. 4. Capital Cost hlterim Report. Prepare an interim report regarding depreciation expense, rate of return, and the draft rate structure for presentation to the Wholesale Water Advisory Subcommittee on June 23rd. 5. Draft Wholesale Rates. Prepare summary of study results and the draft wholesale rates for presentation to the Wholesale Water Advisory Subcommittee on July 7th. 6. Draft Rate Report. Prepare and submit the draft final report to the Fort Worth Water Department by July 21st. 7. Presentation of Draft Wholesale Water Rates. Prepare summary of study results and the draft rate structure for presentation to the Wholesale Advisory Committee on July 21 sr 8. Final Report. By August 31st deliver the final report and 50-signed copies to the Fort Worth Water Department. The final updated computer rate model will be delivered at the same time. B-5 9. Approval of Wholesale Water Rates. If required, provide support to the Fort Worth Water Department when the Wholesale Water Rates are presented to City Council for approval on approximately September 23'd. B-6 1R[[hiM CERTIFICATE/y�.+��' (fel [.�!■yY�� Ii4fAR( M�YI[. TIFIC/ TE YF INSURANCE SUCH INSURANCE AS RESPECTS THE INTEREST OF THE CERTIFICATE HOLDER NAMED BELOW WILL NOT BE CANCELED OR OTHERWISE TERMINATED WI7 40UT GIVING 10 DAYS PRIOR WRITTEN NOTICE TO THE CERTIFICATE HOLDER, BUT IN NO EVENT SHALL THIS CERTIFICATE BE VALID MORE THAN 30 DAYS FROM THE DATE WRITTEN. THIS CERTIFICATE OF INSURANCE DOES NOT CHANGE THE COVERAGE PROVIDED BY ANY POLICY DESCRIBED BELOW. This certifies that: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY of Bloomington, Illinois Q STATE FARM FIRE AND CASUALTY COMPANY of Bloomington, Illinois STATE FARM COUNTY MUTUAL INSURANCE COMPANY OF TEXAS of Dallas, Texas , or Q STATE FARM INDEMNITY COMPANY of Sloomington, Illinois has coverage in force for the following Named insured as shown below: NAMED INSURED: KAY O RUTCHIN5 ADDRESS OF NAMED INSURED. 701 N SAINT MARYS ST 1111 SAN ANTONIO TX 78205 POLICY NUMBER R4?-2800-A11 53 EFFE=CTIVE DATE OF POLICY 01,/11/05-07/11/05 DESCRIPTION OF 99 BUICK CENTURY VEHIGL (€rroluding VIN) 2G4WSS2M�1X1613637 LIABILITY CpVf=RAGE j�YES Q N4 Q YES ❑ NO Q YES [] NO Q Yl*S ❑ NO LIMITS OF L"ILITY a_ eodi€y Injury I<ach Person 100,000 Eech Accident 300,000 b. Property Damage Each Accident 100,000 C. Sodi€y Injury& Property Damage Single Urnit Each Aocident PHYSICAL DAMAGE COVERAGE$ M YES Q NO [I YES ❑ NO M YES ❑NO Q YES [] NO a. Gom rei7enslu® $200 Deductible $ Deductible $ DedkOble $ Dedwib€e 0 YES ❑ NO ❑YES ❑ NO Q YES Q NO ❑YES 0 NO b. Collision $500 Dedttetlbie $ Dadttc oe $ Daduatible $ Deductible CAR L BILP )YELITY COVERAGE ❑YES 0 NO Q YES Q NO Q YES ❑NO Q YES 0 NO HIRECOOL CAR LIABILITY (J YES p N4 tEl YES Q NO cavf:lzAGE Ll YES 9 No Q YES [� No FLEET-COVERAGE FoR At L awNEa pNa L€cENst n © ❑ NO YES o NO MOTOR VEHICLES [�YES Ci NO Q YES ❑No YES /1 � � GC AGENT 6948 05/27/05 Signature of Authartsed Reptacc+ntative Tiffe Aged's Code Number Date Name and Addrsss of Certificate Holder Name and Address of Agent CITY OF FORT WORTH WATER DEPT BRUCE A SOCHA PO SOS, 870 2929 MOSSROCK 5TZ 115 TORT WORTH TX 76101-0870 SAN ANTONIO TX 78230--5141 I i INTERNAL STATE FARM USE ONLY- ❑Requesi permanent Certlfbaite of Insurance for liability coverage. 122428.2 Rev.06.10.2008 ❑Request Cartlficata Holder to be adde4 a5 an Additional Insured. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/17/2005 DATE: Tuesday, May 17, 2005 LOG NAME: 60RATE STUDY REFERENCE NO.: **C-20740 SUBJECT: Authorize Execution of a Contract with Malcolm Pirnie Inc. to Conduct a Wholesale Water Rate Study RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a contract with Malcolm Pirnie Inc. in the amount not to exceed $79,560 for the purpose of preparing a cost of service study for wholesale water rates. DISCUSSION: The uniform wholesale water contracts presently in effect between Fort Worth and its wholesale customers require annual rate revisions with an extensive cost of service study to be performed by a consultant every three years. By contract, the wholesale customers provide Fort Worth with the names of qualified firms and Fort Worth selects a firm. Through an evaluation process, which included involvement of representatives from the wholesale customers, it was recommended that Malcolm Pirnie Inc. be retained to perform the cost of service study for the FY 2005-06 wholesale water rates. The firm has significant background in rate development and is capable of meeting time schedules established in the wholesale contracts. Principal elements of the proposed study will include: Review and analyze test year data Establish cost of service (revenue requirement) Allocate costs of service to customer classes Design wholesale water rates Conduct periodic status meetings with the Wholesale Water Advisory Committee and City of Fort Worth staff Update rate model and user manual Provide recommendations for changes in methodology if needed Malcolm Pirnie Corporation is in compliance with the City's M/WBE Ordinance by committing to 27% M/WBE participation. The City's goal on this project is 15%. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Water and Sewer Fund. Logname: 60RATE STUDY Page 1 of 2 TO Fund/Account/Centers FROM Fund/Account/Centers PE45 539120 0609010 $79,560.00 Submitted for City Manager's Office by; Marc Ott (8476) Originating Department Head: S. Frank Crumb (Acting) (8207) Additional Information Contact: S. Frank Crumb (Acting) (8207) Logname: 60RATE STUDY Page 2 of 2