HomeMy WebLinkAboutContract 33928 CITY SEC4ETARY
""ON TRACT NO.
SEWER SERVICE BILLING AGREEMENT
This Sewer Service Billing Agreement is entered into by Johnson County Special Utility
District, located in Johnson, Hill, Ellis and Tarrant Counties, Texas (the "District" and the City of
Fort Worth, a home-rule municipality located in Tarrant, Wise and Denton Counties, Texas (the
WHEREAS, Clark Briscoe Company, Ltd., a Texas limited partnership acting through its
general partner, Clark Briscoe Development Company, a Texas corporation ("Owner") is
developing approximately 194 acres of land in the City's extraterritorial jurisdiction in Tarrant
County, Texas, shown on Exhibit A and more particularly described in Exhibit B (the
"Develo ment"), as a portion of a residential subdivision known as"The Bridges";
WHEREAS, a portion of The Bridges subdivision is located within the City of Crowley
and is not subject to this Agreement;
WHEREAS, the Development is located within Certificate of Convenience and Necessity
("CCN") No. 10081 issued to the District by the Texas Commission on Environmental Quality,
pursuant to which the District is authorized to be the retail provider of water to the Development;
WHEREAS,the Development is not located within a wastewater CCN;
WHEREAS, Owner has requested that the City provide sanitary sewer service to the
Development;
WHEREAS, Owner, the City and the District haw entered into that certain Agreement for
Sale of Treated Water (City Secretary Contract No. whereby the City will sell water to
the District for the Development on a wholesale basis and the City has the option to seek to
become the certificated water provider to the Development at some future date;
WHEREAS, it is recognized that the provision by the City of sanitary sewer service to the
residents of the Development is integrally related to the District's provision of water service to the
same customers, such that joint billing and collection practices are in the public interest;
WHEREAS, it is in the public interest for the City and the District to enter into an
agreement for the District to bill and collect charges for the sanitary sewer services that the City
provides in the Development; and
NOW,THEREFORE,the City and the District agree as follows:
1. Agency of the District. The District hereby agrees to serve as the agent for the City
for the purposes of billing and collecting sanitary sewer service charges from customers of the
District who are located in the Development and are recipients of sanitary sewer service from the
City.
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2. Collection of Wastewater Impact Fees. The District will collect wastewater impact
fees and tap fees on behalf of the City for all connections with the Development, in accordance
with a fee schedule to be provided by the City to the District and amended from time to time. The
District will remit such fees to the City on a quarterly basis, together with an accounting of such
fees.
3. Calculation of Sanitary Sewer Charges. The City's retail wastewater rate schedule
for service outside the City is attached as Exhibit C and may be amended from time to time. The
District shall calculate the sanitary sewer fees owed by residents of the Development based on
such rate schedule and this section, with cooperation and assistance by the City as needed. A
residential customer will be billed for sanitary sewer service based on the lesser of fifteen (15)
CCF (equals 11,220 gallons) or actual water usage. One CCF equals 100 cubic feet. In the event of
an inconsistency between this section and the City's retail wastewater rate schedule, the rate
schedule shall prevail.
4. Billing and Collection of Sanitary Sewer Fees. The District agrees to include the
charges due to the City for sanitary sewer service on its monthly bills for water service to
customers within the Development. The charges for sanitary sewer service will be stated
separately on such bills. Payments for the sanitary sewer service billed by the District on the
City's behalf shall be due at the same time and under the same terms as the payments billed by the
District for water service. Upon receipt of payments due the City for sanitary sewer service, the
District will deposit such sums in an account in the District's depository bank, commingled with
payments made for the District's water services. The District will forward funds collected for
sanitary sewer service from customers within the Development, less fees calculated in accordance
with Section 10, to the City no less frequently than once a month, together with an accounting of
the customers from whom payment has been received, including each customer's name, address,
service period, water and wastewater volumes billed, and fees retained by the District.
5. Priority. When payment for water and sanitary sewer services by any customer is
made in less than the full amount owed, the District shall apply the funds first to the indebtedness
of the customer to the District and then to the payment of any indebtedness to the City. The
following example is for the purpose of illustrating how the District's monthly report details sewer
collection proceeds for the City.
The Bridge's Sewer Collection
Previous Balance (carryover from last month) $ 965.00
Current Billing Charges 5,420.00
Subtotal 6,3 85.00
Less Balance(uncollected in current billing) 810.00
Subtotal 5,575.00
Less 10% District Fee Retainer 557.50
Amount Due Ft. Worth $5,017.50
6. Delinquency/Disconnection. The District agrees to use its best efforts to collect
amounts due to the City from customers for sanitary sewer service. If at any time any customer
fails to pay any amounts collectible by the District pursuant to the terms of this Agreement, the
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District is authorized to terminate water utility services to the customer as deemed appropriate by
the District in accordance with the procedure specified in any applicable water tariff and service
regulations of the District then in effect.
7. Disconnection for Ill Customers. Service will not be disconnected to any delinquent
residential customer when it has been established that disconnection of service is likely to cause or
exacerbate serious illness by a resident of the home. The District maintains a policy similar to the
City that prohibits disconnection for the ill and disabled. To avoid disconnection under these
circumstances, the customer has certain requirement including the attending physician must call,
contact or provide a written statement to the District prior to the stated date of disconnection.
Service may be disconnected in accordance with Section 6 if the next month's bill, and the past
due bill, are not paid by the due date of the next month's bill, unless the customer enters into a
deferred payment plan with the District. In the event of an inconsistency between this section and
the District's policy addressing prohibited disconnect for the ill and disabled, the District's policy
shall prevail.
8. Reconnection. In the event water service is disconnected for nonpayment of
sanitary sewer service charges, except as otherwise required by law or as agreed to by the City, the
District agrees not to provide water services to that customer until the District's receipt of payment
of all delinquent sewer collection charges, plus any applicable charges which are then collectible
in accordance with the City's tariff or other applicable law.
9. Effect on Provision of Water. This Agreement shall not affect or in any way impair
the District's rights and obligations with respect to its customers or the provision of water utility
services, except as specifically and expressly set forth in this Agreement,and as allowed by law.
10. Fees. The District shall receive a monthly fee of 10% of the amount of wastewater
fees collected from customers within the Development to be retained as explained in Section 4.
11. Purpose of Agreement; Indemnity. This Agreement is made for the purpose of
facilitating the billing and collection of fees for sanitary sewer services provided by the City.
No partnership or joint venture is intended to be created hereby; nor does the District have any
responsibility relating to the construction, operation, maintenance or repair of the City's sanitary
sewer system or the provision of sanitary sewer service.
12. Effective Date; Termination and Attorney Fees. This Agreement will take effect
on July 18, 2006. Either party to this Agreement may cancel same at any time for any reason
by giving the other party sixty (60) days written notice of cancellation. Such notice may be
given by hand delivery or by certified mail, postage prepaid, return receipt requested, to the
address shown on the signature page of this agreement. If any provision of the Agreement is
determined by any regulatory or judicial body to be invalid, in violation of any law, or
contrary to the rules, regulations, or orders of such body, or if any party to the Agreement is
ordered or required by such body not to comply with any provision of this Agreement, the
Agreement automatically and without notice terminates without penalty at the time such order
becomes final and not subject to further appeal. The prevailing party in any legal proceeding
against the other party related to the Agreement or a breach thereof shall, in addition to its
damages, be entitled to recover its costs and reasonable attorney's fees.
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SEWER SERVICE BILLING AGREEMENT Page 3
13. Notices. Any notice or communication required or permitted to be given
hereunder shall be sufficiently given when received by any other party and must be: (1)
delivered by hand delivery; or (2) mailed by certified mail, postage prepaid, return receipt
requested, to the addresses indicated below, or at such other addresses as may hereafter be
furnished in writing by any party to the other party. Such notice shall be deemed to have been
given as of the date so delivered or mailed.
To the City:
City of Fort Worth
Water Department Customer Service
908 Monroe Street
Fort Worth, Texas 76102
FAX: (817) 392-8238
To the District:
Johnson County Special Utility District
PO Box 509
Attn: General Manager
Cleburne, TX 76033
FAX: (817) 641-691614.
14. Inspection and Audit. The City and the District shall maintain all records related
to this Agreement for a period of five years. Each party shall, on three days' notice, have the
right to examine and inspect such records and accounts during normal business hours; and,
further, if required by any law, rule, or regulation, to make such records and accounts available
to federal and/or state auditors.
EXECUTED ON THE '3 t� DAY OF , 2006.
ATTEST: JOHNSON COUNTY SPECIAL UTILITY
DISTRICT
By: a. 11" /,
Shirley ishop, ffice Manger Teneelley,Vner Manager
ATTEST: CITY O T WORT
By:
Mart�Hendri , City Secretary n Marc A. Ott, Assistant City-Manager
784722 2 contract Authorization
SEWER SERVICE BILLING AGREEMENT (� Page 4
Date _l
APPROVED AS TO FORM
AND LEGALITY:
1�w'�N �- �W�(
Christa Lopez, Assistant City Attorney
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SEWER SERVICE BILLING AGREEMENT Page 5
Exhibit A
Map of the Development
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EXHIBIT A to
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Exhibit B
Legal Description of the Development
Being a 194.044 acre tract in the J. Armendaris Survey, Abstract No. 1767, the U. Mendoza
Survey, Abstract No. 994 and the Pinckney Caldwell Survey, Abstract No. 363, Tarrant County,
Texas and being a westerly portion of that 332.896 acre tract of land described in a deed to Tlh
Realty Investments Ltd. and recorded in Volume 13229, Page 60, Deed Records, Tarrant County,
Texas. Said 194.044 acre tract is more particularly described as follows:
Beginning at a highway monument found at the northwest corner of said 332.896 acre tract, in
the east line of Floyd Hampton Road and at the southwest corner of a 11.015 acre tract described
in a deed to the State of Texas and recorded in Volume 12683, Page 110, said deed records;
Thence easterly with the northerly line of said 332.896 acre tract and the southerly line of said
11.015 acre tract the following calls:
N 45 degrees 35 minutes 31 seconds E, 70.94 feet to a highway monument found;
S 89 degrees 35 minutes 25 seconds E, 355.17 feet to a highway monument found
at the beginning of a compound curve to the left;
1,336.17 feet with the arc of the first part of said compound curve to the left to a
highway monument found. The first part of said compound curve to the left has a
radius of 5,879.58 feet, a central angle of 13 degrees 01 minute 15 seconds and a
long chord which bears N 83 degrees 53 minutes 57 seconds E, 1,333.30 feet;
262.62 feet with the arc of the second part of said compound curve to the left to a
highway monument found. The second part of said compound curve to the left
has a radius of 1,926.86 feet, a central angle of 7 degrees 48 minutes 33 seconds
and a long chord which bears N 73 degrees 29 minutes 03 seconds E, 262.42 feet;
N 78 degrees 15 minutes 13 seconds E, 59.70 feet to a point in the line dividing
the City of Crowley and the Extra Territorial Jurisdiction of the City of Fort
Worth, described in Joint Resolutions and Agreements 1230 and 1827;
Thence S 00 degrees 00 minutes 27 seconds E with the line dividing the City of Crowley and the
Extra Territorial Jurisdiction of the City of Fort Worth, 4,072.16 feet to a point in the southerly
line of said 332.896 acre tract;
Thence with the southerly lines of said 332.896 acre tract the following calls:
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EXHIBIT B to
SEWER SERVICE BILLING AGREEMENT Page 1
N 89 degrees 28 minutes 47 seconds W, 379.37 feet;
S 00 degrees 25 minutes 07 seconds W, 613.53 feet to a broken up concrete
monument;
N 89 degrees 45 minutes 23 seconds W, 586.85 feet to the southeast corner of a
14.999 acre tract described in a deed to Morris Daniel Jr. and Deanna Daniel and
recorded in Volume 13679, Page 306, said deed records;
Thence with the easterly and northerly lines of said 14.999 acre tract the following calls:
N 00 degrees 22 minutes 06 seconds E, 566.53 feet;
N 89 degrees 45 minutes 23 seconds W, 1,059.73 feet;
N 38 degrees 55 minutes 42 seconds W, 108.78 feet to a point at the northwest
corner of said 14.999 acre tract, in the westerly line of said 332.896 acre tract, in
the easterly line of Floyd Hampton Road and at the beginning of a curve to the
left;
Thence with the westerly line of said 332.896 acre tract and the easterly line of Floyd Hampton
Road the following calls:
49.10 feet with the arc of said curve to the left. Said curve has a radius of 109.40
feet, a central angle of 25 degrees 42 minutes 54 seconds and a long chord which
bears N 13 degrees 39 minutes 13 seconds E, 48.69 feet;
N 00 degrees 47 minutes 42 seconds E, 808.30 feet;
N 00 degrees 37 minutes 18 seconds W, 400.00 feet;
N 00 degrees 47 minutes 42 seconds E, 2,493.26 feet to the point of beginning
and containing 194.044 acres.
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EXHIBIT B to
SEWER SERVICE BILLING AGREEMENT Page 2
Exhibit C
FORT WORTH WATER DEPARTMENT
RATES FOR WASTEWATER SERVICE RATES EFFECTIVE
(Outside of Fort Worth—The Bridges Development) JUNE_,2006
RESIDENTIAL
The sewer bill for a customer consists of two charges:
1. MONTHLY SERVICE CHARGE: A monthly service charge of$5.63 shall be charged to all customers.
2. VOLUME CHARGE: Based on volume of wastewater produced at$4.20 per 1,000 gallons for residential
customers living outside of Fort Worth within The Bridges Development.
The monthly volume charges for Residential Class Customers will be used on individual
customer's monthly usage, but in no event shall the volume used to compute this monthly charge
for this customer class exceed eleven thousand two hundred and twenty (11,220) gallons. These
rates shall be equivalent to Fort Worth's normal outside city limit residential wastewater service
rates and have been converted to rates on a per 1,000 gallon basis to accommodate billing by the
Johnson County Special Utility District's billing system.
Gallons Charge
1,000 $ 4.20
2,000 8.40
3,000 12.60
4,000 16.80
5,000 21.00
6,000 25.20
7,000 29.40
8,000 33.60
9,000 37.80
10,000 42.00
11,000 46.20
11.220 47.12
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EXHIBIT C to
SEWER SERVICE BILLING AGREEMENT Page 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/11/2006
DATE: Tuesday, July 11, 2006
LOG NAME: 60BRIDGES REFERENCE NO.: C-21564
SUBJECT:
Authorize Execution of Agreements with Johnson County Special Utility District and Briscoe Clark
Company, Ltd. to Provide Wholesale Water Service and Retail Wastewater Service to the Bridges
Subdivision in the City of Fort Worth's Extraterritorial Jurisdiction (ETJ)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute an agreement for the Sale of Treated Water, Sewer Service
Billing Agreement and Buy-Out Option Agreement with Johnson County Special Utility District (SUD) for
wholesale water service and billing of wastewater service to the Bridges Subdivision; and
2. Authorize the City Manager to execute a Community Facilities Agreement with Briscoe Clark Company,
Ltd. for construction of wastewater infrastructure to serve the Bridges Subdivision.
DISCUSSION:
The Bridges Subdivision contains approximately 198 acres of land located in the City's ETJ just west of the
City of Crowley. Briscoe Clark Company, Ltd. plans to develop the site into approximately 600 residential
lots. This development is adjacent to that portion of the Bridges Subdivision located within the Crowley city
limits. The agreements under consideration will only apply to that portion of the Bridges Subdivision located
in Fort Worth's ETJ.
Johnson County SUD is the authorized retail provider of treated water to The Bridges Subdivision pursuant
to a certificate of convenience and necessity (CCN) issued by the Texas Commission on Environmental
Quality. Briscoe Clark Company, Ltd. initially approached the Fort Worth Water Department (FWWD)
seeking only wastewater service to the Bridges Subdivision. The FWWD felt it would be in the City's best
interest to provide both water and wastewater service to the development. Johnson County SUD and the
Briscoe Clark Company, Ltd. agreed. Four separate agreements were developed to implement the water
and wastewater service plan for the development.
The Agreement for the Sale of Treated Water provides for the sale of treated water to the Johnson County
SUD at the rates charged to the City's municipal wholesale customers. Johnson County SUD will collect
impact fees on behalf of the City and remit to the City on a quarterly basis. It provides for infrastructure to
be designed and constructed to Fort Worth standards, installation of an 8" water meter with telemetry, limits
use of the water to inside of the Bridges Subdivision and terminates if the City elects to purchase the water
system, but no later than July 11, 2022. Johnson County SUD also agrees not to oppose Fort Worth's
application to acquire the CCN after Fort Worth's purchase of the system, so that Fort Worth can become
the retail water provider to the development.
The Sewer Service Billing Agreement provides for the Johnson County SUD to serve as agent for Fort
Worth for the billing and collection of sewer service fees. Bridges customers will pay outside City rates that
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will include a cap and a minimum fee but no winter quarter average. Johnson County SUD will be allowed
to retain 10% of the sewer service fee for billing service compensation. They will also collect sewer impact
and tap fees and rebate them to Fort Worth on a quarterly basis.
The Buy-Out Option Contract provides for a buy-out option period for Fort Worth to purchase the water
system from Johnson County SUD between July 11, 2015 and July11, 2021. The purchase price for the
water system is set at the total amount of all impact fees collected and rebated to the City of Fort Worth plus
interest accrued.
The Community Facilities Agreement will be a standard community facilities agreement with the City of Fort
Worth for the installation of the wastewater system. Briscoe Clark Company, Ltd. will pay for all onsite
improvements and the installation of a customer meter station. Fort Worth will pay for over sizing associated
with the installation of an 18" sewer outfall main.
The staff feels that the negotiated agreements are a good deal for the City of Fort Worth. They provide for
the orderly growth and development for the Bridges Subdivision and future developments in the area within
the City's ETJ. Water and sewer facilities will be built to City standards. The extension of the sewer outfall
main from Crowley through the subdivision will open up areas to the west within Fort Worth's ETJ for
development. They also provide for the future transfer of water facilities and the CCN to the City at the
City's option.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Water Department and the Finance Department will be responsible
for the collection, deposit and recording of revenues under this Agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE45 493042 0601000 $0.00
PE45 493022 0701000 $0.00
Submitted for City Manager's Office by: Marc Ott (6122)
Originating Department Head: S. Frank Crumb (8207)
Additional Information Contact: S. Frank Crumb (8207)
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