HomeMy WebLinkAboutContract 35703 CITY SECRETARY
CONTRACT NO.
CONTRACT FOR WATER SERVICE BETWEEN
THE CITY OF FORT WORTH, TEXAS, AND
THE CITY OF ALEDO, TEXAS
STATE OF TEXAS §
COUNTY OF TARRANT §
This contract and agreement is made and entered into this 20th day of June, 2007,
by and between the City of Fort Worth, a municipal corporation located in Tarrant County,
Texas, acting by and through Marc A. Ott, its duly authorized Assistant City Manager,
hereinafter called "Fort Worth," and City of Aledo, located in Parker County, Texas, acting
by and through Kit Marshall, 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,
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
CITY OFALEDO
WHOLESALE WATER CONTRACT
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:. 1
ORIGINAL
and distribution facilities; 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 water from
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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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1.9 "General Benefit Facilities" are water facilities that provide utility services and benefits
common to all customers that 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 Regional Water District to Fort Worth for raw water to be sold to the Customer plus
eight percent(8%) of said rate, representing Fort Worth 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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 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, now known as the Tarrant
Regional Water District, 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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 meet Fort Worth
standards and shall be approved in writing by Fort Worth. Customer, at its sole cost and
expense shall be responsible for the design and installation of the meter vault and all
metering equipment,including telemetering equipment to the Fort Worth control center, and
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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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.
3.5 As of the date of the execution of this Contract, Customer's one point of
delivery from the Fort Worth System is proposed to be located at FM 1187 and the Aledo
city limits, hereinafter referred to as the "Aledo Meter No. I", as shown on Exhibit A
attached hereto. Customer, at its sole cost and expense, shall be responsible for the design
and construction of the Aledo Meter No. 1. Upon completion of construction, Aledo shall
convey or cause to have conveyed to Fort Worth Aledo Meter No. 1 and the meter vault,
together with rights of ingress and egress for reading, operation, and maintenance purposes.
After such conveyance, Fort Worth shall operate and maintain Aledo Meter No. 1 as a
System Cost. A rate of flow controller shall be installed on the Fort Worth side of the meter
and will be set so a rate of flow does not exceed 2.25 MGD.
4.
Meters
4.1 Fort Worth shall routinely test for accuracy, and service and calibrate if
necessary, the 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; 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.
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WHOLESALE WATER CONTRACT
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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 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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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 that 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 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 that 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.
I
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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, 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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weighted average imbedded cost of outstanding debt plus one and one-half percent
(1-1/2%).
6.1.4 For the Fiscal Year beginning October 1, 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 rate consultant so selected will
utilize the same methodology used in the immediate previous rate study. 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 statement. Such adjustments should allow for year-end trending
and the spreading of non-recurring 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 (WCAC) 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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6.2.1 The charges for the initial period of this contract shall be from the date of its
execution through September 30, 2007, and have been computed as follows:
a. The Treatment, Pumping and Transmission Charge shall be $0.6291
per 1,000 gallons withdrawn by Customer.
b. The raw water charge shall be $0.6471 per 1,000 gallons for
Customers inside the Tarrant Regional Water District, and $0.6892
for Customer's outside the District.
c. The annual charge per MGD of Maximum Day Demand in excess of
Average Daily Use shall be $106,839 per MGD, and Maximum
Hour Demand in excess of the Maximum Day Demand shall be
$21,903 per MGD.
d. 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 Regional Water District 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
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
V.T.C.A., Government Code §1502.057 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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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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 approved by the Fort Worth City Council shall be the rates to be used in this
contract for the succeeding Fiscal Year.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
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7.
Payment for Water
Payment of charges to Fort Worth for wafer 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 Customer withdraws water from the Fort Worth System
shall be regulated by rate-of-flow controllers, pumps, or other approved methods. The
rage of withdrawal shall be controlled so that the maximum rate shall not exceed 1.35
times the Maximum Day Demand experienced during the previous year unless Customer
has notified the Director in writing at least (6) months prior to the date of 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.
CITY OF ALEDO
WHOLESALE WATER CONTRTT
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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,Aledo not being in Tarrant Regional
Water District and water being withdrawn at one metering station, and the Volume
Charge and Rate of Use Charges in effect until September 30, 2007.
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WHOLESALE WATER CONTRACT
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Usage Monthly Rate Service
Ntonth Consumption Volume of Use Charge Total
Oct. 1,000,000 $1,319.30 $1,580.58 $25 $2,923.88
Nov. 1,000,000 $1,318.30 $1,580.58 $25 $2,923.88
Dec. 1,000,000 $1,318.30 $1,580.58 $25 $2,923.88
Jan. 1,000,000 $1,318.30 $1,580.58 $25 $2,923.88
Feb. 1,000,000 $1,318.30 $1,580.58 $25 $2,923.88
March 2,000,000 $2,636.60 $1,580.58 $25 $4,242.18
April 3,000,000 $3,954.90 $1,580.58 $25 $5,560.48
May 3,000,000 $3,954.90 $1,580.58 $25 $5,560.48
June 3,000,000 $3,954.90 $1,580.58 $25 $5,560.48
July 3,000,000 $3,954.90 $1,580.58 $25 $5,560.48
August 4,000,000 $5,273.20 $1,580.58 $25 $6,878.78
Subtotal 23,000,000 $30,320.90 $17,386.38 $275 $47,982.28
Sept. 3,000,000 $3,954.90 $3,383.44 $25 $7,363.34
26,000,000 $34,275.80 $20,769.82 $300 $55,345.62
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 $106,839 = $12,286.48 (Maximum day)
.305 mg X $21,903 = 6,680.42 (Maximum hour)
Total $18,966.90
Monthly Rate of Use Payment(Total Divided by 12)=$1,580.58
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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 15 of 34
Current Year Rate of Use Calculation
Average Daily Use for the year = 71,233 gallons
Maximum Day Demand for the current year = 200,000 gallons
Maximum Hour Demand for the current year = 520,000 gallons
Maximum Day Demand above Average Daily Use = 128,767 gallons
Maximum Hour Demand above Maximum Day Demand = 320,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 2006 2005
Maximum Day Demand
above Average Daily Use 128,767 115,000 130,000
Maximum Hour Demand
above Maximum Day Demand 320,000 305,000 325,000
Three year average of Maximum Day Demand
above Average Daily Use 124,589
Three year average of Maximum Hour Demand
above Maximum Day Demand 316,667
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 2007 Rates
(Based on Current Year Data)
26,000 X $ 1.3183 $34,275.80
.1288 mg X $106,839 $13,760.86
.3200 mg X $21,903 $7,008.96
12 X 1 X $25 $300.00
Total Annual Payment $55,345.62
Previous Billings for
October through August Usage $47,982.28
October Billing for September
Usage $7,363.34
CrrY OF ALEDO
W]-IOLESALE WATER CONTRACT
Pale 16 of 34
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 current year = 71,233 gallons
Maximum Day Demand for the current year = 200,000 gallons
Maximum Hour Demand for the current year = 520,000 gallons
Maximum Day Demand above Average Daily Use = 128,767 gallons
Maximum Hour Demand above Maximum Day Demand = 320,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 2006 2005
Maximum Day Demand
above Average Daily Use 128,767 130,234 130,000
Maximum Hour Demand
above Maximum Day Demand 320,000 323,010 325,000
Three year average of Maximum Day Demand
above Average Daily Use 129,667
Three year average of Maximum Hour Demand
above Maximum Day Demand 322,670
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 2007 Rates
(Based on average of most recent three years)
26,000 X $ 1.3183 $34,275.80
.1297 mg X $106,839 $13,857.02
.3227 mg X $21,903 $7,068.10
12 X 1 X $25 $300.00
Total Annual Payment $55,500.92
Previous Billings for
October through August Usage $47,982.28
October Billing for September
Usage $7,518.64
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 17 of 34
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8.
Effective date of contract
8.1 The effective date of this contract for all purposes will be June 20, 2007.
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.
10.
Rights-of-way
10.1 Customer shall grant, without charge to Fort Worth, such easements and
rights-of-way along public highways or other property located within Customer's
jurisdiction, 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 18 of 34
i
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
I
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.
TCEQ Approval
11.1 The Customer System shall be approved by the Texas Commission on
Environmental Quality ("TCEQ") during the life of this contract. If at any time the
Customer System is not approved by TCEQ, 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 TCEQ.
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 certificated area 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) A 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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 19 of 34
13.
Sanitary Sewer Facilities
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 is 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 Access Fees
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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 20 of 34
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 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 V.T.C.A Texas Local
Government Code Chapter 395, 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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 21 of 34
16.5 The Water System Advisory Committee created pursuant to Section 15
hereof shall select five (5) of its members to a subcommittee to be known as the Customer
Impact Fee Committee (CIFC). Every five years, beginning 2004, Fort Worth will update
the land use assumptions and capital improvements plan upon which the Wholesale System
Access Fees are based. In June 2004 and every five 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,
id2ntifying 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.
16.7 Prior to the adoption of any land use assumptions, capital improvements, or
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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 2:1 of 34
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.
16.10 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 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 23 U34
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. 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 24 of 34
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.
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.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 25 of 34
771 :116TA EIEC
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 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 that may be asserted by anyone on account of the 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 26 of 34
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 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 ALEDO
WHOLESALE WATER CONTRACT
Page 27 of 34
City of Fort Worth: Water Director
City of Fort Worth
1000 Throckmorton Street
Fort Worth, TX 76102.
Customer: Mayor
City of Aledo
200 Old Annetta Road
Aledo, TX 76008
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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 28 of 34
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 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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 29 of 34
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 such employee is in the course and
scope of his employment. Nothing contained herein shall ever be construed so as to require
Fort Worth to assess, levy or collect any tax to fund this indemnification obligation.
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�y 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 (loth) 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's 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 non-domestic accounts within its service area
by number and percentage of accounts consuming directly or indirectly from
CITY OF ALEDO
W14OLESALE WATER CONTRACT
Page 30 of 34
Customer System within its service area;
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.
22.13 It is agreed that, in the event any term or provision herein contained is held
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
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 31 of 34
shall then continue as if such invalid term or provision had not been contained herein.
22.14 Fort Worth must complete certain infrastructure improvements in order to
enable the delivery of water to the Walsh Ranch Development as well as Aledo. These
improvements include a consulting engineering agreement for the design of the Westside IV
Pump Station, Storage Tank, and transmission main; an engineering agreement for the
design of the Walsh Ranch water system including transmission main and storage tank,
construction of the 30" water transmission main; construction of the Walsh Ranch water
transmission main, standpipe, and water storage tank site improvements; and construction
of the Walsh Ranch transmission main extension and 2.5 million gallon storage tank. It is
estimated that the capacity of the system will be approximately 10 MGD, based primarily
on the Westside IV Pump Station capacity. Projections used in the determination of the
cost contribution percentages are based on a report dated November 12, 2002 by Freese &
Nichols titled "Feasibility Study for Fort Worth Wholesale Water Service to Aledo." This
report projects the 2030 water needs for Aledo to be 0.90 MGD under average day
conditions and 2.25 MGD peak day demand.
22.15 Fort Worth shall be responsible for the cost of design and construction of the
Westside IV Pump Station, Westside IV Transmission Main, and the Westside IV Storage
Tank, such facilities hereinafter referred as the"Common Facilities".
22.16 Customer shall participate in the costs of the design and construction of the
Common Facilities, which shall be based upon the capacity thereof. The total estimated
cost of the Common Facilities is $13,477,477 as of August 28, 2006, and the capacity is
10 MGD. Customer agrees that upon full build-out demand, Customer will require 2.25
MGD in the year 2030, which represents 22.5% (2.25 MGD/10 MGD) of the capacity of
the Common Facilities and is equal to $3,032,432 (see Exhibit B). Upon completion of
all Common Facilities, Fort Worth will recalculate Customer's share of the cost based
upon the actual costs incurred by Fort Worth, who will notify Customer of its final share
of the cost. Simple interest at the rate of 6% per annum shall begin to accrue as of the
date of notification. Customer's payment shall be due monthly in equal installments with
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 32 of 34
Last payment due prior to December 31, 2010. The first payment being due 30 days after
the notification of Customer's final cost. No penalty for early payment or prepayment
shall ever be assessed. The monthly payment will be billed regardless of when Customer
obtains treated water from Fort Worth. This cost does not include the costs for Aledo will
incur to design and construct the extension of a water main from Aledo to the proposed 2.5
n.Iillion gallon ground storage tank, or the costs to design and construct the metering station.
If Fort Worth terminates this agreement or refuses to enter into a new agreement with
Customer after the termination of this agreement, Fort Worth shall pay Customer the
depreciated value of the Common Facilities.
22.17 Customer, at its sole cost and expense, shall be responsible for the design of a
pipeline from the Fort Worth Westside IV Ground Storage Tank to the proposed Customer
meter site, such design meeting Fort Worth standards. Fort Worth and Customer agree that
Customer requires a 12" main for its service needs. Fort Worth has the option to request
that the water main be oversized to 16"to meet potential Fort Worth needs. If Fort Worth
shall decide to upsize the 12"main to 16"main,then Fort Worth shall be responsible for the
incremental cost difference of the pipe and appurtenances from 12" to 16". Upon
completion of construction, the water main from the Westside IV tank to the Aledo's
metering station and appurtenances shall be transferred to Fort Worth for operation and
maintenance purposes,which shall be a System Cost.
22.18 Customer agrees to begin taking treated water from the Common Facilities
within 90 days following the notification required in section 22.16 hereof. If no water is
taken, Customer shall pay Fort Worth in accordance with section 7.3 hereof.
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 33 of 34
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.
ATTEST: CITY OF FO WORTH
f"""YA AA;ke�— r
By:
City Secretary Wc A. Ott
Assistant City Manager
Appr Recommen ed: �= P-15LOG.-I
�(( J' "'"��v Contr ct A thorizatioa
S. Frank Crumb,P. E. Director
-0'5.x)
Fort Worth Water Department Date
APPROVED AS TO FORM
AND LEGALITY:
ckw-
K . 4"�
Assistant City Attorney
ATTEST: CITY OF AL ED`O
City Secretary Kit Marshall,Mayor
APPROVED AS TO FO
kTA LEGALITY- By.
C' wA t pj t s' Q 0-,
City Attorney
CITY OF ALEDO
WHOLESALE WATER CONTRACT
Page 34 of 34
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. .+•� I-r••r � /1 ' m fit. � D NfY r if�� 'V ``.\t Y'(�,��
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EXHIBIT A
FACILITIES PLANNING AREA &
/ I I USGS TOPOGRAPHIC MAP
GARY BURTON ENGINEERING, INC.
�l7`'�;y}i'�,��_ f ,. r• r1r \ ✓{+ �,;h`, 'i). 1'/f/! r. ,. CONSULTING-PLANNING-PERWHING-DE'CN-EIANACEMENI i�
}%'i. dnyL.\* ,-t -jr. r` r'.k f .�' r -+,• \ 1 14531 HWY.155 S
— 1tEER,TEXAS 75703
Exhibit"B"
Fart Worth Water Department
City of A.ledo
August 28,2006
August 28,2006 11/17/2005
Update Letter Delta
Malcolm Pirnie Engineering Agreement for
design of PS,Elevated Tank&transmission
train(includes 2 amendments) $ 493,450.00 $ 493,450.00 $ -
Construction of Westside IV PS(TNG Services) 1,789,000.00 1,799,000.00 -
Dunaway Associates Engineering Agreement for
design of Walsh Ranch water system,'including
transmission.train&storage tank(including 4
contract amendments) 1,364,717.45 965,406.95 399,310.50
Construction of 30" Water Main Extension Phase
1,Unit 1,2,and 3 including 3 contract
amendments(S.J.Louis Construction) 7,616,404.92 7,511,033,95 105,370.97
Construction of Walsh Ranch.Phase rV-
standpipe and water storage tank improvements
(excludes cost of 63,000 gallon standpipe) 822,325.00 822,325.00 -
Construction of Walsh Ranch Phase V-2.5 MG
ground storage tank(City of FW M&C Pending
based on bids received) 1,391,580.00 1,250,000.00 141,580.00
$ 13,477,477.37 $ 12,831,215,90 $ 646,261.47
AIedo"Buy-In"at 22.50% S 3,032,432..41 $ 2,887,023.58 $ 145,408.83
City of Fort Worth, Texas
Wj3nyor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
4/29/03 **C-19562 I 60ALED0 1 of 1
SUBJECT WHOLESALE WATER CONTRACT BETWEEN THE CITY OF FORT WORTH AND
THE CITY OF ALEDO
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a uniform wholesale
water contract for water service between Fort Worth and Aledo.
DISCUSSION:
The City of Aledo has requested water service from Fort Worth. City staff has also been in negotiations
with representatives of Walsh Ranch for an economic development agreement. The City Council was
briefed regarding those negotiations at its pre-council meeting of April 15, 2003.
Water facilities to provide service to Walsh Ranch may also be utilized to provide water to the City of
Aledo. Aledo has met with Water Department staff to discuss its capacity needs and participation in the
cost of the Walsh Ranch Phase I water facilities. Aledo's share of the water system improvements is
estimated to be four million dollars.
The proposed water main construction and service to Aledo is included in Fort Worth's Water Master
Plan and the Tarrant Regional Water District planning area.
This contract is subject to the approval and execution of the economic development with Walsh Ranch.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Water Department Customer Service Division is responsible for
the billing and collection of revenues under this agreement.
MO:k
Submitted for City Manager's FUND I ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Marc Ott 8476
Originating Department Head:
Maebell Brown(Acting) 8207 (from) APPROVED 04/29/03
Additional.Information Contact:
Maebell Brawn(Acting) 8207