HomeMy WebLinkAboutContract 39741CITY SECRETARY
CONTRACT NO,
AN AGREEMENT FOR RECLAIMED WATER SERVICE BETWEEN
THE CITY OF FORT WORTH AND
THE CITY OF ARLINGTON
STATE OF TEXAS
COUNTIES OF TARRANT, DENTON AND WISE §
This Agreement is made and entered into this 5th day of May, 2009, by and
between the City of Fort Worth, a municipal corporation located in Tarrant County, Texas,
acting by and through �i9w�,o�Cea,, its duly authorized Assistant City Manager,
hereinafter called "Fort Worth," and the City of Arlington, located in Tarrant County,
Texas, acting by and through Fiona M. Allen, P.E., its duly authorized Deputy City
Manager, hereinafter called "Customer."
WHEREAS, use of reclaimed water is a recommended water management
strategy for the City of Fort Worth in the 2006 Region C Water Plan; and,
WHEREAS, use of reclaimed water has been identified as a Best Management
Practice for water conservation by the Water Conservation Implementation Task Force
established by the 78th Texas Legislature under Senate Bill 1094; and,
WHEREAS, development of a reclaimed water program for the City of Fort Worth
will provide for efficient use of Fort Worth's and the region's water resources; and,
WHEREAS, it is in Fort Worth's and the region's best interest, when economically
justified, to provide reclaimed water to other entities in the region in order to conserve
valuable water supplies for the region; and,
WHEREAS, Fort Worth and the Customer recognize that the use of reclaimed
water for nonpotable uses allowed by the State of Texas is a practical and efficient
method of relieving the demand on potable water supplies; and, OFFICIAL RECORD
WHEREAS, Fort Worth is authorized to provide reclaimed wate l tt §§QfMARY
FT. WORTH, TX
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under Authorization for Reclaimed Water No. R10494-013; and,
WHEREAS, Fort Worth owns, operates and maintains facilities for processing and
distributing reclaimed water, and at the present time may furnish and deliver reclaimed
waterI both wn and without the corporate boundaries of Fort Worth as allowed by its
TCEQ Authorization; and,
WHEREAS, Customer now wishes to establish, own and operate at its own cost
and expense a reclaimed water distribution system; and furnish reclaimed water service
to the customers within its own boundaries, and,
WHEREAS, it is deemed to be in the best interest of both parties to enter into an
agreement to allow the Customer to obtain from Fort Worth a supply of reclaimed water
at a rate and in accordance with the terms contained herein; and,
WHEREAS, Customer desires to purchase reclaimed water and Fort Worth
desires to sell reclaimed 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:
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Table of Contents
1. Definitions......................................................................................................3
2. Reclaimed Water Delivery............................................................................. 5
3. Meters; Responsibilities ............ ....................................................................a 9
4. Point -of -Delivery, Meter, Testing................................................................. 11
5. Meter Reading............................................................................................. 12
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6. Billing........................................................................................................... 13
7. Rates and Charges...................................................................................... 14
8. Effective Dates Term.. MOKPO 0 0 a *a 0 N v a 0 v 2 a a as a v 0 a a a a a 0 a 0 5 a 0 a 0 a a 0 a a a a a a a a v a 0 a v *a v a a R a a a 0 0 2 1
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9. Easements and Rights-of-Way.................................................................... 22
M=MMM10. Reclaimed Water Use Requirements.......................................................... 23
11. Resale of Reclaimed Water........... MOE OZONE sea had mawwolmamm 0 us 24
12. Adequate Supply......................................................................................... 24
13. Reclaimed Water System Advisory Committee ........................................... 25
14. Termination..................................................................................................25
15. Ownership of the System............................................................................ 27
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16. Third Party Beneficiaries..... A A 0 0 2 0 a 0 0 x 0 0 a a a 0 a 0 a 0 v 0 a 0 a a a 0 v 0 a a v a a a 9 a a a 0 a plamsm a v a 6 v 2 a a 0 a 0 v a 0 v 0 0 a 0 a a a a a 0 27
17. Liability.........................................................................................................27
18. Force Majeure............................................................................................. 28
19. Notices............ 9 0 9 v a a a a a a a 9 0 OR go a 9 0 so* New go me a a a 0 a 5 a a a 0 a 8 a 5 a a a a 0 2 a a a a a a 0 a a 0 0 a 9 5 a 5 0 a a 0 0 a a v a a a 0 a 8 a v 5 a 0 R a 0 a v a 0 v 29
20. Inspection and Audit.................................................................................... 29
21. Request for Service by Fort Worth.............................................................. 30
22. Arbitration.................................................................................................... 30
23. Licenses, Permits and Fees........................................................................ 32
24. Miscellaneous.. hem mass stoutness samassame seems moamas&m masmsessm sea a a offices notes@ Base Detests 32
1. Definitions
1.1 "Annual Amount" is defined in § 2.5 and is comprised of the Customer's total
annual Reclaimed Water use estimate, as adjusted.
1.2 "Applicable Law" is any statute, law, constitution, charter, ordinance
(including the Fort Worth city code and ordinances, rules and regulations), resolution,
judgment, order, decree, rule, regulation, directive, interpretation, standard or similarly
binding authority, which in any case, is enacted, adopted, promulgated, issued or
enforced that relates to or affects Fort Worth, the Customer, or a party's performance of
its obligations under this Agreement.
1.3 "Customer system" is the Customer's entire Reclaimed Water transmission
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and distribution system on the Customer's side of the point of delivery.
1.4 "Director" is the Director of the Fort Worth Water Department or the
Director's authorized designee.
1.5 scal Year" (oris Fort Worth's fiscal year, which is October 1 through
September 30. For example, "FY 2011" is October 1, 2010 thru September 30, 2011.
1.6 "Maximum Rate" is the volume equivalent of the City of Fort Worth wholesale
treated water contract rate, as defined in § 7.4.1. The Maximum Rate calculation includes
Fort Worth's cost of raw water.
1.7 "MGD" is million gallons per day.
1.8 "Minimum Monthly Use" is an amount of Reclaimed Water equal to 50% of
the Annual Amount divided by 12 months.
1.9 "Peak Usage" is the Customer's maximum rate of flow of Reclaimed Water,
in any one Fiscal Year, measured in gallons per minute at the point -of -delivery meter.
1.10 "Reclaimed Water" is highly treated effluent from Fort Worth's wastewater
treatment plant(s), supplied through the System.
1.11 "Service Area" means the "City of Fort Worth Reclaimed Water Service Area"
identified in the TCEQ Reclaimed Water Authorization No. R10491-013, as amended from
time to time. Exhibit A describes the Service Area as of the effective date of this
Agreement, but an amendment of the TCEQ Authorization that expands the Service Area
shall become effective upon issuance by TCEQ, without the need to amend this
Agreement.
1.12 "Subsidy" means the amount, in dollars, equal to the revenue shortfall in
Fiscal Years when the Rates charged pursuant to this Agreement are less than rates
necessary to recover the cost -of -service revenue requirement for the System, as
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determined by the article 7 cost -of -service rate study. "Cumulative Subsidy" means the
total, un-recouped amount of all Subsidies paid by Fort Worth over the life of the
Agreement.
1.13 "System" is the entire Fort Worth Reclaimed Water transmission and
distribution system(s), which extends from its connection to Fort Worth's wastewater
treatment plants) to each customer's point of delivery, and includes all equipment and
related facilities owned or used by Fort Worth to pump, transport, measure, control, store,
distribute, deliver or otherwise manage Reclaimed Water within the Service Area.
1.14 "System Cost" means a cost associated with the System that is to be
included in the System -wide cost of service (as provided in Section 7.2).
1.15 "Users" means any user that Fort Worth permits as a distributor or a bulk
user of the Reclaimed Water.
1.16 "Volume Rate" is the wholesale rate per 1,000 gallons of Reclaimed Water to
be set annually pursuant to this Agreement.
in function.
2.1
"TCEQ" is the Texas Commission on Environmental Quality or its successor
2. Reclaimed Water Delivery
Fort Worth Reclaimed Water Delivery.
2.1.1 Fort Worth shall furnish and sell to Customer, pursuant to the terms
and conditions of this Agreement, Reclaimed Water that meets the
requirements for Type I reclaimed water uses, as set forth in Chapter
210 of Title 30 of the Texas Administrative Code and the TCEQ
Reclaimed Water Authorization No. R10494-013.
Fort Worth is responsible for treatment and transportation of the
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Reclaimed Water, in compliance with Applicable Law, up to the
Customer's point of delivery, and the Customer shall have no liability
related to or arising out of the Reclaimed Water up to the Customer's
point of delivery.
2.2 Customer Reclaimed Water Purchase.
2.2.1 Customer shall purchase and pay Fort Worth for Reclaimed Water,
pursuant to the terms and conditions of this Agreement.
2.2.2 Customer is responsible for the transportation and use of the
Reclaimed Water, in compliance with Applicable Law, at and after the
point of delivery, and Fort Worth shall have no liability related to or
arising out of Reclaimed Water that complies with the requirements of
§ 2.1 at the Customer's point of delivery.
2.2.3 Customer shall supply, install and maintain, at Customer's sole cost
and expense, all equipment to obtain Customer's desired Reclaimed
Water pressure if the pressure provided by Fort Worth is not adequate
for Customer's purposes. Fort Worth does not guarantee a minimum
pressure for the delivery of Reclaimed Water.
2.3 Point of Delivery. The Customer's point of delivery will be the meter vault
connection to Customer's side of the meter, installed at a mutually agreed location on the
System. The parties will designate the agreed location for the meter (including a map or
diagram of the location) in writing, signed by both parties, and that signed designation will
become part of this Agreement. The parties may agree to designate one or more
additional Customer points of delivery from time to time, following the requirements of this
§ 2.3.
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2.4 Customer's Estimated Reclaimed Water Use,
2.4.1 On or before the date of Customer's execution of this Agreement, and
thereafter on or before March 31 of each year, Customer will provide
to Fort Worth its best good -faith estimate of:
aA the Customer's Reclaimed Water use month -by -month for each
month;
b. the Customer's total annual Reclaimed Water use; and
c. the Customer's Peak Usage, consisting of the maximum rate of
flow of Reclaimed Water measured in gallons per minute at the
point -of -delivery meter (and must be provided for each point -of -
delivery meter)
for the Fiscal Year that begins the following October 1, in writing, in
the form of Exhibit 6.
2.4.2 If the Customer has more than one point of delivery, its annual
estimates will included separate estimates of annual usage and Peak
Usage use for each of its points of delivery.
2.5 Customer's Annual Amount. The (ustomer's Annual Amount (used to
calculate monthly charges under § 7.5) shall be equal to the Customer's §
2.4 annual estimated Reclaimed Water use, unless adjusted as described
below. The parties agree that the adjustments below are just and
reasonable, in part because they provide greater stability in System
revenues and, therefore, in the supply of Reclaimed Water. Disputes over
these adjustments to the Annual Amount shall be resolved by arbitration.
2.5.1 If Customer fails to withdraw at least 50% of 1/12th of the Annual
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Amount each month for any twelve (12) consecutive months, for any
reason other than rainfall or disruption of service by Fort Worth, then
the Director may reduce the Annual Amount to an amount
approximating the Customer's actual historical usage over the
previous twelve (12) months. Months in which the Reclaimed Water
is reduced by Fort Worth, through no fault of Customer, shall not be
included in determining whether Customer has withdrawn at least
50% of 1/12th of the Annual Amount within the consecutive 12-month
period.
2.5.2 The parties may agree to any adjustments, in writing, signed by the
Customer and the Director. The Director may, in their discretion,
increase the Annual Amount at the Customer's request, subject to
available capacity and other factors related to the provisions of
2.5.3 The Director may unilaterally increase the Annual Amount to reflect
actual historical use if the Customer exceeded the total annual
Reclaimed Water use by an average of 30 % or more in the three
prior Fiscal Years, and the Customer will be responsible for all
increase -related costs pursuant to § 3.1.3 and § 3.3.
2.5.4 If Customer ceases taking Reclaimed Water from the System for two
or more consecutive years, then the Director may adjust the Annual
Amount to an amount equal to the average of the Customer's highest
and lowest annual usage. The Director has the discretion to keep that
Annual Amount in effect for the term of this Agreement, or until the
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Customer withdraws at least that Annual Amount for two or more
consecutive years, whichever is sooner. Annual withdrawals of less
than 10% of Customer's highest historical Annual Amount will be
deemed to be cessation of use for purposes of this adjustment.
Alternatively, the Director may allow the Annual Amount to be
reduced to actual withdrawals, and all subsequent requests to
increase the Annual Amount will be subject to available capacity.
2.6 Fort Worth may limit the maximum flow rate of the Customer's meter to the
estimated peak flow rate, through the installation and use of a flow control device, such as,
but not limited to, an orifice plate.
2.7 Service Interruptions. Equipment failures, plant upsets, water line breaks
and other similar events may cause disruptions to Fort Worth's Reclaimed Water Service.
In such events, Fort Worth will use all reasonable efforts to restore service as soon as
possible and limit the duration of any such disruptions. However, Fort Worth shall have no
liability arising out of or related to interruptions in Customer's Reclaimed Water service
causeA by such events.
2.8 If Fort Worth determines that the Reclaimed Water System is not compliant
or is near noncompliance with its TCEQ Reclaimed Water authorization or other Applicable
Law, then Fort Worth may cease the delivery of Reclaimed Water to Customer to allow for
such measures as determined necessary by Fort Worth to remain compliant with its TCEQ
permit and Applicable Law. Fort Worth shall have no liability arising out of or related to
interruptions in Customer's Reclaimed Water service caused by such events.
3. Meters; Responsibilities
3.1 All Reclaimed Water furnished under this Agreement by Fort Worth shall be
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measured by one or more meters as approved by Fort Worth and shall be equipped with
continuous flow and chart -recording devices. All meters, recording devices, and
appurtenances shall be approved and installed by Fort Worth at the Customer's point of
delivery.
3.1.1 Customer shall be solely responsible for all costs associated with the
meter, to include the meter vault, recording devices, equipment and
appurtenances, and installation costs.
3.1.2 Fort Worth shall be responsible for the costs associated with the
operation and maintenance of the meter, to include the meter vault,
recording devices, equipment and appurtenances, and necessary
replacement, as determined by Fort Worth, caused by malfunction or
ordinary wear and tear. Replacement costs shall be a System Cost.
3.1.3 If the Customer's meter or metering equipment is upgraded or
replaced to increase flows to the Customer as provided in this
Agreement, then the Customer is responsible for the cost incurred
anA associated with the upgrade and/or additional capacity that is
over and above the cost of replacement as reasonably determined by
Fort Worth.
3.2 The Customer's point of delivery is the meter vault connection to Customer's
side of the meter installed at the locations identified as required by § 2.4. All mains and
distribution facilities on the Customer's side the point of delivery are the sole responsibility
of the Customer. No meter shall be moved or relocated except as agreed, in writing,
signed by both parties made a part of this agreement by Amendment.
3.3 If Fort Worth determines through historical review that the Customer's
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meters) is not sufficiently sized for the amount of Reclaimed Water that Customer takes,
then Customer shall be responsible for the cost and expense of upgrading such meter to
the appropriate size as reasonably determined by Fort Worth.
3.4 In the event of an unforeseeable mechanical failure, or an unusual high rate
of Reclaimed Water usage, or a Reclaimed Water main break of Customer, Customer shall
notify Fort Worth within twenty-four (24) hours of the occurrence of the emergency
condition and follow all procedures required by Applicable Law and as requested by Fort
Worth. Notwithstanding these conditions, the Volume Charge for all Reclaimed Water
delivered to the Customer shall be due and payable.
4. Point -of -Delivery, Meter, Testing
4.1 Fort Worth shall have the right to test for accuracy, service and calibration of
the meter at each Customer point of delivery as Fort Worth reasonably determines is
necessary. The meters shall be tested at least once each twelve (12) month period. Fort
Worth shall provide copies of the results of such test and all related information to
Customer in a timely manner.
4.2 Customer shall have access to the metering facilities for its point of delivery
at all reasonable times; provided, however, that any reading, calibration or adjustment to
such metering equipment must be done i) by employees or agents of Fort Worth, or other
mutually approved third party calibration agent; and ii) in the presence of representatives of
Customer and Fort Worth. Notification of any testing 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.
4.3 If any calibration indicates that the accuracy envelope of the meter is found
to be lower than ninety-five percent (95%) or higher than one hundred five percent (105%),
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expressed as a percentage of the full scale of the meter, the registration of the flow as
determined by the meter shall be corrected for a period extending back to the time such
inaccuracy began, if that time is ascertainable; or, if that 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.
4.4 If any meter used to determine the flow of Reclaimed Water to Customer is
out of service or out of repair, so that the amount of Reclaimed Water metered cannot be
ascertained or computed from the meter reading, then the Reclaimed Water delivered
during the period that the meter is out of service or out of repair shall be estimated based
on reasonable factors, such as extrapolation of past patterns of flow for the meter under
similar conditions. Fort Worth may, in its own discretion, consider the volume of Reclaimed
Water delivered to the Customer's retail users to determine Customer's flow. If the parties
cannot agree on the extrapolated estimate of Reclaimed Water volumes delivered, then the
flow volume will be determined by arbitration.
4.5 Each party has the duty to notify the other immediately upon its own
knowledge that a Reclaimed Water meter is not functioning properly. Fort Worth shall
repair such meter as promptly as is reasonably practicable after learning of the meter's
malfunction.
5. Meter Reading
5.1 Fort Worth will read each of the Customer's point -of -delivery meters at
monthly intervals. Fort Worth will keep records of all meter readings. Customer shall have
access to those records during reasonable business hours. Monthly readings for each
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point of delivery meter will be included with Customer's monthly bill for Reclaimed Water
service.
5.2 If Customer has more than one point of delivery from the System, then the
sum of all meter readings shall be used to calculate the Customer's monthly Volume
Charge.
5.3 A review of Reclaimed Water usage amounts by Customer for the past
twelve (12) months shall be made during the presentation of the October bill each year.
6. Billing
6.1 Fort Worth will send bills for Reclaimed Water service to Customer each
month. All bills shall be due and payable by Customer 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 unpaid amount from... all prior billings up to 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.
6.2 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, the dispute will be resolved by arbitration. Dispute of a bill shall
not be grounds for non-payment. For all past due charges, Customer shall pay Fort Worth
an interest charge of ten percent (10%) per annum, calculated from the date that the
payment was required to be made. If a billing adjustment is agreed upon by the parties or
established by arbitration, then the amount of any over -payment to Fort Worth will be
credited to Customer's account together with an interest charge of ten percent (10%) per
annum calculated from the date the over -payment was received.
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data:
6so If requested by the Director, Customer shall provide quarterly the following
a. Actual number of individual users (by user account) using
Reclaimed Water from the Customer system within its service
area;
b. Actual monthly usage volumes of individual users (by user
account) from the Customer system within its service area;
c. Copies of service agreements or contracts between the Customer
and individual users within its service area.
Customer may require that Fort Worth pay the reasonable costs of providing the
requested data.
7. Rates and Charges
7.1 Rate. The rate per thousand gallons of Reclaimed Water ("Rate") is a
wholesale rate, charged pursuant to this Agreement. The Rate is set annually pursuant to
this Agreement, based on the System -wide cost -of -service rate study as provided in § 7.2,
except when the terms of this Agreement require (i) fixed rates under § 7.3, which are
either the Initial Rates or rates based on the Annual 50L Adjustment or (ii) the Maximum
Rate under § 7.4. Fort Worth will maintain the records and documents related to the
annual rate studies and annual adjustment of the Rates, and these records shall be
available for Customer inspection at the Fort Worth Water Department during reasonable
business hours and upon prior request by Customer.
7.2
Cost -of Service Rate Methodology
7.2.1 System -Wide Cost of Service. The cost -of -service rate will be
determined based upon aSystem-wide cost -of -service rate study
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performed by an independent utility rate consultant as provided in
§ 7.2.3. The Director shall select the independent utty rate
consultant from a list of qualified firms submitted to the Director by the
Reclaimed Water System Advisory Committee. The cost of any rate
study under this Agreement is a System Cost. All rate studies shall
use the cash basis of determining revenue requirements applicable to
the wholesale customer class of Reclaimed Water purchasers. To
determine the System -wide cost of service, the independent utility
rate consultant shall include relevant factors, including: total volume,
rate of flow, metering, utility costs, cost of supplies, customer -related
costs (such as accounting, billing, and monitoring), system losses,
debt service expenses, franchise fees, Reserve Fund levels, and
historical and projected use.
7.2.2 Rates to be Sufficient.
The Rates shall be sufficient to promote
confidence in the financial stability of the System; to maintain and
support Fort Worth's credit; to enable Fort Worth to raise the money
necessary to pay the costs associated with the System of reasonable
and necessary operation and maintenance expenses, debt service
payments, and capital expenditures that are not debt financed or
contributed; and to maintain a reserve equal to twenty (20) percent of
the operation, maintenance and debt service expenses associated
with the System (the "Reserve Fund") in accordance with City of Fort
Worth Financial Management Policies, as adopted and amended from
time to time by the Fort Worth City Council.
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7.2.3 Annual Rate Studies, For FY 2012, and every three (3) years
thereafter, the Rate will be established by a detailed wholesale
System -wide Reclaimed Water cost -of -service rate study performed
by an independent utility rate consultant selected by the Director as
provided in § 7.2.1. After the first rate study, the rate consultant will
use the same methodology that was used in the immediately previous
rate study. In the interim Fiscal Years between detailed rate studies,
Fort Worth will adjust the Rate annually, using the same methodology
as the last detailed rate study, using: the actual operating expenditure
for the twelve (12) month period ending September 30th of the prior
year, adjusted for all known and measurable changes in cost data
since the last adopted System budget; historical usage; the
Reclaimed Water use estimated by the Customer under § 2.4, and
the Reserve Fund. Annual rate studies are necessary and shall be
performed each year, regardless of whether the Rate charged is
determined by the rate study, or by § 7.3 (a fixed rate) or § 7.4 (a
Maximum Rate).
7.3 Fixed Rates and Subsidy by Fort Worth during the Initial Years of Operation
Fort Worth and Customer acknowledge that, during the initial years of
System operation, a rate based purely on cost -of -service may not be competitive in the
Customer's Reclaimed Water market. To provide more marketable rates during these
initial years, Fort Worth agrees to the fixed rates and fixed rate increases in §§ 7.3.1 and
7.3.2. Fort Worth further agrees that, if those Rates do not produce sufficient revenue to
meet the System revenue requirements in any one Fiscal Year, Fort Worth will pay an
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annual Subsidy equal to the shortfall
calculated as of September 30 each year.
The annual payment of the Subsidy will be
7.3.1 Fixed Rates before FY 2015. Rates for the initial 5 years of this
Agreement are fixed as follows:
Fiscal Year 2010 $1.45 per 1,000 gallons.
Fiscal Year 2011 $1.45 per 1,000 gallons.
Fiscal Year 2012 $1.50 per 1,000 gallons.
Fiscal Year 2013 $1.50 per 1,000 gallons.
Fiscal Year 2014 $1.50 per 1,000 gallons.
These § 7.3.1 Rates will remain in effect until Fort Worth recoups the
Cumulative Subsidy, or through the Fiscal Year beginning October 1,
2014, whichever occurs first.
7.3.2 Annual 5 Percent Increase. If Fort Worth does not fully recoup the
Cumulative Subsidy before the end of the 2014 Fiscal Year, then the
Rate for Fiscal Year 2015, and each Fiscal Year thereafter until Fort
Worth fully recoups the Cumulative Subsidy, will be calculated by
multiplying the prior FY Rate times 1.05, resulting in a fixed annual
5% increase in the Rate.
7.3.3 Source of Recoupment. Fort Worth is entitled to recoup the entire
amount of the Cumulative Subsidy, without interest, out of revenue
produced by the Rates. Each Fiscal Year that System revenue
exceeds the annual cost -of -service revenue requirement, the excess
revenue shall be transferred to Fort Worth until Fort Worth has
recovered the Cumulative Subsidy. At the end of the Fiscal Year in
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which Fort Worth first fully recoups the Cumulative Subsidy, any
revenue received in excess of the Cumulative Subsidy will become
the initial Reserve Fund balance.
7.4 Maximum Rate Protection.
7.4.1 In any Fiscal Year, if the Rate exceeds the Maximum Rate, then the
Rate will be adjusted to equal the Maximum Rate. However, if the
Maximum Rate is less than the Rate in effect for the Fiscal Year just
ended, the Rate will not be lowered based on the Maximum Rate, but
will simply remain unchanged for that new FY. The Maximum Rate is
the equivalent of the volume rate portion of the City of Fort Worth
wholesale treated water contract rate (which currently is not a volume -
only rate), as that rate may be adjusted from time to time, as
reasonably determined by Fort Worth for each year that the Maximum
Rate is in effect. Exhibit C is the current example of this calculation.
The City currently charges a wholesale treated water rate pursuant to
contracts with over 25 wholesale customers (primarily cities); if the
City enters into new contracts after the existing contracts expire, then
the calculation of the Maximum Rate will be adjusted as necessary to
carry out the intent of the parties to this Agreement that the Maximum
Rate approximate the City's wholesale treated water contract rate.
The Maximum Rate shall include Fort Worth's cost of raw water.
7.4.2 If the resulting § 7.4.1 Rate does not produce sufficient revenue to
meet the System revenue requirements in any Fiscal Year, Fort
Worth agrees to resume paying an annual Subsidy equal to the
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shortfall. To allow Fort Worth to recoup that Subsidy, Customer
agrees that the § 7.3.2 ("Annual 5 Percent Increase") will be in effect
the following Fiscal Year, and thereafter in any year when the
resulting Rate does not trigger the Maximum Rate, until Fort Worth
fully recoups any Cumulative Subsidy that accumulates from time to
time.
7.5 Charges. Charges for Reclaimed Water commence on the day when Fort
Worth first makes Reclaimed Water service available at the Customer's point of delivery,
7.5.1 Volume Charge. Customer shall pay Fort Worth a Volume Charge for
all Reclaimed Water withdrawn from the System at the Customer's
point of delivery. The Volume Charge is calculated monthly as:
a. the amount of Reclaimed Water withdrawn from the system at
the Customer point of delivery during the monthly billing period
(in gallons x 1000) times,
b. the Rate in effect for that monthly billing period.
7.5.2 Minimum Charge. If the Reclaimed Water withdrawn from the System
at the Customer's point of delivery for any one monthly billing period is
less than half of the (ustomer's Annual Amount, divided by twelve
(12), then the Customer shall pay a Minimum Monthly Charge instead
of the IS 7.5.1 Volume Charge.
calculated as:
The Minimum Monthly Charge is
a. fifty percent (50%) of the Customer's Annual Amount (in
gallons x 1000) divided by twelve (12) months, multiplied by
b. the Rate in effect for that monthly billing period.
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7.6
The parties agree that this monthly minimum charge is just and
reasonable, and is necessary to establish a minimum cash flow to
meet the operating expenses and debt service for the System.
Exhibit D presents three examples of how the monthly minimum and
any credit shall be calculated.
7.5.3 Adjustments to the Minimum Charge. When the System is financially
self-supporting and the Reserve Fund has been established, Fort
Worth may modify or eliminate this minimum monthly charge. If the
Customer is prevented from withdrawing Reclaimed Water because
of an extended interruption in Fort Worth's delivery of Reclaimed
Water (exceeding 5 consecutive days), then the Minimum Monthly
Charge shall be proportionately reduced for that monthly billing cycle,
based on the number of 24-hour days that no Reclaimed Water was
delivered by Fort Worth.
7.5.4 Credits. In any Fiscal Year that Customer incurs a Minimum Monthly
Charge for a month, but its annual withdrawal is equal to or greater
than its Annual Amount, Fort Worth will credit the Customer's account
with a credit (in dollars) calculated as:
a. the total charges for that year, minus
b. the Annual Amount / 12 x the Rate.
Examples of this calculation are in Exhibit D. Fort Worth will first
apply the credit to past -due charges, if any, and thereafter to current
charges.
Customer to Collect Resale Rates. Customer agrees, throughout the term of
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this Agreement, (i) to fix and collect such rates and charges for Reclaimed Water service
supplied by Customer as will produce revenues in Cl" amount equal to at least all of the
operation and maintenance expenses of the Customer system, including specifically its
payments due to Fort Worth under this Agreement; and all other amounts as required by
Applicable Law, (ii) to enact or pass all ordinances or resolutions authorizing the System's
revenue bonds or other obligations now or hereafter outstanding, including the amounts
required to pay its allocable share as a System customer of all principal of and interest on
such bonds and other obligations.
7.7 Rates Charged to Additional Reclaimed Water Customers
7.7.1 Retail Customers. When and if Fort Worth provides Reclaimed Water
service to its retail customers, in the § 7.2 annual cost -of -service
study, Fort Worth shall allocate System Costs proportionately
between a retail customer class and a wholesale customer class. The
allocation shall be based upon generally acceptable rate -making
principles, and taking into consideration relevant factors, which may
include the facilities and customer services required to provide
Reclaimed Water Service to each customer class.
7.7.2 Wholesale Customers. New wholesale customers, added as
provided in § 12, shall pay the Rates as provided in this Agreement,
and such other contributions, connection fees, rates and charges
as may be determined by Fort Worth to be in the best interest of the
System and its customers.
8. Effective Date• Term
8.1 Effective Date. The effective date of this Agreement shall be the date it is
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fully executed by both parties. Reclaimed Water service to Customer begins on the date
the Reclaimed Water faces and points of connection are constructed and Fort Worth
makes Reclaimed Water service available at the Customer's point of delivery.
8.2 Term. The term of this Agreement shall be twenty (20) years from the
Effective Date, subject to termination under Article 14. This Agreement may be renewed
on terms mutually agreeable to the parties.
9. Easements and Rights -of -Way
9.1 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 for the purpose of constructing and/or maintaining Reclaimed Water mains or
facilities within the Customer's service area, as necessary to provide Reclaimed Water
service to Customer and as allowable by Applicable Law, to other areas. Alternatively, if
the Customer has owner cities, then Customer shall request its owner cities to grant,
without charge to Fort Worth, such easements and rights -of -way, or at Customer's election,
if the Customer's owner cities do not grant such easements and rights -of --way, Customer
shall grant licenses for the duration of this Agreement, as requested by Fort Worth for the
purpose of constructing Al maintaining Reclaimed Water mains or facilities within the
Customer's service area, as necessary to provide Reclaimed Water service to Customer
and, as allowable by Applicable Law, to other areas. The easements and rights -of --way will
be in a form reasonably acceptable to Fort Worth. Upon notice from Customer and at Fort
North's
expense, Fort Worth will move System water mains or facilities located in street
rights -of -way, or other property owned by Customer, when reasonably necessary to the
performance of essential governmental duties by Customer.
9.2 Fort Worth shall grant, without charge to Customer, such easements and
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rights -of -way along public highways or other property owned by Fort Worth, as requested
by Customer, for the purpose of constructing and/or maintaining Reclaimed Water mains or
facties within Fort Worth to provide reclaimed water to Customer. Upon notice from Fort
Worth and at Customer's expense, Customer will move such reclaimed 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 or license areas in order to prevent
further conflicts insofar as is reasonably practicable.
10. Reclaimed Water Use Requirements
10.1 The use of Reclaimed Water is regulated by the Texas Commission on
Environmental Quality ("TCEQ") under Chapter 26 of the Texas Water Code and 30
Texas. Administrative Code Ch. 210, and by Article VII of Chapter 35 of the Fort Worth
City Code, as it may be amended from time to time. Customer and its officers, agents,
employees, contractors and subcontractors, shall abide by and comply with Applicable
Law. Fort Worth may in its sole discretion, immediately terminate the delivery of
Reclaimed Water upon its good faith belief that a violation of any Applicable Law(s) has
occurred.
10.2 Title 30 Texas. Administrative Code Ch. 210 states: "The producer of
reclaimed water will not be liable for misapplication of reclaimed water by users, except
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as provided in this section," and lists certain requirements for providers and users.
Customer acknowledges that its actions under this Agreement may fall within the
definition of both a provider and a user from time to time. Customer agrees that
Applicable Laws include its obligation to comply with the requirements of Section 210.E
for providers and users, based on the capacity in which the Customer is acting.
11. Resale of Reclaimed Water
Customer agrees that it will not share the Customer system or any other facilities for
Reclaimed Water use with any other governmental or corporate entity outside of the
Customer's Service Area as identified in Exhibit E, without the prior written consent of Fort
Worth. Fort Worth neither recognizes nor approves any existing agreements entered into
by Customer with other governmental or corporate entities outside its service area prior to
the effective date of this Agreement.
12. Adequate Supply
Fort Worth will use its best efforts to provide an adequate supply of Reclaimed
Water for all of its customers. Before Fort Worth contracts with additional wholesale
Reclaimed Water service applicants, the Director will consult with the Reclaimed Water
System Advisory Committee and provide reasonable assurances that the projected five (5)
year Reclaimed Water demands of both the then -existing wholesale customers and the
proposed additional customer can be adequately fulfilled. Reasonable assurances may
include an analysis of the economic feasibility of providing the requested service to the
new customer, taking into account additional operating and maintenance costs,
potential capital costs required to expand the System infrastructure, projected annual
volumes requested by the applicant, funds contributed by the applicant to defray
System expansion costs and impacts on the Volume Charge. Because Fort Worth, the
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4-23-09
Dallas Fort Worth International Airport Board, and the Cities of Euless and Arlington
negotiated the terms of this Agreement collectively, and entered into their contracts
contemporaneously, those contracts do not require further assurances under this
Article 12.
13. Reclaimed Water System Advisory Committee
Customer's governing body shall appoint a representative to be a voting member of
the Reclaimed Water System Advisory Committee, whose purpose shall be to consult with
and provide advice to Fort Worth on matters related to the System pertaining to
conservation, wholesale planning, improvements, and additional wholesale Reclaimed
Water customers. The Committee shall establish bylaws governing the election of officers,
meeting dates and other matters pertinent to its function. It is understood and agreed that,
by execution of this Agreement, neither Fort Worth nor any other Customer waives or
surrenders any of its governmental powers or immunities. The Committee shall act on an
advisory basis and its actions or decisions shall not bind the Fort Worth City Council or the
City of Fort Worth.
14. Termination
14.1 This Agreement may be terminated without cause by the mutual consent of
Customer and Fort Worth. Such termination shall be effective ninety (90) days from the
date of such mutual consent, which shall be in writing, signed by both parties.
14.2 Except as otherwise allowable herein, this Agreement may also be
terminated by either party for breach and/or failure to perform any of the duties or the
obligations as described hereunder or to faithfully keep and perform any of the terms,
conditions and provisions of this Agreement by either party (hereinafter "breach"). Upon
such breach, the non -breaching party may deliver to the breaching party, written notice of
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its intention to terminate this Agreement if the breaching party fails to cure such breach no
later than forty-five (45) days from the date of the notice. Such notice shall also include a
reasonable description of the breach. The non -breaching party shall notify the breaching
party in wrng upon acceptance of the cure of any breach. If by the forty-fifth (45) day the
breaching party fails or refuses to cure such breach pursuant to the terms and conditions of
this Agreement, then and in such event, the non -breaching party shall have the right to
terminate this Agreement by issuing notice of termination and all rights, powers, and
privileges of the breaching party shall cease and terminate.
14.3 Upon a second breach of a similar nature by a party and irrespective of any
cure of such breach, the non -breaching party may, after six (6) months written notice
provided to the breaching party terminate this Agreement. In the event of such termination,
all rights, powers, and privileges of breaching party hereunder shall cease and breaching
party shall make no claim of any kind whatsoever against non -breaching party, its agents,
or representatives, by reason of such termination or any act incident thereto.
14.4 The following is anon -exclusive list of acts or omissions which shall be
considereA a breach of this Agreement
a. Failure to make any payment of any bill, charge or fee as provided for
in this Agreement;
b. Making any connection to the System at any point except as provided
in Section 3.2 hereof;
c. Continuous failure to provide Fort Worth ingress and egress to any
metering facility for purposes of operation and maintenance of;
d. Failure to provide Fort Worth rights -of -way and/or easements or
licenses as required herein; and
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4-23-09
e. Failure to strictly comply this Agreement and with all Applicable Laws.
14.5 Any failure by a party to terminate this Agreement or the acceptance by Fort
Worth of any payments for delivered Reclaimed Water under this Agreement for any period
of time after such breach shall not be determined to be a waiver by Fort Worth or a non -
breaching party of any rights to terminate this Agreement pursuant to the terms herein. 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.
15. Ownership of the System
15.1 No provision of this Agreement, including the use of the cash basis for rate
studies, shall be construed to create any Customer ownership or equity in the System.
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 System.
15.2 This Agreement will not be construed in any form or manner to establish a
partnership, joint venture or agency, express or implied, nor any employer -employee,
borrowed servant or joint enterprise relationship by and among the parties. Each party
shall be an independent contractor and shall be responsible at all times for directing its
employees in the course of their duties.
16. Third Party Beneficiaries
This Agreement shall inure only to the benefit of the parties hereto and any person
or entity not a party to this Agreement shall not, in any form or manner, be considered a
third party beneficiary of this Agreement. Each party to this Agreement is solely
responsible to fulfill its own contract obligations or commitments.
17. Liability
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4-23-09
17.1 Customer shall be solely responsible for any and all claims, damages,
deaths, losses, injury, fines, penalties, suits and liaty of every kind, including
environmental liability (the aties"), arising from the Customer's or the Customer's
reclaimed water users' use, distribution or discharge of the Reclaimed Water on the
Customer's side of the point of delivery, whether such use is intended or accidental, or
authorized by this Agreement and Applicable Laws or otherwise. Customer shall be solely
responsible for any and all claims, damages, deaths, losses, injury, fines, penalties, suits
and liability of every kind arising from or relating to the design, installation, construction,
connection, maintenance, operation and modification of its own system.
18. Force Maieure
18.1 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 than claimed, but for
no longer period, and such party shall endeavor to remove or overcome such inability
with all reasonable dispatch.
18.2 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,
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4-23-09
floods, washouts, droughts, arrests, restraints of government and people, civil
disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial
oI entire failure %J Reclaimed Water supply, and inability on the part of Fort Worth to deliver
Reclaimed Water.
19. Notices
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: Water Utilities Director
City of Arlington
101 W Abram St
Arlington, Texas 76010
The parties hereto shall indicate in writing any change that may occur in such respective
addresses from time to time.
20. Inspection and Audit
20.1 Upon prior notice by Fort Worth, any duly authorized employee of Fort Worth
bearing proper credentials and identification shall have 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 Agreement.
20.2 Complete records and accounts required to be maintained by each party
hereto shall be kept for a period of five (5) years after their creation. 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
Execution Copy 29
4-23-09
regulation, make said records and accounts available to federal and/or state auditors.
21. Request for Service by Fort Worth
21.1 At the request %J the Director, but only to the extent permitted by applicable
law and at no additional cost to Customer, Customer agrees to furnish Reclaimed Water to
areas and premises situated adjacent to the boundary of Customer and within. the
boundaries of Fort Worth. The metered quantity of Reclaimed Water delivered used in this
area each month by Fort Worth shall be the total of all individual Fort Worth customer
meter readings. At the option of Customer or Fort Worth, a meter may be installed where
practicable at the expense of Fort Worth to meter all Reclaimed Water used by Fort Worth
under the terms of this section.
21.2 Each month, the metered quantity of Reclaimed Water furnished by
Customer to Fort Worth shall be deducted from the total quantity of Reclaimed Water
withdrawn from the System by the Customer, before computing the Customer's Volume
Rate Charge for that month.
22. Arbitration
22.1 The parties shall endeavor, but only to the extent permitted by applicable law
and at no additional cost to Customer, to settle all disputes arising out of or relating to this
contract by amicable negotiations. However, where this Agreement expressly states that a
controversy or claim arising out of or relating to this Agreement will be settled by arbitration,
the Parties shall arbitrate the dispute or claim under the following procedures.
22.2 Such controversy or claim arising out of or relating to this Agreement as
provideI for herein, shall be resolved by binding arbitration administered by the Federal
Mediation and Conciliation Services ("FedMed") in accordance with its Commercial
Arbitration Rules and judgment on the award may be rendered by the arbitrators and
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entered in any court having jurisdiction thereof. The procedure for initiation and conduct of
the binding arbitration will be as follows:
a. The arbitration may be commenced by either party by the service of a
written request for arbitration ("Request for Arbitration") upon the other
party. The Request for Arbitration shall summarize the controversy and
claims to be arbitrated.
b. The arbitration shall be heard in Tarrant County, Texas before an
arbitration panel comprised of three (3) arbitrators. Upon initiation of a
Request for Arbitration by either party hereto, each party, within fifteen
(15) days of the date of the Request for Arbitration, shall select an
arbitrator. The arbitrators selected by the claimant and respondent shall,
within ten (10) days of their appointment, select a third arbitrator. In the
event the two arbitrators are unable to agree upon a third arbitrator, then
FedMed shall appoint the third neutral arbitrator. Prior to commencement
of hearings, each of the arbitrators appointed shall provide an
undertaking of impartiality. In determining the appropriate background of
the third arbitrator, the first two arbitrators shall give due consideration to
the issues to be resolved.
22.3 Judgment on the award rendered by the arbitrators may be entered in any
court having jurisdiction thereof.
22.4 Both parties may allow their clients, representatives, witnesses and agents to
participate and observe the Arbitration proceedings without compromising any
attorney/client or confidentiality privileges otherwise applicable. However, no other third
party may participate or observe an Arbitration proceeding.
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22.5 Fort Worths arbitration costs shall be a System Cost.
23. Licenses, Permits and Fees
23.1 Customer agrees to obtain and pay for all licenses, permits, certificates,
inspections and all governmental approvals as required by Applicable Law, including those
necessary for the use of Reclaimed Water.
23.2 This Agreement, so long as it is in effect between the parties, constitutes a
Fort Worth permit for the Customer to use Reclaimed Water under TCEQ Authorization for
Reclaimed Water No. R10494-013.
24. Miscellaneous
24.1 If any one or more of the provisions in this Agreement shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement; and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision was not had never
been contained herein
24.2 Whenever possible, each provision of this Agreement shall be interpreted to
be effective and valid under applicable law, but if any provision of this Agreement, or its
application to any person or entity under any circumstance, is invalid or unenforceable to
any extent under Applicable Law, and the extent of the invalidity or unenforceability does
not cause substantial deviation from the underlying intent of the Agreement, then such
provision shall be deemed severed from this Agreement with respect to such person, entity
or circumstance, without invalidating the remainder of this Agreement or the application of
such provision to other persons, entities or circumstances, and a new provision shall be
deemed substituted in lieu of the provision so severed which new provision shall, to the
extent possible, accomplish the intent of the parties as evidenced by the provision so
Execution Copy 32
4-23-09
severed.
24.3 The parties acknowledge that each party and, if it so chooses, its counsel
have reviewed and revised this Agreement and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or any amendments or exhibits to it. As
used in this Agreement, the term "including" means "including without limitation," the words
"shall" and "will" are mandatory and the word "may" is permissive, and the term "days"
means calendar days, not business days. Wherever required by the context, the singular
shall include the plural, and the plural shall include the singular. Each defined term may be
used in its singular or plural form whether or not so defined.
24.4 In addition to any other remedy provided by law, this Agreement shall be
specifically enforceable by the parties hereto.
24.5 SHOULD ANY ACTION, WHETHER REAL OR ASSERTED, AT LAW OR IN EQUITY, ARISE
OUT OF THE TERMS AND CONDITIONS OF THIS CONTRACT, VENUE FOR SAID ACTION SHALL BE IN
TARRANT COUNTY, TEXAS.
24.6 Modifications or amendments to this Agreement must be in writing and
approveA by the governing body of each party. Both parties agrees to implement and
abide by any changes in this Agreement made necessary by Applicable Law, including any
new, amended, or revised state or federal regulation.
24.7 Incorporation of Exhibits by Reference. All exhibits attached to this
Agreement are incorporated into this Agreement by reference for the purposes set forth
herein, as follows:
Exhibit A TCEQ Reclaimed Water Authorization and "Service Area"
Exhibit B Form for submitting Customer's estimate of Reclaimed Water
use as required by § 2.4
Exhibit C Maximum Rate Calculation Example
Exhibit D Volume Charge Calculation Examples
Execution Copy 33
4-2M9
Exhibit E Customer's Service Area
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.
[THIS SPACE INTENTIONALLY BLANK]
Execution Copy 34
4-23-09
ATTEST: CITY OF FORT WORTH
City Secretary, City of Fort Worth
APPROVED AS TO FORM AND
�,nnsta rr: rceynoias
Assistant Citv Attorn
City of Fort Worth
APPR AL REC M�NDED:
Frank Crumb
Director
City of Fort Worth Water Department
CITY OF Arlington
BY: &4 CL C -40 ,
ITS 7 iru.ic �A
Doegey, City Attorney
Date:
WITNESS:
Fernando Costa
sistant City Manager
v of Fort Worth
eo�trac
)a
Date
�uth.ortza,tio�
ATTEST:
Karen Badar, City Secretary
OFFICIAL. RECORDI
CITY SECRETARY
Execution Copy 35 T. WORTH, TX
4-23-09
EXHIBIT A
TCEQ Reclaimed Water Authorization and "Service Area"
Execution Copy 36
4-23-09
�-.<
-, �
Kathleen Hartnett 4t7�ite, Charrtrtan '�
Larry R. �oH+ard, Carttmissioner .��
�, -
Martin �. Hubert, Cwrtntissi�ne� ��%� E�tl'��P �'t'r��a.� t��.:,
Tenn Si7ankle, Execuiiue f�zrector � �
'�~F'�A� �`01�`�������OI� C�� �I`�VIi��Nl�i���`I`AI� �.�UA�,IT�'
Pr�oiecliny Texas c5y Reduerrtr� and Pret�etztriz,7 P�t(utr"on
March 23, 2007
Mr. S. Frank Crumb, P.E.
Director, Fort ��torth Water Deparmrent
City of Fort Worth
1000 Throcicmorton
Fort Worth, Texas 76 i 02
Re: Reclaimed Water Authorization
Village Creek Wastewater Treatment Plant
TPDES Permit No. WQOO10494013
W«tPR R 1U491-013
CN600128b62; RN102076924
Tarrant County, 'Texas
Dear 1VIr. Crumb:
We have received your request to amend your Reclaimed Water Authorization to include areas shown
on the revised service area map which will be shown in your amended authorization as "Attachment
A". The revised area is to include all areas within the current city limits, the ciry's Extraterritorial
Jurisdiction (ETJ), city limits of wholesale customers and surrounding cities, and all other areas within
Tarrant, Parker, Denton, Dallas, Johnson and «rise Counties. The project being updated consists of
the reuse of wastewater effluent from the Wastewater Treatment Plant referenced above. The treated
effluent will be used for the Type I and Type II uses as defined in 30 TAC §210.32 (Specific Uses of
Reclaimed Water).
If you have any questions please contact Louis Herrin at (512} 239-�552 or Vt�anda Hamstra at
{512)239-2583.
Sincere?
--�
Chris Li7�ei�`�11, Manatter
Wastewater I'ennitiing Section
Water C?lzality 1ivision
I?,itclosure
cc: City ofFort Worth. ti��/attachments
TCFE� Region � C)I'lice, ea�i�tttachments
-l�Cl;f� Water t�ttality Division. Application }�ec�i�ar any{ Processinct `f;�am
(i��1s. p:athcrine �9c�lS�i7r.ic (MC lu8). � r"attachments
P.{). 13ox 13�ty7 � .-tustir�, Texas 787I1-3{)i37 � 512%Z;',�l-l0i)1,1 �
inter,iet .}ddress; �wv�ti�.tc�e�.state.tx.us
Authorization No. R]0494-013
This authorization supersedes
and replaces R10494-013
approved August 28, 2006
AUTHORIZATION FOR RECLAIMED WATER
Producer: City of Fort Worth
P.O, Box 870
Fort Worth, Texas 76101
Producer: City of Port Worth
P.O. Box 870
Fort Worth, Texas 76101
Users: Any user that the City ofFort Worth permits as a distributor or a bulk user of the reclaimed
wafer.
Location: The wastewater h•eatment plant is located southeast of the confluence of the West Fork
hrinity River with Village Creek in Tar•ant Count}J, Texas.
Authorization: Reclaimed water from the Cite ofFrn•t Worth Village Wastewater Treatment Plant (TPDES
Permit No. WQ001 b494013), to be used as defined in Title 30 Texas Administrative Code,
(30 TAC) Chapter 210, U.ve of Reclaimed Hfater. See Attachment "A" for service area map,
This authorization contained the conditions that apply for the uses of the reclaimed water. The approval of
a reclaimed water use project under Chapter 21 U does not affect any existing water rights, If applicable, a
reclaimed water use authorization in no way affects the need of a producer, provider and/or user to obtain
a separate water right authorization from the commission.
This action is taken under authority delegated by the Executive Director of the Commission on
Environmental Quality.
Issued Date: Marr.h 23, 2007
'or the Commission
City of Fort P+'ortlt
Reclaimed wuter Project
Authorization No. R10494-013
Page 2
Limitations: The authorization is subjected to the following requirements:
I. Genera] KequirementsI
(a) No wastewater treatment plant operator (producer) shall Transfer to a user reclaimed
water without first notifying the connnission.
(b) Reuse of untreated wastewater is prohibited.
(c) hood crops that may be consumed raw by humans shall not be spray irrigated. Food
crops including orchard crops that will be substantially processed prior to human
consumption may be spray irrigated. Other types of irrigation that avoid contact of
reclaimed water with edible portions of food crops are acceptable.
(d) There shall be no nuisance conditions resulting from the distribution, the use, and/or
storage of reclaimed water.
(e) Reclaimed water shall not be utilized in a way that degrades ground water quality to a
degree adversely affecting its actual or potential uses.
(f) Reclaimed water managed in ponds for storage must be prevented from discharge into
waters in the state, except for discharges directly resulting from rainfall events or in
accordance with a permit issued by the commission. All other discharges are
unauthorized. If any unauthorized overflow of a holding pond occurs causing discharge
into or adjacent to waters in the state, the user or provider, as appropriate, shall report
any noncompliance: A written submission of such information shall also be provided to
the commission regional office and to the Austin Office, Water Enforcement Section
(MC-149), within five (5) working days of becoming aware of the overflow. The written
submission shall contain a description of the noncompliance and its cause; the potential
danger to human health or safety, or the environment; the period of noncompliance,
including exact dates and times; if the noncompliance has not been corrected, the
anticipated time it is expected to continue; and, steps taken or planned to reduce,
eliminate, and prevent recurrence of the noncompliance, and to mitigate its adverse
effects.
(g) The irrigation site must be maintained with a vegetative cover or be under cultivation
during times when reclaimed water is being applied. The irrigation practices shall be
designed so as to prevent incidental ponding or standing water except where local
farming conditions and the accepted irrigation delivery systems and cropping patterns are
such that, as an unavoidable consequence of such conditions, systems, and patterns, there
Will he standing water. 11-141gation application rates and application times shall be
developed so as to minimize "wet grass" conditions in unrestricted landscaped areas
during the periods the area could be in use. Irrigation systems shall be designed so that
the irrigation spray does not reach any privately -owned premises outside the designated
irrigation area or reach public drinking fountains. There shall be no application of
effluent NVhen the ground is water saturated or frozen. Distribution systems must he
designed to prevent operation by unauthorized personnel. irrigation operations shall he
managed in a manner to minin ize the inadvertent contact of reclaimed water with
hu nans. Operational or tailwater controls shall he provided to preclude discharge of
reclaimed Nvater from irrigation sites.
(lr) Signs in both English and Spanish shall be posted at storage areris. hose bibs and faucets
reading "Reclaimed Water, Do Not Drink" or similar \,�rarnings. Mternately, the area
may be secured to prevent access by the public:.
City ul' Port l�'or[h
Reclaimed water Project
Authorization No. R10494-013
Palle 3
(i) The reclaimed water user shall provide reasonable eontr-ol of the application rates for
reclaimed water applied to irrigation areas. These controls shall encourage the efficient
use of reclaimed water and avoid excessive application of reclaimed water that results in
surface runoff or excessive percolation below the root zone.
The reclaimed water provider or user, as applicable shall determine and document typical
irrigation demands for the proposed use based on type of vegetation and land area to be
irrigated.
(k) The reclaimed water provider shall be responsible for conducting periodic audits of
appropriate controls implemented by reclaimed water users.
(1) All hose bibs and faucets shall be painted purple and designed to prevent connection to a
standard water hose. Hose bibs shall be located in locked, below grade vaults which
shall be clearly labeled as being of non -potable quality. As an alternative to the use of
locked, below grade vaults with standard hose bibs services, ]lose bibs may be placed in
a non -lockable service box which can only be operated by a special tool so long as the
hose bib is clearly labeled as non -potable water.
(m) One of the following requirements must be met by the user or provider, for any area
where reclaimed water is stored or where there exist hose bibs or faucets:
(1) Signs having a minimum size of eight inches by eight inches shall be posted at
all storage areas and on all hose bibs and faucets reading, in both English and
Spanish, "Reclaimed Water, Do Not Drink" or similar warning.
(2) The area shall be secured to prevent access by the public.
(n) Where a reclaimed water line parallels a sewer line, the reclaimed water line shall be
constructed in accordance with subsection (p) or (q) of this section. The horizontal
separation distance shall be three feet (outside to outside) with the reclaimed water line
at the level of or above the sewer line. Reclaimed water lines which parallel sewer lines
may be placed in the same benched trench. Where a reclaimed water line crosses a sewer
line, the requirements of C,hapter-290.44(e)(5)(B) (Location of Water Lines) shall be
followed, will) "reclaimed water line" substituted for "water line."
(o) Reclaimed water lines which transport reclaimed water under pressure shall be sized
according to acceptable engineering practices for the needs of the reclaimed water users.
Thedesigner shall consider methods to prevent or maintain lines to mitigate the effect of
the deposition of solids in such lines. Pipe specified for reclaimed water force mains
shall be of a type having an expected life at least as long as that of the lift station and
shal I be suitable for the reclaimed water being pumped and operating pressure to which it
will be subjected. All pipe shall be identified in the technical specifications with
appropriate American Society for Testing and Materials. American National Standard
Institute, or American Water Works Association (AWWA) standard numbers for both
quality control (dimensions. tolerance, and installation such as bedding or baekfill). All
pipes and fittings shall have a minimum working pressure rating of 150 pounds per
square inch. Final plans and specifications shall describe required pressure testing for all
installed reclaimed water force mains. Minimum test pressure shall be 1.5 times the
maxirnurn design prcasure. Allowable leakage rates shall be determined as described in
Chapter 317 relating, to I'l-eSSure Sewer- Systcrrms.
(p) Gravity flow reclaimed water lines shall meet the requi.ren'tents of`Chapter 317. The
designer shall consider methods to prevent high velocity scour or maintain line fluid
velocity to mitigate the effects of the deposition of solids in the gravity conveyance.
City of Fort worth
Reclainted water Project
Authorization No. R10494-01 i
Page 4
(q) All exposed piping and piping within a building shall be either purple pipe. or painted
purple. All buried piping installed after the effective date of these rules shall be one of
the following: manufactured in purple, painted purple, taped with purple metallic tape, or
bagged in purple. All exposed piping should be stenciled in white with a warning
reading "NON -POTABLE WATER." All exposed or buried reclaimed water piping
constructed at a wastewater treatment facility is exempt from the color coding
requirements of this section.
(r) When applicable, in accordance with Chapter 317 the Design Criteria for Sewerage
System, the design of distribution systems which will convey reclaimed water to a user
shall be submitted to the executive director and must receive an approval. The design of
the distribution systems must meet the requirements of Chapter 317, Where a
municipality is the plan review authority for certain seNver systems which transport
primarily domestic waste, in lieu of the commission, design submittal will not be subject
to submittal to the commission and instead must be approved by the municipality.
Materials shall be submitted for approval by the executive director in accordance with
the Texas Engineering Practice Act (Article 3271a, Vernon's Annotated Texas Statutes).
(s) All ground level and elevated storage tanks shall be designed, installed, and constructed
in accordance with current AWWA standards with reference to materials to be used and
construction practices to be followed, except for health -based standards strictly related
to potable water storage and contact practices, where appropriately less restrictive
standards may be applied.
(t) The reclaimed water producer and user shall maintain on the sites a current operation
and maintenance plan. The operation and maintenance plan which shall contain, as a
minimum the following:
(1) a copy of a signed contract between the user and producer and ;
(2) a labeling and separation plan for the prevention of cross connections between
reclaimed water distribution lines and potable water lines;
(3) the measures that will be implemented to prevent unauthorized access to
reclaimed water facilities (e.g., secured valves);
(4) procedures for monitoring reclaimed water;
(5) a plan for how reclaimed water use will be scheduled to mminvze the risk of
inadvertent human exposure;
(6) schedules for routine maintenance;
(7) a plan for worker training and safety; and
(8) contingency plan for system failure or upsets.
(u) If effluent is to be used forirrigation within the Edwards Aquifer recharge zone, plans
and specifications for the disposal system must be submitted to the executive director for
review and approval prior to construction of the facility in accordance with Chapter 2 13
(Edwards Aquifer Rules),
I1. Storage Requirements for Reclaimed Water,
(a) All initial holding ponds containing `Type 11 effluent, located in a vulnerable area as
defined by %r rating oi1 l t) or greater on the statewtde "�irutrnc;-ti rrter Pr�llrrtiorr f'vrcyrrtir�l
- CJ(!nerw, Munirihal, and lrrdttstriul S(mrceS ("DRASI'R slap, shall coriform to the
following requirements:
(1) "C'he ponds, whether constructed of earthen or other impervious material, shall be
designed and constructed so as to prevent groundwater contamination;
City of Furt Worth
Pieciainied Water Project
Authorization No. R10494-013
Page 5
(2) Soils used for pond lining shall be free from foreign material such as paper,
brush, trees, and large rocks;
(3) All soil liners must be of compacted material, at least 24 inches thick, compacted
in lifts no greater than 6 inches thick and compacted to 95% of Standard Proctor
Density. In -situ clay soil's meeting the soils liner requirements shall be
excavated and re -compacted a minimum of 6 inches below planned grade to
assure a uniforinly compacted finished surface.;
(4) Soil liners must meet the following particle size gradation and Atterberg limits:
(A) 30% or more passing a number 200 mesh sieve; and
(B) a liquid limit of 30% or greater; and a plasticity index of 15 or greater
and have a permeability less than or equal to I X 10' cm/see;
(5) Synthetic membrane linings shall have a minimum thickness of 40 mils with a
leak detection system, In situ liners at least 24 inches thick meeting a
permeability less than or equal to I X 10' em/sec are acceptable alternatives;
(6) Certification shall be furnished by a Texas Registered Professional Engineer that
the pond lining meets the appropriate criteria prior to utilization of the facilities;
and
(7) Soil embankment walls shall have a top width of at least five feet. The interior
and exterior slopes of soil embankment walls shall be no steeper than one foot
vertical to three feet horizontal unless alternate methods of slope stabilization are
utilized. All soil embankment walls shall be protected by a vegetative cover or
other stabilizing material to prevent erosion. Erosion stops and water seals shall
be installed on all piping penetrating the embankments.
(b) All initial holding ponds designed to contain Type I and Type H effluent, located in areas
I
n the state not identified in subsection (a) of this section shall conforin to the following
requirements:
(1) The ponds, whether constructed of earthen or other impervious materials, shall
be designed and constructed so as to prevent groundwater contamination;
(2) Soils used for pond lining shall be free from foreign material such as paper,
Brush, trees, and large rocks;
(3) All soil liners must be of compacted material having a permeability less than or
equal to 1 x 10' cm/see, at least 24 inches thick, compacted in lifts no g-reater
than 6 inches each;
(4) Synthetic membrane linings shall have a minimum thickness of 40 mils. In situ
liners at least 24 inches thick meeting a permeability less than or equal to i X 10
a cir/sec are acceptable alternatives;
(5) Certification shall be furnished by aTexas Registered Professional Engineer that
the pond lining meets the appropriate criteria prior to utilization of the facilities;
and
(6) Soil embankment walls shall Dave a top width of at least five feet,
7'hc interior
and exterior slopes of soil embankment walls shall be no steeper than one foot
vertical to three feet horizontal unless alternate methods of slope stabilization are
utilized. All soil embankment walls shall be protected by a vegetative rover or
other stabilizing material to prevent erosion. };rosion stops and watcr seals shall
be installed on all piping penetrating the cnihankments.
Cin' of Fort worth
Reclaimed water Project
Authorization No. R10494-013
Page G
(7) An alternative method of pond lining which provides equivalent or better water
quality protection than provided under this section may be utilized with the prior
approval of the executive director.
(8) A specific exemption may be obtained from the executive director if, after the
review of data submitted by the reclaimed water provider or user, as appropriate,
the executive director determines containment of the reclaimed water is not
necessary, considering:
(A) soil and geologic data, and ground water data, including its quality, uses,
quantity and yield; and
(B j adequate demonstration that fmpainnent of ground water for its actual or
potential use will be prevented.
(c) Reclaimed water may be stored in leak -proof, fabricated tanks.
III. Specific Uses and Quality Standards for Reclaimed Rater
Numerical parameter limits pertaining to specific reclaimed water use categories are contained in
this section. These limits apply to reclaimed water before discharge to initial holding ponds or a
reclaimed water distribution system. It shall be the responsibility of the reclaimed water
producer to establish that the reclaimed water meets the quality limits at the sample point for the
intended use in accordance with the monitoring requirements identified in Section IV relating to
Sampling and Analysis.
(a) Type I Reclaimed water Use. This type of use includes irrigation or other uses in areas
where the public may be present during the time when irrigation takes place or other uses
where the public may come in contact with the reclaimed water.
(b) The following conditions apply to Type I of uses of reclaimed water. At a minimum, the
reclaimed water producer shall only transfer reclaimed water of the following quality for
Type I reclaimed water uses, reclaimed water on a 30-day average shall have a quality of:
CBODS 5 mg/L
Turbidity 3 NTU
Fecal Coliform 20 CFU/100 ml*
Fecal Coliform (not to exceed) 75 CFU/100 nil**
* geometric. mean
** Single grab sample
(c) Type II Reclaimed Virater Use. The type of use where the public would not. conic in
contact with the reclaimed water.
(d) "1'he following conditions apply to this type of use of reclaimed water. At a minnnurn, the
reclaimed water producer shall only transfer reclaimed water of the following quality as
described for hype 11 reclaimed water use, reclaimed water on a 30-day average shall
have a quality of:
CBOI)t 15 mg/l
Fecal Coliform 200 CFU/l00 nil*
Fecal Coliform (not to exceed) 800 CFU/100 nil"
gcometric mean
single grab sample
(e) hi the e�-ent a reclarnieti waterprovider or user proposes to design, construct, or nperate a
reclaimed water system or to utilize reclaimed water- in a manner other than permitted in
this authorization, the provisions of Chapter 210 Subchapter D shall apply.
City orrort Worth
Reclaimed Water Project
Authorization No. R10494-013
Page 7
. Sampling and Analysis.
The reclaimed water producer shall sample the reclaimed water prior to distribution to user to
assure that the water quality is in accord with the intended contracted use. Analytical methods
shall be in accord with those specified in Chapter 319 (relating to Monitoring and Reporting).
1'he minimum sampling and analysis frequency for Type I reclaimed water is twice per week and
for Type 11 reclaimed water is once per week.
The monitoring shall be done after the final treatment unit. These records shall be maintained on
a monthly basis and be available at the plant site for inspection by authorized representatives of
the Commission for at least five years.
V. Record Keeping and Reporting.
(a) The reclaimed water provider and user shall maintain records on site for a period of five
years.
(1) Records to be maintained by the provider include:
(A) copies of notifications made to the commission concerning reclaimed
water projects.
(B) as applicable, copies of contracts made with each reclaimed water user
(this requirement does not include reclaimed water users at residences
that have separate distribution lines for potable water).
(C) records of volume of water delivered to each reclaimed water user per
delivery (this requirement does not apply to reclaimed water users at
residences that have separate distribution lines fbr potable water).
(D) reclaimed water quality analyses.
(2) The reclaimed water producer shall report to the convwssion on a monthly basis
the following information on forms furnished by the executive director. Such
reports are due to the commission by the 20th day of the month following the
reporting period.
(A) volume of reclaimed water delivered to provider.
(B) quality of reclaimed water delivered to a user or provider reported as a
monthly average for each quality criteria except those listed a5 "not to
exceed" which shall be reported as individual analyses.
Vl. "I'lansfer of Reclaimed iy'ater.
Reclaimed water transferred from a provider to �, user sl2all be done on a demand only basis.
"171is means that the reclaimed water user m<ry refuse delivery of such water at any time. All
reclaimed water transferred to a user must be of at least the treatment quality specified in
Section II1. Transfer Shall be accomplished via pil-tes or tank tracks.
City of Fort Worth
Redaimed Water Noject
Authorization No. R10494-013
Page 8
VII. General Prohibitions.
Storage facilities for retaining reclaimed water pricer to use shall not be located within the
f7oodway and shall be protected from the 100-year flood.
VIII. Restrictions.
This authorization does not convey any property right and does not. grant any exclusive privilege.
IX. Responsibilities and Contracts.
(a) The producer of reclaimed water will not be liable for misapplication of reclaimed water
by users, except as provided in this section. Both the reclaimed water provider and user
have, but are not limited to, the following responsibilities:
(1) The reclaimed water producer shall:
(A) transfer reclaimed water of at least the minimum duality required by this
chapter at the point of delivery to the user for the specified use;
(B) sample and analyze the reclaimed water and report such analyses in
accordance with Sections N and V relating to Sampling and Analysis
and Record keeping and Reporting, respectively; and
(C) notify the executive director in writing within five (5) days of obtaining
knowledge of reclaimed water use not authorized by the executive
director's reclaimed water use approval.
(2) The reclaimed water provider shall:
(A) assure construction of reclaimed water distribution lines/systems in
accordance with 30 TAC Chapter 317 and in accordance with approved
plans and specifications;
(B) transfer reclaimed water of at least the minimum quality required by this
chapter at the point of delivery to the user for the specified use;
(C) notify the executive director in writing within five (5) days of obtaining
knowledge of reclaimed water use not authorized by the executive
director's reclaimed water use approval; and
(D) not be found in violation of this chapter for the misuse of the reclaimed
water by the user if transfer of such water is shut off promptly upon
knowledge of misuse regardless ofcontract provisions.
(?) "I'lie reclaimed water user shall:
(A) use the reclaimed water in accordance with this authorization; and
(B) maintain and pro%,Aide records as required by Section V relating to
Record Keeping and Reporting.
a4. Tilfort;t.'11l('nt.
lt. the prod11ccr, pa-avrder a1id;`or user fails to comply witl� the terms ef'this authnrizatioll, the
exectltrve director may ta)•:e ertl�>rcement action priwidc�d by the 'lexas Water Code, ��2(i_019
and 26.136.
City of Far[ wonh
Reclaimed Water Project
Authorization No. R10494-013
Page 9
xT. sTA�v�Ar�v �1zo��isloNs:
(a) Z�his authorization is granted in accordance with the Texas Water Code and the rules and
other Orders of the Commission and the laws of the State of'T'exas.
(b) Acceptance of this authorization constitutes an acknowledgment and agreement that the
provider and user will comply with all the terms, provisions, conditions, limitations and
restrictions embodied in this authorization and with the rules and other Orders of the
Commission and the laws of the State of Texas. Agreement is a condition precedent to
the granting of this authorization.
City uC Fort 1�'orth
Reclaimed Water Project
Awhorization No. R10494-013
Page 10
�iffIC�ITl]Cllt 4G�"
ty of Port Worth
Reclaimed Water Project
Authorization No. R10494-013
Page 10
Attachment "A"
March 9, 2007
Ms. Sherry Smith
Wastewater Permitting Section
Water Quality Division
Texas Commission on Environmental Quality
P.O. Box 13087
Austin, TX 78711
RE: Amendment to Service Area
Reclaimed Water Authorization R10494-013
Village Creek Wastewater Treatment Plant
TPDES Permit No. WQ0010494013
CN600128862; RN102076924
Tarrant County, Texas
Dear Ms. Smith:
The City of Fort Worth requests that the service area associated with the above -
referenced reclaimed water authorization be amended per the attached revised service
area map. The service' area has been revised to include all areas within the current City
Limits, the City's Extraterritorial Jurisdiction (ETJ), City Limits of wholesale customers
and surrounding cities, and all other areas within Tarrant, Parker, Denton, Dallas,
Johnson and Wise counties.
Tf you have any questions or concerns related to this request, please contact Mr. Richard
Talley at 817-392-$203. Your prompt consideration of this request is appreciated.
Sincerely,
'?�
S. Frank Crumb, P.E.
Director
Fort Worth Water Department
1)F�'Ai2Tl17ENT
OF 1'URT WORTH ► rUUU-1HROCKMORTON STREET * hORT WORT"N,
81'1-392-8226 *Far 817-392.8195
r� Pthrtrsi an rccycleJ rynper
ORT WORT City of Fort Worth
Reclaimed Water Service Area
(Revised March 9, 2007)
Legend
VCWWTf'
Lflkes
Fort Worth City Limit
Wholesale Water Customers
Surrounding Cities
y Fort Worth ETJ
Counties
orm for Submitting_ of Reclaimed
Water UsZ
Customer Arlington Water Utilities
Date August 219 2009
1. User's total maximum annual quantity of reclaimed water
_Forty Six Million Gallons
2. Peak usage required 750 gallons per minute
3. Estimated Monthly volumes
MONTH
Approximate Usage (1000
gallons/month)
January
1251
February
843
March
1127
April
1314
May
2271
June
5248
July
7086
August
8350
September
7333
October
6004
November
3138
December
1802
Does this Attachment A supersede a previous Exhibit B? Yes ❑
If yes, what is the Effective Date of superseded Exhibit B?
If yes, execution by authorized Fort Worth representative is required.
Fort Worth Water Department Representative Date
EXHIBIT C
Maximum Rate Calculation Example
based on the Wholesale Treated Water Contract Rate*
Maximum Rate Example from FY09 Wholesale Water Cost of Service Study:
WHOLESALE WATER VOLUME RATE
Treatment and Delivery Rate $ / kgal
Raw Water Rate $ / kgal**
Total Base Volume Rate
RATE PER 1,000 GALLONS
$0.8277
$0.7424
$1.5701
The Maximum Rate calculated under this example would equal $1.5701 per 1,000
gallons.
* The "Maximum Rate" is calculated by adding the Treatment and Delivery Charge per
1,000 gallons and the Raw Water Out -of -District Charge per 1,000 gallons, as each of
those is calculated in the annual Wholesale Water Cost of Service Study, as shown in this
Exhibit C example.
** Fort Worth's cost of raw water presently includes the rate charged by the City's raw
water provider, the Tarrant Regional Water District, as adjusted by the provider from time
to time.
Execution Copy
4-23-09
EXHIBIT D
Volume Charge Calculation Examples
The following examples illustrate the calculation of Customer Charges under the
Agreement and resulting FY credits for three hypothetical Reclaimed Water Use
scenarios.
Example 1 - Customer uses less than Annual Amount during the fiscal year, and does
not use more than the Minimum Monthly Use in any one month.
Annual Amount (kgal) 240,000 (x 1,000) gal
Minimum Monthly Use (kgal) 10,000 = 50% of Annual Amount / 12
Rate $/1,000 Gal $ 1.45
Monthly Minimum Charge: $ 14,500 = Rate x Minimum Monthly Use
Minimum Annual Charge: $ 174,000=$14,500 Minimum Monthly Charge x 12
months.
Monthly
Usage (kgal) Bill
October 51000 $14,500
November 0 $143500
December 0 $14,500
January 0 $14,500
February 0 $14,500
March 0 $14,500
April 51000 $14,500
May 51000 $14,500
June 10,000 $14,500
July 10,000 $14,500
August 51000 $143500
September 51000 $14,500
45,000 $174,000
Annual Charge
Credit to Next
FY
Execution Copy
4-23-09
39
Example 2 - Customer uses less than Annual Amount during the fiscal year, but uses
more than the Minimum Monthly Amount during some months. At FY year end,
Customer has paid more than the Minimum Monthly Charge x 12, but has not taken the
full Annual Amount. Fort Worth subtracts the Minimum Monthly Charge x 12 from the
actual amount paid and applies the difference to the Customer's account for the next
FY.
Annual Amount (kgal)
Minimum Monthly Use (kgal)
Rate $/1,000 Gal
Monthly Minimum Charge
Minimum Annual Charge:
October
November
December
January
February
March
April
May
June
July
August
September
TOTAL
240,000 (x 1,000) gal
10,000 = 50% of Annual Amount / 12
$1 A5
$141500 = Rate x Min. Monthly Use
$174,000=$14,500 Minimum Monthly Charge x 12
months.
Usage (kgal)
5,000
0
0
0
0
5,000
10,000
15,000
20,000
20,000
15,000
10,000
Monthly
Bill
$14,500
$14,500
$14,500
$14,500
$14,500
$14,500
$14,500
$21,750
$29,000
$29,000
$21,750
$14,500
100,000 $217,500
Annual Charge $174,000
Credit to Next
FY
$43,500
Execution Copy 40
4-23-09
Example 3 - Customer uses more than Annual Amount during the FY, but uses less
than the Minimum Monthly in some months. At FY end, Customer has paid more than
the Monthly Minimum Charge x 12, and has taken more than the full Annual Amount.
Fort Worth subtracts the Minimum Monthly Charge x 12 from the actual amount paid
and applies the remainder to the Customer's account for the next FY.
Annual Amount (kgal)
Minimum Monthly Use (kgal)
Rate $/1,000 Gal
Monthly Minimum Charge
Minimum Annual Charge:
Charges Due:
October
November
December
January
February
March
April
May
June
July
August
September
TOTAL
240,000 (x 1,000) Gal
10,000 = 50% of Annual Amount / 12
$1.45
$14,500 = Rate x Min. Monthly Use
$ 174,000 = Annual Amount /2 x Rate
$ 355,250=$14,500 Minimum Monthly Charge x 12
months.
Usage (kgal) Monthly
Bill
30,000 $43,500
15,000 $21,750
0 $14,500
0 $14,500
0 $14,500
15,000 $21,750
15,000 $21,750
30,000 $433500
35,000 $50,750
35,000 $50,750
40,000 $58,000
30,000 $43,500
245,000 $398,750
Annual Charge $355,250
Credit to Next $43,500
FY
Execution Copy
4-23-09
41
Exhibit E Customer's Service Area
Execution Copy 42
4-23-09
City of Arlington
Municipal Boundary
Legend
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April 27, 2009
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M&C Review
Page 1 of 2
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 12/8/2009
Official site of the City of or Worth, Texas
FORT WORTH
REFERENCE 60RECLAIMED
DATE: 12/8/2009 RERE : C-23965 LOG NAME: WHOLESALE
CONTRACTS
CODE: C TYPE: NON� PUBLIC CONSENT HEARING:
NO
SUBJECT: Authorize the Execution of Wholesale Reclaimed Water Service Contracts with the City of
Arlington, the City of Euless and DFW International Airport and Authorize Execution of
Memorandum of Understanding for Federal Stimulus Funding with the City of Arlington,
the City Euless and DFW International Airport
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute individual contracts to provide Wholesale Reclaimed Water
Service to the City of Arlington, the City of Euless and the DFW International Airport; and
2. Authorize the City Manager to execute Memorandum of Understanding (M OU) for Federal Stimulus
funding with the City of Arlington, the City of Euless and the DFW International Airport,
DISCUSSION:
On May 10, 2005, the City Council approved C ity Secretary Contract No. 31841 (M&C C-20721) with Alan
Plummer Associates, Inc., (APAI) to design the Eastside Reclaimed Water System and to assist with
development of wholesale contracts for service to the Cities of Arlington and Euless and the DFW
International Airport.
To justify the City 's cost in construction of the new reclaimed water distribution system needed large initial
customers to justify the construction of the system. Staff does not initially anticipate being able to recover
the capital and operational costs of the system through proposed wholesale rates as the full cost recovery
rate for reclaimed water would not be economical. However, the new reclaimed water distribution system
should be self-sufficient within five to 15 years depending on actual reclaim water usage.
Three customers were identified with having large enough need and use f or the reclaimed water service:
the City of Arlington, the City of Euless and the DFW International Airport. These customers have identified
uses for reclaimed water including golf courses, large parks, large irrigated areas, along with industrial
users (mainly gas well drillers) within their jurisdiction. The City of Euless has been trying for several years
to receive reclaimed water for their Texas Star Golf Course and Athletic Complex, The City in working with
the these three proposed customers for Wholesale Reclaimed Water Services developed economical
wholesale reclaimed water rates that are based on reclaimed water rates charged by other cities. All three
have approved and executed contracts through their appropriate governing bodies.
The contracts include the following terms:
Minimum monthly payments based on (50 percent) of monthly usage based on 1/12 of annual average
usage;
Rates for Fiscal Year 2011-Fiscal Year 2012 are set at $1.45/1,000 gallons;
Rates for Fiscal Year 2013-Fiscal Year 2014 are set at $1,5011,000 gallons; and
Rates starting in Fiscal Year 2015 will increase by five percent annually until such time as the cumulative
http://apps.cfwnet.org/council�acket/mc_review.asp?ID=12769&councildate=l2/8/2009 12/28/2009
M&C Review
Page 2 of 2
amount of the annual system deficits has been recovered.
20 year term
MOU for Federal Stimulus Funding (DWSRF/ARRA Funding) with the City of Arlington, the City of Euless
and the DFW International Airport were also reached in anticipation of the City receiving such funding.
The MOU provides that Fort Worth and the wholesale customers will amend the original contract to
reduce any debt service avoided by stimulus funding, to incorporate a Capital Recovery Fee amount
based on the debt service avoided to be reserved for future capital expenditures on the Reclaimed Water
System and to normalize and/or average, the wholesale reclaimed water rate over a three-year period.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that the Water Department is responsible for the
collection and deposit of funds due to the City.
TO Fund/Account/Centers
Submitted for City Manager's Office by:
Originating DeFartment Head:
Additional Information Contact:
FROM Fund/Account/Centers
Fernando Costa (6122)
S. Frank Crumb (8207)
David Townsend (8430)
ATTACHMENTS
Reclaim Water Memorandum of Understanding.pdf
Wholesale Reclaim Water Contract.pdf
http://apps.cfwnet. org/council�acket/mc_review. asp?ID=12769&councildate=l2/8/2009 12/28/2009