HomeMy WebLinkAboutContract 41581 (2)CITY SECRETARY
CONTRACT NO, 1SA ,
CONTRACT BETWEEN THE CITIES OF FORT WORTH, KELLER,
SOUTHLAKE AND WESTLAKE RELATED TO THE
BILLING FOR TREATED WATER
WHEREAS, on or about the 16th day November, 2010, the cities of Fort Worth
and Keller entered into a contract for the provision by Fort Worth of treated water to
Keller, such contract being City of Fort Worth City Secretary Contact No.C-41100; and
WHEREAS, on or about the 16th day November, 2010, the cities of Fort Worth
and Southlake entered into a contract for the provision by Fort Worth of treated water to
Southlake, such contract being City of Fort Worth City Secretary Contact No. C-41110;
and
WHEREAS, on or about the 16th day November, 2010, the cities of Fort Worth
and Westlake entered into a contract for the provision by Fort Worth of treated water to
Westlake, such contract being City of Fort Worth City Secretary Contact No. C-41112;
and
WHEREAS, the cities of Keller and Southlake entered into a contract between
themselves related to the provision of treated water by Southlake to Keller, such treated
water being provided to Southlake by Fort Worth; and
WHEREAS, the City of Fort Worth authorized the resale of treated water by
Southlake to the City of Keller; such contract being City of Fort Worth City Secretary
Contract No. 17683; and
WHEREAS, the City of Fort Worth hereby authorizes Westlake's additional point
of connection and the joint use of the T.W. King Water Supply Line with Southlake; and
WHEREAS, Keller, Southlake and Westlake desire to enter into a contract with
Fort Worth related to the billing for treated water delivered to Keller by Southlake and
Southlake to Westlake including provisions related to billing for lost water according to
the methodology described in the memo issued by Freese and Nichols, dated April 25,
2010 which shall be included in the contract; and
WHEREAS, the City of Fort Worth is agreeable to provide billing services related
to the treated water provided by Keller, Southlake and Westlake subject to and solely
pursuant to the terms and conditions stated below.
NOW, THEREFORE, THE CITIES OF KELLER, SOUTHLAKE,
WESTLAKE AND FORT WORTH AGREE AS FOLLOWS:
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
1.
TERM
The Agreement shall be effective upon the date the last party fully executes the
contract and shall terminate on September 30, 2031, unless terminated earlier as provided
herein It may be renewed on terms mutually agreeable to the parties.
2.
RATES FOR WATER TAKFN
The rates to be charged for treated water delivered by Fort Worth to the Cities of
Keller, Southlake and Westlake (hereinafter referred to as 'the Cities") shall be equal to
the volume rates and rate of use charges currently in effect and as they may change from
time to time, all in accordance with City of Fort Worth City Secretary Contracts C-41100,
C-41110 and C-41112, such contacts being hereinafter refelTed to collectively as the
"Contracts."
3.
DETERMINATION OF UNACCOUNTED WATER LOSSES;
ALLOCATION TO EACH PARTY FOR BILLING PURPOSES
A. Two factors shall be used to determine unaccounted water loss: 1) the interior
surface area of the water supply pipeline required to deliver flow to each city's
delivery point as determined in Section 4; and 2) the recorded actual water usage,
as described in Section 5.
B. A city which does not take any flow during the monthly billing period shall not be
assessed an unaccounted water loss; however, if flow is not taken by any city
during any monthly billing period, then the unaccounted water loss of the
Delivery System in that monthly billing period shall be allocated proportionately
to each city based on the surface area of the water supply pipeline requited to
deliver flow to each city's delivery point.
4.
SURFAC Ft, AREA OF THE WATER SUPPLY PIPELINE
The surface area of the water supply pipeline used by each city based on the flow
paths available to convey flow to each City's delivery point are as follows:
® Southlake Pearson Delivery Point: the Cities agree that the resulting average
interior surface area of pipeline that can deliver flow through both the Fort Worth
Northside II Caylor Tank through the 42-inch line and the Fort Worth North
Beach Tank through the 36-inch/30-inch line equals 240,151 square feet.
Keller Pearson Delivery Points the Cities agree that the resulting average interior
surface area of pipeline that can deliver flow equals 240,151 square feet.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 2 of 11
® Westlake Delivery Point the Cities agree that the resulting average interior
surface area of pipeline that can deliver flow to the future anticipated Westlake
Delivery Point is 380,494 square feet.
® T.W. King Delivery Point: the Cities agiee that the resulting average interior
surface area of pipeline that can deliver flow to the future anticipated Southlake
T.W. King Delivery Point is 453,405 square feet.
5.
Recorded Actual Water Usage
The total actual water delivered from all of the Fort Worth meters as shown on
Exhibit "A" shall be measured on a monthly basis. The recorded actual water usage by
each city at meters numbered 3, 4, 5 or 6 shall also be measured fiom each delivery point
on a monthly basis by Fort Worth pursuant to the Contracts The sum of the water
delivered from the Fort Worth meters numbered 1 and 2 shall then be compared to the
sum of the water usage by the Cities at meters numbered 3, 4, 5 and 6. The difference
shall equal and be the total unaccounted water loss volume.
As an example only:
Table A
Total Unaccounted Water Loss Calculation
Total Fort Worth Meters Total Sum of the Actual Total Unaccounted
Measured Water Used at the Cities Water Loss Volume
Delivery Points
44 MG per Month 42 MG per Month 2 MG per Month'A
Each city's percentage of allocated unaccounted water loss shall then be determined on a
monthly basis by:
1. Multiplying the surface area designated for each citya in Section 4A by each city's
recorded actual water usagev to determine the product of the two factors; then
2. Adding up the products' for all of the Cities; then
3. Dividing the product of each city' by the total sum product°T for total Cities' to
determine each city's percentage of unaccounted water lossd; then
4. The unaccounted water loss assessed to each citye shall be determined by
multiplying the percentage allocated to each cityd by the total unaccounted water
loss volumeTA.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 3 of 1 I
As an example only:
Table B
Allocation of Unaccounted Water Losses Between Southlake, Keller and Wes lake
Delivery Average Interior Record Actual Product of % of Actual
Point Suiface Area of Water Usage at Two Variables Allocation
Pipeline to Each Each Cities Affecting Loss of Total a
Cities Delivery Metel Allocation Water Loss
Point'
Southlake
Peal son
Keller
Pearson
Westlake
Southlake
T.W King
Total
240,151
240,151
380,494
453,405
20 MG per
Month
12 MG per
Month
2 MG per
Month
8 MG per
Month
42 MG per
Month
4,803,200
2,881,812
760,988
3,627,240
12,073,240eT
39.78%
23.87%
6.30%
30.05%
100.00%
Unaccounted
Water Loss
Allocations
0.79 MG per
Month
0.48 MG per
Month
0.13 MG per
Month
0.60 MG per
Month
2.0 MG per
Month"
Keller and Westlake agree that the treated water delivered to meters numbered 3,
4, 5 and 6 under this Agreement will not be added to the treated water taken by each of
them pursuant to City of Fort Worth City Secietary Contact No.C-41100 and No.C-
41112. Keller and Westlake will continue to receive separate monthly bills and a
separate annual bill under Fort Worth City Secretary Contract No. C-41100 and C-41112,
as well as monthly bills and an annual bill under this Agreement
6.
MAXIMUM HOUR, MAXIMUM DAY CHARGES,
The assessment of the maximum hour and the maximum day charges incurred at
meters numbered 1 and 2 shall be based on the volume at each city's meter numbered 3,
4, 5 or 6 during the same maximum hour and maximum day time period and shall be
determined as follows:
A. First, to determine each city's allocated percentage of maximum day and
maximum hour charges take each city's recorded actual water usage for the actual
maximum hour and maximum day and divide by the total volume of meters 3
and 4 on Exhibit "A"; and meters 5 and 6 once the meters have been connected
to the system; then
B Each city's allocated percentage as calculated above shall be multiplied by the
total maximum day and maximum hour charge incurred from meters 1 and 2 per
the Contracts.
C. The total annual payment foi water delivered to each city shall be based on the
annual and peak volumes delivered to each city during the Fiscal Year, as
determined by meters, flow recording devices or other approved methods, and as
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 4of11
provided in this Agreement. The October monthly payment for September's
usage shall contain any adjustments necessary to update the calculations as
necessary to recover the annual payment for the Customer's actual withdrawals
from the Fort Worth System (including Rate of Use Charges as defined in the
Contracts for Maximum Hour and Maximum Day Demands) for the Fiscal Year
just ended, during which the water usage occurred. hach city will be responsible
for its own portion of the settle -up amount.
D. This information shall not be used for annual billings made under City of Fort
Worth City Secretary Contracts No.C-41100, No. C-41110 and No. C-41112.
H; If any of the cities did not take water during prior year to the current billing year,
then the monthly maximum day and maximum hour charges foi the current billing
year will be based on the readings from the most recent year with reading.
F. For historical information and comparison, and solely for use under this
Agreement, Fort Worth and the Cities agree that the maximum day and maximum
hour volumes shall be:
Maximum Day Maximum Hour
Keller 4.97 MGD 5.95 MGD
Southlake 18.29 MGD 20 26 MGD
Westlake To be determined at the design stage of the future meter.
This information shall not be used for annual billings made under City of Fort Worth
City Secretary Contract No.C-41100 and No. C-41112.
7.
MONTHLY CALCULATION
A. The methodology as described in Section 3 and 4 have been derived from the
consultant's memorandum to Southlake, Kellei and Westlake dated April 25,
2010 and attached as Exhibit "B". By executing this Agreement, the Cities
acknowledge that they have had their respective utility personnel or consultants
review Exhibit "B' and that they fully understand the methodology and agree to
the calculations demonstrated therein for the purpose of billing treated water
delivered to Keller, Southlake and Westlake.
B. Except as provided in Section 5, monthly billing for water volume will be based
on meter readings for total volume from meters numbered 3, 4, 5 and 6.
C. Furthermore attached hereto as Exhibit "C" is an example of a calculation for
billing the total water, including the maximum day and the maximum hour
charges, to each city on a monthly basis under this Agreement
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 5 of 11
8.
METER UPGRADES
The meters, together with the meter vaults, designated as Meter 3 and Meter 4 on
Exhibit "A" attached hereto shall each be upgraded. The plans and design for the meters
and the meter vaults are subject to the written approval of Fort Worth. The existing
meters shall be replaced with transit time meters and provision shall be made for back-up
power to the meters. Further, fire hydrants will be installed on the downstream side of
the meters. Keller and Southlake entered into a contract dated January 20, 2004 detailing
the division of costs associated with the required meter installation and vault
construction, a copy of which is attached hereto as Exhibit "D", same being Southlake
City Contract No. 04-15. Exhibit "D" is solely attached for the purpose of cost sharing
related to the upgraded meters between the Cities and for no other purpose.
9.
FUTURE ANTICIPATED METERS
It is anticipated that Southlake will construct a new meter shown on Exhibit "A"
as meter number 5 and that Westlake will construct a new meter shown on Exhibit "A"
as meter number 6. Prior to construction, each city shall submit plans and design for the
meters to Fort Worth for review and written approval of Fort Worth Each meter shall
comply with Fort Worth standards as then in effect. Prior to delivery of water to either
meter, each meter must be inspected and approved by Fort Worth and such inspection
fees shall be the sole responsibility of the owner city. The inspection fee shall be the
same as the fee charged to Fort Worth developers.
10.
OPERATION AND MAINTENANCE OF METERS
Fort Worth shall be responsible for operating and maintaining meters numbered 3,
4, 5 and 6. In that regard, Fort Worth may either contract for any necessary repairs or
perform the work with Fort Worth employees. The Cities agree to reimburse Fort Worth
for the total cost of any required maintenance or repair. Repair and maintenance of each
meter numbered 3 4, 5 or 6 will be paid by the owner city. The Cities shall pay for the
costs of meter calibration, metei maintenance, power to operate the meters, any upgrades
to the remote telemetry unit or meters and station, and any additional expenses for meter
reading, testing and calibrations of the meters with the costs being divided as stated
immediately above.
Calibration of meters 1 and 2 only, shall be performed as described in Section 4 of
the Contracts.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 6 of 11
11.
OPERATION OF DELIVERY SYSTEM
"Delivery System" shall mean the system of water mains that delivers treated
water to the Cities, as represented by Imes A, B, C, D, E, and F on Exhibit "A". Fort
Worth shall never have any duty to operate and maintain the Delivery System. The Cities
in accordance with whatever contracts exist between them shall be responsible to operate
and maintain the Delivery System.
12.
PROHIBITION OF EXTENSIONS
The Cities shall not permit any extensions or connections to the Delivery System
without a written amendment to this Agreement.
13.
MEDIATION OF DISPUTES
If any dispute arises hereunder between the parties, such dispute shall be resolved
in accordance with Section 22.6 of the Contracts.
14
EASEMENTS/All-WEATHER ACCESS
Each city, as appropriate, shall dedicate an easement to Fort Worth in order for
Fort Worth to have access to the meters numbered 3, 4, 5 and 6, as well as the meter
vaults. In addition, the Cities shall provide an all-weather access to the meter vaults.
15.
CONTRACTS CONTROLLING
To the extent that this Agreement modifies either City of Fort Worth City
Secretary Contacts No. C-41100, No. C-41110 and/or No. C-41112, this Agreement shall
control In all other matters, the provisions of City of Fort Worth City Secretary Contacts
No. C-41100, C-41110 and C-41112 shall take precedence.
16.
TERMINATION
This Agreement may be terminated by Fort Worth at any time in its sole
discretion by giving written notice to the Cities at least sixty (60) days prior to the date of
termination. The Cities may terminate this Agreement only by mutual agreement
between the three of the cities and then by the Cities giving written notice to Fort Worth
at least sixty (60) days prior to the date of termination.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 7 of 11
17.
EFFECT OF TERMINATION
If this Agreement is terminated, the Cities shall revert to the status and contractual
relations they were in effect prior to the execution of this Agreement.
18
THIRD PARTY BENEFICIARIES
The provisions and conditions of this Agreement are solely for the benefit of the
parties hereto, and any of their lawful assigns or successors and are not intended to create
any rights, contractual or otherwise, to any other person or entity.
19.
NOTICES
All written notices called for or required by this Agreement shall be sufficient if
forwarded to the parties below, or such other pasty or address as either party designates in
writing, by certified mail, postage prepaid, or by hand delivery:
City of Fort Worth:
City of Fort Worth
Attn: City Manager
1000 Throckmorton
Fort Worth, TX 76102
City of Keller
City of Keller
Attn: City Manager
P.O. Box 770
Keller, Texas 76244
with a copy to:
with a copy to:
City of Fort Worth
Attn: Water Director
P. O. Box 870
Fort Worth, Texas 76102
City of Keller
Public Works Director
P.O. Box 770
Keller, Texas 76244
Hand Delivery: 1100 Bear Creek Parkway, Keller, Texas 76248
City of Southlake
City of Southlake
Attn City Manager
1400 Main Street, Suite 460
Southlake, Texas 76092
with a copy to:
City of Southlake
Attn: Public Works Director
1400 Main Street, Suite 230
Southlake, Texas 76092
BILLING AGREEMENT
KELLER— SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 8 of 11
Town of Westlake
Town of Westlake
Attn: Town Manager
3 Village Circle Ste. 202
Westlake, Texas 76262
with a copy to:
20.
FORCE MAJEURE
Town of Westlake
Attn Public Works Director
3 Village Circle Ste. 202
Westlake, Texas 76262
If, by reason of Force Majeure as hereinafter defined, any party hereto shall be
rendered wholly or partially unable to carry out its obligations under this Agreement, then
such party shall give written notice of the particulais of such Foice Majeure to the other
parties within a reasonable time after the occurrence thereof. The obligations of the party
giving such notice, to the extent affected by such Force Majeure, shall be suspended
during the continuance of the inability claimed and for no longer period, and any such
party shall be in good faith exercise its best efforts to remove and overcome such
inability
The term "Force Majeure" as utilized herein shall mean and refer to acts of God;
strikes, lockouts or other industrial disturbances; acts of public enemies; orders of any
kind of the government of the United States, the State of Texas, or any other civil or
military authority, insurrections; riots; epidemics; landslides; earthquakes lightning;
fires; hurricanes, storms; floods; washouts; or other natural disasters; arrest; restraint of
government and people; civil disturbances; explosions breakage or accidents to
machinery, pipelines or canals; or other causes not reasonably within the control of the
party claiming such inability. Force Majeure shall not excuse the obligation of and party
hereto to pay for treated water service provided under this Agreement.
21.
NO JOINT VENTURE, PARTNERSHIP, AGENCY
This Agreement will not be construed in any form or manner to establish a
partnership, joint venture o1 agency, express or implied, nor any employer -employee
borrowed servant or joint enterprise relationship by and among the parties I- ach party
shall be an independent contractor and shall be responsible at all times for directing its
employees in the course of their duties. 1-4;ach party shall be responsible at all times for
directing its employees in the course of their duties.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 9 of 11
22.
CONTRACT CONSTRUCTION
The parties acknowledge that each party and, if it so chooses, its counsel have
reviewed and revised this Agreement and that the normal rules 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 hereto.
23.
GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement, none of the parties hereto
waive or surrender any of it governmental powers.
24.
FIRST BILLING DATE
The first billing date under the terms and conditions of this Agreement shall be sixty (60)
days from the effective date of this contract.
APPROVAL RECOMMENDED:
S. Frank Crumb, P. E.
Water Department Director
Approved as to Form and Legality:
( II
/VA <eh
Christa R. Reynolds
Sr. Assistant City Attorney
445L0
Co tract Authorizatioa
J1411°
Date
CITY OF FORT WORTH
'744e-fetal—
Fernando Costa
Assistant City Manager
Attest
M aVAA
Marty Hen x
City Secretary
Date:
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BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COPY
Page 10 of 11
APPROVAL RECOMMENDED:
r- 1
Greg ick ns, E.
Pub ' c Works Director
APPROVAL RECOMMENDED:
7Th
Robert H. Price, P.E., FNSPE
Public Works Director
Fo • am Legality:
City Attorney
APPROVAL RECOMMENDED:
nfll'AA
Jan Od Greenwood, Public Works Director
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE-EXECUTION COP\
Page 11of11
CITY OF KELLER
By: ). k511/
Dan O'Leary
City Mana
Attest:
ice
City (ecretaiy
Date:�a n ua 1y c9c. 11
CITY OF SOUTHLAKE
City Manager
Attest:
Lhia
InteginiCity Secretary
Date: /-2D - r l
OFFICIAL RECORD
CITY SECRETARY
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SCALE IN FEET
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4055 International Plaza,
Fort Worth, Texas 76109 0 817-735-7300a fax t317-735-7491
TO: Bob Price, Director of Public Works, City of Southlake; Chuck Kendrick,
Deputy Director of Public Works, City of Southlake; Greg Dickens, Director of
Public Works, City of Keller; Jarrod Greenwood, Director of Public Works,
City of Westlake
CC: Ron King, Freese and Nichols
FROM: Thomas Haster, Freese and Nichols
SUBJECT Allocation of Unaccounted Water Losses and Maximum Day/Maximum Hour
Peaking Charges for Southlake/Keller/Westlake Water Supply System
DATE: April 25th, 2010
A. Allocation of Unaccounted Water Losses
We have reviewed various options to allocate the unaccounted water losses in the Southlake/Keller
and future Westlake Water Supply System. The water Toss allocation needs to be flexible enough to
facilitate the addition of a future Westlake Delivery Point as well as being as equitable as possible to
allow the losses to be shared between the participating cities. The looping of the water supply lines
between the City of Fort Worth Caylor Northside II Water Supply and the City of Fort Worth North
Beach Eastside II Water Supply adds an additional level of complexity in the water loss allocation to
ensure that each wholesale customer equitably share in the future unaccounted water losses.
The two variables that should be reflected in the water losses allocation are A) flow used by each
wholesale customer and B) surface area of water supply pipeline required to deliver flow to each
wholesale customer delivery point. If a wholesale customer is not taking any flow during the monthly
billing period they should not have to participate in paying the unaccounted water losses If a
wholesale customer delivery point is located closer to Fort Worth's billing meters than other wholesale
customers take points than it is expected that their opportunity for experiencing water losses will be
Tess than others at more remote locations. Therefore, it is with these two variables that Freese and
Nichols has developed the following draft methodology to allocate the unaccounted water losses as
shown below.
The first step in this methodology is to calculate the surface area (pipeline length multiplied by the
pipeline parameter) of each pipeline section. These various pipeline sections are shown in the
attached Figure 1 as: Line 'A" = 36"/30" water transmission line from North Beach (Meter #2) to the
Southlake Pearson Delivery Point (Meter #3), Line "B" = 30-inch water transmission line from
Southlake Pearson Delivery Point (Meter #3) to Keller Pearson Delivery Point (Meter #4) Line "C" _
42-inch water transmission line from Caylor (Meter #1) to the split of the 30-inch water lines at
Pearson Road, Line "D" = 30-inch water transmission I'ne from Keller Pearson Delivery Point (Meter
#4) to the 30-inch water transmission line on Florence Road, Line "E" = 30-inch water transmission
line from Pearson Road to the future Westlake Delivery Point (Meter #6) and Line "F" = 30-inch water
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 2 of 4
transmission line from the future Westlake Delivery Point (Meter #6) to the Southlake T.W. King
Delivery Point (Meter #5).
The following surface area for each pipeline section identified above is; Line "A" = 158,282 square feet,
Line "B' is 11,437 square feet, Line IC' = 278,949 square feet, Line "D" = 31,635 square feet, Line ' E" _
140,342 square feet and Line "F" = 72,911 square feet.
The next step in the analysis is to estimate the average pipeline surface area used by each entity based
on the various flow paths available to convey flow to each delivery point. For the Southlake Pearson
Delivery Point there are two options to receive flow, Fort Worth Northside II Caylor Tank through the
42-inch line and Fort Worth North Beach Tank through the 36-inch/30-inch line. The average pipeline
surface area used to deliver flow to the Southlake Pearson Delivery Point is therefore the average of
the surface area of Line "A" plus the surface area of Line "B", Line "C" and Line ' D' added together.
The resulting average surface area of pipeline that can deliver flow to the Southlake Pearson Delivery
Point is 240,151 square feet. Using this similar process, the resulting average surface area of pipeline
that can deliver flow to the Keller Pearson Delivery Point is also 240,151 square feet. The resulting
average surface area of pipeline that can deliver flow to the future anticipated Westlake Delivery Point
is 380,494 square feet. The resulting average surface area of pipeline to can deliver flow the Southlake
T.W. King Delivery Point is 453,405 square feet.
Once the average surface area to each delivery point is calculated, the next step is to record the water
usage taken by each delivery point. For the purpose of this calculation let's assume the following
average delivery rates are measured at each delivery point; Southlake Pearson uses 20 MGD, Keller
Pearson uses 12 MGD, Westlake uses 2 MGD and Southlake T.W. King uses 8 MGD. The actual usage
will be measured on a monthly basis to allow these water loss calculation to be represented of the
actual usage of the water supply system by each entity participating.
Based on these projected delivery rates the product of these two water Toss variables would be the
following Southlake Pearson Site Delivery Rate (20 MGD) multiplied by Average Surface Area of
Facilities (240,151 square feet) Used to Deliver this flow yielding in a product of 4,803,020. If the sum
of the Wholesale Customer Meters read 42 MGD as shown in the above example and the combined
Fort Worth billing meters of Caylor and North Beach read 44 MGD, then the unaccounted water Toss
allocation would be 2 MGD as shown in Table 1 below.
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 3 of 4
Table 1
Total Unaccounted Water Loss Calculation for Southlake/Keller and Westlake
Total Fort Worth Billing Meters Total Sum of the Flow Measured Total Unaccounted Water Losses
Flow Measured at the Wholesale Delivery Points Between Billing Meters and
Wholesale Customet Meters
44 MGD 42 MGD 2 MGD
Once the total unaccounted water loss is calculated, it can be allocated to each wholesale customer
delivery point using the average surface area of pipeline facilities used to convey flow to each
wholesale customer delivery point and the average delivery rate during the billing period as shown
below in Table 2.
Table 2
Allocation of Unaccounted Water Losses Between Southlake, Keller and Westlake
Delivery Average Surface Average Product of Two % of Actual
Point Area of Pipeline to Delivery Rate to Variables Allocation of Unaccounted
Each Customer Each Customer Affecting Loss Total Water Water Loss
Delivery Point Delivery Point Allocation Loss Allocation
Southlake
Peai son
Keller
Pearson
240,151
240,151
Westlake 380,494
Southlake 453,405
T.W. King
Total
20 MGD 4,803,200 39.78% 0.79 MGD
12 MGD 2,881,812 23.87% 0.48 MGD
2 MGD 760,988 6.30% 0.13 MGD
8 MGD 3,627,240 30.05% 0.60 MGD
42 MGD 12,073,240 100.00% 2.0 MGD
13. Allocation of Maximum Day and Maximum Hour Peaking Charges
Unlike the allocation of unaccounted water losses, the relative location of various wholesale delivery
points for Keller, Southlake and Westlake from Fort Worth has no impact on how much maximum day
and maximum hour peaking occurs with each customer city. Therefore, it is not recommended that
this same procedure be applied for these peaking charges.
Historically the maximum day and maximum hour peaking charges of the combined Caylor and North
Beach meter readings has been distributed equally between customer cities based on the respective
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 4 of 4
volume of water used by each customer city. It is recommended that this same procedure be
maintained going forward as a fair and equitable methodology for allocating these peaking charges as
the T W. King Water Supply Line is put into service and additional delivery points for Southlake and
Westlake are added.
Please let me know if you agree with this amended methodology and if the allocation is acceptable to
each of the wholesale customer cities. If this approach is acceptable we will add signature blocks for
each wholesale customer city to sign and then forward to the City of Fort Worth for amendment to
your existing wholesale contracts.
Flow tram various meters
of 377 (MG)
Water Wholesale Custom,
Readings from Caylor
Ahavista meters that were
bdlud to 5
Southlake Pearson Meter
Southlake TW Klnit Meter
Koller Pearson
Westlake Precinct Llne
TOTAL
Delivery Point
Southlake Pearson'
Southlake TW King
""Kollar Pearson
**Westlake future Prodnct
Uno-
TOTAL
Total Ft Worth Alta
Vista and Caylor(2'
& 16")
757
MAX DAY
MGD
25,247
8,212
6.797
8.347
1.831
75 747
Keller Pearson
33
Percent o
MAX DAY us
33%
27%
33%
7%
100%%
Exhibit C
Allocation off Unaccounted Water Losses Between Southlake, Keller and Westlake from the Caylor and Altavista Wholesale Meters
Example using August 2009 Usage plus assumed usage forT'W King and future Westlake Precinct Line Meters
11/16/2010
Southlake
Pearson
412
"Westlak
Future Precin 'Southlake
Line TW King
31 186
Percent of
MAX HOUR MAX HOUR use
MGD 9)
28.439
9.8571
6.495
10,215
1.872
28.4391
Avg. Surface Area of total Volume at Product of Two
Ptpelineto Each Each Customer Variables
Customer Delivery Meter Location Affecting Loss
Point (MG) Allocation
240,151
453,405
240,15I
a30,494
Total Monthly BIII for Each Customer under this
contract
Southlake 5
Keller " $
Westlake.'" $
Total $
1,149,984.42.
103,071.99
67,203.65
1,320,250.08
412.17
186
33.37
98,983,998
84,333.330
8,012,878
31 11,795,314
662.54 203,125,520
35%
23%
365$
7%
100%
Allocation of
Total Water
Loss (%)
48,73%
4152%
3.94%
5.81%
100.00%
'Actual September 2009 Usage
'Projected Usage utilized for example
"Keller will receive a separate bat for the meters welder City Secretary Contract No. 26097
"Keller will receive a separate bill for the meters uonder Ciry Secretary Contract No, 24781
""There will be a settle -up at the end of each year,
Avg. vol.
MGD
10.241
Actual
Unnacountc
d Water
Loss (%)
46
39
4
5
94
Subtotal Custame
meter
662
Max Day Excess
Avg Day
MGD
15.01
Unaccounted fo
Water for the
month
95%
Max Hour excess
Max Dav
MGD
Total Volume plus
Anaccounted
Water Loss for
each Customer's
meter east of 377
(MG)
458 5
225 $
37 $
36 $
757 $
3.19
Volume/Kgal
$1.5650
717,011
352,407
58,040
57,091
1,184,549
Max Day Excess Avg
Day ($103,934 per
MGD for 2010 rate)"'"
51,559,634
Rate of Use (Max Day
Excess Avg Day and
Max Hour excess Max
Day from Caylor &
Altavista meters
(Monthly Charge))•`"
$
S
$
$
44,264.75
36,301.68
45,031.99
Customer City Share of
MAX DAY charge based
on percent use for the
Max Dav
$
5507,296
5419,885
$515,636
$116.817
51.559,634
Total Monthly Calculation
for Each CustomerMeter
under this Contract"
$ 761,275.75
$ 388,708.68
5 103,071.99
10,112.55 $ 67,203.65
135.711,08 S 1,320,260.08
Max Hr Excess Max Day
(521,585 per MGD for
2010 rate)'"
$
568,899
Customer City Share of
MAX HOUR charge based))
on percent use for the
Max Day
$
$23,881
515,735
524,748
54.535
563,899
SUM of MAX DAY & MA)
HOUR charges for each
Customer City Meter SOUTHLAKE TOTAL
$I 5
51,628,533
5531,177
5435,&20
5540.384
$121,352
$1,528,533
5966,797
Exhibit
OFFLCIAL
AGREEMENT FOR FUNDING, CONSTRUCTION AND MAINTENANCE
OF WATER TRANSMISSION LINES
BETWEEN
THE CITY OF SOUTHLAKE, TEXAS
AND
THE CITY OF KELLER, TEXAS
Dated as of a vt u a rd 9-0 , 2004.
INTERLOCAL AGREEMENT FOR
FUNDING, CONSTRUCTION AND MAINTENANCE
OF WATER TRANSMISSION LINES
STATE OF TEXAS
§
COUNTY OFTARRANT
This Interlocal Agreement for the Funding, Construction and Maintenance of
Water Transmission Lines (this "Agreement") is entered into as of the day
of avtuct,r , 2004, between the City of Southlake, Texas ("Southlake") and
the City of Keller, texas (' Keller")
RECITALS
1. On May 14 1984, Southlake and Keller entered into a contract for the
financing, construction, and maintenance of a water transmission line from the City of
Fort Worth to the Pearson Pump Station and for the sale of treated water to Keller (the
'1984 Contract'); and
2. Both Keller and Southlake own, operate and maintain a water distribution
system, and each furnishes water service to the customers within its respective
boundaries and
3. Southlake and Keller each have a contract with the City of Fort Worth,
Texas to purchase wholesale treated water; and
4. Southlake and Keller desire to adopt a new contract to provide for the
construction of new water supply facilities to meet demand, to provide for the operation
and maintenance of existing and new water supply facilities, and to incorporate changes
as a result of amendment to the Cities' contracts with the City of Fort Worth, including
an amendment whereby Keller shall purchase water directly from Fort Worth; and
5. Southlake and Keller have determined it to be in the best interest of their
citizens in their respective cities to fund and construct new water supply facilities,
including a portion of the 48 inch water line Fort Worth intends to construct from the
Harmon Road tank in Fort Worth to the Westport Parkway site; and
6. Southlake intends to construct and maintain a 42" water line from the
Caylor Water Tank in the City of Fort Worth to Pearson Lane, and a 30" water line from
Pearson Lane and Florence Road intersection to the Keller Pearson Lane Pump Station
and the Southlake Pearson Lane Pump Station, the costs of which, under the terms of
this Agreement, shall be funded in part by Keller and shall be jointly used for the
transmission of water to both Southlake and Keller; and
7. Sections 402.001 and 402.075 of the Texas Local Government Code, and
Chapter 791 of the Texas Government Code authorize Southlake and Keller to enter
into this Agreement;
NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, Southlake and Keller agree as follows
1. PURPOSE
1.1 The purpose of this Agreement is to provide for the joint ownership,
construction, operation and maintenance of water supply facilities.
2. DEFINITIONS.
2.1 Capital Improvements means any of the following facilities which
provide utility services and benefits common to all customers and that have a life
expectancy of three or more years, whether such capital improvements are located
within the jurisdictional limits of Southlake or Keller: water treatment facilities, metering
facilities, control systems and appurtenances, storage facilities pumping facilities and
all water transmission mains sixteen inches (16") and greater in diameter.
2.2 Construction Costs means the costs of design, legal, consulting
and engineering fees, permitting, land and easement acquisition and construction costs
for any General Benefit Facility or Facility Expansion, including water treatment
facilities, metering facilities, control systems, and appurtenances, pumping facilities and
water transmission mains, and the cost of capital
2.3 Cost of Capital means all costs and expenses, debt service
principal, interest and other common debt service costs, included like fees, closing costs,
engineering fees, bond costs and legal expenses, and lender or bank fees associated
with each such financing.
2.4 Director is the Director of Public Works for the City of Southlake or
his or her designated representative.
2.5 Existing General Benefit Facihtles are the 36 inch and 30 inch
water pipelines constructed pursuant to the 1984 Contract which have a total capacity of
20 MGD.
2.6 Facility Expansion is the expansion of the capacity of an existing
facility that serves the same function as an otherwise necessary new capital
improvement, in order that the existing facility may serve new development. The term
does not include the repair maintenance, modernization, or an expansion of an existing
facility to better serve existing development.
2.7 Fiscal Year is the fiscal year of Southlake from October 1 through
September 30.
2.8 Fort Worth General Benefit Facilities are general benefit facilities
constructed by Fort Worth under the Fort Worth Contract.
2.9 General Benefit Facilities are water facilities shared by Southlake
and Keller (other than Fort Worth General Benefit Facilities) which provide utility
services and benefits common to customers of both cities which include water treatment
facilities metering facilities, control systems and appurtenances storage facilities
pumping facilities and all water transmission mains that are sixteen inches (16") and
greater in diameter.
system.
2.10 Keller System is the Keller water treatment and distribution
2.11 MGD is million gallons per day.
2 12 Operation and Maintenance Costs are the costs incurred to
operate and maintain the Existing General Benefit Facilities, the Caylor/Pearson Line
and the Pearson Pump Station Line, and related Capital Improvements including, but
not limited to, direct expenses, personnel and personnel related expenditures, utilities,
and all other costs required to operate and maintain the foregoing facilities.
2.13 Southlake System is the Southlake water treatment and
distribution system.
2 14 System Cost is the operating expense and capital related cost
incurred by Southlake pursuant to the provision of water treatment and transmission to
Keller's and Southlake's water customers.
3. CONSTRUCTION OF GENERAL BENEFIT FACILITIES.
3.1 Facilities to be Constructed. Keller agrees to pay Southlake the
Construction Costs for the following General Benefit Facilities as detailed below:
A. 42-inch pipeline from the Caylor Water Tank on Caylor Lane
to the intersection of Florence and Pearson Lane (the "Caylor/Pearson Line"), as
depicted on Exhibit "A" attached hereto. The pipeline is designed for a capacity of 29
MGD with Southlake to bear 75% of the cost of the line and Keller to bear 25%.
B. 30-inch pipeline from the intersection of Pearson Lane and
Florence Lane to the Pearson Lane Pump Station (the "Pearson Pump Station Line"), as
depicted on Exhibit "A" attached hereto The pipeline is designed for a capacity of 16 5
MGD with Southlake to bear 58% of the cost of the line and Keller to bear 42%; and
C. 48-inch pipeline from the Harmon Road Elevated Tank to
Westport Parkway (the "Northside 2-11 Line"), as depicted on Exhibit "B" attached
hereto. The pipeline, to be constructed by Fort Worth, is designed for a capacity of 90
MGD. Southlake's and Keller's collective share of the capacity in said line is 29 MGD,
with Southlake's share being 22 MGD, or 75% and Keller's share being seven (7) MGD
or 25%, as billed by Fort Worth.
3.2 Construction Costs,
A. The estimated cost to construct the Caylor/Pearson Line
(3.1.A) and the Pearson Pump Station Line (3.1.B) is $7,225,000.
B. The estimated cost of Southlake's and Keller's collective
share to construct the Northside 2-11 Line (3.1.C.) is estimated to be $1,800,000.
C. Keller shall pay Southlake for its estimated proportionate
share of the Construction Costs of the Caylor/Pearson Line the Pearson Pump Station
Line, and the Northside 2-11 Line (as outlined in Section 3 above) within 30 days of the
date of publication of the Notice to Bidders for the construction contracts for the
Caylor/Pearson Line and the Pearson Pump Station Line Southlake agrees to give
Keller notice 90 days before the date of publication of the Nonce to Bidders for the
construction contract. Prior to any and all notices and payments referred to in this
Section, Keller and Southlake shall review all project construction cost estimates to
ensure general compliance with the estimated costs in Subsections 3.1. A. and 3.1. B
above.
D Upon completion of the construction of lines 3.1.A, 3 1 B
and 3.1.C., Keller s costs shall be recalculated using the actual costs Southlake incurred
for construction of the Caylor/Pearson Line (3.1.A.) and the Pearson Pump Station Line
(3.1.B.), and the actual costs billed by Fort Worth for the Northside 2-11 Line (3 1.C),
with Keller's obligation limited to all prorated actual cost up to the Keller Pearson Lane
Pump Station with Keller's participation in the review of all construction costs and
change orders after the award of the original contract.
E Management Fee — Keller shall pay Southlake a construction
management fee of one percent of the Construction Cost of these facilities The fee
shall be adjusted upon the completion of construction to reflect actual construction
costs and shall be payable upon execution of the construction contract for the new
General Benefit Facilities.
F. Should Southlake ever terminate this Agreement or refuse to
enter into a Contract in the future for the transmission of water through the General
Benefit Facilities (Lines) Southlake shall pay Keller for the depreciated value of the
pipelines. It is agreed that the General Benefit Facilities lines will be fully depreciated
after 30 years.
4. OPERATION AND MAINTENANCE COSTS OF GENERAL BENEFIT
FACILITIES
4.1 Southlake and Keller agree to share the Operation and
Maintenance costs of the General Benefit Facilities as follows: Southlake shall pay 75
percent of the operation and maintenance costs of the Caylor/Pearson Line (3.1.A.),
and the Pearson Pump Station Line (3.1.B.) and 50 percent of the operation and
maintenance costs of the Existing General Benefit Facilities. Keller agrees to pay 25
percent of the operation and maintenance costs of the Caylor/Pearson Line (3.1.A.) and
the Pearson Pump Station Line (3 1 B) and 50 percent of the Operation and
Maintenance costs of the Existing General Benefit Facilities Based upon the foregoing,
Keller agrees to pay Southlake for 17/49ths of the costs of annual operation and
maintenance of the foregoing General Benefit Facilities. The 17/49th s is based upon a
maximum capacity of 49 MGD with 10 MGD capacity allocated to Keller for existing
General Benefit Facilities and 7 MGD capacity allocated to Keller on the Caylor/Pearson
Line and the Pearson Pump Station Line. System water losses shall be borne by the
parties according to their respective reserved capacities. System water losses shall be
determined by calculating the difference between the amount of water measured from
the meter readings at the Beach Street and Caylor Lane meters and the amount of
water measured from the meter readings at the Keller Pearson Lane and the Southlake
Pearson meters.
4.2 Southlake shall bill Keller monthly an estimated amount as set forth
in Section 4.1 for the costs for operation and maintenance of the Existing General
Benefit Facilities and the Caylor/Pearson Line and the Pearson Pump Station Line,
Each October, Southlake shall calculate the annual System Costs of the General
Benefit Facilities and use these costs to calculate Keller's proportionate share of the
costs. Southlake shall bill Keller for the difference in the actual costs and the amount
Keller has paid for its share of Operating and Maintenance Costs for the previous 12
months If the actual cost of Keller's proportionate share is less than the amount that
Keller has paid over the previous 12 months, Keller shall be entitled to a credit on its
next monthly payment The monthly charges for Operation and Maintenance Costs for
the General Benefit Facilities for the next 12 months shall be determined by the annual
costs divided by 12. The October bill for September usage shall reflect any necessary
annual adjustments due to actual costs.
4.3 Keller shall pay for its obligations hereunder as follows: All such
bills shall be due and payable by Keller within 20 calendar days from the billing date;
provide however, in the event that Keller submits to Southlake within 20 calendar days a
legitimate written dispute of the amount billed detailing the reason for the dispute, the
bill shall not be considered late until 45 days from the billing date. The undisputed
portion of the bill shall be due within 20 calendar days from the billing date The bills will
show current charges, as well as past -due charges. if any. Past -due charges shall be
the total amount unpaid from all prior billings as of the current billing date. A late fee of
five percent of the total billing shall be added to payments made after the due date.
Payments received by Southlake shall first be applied to the past -due charges, if any,
and thereafter to the current charges.
4.4 The parties hereto agree that services obtained pursuant to this
Agreement are essential and necessary to the operation of Keller's and Southlake's
waterworks facilities and that all payments made by Keller and Southlake hereunder
shall constitute reasonable and necessary operating expenses of Keller's and
Southlake's waterworks and wastewater systems within the meaning of Chapter 1502,
Texas Government Code, and the provisions of any and all ordinances of Keller and
Southlake authorizing the issuance of any long term debt of Keller and Southlake which
are payable from its waterworks and wastewater systems.
4.5 Keller agrees, throughout the term of this Agreement, to fix utility
rates and collect such fees and charges for water service to be supplied to its
customers as will produce revenues in an amount equal to at least: (i) all of operation
and maintenance expenses of its water system, including specifically its payments
under this Agreement; and (ii) all other amounts as required by law and the provisions
of the ordinances or resolutions authorizing its long term debt or other obligations now
or hereafter outstanding, including the amounts required to pay all principal of and
interest on such bonds and other obligations.
4.6 Keller understands that Southlake may annually revise the utility
rates, fees and charges charged to cover all reasonable, actual and expected operation
and maintenance costs. Any allocable operation and maintenance cost adjustment rate
increase shall be based upon a rate study performed or obtained by Southlake during
October 1 and December 30 of the preceding year, with adjustments due as of January
1 of the following year
4.7 If Keller disputes a bill and is unable to resolve the difference
informally, Keller shall notify the Director in writing. If the Director and Keller are unable
to resolve the disputed bill agreement on the bill will be determined by third party
mediation, as hereinafter provided Dispute of a bill shall not be grounds for non-
payment In the event a payment is not paid as specified in this Agreement, the late fee
provided in Section 4. 6 shall be imposed. In the event that a billing adjustment is
agreed upon or established by mediation the amount found to be incorrect will be
adjusted in accordance therewith to Keller's account.
4.8 The parties agree that one-half of the balance of funds, if any, in
the joint maintenance account established pursuant to the 1984 Contract shall be
credited towards Keller's obligations under this Section.
5. EFFECTIVE DATE AND TERM.
5.1 The effective date of this Agreement is the date the Agreement is
entered into as set forth in the introductory paragraph.
6. METERING AND BILLING SERVICES
6.1 Keller and Southlake are constructing meter stations at their
respective metering points that meet the operational specifications of the City of Ft.
Worth that will accomplish metering for wholesale water consumptions. These metering
stations shall be turned over to the City of Ft. Worth for ownership, maintenance and
operation. The City of Ft Worth shall read the meters monthly and submit a water bill to
the City of Keller and Southlake representing their respective water consumptions. Both
cities agree that payment terms for water Toss will be similar for both cities and shall be
included in the revised water purchase agreement with the City of Ft. Worth.
7. RIGHTS -OF -WAY.
7.1 Each party shall grant, without charge to the other party, such
easements and rights -of -way along public highways or other property owned by such
party, as requested by the other party, in order to construct or maintain water
transmission mains or facilities within the service area of either party to provide water to
Keller and to Southlake. Keller agrees to assist Southlake in acquiring any additional
easements or rights -of -way necessary for the construction or maintenance of these
facilities including exercising Keller's power of eminent domain, if necessary.
Southlake agrees to assist Keller in acquiring any additional easements or rights -of -way
necessary for the construction or maintenance of these facilities, including exercising
Southlake's power of eminent domain, if necessary.
7.2 All work done by or on behalf of Southlake under this Section will
be performed in accordance with specifications equal to those applying to work of a
similar nature performed within Southlake, but neither party hereto will be required to
restore the other's property to a condition equal to its original condition unless
otherwise mutually agreed in writing.
7.3 Southlake and Keller agree to coordinate the location of the mains
and/or facilities in the other's easements and rights -of -way in order to prevent further
conflicts insofar as it is reasonably practicable
8. TERMINATION
8.1 This Agreement may be terminated in whole or in part by the mutual
consent of Keller and Southlake. Notwithstanding anything contained herein to the
contrary, any breach by either party hereto to perform any of the duties or the
obligations assumed by such party hereunder or to faithfully keep and perform any of
the terms conditions and provisions hereof shall be cause for termination of this
Agreement by either party in the manner set forth in this Section Either party desiring
to terminate this agreement shall deliver to the other party 90 days prior written notice,
except that in the event of nonpayment, Southlake shall be required to give 30 days
prior notice, or the number of days notice which Southlake is required to give pursuant
to its contract with Fort Worth of its intention to so terminate this Agreement if Keller
fails to cure or adjust such breach, including in such notice a reasonable description of
the breach. If, within said notice period Keller shall fail or refuse to cure such material
breach to the satisfaction of Southlake, then and in such event, Southlake shall have
the right without any liability whatsoever on the part of Southlake to declare this
Agreement terminated. in the event of termination of this Agreement, all rights, powers,
and privileges of Keller hereunder shall cease and terminate and Keller shall make no
claim of any kind whatsoever against Southlake, its agents or representatives, by
reason of such termination or any action incident thereto. Southlake shall advise Keller
in writing immediately upon acceptance of the cure of any breach.
8.2 Upon termination of this Agreement Keller shall pay to Southlake
all amounts owed or accrued for the operation and maintenance of the General Benefit
Facilities through the date of termination.
9. LIABILITY FOR DAMAGES
9.1 Liabilities for damages arising from the treatment transportation
and delivery of water provided hereunder shall be borne by and remain with each city
according to its proportionate share of the costs as provided in Section 441. In the
event of a claim for capacity in the Existing General Benefit Facilities, Keller and
Southlake shall share equally in the responsibility for defending the claim, and for the
costs of any settlement or judgment resulting from the claim
i
9.2 Each party hereto agrees to save and hold the other party harmless
from all claims, demands and causes of action that may be asserted by anyone on
account of the quality, transportation and delivery while water is in the control of such
party. This covenant is not made for the benefit of any third party.
9.3 Contracts made and entered into by either Keller or Southlake for
the construction, reconstruction or repair of any Delivery Facility shall include the
requirement that the independent contractor(s) must provide adequate insurance
protecting both Keller and Southlake as co -insureds. Such contract must also provide
that the independent contractor(s) agree to indemnify, hold harmless and defend both
Keller and Southlake against any and all suits or claims for damages of any nature
arising out of the performance of such contract
10. FORCE MAJEURE
10.1 If by any reason of force majeure, either party hereto shall be
rendered unable, wholly or in party, to carry out its obligations under this Agreement,
other than the obligation of the Keller to make payments required under the terms
hereof, then if such parties shall give notice and full particulars of such force majeure in
writing to the other party within a reasonable time after the occurrence of the event or
cause relied on, the obligation of the party giving such notice, so far as it is affected by
such force majeure, shall be suspended during the continuance of the inability then
claimed but for no longer period, and such party shall endeavor to remove or overcome
such inability with all reasonable dispatch.
10 2 The term "force majeure" as employed herein, shall mean acts of
God strikes, lockouts or other industrial disturbances, acts of public enemy, orders of
any kind of the government of the United States or the State of Texas, or any civil or
military authority, insurrection, riots, epidemics, landslides, lightning earthquake, fires,
hurricanes storms, floods washouts, arrests, restraints of government and people civil
disturbances explosions, breakage or accidents to machinery, pipelines or canals,
partial or entire failure of water supply, and inability on the part of Southlake to deliver
water hereunder or Keller to receive water hereunder on account of any other cause not
reasonably in the control of the party claiming such inability.
11. NOTICE
11.1 All notices, requests and communications under this Agreement
shall be given in writing, addressed to Southlake or Keller at their respective addresses
set forth below and either (i) hand delivered, (ii) sent by telecopy or a nationally
recognized overnight courier service, or (lil) mailed by registered or certified mail, return
receipt requested, postage prepaid.
To Keller:
City of Keller, Texas
P.O. Box 770
Keller, TX 76244
Attn: City Manager
To Southlake: City of Southlake
1400 Main Street Suite 460
Southlake, TX 76092
Attn City Manager
Any notice under or pursuant to this Agreement and given in
accordance with this Section shall be deemed received upon the earlier of: (1) actual
receipt, (2) if mailed, three (3) days after deposit in an official depository of the United
States Postal Service, and (4) if sent by a nationally recognized overnight courier
service, the day following the mailing. Any party may change its address for notice
purposes by sending the other party a notice of the new address.
12. MEDIATION.
12.1 Whenever any disputed matter is specifically authorized by this
Agreement to be determined by the use of an mediator, the following procedure is to be
followed. The party requesting that the dispute be settled by mediation shall serve on
the other party a request in writing that such matter be submitted to mediation. Keller
and Southlake shall mutually agree in writing on the selection of any mediator. Such
agreement shall be made within 10 days from the date that the request for mediation is
received. If an agreement is not reached on the selection of the impartial mediator on
or before the 10i" day after the date that notice is received, the Director shall
immediately request a list of seven qualified neutral mediators from the Federal
Mediation and Conciliation Service, or either's successor in function. Keller and the
Director may mutually agree on one of the seven mediators on the list to mediate the
dispute. If they do not agree within five working days after the receipt of the list, Keller
and the Director shalt alternate striking a name from the list and the name remaining
shall be the mediator. Keller and the Director shall mutually agree on a date for the
mediation hearing The decision of the mediator shall not be final, but shall be a
condition precedent to filing suit. All costs of mediation shall be considered an
Operation and Maintenance Cost Mediation shall take place in Tarrant County Texas.
13. INSPECTION AND AUDIT.
13.1 Each party hereto shall keep complete records and accounts
pertaining to this Agreement in accordance with State Law or for a minimum period of
five years. Each party shall at all times, upon notice, have the right at reasonable times
to examine and inspect said records and accounts during normal business hours; and
further, if required by any law, rule or regulation, make said records and accounts
available to federal and/or state auditors.
14. MISCELLANEOUS.
14.1 This Agreement is subject to all applicable federal and state laws
and any applicable permits, amendments orders, or regulations of any state or federal
governmental authority having or asserting junsdiction but nothing contained herein
shall be construed as a waiver of any right to question or contest any such law, order,
rule or regulation in any forum having jurisdiction.
14.2 Keller agrees to abide by any changes in this Agreement made
necessary by any new, amended, or revised state or federal regulation.
14.3 Upon prior notice by either party, any authorized employee or
representative of such party bearing identification shall notify the other party of need for
access to any premises located within the other party's service area or served by the
other party 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 The other party may elect to accompany the requesting party's
representative. To the extent permitted by law, the requesting party agrees to indemnify
the other party for any damage or injury to person or property caused by the negligence
of such duly authorized employee while such employee is in the course and scope of
his employment.
14.4 In addition to any other remedy as may be provided by law, this
agreement shall be specifically enforceable by the parties hereto. Venue for any action
shall be in Tarrant County, Texas.
14.5 It is agreed that, in the event any term or provision herein contained
is held to be invalid by any court of competent jurisdiction, the invalidity of such term or
provision shall in no way affect any other term or provision contained herein, further, this
Agreement shall then continue as if such invalid term or provision had not been
contained herein.
14 6 Keller may not assign this Agreement without the prior written
consent of Southlake. Southlake may not assign this Agreement without the prior
wntten consent of Keller.
15. INDEMNIFICATION.
15.1 To the extent permitted by law, Keller agrees to indemnify and save
and hold Southlake harmless from all claims, liabilities, demands, attorneys' fees and
causes of action arising from any negligent act or omission of Keller. This covenant is
not made for the benefit and shall not inure to the benefit of any third party.
15.2 To the extent permitted by law, Southlake agrees to indemnify and
save and hold Keller harmless from ail claims, liabilities, demands attorneys' fees and
causes of action arising from any negligent act or omission of Southlake. This covenant
is not made for the benefit and shall not inure to the benefit of any third party.
16. AMENDMENT.
16.1 Any agreement hereafter made between Southlake and Keller shall
be ineffective to modify, release or otherwise affect this Agreement, in whole or in part
unless such agreement is in writing and signed by both parties.
17. WAIVER
17.1 The failure of either party to this Agreement to complain of any
action, non -action, or default of the other party shall not constitute a waiver of any of
such party's rights under this Agreement.
17.2 Waiver by either party to this Agreement of any right for any default
of the other party shalt not constitute a waiver of any right for either party for a prior or
subsequent default of the same obligation or for any prior or subsequent default of any
other obligation.
17.3 No right or remedy of either party under this Agreement or
covenant, duty, or obligation of either party under this Agreement shall be deemed
waived by the other party to this Agreement unless such waiver is in writing and signed
by the waiving party.
18. PARTIES AND SUCCESSORS.
18.1 Subject to the limitations and conditions set forth elsewhere herein,
this Agreement shall bind and inure to the benefit of the respective heirs, legal
representatives, successors, and assigns of the parties hereto.
19. CAPTIONS.
19.1 The captions in this Agreement are inserted only as a matter of
convenience and for reference and they in no way define, limit, or describe the scope of
this Agreement or the intent of any provision hereof.
20. NUMBER AND GENDER.
20 1 All genders used in this Agreement shall include the other genders,
the singular shall include the plural, and the plural shall include the singular, whenever
and as often as may be appropriate.
21. ENTIRE AGREEMENT.
21.1 This Agreement, including all exhibits which may be attached hereto
(which exhibits are hereby incorporated herein and shall constitute a portion hereof
contains the entire agreement between Keller and Southlake with respect to the subject
matter hereof Further, the terms and provisions of this Agreement shall not be
construed against or in favor of a party hereto merely because such party or its counsel
is the drafter of this Agreement.
22. ATTORNEY'S FEES
22.1 In the event Southlake or Keller defaults in the performance of any
of the terms, agreements or conditions contained in this Agreement and the
enforcement of this Agreement, or any part thereof, is placed in the hands of any
attorney who files suit upon the same, the non -prevailing party shall pay the reasonable
attorneys fees expenses and costs of the prevailing party
EXECUTED as of the date hereinabove first set forth.
CITY OF SOUTHLAKE, TEXAS
•
7
Billy Campo I, City 11Onager
ATTES
Lori Farwell, City Secretarj p—:
Approved as to Form
Southiake City tutor ney
01 • '0::•
CITY OF KELLER, TEXAS
Dresher, City Manager
ATTEST:
Appro
L. Stanton Lo
City Attorney
EXHIBIT "A"
0 4000' 8000'
"= 4000'
n-
40410.tAK( P1
♦ OS
CNR(4Ga (1v —
CAnOR 5 MG TANK
OVERFLOW ELV 853
16"
-1^CPC.:SE;: '2 *A'EP _ fl- , .Nf
KELLER
30-
WESTLAKE
KELLER
TANK
ANU NUMN SI AT ION I3Q"
EXISTING WATER SUPPEw LINE
'Iowa
SOUTNLAKE
N TANK
MVO PUMP STATION
Q
SOUTHLAKE
LEG=
EXISTING SUPPLY WATER twee
EVSTMG rw NORTHSCCE II RATER LINE
EXISTING nor NDRTNSIDE II1 WATER LINO
PROPOSED WATER LINOS
PROPOSED LIRE Silt
TANK
PUMP
EXHIBIT A
SOUTHLAKE WATER
SUPPLY LINES
N
0 4000 8000'
t "=4000'
vs • TRGrtwo oil a
T.-
•
EXHIBIT "B"
•
CAYLOR 5 TAG TANK
OvERrtOW Elv 853
LEGEND
Ex/STING SDPPEY HATER UNE
EXISTING tW NORTNSIDE a WATER LINE
EXISTING EW NORZNS/OE XI WATER oh*
PROPOSED NATER LINES
PROPOSED LINE SIZE
TANx
PtIUP
EXHIBIT B
FORT WORTH WATER
TRANSMISSION IMPROVEMENTS
EXHIBIT "C"
Existing Connections Outside of the Keller System
None
Existing Connections Outside of the Southlake System
None
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RESOLUTION NO. 3028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY KELLER,
TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT
BETWEEN THE CITIES OF FORT WORTH, KELLER, SOUTHLAKE, AND
THE TOWN OF WESTLAKE, RELATED TO THE BILLING FOR TREATED
WATER.
WHEREAS, in accordance with a 1984 contract between
t he City of Keller and the City of
S outhlake, the cities jointly own and
o perate the Southlake-Keller Pump Station,
with the City of Southlake billing the City
o f Keller for the City of Fort Worth's
wholesale water delivered at this supply
point; and
WHEREAS, the
second
supply
Caylor
Cities of Keller and Southlake
wholesale 42-inch
line in 2005 from
Ground Storage and
t he existing Pearson Lane
built a
diameter water
the Fort Worth
Pump Station to
Pump Stations, and
WHEREAS, the Cities of Keller and Southlake desire to
h ave the City of Fort Worth bill each city
separately for water delivered at the
P earson Lane Pump Stations, and
WHEREAS,
t he Town of Westlake may have future
connections to the water supply lines owned
by the Cities of Keller and Southlake, and
desires to be billed separately by the City
of Fort Worth; and
WHEREAS, the City of Fort Worth is willing to
contract with all three (3) municipalities
t o furnish separate billing services, in
accordance with the terms and conditions set
f orth in said contract between the Cities of
Fort Worth, Keller, Southlake, and the Town
of Westlake, attached hereto as Exhibit "A".
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24 L 'unto
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF KELLER, TEXAS:
Section 1: THAT, the above findings are hereby found to
be true and correct are incorporated herein
in their entirety.
Section 2: THAT, the City Council of the City of
Keller, Texas hereby approves a contract
between the Cities of Fort Worth, Keller,
S outhlake, and the Town of Westlake, related
t o the billing for treated water, attached
h ereto as Exhibit "A"; and further
authorizes the City Manager to execute all
contact documents relating thereto on behalf
of the City of Keller, Texas.
AND IT IS SO RESOLVED
Passed by a vote of 5 to 0 on this the 4th day of
January, 2011.
ATTEST:
Sheila Stephens,
Approve
CITY OF KELLER, TEXAS
B Y : /. 7V-77/
/�.H. M'CGrail, Mayor
ity Secretary
and Legality:
City Attorney
2
TOWN OF WESTLAKE
RESOLUTION NO. 11-02
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE,
TEXAS, AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT
BETWEEN THE TOWN OF WESTLAKE AND THE CITIES OF FORT WORTH,
KELLER, SOUTHLAKE, AND THE TOWN OF WESTLAKE, RELATED TO THE
BILLING FOR TREATED WATER THROUGH THE FUTURE SOUTHLAKE 30"
WATERLINE ALONG FM 1938.
WHEREAS, the provision of water service throughout the Town of Westlake is of vital
importance to the health, safety, and welfare of the citizens of Westlake; and
WHEREAS, Westlake desires to secure and maintain an adequate potable water source
for the health, safety, and welfare of the citizens of Westlake; and
WHEREAS, Westlake desires to provide water services for its citizens; and
WHEREAS, the Town Council find that securing an additional metered water
connection provides sound infrastructure planning consistent with goals and objectives within
the adopted strategic plan; and
WHEREAS, the Town of Westlake's future metered connection to the water supply line
owned by the Cities of Keller and Southlake, and desires to be billed separately by the City of
Fort Worth and
WHEREAS, the City of Fort Worth is willing to contract with all three (3) municipalities
to furnish separate billing services, in accordance with the terms and conditions set forth in said
contract between the Cities of Fort Worth, Keller, Southlake, and the Town of Westlake,
attached hereto as Attachment 1.
WHEREAS, the Town Council finds that the passage of this Resolution is in the best
interest of the public.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF WESTLAKE, TEXAS:
SECTION 1 All matters stated in the Recitals above are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Resolution 11-02
Page 1 of 2
SECTION 2. The Town Council of the Town of Westlake hereby approves the contract
between the Town of Westlake and the Cities of Keller, Southlake, and Fort Worth, Texas
relating to billing for treated water through the future Southlake 30" waterline along FM 1938,
attached as Attachment 1, and further authorizes the Town Manager to execute the agreement
on behalf of the Town of Westlake, Texas.
SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid
by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions
hereof and the Council hereby determines that it would have adopted this Resolution without the
invalid provision.
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS 24TH DAY OF JANUARY, 2011.
Laura Wheat, Mayor
ATTEST:
tU
Fic
Kelly Edl a , Town Secretary
APPROVED £ S TO F
L tanton I{overly, i Attorney
Resolution 1 1-02
Page 2 of 2
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/14/2010
DATE: Tuesday, December 14, 2010
LOG NAMED 60TREATED WATER FOR KELLER AND SOUTHLAKE
S UBJECT:
Authorize the Execution of a Contract for the Billing of Treated Water Between the City of Fort Worth and
the Cities of Keller, Southlake and Westlake
REFERENCE NO.: **C-24656
RECOMMENDATION.
It is recommended that the City Council authorize the City Manager to execute a contract for the Billing of
Treated Water between the City of Fort Worth and the Cities of Keller, Southlake and Westlake.
DISCUSSION:
Historically Fort Worth has billed Southlake for water use that served both Keller and Southlake. On May
5, 2008 City Council approved the agreement between the cities of Fort Worth, Keller and Southlake
related to Billing of Treated Water. (M&C C-22798 City Secretary No. 37086) This agreement expires on
December 31, 2010.
S outhlake and Keller have requested to be billed separately by Fort Worth for the water used from
S outhlake's billing meter and allocated based upon the readings from the existing sub -meters located on
Pearson Lane and an additional submeter in construction at the T.W. King Pump Station site. Westlake
will also be billed once the future meter to be located near Solana Boulevard and Precinct Line Road is
completed. By doing this, each city will have a better indication of their demands per capita usage and the
benefits of any conservation efforts.
The meters and meter installation, and the cost for servicing the meters will be paid by Southlake, Keller
and Westlake, separately and apart from other wholesale customers.
Each month that this agreement is in effect, Fort Worth shall read all meters to determine the total treated
water delivered as measured by existing Southlake Meters at Caylor tank and Alta Vista pump
station. Allocation among the parties for the total water billed shall be determined by the readings taken
from the meters located at Pearson Lane and Precinct Line.
Keller agrees that the treated water delivered to it under this Contract will not be added to the treated
water taken by it pursuant to its Wholesale Water Contract known as City Secretary Contact No.
41100. Keller will continue to receive monthly bills and an annual bill under its Wholesale Water Contract
known as City Secretary Contract No. 41100, as well as monthly bills and an annual bill under this
Contract.
Westlake agrees that the treated water delivered to it under this Contract will not be added to the treated
water taken by it pursuant to its Wholesale Water Contract known as City Secretary Contact No.
41112. Westlake will continue to receive monthly bills and an annual bill under its Wholesale Water
Contract known as City Secretary Contract No. 41112, as well as monthly bills and an annual bill under this
Contract.
http://apps.cfwnet.org/ecouncil/printmc.asp?id=14524&print=true&DocType=Print 3/11/2011
Page 2 of 2
By executing this Contract, the Cities acknowledge that their respective utility personnel or consultants
have reviewed it and fully understand and agree to the calculations within the Contract and its exhibits for
the purpose of billing treated water delivered to Keller, Southlake and Westlake.
All other contractual provisions of each cities Wholesale Water Contracts shall remain the same and this
billing agreement will expire on the same date as the Wholesale Water Contracts on September 31, 2031
unless renewed upon mutual agreement and approved by each governing body.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manaaer's Office bv:
Oriainatina Deoartment Head:
Additional Information Contact:
Fernando Costa (6122)
S. Frank Crumb (8207)
Wendy Chi-Babulal (8242)
ATTACHMENTS
1. Regional Water Supply Meter Exhibit.pdf (Public)
http://apps.cfwnet.org/ecouncil/printmc.asp?id=14524&print=true&DocType=Print 3/11/2011