HomeMy WebLinkAboutContract 39743-A2 CSC No. 39743-A2
SECOND AMENDMENT TO
CITY SECRETARY CONTRACT NO. 39743
CITY OF EULESS AGREEMENT FOR RECLAIMED SERVICES
WHEREAS, on the 2nd day of February, 2009, the City of Fort Worth and the City
of Euless entered into City of Fort Worth City Secretary Contract No. 39743 (the
"Contract"), providing for Reclaimed Water Service; and
WHEREAS, on September 27, 2011, the parties entered in the First Amendment
to the Contract to add a new Points of Delivery to Section 25; and
WHEREAS, Section 2.5 provides for the City of Euless to designate an Annual
Amount to reflect the total annual Reclaimed Water use estimate by the City of Euless;and
WHEREAS, Section 7.5 of the Contract details the Charges to be made to Euless
for Reclaimed Water Services based off the Annual Amount to be applied to the City of
Euless to include a Minimum Monthly Charge as well as a credit when the City of Euless
incurs a Minimum Monthly Charge for a month, but its annual withdrawal is equal to or
greater than its Annual Amount; and
WHEREAS, Section 7.5.2 and Section 7.5.4 of the Contract refer to Exhibit D
which provides three examples for calculation of the charges and credits to the City of
Euless; and
WHEREAS, on June 23, 2020, the parties participated in a Reclaimed Water
Wholesale Advisory Committee and agreed that Section 7.5 did not accurately described
the agreed upon calculations and that Exhibit D contained erroneous examples; and
WHEREAS, the Reclaimed Water Wholesale Advisory Committee agreed to
execute this amendment to revise the Contract language and Exhibit D.
NOW,THEREFORE,KNOW ALL BY THESE PRESENTS:
1.
Section 7.5.2 Minimum Charge shall be amended to now be:
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 If the Reclaimed Water withdrawn from the System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
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
than half of the Customer's Annual Amount, divided by twelve (12),then the
Customer shall pay a Minimum Monthly Charge instead of the§7.5.1 Volume
Charge. The Minimum Monthly Charge is calculated as:
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.
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 an example of how the monthly minimum and any credit shall
be calculated.
2.
Section 7.5.4 Credits shall be amended to now be:
7.5.4 Credits. In any Fiscal Year that Customer incurs a Minimum Monthly
Charge for a month, and its Fiscal Year total charges exceed 50% of the
combined Amival Amount at the Agreement rate, Fort Worth will credit the
Customer's account with a credit(in dollars) calculated as:
a. the total charges for that Fiscal Year,minus
b. the combined Actual Annual usage x the Rate.
An example of this calculation is shown in Exhibit D. Fort Worth
will first apply the credit to past-due charges, if any, and thereafter to
current charges.
Second Amendment to Wholesale Reclaimed Water Exhibit Dv4 2 of 4
3.
Exhibit D Volume Charge Calculation Example: shall be amended to now be as shown
in the attachment to this Second Amendment.
4.
All other terms, conditions, and covenants contained in City Secretary Contract No. 39743
not amended herein shall continue in full force and effect.
Executed on this day, �Ce ar i` I? ,2020.
CITY OF FORT WORTH CITY OF EULESS
'Zing au id—off
Dana Burghdoff(D 9,2020 W21CST)
I
Dana Burghdoff ore a Getche
ASSISTANT CITY MANAGER CITY MANAG R
Date:
Recommended By:
ChdE ophor Harder
Christopher Harder(Dec 9,202013:33 CST)
Christopher P. Harder, PE
WATER DEPARTMENT DIRECTOR
APPROVED AS TO FORM AND ATTEST
LEGALITY °Ail,
0 F E L/
Christa R.Lopez-Reynolds(Dec 9,200 13: T)
Christa R. Lopez-Reynolds Sutter _�r
SR. ASSISTANT CITY ATTORNEY CITY SECRETARY':, r s •:a;
ATTEST
'�FF°°°°Ttyad
d °�°9dd
for Ronald P. Gonzalos P.v o s=A
for Ronald P.Gonzales(Dec 9,202016:29 CST) $ o° d
o �°° o*d OFFICIAL RECORD
Mary Kayser �aNJ nEX45pp ICY
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CITY SECRETARY CITY SECRETARY
FT. WORTH, TX
Second Amendment to Wholesale Reclaimed Water Exhibit Dv4 3 of 4
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible for the monitoring and
administration of this contract,including ensuring all perfbrmance and reporting requirements.
128./2020
Alexander Pierce
Engineering Manager
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
EXHIBIT D
Volume Charge Calculation Example
This example illustrates the calculation of Customer Charges under the
Agreement and resulting FY credits for a hypothetical Reclaimed Water Use
scenario.
If Customer uses less than the Minimum Monthly in any month during the FY and
its FY total charges exceed 50% of the combined Annual Amount at the Agreement
rate (Minimum Annual Charge), Fort Worth subtracts the actual annual usage x
the Rate from the actual amount paid and applies the remainder to the Customer's
account for the next FY.
Annual Amount (kgal) 240,000 (x 1,000) Gal
Minimum Monthly Use (kgal) 10,000 (x1,000) Gal = 50% of Combined
Annual Amount/ 12
Rate $/1,000 Gal $1.45
Monthly Minimum Charge $14,500 = Rate x Min. Monthly Use
Minimum Annual Charge: $174,000 = 50% Annual Amount x Rate
Monthly
Example Year X Usage (kgal) Bill
October 30,000 $43,500
November 15,000 $21,750
December 0 $14,500
January 4,000 $14,500
February 0 $14,500
March 6,000 $14,500
April 15,000 $21,750
May 20,000 $29,000
June 35,000 $50,750
July 35,000 $50,750
August 40,000 $58,000
September 30,000 $43,500
FY TOTAL 230,000 $377,000
AMOUNT BASED ON ACTUAL
USAGE 230,000,000 @ $1.45 per kgal $333,500
FY Total minus Amount Based
NEXT FY CREDIT on Actual Usage $43,500
Second Amendment to Wholesale Reclaimed Water Exhibit Dv4 4 of 4