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HomeMy WebLinkAboutContract 7050 CITY SECRETARY CONTRACT No..//,-P......._ CONTRACT FOR WATER SERVICE BETWEEN THE CITY OF FORT WORTH, TEXAS AND THE CITY OF WESTWORTH VILLAGE THE STATE OF TEXAS COUNTY OF TARRANT X THIS CONTRACT AND AGREEMENT made and entered into this �l day of aL j:!4/ , 19Y27- , by and between the City of Fort Worth, a municipal corpora 'on located in Tarrant County, Texas, acting by and through its duly authorized city manager, R. N. Line, and the City of Westworth Village, a municipal corporation located in Tarrant County, Texas, acting by and through its duly authorized mayor,L. G. Worthington, W I T N E S S E T H: WHEREAS, the City of Fort Worth has provided at its own expense, and now owns, operates and maintains facilities for processing and distributing a large supply of surface water, and at the present time is qualified to furnish and deliver treated water, both within and without the corporate boundaries of the City of Fort Worth; and, WHEREAS, the City of Westworth Village is served by a water distribution system within the corporate limits of such city; and, WHEREAS, the water distribution system serving the City of Westworth Village is owned by the Westworth Water Company; and, WHEREAS, the City of Westworth Village does not now have and cannot provide economically and within a reasonable period of time, any other source of water supply; and, WHEREAS, the Westworth Village Water Company is dependent upon the City of Fort Worth for a treated water supply and said Company does not have .and cannot provide treated water from any other source; and, WHEREAS, it is deemed to be in the best interest of both the City of Fort Worth and the City of Westworth Village that said cities do enter into a mutually satisfactory agreement by means of which the City of Westworth Village may obtain a supply of treated water from the City of Fort Worth at a reasonable rate; NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the execution and performance of the mutual covenants herein set forth, the City of Fort Worth and the City of Westworth Village do hereby covenant and agree as follows: -1- 1. TERMS AND CONDITIONS The City of Fort Worth agrees to furnish and sell to the City of Westworth Village treated water under the normal operating pressure prevailing in the Holly pressure plane of the City of Fort Worth's water distribution system at the point or points of delivery. The City of Westworth Village agrees to accept delivery under the conditions of this agreement and to pay for the same in accordance with the terms hereof. If at any time during the term of this contract the furnishing of water by the City of Fort Worth to the City of Westworth Village shall be to the detriment of water customers within the City of Fort Worth, then and in that event, the quantity of water furnished to the City .of Westworth Village will be reduced in the same proportion to the reductions in quantity of water being furnished other customers served by the Holly pressure plane either in or out of the City of Fort Worth. If the City of Fort Worth shall ration the use of water throughout said City or issue water conservation measures or restrict the use of water in any way, the City of Westworth Village shall: Institute and apply the same rationing, conservation measures or restric- tions to the use of water by the customers of the City of Westworth Village, so long as any part of the total water supply of Westworth Village is being furnished by the City of Fort Worth, and any failure by the City of Westworth Village to comply with this provision or the other provisions of this agree- ment shall be just cause for the City of Fort Worth to discontinue the sale of water hereunder. The City of Fort Worth and the City of Westworth Village agree that if the City of Fort Worth should enter into any future contract for supplying treated water to any municipality under more favorable terms or conditions than set forth herein this contract may be amended to provide the same terms and conditions with respect to the sale of treated water to the City of West- worth Village. 2. All water furnished under this agreement shall be measured by one or more suitable meters equipped with continuous flow chart-recording devices and transmitting and receiving equipment. All meters and recording equipment shall be installed and operated by the City of Fort Worth. The City of Westworth Village shall pay to the City of Fort Worth the cost of the meter, recording and transmitting equipment and appurtenances plus the installation and mainte- nance cost thereof. The point or points of delivery of treated water by the City of Fort Worth shall be the meter vault connection to the customer's side of the meter, and all necessary mains and distribution facilities from and beyond said point shall be furnished by the City of Westworth Village. -2- The location of each meter shall be mutually agreed upon by and between the parties hereto, and the meter or meters shall not be moved or relocated except by mutual consent. The location of each meter shall coincide as nearly as is reasonably possible with the Fort Worth city limit line. Initially, one of the two existing meters serving the distribution system of the City of Westworth Village shall be replaced with a new meter equipped with flow recorder and transmitting equipment, and the other exist- ing meter shall be maintained in a closed or "valved-off" condition at all times except under conditions of extreme fire or other emergency conditions. The City of Fort Worth shall be notified immediately .by-a representative of the City of .Westworth Village .whensuch emergency conditions exist or have occurred. Each city shall have the right .to test the meters and appurtenances at any time by first giving the other party notice of its intention to make such a test. No meter shall be adjusted, changed .or tested, in place or elsewhere, unless the party intending to make such adjustment,change or test shall first give notice to the other party of this intention and thereafter give .reason-, able opportunity to the other party to have representatives participate in such test, change or adjustment. All meters will be properly sealed, and the seal shall not be broken unless representatives of both cities have been notified and given a reasonable opportunity to be present. Either the City of Westworth Village or the City of Fort Worth at its own expense may install a check meter to check measure the volume of water passing through the master meter, provided that if such check meter is installed the same rules and regulations relative to its operation, maintenance, and read- ing shall apply as to the meter being tested. 3. METER READING AND BILLING The City of Fort Worth will read all meters provided for herein at monthly intervals and the parties to this agreement shall have free access .to read these respective meters daily, if either party-so desires. It shall be the duty of the parties to give immediateinotice, each to the other should any meter be found not functioning, .and upon such notice repairs to such meter shall be made promptly. Whenever it is evident that a meter has not registered accurately for a period of time, the quantity used shall be estimated in accordance with the usage under similar conditions for an equal period. The meter readings and rates of flow shall be added together when more than one meter is in service and the sum thereof shall be used for the purpose of calculating charges for water used. A review of water usage amounts by the .customer for the past twelve (12) months shall be made during the preparation of the September bill each year. The September statement shall be prepared so as to reflect any and all rates -3- of use charges which have not been previously billed and paid. A copy of the rate of flow charts or other records showing the maximum day and the peak hour of the year shall be furnished to the customer with the September billing. The City of Westworth Village agrees to appropriate annually sufficient funds to pay the monthly charge for water .service. The water charge to be paid by the City of Westworth Village to the City of Fart Worth shall be deemed a current expense of the City of Westworth'Village for each year of this contract as such monthly charges become due and payable. The monthly bill shall be due and payable at the office of the Fort Worth Water Department on or before the ,15th day immediately succeeding the monthly billing date. 4. DEFINITIONS "Annual consumption" is the ,total quantity of water purchased under the terms of this contract by the City of Westworth Village during the .fiscal year of the City of Fort Worth as determined by the ,difference in the annual September meter readings. "Average daily use" is the annual consumption divided by 365. "Maximum day usage" is the maximum quantity of water used during one calendar day of the fiscal year of the City of Fort Worth. "M.G.D." is million gallons per day. "G.P.D." is gallons per day. "T.G.P.D." is thousand gallons per day. "Fiscal year" is the fiscal year of the City of Fort Worth from October 1 to September 30. "Maximum hour rate" or the "peak hour rate" is the quantity of water used during the one hour of the year when more water passed through the meter or meters serving the customer than during any other hour .of the fiscal year of the City of Fort Worth multiplied by 24. "Commodity charge" is that part of .the rate charged per 1,000 gallons used, regardless of rate of use. The commodity charge shall include the maintenance and operation cost, the capital facilities cost on the part of the production and transmission system related to annual use and the raw water costs. "Raw water charge". is a part of the commodity charge and represents the rate per 1,000 gallons charged by .the Tarrant County Water Control and Improve- ment District No� 1 to the ,City of -Fort Worth for raw water to be sold to the City of Westworth Village plus 16 percent of said rate representing Fort Worth water system losses. -4- "Rate of use charge" is the fixed charge determined for the maximum day and the maximum hour rates of use. "Base rate". is composed of the commodity charge, and the rate of use charge. 5. RATES 1. Method of rate determination The annual rate charged by the City of Fort Worth for rendering water service under the terms of this contract shall be based upon the functional distribution of the total annual cost incurred in furnishing treated water to its customers, provided that nothing herein shall be construed as contem- plating an annual rate of less than the regular City of Fort Worth water only rate, plus 10 percent of said rate. 2. Rates to be used The annual rate to be charged for water shall include the proper propor- tionate parts of the maintenance and operation cost as related to the production and transmission facilities of the total Fort Worth Water System, the capital facilities cost (fixed charges) on the production and transmission plant related to the rendition of service at maximum withdrawal rates of use by the City of Westworth Village and the raw water costs. The charges for the initial period of the contract which shall terminate September 30, 1972 have been computed as follows: a. The commodity charge shall be 17.9 cents per 1,000 gallons withdrawn by the customer. b. The annual rates of use charges for maximum day usage shall be $15,810 per M.G.D. and maximum hour rate of usage in excess of the maximum day shall be $7,070 per M.G.D. C. The service charge shall be $25.00 per month per meter. 3. Adjustment of rate A. Raw water The amount charged for raw water shall be increased or .decreased pro- portionately when the raw water cost paid by the City of Fort Worth for water available for treatment and sale to the City of Westworth Village is increased or decreased. At the time of execution of this contract, the rate,. including 16 percent for system losses, to the City of Westworth Village is 9.3 cents per 1,000 gallons. The portion of the raw water charge which reflects system ,losses shall be adjusted in the manner set out in sub paragraph b. below in accordance with actual experience during the preceding period. -5- ♦ 4 ' b. Commodity charge and rates of use charges The rate shall be reviewed and adjusted every .five years except that the first such review shall be based on the annual cost of operation for the fiscal years, 1970-71 and 197,E-72. The cost related to the production and transmission function of distributing treated water to the Fort Worth city limits in wholesale quantities plus a service charge shall be determined in accordance with methods herein. Such costs shall be projected through the City of Fort Worth fiscal year 1975 to establish the fair rate for water to be charged during the period October 1, 1972 to September 30, 1977. The adjusted rate shall be made effective October 1, 1972. A similar review and rate adjustment shall be made for each succeeding five-year period for the. term of the contract. 6. PAYMENT FOR WATER The City of Westworth Village agrees to purchase and pay for all water distributed through facilities owned by the Westworth Village Water Company, its successors or assigns. The Westworth Village Water .Company will not be permitted to make direct sales to any consumer except through the City of Westworth Village in conformity herewith. Payment of charges to the City of Fort Worth for water used by the City of Westworth Village shall be made as follows: 1. Minimum annual payment The minimum annual payment shall be the charges computed for all water delivered to the City of Westworth Village during the fiscal year based on rates. provided herein. 2. Maximum rate of delivery There will be no limitation or regulation of the maximum rate of delivery, except as specified in Section 1 of this agreement. 3. Minimum monthly charge The minimum monthly charge will be the charge computed for all water delivered to the City of Westworth Village during the applicable calendar month based on rates provided herein. , 4. Monthly payment The monthly payment shall be calculated at the regular City of Fort Worth rate plus 10 percent of said rate (which includes the raw water costs) plus the service charge for the quantity of water with- drawn from the Fort Worth system during the month. -6- t 5. Annual payment The actual total annual payment for water by the City of Westworth Village shall be related to the annual and peak volumes used by the City of Westworth Village during the .fiscal year as determined by meters, flow recording devices or other approved methods. The September bill shall reflect any necessary adjustment to the annual payment due to actual rates of withdrawal from the Fort Worth system. If the initial period of use of water by -the City of Westworth Village under the terms of this agreement is less than a .fiscal year, the annual rates of use charges shall be computed in the .proportion that the period of use bears to the fiscal year. The method of computation for determining the total ,annual payment and the September bill is shown using assumed quantities in the example that follows. Example The City of Westworth Village will buy all water required to fulfill its needs from Fort Worth. The rate used in ,the example is based. on the City of Westworth Village being in the Tarrant County Water .Control and Improvement District No. 1 and water being withdrawn at two metering stations. Month Usage per Month, Gallons Monthly Payments October 1,000,000 $ 512.15 November 1,000,000 512.15 December 1,0000000 512.15 January 1,0000000 512.15 February 1,000,000 512.15 . March 2,000,000 818.02 April 3,000,000 1,060.02 May 3,000,000 1,060.02 June 3,000,000 1,060.02 July 3,000,000 1,060.02 August 4,000,000 1,302.02 Subtotal 23,0003,000 $ 8,920.87 September payment 3,000,000 1,757.53 Total 26,000,000 $10,678.40 Maximum day for the year 200,000 gallons Maximum hour for the year 520,000 gallons per day rate Annual Payment Calculation 263,000 x .179 $ 43,654.00 .200 x 15,810 3,162.00 .320 x 7,070 29262.40 12 x 25 x 2 600.00 Total Annual Payment $10,678.40 Previous payments October through August 8,920.87 September billing $ 1,757.53 -7- 7. EFFECTIVE DATE OF CONTRACT FOR BILLING The effective date .of this contract for billing purposes shall be the fifteenth (15th) day of the month following the signing of this contract. . 8. LIFE OF CONTRACT The life of this contract shall be for twenty-seven (27) years from the date of execution hereof,, and may be renewed upon terms mutually agreeable to the parties hereto. 9. RIGHTS OF WAY The City of Westworth Village shall grant to the City of Fort Worth such easements and rights of way along public highways or other property owned by - the City of Westworth Village as requested by -the City of Fort Worth in order to construct and maintain water mains or facilities within the .City of West- worth Village to furnish water to the City of Westworth Village and to other areas. The City of Fort Worth will move such water mains or facilities when reasonably necessary to the performance of essential governmental duties by the City of Westworth Village upon notice from the .City of Westworth Village at no cost to the City of Westworth Village. All work done by or on behalf of the City of Fort Worth under this paragraph will be ,performed in accordance with specifications equal to those applying to work of a similar nature per- formed within the City of Fort Worth. 10. STATE HEALTH DEPARTMENT APPROVAL The water system of the .City of Westworth Village shall be approved by the Texas State Department 'of Health during the life of this contract. If at any time the water- system of the City of Westworth Village is .not approved by the ,Texas State Department of Health, there shall not be any direct physical connection between the Fort Worth Water System and the Westworth Village water system unless an approved backflow prevention device has been provided and installed and this installation has been approved by the Texas State Department of Health. 11. REALE OF WATER The City of Westworth Village does hereby covenant and agree not to sell water to any user located within or without its city limits at a rate lower than the equivalent Fort Worth rate charged a similar customer located within the City of Fort Worth. The City of Westworth Village agrees to furnish the City of Fort Worth Water. Department a .complete rate schedule for all City of Westworth Village water sales. -8- The City of Westworth, Village will not make any extension of water lines beyond the city limits of the City of Westworth Village' as its boundaries now exist or may hereafter exist, nor permit any connections for water. outside its city limits, without the approval of the City of Fort Worth. 12. FORCE MAJEURE If, by reason of force majeure, either party hereto shall be rendered unable, wholly or in part,, tp carry out its obligations under this agreement other than the obligation of the City of Westworth Village to make payments required under the terms hereof, then if such party shall give notice and full particulars to such force majeure in writing to the other party within a reason- able 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.. The term "force majeure", as employed herein shall mean acts. of God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders .of any kind of the Government of the United States or the State of Texas, or any. civil or military authority, insurrection, riots, .epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint 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 the City of Fort Worth to deliver water hereunder or the City of Westworth Village to receive water hereunder on account of any other causes not reasonably within the control of the party .claiming such inability. IN TESTIMONY WHEREOF, after proper action by the respective governing bodies for 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. -9- 1 ATTEST: CITY OF FORT WORTH Ct B City Secretary Ci y Ma ag r APPROVED AS TO FORM AND LEGALITY: City Attorney APPROVAL RECOMMENDED: Director, Fort Worth Water Department ATTEST: CITY OF WESTWORTH VILLAGE Mayor �79(`7� -10- City of Fort Worth, Texas Mayo- and Council Communication DATE REFERENCE SUBJECT: Long Term Contract with Westworth PAGE NUMBER Village for Sale of Water and 4 1/31/72 C-2158 Sewer Service iof On February 18, 1953, the City Council authorized water service to be fur- nished a housing development being constructed by Seward and Shurtleff, developer, in the City of Westworth Village on the unit billing basis with sanitary sewer service to be furnished at 80rI per residential customer per month. The City has been selling water to the Westworth Water Company based on this agreement, and charges have been increased proportionately as Fort Worth's rates have changed. The Westworth Water Company has approximately 450 customers connected to its water and sewer mains in Westworth Village. The Company has no facilities such as pumping stations or storage reservoirs. On June 25, 1966, the attorney representing the Westworth Water Company requested the City of Fort Worth to enter into long-term contracts with that company similar to the contractual arrangements the City has with surrounding suburban communities, for the purchase of treated water and sanitary sewer service. The request was presented to the City Council on July 25, 1966, and the Council indicated that it would not enter into a long-term water and sewer service sales contract with a private water company. The Council indicated its willingness to negotiate contracts with the City of Westworth Village. On January 27, 1971, Mayor L. G. Worthington of Westworth Village requested by letter to negotiate contracts between the Cities of Fort Worth and Westworth Village and the Westworth Water Company for water and sanitary sewer service. On May 25, 1971, after several meetings, the drafts of the proposed contracts between the two cities were delivered to the attorney representing Westworth Village for review. On December 15, 1971, Mayor Worthington met with the Water Director and advised that the City of Westworth Village would purchase the water from the City of Fort Worth and would establish the water and sewer rates for Westworth Village customers. The Westworth Water Company will continue to operate the systems. Mayor Worthington asked the Water Director to proceed with prepara- tion of the contracts for consideration by the City Council of Westworth Village. On December 20, 1971, the City Council of Westworth Village approved the proposed contracts for water and sewer service. Approval of the proposed long-term contracts will place the City of Westworth Village on an equal basis with eleven other suburban City water customers and thirteen suburban City sanitary sewer customers . Ir JAN 31 1972 L h;;Li FARY CONTRACT _ftQ-2CA_ DATE REFERENCE SUBJECT: Long Term Contract with Westwort PAGE NUMBER Village for Sale of Water and 2 4 1/31/72 C-2158 Sewer Service of Water Contract Summary of Contract Provisions The proposed contract has been prepared in accordance with the standard policy of the City of Fort Worth for the sale of treated water to neighboring com- munities. The proposed contract includes the following major provisions : Rates - The charges for water service are the same charges paid by other City purchasers of treated water under long-term contracts and are based on the following schedule: Commodity Charge - 17.9� per 1000 gallons purchased. This amount includes a raw water charge of 8G per thousand gallons. The City of Westworth Village is located within the boundaries of the Tarrant County Water Control and Improvement District No. 1. Cost of Facility Charge - An annual charge of $15 ,810 per M.G.D. for maxi- mum day usage; and $7,070 per M.G.D. for maximum hour usage in excess of maximum day usage. Service Charge - $25 per month per meter, for meter reading, billing and miscellaneous expense incurred with metering operations. Payment for Water - The City of Westworth Village agrees to purchase and pay for all water distributed through facilities owned by the Westworth Water Company. Monthly payments from the City of Westworth Village will be computed based on the "D" Schedule. The "D" Schedule is the wholesale water contract rate which is the City of Fort Worth rate plus 10 per cent of said rate (which includes raw water costs) plus service charge, for the quantity of water withdrawn from the Fort Worth System during the month. The actual annual payment by the purchaser for water service is related to the annual usage and peak volume used but cannot be less than the charge paid for the equivalent amount used by a water consumer within the corporate limits of Fort Worth plus 10 per cent plus a $25 monthly service charge per meter. Rate Adjustments - The contract provides for rate adjustments based on actual costs and rates of use, which will be reviewed at five-year intervals during the contract time. The first such review and rate adjustment will be effec- tive October 1, 1972. The amount charged for raw water shall be increased or decreased proportionately when the raw water cost paid by the City of Fort Worth for water available for treatment and sale to the City of Westworth Village is increased or decreased. The term of the contract is 27 years . Resale of Water - The City of Westworth Village agrees not to sell water at a rate lower than the City of Fort Worth rate charged a similar customer located within Fort Worth. DATE REFERENCE SUBJECT: Long Term Contract with Westwort PAGE NUMBER Village for Sale of Water and 3 4 1 31 72 C-2158 Sewer Service Of Meters - The master meter serving the City of Westworth Village will continue to be located at its present location and will be equipped with flow recorder and transmitting equipment for peak period recording purposes with such facilities to be installed at no cost to the City of Fort Worth. Sanitary Sewer Contract Summary of Contract Provisions - The proposed contract has been prepared in accordance with the standard policy of the City of Fort Worth for the treatment of sanitary sewage from neighboring communities. The proposed contract includes the following provisions: Rates - The rates charged the City of Westworth Village are based on the complete cost of operation and maintenance and the pro rata capital cost of Fort Worth facilities used in transporting and treating the City of Westworth Village sewage, in accordance with the standard charge rate established by the City Council for providing sanitary sewer service to neighboring communi- ties. The charge rate is $1.04 per residential connection. The City of Westworth Village will pay for sanitary sewer service on the "per connection" basis. However, conversion to the meter basis of payment can be initiated by either city, and any meters installed under terms of the agreement will be at the expense of the City of Westworth Village. The charge rate will be reviewed and adjusted every five years after the first such review. In order to conform with contracts of other cities, the first review will be based on the annual charge of operations, fiscal year 1972-73. Cost trends , including average rate of increase or decrease in the annual cost of operation will be projected to determine the fair adjusted charge rate and metering service charge. The adjusted rate shall be made effective October 1, 1973. A similar review and rate adjustment shall be made for each succeeding five-year period for the time of the contract. Industrial Wastes - Approval of connection, directly or indirectly to the Fort Worth Sewer System must be obtained from the Director of the Fort Worth Water Department before industrial wastes (as defined in City of Fort Worth Industrial Waste Ordinances) may be discharged to the sewers. All provisions and terms relating to industrial wastes and the industrial connections con- tained in said city ordinances and amendments thereto are referred to and incorporated herein as the same as set out before and are to be adhered to . The sewage delivered to the Fort Worth Sanitary Sewage System from that of the City of Westworth Village shall be equal to or better than the quality standards established by current or future ordinances of the City of Fort Worth regulating industrial wastes. Regional Authority - If the City of Fort Worth should elect at some future time to be designated as a regional authority or agency by a duly authorized regulatory body, or if the City assumes responsibility as a regional authority, or if the City should elect to contract with a regional authority to provide all or part of the services covered by this agreement, terms of the agreement will be modified to conform with requirements of the regional authority and DATE REFERENCE SUBJECT: Long Term Contract with Westworth PAGE NUMBER Village for Sale of Water and 4 4 1/31/72 C-2158 Sewer Service °f charges paid by the City of Westworth Village to the City of Fort Worth for services to be performed by the regional authority shall not be less than the charges paid by the City of Fort Worth to regional authority for such services. Term of Contract - The term of the contract is for 33 years. Recommendation It is recommended that the contracts to sell treated water and provide sanitary sewer service to the City of Westworth Village be approved and that the City Manager be authorized to execute the contracts on behalf of the City of Fort Worth. MiL:ms SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY ❑ APPROVED ❑ OTHER (DESCRIBE) w CITY SECRETARY DATE CITY MANAGER