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HomeMy WebLinkAboutContract 18591 CITY SECRET AGREEMENT CONTRACT NOZ /, WHEREAS , on the 25th day of August , 1989 , the City of Fort Worth (Fort Worth) and the Benbrook Water & Sewer Authority, (Customer) entered into an agreement , same being City of Fort Worth City Secretary Contract No . 17299, whereby Fort Worth agreed to provide water treatment to Customer; and WHEREAS, Fort Worth and Customer desire to amend said City of Fort Worth City Secretary Contract No . 17299 , Now, therefore, the City of Fort Worth and Benbrook Water & Sewer Authority, hereby agree as follows : 1 . Subsection 1 . 15 of Section 1 of City of Fort Worth City Secretary Contract No. 17299 is hereby amended, and after having been so amended shall be and read as follows : "1 . 15 Wholesale System Access Fee - A capital contribution funding or recouping the costs of General Benefit Facilities capital improvements or General Benefit Facilities facility expansions necessitated by and attributable to new development . " 2 . Section 1 of City of Fort Worth City Secretary Contract No . 17299 is hereby amended by adding subsection 1 . 18 , which shall be and read as follows : "1 . 18 Capital improvements means any of the r�1XU UV�ICIAL tCu nn following facilities which provide util 7gy s�.C�e ThR Fay services and benefits common to all customers THY and that have a life expectancy of three or more years , whether such capital improvements are located within the jurisdictional limits of Fort Worth or Customer : water treatment facilities , metering facilities , control systems and appurtenances , storage facilities , pumping facilities and all mains that are sixteen inches (16") and greater in diameter . " 3 . Section 1 of City of Fort Worth City Secretary Contract No . 17299 is hereby amended by adding subsection 1 . 19 , which shall be and read as follows : "1 . 19 Facility Expansion - 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 . " 4 . City of Fort Worth City Secretary Contract No . 17299 is hereby i amended by substituting the following for Section 16, and after RECURO 2 such substitution, Section16 of City Secretary Contract No. 17201 shall be and read as follows : "16 . System Access Fees "16 . 1 On a quarterly basis , Customer agrees to pay to Fort Worth a Wholesale System Access Fee for each new or enlarged connection for water service made within Customer ' s service area served by the General Benefit Facilities of the Fort Worth System. The Wholesale System Access Fee to Customer for each such connection shall be based upon the size of connection made within Customer' s service area and will be directly related to the benefit provided to Customer by Fort Worth. Should the Customer provide at least 75% of the water needs for its service area during any contract ,year, the Wholesale System Access Fee will be a fractional part of the fee imposed within Fort Worth for the same size of meter based on the ratio of the annual amounts of water purchased from Fort Worth to the total annual amounts of water produced and purchased by the Customer for its customers . For purposes of calculating this fractional part , this ratio will be the greater of the most recent prior annual ratio or the highest historical ratio, occurring after the first fiscal year of this contract adoption. GFI IGIA. TRECORD p CITY SECRETARY EXAMPLE: FT. WORTH, TEX. Water Purchased Total Volume Year Fr_o_m_ Fort _Wort_h_ Produced___&_Purchas_ed Ratio 1988 16 , 100 ,000 1 , 170 , 000 , 000 . 014 3 The ratio is . 014; the Customer would pay $14 to Fort Worth for every $1 ,000 or fractional part thereof imposed within Fort Worth. In subsequent years should the ratio ever result in a lower ratio than the previous ration, the highest previous ratio would apply . At such time as Customer provides less than 75% of the water needs for its service area during any contract year , the Wholesale System Access Fee to Customer for each such connection shall be equal to the Wholesale System Access Fee collected for the same size water meter within the jurisdiction of Fort Worth. This provision will be waived if a temporary emergency condition as provided for in Paragraph 22 . 2 precludes Customer from providing at least 75% of its needs . "16 . 2 Notwithstanding the provisions of Section 16 . 1 , for any area within the Customer ' s jurisdiction where the water supply is provided solely by Fort Worth, the Customer agrees to pay Fort Worth a charge for each new or enlarged connection equal to the Wholesale System Access Fee imposed for the same size of connection made within Fort Worth. "16 . 3 The calculation of said Wholesale System Access Fee shall be consistent with all applicable state and federal regulations , and shall include only those costs associated with General benefit Facilities expansions and General Benefit Facilities capital improvements necessary to provide service to new development . Nothing within this contract shall be deemed to prevent either Fort Worth or customer from charging their own t} ti` ;'Sca y'6 t/K aCRETARY FT. WORTH, T X. retail customers impact fees in excess of the Wholesale System Access Fee provided for herein. "16 . 4 Customer shall provide to Fort Worth such information that relates to the making of new and/or enlarged connections within its jurisdiction as may be requested by the Director, including but not limited to building permits , with each quarterly payment required in this section. "16 . 5 Neither Fort Worth nor Customer shall forgive or credit any impact fee due from new or enlarged connections to its respective system within its jurisdiction . However, either Fort Worth or Customer may pay such impact fee into the fund required for paying for the capital improvements . "16. 6 The Water System Advisory Committee created pursuant to Section 29 hereof shall select five (5) of its members to a subcommittee to be known as the Customer Impact Fee Committee (CIFC) . Every three years , beginning June, 1992 , the CIFC shall submit a list of five qualified engineers or planning consultants to the Director . The Director shall select a consultant from such list to assist Fort Worth in developing land use assumptions , identifying capital improvements , and formulating capital improvement plans and access fees . The consultant shall be responsible to Fort Worth and its citizen' s advisory committee , but shall also report to the CIFC. The cost of the consultant shall be deemed a System Cost . In the event the CIFC fails to submit a list of five consultants to Fort Worth, Fort Worth shall select a consultant to perform in the manner described herein . RECORMU. 5 'S�LRETARY FT. WORTH, TEX. "16 . 7 Fort Worth agrees that only those capital improvements as defined in section 1 . 18 hereof shall be included in the capital improvements plan for the purpose of determining Wholesale System Access Fees ; provided however , Fort Worth may include other capital improvements for the purpose of determining impact fees to its own retail customers . Fort Worth shall not be required to include all capital improvements in any capital improvements plan. The CIFC shall be responsible for working with Fort Worth and its consultant to determine the capital improvements to be included in the calculation of any Wholesale System Access Fees . The CIFC shall recommend to the Water System Advisory Committee which capital improvements should be included in the calculation of any Wholesale System Access Fees . The CIFC shall also meet with Fort Worth' s citizen advisory committee as such citizen' s advisory committee reviews and considers land use assumptions , the capital improvements plan and impact fees . "16 . 8 Prior to the adoption of any land use assumptions , capital improvements , or access fees , the CIFC shall be furnished a copy of the proposed capital improvement plan or fees at least 30 days prior to any scheduled hearing thereon . "16 . 9 Each year Fort Worth shall provide to the Wholesale Water Advisory Committee an audited financial statement of the Fort Worth Water Department ' s records . "16 . 10 For the period of time from January 1 , 1991 until June 5 , 1993 , Customer agrees to pay to Fort Worth, and based upon the ratio as established in Section 16 . 1 hereof , the water access fees ^ OFFMIAL RECORD ' 6 " CITY SECRETARY FT. FIRM, TEX. per new connection based upon Exhibit "A" attached hereto and incorporated herein for purposes and intents . After June 5 , 1993 , Customer agrees to pay access fees in such amounts as may be determined in the manner provided elsewhere herein. "16 . 11 Fort Worth and Customer agree that the methodology for j the calculation of access fees required herein is consistent with the methodology prescribed by Chapter 395 , Texas Local Government Code . In the event that such statutory methodology is amended or replaced by a new statute, the Wholesale Water Advisory Committee may engage legal counsel to work with Fort Worth to propose amendments to this contract to conform it to such amendment or new statute . The reasonable cost of such legal counsel shall be system cost . " 5 . All other terms and conditions of City of Fort Worth City Secretary Contract No. 17201 not amended hereby are unaffected and continue in full force and effect . IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their respective officers thereunto duly authorized. OFFICIAL RECAlD. 4ERRETARY f1� '' !"2 T°�, TEX. E u 7 ATTEST: CITY OF FORT WORT _ B y -- --- --------- -- — City Secretary City Manager APPROVED AS TO FORM AND LEGALITY : Date: City Atto ey ATTEST: BENBROOK WATER & SEWER AUTHORITY --- - - - ------- ---- B y ' ----. . --- - - ----- -- - - --- -- esi 4t Bo r Directors APPROVED AS TO FORM AND LEGALITY: Date: Attorney Contract Authorization Date 8 EXHIBIT "A" I . Wholesale System Access fee schedule to be collected, effective January 1 , 1991 . METER EQUIVALENCY WATER ACCESS SIZE FACTOR FEE 3/411 1 $ 251 . 70 l" 1 . 75 440 . 48 1 1/2" 4 1 ,006 . 80 211 7 1 , 761 . 90 3" 16 4 , 027 . 20 4" 28 7 ,047 . 60 6" 64 16, 108 . 80 8" 100 25 , 170 . 00 10" 150 37 ,755 . 00 II . Wholesale System Access Fee schedule to be collected, effective October 1 , 1991 . METER EQUIVALENCY WATER ACCESS SIZE FACTOR FEE 3/4" 1 $ 293 . 65 l" 1 . 75 513 . 89 1 1/2" 4 1 , 174 . 60 21' 7 2 ,055 . 55 311 16 4 , 698 . 40 4v' 28 8 , 222 . 20 6" 64 18 , 793 . 60 8" 100 29 , 365 . 00 10" 150 44 ,047 . 50 III . Wholesale System Access Fee schedule to be collected, effective October 1 , 1992 until June 5 , 1993 . METER EQUIVALENCY WATER ACC VFICIAL RE�ON SIZE FACTOR FEE `3/4" 1 $ 3 3 5 . E CITY SECRETARY 1 1/2" 4 . 75 1 , 342 . 40 587 - 3( sT. WORTH, TES. 2v' 7 2 , 349 . 20 A 3" 16 5 , 369 . 60 4" 28 9 , 396 . 80 6" 64 21 , 478 . 40 8" 100 33 , 500 . 00 loll 150 50 , 340 . 00 "I LN FILE-1 CCOUNTING2 City of ,Fort worth, Texas _.a City 1tAY.SPORiATIONIPUBLIC WORK$• Coum* C;�nnmunicat�conCrfR AOMINI37RA� and y t / i / rat 1.�� _ z z d r �7L G � -� lip ` A ACT. REFERENCE NUMB �**C_12936 WHOLE 1 of 2 07/02/91 SUBJECT AMENDMENTATONCIiTYTORDINANCE WHOLESALE NO. 10601, REVISINGATHEWATER IMPACTGFEEMCOLLECTION SCHEDULE RECOMMENDATION: It is recommended that 1. The City Council approve the contract amendment revising the wholesale water and wastewater contracts concerning impact fees, and 2. Amend Ordinance 10601, revising the impact fee collection schedule and Section 1.10(a) deleting the phrase "whichever comes first." DISCUSSION: On June 5, 1990 the City Council adopted Ordinance 10601 establishing water and wastewater impact fees and amending Chapter 35 of the Code of Fort Worth. The ordinance also included Schedule 1 and Schedule 2 for assessment and collection of impact fees. Under the ordinance a new development in Fort Worth is assessed at the time of final platting using Schedule an dSpaysthe hechedule 2fee at the time a building permit is approved using the fees established The wholesale water and wastewater contracts includethe same size and/or type oi charging connection customers a fee equal to the charge imposed f made within the jurisdiction of Fort Worth. The amount of the fee is tied to Schedule 2 of the Fort Worth impact fee ordinance. On September 6, 1990 the Tarrant County Mayor' s Council , City of Forest Hill , City of Hurst, City of Keller, City of North Richland Hills and City of Edgecliff Village jointly filed a lawsuit against the City of Fort Worth seeking to invalidate Fort Worth Ordinance 10601 and the section of their contracts concerning access fees. City Council directed staff to negotiate with representatives from the wholesale customers. A settlement t was customer hard nd si gnedparpond by the tract amendment. County Mayor' s Council and each wholesale The major changes included in the contract amendment include: o amending or adding definitions for the terms 'wholesale system access fee, capital improvement and facility expansion; o allowing either the wholesale customer or Fort Worth to charge impact fees in excess of the wholesale system access fee; o establishing a separate interest bearing account which is audited annually; Printed on recyded paper city of Fort Worth, Texas Mayor and Council unication 1 E E NUMBER PA DATE 07/02/91 **C-12936 NAM 60WHOLE 2 of 2 SUBJECT CONTRACT AMENDMENT TO THE WHOLESALE WATER AND WASTEWATER AGREEMENTS AND AMENDMENT TO CITY ORDINANCE NO. 10601, REVISING THE IMPACT FEE COLLECTION SCHEDULE o creation of a wholesale advisory committee which assists in the selection of a consultant to assist Fort Worth in developing land use assumptions, identifying capital improvements and formulations of access fees every three years; o an exhibit detailing the maximum wholesale system access fee amount effective until June 5, 1993. The revision of the wholesale system access fee establishes fee collection schedules which are different from those contained in Schedule 2. The collection schedule for the water impact fee was set at 30% of the maximum assessable for January 1, 1991 to September 30, 1991 , 40% of the maximum assessable for October 1, 1991 to September 30, 1992 and 50% of the maximum assessable for October 1, 1992 to September 301 1993. The wastewater impact fee was established at $161 for a 3/4" meter, or approximately 12.5% of the maximum assessable effective for the date of the ordinance through September 30, 1991. No fee was established for wastewater beyond that date. The wholesale water contract amendment reduces the collection schedule percentages after September 30, 1991 to 35% of the maximum assessable for October 1 , 1991 to -September 30, 1992 and 40% of the maximum assessable from October 1 , 1992 until June 5, 1993. MG:t Adopted OCullla iCe /42L27 Su tte or C ty Manager's FUND ACCOUNT CENTER AMOUNT T Y Office by: to CITY COUNCIL Mike Groomer 6140 Originating Department Head: J U L 2 1,091 Richard Sawey 8207 rom For Additional Information Contact: City Secretary of :he Richard Sawey 8207 City of Fort worth, Texas 0 Prlyded on recycled paper WATER.,,...IMPACT__FEE._._ PROPOSED SCHEDULE 2 WHOLESALE IMPACT DATE ( ORDINANCE 10601 ) FEE Jan . 1 , 1991-Sept . 30 , 1991 30: of max Of max 3 30x of max Oct . 1 , 1991-Sept . 30 , 1992 40% of max 40 Oct . 1 , 1992-Sept . 30 , 1992 50: of max ( 10/1/92-6/5/93 ) WA51EWATER_....IMPACT,_F_EE PROPOSED SCHEDULE 2 WHOLESALE IMPACT DATE ( ORDINANCE 10601 ) FEE $161 ( Approx . June 5 , 1990-Sept . 30 , 1991 $1612 .5: of max ) 35: of max Oct . 1 , 1991-Sept . 30 , 1992 40: of max Oct . 1 , 1992-Sept . 30 , 1993 --