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HomeMy WebLinkAboutContract 7430CONTRACT FOR WATER SERVICE BETWEEN THE ci ry, SECRET,� o- CITY OF FORT WORTHTEXAS AM THE , CONTRACT N2 CITY OF CROWLEY THE STATE OF TEXAS I COUNTY OF TARRANT X THIS CONTRACT AND AGREEMENT made and entered into this "gVe, day ,of 1973, by and between the City of Fort Worth, a municipal corporation located in Tarrant County, Texas, acting by and through its duly authorized city manager, R. N. Line, and the City of Crowley, a municipal corporation located in Tarrant County., Texas, acting by and through its duly authorized mayor, Harry Teeter, 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 Crowley is served by a well water supply and water distribu- tion system within the corporate limits,of such city; and, WHEREAS, the well water supply and water distribution system serving the City of Crowley,is owned by the City of Crowley; and, WHEREAS, the City of Crowley does not now have and cannot provide economically and within a reasonable period of time, any other source of additional water supply to its distribution system; and WHEREAS, the City of Crowley is in need of such additional water supply; and WHEREAS, it is deemed to be in the best interest of both the City of Fort Worth and the City of Crowley that said cities do enter into a mutually satisfactory agree- ment by means of which the City of Crowley 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 Crowley do hereby covenant and agree as follows: M TERMS AND CONDITIONS. The City of Fort Worth agrees..to furnish and sell to the City ofCrowleytreated water under.the normal operating pressure prevailing intheCity of Fort Worth's water distribution system at the point or points of delivery. The City of Crowley agrees to accept delivery under the conditions of this agreement and to pay for the same.in accord- ance 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 Crowley 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 Crowley will be reduced in the same proportion to the reductions in quantity of water being furnished other customers served by the City of Fort Worth in the same vicinity. 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 Crowley shall: Institute and apply the same rationing, conservation measures or restrictions to the use of water by the customers of the,City of Crowley, so long as any part of the total water supply of the City of Crowley is being furnished by the City of Fort Worth, and any failure by the City of Crowley to comply with this provision or the other pro- visions of this agreement 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 Crowley agree that if the City of Fort Worth shall 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 M amended to provide the same terms and conditions with respect to,the sale of treated water to the City of Crowley. At the request of the Director of the Fort Worth Water. Department, the City of Crowley agrees to furnish water to areas and premises situated adjacent to the boundary of Crowley and within the boundaries of the City of Fort Worth. Mains, services, meters and appurtenances shall be constructed by the City of Fort. Worth in accordance with the policy for the installation of community facilities in the City of Fort Worth. The con- nection of such services shall not be detrimental to the furnishing of water to exist- ing or potential customers within the city limits of Crowley.Approach mains required to be built in the City of Crowley to serve such areas shall be provided by the developer in accordance with the policies and procedures of the City of Crowley. The metered quantity of water used in this area each month by the City of Fort Worth shall be the total of all individual customer meter readings. At the option of the City of Crowley or the City of Fort Worth, a master meter shall be installed at the expense of the City of Fort Worth to meter all water used by the City of Fort Worth under the terms of this section. The metered quantity of water furnished by the City of Crowley to the City of Fort Worth shall be deducted from the total quantity of water withdrawn from the Fort Worth system by the City of Crowley before the charge for water service to the City of Crowley by the City of Fort Worth is cdmputed in accordance with the,payment computations set forth and based on the,commodity charge described herein and the quantity of water. 2. All water furnished under.this agreement by the City of Fort Worth 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 in- stalled and operated by the City of Fort Worth. The City of Crowley shall pay to the City of Fort Worth the cost of the meter, recording and transmitting equipment"and appur- tenances plus the installation and maintenance cost thereof.. -3- 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 Crowley. 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. 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 reasonable 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 representa- tives of both cities have been notified and given a reasonable opportunity to be present: Either the City of Crowley 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,mas ter meter, provided that if such check meter is installed the same rules and regulations, relative to its operation, maintenance, and reading 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 inter- vals 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 immediate notice, 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 -4- 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 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 Crowley agrees to appropriate annually sufficient funds to pay the, monthly charge for water service. The water charge to be paid by the City of Crowley to the,City of Fort Worth shall be deemed a current expense of the,City of Crowley for, each year of this contract as such monthly charges become due and payable. I 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. nVVTMTTTnM4:Z "Annual consumption" is the,total quantity of water purchased under the terms of this contract by the City of,Crowley 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. -5,- "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 rate11.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 trans mission 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 Improvement District #1 to the City of Fort Worth for raw water to be sold to the City of Crowley plus 16 per- cent of said rate representing. Fort Worth water system losses., "Rate of use charge11 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 contemplating 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 proportionate parts of the maintenance and operation cost as related to the production and trans- M mission 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 Crowley 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 19.1 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 proportion- ately when the raw water cost paid by.the City of Fort Worth for water avail- able for treatment and sale to the City of Crowley is increased or decreased. At the time o.f,execution of this contract, the rate,,including 16 percent for system losses, to the City of Crowley is 10.5 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. 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 1971-72. 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. 9 PAYMENT FOR WATER Payment of charges to the.City of Fort Worth for water used by the City of Crowley shall'be made as follows: 1. Minimum annual payment The minimum annual payment,shall be the charges computed for all waterdelivered by.the City of Fort Worth to the City of Crowley during the fiscal year based on rates provided herein, 2. Maximum rate of delivery The maximum rate of delivery at the initial point of connection shall be 0.6 MGD. Maximum rates of delivery at subsequent points of delivery, or variation of the rate at the initial point of connection, shall be as mutuallyagreed upon by.the parties hereto. 3. Minimum monthly charge The minimum monthly charge will be the charge computed for all water delivered to the City of Crowley during the,applicable calendar month based on rates pro- vided -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 withdrawn from the Fort Worth system during the month. IM 5. Annual payment The actual total annual payment for water by the City of Crowley shall be related to the annual and peak volumes used by the,City of Crowley 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 Crowley 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 Crowley will buy all water required to fulfill its additional supply needs from Fort Worth,: The rate used in the example is based on.the City of Crowley's not being in,the Tarrant County Water Control and Improvement District No., 1 and water being withdrawn at one metering station. Month Usage Der Month. Gallons Monthlv Payments October November December January February March April May June July August Subtotal September.peyment Total Maximum Day for the Year Maximum Hour for the Year Annual Payment Calculation 1,0000000 1,000,000 1,000,000 1,0.00,000 100000000 2,000,000 3,000,000 3,000,000 3,000,000 3,000,000 4,900,000 23,000,000 3,000,000 26,000,000 26,000 x .191 $ 4,966.00 .200 x 15,810 3,162.00 .320 x 7,070 2,262.40 12 x 25 x 1 30000 Total Annual Payment $ 10,690.40 Previous Payments October through August 8920.87 September Billing $ 1,769.53 $ 512.15 512.15 512.15 512.15 512.15 818.02 1,060.02 19060.02 1,060.02 1,060.02 1,302.02 $ 8,920.87 1,769.53 $ 10,690.00 200,000 gallons. 520,000 gallons per day rate Im 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. 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., a RIGHTS OF WAY The City of Crowley 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 Crowley as requested by the City of Fort Worth in order to construct and maintain water mains or facilities within the City of Crowley to furnish water to the City of Crowley 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 Crowley upon notice from the;City of Crowley at no cost to the City of Crowley. 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 performed within the City of Fort Worth. 10. STATE HEALTH DEPARTMENT APPROVAL The water system of the City of Crowley shall be approved by the Texas State Depart- ment of Health during the life of this contract. If at any time the water system of the City of Crowley 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 Crowley 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. RESALE OF WATER The City of Crowley 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 Crowley agrea,% to furnish the City of Fort Worth Water Department a complete rate schedule for all'City of Crowley water sales.. The City of Crowley will not make any extension of water lines beyond the city limits of the City of Crowley 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, to carry out its obligations under this agreement other than the obligation of the City of Crowley 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 reasonable time after the occurrence of the event or cause relied on, the obligation of the panty 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,,restraints of.government and people, civil distrrbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply, and inability on the part of the -12- City of Fort Worth to deliver water hereunder or the City of Crowley,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. APPROVED AS TO FORM AND LEGALITY: City Attorney ctbt,)Fort Worth Water Department ATTEST: CITY OF FORT WORTH B Ci C i y Ma age"" G CITY OF CROWLEY By: J, Mayox, Elm gal kt ..k . ..... .�,w .. IN W GUY of xas ftf Mayor and Coundal C., 67­_­' DATE REFER SUBJECT. Long Term City of PAGE NUMBE Crowley for Sale of Water and Separate 4 3/26/73 C-2480 Agreement for Construction of 16-1 ch Maln 10f — on October 16, 1972, Mr. John J. Burgess, representing the City of Crowley, advised the Director of the Water Department that the City of Crowley, desired to purchase water from the City of Fort Worth. It has been determined that the City of Crowley's requirements can be met by construction of an 8-inch-water main, extending west in F.M. 1187 from the City of Fort Worth s,Burieson Trans- mission Main in I-35W to the Crowley eastern city limits,., The Btwlleson Trans- mission Main has sufficient capacity to supply the City of Crowley's require- ments in this location. It is proposed that the City of Fort Worth pay the differential cost between an 8-inch main required to serve Crowley alone and a 16-inch main required to conform with the Water Department Master Plan for service to the area in the City of Fort Worth. on January 23, 1973, Carter and Burgess, Inc., submitted preliminary plans to the Water Department for the construction of the proposed 16-inch water transmission main for review. Based on the preliminary plans, the Water Pennrfment staff prepared draft agreements under which: 1. The City of Fort Worth would agree to supply water to the City of Crowley under the terms of a proposed standard long-term water sales agreement, and 2. The City of Fort Worth and the City of Crowley would agree to mutually finance construction of a 16-inch water transmission main extending west in F.M. 1187 from I-35W to the Crowley eastern city limit line. On March 8, 1973, the City Council of Crowley approved execution of the two proposed contract agreements by Mayor Harry Teeter of the City of Crowley, and these agreements have been forwarded to the City of Fort Worth for com- pletion of their execution. The terms of these agreements are outlined in the following paragraphs: WATER SALE CONTRACT Summary ���ions 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 the neighbor- ing communities. 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 - 19.1� per 1,000 gallons purchased. Cost of Facility Charge - An annual charge of $15,810 per M.G.D. for maximum day usage; and $7,070 per M.G.D. for maximum hour usage in excess of maximum day usage. DATE REFERENCE SUBJECT: Long Term Contract with City of PAGE NUMBER Crowley for Sale of Water and Separate 2 3/26/73 C-2480 Agreement for Construction of 16-Inch Main— of 4 ----I Service Charge - $25 per month per meter, for meter reading, billing and miscellaneous expense incurred with metering operations. Payment for Water The City of Crowley agrees to purchase and pay for all water delivered into the Crowley Water System by the City of Fort Worth, Monthly payments from the City of Crowley will be computed based on the "D" Schedule. 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 - This 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 effective retroactive to October 1, 1972, and will be based on the consultant's study. 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 Crowley is increased or decreased. The term of the contract is 27 years. Resale of Water - The City of Crowley agrees not to sell water at a rate lower than the City of Fort Worth rate for a similar customer located within Fort Worth. Meters - The master meter serving the City of Crowley will be located at the eastern city limits of Crowley on F.M. 1187, 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. other meters may be added in the future at mutually agreeable locations. Water to be Supplied by Crowley to Fort Worth - Should the City of Fort Worth desire to provide water service to an area in Fort Worth contiguous to Crowley, application may be made by the Water Department Director to the city of Crowley for approval of connection to City of Crowley water facilities. If sufficient capacity is available in the City of Crowley system, the requested connection will be approved, and the quantity of water provided by the City of Crowley to the City of Fort Worth through this connection will be deducted from the quantity of water supplied by the City of Fort Worth to the City of Crowley prior to computation of billing to the City of Crowley for water supplied by the City of Fort Worth. 16-INCH WATER TRANSMISSION MAIN CONSTRUCTION CONTRACT Plans an - The City of Crowley will contract, solely at its expense, with the firm of Carter and Burgess, Inc., to provide plans, specifications and right-of-way sketches as necessary for the construction of the 16-inch water transmission main extending DATE REFERENCE SUBJECT: Long Tem' Contract with City of PAGE NUMBER Crowley for Sale of Water and Separate 1 3 4 3/26/73 C-2480 Agreement for Construction of 16-Inch MaLff__ of — west in F.M. 1187, from connection to the City of Fort Worth water main in I-35W to the Crowley city limit line. These plans and specifications will be subject to approval by appropriate authorities of both the City of Crowley and the City of Fort Worth. Advertisement and Construction - The City of Fort Worth will advertise the approved plans and specifications for bids, receive and tabulate the bids, and award a contract for construction of the required 16-inch water transmission main, with the concurrence of the City of Crowley, and upon receipt of the City of Crowley's check in the net amount of the contract price, after deduction of the City of Fort Worth's portion of the contract cost. The City of Fort Worth's share of the construction cost shall be determined as the sum of: a. $6 per foot of the total length of the required 16-inch transmission main (approximately 5200 feet), and b. $1,320 per each of the three 16-inch valves to be installed in lieu of 8-inch valves. Based on the preliminary plans the estimated cost of the proposed 16-inch water transmission main will be approximately $120,000, distributed between the cities as follows: 5200' x $6 per foot = $ 31,200 3 ea. 16" in lieu of 811 gate valves @ $1,320 each = 3,960 Total City of Fort Worth's Share $ 35,160 City of Crowley Remainder of Project Cost _$_84_.?840 Total Estimated Project Cost $120,000 The determination of the extra size cost to the City of Fort Worth, between the 8-inch and the 16-inch main sizes, is based on the price differentials in the City's standard installation policy. Construction -Engineering - The City of Fort Worth shall, at its sole expense, provide all the necessary construction engineering on the proposed 16-inch, water transmission main, including acquisition of rights -of -way, highway permits, right-of-way crossing permits, stak- ing and inspection of construction, preparation of as -built records, and preparation of contractor's estimates. Approval of all change orders and the authorization of final payment on the contract will require concurrence by the City of Crowley. Final Project Cost Distribution - Upon completion of the construction of the 16-inch transmission main, the City of Crowley's initial DATE REFERENCE SUBJECT: Long Term Contract with City of PAGE NUMBER Crowley for Sale of Water and Separate 4 4 3/26/73 C-2480 Agreement for Construction of 16-Inch Main— Of — payment shall be conformed with the final contract cost, less the City of Fort Worth's participation as determined above, by refund to the City of Crowley or by additional payment by the City of Crowley, as appropriate. Ownership of Proposed 16-Inch Water Transmission Main - Title to the 1-6-inch water transmission main to be constructed under this contract shall at all times be vested in the City of Fort Worth, and the City of Fort Worth will be responsible for the operation and maintenance of this transmission main. Water Service Contract Contingency - This contract for mutual construc- tion of the 16-inch water transmission main is contingent upon execution of a contract for water sales as outlined above. Recommendation It is recommended that the contract to sell treated water to the City of Crowley and the contract to construct a mutually financed water transmission main to serve the City of Crowley be approved and that the City Manager be authorized to execute the contracts on behalf of the City of Fort Worth. SUBMITTED BY: CITY MANAGER DISPOSITION BY COUNCIL: ❑ APPROVED ❑ OTHER (DESCRIBE) PROCESSED BY CITY SECRETARY DATE