HomeMy WebLinkAboutContract 12720 TAR.2ANT COUNTY REGIONAL WATER SUPPLY FACILITIES
AMENDATORY CONTRACT
THE STATE OF TEXAS CITY SECRETARY
(`CV,11*�,,ACT
COUNTY OF TARRANT LKZj&)
THIS AMENDATORY CONTRACT (the "Contract") made and entered
into as of the Is-- day at September, 1982 (the "Contract
Date"), by and among TARRANT COUNTY WATER CONTROL AND !MPROVE-
MENT DISTRICT NUMBER ONE (the "District") , a water control and
improvement district (and a conservation and reclamation
district) and political subdivision of the State of Texas,
created and functioning under Article 16, Section 59, of the
Texas Constitution, pursuant to the general laws of the State
of Texas, including Chapter 51, Texas Water Code, and which is
authorized to issue bonds under the provisions of Chapter 268,
Acts of the 555th Legislature, Regular Session, 1957, as amended
(collectively the "District Act") , and the following:
CITY OF FORT WORTH, IN TARRANT COUNTY, TEXAS,
CITY OF ARLINGTON, IN TARRANT COUNTY, TEXAS,
CITY OF MANSFIELD, IN TARRANT AND JOHNSON COUNTIES,
TEXAS, and TRINITY RIVER AUTHORITY OF TEXAS
(collectively the "Initial Contracting Parties").
W I T N E S S E T H
WHEREAS, the Cities of Fort Worth, Arlington, and
Mansfield are duly created cities and political subdivisions of
the State of Texas operating under the Constitution and laws of
the State of Texas, including their respective Home Rule
Charters; and
WHEREAS, Trinity River Authority of Texas is an agency and
political subdivision of the State of Texas, being a
conservation and reclamation district created and oneratin(T
under Chaoter 568, Acts of the 54th Leg attire, Regular
Session, 1955, as amended Ithe "Author4ty Act") , pursuan�: to
Artiee 16, Section 59, of the Texas ConStitlaticn; and
,-JEREAS, the Di,-4 1-rict and the _ems.sial Contracting Parties
are authorized to enter into this Contract pursuant to the
District Act, Vernon's Ann. Tex. Clv. St. Article 4413 32,)
�_Tnterlocal Ccoperation, Act"), the Autlnorit-Y Act, a,,,,d
other applicable laws� and
k
WHEREAS, the District presently owns and operates surface
raw water supply facilities which consist primarily of Eagle
Mountain Dam and Reservoir and Bridgeport Dam and Reservoir, on
the West Fork of the Trinity River, and Cedar Creek Dam and
Reservoir on Cedar Creek in Henderson and Kaufman Counties (the
"Existing System"); and
WHEREAS, the District duly issued the following described
bonds which were issued to accuire and construct, or to refund
bonds issued to acquire and construct, the Cedar Creek Dam and
Reservoir and related facilities:
Tarrant County Water Control and Improvement District
Number One Combined Water Revenue and Unlimited Tax
Refunding Bonds, Series 1977, dated December 1, 1-977, now
outstanding in the aggregate principal amount of
$44,205,000 (the "Series 1971 Bonds"), and
Tarrant County Water Control and Improvement District
Number One Water Revenue Bonds, Series 1979, dated March
1, 1979, in the original principal amount of $7,750,000
(the "Series 1979 Bonds"), all of which Series 1979 Bonds
were refunded by part of the Series 1979-A Bonds
hereinafter described; and
WHEREAS, the District presently supplies and sells raw
water from the Existing System to the Initial Contracting
Parties under various contracts now in effect; and it is
acknowledged and agreed that the Existing System is inadequate
to provide known future raw water requirements, thus making
contracts similar to this Contract necessary to enable the
District to acquire and construct additional raw water supply
facilities and make it possible for the District to supply such
requirements; and
WHEREAS, the existing water supply contracts with the
Initial Contracting Parties recognize that the District has
assumed the responsibility for providing additional water
supply sources as needed by the initial Contiacting Parties,
subject to suitable feasibility and and that tha
payments to be made by the Init-lal Cont-ract-,ng Parties would be
increased in amounts sufficient to pay such parties" pro rata
share of t2lie, necessary costs of such additional sources; and
Wli`EREAS the District proposes to acquire, r,;onstruct, and
'co mplette additicnall surface raw water sup ly lac il 1'tJ es
including
a us--, and reser=,olr on Richland and Chambers Creeks
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in Navarro and Freestone Counties and an adjacent dam and
reservoir on Tehaucana Creek in Freestone County, and all
related pipelines, pumps, and other facilities to enable the
District to supply raw water from such sources to Contracting
Parties and to others (the "Project"); and
WHEREAS, the Project is described in a report of Freese
and Nichols, Inc., Consulting Engineers, Fort Worth, Texas,
entitled "Tarrant County Water Control and Improvement District
Number One Resort on Sources of Additional Water Supply, March,
L979"; and
WHEREAS, such report, including all amendments and
supplements thereto made prior to the execution of acquisition
and construction contracts for the Project and as changed by
change orders entered after acquisition and construction
contracts for the Project have been executed, is hereinafter
called the "Engineering Report"; and
WHEREAS, the Existing Facilities and the Project here-
inafter are referred to collectively as the "System"; and
WHEREAS, the District duly entered into a "Tarrant County
Regional Water Supply Facilities Contract", dated as of August
29, 1979, with the Cities of Fort Worth and Mansfield (the
"Base Contract"), which Base Contract is hereby adopted by
reference with the same effect as if set forth in its entirety
in this Contract; and
WHEREAS, pursuant to the Base Contract, and in connection
with the Project and the refunding of the Series 1979 Bonds, on
October 10, 1979, the District duly issued and presently has
outstanding the following described bonds:
Tarrant County Water Control and Improvement District
N-umber One Water Revenue Bonds, Series 1979-A, dated
October 1, 1979, ncw outstanding in the principal amount
of $342,75C,00O (the "Series _11979-A Bonds"); and
WHEREAS, the Base Contract provides that the District is
authorized to enter into similar contracts with additional
contracting parties, prescribed the procedures therefor, and
specifically recognized that Trinity River Authority of Texas
and the City of Arllnlgton were expected to Itecone such
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additional contracting parties and execute contracts similar to
the Base Contract; and
WHEREAS, the District and Trinity River Authority of Texas
duly executed a "Tarrant County Regional Water Supply Facili-
ties Supplemental Contract for Trinity River Authority of
Texas", dated as of December 12, 1979 (the "Trinity River
Authority Contract") which was similar to the Base Contract and
complied with all requirements prescribed thereby, which
Trinity River Authority Contract is hereby adopted by reference
with the same effect as if set forth in its entirety in this
Contract; and
WHEREAS, on or about July 13, 1971, the District and the
City of Arlington executed a water supply contract (the
"Arlington Contract"), which Arlington Contract is hereby
adopted by reference with the same effect as if set forth in
its entirety in this Contract; and
WHEREAS, the District and the City of Arlington now wish
to enter into a contract similar to the Base Contract and the
Trinity River Authority Contract, but due to the expiration of
certain time limits set in such contracts for the Citv of
Arlington to execute a similar contract so as to be on a parity
with the Cities of Fort Worth and Mansfield and Trinity River
Authority of Texas with respect to priority of water supply
rights, it is necessary to obtain the approval of the Cities of
Fort Worth and Mansfield and Trinity River Authority of Texas
to enable the City of Arlington to have the status of an
Initial Contracting Party under the Base Contract on a parity
with the others; and
WHEREAS, it is deemed necessary and advisable by the
parties hereto to make certain modifications and amendments to
the Base Contract and the Trinity River Authority Contract with
respect to billing procedures and other matters, and to modify
and amend the Arlington Contract to set forth additional
rights, duties, and obligations of the City of Arlingtcn w J_t-
respect to the System and the Bonds; and it is deemed conven-
ient and advisable by the parties hereto, tln.at all of the
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aforesaid existing water supply contracts between the parties
hereto be modified and amended so that the entire relationship
between the District and all of the Initial Contracting Parties
with respect to the System and the Bonds will be set forth in
this Contract; and
WHEREAS, it is specifically represented, certified, and
covenanted by the parties hereto that none of the modifications
or amendments to the Base Contract, the Trinity River Authority
Contract, or the Arlington Contract which will occur as a re-
sult of entering into this Contract will in any way have an
adverse effect on the operation of the System or the rights of
the owners of the Bonds; and that this Contract will provide
additional security for the owners of the Bonds by obligating
the City of Arlington to make unconditional and specific addi-
tional payments with respect to the System and the Bonds; and
WHEREAS, the provisions of this Contract are in substance
essentially the same as the provisions of the Base Contract and
the Trinity River Authority Contract, and basically restate and
follow the form and substance thereof except for adding the
City of Arlington as an Initial Contracting Party, for certain
updating, and for establishing certain billing procedures and
adjustments between the parties with respect to the use of and
payments with respect to certain water from the System, which
billing procedures and adjustments are solely between the
Initial Contracting Parties and do not affect the unconditional
obligations of such parties with respect to the System and the
Bonds.
NOW, THEREFORE, in consideration of the mutual covenants
and agreements herein contained, the District agrees to use its
beat efforts to aca—ai-re, const-ruct, and complete the Pro4ecl: in
general accordance with tine Engineering Report, and to supply
raw water to the Contracting Parties and others frorr the System
(which includes the Existing System and the Project}, upon and
subject to the terms and conditions hereinafter set forth; and
sub,ject to the provisions of Sectlon 81"d) hereof� the I}-.strict
and the lni-_ial Contractinq Partias agree that the Base
5
Contract, the Trinity River Authority Contract, and the
Arlington Contract are hereby modified, amended, combined, and
consolidated so as henceforth to be in their entirety and for
all purposes, as follows, to-wit:
Section 1. DEFINITION OF TERMS. The following terms and
expressions as used in this Contract, unless the context
clearly shows otherwise, shall have the following meanings:
A. "Additional Contracting Party" means any party not
defined as one of the Initial Contracting Parties with which
the District makes a contract similar to this Contract for
supplying raw water from the System, provided that after
execution of any such contract such party shall become one of
the Contracting Parties for all purposes of this Contract,
unless otherwise provided herein.
B. "Adjusted Annual Payment" means the Annual Payment, as
adjusted during or after each Annual Payment Period, as pro-
vided by this Contract.
C. "Advisory Committee" means the committee to be created
to consult with and advise the District with respect to the
System as provided in Section 10 of this Contract.
D. "Annual Payment" means the amount of money to be paid
to the District by each of the Contracting Parties during each
Annual Payment Period as its proportionate share of the Annual
Requirement.
E. "Annual Payment Period" means the period beginning on
October 1 of each calendar year and ending on the last day of
September of the next calendar year; provided, however, that
the first Annual Payment Period under this Contract shall be
the period of March 1, 1980, through February 28, 1981, and the
s e c o nd An nu a I P a yzn e n t P e r i ow d u nd e r _his C o,tract s h a,_1 I "be M a r C h
1, 1981, through September 30, 1981, and all payments
heretofore made by all initial Contracting Parties, including
the City of Arlington, shall be revised and adjusted as if this
Contract had been in effect as of March 1, 1980, subject to the
prow s_Jons of Secticri 4C(b) hereof,
F. "Annual Requirement" means the total amount of money
required for District to pay all Operation and Maintenance
Expenses of the System, to pay the debt service on its Bonds,
to pay or restore any amounts required to be deposited in any
special or reserve funds required to be established and/or
,maintained by the provisions of the Bond Resolutions.
G. "Bond Resolution" means any resolution of the District
which authorizes any Bonds.
H. "Bonds" means the Series 1977 Bonds, the Series 1979-A
Bonds, and all bonds hereafter issued by the District, whether
in one or more series or issues, and the interest coupons
appertaining thereto, to acquire, construct, complete, improve,
or extend the Project, and/or to improve or extend the Existing
System_and any bonds issued to refund any Bonds or to refund
any such refunding bonds.
I. "Contracting Parties" means the "Initial Contracting
Parties", as defined in the first paragraph of this Contract,
together with any other party or parties which hereafter be-
comes one of the Contracting Parties by becoming an Additional
Contracting Party.
J. "Contracting Party" means any one of the Contracting
Parties.
K. "District" means the "District" as defined in the
preamble to this Contract.
L. "Engineering Report" means the "Engineering Report" as
defined in the preamble to this Contract.
M. "Existing System" means the "Existing System" as
defined in the preamble to this Contract,
N, "MGD" is an abbreviation for "million gallons of water
per day" and means a quantity of water during a period of time
expressed for convenience in terms of an average annL�al daily
quantity during an Annual Payment Period. The -,.,a-7ue of two
,MGD, for example, is calculated as follows: two million
gallons r
,U tipl4ec
by the number of days in an Annual Payment
Period,
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0. "Operation and Maintenance Expenses" means all costs
and expenses of operation and maintenance of the System, in-
cluding (for greater certainty but without limiting the gen-
erality of the foregoing) repairs and replacements for which no
special fund is created in the Bond Resolutions, operating
personnel, the cost of utilities, the amounts required to pay
the U.S. Army Corps of Engineers for water storage rights in
Benbrook Reservoir used by Fort Worth as permitted by Section
3A(a) and 4C(b) hereof, the costs of supervision, engineering,
accounting, auditing, legal services, supplies, services,
administration of the System, and equipment necessary for
proper operation and maintenance of the System, and payments
made by District in satisfaction of judgments resulting from
claims not covered by District's insurance arising in connec-
tion with the operation and maintenance of the System. The
term also includes the charges of the bank or banks where the
Bonds are payable. The term does not include depreciation.
P. "Project" means the "Project" as defined in the pre-
amble to this Contract, and as provided in the Engineering
Report.
Q. "Series 1977 Bonds" means the "Series 1977 Bonds" as
defined in the preamble to this Contract.
R. "'Series 1979 Bonds" means the "Series 1979 Bonds" as
defined in the preamble to this Contract.
S. "Series 1979-A Bonds" means the "Series 1979-A Bonds
as defined in the preamble to this Contract.
T. "System" means collectively the Existing System and
the Project; and the term System now means and includes and in
the future shall mean and include only the water supply facili-
ties of the District, and such term specifically does not mear,
or include and will not mean or include any flood control
facilities or other non-water sunolv facilities of the Dis-
trict.
Section 2. CONSULTING ENGINEERS; CONSTRUCTION OF _IROiZCT_
The Distract and the Contracting Pa ea agree that Freese and
Nichols, Inc, shall he the Consulting Engineers for the
Project, provided that the Consulting Engineers may be changed
at the option of the District. The District agrees to use its
best efforts to acquire and construct the Project, and agrees
that the Project will be acquired and constructed in general
accordance with the Engineering Report. It is anticipated that
such acquisition and construction will be in phases and that
each phase will be financed by the District through the issu-
ance of one or more series or issues of its Bonds; and the
District agrees to use its best efforts to issue its Bonds for
such purpose. The proceeds from the sale and delivery of the
Bonds will be used for the payment of all of the District's
expenses and costs in connection with the Project and the
Bonds, including, without limitation, all financing, legal,
printing, and other expenses and costs incurred in issuing its
Bonds.
Section 3. QUANTITY, QUALITY, AND UNIT OF MEASUREMENT.
A. QUANTITY. (a) The District agrees to sell and to
deliver to each Initial Contracting Party, respectively, at the
applicable Point or Points of Delivery for each Initial Con-
tracting Party, as provided in Section 9 hereof, or at any
other Point or Points of Delivery as may be agreed upon between
the District and any Contracting Party. However, it is cove-
nanted and agreed that in the future each Contracting Party
shall have the sole responsibility, at its own cost and ex-
pense, for providing any additional pipelines and other facili-
ties required for transporting water from the System facilities
to new or additional Points of Delivery. Each Contracting
Party agrees to take at its Point or Points of Delivery, except
as -otherwise specifically provided in this Contract, all water
requ'red fcr use by such Contracti na Party during the entire
term Of this Contract, for such Contracting Party's own use and
for distribution to all customers served by such Contracting
Party`s distribution system, whether inside or outside its
boundaries. It 4.3 specifically provided, however, that after
the Contract C Date, no Contraczing Party shall enter into any
agreement to supply any water for use outside the boun. arles of
9
any city or other political subdivision which has entered into
a written water supply contract which was in force and effect
with such Contracting Party on February 28, 1980, unless each
such agreement is made subject and subordinate in all respects
to the water requirements of all of the Contracting Parties
collectively under this Contract. For the purposes of this
Section, the Cities of Lake Worth and Everman shall be deemed
to have had such a contract with the City of Fort Worth in
effect prior to February 23, 1980. No Contracting Party shall
become a party to any contract for the sale of water which
would violate or be inconsistent with the provisions of this
Contract, and all such contracts shall recognize the priority
of water use as provided in this Contract. It is the intention
of the parties hereto that, except for the City of Mansfield's
use of ground water produced from wells within its city limits
as said city limits existed on the Contract Date, which it is
hereby authorized to use without payment hereunder, and except
for the City of Arlington's use of water from Lake Arlington
and ground water produced from wells to which it is entitled,
but for all of which it must pay in accordance with Section
4(C) of this Contract, and except for the City of Fort Worth's
use of water from the Benbrook Reservoir on the Clear Fork of
the Trinity River, Lake Worth on the West Fork of the Trinity
River, and ground water produced from wells to which it is
entitled, but for all of which it must pay in accordance with
Section 4(C) of this Contract, the System shall be the sole and
exclusive source of all raw water supply for each of the Con-
tracting Parties; provided, however, that as to Trinity River
Authority of Texas the aforesaid provisions shall apply only to
its Tarrant Cc}irty Water Project, which supplies trea,'.8d water
to the Cities of Bedford, -mess, Grapevine, North Richland
.,ills, ColleyvIlle, and others. It is specifically recognized
that the City of Fort Worth is located wholly within the
boundaries of the Distri^t, sells water to custc,,,,iers
outside of the boundaries ol the Dist, _a_. . The District will
use its best-, efforts to remain in position to zurnisi% raw water
sufficient for the reasonable ;errands of each Contracting
10
Party, but its obligation shall be limited to the amount of
water available to it from the System. The District agrees to
use its best efforts to issue its Bonds in amounts necessary to
acquire, construct, maintain, improve, and extend the entire
System, including the Project, so as to enable the District to
furnish such water. However, in the event it becomes necessary
to ration water from the System, the initial Contracting
Parties shall, within the limits permitted by law, have abso-
lute priority to the use of all System water over all other
Additional Contracting Parties which later become Contracting
Parties; and all contracts with such later Contracting Parties
shall recognize such priority and be made subordinate thereto.
As between the Initial Contracting Parties, if water from the
System must be rationed such rationing shall-, within the limits
permitted by law, be done by the District on the basis of the
relative actual total amount of all water from the entire
System taken by each such Contracting Party, respectively,
during the last preceding Annual Payment Period in which
rationing among said parties was not necessary.
(b) If the District is at any time during the term of
this Contract unable to supply all the raw water requirements
of the Contracting Parties for any reason, or if it should
become apparent that the District will become unable to supply
the Contracting Parties with their raw water requirements, and
any Contracting Party determines that it is necessary to pro-
cure or use raw water from sources other than the District,
then such Contracting Party shall give written notice to the
District of its intention and desire to orocure raw water from
sources other than the •istrIct. WiY.Ihin thirty (30) days from
the receipt by the District of such written noz:ice, the Dis-
trict shall advise the Contracting Party in writing of whether
it agrees that such Contracting Party should procure raw water
from sources other than the District. In the event that the
District agrees that it i's necessary for such Contracting Percy
to orocure raw water tom other sources, 5uch Contracting Party
may proceed to procure such raw water from other sources at its
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sole cost, and without any liability for damages accruing in
favor of or against the District by reason thereof. if such
Contracting Party procures water additional to that supplied by
the District under this Contract, then such Contracting Party
shall nevertheless continue to take from the District and pay
for all raw water thereafter available to such Contracting
Party from the District's System up to the full raw water
requirements of such Contracting Party. If the District
disagrees with such Contracting Party's written notice concern-
ing the adequacy of the supply of raw water to be furnished by
the District, then the District within said thirty-day period
shall so advise such Contracting Party and the Advisory Com-
mittee, and thereafter the Advisory Committee shall make its
recommendations to the parties within sixty (60) days after
receipt of such notice. All Contracting Parties shall at all
times have the right to secure water from any possible source
in any emergency when the District is unable to deliver water
from the System because of any "Force Majeure" as defined in
this Contract.
B. OTHER CONTRACTS. (a) The District reserves the right
to supply water from the System to Additional Contracting
Parties under contracts similar to this Contract, subject to
the requirements concerning "minimums" and "premiums" as pro-
vided in Section 4C. hereof, and the priority of use of water
as provided in Section 3A. hereof. Each contract with any
Additional Contracting Party shall comply with the requirements
of this Contract, shall substantially restate the essential
provisions of this Contract, and shall be structured to be
similar hereto to the fullest extent applicable and practi-
cable, with such additions or changes as are necessary to meet
the actual- zircwnstances, with the effect that each Additional
Contracting Party will adopt the provisions of this Contract,
as supplemented and necessarily changed by its contract.
However, after the date of this Contract the District shall not
oc-ligate itself to deli-ver raw water fror. tae S,ys�_em to ally
future Additional Contracting Party if such obligar,_on would
12
jeopardize the District's ability 'to meet its obligation to
deliver the amounts of water from the System required by prior
Contracting Parties as provided in this Contract; and any such
contract with a future Additional Contracting Party shal1
recognize, and be made subordinate to, the prior rights to
water from the System of the Initial Contracting Parties.
(b) It is recognized and agreed that the District now has
System raw water supply contracts which will remain in full
force and effect, in accordance with their terms and provi-
sions, with the parties listed as follows: *
CUSTOMER & SOURCE
LAKE BRIDGE PORT
Wise County Water Supply Dist.
Texas Industries
City of Bridgeport
Lake Bridgeport Properties
EAGLE MOUNTAIN
Tarrant Utility Co.
Community Water Supply Corp.
City of Azle
City of River Oaks
City of Springtown
Tarrant County M.U.D. #1
Texas Electric Service Co,
CEDAR CREEK LAKE
Ellis Water Co.
City of Mabank
City of Trinidad
Cedar Creek Country Club
SW Water Service, Inc. (Beachwood Estates)
Tamarak (Cross/Tam Venture)
City of Kemp
Community Water Co. (Tool Plant)
Community Water Co. (Woodcanyon Plant)
Community Water Co. (Southwood Plant)
Community Water Co. (Eastwood Plant)
Community Water Co. (Cedarcrest Plant)
Engel Utility Co.
C-T Water Supply Co. (Carolynn Estates)
Johnson Engineering Co. (Country Club)
C-T Water Supply Co. (Deep 'Water Plant)
C-T Water Supply Co, (Oak Shores)
Southwest Water Service, inc,
Texas Electric Service Cc.
West Cedar Creek Municipal Utility District
The District shalt the aforesaid existing raw water
supply contracts and charge the maximum rates, including
interest for late payment, permitted t-hereunder during the
terms therecf. Upon the Pxpiral.on of eaco, such con.tract with
any party the District thereafter may sell water to such party
13
only on the basis that it is a new customer with respect to
System water.
It is further recognized and agreed that in the future the
District may sell raw water from the System to parties which
are not Additional Contracting Parties, provided that all such
future sales of raw water from the System to parties which are
not Additional Contracting Parties shall in all respects be
subordinate to the prior rights of the Contracting Parties to
raw water from the System, and all such sales and contracts
relating thereto shall recognize, and be made subordinate to,
such prior rights.
C. QUALITY. The water to be delivered by the District
and received by each Contracting Party shall be raw, untreated
water from the System. Each Contracting Party has satisfied
itself that such water will be suitable for its needs. The
District and the Contracting Parties shall cooperate, each
within its legal powers, in preventing all possible pollution
and contamination of the reservoirs and watersheds from which
System water is obtained. To the extent practical the District
shall operate the Cedar Creek and Project components of the
System so as to provide approximately equal chemical raw water
quality from such sources to each Contracting Party.
D. UNIT OF MEASUREMENT. The unit of measurement for
water delivered hereunder shall be 1,000 gallons of water,
U. S. Standard Liquid Measure.
Section 4. FISCAL PROVISIONS.
A. FINANCING THE SYSTEM. Sub-ect to the terms and
provisions of this Contract, the District will provide and pay
for the cost of the acquisition and construction of the Project
and all System facillities, by using its best efforts Vc issue
its Bonds in amounts which will be sufficient --n accomplish
such purposes, and the District will own and ,perate the
Svstem.
B. -V'YU7,L REQUIREMENIT. It i a ack,7,owledged and agrees;
tl�at pay me.nts to De made under th-s Contract and sinmLlar
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tracts with Additional Contracting Parties will be the primary
source available to the District to provide the Annual Require-
ment, and that, in compliance with the District's statutory
duty to fix and from time to time revise the rates of
compensation or charges for water sold and services rendered
and made available by the District, the Annual Requirement will
change from time to time, and that each such Annual Requirement
shall be allocated among the Contracting Parties as hereinafter
provided, and that the Annual Requirement for each Annual
Payment Period shall at all times be not less than an amount
sufficient to pay or provide for the payment of:
(a) An "Operation and Maintenance Component" equal
to the amount paid or payable for all Operation
and Maintenance Expenses of the System; and
(b) A "Bond Service Component" equal to:
(1) the principal of, redemption premium, if
any, and interest on, its Bonds, as such
principal, redemption premium, if any,
and interest become due, less interest to
be paid out of Bond proceeds or from other
sources if permitted by any Bond Resolution,
and all amounts required to redeem any Bonds
prior to maturity when and as provided in
any Bond Resolution; and
(2) the proportionate amount of any special
or reserve funds required to be accumulat-
ed and maintained by the provisions of any
Bond Resolution; and
(3) any amount in addition thereto sufficient
to -restore any deficiency in any of such
funds recuired to be accumulated and
maintained by the provisions of any Bond Reso-
lution.
C. PAYMENTS FOP, SERVICES, (a) For the water supply to
be provide= to the Contracting Parties under this Contract,
each of the Lontracting Parties agrees to pay, at --he t me and
15
in the manner hereinafter provided, its proportionate share of
the Annual Requirement, which shall be determined as hereafter
described and shall constitute a Contracting Party's Annual
Payment. Each of the Contracting Parties shall pay its part of
the Annual Requirement for each Annual Payment Period directly
to the District, in approximately equal monthly installments to
the extent that equal installments are practicable, on or be-
fore the 10th day of each month.
(b) For each Annual Payment Period each Contracting
Party's proportionate share of the Annual Requirement shall be
the amount calculated by estimating each Contracting Party's
total annual water use during such period (and, for Fort Worth,
the estimated portion of such total usage that will be
attributable to its sale of water to its customers outside the
boundaries of the District) , all as determined by the District
in consultation with each of the Contracting Parties, and by
multiplying the number of thousands of gallons so estimated to
be used by each Contracting Party times the sum of the rate of
x and the applicable premium per thousand gallons, with x and
the applicable premium per thousand gallons to be calculated
for such Contracting Party in accordance with paragraph (d) ,
below. Fort Worth's use of Benbrook Reservoir water, Lake
Worth water, and ground water produced from wells and
Arlington's use of all Lake Arlington water and ground water
produced from wells shall be included and deemed to be the use
of System water for all purposes of this Contract, but
Mansfield's use of ground water produced from wells within its
city I limits as said city limits existed on the Contract Date
shall be excluded and shall not be paid For. All such Payments
each Painual Payment Period shall be made In accordance with
a schedule of payments for the appropriate Annual Pavmrent
Period .which will be supplied to each c4 the Contracting
Parties by the District. At the close of each Annual Payment
Period the District shall determine the actual measured number
of thousands 1. Iris of raw wat-r taken by earn, Contracting
Party duriniq said period, each Party's Adjusted
16
Annual Payment shall be the amount calculated by multiplying
the number of thousands of gallons so taken by such Contracting
Party times the sum of the rate of x and the applicable premium
per thousand gallons, with x and the applicable premium to be
calculated in accordance with paragraph (d) , below. The
difference between each estimated Annual Payment pursuant to
which each Contracting Party has made payments and the actual
Annual Payment, if any, when determined, shall be applied as a
credit or a debit to each Contracting Party's account with the
District and shall be credited or debited in one-twelfth in-
crements to each Contracting Party's next twelve monthly pay-
ments, or as otherwise agreed between the District and the
affected Contracting Party, provided that all such credits and
debits shall be made in a timely manner within the next Annual
Payment Period. It is recognized, however, that the Contract
Date is within the third Annual Payment Period, and that the
payments which would have been due prior to the Contract Date
must be adjusted among the Initial Contracting Parties as if it
had been in full force in effect on March 1, 1980. Therefore,
notwithstanding the other provisions of this Contract, any
adjusted amounts due by any Initial Contracting Party with re-
spect to the first two Annual Payment Periods, and for that
part of the third Annual Payment Period to the Contract Date,
shall be paid, in addition to the monthly payments required for
the remainder of the third Annual Payment Period and each
Annual Payment Period thereafter, in approximately equal month-
ly installments over the five year period following the Con-
tract Date, and any party to this Contract entitled to a credit
because of such ad-i-astinents shall be credited in approximately
equal monthly installments d-uring such five-year period.
(c) Notwithstanding the provisions of paragraph (b) ,
above, and as an exception thereto, It is agreed that
during any Annual Payment Period, any Ccntracting Party, for
any re-aeon whatsoever, actual-ly takes or uses less than the
ir:11n.U-num amoun fl- pre sc ibed fD_- i t as nere inafter prov de
th.'s paraqr3pn (c) , such Ccntrac-J1nnQ Par ".evertholess shall
17
pay its share of each Annual Requirement as if it had actually
taken and used such minimum amount; provided that if any such
party takes and uses an amount equal to or in excess of such
minimum amount, its share of each Annual Requirement shall be
calculated on the basis of estimated and actual use as orovided
in paragraph (b), above. All contracts with Additional Con-
tracting Parties shall provide for equitable minimums similar
to those provided for below. Such minimums shall be fixed in
amounts at least sufficient, as determined by the District, to
assure an initial annual payment by such Additional Contracting
Party for not less than the amount of its estimated use of raw
water during the first year of service under such contract.
All such contracts further shall provide for an equitable
premium or surcharge to be paid by each Additional Contracting
Party (using methodology similar to that expressed in paragraph
(d), below, to the extent applicable and practical) so as to
cause equitable treatment of all Contracting Parties to the end
that each Additional Contracting Party will pay a fair share of
previous capital expenditures with respect to the System as it
then exists, including a fair share of the Bond Service
Component previously paid by the Contracting Parties, all as
determined by the District. For the purpose of calculating the
minimum amount of each Annual Requirement for which each
Contracting Party is unconditionally liable, without offset or
counterclaim (also see Section 7), each Contracting Party,
during each Annual Payment Period, shall be deemed to have
taken and used the minimum annual average daily amount of
System water (regardless of whether or not such amount is or
was actually taken or used) specified for such Contracting
Party above and as follcws,
(1) for each of the Initial Contracting Parties,
as an initial minimum amount during each of the
Annual Payment Periods within the period commenc-
ing March 1. 1980, and ending September 30, 1984.
City of F rt Worth 43.28 MIGD
City of Arlington: 30,00 MGD
18
City of Mansfield: 1.3 MGD
Trinity River Author-
ity of Texas: 5.5 INIOD; and
(2) during the Annual Payment Period commencing
October 1, 1984, and during each Annual Payment
Period thereafter, an amount for each Contract-
ing Party, expressed in MGD, equal to the greater
of: (i) the initial minimum amount fixed for
such Contracting Party '(being for each of the
Initial Contracting Parties the amount fixed for
it in clause (1), above), or (ii) the average
annual MGD actually taken from the System by such
Contracting Party during the period of the immedi-
ately preceding five consecutive Annual Payment
Periods; provided, however, that for the purposes
of this clause (ii) all System water up to (but
not in excess of) 61.6 MGD taken by Fort Worth
for sale to its out-of-District customers during
each Annual Payment Period shall be deducted from
the amount actually taken by Fort Worth during
such Annual Payment Period and shall be disre-
garded in calculating the average annual MGD
taken from the system by Fort Worth under this
clause (ii).
The Operation and Maintenance Component and the Bond Service
Component of each Annual Requirement shall be calculated on the
basis of estimated and actual use, as provided in paragraph
(b), above, except for, and subject to, the foregoing minimums,
which shall be applicable as provided hereir,
(d) Each Contracting Fa_ey's share of each Annual Re-
<Tjirement shall be calculated as nrovided in paragraphs (a),
(b), and (c), above, The applicable rate of x cents per
thousand gallons of raw water shall be calculated as provided
In this paragraph (d), which rate includes certain premiums
prescribed below, for 9aC1,, T.,,4tial ContractJng Part y_ In
19
calculating the rate of x cents per thousand gallons, the term
x shall be determined by the following formula;
Fi (x) * FO (x + Pfo) I A (x + ?a)
• T (X + Pt) + M (x + Pm) + C (x
• Pc) = E - R
Where:
Fi = Fort Worth's total water taken for use within
the District expressed in thousands of gallons
Fo = Fort Worth's total water taken for sale to its
out-of-District customers expressed in thousands
of gallons
A = Arlington's total usage of water expressed in
thousands of gallons
T = Trinity River Authority's total usage of water
expressed in thousands of gallons
M = Mansfield's total usage of water (other than
ground water produced from wells within its
city limits) expressed in thousands of gallons
C = Total usage of water by each Additional Con-
tracting Party expressed in thousands of gallons
(there may be more than one C (x + Pc) terms in
the equation depending upon the number of Addi-
tional Contracting Parties)
Pfo = Premium per 1000 gallons applicable to water
taken by the City of Fort Worth for sale
outside of the District as specified below
Pa = Premium per 1000 gallons applicable to City of
Arlington as specified below
Pt = Premium per 1000 gallons applicable to the
Trinity River Authority as specified below
Pm = Premium per 1000 gallons applicable to the City
of Mansfield as specified below
Pc = Premium per 1000 gallons applicable to each
Additional Contracting Party as specified below
E = Annual Requirement
R = All revenues of the System excluding (i) revenues
derived by the District from the Contracting
Parties, (ii) revenues derived by the District
from the production of oil, gas, and other
minerals owned by the District, and the revenues
derived from the granting, sale, or lease of the
right to explore for and prodace same, and (iii)
tlhe royalties, rentals, license fees, and other
ncome (other than from water sales) derived by
the District from (a) lands and assets owned by
the District as flood control facilities and (b)
property of the District at Eagle YMountain Dam
and Reservoir and Bridgeport Dam and Reservoir
on the West Fork of the Trinity River.
The premiums referred to in the preceding portion of this
paragraph (di shall be, respectively, as follows,:
20
(i) For the City of Arlington, 7.00 cents per thousand
gallons for the period March 1, 1980 - February 28, 1981; 6.825
cents per thousand gallons for the period March 1, 1981 -
September 30, 1981; 6,65 cents per thousand gallons for the
period October 1, 1981 - September 30, 1962, and shall be
reduced for each successive twelve-month period by an addition-
al 0.175 cents per thousand gallons.
(ii) For Trinity River Authority and the City of
Mansfield, and for raw water taken by Fort Worth and sold to
its out-of-District customers, 12.00 cents per thousand gallons
for the period March 1, 1980 - February 28, 1981; 11.70 cents
per thousand gallons for the period March 1, 1981 - September
30, 1981; 11.40 cents per thousand gallons for the period
October 1, 1981 - September 30, 1982, and shall be reduced for
each successive twelve-month period by an additional 0.30 cents
per thousand gallons. Fort Worth shall keep records, which
shall be available for inspection during all reasonable busi-
ness hours to the District and each Contracting Party, showing
its sales of water to its out-of-District customers.
After each initial Contracting Party's premium specified
above shall have been reduced to zero by the application of the
reductions as so provided, each Initial Contracting Party shall
make the foregoing payments due under this Contract calculated
with a premium of zero.
(e) It is further specifically provided, however, not-
withstanding the foregoing provisions of this Contract, that
during each Annual Payment Period from October 1, 1982, through
September 30, 1995, each Contracting Party's share of each
Annual Requirement shall be further adl',asted as follows: the
District shall make a surcharge per thousand gallons for raw
water taken by the City of Arington, Trinity River Authority,
the City of Mansfield, any Additional Contracting Parties, and
for raw water taken by the City of Fort Worth and sold to its
out-of-District customers, with such curcharge to he equal to
the nu=er of cents which, when mmilliplied by the aggregate
-un-Joer of thousandz of gallons of -water so taken, will produce
21
the sum of $282,000, and said sum shall be applied to the
payment of each such Annual Requirement, and the amount which
otherwise would be due from the City of Fort Worth under this
Contract in payment of its share of each such Annual Require-
ment shall be reduced by said sum.
(f) it is specifically covenanted among the parties to
this Contract that the payment of the premiums and surcharges
set forth above will constitute an agreed method of adjusting
the ecruities of the initial Contracting Parties with respect to
the Existing Facilities, and will result in placing such
Initial Contracting Parties on a substantial parity in connec-
tion therewith.
(g) Each Contracting Party's share of the Annual Require-
ment shall be redetermined, after consultation with each of the
Contracting Parties, at any time during any Annual Payment
Period, to the extent deemed necessary or advisable by the
District, if:
(i) The District commences supplying System water
to an Additional Contracting Party or Parties;
(ii) Unusual, extraordinary, or unexpected expendi-
tures for Operation and Maintenance Expenses are
required which are not provided for in the Dis-
trict's Annual Budget for the System or in any
Bond Resolution;
(iii) Operation and Maintenance Expenses are substan-
tially less than estimated;
(iv) The District issues Bonds which require an in-
crease in the Bond Service Component of the
Annual Payment; or
OV) Tne District receives either significantly more
or significantly less revenues or other amounts
than those anticipated,
(h) During each Annual Payment Period the revenues of the
System described and defined as constituting "R" under the
formula set forth in paragraph (d), above. sha-11, be credited
to, and be used f,,: paying part of the Annual Requirem.ent, with
22
the result that such credits shall reduce, to the extent of
such credits, the amounts which otherwise would be payable by
the Contracting Parties pursuant to the methods prescribed in
paragraphs (b) , (c) , and (d) , above. The District shall
estimate all such credits which it expects to make during each
Annual Payment Period in calculating each Annual Payment.
W As soon as practicable after the execution of this
Contract, and on or before June 15 of each calendar year there-
after, the District shall furnish each Contracting Party with a
tentative schedule of the aggregate monthly payments to be made
by such party to the District for the ensuing Annual Payment
Period. As soon as practicable after the date of this Con-
tract, and on or before October 1 of each calendar year there-
after the District shall furnish each Contracting Party with a
final estimated schedule of the monthly payments to be made by
such party to the District for the ensuing Annual Payment
Period, together with supporting budgetary or proposed budget-
ary data showing the basis for arriving at such schedule. Each
Contracting Party hereby agrees that it will make such payments
to the District on or before the 10th day of each month of such
Annual Payment Period. If any Contracting Party at any time
disputes the amount to be paid by it to the District, such
complaining party shall nevertheless promptly make such payment
or payments, but if it is subsequently determined by agreement
or court decision that such disputed payments made by such
complaining party should have been less, or more, the District
shall promptly revise and reallocate the charges among all
Contracting Parties in such manner that such complaining party
will recover its overpayment or the District will recover the
amount due it. All amounts due and owing to the by
each Contracting Party or due and owing to any Contracting
Party by the District shall, if not paid when due, bear inter-
est at the rate of ten (10) percent per annum from the date
when due until paid. The Dist--ict shall, to the extent
permitted by law, suspend delivery of water --r-In the Systenrl to
anv Contracting Party which -emains delinquent in any payments
23
due hereunder for a period of sixty days, and shall not resume
delivery of water while such Contracting Party is so delin-
quent. It is further provided and agreed that if any Contract-
ing Party should remain delinquent in any payments due here-
under for a period of one hundred twenty days, and if such
delinquency continues during any period thereafter, such Con-
tracting Party's minimum amount of MOD as described in (c)
above, shall be deemed to have been zero MOD during all periods
of such delinquency, for the purpose of calculating and rede-
termining the percentage of each Annual Payment to be paid by
the non-delinquent contracting Parties. However, the District
shall pursue all legal remedies against any such delinquent
Contracting Party to enforce and protect the rights of the
District, the other Contracting Parties, and the holders of the
Bonds, and such delinquent Contracting Party shall not be
relieved of the liability to the District for the payment of
all amounts which would have been due hereunder, in the absence
of the next preceding sentence. It is understood that the
foregoing provisions are for the benefit of the holders of the
Bonds so as to insure that all of the Bond Service Component of
each Annual Requirement will be paid by the non-delinquent
Contracting Parties during each Annual Payment Period regard-
less of the delinquency of a Contracting Party. If any amount
due and owing by any Contracting Party to the District is
placed with an attorney for collection, such Contracting Party
shall pay to the District all attorneys fees, in addition to
all other payments provided for herein, including interest.
(j) If, during any Annual Payment Period, any Contracting
Party's Annual Payment is redetermined as provided in (g),
above, the Distr-_,ct will promptly furnish such Contracting
Party with an updated schedule of monthly payments reflecting
such redetermination,
Section S. SPECIAL PROVISIONS.
A. The District will contintiously operate and maintain
the Systemt in an etfficient manner and in ac_,crdanc.a with go"d
business and eangineerl_nq practices, and at reasonable cost and
24
expense. By executing this Contract the Contracting Parties
waive any and all claims, as against each other, to any prefer-
ential right or entitlement to the capacity or use of specific
water sources of the District. The District recognizes its
right and duty to operate the various facilities of the System
in the most prudent and economical manner for the benefit of
all the Contracting Parties.
B. The District agrees to carry fire, casualty, public
liability, and other insurance on the System for purposes and
in amounts which ordinarily would be carried by a privately
owned utility company owning and operating such facilities,
except that the District shall not be required to carry liabil-
ity insurance except to insure itself against risk of loss due
to claims for which it can, in the opinion of the District's
legal counsel, be liable under the Texas Tort Claims Act or any
similar law or judicial decision. Such insurance will provide,
to the extent feasible and practicable, for the restoration of
damaged or destroyed properties and equipment, to minimize the
interruption of the services of such facilities. All premiums
for such insurance shall constitute an Operation and Mainte-
nance Expense of the System.
C. It is estimated that the Project will be placed in
operation in 1990. Tt is expressly understood and agreed,
however, that any obligations on the part of the District to
acquire, construct, and complete the Project and to provide raw
water from the Project to the Contracting Parties shall be (i)
conditioned upon the District's ability to obtain all necessary
permits, material, labor, and equipment, and upon the ability
of the District to finance the cost of the Project through the
actual sale of the District's Bonds and (ii) subject to all
present and future valid laws, orders, rules, and regulations
of -he United States of America, the State of Texas, and any
regulatory body having jurisdiction.
D. Title to all -water supplied hereunder to each Con-
t-ractiog Party sha-'I be in the up to each Point of
Delivery, at which point title shall pass to the receiving
25
Contracting Party. Each of the parties hereto hereby agrees to
save and hold each other party hereto harmless from all claims,
demands, and causes of action which may be asserted by anyone
on account of the transportation and delivery of said water
while title remains in such party.
E. The District shall never have the right to demand
payment by any Contracting Party of any obligations assumed by
it or imposed on it under and by virtue of this Contract from
funds raised or to be raised by taxes, and the obligations
under this Contract shall never be construed to be a debt of
such kind as to require any of the Contracting Parties to levy
and collect a tax to discharge such obligation.
E. Each of the Cities of Fort Worth, Arlington, and
Mansfield, respectively, represents and covenants that all
payments to be made by it under this Contract shall constitute
reasonable and necessary "operating expenses" of its combined
waterworks and sewer system, as defined in Vernon's Ann. Tex.
Civ. St. Article 1113, and that all such payments will be made
from the revenues of its combined waterworks and sewer System.
The obligation of Trinity River Authority of Texas to make
payments under this Contract shall constitute reasonable and
necessary "operating expenses" of its Tarrant County Water
Project, which supplies treated water to the Cities of Bedford,
Euless, Grapevine, North Richland Hills, Colleyville, and
others, and such payments shall be made from the revenues
received by Trinity River Authority of Texas from said Tarrant
County Water Project. Each of the Contracting Parties, re-
spectively, represents and has determined that the water supply
to be obtained from the System, inclu=ding the Project, is
3cso lute ly necessary and essential to 'she present and fu tore
operation of its water system and is the only available and
adequate source of supply of water therefor, and, accordingly,
all payments required by this Contract to be made by each
Contracting Party shall constitute reasonable and necessary
operating expenses of its respective sys--em or sy-swarns as
described above with the affect that the :;bllgatlon to snake
26
such payments from revenues of such system or systems shall
have priority over any obligation to make any payments from
such revenues, whether of principal, interest, or otherwise,
with respect to all bonds heretofore or hereafter issued by
such Contracting Party.
G. Each of the Contracting Parties agrees throughout the
term of this Contract to continuously operate and maintain its
combined waterworks and sewer system or water system, as the
case may be, and to fix and collect such rates and charges for
water and sewer services or water services to be supplied by
its combined waterworks and sewer system or water system as
aforesaid as will produce revenues in an amount equal to at
least (i) all of its payments under this Contract and (ii) all
other amounts as required by the provisions of the ordinances
or resolutions authorizing its revenue bonds or other obliga-
tions now or hereafter outstanding.
"Section 6. FORCE MAJEURE. If by reason of force majeure
any party hereto shall be rendered unable wholly or in part to
carry out its obligations under this Contract, other than the
obligation of each Contracting Party to make the payments
required under Section 4C. of this Contract, then if such party
shall give notice and full particulars of such force majeure in
writing to the other parties within a reasonable time after
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 any such
party shall endeavor to remove or overcome such inability with
all reasonable dispatch. The term "Force Maeure" as employed
herein shall mean acts of God, strikes, lookouts, 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, hum-
canes, stor-ma, floods, washouts, droug=ts, arrests, restraint
of govern-mient and people, disturbances, explosi=ons_
27
breakage or accidents to machinery, pipelines or canals,
partial or entire failure of water supply, and inability on the
part of the District to deliver water hereunder for any reason,
or on account of any other causes not reasonably within the
control of the party claiming such inability.
Section 7. UNCONDITIONAL OBLIGATION TO MAKE PAYMENTS.
Recognizing the fact that the Contracting Parties urgently
require the facilities and services of the System, and that
such facilities and services are essential and necessary for
actual use and for standby purposes, and recognizing the fact
that the District will use payments received from the Contract-
ing Parties to pay and secure the Bonds, it is hereby agreed
that each of the Contracting Parties shall be unconditionally
obligated to pay, without offset or counterclaim, its propor-
tionate share of each Annual Requirement, as provided and
determined by this Contract (including the obligations for
paying for "minimums" as described in Section 4C. hereof),
regardless of whether or not the District actually acquires,
constructs, or completes the Project or is actually delivering
water from the System to any Contracting Party hereunder, or
whether or not any Contracting Party actually receives or uses
water from the System whether due to Force Majeure or other-
wise, regardless of any other provisions of c_his or any other
contract or agreement between any of the parties hereto. This
covenant by the Contracting Parties shall be for the benefit of
the holders of the Bonds.
Section 8. TERM OF CONTRACT; MODIFICATION; NOTICES; STATE
OR FEDERAL LAWS, RULES, ORDERS, OR REGULATIONS.
A. TER14 OF CONTRACT, (a) This Contract shall be
effective as of March 1, 1980, and this Ccnntract shall continue
in force and effect unt:.., all Bonds and all interest coupons
appertaining thereto steal have been paid, and thereafter shall
continue in force and affect during the entire useful life of
the System. The requirement fc-r making the Annual Paytents as
bed in Section 4 of this Contract shaL' conmenc
prescr, e
March 1,
28
(b) It is recognized that the District issued the Series
1919-A Bonds after the date of the Base Contract and before the
first Annual Payment Period, but that no payments of principal
of or interest on such Bonds were required prior to the first
Annual Payment Period under the Base Contract.
(c) It is specifically agreed and understood that this
Contract, as of its date, will supersede all of the contracts,
agreements, and arrangements between each of the parties hereto
with respect to the System and the water therefrom and the
Bonds, and that this Contract, as of March 1, 1980, will com-
pletely amend and supersede all such contracts, agreements, and
arrangements with respect to the System and the water therefrom
and the Bonds, and will constitute the sole agreement between
the parties hereto or any of them with respect to the System
and the water therefrom and the Bonds; and all such previous
contracts, agreements, and arrangements shall be void and shall
be of no force or effect, except for liabilities accrued
thereunder prior to March 1, 1980, and except as provided in
subsection (d), below. Notwithstanding and regardless of the
foregoing provisions of this subsection (c) it is specifically
agreed and understood that all rights of the District and of
each of the initial Contracting Parties which existed and
accrued under any contract or agreement described in this
Contract shall continue to exist, be preserved, and be fully
enforceable with respect to and against any entity which is not
an Additional Contracting Party or a party to this Contract,
the same as if such contract or agreement were in full force
and effect for all purposes, and all legal and equitable
remedies with respect to such rights shall be available and may
be pursued against any entity which is not ar, Additional
Contracting Party or a party to this Clontract-
(d) it is recognized by the parties to this Contract that
an executed copy of the Base Contract and the proceedings
relating thereto were submitted to the Honorable Mark White,
Attorruey General of Texas, aLong with the Set-.es 1979-A Bonds,
as provided by the District Act, and that the Attorney General,
29
in his certificate and opinion dated October 9, 1979, found
specifically that the Base Contract had been made in accordance
with the Constitution and laws of the State of Texas and that
the Base Contract was valid and enforceable in accordance with
its terms and provisions; and further the Attorney General
approved the 1979-A Bonds and the Base Contract, with the
effect that pursuant to the provisions of the District Act the
Base Contract "shall be valid and binding and shall be incon-
testable for any cause". In order to protect the rights of the
owners of the Bonds and the parties to this Contract, it is
specifically agreed and understood by the parties to this
Contract that, any provisions of this Contract to the contrary
notwithstanding, if for any reason whatsoever this Contract, or
any part of this Contract significantly affecting the rights of
the owners of the Bonds,should be held to be invalid or uncon-
stitutional, or in contravention of any law or any constitu-
tional provisions, then the Base Contract, the Trinity River
Authority Contract, and the Arlington Contract shall be con-
strued and deemed to be and to have been in full force and
effect at all times to the extent required to protect the
rights of the owners of the Bonds and the parties to such
contracts, with the Base Contract at the time of execution
thereof constituting the underlying security for the Series
1979-A Bonds. It is further agreed and understood by the
parties to this Contract that this Contract is amendatory in
nature and is not intended to abrogate the rights of the owners
of the Bonds or to affect adversely in any way the security
therefor, but is intended to increase the security therefor,
substantially restate, carry forward, and update the provisions
of the Base Contract and add additional, parties thereto as
permitted thereby.
"
B. MODIFICATICN. No change or modification of this
Contract shall be made which will affect adversely the prompt
payment when -due of all moneys required to be paid by each
Contracting Party under the terms of thIs Contract and no such
30
change shall be effective which would cause a violation of any
provisions of any Bond Resolution.
C. ADDRESS AND NOTICE. Unless otherwise provided herein,
any notice, communication, rec,,iest, reply, or advice (herein
severally and collectively, for convenience, called "Notice")
herein provided or permitted to be given, made, or accepted by
any party to any other party must be in writing and may be
given or be served by depositing the same in the United States
mail postpaid and registered or certified and addressed to the
party to be notified, with return receipt requested, or by
delivering the same to an officer of such party, or by prepaid
telegram when appropriate, addressed to the party to be noti-
fied. Notice deposited in the mail in the manner hereinabove
described shall be conclusively deemed to be effective, unless
otherwise stated herein, from and after the expiration of three
days after it is so deposited. Notice given in any other
manner shall be effective only if and when received by the
party to be notified. For the purposes of notice, the ad-
dresses of the parties shall, until changed as hereinafter
provided, be as follows:
If to the District, to:
Tarrant County Water Control and
Improvement District Number One
P. 0. Box 4508
Fort Worth, Texas 76106
If to the initial Contracting Parties, as follows:
City of Fort Worth
1000 Throckmorton
Fort Worth, Texas 76102
City of Arlington
200 West Abram
P. O. Box 231
Arlington, Texas 76010
City of Mansfield
100 E, Broad Street
Mansfield, Texas 76063
Trinity River Authority of Texas
P. O. Box 10
Arlington, Texas 76010
Tne parties hereto s1hall have uhe -tight from time to time and
at any time to charge their resnecz�i�,e add woes and eac-li shall
have the right to specify as its address any other address by
31
at least fifteen (15) days' written notice to the other parties
hereto.
D. STATE OR FEDERAL LAWS, RULES, ORDERS, OR REGULATIONS.
This Contract is subject to all applicable Federal and State
laws and any applicable permits, ordinances, rules, orders, and
regulations of any local, state, or -federal governmental au-
thority having or asserting jurisdiction, but nothing contained
herein shall be construed as a waiver of any right to question
or contest any such law, ordinance, order, rule, or regulation
in any forum having jurisdiction.
Section 9. POINTS OF DELIVERY; MEASUREMENT; OPERATION OF
FACILITIES.
A. CITY OF FORT WORTH FACILITIES. (a) The City of Fort
Worth, hereinafter in this Section 9A called the "City",
receives raw water from the District at three points of de-
livery. Water from Lake Bridgeport and Eagle Mountain Lake (the
"West Fork System") is delivered to the City by releases from
Eagle Mountain Lake into Lake Worth, and the City withdraws
water from Lake Worth as needed through pipelines leading to
the City's Holly Filtration Plants. Water from-Cedar Creek
Reservoir and Richland-Tehuacana Reservoir will be delivered to
the City at the Rolling Hills Filtration Plant. Water is also
delivered to the City by deliveries from Lake Benbrook into the
Clear Fork of the Trinity River. For purposes of Section 9A of
this agreement, the point of discharge of the Eagle Mountain
Dam outlets into the upper end of Lake Worth shall be known as
the "Northwest Point of Delivery", the point of entry of raw
water into the Rolling Hills Filtration Plant shall be known as
the "Southeast Point of Delivery", and the point of discharge
at the Be rook Dam outlet shall be known as the "Benbrook Dam
Point of DeJ4,jery.
(b) The City, at its sole cost, and without credits or
reimbursements from the District or other Contracting Parties,
shall maintain and operate the Lake Worth reser,,roir, dam,
,p? way, and appurtenances and a!- operations and
inciuding pipelines, used to transcort and aeli,ier water frora
32
the Clear Fork of the Trinity River to the Fort Worth Holly
water treatment plant. The District shall have the right, but
not the obligation, to notify the City of maintenance or repair
work deemed necessary by District, and the City agrees to take
appropriate steps to effect that identified maintenance and
repair work, and in the event that such work is not done and
performed by the City, to diminish or withhold deliveries of
water at the Point of Delivery until such work is accomplished.
In the event of measurable and preventable leakage of raw water
from any of the facilities to be maintained by the City, the
City shall pay the District for such raw water losses as if it
had taken and used same from the System. The District shall
make releases from Eagle Mountain Dam sufficient to maintain
the water surface of Lake Worth at or above elevation 590.0.
The City agrees to limit its annual diversions from the exist-
ing System facilities on the West Fork of the Trinity River to
not more than 100,000 acre-feet per year whenever the combined
contents of Lake Bridgeport and Eagle Mountain Lake total
250,000 acre-feet or more. At such times as the combined
contents of Lake Bridgeport and Eagle Mountain Lake total less
than 250,000 acre-feet, the City agrees to limit its annual
diversions from Lake Worth to not more than 46,000 acre-feet,
beginning with the next Annual Payment Period. For purposes of
determining the volume of water available for diversion by the
City from Lake Worth in any given month, the contents of Lake
Bridgeport and Eagle Mountain Lake as of the first day of the
month shall be considered to apply for the full month. it is
recognized that the City's requirements vary seasonally, and
the City shall be entitled to vary the monthly di,,rerslons from
Lake Wor th In accordance with the normal pattern of its season-
a! requirements provided the annual rate of diversion is kept
within the above stated limits. The District shall have the
right to pass water through Lake Worth for District's use or
sale to the City of River Oaks and to Texas Electric Service
Company, and other water custome-s of 'he District,
33
(c) The City shall be entitled to receive, and the Dis-
trict shall be obligated to deliver, raw water at the North-
west, Benbrook, and Southeast Points of Delivery as necessary
to supply the City's raw water needs, subject to 'limitations as
set out elsewhere herein.
(d) (i) The City shall provide, operate, maintain and
read meters which shall record water taken by the City to the
extent such metering is practicable. The principal points of
measurement for water taken by the City under this Contract
shall be at the City's water treatment plants by standard
totalizing-indicating-recording meters which shall measure the
volume of water with an accuracy between the limits of 98
percent and 102 percent of true volume. Other raw water taken
by the City shall be measi4red through a conventional type of
approved meter wherever practicable or by other approved method
of measurement or estimate where the use of conventional meters
is not practicable. In general, the City shall measure the
water supplied under this Contract by the most accurate devices
and methods practicable for use by the City.
(4i) The City shall keep accurate records of all the
measurements of water required under this Contract, and the
measuring devices and such records shall be open to inspection
of the District at all times. The District shall have access
to the metering equipment at all reasonable times, but the
reading, calibration, and adjustment thereof shall be done only
by employees or agents of the City. For the purpose of this
Contract the original record or reading of the meter or meters
shall be the journal or other record book of the City in its
office in which the records of tile employees or agents of the
City who take the readings are or may be transcribed. Upon
written retest of the District, the City will gi%re the Dis-
trict a copy of such journal or record book, or permit the
District to have access to the same in the office of the City
during reasonable business hours.
(ili) Not mere than once in each calendar mont"n, on a
date as near the end of such calendar month as pract.-c-all , the
34
City shall calibrate its raw water meters at the City's water
treatment plants if requested in writing by the District to do
so, in the presence of a representative of the District, and
the parties shall jointly observe any adjustments which are
made to the meters in case any adjustments shall be necessary.
If the District shall in writing request the City to calibrate
its raw water meters at the City's water treatment plants, the
City shall give the District notice of the time when any such
calibration is to be made and if a representative of the Dis-
trict is not present at the time set, the City may proceed with
the calibration and adjustment in the absence of any represen-
tative of the District.
(iv) If upon any test of the raw water meters at the
City's treatment plants, the percentage of inaccuracy of such
metering equipment is found to be in excess of two (2) percent,
registration thereof shall be corrected for a period extending
back to the time when such inaccuracy began, if such time is
ascertainable. If such time is not ascertainable, then for a
period extending back one half (1/2) of the time elapsed since
the last date of calibration, but in no event further back than
a period of six (6) months. If any meters are out of service
or out of repair so that the amount of water delivered cannot
be ascertained or computed from the reading thereof, the water
delivered through the period such meters are out of service or
out of repair shall be estimated and agreed upon by the parties
hereto upon the basis of the best data available. For such
purposes, the best data available shall be deemed to be the
registration of high service pump station meter or meters at
the City's water treatment plants, if the same have been
installed and are accurately registering, to whichn registration
the filter plant losses between the raw water meters and the
high service meters shall be added based on a mutually agreed
estimate of such losses. Otherwise, the amount of water
delivered during such period may be estimated by
(a) Correcting the error if ,he percentage of the
error is ascer'ainahle y calibration tests or
35
mathematical calculation, or
(b) Estimating the quantity of delivery by deliver-
ies during the preceding periods under similar
conditions when the meter or meters were regis-
tering accurately.
Similarly, the District shall have the right to make checks, at
its expense but with the cooperation of the City of all other
measuring devices required under this Contract and to check the
computations or estimates of unmetered raw water used to meet
the requirements of the City under this Contract. Any neces-
sary corrections of such meter readings, estimates, or deter-
mination of use shall comply as far as practicable with the
methods set forth in the foregoing paragraph. Monthly readings
of the totalizing meters at the City's treatment plants shall
be made by the City, and by the District if it so elects, at a
regular hour on the morning of the Ist day of each month.
Other meter readings and determinations of water used during a
monthly period shall be made in accordance with the customary
practice of the City, but in no case later than the 15th day of
each month.
B. CITY OF ARLINGTON FACILITIES. (a) The City of
Arlington, hereinafter in this Section 9B. called the "City",
uses Lake Arlington (the "Lake") as a source of raw water
supply and as a storage reservoir, and owns 56 per cent of the
conservation capacity and safe yield of the Lake, with the re-
maining 44 per cent being owned by the Texas Electric Service
Company under the terms of an Agreement with the City dated
June 29, 1955. The City presently receives delivery of water
from the District at the Lake (the "Lake Arlington Point of
Delivery"). Deliveries at the Lake Arlington Point of Delivery
shall be sufficient to permit all of the raw water requirements
of the City to be diverted from the lake until the new South-
west Arlington treatment plant is operational. The District
shall provide an additional Point of Delivery at a ccnnect,-on
on the Cedar Creek ipeline, or, at the City's option, at the
District's balancing reservoir on such n4pp—ne, to sup ly the
36
new Southwest Arlington water treatment plant to be located at
Eden Road and U.S. Highway 287 ("Southwest Arlington Point of
Delivery"), such connection at the Southwest Arlington Point of
Delivery to be completed and ready to deliver water when that
plant is operational, and the District shall thereafter make
available from its System at the Lake Arlington Point of
Delivery and at the connection at the Southwest Arlington Point
of Delivery all of the raw water requirements of the City. All
facilities required to transport water from the connection on
the Cedar Creek pipeline to the Southwest Arlington treatment
plant shall be acquired, constructed, owned, and maintained by
the City at its sole cost.
(b) The District shall release water from the Cedar Creek
and/or Richland Chambers pipelines into Village Creek, or shall
otherwise deliver water into the Lake, in amounts which will
maintain the Lake water surface at or above Elevation 531. All
water taken by the City from the Lake shall be deemed to be
System water, and shall be paid for as such in accordance with
the provisions of this Contract, regardless of the actual
source of such water.
(c) The District shall have the right to utilize the Lake
for the storage of water up to its full capacity and shall have
the right to divert water from the Lake for District's use or
sale to others when the Lake level is above Elevation 545, or
when the Lake level is below Elevation 545 provided the Dis-
trict replaces an amount of water equal to the diversion as
soon as feasible.
(d) The City, at its sole cost, and without credits or
reimbursements from the District, shall maintain and operate
--he Lake reserva.'r, dam, spi_'Iways and appurtenances. The
District shall have the right, but not the obligation, to
notify the City of - -intenan--e or repai:: work deemed necessary
by District, and in the event that such work is not done and
performed by the City, to diminish or withhold dell*veries of
water at the Point of Oeliver-,, unitil such work in accomp'—shed,
Tn the event of measurable and preventable leakage of raw water
37
so, in the presence Of a representative of the District, and
the parties shall jointly observe any adjustments which are
,made to the meters in case any adjustments shall be necessary.
If the District shall in writing request the City to calibrate
its raw water meters at the City's water treatment plants, the
City shall give the District notice of the time when any such
calibration is to be made and if a representative of the
District is not present at the time set, the City may proceed
with the calibration and adjustment in the absence of any
representative of the District.
(iv) If upon any test of the raw water meters at the
City's treatment plants, the percentage of inaccuracy of such
metering equipment is found to be in excess of two (2) per
cent, registration thereof shall be corrected for a period
extending back to the time when such inaccuracy began, if such
time is ascertainable. If such time is not ascertainable, then
for a period extending back one half (1/2) of the time elapsed
since the last date of calibration, but in no event further
back than a period of six (6) months. If any meters are out of
service or out of repair so that the amount of water delivered
cannot be ascertained or computed from the reading thereof, the
water delivered through the period such meters are out of
service or out of repair shall he estimated and agreed upon by
the parties hereto upon the basis of the best data available.
For such purposes, the best data available shall be deemed to
be the registration of high service pump station meter or
meters at the City's water treatment plants, if the same have
been installed and are accurately registering, to which regis-
tration the filter plant losses between the raw water meters
and the high service meters shall be added based on a nutuallY,
aareed estimate of such !-cases. Ot�-erwise, the amount of water
delivered during such period T.av be estimated by:
(a) Correcting the error if the percentage of the
error is ascertairiablc b,,, calibration tests
or mathematica I can Or
39
from any of the -facilities to be maintained by the City, the
City shall pay District for such raw water losses as if it had
taken and used same from the System.
(e) (i) The City shall provide, operate, maintain, and
read meters which shall record water taken by the City to the
extent such metering is practicable. The principal points of
measurement for water taken by the City under this Contract
shall be at the City's water treatment plants by standard
totalizing-indicating-recording meters which shall measure the
volume of water with an accuracy between the limits of 98 per
cent and 102 per cent of true volume. Other raw water taken by
the City shall be measured through a conventional type of
approved meter wherever practicable or by other method of
measurement or estimate where the use of conventional meters is
not practicable. In general, the City shall measure the water
supplied under this Contract by the most accurate devices and
methods practicable for use by the City.
(ii) The City shall keep accurate records of all the
measurements of water required under this Contract, and the
measuring devices and such records shall be open to inspection
of the District at all times. The District shall have access
to the metering equipment at all reasonable times, but the
reading, calibration, and adjustment thereof shall be done only
by employees or agents of the City. For the purpose of this
Contract the original record or reading of the meter or meters
shall be the journal or other record book of the City in its
office in which the records of the employees or agents of the
City who take the readings are or may be transcribed. Upon
written request of the Di-strict, the City will give the Dis-
trict a copy of such Journal or -re-cord book, or permit the
District to bave access to the same in the office of the City
during reasonable business hours,
(iii) Not more than once in each calendar month, on a
date as near the end of such calendar month as practical, the
City shall calibrate it raw water re ors a- the City's water
treat-ment plants if re sue st-add in writing by the r�Str4 C- t, 4o
38
(b) Estimating the quantity of delivery by deliver-
;as during the preceding periods under similar
conditions when the meter or meters were reais-
tering accurateiv.
Simillarlv, the District shall have the right to make checks, at
its expense but with the cooperation of the City of all other
measuring devices required under this Contract and to check the
computations or estimates of unmetere6 raw water used to meet
the requirements of the City under this Contract. Any necessary
corrections of such meter readings, estimates,mates, or determination
of use shall comply as far as practicable with the methods set
forth in the foregoing paragraph. Monthly readings of the
totalizing meters at the City's treatment plants shall be made
by the City, and by the District if it so elects, at a regular
hour on the morning of the Ist day of each month. Other meter
readings and determinations of water used during a monthly pe-
riod shall be made in accordance with the customary practice of
the City, but in no case later than the 15th day of each month.
C. CITY OF MANSFIELD FACILITIES. (a) Subject to the
following provisions hereof, the District shall release water
from the existing System pipeline into a Point of Delivery at
the existing pipeline constructed by the City of Mansfield,
hereinafter in this Section 9C. called the "City", in amounts
which shall be sufficient to permit City to divert all of its
raw water requirements from the System under this Contract. The
City at its sole cost shall maintain and operate the connecting
pipeline and appurtenances. The District shall have the right,
but not the obligation, to notify City of maintenance or repair
work deemed necessary by _-dstrict, and in the event that such
work -is not done and nerformed by Citv, to, imini sh o_
de-liveries of water to City until such work is accomplished.
In the event of measurable and preventable leakage of raw water
from any o f the facilities to he m
a.
ntaincd by the City, the
City shall. pay District 4or mu�_n raw water losses as if it had n.
taken, and used same fron-, the System.
40
(b) (i) The City shall provide, operate, maintain, and
read meters which shall record water taken by the City to the
extent such metering is practicable. The principal points of
measurement for water taken by the City under this Contract
shall be at the City's water treatment plants by standard
totalizing-indicating-recording meters which shall measure the
volume of water with an accuracy between the limits of 98 per
cent and 102 per cent of true volume. Other raw water taken by
the City shall be measured through a conventional type of
approved meter wherever practicable or by other approved method
of measurement or estimate where the use of conventional meters
is not practicable. In general, the City shall measure the
water supplied under this Contract by the most accurate devices
and methods practicable for use by the City.
(ii) The City shall keep accurate records of all the
measurements of water required under this Contract and the
measuring devices and such records shall be open to inspection
of the District at all times. The District shall have access
to the metering equipment at all reasonable times, but the
reading, calibration, and adjustment thereof shall be done only
by employees or agents of the City. For the purpose of this
Contract the original record or reading of the meter or meters
shall be the journal or other record book of the City in its
office in which the records of the employees or agents of the
City who take the readings are or may be transcribed. Upon
written request of the District, the City will give the Dis-
trict a copy of such journal or record book, or permit the
District to have access to the same in the office of the City
during reasonable business hours.
(iill Not more than once in each calendar month, on a
date as near the end of such calendar month as practical, the
City shall, calibrate its raw water meters at the City's water
treatment plants if requested in writing by the District to do
so, in the presence of a representative of the Distr4�ct, and
_he parties shall Jointly observe any adjustments wlhich are
made
to the meters In case any adjustments shall be necessary,
ji
41
If the District shall. in writing r=_quest the City to calibrate
its raw water meters at the City's water treatment plants, the
City shall give the District notice of the time when any such
calibration is to be made and if a representative of the
District is not present at the time set, the City may proceed
with the calibration and adjustment in the absence of any
representative of the District.
(iv) if upon any test of the raw water meters at the
City's treatment plants, the percentage of inaccuracy of such
metering equipment is found to be in excess of two (2) per
cent, registration thereof shall be corrected for a period
extending back to the time when such inaccuracy began, if such
time is ascertainable. if such time is not ascertainable, then
for a period extending back one half (1/2) of the time elapsed
since the last date of calibration, but in no event further
back than a period of six (6) months. If any meters are out of
service or out of repair so that the amount of water delivered
cannot be ascertained or computed from the reading thereof, the
water delivered through the period such meters are cut of
service or out of repair shall be estimated and agreed upA by
the parties hereto upon the basis of the best data available.
For such purposes, the best data available shall be deemed to
be the registration of high service pump station meter or
meters at the City's water treatment plants, if the same have
been installed and are accurately registering, to which regis-
tration the filter plant losses between the raw water meters
and the high service meters shall be added based on a mutually
agreed estimate of such losses. Otherwise, the amount of water
delivered during such period may be estimated by:
(a) Correcting the error if the percentage of the
error is ascertainable by calibration tests
or mathematical calculation, or
(b) Estimating the quantity of delivery by de74-,,er_
ies during the precedi;7ig periods under simil-ar
cor.dl t-,,ons when the meter ot meters were req:,s-
tering accurately.
42
Similarly, the District shall have the right to make checks, at
its expense but with the cooperation of the City of all other
measuring devices required under this Agreement and to check
the computations or estimates of unmeterad raw water used to
meet the requirements of the City under this Contract. Any
necessary corrections of such meter readings, estimates, or
determination of use shall comply as far as practicable with
the methods set forth in the foregoing paragraph. Monthly
readings of the totalizing meters at the City's treatment
plants shall be made by the City, and by the District if it so
elects, at a regular hour on the morning of the 1st day of each
month. Other meter readings and determinations of water used
during a monthly period shall be made in accordance with the
customary practice of the City, but in no case later than the
15th day of each month.
D. TRINITY RIVER AUTHORITY OF TEXAS FACILITIES.
(a) Trinity River Authority of Texas (the "Authority") is
entitled to receive raw water from the System for the sole
purpose of treating such water to provide potable water from
its facilities known as the "Tarrant County Water Project", to
serve areas described as "Potential service Areas" of the
District or the Authority in the North Central Regional Water
Supply Study dated November, 1974. The Authority agrees that
it will not serve any other areas with water derived from the
System.
(b) The District will release raw water from the System
into Village Creek (which shall be the Point of Delivery to the
Authority) in such amounts as are required by the Authority
under this Contract, The Authority at its sole cost shall make
such arrangements and provide such facilities as are necessary
to divert its System water from Lake Arlington and transport
same to its treatment plan". The District shall have the
right, but not the obligation, to notify the Authority of
Leaeonable maintenance or repair work deemed necessary by the
Dlstrlct to the Au thority5s intake facilities.. anA 4c Ile t
e%r e
such work is not done and performed by the Authority, to
43
diminish or withhold deliveries of water to the Authority until
such work is accomplished. In the event of measurable and
preventable raw water leakages from the intake facilities, the
Authority shall pay the District for such raw water losses as
if it had taken and used same from the System.
(c) (i) The Authority shall provide, operate, maintain,
and read meters which shall record water delivered to the
Authoritv. The principal measurement points for water taken by
,;he Authority under this Contract shall be the Authority's
intake facilities at Lake Arlington and the water treatment
plant of its Tarrant County Water Project. Measurement will be
by standard totalizing-indicating- recording meters which shall
measure the water volume with an accuracy between the limits of
98 per cent and 102 per cent of true.volume, with a type
mutually agreed upon by Authority and District. Authority
shall measure the water supplied under this Contract by the
most accurate devices and methods practicable for use by the
Authority.
(ii) The Authority shall keep accurate records of all
measurement of water required under this Contract and the
measuring devices and such records shall be open to inspection
of District during reasonable business hours. The District
shall have access to the metering equipment at all reasonable
times, but the reading, calibration, and adjustment thereof
shall be done only by employees or agents of the Authority.
The original record or reading of meter(s) shall be the journal
or other record book of the Authority in its office in which
the records of the employees or agents of the Authority who
take the readings are transcribed. Upon written request of the
District, the Authority will give the District a copy of such
journal or record book, or permit the District to have access
to same in the Authority's office during reasonable business
(iii) Not more than once each calendar month, on a date
as near the end of auch calendar month as praa:ticai, the
Authority shah calibrate itz raw ,;star meters in the presence
44
of a District representative, if requested in writing by the
District to do so. The parties shall jointly observe any
adjustments which are made to the meters at the Authority's
intake facilities and water treatment plant. The Authority
shall give the District notice of the time when any such
calibration is to be made and if a District representative is
not present at the time set, the Authority may proceed with the
calibration and adjustment.
(iv) If upon any test of r.he raw water meters, the
percentage of inaccuracy is found to be in excess of two (2)
per cent, registration thereof shall be corrected for a period
extending back to the time when such inaccuracy began, if such
time is ascertainable. If such time is not ascertainable then
back one half (1/2) of the time elapsed since the last date of
calibration, but in no event further back than a period of six
(6) months. If any meters are out of service or out of repair
so that the amount of water delivered cannot be ascertained or
computed from the reading thereof, the water delivered during
the period such meters are out of service or out of repair
shall be estimated and agreed upon by the parties hereto upon
the basis of the best data available. For such purposes, the
best data available shall be deemed to be the registration of
high service pump station meter(s) at the Authority's water
treatment plant, if same have been installed and are accurately
registering, to which registration of treatment plant losses
between the raw -water meters and the high service meters shall
be added based on a mutually agreed estimate of such losses.
Otherwise, the amount of water delivered during such period may
be estimated by:
(a) Carrecting the error if the percentage of the error
is ascertainable by calibration tests or mathematical
calculation, or
(b) Estimating the quantity delivered during pre-
ceding periods under similar conditions when
meter(s) Were registering accirately,
45
Similarly, the District shall have the right to make checks, at
its own expense but with the cooperation of the Authority, of
all other measuring devices required under this Contract and to
check the computation or estimates of unmetered raw water used
to meet the requirements of the Authority under this Contract.
Any necessary corrections of such meter readings, estimates, or
determination of use shall comply as far as practicable with
the methods set forth in the foregoing paragraph. Monthly
readings of the totalizing meters at the Authority's treatment
plants shall be made by the Authority, and by the District if
it so elects, at a regular hour on the morning of the first day
of each month. Other meter readings and determinations of
water used during a monthly period shall be in accordance with
the Authority's customary practice, but in no case later than
the 15th day of each month.
Section 10. A. ADVISORY COMMITTEE: The governing body
of each of the Initial Contracting Parties (but no other
Contracting Party) annually shall appoint one of the members of
its governing body or one of its officers as a voting member of
the Advisory Committee for the System, which Advisory Committee
is hereby created and established. Additionally, the Board of
Directors of the District annually shall appoint to serve as a
voting member of the Advisory Committee one of the members of
said Board of Directors or one of the officers of the District.
The Advisory Committee, at its first meeting, shall elect a
Chairman, a Vice Chairman, and a Secretary. The Advisory
Committee may establish bylaws governing the election of
officers, meeting dates, and other matters pertinent to the
functioning of the Advisory Coi=ittee. The Adviscry Committee
shall consult with and advise the Dist'rict, through its General
Manager, with regard to the following zmatterrs pertaining to the
System:
(i) The issuance of Bonds;
tii) The operation and maintenance of the System;
(iii) Additional Contracting Partles and the ta,_-ns
and conditions of the contracts wi--h such
46
parties, consistent with the provisions of
this Contract;
(iv) Sales of water to entities which are not
Additional Contracting Parties, and the
prices, terms, and conditions of such sales,
consistent with the provisions of this Con-
tract;
(v) The District's Annual Budget, prior to its
submission by the District's General Manager
to the District's Board;
(vi) Review of the District's Annual Audit;
(vii) All other pertinent matters relating to the
management of the System; and
(viii) improvements and extensions of the System and
the providing of any additional source of
water supply.
Said Committee shall have access to and may inspect at any
reasonable times all physical elements of the System and all
records and accounts of the District pertaining to the System.
A copy of the minutes of the meetings of the Advisory Committee
and all other pertinent data, shall be provided to the Dis-
trict's President.
B. The term of membership on the Advisory Committee shall
be for twelve (12) months, beginning on March I of each year. A
member may serve more than one (1) term if so appointed by the
governing body represented. All expenses of the Advisory
Committee in discharging its duties under this Sect'-on shall be
considered as an Operation and Maintenance Expense of the
System.
Section 11. SEVERABILITY. The pa_� es 'here-to zpecifi-
cally agree that in case any ore or more of the sections, sub-
sections, provisions, clauses, )r words of this Contract or the
application of such sections, subsections, provisions, clauses,
or words to any situation or circunstan.ce should be, or should
be held to be, for any reason, ir:valid or uncon-Atitut-ional,
under the laws or constitutions of the State of Texas or the
47
United States of America, or in contravention of any such laws
or constitutions, such invalidity, unconstitutionality, or
contravention shall not affect any other sections, subsections,
provisions, clauses, or words of this Contract or the applica-
tion of such sections, subsections, provisions, clauses, or
words to any other situation or circumstance, and it is in-
tended that this Contract shall be severable and shall be
construed and applied as if any such invalid or unconstitu-
tional section, subsection, provision, clause, or word had not
been included herein, and the rights and obligations of the
parties hereto shall be construed and remain in force accord-
ingly.
Section 12- REMEDIES UPON DEFAULT. It is not intended
hereby to specify (and this Contract shall not be considered as
specifying) an exclusive remedy for any default, but all such
other remedies (other than termination) existing at law or in
equity may be availed of by any party hereto and shall be
cumulative. Recognizing however, that the District's under-
taking to provide and maintain a supply of water hereunder is
an obligation, failure in the performance of which cannot be
adequately compensated in money damages alone, the District
agrees, in the event of any default on its part, that each
Contracting Party shall have available to it the equitable
remedy of mandamus and specific performance in addition to any
other legal or equitable remedies (other than termination)
which may also be available. Recognizing that failure in the
performance of any Contracting Party's obligations hereunder
could not be adequately compensated in money damages alone,
each Contracting Party agrees in the event of any default on
its part that the District shall have available to it the
equitable remedy of mandamus and specific performance in
addition to any other Legal or equitable remedies (other than
termination) which may also be available to the District.
notwithstanding anything to the contrary contained in this
Contract, any right or re�medy or any default het'eunder excopt
the _�ight of the Distric't to recei,,,e the Nanual Pwy-ner.t which
48
shall never be determined to be waived, shall be deemed to be
conclusively waived unless asserted by a proper proceeding at
law or in equity within two (2) years plus one (1) day after
the occurrence of such default. No waiver or waivers of any
breach or default (or any breaches or defaults) by any party
hereto or of performance by any other party of any duty or
obligation hereunder shall be deemed a waiver thereof in the
future, nor shall any such waiver or waivers be deemed or
construed to be waiver of subsequent breaches or defaults of
any kind, character, or description, under any circumstances.
Section 13. VENUE. All amounts due under this Contract,
including, but not limited to, payments due under this Contract
or damages for the breach of this Contract, shall be paid and
be due in Tarrant County, Texas, which is the County in which
the principal administrative offices of the District and of
each of the Initial Contracting Parties are located. It is
specifically agreed among the parties to this Contract that
Tarrant County, Texas, is the place of performance of this
Contract; and in the event that any legal proceeding is brought
to enforce this Contract or any provision hereof, the same
shall be brought in Tarrant County, Texas.
IN WITNESS WHEREOF, the parties hereto acting under au-
thority of their respective governing bodies have caused this
Contract to be duly executed in several counterparts, each of
which shall constitute an original, all as of the day and year
first above written, which is the date of this Contract.
TARRANT COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NUMBER ONE
P esi, rr�- Boar, of rectors
ATTEST.
Secretary, Board of Directors
APPROVED AS TO-TORM"PI-ND LEGALIT'Y/:
Attor-Heys-for --he Distrgot
(L-ISTRTC-T SEAL)
49
CITY OF ARLINGTON, TEXAS
BYi s _
Mayor
l
ATTEST:
Cit Secret y
APPROVED AS TO FORTM AND LEGALITY:
City Attorney
(CITY SEAL)
CITY OF FORT WORTH, TEXAS
City Manager
ATTEST: APPRMT M ,._ <i-- .-UNCSL
W
�.s �3'r�
City Secretary
irt_7
APPROVED AS TO FORM AND LEGALITY:
City Attorney
(CITY SEAL)
CITY OF MANSFIELD, TEXAS
SY
Mayor
ATTEST:
f
` tj Se
Ci Secretary
:PPRC u AS TO M ANll LEGALITY:
r City Attorney
f
r`
(CITY SEAL.) 1 �'
TRINIT R ALFr Y OF TEXAS
BY
Cene
I
5o
ATTESTED AND APPROVED AS TO FORM AND LEGALITY:
Secret y, Board of Directors, and
StaffZttorney for the Authority
(AUTHORITY SEAL)
LAW C)r'F�CFS
BOOTH,LLOYD AND SIMMONS
A PROFESSIONAL CORPORATION �r
302 SAN JACINTO BUILDING
9TH&SAN JACINTO
AUSTIN,TEXAS 76701-2554
FRANK R.BOOTH 512-476..9506 T v�.} C „x,0.;„1 E
ROBERT H.LLOYD
LUTGHER 8.SIM9,4oNS
PAUL G.GOSSELINK I r
SKIP NEtusoM July 21, 1982 J1
PATRICK W. LINDNER
BRENT W. RYAN
DOUGLAS G.CAROOM
DONALD N.WALKER
Mr. Ben Hickey
General Manager
Tarrant County Water Control
and Improvement District No. 1
Box 4508
Fort Worth, Texas 76106
RE: Arlington Rate Case
Dear Ben:
Enclosed for your file are certified copies of the
following: 1. Settlement Agreement;
2. Trinity River Authority Intervention
Petition with Commission Order designating
TRA as a party; and
3. Final Order of Dismissal.
Pursuant to Texas water Code 55.351, an appeal from a
final order of the Texas Water Commission must be filed in a
district court of Travis County within 30 days after the
effective date of the order appealed. Our courts have held
the 30 day requirement to be jurisdictional. Therefore, in
our opinion, the effective date of the Final Order of Dis-
missal is June 25, 1982, and in accordance with the Texas
Rules of Civil Procedure, the Order will become final and
non-appealable after July 26, 1982, unless an appeal is
filed.
Pursuant to TEX. REV. CIV. STAT. ANN. art. 6252-13a
(Administrative Procedure and Texas Register Act), 516
(Vernon 1976), the parties to the case were required to file
a motion for rehearing on or before July 12, 1982, as a pre-
requisite to an appeal. our courts have held this provision
to be mandatory. Therefore, it is our further opinion that
no party to the case can successfully appeal at this date.
In accordance with Article II of the Settlement Agree-
ment, each party to the agreement is obligated to execute the
Amendatory Contract within 30 days from July 26, 1982, providing
I
July ZI, 1982
page two
no appeal is filed. Since the Amendatory Contract relates
to the issuance of bonds, we recommend that you consult with
Paul Horton concerning the formalities needed for each
party's signing the Amendatory Contract.
You should consider the Settlement Agreement as well as
the Amendatory Contract, since the Settlement Agreement con-
tains representations and actions required of the district
and other parties as a part of the settlement. we shall
advise you on July 27, 1982, whether any appeals were filed.
Kindest personal regards.
Very truly yours,
Frank�k e. 'h�
FRB/ckk
Enclosures
cc w/encls: Warren Brewer
James Strawn
George Christie
Paul Horton
SETTLEMENT AGREEMENT
This settlement agreement ("the Settlement Agreement")
by and among the Tarrant County Water Control and Improvement
District No. 1 (the "District") , the City of Arlington
("Arlington"), the City of Fort Worth ("Fort Worth") , the
City of Mansfield ("Mansfield") and the Trinity River
Authority ("TRA") (hereinafter sometimes collectively
referred to as "the Parties") , witnesseth:
WHEREAS, the District presently owns and operates
surface raw water supply facilities which consist primarily
of Eagle Mountain Dam and Reservoir, Bridgeport Dam and
Reservoir, and Cedar Creek Dam, Reservoir and Pipeline (the
"Existing System"), and
WHEREAS, the District proposes to acquire, construct
and complete certain additional surface raw water supply
facilities, including a dam and reservoir on Richland and
Chambers Creeks in Navarro and Freestone Counties and an
adjacent dam and reservoir an Tehuacana Creek in Freestone
County and related facilities to enable the District to
supply raw water from such sources to its customers (the
"Project"); and
WHEREAS, the Existing System and the Project herein-
after are referred to collectively as the "System"; and
WHEREAS, the District has under study the question of
whether it would be prudent and economical for the benefit
of all its customers to build, as a part of the Protect, a
pLpeline between Benbrook Reservoir and the Cedar Cr=�ek
pipeline (the "Bain crock Project") to provide terminal
storage.
WHIE'REAS, Arlington, Fort Worth, Mansfield and TRA
obtain raw water from. the System under separate contracts
with the District, specifically, under the Tarrant County
Regional Water Supply Facilities Contract entered into
August 29, 1979 for the Cities of Fort Worth and Mansfield,
a similar contract entered into December 12, 1979 with the
the Trinity River Authority (both hereinafter referred to as
the "1979 Contract") , and under a contract dated July 1,
1971 for the City of Arlington (the "1971 Arlington Con-
tract"); and
WHEREAS, a dispute has arisen and resulted in liti-
gation before the Texas Water Commission over the desires of
the District, Fort Worth, Mansfield and TRA that Arlington
sign a contract similar to the 1979 Contract, over the
District's obligation to supply water to Arlington under the
1971 Arlington Contract, and over the allocation of the
operations and maintenance and debt service costs incurred
to perform the water supply functions of the Existing System
and to be incurred in connection with the Project; and
WHEREAS, the Parties have reached a compromise and
settlement of their dispute whereby they have agreed to a
single contract specifying a uniform rate computed by
prorating such costs over all water delivered by the Dis-
trict and applicable to all water delivered by the District,
adjusted through (1) payment of certain equitable premiums
in addition to such rate for water used outside the boundaries
of the District and a schedule of elimination of such
premiums, and (2) surcharges and reductions related to taxes
levied for System -water supply purposes, all of which the
Parties agree operate together to fully cornponsate all
equiti,es and which the Parties further, agree operate together
to fully reflect the costs of providing raw water service
thereby fairly and properly apportioning the District's
water supply costs among its customers over the life of the
System;
-2-
WHEREAS, the Parties desire to implement such agreement
upon appropriate approval by the Water Commission of the
State of Texas ("the Commission");
NOW, THEREFORE, the Parties mutually agree and covenant
as follows:
Scope I.
The Settlement Agreement involves three elements:
(1) The Parties agree upon a contract
among them, in the form of an amended version
of the 1979 Contract, fixing terms of raw
water service by the District, including
terms for the calculation of rates to be
charged for such service, effective March 1,
1980 (the "Amendatory Contract");
(2) the Parties agree upon the amounts
owed by each, pursuant to the terms of the
Settlement, for service rendered from March 1,
1980 to the present, and for repayment of
such amounts over a five-year period; and
(3) the Parties' agreement is con-
ditional upon and subject to entry by the
Commission of an appropriate final, non-
appealable order (the "Commission Order") on
or before October 1, 1982.
The lumendator_X_C.ontract
is attached hereto as Ex-
The Amendatory Contract
bibit A. Each of the Parties agrees to execute the Amen-
datory Contract within thirty days
following the date that
the Comm—'ss'Lon Order becomes final and non-ap-pealable, Tne
Parties agree and represent the following concerning the
Amendatory Contract:
(1) The District intends, to the maximum extent
feasible, to pay System expenses itself and to do so out of
revenues from sources other than taxes. However, in some
instances it may be necessary for the District to rely on
payment by a particular customer of a System expense or to
rely on tax revenues to pay certain System expenses.
Whenever this happens, suitable adjustments will be made for
the sharing of such System expenses among all of the customers
who are parties to the Amendatory Contract, in a manner
consistent with the rights of the owners of the District's
bonds. Section 4,C,(e) of the Amendatory Contract provides
for such an adjustment with respect to taxes used to pay the
water supply portion of the debt service on the District's
1965 and 1965 Second Series bonds until such bonds are paid
off in 1995. In the event that payment of such debt service
by taxes shall reduce or cease, the surcharge provided in
Section 4,C, (e) of the Amendatory Contract shall be adjusted
accordingly.
(2) The District undertakes to make a prompt decision
on the prudence and. economics of the Benbrook Project. If
the District determines that the Benbrook Project would be
prudent and economical for the benefit of all its customers,
the District will undertake the Benbrook Project as a part
of the Project, by securing an appropriate and timely
amendment or supplement to the 'Engineering Report on the
Vroject, and the Benbrook Project, will become a part of the
System for all purposes antler the Amendatory Contract.
(3) Exhibit B illustrates the intended application of
the terms of the Amendatory Contract for the period October 1,
1932 -- September 30, 1963 andthcreafter, using hypothetical
expenaes and volumes of water.
-4-
Settle-up Payments and Contract Rate Illustration
Calculations of adjustments to reflect the amounts that
each of Arlington, Fort Worth, Mansfield and Trinity River
Authority would have paid through September 30, 1982,
pursuant to the terms of the settlement, but did not pay,
are attached as Exhibit C ("Settle-up Amounts"). Settle-up
Amounts shown for the periods March 1, 1980 - February 28,
1981 and March 1, 1981 - September 30, 1981 are as shown on
Exhibit C. For the period October 1, 1981 - September 30,
1982, Settle-up Amounts will be calculated following the
close of that period using the same method used in Exhibit C
for the two prior periods. The Parties agree that each such
customer will pay the District or receive from the District
its Settle-up Amounts in equal monthly installments over a
five-year period commencing on the first billing date
following the Contract Date as that term is defined in the
Amendatory Contract.
IV,
The Commission Order
This Settlement Agreement is contingent upon the entry
by the Commission of the Commission Order substantially in
the form attached hereto as Exhibit D. No Party to the
Settlement Agreement is bound by the terms of this
Settlement Agreement unless the Conunission Order becomes
final and non-appealable as provided in Part 1, (3).
V.
Un(te�,��takinqs
J tne _parties
A. Each Party to this Settlement Agreement undertakes
to support and defend the Settlement Agreement, the kmon-
daLo,ry Contract and the Colnurliissit.,n 0-rdpr at all t es and in.
all forums as necessary to implement and enforce the Set-
tlement Agreement, the Amendatory Contract or the Commission
Order. In particular, without limitation, each Party to
this Settlement Agreement agrees to permit the entire
record, including the prefiled exhibits filed by each party
to the proceeding (including the Commission Staff) and
including the Settlement Agreement, to be admitted in
evidence by stipulation and waives its right to cross-
examine the sponsoring witnesses of those exhibits.
B. Each Party expressly agrees and represents that the
Settlement Agreement, the Amendatory Contract and the Com-
mission Order together provide a reasonable, comprehensive
and final compromise resolution of all claims that have
heretofore been made, or that might have been made, by any
party to this Settlement Agreement concerning the provision
of raw water by the District to the other Parties and the
rates charged to the Parties by the District for raw water,
including without limitation the claims of Fort Worth and
Arlington to equity investments in certain District facili-
ties, the claim of Arlington concerning responsibility for
the costs of delivering raw water to its treatment plant,
and the claims of the District, Fort Worth and Arlington
concerning the extent of their respective rights and duties
under all prior contractual agreements.
C. This Settlement Agreement is a negotiated com-
promise. The Parties hereto do not agree that any rate-
making principles usderlyirig this Settlement Aqreez aent, or
believed to underlie it, -would be reasonable or appropriate
for any other set of facts and circumstances.
V1.
Effective Date and Term
--------------__ I— -1--l-
Sub'Ject to the provisions of 'Part IVI, this Settlement
Agreeinent becors,s binding as soon as it has been approved by
the City Councils of Arlington, Fort Worth and Mansfield and
the Boards of the District and TRA. Its effective date will
be March 1, 1980, and its term will extend through the life
of the System.
IN WITNESS WHEREOF, the parties hereto acting under
authority of their respective governing bodies have caused
this Settlement Agreement to be duly executed in several
counterparts, each of which shall constitute an original.
TARRANT COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NO. O
By ✓of Dire-c-t-o—rs
Arcs* ent, Boa of
-Secretary, Board of Directors
APPROVED AS TO FORM AND LEGALITY:
(DISTRICT SEAL) Tt—torney, for the District
-7-
THE CITY OF ARLINGTON, TEXAS
City Pianager
ATTEST: !/j
z4y""Y /'
:y Sectary
APPROVED AS TO FORM AND LEGALITY:
(CITY SEAL) City At orne
CITY OF F T WORTH TEXAS
By
y anag
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
(CITY SEAL) C}ty Attorney
G 2L a
i
i
I
i
9—
CITY OF JTA.,SFIELD, T },AS By ;or�
ATTEST:
City Secretary
APPROVED AS TO FORh AND LEGALITY:
(CITY SEAL) City Altorney
ney
TRINITY R AUTI f- Y
TRINITY
By
General Ma a er
ATTEST:
Secrpary, Board of Directors
APPROVED AS TO FORM AND LEGALITY:
(CORPORATE SEAL) Booth, Lloyd & Simmons, P.C.
by Frank R. Booth
General Counsel for the Authority
TEXAS DEPARTMENT OF WATER RESOURCES
TEXAS WATER COILMISSION
In The Matter of
The Complaint Filed by
The City of Arlington
v. The Tarrant County
Water Control and Improvement
District No. I
FINAL ORDER OF DISMISSAL
It appears to the Commission, and the Commission so
finds, that a Settlement Agreement has been entered into
between the Tarrant County Water Control and Improvement
District No. 1, the Cities of Arlington, Fort Worth and
Mansfield, and the Trinity River Authority ("the parties")
resolving this entire matter upon reasonable terms and
conditions, and copies of the Settlement Agreement and its
attachments and of the prefiled exhibits of the parties
having been filed with the Commission, it appears to the
Commission and the Commission so finds that this matter
should be dismissed in its entirety, with prejudice, upon
the terms and subject to the conditions agreed to by the
parties.
It is therefore ordered that this matter be dismissed
in its entirety, with prejudice, upon the terms and subject
to the conditions agreed to by the parties.
Signed and entered into this day of
1982.
TEXAS WATER COPT-11ISSION
Lee-3--.----14-.--Biggart, Chairman
Fel-i-k-M&D-0-n—ald,—Commissioner
ATTEST:
M,-ry inn a aer J 0 h 41 5. 5 t 0 V rT =,l s c r,e,r
Chief Clerk
1"XiiTBIT D TO SETT1 •,JP*,NT AGREEMENT
STATE OF TEXAS X
X
COUNTY OF TRAVIS X
,T, Mary Ann Hefner, Chief Clerk of the Texas Water
Commission of the Department of Water Resources, do hereby
certify that the attached and foregoing is a true and
correct copy of a Settlement Agreement between Tarrant County
Water Control and Improvement District No. one, Fort Worth,
Arlington, Mansfield and Trinity River Authority filed with the
Commission in the case entitled IN RE: CITY OF ARLINGTON,
TEXAS VS. TARRANT COUNTY WCID NO. 1 CONCERNING THE RATES TO
BE CHARGED ARLINGTON FOR RAW WATER FURNISHED BY THE DISTRICT,
the original of which was filed with the Commission on
June 25, 1982, and is now in the permanent records of the
Department.
Given under my hand and the seal of the Texas Water
Commission, this the 25th day of June, 1982.
MM-a�ysA7fl�C—f�-nW-6emrm,iChi67 Cle:aF—k--
at� r
Co ssi
Texas ater Commissi
IN RE: CITY OF ARLINGTON, § BEFORE THE
TEXAS VS. TARRANT COUNTY
WCID NO. 1, CONCERNING THE § TEXAS WATER COMMISSION
RATES TO BE CHARGED ARLINGTON S
FOR RAW WATER FURNISHED BY IN AUSTIN, TEXAS
THE DISTRICT
INTERVENTION PETITION OF THE
TRINITY RIVER AUTHORITY OF TEXAS
TO THE HONORABLE TEXAS WATER COMMISSION:
NOW COMES petitioner Trinity River Authority of Texas
requesting leave to intervene in the above-entitled
proceeding and for designation as a party for the limited
purpose of joining the Settlement Agreement pending before
the Commission for reasons as follows:
1.
Trinity River Authority has obtained a raw water
supply from Tarrant County WCID No. 1 since 1973 in
accordance with a 1971 and, later, a 1979 contract.
2.
Trinity River Authority has reviewed the proposed
amended 1979 contract between the district, Fort Worth,
Arlington, and Mansfield and desires to amend its 1979
contract with the district by signing the amended contract.
WHEREFORE, PREMISES CONSIDERED, petitioner Trinity
River Authority prays that the Commission grant its petition
for leave to intervene and designate petitioner a party to
the hearing.
Respectfully submitted,
BOOTH, LLOYD AND SIMMONS, P.C.
302 San Jacinto Building
Austin, Texas 78701
FRANK P. BOOTH
General Counsel
Attorneys for Petitioner
Trinity River Authority
of Texas
Date- 3une, 25, 1982
ORDER
On this the 25th day of June 1982, petitioner.
Trinity River Authority of Texas appeared before the Texas
Water commission in open hearing and filed the above-entitled
Intervention Petition. After considering the petition and no
objection to granting the same being made by any party,
IT IS ORDERED that Trinity River Authority of Texas
is hereby granted leave to intervene for the limited
purpose of joining the Settlement Agreement proposed by
some of the parties and Trinity River Authority of Texas
is hereby designated a party to these proceedings.
C_ha_1'L.m&2_a1_1.�_9g__gart
Ca .issioner ohn D. Stover
Attest:
STATE OF TEXAS X
COUNTY Or TRAVIS X
I, Mary Ann Hefner, Chief Clerk of the Texas Water
Commission of the Department of Water Resources, do hereby
certify that the attached and foregoing is a true and
correct copy of the Intervention Petition of the Trinity
River Authority of Texas in the proceeding styled City of
Arlington, Texas Vs. Tarrant County Water Control and
Improvement District No. 1, concerning the rates to be
charged Arlington for raw water furnished by the District,
together with the order of the Commission entered June 25,
1982, designating Trinity River. Authority as a party to
the proceedings, the original of which is on file in the
office of the Commission.
Given under my hand and the seal of the Texas Water
Commission, this the 30th day of June, 1992.
y -�k
i�ary �Chif---�-(C*17E��'
Mary Commission
TEXAS DEPARM TMENT OF WATER I RESOURCES
TH WAIER IMNW11
ra
COUNTY OF TRAVIS X IN THE MATTER OF THE
X C014PLAINT FILED BY THE
CITY OF ARLINGTON V. THE
TARRANT COUNTY WATER
CONTROL AND IMPROVEMENT
STATE OF TEXAS X DISTRICT NO. I
FINAL
ORDER OF DISSQISSAL
On June 25, 1982 came on to be considered before the
Texas Water Commission the Motion to Dismiss the rate
complaint action filed by the City of Arlington on March 26,
1980 with the Texas Department of Water Re-sources. All
parties to this matter appeared and stated that all matters
in controversy relating to this complaint had been settled,
compromised and agreed upon.
NOW, THEREFORE, BE IT ORDERED BY THE TEXAS WATER
COMMISSION THAT the rate complaint filed by the City of
Arlington is in all things dismissed, with prejudice.
Entered and ordered this the 25th day of June, 1982.
TEXAS WATER COMMISSION
i cner
ATTEST-
-k
rI
f,-1 f r,e Cler
STATE OF TEXAS X
X
COUNTY OF TRAVIS X
1, Mary Ann Hefner, Chief Clerk of the Texas Water
Commission of the Department of Water Resources, do hereby
certify that the attached and foregoing is a true and
correct copy of the Final Order of Dismissal in the matter
of the complaint filed by the City of Arlinaton v. the
Tarrant County Water Control and Improvement District No. 1
dated June 25, 1982, the original of which is on file in the
office of the Commission.
Given under my hand and the seal of the Texas Water
Commission, this the 30th day of June, 1982.
C1erlt
Texa7. 7"er Commission
LAQ
'If Fowt 1,Av"orth, hwas
X111yor and Council
-CE a
F---,-E uasf CT----T
**C. ------
On june 22, 1982 &K C-6369) , tin My GouLcil authorized ths City Moaamer !,In
execute a Setrienent AgreEment to end the dispuLe couLury:ng jnw wacer to
charged by The Tarrant County .a.t.y Qatral and Wrov,wInn. DIPIrfet No.
("District"),
By executing the Settlement AZreemnnt, the My of FoiL Kcrth agreed to the terms
of a proposed raw warer rontrArr with the Discrict, whisk will replace the
existing 1979 water contract with Eta McKay Mry SccyntmT-y Contract No. 10611).
Final execution of We new contract document us continpcnt an acceptance of the
Lei ms by the other parties to the contra,--,z �',Iansfield, Arlington, the SUM— a—
the Trinity River AuthoriLy) in ordpr Qat a pendina boi-L More Eke TaxaF Water
Rights Commission ("CommiRston") W AlywKqsed,
The Cunmission received the proposed Sptclsmow Agreement , contract and uLher
docnments on Jane 27, 1982,and prn-video a 10-0v ieview and enmment ppriod prlo-r
to the settlement suit being dismisacd. The 30-day neriod has passed with no
adverse comments and the suit before the Commission has been disminsel. it !-a
now approprime for the contracting nartles to adopt crdivances approvi ng the
new contract.
The law firm of MWIL, Parkhurst and Horton, bond coutusc! for the District, has
prepared an ordinance for adoption by the contracting parties which will pintc=l
future bond issues of the Distfict,
After each of the c0-.tract -g par cia,s have Wanted orlinnnceq or regoinVan,z
authorizing execution of the new contriat , uich ronrra�tlnlg party will nvocate
"he comracc.
Recommendation
it is recomnended that We City COUDVII XQ-PL ?h- ALrached oudwaave anthori-1-1
ard directing rhe City Ma rz o4on,vo tho sr�irr CqunK RPRWnp! Wizat
Supolir Facijitles AncrIdarory Conz,wat ," a_ .w ruplAr-s City SocnAary twornc''
No!'16631.
Attachment
J ho
NICE sy
ORMMAIMG
DrPAPTOMENT HEAD COMM 4100Y
CONTACT, Sawpv M. 020 DWE