HomeMy WebLinkAboutContract 13645 CITY SECRETARY
C TRACT No
ON
CONTRACT FOR WATER SERVICE
BETWEEN T
CITY OF FORT WORTH , TEXAS 1 L
AND THE
CITY OF SOUTHLAKE, TEXAS WORTH, .
'ATE OR TEXAS
COUNTY OF TARRAN
THIS CONTRACT AND AGREEMENT i made and entered into this �a
day cif 3t 1 ?7, by and between the City of Fort Worth,
municipal corporation located in Warrant County, 'Texas , acting by and
through Robert L. Herchert, its duly authorized City tanager, and the
City of Southlake, a municipal corporation located in Tarrant County,
Texas, acting by and through , its duly authorized
Mayor.
W I T N R S S E i :
WHEREAS , the City of Fort Worth has provided at its own e pen e,
and now owns, operates and maintains, facilities for processing and
distributing a large supply of surface water, and at the present time
is qualified to furnish and defier treated water, both within and
without the corporate boundaries of the City of Fort Worth , and
WHEREAS, The City of Southlake has provided at its own expense
and now owns, operates and maintains a well water supply and water
distribution system serving its customers; and
WHEREAS, the City of Southlake has determined that the most
economical and timely source of an additional and continuous water
supply to its system lies in purchasing treated water from, the City
of Fort Worth under a long-term water supply agreement as set out
herein; and
WHEREAS, it is deemed to be in the best interest of both the
City of Fort Worth and the City of Southlake that they do enter into
a mutually satisfactory long-term agreement by means of which the
City of Southlake may obtain a supply of treated water from the City
of Fort Worth at a reasonable rate;
NOW, THEREFORE, know all men by these presents: that for and in
consideration of the mutual covenants , promises and agreements
contained herein, the City of Fort Worth and the City of Southlake
do hereby covenant and agrees as follows:
1 .
Terms and Conditions
The City of Fort Worth agrees to furnish and sell to the City
of Southlake treated water of potable quality meeting all applicable
governmental standards, delivered under the normal operating
pressure prevailing in the City of Fort w!orthls water distribution
system at the point or points of delivery mutually agreed upon. The
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City of Southlake agrees to accept delivery under the conditions of
this agreement and to pay for the same in accordance with the terms
hereof.
In accordance with the terms of Fort Worth City Secretary
Contract No. 12720 between the City of Fort Worth , City of
Arlington, City of Mansfield, Trinity river Authority and the
Tarrant County Water Control and Improvement District No. 1 , this
contract shall be deemed subordinate in all respects to the water
requirements of the above contracting parties as specified in
Section 3 of that contract.
If at any time during the term of this contract the furnishing
of water by the City of Fort Worth to the City of Southlake shall be
to the detriment of water customers of the City of Fort Worth due to
constraints other than raw water delivery, then and in that event,
the quantity of water furnished to the City of Southlake will be
reduced in the same proportion to the reduction in quantity of water
being furnished all other customers served by the City of Fort
Worth.
Other than constraints due to raw water delivery, if the City
of Fort Worth shall ration the use of water throughout said City or
issue water conservation measures or restrict the use of water in
any way, the City of Southlake shall:
Institute and apply the same rationing, conservation measures
or restriction to the use of water by the customers of the City of
Southlake, so long as any part of the total water supply of the City
of Southlake is being furnished by the City of Fort Worth, and any
failure by the City of Southlake to comply with this provision or
the other provisions of this agreement shall be just cause for the
City of Fort Worth to discontinue the sale of water hereunder.
Location and Maintenance of measuring Devices
All water furnished under this agreement by the City of Fort
Worth shall be measured by one or more suitable meters equipped with
continuous flaw chart-recording devices and transmitting and
receiving equipment. All meters and equipment shall be approved by
the City of Fort Worth and shall be installed by the City of
Southlake at the meter location.
The City of Fort Worth will install the receiving portion at
the control center and shall operate the meter after installation.
The City of Southlake shall pay for all metering equipment
including transmitting equipment and appurtenances plus the
installation and maintenances cost thereof and replacement when
necessary. Charges for the tele-link line as well as for power to
operate same shall be billed on an annual basis.
The point or points of delivery of treated water by the City of
Fort Worth shall be the meter vault connection to the customer ' s
side of the meter, and all necessary mains and distribution
facilities from and beyond said point shall be furnished by the City
of Southlake.
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The location of each meter shall be mutually agreed upon by and
between the parties hereto, and the meter or meters shall not be
moved or relocated except by mutual consent.
It is contemplated that water will be made available to the
City of Southlake at the Keller Reservoir site. It is further
contemplated that the City of Southlake would pay 100% of the cost
of the connection to the City of Fort Worth system and the cost of
the meter installation including telemetering equipment to the Holly
plant for maximum hour and maximum day determinations. In return
for payment of all construction cost and monthly charges, Southlake
will be entitled to withdraw up to a maximum of 2 .8 MD through the
initial point of connection at the Keller Reservoir site.
Each party hereto shall have the right to test the meters and
appurtenances at any time by first giving the other party notice of
its intention to make such a test. No meter shall be adjusted,
changed, or tested, in place or elsewhere, unless the party
intending to -make such adjustment, change, or test shall first give
notice to the other party of this intention and thereafter give
reasonable opportunity to the other party to have representatives
participate in such test, change or adjustment. All meters will be
properly sealed, and the seal shall not be broken unless
representatives of both parties have been notified and given a
reasonable opportunity to be present.
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Either the City of Southlake or the City of Fort Worth at its
own expense may install a check meter to check measure the volume of
water passing through the master meter, provided that if such check
meter is installed, the same rules and regulations relative to its
operation, maintenance, and reading shall apply as to the meter
being tested.
3.
Meter Reading and Billing
The City of Fort Worth will read all meters provided for herein
at monthly intervals and the parties to this agreement shall have
free access to read these respective meters daily, if either party
so desires. It shall be the duty of the parties to give immediate
notice, each to the other, should any meter be found not
functioning, and upon such notice repairs to such meter shall be
made promptly. Whenever it is evident that a meter has not
registered accurately for a period of time, the quantity used shall
be estimated in accordance with the usage under similar conditions
for an equal period.
The meter readings and rates of flow shall be added together
when more than one meter is in service and the sum thereof shall be
used for the purpose of calculating charges for water used.
A review of water usage amounts by the customer for the past
twelve ( 1 2) months shall be made during the preparation of the
October bill each year. The October statement shall be prepared so
as to reflect any and all rates of use charges which have not been
previously billed and paid. A copy of the rate of flow charts or
other records showing the maximum day and the peak hour of the year
shall be furnished to the customer with the October billing.
The City of Southlake agrees to appropriate annually sufficient
funds to pay the monthly charge for water service. The water charge
to be paid by the City of Southlake to the city of fort Worth shall
be deemed a current expense of the City of Southlake for each year
of this contract as such monthly charges become due and payable.
The monthly bill shall be due and payable at the office of the
Fort Worth Water Department on or before the 15th day immediately
succeeding the monthly billing date.
4.
Definitions
"Annual consumption" is the total quantity of water purchased
under the terms of this contract by the City of Southlake during the
fiscal year of the City of Fort Worth as determined by the
difference in the annual October meter readings.
"Average daily use" is the annual consumption divided by 365.
"Maximum day demand" is the maximum quantity of water used
during one calendar day of the fiscal year of the City of Fort
Worth.
"MG D" is million gallons per day.
"GPD" is gallons per. day.
"TGPD" is thousand gallons per day.
"Fiscal year" i
"Maximum hour demand" or "peak hour rate" is the quantity of
water used during the one hour of the year more water passed through
the meter or meters serving the customer than during any other hour
of the fiscal year of the City of Fort Worth multiplied by 24.
"Commodity charge" is that part of the rate charged per 1 ,000
gallons used, regardless of rate of use. The commodity charge shall
include the maintenance and operation cost, the capital facilities
cost on the part of the production and transmission system related
to annual use and the raw water costs.
"Raw water charge" is a part of the commodity charge and
represents the rate per 1 ,000 gallons charged by the Tarrant County
Water Control and Improvement District No. 1 to the City of Fort
Worth for raw water to be sold to the City of Southlake plus eight
percent (8%) of said rate, representing Fort Worth water system
losses of four percent (4% ) , and the street rental charge of four
percent (4% ) .
"Rate of use charge" is the fixed charge determined for the
maximum daily demand in excess of average daily usage and the
maximum hourly demand in excess of maximum day demand rates of use.
"Base rate" is composed of the commodity charge, and the rate
of use charge.
Rates
1 . Method of rate determination
The annual rate charged by the City of Fort Worth for rendering
water service under the terms of this contract shall be based upon
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the functional distribution of the total annual cost incurred in
furnishing treated water to its customers, provided that nothing
herein shall be construed as Contemplating an annual rate of less
than the regular City of Fort Worth water only rate, plus ten
percent ( 10% ) of said rate.
2. Rates to be used
The annual rate to be charged for water shall include the
proper proportionate parts of the maintenance and operation cost as
related to the production and transmission facilities of the total
Fort Worth Water System, the capital facilities cost (fixed charges )
on the production and transmission plant related to the rendition of
service at maximum withdrawal rates of use by the City of Southlake
and the raw water costs.
The charges for the initial period of the contract, which shall
be from the date of its execution through September 30 , 1984 , have
been computed as follows:
The commodity charge shall be $0. 5644 per 1 ,000 gallons
withdrawn by the customer.
The annual charge per MGD of daily demand in excess of average
daily demand shall be $46 ,900 per MGD and maximum
hour demand in excess of the maximum day demand shall be
$23 ,400 per MGD.
The service charge shall be $25 .00 per month per meter.
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3. Adjustment of rate
a. Raw water:
The amount charged for raw water shall be increased or
decreased proportionately when the raw water cost paid by
the City of Fort Worth for water available for treatment
and sale to the City of Southlake is in-creased or
decreased. At the time of execution of this contract, the
rate, including four (4% ) for system losses, and the street
rental charge of four percent (4% ) , to the City of
Southlake is $0 . 2450 per 1 ,000 gallons. The portion of the
raw water charge which reflects system losses shall be
adjusted in the manner set out in Subparagraph b. below in
accordance with actual experience during the preceding
period.
b. Commodity charge and rates of use charges:
The rate shall be reviewed and adjusted every five years
except that the first such review shall be based on the
annual cost of operation for the fiscal years through
1986-87. The cost related to the production and
transmission function of distributing treated water to the
Fort Worth city limits in wholesale quantities plus a
service charge shall be determined in accordance with
methods herein. Such costs shall be projected through the
City of Fort Worth fiscal year 1991-1992 to establish the
fair rate for water to be charged during the period October
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1 , 1987 , to September 30 , 1992. The adjusted rate shall be
made effective October 1 , 1987.
A similar review and rate adjustment shall be made for each
succeeding five-year period for the term of the contract.
While these charges are designed to recover projected cost
for five year increments it is anticipated that at some
future date a re-designed cost recovery will be affected
which will allow for annual billing adjustments .
6.
Payment for Water
Payment of charges to the City of Fort Worth for water used by
the City of Southlake all be made as follows:
1 . MINIMUM ANNUAL PAYMENT
The minimum annual payment shall be the charges computed for
all water delivered by the City of Fort Worth to the City of
Southlake during the fiscal year based on rates provided herein.
However, the minimum. annual payment shall never be less than the
payment calculated on the basis of the volume of water taken during
the current fiscal year and the highest maximum rates of withdrawal
during any fiscal year.
2. MAXIMUM RATE OF DELIVERY
The maximum rate of delivery at the initial point of connection
shall be 2 . 8 MGD. Maximum rates of delivery at subsequent points
of delivery, or variations of the rate at the initial point of
connection, shall be as mutually agreed upon by the parties hereto.
3. MINIMUM MONTHLY CHARGE
The minimum monthly charge will be the charge computed for all
water delivered to the City of Southlake during the applicable
calendar month based on rates provided herein.
4 . MONTHLY PAYMENT
The monthly payment shall be calculated at the regular City of
Fort Worth rate plus ten percent ( 10% ) of said rate (which includes
the raw water costs ) plus the service charge, for the quantity of
water withdrawn from the Fort Worth system during the month .
5. ANNUAL PAYMENT
The actual total annual payment for water by the City of
Southlake shall be related to the annual and peak volumes used by
the City of Southlake during the fiscal year, as determined by
meters, flow recording devices or other approved methods, subject to
the minimum annual payment provisions set forth above. The October
bill shall reflect any necessary adjustment to the annual payment
due to actual rates of withdrawal from the Fort Worth System.
If the initial 'oeriod of use of water by the City of Southlake
under the terms of this agreement is less than a fiscal year, the
annual rates of use charges shall be computed in the proportion that
the period of use bears to the fiscal year.
The method of computation for determining the total annual
payment and the October bill is shown using assumed quantities in
the example that follows.
example
The City of Southlake will buy all water required to fulfill
its additional supply needs from Fort Worth. The rate used in the
example is based on the City of Southlake not being in Tarrant
County Water Control and Tmprovement District No. 1 and water being
withdrawn at one metering station.
'sage Month Usage per Month-Gallons Monthly Payments
October 1 ,000 ,000 $ 887 .53
November 1 ,000 ,000 887 . 53
December 1 ,000 ,000 887 . 53
January 1 ,000 ,000 887 .53
February 1 ,000 ,000 887. 53
March 2 ,000 ,000 1 ,653 .83
April 3,000 ,000 2, 343. 13
May 3 ,000 ,000 2 ,480 . 38*
June 3,000 ,000 2,480. 38*
July 3 ,000 , 000 2,480 . 38*
August 4 ,000 ,000 3, 169. 68*
Subtotal 23, 000 , 000 $_19 ,045 .43
September 3,000,000 9,457. 69
Total 26 ,000 ,000 $28 ,503 . 12
*Summer Rate in Effect
Average daily use for the year 71 , 233 gallons
Maximum day for the year 200 ,000 gallons
Maximum hour for the year 520 ,000 gallons per day rate
Maximum day rate above average daily use = 128 ,766 qallons per
day rate
maximum hour rate above maximum day rate = 320 ,000 gallons per
day rate
Annual Payment Calculation
26 ,000 X . 5644 $ 14 ,674 .40
. 1288 X $46 ,900 6,040 .72
. 3200 X $23,400 7 ,488 .00
12 X '1$25 X 1 300.00
Total Annual Payment $28 ,503 . 12
Previous Billings for usage
October throuch August
September Usage Billing $ 9,457.69
7.
Effective Date of Contract for Billing
The effective date of this contract for billing purposes shall
be the fifteenth ( 15th) day of the month following the month in
which water is first delivered to the City of Southlake under this
agreement.
8.
Life of Contract
The life of this contract shall be for seventeen ( 17 ) years
from the date of execution hereof, and may be renewed upon terms
mutually agreeable to the parties hereto.
9.
The City of Southlake shall grant to the City of Fort Worth
such easements and rights-of-way along public highways or other
property owned by the City of Southlake as requested by the City of
Fort Worth in order to construct and maintain water mains or
facilities with the City of Southlake to furnish water to the City
of Southlake and other areas. All work done by or on behalf of the
City of Fort Worth under this paragraph will be performed in
accordance with specifications equal to those applying to work of a
similar nature performed within the City of Fort Worth .
10.
State Health Department Approval
The water system of the City of Southlake shall be approved by
the Texas State Department of Heal-t-h during the life of this
14-
contract . If at any time the water system of the City of Southlake
is not approved by the Texas State Department of Health, there
shall not be any direct physical connection between the Fort Worth
water system and the City of Southlake water system unless an
approved backflow prevention device has been provided and installed
and this installation has been approved by the Texas State
Department of Health.
Resale of Water
The City of Southlake agrees to furnish the City of Fort Worth
Water Department a complete rate schedule for all City of Southlake
water sales .
Southlake will not make any extension of water lines beyond
the limits of Southlake as its boundaries now exist or may
hereafter exist, nor permit any connections for water outside City
limits, without the written approval of the City of Fort Worth,
except that existing connections outside of the City limits of
Southlake shall be allowed to continue .
12 .
Sanitary Sewer Facilities
The City of Southlake agrees that adequate sanitary sewer
facilities will be provided for users of water obtained from the
Fort Wo.-th system by contlinuat4 on of an ordinance requiring, as a
minimum ( 1 ) one acre residential lots and private septic systems .
Should such private septic systems prove inadequate and constitute
a public health hazard or should higher density development be
aDpl-ovu,ed then the '-"iltv of Southlak-e agrees to provide or make
arrangemen-ts for an adequate san--"Lta--v sewage system.
13.
Force Majeure
if, by reason of force majeure , either party hereto shall be
rendered unable, wholly or in part, to carry out its obligations
under this agreement, other than the obligation of the City of
Southlake to make payments required under the terms hereof, then if
such party shall give notice and full particulars to such force
majeure in writing to the other party within a reasonable time after
the occurrence of the event or cause relied on, the obligation of
the party giving such notice, so far as it is affected by such force
majeure, shall be suspended during the continuance of the inability
then claimed, but for no longer period, and such party shall
endeavor to remove or overcome such inability with all reasonable
dispatch.
The term "force majeure" , as employed herein, shall mean acts
of God, strikes, lockouts or other industrial disturbances, acts of
public enemy, orders of any kind of the Government of the United
States or the State of Texas, or any civil or military authority,
insurrection, riots, epidemics, landslides, lighting, earthquake,
fires, hurricanes, storms, floods, washouts, droughts, arrests,
restraints of government and people, civil disturbances , explosions ,
breakage or accidents to machinery, pipelines or canals, partial or
entire failure of water supply, and inability on the part of the
City of Fort Worth to deliver water hereunder or the City of
Southlake to receive water hereunder on account of any other causes
not reasonably within the control of the party claiming such
inability.
16-
14 .
Nothwithstanding any provision to the contrary contained in
paragraph 6, "Payment for Water" or in any other portion of this
agreement, it is agreed that in the event that the City of
Southlake should have additional supply needs in excess of the 2 . 8
MGD to be furnished pursuant to this agreement, the City of
Southlake shall first request such additional supply from the City
of Fort Worth. If the City of Fort Worth cannot provide such
additional supply needs above 2 . 8 MGD, then the City of Southlake
shall be permitted to obtain such additional supply needs, in
excess of 2 . 8 MGD, from other sources without jeopardy to this
agreement .
IN TESTIMONY WHEREOF, after proper action by the respective
governing bodies of the parties hereto, we have caused these
presents to be executed in quadruplicate copies, each of which is
considered to be an original and the seals of the respective
parties to be hereto affixed on the date above written.
ATTEST: CITY OF FORT WORTH
By:
pity Secretary' Robert L. Hercher
City Manager
APPROVED AS TO FORM AND LEGALITY:
J
Co"C"
.........- El C
—ity--)�—tt or e -)-r-et ary
APPR,O-YAL RECOMMENDED: Dcn�te
ctor
R
acrd W. Saw-Y, }i re.-
Fort Worth Wate-r Yepartment
ATTEST: CITY OF SOUTHLAKE
All
By: A s.
Ci°_y � ecretary ,_ Mayor
APPROVED AS TO FORM AND LEGALITY: APPROVED BY THE CITY COUNCIL
x 41
Attorney for City of Southlake City Secretary
Date
INTER-OFFICE CORRESPONDENCE
TO Ruth Alexander
r): '`E' March 26�
FROM Michael E. Pyles, Water Department
; Nr. l.
=r
:BJIXT LONG-TTRM SALES CONTRACT WITH THE CITY OF SOUTHL��;
Under M&C C-8266,the City Council authorized the City Manager to
execute a Long-Term Water Sales Contract with the City of Southlake.
Would you please take the necessary action to complete proper execution
of the attached original contract and then return the appropriate
number of copies to this office for further handling.
` J
Michael E. Pyles
Assistant Director/Business, Administration
MEP:smw
attachments
City oJ' Fort Worth., Texas
Mayor and Council Communication
DATE REFERE14CE SUOJECT, Long Term Water Sales Contract PAQg
NUMS14 With t4a City of Southl4ko
3/20/84 ' **C-8266 lot 2
Background:
On September 7, 1983, the City of Southlake requested to purchase treated water
from the City of Fort Worth. It has been determined that the City of
Southlake's needs can be met by connection at the Keller Reservoir,
It is proposed that the City of Southlake pay 100% of the cost of the
connection to the City of Fort Worth system including the cost of the meter
installation which is to include telemetering equipment to the Holly Plant for
maximum hour and maximum day determinations.
On December 15, 1983, the Water Department presented the City of Southlake all
facts concerning the proposed connection. Based on this presentation the City
of Southlake requested the Water Department to prepare the necessary long term
service contract between the City of Fort Worth and the City of Southlake:
Summary of Contract Provisions
The proposed contract has been prepared in accordance with the standard policy
of the City of Fort Worth for the sale of treated water to neighboring
communities. The proposed contract includes the following major provisions.
Rates The charges for water service are the same charges paid by other City
purchasers of treated water under long-term contracts and are based
on the following schedule, except that charges for water service
would never be less than the Fort Worth rates plus 10%.
1. Commodity Charge - 56.44 per 1,000 gallon purchased.
2. Cost of Facility Charge - An annual charge of $46,900, per
MCD for maximum day usage in excess of average day usage; and
$23,400 per MCD for maximum.
3. Service Charge - $25 per month per meter for meter reading,
billing and other expenses incurred with metering operation.
4. Minimum Annual Payment - shall never be less than the payment
calculated using the highest maximum rates of withdrawal
during any year.
Rate Adjustment - This contract is similar to water contracts with other cities
and provides for rate adjustment based on actual costs and
rates of use. The rate shall be reviewed and adjusted every
five years. The just review and rate adjustment based on the
rate consultants study will be effective October 1 , 1987 and
shall remain in effect from October 1, 1987 to September 30,
1992 with similar review and rate adjustment made for each
succeeding five-year period for the term of the contract. The
amount charged for raw water shall be increased or decreased
when the raw water cost paid by the City of Fort Worth for raw
water available for treatment and sale to the City of Southlake
is increased or decreased.
OATS N;MBERcE SUBJECT' Long Term Water Sales Contract
PAGE
3120184 **C-8266 With the City of Southlake
2 2
Restriction of Water Use - Southlake customers would be subject to the same
conditions for restrictions of water use or other water conservation measures
as would apply to similar customers in Fart Worth should such actions become
necessary.
Life of Contract - The term of this water sales contract will be seventeen (17)
years from the date of execution.
Recommendation
It is recommended that the City Council authorize the City Manager to execute
the contract under which water service will be provided to the City of
Southlake under a long term water sales contract.
Dl.mep APPROVED BY
CITY COUNCIL
Mtirt 20 1984
City secreta
x'y of the
City of PO4 WAUtk XnXag
SUBMITTED FOR T)4C
CITY MA AGF ' 011"#'FON Oy COUNCIL, E E y
FraE NY. � A E
#Gf#4A'rING i oT#±E 4 SegtgE9
EPARIMEN`t "CAO Richard Sauey
CITY SE RU APY
F00 At701TI }NAL INFOO 4O
CONTACT: Me Pyles Ext. 8220
CtATE