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HomeMy WebLinkAboutContract 16152 < October 12, 1987 WHOLESALE WASTEWATER CONTRACT CITY SECRETARY STA'L'E OF TEXAS § CONTRACT hk,/'_ COUNTY OF TARRANT § This contract made and entered into this, the _�At_-,_ day of kwM&4.) , 1987, by and between the City of Fort Worth , Texas , a municipal corporation, acting herein by and through its City Manager, Douglas Harman, who is duly authorized so to act, hereinafter referred to as "Fort Worth , " and the Trinity River .Authority of Texas, a governmental agency of the State of Texas , acting herein by and through its General Manager, Danny F. Vance, who is duly authorized so to act, herein after referred to as "TRA the City of Hurst, Texas a municipal corporation, acting herein by and through its Mayor , Bill Souder , who is duly authorized so to act, and, the City of North Richland Hills , Texas, a municipal corporation, acting herein by and through its Mayor , Dan Echols, who is duly authorized so to act, herein after referred to either as "Cities" , "Hurst" or "North Richland Hills" respectively. WHEREAS , the public health , welfare and safety of the residents of Fort Worth and Cities require the development of adequate systems of sewage collection and disposal , the elimination of water pollution and the preservation of the water resources of the area; and 1 October 12, 1987 WHEREAS , Fort Worth is required to comply with standards and treatment methods for wastewater as set forth in federal , state and local laws and regulations and permits; and WHEREAS, Fort Worth, TRA and Cities have an interest in maintaining and restoring the chemical, physical and biological integrity of waters and water resources and insuring the reduction of pollution in said waters and water resources, and planning the use, development, restoration, preservation and enhancement of said waters and water resources; and WHEREAS, Fort Worth, TRA and Cities have previously entered into a contract , being known as Fort Worth City Secretary Contract No. 6300 , dated April 18 , 1969 , together with any and all amendments thereto dated October 1, 1973, and March 12, 1984, said contract and amendments , if any, providing for wastewater treatment services; and WHEREAS , TRA desires to continue to connect i't ' s sanitary sewer system to the Fort Worth System for the primary purpose of furnishing sewer service to Hurst and North Richland Hills; and WHEREAS, TRA desires to continue to contract for wastewater treatment service and Fort Worth desires to continue to provide wastewater treatment service to TRA; and WHEREAS , Article 4413 ( 32c ) ( the Interlocal Cooperation Act) and Article 1185, §3 of the Revised Civil Statutes of Texas, authorizes Fort Worth , TRA and Cities to enter into this agreement; 2 October 12, 1987 NOW, THEREFORE, Fort Worth, TRA and Cities in consideration of the terms, covenants and conditions herein contained, hereby agree as follows: 1. Definitions When used in this contract, these terms shall be defined as follows: 1 . 1 Act or /° the Act " - The Federal Water Pollution Control Act, also known as the Clean Water Act ( "CWA" ) , as amended (33 U.S.C. 1251, et seq. ) . 1 . 2 Biochemical Oxygen Demand ( BOD ) - The quantity of oxygen utilized in the biochemical oxidation of organic matter specified by procedure in Standard Methods, and results expressed in terms of weight and concentration ( milligrams per liter (mg/1) ) . 1 . 3 Calibration - Verification of primary measuring device and secondary instrumentation accuracy utilizing standard primary device procedures and calibration signals and/or a separate flow measurement instrument. 1 . 4 Customer System - The facilities of TRA used for collection and transportation of wastewater to the point of entry. 1 . 5 Cities System - The facilities of the Cities used for pretreatment, collection and transportation of wastewater to the Customer System. 3 October 12, 1987 1 . 6 Delivery facilities - All facilities necessary for the transmission of wastewater to the Fort Worth System that are on the IRA ' s side of the point of entry that are constructed specifically to allow Fort Worth to serve TRA. 1 . 7 Director - The Fort Worth Water Department Director or his designee. 1 . 8 Domestic accounts - Single-family and residential duplex dwellings served by one meter . This definition is used only in the context of determining 'billing on a per-connection basis. 1 . 9 Fort Worth Expense - Expenses incurred by Fort Worth related to the wastewater utility, such expenses to be allocated as a System Cost if so determined in future cost-of-service studies. 1 . 10 Fort Worth System - Fort Worth ' s wastewater collection and treatment system. 1 . 11 General benefit capital facilities - Wastewater facilities that provide utility services and benefits common to all customers ; this includes wastewater treatment facilities , metering and sampling facilities , control systems and appurtenances, and all major collectors and interceptors that are eighteen inches (1811 ) and greater in diameter. 1 . 12 Indirect Discharge - The discharge or the introduction of industrial wastes from any source regulated under Section 307 ( b) or (c) of the Act, ( 33 U.S.C. 1317 ) , into the Fort 4 October 12, 1987 Worth System ( including holding tank waste discharged into the system) . 1 . 13 Industrial User - A source of indirect discharge which does not constitute a "discharge of pollutants " under regulations issued pursuant to Section 402 , of the Act, ( 33 U. S.C. 1342) . 1 . 14 Industrial wastes - All water-borne solids , liquids or gaseous substances resulting from industrial, manufacturing or food processing operations, or from the development of a natural resource, or any mixture of these with water or domestic sewage. 1 . 15 Infiltration - Water that has migrated from the ground into the wastewater system. 1 . 16 Inflow - Water other than wastewater that enters a sewerage system ( including sewer service connections ) from sources such as, but not limited to, roof leaders, cellar drains, yard drains, area drains, drains from springs and swampy areas , manhole covers , cross connections between storm sewers and sanitary catch basins , cooling towers , storm waters , surface runoff , street wash waters or drainage. Inflow does not include, and is distinguished from, infiltration water. 1 . 17 Liquid Waste - The water-borne solids , liquids , and gaseous substances derived from certain sources including, but not limited to, grease trap , septic tank, chemical toilet waste and sand trap waste. 5 October 12, 1987 1 . 18 Metering and sampling facility - The meter , meter vault, and all metering and telemetry equipment required to measure and/or sample wastewater flows of TRA at point of entry or other such locations , as may be mutually agreed upon in writing. 1 . 19 Non-domestic account - Commercial , industrial , multi-family or other accounts that are not considered domestic accounts . This definition is used only in the context of determining billing on a per-connection basis. 1 . 20 Non-metered area - Areas within IRA ' s Cities ' certificated or corporate boundaries that generate wastewater that do not drain into a part of the Customer System for which wastewater flow is measured by an approved metering and sampling facility. 1 . 21 Point of entry - The metering facility or , where no metering facility is utilized, the point of connection to the Fort Worth System, unless otherwise mutually agreed upon in writing. 1 . 22 Pretreatment - The reduction of the amount of pollutants, the elimination of pollutants , or the alteration of the nature of pollutant properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such pollutants into a Publicly Owned Treatment Works. The reduction or alteration can be obtained by physical , 6 October 12, 1987 chemical or biological processes , or process changes by other means, except as prohibited by 40 CFR Section 403 . 6 (d) . 1 . 23 Pretreatment requirements - Pollutant concentration discharge limitation and reporting requirements stipulated in Fort Worth Ordinance No. 8895 and any amendments thereto, and the Cities ' Code, as hereinafter amended, and Federal Pretreatment Standards promulgated by the U . S . Environmental Protection Agency. 1 . 24 Significant industrial user - Any industry which discharges industrial wastes directly or indirectly into the Fort Worth System or Customer System or Cities ' System that: discharges 25,000 gallons per day or more of industrial wastes; - is subject to the National Pretreatment Standards : Categorical Standards of the U . S . Environmental Protection Agency; or, has a reasonable potential , in the opinion of the Director , to adversely affect the Fort Worth System due to discharge of wastewater with abnormally high strength or limited and/or prohibited substances. 1 . 25 Standard methods - Those testing or analysis procedures as prescribed in the then current edition of " Standard Methods for Examination of Water and Wastewater , " published by the American Public Health Association and/or the U . S . Environmental Protection Agency Manual of Methodologies for the 7 October 12, 1987 Examination of Water and Wastewaters, or as will otherwise comply with procedures specified in state and federal discharge permits held by Fort Worth. 1 . 26 System cost - Operating expenses and capital related costs incurred by Fort Worth pursuant to the provision of wastewater collection and treatment service to the wholesale class of sewer customers. Such costs are to be collected by Fort Worth as a component of the annual cost of providing wholesale wastewater service. 1 . 27 System Access Fee - A capital contribution ( impact fee, capital recovery fee, system development charge ) which represents a proportional capital cost of general benefit capital facilities capacity, less depreciation, outstanding debt, and appropriate contributions paid to Fort Worth, required to provide service for new connections , whether located within the jurisdictional limits of Fort Worth, TRA or Cities . 1 . 28 Total Suspended Solids (TSS ) - Solids , measured in mg/l, that either float on the surface of , or are in suspension in, water , wastewater or other liquids , and which are largely removable by a laboratory filtration device. Also referred to as Total Non-Filterable Residue. 1 . 29 Wastewater - All liquid or water-carried waste products from whatever source derived, together with such ground water infiltration and surface water inflow as may be present, whether treated or untreated, which is discharged into or 8 October 12, 1987 permitted to enter into the Fort Worth System. The words "wastewater" and "sewage" are interchangeable. 2. Connection to the Fort Worth System 2.1 Fort Worth hereby grants to TRA, upon compliance with the terms and conditions contained herein, permission to connect its System to the Fort Worth System. 2. 2 Fort Worth agrees to accept all wastewater from TRA at the point ( s ) of entry as designated on Exhibit "A" , attached hereto and incorporated herein, and at such additional points as may later be mutually agreed upon in writing signed by the parties hereto. 2 . 3 The cost of all delivery facilities necessary to convey wastewater to the designated points of entry, whether shown on Exhibit "A" or mutually agreed upon at a later date, together with the cost of connection of the Customer System to the Fort Worth System, with the exception of metering and sampling facilities , shall be borne by TRA. In the event Fort Worth requests TRA to increase the size of any such delivery facility, the difference in the cost of the delivery facility as designed by TRA and the cost of the delivery facility as requested by Fort Worth shall be at Fort Worth' s expense and may be allocated as a system cost if so determined in future cost-of-service studies. 2 . 4 Unless mutually agreed to in writing by the parites hereto , TRA and Cities shall be responsible for the design, contracting, construction and financing of delivery facilities 9 October 12, 1987 and acquisition of any necessary rights-of-way and easements to and from such facilities . All designs , materials and specifications shall conform to Fort Worth ' s requirements as a minimum. Plans and specifications for any delivery facility which actually connects to the Fort Worth System shall be submitted to the Director for written approval . Such approval shall not be unreasonably withheld. No construction shall begin until such approval has been given. TRA and Cities agree that Fort Worth has the right to make periodic inspections during the construction phase of the delivery facilities . Final acceptance of such facility from the point of connection up to and including the metering and sampling facility is subject to the inspection and written approval of the Director. 2. 5 After the date of this contract , TRA and Cities agree not to provide service to or contract or subcontract with any new customer whose need for wastewater service would exceed 500 , 000 gallons per day without written notice to the Director. 3 . Maintenance of Customer System and Cities System TRA and Cities agree to maintain their systems in good condition and to make repairs in a timely manner . Fort Worth shall not have any responsibility or liability now or ever for the operation of the Customer System, except as agreed to in writing by the parties hereto. 10 October 12, 1987 4. Maintenance of Fort Worth System Fort Worth agrees to maintain its system in good condition and to make repairs in a timely manner. TRA and Cities shall not have any responsibility or liability now or ever for the operation of the Fort Worth System, except as otherwise provided herein. 5 . Metering and Sampling Facilities 5 .1 Beginning on the effective date of this contract, Fort Worth shall have the right to use, operate, and maintain TRA metering and sampling facilities and Fort Worth shall become solely responsible for the operational and maintenance responsibilities associated with these facilities . TRA will continuously provide a route of ingress and egress to said metering and sampling facilities for Fort Worth . Fort Worth shall have the discretion to construct improvements, expansions, and replacements to said facilities as a system cost and at the timing of Fort Worth ' s needs subject to the review by TRA of all proposed construction, expansion, and replacement plans . TRA will also grant and provide to Fort Worth such permits or easements as are necessary for the continuous operation and maintenance of all metering and sampling facilities. All such costs incurred by Fort Worth for operation , maintenance , construction , expansion, and replacement of TRA metering and sampling facilities shall be considered system costs. 5 .2 Unless otherwise agreed to by the parties in writing , Fort Worth shall have the option to construct TRA metering and 11 October 12, 1987 sampling facilities not currently in existence. All construction costs , including, but not limited to , site acquisition and preparation , design and engineering, construction and equipment for such facilities , together with the costs of necessary easements and rights-of-way, shall be system costs, including any and all necessary modifications to accommodate a complete initial installation satisfactory to Fort Worth. If TRA constructs new metering and sampling facilities , TRA may either transfer ownership of such newly constructed facilities, together with all necessary access easements and rights-of-way to Fort Worth in a form satisfactory to Fort Worth or may grant to Fort Worth the right of ingress and egress to such facilities, together with the authority to operate and maintain the facilities as specified in Section 5 . 1 , within sixty ( 60 ) days of such completion . Thereafter , Fort Worth shall operate and maintain the facilities as a system cost and treat any ownership transfer as a contribution for rate purposes, but same shall not be an indicia of equity ownership. 5 . 3 Expenses incurred by Fort Worth for the operation and maintenance of TRA metering and sampling facilities shall be system costs and shall include, but not necessarily be limited to, the following: A. Cost of electricity at the facility; 12 October 12, 1987 B. Cost of the initial installation of the telemetry service at the facility and to the control center and cost of monthly lease charge for the telephone line; C. Cost of calibration; D. Cost of parts , materials and supplies required for repairs, calibrations and upgrading of the facilities; E. Labor cost plus fringe benefits and indirect costs for repairs, calibrations and upgrading of the facilities; F. Maintenance of ingress and egress and meter facility site. 5 . 4 Replacement of facilities described in this section or equipment therein occasioned as a result of obsolescence due to age, excessive maintenance, growth or other reasons as determined by the Director shall be a system cost. Any replacement facility or equipment therein shall comply with Fort Worth' s standards and specifications. 5 . 5 . Upon expiration or termination of this agreement by either party, Fort Worth shall transfer to TRA ownership of any property easements , metering and sampling facilities and rights-of-way conveyed to Fort Worth pursuant to the terms of this Section 5 . 6. Rights-of-Way TRA and Cities shall grant, without charge to Fort Worth, such easements and rights-of-way along public highways or other property owned by TRA and Cities, as requested by Fort Worth, in 13 October 12, 1987 order to construct or maintain mains or facilities within the corporate limits and/or service area of TRA and Cities to provide wastewater collection to TRA and to other areas . Upon notice from Customer and at Fort Worth expense, Fort Worth will move such wastewater mains or facilities located in such street right-of-way, or other property owned by TRA and Cities when reasonably necessary to the performance of essential governmental duties by TRA and Cities. Fort Worth shall grant, without charge to TRA , such easements and rights-of-way along with public highways or other property owned by Fort Worth, as requested by TRA, in order to construct and maintain wastewater mains or facilities within Fort Worth to provide wastewater collection to TRA. Upon notice from Fort Worth and at TRA' s expense, TRA will move such wastewater mains or facilities when located in such street rights-of-way or other property owned by Fort Worth when reasonably necessary to the performance of essential governmental duties by Fort Worth. All work done by or on behalf 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 Fort Worth, but no party hereto will be required to restore the other ' s property to a condition exceeding its original condition , unless otherwise mutually agreed in writing . Fort Worth and TRA agree to coordinate the location of the mains and/or facilities in the other ' s easements and 14 October 12, 1987 rights-of-way in order to prevent further conflicts insofar as reasonably practicable. 7. Metering and Sampling 7 . 1 All flow discharged into the Fort Worth System by TRA shall be metered, unless specifically agreed to by all parties in writing. Should the parties hereto agree in writing that metering is not possible , the agreed upon method for determining -the volume shall include an adjustment for infiltration and inflow. 7 . 2 If , in the judgment of the Director , the sewage generated within one or more areas of TRA and Cities cannot be accurately measured by an approved type of metering station, then the charge for sanitary sewer service within that drainage area will be made on a per-connection basis . In such cases , the volume of sewage for billing purposes will be deter-mined by adding the product derived from multiplying the number of domestic accounts within the area times 10,500 gallons to the sum total metered water of all non-domestic accounts within the area . The total volume so derived each month will be used as the basis for calculating the total sewer charges due each month for that drainage area and such charges will be added to any other charges , if any, based on metered connections . For all such non-metered areas , TRA and Cities will be responsible for providing data each month on the number of domestic accounts and the metered water volume of all non-domestic accounts . This data 15 October 12, 1987 will be provided to Fort Worth no later than the 5th of each calendar month. 7 . 3 TRA and Cities shall have access to the metering and sampling facilities at all reasonable times ; provided, however , that any reading , calibration or adjustment to such -metering equipment shall be done by employees or agents of Fort Worth, or other mutually approved third party calibration agent, in the presence of representatives of all parties , if so requested . Notification of any proposed tests shall be provided to all parties at least seventy-two ( 72) hours prior to such tests being conducted. 7 . 4 All readings of meters will be entered in ink upon bound journals maintained by Fort Worth. All parties shall have access to such records during reasonable business hours and shall be furnished with monthly totalizer readings for each point of entry metering and sampling facility. 7 . 5 Fort Worth shall calibrate and routinely service the meters no less than once during each six (6 ) month period. Copies of the results of such calibration and all related information shall be provided to all parties . Fort Worth shall notify all parties at least seventy-two ( 72 ) hours in advance of the date and time for any calibration and all parties may observe, if so desired. 7 . 6 Upon any calibration , if it is determined that the accuracy envelope of such meter is found to be lower than 16 October 12, 1987 ninety-five percent (95% ) or higher than one hundred five percent (1050 ) expressed as a percentage of the full scale of the meter , the registration of the flow as determined by such defective meter shall be corrected for a period extending back to the time such inaccuracy began, if such time is ascertainable; or, if such time is not ascertainable , then for a period extending back one-half ( 1/2 ) of the time elapsed since the date of the last calibration, but in no event further back than a period of six (6 ) months. 7 . 7 If any meter used to determine volume from TRA is out of service or out of repair so that the amount of wastewater metered cannot be ascertained or computed from the reading thereof, the wastewater delivered through the period such meter is out of service or out of repair shall be estimated and agreed upon by Fort Worth and TRA upon the basis of the best data available. The basis for estimating such flow includes, but is not limited to, extrapolation of past patterns of .flow for said metering station under similar conditions . In the event that the parties hereto cannot agree on the extrapolated estimate of wastewater volume delivered, agreement on the flow volume will be determined by third party arbitration. 7 . 8 Fort Worth shall periodically determine the quality of the wastewater at the metering and sampling facilities or other agreed upon sampling points for the purposes of billing for the strength of the wastewater . The sampling and testing shall 17 October 12, 1987 normally occur at such frequency as determined by the monthly flow of sewerage, as outlined in the sampling table below: TRA Flow Monitoring (million gallons per month) .(times per year) 80 and more 3 Greater than 50 and less than 80 2 50 or less 1 To determine the quality of the wastewater , Fort Worth shall collect. twenty-four ( 24) hour flow-weighted composite samples for a period of not less than five ( 5 ) consecutive twenty-four (24 ) hour periods . Fort Worth will provide TRA and Cities with a minimum of seven ( 7 ) day advance notification of intent to sample, or such notification as is sufficient to allow TRA and Cities to arrange the services of a qualified laboratory. If , at the request of any party hereto, more extensive monitoring is desired, such additional monitoring shall be paid for by the party malting the request and shall be done in compliance with Section 7. If TRA or Cities request such additional monitoring, Fort Worth shall invoice the requesting party and payment shall be made within ten (10 ) days after receipt of invoice. 18 October 12, 1987 The notification required in this section shall include the planned dates, times , and location ( s ) of sampling . Fort Worth shall analyze the samples collected in accordance with standard methods. TRA and Cities may be present during the initial setup of sampling equipment and at the time of pickup for each twenty-four ( 24 ) hour composite sample. Fort Worth agrees , if requested , to split said wastewater samples with the other parties hereto 7 . 9 If in the opinion of the Director, compliance monitoring is required, the Director may order that additional monitoring be performed with or without prior notice to TRA or Cities . Said compliance monitoring is to be in addition to the periodic sampling set forth in Section 7. 8. All information obtained as a result of such compliance monitoring shall be provided to the other parties upon request. Fort Worth will provide notice of such compliance monitoring to all parties within a reasonable time thereafter. 7 . 10 If any party hereto disputes Fort Worth results of analyses and the parties hereto cannot settle such dispute, such dispute will be determined by third party arbitration. 7 . 11 Costs incurred by Fort Worth under this section will be considered to be a system cost. 8. Rates and Charges 8 . 1 Wholesale wastewater rates will be based upon cost-of- service rate studies performed by independent utility rate 19 October 12, 1987 consultants as described herein. The independent utility rate consultant shall be selected by Director from a list of five highly qualified firms submitted by the Wastewater System Advisory Committee. The cost of such studies will be a system cost. All cost-of-service studies shall be conducted utilizing the utility cost basis of determining revenue requirements applicable to the wholesale customer class. 8 . 2 The cost-of-service for the wholesale class shall include allocated reasonable and necessary operation and maintenance expense , depreciation expense and a fair and reasonable return on allocated capital facilities. To determine the allocation and distribution of costs to the wholesale customer class , the independent utility rate consultant shall consider at least the following factors : total volume, rate of flow, wastewater quality, metering , and customer-related costs such as accounting , billing, and monitoring . Capital-related costs will consist of depreciation expense and return on original cost rate base. on a periodic basis as determined by the Director the depreciation rates on all general benefit capital facilities shall be studied, and new salvage values , useful lives , and annual rates of depreciation shall be developed from such studies . The rate base shall consist of all allocated capital facilities , net of depreciation and appropriate contributions, and shall include construction work in progress , a reasonable allowance for working capital , and a reasonable 20 October 12, 1987 inventory of materials and supplies necessary for the efficient operation of the Fort Worth System . on a periodic basis as determined by the Director , a cash "lead-lag" study shall be conducted to determine the appropriate level of working capital at the same time as the above depreciation rate study is done. Records of the original cost and the accumulated depreciation of all capital facilities shall be maintained in the Fort Worth Fixed Asset Tracking Sys-tem. These records shall be available for inspection at the Fort Worth Water Department during reasonable business hours upon request by any party hereto. 8. 3 Fort Worth shall be allowed an adequate opportunity to earn a reasonable rate of return. The return shall be sufficient to assure confidence in the financial soundness of the utility, shall be adequate to maintain and support its credit, shall enable it to raise the money necessary for the proper discharge of its public duties , and shall be equal to the weighted average imbedded cost of outstanding debt plus one-and-one-half percent (1 1/2% ) . 8 . 4 Every three ( 3 ) years , a detailed wholesale revenue requirement shall be developed on an actual historical cost test year basis allowing for reasonable and necessary expenses of providing such wastewater service and allowing for known and measurable adjustments . Such adjustments should allow for year- end trending and the spreading of non-recurring expenses over an appropriate benefit period. The first test year shall be October 21 October 12, 1987 lst, 1986 , through September 30th, 1987, and the first detailed cost-of-service study shall be performed by an independent utility rate consultant during the first two ( 2 ) calendar quarters of 1989 , based on audited data for the immediate past fiscal year ended September 30, 1988 . On a three (3 ) year cycle thereafter, a complete detailed rate study will be performed with the same methodology used in the previous rate study by an independent utility rate consultant. Thereafter , changes in the methodology will be allowed if recommended by a majority of the Wastewater System Advisory Committee, such majority defined by any combination of customers contributing a total of more than fifty percent (50%) of the wholesale sewage flow in the immediate past fiscal year , and approved by the Fort Worth City. Council. In the interim period between complete detailed rate studies , wholesale wastewater rates shall be adjusted by Fort Worth using the same methodology adopted at the time of the last complete detailed rate study, utilizing the actual operating data for the twelve month period ending September 30th of the prior year , adjusted for known and measurable changes in cost data which may have occurred since the last audited statement. 8 . 5 The initial rates for this contract shall be those approved by the Tarrant County Mayor ' s Council on April 27, 1987, and adopted by the Fort Worth City Council on May 7 , 1987 , and are as follows: 22 October 12, 1987 Volume Charge $0 . 3374 per 1000 gallons BOD Strength Charges $0. 0683 per pound of BOD TSS Strength Charges $0.0417 per pound of TSS Monthly Billing Charges $27. 00 8 . 6 Bills for wastewater treatment and disposal service shall be rendered to TRA monthly by Fort Worth . All such bills shall be due and payable by TRA not more than -thirty (30 ) days from the billing date. The bills will show current charges , as well as past-due charges , if any. Current charges shall be the amount due for wastewater collection, treatment and disposal service provided since the prior billing period. Past-due charges shall be the total amount unpaid from all prior billings as of the current billing date. Payments received by Fort Worth shall first be applied to the past-due charges , if any, and thereafter to the current charges. 8 . 7 If TRA disputes a bill and is unable to resolve the difference informally, TRA shall notify the Director in writing . If the Director and TRA are unable to resolve the disputed bill, agreement on the bill will be determined by third party arbitration . Dispute of a bill is not grounds for non-payment. In the event a payment is not paid as specified in this 23 October 12, 1987 agreement, a finance charge of ten percent (10% ) per annum will be calculated from the date which the payment was required to be made. In the event the bill established by arbitration is less than the disputed bill , then the amount found to be incorrect will be credited to TRA ' s account together with an interest charge of ten percent ( 10% ) per annum calculated from the date payment of the disputed bill was received. 8. 8 TRA and Cities agree that the services obtained pursuant to this con-tract are essential and necessary to the operation of TRA and Cities ' waterworks and wastewater systems and Customer represents and covenants that all payments to be made by it under this contract shall constitute reasonable and necessary operating expenses of its combined systems , and all such payments will be made from the revenues received by TRA and Cities from such systems. 8 . 9 TRA and Cities agree , throughout the term of this agreement , to fix and collect such rates and charges for wastewater service to be supplied as will produce revenues in an amount equal to at least ( i ) all of operation and maintenance expenses of such system, including specifically its payments under this agreement; and ( ii ) all other amounts as required by law and the provisions of resolutions authorizing its revenue bonds or other obligations now or hereafter outstanding , including the amounts required to pay all principal of and interest on such bonds and other obligations. 24 October 12, 1987 8 . 10 TRA and Cities specifically agree to adopt and maintain in effect for the life of this contract ordinances , resolutions , rules and/or regulations within their respective jurisdictional limits providing for a user charge system in full accord with relevant EPA regulations. 9. Industrial Connection and Monitoring 9 . 1 TRA and Cities agree that they will not permit any significant industrial user within their jurisdiction to connect directly or indirectly either to their systems or to the Fort Worth System without at least -thirty ( 30 ) days ' prior written notification to the Director of such intent to connect . TRA and Cities shall provide the Director with such information pertaining to volume and composition of flow as may be requested by the Director. 9 . 2 TRA and Cities agree to conduct any and all monitoring, sampling and inspection of its respective System and industrial users as necessary to insure that industrial waste introduced into the Customer System meets the quality standards set out in Section 10 . 2 hereof. Upon request to TRA or Cities, a representa- tive of Fort Worth will be permitted to observe the collection of samples from industrial users, and the applicable party agrees to furnish Fort Worth separate duplicate samples for independent testing , and , upon request , to provide the Director sample analysis results and pretreatment records. 25 October 12, 1987 9 . 3 TRA and Cities agree that Fort Worth shall have the right to sample wastewater at all points of entry and such other locations as may be mutually agreed to in writing by the parties hereto for the purpose of determining the volume and quality of wastewater entering the Fort Worth System. TRA and Cities agree to disconnect from its respective system any industrial user found to be in violation of allowable discharges or who refuses access to its facilities for the purpose of sampling wastewater being discharged into the Customer System; provided, however, that said disconnected industrial user shall be afforded the same rights , privileges of appeal and deficiency cure periods as are industrial users operating within Fort Worth' s jurisdiction. 9 . 4 Following notice to any party hereto by Fort Worth , all parties here-to grant to Fort Worth the right to enter any party' s respective jurisdiction if Fort Worth determines that question- able discharges or prohibited discharges are entering the Fort Worth System emanating from the Customer System. TRA and Cities agree to assist Fort Worth in locating and eliminating such prohibited discharges. 10 . Wastewater Quality 10 .1 TRA and Cities agree that on or before thirty ( 30 ) days from date of execution of this con-tract they shall enact and cause to be enforced an ordinance, rule, resolution or regulation enabling each of them to enforce within their respective jurisdic- tions regulations governing industrial waste that are at least as 26 October 12, 1987 stringent as the provisions of the current Fort Worth Ordinance No . 8895 and any necessary and reasonable amendments thereto, ( attached hereto and marked as Exhibit "B" and made a part hereof for all intents and purposes ) and state and applicable federal regulations relating to l ) discharged substances; 2 ) prohibited discharges; 3 ) pretreatment requirements; 4 ) industrial discharge permitting system; and 5 ) industrial self-monitoring reports. TRA and Cities agree to adopt such ordinances, resolutions , rules and/or regulations as may be necessary for them, within their respective jurisdiction to enforce ordinances or any amendments to Ordinance No . 8895 , or any future ordinances relating to industrial discharges , prohibited or controlled wastes or pretreatment requirements and such amendments and future ordinances shall become incorporated as additional exhibits to this contract; provided, however , Fort Worth shall provide each party hereto with a copy of such proposed ordinances or amendments at least sixty (60 ) days prior to the presentation of such ordinances or amendments to the Fort Worth City Council during which time each party hereto shall have an opportunity to review same . TRA and Cities shall adopt and enforce such proposed ordinances or amendments within their respective jurisidictions no later than the effective date of the Fort Worth ordinance or amendment. 10 . 2 TRA and Cities agree that the quality of the wastewater discharged into the Customer System shall be equal to or better 27 October 12, 1987 than the quality standards established by Fort Worth Ordinance No. 8895, or any amendment adopted pursuant to Section 10 .1. 10.3 TRA and Cities shall require all significant industrial users within their respective jurisdictions that ultimately discharge into the Fort Worth System to apply for and obtain a permit from the applicable party allowing such discharge. Such permit shall require industrial users •to abate prohibited substances from their discharge as a condition to discharging wastewater into the Customer System. The permit application shall contain, as a minimum, the following: 1. Name and address of discharger; 2 . Agent for discharger; 3 . Type of industry; 4 . Products produced or services rendered; and 5. Chemicals being stored and/or used. The applicable party shall provide Fort Worth a copy of such application and permit, if issued, within fourteen ( 14 ) days after issuance. 11. Resale of Wholesale Wastewater Services 11 . 1 TRA or Cities may provide wastewater services to wholesale customers upon the recommendation of the Wastewater System Advisory Committee with prior written notice to and consent from the Director , said consent not to be unreasonably withheld. TRA or Cities shall provide the Director a copy of the 28 October 12, 1987 proposed contract with its wholesale customer as part of its written notice to the Director. 11 . 2 If TRA or Cities provide wastewater services to wholesale customers , the applicable party shall require its wholesale customers to comply with Sections 9, 10 and 28 of this contract and to enact and enforce any and all necessary ordinances, rules, regulations or resolutions. 12. Infiltration and Inflow TRA and Cities agree that they have an obligation to prevent infiltration and inflow into their respective Systems and then into the Fort Worth System. TRA and Cities further agree that all sewer connections within their jurisdictions which ultimately enter into the Fort Worth System will be constructed in accordance with applicable specifications and standards at least equal to those of the Fort Worth Water Department . Further, TRA and Cities covenant and agree to maintain strict supervision and maintenance of their respective Systems to prevent connections through which surface drainage can enter ultimately into the Fort Worth System. Neither TRA nor Cities shall make, nor shall they permit to be made, any connection which will contribute storm water run-off from rainwater spouts , rainwater areas , streets , gut-ter drain or other source into its sanitary sewer system. 13 . Sludge Disposal TRA and Cities recognize the importance of utilizing sludge in a timely and proper manner. TRA and Cities will cooperate with 29 October 12 , 1987 Fort Worth in any environmentally sound sludge utilization program meeting federal and state standards within the area served by any party hereto. 14. Wastehaulers Cities agree to adopt by ordinance, rule, .regulation or resolution the North Central Texas Council of Government ' s model ordinance, or one similar to it, _regulating liquid wastehaulers within Cities' service area. At a minimum, the ordinance, rule, regulation or resolution shall require liquid wastehaulers to be permitted and provide for a manifest system. Further , said ordinance , rule, regulation or resolution shall prohibit the introduction of liquid waste into the Customer System, directly or indirectly. 15. Assistance 15 . 1 In the event TRA or Cities request assistance with their respective Systems, Fort Worth may, at its option, assist the requesting party. Such party agrees to pay Fort Worth its actual costs incurred, including, but not limited to, labor and material expended. Nothing herein shall be construed to require Fort Worth to assist the requesting party. Such costs will be invoiced to such party and payment made within ten ( 10 ) days after receipt of invoice. 15 . 2 In the event Fort Worth requests assistance with its System, the other parties may, at their option , assist Fort Worth. Fort Worth agrees to pay such parties their actual costs 30 October 12, 1987 incurred, including , but not limited to, labor and material expended. Nothing herein shall be construed to require any party hereto to assist Fort Worth. Such costs will be invoiced to Fort Worth and payment made within ten ( 10 ) days after receipt of invoice. 16. Payment and Finance Charge The parties hereto agree that the failure to make any payments within the times provided for herein results in additional cost to the party to be paid; therefore, the parties agree that any payment required herein not made within thirty ( 30 ) days of the billing date shall be subject to a finance charge of ten percent ( 10% ) per annum to be calculated from the date which the payment was required to be made. 17. Reports and Records If requested by the Director , and/or Cities and/or TRA any party hereto shall provide quarterly the following data: A. Actual number of customer accounts discharging directly or indirectly into the Fort Worth System and/or Customer System within its service area; B. Classification of domestic and nondomestic accounts within its service area by number and percentage of accounts discharging directly or indirectly into the Fort Worth System and/or Customer System within its service area. 31 October 12, 1987 C. Additional data which may assist Fort Worth and/or TRA and/or Cities in developing methodology for cost of service studies , planning studies for analyzing federal grants , and system access fees ; provided , however , that no party hereto shall request data that will require any party hereto to incur unreasonable expenses in providing such data. 18. Notices Any notice, communication, request, .reply or advice herein provided or permitted to be given, made or accepted by either party to the other party must be in writing to: City of Fort Worth: Water Director City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Customers: Mayor City of North Richland Hills P.O. Drawer 18609 7301 Northeast Loop 820 North Richland Hills, TX 76180 Mayor City of Hurst 1505 Precinct Line Road Hurst, TX 76053 32 October 12, 1987 General Manager Trinity River Authority of Texas P. 0. Box 60 5300 South Collins Arlington, Texas 76010 The parties hereto shall indicate in writing any change that may occur in such respective addresses from time to time. 19 . Inspection and Audit Complete records and accounts required to be maintained by each party hereto shall be kept for a period of five (5 ) years. Each party shall at all times , upon notice, have the right at reasonable times to examine and inspect said records and accounts during normal business hours ; and further , if required by any law, rule or regulation, make said records and accounts available to federal and/or state auditors. 20. Consent 20 . 1 Whenever, under the terms of this agreement, Fort Worth is permitted to give its written consent or approval, Fort Worth , in its discretion, may give or may refuse such written consent or approval and, if given, may restrict, limit or condition such 33 October 12, 1987 consent or approval in any manner it shall deem advisable; however, consent will not be unreasonably withheld. 21. Waiver, Remedy, Severability 21.1 No waiver by any party hereto of any term or condition of this agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 21 . 2 In addition to any other remedy as may be provided by law, this agreement shall be specifically enforceable by the parties hereto. Venue for any action shall be in Tarrant County, Texas. 21 . 3 It is agreed that, in the event any term or provision herein contained is held to be invalid by any court of competent jurisdiction , the invalidity of such term or provision shall in no way affect any other term or provision contained herein ; further , this agreement shall then continue as if such invalid term or provision had not been contained herein. 22. ownership and Liability 22 .1 No provision of this agreement shall be construed to create any type of joint or equity ownership of any property, any partnership or joint venture , nor shall same create any other rights or liabilities and no payments (whether past, present, or future) will be construed as granting Customer partial ownership of, pre-paid capacity in, or equity in the Fort Worth System. 34 October 12, 1987 22 . 2 Liability for damages arising out of the transporta- tion, delivery, reception, treatment, and/or disposal of all wastewater discharged into the Fort Worth System shall remain in the TRA, together with title thereto , until such wastewater passes through the point of connection to the Fort Worth System, at which time liability for such damage shall pass to Fort Worth, save and except that title to any prohibited discharge and any liability therefor shall not pass to Fort Worth unless such prohibited discharge originated in the Fort Worth System. Further, the parties hereto agree to indemnify, save and hold the other party harmless from any and all claims, demands, causes of action , damages , losses , costs , fines and expenses , including reasonable attorney' s fees, that may be asserted by anyone at any time on account of the transportation , delivery , reception , treatment and/or disposal while title to the wastewater is in such party. If such liability for damages is not attributable to a specific customer or Fort Worth, such liability becomes a Fort Worth expense. 22 . 3 Contracts made and entered into by TRA or Cities or Fort Worth for the construction, reconstruction or .repair of any delivery facility shall include the requirements that the independent contractor ( s ) must provide adequate insurance protecting TRA, Cities and Fort Worth as additional insureds . Such contract must also provide that the independent contractor ( s ) covenant to indemnify, hold harmless and defend all 35 October 12, 1987 parties hereto against any and all suits or claims for damages of any nature arising out of the performance of such contract. 23. Compliance with Permit Conditions TRA and Cities acknowledge that Fort Worth is the holder of discharge permits issued by the United States and the State of Texas . TRA and Cities agree that they will comply with all permit conditions in any way relating to the collection system and the discharge into the collection system. TRA and Cities agree, that in the event a fine is assessed against Fort Worth for any violation of any permit condition, and the violation is attributable to any act of omission or commission by either TRA or Cities , to indemnify Fort Worth and pay to Fort Worth the amount of such fine . If such fine is not attributable to a specific customer, such fine becomes a Fort Worth expense. 24 . Life of Contract The life of this contract shall be thirty ( 30 ) years from the date of its execution and -thereafter shall be subject to renegotiation between the parties hereto. 25. Force Majeure No party hereto shall be considered to be in default in the performance of any of the obligations hereunder ( other than obligations of either party to pay costs and expenses) if such failure of performance shall be due to an uncontrollable force beyond the control of the parties, including but not limited to, the failure of facilities , flood, earthquake, tornado, storm, 36 October 12, 1987 fire , lightning , epidemic , war , riot , civil disturbance or disobedience, labor dispute and action or non-action by a failure to obtain the necessary authorizations and approvals from any governmental agency or authority or the electorate , labor or material shortage, sabotage, or restraint by a court order or public authority, which by the exercise of due diligence and foresight such party could not have reasonably been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Any party rendered unable to fulfill any obligation by reason of an uncontrollable force shall exercise due diligence to remove such inability with all reasonable dispatch. In the event the proper operation of the Fort Worth System, as a result of the above, requires Fort Worth to temporarily interrupt all or part of the services to TRA, no claims for damage shall be made by TRA or Cities against Fort Worth. Fort Worth will exercise its best efforts to insure that such interruptions will not adversely affect the health and welfare of Cities ' residents. 26 . Termination This agreement may be -terminated in whole or in part by the mutual consent of TRA, Cities and Fort Worth. Notwithstanding anything contained herein to the contrary, any material breach by either party hereto to perform any of the duties or the obligations assumed by such party hereunder or to faithfully keep and perform any of the terms , conditions and provisions hereof 37 October 12, 1987 shall be cause for termination of this agreement by Fort Worth in the manner set forth in this paragraph. Fort Worth shall deliver to TRA and Cities ninety ( 90 ) days prior written notice of its intention to so terminate this agreement if the defaulting party fails to cure or adjust such material breach, including in such notice a reasonable description of the breach. If within said ninety ( 90 ) days the defaulting party shall fail or refuse to cure such default to the satisfaction of Fort Worth, then and in such event , Fort Worth shall have the right with six months advance written additional notice to such defaulting party and without any liability whatsoever on the part of Fort Worth to declare this agreement terminated. In the event of termination of this agreement, all rights , powers , and privileges of the defaulting party hereunder shall cease and terminate and the defaulting party shall make no claim of any kind whatsoever against Fort Worth, its agents or representatives , by reason of such termination or any act incident thereto, provided Fort Worth acted reasonably and such termination was not unreasonable , arbitrary and capricious. Fort Worth shall advise the defaulting party in writing immediately upon acceptance of the cure of any default. The following breach, default or failure to perform a duty or obligation shall be considered to be a material breach: 38 October 12, 1987 a. Failure to adopt and enforce,, any ordinance, rule, regulation or resolution required to be adopted and enforced herein; b. Failure to make any payment of any bill, charge or fee as provided for in this agreement; C. Making any connection to the Fort Worth system at any point except as provided in Section 2. 2 hereof; d. Failure to provide Fort Worth ingress and egress for purposes of sampling and operation and maintenance of any metering or any sampling facility; e. Failure to provide Fort Worth rights-of-way as required herein; f. Failure to permit any sampling of wastewater as provided for herein; 9- Failure to disconnect industrial users of TRA or Cities, as applicable, pursuant to Section 9 . 3; h. Failure to maintain the quality of discharge as required in Sections 10. 2 and 10. 3; i. Failure of TRA or Cities , as applicable, to comply with Section 11. 2 hereof; j . Failure of TRA or Cities , as applicable, to comply with Section 23 hereof. In the event of any other nonmaterial breach, default or failure to perform duties under this agreement, Fort Worth shall 39 October 12, 1987 deliver to the defaulting party sixty (60 ) days advance written notice of such default. If the defaulting party fails to cure such breach, default or failure, then Fort Worth shall give such party written notice of such failure to cure and may surcharge such party Five Thousand Dollars ( $5 , 000 ) per month until such time as the defaulting party cures such nonmaterial default. Any failure by Fort Worth to so terminate this agreement or the acceptance by Fort Worth of any benefits under this agreement for any period of time after such material breach, default or failure by any party hereto shall not be determined to be a waiver by Fort Worth of any rights to terminate this agreement for any subsequent material breach, default or failure. Any failure by any party hereto to so terminate this agreement or the acceptance by any party hereto of any benefits under this agreement for any period of time after such breach, default or failure by Fort Worth shall not be determined to be a waiver by any party hereto of any rights to terminate this agreement for any subsequent material breach, default or failure. 27 . Regional Wastewater Authority In the event Fort Worth is designated as a regional wastewater authority or agency by a duly authorized .regulatory body, or if Fort Worth should elect to contract with or assign this contract to a regional wastewater authority to provide all or part of the services covered by this agreement , the parties hereto agree that any such regional wastewater authority may, by 40 October 12, 1987 way of assignment of this agreement, assume the same obligations and receive the same benefits as Fort Worth . TRA and Cities hereby grant to Fort Worth the specific right to assign this agreement subject to the provisions of this section. 28 . System Access Fees 28 . 1 TRA and Cities agree to pay to Fort Worth on a quarterly basis a charge for each new or enlarged connection for wastewater service made within their respective jurisdictions served by the Fort Worth System, with the first payment being due on October 31, 1987 to include charges incurred through September 30 , 1987 . The charge to the applicable party for such connections shall be based upon the size and type of connection and shall be equal to the charge imposed for the same size and/or type of connection made within the jurisdiction of Fort Worth. The charge for each size and/or type of new connection shall be equal to those as contained in Fort Worth Ordinance No. 9853 , Wastewater System Facility Access Fees, or any amendment thereto. 28 . 2 Fort Worth agrees that all monies remitted to it pursuant to this section will be placed in a separate account to be used exclusively for treatment plant and meter and sampling system general benefit improvements , and will not be used for operation and maintenance expenses or collection system improvements . Such funds and all interest earned thereon will be considered a "contribution" for rate setting purposes only. 41 17- October 12, 1987 28 . 3 TRA and Cities shall provide to Fort Worth such information that relates to the making of new and/or enlarged connections within their respective jurisdictions as may be requested by the Director, including but not limited to building permits, with each quarterly payment required in this section. 28 . 4 Fort Worth will cause to be deposited into the proper revenue account the appropriate charge as provided for in Fort Worth Ordinance No. 9853 , or any amendment thereto or any future ordinance for each new or enlarged connection for wastewater service made within Fort Worth's jurisdiction. 28.5 There is hereby created and established a Wastewater System Access Fee Advisory Committee whose purpose shall be to consult with and advise Fort Worth, through the Wastewater System Advisory Committee, on matters pertaining to the methodology of calculating access fees and amendments to Fort Worth ordinance No. 9853 . Said Committee shall be composed of nine ( 9 ) members , three ( 3 ) of which shall be members of , and appointed by, the Fort Worth City Council . The remaining six (6 ) members shall be members of the City Council of Customers and shall be appointed by the Tarrant County Mayor ' s Council . The Chairman of said committee shall be a Fort Worth member elected by the membership of the committee at its first , annual called meeting. All committee members shall serve terms of one year but may be reappointed by the appropriate bodies for subsequent terms. On an annual basis beginning with the first meeting of the calendar 42 October 12, 1987 year the committee shall consider adjustments to the access fee amounts and the administration of such charges and make recommendations , through the Wastewater System Advisory Committee, for amendments or adjustments to Fort Worth City Ordinance No. 9853 . 29 . Wastewater System Advisory Committee IRA' s governing body shall annually appoint a representative to be a voting member of the Wastewater Advisory Committee which Committee is hereby created and established and whose purpose shall be to consult with and advise Fort Worth, through the Director , on matters pertaining to planning , improvements , grants , rate studies , budgets , administration , and additional wholesale customers, whether same be wholesale customers of TRA or Fort Worth. Said Committee, at its first meeting, shall elect a Chairman , Vice-Chairman and Secretary . The Committee may establish bylaws governing the election of officers , meeting dates and other matters pertinent to its functioning. 30 . Effective Date This contract, together with all terms and conditions and covenants, shall be effective 1, 1987. 31. Miscellaneous 31 . 1 Save and except for Article I of City of Fort Worth City Secretary Contract No. 6300 , this agreement terminates and supersedes that certain contract ( s ) known as City of Fort Worth City Secretary Contract No. 6300, 7955, and 13601 . TRA and Fort 43 October 12, 1987 Worth have entered into other contracts, same being City of Fort Worth Secretary Contract No. 8632 which is unaffected hereby and whose terms and conditions remain in full force and effect. 31. 2 This agreement is subject to all applicable federal and state laws and any applicable permits, ordinances, or amendments adopted pursuant to Section 10 .1 rules , orders and regulations of any state or federal governmental authority 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. 31 . 3 TRA and Cities agree to abide by any changes in this agreement made necessary by any amendment or revision to state or federal regulations. 31 . 4 Upon prior notice by Fort Worth, any duly authorized employee of Fort Worth bearing proper credentials and identifica- tion shall notify any party hereto of need for access to any premises located within the Cities ' limits or served by TRA as may be necessary for the purpose of inspections and observation, measurement, sampling and testing and/or auditing , in accordance with the provisions of this contract . Such party may elect to accompany the Fort Worth representative. To the extent permitted by law, Fort Worth agrees to indemnify TRA and Cities for any damage or injury to person or property caused by the negligence 44 October 12, 1987 of such duly authorized employee while such employee is in the course and scope of his employment. 31.5 In each instance herein where reference is made to a federal or state regulation , it is the intention of the parties that, at any given time, the current federal or state regulation shall apply . If a publication or reference work referred to herein is discontinued or ceases to be the generally accepted work in its field, or if conditions change, or new methods or processes are implemented by Fort Worth , new standards shall be adopted which are in compliance with state and federal laws and any valid rules and regulations pursuant thereto. 31 . 6 Fort Worth must comply with all federal , state and local government requirements to obtain grants and assistance for system design, system construction and studies . TRA and Cities agree to assist Fort Worth in compliance by setting adequate rates , establishing proper user charges and complying with governmental requirements. 31 . 7 Section headings in this agreement are for convenience only and do not purport to accurately or completely describe the con-tents of any section. Such headings are not to be construed as a part of this agreement or any way defining , limiting or amplifying the provisions hereof. 31. 8 Whenever any disputed matter herein is to be specifically determined by the use of an arbitrator, the following procedure is to be followed. The party requesting that the dispute be 45 October 12 , 1987 settled by arbitration shall serve on the other party a request in writing that such 'matter be handled by arbitration . Such party and Director shall mutually agree in writing on the selection of an impartial arbitrator . Such agreement shall be made within ten ( 10 ) days from the date that the request for arbitration is received. If an agreement is not reached on the selection of the impartial arbitrator on or before the tenth (10th) day after the date that notice is received, the Director shall immediately request a list of seven qualified neutral arbitrators from the American Arbitration Association of the Federal Mediation and Conciliation Service, or their successor in function. Such party and Director may mutually agree on one of the seven arbitrators on the list. If they do not agree within five (5 ) working days after the receipt of the list, such party and Director shall alternate striking a name from the list and the name remaining shall be the impartial arbitrator ; provided, however , that if more than one party hereto requests arbitration, such parties shall have only one strike between them on each alternating strike. The parties hereto shall mutually agree on a date for the arbitration hearing. The decision of the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. 46 October 12, 1987 IN WITNESS WHEREOF , the parties hereto have caused this agreement to be executed by their respective officers thereunto duly authorized. ATTEST- CITY OF FORT WORTH By: f � City Secretary City Manager 6 zy� Contract Authorization APPROVED AS ' 0 FORM AND LEGALITY: t/ '7�.y Date:Date / /),+City Attorney ATTEST: CITY F HURST By g c / City Secretary ML yor APP D 0 ._FO D LEGALITY: Date: City Attorney ATTEST: CITY NORTH RICHL D LLS G� By: '�1� 4-.-�,,JCity Secretary Mayor APPROVED AS TO FORM AND LEGALITY: Date: City Attorney 47 October 12, 1987 ATTEST: TRINITY RIVER AUTH RITY OF AS Y By: Secretary, Board of Directors General ger APPROVED AS TO FORM AND LEGALITY: Date: Attorney 48 L ity of .Fort Worth, 411 saes Mayor and Council Communication DATE REFERENCE SUBJECT: I PACE NUMBER NEW WHOLESALE 4-7-87 C-10266 WASTEWATER CONTRACTS I of .3_ Recommendation It is recommended that the City Council authorize the City Manager to execute new wholesale sewer contracts with each of twenty-three (23) individual wholesale sewer customers on the basis of the uniform contract for wholesale sewer service attached hereto and special exceptions explained herein. Background Over the past three years, the City of Fort Worth has been involved actively in developing a uniform service contract for the provision of wholesale sewer service to other local governmental entities within its service area. The objective of developing a new contract has been to'replace the existing sewer contracts with a new uniform contractual agreement that puts all participating customers on equal footing in terms of rates, billing procedures, sampling methods, etc. By means of intensive negotiations between Fort Worth and the wholesale customers during March and April, an acceptable uniform contract for wholesale sewer services has been agreed upon. The Tarrant County Mayors' Council voted on Monday, April 27, 1987, to accept and approve the uniform contractual document. The following customers will be offered these new contracts: 1. Arlington 13. Pantego 2. Benbrook Water & Sewer Authority 14. Richland Hills 3. Burleson 15. River Oaks 4. Crowley 16. Saginaw 5. Edgecliff Village 17. Saginaw Park Utility Company 6. Everman (Blue Mound) 7. Forest Hill 18. Sansom Park 8. Haltom City 19. Tarrant County M.U.D. No. 1 9. Hurst 20. Trinity River Authority 10. Kennedale 21. Westover Hills 11. Lake Worth 22. Westworth Village 12. N. Richland Hills 23. White Settlement It now remains for Fort Worth and the participating wholesale customers to officially execute new contracts. The first step in this process is for the City Council to approve the uniform contract that is the product of the negotiations. Once the uniform contract is approved, however, it still will require unique modifications for several of the wholesale customers before the respective contracts can be executed officially. These modifications, or special exceptions, are required to recognize certain legal differences between the Customers and to acknowledge any special agreements that may be required between Fort Worth and its customers. For example, nine (9) wholesale customers will have their respective contributions "bought back" by Fort Worth; this will require special contract language. A summary of the various exceptions to the uniform contract is detailed below: DATE NUMBER REFERENCE SUBJECT: NEW WHOLESALE PAGE 4-7-87 C-10266 WASTEWATER CONTRACTS _.2 Special Condition Wholesale Customer Affected 1. The uniform contract can be used unchanged. Kennedale Pantego Richland Hills Sansom Park Westworth Village 2. The price and terms for the contribution Arlington buy-back arrangement must be specified. Benbrook Water & Sewer Authority Burleson Crowley Haltom City Hurst Lake Worth North Richland Hills Saginaw Tarrant County M.U.D. No. 1 3. Contract must recognize that Customer Benbrook Water & Sewer Authority cannot pass ordinances, or grant easements, Saginaw Park Utility Company but must nevertheless insure that (Blue Mound) Customer can abide by all terms of Tarrant County M.U.D. No. 1 the contract within its service area. Trinity River Authority 4. Certain sections of previous contracts Arlington other than the original wholesale contract Burleson must remain in force. Crowley Edgecliff Village Forest Hill Saginaw Trinity River Authority White Settlement 5. Agreement must be a "three party" Saginaw Park Utility Company contract between Fort Worth, private utility (Blue Mound) (Customer) and city served by the private utility. 6. Contract must allow for situations where Arlington Customer may be required to serve Benbrook Water & Sewer Authority Fort Worth customers, and must Burleson specify any special billing credit/ Everman debit arrangements. Forest Hill Lake Worth River Oaks Trinity River Authority DATE REFERENCE SUBJECT: PAGE NUMBER NEW WHOLESALE 3 4-7-87 C-10266 WASTEWATER CONTRACTS Special Condition Wholesale Customer*Affected 7. Contract must require Fort Worth to Tarrant County MUD No. I inspect all new lines constructed by Customer and Fort Worth must insure that lines are sized to serve entire drainage area. 8. Contract must specify whether Fort Worth Westover Hills or Customer has responsibility to operate and maintain Customer system. The twenty-three (23) wholesale sewer contracts are drafted according to the approved uniform contract and these various exceptions. After approval of this M&C, the final contracts incorporating the uniform agreement and any exceptions will be sent to each participating wholesale customer. The deadline for executing the contract will be the same as the effective date of the contract, June 1, 1987. In a transmittal letter from the Mayor, each customer will be requested to return signed contracts to Fort Worth no later than June 1, 1987. The first billing for volume and strength charges under the new contract will be on July 1, 1987. The first accrued system access fee payment from each participating customer will be due on October 31, 1987, for all new or enlarged sewer connections added between June 1st and September 30th, 1987 RAM:hl AU'",PIRID VED RY SUBMITTED FOR T9_Ej CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY OFFICE BY: L APPROVED ORIGINATING I-- OTHER (DESCRIBE) DEPARTMENT HEAD: Richard Sawey CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT: R. Sawey 8202 DATE