HomeMy WebLinkAboutContract 27958 ORIGINAL
CONTRACT FOR WATER SERVICE BETWEEN
THE CITY OF FORT WORTH, TEXAS, AND
CITY OF SOUTHLAKE, TEXAS CITY
STATE OF TEXAS § CONTRACT NO
COUNTY OF TARRANT §
This contract and agreement is made and entered into this q,P-1 day of
2002, by and between the City of Fort Worth, a municipal corporation
located in Tarrant, and Denton Counties, Texas, acting by and through Marc Oft,
its duly authorized Assistant City Manager, hereinafter called "Fort Worth," and the
City of Southlake, located in Tarrant County, Texas, acting by and through Billy
Campbell, its duly authorized City Manager, hereinafter called "Customer."
WHEREAS, Fort Worth has provided at its own expense, and now owns,
operates and maintains facilities for processing and distributing a large supply of
surface water, and at the present time is qualified to furnish and deliver treated
water, both within and without the corporate boundaries of Fort Worth; and,
WHEREAS, Customer has provided at its own expense and now owns,
operates and maintains a distribution system; and furnishes water service to the
customers within its boundaries, and,
WHEREAS, Customer does not have and cannot provide economically and
within a reasonable period of time, any other source of water supply, fully
adequate to meet its present and/or future needs or potential emergency needs;
and,
WHEREAS, it is deemed to be in the best interest of both Fort Worth and
Customer that said parties do enter into a mutually satisfactory agreement by
means of which Customer may obtain from Fort Worth a supply of treated water at
a reasonable rate; and,
WHEREAS, by the execution of this contract, neither Fort Worth nor
Customer will surrender any of its rights to the ownership and operation of its
present water production and distribution facilities; and,
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WHEREAS, Customer desires to continue to contract for the purchase of
treated water and Fort Worth desires to continue to sell treated water to Customer;
and
WHEREAS, Section 402.001 and 402.075 of the Texas Local Government
Code, and Chapter 791 of the Texas Government Code authorize Fort Worth and
Customer to enter into this agreement;
NOW, THEREFORE, KNOW ALL BY THESE PRESENTS:
That, for and in consideration of the mutual covenants, promises and
agreements contained herein, Fort Worth and Customer do hereby covenant and
agree as follows:
1
Definitions
1.1 "Annual Consumption" is the total quantity of water purchased under
the terms of this contract by Customer during the fiscal year of Fort Worth as
determined by the difference in the annual October meter readings.
1.2 "Average Daily Use" is the total Annual Consumption divided by 365
days.
1.3 "Treatment, Pumping and Transmission Charge" is that part of the
rate charged for 1,000 gallons used, regardless of rate of use. This charge shall
include the maintenance and operation costs, and the capital facilities cost on the
part of the production and transmission system related to annual use.
1.4 "Customer System" is all necessary Customer mains and distribution
facilities on the Customers side of the meter from and beyond the point of delivery
of treated water by Fort Worth.
1.5 "Delivery Facility" is any facility necessary for the transmission of
water from the Fort Worth System that is on the Customer's side of the point of
delivery that is constructed specifically to allow Fort Worth to serve Customer.
1.6 "Director' is the Director of the City of Fort Worth Water Department
or his designee.
17 "Fiscal Year" is the fiscal year of Fort Worth from October I through
September 30.
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WAT ER CONTRACT
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1.8 "Fort Worth System" is the Fort Worth water treatment and
distribution system.
1.9 "General Benefit Facilities" are water facilities that provide utility
services and benefits common to all customers which include water treatment
facilities, metering facilities, control systems and appurtenances, storage facilities,
pumping facilities and all major mains that are sixteen inches (16") and greater in
diameter.
1.10 "MGD" is million gallons per day.
1.11 "Maximum Day Demand" is the maximum quantity of water used by
Customer during one calendar day of the Fiscal Year of Fort Worth.
1.12 "Maximum Hour Demand" or "Peak Hour Rate" is the quantity of
water used by Customer during the one hour of the year that more water passed
through the meter or meters serving the Customer than during any other hour of
the Fiscal Year of Fort Worth multiplied by 24 hours.
1.13 "Rate of Use Charge" is the fixed charge determined for the
Maximum Day Demand in excess of Average Daily Use and the Maximum Hour
Demand in excess of Maximum Day Demand rates of use.
1.14 "Raw Water Charge" represents the rate for 1,000 gallons charged
by the Tarrant County Water Control and Improvement District No. 1 to Fort Worth
for raw water to be sold to the Customer plus eight percent (8%) of said rate,
representing Fort Worth system losses of four percent (4%), and the street rental
charge of four percent (4%).
1.15 "Wholesale System Access Fee" is a capital contribution funding or
recouping the costs of General Benefit Facilities capital improvements or General
Benefit Facilities facility expansions necessitated by and attributable to new
development.
1.16 "System Cost" is the operating expense and capital related cost
incurred by Fort Worth pursuant to the provision of water treatment and
transmission to the wholesale class of water customers. Such costs are to be
collected by Fort Worth as a component of the annual cost of providing wholesale
water seniice.
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WATER CONTRACT
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1.17 "Volume Charge" represents the combined treatment, pumping and
transmission charge and the raw water charge in effect for the current Fiscal Year.
1.18 "Capital improvements" means any of the following facilities which
provide utility services and benefits common to all customers and that have a life
expectancy of three or more years, whether such capital improvements are located
within the jurisdictional limits of Fort Worth or Customer water treatment facilities,
metering facilities, control systems and appurtenances, storage facilities, pumping
facilities and all mains that are sixteen inches (16") and greater in diameter.
1.19 "Facility Expansion" is the expansion of the capacity of an existing
facility that serves the same function as an otherwise necessary new capital
improvement, in order that the existing facility may serve new development. The
term does not include the repair, maintenance, modernization, or an expansion of
an existing facility to better serve existing development.
2.
Terms and Conditions
2.1 Fort Worth agrees to furnish and sell to Customer treated water of
potable quality meeting all applicable governmental standards, delivered under the
normal operating pressure prevailing in the Fort Worth System at the point or
points of delivery mutually agreed upon. Customer agrees to accept delivery
under the conditions of this agreement and to pay for the same in accordance with
the terms herein.
2.2 In accordance with the terms of Fort Worth City Secretary Contract
No. 12720 between 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.
2.3 If Fort Worth shall ration the use of water throughout its corporate
limits or issue water conservation measures or restrict the use of water in any way,
Customer agrees to institute and apply the same rationing, conservation
measures, or restrictions to the use of water by the customers of Customer for so
long as any part of the total water supply of the Customer is being furnished by
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WATER CONTRACT
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Fort Worth. Fort Worth agrees to consult with the Water System Advisory
Committee, in the development of any conservation or rationing plans that may be
necessary to address operational constraints whether or not same are required by
any state or federal regulatory agency, or are deemed advisable by the Water
System Advisory Committee to manage long term System Costs, except where
emergency conditions may dictate short-term conservation or rationing
requirements as may be determined by the Director to meet all necessary water
demands.
3.
Location and Maintenance of Measuring Devices
3.1 All water furnished under this agreement by Fort Worth shall be
measured by one or more suitable meters equipped with continuous flow,
chart-recording devices, and telemetering equipment connected with the Fort
Worth control center. All meters, recording devices, telemetering equipment and
appurtenances shall be approved and installed by Fort Worth. Customer shall be
responsible for contracting with an engineering firm to design and prepare
construction documents for the installation of any meter for a new point of
connection that may be required during the term hereof. Equipment included in
the design shall meet Fort Worth standards. Customer shall pay for the meter
vault and all metering equipment, including telemetering equipment to the Fort
Worth control center, and appurtenances, plus the installation cost thereof.
Telemetry transmitting to Southlake may be installed at the time of construction at
the expense of Southlake and not as a System cost. Fort Worth shall pay all costs
associated with the operation and maintenance of said equipment and shall pay
for the replacement of said equipment as necessary. Such costs, as well as
charges for the telelink line and microwave transmitter and the power to operate
same, shall be a System Cost,
3.2 The point or points of delivery of treated water by Fort Worth shall be
the meter vault connection to Customers side of the meter, and all necessary
mains and distribution facilities from and beyond said point shall be the
responsibility of Customer. The location of each meter shalll be mutualiy agreed
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WATER CONTRACT
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upon in writing by and between the parties hereto, and the meter or meters shall
not be moved or relocated except by mutual consent in writing by the parties
hereto.
3.3 For the cost of each additional Customer connection to the Fort
Worth System, Customer will pay an amount not less than that which would be
paid by a developer to Fort Worth under its then existing connection and line
extension policy, or an amount agreed upon mutually by Fort Worth, Customer,
and the Water System Advisory Committee.
3.4 Either party, at its own expense, may install a check meter to check
or measure the volume of water passing 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 master meter being tested.
3.5 As of the date of the execution of this contract, Customers one point
of delivery from the Fort Worth System is the meter located at the North Beach
Water Storage Tank, hereinafter referred to as "Southlake Meter 1". Customer
shall convey or cause to have conveyed to Fort Worth Southlake Meter 1 and the
meter vault, together with rights of ingress and egress for reading, operation, and
maintenance purposes. After such conveyance, Fort Worth shall operate and
maintain Southlake Meter 1 and meter vault as a System Cost. As of the date of
the execution of this contract, no new metering and telemetry equipment is
required at Southlake Meter No. 1.
4.
Meters
4.1 Fort Worth shall routinely test for accuracy, and service and calibrate
if necessary, the mastel, meter(s) no less than once during each twelve (12) month
period. Copies of the results of such calibration and all related information shall be
provided to Customer. Customer shall have access to the metering 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
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WATER CONTRACT
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representatives of Customer and Fort Worth, if so requested by Customer.
Notification of any proposed test shall be provided to the Customer at least
seventy-two (72) hours prior to such test being conducted and Customer may
observe such test, if so desired.
4.2 Upon any calibration, if it is determined that the accuracy envelope of
such meter is found to be lower than ninety-five percent (95%) or higher than one
hundred five percent (105%) 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 (112) of the time elapsed since the date of the last
calibration, but in no event further back than a period of six (6) months. All meters
will be properly sealed, and the seals shall not be broken unless representatives of
both parties have been notified and given a reasonable opportunity to be present.
4.3 If any meter used to determine the flow of treated water to Customer
is out of service or out of repair so that the amount of water metered cannot be
ascertained or computed from the reading thereof, the water delivered during the
period such meter is out of service or out of repair shall be estimated and agreed
upon by the parties hereto upon the basis of the best data available. 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 water volume delivered,
agreement on the flow volume will be determined by third party arbitration, as
hereinafter provided,
5.
Meter Reading and Billing
5.1 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 properly, and, upon such notice-, repairs to such meter shall be made
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WATER CONTRACT
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promptly.
52 All readings of meters will be entered in ink upon bound journals
maintained by Fort Worth. Customer shall have access to such records during
reasonable business hours and shall be furnished with monthly readings for each
point of delivery metering facility.
5.3 If Customer has more than one point of connection to the Fort
Worth System the sum of all meter readings and rates of flow shall be used for
the purpose of calculating the water Volume Charge and the Rate of Use
Charge.
5.4 A review of water usage amounts by Customer for the past twelve
(12) months shall be made during the presentation of the October bill each year.
The October statements shall be prepared so as to reflect any and all Rates of
Use Charges that have not been previously billed and paid. A copy of the rate of
flow charts or other records showing the Maximum Day Demand and the Peak
Hour Rate of the year shall be furnished to Customer with the October billing.
5.5 Bills for water service shall be rendered to Customer monthly by Fort
Worth. All such bills shall be due and payable by Customer not more than thirty
(30) days from the billing date. The bills will show current charges, as well as
past-due charges, if any. 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.
5.6 If Customer disputes a bill and is unable to resolve the difference
informally, Customer shall notify the Director in writing. If the Director and
Customer are unable to resolve the disputed bill, agreement on the bill will be
determined by third party arbitration, as hereinafter provided. Dispute of a bill shall
not be grounds for non-payment. In the event a payment is not paid as specified
in this agreement, a finance charge of ten percent (10%) per annum will be
calculated from the date that the payment was required to be made. In the event
that a billing adjustment is agreed upon or established by arbitration the amount
found to be incorrect will be credited to Customer's account together with an
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WATER CONTRACT
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interest charge of ten percent (10%) per annum calculated from the date payment
of the disputed bill was received.
6.
Rates
6.1 Method of Rate Determination
6.1.1 Wholesale water rates will be based upon a cost-of-service rate
study performed by independent utility rate consultants as provided for in Section
6.1.4 hereof. The independent utility rate consultant shall be selected by the
Director from a list of five qualified firms submitted to the Director by the Water
System Advisory Committee, as such is defined in Section 15 of this Agreement.
The cost of any such study shall 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.
6.1.2 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, 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. The rate base shall consist of all
allocated capital facilities, net of depreciation and contributions, and shall include
construction work in progress, a reasonable allowance for working capital, and a
reasonable inventory of materials and supplies necessary for the efficient
operation of the Fort Worth System. Records of the original cost and the
accumulated depreciation of all capital facilities shall be maintained in the Fort
Worth Fixed Asset Tracking System. These records shall be available for
inspection at the Fort Worth Water Department during reasonable business hours
upon request by Customer.
6.1.3 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
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WATER CONTRACT
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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%).
6.1.4 For the Fiscal Years beginning October 1, 2002, 2005 and 2008, a
detailed wholesale water rate study will be performed by an independent utility rate
consultant selected by the Director in conformance with Section 6.1.1 herein. The
rate consultant so selected will utilize the same methodology used in the
immediate previous rate study. In the interim Fiscal Years between detailed rate
studies, Fort Worth will adjust wholesale water rates annually, using the same
methodology as the last detailed rate study, and will utilize the actual operating
data for the twelve month period ending September 30th of the prior year, adjusted
for all known and measurable changes in cost data that may have occurred since
the last audited financial statement. Such adjustments should allow for year-end
trending and the spreading of non-recurring expenses over an appropriate benefit
period.
6.1.5 Changes in the wholesale water rate methodology will be allowed if
recommended by a majority vote of the Water System Advisory Committee and
approved by the Fort Worth City Council. For purposes of this section, a majority is
defined as any combination of Fort Worth wholesale customers that took more
than fifty percent (50%) of the wholesale water delivered by Fort Worth during the
immediate past Fiscal Year.
6.2 Rates to be Used
6.2.1 The charges for the initial period of this contract shall be from the
date of its execution through September 30, 2002, and have been computed as
follows:
The Treatment, Pumping and Transmission Charge shall be $0.4408 per
1,000 gallons withdrawn by Customer.
The raw water charge shall be $0.6573 per 1,000 gallons for Customers
inside the Tarrant Regional Water District and $0.7189 for Customer's
outside the District.
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WATER CONTRACT
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The annual charge per MGD of Maximum Day Demand in excess of
Average Daily Use shall be $79,373 per MGD, and Maximum Hour Demand
in excess of the Maximum Day Demand shall be $12,993 per MGD.
6.2.2 The amount charged for raw water shall be increased or decreased
when the raw water cost paid by Fort Worth for water available for treatment and
sale to Customer is increased or decreased as determined by the Tarrant County
Water Control and Improvement District No. 1 in accordance with Fort Worth City
Secretary Contract No. 12720, and adjusted for system losses and street rental.
6.2.3 The parties hereto agree that services obtained pursuant to this
contract are essential and necessary to the operation of Customers waterworks
facilities and that all payments made by Customer hereunder shall constitute
reasonable and necessary operating expenses of Customers waterworks and
wastewater systems within the meaning of Article 1113, Vernon's Annotated Texas
Statutes, and the provisions of any and all ordinances of Customer authorizing the
issuance of any revenue bonds of Customer which are payable from its
waterworks and wastewater systems.
6.2.4 Customer agrees, throughout the term of this agreement, to fix and
collect such rates and charges for water 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 the
ordinances or 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.
6.2.6 Customer understands that Fort Worth City Council has the right to
annually revise the rates charged to cover all reasonable, actual, and expected
costs. Revision of rates shall be pursuant to the provisions set forth in this
contract. Fort Worth shall give Customer a minimum of six (6) months notice of
intent to revise rates. Fort Worth will furnish members of the Water Advisory
Committee a draft copy of the cost-of-service study of the proposed rates sixty (60)
SOUTHLAKE WHOLESN E
WATER CON TPACT
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days prior to Fort Worth submitting a rate increase request to its City Council.
Within thirty (30) days of receiving the draft study, the Committee will submit its
written comments on the draft study to Fort Worth, and Fort Worth will respond to
these comments as soon thereafter as possible. If the Committee has not
provided its written comments within said period, the Committee is deemed to
have accepted the proposed rates contained in the draft study, and Customer
agrees that it will be bound by the rates as approved by the Fort Worth City
Council. The rates approved by the Fort Worth City Council shall be the rates to be
used in this contract for the succeeding Fiscal Year.
7.
Payment for Water
Payment of charges to Fort Worth for water used by Customer shall be
made as follows:
7.1 The annual payment will be the charges computed based on all
water delivered by Fort Worth to Customer during the current Fiscal Year using
rates provided herein. For purposes of calculating the annual payment, the current
year will be the Fiscal Year during which the water usage occurred. However, the
minimum annual payment, will be the greater of the following:
1) the charges calculated by applying the current Volume
Charge to Annual Consumption, the appropriate meter reading and billing charge,
and the Rate of Use Charge for the current Fiscal Year; or
2) the current Fiscal year Volume Charge, the appropriate meter
reading and billing charge, and the current Fiscal Year Rate of Use Charge applied
to the average of the Maximum Day Demand above Average Daily Use and the
average of the Maximum Hour Demand above Maximum Day Demand for the
most recently completed three Fiscal Years, The most recently completed three
Fiscal Years will include the current Fiscal Year-, or
3) Twelve thousand dollars ($12,000).
7.2 The rate at which Customer withdraws water from the Fort Worth
System shall be regulated by rate-of-flow controllers, pumps, or other approved
methods,. The rate of withdrawal shall be controlled so that the maximum rate
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WATER CONTRACT
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shall not exceed 1.35 times the Maximum Day Demand experienced during the
previous year unless Customer has notified the Director in writing at least (6)
months prior to the date of the anticipated increase in the Maximum Day Demand.
The Director shall be furnished with all pertinent information regarding the
proposed increase in maximum rate of withdrawal. The Director may waive all
notice requirements if, in his sole opinion, said notice is not necessary to protect
the interest of Fort Worth.
7.3 Except as provided for in section 8 below, the monthly payment will
be the greater of either one thousand dollars ($1,000) or a sum equal to the
Volume Charge for the actual volume of water taken plus one-twelfth (1/12) of
the sum of the estimated Rate of Use Charges and the appropriate Fiscal Year
charges for meter reading and billing. For purposes of estimating the rate of use
payments, the current Fiscal Year Rate of Use Charges will be applied to the
prior Fiscal Years Maximum Day Demand, Maximum Hour Demand and
Average Daily Use.
7.4 The total annual payment for water by Customer shall be related to
the annual and peak volumes used by Customer during the Fiscal Year, as
determined by meters, flow recording devices or other approved methods, subject
to the annual payment provisions set forth above. The October bill for September
usage shall reflect any necessary adjustment to the annual payment due to actual
rates of withdrawal from the Fort Worth System.
Example:
The rate used in the example is based on Customer not being in Tarrant
Regional Water District and water being withdrawn at one metering station, and
the Volume Charge and Rate of Use Charges in effect until September 30, 2001.
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WATER CONT RAC?
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Monthly
Usage Volume Rate of Use Service
Month Consumption Charges Charges Charges
Total
Oct 1,000,000 $1,159.70 $1,090.90 $25 $2,275.60
Nov 1,000,000 $1,159.70 $1,090.90 $25 $2,275.60
Dec 1,000,000 $1,159.70 $1,090.90 $25 $2,275.60
Jan 1,000,000 $1,159.70 $1,090.90 $25 $2,275.60
Feb 1,000,000 $1,159.70 $1,090.90 $25 $2,275.60
Mar 2,000,000 $2,319.40 $1,090.90 $25 $3,435.30
Apr 3,000,000 $3,479.10 $1,090.90 $25 $4,595.00
May 3,000,000 $3,479.10 $1,090.90 $25 $4,595.00
Jun 3,000,000 $3,479.10 $1,090.90 $25 $4,595.00
Jul 3,000,000 $3,479.10 $1,090.90 $25 $4,595.00
Aug 4,000,000 $4,638.80 $1,090.90 $25 $5,754.70.
23,000,000 $26,673.10 $11,999.90 $275 $38,948.00
Sep 3,000,000 3,479.10 3,773.06 $25 7,277.16
26,000,000 $30,152.20 $15,772.96 $300 $46,225.16
Prior Year Rate of Use Calculation
(For use in estimated monthly Rate of Use Charge)
Average Daily Use for the prior year = 60,000 gallons
Maximum Day Demand for the prior year = 175,000 gallons
Maximum Hour Demand for the prior year = 480,000 gallons
Maximum Day Demand above Average Daily Use = 115,000 gallons
Maximum Hour Demand above Maximum Day Demand = 305,000 gallons
Monthly Excess Maximum Day and Hour Payment Calculation
.115 mg X $79,373 $ 9,127.90 (Maximum day)
.305 mg X $12,993 $ 3,962.86 (Maximum hour)
Total $13,090.76
Monthly Rate of Use Payment (Total Divided by 12)= $1,090.90
A. The annual payment calculation will be computed on the basis of
the current year maximum usage rates or the average of the
maximum usage rates of the most recent three Fiscal Years,
whichever is greater, In Example A. the current year exceeds the
average of the most recent three Fiscal Years,
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WATER CONTRACT
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Current Year Rate of Use Calculation
Current Year Rate Of Use Calculation
Average Daily Use for the year = 70,312 gallons
Maximum Day Demand for the current year = 215,000 gallons
Maximum Hour Demand for the current year = 545,000 gallons
Maximum Day Demand above Average Daily Use = 144,683 gallons
Maximum Hour Demand above Maximum Day Demand = 330,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 2000 1999
Maximum Day Demand
above Average Daily Use 144,688 115,000 128,766
Maximum Hour Demand
above Maximum Day Demand 330,000 305,000 320,000
Three year average of Maximum Day Demand
above Average Daily Use 129,485
Three year average of Maximum Hour Demand
above Maximum Day Demand 318,333
Customer's annual payment will be based on the greater of the current year
maximum usage rates or the average of the maximum usage rates of the most
recent three Fiscal Years.
Annual Payment Calculation FY '01 Rates
(Based on Current Year Data)
26,000 X $ 1.1597 $30,152.20
.1447 mg X $79,373 11,485.27
.3300 mg X $12,993 4,287.69
12 X $25 X 1 300.00
Total Annual Payment $46,225.16
Previous Billings for
October through August Usage 38,948.00
October Billing for September
Usage $ 7,277.16
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WATER CONTRACT
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B. Example of computation when the average of the maximum usage rates of
the most recent three Fiscal Years is greater than the current Fiscal Year rate of
use:
Current Year Rate of Use Calculation
Average Daily Use for the year = 70,312 gallons
Maximum Day Demand for the current year = 215,000 gallons
Maximum Hour Demand for the current year = 545,000 gallons
Maximum Day Demand above Average Daily Use = 144,688 gallons
Maximum Hour Demand above Maximum Day Demand = 330,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 2000 1999
Maximum Day Demand
above Average Daily Use 144,688 115,000 178,234
Maximum Hour Demand
above Maximum Day Demand 330,000 305,000 361,000
Three year average of Maximum Day Demand
above Average Daily Use 145,974
Three year average of Maximum Hour Demand
above Maximum Day Demand 332,000
Customer's annual payment will be based on the greater of the
current Fiscal Year maximum usage rates or the average of the
maximum usage rates of the most recent three Fiscal Years.
Annual Payment Calculation FY '01 Rates
(Based on average of most recent three years)
26,000 X $1.1597 $30,152.20
.1460 mg X $79,373 11,588.46
.3320 mg X $12,993 4,313.68
12X $25 X1 300.00
Total Annual Payment $46,354.34
Previous Billings for
October through August Usage 38,948.00
October Billing for September
Usage $ 7,406.34
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E
WATER CONTRACT
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8.
Effective date of contract
8.1 The effective date of this contract is the date of execution.
9.
Life of contract
9.1 This contract shall expire on December 31, 2010, and may be
renewed on terms mutually agreeable to the parties hereto.
10.
Rights-of-way
10.1 Customer shall grant, without charge to Fort Worth, such easements
and rights-of-way along public highways or other property owned by Customer, as
requested by Fort Worth, in order to construct or maintain mains or facilities within
the service area of Customer to provide water to Customer and to other areas.
Upon notice from Customer and at Fort Worth's expense, Fort Worth will move
such water mains or facilities located in such street rights-of-way, or other property
owned by Customer when reasonably necessary to the performance of essential
governmental duties by Customer. Fort Worth shall grant, without charge to
Customer, such easements and rights-of-way along public highways or other
property owned by Fort Worth, as requested by Customer, in order to construct
and maintain water mains or facilities within Fort Worth to provide water to
Customer. Upon notice from Fort Worth and at Customers expense, Customer
will move such water mains or facilities when located in such street rights-of-way or
other property owned by Fort Worth when reasonably necessary to 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
neither party hereto will be required to restore the others property to a condition
exceeding its original condition, unless otherwise mutually agreed in writing. Fort
Worth and Customer agree to coordinate the location of the mains and/or facilities
in the others easements and rights-of-way in order 10 prevent further conflicts
insofar as is reasonably practicable.
SOUTHLAKE WHOLESALE
WATER CONTRACT
Pan. 1 7 of"
TEXAS NATURAL RESOURCE CONSERVATION COMMISSION ("TNRCC")
DEPARTMENT APPROVAL
11.1 The Customer System shall be approved by the TNRCC during the
life of this contract. If at any time the Customer System is not approved by the
TNRCC, or if Customer does not have an active cross-connection control program,
there shall not be any direct physical connection between the Fort Worth System
and the Customer System unless an approved backflow prevention device has
been provided and installed and this installation has been approved by the
TNRCC. All expenses to provide and install backflow prevention device(s) will be
borne by Customer.
12.
Resale of Water
12.1 Customer agrees that it will not share facilities for water system use
with any other governmental or corporate entity outside of the corporate limits of
Customer, commonly known and referred to as its service area, without the
express written consent of Fort Worth, which consent shall not be unreasonably
withheld. Fort Worth neither recognizes nor approves any existing agreements
entered into by Customer with other governmental or corporate entities outside its
service area.
12.2 Only those existing connections outside of the Customers Water
System that are shown in Exhibit "A" attached hereto, shall be permitted to
continue. Customer agrees that it will not enter into any resale or transportation
agreement other than as a part of its normal offering and supply of water to
existing and future subscribers to its water system without the recommendation of
the Water System Advisory committee and express written consent of Fort Worth.
12.3 Customer agrees to provide Fort Worth a map of its service area,
together with all water service agreements it has with other jurisdictions.
Sot HLAKE WHOLESALE
WATER CONTRACT
Page 18 of 32
13.
Sanitary Sewer Facilities
13.1 The Customer agrees that it will require all of its customers, who are
provided water from the Fort Worth system, to have adequate sanitary sewage
facilities meeting state health department requirements.
14.
Additional Parties
14.1 Fort Worth will use its best efforts to provide an adequate water
supply for all of its customers. Prior to the approval of additional wholesale
customers, Fort Worth will provide reasonable assurances that the projected
five-year water demands of the then-existing wholesale customers so served and
the proposed additional customer can be adequately fulfilled. Fort Worth will
consult with the Water System Advisory Committee prior to contracting with
additional parties.
15.
Water System Advisory Committee
15.1 Customer's governing body shall annually appoint a representative to
be a voting member of the Water System Advisory Committee, whose purpose
shall be to consult with and advise Fort Worth, through the Director, on matters
pertaining to conservation, wholesale planning, improvements, grants, wholesale
rate studies, administration, budgets, and additional wholesale customers, whether
same be wholesale customers of Customer or Fort Worth. The Committee may
establish bylaws governing the election of officers, meeting dates and other
matters pertinent to its functioning.
16.
System Access Fees
16,1 On a quarterly basis, Customer agrees to pay to Fort Worth a
Wholesale System Access Fee for each new or enlarged connection for water
service made within the quarter within Customer's service area served by the
General Benefit Facilities of the Fort Worth Water System, The Wholesale
System Access Fee to the Customer for each such connection shall be based
SOUTHLAKE WHOLESALE
WATER CONTRACT
Page 19 of 32
upon the size of water meter and shall be equal to the Wholesale System Access
Fee collected for the same size water meter made within the jurisdiction of Fort
Worth. The calculation of said Wholesale System Access Fee shall be consistent
with all applicable state and federal regulations, including Chapter 395, Texas
Local Government Code, or any amendment or successor statute thereto, and
shall include only those costs associated with General Benefit Facilities
expansions and capital improvements necessary to provide service to new
development. Nothing within this contract shall be deemed to prevent either Fort
Worth or Customer from charging their own retail customers impact fees in excess
of the Wholesale System Access Fee provided for herein.
16.2 Fort Worth agrees that all monies remitted to it pursuant to this
Section will be placed in a separate interest bearing account to pay only for the
cost of constructing capital improvements or facility expansions as permitted by
Chapter 395, Texas Local Government Code, or any amendment thereto, or by
any successor statute thereto, and will not be used for operation and maintenance
expenses. Once expended, such funds and all interest earned thereon will be
considered a "contribution" for rate setting purposes only.
16.3 Customer shall provide to Fort Worth such information that relates to
the making of new and/or enlarged connections within its jurisdiction as may be
requested by the Director, including but not limited to building permits, with each
quarterly payment required in this section.
16.4 Neither Fort Worth nor Customer shall waive any impact fee due
from new or enlarged connections to its respective system within its jurisdiction.
However, either Fort Worth or Customer may pay such impact fee into the fund
required for paying for the capital improvements.
16.5 The Water System Advisory Committee created pursuant to Section
15 hereof shall select five (5) of its members to a subcommittee to be known as
the Customer Impact Fee Committee (CIFC). Every three years, beginning June,
1992, Fort Worth will update the land use assumptions and capital improvements
plan upon which the Wholesale System Access Fees are based. In June 1992
and every three years thereafter, the CIFC shall submit a list of five qualified
SOUTH LAKE WHOLESALE
WATER CONTRACT
Page 20 of 32
engineers or planning consultants to the Director. The Director shall select a
consultant from such list to assist Fort Worth in developing land use assumptions,
identifying capital improvements, and formulating capital improvement plans and
access fees. The consultant shall be responsible to Fort Worth and its citizen's
advisory committee, but shall also report to the CIFC. The cost of the consultant
shall be deemed a System Cost. In the event the CIFC fails to submit a list of five
consultants to Fort Worth, Fort Worth shall select a consultant to perform in the
manner described herein.
16.6 Fort Worth agrees that only those capital improvements as defined in
section 1.18 hereof shall be included in the capital improvements plan for the
purpose of determining Wholesale System Access Fees; provided however, Fort
Worth may include other capital improvements for the purpose of determining
impact fees to its own retail customers. Fort Worth shall not be required to include
all capital improvements in any capital improvements plan. The CIFC shall be
responsible for working with Fort Worth and its consultant to determine the capital
improvements to be included in the calculation of any Wholesale System Access
Fees. The CIFC shall recommend to the Water System Advisory Committee
which capital improvements should be included in the calculation of any Wholesale
System Access Fees. The CIFC shall also meet with Fort Worth's citizen advisory
committee as such citizen's advisory committee reviews and considers land use
assumptions, the capital improvements plan and impact fees.
16.7 Prior to the adoption of any land use assumptions, capital
improvements, or access fees by Fort Worth, the CIFC shall be furnished a copy
of the proposed land use assumptions, capital improvement plan or access fees at
least 30 days prior to any scheduled hearing thereon. Any revised access fee
adopted pursuant to such updated capital improvements plan shall not take effect
for a period of at least ninety (90) days after adoption by Fort Worth.
16.8 Each year Fort Worth shall provide to the Wholesale Water Advisory
Committee an audited financial statement of the Fort Worth Water Department's
records.
SOUTHLAKE WHOLESALE
WATER CONTRACT
rD---",I _f,2o
16.9 Fort Worth and Customer agree that the methodology for the
calculation of Wholesale System Access Fees required herein shall be consistent
with the methodology prescribed by Chapter 395, Texas Local Government Code,
or any amendment or successor statute thereto. In the event that such statutory
methodology is amended or replaced by a new statute, the Wholesale Water
Advisory Committee may engage legal counsel to work with Fort Worth to propose
amendments to this contract to conform it to such amendment or new statute. The
reasonable cost of such legal counsel shall be a System Cost.
17.
Termination
17.1 This agreement may be terminated in whole or in part by the mutual
consent of Customer 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 shall be cause for
termination of this agreement by either party in the manner set forth in this
paragraph. Fort Worth shall deliver to Customer ninety (90) days prior written
notice of its intention to so terminate this agreement if Customer fails to cure or
adjust such material breach, including in such notice a reasonable description of
the breach. If within said ninety (90) days Customer shall fail or refuse to cure
such material breach to the satisfaction of Fort Worth, then and in such event, Fort
Worth shall have the right, with six months additional advance written notice to
Customer 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 Customer hereunder shall cease and terminate and
Customer 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 Customer in
writing immediately upon acceptance of the cure of any breach.
SOUTHLAKE WHOLESALE
WATER CONTRACT
17.2 In the event Fort Worth shall ration the use of water throughout its
corporate limits or issue water conservation measures or restrict the use of water
in any way as provided for in Section 2.3 hereof, and Customer fails or refuses to
institute and apply the same rationing, conservation, or restrictions to the use of
the water by the customers of Customer, Customer shall be in breach of this
agreement. The notice provisions as contained in Section 17.1 hereof shall not
apply and the Director, in his sole discretion, shall, in writing, set such time in which
the Customer shall cure said breach. if Customer fails or refuses to cure said
breach within the stated time, then and in such event, after six (6) months written
notice provided to Customer and without any liability whatsoever on the part of Fort
Worth, Fort Worth shall have the right to declare this agreement terminated. In
event of termination of this agreement, all rights, powers, and privileges of
Customer hereunder shall cease and Customer 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.
17.3 Irrespective of whether or not a breach hereof is a material breach or
a non-material breach, and irrespective of any cure of such breach, a second
breach of the same nature violating any term or condition herein shall entitle Fort
Worth, after six (6) months written notice provided to Customer and without any
liability whatsoever on the part of Fort Worth, to declare this agreement
terminated. In event of termination of this agreement, all rights, powers, and
privileges of Customer hereunder shall cease and Customer 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,
17.4 The following breach, default or failure to perform a duty or obligation
shall be considered to be a material breach:
a. Failure to adopt and enforce any resolution or conservation
measure or rationing required to be adopted and enforced
herein;
SOUTHLAKE WHOLESALE
WATER CONTRACT
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 3.2 hereof;
d. Failure to correct any potentially hazardous connection in
accordance with Section 11 after reasonable written notice;
e. Failure to provide Fort Worth ingress and egress for purposes
of operation and maintenance of any metering facility;
f. Failure to provide Fort Worth rights-of-way as required herein.
17.5 In the event of any other non-material breach, default or failure to
perform duties under this agreement, Fort Worth shall deliver to Customer sixty
(60) days advance written notice of such default. If Customer fails to cure such
breach, default or failure, then Fort Worth shall give Customer written notice of
such failure to cure and may surcharge Customer Five Thousand Dollars ($5,000)
per month until such time as Customer cures such non-material breach.
17.6 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 Customer 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.
17.7 Any failure by Customer to so terminate this agreement or the
acceptance by Customer of any benefits under this agreement for any period of
time after such material breach, default or failure by Fort Worth shall not be
determined to be a waiver by Customer of any rights to terminate this agreement
for any subsequent material breach, default or failure.
18.
Ownership and Liability
18.1 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
SOUTHLAKE WHOLESALE
WATER CONTRACT
Pang')'1 of 19
shall same create any other rights or liabilities and Customer payments (whether
past, present, or future) shall not be construed as granting Customer partial
ownership of, pre-paid capacity in, or equity in the Fort Worth System.
18.2 Liabilities for damages arising from the proper treatment,
transportation and delivery for all water provided hereunder shall remain with Fort
Worth to the point of delivery and, upon passing through the meter, liability for
such damages shall pass to the Customer, save and except that Fort Worth's sole
responsibility is to provide to Customer water of a quality which meets state and
federal drinking water standards. Each party hereto agrees to save and hold the
other party harmless from all claims, demands, and causes of action that may be
asserted by anyone on account of the quality, transportation and delivery while
water is in the control of such party. This covenant is not made for the benefit of
any third party. Fort Worth takes the responsibility as between parties hereto for
the proper treatment, quality, transportation, and delivery of all such water provided
by it to the point of delivery.
18.3 Contracts made and entered into by either Customer or Fort Worth
for the construction, reconstruction or repair of any Delivery Facility shall include
the requirement that the independent contractor(s) must provide adequate
insurance protecting both the Customer and Fort Worth as co-insureds. Such
contract must also provide that the independent contractor(s) covenant to
indemnify, hold harmless and defend both the Customer and Fort Worth against
any and all suits or claims for damages of any nature arising out of the
performance of such contract.
19.
Force Majeure
19.1 If by ahy 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 Customer to make payments required under the
terms hereof, then if such parties shall give notice and full particulars of such force
majeure in writing to the other party within a reasonable firne after the occurrence
of the event or cause relied on, the obligation of the party giving such notice, so far
SOUTHLAKE WHOLESALE
WATER CONTRACT
Paae 25 of 32
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.
19.2 The term "force majeure", as employed herein, shall mean acts of
God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders
of any kind of the government of the United States or the State of Texas, or any
civil or military authority, insurrection, riots, epidemics, landslides, lightning,
earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests,
restraints of government and people, civil disturbances, explosions, breakage or
accidents to machinery, pipelines or canals, partial or entire failure of water supply,
and inability on the part of Fort Worth to deliver water hereunder or the Customer
to receive water hereunder on account of any other cause not reasonably in the
control of the party claiming such inability.
20.
Notices
20.1 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, TX 76102
Customer: City Manager
City of Southlake
1400 Main Street
Southlake, Texas 76092
The parties hereto shall indicate in writing any change that may occur in such
respective addresses from time to time.
SOUTHLAKE WHOLESALE
WATER CONTRACT
21.
Inspection and Audit
21.1 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.
22.
Miscellaneous
22.1 Fort Worth and Customer agree that if Fort Worth should enter into
any future contract for supplying treated water to any municipality under more
favorable terms or conditions than set forth herein, this contract shall be amended
to provide the same terms and conditions with respect to the sale of treated water
to Customer.
22.2 During a temporary emergency condition created by unforeseeable
mechanical failure or by unprecedented high rate of water usage such as might
result from a major fire or a major water main break, it may be necessary that
water be withdrawn from the Fort Worth System at a rate of usage in excess of
that required for the usual peak requirements of Customer. It is agreed that extra
Rate of Use Charges that would normally be applicable shall not apply for such
bona fide emergency withdrawals provided that Fort Worth is notified in writing
within 48 hours of the occurrence of an emergency condition. In any event, the
volume and Rate of Use Charges for all water delivered shall be due and payable
as described elsewhere herein.
223 At the request of the Director, Customer agrees to furnish water to
areas and premises situated adjacent to the boundary of Customer and within the
boundaries of Fort Worth. The metered quantity of water used in this area each
SOUTHLAKE WHOLESALE
WATER CONTRACT
month by Fort Worth shall be the total of all individual customer meter readings. At
the option of Customer or Fort Worth, a master meter may be installed where
practicable at the expense of Fort Worth to meter all water used by Fort Worth
under the terms of this section.
22.4 The metered quantity of water furnished by Customer to Fort Worth
shall be deducted from the total quantity of water withdrawn from the Fort Worth
System by the Customer before the charge for water service to Customer is
computed in accordance with the payment computations set forth and based on
the Volume Charge described herein and the quantity of water so withdrawn from
the Fort Worth System.
22.5 This agreement is subject to all applicable federal and state laws and
any applicable permits, amendments, orders, or 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, order, rule or regulation in any forum having jurisdiction.
22.6 Customer agrees to abide by any changes in this agreement made
necessary by any new, amended, or revised state or federal regulation.
22.7 Upon prior notice by Fort Worth, any duly authorized employee of
Fort Worth bearing proper credentials and identification shall notify Customer of
need for access to any premises located within Customers service area or served
by Customer as may be necessary for the purpose of inspections and observation,
measurements, sampling and testing and/or auditing, in accordance with the
provisions of this contract. Customer may elect to accompany the Fort Worth
representative. To the extent permitted by law, Fort Worth agrees to indemnify
Customer for any damage or injury to person or property caused by the negligence
of such duly authorized employee while such employee is in the course and scope
of his employment.
22.8 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 settled by arbitration shall serve on the
D
other party a request in writing that such utter be handled I y arbitration
SOUTHLAKE WHOLESALE
WATER CONTRACT
Customer 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 or the
Federal Mediation and Conciliation Service, or either's successor in function. The
Customer 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,
Customer and Director shall alternate striking a name from the list and the name
remaining shall be the impartial arbitrator. Customer and Director 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. All costs of arbitration shall be considered a
System Cost.
22.9 If requested by the Director, Customer shall provide quarterly the
following data:
A. Actual number of customer accounts consuming directly or indirectly
from the Customer System within its service area;
B. Classification of domestic and non-domestic accounts within its
service area by number and percentage of accounts consuming
directly or indirectly from Customer System within its service area;
C. Customer water usage from all sources other than the Fort Worth
System, including, but not limited to, ground water, other surface
water, and water supply agreements with other entities;
D. Additional data which may assist Fort Worth and/or Customer in
developing methodology for cost of service studies, planning studies
for analyzing federal grants, and System Access Fees, provided,
however, that neither party shall request data that will require either
party to incur unreasonable expenses in providing such data,
SOUTHLAKE WHOLESALE
WATER CONTRACT
Page 29 of 32
22.10 Customer may not assign this agreement without the prior written
consent of Fort Worth. Fort Worth may not assign this agreement without the prior
written consent of Customer; provided, however, in the event Fort Worth is
designated as a regional water authority or agency by a duly authorized regulatory
body, or if Fort Worth should elect to contract with or this contract to a regional
water authority to provide all or part of the services covered by this agreement, the
participants hereto agree that any such regional water authority may, by way of
assignment of this agreement, assume and receive the same obligations and
responsibilities, the same benefits as Fort Worth; further, Customer hereby grants
to Fort Worth the specific right to assign this agreement to such regional water
authority.
22.11 No waiver by either 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.
22.12 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.
22.13 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.
22.14 Customer shall not provide wholesale service to any public or private
entity holding a CCN within the corporate limits of Customer without the prior
written consent of Fort Worth. Further, Customer shall not provide retail service to
any customer residing within the boundaries of a CCN held by anyone other than
Customer without the prior written consent of Fort Worth.
22.15 Fort Worth recognizes that the existing pipeline located in Pearson
Lane is owned by Customer or jointly by Customer, Keller and other parties.
Southlake Meter No. I measures the water transported by the Pearson Lane
Pipeline and both Customer and the City of Keller use that such transported water,
SOUT HLAKEE WHOLESALE
WATER CONTRACT
Page 30 of 32
Customer is responsible, however, for payment of bills for all water measured by
Southlake Meter No. 1 regardless of which entity uses the water. Customer shall
not provide water to any other entity other than as specifically permitted herein.
22.16 Customer will be allowed a second point of delivery at the Caylor
Road ground storage reservoir. The supply pipeline to be constructed in
association with this meter, referred as Southlake Meter No. 2, may be connected
to the Pearson Lane pipeline and shared with the City of Keller. No retail
connections shall be made to the supply pipeline.
22.17 Customer shall participate in the cost of the Northside 2-11 48-inch
pipeline construction based on the capacity of the pipeline, the projected Customer
build out demand, and the final construction cost. This pipeline will originate at the
Harmon Road Elevated Tank and end at Westport Parkway, as shown on Exhibit
"B" attached hereto. This pipeline is required to meet projected Customer demand
and Customer shall participate in the cost based on Section 3.3 of this contract.
The total cost estimate of the pipeline is $9,000,000 and the capacity is 60 MGD.
Customer agrees that its share of the pipeline based on the 20 MGD demand
projected by Customer at build out is 33% or $2,970,000. Customer has been
provided a copy of the plans, specifications and construction documents prepared
by Dunaway and Associates dated 2001 for review. Upon completion of
construction, Customer's costs shall be recalculated using the actual costs
incurred for construction. Such recalculated amount shall be payable over a
period of sixty (60) months and shall accrue interest at the rate of six percent
(6%) per annum from the date of the completion and acceptance of the project
by Fort Worth. Notwithstanding, Customer may make additional and/or early
payments without penalty of any type. The monthly payment shall be billed by
Fort Worth with the monthly bill issued for wholesale water service. Should Fort
Worth ever terminate this contract or refuse to enter into a contract in the future
whereby Fort Worth no longer provides wholesale water service to Southlake,
Fort Worth agrees to pay Southlake for the depreciated value of this pipeline.
SOUT HLAKE WHOLESALE
WATER CONTRACT
Page 31 of 32
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.
ATTCCIT: CITY OF FORT WORTH
BV:
dona P rson Marc Ott
City S:cpreAtary /'-Assistant City Manager
APPROVED AS TO FORM AND A, PROVAL RECOMMENDED:
LEGALITY:
A
Assist6ini ity Attorney Dale- . Fisseler, -F". 4., Director
Water Department
CITY OF SOUTHLAKE
ATTEST: 4�0;
>
co
Kir ush Rick Stacy
Actin City Secretary Mayor
APPROVED AS TO FORM AND APPROVAL RECOMMENDED:
LEGALITY:
City Attorney Billy Manager
r
-;8fi i
traat Au I thorlizatOn
ats
SOUTHLAKE WHOLESALE "In
WATER CONTRACT
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NUMBER REFERENCE NUMBER �G NAME PAGE
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6/25102 C-1 9134� 60SOUTHLAKE 1 of 2
SUBJECT UNIFORM WHOLESALE WATER CONTRACT WITH THE CITY OF SOUTHLAKE
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a uniform wholesale water contract with the City of
Southlake; and
2. Authorize the City Manager to execute an interim 60-day contract for treated water service with
Southlake under the same terms and conditions contained in the current contract, if necessary.
DISCUSSION:
On June 24, 1987, the cities of Southlake and Fort Worth entered into a contract whereby Fort Worth
agreed to provide treated water service to Southlake. That contract expired on June 24, 2002.
The Water Department has offered a new uniform wholesale water contract to Southlake that contains
the same terms and conditions that Fort Worth has with its other wholesale water customers, including
rates and the requirement that Southlake pay Fort Worth impact fees. Wholesale water contracts are
scheduled to expire December 31, 2010.
The proposed contract recognizes the arrangement between the cities of Keller and Southlake and the
joint use of a main that transports water to both cities from the North Beach Street water tank, and that
Southlake is responsible for payment for all water taken from this main, regardless of whether the water
is used by Southlake or Keller. Further, the contract also allows for a second point of connection by
Southlake to the Fort Worth System at the Caylor Road Ground Storage Reservoir. In addition, the
contract provides for Southlake's participation in the construction of the Northside 2-11 48-inch pipeline
based upon the capacity of the pipeline and the projected demand on the main to be made by
Southlake. Southlake's share is estimated to be $2,970,000, which will be payable over a period of 60
months and earn interest at the rate of 6% per annum.
Southlake may be unable to consider the uniform wholesale contract until after the existing contract
expires. If that occurs, City Council approval is sought to authorize the City Manager to execute an
interim 60-day contract with Southlake under the same terms and conditions of the contract that expired
on June 24, 2002. This contract does not include the payment of impact fees as described above, but
does contain a rate that is higher than the rate in the uniform wholesale contract.
City of Fort Worth, Texas
A4ayor and oodmeif oomom mication
DATE REFERENCE NUMBER LOG NAME PAGE
6125102 1 C-I 9134 60SOUTHLAKE 1 2 of 2
SUBJECT I UNIFORM WHOLESALE WATER CONTRACT WITH THE CITY OF SOUTHLAKE
FISCAL IN FORMATION/CERTI Fl CATION:
The Finance Director certifies that the Water Department and the Finance Department will be
responsible for the collection, deposit and recording of revenues under this agreement.
BG:k
-7-
rSubmitted for City Manager's (_1 tj!'i, I CENTER O
AMUNf cjTY srcRETARv,
Office by: 1 (to)
I Bridgette Garrett/Acting 6140
Originating Department Head:
Dale Fisseler 8207 (from) AITROVED 06125102
-------------
Additional Information Contact:
Daie I`isseler 8207