HomeMy WebLinkAboutContract 17216r �
CITY SECRETARY.
CONTRACT FOR WATER SERVICE BETWEEN CONTRACT Na.17a1�
THE CITY OF FORT WORTH, TEXAS, AND
SAGINAW, TEXAS
1,2 00G.3
STATE OF TEXAS §
COUNTY OF TARRANT §
PyThis contract and agreement is made and entered into this
day of 1Grby and between the City
of Fort Wort a n4nicipal corporation located in Tarrant County,
Texas, acting by and through Ruth Ann McKinney, its duly
authorized Assistant City Manager, hereinafter called "Fort
Worth," and the City of Saginaw, a municipal corp ration loca ed
in Tarrant County, Texas, a ti g and throng '� ,
its duly authorize zthereinafter 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,
Be
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,
WHEREAS, on the 2nd day of February, 1968, Fort Worth and
Customer entered into a contract, same being Fort Worth City
Secretary Contract No. 5946, providing for the supply of potable
water from Fort Worth to Customer; and,
WHEREAS, Customer desires to continue to contract for the
purchase of treated water and Fort Worth desires to continue to
sell treated water t❑ Customer; and
WHEREAS, Section 402.001 and 402.075 of the Texas Local
Government Code, authorize Fort Worth and Customer to enter into
this agreement;
NOW, THEREFORE, KNOW ALL MEN 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.
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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 Customer's 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 ❑irector of the City of Fort Worth Water
Department ❑r his designee.
1.7 "Fiscal Year" is the fiscal year of Fort Worth from October
1 through September 30.
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.
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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 "System Access Fee" is a capital contribution which
represents a proportional capital cost of general benefit capital
facilities capacity, less depreciation, outstanding debt, and
contributions paid to Fort worth, required to provide service for
new connections, whether located within the jurisdictional limits
of Fort Worth or Customer.
1.15 "System Cost" is the operating expense and capital related
cost incurred by Fort Worth pursuant to the provision of water
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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
service.
1.17 "Volume Charge" represents the combined treatment, pumping
and transmission charge and the raw water charge in effect for
the current Fiscal Year.
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 ❑perating 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 ❑f 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 ❑r issue water conservation measures or restrict
the use of water in any way, Customer agrees t❑ institute and
apply the same rationing, conservation measures, ❑r restrictions
to the use ❑f water by the customers of Customer for so long as
any part of the total water supply of the Customer is being
furnished by Fort Worth. Fort Worth agrees to consult with the
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Water System Advisory Committee, hereinafter created, in the
development ❑f 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 ❑r rationing requirements as may
be determined by the ❑irector to meet all necessary water
demands.
3.
Location and Maintenance of Measurin❑ 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 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. Fort Worth shall pay all costs associated with the
operation and maintenance of said equipment and shall pay for the
replacement ❑f 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 Customer's 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 shall be mutually agreed
upon in writing by and between the parties hereto, and the meter
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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.
4.
Meters
4.1 Fort Worth shall routinely test for accuracy, and service and
calibrate if necessary, the master 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
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.
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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
(1/2) of the time elapsed since the date of the last calibration,
but in no event further back than a period of six (5) 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 Readino and Sillina
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
W11
not functioning properly, and, upon such notice; repairs to such
meter shall be made promptly.
5.2 All readings of meters will
journals maintained by Fort Worth.
such records during reasonable
furnished with monthly readings
metering facility.
be entered in ink upon bound
Customer shall have access to
business hours and shall be
for each point of delivery
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 which 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
ME
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 which
the payment was required t❑ 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 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 cast -of -ser-
vice rate study performed by independent utility rate consultants
as provided for in Section 6.1.5 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. The cost of any such study shall be a
System Cost. All cast -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. T❑ 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,
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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 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 wholesale service period between October 1,
1987, and September 30, 1989, the wholesale water rate study
completed September 1, 1987, by Touche Ross and Company will
remain in effect. For the Fiscal Year beginning October 1, 1989,
Touche Ross and Company will be hired to revise the wholesale
water rate study completed September 1, 1987, using the same
methodology, save and except that the detailed wholesale revenue
requirement will be developed on an actual historical cost test
year basis utilizing 1987-88 data and allowing for reasonable and
necessary expenses of providing such wholesale water service.
Fort Worth will adjust wholesale water rates annually for Fiscal
Years beginning October 1, 1990, 1991 and 1992, using the same
Isom
methodology as that utilized by Touche Ross and Company in its
most recent rate study.
6.1.5 For the Fiscal Years beginning October 1, 1993, 1996,
1999, 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 same methodology used in the immediate previous rate study
will be utilized by the rate consultant so selected. 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 ❑f the prior year, adjusted for all known and
measurable changes in cost data that may have ❑ccurred 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.
6.1.6 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 ❑f 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,
1989, and have been computed as follows:
The Treatment, Pumping and Transmission Charge shall be
$0.3183 per 1,000 gallons withdrawn by Customer.
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The raw water charge shall be $.5186 per 1,000 gallons
for Customers inside the Tarrant County Water Control
and Improvement ❑istrict *1, and $.6191 for Customer's
❑utside the District.
The annual charge per MGD of Maximum Day Demand in
excess ❑f Average Daily Use shall be $62,974 per MGD■
and Maximum Hour Demand in excess of the Maximum Day
Demand shall be $29,450 per MGD.
The service charge shall be $25.00 per month per meter.
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 ❑istrict 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
t❑ this contract are essential and necessary to the operation of
Customer's waterworks facilities and that all payments made by
Customer hereunder shall constitute reasonable and necessary
operating expenses of Customer's 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 ❑f
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
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(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.
6.2.5 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 t❑ 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 cast -of -service
study of the proposed rates sixty (60) 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.
Pavment for Water
Payment of charges to Fort Worth for water used by Customer
shall be made as follows:
5EM
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 ❑ccurred. 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 ❑emand 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 water is withdrawn from the Fort Worth
System by Customer 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 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 ❑emand. The ❑irector 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.
B&O
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 ❑f use payments, the current Fiscal Year Rate
of Use Charges will be applied t❑ the prior Fiscal Year's Maximum
❑ay 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 ❑ctober 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 County Water Control and Improvement ❑istrict No. 1
and water being withdrawn at one metering station, and the Volume
Charge and Rate of Use Charges in effect until September 30,
1989.
4v
Rate
of
Monthly
Usage
Volume
Use
Service
Month
Consumption
Charges
Charges
Charges
Total
Oct.
1,000,000
$ 937.40
$ 1,352.02
$25
$ 2,314.42
Nov.
1,000,000
937.40
1,352.02
25
2,314.42
Dec.
1,000,000
937.40
1,352.02
25
2,314.42
Jan.
11000,000
937.40
1,352.02
25
2,314.42
Feb.
1,000,000
937.40
1,352.02
25
2,314.42
March
2,000,000
1,874.80
1,352.02
25
3,251.82
April
3,000,000
2,812.20
1,352.02
25
4,189.22
May
3,000,000
2,812.20
1,352.02
25
4,189.22
June
3,000,000
2,812.20
1,352.02
25
4,189.22
July
3,000,000
2,812.20
1,352.02
25
4,189.22
August
4,000,000
3,749.60
1,352.02
25
5,126.62
Subtotal
23,000,000
$21,560.20
$14,872.22
$275
$36,707.42
Sept. 3,000,000 2,812.20 2,662.83 25 5,500.03
26,000,000 $24,372.40 $17,535.05 $300 $42,207.45
Prior Year Rate Of Use Calculation
(for use in estimated monthly Rate of Use Charge)
Average
❑aily 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 ❑emand
= 305,000
gallons
Monthly Excess Maximum Day and Hour Payment Calculation
.115 mg X $62,974 $ 7■242.01 (Maximum day)
.305 mg X $29,450 8,982.25 (Maximum hour)
Total $16,224.26
Monthly Rate of Use Payment (Total Divided by 12)= $1,352.02
5 &L
A. The annual navment 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 areater. In Example A. the current year
exceeds the average of the most recent three Fiscal Years.
Current Year Rate Of Use Calculation
Average
❑aily Use for the year
= 71,233
gallons
Maximum
❑ay Demand for the current
year
= 200,000
gallons
Maximum
Hour Demand for the current
year
- 520,000
gallons
Maximum
❑ay Demand above Average
Daily Use
= 128,766
gallons
Maximum
Hour Demand above Maximum
Day Demand
= 320,000
gallons
Fiscal Year Average of
Most Recent
Three Years
CURRENT
FY
FY
FY
1988
1987
Maximum
Day Demand
above
Average Daily Use
128,766
115,000 130,000
Maximum
Hour Demand
above
Maximum Day Demand
320,000
305,000 325,000
Three year average of Maximum Day Demand
above Average Daily Use 124,589
Three year average of Maximum Hour Demand
above Maximum Day Demand 316,667
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.
IFM
Annual Payment Calculation
(Based on Current Year ❑ata)
26,000 X .9374
.1288 mg X $62,974
.3200 mg X $29,450
12 X $25 X 1
Total Annual Payment
Previous Billings for
October through August Usage
October Billing for September
Usage
FY 189 Rates
$24,372.40
B,111.05
9,424.00
300.00
$42,207.45
36,707.42
$ 5,500.03
B. Example of computation when the average of the maximum usage
rates of the most recent three Fiscal Years is ❑reater than
the current Fiscal Year rate of use:
Current Year Rate of Use Calculation
Average
❑aily Use for the current year
- 71,233
gallons
Maximum
Day Demand
for the current year
200,000
gallons
Maximum
Hour Demand
for the current year
= 520,000
gallons
Maximum
❑ay Demand
above Average Daily Use
= 128,766
gallons
Maximum
Hour Demand
above Maximum Day Demand
= 320,000
gallons
Fiscal Year Average of Most Recent Three Years
Maximum Day Demand
above Average Daily Use
Maximum Hour Demand
above Maximum Day Demand
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CURRENT FY
FY
FY 1988
1987
128,766 130,234
130,000
320,000 323,010
325,000
Three year average of Maximum Day Demand
above Average ❑aily Use 129,670
Three year average of Maximum Hour Demand
above Maximum Day Demand 322,670
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 189 Rates
(Based ❑n average ❑f most recent three years)
26,000 X .9374
.1297 mg X $62,974
.3227 mg X $29,450
12 X $25 X l
Total Annual Payment
Previous Billings for
October through August Usage
October Billing for September
Usage
8.
Effective date of contract
$24,372.40
8,167.73
9,503.52
300.00
$42,343.65
36,707.42
$ 5,636.23
8.1 The effective date of this contract for all purposes will be
April 1, 1989, subject to the provisions of section 8.2 hereof.
8.2 Effective with and only with the April 1, 1989, billing,
Fort Worth will conduct a one-time ❑nly mid -year settle -up, as
provided for in this section. Fort Worth will compare the actual
wholesale water payments made by Customer for the partial Fiscal
Year period between October 1, 1988, and April 10 1989, to that
sum of payments that Customer would have made in accordance with
section 7.3 above. If Customer has paid Fort Worth more than
-20-
that amount required under section 7.3 above, Fort Worth will
credit that surplus to Customer's subsequent monthly billings
until said surplus is exhausted. If Customer has paid Fort Worth
less than that amount required under section 7.3 above, Customer
will pay Fort Worth that deficit amount as part of the April 1,
1989, billing. Per annum interest charges required by section
5.5.5 herein will not be applicable to any payments or credits
made under this section.
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-wav
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 corporate
limits 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 ❑r facilities located in
such street rights -of -way, ❑r 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 t❑ Customer.
❑pon notice from Fort Worth and at Customer's 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
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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 heret❑ will
be required to restore the other's property to a condition
exceeding its original condition, unless ❑therwise mutually
agreed in writing. Fort Worth and Customer agree t❑ coordinate
the location of the mains and/or facilities in the other's
easements and rights -of -way in order to prevent further conflicts
insofar as is reasonably practicable.
11.
State Health Department Anoroval
11.1 The Customer System shall be approved by the Texas State
Department of Health during the life of this contract. If at any
time the Customer System is not approved by the Texas State
Department of Health, 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 Texas State Department ❑f Health. All expenses
to provide and install backflow prevention device(s) will be
borne by Customer.
12.
Resale ❑f 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 certificated area 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
-22-
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 Customer agrees that it will not enter into any resale or
transportation agreement other than as a part of its normal
❑ffering and supply ❑f 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.
13.
Sanitary Sewer Facilities
13.1 The Customer covenants that adequate sanitary sewage
facilities meeting state health department requirements will be
provided for users of water obtained from the Fort Worth System.
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 Svstem Advisory Committee
15.1 Customer's governing body shall annually appoint a
representative to be a voting member ❑f the Water System Advisory
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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 conservation,
wholesale planning, improvements, grants, wholesale rate studies,
administration, budgets, and additional wholesale customers,
whether same be wholesale customers of Customer ❑r 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
matter pertinent to its functioning.
16.
Svstem Access Fees
16.1 In the event Fort Worth adopts an ordinance which will
provide for a water System Access Fee for new development within
the jurisdictional limits of Fort Worth, Customer agrees to pay
to Fort Worth ❑n a quarterly basis a charge for each new or
enlarged connection for water service made within Customer's
jurisdiction served by the Fort Worth System. The charge to
Customer 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 calculation of said access fees
shall be consistent with all applicable state and federal
regulations, and shall include only those costs associated with
general benefit capital facilities as herein defined.
16.2 Fort Worth agrees that all monies remitted to it pursuant
t❑ this section will be placed in a separate account to be used
exclusively for treatment plant, metering and system general
benefit improvements, and will not be used for ❑peration and
maintenance expenses or distribution system improvements. Such
funds and all interest earned thereon will be considered a
"contribution" for rate setting purposes only.
-24-
16.3 Customer shall provide to Fort Worth information pertaining
to building permits as such permits relate to the making of new
and/or enlarged connections within Customer's jurisdiction with
each quarterly payment required in this section. Customer
further agrees to provide such other information relating to new
and/or enlarged connections as may be requested by the Director.
16.4 Fort Worth will cause to be deposited into the proper
revenue account the appropriate charge required by any future
ordinance for each new or enlarged connection for water service
made within Fort Worth's jurisdiction.
16.5 Following the establishment of a water System Access Fee,
there will be created and established a Water System Access Fee
Advisory Committee whose purpose shall be to consult with and
advise Fort Worth, through the Water System Advisory Committee,
on matters pertaining to the methodology of calculating access
fees. 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 Councils 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
year the committee shall consider adjustments to the access fee
amounts and the administration of such charges through the Water
System Advisory Committee.
16.6 It is understood by and between the parties that the system
access fee referred to within this section may be construed or
interpreted to be an impact fee or a capital recovery fee under
-25-
the definitions then existing within state law. In the event
that said fee is determined to fall in that category, it may be
subject to certain state regulations as to it's adoption and/or
implementation. The parties agree and jointly represent and
covenant that it is not their intent to require an illegal or
inappropriate action ❑n the part of any participant t❑ this
agreement. Any and all access fees, capital recovery fees or
impact fees adopted by any participant to this agreement shall be
done in full compliance with then existing state law. To the
extent that this agreement requires any party t❑ impose, collect
or remit any or all of a fee not in compliance with state law,
the provisions of Section 16 are abrogated and void in their
entirety.
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 t❑ 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 ❑f its
intention t❑ 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,
-26-
powers, and privileges of Customer hereunder shall cease and
terminate and Customer shall make n❑ claim of any kind whatsoever
against Fort Worth, its agents or representatives, by reason ❑f
such termination ❑r 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.
17.2 In the event Fort Worth shall ration the use ❑f 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
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liability whatsoever on the part of Fort Worth, to declare this
agreement terminated. In event ❑f 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 ❑r 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 t❑ perform a duty
or obligation shall be considered to be a material breach:
a. Failure to adopt and enforce any ordinance or
conservation measure or rationing 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 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 ❑peration 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 (50) 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 ❑r failure.
18.
CwnershiD and Liabilitv
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 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 ❑f a quality which
meets state and federal drinking water standards. Each party
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hereto agrees to save and hold the other party harmless from all
claims, demands, and causes of action which 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 heret❑ 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 ❑r claims for damages of
any nature arising out of the performance ❑f such contract.
19.
Force Maieure
19.1 If by any 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 time after the occurrence of the event or cause relied
on, the obligation of the party giving such notice, s❑ far as it
is affected by such force majeure, shall be suspended during the
countinuance 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.
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19.2 The term "force majeure", as employed herein, shall mean
acts of God, strikes, lockouts or ❑ther 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 ❑f 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 causes not reasonably in the control ❑f the party
claiming such inability.
20.
Notices
20.1 Any notice, communication, request, reply or advice herein
provided or permitted t❑ 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:
The parties hereto shall indicate in writing any change that may
occur in such respective addresses from time to time.
-31-
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 ❑r 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 ❑r 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 ❑f 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.
-32-
22.3 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 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 t❑ 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 s❑ 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 ❑f any right to question or contest any
such law, order, rule or regulation in any forum having
jurisdiction.
22.5 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 Customer's city limits or served by
Customer as may be necessary for the purpose of inspections and
Qc#0
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 other party a request
in writing that such matter be handled by arbitration. 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:
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A. Actual number
or indirectly
service area;
of customer accounts consuming directly
from the Customer System within its
B. Classification of domestic and nondomestic 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.
❑. 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
t❑ incur unreasonable expenses in providing such data.
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 assign this contract to a regional water authority to provide
all or part of the services covered by this agreement, the
participants heret❑ 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
-35-
specific right to assign this agreement to such regional water
authority.
22.11 This agreement terminates that certain contract known as
Fort Worth City Secretary Contract No. 5946 as amended between
the parties.
23.
Waiver. Remedv. Severabilitv
23.1 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.
23.2 In addition t❑ 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.
23.3 It is agreed that, in the event any term or provision herein
contained is held to be invalid by any court of competent juris-
dicition, 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.
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.
-36-
0
ATTEST:
Ruth Howard,
City Secretary,
City of Fort Worth
APPROVED AS TO FORM AND LEGALITY:
f � city torney, City of Fort Worth
Date:
APPR AL COMMEN E
Richard W. SaweY , Dire or+
City of Fort Worth Water Department
IV.r�r'ES^'
Ci::v Secretary
CITY FD WORTH �,
B
Ruth Ann McKinney
Assistant City Manager
City of Fort Worth
CITY OF SAGINAW
APO—Aftopdiey
P D A5 FORM AND LEGALITY:
Cl
Date:
APPRQ RECOMMENDED:
City Manager
-37-
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