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HomeMy WebLinkAboutContract 11802CONTRACT FOR WATER SERVICE BETWEEN THE CITY SECRETARY CITY OF FORT WORTH, TEXAS AND THE CONTRACT No. CITY OF LAKE WORTH, TEXAS THE STATE OF TEXAS § COUNTY OF TARRANT § THIS CONTRACT AND AGREEMENT made and entered into this 7 day of "- , 19 �, by and between the City of Fort Worth, a a muni ipal corporation located in Tarrant County, Texas, acting by and through its duly authorized City Manager, Robert L. Herchert, and the City of Lake Worth, a municipal corporation, located in Tarrant County, Texas, acting by and through its duly authorized Mayor, Richard W. Trimble. W I T N E S S E T H: WHEREAS, the City of 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 the City of Fort Worth; WHEREAS, the City of Lake Worth, hereinafter referred to as LAKE WORTH, is served by a well water supply and water distribution system; and WHEREAS, the City of Lake Worth currently purchases additional water from the City of Fort Worth under a Letter of Agreement; and WHEREAS, LAKE WORTH has determined that the most economical and timely source of an additional and continuous water supply to its dis- tribution system lies in purchasing treated water from the City of Fort Worth under a long-term water supply agreement as set out herein; and WHEREAS, it is deemed to be in the best interest of both the City of Fort Worth and LAKE WORTH that they do enter into a mutually satis- factory long-term agreement by means of which LAKE WORTH may obtain a supply of treated water from the City of Fort Worth at a reasonable rate, NOW, THEREFORE: KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the execution and performance of the mutual covenants herein set forth, the City of Fort Worth and LAKE WORTH d❑ hereby covenant and agree as follows: 1. TERMS AND CONDITIONS The City of Fort Worth agrees to furnish and sell to LAKE WORTH treated water under the normal operating pressure prevailing in the City of Fort Worth's water distribution system at the point or points of delivery mutually agreed upon. LAKE WORTH agrees to accept delivery under the conditions of this agreement and to pay for the same in accordance with the terms hereof. is If at any time during the term of this contract the furnishing of water by the City of Fort Worth to LAKE WORTH shall be to the detri- ment of water customers within the City of Fort Worth, then and in that event, the quantity of water furnished to LAKE WORTH will be reduced in the same proportion to the reductions in quantity of water being furnished other customers served by the City of Fort Worth in the same vicinity. If the City of Fort Worth shall ration the use of water through- out said City or issue water conservation measures or restrict the use of water in any way, LAKE WORTH shall: Institute and apply the same rationing, conservation measures or restrictions to the use of water by the customers of LAKE WORTH, so long as any part of the total water supply of LAKE WORTH is being furnished by the City of Fort Worth, and any failure by LAKE WORTH to comply with this provision or the other provisions of this agreement shall be just cause for the City of Fort Worth to discontinue the sale of water hereunder. At the request of the Director of the Fort Worth Water Depart- ment, LAKE WORTH agrees to furnish water to areas and premises situated adjacent to the mains or to the boundary of LAKE WORTH and within the boundaries of the City of Fort Worth. Mains, services., meters and appurtenances shall be constructed by the City of Fort Worth in accordance with the policy for the installation of community facilities in the City of Fort Worth. The connection of such services shall not be detrimental to the furnishing of water to existing or potential customers of LAKE WORTH. Approach mains required to be built by LAKE WORTH to serve such areas shall be provided by LAKE WORTH in accordance with the policies and procedures of LAKE WORTH. The metered quantity of water used in this area each month by the City of Fort Worth shall be the total volume of water registered during such month on a master meter installed at the expense of the City of Fort Worth to meter all water used by the City of Fort Worth under the terms of this section. The metered quantity of water furnished by LAKE WORTH to the City of Fort Worth shall be deducted from the total quantity of water with- drawn from the Fort Worth system by LAKE WORTH before the charge for water services to LAKE WORTH by the City of Fort Worth is computed in -2- accordance with the payment computations set forth and based on the commodity charge described herein and the quantity of water. Consid- eration shall also be given to the effects of water so supplied to the City of Fort Worth on the maximum hour and maximum day rates charged by the City ❑f Fort Worth to LAKE WORTH. OR LOCATION AND MAINTENANCE OF MEASURING DEVICES All water furnished under this agreement by the City of Fort Worth shall be measured by one or more suitable meters equipped with continuous flow chart -recording devices and transmitting and receiving equipment. All future meters and recording equipment shall be installed and operated by the City of Fort Worth. LAKE WORTH shall pay to the City of Fort Worth the cost of the meter, recording anri transmitting equipment and appurtenances plus the installation and maintenance cost thereof. The point or points of delivery of treated water by the City of Fort Worth shall be the meter vault connection to the customer's side of the meter., and all necessary mains and distribution facilities from and beyond said point shall be furnished by LAKE WORTH. The location of each meter shall be mutually agreed upon by and between the parties hereto■ and the meter or meters shall not be moved or relocated except by mutual consent. Each party hereto shall have the right to test the meters and appurtenances at any time by first giving the other party notice of its intention to make such a test. No meter shall be adjusted, changed, or tested, in place or elsewhere, unless the party intending to make such adjustment, change, or test shall first give notice to the other party of this intention and thereafter give reasonable opportunity to the other party to have representatives participate in such test, change or adjustment. All meters will be properly sealed, and the seal shall not be broken unless representatives of both parties have been notified and given a reasonable opportunity to be present. Either LAKE WORTH or the City of Fort Worth at its own expense may install a check meter to check measure the volume of water passing through the master meter, provided that if such check meter is in- stalled, the same rules and regulations relative to its operation, maintenance, and reading shall apply as t❑ the meter being tested. 3. METER READING AND BILLING The City of Fort Worth will read all meters provided for herein at monthly intervals and the parties to this agreement shall have free access to read these respective meters daily, if either party so -3- desires. It shall be the duty of the parties to give immediate notice, each to the other, should any meter be found not functioning, and upon such notice repair to such meter shall be made promptly. Whenever it is evident that a meter has not registered accurately for a period of time, the quantity used shall be estimated in accordance with the usage under similar conditions for an equal period. The meter readings and rates of flow shall be added together when more than one meter is in service and the sum thereof shall he used for the purpose of calculating charges for water used. M A review of water usage amounts by the customer for the past twelve (12) months shall be made during the preparation of the September bill each year. The September statement shall be prepared so as to reflect any and all rates of use charges which have not been previously billed and paid. A copy of the rate of flow charts or other records showing the maximum day and the peak hour of the year shall be furnished to the customer with the September billing. LAKE WORTH agrees to appropriate annually sufficient funds to pay the monthly charge for water service. The water charge to be paid by LAKE WORTH to the City of Fort Worth shall be deemed a current expense of LAKE WORTH for each year of this contract as such monthly charges become due and payable. The monthly bill shall be due and payable at the office of the Fort Worth Water Department on or before the 15th day immediately succeeding the monthly billing date. 4. DEFINITIONS "Annual consumption" is the total quantity of water purchased under the terms of this contract by LAKE WORTH during the fiscal year of the City of Fort Worth as determined by the difference in the annual September meter readings. "Average daily use" is the annual consumption divided by 365. "Maximum day demand" is the maximum quantity of water used during one calendar day of the fiscal year of the City of Fort Worth. "MGD" is million gallons per day. "GPD" is gallons per day. "TGPD" is thousand gallons per day. "Fiscal Year" is the fiscal year of the City of Fort Worth from October 1 to September 30. -4- "Maximum hour demand" or "peak hour rate" is the quantity of water used during the one hour of the year when more water passed through the meter or meters serving the customer than during any other hour of the -fiscal year of the City of Fort Worth multiplied by 24. "Commodity charge" is that part of the rate charged per 1,000 gallons used, regardless of rate of use. The commodity charge shall include the maintenance and operation cost, the capital facilities cost on the part of the production and transmission system related to annual use and the raw water costs. 16 "Raw water charge" is a part of the commodity charge and repre- sents the rate per 1,000 gallons charged by the Tarrant County Water Control and Improvement District #1 to the City of Fort Worth for raw water to be sold to LAKE WORTH plus six percent (6%) of said gate, representing Fort Worth water system losses of three percent. (3%) and the street rental charge of three percent (3%). "Rate of use charge" is the fixed charge determined for the maxi- mum daily demand in excess of average daily usage and the maximum hourly demand in excess of t* a the maximum day demand rates of use. "Base rate" is composed of the commodity charge, and the rate of use charge. OF RATES 1. Method of rate determination The annual rate charged by the City of Fort Worth for rendering water service under the terms of this contract shall be based upon the functional distribution of the total annual cost in- curred in furnishing treated water to its customers, provided that nothing herein shall be construed as contemplating an annual rate of less than the regular City of Fort Worth water only rate, plus ten percent (10%) of said rate. 2. Rates to be used The annual rate to be charged for water shall include the proper proportionate parts of the maintenance and operation cost as related to the production and transmission facilities of the total Fort Worth Water System, the capital facilities cost (fixed charges) on the production and transmission plant related to the rendition of service at maximum withdrawal rates of use by LAKE WORTH and the raw water costs. -5- The charges for the initial period of the contract which shall terminate September 30, 1982, have been computed as follows: a. The commodity charge shall be $0.3966 per 1,000 gallons withdrawn by the customer, subject to adjustment by the City of Fort Worth pursuant to paragraph 3 below. b. The annual charge per MGD of daily demand in excess of average daily demand shall be $29,600 per MGD and maximum hour demand in excess of the maximum day demand shall be $14,150 per MGD. 16 C. The service charge shall be $25.00 per month per meter. 3. Adjustment of rate a. Raw water: The amount charged for raw water shall be increased or decreased proportionately at such time as the raw wter cost paid by the City of Fort Worth for water available for treatment and sale to LAKE WORTH is increased or decreased. At the time of execution of this contract, the rate, includ- ing three percent (3%) for system losses, and the street rental charge of three percent (3%), to LAKE WORTH is $0.2396 per 1,000 gallons. The portion of the raw water charge which reflects system losses shall be adjusted in the manner set out in Subparagraph b. below in accordance with actual experience during the preceding period. The street rental charge will only be charged when directed by the Fort Worth City Council. b. Commodity charge and rates of use charges: The rate shall be reviewed and adjusted every five years except that the first such review shall be based on the annual cost of operation for the fiscal years 1980-81 and 1981-82. The cost related to the production and transmis- sion function of distributing treated water to the Fort Worth City limits in wholesale quantities plus a service charge shall be determined in accordance with methods here- in. Such costs shall be projected through the City of Fort Worth fiscal year 1985 to establish the fair rate for water to be charged during the period October 1■ 1982, to September 30, 1987. The adjusted rate shall be made effec- tive with the October, 1982 billing. A similar review and rate adjustment shall be made for each succeeding five-year period for the term of the contract. afl C-V PAYMENT FOR WATER Payment for charges to the City of Fort Worth for water used by LAKE WORTH shall be made as follows: I. Minimum Annual Payment The minimum annual payment shall be Charges computed for all water delivered by the City of Fort Worth to LAKE WORTH during the fiscal year based on rates provided herein. However, the minimum annual payment shall never be less than the payment calculated on the basis of the volume of water taken during the current fiscal year and the highest maximum rates of withdrawal during any fiscal year. 2. Maximum Rate of Delivery The maximum rate of delivery at the initial point of connection shall he 1.0 MGD. Maximum rates of delivery at subsequent points of delivery, or variations of the rate at the initial point of connection, shall be as mutually agreed upon by the parties hereto. 3. Minimum Monthly Charge The minimum monthly charge will be the charge computed for all water delivered to LAKE WORTH less any water delivered by LAKE WORTH to Fort Worth during the applicable calendar month based on rates provided herein. 4. Monthly Payment The monthly payment shall be calculated at the regular City of Fort Worth rate plus ten percent (10%) of said rate (which includes the raw water costs) plus the service charge for the quantity of water withdrawn from the Fort Worth system during the month less any quantity used by Fort Worth. 5. Annual Payment The actual total amount payment for water by LAKE WORTH shall he related to the annual and peak volumes used by LAKE WORTH during the fiscal year, as determined by meters, flow recording devices or other approved methods, subject to the minimum annual payment provisions set forth above. The September bill shall reflect any necessry adjustment to the annual payment due to actual rates of withdrawal from the Fort Worth system. arm If the initial period of use of water by LATE WORTH cinder the terms of this agreement is less than a fiscal year, the annual rates of use charges shall be computed in the proportion that the period of use bears to the fiscal year. The method of computation for determining the total annual payment and the September bill is shown using assumed quantities in the example that follows: Example r LAKE WORTH will buy all water required to fulfill its additional supply needs from Fort Worth. The rate used in the example is based on LAKE WORTH's not being in the Tarrant County Water and Control Improvement ❑istrict #1 and water being withdrawn at ❑ne metering station, less any quantity used by Fort Worth: Month Usage per Month -Gallons Monthly Payments October 11000,000 $ 643.10 November 11000,000 643.10 December 11000,000 643.10 January 11000,000 643.10 February 11000,000 643.10 March 2,000,000 1,178.50 April 3,000,000 1, 662. 50 May 3,000,000 1,662.50 June 3,000,000 1 ■ 662. 50 July 3,000,000 1,662.50 August 4,000,❑0❑ 2,146.50 SUBTOTAL September Payment TOTAL 23, 000, 000 3,000,000 26, 000, 000 Average daily use for the year Maximum day for the year Maximum hour for the year $13,190.50 5, 761 .58 $18,952.08 71,233 gallons 200,000 gallons 520,000 gallons per day Maximum day rate above average daily use = 128,766 gallons per day rate. Maximum hour rate above minimum day = 320,000 gallons per day rate cm Annual Payment Calculation 26,000 x $0. 3966 .1288 x $29,600 .3200 x $14,150 12 x 25 x 1 Total Annual Payment Previous Payments October through August September $10, 311 . 60 3,812.48 4,528.00 300.00 $18,952.08 13,190.50 $ 5,761.58 7. EFFECTIVE DATE OF CONTRACT FOR BILLING The effective date of this contract for billing purposes shall be the fifteenth (15th) day of the month fallowing the month in which this agreement is executed by LAKE WORTH and Fort Worth. s. LIFE OF CONTRACT The life of this contract shall be for nineteen (19) years from the date of execution hereof, and may be renewed upon terms mutually agreeable to the parties hereto. Er RIGHTS -OF -WAY LAKE WORTH shall grant to the City of Fort Worth such easements and rights -of -way along public highways or other property owned by LAKE WORTH as requested by the City of Fort Worth in order to con- struct and maintain water mains or facilities with LAKE WORTH to fur- nish water to LAKE WORTH and to other areas. All work done by or on behalf of the City of Fort Worth under this paragraph will be per- formed in accordance with specifications equal to those applying to work of a similar nature performed within the City of Fort Worth. 10. STATE HEALTH DEPARTMENT APPROVAL The water system of LAKE WORTH shall be approved by the Texas State Department of Health during the life of this contract. If at any time the water system of LAKE WORTH is not approved by the Texas State Department of Health, there shall not be any direct physical connection between the Fort Worth water system and the LAKE WORTH water system unless an approved backflow prevention device has been provided and installed and this installation has been approved by the Texas State Department of Health. 11. RESALE OF WATER LAKE WORTH hereby covenant and agree not to sell water to any user within ❑r without its limits at a rate lower than the equivalent Fort Worth rate charged a similar customer located within the City of Fort Worth, plus ten percent (10%). LAKE WORTH agrees to furnish the City of Fort Worth Water Department a complete rate schedule for all LAKE WORTH water sales. LAKE WORTH will not make any extension of water lines beyond the limits of LAKE WORTH as its boundaries now exist or may hereafter exist, nor permit any connections for water outside its limits, with- out the approval of the City of Fort Worth. 12. FORCE MAJEURE if, by reason of force majeure, either party hereto shall be rendered unable, wholly or in part, to carry out its obligations under this agreement, other than the obligation of LAKE WORTH to make pay- ments required under the terms hereof, then if such party shall give notice and full particulars to such force majeure in writing to the other party within a reasonable time after the occurrence of the event or cause relied on, the obligation of the party giving such notice, so far as it is affected by such force majeure, shall be suspended during the continuance of the inability then claimed, but for no longer period, and such party shall endeavor to remove or overcome such ina- bility with all reasonable dispatch. The term "force majeure", as employed herein, shall means acts of God, strikes, lockouts or other industrial disturbances, acts of pub- lic enemy, orders ❑f any kind ❑f the Government of the United States or the State of Texas, or any civil or military authority, insurrec- tion, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraints of government and people, inability on the part of the City of Fort Worth to deliver water hereunder to LAKE WORTH to receive water hereunder on account of any other causes not reasonably within the control of the party claiming such inability. IN TESTIMONY WHEREOF, after proper action by the respective governing bodies of the parties hereto, we have caused these presents to be executed in quadruplicate copies, each of which is considered to be an original and the seals of the respective parties to be hereto affixed on the date above written. ATTEST: C'i. Secretary APPROVED AS TO FORM AND LEGALITY: (:2-� City Attorney`" APPROVALZREENDED erect Fort Worth Water Department ATTEST: Secretary APPROVE S T❑ FORM AND LEGALITY: M-tornpfy for City of Lake Worth -11- CITY OF FORT WORTH By: ity M ager APPROVED BY CITY COUNCIL City Secretary Date CITY OF LAKE WORTH By . zg'::�4 az' __ .