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HomeMy WebLinkAboutContract 17209CONTRACT FOR WATER SERVICE BETWEEN ,rHE CITY OF FORT WORTH, TEXAS, AND RAICHLAIID HILLS, TEXAS STATE OF TEXAS § COANT Y OF TARRANT § CITY SECRETARY CONTRACT No-2f/a This contract and agreement is made and entered into this 1-0thday of April 1 19 89 , by and between the City of Fort Worth, a municipal 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 Richland Hills, a municipal corporation located in Tarrant County, -Texas, acting by and through W. H. Vincent,. Jr, I its duly authorized Mavor hereinafter cal led "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 -L+L-.s 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, I '-%,,HERP-AS, it U - is deemed to be in the best ?Merest of both 'Fort- Worth and Customer that said parties do enter into a mutual iv satisfactory agreement by means of which Customer may ob-IC-ain from Fort Worth a supply of treated water at a reasonable rate; and, WHEREAS, 1by -,.-,he execution of this contract, neither Fort Worth no Customer will surrender an-y of its rights to the ownership and operation of its present water production and distribution facilities, and, WHEREAS, on the 29th day of March, 1963, Fort Worth and Custo,ri,ter entered into a contra-ct, same being Fort Worth City A Secretary Contract No. �*7151, providing for the supply of potable water from Fort Worth to Customer; and, WHEREAS, ustomer desires to continue to contract for the purcilase of treated water and Fort Worth desires to continue to sell treated water to Cus-ILomer; and WHEREAS, SectIon 402.001 and 402.075 of the Texas Local Gover-rument Code, authorize Fort Worth and Customer to enter into this agreemen-t; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That, for and in consideration of the mutual covenants, promises and agreements contained here -in, Fort Worth and Customer do here by covenant and agree as follows: 1. De in -ions 1. 1 "Annual Consumption" is the total quantity of water purchased under the terms of this contract by Customer during the -ermined by the difference in the fiscal year of For� Wort�-- -s det annual October meter read4ngs. -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 SystenP 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 Facilit;— is any facility necessary for the transmission of swater 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. 1,7 "Fiscal Year- is the fiscal year of Fort Worth from October ! 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 SEll-ViCEM Mid benefits common to all customers which include water treatment facilities, metering facilities, control systeras 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 De ?and" is the ma mu quantity of water used by Customer during one calendar day of the Fiscal Year of Fort Worth. 1.12 "Max-iquirt Hour Demand" or "Peak Four Rate" is the quantity of water used by Customer during the one hour of the year that sore 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 Dav Demand in ex--ess 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 Distrl'ct, No. I to Fort Worth for raw water to be sold to the /I Customer plus eight percent (8%1 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. 1.16 "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 c iust.vmers e Such costs are to be collected by Fort Worth as a component of the annual cost of prodding wholesale water ser ioe 1 s 1 "Vo.lu to Charge" represents the conabined treatment, pumping and trans massion charge and the raw water charge in effect for the current Fiscal Year. 2. Terns and Condi- ons �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 paint 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, e 2 In accordance with the terms of Fort Worth City Secretary Contract No. 12720 between Fort Worth, City of Arlington, City of Mansfield, rinL ty River Authorlty and the Tarrant County Water Control and Improvement District No. 1, this contract shall be deemed subordinate In all respects to the wager requirements of the above contracting parties as specified in Section 3 of that contract, 2.3 If Fort Worth shall rations the use of water throughout its corporate limn is or issue water conser ation measures or restrict the use of s¢ate-- in any way, Customer agrees to .institute and apply the same rat— Toning, conservat i on measures, or restrictions to the use of water by the customers of Customer for so long as any part of the total_ stater supply of the Customer is being furnished by Fort Worth. Fort Worth agrees to Consult with the 5 Water System Advisory Com-mittee, hereinafter created, 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 Aldviisory Con-anittee 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 Measurina 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 recordin: devices, and telex etering 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 equip 4ment, including telemetering equipment to the Fort Worth control center, a,-Iid appurtenances, plus the installation cost thereof. Fort Worth shall day all costs assocliated 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 a 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. 'Phe location of each meter shall be mutually agreed upon in writing by and between the parties hereto, and the meter -6- or meters shall not be moved or relocated except by mutual consent in writing the parties hereto. 3.3 For ;,he 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 ;north under its then existing connection and line extension policy, or an amount agreed upon mutually by Fort Worth, Customer, and the eater System Advisory C'ommittee. 3.4 Either party, at its own expense, may instal a check meter to check or measure the volume of water passing the master meter, provided that, :f such check meter is installer, the same rules and re uiati.ons relative to its operation, maintenance and reading shall apply as 'Co the ruaster meter being tested. Meters 4.1 Fort Worth shall routinely test, for accuracy, and service and call rate if necessary, the master Yet r(s) no less than once duriLng each twelve ) month period. Copies of the results of such calibration and all rebated 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 ether mutually approved third party calibration went, in the presence of representatives of usto er and Fort Worth, if so requested by (_''x, tos er. Notification of any proposed test shall be provided to the Customer at ieas t seventy-two ) hours prior to such test beina conducted and Customer may observe such test,, if so 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%) exTpressed as a percentage of the full scale of the meter, the registration of the flow as determined by such defective meter shall be corrected for a period extending back to the time such inaccuracy began, if such time is ascertainable; or, if such time is not ascertainable, then for a period extending back one-half (1/2) of the time elapsed since the date of the last calibration, but in no event further back than a period of six (6) months. 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 Custorter 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 shail 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 Readinq and Billinq 5 � 1 Fort Worth will read all meters provided for herein at mon-thly ilntervals, and the part es to this agreement shall have free access to read these respective meters daily, it either party so desires. it shall be the duty of the parties to give 'jumed. iate not- -ice, eacIn to the other, should any meter be found -8- not° function.Ing 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 dgyring 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 (112) on nth 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 Custower with the October billing. 5.5 Bills fcor water service shall be rendered to Customer monthly by Fort Worth. All such bl"lls shall be due and payable by Customer not more than thirty (30) days from the billing date. The bills will show current charaes, 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 , 61 T-f Customer disputes a bill and is unable to resolve the difference informaliy, Customer shall notify the DireCtor in writing. if the Direc"Cor and Customer are unable to resolve the -9- is used bill, agreement on the bill will be determined by third party arbitration, as hereinafter provided. ID'ispute 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 to be made. In the event that a billing adjustment is agreed upon or established by arbitration the amount- found to be Mcorrect 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 cost -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 cost -of -service studies shall be conducted utillzina the utility cost basis of determining revenue requirements applicable to the wholesale customer class. 6,12 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 cap tag facilities. To determine the al"Locati(.,)n and distribution of costs to the wholesale custo;,,ier class, the li-nde-pendent utility rate consultant shall consider at least the following factors: total volume, rate of flow, metering, and custoater-related costs such as accounting, billina, and monitoring. Capital -related costs will consist of deprec-Lation expense and return on original cost rate base. The rate base shall consist of all allocated capital facilities, net of depreciation and c on-tr ibut ions, 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 fail itees shall be rila 4 _Lntained 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 enaMle 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. 6m1.4 For the wholesale service period between October 1,, f L98", and September 30, 1989, the wholesale water rate study completed September 1987, by Touche Ross and Company will 111, renn.ain in effect, For the Fiscal Year beginning October 1, 1989, Touch.e 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 detalled wholesale revenue -equirement will be developed on an actual historical cost test yea-r basis utilizing 1987-88 data and allowing for reasonable and nelcessary expenses of providing such wholesale water service. Fort Worth will ad­ust wholesalle water rates annually for Fiscal Years beginning 0--tober IL, 1990, 1991 and 1992, using the same methodology as that utilized by Touche Ross and Company in its most recent rate study. 61.5 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 immied-Late 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 3101th of the prior year, adjusted for all known and measurabie 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 .6 Changes in the wholesale water rate methodology will be allowed If recommended by a majority vote of the Water System Advisory Coramittee 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 ii-m-ned.-Late past Fiscal Year. 6.2 Rates to be Used 6.2.11 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. -12- The raw water charge shall be $.5186 per 1,000 gallons for 'Customers inslide the Tarrant County Water Control - and Improvement District #1, and $.6191 for Customer's outside the District. The annual charge per MGD of Maximum Day Demand in excess of 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 Mc3D, 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 salem - to Custoer is Increased or vaLl decreased as determined by the Tarrant 'County Water Control and improvement District No. 1 in accordance with Fort Worth City Secretary Contract No. 122720, 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 CustOmer's 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 Slltot-utes and the r,:Lrov is ions of any and all ordinances of Custome_r authorizing the issuance of any revenue bonds of Cart;--mer which are payable from its waterworks and wastewater systy mis. F 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 -13- (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 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 ) 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. Pa-y*ment for Water Payment of charges to Fort Worth for water used by Customer shall be made as follows: . l The annual pa rent will be the charges computed based can all r r d north to Custo �er during the current Fiscal Year us -Ling rates pro,Ylded herein. For purposes of calculating, the annual pa��ent, the current year will he the Fiscal Year during which the eater usage occurred. However, the mini-mumannual- payment, will be the greater of the fol.lowi g.- 1. the charges calculated by applying the current Volume Charge to Annual Consumption, the appropriate meter reading and filling charge, and the Rate of Use Charge for the current Fiscal Year; or the current Fiscal year 'Volume Charge, the appropriate meter reading and billing charge, and the current. Fiscal Year Rite of Use Charge applied to the average of the Maximum Day, enad above Average Daily Use and the average of the Maximum Hour Deland 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 3Twelve thousand dollars $1. , 0 m The rate at which eater is withdrawn from the Fort Worth System by Customer shall be regulated by rate -cif -flaw 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 precious year unless Customer has notified the Director In =meriting t least ) 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 se in maximum rate of withdrawal. The Director may naive all notice requirements ii, l n his sole opinion, said notice is not necessary to protect the interest of Fort Worth. -15- 7,3 Except as provided for in section 8 below, the monthly payment will be the greater of either one thousand dollars ($1,OWI 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 Year's Maximum fay 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 actuai 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 District 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. -16- Rate of Monthly Usage Volume Use Service Month Consumption he re Charges Total Oct, 1,0008000 $ 31.40 1,352.02 $25 2,314.42 Nov, 1,000,000 9371.40 1,352.02 25 2,314.42 Dec. 1,000,001 37.40 1,352.02 25 2,314.42 Jan. 1,000,000 937.40 1,352.02 25 2,314.42 Feb. 1,,0 ,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 1,32.02 25 4,189.22 May 3,000,000 2,812.20 35"'.02 25 4,89.22 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 2-1,000,000 $21,560. 0 $14,872.22 275 $36, t07.42 Sept. 3,000,000 2,812.20 2,662.83 25 5,500.03 26,000,000 $24,3712.40 $17,5 5.05 300 $42,207.45 Prior Year Rate 01 Use Calculation for use 1n estimated monthly Rate of Use Charge) Average Daily Use for the prior veal 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 Demandabove Max-imum Day Demand _ 305,000 gallons Monthly Excess Maximum Day and Hour Payment Calculation 115 mg X $62, 674 $ 7,242,01 (Maxim day) ,305 mug $29, 450 8, 982 . 2 (Max t hour) Total `m1, 224.26 Monthly l Rate of Use Paymient (Total Divided 121= $1, 52.02 -17- A. The annual oavment calculation will be computed on the basis of the current near maximum usacre rates or the average of the maximum usaae rates of the most recent three Fiscal Years, whichever is areater. In Examle A, the current near exceeds the averaae of the most recent three Fiscal Years. Current Year Rate Of Use Calculation Average Daily Use for the 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 Day 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 Hoer 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 Dav 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. aff-a Annual Payment Calculation FY '89 Rates (Bcased cn Cur -rent-, Year Data) 26 ,000 X .93114 $24,372.40 .1288 mg X $62,974 8,111.05 .3200 mg X $29,450 9,424.00 12 X $25 X 1 300.00 Total Annual Payment $42,207.45 Previous B-illings for October through August Usage 36,707.42 October Billing for September Usage $ -,;,500.03 Bff ample of comnutation when the average of the maximum usage rates of the most --ecent-three Fiscal Years is areater than the current Fiscal Year rate of -use: Current Year date of Use Calculation Average Daily 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 Day Demand above Average Daily Use 128,766 gallons Maximum Hour Demand above Maximum Day Demand 320,000 gallons Fiscal Yea-- Average of Most Recent Three Years Maximum Day Demand above Average Daily Use Ma: ;_mum Hour Demand above Maximum Da v Demand I _19- CURRENT FY 128,766 320,000 FY Py 1988 1987 130,234 130,000 323,010 325,000 Three year average -LE Ma .i���um Day Demand above Average Dally Use 129,670 ire w year average of Maxi'mum Hour Demid 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 F ' 9 dates (Based on average of most recent three years) 26,000 X 937 ,1297 mg X S62,974 ,3227 m 29, 5 12 25 X 1 Total annual Payment e t Previous Billings for October through August Usage October Billing for September Usage 8. Effective gate of contract ,2 ,372.40 ,167.73 9,503._52 300.00 2,3.65 5,636.23 8.1 The effective gate of this contract for all purposes will be prl1, 1939 subject to the provisions of section 8.2 hereof. .2 Effective with and only with the April 1, 1989, billing, Fort north will conduct a one-time only mid -year settle -up, as Provided for in this section. Fort Worth will compare the actual whole sale ;water payments made 'Customer for the partial Fiscal Year period between October 1, 19 3, and April 1, 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 It .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, Clustomer wili pay Fort Worth that deficit amount as part of the April 1, 1989, billing. Per annum interest charges required by section 6-5,6 herein wi-11L not be applicable to any payments or credits made under this section, 0 Life of contract 9.1 phis contract shall expire on December 31, 2010, and may be renewed on terms mutually agreeable to the parties hereto. 10. Riahts-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 corporate Iii-nits 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 othe-- property owned by Customer when reasonably necessary to the performance of essential governrentalduties by Customer. For -IC, Worth sha-11 grant, without charge to C-ustoter , 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 facilit.i'es within Fort Worth to provide water to Customer. Upo-n notice from Fort Worth and at Customer's expense, Customer will move such water mains or facilities when located in such street right-s-of-way or other property owned by Fort Worth when -2 1- reasonabily 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 -I L LI - _L J_ nature performed within Fort Worth, but neither party hereto will be required to resto-re the other's 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 other's easeratents and rights -of -way in order to prevent further conflicts insofar as is reasonably practicable. ii. State Helth DeDartment ApDroval 11.1 `he Customer vstem shall be approved by the as State Department of health during the life of this contract. If at any time the Custoimer System is not- approved by the Texas State Department of Health, or if Customer does not have an active cross -connect ion 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 of Health. 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 othen,_- governmental or corporate entity outside ol" the certificated area of: Customer, connumonly known and referred t c o as its servIe area, w�L -shout tie eress written xp corlsen't (,-)f Fort Wo-irth, 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 ether than as a part of ,its nor-mal offering and supply of eater to existing and future subscribers to its water system without the recommendation of the Water System Advisory oaittee and express written consent of port Worth. lag Sanitary Sewer Facilities 13,1 The Customer covenants that adequate sanitary sewage facilit:Les - eetinc state health department requirements will be prodded for users of water obtained from the Fort worth System.. Z. Additional Parties .l Fort worth will use its best efforts to provide an adequate water supply for all of its custo :ers. Prior to the approval of additional wholesale customers, Fort Worth will provide reasonable assurances that the projected fire -year water demands of the then -existing wholesale customers so served and the proposed additional customer can be adequately fulfilled. Fart Worth will consult with the Water System advisory Committee prior to contracting with additional. parties. 15, Water Svstem Advisory or€amit.tee 15, f Customers : o. ern ing body shall annually appoint a. representative to be a voting member of the eater System Advisory Corwrtiittee, which (Zommi-t-tee 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, ad.,i-i-inistration, budgets, and additional wholesale customers, whether same be wholesale customers of Customer or Fort Worth, Sal- CoaL-nittee, at its first meeting, shall elect a Chairman, rice-Cha'Lrman and Secretary. The Committee may establish bylaws governing the election of officers, meeting dates and other matter pertinent to its functioning. M Svstem Access Fees 16,1 In the event Fort Worth adopts an ordinance which will Drovide for a water System Access Fee fo-y- new development within the jurisdictlional limits of Fort Worth, Customer agrees to pay to Fort Worth on -a cruarterlv basis a charge for each new or enlarged connection for water service made within Customer's jurisdl'ction 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 andVor 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 to this section will be placed in a separate account to be used exclusively for treat tent plant, mietering and system. general bene-1it improvenients, and will not be used for operation and maante nance expenses of distribution system improvements. Such funds and all interest earned thereon will be considered a "contribution" for ratle setting purposes only. -24- 16.3 Cust-omer shall provide to Fort Wofth information pertaining to bul'Idi* ng per its as such permits relate to the making of new and/or e-niarged connections within Customer's jurisdiction with each quarterly payment required in this section. Customer further aarees to provide such other information relating to new and/o_-r 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 -iurisdl--tion. J 16-5 Follow-ina the establ-is hment of a wate-- System Access Fee, there will be created and established a Water System Access Fee Advisory Coriamittee whose purpose shall be to consult with and adv1se Fort Worth, through the Water System Advisory Committee, on nutters pertaining to the methodology of calculating access fees. Said Committee shall be composed of nine (9) members, three (3) of which shall be me-mbers of, and appointed by, the Fort 14orth City Council. The remaining six (6) members shall be merntbe_-s of the City Councils of Customers' and shall be appointed by the Tar -rant 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 conimnifttee 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 ad -ministration of such charges throug-11 the Water System Advisory Cormirwi-ttee. !6.6 It Is understood by and between the parties that the system access fee referred to with"Ln this section may be construed or fee under interpreted to be an impact fee or a capital recovery -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 is adoption and/car implementation. The parties agree and jointly represent and covenant that it is not their intent to require an illegal or inappropriate action on the part of any participant to 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. `1'o the extent that this agreement requires any party t—o 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 entl re ty . 17. Terrmination l i s 1 phis agreement may be terminated in whole or in part by the mutual consent of Customer and Fort Worth. otwithstanding 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 n of this agreement by either party in the manner set forth in this paragraphs Fort worth shall del finer to Customer ninety (9 ) 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 seasonable description of the breach. if within said ninety 9 days Customer shall fail or refuse to cure such material breach t-- the satisfaction of Fort north, then and in such event, Fort Worth ha i have the right, with six months addit ona . advance written nod Lce to Customer and without any liability whatsoever on the part of Fort Worth, to declare this agreement terminated, in the e*gent of termination of this agreement, all rights, -26- powers, and privileges of Customer hereunder shall cease and terrain ate and Customer shall make no claim of any kind whatsoever aaJ_nst Fort worth, its agents or representatives, by reason of such 'term � a ti on or any act incident thereto, provided Fort Forth acted reasonably and such termination was not unreasonable, arbitrary and capricious. Fort Worth shall advise Customer in writ.ing im?edlately upon acceptance of the cure of any breach. 17,2 In the event Fort Forth shall ration the use of water throughout its corporate limits or issue water conservation Measures o--r restrict the use of water in any way as provided for i °n erection 1 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 Custo ter, Customer shah, e 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 walich the Custo-mer shall cure said breach. If Customer fails or refuses to cure said breach within the stated time, then and in such event, aster sip ( 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 t r .natedm 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 ter ination or any act incident thereto, provided Fort Worth acted reasonably and such terminations was not unreasonable, ar i tra v and capricious. l7 . 3 _rres ect; ve of whether or not a breach hereof is a maKt __ ri.al h'�'ed-Ch or a non- material breach, and irrespective of any err of such bre h, a second breach of the same nature violating any term or con -tion herein shall entitle Fort Worth, after six Un,i months �r t ten not�ce pro ��ided to Cup to per and. without any -7. liabilitv whatsoever on the part of Fort Worth, to declare this agreeritent 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 term -inaticon 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 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 operation and maintenance of any metering facility; f> Failure to provide Fort Worth rights -of -way as required herein. `7-5 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 t601 days advance written notice of such default. if Customer fails to cure such breach, default or failure, then F-ort Worth shall give Customer written notice of such failure to cure and mayr surcharge Customer Five Thousand -28- DoIlLars 1$5,000) per month until such timne as Customer cures such non-r.-iater: al 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 ti:rtie after such material breach, default or failure by Customer shall not be determined to be a waiver by For-, Worth of any --rights to terminate this agreement for any subsequent material breach, default or failure. 1.7.7 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 Custommer of any rights to terminate this agreement for any subsequent material breach, default or failure. 18. Ownershio 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 shall same create any other rights or _'Liabilit; les and Customer payrrients (whether past, present,or future) shall not be construed as granting Clustomer Dartial 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 Worths sole responsibility is to provide to Customier water of a quality which meets state and federal drinking water standards. Each party -29- hereto agrees to save and hold the other party harmless from all Clai--nis, 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 mtade for the benefit of any third party. Fort Worth takes the responsibility as between parties hereto for the proper trea-went, 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 Wort-h against any and all suits or claims for damages of any nature arising out of the performance of such contract. Force Maieure 19m1 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, so far as it is affected by such force majeure, shall be suspended during the countinuance of the inability then claimed, but for no longer per iod, and such party shall endeavor to remove or overcome such inability with all reasonable dispatch. -30- 1',31,2 The term "force majeure", as employed herein, shail mean acts of God, strikes, lockouts or other industrial disturbances, a--ts of Public enemy, orders of any kind of the goveriunent of the U4 1 nSt ited States or the ate of Teas, or anC' y -LVor military authori-ty, 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 causes not reasonably in the control of the party claiming such inability. 20. Notices . any noti ce, -ice, communication, request, reply or advice herein 2 0 1 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 -Lhe Darties hereto shall indicate in writing any change that may occur in such respective addresses from time to time. -3 1- InsDection 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. W Miscellaneous 22.1 ;rt 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, t1his 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 fro nn the Fort Worth System at a rate of usage in excess of that requiLred for the usual peak requirements of Customer. It is agreed tha"t, 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 -'-'-he occurrence of an emergency condition. I ri any event, the volumie, and Rate of Use Charges for all water del' vered shall be due and payable as described elsewhere herein. -32- 22,3 At the request of the Director, Customer agrees to furnish watel- to areas and premises situated adjacent to the boundary of Customer and within the boundaries of Fort Worth. The metered quan1--ilLy of water used in this area each month by Fort Worth shall be the total of all individual customer meter readings. At t'he option of Customer or Fort Worth, a .aster meter may be installed where Practicable at the exoense 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 -Davnnent- 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 Cust-cmer agrees to abide by any changes in this agreement made necessar-V by any new, amended, or revi-sed state or federal regulation. 22.,7 Upon prior notice by Fort Worth, any duly authorized employee of Fort Worth bear-ing p-r-oper credentials and idea l[lifcication shall notify Customer of need for access to any premises located within Customner's city limits or served by Customer as may be necessary for the purpose of inspections and -33- observation, measurements, sampling and testing and/or auditing, in accordance with the provisions of this contract. Custonter may elect to accoinpany the Fort Worth representative. To the extent permitted b-t/ law, Fort Worth agrees to indemnify Customer for any damage or injury to person or property caused by the negligence of such duly aut-horized 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 I i-- may be entered upon it in accordance with applicable law cadU -L in any court having jurisdiction thereof. All costs of arbl't-1-ation shall be considered a System Cost. 22.9 If requested by the Director, Customer shall provide quarterly the following data: -34- A. Actual number of customer accounts consuming directly or indirectly from the (-'ustjai er System within its service area; B. Classification of domestic and nondomestic accounts within its service area by number and percentage of accounts consurning directly or indirectly from Customer System within its service area. Cg 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. 2 2 a 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 hereto agree that any such regional water authority may, by may of 4- assigranient of this agreement, ass and receive the sa-,,nie obligations and responsibilities, the same benefits as Fort Worth; further, Customer hereby grants to Fort Worth the - 3 5; - 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. 4751 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 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. 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. A T EST h oar, City Secretary, City of Fort Worth APPROVED AS TO FOR MI PUND LEGALITY: itv A -orney, City of Fort Worth t/C D at e AP;MROV RECOMY7LEND WA Rich?ad W. Sawey, Dire9160-r City, of Fort Worth Water Department ATTES /Z 6 City Secretary CITY tOE FOR OR Bv: Ruth Ann McKinney Assistant City Manager City of Fort Worth CITY OF RICHLAND HILLS P --l- PkOVEP AS TO FORM AND LEGALITY: / r 4 City Aty Date: i APPROVAL RECOMMENDED: CITY OF RICHI�ND Hl-LLS By: Mayor 0- P b/ Contriat Authoil"'U'atlan n 2084-412 T— g : W 9 WARCO 1 6 ro Q *TRIWTY souLEVARD It C— T ,xss �• _ �pppp. \ y31 r G i . •.n r � y as-ooaoo � I xR. tt .� I a:a eia I 6 I I jR \ V Y b•• I 4� lA y or s I na I +— w FORT ♦♦"I'm C/7Y LAN 3 , y Ia Q J I 1J Saa. 1Q I O _ N W 1 e� 1 PEBEW R'P.vz ♦ '♦del x 11 7R 2 E ` nl � � ! 6'BO j 4 ppIh� � � - ,. I m \ 12 + 1 2 R }. ,j ,. i LL DRIVE I 3 • �6-PN99 4 RV 2 0. 2Ri \ JSTREF 1 � _ c c as S e b: x `�• J 1 Jrq• • I. J fw -- — ----- — --- — .20' T E SR t Z� + �) H N: O DRIyE (PRIVATE) Q R'P,C ♦ j e m� • N �z. m 6R .I Fl 9f.STONE $ DRIVE '-I (PRIVATE) t (D• D. + d ax Il4 I I yi =�r-4k •b1 Ric -I �; \ \ \ I � �I l + _10 QI v n �e 3 u