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HomeMy WebLinkAboutContract 6883CITY SECRETARY CONTRACT No.-," - CONTRACT FOR WATER SERVICE U.L"r r.-r THE CITY OF F0RT WORTH, TEXAS CITY OF ARLINGTON, TEXAS THE STATE OF TEXAS _ •. DOUNTY OF TARRANT x Acoirs CONTRACT AND AGREEMENT made and entered into this �% day of 19�, by and between the City of Fort Worth, a municipalporation located in Tarrant County, Texas, acting by and through its duly authorized City Manager, and the City of Arlington, a municipal corporation located in Tarrant County, Texas, acting by and through its duly authorized City Manager, 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 fuxnish and deliver treated water, both within and without the corporate boundaries of the City of Fort Worth; and, WHEREAS, the City of Arlington has provided at its own expense and now owns, operates and maintains a water supply system and a distribution system; and, WHEREAS, the supply system of the City of Arlington is expected in the future to be unable to meet the total needs of its residents; and, WHEREAS, it is deemed to be in the best interest of both the City of Fort Worth and the City of Arlington that said cities do enter into a mutually satisfactory agreement by means of which the City of Arlington may obtain a supply of treated water at a reasonable rate; and, WHEREAS, by the execution of this contract, neither the City of Fort Worth nor the City of Arlington will surrender any of its rights to the ownership and operation of its present water production and distribution facilities; 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 the City of Arlington do hereby covenant and agree as follows: -1- CONTRACT FOR WATER BETWEEN CITY OF FORT WORTH, AND THE CITY OF ARLINGTON, TEXAS COUNTY OF TARRANT I THISCONTRACTANDAGREEMENTmade and entered into this day of , 19 , by and between the City of Fort Worth, a municipal corporation located in Tarrant County, Texas, acting by and through its duly authorized City Manager, and the City of Arlington, a municipal corporation located in Tarrant County, Texas, acting by and through its duly authorized City Manager, - W I T N E S S E T H WHEREAS, the City of Fort Worth tics provided at its dwn`expense,-a 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; and r WHEREAS, the City of Arlington has provided at its own expense and powow owns, open d u►ai,ntains a. Water..sup 1 s stem and a distribution system; and, WHEREAS, the supply system of the City of Arlington is expected in the future to be unable to meet the total needs of its residents; and, WHEREAS, it is deemed to be in the best interest of both the City''", of Fort Worth and the City of Arlington that said cities do enter into a mutually satisfactory agreement by means of which the City of Arlington may obtain a supply of treated water at a reasonable rate; and, WHEREAS, by the execution of this contract, neither the City of Fort Worth nor the City of Arlington will surrender any of its rights to the ownership and operation of its pre. od. C 4:4i b t oA facilities; 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 the City of Arlington do hereby covenant -and agree as follows: The City of Fort Worth agrees to furnish and sell approximates 5.5 MGD of treated water to the City of Arlington through the City of Arlington existing metering installation located at 6849 Hart Street, Arlington, Texas, under the normal operating pressure prevailing in the east side pressure plan of the City of Fort Worths water distribution system. The City of Arlington. agrees to begin to take and to continue to take approximately 5.5 MGD of water at its existing meter during any period when the water level in Lake Arlington is below 543 feet above mean sea level. It is further agreed that the City of Fort Worth is not obligated to furnish water during warm weather peak usage conditions in July and August except any daily quantities determined to be surplus to the needs of the City of Fort Worth by its Water Director. The City of Arlington may construct an additional metering station at its expense in the vicinity of Sandy Lane and East Lancaster to withdraw a quantity of water from the City of Fort Worth water system that may be available at this location as determined by the Director of the Fort Worth Water Department. Upon request, the Director of the Fort Worth Water Depart- ment shall advise the City of Arlington as to the anticipated quantity of water estimated to be available for use by the City of Arlington at that location at the estimated time of completion of a new metering installation by the City of Arlington. If at any time during the tern of this contract the furnishing of water by the City of Fort Worth to the City of Arlington shall be determined by the Water Department Director of the City of Fort.Worth to be detrimental to water customers within the City of Fort Worth, then and in that event, the quantity of water furnished to the City of Arlington may be reduced by the City of Fort Worth at its election. The maximum rate at which water is withdrawn from the City of Fort Worth system by the City of Arlington shall be 5.5 MCD unless a higher rate is authorized by the Director of the Fort Worth Water Department and shall be regulated by a rate of flow controller, pumps or other approved methods. If the City of Fort Worth shall ration the use of water throughout said City or issue water conservation measures or restrict the use of water in any way, the City of Arlington, shall, at its option, either: 1. discontinue taking water from the City of Fort Worth under this agreement during the period of rationing, water conservation or restriction by the City of Fort Worth- o 2. institute and apply the same rati6ffMg—,Tbff#M4tUWI measures or restrictions to the use of water by the MR, customers of the City of Arlington, so long as any part of the total water supply of Arlington is beiog furnished by the City of Fort Worth..' ��Mkmim All water furnished under this agreement shall bemeasuredby one or more suitable meters equipped with continuous flow -chart recording devices, rate of flow control devices and transmitting and receiving equipment. The metering installation shall be installed and operated by the City of Fort Worth with the City of Arlington paying to the City of Fort Worth the cost of the meter, recording and transmitting and receiving equipment, and..-....,.., appurtenances plus the installation and maintenance cost thereof. The existing metering installation located at 6849 Hart Street shall be modified to provide continuous flow -chart recording devices, trans- mitting and receiving equipment so that instantaneous, daily and monthly 10 quantities can he recorded at the South Holly dispatch room of the Fort Worth water system. The location of any additional meter shall be mutually agreed upon by and between the parties hereto. The meter or meters. shall not be moved or relocated except by mutual consent. Each city shall have the right to test the meters and flow - trollers 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, without giving notice to the other party of this intention to make such a test, and thereafter giving reasonable opportunit to the other party to have representatives participate in such test, change or adjustment. For these purposes, the meter and control equipment will be properly sealed, and the seal shall not be broken except in the presence of representatives of all parties or following due notice to all parties. The City of Arlington or the City of Fort Worth at its own ex n may install.a check meter to check measure the volume of water passing through the master meter, provided that if such check meter is installe , the same rules and regulations relative to its operation, maintenance, and reading shall apply as to the meter being testedg--A- METER READING AND BILLING The City of Fort Worth will read all meters provided for herein at monthly intervals and +he parties to this agreement shall have free access to read these respective meters daily, if either party so desires. It shall be the duty of the parties to give immediate notice, each to the other should any meter be found not functioning, and upon such notice repairs to such meter shall be made promptly. Whenever it is evident that a meter has not regis- tered accurately for a period of time, the quantity used shall be estimated ,&.accordance with the usage under similar conditions for an equal period. The meter readings and rates of flow shall be added together when wore than one meter is in service and the sum thereof shall be used for the - purpose of calculating charges for water used. 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. The City of Arlington agrees to appropriate annually sufficient funds to pay the monthly charge for water service. The water charge to be paid by the City of Arlington to the City of Fort Worth shall be deemed a current expense of the City of Arlington for each year of this contract as such monthly charges become due and payable., The monthly bill shall be Worth Water Department on or before monthly billing date, the 15th day immediately October 1. to September "Maximum hour rate" or the "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. "Raw water charge" is a part of the commodity charge and represents the rate per 1,000 gallons charged by the Tarrant County Water Control and Improvement District No. 1 to the City of Fort Worth for raw water to be sold to the City of Arlington plus 16% of said rate representing Fort Worth water system losses. "Rate of use charge" is the fixed annual charge determined for the maximum day and the maximum hour rates of use. "Base rate" is composed of the commodity charge, and the rate o 5. RATES: The" annual rate cliarged-by the City of 'Fort Worth for renderlung wa s ce under the terms of this contract shall be related to the annual and peak volumes used and shall be based upon the functional distribution of the; _,, total annual cost incurred in furnishing treated water to its customers, providEN that nothing herein shall be construed as contemplating an annual rate of less than the regular City of Fort Worth water only rate then in force, plus 10 perc" of said rate, plus the raw water costs. .- 2. Rates for annual and peak volumes used The annual rate to be charged for water shall include the proper proportionate parts of the maintenance and operation cost as related to they production and transmission facilities of the total Fort Worth water system (i.e., commodity charge) 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 the City of Arlington, and the raw water costs. .The rates in effect for the initial period of the contract which shall terminate September 30, 1972, have been computed to be as follows: a. The commodity charge shall be 19.1 cents per 1,000 gallons withdrawn by the customer. b. The annual rates of use charges for maximum day usage shall• be $15,810 per M.G.D. and maximum hour rate of usage in excess of the maximum day shall be $7,070 per M.G.D. exce�ten that when the City of Arlington withdraws water for only months or less of the fiscal year but not including July August, the annual rates of use charges shall be reduced by. two -twelfths. C. The service charge shall be $25.00 per month per, me !'*imnum rate r The minimum annual rate charged cities for treated water in whole- sale quantities is the regular City of Fort Worth water only rate_ then in force, plus 10 percent of said rate, plus the raw water: costs. The current minimum rate for cities located outside the Tarrant County Water Control and Improvement District No. 1 is shown as follows: Regular Rate plus 102 plus Gallons per Month 1.2 Cents per 1000 Gallons First 15,000 $0.620 ., Next 60,000 .518 Next 30011000 .489 Next 562,500 .474 Next 937,500 .327 aver 1.875_000 The monthly meter ch 4. Adjustment of ra Gallons 1,000,000 109000,000 30,000,000 165*000,000 be ,$25.00 per month Charge Per Month $ 474.15 2,824.02 7.904.02 42,194.02. �r meter. a. Raw water^ The amount charged for raw water shall be increased or decreaseA proportionately when the raw water cost paid by the City of For+ Worth for water available for treatment and sale to the City ' of Arlington is increased or decreased. At the time of executi4 of this contract, the rate, including 16% for system losses to the City of Arlington is 10.4 cents per 1.000 gallons. The portion of the raw water charge which reflects system losses shall be adjusted in the manner set out in sub paragraph b. below in accordance with actual experience during the preceding period. If the City of Arlington enters the Tarrant County Water Control lm and Improvement District No. 1 and the raw water rate then being paid by the City of Fort Worth to the District for water furnished under this contract is reduced as a result thereof, the raw water rate then being paid by the City of Arlington to the City of Fort Worth hereunder L 4Aa:k_bg .x_' ced "in the same proportialaw Makt, b. Commodity charge and rates of use charg 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, 1970-71 and 1971-72. The cost related to the production and transmission function of distri- buting treated water to the Fort Worth city limits in wholesale _- quantities plus a service charge shall be determined in accor- dance with methods herein. Such costs shall be projected through the City of Fort Worth fiscal year 1975 to establish the fair rate for water to be charged during the period October 1, 1972 .` to September 30, 1977. The adjusted rate shall be made effec- tive October 1, 1972. A similar review and rate adjustment shall be made for. each__. succeeding five year period for the term of the contract. PAYMF.r1T FOR Payment of charges to the City of Fort Worth for water used by the City of Arlington shall be made 1. Minimum annual The City of Arlington agrees to pay the City of Fort Worth the annual rate of use -charge based on a withdrawal rate of not less than 5.0 M.G.D. for ten months each year (not including July and August). When an additional metering installation is provided at the request of the City of Arlington, the minimum annual payment shall be based on a withdrawal rate of 7.0 M.G.D. by the City of Arlington provided that upon agreement by the parties hereto any other withdrawal rate may be established at that time. 2. Minimum monthly charge ov . The minimum monthly charge shall be one -twelfth of the minimum annual rate of use charge, plus the meter service charges. the minimum monthly payment shall be $5,514.58, ($15,810 -x 10 z 5.0 z 1 + $25.00),.: 12 - 12 for which payment the -City of Arlington shall be entitled to withdraw water at the rate of 5.0 M.G.D. from the Fort Worth system during the months September.". through June each fiscal year. 3. Monthly payment The monthly payment shall include the minimum charge plus the �"" commodity charge multiplied by the quantity of water withdrawn from the Fort 'Worth system during the month.. For example, the monthly charge for 100,000,000 gallons is shown as follows: Minimum charge $ 5,489.58 100,000 x 0.191 19,100.00 $25.00 x 1 25.00 Total $ 24.614„�&° 4. Annual payment The actual total annual payment for water by the City of Arlington' shall be related to the annual and peak volumes used by the customer during the fiscal year as determined by meters, flow recording devices or other - approved methods except as provided by Section 5.1 and 5.3 above. The September bill shall reflect any necessary adjustment in the annual payment. due to the actual rates of withdrawal from the Fort Worth system. ..._._, If the initial period of use of water by the City of Arlington under 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 is shown using assumed quantities as follows: 1. Example 11 - As an average of 5.5 M.G.D. used each month except no usage` July and August. (Monthly payment equals $5,514.58 plus $0.191j per 1,000 gallons used.) Present Usage Monthly Fort Worth Rate Month M.G. Payment Plus 10% October 170.5 $38,080.08 $430616.02 November 165.0 37*029.58 42,219.02 December 170.5 38,080.08 432616.02 January 170.5 38,080.08 43,616.02 February 154.0 34,928.58 39,425.02 March 170.5 380080.08 43,616.02 April 165.0 373,029.58 42,219.02 May 170.5 38,080.08 43,616.02 . June 165.0 37,029.58 420219.02 July 0 % 514.58 .25.00 August 0 5,514.58 25.00 Subtotal 1,502.5 $3470446.88 $384,212.18 `165.0 78,984.32 42,219.�2 Total 1#667.5 $4263,431.20 $426,431.20 Maximum Day 5.5 M.G.D. Maximum Hour 5.5 M.G.D. Usage per year 1#667.5 M.G. Annual payment based on peak volume charges 0.191 x 1,667,500 = $318,492.50 $15,810 x 5.5 x 10 72,462.50 12 25 x 12 = 300.00 5391_255.00 r Present Lake Usage Monthly Fort Worth Rate Level Month M.G. Payment Plus 10% 543 (-) October 170.5 $ 38,080.08 $ 43,616.02 543 (-) November 165.0 37*029.58 42,219.02 543 {-) December 170.5 38,080.08 43,616.02 543 (-) January 170.5 38,080.08 43,616.02 543 (-) February 154.0 34,928.58 39,425.02 543 (-) March 170.5 389080.08 43,616.02 543 (-) April 165.0 37,029.58 42,219.02 543 (4) May 15 82.5 21,272.08 21.264.02 543 (4) June 0 5,514.58 25.00 543 (-) July 10 60.0 --16,974.58 15,549.02 543 (-) August 100.0 24,614.58 25.709.02 Subtotal 1,408.5 $ 329,683.88 $360,874.20 543 (-) September 30 165.0 73,409.34 42,219.02 403�093.22 .. $403,093.22 Maximum Day .., Maximum Hour 5.5 M.G.D. Annual Use 1,573.5 M.G. Maximum Day 3.0 M.G. (August 10) Maximum Hour 5.0 M.G.D. (August 10) $0.191 a 1,573,500 _ $300,538.50 $15,810 x 10 a 5.5 72,462.50 i2 $151%810 x 2 a 3.0 = 7,905.00 l2 $7,070 x 2 a 2.0 2,356.67 12 $25 a 12 300.00 . $3839562.67 Annual payment based on Fort Worth rate plus 10% is $403,093.22. Therefore, the total September Payment is $403.093.22 - 329 683 28.= 738409.34. 7. EFFECTIVE DATE OF CONTRACT FOR BILLING It is agreed that the City of Arlington will begin withdrawing water from the Fort Worth system in accordance with the terms of this contract not later than 90 days after the date of execution of the contract by the parties hereto, or later if the water level in Lake Arlington is- z an 543 ,fee ' elevation above sea The effective date of this contract or billing purposes s a e the fifteenth (15th) day of the month After the meter installation is placed in service. The billing for the first month will be prorated according number of days of actual service included in said billing. LIFE OF CONTRACT This contract shall be terminated when raw water is available from the Cedar Creek Reservoir to the City of Arlington as set forth under Section 1 Terms and Conditions, and it may be renewed upon terms mutually agreeab to the parties hereto. RIGHTS OF WAY The City of Arlington shall grant to the City of Fort Worth such easements and rights of way along public highways or other property owned bye the City of Arlington as are appropriate to construct and maintain water apd/or sewer mains and facilities within the City of Arlington to furnish service to the City of Arlington. The City of Fort Worth will move such mains when reasonably necessary upon notice from the City of Arlington at no cost to the City of Arlington. All work done by or on behalf of the City of Fort e Worth under this paragraph will be performed in accordance with specification}, equal to those applying to work of a similar nature performed with the City of Fort Worth. 10. MJNICIPALITY MAY BECOME PART OF THE TARRANT OU*ff . WATER CONTROL AND IMPROVEMENT DISTRICT NMUM QNB. The City of Arlington has not determined to be a part of the Taunt County Water Control and Improvement District lumber 1 at this time, but it is in no way precluded by -this contract from becoming a part of the District at any time in the future. It is understood and agreed that this contract is made subject to the terms of the Cedar Greek project contract between Tarrant County Water Control and Improvement District No. 1 and the City of Fort Worth As it mm exists or may hereafter be amended. If the Tarrant County Water Control and Improvement District No. 1 is required to levy ad valorem taxes to support its Cedar Creek project or other additional raw water supplies-# the City of Arlington shall pay to the City of Fort Worth for water purchased under this contract an additional raw water charge on such basis as the Tarrant County Water Control and Improvement District No. 1 and the City of Fort Worth shall determine to be ratable, considering the proportion of raw water sold by the Tarrant County Water Control and Improvement District No. l for use outside the boundaries of said district lend far use laside such:.boitndavies. The intention of the -preceding paragraph is that in the event a tax is levied within the Tarrant County Water Control and Improvement District No. 1 to support the Cedar Creek project, the water rate to,the City of Arlington -11- will bear the same relationship to as the additional revenue raised by the amount of water used within the used within the District.. the amount of water used in Arlingtf ' taxation within the District bears to .District be4ra.t4.. the amount of water 6 The additional raw water charge for water purchased hereunder during -the calendar year shall be reflected on the December bill from the City of Fort Worth to the City of Arlington and shall be paid with the.. December bill. The City of Fort Worth agrees to, transmit such additions raw water payment to the Tarrant County Water Control and Improvement District No. 1. STATE HEALTH DEPARTMENT APPROVAL The water system of the City of Arlinton shall be maintained at a standard which will meet with the approval of the Texas State Department of Health during the life of this contract. If at any time the water system of the City of Arlington 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 Arlington Water System. 12. RESALE OF WATER. The City of Arlington does hereby covenant and agree wt to seil'%FAU& to any user located within or without its city limits at a rate lower than the equivalent Fort Worth rate.charged a similar customer located within the City of Fort Worth. The City of Arlington agrees to furnish the City of Fort Worth Water Department a complete rate schedule for all City of Arlington water sales. The City of Arlington maintains service connections to the cities of Grand Prairie, Dalworthington Gardens, and Pantego, and is negotiating a contract with.Rey Branch Water Supply Corporation which serves an area within and without the city limits of Arlington. The City of Arlington agrees not to make an additional extension of water lines beyond its boundaries nor permit any additional connections for water outside its city limits (except those described in this paragraph), without the approval of the City of Fort Worth. It is not the intent of this section to arbitrarily prohibit the sale of water by the City of Arlington to miscellaneous small customers located adjacent to or near its boundaries, and the Director of the Water Department of the City of Fort Worth is authorized to approve or disapprove the extension of service by the City of Arlington to such customers outside its boundaries. In the event the City of Fort Worth agrees to any other extension by the City of Arlington of its water service outside its boundaries, the -12 rates to be charged rstaXers by the City of Arlington and the compensation to be paid by it to the City of, inedt and fixed at ' the time such action is taken.' EMERGENCY RATES OF USE During a temporary emergency condition created by an unforeseeable mechanical failure or by unprecedented high rate of water usage such as might result from a major fire or a major break, it may be necessary that the water be withdrawn from the Fort Worth system at a rate of usage in excess of that required to meet the usual peak requirements of the City of Arlington. It is agreed that extra rate of use charges that would normally be applicable shall not apply for such emergency withdrawals. However, the commodity charge forI such watershall be payable,; a -� It is further agreed that if Fort'Worfh experiences sucn snmm r temporary emergency water supply conditions, water .may be released to Fort Worth from the Arlington system upon request by the Director of the Fort Worth Water Department. The quantity of water used by Fort Worth during such "` emer- gency conditions shall be deducted from the quantity of water withdrawn from the Fort Worth system during the month by the City of Arlington before computing the monthly payment by the City of Arlington. . 14. _ FORCE MA 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 the City of Arlington to make payments required,' under the terms hereof, then if such party shall give notioe.. 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 itis 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 ve or:, overcome such inability with all reasonable dispatch. The term "force majeure", as employed herein, shall mean acts of God, strikes, lockouts or other industrial disturbances, acts of public enemy,t orders of any kine of the Government of the United States or the State of Texas, or any civil or military authority, insurrection, riots, epidemics,41 landslides, lightning, earthquake, fires, hurricanes, storms, floods, washoute; droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipe lines or canals, partial or entire failure of water supply, and inability on the part of the City of: - Fort Worth to delivery water hereunder or the City of Arlington to receiv water hereunder on account of any other causes not reasonably within the control of the party claiming such inability,, a.a Ln0zs.ravn1 Mnc.nnvr, aiLcs FLUL ci na Lzvu vJT Luc z=0V='..LJ.rc g.,.ci ing bodies for the parties hereto, ve have caused these presents to be exec in quadruplicate copies, each of which is considered to be an original, and the seals 2L.9m.,res t v r i l-.lie,ht eta:. iu 0 .1 a date above written. " ATTEST: CITY OF FORT WORTH`. AS TO FORM AND LEGALITY: r-- City Attorney APPROVAL RECO] i J�(4. . t C'C�ty'�Secreta`ry APPROVED AS TO FORM AND LEGALITY: By: 1 �. City City ager