HomeMy WebLinkAboutContract 16112CITY SECRETARY
CONTRACT %. &114L
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 4947
This Agreement entered into this 28th day of Septemher 1987, by and
between the City of Fort Worth and City of North Richland Hills.
WHEREAS, the City of Fort Worth and City of North Richland Hills entered into
a contract for water service dated March 19, 1964, same being City of Fort Worth
City Secretary Contract No. 4947;
and
WHEREAS, the City of Fort Worth and City of North Richland Hills are desirous
of amending said City of Fort Worth Secretary Contract Number 4947;
NOW, THEREFORE, the City of Fort Worth and City of North Richland Hills agree as
follows:
1.
Paragraph 5, Section 3(b), is hereby amended and, after having been so amended,
shall read as follows:
"b. Commodity Charge and Rates of Use Charge.
"Except for fiscal year 1987-1988, the rate shall be reviewed and
adjusted every five (5) years beginning in fiscal year 1988-1989. The cost
related to the production and transmission function of distributing treated
water to the Fort Worth city limits in wholesale quantities plus a service
charge shall be determined in accordance with the methods herein. Such costs
shall be projected through the City of Fort Worth fiscal year 1991 to establish
the fair rate for water to be charged during the period October 1, 1988, to
September 30, 1993. The adjusted rate shall be made effective October 1, 1988.
A similar review and rate adjustment shall be made for each succeeding five
year period for the term of this contract. For the rates for the five (5)
years beginning 1988-1989, the Touche Ross study dated September, 1987, and
computer model included therewith shall be used by Fort Worth to project the
rates to be charged for said five (5) year period.
"For the period October 1, 1987, to September 30, 1988, the
rates indicated and the detail methodology used in the study conducted by
Touche Ross & Co., dated September 1, 1987, will be adopted."
2.
Every other term, condition and/or covenant contained in City of Fort Worth
City Secretary Contract Number 4947 not amended hereby shall be unaffected hereby
and shall continue in full force and effect.
ATTESeeire-e7t-
APPROVED
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City AS TO FORM AND LEGALITY:
_..City Attofney (>
Date: t 2-
ATTEST:
,-
C" y Secretary
APPROVED AS TO FORM AND LEGALITY:
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CITY OF FORT WORTH
BY: //k, /
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Contract guthoriyzation
Date -"
CITY OF NORTH RICHLAND HILLS
By: k%,t- ��
ORDINANCE NO. 1491
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS, that:
1.
The Mayor be, and is hereby, authorized to execute the attached
document entitled "First Amendment to City Secretary Contract No. 4947" as
the act and deed of this City.
PASSED AND APPROVED this 28th day of September, 1987.
�� 6�'
Mayor
ATTEST:
Ty Secretary
APPROVED AS TO FORM AND LEGALITY:
Attorney for the City
CERTIFICATION
I, Patricia Hutson, Assistant City Secretary of the City of North
Richland Hills, Texas do hereby certify that the foregoing is a true and
correct copy of Ordinance No. 1491 approved by the City Council of the City
of North Richland Hills at a regular meeting held on the 28th day of
September, 1987 as the same appears in the records of this office.
In testimony whereof, I subscribed my name hereto officially
under the corporate seal of the City of North Richland Hills, this the 6th
day of October, 1987.
Patricia Hutson, Assistant City Secretary
City of North Richland Hills, Texas
MASTER FILL - 1
ACCOUNTLN9.2 Mayor
IRANSPORTATIONJPUBLIC. WORKS.&
City of Fort Worth, Tee
40
and Council Communication
HATER ADMINIS TR8�4�r1 i REFERENCE SUBJECT: AMENDMENT TO THE WHOLESALE PAGE
NUMBER
11-10-87 **C-10648 WATER CONTRACTS i ar
-- Recommenaation
wT - -It--i-s-recommended that the City Council authorize the City Manager to execute
- contract- amendments with the wholesale water customers, a sample of which is
which provides that the Touche Ross rate methodology and wholesale
rates be implemented in fiscal year 1988, and the 1987 Touche Ross
- - -wholesale water rate study and the computer model be used to project rates for
the five-year period beginning in 1989.,
Discussion
Beginning in May, 1987, the Fort Worth Water Department staff and the Wholesale
Water Advisory Committee met to select a rate consulting firm, discuss
potential wholesale water contract revisions, and review the 1987 Touche Ross
Wholesale Water Rate Study. As a result, the Water Department staff proposed,
and the Mayor's Council approved, a contract amendment which implements the
rate methodology and rates of the 1987 Touche Ross Wholesale Water Rate Study
in fiscal year 1988. ;In addition, the amendment provides that the Touche Ross
rate study and computer model will be used by Fort Worth in fiscal year 1989 to
project rates to be charged` -for the five-year period beginning in 1989.
The contract amendment -is viewed by the Fort Worth Water Department staff as a
first -step in renegotiating the wholesale water contracts which expire in the
period from 1993 to 2002. It is expected that the amendment would be a
temporary measure prior to revision of the wholesale water contracts in 1988.
Although the amendment is a temporary measure, it benefits the City in two
ways:
1) It immediately requires a rate review in 1989, whereas, the current
contract allows rate adjustments only every five years; and
2) It serves as an inducement to renegotiate the contracts for the long-term.
As of November 4, 1987, nineteen of the twenty-four billed wholesale water
customers have signed the contract amendments. Upon receipt of signed contract
amendments from all wholesale water customers and execution of the amendment by
City Council, the Fort Worth Water Department staff will proceed with contract
negotiations.
RAM:wl
SUBMITTED FOR IHt
CITY MANAGER'S
OFFICE BY:
ORIGINATING
DEPARTMENT HEAD:
FOR ADDITIONAL INFORMATION
CONTACT:
Ruth Ann McKinney
Richard Sawev
S. Nunn-8202
DISPOSITION BY COUNCIL:
APPROVED
- OTHER (DESCRIBE)
APPROVED DY
CITY COUNCIL
PROCESSED BY
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