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FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. yam% 51
This Agreement entered into this 28th day of September
between the City of Fort Worth and Richland Hills
WHEREAS, the City of Fort Worth and Richland Hills
Mare, aG, /963
a contract for water service dated 9c-teb= 20, 1-984-
Fort Worth City Secretary Contract No. 11'751
3
and
, 1987, by and
entered into
, same being City of
WHEREAS, the City of Fort Worth and Richland Hills are desirous of amending
said City of Fort Worth City Secretary Contract Number V/ 7S/ ;
NOW, THEREFORE, the City of Fort Worth and Richland Hills agree as
follows:
1.
Paragraph 5, Section 3(b), is hereby amended and, after having been so amended, shall
read as follows:
f'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 7 % -S / not amended hereby shall be unaffected
hereby and shall continue in full force and effect.
ATTEST: /? CITY OF FORT WORTH
City creta y
APPROVED AS TO FORM AND LEGALITY:
ity At orney
Date: % I-
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
Date: / - / -
By:
V
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Contract Authorization
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CITY OF Richland Hills
By: //��.�
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City of Fort Worth IV
IWASTER EILE431
ACCOUNTtN0.2 Mayor
and Council Communication
FRANSPO PUBLIC
WORKS.
WATER ADMINI,11R8Tt+)�1 i REFERENCE SUBJECT: AMENDMENT TO THE WHOLESALE PAGE
NUMBER
11-10-87 **c-10646 WATER CONTRACTS
Recommendation
- - - - It ---Is- recommended that the City Council authorize the City Manager to execute
cantrAct- amendments with the wholesale water customers, a sample of which is
which provides that the Touche Ross rate methodology and wholesale
_-_-____water. rates be implemented in fiscal year 1988, and the 1987 Touche Ross
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. jIn 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.
APPROVED >Dv
RAM:wI CITY CDU C11
SUBMITTED FOR IHL
CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY
OFFICE BY: Ruth Ann McKinney APPROVED
R HE(DESCRIBE)
CRIG.NATING OTHER
DEPARTMENT HEAD: R1CY12TC1 SaWey rlTv c;FrRFTARY
FOR ADDITIONAL INFORMATION City $acre arty of the.
CONTACT: S . N unn- 8 2 0 2 Cky of Fort `h5ar.l_ Texas
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