HomeMy WebLinkAboutContract 16797CITY SI=CF U AID
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SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 1568 -4, ea , CJ,gq 7
This agreement entered into this loth day of October 1988, 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, on September 28, 1987, the City of Fort Worth and City of North
Richland Hills entered into an amendent of City of Fort Worth City Secretary
Contract No. 4947, same being City of Fort Worth City Secretary Contract No.
16112; and
WHEREAS, the City of Fort Worth and City of North Richland Hills are
desirous of amending said City of Fort Worth City Secretary Contract Numbers
4947 and 16112;
NOW, THEREFORE, the City of Fort Worth and City of North Richland Hills
agree as follows:
1.
Paragraph 5, Section 3B, of City of Fort Worth City Secretary Contract No.
16112 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 1988-1989, the rate shall be reviewed and
adjusted every three (3) years beginning in fiscal year 1989-1990. The cost
related to the projection and transmission function of distributing treated
water to the Fort Worth city limits in wholesale quantities "s a service
OFFICIAL RECORD
_1_ CITY SrCRETARY-
FT.#: N, TEX.
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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, 1989, to
September 30, 1992. The adjusted rate shall be made effective October 1, 1989.
A similar review and rate adjustment shall be made for each succeeding three
year period for the term of this contract. For the rates for the three (3)
years beginning 1989-1990, 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 three (3) year period.
The following rates are hereby established for the period October 1, 1988,
to September 30, 1989:
OUTSIDE
Volume Rates (Per 1000 gal.) DISTRICT
Treatment, Pumping and Transmission $.3183
Raw Water $.6191
Total Volume Rate $.9374
Maximum Day Rate
(Per MGD in excess of average day) $62,974
Maximum Hour Rate
(Per MGD in excess of maximum day) $29,450
Meter Charge ($/meter/month) $25
2.
Every other term, condition and/or covenant contained in City of Fort Worth
City Secretary Contract Numbers 4947 and 16112 not amended hereby shall be
unaffected hereby and shall continue in full force and effect.
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ATTEST:
1,edd
r
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Al�
City AttorKey
Date: -YY
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
Attorney
Date: 10/10/88
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CITY OF FORT WORTH
C
By: '✓VWiP.c
Assistant City Manager
CITY OF NORTH RICHLAND HILLS
Contract Authoriz tion
Date --
City o f' Fo rt Worth, Texas
DATE REFERENCE
NUMBER
11-10-87 **C-10646
Recommendation
Council Comniunication
SUBJECT: AMENDMENT TO THE WHOLESALE I PAGE
WATER CONTRACTS i af__.__ 1
It is recommended that the City Council authorize the City Manager to execute
contract amendments with the wholesale water customers, a sample of which is
attached, which provides that the Touche Ross rate methodology and wholesale
water 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. APPROVED BY
RAM:wl CITY COUNCIL
SUBMITTED FOR I"L
CITY MANAGER'S
i OFFICE BY:
trrr.,✓
GRI•ONATINR
n FFARTMENT BEAD*
F"'R ACCITIONAL INFORMATION
CONTACT.
Ruth Ann McKinney
Richard Sawev
S. Nunn-8202
DISPOSITION BY COUNCIL:
APPROVED
OTHER (DESCRIBE)
r �f ILO 1J�'i
n PR CESSED BY
rl. •y� L �.f2�.
CITY SECRETARY
City iYJvtt ,W.y �f ,r..:.
City of Fort VJ'c;;" ''10=3
DATE