HomeMy WebLinkAboutContract 16788CONTMG, a
SECOND AMENDMENT TO CITY SECRETARY CONTRACT N0, 13-5--la
This agreement entered into this Ok day of Q,�-�, 1988, by and
between the City of Fort Worth and City of Kennedale.
WHEREAS, the City of Fort Worth and City of Kennedale entered into a
contract for water service dated February 16, 1984, same being City of Fort
Worth City Secretary Contract No. 13573; and
WHEREAS, on October 16, 1987, the City of Fort Worth and City of Kennedale
entered into an amendent of City of Fort Worth City Secretary Contract No.
13573, same being City of Fort Worth City Secretary Contract No. 16117; and
WHEREAS, the City of Fort Worth and City of Kennedale are desirous of
amending said City of Fort Worth City Secretary Contract Numbers 13573 and
16117;
NOW, THEREFORE, the City of Fort Worth and City of Kennedale agree as
follows:
1.
Paragraph 5, Section 3B, of City of Fort Worth City Secretary Contract No.
16117 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 plus a service
OFFICIAL RECORD
CIr" °FCRETARY
—1— F1. ,, e I N, TEX.
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 13573 and 16117 not amended hereby shall be
unaffected hereby and shall continue in full force and effect.
-2-
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
J� City Att rney
Date: //---3
ATTEST:
lk
City Secret ry
APPROVED AS TO FORM AND LEGALITY:
Attorney
Date:
-3-
CITY OF FORT WORTH
By:� t
Assistant City Manager
City of Kennedale
4By: G�
ayor
Contract Authorization
/a
Date
City gj' !Fort Worth, TTeri
ayor and Couricil Communication
NUMBENCE SUBJECT: AMENDMENT TO THE WHOLESALE PAGE
11-10-87**c--10646
WATER CONTRACTS
Recommendation
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 [toss 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.
ni(,rurcinn
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 IHL
CITY MANAGER'S DISPOSITION BY COUNCIL: n PR44CESSED BY
OFFICE BY: Ruth Ann McKinney APPROVED (/ � II
C.RI„ NATINr, OTHER (DESCRIBE) �..'
DFF'ARTMFNT HEAD: - Richard Sawey _ __ "CITY SECRETARY
>~ u�dt3S0ry-oS tht7-
F::R ADDITIONAL INFORMATION
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