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HomeMy WebLinkAboutContract 5947 CONTRACT FOR SANITARY SEWER SERVICE BETWEEN THE CITY SFcRETAR. CITY OF FORT WORTH, TEXAS CONTRACT. No. S9 AND THE , CITY OF SAGINAW, TEXAS r, THE STATE OF TEXAS F COUNTY OF TARRANT X �1`i� 10` CONTRACT AND AGREEMENT made and entere to�� ,ry day of 19by and betw en the City of Fort Worth, a municipal corporation 1 ated in Tarrant County, Texas , acting by and through its duly authorized Mayor, DeWitt McKinley , and the City of Saginaw, a municipal corporation located in Tarrant County, Texas , acting by and through its duly authorized Mayor, W.D. Straw W I T N E S S E T H : WHEREAS, the City of Fort Worth has built or caused to be built and maintains a sanitary sewerage system including interceptor or collector lines , mains , submains , laterals , sewage treatment facilities and other appurtenances for the purpose of collecting sewage and other acceptable wastes and transporting same to places of treatment and disposal ; and, WHEREAS, the City of Saginaw has constructed a sanitary sewerage collection and disposal system within the limits of its own municipality; and, WHEREAS, the City of Saginaw desires to connect its sanitary sewage system to that of the City of Fort Worth at a point or points on the Little Fossil Creek Collector Sewer Main of the City of Fort Worth; and, WHEREAS, the City of Fort Worth, forand in consideration of the performance of the covenants and agreements hereinafter contained, will accept sewage from the lines of the City of Saginaw into its own sewer lines at point or points of con- nection hereinafter described and to transport and treat said sewage in the same manner that sewage from within the limits of the City of Fort Worth is transported and treated; 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 Saginaw do hereby covenant and agree as follows : 1 . TERMS AND CONDITIONS a. The City of Fort Worth hereby grants to the City of Saginaw the right to connect the sanitary sewerage system of the City of Saginaw to the Little Fossil Creek Collector Sewer Main of the City of Fort Worth., conditioned upon the plumbing facilities of each residential , commercial and industrial connection to the City of Saginaw's sewerage system served under the terms of this contract conforming to and being in compliance with standards equal to or better than applicable ordinances gov- erning similar connections within the corporate limits of the City of Fort Worth. I . b. Subject to such conditions, it is agreed that the City of Saginaw shall have the right to introduce sanitary sewage into Fort Worth' s Little Fossil Creek Collector at a rate not to exceed a total flow of 650,000 gallons per day, If the total amount of sewage delivered into Fort Worth' s Little Fossil Creek Collector from the City of Saginaw exceeds 650,000 gallons per day, the Director of the Fort Worth Water Department shall notify the City of Saginaw that the maximum rate has been exceeded and that additional transportation charges shall be paid by the City of Saginaw for the sewage flow measured in excess of the specified maximum rate in an amount to be calculated in accordance with the determination of rates as set forth in the City of Fort Worth Policy regarding Sale of Sanitary Sewer Service to Neighboring Communities, as adopted by the City Council of Fort Worth on October 14, 1963, a copy of which is attached hereto and made a part hereof as Exhibit B. C. It is agreed that the Little Fossil Creek Collector shall be con- structed by the City of Fort Worth from its present terminus, just west of Old Denton Road and south of I -820 to the manhole on the City of Saginaw' s sanitary sewerage system immediately west of the City of Saginaw' s sewage treatment plant. It is agreed that Fort Worth will make application to the Texas Water Quality Board for a grant under the terms of Public Law 660 for funds to aid in the construction of the Little Fossil Creek Sewer collection facilities . The total project cost of the Little Fossil Creek Collector, less any grant payments received, shall be shared by the parties hereto as follows City of Saginaw 33% City of Fort Worth 67% Total 100% The total project cost shall include the costs of construction, rights of way, engineering design, surveying, construction supervision, and miscellaneous costs directly chargeable to the project . The City of Saginaw covenants and agrees to pay 50 per cent of its share of the estimated net project costs of these main facilities to the City of Fort Worth within 15 calendar days after the construction contract therefor has been awarded by the City Council of Fort Worth. Saginaw further covenants and agrees to pay the remainder of its share of the total project cost, as accumulated at the time of acceptance by the City Council of Fort Worth of construction of the Little Fossil Creek Collector as complete to the point of connection to the Saginaw sanitary sewerage system, said payment to be made within 30 days after the date of such acceptance. It is agreed that a final adjustment of project cost distri - bution will be made on the basis of a final tabulation of the total project cost to be prepared by the City of Fort Worth after all Federal Grant payments, if any, are received. The adjustment of project costs will be accomplished in the form of a refund by the City of Fort Worth or an additional payment by the City of Saginaw, as appropriate. It is further agreed that this final adjustment payment or refund will be made within 30 days after the final tabulation or project cost has been prepared by the City of Fort Worth and furnished to the City of Saginaw. d. Any sewer lateral , main or submain serving two or more connections, whether residential , commercial , or industrial , of the City of Saginaw which is connected after the signing of this contract directly or indirectly with the sanitary sewers of the City of Fort Worth shall be designed by, and the construc- tion shall be supervised by, competent engineers . Such engineers shall , in the 2. preparation of plans and specifications for such construction, incorporate therein requirements and methods of construction at least equal to those requirements for similar construction of sewer laterals mains or submains under Fort Worth Water Department specifications and design requirements. The City of Fort Worth shall have the right to make periodic inspections while such construction is in progress and to require compliance with the plans and specifications so prepared. e. The City of Saginaw shall grant to the City of Fort Worth such ease- ments and rights of way along public highways or other property or easements owned by the City of Saginaw as are appropirate to construct and maintain sewer mains and facilities to furnish sewer service to the customers of the City. In the event any damage to a street within the boundaries of the City is caused directly by the existence of such sanitary sewer mains in such street, the City of Fort Worth, upon receiving written notice of such damage, said notice to be delivered to the office of the Water Director of the City of Fort Worth and to contain a precise description of the location of such damage, will repair same in accordance with specifications equal to those applying for similar work per- formed by the City of Fort Worth within its own boundaries . However, the City of Fort Worth shall not be liable for any personal injury or property damage which is caused by the existence of any such damage to the streets in the City. f. The City of Fort Worth agrees to proceed with diligence with regard to construction of the Little Fossil Creek Collector so that this facility may be placed in operation without undue delay. The City of Saginaw agrees to discon- tinue the use ofand abandon its sewage treatment plant for sewage treatment pur- poses within 30 days after the Little Fossil Creek Collector Sewer has been com- pleted. g. The City of Saginaw grants to the City of Fort Worth the right to connect future sanitary sewer mains constructed by the City of Fort Worth and located in the Little Fossil Creek drainage area to Saginaw' s sanitary sewerage system, provided there is sufficient available capacity in the sanitary sewerage system of Saginaw and Saginaw agrees that the charge rate to be paid by the City of Fort Worth shall be computed and determined in accordance with the standard procedure described in this agreement for the determination of similar charges to be made by the City of Fort Worth to Saginaw for comparable services. In the event the sanitary sewerage system of Saginaw does not provide sufficient available capacity, it is agreed that Saginaw and the City of Fort Worth will cooperate in the development of a mutually satisfactory plan for pro- viding sanitary sewer service. h. The City of Saginaw will not make any extension of sanitary sewer lines within the extraterritorial jurisdiction of the City of Fort Worth without the approval of the City of Fort. Worth. In the event the City of Fort Worth agrees to any extension by the City of Saginaw of its sanitary sewer service within the extraterritorial jurisdiction of the City of Fort Worth, such extensions shall be of sufficient size and capacity to serve the drainage area involved, and the rates to be charged its customers by the City of Saginaw and the compensation to be paid by it to the City of Fort Worth shall be determined and fixed at the time such action is taken, and further, it is contemplated that the cost of the extensions within the extraterritorial jurisdiction of the City of Fort Worth shall be proportioned between the parties hereto in accordance with the capacity 3• requirement of each. i . It is anticipated that sewer main extensions, which may serve areas located in both cities, will be constructed to connect directly or indirectly with the proposed terminus of the Little Fossil Creek Collector Sewer at the existing Saginaw Treatment Plant. When such sewer main extensions are con- structed, the mains shall be sized to serve the entire drainage area in which they are located, irrespective of political boundaries . The total construction cost, less the participation in the cost of the project by private developers, shall be shared by each city in the proportion that its jurisdiction (present and extraterritorial ) in the drainage area bears to the total drainage area. The cost participation in the project by private developers shall be in accor- dance with the existing policy for the development of community facilities in the city in which the development requiring service is located„ A sewer main constructed under these terms shall be owned by the city under whose policy such sewer is constructed. In no event will the Little Fossil Creek Collector Sewer be extended except under the ownership and policies of the City of Fort Worth. j . Sewer taps made directly into the Fort Worth sewer lines in the City of Saginaw shall be constructed in strict compliance with the ordinances of the City of Fort Worth governing similar connections in the City of Fort Worth. The City of Fort Worth may, at its option, permit crews of the City of Saginaw to make taps directly into the Fort Worth sewage lines. Fort Worth shall have the right to inspect and approve or disapprove such completed tap connections , In all cases, sewer tap applications for connections in the City of Saginaw shall be taken by the City of Saginaw. If such applications are for connections directly to the Fort Worth sewage lines, these applications shall be referred to the City of Fort Worth. 2. MAINTENANCE OF SANITARY SEWERAGE SYSTEMS All sanitary sewers, laterals, mains, submains and appurtenances owned by or acquired by the City of Saginaw shall be properly maintained in good con- dition by the City of Saginaw, and the City of Fort Worth shall not have any responsibility or liability now or ever for the operation or maintenance of said sewers. All sanitary sewers, laterals, submains, mains, and appurtenances owned by or acquired by the City of Fort Worth shall be properly maintained in good condition by the City of Fort Worth and the C; ;y of Saginaw shall not have any responsibility or liability now or ever for the operation or maintenance of same. 3 . RATES 1 . RATE TO BE USED The charge rate to be applied under the terms of this contract is the charge rate per residential connection per month, except in the event either the City of Fort Worth or the City of Saginaw shall exercise its option to convert billing to the metered sewage basis in the manner described hereinafter. 4, 2 . CHARGE RATE COMPOSITION AND OTHER CHARGES If the charge rate during the initial period of this contract, which will terminate September 30. 1968, is to be on a per connection basis, the charge rate per residential connection shall be $0.934. The charge rate per commercial connection shall be computed as hereinafter described, If the charge rate during this initial period is to be on a metered sewage basis, the charge rate per 1 .,000 gallons of sewage received into the City of Fort Worth sanitary sewerage system from Saginaw shall be $0°089. a. The respective portions of the charge rate are shown as follows : Per Residential Per 1 ,000 Connection Gallons (1 ) Treatment facility (a) Rental charge $0 .252 $0 ,024 (b) Operation and maintenance 0.325 0 031 (2) Transporting facility (a) Rental charge $0.,346 $0.033 (b) Operation and maintenance 0.011 0.001 Charge rate $0.934 $0 ,089 b. When the payment is computed on a per connection basis, the charge rate per residential connection of Saginaw shall be $0 934 per month, and the charge rate for each commercial connection shall be equal to the gallons of water consumed per month by the commercial customer from whatever source, divided by 10,500 gallons and multiplied by $0,934, The charge rate for each commercial connection shall not be less than the residential charge rate c. The service charge shall be $25 ,00 per month for billing on a con- nection basis, plus $25.00 per month per metering station in use for billing purposes, if any. The meter service charge includes the costs of billing, meter reading, charts and routine minor mainterance of metering equipment . Cost of electric power and/or telephone lines , and costs of major repairs to the metering station, including the costs of materials, parts, labor and equipment costs, shale be paid by Saginaw in add" tion to the $25.00 meter service charge; and these costs shall be paid by the C+ ty of Saginaw whether or not the metering stations monitoring sewage flows from. the City of Sag+ naw are being used for billing pur- poses . 3 . ADJUSTMENT OF CHARGE RATE The charge rate shall be reviewed and adjusted every five years . The first such review shall be based on the annual costs of operation for the fiscal year 1967-68. Cost trends including the average rate of increase or decrease in the annual cost of operation shall be projected to determine a fair adjusted charge rate and meter service charge. The adjusted rate shall be made effective October 1 , 1968. A similar review and rate adjustment shah be made for each succeeding five-year period for the term of the contract. The adjusted charge rate for transporting and treating sewage from the City of Saginaw' s sanitary sewerage system shall be determined in the following manner: 5. a . The portion of the charge rate relating to rental charge for trans- porting facilities is to be held constant at $0,033 per 1 ,000 gallons and not subject to variation for the life of the contract. b. The portion of the charge rate relating to rental charge for treat- ment facilities shall vary as the product of $0.024 multiplied by the result obtained by dividing the average construction cost per million gallons of sewage treatment capacity at the Fort Worth Village Creek Sewage Treatment Plant in existence at the time of such recomputation by $161 ,000.00 , The average construction cost is defined as the total final contract cost for all existing facilities at the Fort Worth Village Creek Sanitary Sewage Treatment Plant at the time of such recomputation divided by the total design capacity in millions of gallons per day of such existing facilities . ($161 ,000.00 is to be taken as the average construction cost per million gallons per day of treatment capacity at the time of execution of this contract.) c. The portion of the charge rate relating to sewage treatment plants operating and maintenance costs shall vary as the product of $0.031 multiplied by the result obtained by dividing the combined total costs of operating and maintaining all City of Fort Worth Sewage Treatment Plants per million gallons of sewage treated in such plants, less net revenues from the sale of any sewage effluent, during the fiscal year most recent to the time of such recomputation, adjusted to reflect anticipated trends in such costs over the five years to be governed by the recomputed charge rate, by $29.20. (The $29.20 amount was the cost per million gallons of sewage treated during the fiscal year 1961 -62 for operation and maintenance of all City of Fort Worth Sewage Treatment facilities.) d. The portion of the charge rate relating to transporting facilities maintenance cost shall vary as the product of $0.001 multiplied by the result obtained by dividing the average expenditure per mile of sanitary sewer in the Fort Worth sanitary sewage collection system for maintenance of that system during the fiscal year most recent to the time of such recomputation, adjusted to reflect anticipated trends in such costs over the five years to be governed by the recomputed charge rate, by $317.07. (The $317,07 amount was the average cost per mile of sewer in the Fort Worth sewage collection system during the fiscal year 1961-62 for maintenance of that system.) e. The revised charge rate shall be taken as the sum of the constant set forth in a. above added to the results of the computation described in b. , c. and d. above. f. When the payment is based on a per connection charge, the adjusted charge rate shall be taken as the product of the sum obtained under e. above multiplied by 10.5. g. In the event the City of Fort Worth employs a competent rate con- sultant to study and report on the rates being charged by the City of Fort Worth for sewerage service rendered to other municipalities for the purpose of providing a rate structure that will assure reimbursement to the City of Fort Worth of its total cost of acquiring, constructing, operating and main- taining facilities for the collection, transportation, and treating of sanitary sewage, the charge rates as herein set out may be adjusted by the City of Fort Worth to conform with the study and report of the rate consultant at the time such study is accepted by the Fort Worth City Council but not earlier than October 1 , 1968. 60 4: PAYMENT FOR SANITARY SEWER SERVICE Payment of charges to the City of Fort Worth for sanitary sewer ser- vices used by the City of Saginaw shall be made as follows : a . The City of Saginaw shall remit to the City of Fort Worth at the end of each monthly billing period 1 . The service charge of $25,00 per month for billing on a per connection basis . 2. The sum of money obtained by multiplying $0.934 times the total number of residential customers plus the computed charge for commercial customers discharging sewage into the City of Fort Worth sewage system through an unmetered con- nection. b. The billing period shall be either the calendar month or a 30-day period. Initially the billing period shall be the calendar month. The City of Saginaw shall make payment of the charges to the City of Fort Worth within 10 days following each such period. The billing period and the payment date may be changed by written agreement by the Director of the Fort Worth Water Department and the Mayor of the City of Saginaw. C. Records Available: The City of Saginaw agrees to furnish a current statement each month showing the number and types of sewer connections to its sanitary sewerage system for said preceding month, and, further agrees to permit the City of Fort Worth, at reasonable times, to examine the water and sewer records and customer accounts of the City of Saginaw. d. When conversion is made to charge rate per 1 ,000 gallons of sewage handled: At the second billing date after sewage flow metering stations are placed in operation, the City of Saginaw shall make the last payment for sanitary sewerage service based on the monthly charges per connection set forth herein. Thereafter, the City of Fort Worth shall bill the City of Saginaw at each billing date for services rendered during the billing period preceding such billing date an amount equal to the sum of: 1 . The meter service charge of $25.00 per metering station used, plus metering station repair costs incurred by the City during the billing period , 2. The sum of money obtained by multiplying by the then appro- priate charge rate per 1 ,000 gallons the total number of thousands of gallons of sewage flowing from the City of Saginaw' s sewerage system into the Fort Worth sanitary sewer- age system during the billing period. 7- 5. CHANGE IN CHARGE RATE BASIS a. If the City of Saginaw should be of the opinion that the volume of flow generated per connection is less than the average flow assumed for calculation of the per connection rates and that the charge rate on the per connection basis is not commensurate with the charge rate per 11000 gallons of sewage, then the City of Saginaw may notify the Director of the Fort Worth Water Department of such decision in writing and request that such flow metering stations be constructed as the Director of the Fort Worth Water Department deems necessary to determine the volume of sewage being delivered into the City of Fort Worth sanitary sewerage system from the City of Saginaw's sanitary sewerage system. Within six months after having received such written notice, the Director of the Fort Worth Water Department shall have caused such flow metering stations to be constructed and placed in operation. b. If the City of Fort Worth should be of the opinion that the monthly charges per connection to be paid to it hereunder are not commensurate with its costs for hand- ling the volume of sewage generated by such connection, then the Director of the Fort Worth Water Department shall notify the City of Saginaw in •writing of such decision. Within six months after having given such written notice, the Director of the Fort Worth Water Department shall have caused such sewage flow metering stations to be constructed as he deems necessary to determine the volume of sewage being de- livered into the City of Fort Worth sanitary sewerage system from connections to the City of Saginaw's sanitary sewerage system. 6. METERING STATIONS The construction of metering stations shall be made by the Cty of Fort Worth, but all construction costs including meter , recording, transmitting and receiving devices and the site acquisition, will be an expense of Saginaw. The City of Saginaw shall pay such construction costs within 30 days of billing by the City of Fort Worth, such billing to be made within 30 days after the metering stations are completed and placed in operation. The City of Fort Worth shall operate and ,maintain the installed sewage flow metering stations in good order at all times , and it shall record the total volume of sanitary sewage delivered into the F"o, t Worth sanitary sew- erage system during each billing period. Metering stations shall be accessibly located. Both parties have the right to observe performance of metering devices at any Cmc- . Both the City of Fort Worth and the Cty of Saginaw shall have the right to test any metering stations at any time by first giving the other party notice of its intention to make such a test and therefore give reasonable opportunity to the other party to have representatives participate in such test. Should any malfunction be observed at any time, it shall be the duty of each party immediately to notify the other, and correction of such malfunction shall be made promptly by the City of Fort Worth. When any metering station is in need of major repairs , such as the red-lacement of major equipment components or conversion to different types of measuring device, the City of Saginaw shall be consulted prior to the beginning of such repairs or mod, fication. 8. 7• ADUSTRIAL WASTES The quality of the sewage delivered into the Fort Worth Sanitary Sewerage System from the sanitary sewerage system of the City of Saginaw shall be equal to or better than the quality standards established by current or future ordinances of the City of Fort Worth regulating industrial wastes to be injected into the Fort Worth sanitary sewerage system from connections within corporate boundaries of the City of Fort Worth, and the City of Saginaw covenants and agrees to be liable for and assume the same penalties for viola- tion of such quality standards and to pay the same surcharges applicable to a producer of industrial wastes located within the corporate boundaries of the City of Fort Worth. 8 . LIFE OF CONTRACT The life of this contract shall be thirty-five (35) years from the date of its execution, and thereafter shall be subject to renegotiation be- tween the parties hereto. It is contemplated by the parties hereto that the basis for renego- tiation for this agreement upon its expiration will have as its object com- puting a fair charge for services that recovers all costs direct and indirect that might be incurred by the City of Fort Worth in providing such services. 9• EFFECTIVE DATE FOR BILLING The effective date of this contract for billing purposes shall be the first day of the month following the month during which the first introduction of sewage into the City of Fort Worth' s system under the terms of this agree- ment occurs. 10. The City of Fort Worth and the City of Saginaw each binds itself, its successors and assigns, to the other party to this agreement and to the suc- cessors and assigns of each other party with respect to all covenants contained in this agreement. Neither party hereto shall assign, sublet or transfer any rights hereunder without the written consent of the other party. IN TESTIMONY WHEREOF, after proper action by the respective governing bodies of the parties hereto, we have caused these presents to be executed in quadruplicate copies, each of which is considered to be an original , and the seals of the respective parties are hereto affixed on the date hereinabove set forth. 9. ATTEST: CITY OF FORT WO U H - By City ecretary ayor APPROVED AS TO FORM AND LEGALITY: � � I City ttorney APPROVAL RECOMMENDED: Di rector, Fort Wor h Water artment ATTEST: CITY OF SAGINAW _ � _.�el — C By_ ty Secretar Mayor APPROVED AS TO FORM AND LEGALITY C y ttorney ' A 10. City of Fort Worth, Texas KrX Mayor and Council Communication DATE REFERENCE SUBJECT: Contracts for Water and PAGE NUMBER Sanitary Sewer Service 1 of 4' 1/29/68 C-1149 with the Proposed contracts for furnishing water and sanitary sewer service by the City of Fort Worth to the City of Saginaw under standard policies are transmitted herewith for the consideration of the City Council. Water Contract On December 5, 1967, the Saginaw City Cduncil approved a proposed contract for the purchase of treated water from Fort Wbrth. In order to furnish water to the south boundary of Saginaw at County Road 4001, it will be necessary to construct approximately 7,500 feet of 16-inch main at an estimated cost of $97,000 at the expense of Fort W6rth. The main will also serve the area west of Highway 81 in the City of Fort Worth. Summary of Contract Provisions The proposed contract has been prepared in accordance with standard policy of the City of Fort Worth for the sale of treated water at its City limits to neighboring communities. The contract includes the following major provisions : Rates - The charges for water service are the same charges paid by other purchasers of treated water under long term contracts and are based on the following schedule: Commodity Charge - Includes maintenance, operating, and raw water charges of 16.0 cents per 1000 gallons used. This amount includes a total of 9.0 cents per 1000 gallons for raw water, because Saginaw is not located in the boundaries of the Tarrant County Water Control and Improvement District No. 1. (8 cents water charge plus system losses) . Cost of Facility Charge - Includes the fixed capital charges for the pro- duction and transmission of treated water, including a charge for the cost of facilities needed to meet maximum day water usage, plus an additional charge for facilities needed to meet maximum hour usage in excess of the maximum day usage. The initial charges under the proposed contract are $16,000 per MG for maximum day usage and $8,280 per MG for maximum hour usage. DATE REFERENCE SUBJECT: Contracts for Water and PAGE NUMBER Sanitary Sewer Service 2 4 1/29/68 C-1149 with the City of Saginaw of Sstftce. Chanc - $25 per month per master meter, for meter reading, billing and miscellaneous expense. Payment for Water - The minimum monthly payments under the new contract are based on the quantity of water used plus the meter service charge of $25. Saginaw agrees to pay a monthly minimum charge of $825.95 for the first six months of the fiscal year, for which payment Saginaw .will be entitled to withdraw 2,500,000 gallons monthly, and for the remaining six months of the year, Saginaw will pay $1,559.45 monthly for which it may withdraw 6,000,000 gallons per month. The City of Saginaw agrees to pay a minimum of $14,552.40 annually. The actual annual payment by the purchaser for water service is related to the annual usage and peak volumes used but cannot be less than the charge paid for an equivalent amount used by a water consumer within the corporate limits of Fort Worth plus 10 per cent, plus a $25 monthly service charge per meter. Effective Date for Billing The effective date of the contract for billing purposes is the 15th day of the month in which the transmission main and meter installation are placed in service by Fort Worth. Rate Adjustments - The contract provides for rate adjustments based on actual cost and rates of use, which will be reviewed at five-year intervals during the con- tract time. The first such review and rate adjustment will be effective October 1, 1967. The amount charged for raw water shall be in- creased or decreased proportionately when the raw water cost paid by the City of Fort Worth for water available for treatment and sale to the City of Saginaw is increased or decreased. The term of the contract is 30 years. Resale of Water, - The City of Saginaw agrees not to sell water at a lower rate than the City of Fort Worth rate charged a similar customer located in Fort Worth. Restricted Suply Procedures - In the event the water supply is restricted in Fort Worth for any reason, the quantity withdrawn by the City of Saginaw can be reduced in e proportion. M iaAV Cil SE� �RY FT. WORTH, TEL DATE REFERENCE SUBJECT: Contracts for Water and PAGE NUMBER Sanitary Sewer Service , 1/29/68 C-1149 with the City of Saginaw Rationing - If it is necessary for the City Council of Fort Worth to ration the amount of water used in Fort Worth, similar rules must be adopted by the City of Saginaw. Meters - The master meter will be installed in the vicinity of the intersection of Highway 81 and County Road 4001. The meter and all its appurtenances will be installed at the expense of the City of Saginaw. Exhibit "A" pf the contract is not included because the exact location has not yet been determined by Saginaw's engineers. Sanitary Sewer Service The proposed sanitary sewer service contract provides for the early construc- tion of Unit 4, Little Fossil Creek Collector Sewer, from its terminus at Old Denton Road to the Saginaw Sewage Treatment Plant, The total estimated project cost of Unit 4 is $159,000. The Saginaw Sewage Treatment Plant will be abandoned and the construction project is considered eligible for a Public Law 660 Grant. An application will be made to the Texas Water Quality Board for a maximum allowable grant of 33 per cent of the construction cost. The remaining cost will be borne by the two cities in proportion to the total drainage area served by the collector sewer in each city as follows : Saginaw 33 per cent • Fort Worth 67 per cent Funds are available for the construction of this project as proposed in the 1968 Capital Improvement Program (C-33) . The proposed agreement provides for the City of Fort Worth to own and maintain the Little Fossil Creek collector Sewer as it will be constructed to the Saginaw Trea#mwn-J, P3-ant-ana later extended through the City of Saginaw to serve areas ip,,Me6,Cit*'of Fort Worth. Rates 1 � ! The rates charged the City of Saginaw are based on the comp ate cost of opera- tion and maintenance and the pro rata capital cost of Fort Worth facilities used in transporting and treating Saginaw sewage, in accordance with the standard charge rate established by the City Council for providing sanitary sewer service to neighboring communities . The charge rate is 93.4 cents per residential connection. Saginaw will pay for sanitary sewer service on the "per connection" basis . However, conver- sion to the metered basis of payment can be initiated by either city, and any meters installed under terms of the agreement will be at the expense of Saginaw. The charge rate will be reviewed and adjusted every five years after the first such review. In order to conform with contracts with other cities, the first review will be based on the annual cost of operations, fiscal DATE REFERENCE SUBJECT: Contracts for Water and PAGE NUMBER Sanitary Sewer Service 4 4 1/29/68 C-1149 with the City of Saginaw of year 1967-68. Cost trends, including average rate of increase or decrease and the annual cost of operation, will be projected to determine the fair adjusted charge rate and metering service charge. The contract provides that in the event Fort Worth employs rate consultants to study and report on rates being charged by the City of Fort Worth for sewage services rendered to other municipalities, the charge rate as set out in the con- tract may be adjusted by the City of Fort Worth to conform with the study and report of the rate consultant at the time such study is accepted by the Fort Worth City Council, but not earlier than October 1, 1968. Tern of Contract The term of the contract is for 35 years. The City Council of Saginaw approved the proposed contract on December 12, 1967. Recommendation It is recommended that the contracts to sell water and to provide sanitary sewer service to the City of Saginaw be approved and that the Mayor be authorized to execute the contracts on behalf of the City of Fort Worth. M:ms p�41C1At �Ry �I�y SE��Et �i• WORTH' ��• SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY . Q APPROVED ❑ OTHER (DESCRIBE) CITY SECRETARY // DATE CITY MANAGER