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CITY OF FORT WORTH. TEXAS -+� �■!+���: �� ���—'�•'■� ��i
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WATER DEPARTMENT
P. O. BOX 870
FORT WORTH, TEXAS 76101
335-7211 / AREA CODE 817
February 13, 1974
,CITY SECRETARY
CONTRACT. Ko.7147
Mr. M. A. Jobe
City Administrator
P. 0. Box 79070
Saginaw, Texas 76079
Dear Mr. Jobe:
AMENDMENT TO CONTRACT NO. 5947
FOR SANITARY SEWER SERVICE TO
CITY OF SAGINAW
Contract No. 5947 between the City of Saginaw and the City of Fort Worth relating
to sanitary sewer service provides for adjustment of the Charge Rate at five-year
intervals, with the next Charge Rate adjustment to be retroactive to October 1,
1973, and for the rate made effective as of that date to continue in effect until
October 1, 1978.
The contract further requires the City of Fort Worth, in determining the new Charge
Rate to be effective as of October 1, 1973, to project its anticipated operation
and maintenance costs for its collection system and its sewage treatment facilities
for the five-year term from 1973-78 in determining the Charge Rate components
relating to those costs. Such long term projections under the current circumstances
of uncertain future cost trends resulting from the energy crisis and other factors
are extremely difficult. It is therefore considered in the best interests of both
parties to Contract No. 5947 to amend that agreement to reduce the period between
Charge Rate adjustments to one year instead of the five-year period stipulated in
the agreement. -
Accordingly, it is proposed by this letter of agreement to amend Contract No. 5947
to the effect that the next Charge Rate adjustment shall be made retroactive to
October 1, 1973, with a similar rate adjustment to be made for each succeeding
one-year period thereafter for the term of the contract.
If you desire to amend Contract No. 5947 in the manner described above, please
endorse this letter of agreement in the space provided below, and return three of
the enclosed copies so endorsed to this office. Upon receipt of these endorsed
OFFICIAL. RECURRID
CITY SECRETARY
LFT. WORTH TEX.
Continued
Mr. M. A. Jobe
February 13, 1974
copies, suitable steps will be taken to secure City of Fort Worth endorsement,
and a fully endorsed copy of the letter of agreement will be returned for your
files.
Yours very truly,
1
C
'�1
J. L. Robinson, Director
Fort Worth Water Department
ATTEST: CITY OF SAGINAW
C BY:
DATE:
APPROVED AS TO FORM AND LEGALITY:
S ,
S. G. JOHNDROE, JR. , CITY ATTORNEY
ATTEST: CITY OF FORT WORTH
.49lCJ "— BY:
C, R N. LINE, CITY MANAGER
DATE: -I-- Z 0— ZZ
City of Fort Worth, Texas
Mayors and Council Communication
DATE REFERENCE susiEcr: Annual Adjustment of Rates for PAGE
NUMBER Sewage Treatment Customer Cities
5/20/74 C-2810 for 1
The City of Fort Worth has long term sanitary sewer service contracts with 20
customer cities. The contracts specify that the charge rate will be reviewed
and adjusted each five years. Each five years, cost trends including the
average rate of increase or decrease in the annual costs of operation are to be
projected to determine a fair adjusted charge rate. The City staff reviews the
projected costs and the wastewater treatment service payments from the City and
its 20 customer cities for the next five year period. The weighted average cost
for operation is determined for that period and the rate is established. The
adjusted rates have been determined for the period beginning October 1, 1973
through September 30, 1978.
Due to the difficulty of projecting operating and maintenance costs for a
period of five years ahead during this period of rising costs and changing
standards for sewage treatment operations by regulatory agencies, the City staff
has proposed to its customer cities that they agree to executing a Letter of
Agreement whereby the charge rate would be adjusted annually. Each year when
the Water Department budget is approved, the customer cities will be advised of
the next year's charge rate. It was considered that this procedure would be to
the best interest of both parties. At this date, nine "Letters of Agreement"
have been signed and returned to the Water Department. Other cities have indi-
cated they will also sign the Letters of Agreement.
The staff will review the accounts of those cities that wish to continue on
the five year rate adjustment basis. When cumulative payments to the City of
Fort Worth do not meet the cumulative cost of service, it will be necessary to
advise those cities of the necessity of a rate adjustment.
Recommendation
It is recommended that the City Manager be authorized to sign the Letters of
Agreement with those cities who agree to the annual adjustment of the sewage
rate.
RNL a kr
SUBMITTED BY: DISPOSITIO Y COUNCIL: PRO4SSED BY
APPROVED p OTHER (DESCRIBE)
' CITYECRETARY
4 DATE
CITY MANAGER .�� ) _ �7