HomeMy WebLinkAboutContract 19363 CITY
CONTACT NOTARY`
CONTRACT FOR WATER SERVICE BETWEEN
THE CITY OF FORT WORTH, TEXAS, AND 224
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATE OF TEXAS §
COUNTY OF TARRANT §
This contract and agreement is made and entered into this
22n,� day of S--�wf2,w4-,2-,r 1992 , by and between the City
of Fort Worth, a municipal corporation located in Tarrant County,
Texas, acting by and through Mike Groomer, its duly authorized
Assistant City Manager, hereinafter called "Fort Worth, " and Trophy
Club Municipal Utility District No. 1 located in Tarrant County,
Texas, acting by and through Constance S . White, its duly
authorized President of the Board of Directors , hereinafter called
"Customer. "
This contract is executed by Customer in its capacity as the
owner of legal title and opertor of common utility facilities in
the Trophy Club development.
WHEREAS, Fort Worth has provided at its own expense, and now
owns, operates and maintains facilities for processing and
distributing a large supply of surface water, and at the present
time is qualified to furnish and deliver treated water, both within
and without the corporate boundaries of Fort Worth; and
4ff1q�11 ��
1 qTY SECIETAAr
WHEREAS, Customer has provided at its own expense and now
owns, operates and maintains a distribution system; and furnishes
water service to the customers within its service area; and
WHEREAS, Customer does not have and cannot provide
economically and within a reasonable period of time, any other
source of water supply, fully adequate to meet its present and/or
future needs or potential emergency needs; and
WHEREAS, it is deemed to be in the best interest of both Fort
Worth and Customer that said parties do enter into a mutually
satisfactory agreement by means of which Customer may obtain from
Fort Worth a supply of treated water at a reasonable rate; and
WHEREAS, by the execution of this contract, neither Fort Worth
nor Customer will surrender any of its rights to the ownership and
operation of its present water production and distribution
facilities; and
WHEREAS, on the 13th day of March, 1979, Fort Worth and
Customer entered into a contract, same being Fort Worth City
Secretary Contract No. 10381, providing for the supply of potable
water from Fort Worth to Customer; and,
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WHEREAS, Customer desires to continue to contract for the
purchase of treated water and Fort Worth desires to continue to
sell treated water to Customer; and
WHEREAS, Sections 402 .001 and 402 . 075 of the Texas Local
Government Code and Chapter 791 of the Texas Government Code
authorize Fort Worth and Customer to enter into this agreement;
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That, for and in consideration of the mutual covenants,
promises and agreements contained herein, Fort Worth and Customer
do hereby covenant and agree as follows :
1 .
Definitions
1 . 1 "Annual Consumption" is the total quantity of water purchased
under the terms of this contract by Customer during the fiscal year
of Fort Worth as determined by the difference in the annual October
meter readings.
1 . 2 "Average Daily Use" is the total Annual Consumption divided
by 365 days .
3
1. 3 "Treatment, Pumping and Transmission Charge" is that part of
the rate charged for 1,000 gallons used, regardless of rate of use.
This charge shall include the maintenance and operation costs, and
the capital facilities cost on the part of the production and
transmission system related to annual use.
1.4 "Customer System" is all necessary Customer mains and
distribution facilities on the Customer's side of the meter from
and beyond the point of delivery of treated water by Fort Worth.
1 .5 "Delivery Facility" is any facility necessary for the
transmission of water from the Fort Worth System that is on the
Customer's side of the point of delivery that is constructed
specifically to allow Fort Worth to serve Customer.
1. 6 "Director" is the Director of the City of Fort Worth Water
Department or his designee.
1. 7 "Fiscal Year" is the fiscal year of Fort Worth from October
1 through September 30 .
1.8 "Fort Worth System" is the Fort Worth water treatment and
distribution system.
1 .9 "General Benefit Facilities" are water facilities that
provide utility services and benefits common to all customers which
include water treatment facilities, metering facilities, control
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systems and appurtenances, storage facilities, pumping facilities
and all major mains that are sixteen inches ( 16 " ) and greater in
diameter.
1. 10 "MGD" is million gallons per day.
1. 11 "Maximum Day Demand" is the maximum quantity of water used
by Customer during one calendar day of the Fiscal Year of Fort
Worth.
1. 12 "Maximum Hour Demand" or "Peak Hour Rate" is the quantity of
water used by Customer during the one hour of the year that more
water passed through the meter or meters serving the Customer than
during any other hour of the Fiscal Year of Fort Worth multiplied
by 24 hours .
1. 13 "Rate of Use Charge" is the fixed charge determined for the
Maximum Day Demand in excess of Average Daily Use and the Maximum
Hour Demand in excess of Maximum Day Demand rates of use.
1. 14 "Raw Water Charge" represents the rate for 1,000 gallons
charged by the Tarrant County Water Control and Improvement
District No. 1 to Fort Worth for raw water to be sold to the
Customer plus eight percent (8%) of said rate, representing Fort
Worth system losses of four percent ( 4%) , and the street rental
charge of four percent (4%) .
5
1. 15 "Wholesale System Access Fee" is a capital contribution
funding or recouping the costs of General Benefit Facilities
capital improvements or General Benefit Facilities facility
expansions necessitated by and attributable to new development.
1. 16 "System Cost" is the operating expense and capital related
cost incurred by Fort Worth pursuant to the provision of water
treatment and transmission to the wholesale class of water
customers . Such costs are to be collected by Fort Worth as a
component of the annual cost of providing wholesale water service.
1. 17 "Volume Charge" represents the combined treatment, pumping
and transmission charge and the raw water charge in effect for the
current Fiscal Year.
1. 18 "Capital improvements" means any of the following facilities
which provide utility services and benefits common to all customers
and that have a life expectancy of three or more years, whether
such capital improvements are located within the jurisdictional
limits of Fort Worth or Customer: water treatment facilities,
metering facilities, control systems and appurtenances, storage
facilities, pumping facilities and all mains that are sixteen
inches ( 16 " ) and greater in diameter.
6
1 . 19 "Facility Expansion" is the expansion of the capacity of an
existing facility that serves the same function as an otherwise
necessary new capital improvement, in order that the existing
facility may serve new development. The term does not include the
repair, maintenance, modernization, or an expansion of an existing
facility to better serve existing development.
2 .
Terms and Conditions
2 . 1 Fort Worth agrees to furnish and sell to Customer treated
water of potable quality meeting all applicable governmental
standards, delivered under the normal operating pressure prevailing
in the Fort Worth System at the point or points of delivery
mutually agreed upon. Customer agrees to accept delivery under the
conditions of this agreement and to pay for the same in accordance
with the terms herein.
2 .2 In accordance with the terms of Fort Worth City Secretary
Contract No. 12720 between Fort Worth, City of Arlington, City of
Mansfield, Trinity River Authority and the Tarrant County Water
Control and Improvement District No. 1, this contract shall be
deemed subordinate in all respects to the water requirements of the
above contracting parties as specified in Section 3 of that
contract.
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2 . 3 If Fort Worth shall ration the use of water throughout its
corporate limits or issue water conservation measures or restrict
the use of water in any way, Customer agrees to institute and apply
the same rationing, conservation measures, or restrictions to the
use of water by the customers of Customer for so long as any part
of the total water supply of the Customer is being furnished by
Fort Worth. Fort Worth agrees to consult with the Water System
Advisory Committee, hereinafter referred to in the development of
any conservation or rationing plans that may be necessary to
address operational constraints whether or not same are required by
any state or federal regulatory agency, or are deemed advisable by
the Water System Advisory Committee to manage long term System
Costs, except where emergency conditions may dictate short-term
conservation or rationing requirements as may be determined by the
Director to meet all necessary water demands .
3 .
Location and Maintenance of Measuring Devices
3. 1 All water furnished under this agreement by Fort Worth shall
be measured by one or more suitable meters equipped with continuous
flow chart-recording deviceson telemetering equipment connected
with the Fort Worth control center. All meters, recording devices,
telemetering equipment and appurtenances shall be approved and
installed by Fort Worth. Fort Worth shall pay for the cost of the
initial meter vault and all metering equipment, including
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telemetering equipment to the Fort Worth control center, and
appurtenances, plus the installation cost thereof as provided for
in City of Fort Worth City Secretary Contract No. . Customer
shall be responsible for the cost of such facilities and equipment
for any additional points of connection to the Fort Worth System.
Fort Worth shall pay all costs associated with the operation and
maintenance of said equipment and shall pay for the replacement of
said equipment as necessary. Such costs, as well as charges for
the telelink line and microwave transmitter and the power to
operate same, shall be a System Cost.
3 .2 The point or points of delivery of treated water by Fort
Worth shall be the meter vault connection to Customer's side of the
meter, and all necessary mains and distribution facilities from and
beyond said point shall be the responsibility of Customer. The
location of each meter shall be mutually agreed upon in writing by
and between the parties hereto, and the meter or meters shall not
be moved or relocated except by mutual consent in writing by the
parties hereto.
3 . 3 For the cost of each additional Customer connection to the
Fort Worth System, Customer will pay an amount not less than that
which would be paid by a developer to Fort Worth under its then
existing connection and line extension policy, or an amount agreed
upon mutually by Fort Worth, Customer, and the Water System
Advisory Committee.
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3 .4 Either party, at its own expense, may install a check meter
to check or measure the volume of water passing the master meter,
provided that, if such check meter is installed, the same rules and
regulations relative to its operation, maintenance and reading
shall apply as to the master meter being tested.
4 .
Meters
4 . 1 Fort Worth shall routinely test for accuracy, and service and
calibrate if necessary, the master meter(s) no less than once
during each twelve ( 12 ) month period. Copies of the results of
such calibration and all related information shall be provided to
Customer. Customer shall have access to the metering facilities at
all reasonable times; provided, however, that any reading,
calibration or adjustment to such metering equipment shall be done
by employees or agents of Fort Worth, or other mutually approved
third party calibration agent, in the presence of representatives
of Customer and Fort Worth, if so requested by Customer.
Notification of any proposed test shall be provided to the Customer
at least seventy-two ( 72 ) hours prior to such test being conducted
and Customer may observe such test, if so desired.
4 . 2 Upon any calibration, if it is determined that the accuracy
envelope of such meter is found to be lower than ninety-five
10
percent ( 95%) or higher than one hundred five percent ( 105%)
expressed as a percentage of the full scale of the meter, the
registration of the flow as determined by such defective meter
shall be corrected for a period extending back to the time such
inaccuracy began, if such time is ascertainable; or, if such time
is not ascertainable, then for a period extending back one-half
( 1/2) of the time elapsed since the date of the last calibration,
but in no event further back than a period of six ( 6 ) months . All
meters will be properly sealed, and the seals shall not be broken
unless representatives of both parties have been notified and given
a reasonable opportunity to be present.
4 . 3 If any meter used to determine the flow of treated water to
Customer is out of service or out of repair so that the amount of
water metered cannot be ascertained or computed from the reading
thereof, the water delivered during the period such meter is out of
service or out of repair shall be estimated and agreed upon by the
parties hereto upon the basis of the best data available. The basis
for estimating such flow includes, but is not limited to,
extrapolation of past patterns of flow for said metering station
under similar conditions . In the event that the parties hereto
cannot agree on the extrapolated estimate of water volume
delivered, agreement on the flow volume will be determined by third
party arbitration, as hereinafter provided.
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5 .
Meter Reading and Billing
5 . 1 Fort Worth will read all meters provided for herein at
monthly intervals, and the parties to this agreement shall have
free access to read these respective meters daily, if either party
so desires . It shall be the duty of the parties to give immediate
notice, each to the other, should any meter be found not
functioning properly, and, upon such notice; repairs to such meter
shall be made promptly.
5. 2 All readings of meters will be entered in ink upon bound
journals maintained by Fort Worth. Customer shall have access to
such records during reasonable business hours and shall be
furnished with monthly readings for each point of delivery metering
facility.
5 . 3 If Customer has more than one point of connection to the Fort
Worth System, the sum of all meter readings and rates of flow shall
be used for the purpose of calculating the water Volume Charge and
the Rate of Use Charge.
5 .4 A review of water usage amounts by Customer for the past
twelve ( 12) months shall be made during the presentation of the
October bill each year. The October statements shall be prepared
so as to reflect any and all Rates of Use Charges which have not
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been previously billed and paid. A copy of the rate of flowcharts
or other records showing the Maximum Day Demand and the Peak Hour
Rate of the year shall be furnished to Customer with the October
billing.
5 . 5 Bills for water service shall be rendered to Customer monthly
by Fort Worth. All such bills shall be due and payable by Customer
not more than thirty ( 30) days from the billing date. The bills
will show current charges, as well as past-due charges , if any.
Past-due charges shall be the total amount unpaid from all prior
billings as of the current billing date. Payments received by Fort
Worth shall first be applied to the past-due charges, if any, and
thereafter to the current charges .
5. 6 If Customer disputes a bill and is unable to resolve the
difference informally, Customer shall notify the Director in
writing. If the Director and Customer are unable to resolve the
disputed bill, agreement on the bill will be determined by third
party arbitration, as hereinafter provided. Dispute of a bill shall
not be grounds for non-payment. In the event a payment is not paid
as specified in this agreement, a finance charge of ten percent
( 10%) per annum will be calculated from the date which the payment
was required to be made . In the event that a billing adjustment is
agreed upon or established by arbitration the amount found to be
incorrect will be credited to Customer's account together with an
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interest charge of ten percent ( 10%) per annum calculated from the
date payment of the disputed bill was received.
6 .
Rates
6 . 1 Method of Rate Determination
6 . 1 . 1 Wholesale water rates will be based upon a cost-of-service
rate study performed by independent utility rate consultants as
provided for in Section 6 . 1 . 4 hereof. The independent utility rate
consultant shall be selected by the Director from a list of five
qualified firms submitted to the Director by the Water System
Advisory Committee. The cost of any such study shall be a System
Cost. All cost-of-service studies shall be conducted utilizing the
utility cost basis of determining revenue requirements applicable
to the wholesale customer class.
6 . 1 . 2 The cost-of-service for the wholesale class shall include
allocated reasonable and necessary operation and maintenance
expense, depreciation expense and a fair and reasonable return on
allocated capital facilities . To determine the allocation and
distribution of costs to the wholesale customer class, the
independent utility rate consultant shall consider at least the
following factors : total volume, rate of flow, metering, and
customer-related costs such as accounting, billing, and monitoring.
Capital-related costs will consist of depreciation expense and
return on original cost rate base. The rate base shall consist of
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all allocated capital facilities, not of depreciation and
contributions, and shall include construction work in progress, a
reasonable allowance for working capital, and a reasonable
inventory of materials and supplies necessary for the efficient
operation of the Fort Worth System. Records of the original cost
and the accumulated depreciation of all capital facilities shall be
maintained in the Fort Worth Fixed Asset Tracking System. These
records shall be available for inspection at the Fort Worth Water
Department during reasonable business hours upon request by
Customer.
6 . 1 . 3 Fort Worth shall be allowed an adequate opportunity to earn
a reasonable rate of return. The return shall be sufficient to
assure confidence in the financial soundness of the utility, shall
be adequate to maintain and support its credit, shall enable it to
raise the money necessary for the proper discharge of its public
duties, and shall be equal to the weighted average imbedded cost of
outstanding debt plus one and one-half percent ( 1-1/2%) .
6 . 1 . 4 For the Fiscal Years beginning October 1, 1993, 1996, 1999,
2002 , 2005 and 2008, a detailed wholesale water rate study will be
performed by an independent utility rate consultant selected by the
Director in conformance with Section 6 . 1 . 1 herein. The same
methodology used in the immediate previous rate study will be
utilized by the rate consultant so selected. In the interim Fiscal
Years between detailed rate studies, Fort Worth will adjust
wholesale water rates annually, using the same methodology as the
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last detailed rate study, and will utilize the actual operating
data for the twelve month period ending September 30th of the prior
year, adjusted for all known and measurable changes in cost data
that may have occurred since the last audited financial statement.
Such adjustments should allow for year-end trending and the
spreading of non-recurring expenses over an appropriate benefit
period.
6 . 1. 5 Changes in the wholesale water rate methodology will be
allowed if recommended by a majority vote of the Water System
Advisory Committee and approved by the Fort Worth City Council . For
purposes of this section, a majority is defined as any combination
of Fort Worth wholesale customers that took more than fifty percent
(50% ) of the wholesale water delivered by Fort Worth during the
immediate past Fiscal Year.
6 .2 Rates to be Used
6 .2 . 1 The charges for the initial period of this contract shall
be from the date of its execution through September 30, 1993, and
have been computed as follows:
The Treatment, Pumping and Transmission Charge shall be
$0 .4233 per 1, 000 gallons withdrawn by Customer.
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Subject to Section 6 .2 . 2 hereof, the raw water charge
shall be $0 . 6108 per 1, 000 gallons for Customers inside
the Tarrant County Water Control and Improvement District
#1, and $0 . 6984 for Customers outside the District. The
annual charge per MGD of Maximum Day Demand in excess of
Average Daily Use shall be $72 ,900 per MGD, and Maximum
Hour Demand in excess of the Maximum Day Demand shall be
$27,001 per MGD.
The service charge shall be $25 . 00 per month per meter.
6 . 2 . 2 The amount charged for raw water shall be increased or
decreased when the raw water cost paid by Fort Worth for water
available for treatment and sale to Customer is increased or
decreased as determined by the Tarrant County Water Control and
Improvement District No. 1 in accordance with Fort Worth City
Secretary Contract No. 12720, and adjusted for system losses and
street rental .
6 .2 . 3 The parties hereto agree that services obtained pursuant to
this contract are essential and necessary to the operation of
Customer's waterworks facilities and that all payments made by
Customer hereunder shall constitute reasonable and necessary
operating expenses of Customer's waterworks and wastewater systems
within the meaning of Article 1113, Vernon's Annotated Texas
Statutes, and the provisions of any and all resolutions of Customer
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authorizing the issuance of any revenue bonds of Customer which are
payable from its waterworks and wastewater systems .
6 . 2 .4 Customer agrees , throughout the term of this agreement, to
fix and collect such rates and charges for water service to be
supplied as will produce revenues in an amount equal to at least
(i) all of operation and maintenance expenses of such system,
including specifically its payments under this agreement; and ( ii)
all other amounts as required by law and the provisions of the
resolutions authorizing its revenue bonds or other obligations now
or hereafter outstanding, including the amounts required to pay all
principal of and interest on such bonds and other obligations .
6 . 2 . 5 Customer understands that the Fort Worth City Council has
the right to annually revise the rates charged to cover all
reasonable, actual, and expected costs . Revision of rates shall be
pursuant to the provisions set forth in this contract. Fort Worth
shall give Customer a minimum of six (6 ) months notice of intent to
revise rates . Fort Worth will furnish members of the Water
Advisory Committee a draft copy of the cost-of-service study of the
proposed rates sixty (60) days prior to Fort Worth submitting a
rate increase request to its City Council . Within thirty ( 30) days
of receiving the draft study, the Committee will submit its written
comments on the draft study to Fort Worth, and Fort Worth will
respond to these comments as soon thereafter as possible. If the
Committee has not provided its written comments within said period,
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the Committee is deemed to have accepted the proposed rates
contained in the draft study, and Customer agrees that it will be
bound by the rates as approved by the Fort Worth City Council . The
rates approved by the Fort Worth City Council shall be the rates to
be used in this contract for the succeeding Fiscal Year.
7 .
Payment for Water
Payment of charges to Fort Worth for water used by Customer
shall be made as follows :
7 . 1 The annual payment will be the charges computed based on all
water delivered by Fort Worth to Customer during the current Fiscal
Year using rates provided herein. For purposes of calculating the
annual payment, the current year will be the Fiscal Year during
which the water usage occurred. However, the minimum annual
payment, will be the greater of the following:
1) the charges calculated by applying the current Volume
Charge to Annual Consumption, the appropriate meter reading and
billing charge, and the Rate of Use Charge for the current Fiscal
Year; or
2 ) the current Fiscal Year Volume Charge, the appropriate
meter reading and billing charge, and the current Fiscal Year Rate
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of Use Charge applied to the average of the Maximum Day Demand
above Average Daily Use and the average of the Maximum Hour Demand
above Maximum Day Demand for the most recently completed three
Fiscal Years. The most recently completed three Fiscal Years will
include the current Fiscal Year; or
3) Twelve thousand dollars ($12,000) .
7 .2 The rate at which water is withdrawn by Customer from the
Fort Worth System shall be regulated by rate-of-flow controllers ,
pumps, or other approved methods . The rate of withdrawal shall be
controlled so that the maximum rate shall not exceed 1 . 35 times the
Maximum Day Demand experienced during the previous year unless
Customer has notified the Director in writing at least ( 6 ) months
prior to the date of the anticipated increase in the Maximum Day
Demand. The Director shall be furnished with all pertinent
information regarding the proposed increase in maximum rate of
withdrawal . The Director may waive all notice requirements if, in
his sole opinion, said notice is not necessary to protect the
interest of Fort Worth.
7 . 3 Except as provided for in section 8 below, the monthly
payment will be the greater of either one thousand dollars ( $1,000)
or a sum equal to the Volume Charge for the actual volume of water
taken plus one-twelfth ( 1/12 ) of the sum of the estimated Rate of
Use Charges and the appropriate Fiscal Year charges for meter
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reading and billing. For purposes of estimating the rate of use
payments, the current Fiscal Year Rate of Use Charges will be
applied to the prior Fiscal Year's Maximum Day Demand, Maximum
Hour Demand and Average Daily Use.
7 .4 The total annual payment for water by Customer shall be
related to the annual and peak volumes used by Customer during the
Fiscal Year, as determined by meters, telemetry equipment recording
devices, or other approved methods, subject to the annual payment
provisions set forth above. The October bill for September usage
shall reflect any necessary adjustment to the annual payment due to
actual rates of withdrawal from the Fort Worth System.
Example:
The rate used in the example is based on Customer not being in
Tarrant County Water Control and Improvement District No. 1 and
water being withdrawn at one metering station, and the Volume
Charge and Rate of Use Charges in effect until September 30, 1992 .
Rate
of Monthly
Usage Volume Use Service
Month Consumption Charges Charges Charges Total
Oct. 1, 000, 000 $ 1, 151 .20 $ 1 , 504 .97 $25 $ 2,681 . 17
Nov. 1, 000,000 1, 151 .20 1, 504 . 97 25 2,681. 17
Dec . 1,000,000 1, 151 .20 1, 504 . 97 25 2,681 . 17
Jan. 1,000, 000 1, 151 .20 1, 504 . 97 25 2,681. 17
Feb. 1,000,000 1, 151 .20 1,504 . 97 25 2,681 . 17
March 2 ,000,000 2, 302 .40 1, 504 . 97 25 3,832 .37
April 3,000,000 3,453 .60 1,504 . 97 25 4,983.57
May 3,000,000 3,453 . 60 1,504 . 97 25 4,983.57
June 3,000,000 3,453 . 60 1, 504 .97 25 4,983.57
July 3,000,000 3,453 .60 1,504 . 97 25 4,983.57
August 4,000,000 4,604 .80 1, 504 . 97 25 6, 134 . 77
Subtotal 23,000,000 $26,477 .60 $16,554 . 67 $275 $43,307 .27
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Sept. 3, 000, 000 3,453 . 60 3, 105 . 60 25 6,559 .20
26, 000, 000 $29 , 931 .20 $19, 660 . 27 $300 $49, 866 .47
Prior Year Rate Of Use Calculation
( for use in estimated monthly Rate of Use Charge)
Average Daily Use for the prior year = 60, 000 gallons
Maximum Day Demand for the prior year = 175, 000 gallons
Maximum Hour Demand for the prior year = 480,000 gallons
Maximum Day Demand above Average Daily Use = 115 , 000 gallons
Maximum Hour Demand above Maximum Day Demand = 305, 000 gallons
Monthly Excess Maximum Day and Hour Payment Calculation
. 115 mg X $84, 403 $ 9 , 706 . 35 (Maximum day)
. 305 mg X $27, 388 8, 353 . 34 (Maximum hour)
Total $18, 059 . 69
Monthly Rate of Use Payment (Total Divided by 12 )= $1,504 . 97
A. The annual payment calculation will be computed on the basis
of the current year maximum usage rates or the average of the
maximum usage rates of the most recent three Fiscal Years,
whichever is greater. In Example A, the current year exceeds
the average of the most recent three Fiscal Years .
Current Year Rate Of Use Calculation
Average Daily Use for the year = 71, 233 gallons
Maximum Day Demand for the current year = 200, 000 gallons
Maximum Hour Demand for the current year = 520,000 gallons
Maximum Day Demand above Average Daily Use = 128, 766 gallons
Maximum Hour Demand above Maximum Day Demand = 320, 000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 1991 1990
Maximum Day Demand
above Average Daily Use 128, 766 115,000 130,000
Maximum Hour Demand
above Maximum Day Demand 320, 000 305 , 000 325,000
Three year average of Maximum Day Demand
above Average Daily Use 124,589
Three year average of Maximum Hour Demand
above Maximum Day Demand 316, 667
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Customer's annual payment will be based on the greater of the
current year maximum usage rates or the average of the maximum
usage rates of the most recent three Fiscal Years .
Annual Payment Calculation FY 192 Rates
(Based on Current Year Data)
26 ,000 X $ 1 . 1512 $29 . 931 .20
. 1288 mg X $84 ,403 10, 871 . 11
. 3200 mg X $27, 388 8,764 . 16
12 X $25 X 1 300 . 00
Total Annual Payment $49,866 .47
Previous Billings for
October through August Usage 43, 307 . 27
October Billing for September
Usage $ 6,559 . 20
B. Example of computation when the average of the maximum usage
rates of the most recent three Fiscal Years is greater than the
current Fiscal Year rate of use:
Current Year Rate of Use Calculation
Average Daily Use for the current year = 71,233 gallons
Maximum Day Demand for the current year = 200, 000 gallons
Maximum Hour Demand for the current year = 520,000 gallons
Maximum Day Demand above Average Daily Use = 128, 766 gallons
Maximum Hour Demand above Maximum Day Demand = 320,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 1991 1990
Maximum Day Demand
above Average Daily Use 128,766 130,234 130,000
Maximum Hour Demand
above Maximum Day Demand 320,000 323, 010 325, 000
Three year average of Maximum Day Demand
above Average Daily Use 129 ,670
Three year average of Maximum Hour Demand
above Maximum Day Demand 322,670
Customer's annual payment will be based on the greater of the
current Fiscal Year maximum usage rates or the average of the
maximum usage rates of the most recent three Fiscal Years .
Annual Payment Calculation FY 192 Rates
(Based on average of most recent three years)
26 , 000 X $1 . 1512 $29,931 . 20
. 1297 mg X $84 ,403 10,947 .07
. 3227 mg X $27, 388 8,838 . 11
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12 X $25 X 1 300 . 00
Total Annual Payment $50, 016 . 38
Previous Billings for
October through August Usage 43, 307 . 27
October Billing for September
Usage $ 6 , 709 . 11
8.
Effective date of contract
8. 1 The effective date of this contract for all purposes will be
October 1, 1992 .
9 .
Life of contract
9 . 1 This contract shall expire on December 31, 2010, and may be
renewed on terms mutually agreeable to the parties hereto.
10.
Rights-of-way
10 . 1 Customer shall grant, without charge to Fort Worth, such
easements and rights-of-way along public highways or other property
owned by Customer, as requested by Fort Worth, in order to
construct or maintain mains or facilities within the service area
of Customer to provide water to Customer and to other areas . Upon
notice from Customer and at Fort Worth's expense, Fort Worth will
move such water mains or facilities located in such street
rights-of-way, or other property owned by Customer when reasonably
necessary to the performance of essential governmental duties by
Customer. Fort Worth shall grant, without charge to Customer, such
easements and rights-of-way along public highways or other property
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owned by Fort Worth, as requested by Customer, in order to
construct and maintain water mains or facilities within Fort Worth
to provide water to Customer. Upon notice from Fort Worth and at
Customer's expense, Customer will move such water mains or
facilities when located in such street rights-of-way or other
property owned by Fort Worth when reasonably necessary to
performance of essential governmental duties by Fort Worth. All
work done by or on behalf of Fort Worth under this paragraph will
be performed in accordance with specifications equal to those
applying to work of a similar nature performed within Fort Worth,
but neither party hereto will be required to restore the other's
property to a condition exceeding its original condition, unless
otherwise mutually agreed in writing. Fort Worth and Customer
agree to coordinate the location of the mains and/or facilities in
the other's easements and rights-of-way in order to prevent further
conflicts insofar as is reasonably practicable.
11 .
State Agency Approval
11 . 1 The Customer System shall be approved by the Texas State
Agency having jurisdiction and authority to inspect and regulate
such system during the life of this contract . If at any time the
Customer System is not approved by the said State Agency, or if
Customer does not have an active cross-connection control program,
there shall not be any direct physical connection between the Fort
25
Worth System and the Customer System unless an approved backflow
prevention device has been provided and installed and this
installation has been approved by the State Agency. All expenses
to provide and install backflow prevention device(s) will be borne
by Customer. As of the date of execution of this contract, the
Stage Agency having jurisdiction and authority is the Texas Water
Commission.
12 .
Resale of Water
12 . 1 Customer agrees that it will not share facilities for water
system use with any other governmental or corporate entity outside
of the certificated area of Customer, commonly known and referred
to as its service area, without the express written consent of Fort
Worth, which consent shall not be unreasonably withheld.
Customer's service area as of the date of the execution of this
contract is shown on Exhibit "B" which is attached to and made a
part hereof for all purposes . Fort Worth neither recognizes nor
approves any existing agreements entered into by Customer with
other governmental or corporate entities outside its service area,
except for those entities shown on Exhibit "C" which is attached
hereto and made a part hereof for all purposes .
12 . 2 Customer agrees that it will not enter into any resale or
transportation agreement other than as a part of its normal
26
offering and supply of water to existing and future subscribers to
its water system without the recommendation of the Water System
Advisory Committee and express written consent of Fort Worth.
13 .
Sanitary Sewer Facilities
13 . 1 The Customer agrees that it will require all of its
customers, who are provided water from the Fort Worth system, to
have adequate sanitary sewage facilities meeting State Agency
requirements .
14 .
Additional Parties
14 . 1 Fort Worth will use its best efforts to provide an adequate
water supply for all of its customers . Prior to the approval of
additional wholesale customers, Fort Worth will provide reasonable
assurances that the projected five-year water demands of the
then-existing wholesale customers so served and the proposed
additional customer can be adequately fulfilled. Fort Worth will
consult with the Water System Advisory Committee prior
to contracting with additional parties .
27
15 .
Water System Advisory Committee
15 . 1 Customer's governing body shall annually appoint a
representative to be a voting member of the Water System Advisory
Committee, whose purpose shall be to consult with and advise Fort
Worth, through the Director, on matters pertaining to conservation,
wholesale planning, improvements, grants, wholesale rate studies,
administration, budgets, and additional wholesale customers,
whether same be wholesale customers of Customer or Fort Worth. The
Committee may establish bylaws governing the election of officers,
meeting dates and other matter pertinent to its functioning.
16 .
System Access Fees
16 . 1 On a quarterly basis, Customer agrees to pay to Fort
Worth a Wholesale System Access Fee for each new or enlarged
connection for water service made within Customer's service area
served by the General Benefit Facilities of the Fort Worth Water
System. The Wholesale System Access Fee to the Customer for each
such connection shall be based upon the size of water meter and
shall be equal to the Wholesale System Access Fee collected for the
same size water meter made within the jurisdiction of Fort Worth.
The calculation of said Wholesale System Access Fee shall be
consistent with all applicable state and federal regulations,
including Chapter 395, Texas Local Government Code, or any
28
amendment or successor statute thereto, and shall include only
those costs associated with General Benefit Facilities expansions
and capital improvements necessary to provide service to new
development. Nothing within this contract shall be deemed to
prevent either Fort Worth or Customer from charging their own
retail customers impact fees in excess of the Wholesale System
Access Fee provided for herein.
16 .2 Fort Worth agrees that all monies remitted to it
pursuant to this Section will be placed in a separate interest
bearing account to pay only for the cost of constructing capital
improvements or facility expansions as permitted by Chapter 395,
Texas Local Government Code, or any amendment thereto, or by any
successor statute thereto, and will not be used for operation and
maintenance expenses . Once expended, such funds and all interest
earned thereon will be considered a "contribution" for rate setting
purposes only.
16 . 3 Customer shall provide to Fort Worth such information
that relates to the making of new and/or enlarged connections
within its jurisdiction as may be requested by the Director,
including but not limited to building permits, with each quarterly
payment required in this section.
16 .4 Neither Fort Worth nor Customer shall waive any impact
fee due from new or enlarged connections to its respective system
29
within its jurisdiction. However, either Fort Worth or Customer
may pay such impact fee into the fund required for paying for the
capital improvements .
16 . 5 The Water System Advisory Committee created pursuant to
Section 15 hereof shall select five (5) of its members to a
subcommittee to be known as the Customer Impact Fee Committee
(CIFC) . Every three years, beginning June, 1992, Fort Worth will
update the land use assupmtions and capital improvements plan upon
which the Wholesale System Access Fees are based. In June 1992 and
every three years thereafter, the CIFC shall submit a list of five
qualified engineers or planning consultants to the Director. The
Director shall select a consultant from such list to assist Fort
Worth in developing land use assumptions, identifying capital
improvements, and formulating capital improvement plans and access
fees . The consultant shall be responsible to Fort Worth and its
citizen's advisory committee, but shall also report to the CIFC.
The cost of the consultant shall be deemed a System Cost. In the
event the CIFC fails to submit a list of five consultants to Fort
Worth, Fort Worth shall select a consultant to perform in the
manner described herein.
16 . 6 Fort Worth agrees that only those capital improvements
as defined in section 1 . 18 hereof shall be included in the capital
improvements plan for the purpose of determining Wholesale System
Access Fees; provided however, Fort Worth may include other capital
30
improvements for the purpose of determining impact fees to its own
retail customers . Fort Worth shall not be required to include all
capital improvements in any capital improvements plan. The CIFC
shall be responsible for working with Fort Worth and its consultant
to determine the capital improvements to be included in the
calculation of any Wholesale System Access Fees . The CIFC shall
recommend to the Water System Advisory Committee which capital
improvements should be included in the calculation of any Wholesale
System Access Fees . The CIFC shall also meet with Fort Worth's
citizen advisory committee as such citizen's advisory committee
reviews and considers land use assumptions, the capital
improvements plan and impact fees .
16 . 7 Prior to the adoption of any land use assumptions,
capital improvements, or access fees by Fort Worth, the CIFC shall
be furnished a copy of the proposed land use assumptions, capital
improvement plan or access fees at least 30 days prior to any
scheduled hearing thereon. Any revised access fee adopted pursuant
to such updated capital improvements plan shall not take effect for
a period of at least ninety (90) days after adoption by Fort Worth.
16 . 8 Each year Fort Worth shall provide to the Wholesale
Water Advisory Committee an audited financial statement of the Fort
Worth Water Department's records .
31
16 .9 For the period of time from October 1, 1992 until June
5, 1993, Customer agrees to pay to Fort Worth the water access fees
per new connection based upon Exhibit "A" attached hereto and
incorporated herein for purposes and intents . After June 5, 1993,
Customer agrees to pay access fees in such amounts as may be
determined in the manner provided in this Section 16 .
16 . 10 Fort Worth and Customer agree that the methodology for
the calculation of Wholesale System Access Fees required herein
shall be consistent with the methodology prescribed by Chapter 395,
Texas Local Government Code, or any amendment or successor statute
thereto. In the event that such statutory methodology is amended or
replaced by a new statute, the Wholesale Water Advisory Committee
may engage legal counsel to work with Fort Worth to propose
amendments to this contract to conform it to such amendment or new
statute. The reasonable cost of such legal counsel shall be system
cost.
17 .
Termination
17 . 1 This agreement may be terminated in whole or in part by the
mutual consent of Customer and Fort Worth. Notwithstanding
anything contained herein to the contrary, any material breach by
either party hereto to perform any of the duties or the obligations
assumed by such party hereunder or to faithfully keep and perform
any of the terms, conditions and provisions hereof shall be cause
32
for termination of this agreement by either party in the manner set
forth in this paragraph. Fort Worth shall deliver to Customer
ninety ( 90) days prior written notice of its intention to so
terminate this agreement if Customer fails to cure or adjust such
material breach, including in such notice a reasonable description
of the breach. If within said ninety ( 90) days Customer shall fail
or refuse to cure such material breach to the satisfaction of Fort
Worth, then and in such event, Fort Worth shall have the right,
with six months additional advance written notice to Customer and
without any liability whatsoever on the part of Fort Worth, to
declare this agreement terminated. In the event of termination of
this agreement, all rights, powers, and privileges of Customer
hereunder shall cease and terminate and Customer shall make no
claim of any kind whatsoever against Fort Worth, its agents or
representatives, by reason of such termination or any act incident
thereto, provided Fort Worth acted reasonably and such termination
was not unreasonable, arbitrary and capricious. Fort Worth shall
advise Customer in writing immediately upon acceptance of the cure
of any breach.
17 .2 In the event Fort Worth shall ration the use of water
throughout its corporate limits or issue water conservation
measures or restrict the use of water in any way as provided for in
Section 2 . 3 hereof, and Customer fails or refuses to institute and
apply the same rationing, conservation, or restrictions to the use
of the water by the customers of Customer, Customer shall be in
33
breach of this agreement. The notice provisions as contained in
Section 17 . 1 hereof shall not apply and the Director, in his sole
discretion, shall, in writing, set such time in which the Customer
shall cure said breach. If Customer fails or refuses to cure said
breach within the stated time, then and in such event, after six
(6) months written notice provided to Customer and without any
liability whatsoever on the part of Fort Worth, Fort Worth shall
have the right to declare this agreement terminated. In event of
termination of this agreement, all rights, powers, and privileges
of Customer hereunder shall cease and Customer shall make no claim
of any kind whatsoever against Fort Worth, its agents, or
representatives, by reason of such termination or any act incident
thereto, provided Fort Worth acted reasonably and such termination
was not unreasonable, arbitrary and capricious .
17 . 3 Irrespective of whether or not a breach hereof is a material
breach or a non-material breach, and irrespective of any cure of
such breach, a second breach of the same nature violating any term
or condition herein shall entitle Fort Worth, after six ( 6 ) months
written notice provided to Customer and without any liability
whatsoever on the part of Fort Worth, to declare this agreement
terminated. In event of termination of this agreement, all rights,
powers, and privileges of Customer hereunder shall cease and
Customer shall make no claim of any kind whatsoever against Fort
Worth, its agents, or representatives, by reason of such
termination or any act incident thereto, provided Fort Worth acted
34
reasonably and such termination was not unreasonable, arbitrary and
capricious .
17 .4 The following breach, default or failure to perform a duty
or obligation shall be considered to be a material breach:
a. Failure to adopt and enforce any resolution or
conservation measure or rationing required to be
adopted and enforced herein;
b. Failure to make any payment of any bill, charge or
fee as provided for in this agreement;
C . Making any connection to the Fort Worth System at
any point except as provided in Section 3 .2
hereof;
d. Failure to correct any potentially hazardous
connection in accordance with Section 11 after
reasonable written notice.
e. Failure to provide Fort Worth ingress and egress
for purposes of operation and maintenance of any
metering facility;
35
f. Failure to provide Fort Worth rights-of-way as
required herein.
17 . 5 In the event of non-material breach, default or failure to
perform duties under this agreement, Fort Worth shall deliver to
Customer sixty ( 60) days advance written notice of such default.
If Customer fails to cure such breach, default or failure, then
Fort Worth shall give Customer written notice of such failure to
cure and may surcharge Customer Five Thousand Dollars ( $5,000) per
month until such time as Customer cures such non-material breach.
17 . 6 Any failure by Fort Worth to so terminate this agreement or
the acceptance by Fort Worth of any benefits under this agreement
for any period of time after such material breach, default or
failure by Customer shall not be determined to be a waiver by Fort
Worth of any rights to terminate this agreement for any subsequent
material breach, default or failure.
17 . 7 Any failure by Customer to so terminate this agreement or
the acceptance by Customer of any benefits under this agreement for
any period of time after such material breach, default or failure
by Fort Worth shall not be determined to be a waiver by Customer of
any rights to terminate this agreement for any subsequent material
breach, default or failure.
36
18 .
Ownership and Liability
18. 1 No provision of this agreement shall be construed to create
any type of joint or equity ownership of any property, any
partnership or joint venture, nor shall same create any other
rights or liabilities and Customer payments (whether past,
present,or future) shall not be construed as granting Customer
partial ownership of, pre-paid capacity in, or equity in the Fort
Worth System.
18.2 Liabilities for damages arising from the proper treatment,
transportation and delivery for all water provided hereunder shall
remain with Fort Worth to the point of delivery and, upon passing
through the meter, liability for such damages shall pass to the
Customer, save and except that Fort Worth's sole responsibility is
to provide to Customer water of a quality which meets state and
federal drinking water standards . Each party hereto agrees to save
and hold the other party harmless from all claims, demands, and
causes of action which may be asserted by anyone on account of the
quality, transportation and delivery while water is in the control
of such party. This covenant is not made for the benefit of any
third party. Fort Worth takes the responsibility as between
parties hereto for the proper treatment, quality, transportation,
and delivery of all such water provided by it to the point of
delivery.
37
18 . 3 Contracts made and entered into by either Customer or Fort
Worth for the construction, reconstruction or repair of any
Delivery Facility shall include the requirement that the
independent contractor(s) must provide adequate insurance
protecting both the Customer and Fort Worth as co-insureds . Such
contract must also provide that the independent contractor(s)
covenant to indemnify, hold harmless and defend both the Customer
and Fort Worth against any and all suits or claims for damages of
any nature arising out of the performance of such contract.
19 .
Force Majeure
19 . 1 If by any reason of force majeure either party hereto shall
be rendered unable, wholly or in part, to carry out its obligations
under this agreement, other than the obligation of the Customer to
make payments required under the terms hereof, then if such parties
shall give notice and full particulars of such force majeure in
writing to the other party within a reasonable time after the
occurrence of the event or cause relied on, the obligation of the
party giving such notice, so far as it is affected by such force
majeure, shall be suspended during the countinuance of the
inability then claimed, but for no longer period, and such part
shall endeavor to remove or overcome such inability with all
reasonable dispatch.
19 .2 The term "force majeure" , as employed herein, shall mean
acts of God, strikes, lockouts or other industrial disturbances,
38
acts of public enemy, orders of any kind of the government of the
United States or the State of Texas, or any civil or military
authority, insurrection, riots, epidemics, landslides, lightning,
earthquake, fires, hurricanes, storms, floods, washouts, droughts,
arrests, restraints of government and people, civil disturbances,
explosions, breakage or accidents to machinery, pipelines or
canals, partial or entire failure of water supply, and inability on
the part of Fort Worth to deliver water hereunder or the Customer
to receive water hereunder on account of any other cause not
reasonably in the control of the party claiming such inability.
20 .
Notices
20 . 1 Any notice, communication, request, reply or advice herein
provided or permitted to be given, made or accepted by either party
to the other party must be in writing to:
City of Fort Worth: Water Director
City of Fort Worth
1000 Throckmorton Street
Fort Worth, TX 76102
Customer: District Manager
Trophy Club MUD No. 1
100 Municipal Drive
Trophy Club, Texas 76262
39
The parties hereto shall indicate in writing any change that may
occur in such respective addresses from time to time.
21 .
Inspection and Audit
21. 1 Complete records and accounts required to be maintained by
each party hereto shall be kept for a period of five (5) years .
Each party shall at all times, upon notice, have the right at
reasonable times to examine and inspect said records and accounts
during normal business hours; and further, if required by any law,
rule or regulation, make said records and accounts available to
federal and/or state auditors .
22 .
Miscellaneous
22 . 1 Fort Worth and Customer agree that if Fort Worth should
enter into any future contract for supplying treated water to any
municipality under more favorable terms or conditions than set
forth herein, this contract shall be amended to provide the same
terms and conditions with respect to the sale of treated water to
Customer.
22 . 2 During a temporary emergency condition created by
unforeseeable mechanical failure or by unprecedented high rate of
water usage such as might result from a major fire or a major water
main break, it may be necessary that water be withdrawn from the
Fort Worth System at a rate of usage in excess of that required for
40
the usual peak requirements of Customer. It is agreed that extra
Rate of Use Charges that would normally be applicable shall not
apply for such bona fide emergency withdrawals provided that Fort
Worth is notified in writing within 48 hours of the occurrence of
an emergency condition. In any event, the volume and Rate of Use
Charges for all water delivered shall be due and payable as
described elsewhere herein.
22 . 3 At the request of the Director, Customer agrees to furnish
water to areas and premises situated adjacent to the boundary of
Customer and within the boundaries of Fort Worth. The metered
quantity of water used in this area each month by Fort Worth shall
be the total of all individual customer meter readings . At the
option of Customer or Fort Worth, a master meter may be installed
where practicable at the expense of Fort Worth to meter all water
used by Fort Worth under the terms of this section.
22 . 4 The metered quantity of water furnished by Customer to Fort
Worth shall be deducted from the total quantity of water withdrawn
from the Fort Worth System by the Customer before the charge for
water service to Customer is computed in accordance with the
payment computations set forth and based on the Volume Charge
described herein and the quantity of water so withdrawn from the
Fort Worth System.
41
22 .5 This agreement is subject to all applicable federal and
state laws and any applicable permits , amendments, orders, or
regulations of any state or federal governmental authority having
or asserting jurisdiction, but nothing contained herein shall be
construed as a waiver of any right to question or contest any such
law, order, rule or regulation in any forum having jurisdiction.
22 . 6 Customer agrees to abide by any changes in this agreement
made necessary by any new, amended, or revised state or federal
regulation.
22 . 7 Upon prior notice by Fort Worth, any duly authorized
employee of Fort Worth bearing proper credentials and
identification shall notify Customer of need for access to any
premises located within Customer's service area or served by
Customer as may be necessary for the purpose of inspections and
observation, measurements, sampling and testing and/or auditing, in
accordance with the provisions of this contract. Customer may
elect to accompany the Fort Worth representative. To the extent
permitted by law, Fort Worth agrees to indemnify Customer for any
damage or injury to person or property caused by the negligence of
such duly authorized employee while such employee is in the course
and scope of his employment.
22 . 8 Whenever any disputed matter herein is to be specifically
determined by the use of an arbitrator, the following procedure is
42
to be followed. The party requesting that the dispute be settled
by arbitration shall serve on the other party a request in writing
that such matter be handled by arbitration. Customer and Director
shall mutually agree in writing on the selection of an impartial
arbitrator. Such agreement shall be made within ten ( 10) days from
the date that the request for arbitration is received. If an
agreement is not reached on the selection of the impartial
arbitrator on or before the tenth ( 10th) day after the date that
notice is received, the Director shall immediately request a list
of seven qualified neutral arbitrators from the American
Arbitration Association or the Federal Mediation and Conciliation
Service, or either's successor in function. The Customer and
Director may mutually agree on one of the seven arbitrators on the
list. If they do not agree within five (5) working days after the
receipt of the list, Customer and Director shall alternate striking
a name from the list and the name remaining shall be the impartial
arbitrator. Customer and Director shall mutually agree on a date
for the arbitration hearing. The decision of the arbitrator shall
be final, and judgment may be entered upon it in accordance with
applicable law in any court having jurisdiction thereof. All costs
of arbitration shall be considered a System Cost .
22 .9 If requested by the Director, Customer shall provide
quarterly the following data:
43
Actual number of customer accounts consuming directly or
indirectly from the Customer System within its service area;
Classification of domestic and nondomestic accounts within
its service area by number and percentage of accounts consuming
directly or indirectly from Customer System within its service
area.
Customer water usage from all sources other than the Fort
Worth System, including, but not limited to, ground water, other
surface water, and water supply agreements with other entities .
Additional data which may assist Fort Worth and/or Customer
in developing methodology for cost of service studies, planning
studies for analyzing federal grants , and System Access Fees;
provided, however, that neither party shall request data that will
require either party to incur unreasonable expenses in providing
such data.
22 . 10 Customer may not assign this agreement without the prior
written consent of Fort Worth. Fort Worth may not assign this
agreement without the prior written consent of Customer; provided,
however, in the event Fort Worth is designated as a regional water
authority or agency by a duly authorized regulatory body, or if
Fort Worth should elect to contract with or assign this contract to
a regional water authority to provide all or part of the services
44
covered by this agreement, the participants hereto agree that any
such regional water authority may, by way of assignment of this
agreement, assume and receive the same obligations and
responsibilities, the same benefits as Fort Worth; further,
Customer hereby grants to Fort Worth the specific right to assign
this agreement to such regional water authority.
22 . 11 This agreement terminates that certain contract known as
Fort Worth City Secretary Contract No. 10381 as amended between the
parties .
23 .
23 . 1 No waiver by either party hereto of any term or condition of
this agreement shall be deemed or construed to be a waiver of any
other term or condition or subsequent waiver of the same term or
condition.
23 .2 In addition to any other remedy as may be provided by law,
this agreement shall be specifically enforceable by the parties
hereto. Venue for any action shall be in Tarrant County, Texas .
23 . 3 It is agreed that, in the event any term or provision herein
contained is held to be invalid by any court of competent juris
dicition, the invalidity of such term or provision shall in no way
affect any other term or provision contained herein; further, this
45
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 to be hereto affixed on the date above written.
ATTEST: CITYOF FO T WO
Mvvj
By: By:
Alice Church, City Secretary Assistant City Manger
City of Fort Worth
APPROVED AS TO FORM AND LEGALITY:
2
ity Att ey, City of Fort Worth
A-�—
Contraot kuthorization
Date: -
Date
AOROVAL/IECOMMEN D
1
Ric a d W. Sawey, Direc or
City of Fort Worth Water Department
ATTEST: TROPHY CLUB MUNICIPAL
DISTRICT NO. 1
By: Jyw—a
- Board Secretary resident of the Board
APPRO TO AND LEGALITY:
Attorney for Trophy Club Municipal
District No. 1
Date: '?Z ZZ
48
EXHIBIT "A"
WATER ACCESS FEES
[ See Paragraph 16 . 9 ]
Impact fee collection schedule to be collected , effective October
1 , 1992 , until June 5 , 1993 .
WATER WASTEWATER
METER EOUIV . IMPACT IMPACT
SIZE FACTOR FEE FEE
3/4" 1 $ 335 . 60 $ 514 .00
1" 1 . 75 587 . 30 899 . 50
1-1/2" 4 1 , 342 . 40 2 ,056.00
2" 7 2 , 349 . 20 3 , 598 . 00
3" 16 5 , 369 . 60 8 , 224 .00
4" 28 9 , 396 . 80 14 , 392 . 00
6" 64 21 , 478 . 40 32 , 896.00
8" 100 33 , 560 . 00 51 , 400 . 00
10" 150 50 , 340 . 00 77 , 100 .00
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EXHIBIT "C"
CUSTOMER' S EXISTING WHOLESALE CUSTOMERS
[See Paragraph 12 . 1 ]
1 . Utility Contract Between Trophy Club Municipal Utility
District No. 1 and the City of Southlake, dated April 7, 1988,
as extended on May 7, 1991 .
2 . Water Service Contract Between Trophy Club Municipal Utility
District No. 1 and the City of Roanoke, dated August 16 , 1988,
as extended effective as of October 1, 1991 .
3 . Contract for Water and Wastewater Services Between Trophy Club
Municipal Utility District No. 1 and the City of Southlake,
dated February 4 , 1992 .
City of Fort Worth, Tex".7
M
qyor and Council Communication
—F
DATE REFERENCE NUMBER LOG NAME PAGE
06/16/92 C-13415 60TROPHY 1 of 2
SUBJECT PROPOSED PURCHASE OF 21" WATER TRANSMISSION MAIN AND APPROVE WHOLESALE WATER
CONTRACT WITH TROPHY CLUB MUD
RECOMMENDATION:
It is recommended that the City Council :
1 . Authorize the City Manager to execute a contract to acquire a 21" water line from
Trophy Club Municipal Utility District (MUD) No. 1 at a cost of $718,000.00, and
�. Authorize the City Manager to execute a uniform wholesale water contract with
Trophy Club MUD.
DISCUSSION:
On May 5, 1992 City Council approved a Community Facilities Agreement with Hillwood
Construction Corporation, developer of Alliance Gateway Phase I , to provide city
services to an area in which the Nestle Distribution Center will be located. The CFA
allowed water service to be provided to this development either by constructing new
water lines or by providing water service via the 21" water line owned by Trophy Club
MUD. The existing wholesale water contract with Trophy Club MUD would allow Fort Worth
to tap into the line but as the line is gravity fed, it would require pressurizing in
order to meet fire protection requirements of the development.
Negotiations with the Trophy Club MUD to acquire the line resulted in agreement of
several key points:
1. Trophy Club will provide temporary water service to the development until sale of
the main occurs, and
2. The agreed-to price includes all compensation to Trophy Club MUD for the 21" line,
permits, and easements, as well as recognition of all prior contributions to
shared facilities (i .e. , Trophy Club's unammoritized monetary contribution to the
Beach Street storage tank) , and
3. A commitment of both parties to enter a uniform wholesale water agreement under
the same general terms as Fort Worth's other wholesale customers.
The most cost effective and viable alternative is for Fort Worth to purchase the line
from Trophy Club. The sale price represents a substantial savings over the replacement
cost of that pipeline; the cost to purchase right-of-way, and to design and construct
29,966 linear feet at 21" line is estimated to be $1,681,000.00. Purchase of the
Trophy Club line resolves additional water related issues such as increased reliability
of service, allows for expansion of the customer base, facilitates the Water
Department's efforts to maintain satisfactory water quality in the northeast part of
the service area and places Trophy Club on parity with all other water contract
jurisdictions.
Primed on regded paper
City of Fort Worth, Texas
Mayor and Council Cmmnunication
DAT REFERENCE NUNBER 17M NANE PAGE
06/16/92 C-13415 60TROPHY f
2 of 2
SUBJECT PROPOSED PURCHASE OF 21" WATER TRANSMISSION MAIN AND APPROVE WHOLESALE WATER
CONTRACT WITH TROPHY CLUB MUD
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that funds required for this contact are
available in the current Capital Budget, as appropriated, of the Commercial Paper Water
Fund.
MG:t
Su itte or City Manager's FUND ACCOUNT CEifff—T AMOUNT CITY SECRETARY
Office by: to
Mike Groomer6140 - APPROVED
Originating Dep.artMent Head: CITY COUNCIL
Richard Sawey 8207rom im 16 10
PW77 541300 06077014014C $718,000.00 ` ` M� ,
For Additional Inforuation ��.�
Contact: - � .spap* ,of
yat ►,'iJes+os
Richard Sawey 8207 ty`
PrWftd on rerycMd paper