HomeMy WebLinkAboutRes 99-01 Approving a Contract for Water Service with the City of Fort Worth RESOLUTION NO. 99- 01
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE, TEXAS, APPROVING A CONTRACT FOR WATER SERVICE
BETWEEN THE CITY OF FORT WORTH, TEXAS, AND TOWN OF
WESTLAKE, TEXAS; AUTHORIZING THE MAYOR TO EXECUTE THE
CONTRACT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the Town of Westlake desires to furnish water to customers within
its boundaries; and
WHEREAS, the City of Fort Worth owns, operates, and maintains facilities for
processing and distributing potable water to customers outside its corporate boundaries
and can provide a water supply to the Town of Westlake to meet its present and future
needs,- and
WHEREAS, the City of Fort Worth requires wholesale customers to execute a
water supply contract as a condition to receiving potable water from Fort Worth; NOW,
THEREFORE,
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE, TEXAS:
SECTION 1: That the Contract for Water Service Between the City of Fort
Worth, Texas, and the Town of Westlake, Texas, attached hereto as Exhibit "1" and
incorporated herein, is hereby approved and the Mayor of the Town of Westlake is
hereby authorized to sign the contract on behalf of the Town.
SECTION 2: That this resolution is effective from and after the date of its
passage.
PASSED AND APPROVED BY THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE, TEXAS, ON THE 8Tx DAY OF FEBRUARY, 1999.
SC0_TTBR LEY,MAY
ATTEST:
/a-,
Inge rosswy, Town Secr ry
APPROVED AS TO FORM:
Paul C. Isham, Town Attorney
CITY SECRETARY
CONTRACT NO.
CONTRACT FOR WATER SERVICE BETWEEN
THE CITY OF FORT WORTH, TEXAS, AND
TOWN OF WESTLAKE, TEXAS
STATE OF TEXAS §
COUNTY OF TARRANT §
This contract and agreement is made and entered into this the _jy1day of
F 1999, by and between the City of Fort Worth, a municipal corporation located in
Tarrant and Denton Counties, Texas, acting by and through Mike Groomer, its duly
authorized Assistant City Manager, hereinafter called "Fort Worth," and the Town of
Westlake, located in Tarrant County, Texas, acting by and through Scott Bradley, its duly
authorized Mayor, hereinafter called "Customer."
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 potable water, both within and
without the corporate boundaries of Fort Worth; and,
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 boundaries, 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 potable 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, Customer desires to contract for the purchase of potable water and
Fort Worth desires to sell potable water to Customer; and
WHEREAS, Section 402.001 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 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.
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
potable 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
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facilities, control 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 Regional Water District 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%).
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
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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.
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 potable 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, now known as the
Tarrant Regional Water District, 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.
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 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
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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 devices,
and 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. Customer shall pay for the meter vault and all metering
equipment, including telemetering equipment to the Fort Worth control center, and
appurtenances, plus the installation cost thereof. 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 potable water by Fort Worth shall be the
meter vault connection to Customers 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.
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.
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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 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 potable 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
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third party arbitration, as hereinafter provided.
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 that have
not been previously billed and paid. A copy of the rate of flow charts 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 Fort Worth shall render bills for water service to Customer monthly. 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,
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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 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 all allocated capital facilities, net 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
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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 (1-112%).
6.1.4 For the Fiscal Years beginning October 1, 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 rate
consultant so selected will utilize the same methodology used in the immediate previous
rate study. In the interim Fiscal Years between detailed rate studies, Fort Worth will
adjust wholesale water rates annually, using the same methodology as the 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, 1999, and have been computed as follows:
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The Treatment, Pumping and Transmission Charge shall be $0.4169 per 1,000
gallons withdrawn by Customer.
The raw water charge shall be $0.6656 per 1,000 gallons for Customers inside
the Tarrant Regional Water District and $0.7336 for Customers outside
the District.
The annual charge per MGD of Maximum Day Demand in excess of
Average Daily Use shall be $80,056 per MGD, and Maximum Hour Demand
in excess of the Maximum Day Demand shall be $0.00 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 Regional Water District
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 ordinances of Customer 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 ordinances or 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 Fort Worth City Council has the right to annually
revise the rates charged to cover all reasonable, actual, and expected costs. Revision of
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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, 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 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
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3) Twelve thousand dollars ($12,000).
7.2 The rate at which Customer withdraws water 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 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 Years 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, flow 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 Regional
Water District and water being withdrawn at one metering station, and the Volume
Charge and Rate of Use Charges in effect until September 30, 1999.
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Monthly
Usage Volume Rate of Use Service
Month Consumption Charges Charges Charges Total
Oct 1,000,000 $1,150.50 $767.20 $25 $1,942.70
Nov 1,000,000 1,150.50 767.20 $25 $1,942.70
Dec 1,000,000 1,150.50 767.20 $25 $1,942.70
Jan 1,000,000 1,150.50 767.20 $25 $1,942.70
Feb 1,000,000 1,150.50 767.20 $25 $1,942.70
Mar 2,000,000 2,301.00 767.20 $25 $3,093.20
Apr 3,000,000 3,451.50 767.20 $25 $4,243.70
May 3,000,000 3,451.50 767.20 $25 $4,243.70
Jun 3,000,000 3,451.50 767.20 $25 $4,243.70
Jul 3,000,000 3,451.50 767.20 $25 $4,243.70
Aug 4,000,000 4,602.00 767.20 $25 $5,394.20
23,000,000 $26,461.50 $8,439.24 $275 $35,175.74
Sep 3,000,000 3,451.50 3,088.82 $25 6,565.32
26,000,000 $29,913.00 $11,528.06 $300 $41,741.06
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 $80,056 $ 9,206.44 (Maximum day)
.305 mg X $0 0.00 (Maximum hour)
Total $ 9,206.44
Monthly Rate of Use Payment (Total Divided by 12)= $767.20
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
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Example A, the current year exceeds the average of the most recent three
Fiscal Years.
Current Year Rate Of Use Calculation
Current Year Rate Of Use Calculation
Average Daily Use for the year = 70,312 gallons
Maximum Day Demand for the current year = 215,000 gallons
Maximum Hour Demand for the current year = 545,000 gallons
Maximum Day Demand above Average Daily Use = 144,688 gallons
Maximum Hour Demand above Maximum Day Demand = 330,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 1998 1997
Maximum Day Demand
above Average Daily Use 144,688 115,000 128,766
Maximum Hour Demand
above Maximum Day Demand 330,000 305,000 320,000
Three year average of Maximum Day Demand
above Average Daily Use 129,485
Three year average of Maximum Hour Demand
above Maximum Day Demand 318,333
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 '99 Rates
(Based on Current Year Data)
26,000 X $ 1.1505 $29,913.00
.1447 mg X $80,056 11,584.10
.3300 mg X $0 0.00
12 X$25 X1 300.00
Total Annual Payment $41,797.10
Previous Billings for
October through August Usage 35,175.74
October Billing for September
Usage $ 6,621.36
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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 year = 70,312 gallons
Maximum Day Demand for the current year = 215,000 gallons
Maximum Hour Demand for the current year = 545,000 gallons
Maximum Day Demand above Average Daily Use = 144,688 gallons
Maximum Hour Demand above Maximum Day Demand = 330,000 gallons
Fiscal Year Average of Most Recent Three Years
CURRENT FY FY
FY 1998 1997
Maximum Day Demand
above Average Daily Use 144,688 115,000 178,234
Maximum Hour Demand
above Maximum Day Demand 330,000 305,000 361,000
Three year average of Maximum Day Demand
above Average Daily Use 145,974
Three year average of Maximum Hour Demand
above Maximum Day Demand 332,000
Customers 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 "99 Rates
(Based on average of most recent three years)
26,000 X $1.1505 $29,913.00
.1460 mg X $80,056 11,688.18
.3320 mg X $0 0.00
12X $25 X1 300.00
Total Annual Payment $41,901.18
Previous Billings for
October through August Usage 35,175.74
October Billing for September
Usage $ 6,725.44
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8.
Effective date of contract
8.1 The effective date of this contract for all purposes will be the date that
Customer firsts withdraws water from the Fort Worth System.
9.
Life of contract
9.1 This contract shall expire on December 31, 2010. It 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 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 others 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 others easements and
rights-of-way in order to prevent further conflicts insofar as is reasonably practicable.
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 16
11.
Texas Natural Resource and Conservation Commission Approval
11.1 The Customer System shall be approved by Texas Natural Resource and
Conservation Commission (TNRCC) during the life of this contract. If at any time the
Customer System is not approved by the TNRCC, or if Customer does not have an active
cross-connection control program, there shall not be any direct physical connection
between the Fort 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 TNRCC. All expenses to provide and install backflow prevention
device(s)will be borne by Customer.
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. Fort Worth neither
recognizes nor approves any existing agreements entered into by Customer with other
governmental or corporate entities outside its service area.
12.2 Customer agrees that it will not enter into any resale or transportation
agreement other than as a part of its normal 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 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 health department requirements.
14.
Additional Parties
14.1 Fort Worth will use its best efforts to provide an adequate water supply for
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 17
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.
15.
Water System Advisory Committee
15.1 Customers 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 matters 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
Customers 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 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.
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 18
16.2 Fort Worth agrees that all moneys 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 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 2001, Fort
Worth will update the land use assumptions and capital improvements plan upon which
the Wholesale System Access Fees are based. In June 2001 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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 19
determining Wholesale System Access Fees; provided however, Fort Worth may include
other capital 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.
16.9 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 a
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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 20
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 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 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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 21
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 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;
f. Failure to provide Fort Worth rights-of-way as required herein.
17.5 In the event of any other 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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 22
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.
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.
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 23
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 party 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, 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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 24
permitted to be given, made or accepted by either party to the other party must be in
writing to:
If to the City of Fort Worth:
Water Director
City of Fort Worth
1000 Throckmorton Street
Fort Worth, TX 76102
If to Customer:
Mayor
Town of Westlake
3 Village Circle
Westlake, Texas 76262
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 potable 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 potable 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 the
usual peak requirements of Customer. It is agreed that extra Rate of Use Charges that
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 25
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.
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 Customers 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
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 26
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 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:
A. Actual number of customer accounts consuming directly or indirectly from
the Customer System within its service area;
B. Classification of domestic and non-domestic accounts within its service area
by number and percentage of accounts consuming directly or indirectly from
Customer System within its service area;
C. 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;
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 27
D. 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 this contract to a regional water authority to provide all or part of
the services 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.
23.
Additional Terms
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 jurisdiction, the invalidity of such term or provision
shall in no way affect any other term or provision contained herein; further, this agreement
shall then continue as if such invalid term or provision had not been contained herein.
23.4 Prior to July 31, 2001 Customer shall construct or shall cause to be
constructed those water system improvements highlighted in green on Attachment "A",
made a part hereof for all purposes. Should any development other than the Fidelity
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 28
development or the golf course occur, Customer shall cause said water system
improvements to be constructed on or before December 31, 2000. Prior to the completion
of the water system improvements being completed as contemplated herein, Customer
shall restrict the provision of treated water to that area highlighted in blue on Exhibit A,
with the further restriction that treated water may be furnished to the area highlighted in
yellow for irrigation purposes only. Failure to complete such improvements or the
providing of treated water in a manner which violates this section shall be a material
breach of this contract entitling Fort Worth to terminate this Contract.
23.5 Fort Worth acknowledges that Customer is currently negotiating with Trophy
Club Municipal Utility District ("TCMUD") for a point of connection ("Connection") to the
TCMUD's 21" water line located in the vicinity of State Highway 114 and Customer's
corporate limits. Customer acknowledges that Fort Worth's consent to the Connection is
required. Fort Worth will not unreasonably withhold consent to the Connection. Upon
agreement being reached between TCMUD and Customer, and such agreement being
approved by Fort Worth, Customer may use such Connection as its primary source of
potable water from the Fort Worth System. Such primary use shall cease as of the
completion of the water system improvements describe in paragraph 23.4 above.
23.6 City has credited the sum of $2,000,000 to Customers Wholesale System
Access Fee account. As Wholesale System Access Fees become due as provided for in
Section 16, Fort Worth will debit Customers Wholesale System Access Fee account until
the entire credit balance has been used.
(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 29
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: CITY OFF
Gloria Pearson L OL/V Mike Groomer
City Secretary Assistant City Manager
APPROVED AS TO FORM APPROVAL RECOMMENDED:
AND LEGALITY:
XP" (I &6/d ILI 'Jll
Assisbit City Attorney e&'C. radley, S., Difor
Fort Worth Water Department
ATTEST: TOWN OF WESTLAKE
OInger ss\NT, Town Sec et ry Scott Bradley, Mayor
APPROVED AS TO FORM
AND LEGALITY
Contract AUthorization
aul I�shamA
Town Attorney Oate
TOWN OF WESTLAKE
WHOLESALE TREATED WATER CONTRACT
PAGE 34
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