Loading...
HomeMy WebLinkAbout1998-102ORDINANCE NO 9O _1aA AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MAN- AGER TO EXECUTE ADDENDUM NO 2 TO CONTRACT BETWEEN THE CITY OF DENTON AND THE UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Denton ("City") and the Upper Trinity Regional Water District ("District') entered into a July 21, 1992 Contract for Water Treatment and Transmission Serv- ices (the "Contract") to provide for the sale of treated water by the City to the District and for transmission and delivery by the City of a limited amount of the District's treated water from a specified point to certain customers of the District, and WHEREAS, the City and the District entered into an addendum to the Contract on Feb- ruary 4, 1997 to provide for the continued purchase of treated water by the District from the City on a wholesale basis and to facilitate the provision of direct and treated water service by the Dis- trict to the Cities of Sanger and Corinth, and the Lake Cities Municipal Authority, and WHEREAS, the Contract provides in Section 7 6 "Denton's Option to Purchase Interim Water" thereof that The District hereby agrees upon reasonable notice to allow Denton to purchase interim water out of surplus treatment capacity to be considered in the future by the District and for transmission service related thereto This option may be exercised by Denton to al- low it to defer construction of its own treatment capacity or to minimize the amount of reserve capacity constructed in connection therewith The terms and conditions of such sale by the District to Denton shall, to the extent applicable, be the same as herein, but may be modified by the mutual agreement according to the conditions and circumstances then existing, and WHEREAS, the City wishes to exercise its option to purchase interim water from the District and understands that the District's ability to deliver such water to the City is contingent upon the District entering into an agreement with the Argyle Water Supply Corporation ("AWSC") to transport such water from the District's system to the City's system, and WHEREAS, the City realizes that the District's obligation under the addendum to the Contract to initiate the requested water service is also contingent upon the City completing the delivery, metering, and distribution facilities and making them operational so that the City is ready to receive the water, and WHEREAS, the City Council deems it in the public interest to approve this Second Ad- dendum to the Contract, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the City Manager is hereby authorized to execute Addendum No 2 to Contract Between the City of Denton and the Upper Trinity Regional Water District for Water Treatment and Transmission Services, substantially in the form of the Addendum which is at- tached hereto and incorporated by reference herein SECTION II. That the expenditure of funds as required in the attached Addendum No 2 is hereby authorized SECTION III. That this ordinance shall become effective immediately upon its passage and approval / � PASSED AND APPROVED this the day of C .11998 9A�- �-� - JA ILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY99a, APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY \\CH LGL\VOLI%HARMDEFM.OL\Om Dmum U\OrNnmmc 98\uppw Wnity addendum 2orddo Page 2 ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES THE STATE OF TEXAS § COUNTY OF DENTON § This Addendum (The "Addendum") to an existing contract styled as CONTRACT FOR WATER T REATMENT AND TRANSMISSION SERVICES, dated July 21, 1992, (the "Contract") by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the "District"), a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Constitution of the State of Texas, and CITY OF DENTON ("Denton"), a municipal corporation, is made and approved as of the 7 day of 1�Q/1/ , 1998 (the "Date of Addendum") WITNESSEM WHEREAS, Denton and District entered into the July 21, 1992 Contract for Water Treatment and Transmission Seances to provide for sale of treated water by Denton to District on an interim basis and for transmission service related thereto, and WHEREAS, said Contract provides in Section 7 6 thereof that "Distract hereby agrees upon reasonable notice to allow Denton to purchase interim water out of surplus treatment capacity to be constructed in future by District and for transmission service related thereto This option may be exercised by Denton to allow it to defer construction of its own treatment capacity or to minimize the amount of reserve capacity constructed in connection therewith The terms and conditions of such sale by District to Denton shall to the extent applicable be the same as herein, but may be modified by mutual agreement according to the conditions and circumstances then existing " which provisions are applicable for the Primary Term of the Contract, and ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE i WHEREAS, Denton has requested that District provide interim treated water service on a wholesale bans for resale to retail customers in new subdivision(s) being developed within the southwest portion of Denton until Denton's own transmission facilities are available in that area, and WHEREAS, District currently has adequate surplus water treatment and transmission capacity to meet Denton's interim requirements as requested, and WHEREAS, the area to be served in Denton is adjacent to the existing distribution system of Argyle Water Supply Corporation (AWSC) which currently receives treated water from District, and WHEREAS, District's ability to deliver such water to Denton is contingent upon District entering into an agreement with AWSC to transport such water through its system from District's system to Denton's system, and WHEREAS, provisions for the Initial Period of the Contract specify how the cost of such interim water service will be determined, initially for interim service from Denton to District, but pursuant to Section 7 6 thereof, for service by District to Denton during the Primary Period, and WHEREAS, the delivery and metering facilities contemplated herein, after serving their purpose for this Addendum, are expected to become part of a long-term emergency interconnection to be developed between Denton and AWSC by separate agreement NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties agree to supplement the Contract with this Addendum as hereinafter set forth, to -wit Section 10 Preamble Incorporated The matters stated in the preamble hereof are true and correct and are incorporated into the body of this Addendum as if copied in their entirety ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE S Section 11 Scope of Addendum The provisions of the Contract shall remain in full force and effect as supplemented by this Addendum Denton and District agree that the general provisions of the Contract for services, which were supplied initially by Denton to Distnct, shall be applied, pursuant to Section 7 6 of the Contract, to services to be provided by Distnct to Denton under this Addendum Further, Denton and Distnct agree to add the provisions herein to supplement the Contract with respect to purchase of interim treated water by Denton from District and the transportation thereof District agrees to provide mtenm water service to Denton in the quantity, at the location and according to the terms specified in the Contract and this Addendum Section 12 Definitions For the purposes of this Addendum, the following definition is hereby added "Fire Flow" means the maximum volume of water estimated by Denton that may be needed to fight a fire in that portion of Denton to receive intenm water service Section 1.3 Treatment and Transmission Service For the purposes of thus Addendum, wherever applicable under the circumstances, the provisions of Article II, INITIAL PERIOD FOR WATER TREATMENT AND TRANSMISSION SERVICES, of the Contract are hereby, agreed to apply to the requested services to be supplied to Denton by Distnct dunng the Primary Term of the Contract, in effect, wherever applicable under the circumstances the terms, "District" and "Denton" will be interchanged to provide a like basis for the services to be provided by Distnct to Denton, hereunder Section 14 Volume and Notice For the purposes of this Addendum, wherever applicable under the circumstances, the provisions of Article III, WATER SERVICE, of the Contract are hereby agreed to apply to the services to be supplied to Denton dunng the Pnmary Term of the Contract, with the following modifications a ) The Peak Day Volume requested by Denton and to be supplied by Distnct shall be 0 30 mgd, b ) Pnor to each Water Year, Denton may request an adjustment in the Peak Day Volume for ADDENDUM NUMBED TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PACE! consideration by Distnct c ) Denton agrees, during each Water Year to pay District, on a take or pay basis, for a minimum water volume based upon the Peak Day Volume requested or taken, whichever is greater, by Denton for each Water Year The minimum water volume for any water year shall not be less than the Peak Day Volume requested by Denton multiplied by 365 times 50% d ) The period for the interim service to be provided by District shall begin when specified herein and may extend through the Water Year 2002 Section 15 Delivery and Metering_ Conditions For the purposes of this Addendum, the provisions of Article IV DELIVERY, LOCATION, METERING CONDITIONS, of the Contract are hereby supplemented as follows a ) Delivery and Metenne District agrees to deliver treated water hereunder to Denton at the Delivery Point defined in Exhibit "1", attached hereto and incorporated herein by reference for all purposes, and at any other such Delivery Point(s) as may be mutually agreed upon in writing by the Parties The cost of acquiring, designing, installing and constructing all water delivery and metenng equipment or facilities necessary to fulfill the provisions of this Addendum, including, but not limited to, water lines to metering points, meters, meter vaults and associated valves, shall be borne by Denton All plans for metenng facilities and pipelines related thereto shall conform to District requirements and shall be submitted to Distnct for its written approval prior to installation, which approval will not be unreasonably withheld These facilities shall remain the property of Denton Distnct shall have access to and the nght to inspect all facilities constructed and owned by Denton which pertain to, and are covered by this Addendum Denton represents and covenants that it has acquired or will acquire, pnor to the installation of metenng equipment, the necessary easements or rights -of -way upon which the metenng facilities and associated appurtenances for all Delivery Point(s) will be placed Denton shall provide, at its expense, a connection to the AWSC SCADA system to monitor the flow ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGES rate of the Denton meters covered by this Addendum Such connection to AWSC's SCADA system shall be compatible with said SCADA system and of design and construction acceptable to AWSC and District AWSC and District shall not unreasonably withhold their approval of the design and construction of this connection b ) Maintenance and Calibration of Meters All water furnished shall be measured by meters installed by Denton at the Delivery Point(s) Denton agrees to maintain said meter(s) and to cause repairs and adjustments to be made promptly Denton shall test the meter(s) annually The cost of meter repair and testing shall be borne by Denton Upon the request of District, Denton shall test the meter(s) more frequently than annually, but, such additional test(s) shall be at District's expense, except when an error in metering is found to exceed 2% If a meter is found to be in error by more than plus or minus two percent (2%), adjustments to the water bills shall be made accordingly If either Party at any time observes an apparent error in meter registration or reading, such Party will promptly notify the other Party Denton shall promptly arrange for a calibration test to be performed by an uninterested third party and joint observation of any adjustment Denton shall give District at least forty-eight (48) hours notice of the time of all tests of meters so that District may conveniently have a representative present If, for any reason, any meters are out of service so that the amount of water delivered cannot be ascertained or computed from the reading thereof, the water delivered during the period such meter(s) are 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 For such purposes, the best data available shall be deemed to be readings from individual meters within the portion of Denton's system supplied with water by District with a reasonable allowance for leakage, Fire Flow, and fire flushing If such data is not available, meter readings at the Delivery Pomt(s) for a similar period of time estimating the quantity of water by deliveries during the preceding periods under similar conditions when the meter(s) was registering accurately shall be the best data available ADDENDUM NUMBaR TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE c ) Rate of Flow Controller Under normal conditions of service, a rate -of -flow controller will not be required to be installed at the Delivery Point(s) However, if Denton's requested Peak Day Volume is reached or exceeded under normal non -emergency conditions on two or more consecutive days within a seven-day period, or five or more days within a consecutive thirty -day period, then, if requested by District, Denton shall promptly install a rate -of -flow controller(s) Denton shall bear all costs of acquiring, designing, installing, constructing and maintaining all equipment and facilities necessary for the required rate -of -flow controller(s) Such rate -of -flow controller(s) shall be set at Denton's Peak Day Volume as requested for the Delivery Point(s), as provided herein, and shall be set on June 1 or later of each Water Year The total of all Peak Day Volume settings requested by Denton shall not exceed the authorized Peak Day Volumes provided herein District does not warrant that sufficient volume of water will be available for Fire Flow requirements d ) Delivery/Check Valve Denton shall receive water from District, either through an open discharge into a ground storage or elevated storage tank, or into a supply line If delivered into a supply line, an appropriate backflow preventor check valve may, at District's sole discretion, be required to be placed by Denton in the deliveryline However, if the Delivery Point(s) indicated in Exhibit "1" are the sole source of water for the area being served, then the backflow prevention device requirement may be waived by District If a backflow device is required under the provisions of this Section, all costs for acquiring, designing, installing, constructing and maintaining all equipment and facilities necessary for the required backflow device shall be borne by Denton e ) Ownershin Upon termination of services hereunder, the facilities installed or constructed by Denton shall remain the property of Denton, subject to a separate agreement that may be developed by Denton and AWSC for an emergency interconnection f) Access Denton shall provide continuous access to all water delivery and metering facilities to allow District and AWSC to read, monitor and control the meters and flow of water through such facilities ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE 7 g) &Q its and Notice After filling, flushing and testing is completed on Denton's internal distribution system to be served under this Addendum, Denton will furnish a copy of the inspection report and the bacteriological test report to District and to AWSC for their information and files Denton agrees to provide a minimum 48-hour notice to District and AWSC to request initial opening of valve to initiate flow of water at Delivery Point It ) Operational Conditions After service is initiated hereunder, Denton shall continue to keep District and AWSC informed about operating needs and conditions, including notice of any failed bacteriological test i ) Meter Readings A larger meter than needed for regular service is being installed to allow for maximum flow However, it is agreed that such meter will not reliably measure low -flow quantities of water that are typically expected during the early stages of the development to be served The meter should accurately measure high -flow events such as water main flushing and emergency events To avoid the expense of a metering system that would reliably measure both high and low -flow conditions, the parties agree to use an alternative procedure For billing purposes, the District will add the quantity measured by the Delivery Point meter to the total measured by all retail meters served Denton agrees to provide the retail meter readings to District When District is satisfied that a more accurate method of meter reading is available, the District will make the appropnate change after consultation with Denton Section 1,6 Rates and Charges For the purposes of this Addendum the provisions of Article VII RATES AND CHARGES FOR SERVICE are hereby supplemented as follows a ) District will determine the rate applicable to service under this Addendum in a manner substantially as provided in Article VII of the Contract The initial rate for water service shall be $1 30 per 1,000 gallons Said rate may be changed from time to time by District in accordance with the Contract ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE S b ) District shall notify Denton by May 1 of each year of Its intent to change rates or charges hereunder Denton shall have at least 60 days to review and comment on the proposed changes, prior to submission to the District Board of Directors for approval Denton may have access to the District's books and records at reasonable times upon reasonable notice to review the basis for the proposed changes in rates or charges c ) Denton will reimburse District for a Transportation Service Fee equal to the corresponding fee to be paid by District to AWSC for such service as provided in a separate agreement between District and AWSC The purpose of such separate Transmission Agreement is to provide for transportation of District treated water through AWSC's system for delivery to Denton at the Delivery Point(s) shown in Exhibit 1 d ) Denton shall have an opportunity to review proposal changes in the Transportation Service Fee, subject to the limitations expressed in the Transmission Agreement with AWSC e ) Water service provided under this Addendum shall utilize temporarily surplus capacity of the District's Regional Treated Water System If Denton desires that service hereunder continue after the District's surplus capacity has been exhausted, Denton agrees that District may discontinue service on 60-day notice or may revise rates to reflect full cost of service on a panty with other customers of District Section 17 Addendum Subject to Agreement with AWSC This Addendum is contingent upon and subject to the terms of a separate agreement between District and AWSC for transportation of District water through AWSC's system from District's system to Denton's system No portion of this Addendum or action by Denton related to service provided to Denton by District in accordance with this Addendum shall cause District to be in breach of said agreement between District and AWSC A copy of the Transmission Agreement with AWSC is attached hereto as Exhibit 2 Section 18 Initiation of Service District agrees to initiate the requested service upon the following conditions being completed a ) Approval of an agreement between District and AWSC to transport water for District to the ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES PAGE 9 Delivery Point, and b ) Written notice from Denton that delivery, metering and distribution facilities are completed and operational and that Denton is ready to receive the water Section 19 Termination of Service Within the effective term of this Addendum, Denton may discontinue the services provided hereunder at any time upon sixty (60) days written notice to District District may discontinue service according to the terms of the Contract Section 110 Term of Addendum This Addendum shall be effective on and from the Date of Addendum specified in the opening paragraph herein The Addendum shall continue through midnight, May 31, 2002, unless extended by mutual agreement of the Parties Initiation of service under this Addendum shall be in accordance with Section 18 hereof UPPER TRINITY REGIONAL WATER DISTRICT Richard H Huckaby President, Board of Directors ADDENDUM NUMBER TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICE$ PAGE 10 APPROVED AS TO FORM AND LEGALITY. John r Boyle, Jr, Counsel for the istnct CITY OF DENTON, TEXAS Ted Benavldes, City Manager ATTEST. at infer W ers, City Secretary APPROVED AS TO F RM rD LEGALITY Herb Prouty, City Attorney F \S REDIDEP11LGL�Our Dmumm%\Cwo- \98\upper mmry eddmdum S din 1 n Meter Location & Delivery Point ti/\1 IILfI 1 1 r V V 4T ° N r N.T.S. 1 r 9 1 •t 1 � \I EXHIBIT 2 Page 1 of 3 396 W Main Suite 102 P O Drawer 305 Lewvsntle rX 75067 REGIONAL WATER DISTRICT (972) 219 1228 Fax (972) 221 9896 February 27, 1998 Mr Randall Davis General Manager Argyle Water Supply Corporation P 0 Box 174 Argyle, Texas 76226 Re Temporary Water Service to Denton Dear Mr Davis: Denton has requested that the District sell and deliver surplus treated water on an interim basis to Denton to support subdivision development in southwest Denton near AWSC's distribution system. A key element necessary to District providing such water to Denton Is ani agreement between District and AWSC to transport District water across AWSC's system for delivery to Denton at the location shown in the attached sketch This memorandum is to formalize the water transportation agreement between AWSC and District Concerning the proposed agreement with Denton to provide the requested service, District will Include in the agreement appropriate provisions for design, construction and maintenance Improvements necessary to deliver and meter water for Denton pertaining to this transportation agreement. Such provisions will include connecting the metering facility to AWSC's SCADA system The amount of water to be transported by AWSC will not exceed 300,000 gallons per day without your approval District will provide water to AWSC for transportation to Denton by AWSC at the existing point for metering and delivery of District water to AWSC on Fincher Road For billing purposes, District will reduce the volume basis for calculating the monthly bill owed by AWSIC to District by the volume delivered to Denton through AWSC's system during the corresponding period and metered at the location shown on the attached sketch This agreement shall not cause any change In the demand portion of the bill owed by AWSC to District For operational purposes only, District will Increase the rate of flow control setting at its delivery point to AWSC to compensate for the delivery rate of District water to Denton through AWSC's system AWSC will bill District on a monthly basis for transportation of the volume of water delivered to Denton by District at the metering location shown on the attached sketch 16 EXHIBIT 2 Page 2 of 3 Mr Randal Dow FebruaryV 1998 Re Temporary Water service to Denton Page 2 During the period from the effective date of this agreement through May 31, 1999, the rate charged District by AWSC for transportation of District water under this agreement shall be $0 133 per thousand gallons, based on a high service pumping energy cost factor of $0 083 and a factor for other costs of s0 05 per thousand gallons The energy portion of this transportation rate may be adjusted each water year beginning June 1, 1999, upon sixty (60) days written notice by AWSC to District If AWSC agrees to provide the proposed services under the terms described, please indicate by signing below XomaceyFor ArgyleWater Supply Corporation Tayor ExectAve Director p ( 1(o s i rirn� 3�i�49 Title bate Approved Richard Huckaby, President Upper ,Trinity Regional Water District /AAM <, / 99dp Date Attch Sketch of Delivery Point to Denton 17 EXHIBIT 2 I Page 3 of 3 N � _ r N.TS All]- r e� r swwE Tom � 1 i Meter Location & �' \ Delivery Point N � _ 18