Loading...
HomeMy WebLinkAbout1987-0651749L AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A CONTRACT PROVIDING FOR THE INTERIM SALE OF WHOLESALE TREATED WATER BETWEEN THE CITY OF DENTON AND THE TOWN OF HICKORY CREEK, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council of the City of Denton, Texas, approves the contract attached hereto, between the City of Denton and the Town of Hickory Creek providing for the interim sale of wholesale treated water SECTION II That the City Council authorizes the Mayor to execute, on behalf of the City, the contract herein approved SECTION III That this ordinance shall become effective immediately upon its passage and approval q PASSED AND APPROVED this the —/day of 1987 RAY S HEN , MAYOR CITY OF DENTON, TEXAS ATTEST JEN S ACTIN ITY S RETARY CITY 0 DENTON, TEXAS APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY i[ik � IC t A � f �r F i t I a` ii ¢`irTfi pPp p F J F i k u �5 sk 1 �j 1 x �Lipr 1 P r f3 � r� li a � Olt, ` 3 all A` If fl i� _ 41 B S 3_ R ✓ 'b r �t 41 sae 1 z} 1 ✓k F�J { r � - 1 K.•{j,�F r � .. f Aj �I 3 y VV f d� � !3 H z i k!Y f S � ^`S` - •-'ice 41 i ty I- f�r4 _ �9 T �kgs` n �.a R�P 7 Y It r� �Irtts d i' y � xr rF fvB s i. L 1 i 4 THE 44 1 3, A C, I x _ Ii � yy e' -041 - Fid��iF�w J fo1 y i��� h _kz # ?s2- d�s1iy $ 4vi 3 { tt f„f t� { _ f 9 rk 3 s F i a a INTERIM WHOLESALE WATER CONTRACT BETWEEN THE CITY OF DENTON AND THE TOWN OF HICKORY CREEK TABLE OF CONTENTS A WATER SUPPLY PROVISIONS PAGE 1 Definitions 1 2 Interim Water Supply Contract 2 3 Conditions of Supply 3 4 Required System and Standards 5 5 Metering 6 6 Annual Water Requirements 7 7 Rates 10 8 Payment 13 B GENERAL PROVISIONS 9 Effective Date 13 10 Term 14 it Notice and Agents 14 12 Termination and Suspension 15 13 Liability 16 14 Severability 16 15 Assignment 16 16 Entire Agreement, Modification 16 17 Headings 17 C EXHIBITS 1749L THE STATE OF TEXAS S INTERIM WHOLESALE WATER SUPPLY CONTRACT BETWEEN THE CITY OF DENTON COUNTY OF DENTON S AND THE TOWN OF HICKORY CREEK WHEREAS, the City of Denton owns and operates a water treatment and distribution system, and, WHEREAS, continued growth in the Denton area will create the need for additional water treatment facilities for regional use, and, WHEREAS, Denton is agreeable, with the cooperative joint planning and funding of participating regional cities or entities, to expanding its water treatment facilities in order to serve as a regional supplier of treated water, and, WHEREAS, continued development in the Town of Hickory Creek has created the need for an additional treated water supply for Hickory Creek, and, WHEREAS, Hickory Creek desires to purchase treated water from Denton to meet that need, and, WHEREAS, Denton is agreeable to supplying treated water to Hickory Creek for its present water needs on an interim basis on the expectation and condition that Hickory Creek will enter into a future contract with Denton to provide for the joint planning, funding, and ownership of additional water treatment facilities to serve the future water requirements of both Hickory Creek and Denton, and, NOW, THEREFORE, the CITY OF DENTON and the TOWN OF HICKORY CREEK, municipal corporations located in Denton County, Texas, agree as follows A WATER SUPPLY PROVISIONS 1 DEFINITIONS 1 1 Definition of Terms The words used in this Contract shall, un ess t e context clearly indicates otherwise, have the following meanings (a) "Demand" means the maximum quantity of water, in gallons, that would flow past a fixed point, if that rate of flow were maintained consistently for a continuous period of twenty-four hours (b) "Denton" means the City of Denton in Denton County, Texas (c) "Delivery Point" means the place, whether one or more, at which treated water from the Denton System is made available for use by Hickory Creek, as shown in Exhibit A (d) "Hickory Creek" means the Town of Hickory Creek in Denton County, Texas (e) "System" means the properties and facilities used for delivering, pumping, receiving, transporting, or treating water (f) "Volume" means the quantity of water, in gallons (g) "Water Year" shall mean the period of time from June 1 to May 31 of the succeeding year INTERIM WATER SUPPLY CONTRACT 2 1 Interim Sale of Excess Ca acit The treated water to be supplie is ory Creekun er t isContract shall be from the excess treatment capacity of the existing Denton water treatment facilities, and the allocation of a portion of that capacity to meet the requirements of this Contract is for the sole purpose of providing for the interim sale of water until such time as Denton has need for that excess capacity to meet the require- ments of its own System, unless the parties jointly provide for the cost of funding additional water treatment facilities as provided for herein 2 2 Continued Water Su 1 Contingent on Joint OwnershipCon- tract As t e water supply requirements ot the Denton System increase, Denton will be required to meet that need by making use of that excess treatment capacity allocated to Hickory Creek under this Contract, and by the construction of additional water treatment facilities However, unless Hickory Creek is able and willing to enter into a contract ("Joint Ownership Contract") with Denton and other participating cities or entities, if any, to provide for the joint planning, funding, and ownership of additional water treatment facilities, Denton may not be able to provide for the cost of sufficient additional water treatment facilities to meet the future treated water requirements of both Denton and Hickory Creek This Contract, therefore, contemplates that continued performance of the delivery of treated water by Denton to Hickory Creek throughout the term of this Contract is based upon the expectation and condition that the parties will PAGE 2 enter into the proposed Joint Ownership Contract to provide for the cost of additional water treatment facilities to meet the future treated water needs of both parties 2 3 Letter of Intent For the purpose of signifying the good faith of the parties and facilitating discussions on the Joint Ownership Contract contemplated by this Contract, the parties shall, concurrently, on the respective dates this Contract is approved by the governing bodies of the parties, execute the Letter of Intent, attached hereto as Exhibit B, setting forth the general concepts on which the terms of the Joint Ownership Contract will be negotiated and discussed The general provisions and concepts of the Letter of Intent shall not, however, obligate or bind either party to enter into a Joint Ownership Contract containing terms in compliance with the stated general provisions or concepts, but may be made on the basis of any terms agreeable to both This Contract shall not be effective until and unless both parties approve and execute the attached Letter of Intent 2 4 Implementation of Joint Ownership Contract If, during any Water Year of this Contract, Denton (a) Determines that it will, for the succeeding Water Year, need the excess water treatment capacity allocated to Hickory Creek under this Contract to serve the require- ments of the Denton System, or, (b) Proposes to review or accept, during the succeeding Water Year, engineering proposals for the construction of additional water treatment facilities, it shall give written notice to Hickory Creek of the determina- tion or proposal If within one year of the date the notice is sent by Denton, Denton and Hickory Creek shall fail to enter into the proposed Joint Ownership Contract as provided for herein, Denton may thereafter terminate this Contract at any time by giving written notice to Hickory Creek at least one year prior to the termination date 3 CONDITIONS OF SUPPLY 3 1 Master Plan Prior to the beginning of the first Water Year, HicT or�eek shall furnish to Denton a Water Master Plan ("Plan") The Plan shall contain the information required by Exhibit C, attached hereto and incorporated herein by reference The Plan shall be revised and submitted to Denton with the most recent information required by Exhibit C, no later than the end of every five successive Water Years PAGE 3 3 2 Service Area The water to be supplied under this Contract shall a or t e sole purpose of distributing treated water through the Hickory Creek System within the Service Area shown in Exhibit D, attached hereto and incorporated by reference The Service Area may be enlarged by the mutual consent of both parties, as shown by an amendment of Exhibit D, duly signed by the authorized agents of both parties and attached hereto If approved by Denton in writing, Hickory Creek may provide water service to specified customers outside the Service Area with the water supplied by Denton, without amendment of the Service Area shown in Exhibit D 3 3 Exclusive Service Contract Denton shall have the sole right to supply treated water to Hickory Creek during the term of this Contract Hickory Creek shall not purchase or receive treated water from any other party for distribution through its System within the Service Area without the prior written consent of Denton, so long as Denton is able and willing to meet the Volume and Demand requested by Hickory Creek in any Water Year This provision shall not, however, prohibit Hickory Creek from contracting with any third party to provide for the transportation or delivery of the water agreed to be supplied under this Contract through or by use of all or part of the System of another party, if Denton agrees, in writing, to deliver the water through the System of the third party 3 4 Water Source and Curtailment (a) Source of Water The treated water supplied under this Contract will be prove ed exclusively from the untreated water that Denton purchases from the City of Dallas and treats at its water treatment facilities Although Denton will exercise due diligence to assure the delivery of water to be supplied under this Contract, the obligation of Denton to meet the water requirements of Hickory Creek as provided for in this Contract shall be expressly limited by the available untreated water supplied to Denton by Dallas In no case shall this Contract confer upon Hickory Creek any right to be supplied by Denton with water from any other water source, or require Denton to make use of any water it is authorized to appropriate or use under any "water right," as authorized and defined by the laws of Texas, in order to fulfill its obligation to supply water to Hickory Creek under this Contract (b) Curtailment of Water Source Should the supply of untreated water to Denton from t e City of Dallas be reduced or terminated for any reason during the term of this Contract, Denton may concurrently reduce or terminate the supply of treated water to Hickory Creek, without liability to Hickory PAGE 4 Creek In the case of a reduction, the Volume of treated water requested or required by Hickory Creek and all other wholesale treated water customers of Denton supplied from that source for the Water Year in which the reduction occurs, shall be reduced by the same percentage as the percentage of the reduction in the Volume of untreated water received by Denton from the City of Dallas Denton shall, upon receiving notice of the reduction or termination of the supply of untreated water from Dallas, give prompt written notice of its intent to reduce or terminate the supply of treated water to Hickory Creek (c) Proportionate Reduction by Force Ma �eure Where the supply of treated water fro supply System is reduced by rea- son of "force maleure," as provided in this Contract, the supply of treated water to Hickory Creek and all other water customers of Denton shall be reduced pro rata, so that all customers will bear the same proportionate reduction, unless the "force maleure" shall so affect only a part of the System so that a proportionate reduction is not possible as to one or more customers, or Denton determines that a reduction in supply to a customer would adversely affect the health or safety of that customer to a degree that would not be common to other customers 4 REQUIRED SYSTEM AND STANDARDS 4 1 System Re wired b Hickory Creek Hickory Creek shall construct, install, or of erwise provide and pay for, at its expense, the properties and facilities used for delivering, pumping, receiving and transporting the water ("System") from the Delivery Point to the Service Area 4 2 Delivery Point Denton shall deliver the water contracted for at tTeDe it very Point shown in Exhibit A, attached hereto and incorporated herein by reference The Delivery Point may be changed, or additional Delivery Points added by the mutual consent of both parties, as shown by amendment of Exhibit A, duly signed by the authorized agents of both parties and attached hereto 4 3 Conve ance from Deliver Point It shall be the sole respon- sibility o Hic ory Cree to convey and deliver the water from the Delivery Point to the System of Hickory Creek To do so, this Contract contemplates that Hickory Creek will contract with the Town of Corinth to provide facilities necessary to transport the water to be supplied under this Contract from the Delivery Point to the Hickory Creek System Denton shall have no liability to Hickory Creek for any interruption in the delivery of water to the Hickory Creek System resulting from any defect or failure of the System of the Town of Corinth or resulting from any dispute PAGE 5 or default arising from any contract between Hickory Creek and the Town of Corinth to provide for the delivery of the water agreed to be supplied by Denton under this Contract 4 4 System and Service Standards Hickory Creek shall con- struct, reconstruct, repair and maintain its System so as to comply with applicable Federal and State laws and the rules and regulations of any agency having jurisdiction thereof Hickory Creek shall abide by the "Conditions of Service for New Treated Water Wholesale Customers" ("Conditions of Service") applicable to the water customers of Dallas, as shown in Exhibit E, attached hereto and incorporated herein by reference, except to the extent that any provision of the "Conditions of Service" conflict with any other provision of this Contract not contained in the "Conditions of Service" 5 METERING 5 1 Installation and Ownership of Metering Equipment (a) Hickory Creek shall design, construct, and install, at its expense, the meter vaults, rate -of -flow controllers, valves and other associated equipment, other than meters, as specified by Denton, necessary to measure or regulate the amount of water delivered for the use of Hickory Creek Meters shall be furnished and installed by Denton at the expense of Hickory Creek The type, location and manner of installation of the equipment to be provided by Hickory Creek shall be approved in writing by Denton prior to installation After approval and acceptance by Denton, in writing, of the equipment, it shall become and remain the property of Denton (b) The initial metering equipment shall be located as specified in Exhibit F, attached hereto and incorporated herein by reference If a metering location is changed or additional metering locations added, it shall be at Hickory Creek's expense, and the changed or added location shall be shown by amendment of Exhibit F, duly signed by the authorized agents of both parties and attached hereto 5 2 Reading and Adjustment (a) After acceptance, Denton shall be responsible for the operation, maintenance, repair, testing, adjusting and reading of the metering equipment Hickory Creek shall have access to the metering equipment for examination and inspection Denton shall test and calibrate the metering equipment annually in the presence of a representative of Hickory Creek Upon the request PAGE 6 of Hickory Creek, Denton shall test the meters more frequently than annually, the cost of which test shall be paid by Hickory Creek (b) If any meter is found to be registering the quantity of water incorrectly by more than two percent (2%), then the payments made by Hickory Creek for water received from the period of time since the last testing of the meter shown to be accurate, or for a period of six months, whichever is less, shall be adjusted for the applicable period of time, by adding or subtracting the adjusted amount, as the case may be, on the succeeding billing made to Hickory Creek 5 3 Unit of Measurement The unit of measurement for all water referred to in this Contract, unless specified otherwise, shall be 1,000 gallons, U S Standard Liquid Measure 6 ANNUAL WATER REQUIREMENTS 6 1 Beginning Supply Date (a) At least 30 days prior to the date that the System and all metering equipment necessary to the performance of this Contract are proposed to be completed by the respective parties as required by this Contract, the parties shall set a mutually agreeable date on which the water contracted for shall begin to be delivered and received ("Water Supply Date"), and fix the Volume and Demand requested from the Water Supply Date until the beginning of the first Water Year The Water Supply Date agreed upon and the Volume and Demand requested, shall be as shown in Exhibit G, be signed by both parties, and attached hereto and incorporated herein by reference Should the parties fail to establish a Water Supply Date in writing within one year of the effective date of this Contract, either party may terminate this Contract upon thirty days written notice to the other (b) The charges provided for in 7 2, 7 3 and 7 4 shall apply for the period of time from the Water Supply Date to the beginning of the first Water Year, except that, for the purpose of determining the applicable charges for the period of time specified herein (1) "Water Year", as used in 7 2, 7 3, and 7 4, shall mean, that period of time from the Water Supply Date to the beginning of the first Water Year, and (2) "Volume Requested" and "Demand Requested," as used in 7 3 and 7 4, shall mean and refer to, respectively, that Volume and that Demand shown in Exhibit G PAGE 7 6 2 Volume and Demand for Water Years (a) The water to be supplied shall be at the Volume and Demand established for each Water Year as provided herein The Volume and Demand shall be measured at the location, whether one or more, where the water supplied to the Hickory Creek System is metered, as shown in Exhibit F (b) Not less than 120 days prior to the beginning date of the first and each successive Water Year, Hickory Creek shall give written notice to Denton of Hickory Creek's requested Volume and Demand for the first Water Year, and the projected Volume and Demand for each successive Water Year during the term of this Contract The first Water Year during this Contract shall begin on the next June 1, following the Water Supply Date For the first Water Year, Hickory Creek shall request a minimum annual Volume of two million gallons (2,000,000) (m g ), and a minimum Demand of ten thousand (10,000) gallons per day (g p d ) If the first Water Year is to begin prior to 120 days after the effective date of this Contract, Hickory Creek shall give the first required notice of its water requirements within thirty (30) days of the effective date of this Contract (c) The annual notice required to be given by Hickory Creek of its annual water requirements shall be designated as Exhibit H, signed by the authorized agents of both parties, and attached hereto and incorporated herein by reference Each successive notice shall be dated, signed by the authorized agents of both parties, and attached hereto as an amendment of the prior notice given by Exhibit H The annual notice required shall be in the form shown in the Exhibit H, attached hereto as a sample form Each successive notice shall be designated by the Water Year for which it is given (e g , WY-88, WY-89, etc ) (d) The Volume requested by Hickory Creek in any Water Year shall not be less than the Volume requested or delivered for any prior Water Year, except in accordance with the provisions of 6 3 of this Contract providing for the reduction or termination of water requirements If, after Hickory Creek gives the required notice of its water requirements for the succeeding Water Year, it is found that the Volume requested for any successive Water Year is less than the Volume of water delivered in any prior Water Year, Exhibit H, shall be amended to show the greater Volume (e) Upon the written request of Hickory Creek, Denton may, in its sole discretion, waive all or part of the 120 day notice required to be given for any successive Water Year Any waiver granted by Denton shall be done in writing and shall specify PAGE 8 within what period of time the notice shall be required Should Hickory Creek fail to give notice of its water requirements for any Water Year, the Volume and Demand for the succeeding Water Years shall be the same as that established by the prior notice properly given, as shown in Exhibit H 6 3 Reduction or Termination of Water Requirements (a) If Hickory Creek should wish to reduce or cease taking the Volume that would otherwise be required to be requested for one or more Water Years, it shall give Denton written notice of its intent at least five years prior to the beginning of the Water Year in which the reduction or discontinuance is proposed The notice shall specify the beginning date of the proposed reduction or discontinuance and, in the case of a reduction, the reduced Volume and Demand that will be requested for each of the remaining Water Years, or portion thereof, after the beginning date of the proposed reduction in Volume (b) At least one year prior to the beginning date of the proposed reduction or discontinuance, Denton shall make a deter- mination of whether the requested reduction or discontinuance will be allowed The determination shall be made by considering to what extent Denton could, by supplying additional water customers during the period of reduction or discontinuance, recover the cost incurred in meeting the requirements of this Contract, including, but not limited to, the cost of purchasing untreated water from Dallas for the purpose of supplying Hickory Creek, and the capital cost of the facilities used to meet the requirements of this Contract (c) At least one year prior to the beginning date of the proposed reduction or discontinuance, Denton shall send written notice to Hickory Creek of its determination If Denton deter- mines that all or part of the costs incurred in meeting the requirements of this Contract could be recovered during the period of reduction or discontinuance by supplying other customers, it shall specify to what extent the Volume that would otherwise be required to be received by Hickory Creek, will be reduced in the remaining Water Years, or, if discontinuance has been requested, on what date, if any, it will allow Hickory Creek to cease receiving water under this Contract (d) I£ Denton allows Hickory Creek to cease taking water under this Contract, this Contract shall terminate on the date specified by Denton that Hickory Creek shall no longer be required to receive water If the reduction or discontinuance requested by Hickory Creek is not initially allowed by Denton, Denton may subsequently allow further reductions or later PAGE 9 discontinuance in accordance with the request made, as alternate water customers for the water supplied to Hickory Creek are found I£ Denton should fail to give notice of its determina- tion as provided herein, Hickory Creek's request for reduction or discontinuance shall be considered denied (e) If a reduction or discontinuance is allowed, it shall be shown by the amendment of Exhibit H, duly signed by the authorized agents of both parties Thereafter, in the case where a reduction in Volume has been allowed in any Water Year, the provisions of 6 2 regarding notice of Volume and Demand for each successive Water Year shall apply to the reduced Volume allowed 7 RATES 7 1 Basis of Rate The rates applied to Hickory Creek for the water supplied y Denton under this Contract shall be fixed so as to be just and reasonable, without unlawful discrimination, and consistent in application to the class and type of service provided Hickory Creek In establishing the rate, Denton shall take into account (a) The cost of supplying treated water at the Volume and Demand required, (b) Any capital costs and debt retirement expenses of its System to be paid from the rate charged, (c) A reasonable return on Denton's invested capital used and useful in rendering the water services provided, and, (d) Any other costs directly attributable to providing the water service under standard, accepted cost accounting practices 7 2 Rates Established b Ordinance Hickory Creek shall be charge an s a pay Denton for treated water for each Water Year at the rate established in the applicable Rate Schedule approved by ordinance of the City Council of Denton The initial Rate Schedule is shown in Exhibit I, attached hereto and incorporated herein by reference 7 3 Volume Rates Hickory Creek shall pay the "Volume Rate" and "Readiness to Serve Rate" for the Volume requested or received in each Water Year, at the rates provided for in the applicable Rate Schedule, applied as follows PAGE 10 (a) "Volume Rate" For the Volume received by Hickory Creee (b) "Readiness to Serve Rate" For the Volume requested by Hickory Creek, but not received by Hickory Creek, where Denton was willing and able to deliver the Volume requested The "Readiness to Serve Rate" shall be based upon the cost of untreated water purchased by Denton from the City of Dallas to supply treated water to Hickory Creek under this Contract 7 4 Demand Rate Hickory Creek shall pay monthly the "Demand Rate" as prove ed for in the applicable Rate Schedule, for the greater of (1) the Demand requested for the current Water Year, or, (2) the highest Demand requested in any one of the five (5) prior Water Years, except as follows (a) Should Denton be unable to supply the Demand reqquested, as needed, for the current Water Year for (1) seven (7) or more consecutive days during the period of time from September 1 to April 30, or, (2) for seven (7) or more consecutive days and up to twenty-nine (29) consecutive days, during the period of time from May 1 to October 31, the "Demand Rate" for those days shall be calculated as follows Demand Supplied x Demand Rate x Days of Reduced Demand Days in Mont (b) Should Denton be unable to supply the Demand requested for the current Water Year, as needed, for thirty (30) or more consecutive days during the period of time from May 1 to October 31, the "Demand Rate," as provided in the applicable Rate Schedule, shall be adjusted so as to apply an "Adjusted Demand Rate," calculated as follows Demand Su lied x Demand Rate Deman Requested The "Adjusted Demand Rate" shall apply for the entire current Water Year The first billing month in which the "Adjusted Demand Rate" is applied shall include an adjusted amount to account for the application of the "Adjusted Demand Rate" to any months previously billed in that Water Year under the unadjusted "Demand Rate" 7 5 Amendment of Rate The water rate shall increase or decrease from time to time during the term of this Contract in PAGE 11 accordance with any amendment of the Rate Schedule applicable to Hickory Creek, as approved by ordinance of the City Council of Denton At least ninety (90) days prior to the effective date of any proposed amendment of the Rate Schedule applicable to Hickory Creek, Denton shall send written notice of the proposed amendment to Hickory Creek If Denton fails to give written notice at least ninety (90) days prior to the effective date of the amendment, the amendment shall become effective on the ninety-first day after the written notice is sent Upon amendment of the applicable Rate Schedule, Exhibit I shall be amended by attaching a copy of the amended Rate Schedule 7 6 Proposed Capital Recovery Fees (a) Pro osed FPurpose The parties recognize that Denton is conseei eying imposing a "capital recovery fee" or "impact fee" as an alternative method of funding the cost of expanding its System to serve the requirements of present and future users As proposed, the additional fee would be charged to all new customers connecting to Denton's System in amount necessary to pay for all or part of the cost of providing the additional System required to serve those new customers If enacted by Denton and applied to all new customers connecting to the Denton System during the term of this Contract, the parties recognize and agree that the failure to charge a similar fee for new customers connecting to the Hickory Creek System would result in Denton's new customers paying a disproportionate amount of the cost of the expansion of Denton's System required to serve both cities (b) Additional Pa ment U on Im osition of Fee Hickory Creek agrees t at i enton oes impose during the term of this Contract an additional "capital recovery fee," "impact fee," or other charge by whatever name, upon new customers connecting to the Denton System, for the purpose of providing an alternative method of paying for all or part of the cost of the expanded System required to serve those customers, Denton may charge Hickory Creek and Hickory Creek agrees to pay, in addition to other payments specified in this Contract, an additional fee or charge on the water delivered to Hickory Creek The charge shall be equal to the amount that would be charged to new customers connecting to the Hickory Creek's System had those customers connected directly into the Denton System as provided for in the ordinance imposing the additional fee or charge Hickory Creek shall have the sole discretion and authority to decide how the additional revenues necessary to pay the additional charge shall be imposed, charged and collected from the customers of its System, subject to any restrictions on the source of payments as provided in this Contract PAGE 12 (c) Method for Providin for Fee and Pa ment Denton may impose the a ditional charge or fee upon Hickory Creek upon the effective date of the ordinance providing for the charge or fee, by amending the Schedule of Rates applicable to Hickory Creek, or with the consent of both parties, by amending this Contract to provide for the imposition and collection of the additional charge Hickory Creek shall provide all necessary information and records to Denton as is required to calculate, administer or impose the fee 8 PAYMENT 8 1 Billing and Pa went Denton shall bill and Hickory Creek shall pay ror ti er provided for in this Contract in accordance with the provisions of the applicable Schedule of Rates or other applicable ordinances of Denton providing for the billing and payment of water services 8 2 Hickor Creek to Fix Adequate Rates Hickory Creek agrees to esta lis an collect rates an charges for the services to be supplied by its System as will make possible (a) The prompt payment of all charges provided for in this Contract, (b) The prompt payment of all expenses of operating and maintaining the System, and, (c) The prompt payment of the principal and interest on its obligations, if any, payable from the revenues of its System, or if jointly funded and operated with its wastewater collection system, payable from the revenues of the combined systems 8 3 Source of Pa ments Hickory Creek agrees that no tax revenues shall a pledged to the payment of amounts agreed to be paid under this Contract and that all payments due Denton under this Contract are to be made from the revenues and income received by Hickory Creek from its System, or if jointly funded and operated with its wastewater collection system, from the revenues and income of the combined systems B GENERAL PROVISIONS 9 EbFECTIVE DATE 9 1 Effective Date This Contract shall, except as otherwise provided for erein, become effective on the date it is approved PAGE 13 by ordinance or resolution of the governing bodies of the respec- tive parties, if on the same date, or, if not the same date, on the later date of the respective dates the approval is given As shown in the respective ordinances.,gr resolutions the effec- tive date of this Contract is the 9 day of h- i %, 1987 9 2 Contract Sub ect to A roval of Wastewater Contract This Contract contemptates t at the parties will, on the e fective date of this Contract, concurrently enter into a contract where- by Denton will provide Hickory Creek with wastewater treatment and disposal services Should the governing body of either party fail, on the respective dates this Contract is approved by the governing body of each party, to approve a wastewater services contract agreeable to both parties, this Contract shall not be effective, unless and until each party hereto shall thereafter approve such wastewater services contract 10 TERM Term of Contract This Contract shall continue in force until the 31st day of -May, 1997 11 NOTICE AND AGENTS 11 1 Address for Notice Unless notified otherwise in writing, all notices required to be given to the parties under this Contract shall be in writing and sent by certified mail to the respective parties at the following address To Denton Director of Utilities Utilities Administration 215 E McKinney City of Denton, Texas 76201 To Hickory Creek Mayor of Hickory Creek P 0 Box 453 Lake Dallas, Texas 75065 11 2 Desl nated A ents For purposes of administering this Contract, Denton s all act through its Director of Utilities, or the Director's duly authorized representative, and Hickory Creek shall act through its Mayor, or the Mayor's authorized repre- sentative, unless otherwise stated in this Contract PAGE 14 12 TERMINATION AND SUSPENSION 12 1 Concurrent Termination of Contracts If during the term of this Contract, t e wastewater services contract between the parties is terminated in accordance with its terms, this Contract shall terminate on the date of the termination of the wastewater contract 12 2 Termination Upon Default (a) Should Hickory Creek fail to comply with or perform any condition or obligation on its part, and, if after such failure Denton shall give written notice to Hickory Creek of the breach of the provisions of this Contract, Denton shall have the right to terminate this Contract after 60 days following the date the notice was sent, unless Hickory Creek shall perform the condi- tions or obligations specified in the notice within the 60 day period (b) The failure of Denton to exercise any right of termina- tion or its failure to seek enforcement or performance of any provision at any time, shall not be construed to be a waiver by Denton of the performance of any provision of this Contract, or the waiver of the right of Denton thereafter to exercise its right of termination, or to seek enforcement or performance of any provision of this Contract 12 3 Payments Due The termination of this Contract shall not release Hi�ory Creek from its obligation to make payments for services rendered under this Contract prior to the date of termination 12 4 Suspension by Force Maleure (a) If by reason of "force majeure" either party is unable to perform any obligation of this Contract, it shall give notice of the force majeure to the other party in writing within ten days of the occurrence relied upon The obligation of the party giving the notice, to the extent and for the period of time affected by the force majeure, shall be suspended The party giving notice shall endeavor to remove or overcome the inability with all reasonable effort In no case, however, shall Hickory Creek's obligation to make payments for water already delivered to Denton be suspended (b) "Force Maleure" shall mean acts of God, landslides, lightning, earthquakes, hurricanes, storms, floods, or other natural occurrences, strikes, lockouts, insurrections, riots, wars, or other civil or industrial disturbances, orders of any PAGE 15 kind of the Federal or State government or of any civil or military authority, explosions, fires, breakage or accidents to machinery, lines, or equipment, or the failure of the System or wastewater supply system, contamination of the System or the water supplied, or any other cause not reasonably within the control of the party claiming the disability 13 LIABILITY Liability for damages arising from the delivery, transpor- tation, and use of all water covered by this Contract shall, as between the parties, remain with Denton until delivered for the use of Hickory Creek at the Delivery Point, and after passing the Delivery Point, remain with Hickory Creek As between the parties, each 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 delivery, transportation or use of the water covered by this Contract while the water is in control of the other 14 SEVERABILITY This Contract shall be subject to all valid laws, rules, and regulations of the United States and the State of Texas, or any governmental body or agency having jurisdiction thereof If any provision of this Contract is by any court held to be illegal or in conflict with any law or regulation, the validity of the remaining provisions of this Contract shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid 15 ASSIGNMENT Hickory Creek shall not assign nor transfer in whole or in part the rights and privileges granted in this Contract without first obtaining the written consent of Denton 16 ENTIRE AGREEMENT, MODIFICATION This Contract embodies the whole agreement of the parties There are no promises, terms, conditions, or obligations other than those contained herein This Contract shall supersede all previous communications, representations, or agreements, either verbal or written, between the parties, and all modifications of this Contract shall be in writing and approved by both parties PAGE 16 17 HEADINGS All headings in this Contract are used for convenience only and are not intended to define or to limit the scope of any provision IN WITNESS WHEREOF, the parties acting under authority of their respective governing bodies have caused this Contract to be duly executed in several counterparts, each of which shall constitute an origi(n'a�l�_ EXECUTED this A-T" day of 1987 ATTEST CITY OF DENTON, TEXAS BY JE E LT 2 RAY S E ENS, MAYOR ACT G CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH CITY ATTORNEY CITY OF DENTON, TEXAS BY ATTEST k- CIPR SECRETARY TOWN OF HICKORY CREEK, TEXAS APPROVED AS TO LEGAL FORM DON R WINDLE, CITY ATTORNEY TOWN OF HICKORY CREEK, TEXAS BY i �r d� TOWN OF HICKORY CREEK BY — A R PAGE 17 Exhibit EXHIBITS Subject A Delivery Point Location at which Denton will eliver water to Hickory Creek B Letter of Intent Letter showing intent of parties to enter into a proposed Joint Ownership Contract to provide for the joint planning, funding, and ownership of additional water treatment facilities to serve the Systems of both parties C Water Master Plan Information The information required to be submitted by Hickory Creek in its Plan D Service Area The area to be served by the water supplied by Denton to the Hickory Creek System h Conditions of Service The adopted "Conditions of Service for New Treated Water Wholesale Customers" applicable to water customers of the City of Dallas, incorporated in this Contract and made applicable to Hickory Creek F Meterin Point The location at which the water supplie is metered G Water Supply Date The agreed date water will begin to be supplied, and the Volume and Demand requested from the Beginning Supply Date to the beginning of the first Water Year H Water Re uirements for Each Water Year The Volume an Deman requeste y Hickory Cree or each Water Year Rate Schedule The water rates to be applied to Hic ory Cree , as established by the Rate Schedule adopted by ordinance of the City Council of Denton EXHIBIT A — MeI,— n—, —, r v � I u `e a I n 5h (Ohpr 4 qq II I _ 600 O r n � I I — _ MR ` 6J o �A h� 9 6� ♦ neth t —T etsek I A 9 — EXHIBIT B LETTER OF INTENT In accordance with paragraph 2 4 of the Interim Wholesale Water Contract between the City of Denton and the Town of Hickory Creek, to which this Letter of Intent is attached as an exhibit, the parties agree to negotiate in good faith for the purpose of entering into a Joint Ownership Contract ("Contract") to provide for additional water treatment facilities to serve the future water needs of both parties The general provisions and concepts on which the proposed Contract is to be discussed and negotiated are as follows 1 The Contract will provide for the joint planning, funding, and ownership of additional treatment facilities ("Plant"), by and between Denton, Hickory Creek, and other cities or entities who choose to participate 2 The participating parties shall have undivided ownership in the Plant and the right to receive treated water from the Plant in proportion to their respective purchases of Plant capacity, and shall be liable for the cost of construction, maintenance, operation and debt service in the same proportion 3 In order to provide unified management of the Plant, Denton shall be designated as Plant Manager and shall be respon- sible for the design, construction, operation, and maintenance of the Plant 4 An Owner's Committee, consisting of representatives of participating entities will be established The Committee will insure effective cooperation in the planning, funding and operation of the Plant and shall have the responsibilities agreed upon in the Contract CITY OF DENTON, TEXAS ff i �, RAY c 1' TOWN OF HICKORY CREEK BY v '�`� A 0 TOWN OF HICKORY CREEK EXIIIEIT C WATER AND WASTEiixTER-IMTER PLAN DATA I WATER A Existing System 1 Written Description of Present System a Past Experience For The Previous 5 and 10 Year Periods 1 Average day water demand 2 Maximum day water demand 3 Population 4 Gallons per day per capita b Demands c Supplies d Distribution e Storage f Land Use g Future Inprovements h Goals 2 Map of System a Entity's Owned Facilities b Purchased Water Facilities c All Transmission and Distribution Mains 3 Entity's Owned Facilities a. Types of Facilities 1 Wells 2 Water Treatment Plants 3 Storage Facilities 4 Pumping Stations b Hydraulic Capacity 4 Purchased Water Facilities a. Water Supplier b Types of Facilities c Hydraulic Capacity B. Future System I. Map of Future System a. Future Owned Facilities b. Future Purchased Water Facilities c. Future Transmission and Distribution Mains d. Future Points of Delivery 2 Owned Facilities 3 Purchased Water Facilities C Area to be Served by City of Dallas 1 Map of Service Area a Present Boundaries b Anticipated Future Boundaries 0 Population 1 Present Area Population 2 Population Projected, 5, 10, 15, 20, 25 years minimum E Water Requirements 1 Present a Average Maximum Daily Demand b. Maximum Daily Demand C Maximum Hourly Demand 2 Projected Water Requirements, 5, 10, 15, 20. 25 years minimum a Average Maximum Demand b Maximum Daily Demand c Maximum Hourly Demand II WASTEWATER A. Existing and Future System 1 Written Description of Present System a Past Experience b. Demands C Collections System d. Type of Treatment e. Future Improvements f Goals 2. Map of System a. Entity's Owned Facilities b Contracted Wastewater Disposal Facilities c Sewer Mains d Effluent Location Flow Data Peak Flow Average Daily Flow Treatment a Entity's Owned Facilities b Contracted Wastewater Disposal Facilities c Type of Treatment d Type of Discharge Permit ■ a1 9 ' u l I Y '-- EXHIBIT D �� a_M1 TOWN OF CORINTV Pfr\/j�j I 6l 0 0 i __1___ ��I 1 � 1 �. CITV OF LAKE DALLAS 2111 Mc'Aory , � bark N �s "WIN aytl Town of Hickory Creek LfimO ernuna w rP WA �t �wom "w4ftIen wrnw,wanaxaaa>wIa ^' MMOOIIFFMM � y O � xrt.a.wlw.n.+..w %W-I EXHIBIT E CONDITIONS OF SERVICE FOR TREATED WATER WHOLESALE CUSTOMERS 15 DALLAS WATER UTILITIES January 1985 fh CONDITIONS OF SERVICE FOR TREATED WATER WHOLESALE CUSTOMERS TECHNICAL STANDARDS & APPENDICIES ADOPTED by the DALLAS CITY COUNCIL on DECEMBER 19, 1984 DEVELOPED by the WATER MANAGEMENT ADVISORY COMMITTEE and DALLAS WATER UTILITIES STAFF 40 c arias WC1t@II utlhtlls aty or 0aias January 1988 TABLE OF CONTENTS Front Cover i Frontispiece ii Foreword iii Table of Contents iv Approving Resolution v Conditions of Service for New Treated Water Wholesale Customers Appendix "A" Guidelines for Calculating Water Transportation Costs 1 Appendix "B" Water System for Wholesale Treated Customers q Appendix "C" Wastewater Systems for Wholesale Customers A Soil Percolation Tests B Absorption Trench Area C Minimum Residential Lot Size Back Cover iii 5 7 8 9 COUNCL awmw 844011 December 19, 1984 WHEREAS, the City of Dallas presently provides wholesale treated water service to 16 cities and water districts and to the Dallas/Fort Worth Airport, and WHEREAS, the City of Dallas maintains a willingness to sell treated water to other entities within the water service area defined by the Peat, Marwick, Mitchell and Company study, "Analysis of Water Service Area", dated May 9, 1980; and WHEREAS, it is advisable to revise the "Conditions of Service for Treated Water Customers", as adopted by Council Resolution 80126, dated April 30, 1980, for prospective new customers; and WHEREAS, a subcommittee of the Water Management Advisory Committee has developed and proposed for Dallas' adoption detailed service conditions for new wholesale customers, and WHEREAS, it is desired that the attached "Conditions of Service for Treated Water Customers" be adopted by Dallas; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLASs Section 1. That the City of Dallas reaffirms its willingness to sell treated water to entities within the water service area defined by the Peat, Marwick, Mitchell and Company study, of May 9, 1980, "Analysis of Water Service Area" and adopts the attached "Conditions of Service for Treated Water Customers " Section 2 That the Director of Dallas Water Utilities is authorized to develop rules and technical standards for implementing the "Conditions of Service for New Treated Water Wholesale Customers " Section 3 That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Dallas and it is accordingly so resolved 0122g/trh APPROVED BY CITY COUNCIL DEC 19 1984 A50/104,F, APPROVID PWVM "UO 0/ OVA 01M07011 O/ IIMAMG IlY µW Wel sm 1164M { V �)� Wr4� 844011 CONDITIONS OF3RRVICE FOR NIW TREATED WATIR WHOLESALg CUSTOMERS BACKGROUND The Dallas water system currently serves 16 wholesale customer cities and the Dallas/8ort Worth Airport. The Water Management Advisory Committee, made up of representatives from each of the wholesale customer cities and D/8W Airport, hag developed proposed minimum guidelines for new wholesale water customers. Dallas anticipates that future growth and development in the service area defined by the May 9, 1950, Peat, Marwick, Mitchell and Company study, "Analysis of Water Service Area" will necessitate sales to new wholesale customers. PURPOSE These minimum conditions will help to insure that the provision of water service is equitable; that issues related to the public health and well-being are addressed; that water resources in the service area are Protected and maintained for the benefit of those who depend on them; and that adequate infrastructures within the Dallas water system are built thus protecting the level and quality of service to existing as well as new customers. In addition, these Planning, financing water supply issues SERVICE CONDITIONS guidelines are provided to assist entities in their and political actions in as far as water resource and are concerned The essential service conditions shall be: New customers bear up -front costs for all delivery and metering facilities. No new customers be accepted for service if unplanned expansions of the system would be required. Rates are to be established by Dallas' cost -of -service studies and will be charged on either a two-part or flat rate basis. Transportation charges (when applicable) shall be negotiated separately with customer entities, shall be in addition to the rates established for water, and shall be subject to approval by Dallas. New customers must have an adequate water storage and distribution system and adequate wastewater collection and treatment facilities or definitive plans therefor Water and wastewater master plans must be provided and revised at least every five years 844011 .. Service will be provided only to legally constituted entities, authorised by the State of Texas to provide potable water service. The entity must have the authority to exert or contractual relationship for control over land use and uevelopaent and the necessary ordinances must be in effect prior to the effective date of a contract. .. New customers shall have and maintain operator certification for an "approved" water supply as required by State regulations. ... Delivery facilities, metering stations, and rights -of -way shall be dedicated to Dallas. Upon dedication, Dallas will assume maintenance responsibility for these facilities. ... Service shall be subject to the availability of water. . Resale of Dallas water is prohibited without Dallas' prior approval. Transportation charges, when applicable, will be collected by Dallas and credited to the appropriate customer account. ... Excess capacity in the transmission mains shall be available to Dallas for system transportation use. Customers shall be required to convert to the two-part rate when their daily water demand reaches 1 MOD (million gallons per day). Before Dallas will provide water service to a customer entity located within the corporate boundaries of a municipality, the customer must first obtain agreement from that municipality if that municipality also provides water service within its corporate Goundaries vi SERVICE CONDITIONS TREATED WATER CUSTOMERS I SERVICE AREA Within the Service Area defined by Peat, Marwick, Mitchell 8 Company "Analysis of Water Service Area" May 9, 1980. Also pyblic entities adjacent to Eastern Reservoirs (Hubbard, Tawakoni, Palest nei , And 1.akeFork) if adequate water supplies are not otherwise available (Untreated Water) II DEFINITION 3 SUPPORT - It is recognized that all the inhabitants of service area w eventually become dependent on the supply of surface water Minimum requirements must be established and maintained to insure that this transition is equitable, that the related public health and well being issues are addressed, and that the water resources of the area are protected and maintained for the benefit of those who depend on them. These minimum requirements will, by necessity, become the objective of any responsible entity seeking surface water. For many entitles* achieving the minimum requirements will require time, political action and substantial financial resources. It is therefore essential that the requirements are unifonaly administered and relatively stable so this process can take place. III MINIMUM REQUIREMENTS A. FINANCIAL 1 New customers to bear up -front costs necessary to make s rviCe available lnonnlly delivery facilities and metering stat�ons) Facilities to be sized for foreseeable future 2 No new customers that would necessitate unplanned expansion of treatment and transmission facilities 3 Rates shall be as established by the most recent cost -of -service study as adopted for each customer class exclusive of transportation charges (a) Treated water rates are classed as either (i) two-part rate or (11) flat rates. Two-part rates are charged based on a volume component and demand component Customers on two-part rates have an opportunity to optimize their average cost for water Fiat rates are charged based only on volume of water supplied. (b) Where water is transported through one or more customer entities, transportation charges should be negotiated separately with such entities, and will be in addition to the rates established for water Appendix "A" may be used as a guide to estimate the cost of this service TECHNICAL The entity requesting service should have an established water storage and distribution system as defined in Appendix "B" The service area of the entity requesting service shall have its sanitary waste collection and treatment systems subject to a responsible governmental agency having minimum requirements as defined in Appendix "C" 3 The entity requesting service shall have a water and wastewater master plan as defined in Appendix "0" Master plans shall be updated periodically, but at not less than 5 year intervals ORGANIZATION Service may be provided to legally constituted entities who can validate their ability to meet other service conditions and are authorized by the State of Texas to provide potable water service to a specifically defined area Ability of the entity to effectively assert control over land use and development and provide adequate wastewater collection and disposal will be of paramount importance in considering new customers Service to municipalities or entities which serve within the corporate boundaries of municipalities is envisioned However, service to others is not precluded Requesting entity shall have and maintain operator certification as required by the Texas Department of Health for an "approved" water system. IV OTHER REQUIREMENTS A Delivery facilities, metering stations, and rights of way to be dedicated to Dallas. Dallas to assume maintenance responsibility B. Service shall be subject to the availability of water. C. Resale of water is prohibited except with prior approval of Dallas. Base rates for resale may be the Dallas two-part or flat rate, as appropriate Transportation charges will be additive and also subject to Dallas approval. IV OTHER REQUIREMENTS (continued) E. When Dallas transports water to a Dallas customer using mains of other customers, Dallas shall collect the agreed transportation charge and credit the account of the customer providing the transportation services F Ordinance and other legal bases for land use and development control shall be in effect prior to contract effective date G Temporary excess capacity in transmission mains shall be available for system transportation use H Customers shall be required to convert to two-part rates upon reaching 1 MGO maximum demand I Agreement for Dallas to serve an entity proposing to operate within the corporate boundaries of a municipality must be obtained from the municipality if the muni ci pal i ty provides water service within its corporate boundaries 4 APPENDIX "A" u"TuT er nMes _ o� _' Calcutatin Treated Wirer Trans oration Costs or se WHO Entity Iransports water Thru Their System For Another Entity) I Calculations to determine treated water transportation costs should consider the following elements of cost A Costs Proportional to Demand (1) Distribution System Amortization (2) Pumping Facility Amortization (3) Physical Plant Maintenance (4) Administration Overhead B Costs Proportional to Volume (1) Electrical Service for Pumping (2) Distribution System Water losses (3) Chemical Retreatment (If Required) II Transportation costs may be calculated by the following formula Formula for estimating the monthly cost of transporting water through an entity, plus a mark-up of 10 percent TCM - ICAFC + ET + CWWI 1 1 L 12 1 TCM - Total monthly transportation charges at 10% markup CAFC - Total annual fixed cost ET - Total electric service cost for Q delivery CWW - Total water loss cost for Q delivery 1 CAFC - CCAP + 0 02 CCAP + 0 01 CCAP i J CCAP - Capital cost of pumping and distribution plant for transport of peak demand desired (see tables)* i - Interest rate of debt service expressed as a decimal N - Term of bonds or loan in years 0 02CCAp - Annual maintenance cost 0 OICCAP ■ Annual administrative cost rq 3 CCAp ■ OL (Cost/Mile/MGD)* + (cost of pumping plant/MGD)* rj+ L_81 D a Maximum annual demand setting in MGD L a Number of miles from pump station to delivery point (minimum value of L is 8 in the second part of this equation) * see tables for 1984 estimated values ET 5+ 1 5 (L-8) + 1 5 H EQ 11 8 �160J L ■ Number of miles from pump station to delivery point (minimum value of L is 8 in this equation) H - Elevation difference in feet between pump and point of delivery expressed as a positive or negative value E - Average electrical cost per KWN at pump station expressed in dollars Q ■ Volume of delivery in gallons/1000 4 CWW ■ Q (0 15) (Dallas water commodity cost in f/1000 gallon) WATER TRANSPORTATION CAPITAL COST TABLES Capital cost per mile of one MGD capacity system PIPE SIZE COST/MILE/MGD 8" $40,000. 12" 409000. 18" 35,000. 20" 31,000. 24" 21,000. 30" 16,000. COST OF PUMPING PLANT/MGD $10,000 SAMPLE CALCULATION Assume: 1 ■ 0.08 E ■ $0.06 N ■ 30 years H ■ 0 L ■ 6 miles p ■ 15,000 D 0.5 MGD 24" pipe site Dallas Water Commodity Cost/1000 gal $O 22 TCM ' C12 CAFC + ET + CWW� 1 1 CCAP - DL (21,000) + 10,000 (1) ■ (0 5)(6)(21,000)+10,000 ■ 73,000 CAPC 73,000 + 0 03 (73,000) 1-(� )_W ■ 7Og + 0 03 (73,000) ■ 6484 28 + 2190 ■ $8,647 28 ffIET ■5 + 1 5 (8-8) + 1 5 (0 (0 06) (15,000) 1,. 8 (1600 ■ 1 5 (0 06) (15,000) ■ $1,350 CWW ■ (15,000) (0.15) (0.22) ■ $495 00 TCM . 8671228 + 1350 + 495 ■ 722 86 + 1350 + 495 ■ $2,567 86 Average Cost/1000 gal transported ■1-1 5 7 86 1 1 ■ $0 1883 J Assistance in application of the formula is available from Dallas Water Utilities APPENDIX " All wholesale customer water systems shall, As minimum, comply with the prevailingules and requirements of the "RRegulations for Public Water Systems" as established by the Texas Department of Health. However, the rules and regulations do not address concerns of the Dallas Regional Water Supply System regarding economic and water conservation considerations, thus they are not all inclusive for the purpose of considering the adequacy of potential customer water systems Following are considerations to be addressed in addition to State standards I Distribution system constructed by acceptable methods and of acceptable materials to convey water to internal customers considering.. water distribution loss reductionEngineering studies shall validate system average loss in distribution of less than 15% Potential contamination during distribution. adequacy of pressures for fire protection and customer convenience (normally minimum pressure shall be 35 p s.i operating and 20 p.s i. residual) II Conservation Plan and Practices... all accounts (including municipal) metered published contingency plans for conservation during water shortages, peak demand periods, emergencies. III Minimum ground and elevated storage shall be constructed or planned to i nsure... total storage equal to 75 times average day consumption maximum demand on the system shall not exceed 3 to 1 ratio maximum day to storage. elevated storage equal to 50 percent of average daily consumption or 55 gallons per capita, whichever is less, with a maximum of 5.0 Mra required in each pressure zone IV Permanent connections, in excess of 5 years operating off Dallas` pressure will not be made. (Temporary connections normally shall not be made for periods in excess of five years) V Air gaps for ground storage and backflow preventers for elevated storage shall be provided. Approved backflow preventers are required for all temporary connections. VI Pumping system capable of moving water into storage and into distribution system shall be in place or planned so as to insure compatibility with an optimum utilization of storage and distribution system VII Treatment facilities shall be available if supplementary water requiring additional treatment is to be used. VIII. If system improvements are necessary to meet minimum service requirements, evidence of ability to finance the improvements must be provided. APPENDIX "C" WASTEWATER SYSTIRMA-MMSALE CUSTOMERS All wholesale customer wastewater systems shall, as a minimum, comply with the prevailing "Design Criteria for Sewerage Systems" as established by the Texas Department of Health Following are additional considerations to be addressed II III IV Interconnected wastewater collection the percent of customers residing indicated by the following graph and transmission system must serve within the corporate boundaries as Wastewater disposal for residents not on established wastewater collection and transmission systems shall, as a minimum, comply with applicable local ordinances county ordinances State of Texas standards In the absence of equal or more stringent standards, Attachment 1 to this Appendix C shall be considered the minimum standard for private sewage facilities Primary considerations for evaluating private sewage facilities shall be (1) a valid percolation test, (2) adequate absorption field and (3) satisfactory construction Enforcement authority for these considerations must be evidenced The collection and transmission system shall be constructed according to acceptable methods and of acceptable materials The system in use shall not exceed the 1 i fe expectancy cycle as outlined for the Dallas Water Utilities wastewater collection, transmission and treatment system V Treatment Plant, if operated by customer, shall be permitted by Environmental Protection Agency and approved by applicable State authority and shall... • be adequately sized and maintained to meet permit requirements be operated by qualified operators meeting minimum State certification requirements. be in satisfactory condition to serve future requirements have an approved Master Plan for future expansion VI If treatment service is to be provided by others, the service shall be evaluated according to the same standards as if customer proposed to operate the plant VII Where areas are being served by septic systems or small unit treatment systems, a master plan for development of the collection system and connecting customers to the collection and transmission systems must be available. VIII It is recognized that local, county and State requirements for septic systems and other private sewage facilities are general rather than specific The authority of Dallas to impose requirements for wastewater collection and disposal based on the specific situation being evaluated is recognized 10 ATTACE _ HM� NT I EXHMT C A. PRIVATE SEWAGE FACILITIES - SOIL PERCOLATION TESTS 1 Minimum of 2 test holes uniformly spaced over absorption field site. Four holes may be required, depending on results of 2 holes tests, per Texas Department of Health publication 2 Test hole should be 12-15 inches in diameter to the depth of the proposed trench 3 Sides and bottom of hole must be roughened to remove slick, smeared surfaces. 4 Saturation of the soil to establish swelling during wet weather is required for a minimum period of 24 hours prior to percolation test 5 Percolation test requires a water depth of 12 inches The drop in water level is measured over a 30 minute period 6 Sandy soil tests require other procedures NOTE This information is from Texas Department of Health's "Construction Standards For Private Sewage Facilities" 11 NOTES B PRIVATE SEWAGE FACILITIES - ABSORPTION TRENCH AREA FOR 3 BEDROOM SINGLE FAMILY RESIDENCES 60 30 40 30 z 20 /0 AVERAGE POWU LATON RATE (MIN/INCH) SAND 1-5 SILTY CLAY 31- 45 SANDY LOAM 6-15 CLAY LOAM 46-60 SANDY CLAY 16- 30 0 100 200 300 400 FELD W/DTN /A/ FEET 1 Absorption trench is not allowed for gravel and clay soils where Percolation rate is less than 1 min /inch or greater than 60 min /inch. 2 Area shown is for an absorption trench in irregular terrain which is larger than an absorption trench in level terrain 3. Chart is based on Texas Department of Health's "Construction Standards for Private Sewage Facilities" 4 Calculations for chart are based on Trench width of 1 foot with roughened sides and bottom Spacing between parallel trenches of 5 feet Maximum trench length of 60 feet. Minimum trench bottom areas per Texas Department of Health's publication referenced. Pipe in parallel trenches must be level 5 Each additional bedroom shall increase the area requirement of absorption trench by 33% of tnat shown in the table. 12 0 C MINIMUM RESIDENTIAL LOT SIZE - PRIVATE SEWAGE FACILITIES - DIAGRAM OF MINIMUM ABSORPTION TRENCH AREA FOR 3 BEDROOM RESIDENCE I I iff I I 10' MIN FROM -+f PROPERTY LINE I Mouse ,SAP71C OIL AWRPTION — EM (TRENCH ON SLOPE) RLQJNM TI ICATE A8.40RPTION ( TO ACCOMMATE MTWE BEDROOMS OR REPLACEMENT OF OAMAM SYSTEM To determine the required minimum lot size multiply lot length by width Length ■ Building set -back from property line + house depth + distance from house foundation to septic tank (minimum 5') + septic tank installation + distance from septic tank to soil absorption system (minimumSoil 5') + *length or width of future clleaea absorption system (from chart) and 10' minimum rance + length or width of soil absorption system (from chart) + distance to property line (minimum 10') Width Distance from property line to soil absorption system (minimum 10') + length or width of soil absorption system (from chart) + *length or width of future soil absorption system (from chart) and 10' minimum clearance + distance from soil absorption system to property line (minimum 101) *Duplicate space must be allowed within the length and width of the lot for a future absorption system to accomodate house expansion and replacement of a damaged absorption system A maintenance requirement shall be in effect such that any standing surface seepage observed 24 hours after rainfall in the immediate area of the absorption system shall be repaired by the owner within 30 days after notification or it will be repaired for him at his expense. am EXHIBIT F ,fidwasumedimme Metering Point A 1. t-- IeF 0 1 _ — —------- -- oo TOWN OF CORI z pKE D� ly Ic S 4 _ CITY OF U/�LLAi fe09 `C 'ob Jagawp 3 �. II y M <+ x e Lab 6!e x O 1: t E + tale Park -r Il Tra Pa ^ TN aTl M1 real o wnn ..lip ni VVVV f 574 g TONJN OF Q HICKORY CREEKem 9 } Y1 t •pi J /L. a � T t , ll Jx Town of Hickory Creek LEGEND 1 an ware ..a..a. waamvaren awn9elarts NORTH o aao am ON WATER SYSTEM IMPROVEMENTS nwea 1 wad asao9e.�xra waaaw• awa! r watw aoPovnswra .. •• •• .. ... I �41 i r=u=�._ EXHIBIT G In accordance with the provisions of 6 1 of the Contract, the parties agree as follows F 7 1 The Water Supply Date shall begin on the / day of 198� 2 The Volume and Demand requested for the period of time from the Water Supply Date to the beginning of the first Water Year shall be Volume i, (M G ) Demand (M G D ) Signed this ! �yt N day offiej, 198-7 CITY OF DENTON, TEXAS BY D RECT OF UTILITIES TOWN OF HICKORY CREEK BY Y TO OF HICKORY CREEK EXHIBIT H REQUESTED VOLUMES & DEMANDS FOR WATER YEARS ANNUAL WATER WATER VOLUME REQUESTED YEAR (MG) 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 AVERAGE DAILY USAGE (MGD) MAXIMUM DAILY DEMAND REQUESTED (MGD) EXHIBIT I SCHEDULE W3A WATER SALES FOR RESALE TO MUNICIPAL CORPORATIONS, WATER DISTRICTS, AND OTHER GOVERNMENTAL ENTITIES BY AGREEMENT EFFECTIVE ON OR AFTER JUNE_1, 1986 APPLICATION Applicable to all water sales contracts with municipal corpora- tions, water districts, or governmental entities made on or after June 1, 1986, for the purpose of providing water for resale to the public Not applicable for temporary, standby, or supplementary service except in conjunction with applicable rider MONTHLY CHARGES (1) Facility Charge (2) Volume Rate (3) Demand Rate *ANNUAL CHARGE (4) Readiness to Serve Rate $164 25 0 63/1,000 gals $262 56/1,000 gallons 12 0 3437/1,000 gallons *As determined in the last month of each Water Year The annual charge, if any, shall be included on the monthly billing for the next July following the end of the Water Year for which it is charged, and shall be billed and be payable in accordance with the monthly billing provided for below PAYMENT Denton shall render bills on the tenth (loth) day of each month Bills shall be due and payable when rendered Bills are considered delinquent if not paid by the twenty-fifth (25th) day of the month There shall be a five percent (5%) or five hundred dollar ($500 00) charge, whichever is less, added to the bill if not paid by the twenty-fifth (25th) of the month If not paid by the last day of the month, there shall be an additional interest charged on the unpaid balance, equal to the auction average rate quoted on a bank discount basis for a twenty-six (26) week treasury bill issued by the United States government, as published by the Federal Reserve, for the week prior to the date such bill or bills are delinquent, or ten percent (10%), whichever is less EFFECTIVE DATE The charges stated herein shall be applied to all water ser- vices supplied after May 31, 1987 RESOLUTION REGARDING THE INTERIM WHOLESALE WATER CONTRACT BETWEEN THE CITY OF DENTON AND THE TOWN OF HICKORY CREEK The Town Council of the Town of Hickory Creek, Texas, in public meeting duly called and held on the day of , 1987, among other proceedings considered as a proper agenda item the following Resolution WHEREAS the Town of Hickory Creek, Texas is a duly organized general law municipality, organized pursuant to Arts 961-1132, Ch 1-11, Title 28, TEX. REV. CIV STAT ANN (Vernon, 1963 and Vernon,Supp , 1985), being a political subdivision of the state of Texas engaged in the administration of local government and related services for the benefit of the citizens of the Town of Hickory Creek, and WHEREAS, the Town Council of the Town of Hickory Creek, Texas has determined that it is necessary to provide a larger supply of wholesale treated water to the citizens of the Town of Hickory Creek because of increased growth in the Town, and, WHEREAS, the Town Council of the Town of Hickory Creek, Texas has found it in accordance with the public interest to seek provisions for a wholesale water supply system, and the City of Denton, Texas owns and operates a water treatment and distribution system, and is further agreeable, with cooperative joint planning and funding of participating regional cities or entities, to expand its water treatment facilities in order to serve as a regional supplier of treated water; and, WHEREAS, the Town Council of the Town of Hickory Creek, Texas, has reviewed the alternatives to the wholesale treated water situation and is of the opinion that the best alternative would be a cooperative agreement with the City of Denton, Texas, for wholesale treated water service, and, WHEREAS, the Town Council of the Town of Hickory Creek, Texas and the City of Denton, Texas believe it would be in the best interest of both parties to enter into a future contract to provide for the joint planning, funding, and ownership of additional water treatment facilities to serve the future water requirements of both Hickory Creek and Denton; and, LAW OFFICES OF DON R WINDLE, P C RESOLUTION, PAGE 1 2220 San Jacinto Blvd , Suite 200, LB 8 9 Denton, TX 76205 • (817) 565 1888 Metro 430 0622 WHEREAS, the Town Council of the Tow )f Hickory Creek, Texas, desires to enter into an interim wholesale water supply contract with the expectation and condition that it will enter into a future wholesale water treatment contract with Denton, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE TOWN OF HICKORY CREEK, TEXAS, THAT 1 It is hereby determined that it is necessary and in the best interest of the public to provide a larger supply of wholesale treated water to the citizens of the Town of Hickory Creek 2 The City of Denton, Texas owns and operates a water treatment and distribution system, and is further agreeable, with cooperative joint planning and funding of participating regional cities or entities, to expand its water treatment facilities in order to serve as a regional supplier of treated water and has offered use of its water treatment and distribution system on an interim basis to the Town of Hickory Creek 3 It has reviewed the alternatives to the wholesale water treatment situation and is of the opinion that the best alternative is a cooperative interim agreement with the City of Denton, Texas, for wholesale treated water services 4 It is in accordance with the public interest to seek provisions for a wholesale water supply system, and the City of Denton, Texas owns and operates a water treatment and distribution system, and is further agreeable, with cooperative joint planning and funding of participating regional cities or entities, to expand its water treatment facilities in order to serve as a regional supplier of treated water, and, 5 It would be in the best interest of both parties to enter into a future contract to provide for the joint planning, funding, and ownership of additional water treatment facilities to serve the future water requirements of both Hickory Creek and Denton 6 The Town of Hickory Creek, Texas desires to enter into that certain Interim Wholesale Water Supply Contract proposed Between the City of Denton and The Town of Hickory Creek, with the expectation and condition that it will enter into a future LAW OFFICES OF DON R WINDLE, P C RESOLUTION, PAGE 2 2220 San Jacinto Blvd Suite 200, LB 8 • Denton, TX 76205 • (817) 565 1888 • Metro 430 0622 water treatment facility joint ownership contract with Denton, said agreement being in the form presented by the City Attorney to this meeting, a copy of which is in the custody of the City Secretary, at the earliest opportunity. 7. A true and correct copy of this Resolution is hereby ORDERED to be posted at the City Offices and the Community Center of the Town of Hickory Creek, Texas, in a conspicuous public place for a period of thirty (30) days after the execution of this Resolution, said period beginning not later than , 1987 and continuing for thirty (30) consecutive days thereafter B. Effective with the passage of this Resolution, the execution of that one certain Interim Wholesale water Supply Contract Between The City of Denton and The Town of Hickory Creek shall be approved and executed by the Mayor and Councilmembers of the Town of Hickory Creek, Texas PASSED and APPROVED by the Town Council of the Town of Hickory Creek, Texas on the _ day of _,__, 1987, pursuant to agenda item in regular se ion I FLOWE S, MAYOR T N OF HICKORY CREEK, TEXAS APPROVED AS TO FORM AND AS TO CONTENT TOWN ATTORNEY NE WARREN SECRETARY Member ouncil Member LAW OFFICES OF DON R WINDLE, P C RESOLUTION, PAGE 3 2220 San Jacinto Blvd , Suite 200 LB 8 • Denton, TX 76205 • (817) 565 1888 Metro 430 0622