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1998-102 ORD CENO AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MAN- AGBR 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 C~ty of Denton ("City") and the Upper Tnmty Regional Water District ("District") entered mto a July 21, 1992 Contract for Water Treatment and Transmission Serv- roes (the "Contract") to prowde for the sale of treated water by the C~ty to the D~stnct and for transmission and delivery by the City of a hmlted amount of the D~stnct's treated water from a specified point to certmn customers of the District, and WHEREAS, the City and the District entered rote an addendum to the Contract on Feb- mary 4, 1997 to provide for the continued purchase of treated water by the District from the C~ty on a wholesale basis and to facilitate the prov~mon of direct and treated water serwce by the Dm- tnct to the Cities of Sanger and Connth, and the Lake Crees Mumc~pal Authonty, and WHEREAS, the Contract provides in Section ? 6 "Denton's Optmn to Purchase Intenm Water" thereof that The District hereby agrees upon reasonable not,ce to allow Denton to purchase interim water out of surplus treatment capacity to be conmdered ~n the future by the Dmtnct and for transmmslon service related thereto This option may be exercised by Denton to al- low it to defer construction of its own treatment capacity or to mlmm~ze the amount of reserve capacity constructed m connection therewith The terms and conditions of such sale by the Dmtnct to Denton shall, to the extent applicable, be the same as herem, but may be modified by the mutual agreement accor&ng to the conditions and circumstances then exmtmg, and WHEREAS, the City wmhes to exercise Its option to purchase ~ntenm water from the Dmtnct and understands that the District's ability to deliver such water to the C~ty is contingent upon the District entenng into an agreement w~th the Argyle Water Supply Corporation ("AWSC") to transport such water from the District's system to the C~ty's system, and WHEREAS, the City reahzes that the District's obhgaUon under the addendum to the Contract to lmtlate the requested water service is also contingent upon the City completing the dehvery, metenng, and distribution famht~es and making them operational so that the City ~s ready to receive the water, and WHEREAS, the City Council deems it ~n the pubhe interest to approve this Second Ad- dendum to the Contract, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS ~,aTJ,.Q._~ That the Cxty Manager xs hereby authorized to execute Addendum No 2 to Contract Between the City of Denton and the Upper Tnmty Regional Water District for Water Treatment and Transmission Servxces, substantially in the form of the Addendum which is at- tached hereto and incorporated by reference herein ~ That the expenditure of funds as reqmred in the attached Addendum No 2 is hereby anthonzed ~ That this ordinance shall become effective xmmedlately upon its passage and approval PASSED AND APPROVED tlus the 7T'f~/-/~ dayof/~tflt40f/~ ,1998 JA~ ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY 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 ~I REATMENT AND TRANSMISSION SERVICES, dated July 21, 1992, (the "Contract") by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the "District"), a conservation and reclamataon district created pursuant to Article XVI, Section 59 of the Constttutxon of the State of Texas,~_L~_ and CITY OF DENTON ("Denton"), a municipal corporation, is made and approved as of the '/r._~ day of ~'Ttgt/:gf'/ / , 1998 (the "Date of Addendum") # WlTNESSETH' WHEREAS, Denton and District entered into the July 21, 1992 Contract for Water Treatment and Transm~ssion Serwces to provide for sale of treated water by Denton to Dlsmct on an interim basis and for transmission service related thereto, and WHEREAS, said Contract provides m Section 7 6 thereof that "D~stnct hereby agrees upon reasonable notice to allow Denton to purchase interim water out of surplus treatment capacity to be constructed m future by District and for transmission service related thereto This option may be exermsed 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 cond~tions 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 ex~stmg" which prowslons are applicable for the Primary Term of the Contract, and ADDENDUM NUMBI~R TWO TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DIETRICT FOR WATER WHEREAS, Denton has requested that District provide mtenm treated water service on a wholesale basis for resale to retail customers m new subdivision(s) being developed within the southwest port,on of Denton untll Denton's own transmission faclhtles 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 conttngent upon District entenng into an agreement wtth AWSC to transport such watar 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, mmally for interim service from Denton to District, but pursuant to Section 7 6 thereof, for service by District to Denton dunng the Primary Period, and WHEREAS, the delivery and metenng facilities contemplated herein, after serving their purpose for this Addendum, are expected to become part of a long-term emergency lnterconneet~on to be developed between Denton and AWSC by separate agreement NOW, TBERE¥ORE, m consideration of the mutual covenants and agreements herein contained, the parties agree to supplement the Contract w~th this Addendum as hereinafter set forth, to-wit AGREEMENT Section 1 0 r e The matters stated in the preamble hereof are true and correct and are ~ncorporated into the body of this Addendum as if copied in their entirety ADDENDUM NUMRI~R '~0 TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANEMI8810N SERV1CEE PAGE $ Section 1 1 ~ The provis~ons of the Contract shall remmn m full force and effect as supplemented by this Addendum Denton and D~stnet agree that the general provisxons of the Contract for services, winch were supplied lnmally by Denton to District, shall be apphed, pursuant to Section 7 6 of the Contract, to services to be provided by District to Denton under this Addendum Further, Denton and Dtstnet agree to add the provisions hereto to supplement the Contract with respect to purchase of interim treated water by Denton from Dlstrtet and the transportatton thereof D~smct agrees to provide interim water service to Denton tn the quantity, at the loeaUon and according to the terms specified tn the Contract and this Addendum Section I 2 Definitions For the purposes of th~s Addendum, the following definition ts hereby added "Fire Flow" means the maximum volume of water estimated by Denton that may be needed to fight a fire m that portion of Denton to receive interim water service Section 1.3 Treatment and Transmission Service For the purposes of tins Addendum, wherever applicable under the circumstances, the provisions of Article II, INITIAL PERIOD FOR WATER TREATMENT AND TRANSMISSION SERVICES, of the Contract arc hereby,agreed to apply to the requested services to be supplied to Denton by District dunng the Primary Term of the Contract, in effect, wherever apphcable under thc ctrcumstances the terms, "District" and "Denton" will be interchanged to provide a like basis for thc services to be provided by District to Denton, hereunder Section 1 4 3L~llll~lfl~L~k~ For the purposes of this Addendum, wherever applicable under the mrcumstances, the provisions of Arttcle III, WATER SERVICE, of the Contract are hereby agreed to apply to the servtces to be supplied to Denton dunng the Primary Term of the Contract, with the following modifications a ) The Peak Day Volume requested by Denton and to be supplied by D~stnct shall be 0 30 mgd, b ) Prior to each Water Year, Denton may request an adjustment tn the Peak Day Volume for ADDENDUM NUMBE TWO TO CONTRACT BETWEEN CiTY OF DENTON AND UPPER TRINI~RR~EGIONAL WATER DIETR~CT FOR WATER TREATMEHT AND TRANSMI~ION EERVICEG PAGE 4 constderation by District c ) Denton agrees, during each Water Year to pay D~stnct, 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 D~strlct shall begin when specified herein and may extend through the Water Year 2002 Section 1 fl D~|Iv0~'y and Meterinn Conditions For the purposes of this Addendum, the prov~sions of Article IV DELIVERY, LOCATION, METERING CONDITIONS, of the Contract are hereby supplemented as follows a ) Dchverv and Metenne District agrees to deliver treated water hereunder to Denton at the Dehvery Point defined m 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 ~n wnUng by the Part~es The cost of acqumng, desagnmg, mstalhng and constructing all water dehvery and metenng equipment or faeflit~es necessary to fulfill the provisions of this Addendum, including, but not hm~ted to, water lines to metenng 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 District for its written approval prior to installation, which approval will not be unreasonably w~thheld These facilities shall remain the property of Denton D~stnct shall have access to and the right to respect all facfl~tms 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, prior to the installation of metenng equipment, the necessary easements or rights-of-way upon which the metenng facthUes and associated appurtenances for all Delivery Potnt(s) will be placed Denton shall prowde, at its expense, a connection to the AWSC SCADA system to momtor the flow ADDENDUM NUMBER ~NO TO COHTRACT BETWEEN CITY OF DENTON AND UPPER TRINITy REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMI881ON SERVICEE PAGE 5 rate of the Denton meters covered by this Addendum Such connectton to AWSC's SCADA system shall be compatible w~th smd SCADA system and of design and construction acceptable to AWSC and Dtstnct AWSC and D~str~ct shall not unreasonably w~thhold their approval of the design and constmct~on of th~s connectton b ) Maintenance and Cahbrat~on of Meters All water furmshed shall be measured by meters installed by Denton at the Dehvery Pomt(s) Denton agrees to mamtam smd meter(s) and to cause repatrs and adjustments to be made promptly Denton shall test the meter(s) annually The cost of meter repmr and testmg shall be borne by Denton Upon the request of D~stnct, Denton shall test the meter(s) more frequently than annually, but, such additional test(s) shall be at Dtstnct's expense, except when an error ~n metenng ts found to exceed 2% If a meter ~s found to be ~n error by more than plus or nnnus two percent (2%), adjustments to the water bills shall be made accordingly If e~ther Party at any time observes an apparent error tn meter registration or readtng, such Party will promptly notify the other Party Denton shall promptly arrange for a cahbrat~on test to be performed by~ an umnterested third party and joint observation of any ad3ustment Denton shall g~ve D~stnct at least forty-eight (48) hours not,ce of the t~me of all tests of meters so that D~stnct may convemently have a representative present If, for any reason, any meters are out of service so that the amount of water dehvered cannot be ascertained or computed from the readmg thereof, the water dehvered dunng the period such m~ter(s) are out of service or out of repair shall be estimated and agreed upon by the Part,es hereto upon the bas~s of the best data available For such purposes, the best data available shall be deemed to be readmgs from mdtwdual meters w~thm the port~on of Denton's system supphed w~th water by D~stnct w~th a reasonable allowance for leakage, Ftre Flow, and fire flushtng If such data ~s not avadable, meter readings at the Dehvery Point(s) for a s~mdar period oft~me est~matmg the quantity of water by dehvenes dunng the precedmg periods under stnnlar conditions when the meter(s) was reg~stenng accurately shall be the best data avadable ADDENDUM NUMBER 11NO TO CONTRACT BE1Y~EEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER c ) Rate of Flow Controller Under normal conditions of service, a rate-of-flow controller anll 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 acqmrlng, designing, mstalhng, 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 I 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 prowded herein Dlsmct does not warrant that sufficient volume of water will be available for Fire Flow requirements Denton shall reeetve water from District, either through an open discharge into a ground storage or elevated storage tank, or mto a supply hne If dehvered into a supply hne, an appropriate backflow preventor check valve may, at District's sole discretion, be required to be placed by Denton in the dehvery line However, ff the Dehvery 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 baekflow device is reqmred under the provisions of this Section, all costs for acqumng, designing, installing, constructing and maintaining all equipment and facilities necessary for the required backflow device shall be borne by Denton e ) 0wnershro 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 lnterconnection f ) Access Denton shall promde continuous access to all water delivery and metenng 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 BEPA~EEN C~T*( OF DENTON AND UPPER TRINITY REGIONAL WATER DIBTRICT FOR WATER TREATMENT AND TRANEMI~BION SERV]CEE PAGE ? g ) Renorts and Notice After filling, flushing and testang 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 h ) Operational Conditions After service is initiated hereunder, Denton shall continue to keep DlsU'lct and AWSC informed about operating needs and conditions, including notice of any failed bacteriological test 1 ) Meter Readings A larger meter than needed for regular service is betng 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 dunng the early stages of the development to be served The meter should accurately measure bagh-flow events such as water main flushing and emergency events To avoid the expense of a metenng 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 Dehvery 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 Dlsmct will make the appropriate change after consultation with Denton Section 1,6 K~ked~0~l~ For the purposes of this Addendum the prowsions 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 m 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 DIBTRICT FOR WATER b ) D~stnct shall notify Denton by May 1 of each year of ~ts mtent to change rates or charges hereunder Denton shall have at least 60 days to rewew and comment on the proposed changes, prior to submission to the D~stnet Board of Dtrectors for approval Denton may have access to the Dtstnct's books and records at reasonable t~mes upon reasonable noUce to rewew the bas~s for the proposed changes m rates or charges c ) Denton will reimburse District for a Transportation Service Fee equal to the corresponding fee to be pard by D~stnct to AWSC for such service as prowded m a separate agreement between D~stnct and AWSC The purpose of such separate Transmission Agreement ~s to provtde for transportatmn of Dtstnct treated water through AWSC's system for dehvery to Denton at the Dehvery Point(s) shown m Exhibit l d ) Denton shall have an opportumty to rewew proposal changes ~n the Transportatton Semce Fee, subject to the hmttatmns expressed m the Transmission Agreement wah AWSC e ) Water servtce provtded under th~s Addendum shall utilize temporarily surplus capactty of the D~stnct's Regional Treated Water System If Denton desires that service hereunder contmue after the Dtstnct's surplus capactty has been exhausted, Denton agrees that D~stnct may d~scontmue serwce on 60-day notme or may revtse rates to reflect full cost of service on a panty wtth other customers olD,strict Section 1 7 Addendum Subject to Aereement with AWSC Th~s Addendum ~s connngent upon and subject to the terms of a separate agreement between D~stnct and AWSC for transportatton of D~smct water through AWSC's system from D~smct's system to Denton's system No portton of flus Addendum or actmn by Denton related to serv~ce prov~ded to Denton by D~stnct m accordance wah thts Addendum shall cause D~stnct to be tn breach of smd agreement between D~stnct and AWSC A copy of the Transm~sston Agreement vath AWSC ~s attached hereto as Exh~ba 2 Seetton 1 8 District agrees to ~mt~ate the requested service upon the following condmons being completed a ) Approval of an agreement between District and AWSC to transport water for Dtstnct to the ADDENDUM NUMBER TWO TO COf~i'RACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER D~TRICT FOR WATER TREATMENT AND TRANEMIEEION EERVtCES Dehvery Point, and b ) Written notice from Denton that delivery, metenng and dlstnbuUon facthtles are completed and operational and that Denton is ready to receive the water Section 1 9 Termination of Service Within the effective term of this Addendum, Denton may discontinue the services provided hereunder at any nme upon sixty (60) days written notice to District District may dlsconnnuc scrvmc according to thc terms of the Contract Section 1 10 TernlofAddendum This Addendum shall be effective on and from the Date of Addendum specified in the opening paragraph hereto The Addendum shall continue through midnight, May 31, 2002, unless extended by mutual agreement of thc Parties Initiation of service under thas Addendum shall be m accordance with Section ! 8 hereof UPPER TRINITY REGIONAL WATER DISTRICT Richard H Huckaby ~ President, Board of Directors ADDENDUM NUMBER TWO TO CONTRACT BE'~NEEN CtTY OF DEHTON AND UPPER TRIN~W REGIONAL WATER DIGTRICT FOR WATER TREATMEI~r AND TRANEMIESION EERVtCE$ PAGE t0 APPROVED AS TO FORM AND LEGALITY. John 1( BoYle, Jr, Counsel for the~smct CITY OF DENTON, TEXAS Ted Benawdes, City Manager ATTEST. APPROVED AS TO FORM ~ LEGALITY Herb Proud, C~ A~omey// N.T.S. - ! ? I ', ' I ~ter L~tion & ~live~ Point A EXHIBIT 2 Page 1 of 3 396W Main Suite tO2 R[OIONAL WAT (9Z2) 219 1228 Fax (972)221 9896 February 27, 1998 Mr Randall Dav~ General Manager Argyle Water Supply Corporation PO Box 174 Argyle, Texas 76226 Re Temporary Water Service to Denton Dear. Mr Davis: Denton has requested that the DIs~tct sell and deliver surplus treated water on an interim basis to Denton to support subdivision development in sou~wast 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 Dis~J'ict water across AWSC's system for delivery to Denton at the Iocabon show~ in the affached sketch This memorandum is to formalize the water transportabon agreement between AWSC and District Concerning the proposed agreement with Denton to prowde the requested se~ce, District will include in the agreement appropriate provisions for design, construction and maintenance improvemer~ necessary to deliver and meter water for Denton pertaining to this transportation agreement. Such provisions will Include connecting the metering fadlity to AWSC'e 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 AW~C for transportation to Denton by AWSC at the existing point, for metering and delivery of District water to AWSC on Flncher Road For billing purposes, DIs'~lct will reduce the volume basis fo~ calculating the monthly bill owed by AWSC to District by the volume delivered to Denton through AWSC'e system during the corresponding peHnd and metered at the location shovm on the attached sketch This agreement shall not cause any change in the demand portion of the bill owed by AW$C to DiStrict For operational purpoeas only, District will increase the rate of flow control sat~ng at Its delivery point to AWSC to compensate for the delivery rate of District water to Denton through AWSC's system AWSC wdl bill District on a monthly basis fo~ transportatJon of the volume of water delivered to Denton by District at the metering Ioc~;on shovm on the attached sketch 16 EXHIBIT 2 Page 2 of 3 Mr Randel Dav~ Feb~a~ 27 1~98 Re Tee'n~omry Wetor ,Serv, oe to Denton Page 2 Dunng the period from the effe~ve date of th~s agreement through May 31, 1999, the rate charged Disthct by AWSC for transportation of D~strlct water under th~s agreement shall be $0 133 per thousand gallons, based on a h~gh service pumping energy cost factor of $0 083 and a factor for other costs of $0 05 per thousand gallons The energy pertlon of th~s transportabon rate may be adjusted each water year begmmng June 1, 1999, upon sixty (60) days written nobce by AWSC to D~str~ct If AWSC agrees to provide the proposed services under the terms described, please indicate by s~gning below For Argyle Water Supply Corporation I nOR'laS t= I aylor . Executive Director ~::~'~T~e Approved Richard Huckaby, President Upper TnnRy Regional Water District Date Attch Sketch of Delivery Point to Denton 17 - EXHIBIT 2 I \ ~ \~, Page 3 o1' 3 N - ~ ~..~ '~,N.T S ,/ ,, ~' Z~~ ~ter L~tion & .~~,