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
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~ter L~tion & .~~,