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1988-2072582L NO AN ORDINANCE APPROVING SUPPLEMENTAL AGREEMENT NO 1 BETWEEN THE CITIES OF DALLAS AND DENTON, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT, APPROVING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council hereby approves and author zes t e Mayor to execute Supplemental Agreement No 1 between the Cities of Dallas and Denton regarding the use of the City of Dallas' Lewisville Lake Outlet conduit and water flows and the City of Denton's proposed Lewisville Hydroelectric Turbine, under the terms and conditions contained in said supplemental agreement, a copy of which is attached and made a part hereof SECTION II That the City Council authorizes the expenditure of fun as n t e manner and amount as specified in the agreement SECTION III That this ordinance shall become effective imme ate y upon its passage and approval PASSED AND APPROVED this the,&4 day of 1988 c.0-- Y ST ENS, MAYOR ATTEST 6 ERS, CI SECR~ ARY APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY All -s / -xi Q SUPPLEMENTAL TO UNTREATED BETWEEN THE CITIES AGREEMENT NO 1 WATER CONTRACT OF DALLAS AND DENTON Exhibit F to the original Contract, dated August 7, 1985, is amended to add the following Paragraph 2A Regarding the use of the CITY OF DALLAS' LEWISVILLE LAKE OUTLET CONDUIT AND WATER FLOWS and the CITY OF DENTON'S Proposed LEWISVILLE HYDROELECTRIC TURBINE, the Cities of Dallas and Denton agree to add the following operational conditions Dallas will not exercise its right to transport water through the proposed pipeline from Lewisville Lake to Elm Fork Water Treatment Plant until the year 2005 Dallas will not object to Denton's installation of a hydroelectric turbine generator on Dallas' Lewisville Lake Outlet conduits for operation in 1990 Dallas will continue to have complete and total control over determining the water releases from Lewisville Lake including water releases passing through Denton's hydroelectric turbine Such water releases shall be for the purpose of providing a supply of water to Dallas' water plants. The generation of electricity by the hydroelectric unit will be incidental to the water supply releases The conservation of water for the municipal water system's use is the primary and paramount purpose of water releases, however, Dallas will take into consideration the needs of the hydroelectric plant where feasible D Dallas will obtain a "non-consumptive water right from the Texas Water Commission for the hydroelectric turbine Any permitted right will be the possession of Dallas but Dallas will allow Denton's use of such permits for hydroelectric generation use as required by Denton's FERC permit and as herein agreed. Any costs incurred by Dallas to secure such permits and any annual or other periodic permit fees shall be paid by Denton. Any such permitted right shall be subject to Dallas' right to use water for municipal purposes, in the event Dallas' need for municipal purposes requires it, Dallas may require Denton to cease hydroelectric operations E. Denton shall work with and support Dallas, if any actions are initiated by the Federal Energy Regulatory Commission or its successor agency and/or other bodies that may attempt to impose jurisdiction or any criteria on Denton or Dallas, resulting from Denton's hydroelectric project, which would have the effect of diminishing Dallas' and/or Denton's water rights or safe yields of Lewisville Lake or upstream reservoirs. F In the interim, Dallas will construct a raw water intake and pumping facility for the Elm Fork Water Treatment Plant in lieu of constructing the pipeline However, additional energy costs will be required for Dallas to use the intake facility instead of the pipeline, and Denton will compensate Dallas for this energy in the following amounts From initial operation to December 31, 1995 1,250,000 KWH/yr From January 01, 1996, to December 31, 2000 2,000,000 KWH/yr From January 01, 2001, to Installation of 2,500,000 KWH/yr Pipeline Denton's obligation will continue until the delayed pipeline is placed in operation or Denton decommissions the hydroelectric unit, whichever occurs first, at which time Denton will no longer be required to compensate Dallas Dallas will be responsible for all other costs related to the intake structure The compensation for the above amounts of electricity shall be based on the average cost per KWH that Dallas pays for electrical power at the Elm Fork pump station. Ownership of the hydroelectric plant will stay with the City of Denton and Denton will not sell or sublease to any other organization without the prior agreement of Dallas. Dallas may, at its sole option, construct and/or connect the pipeline at any time during or after year 2005, providing Dallas notifies Denton of its intent to construct and/or connect the pipeline at least one year in advance. Denton agrees to provide at no cost to Dallas a blind flange connection at least equal in size to the existing Dallas connection upstream from the hydroelectric unit for Dallas to connect a pipeline for Dallas' future use Denton shall obtain Dallas' approval of the design for the blind flange connection before it is constructed. Denton will transfer title to the piping from Dallas' Lewisville Lake Outlet conduit to the blind flange connection, including the blind flange connection, to Dallas whenever Dallas connects the pipeline to the blind flange connection. The above operational conditions are agreed to pursuant to Paragraph 2 of Exhibit F of the original Contract All other terms, provisions, conditions and obligations of the original Contract between Dallas and Denton, dated August 7, 1985, shall remain in full force and effect, and said original Contract, as same may have been previously amended, and this Supplemental Agreement No 1 shall be construed together as a single contractual agreement PASSED AND APPROVED THIS /y day of ~on1 n / n 19 APPROVED AS TO FORM ANALESLIE MUNCY, City Attorney By ATTEST BY n. uL I NUS City ecre r APPROVED AS TO FORM By (D. ~uyv^ 7 Attorney CITY OF DALLAS RICHARD KNIGHT, JR , City Manager Assistant y orney ss s y anager Submitted to City Atto CITY OF DENTON By kt~Aai~-~ ~C, COUNCIL CNAM91A December 14, 1988- 839 4 7 WHEREAS, the Cities of Dallas and Denton desire to amend Exhibit F of the August 7, 1985 contract for the sale of untreated water to the City of Denton by the City of Dallas with "Supplemental Agreement No 1", and WHEREAS, the amendment will provide for specific details regarding the use of the City of Dallas' Lewisville Lake Outlet Conduit and Water Flows and the City of Denton's Proposed Lewisville Hydroelectric Turbine, and WHEREAS, the City of Denton desires to install a hydroelectric turbine generator on Dallas' Lewisville Lake Outlet conduits for operation in 1990, and WHEREAS, the City of Denton will provide a connection for Dallas to connect a future pipeline and will compensate Dallas for additional energy costs required due to the installation of the hydroelectric turbine, and WHEREAS, the City of Dallas will not transport water through the future pipeline until the year 2005 but will, in the interim, construct a raw water intake and pumping facility in lieu of constructing the pipeline, Now, Therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS Section 1 That the City Manager be and is hereby authorized to enter into an amendment to Exhibit F of the existing August 7, 1985 contract for the sale of untreated water to the City of Denton with "Supplemental Agreement No 1" after approval of the amendment by the City Attorney as invoiced under this and directed Section to agreement deposit reeiptsthfrom i the City ofin Denton is to Dallas Water Utilities Operating Fund FUND AGENCY ORG ACTIVITY 100 DWU 7312 624T Section 3. That this resolution shall passage in accordance with the provisions and it is accordingly so resolved OBJECT CODE 5021 take effect from and after its of the Charter of the City of Dallas APPROVED BY CITY COUNCIL DEC 14 1988 / City Secretary r PMIOYW APPpOVW A DIA! Of INANCE CITY 1MNA0@R SUP40ONA