1987-0651749L
NO
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 BFFECTIVB DATE
TH~ COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I
That the Cxty 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 Cxty Council authorizes the Mayor to execute, on
behalf of the C~ty, the contract here~n approved
SECTION III
That th~s ordinance shall become effective xmmedxately upon
~ts passage and approval (~j~h~.,d ~
PASSED AND APPROVED th~s the day of , 1987
CITY OF DENTON, TEXAS
ATTEST
ACTINO~ITY SI~CRETARY
CITY OF- DENTON, TEXAS
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY
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INTERIM WHOLESALE WATER CONTRACT
BETWEEN THE CITY OF DENTON AND
THE TOWN OF HICKORY CREEK
TABLE OF CONTENTS
A WATER SUPPLY PROVISIONS
Definitions
Interim Water Supply Contract
Conditions of Supply
Required System and Standards
Metering
Annual Water Requirements
Rates
Payment
B GENERAL PROVISIONS
9 Effecttve Date
10 Term
ll Not~ce and Agents
12 Termination and Suspension
15 Liability
14 Severab~l~ty
15 Assignment
16 Entire Agreement, Modification
17 Headings
PAGE
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C EXHIBITS
1749L
THE STATE OF TEXAS
COUNTY OF DENTON
INTERIM WHOLESALE WATER SUPPLY
CONTRACT BETWEEN THE CITY OF DENTON
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 3olnt
planning and funding of participating regional cities or
entitles, 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
Htckory Creek for its present water needs on an ~nterlm basis on
the expectation and condition that Hickory Creek will enter into
a future contract with Denton to provide for the 3olnt 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
l 1 Definition of Terms The words used in th~s Contract
shall, unless the 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 l
to May 31 o£ the succeeding year
2 INTERIM WATER SUPPLY CONTRACT
2 1 Interim Sale of Excess Capacity The treated water to be
supplied Hickory Creek under this contract 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 £or 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 Cqntinued Water Supply Contingent on Joint Ownership Con-
tract As the water supply requirements of 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, 1£ 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
PAGB 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 faclhtat~ng discussions on the Joint
OwnersMp Contract contemplated by th~s 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 ~nto 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 part~es approve and execute
the attached Letter of Intent
2 4 Implementation of Joint Ownership Contract
Water Year of this Contract, Denton
If, during any
(a) Determines that it will, for the succeeding Water Year,
need the excess water treatment capacity allocated to
H~ckory Creek under th~s Contract to serve the require-
ments of the Denton System, or,
(b) Proposes to review or accept, during the succeeding
Water Year, englneenng 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 ~s
sent by Denton, Denton and Hickory Creek shall fall 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
CONDITIONS OF SUPPLY
5 1 Master Plan Prior to the beginning of the first Water
Year, Hickory Creek 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 rewsed 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 be for the 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 provided 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 the 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?ute Where the
supply of treated water from the Denton System is reduced by rea-
son of "force majeure," 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 majeure"
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 Required by Hickory Creek Hickory Creek shall
construct, install, or otherwise 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 the Delivery 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 5 Conveyance from Delivery Point It shall be the sole respon-
sibility of Hickory Creek 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 H~ckory 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 th~s 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 METERIN6
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 xncorrectly 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 slx months, whichever is less,
shall be ad3usted for the applicable period of time, by adding
or subtracting the ad3usted amount, as the case may be, on the
succeeding billing made to Hickory Creek
5 3 Un,it 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 l 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 fall 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 ~or 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
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
w~thln what period of time the not~ce shall be required Should
Hickory Creek fa~l to give notice of ~ts 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, xt shall g~ve Denton written notice of
its intent at least five years prior to the beglnnxng of the
Water Year in which the reduction or d~scont~nuance ~s
proposed The notxce shall specify the beg~nnxng date of the
proposed reduction or discontinuance and, in the case of a
reductxon, 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 xn Volume
(b) At least one year prior to the beginning date of the
proposed reduction or discontinuance, Denton shall make a deter-
mlnatlon of whether the requested reduction or discontinuance
w~ll 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 ~n meeting the requirements of th~s
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 Hxckory Creek, w~ll be
reduced in the remaining Water Years, or, ~f d~scont~nuance has
been requested, on what date, if any, it will allow Hxckory
Creek to cease recelwng water under this Contract
(d) If 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 H~ckory 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 supphed to Hickory Creek are
found If Denton should fall 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 by Denton under this Contract shall be f~xed so
as to be Oust 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 attrxbutable to providing the
water service under standard, accepted cost accounting
practxces
7 2 Rates Established by Ordinance Hickory Creek shall be
charged and shall 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 5 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
Creek
(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 Hxckory Creek shall pay monthly the "Demand
Rate" as provided for in the applicable Rate Schedule, for the
greater of (l) the Demand requested for the current Water Year,
or, (2) the highest Demand requested in any one of the five
prior Water Years, except as follows
(a)
Should Denton be unable to supply the Demand requested,
as needed, for the current Water Year for (17 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 Month
(b)
Should Denton be unable to supply the Demand requested
for the current Water Year, as needed, for thirty (30)
or more consecutive days dunng the period of time from
May i 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 Supplied x Demand Rate
Demand 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 $ Amendment of Rate The water rate shall increase or
decrease from time to time during the term of this Contract ~n
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) Proposed Fee~ Purpose The parties recognize that
Denton is considering 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 Payment Upon Imposition of Fee Hickory
Creek agrees that if Denton does 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 Providing for Fee and Payment Denton may
impose the additional 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 ali necessary information
and records to Denton as is required to caIculate, administer or
impose the fee
8 PAYMENT
8 1 Bllllnt and Payment Denton shall bill and Hickory Creek
shall pay for the water 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 Z Hickory Creek to Fix Adequate Rates H~ckory Creek agrees
to establish and collect rates and charges for the services to
be supplied by its System as will make possible
(a) The prompt payment of all charges prowded 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 Payments Hickory Creek agrees that no tax
revenues shall be 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 ~f 3olntly funded
and operated with its wastewater collection system, from the
revenues and income of the combined systems
B G~NERAL PROVISIONS
9 EFFECTIVE DAlE
9 1 Effective Date This Contract shall, except as otherwise
provided for herein, become effective on the date it is approved
PAGE l$
by ordinance or resolution of the governing bodies of the respec-
tive parties, if on the same date, or, ~f not the same date, on
the later date of the respective dates the approval ~s g~ven
As shown in the respective ordinances or resolutions, t~e effec-
tive date of this Contract is the ~ day of f~.~ ~.~ ,
1987
9 2 Contract Subject to Approval of Wastewater Contract This
Contract contemplates that the parties will, on the effective
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 fall, on the respective dates this Contract ~s approved by
the governing body of each party, to approve a wastewater
services contract agreeable to both part~es, 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 g~ven to the parties under this
Contract shall be in writing and sent by certified mall to the
respective parties at the following address
To Denton
Director of Utilities
Utilities Administration
215 E McKlnney
City of Denton, Texas 76201
To H~ckor¥ Creek
Mayor of H~ckory Creek
P 0 Box 455
Lake Dallas, Texas 75065
11 2 Designated Agents For purposes of administering this
Contract, Denton shall 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 ~n th~s Contract
PAGE 14
12 TERMINATION AND SUSPENSION
12 1 Concurrent Termxnatlon of Contracts If during the term of
th~s Contract, the wastewater services contract between the
parties ~s terminated ~n accordance w~th its terms, th~s
Contract shall terminate on the date of the termlnatton of the
wastewater contract
12 2 Te!m~natlon Upon Default
(a) Should lilckory Creek fall to comply with or perform any
condition or obligation on its part, and, if after such failure
Denton shall give written notice to H~ckory 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
per~od
(b) The failure of Denton to exercise any right of termina-
tion or 1ts 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 prov~slon of this Contract, or
the waiver of the right of Denton thereafter to exercise its
rtght 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 Hickory Creek from 1ts obligation to make payments for
services rendered under this Contract pr~or to the date of
termination
12 4 Suspension by Force Majeure
(a) If by reason of "force majeure" either party is unable
to perform any obligation of th~s Contract, ~t shall gzve not~ce
of the force majeure to the other party in writing within ten
days of the occurrence relied upon The obligation of the party
g~vlng 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 H~ckory
Creek's obligation to make payments for water already delivered
to DentOn be suspended
(b) "Force Majeure" shall mean acts of God, landslides,
l~ghtn~ng, earthquakes, hurricanes, storms, floods, or other
natural occurrences, strikes, lockouts, ~nsurrect~ons, 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
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 ~s by any court held to be
illegal or in conflict with any law or regulation, the validity
of the remaining provisions of th~s 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 prowslon held to be invalid
15 ASSIGNMENT
Hickory Creek shall not assign nor transfer in whole or ~n
part the r~ghts 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 ~n 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 original
ATTEST
CITY OF DENTON, TEXAS
ACTING CITY SECRETARY
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH
CITY ATTORNEY
CITY OF DENTON, TEXAS
ATTEST~
~_...-~AVE~E' WARREN
CI~f SECRETARY
TO~/N OF HICKORY CREEK, TEXAS
TOWN OF HICKORY CREEK
APPROVED AS TO LEGAL FORM
DON R WlNDLE, CITY ATTORNEY
TOWN OF HICKORY CREEK, TEXAS
PAGE 17
C EXHIBITS
Exhibit
A
B
C
D
H
Subject
Delivery Point Location at
deliver water to Hickory Creek
which Denton will
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
Water Master Plan Information The information
required to be submitted by H~ckory Creek in ~ts
Plan
Service Area The area to be served by the water
supplied by Denton to the Hickory Creek System
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
Metering Point The location at which the water
Supplied is metered
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
Water Requirements for Each Water Year
and Demand requested by Hickory Creek for
Year
The Volume
each Water
Rate Schedule The water rates to be applied to
H~ckory Creek, as established by the Rate Schedule
adopted by ordinance of the City Council of Denton
EXHIBIT A
~---- Delivery Point
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
l 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,
BY
TEXAS
TOWN OF HICKORY CREEK
/'MAYOR ~
TOWN OF HICKORY CREEK
EXIIIBIT C
HATER AND WAST~TER PLAN DATA
WATER
A Extsttng Syst~
Wrttten Description of Present System
Past Experience For The P~evlous 5 and ]0 Year Pertods
Average day water demand
2 ~ax~mum day water demand
3 Populattofl
4 GaITons per day per captta
Demands
Supplles
Storage
Land Use
Future [flprovements
2 Map of System
Ent~ty's O~ned Fac~lfttes
Purchased Wator Facilities
All Transmtsstofl and DJstr~buttofl Mains
3 Enttty's Ovned FacJltttes
a. Types of Factlfttes
1 Wells
Water Treef~eflt Plants
Storage Facilities
¢ Pumptng Statlons
b Hydraulic C~pecl~
4 Purchased Hater Facilities
Hater Suppller
Types of Facilities
~ydraullc Capactty
[!
1. Hap of Future System
a. Future O~ned Fac~1~t~es
b. Future Purchased Water Facilities
¢. Future Trensm~sston and 01st~but~on ~tns
d. Futu~ Potnts of Dellve~/
Owned Facilities
3 Purchased Water Fac~11t~es
A~ea to be Served by Ctty of Dallas
1 Map of Servtce Area
Present Boundaries
Anticipated Future Boundaries
D Population
1 Present Area PoDulatlon
2 Population Projected, $, 10, 15, 20, 25 years mtntmum
Water Requirements
I Present
a Average Maximum Dally Demand
b. r~xtmum Daily Oemnd
c Maximum Hourly Oe~mnd
Projected Water Requirements, 5, 10, 15, 20, 25 years mtntmum
Average Maximum OeMnd
~xtmum Oatly Oemnd
c Maxtmum Hourly Demand
WAST£WATER
Ao Extsttng and Future System
1 Written Description of Present System
a Past £xper~ence
b. Demands
c Collections System
d. Type of Treatment
e. Future Improvements
f Goals
~. H&p o~' System
[nttty's Owned Facilities
Contracted Wasteweter Otsposal Facilities
Sewer Mains
£~luent Location
3 Plow Data
a Peak Flow
b Average Daily Plow
4 Treatment
a £nttty's Owned Facilities
b Contracted Westewe~er Otsposel Facilities
c Type o~ Treatment
d Type o~ Discharge Pen. it
EXHIBIT D
Town of Hickory Creek
EXHIBIT E
CONDITIONS OF SERVICE
FOR
TREATED WATER
WHOLESALE CUSTOMERS
LA~
DALLAS WATER UTILITIES
January 1985
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
cJal~as water
January 1985
TABLE OF CONTENTS
Front Cover
t Frontispiece
H Foreword
ttf Table of Contents
~v Approving Resolution
v Conditions of Service for New Treated Water Wholesale Customers
Appendix "A"
Guidelines for Calculatfng Water Transportetton Costs
Appendix "B"
Water System for Wholesale Treated Customers
Appendtx "C"
Wastewater Systems for Wholesale Customers
A
B
C
Sotl Percolation Tests
Absorption Trench Area
Mtntmum Residential Lot Size
4
5
7
8
9
Back Cover
ttt
December 19, 198~
WItERZA~, the City of Dallas presently provides wholesale treated water
service to 16 cities and water districts and to the Dallas/Fort Worth
Azrport, and
WltEREAS, 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, "Analylie of Water Service Area"
dated ~ay 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 customere~ and
WItEREAS, a eubaom~ittea of
developed and proposed for
for new wholes&la customers,
the Water Management Advisory Committee has
Dallas' adoption detailed service conditions
and
WItEREA~, it is desired that the attached "Conditions of Service for
Treated Water Customers*' be adopted by Dallas~ Now, T~erefore,
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, 19SO, "Analysis of
Water Service Area" and adopts the attached "Conditions of Service for
Treated Water Customers"
Section 2 That the Director et Dallas Water U~xlities Ks authorized
develop rules and technical standards for implementxng the "Conditions
Service for New Treated Water Wholesale Customers"
Section 3 That this resolution shell take effect ~mmediately ~rom and
after its passage in accordance with the prov~sions of the Charter of the
C~ty of Dallas end it is accordingly so resolved
O122g/trh
APPROVED BY
CITY COUN IL
made up of representatives from each of the wholesale customer cities and
D/FW Airport, has developed proposed minimum guidelines for new wholesale
water customers. Dallas anticipates tha~ fu~ura growth and deveLopuen~
in the service area defined by the May 9. 1980, Peat, Marwick, Mitchell
end Company study, "Analysis of Water Service Ara&" will necessitate
sales to new wholesale customers.
PURPOfE
service is equita~la~ ~hat issues related to ~he publio health end
well-being arm addressed; ~hat water resources in the service area ere
protected and maintained ~or the benefit o~ those who depend on thel~ and
~ew custo~erso
In addition, these guidelines are provided to
planning, ~lnancing and political actions xn as
water suppl~ issues are concerned
far as water resource and
~ERVICE CONDZTIONS
The essential service conditions shall
~ew customers bear up-front costs for ail delivery and meterxng
facilities.
No new customers be accepted for service ~f unplanned expansions of
~he syete~ would bo required.
P~tes ara to be est&bLzshed by Dallas' cost-of-service studies and
will be charged on either a two-part or flat rate basis.
Transporta~ion charges (when applicable) shall be negotiated
established for wa~er, and shall be sub~ect ~o approval by Dallas.
New customers numa ~ave an adequate water storage and distribution
system and adequate wastewater collection and treatment facilities or
definitive plans ~here~or
Water and wastewater master plane must be provided and revised at
~east every five years
v
neoeSear¥ ordinenoes must be in effeot prior to the ef~eotive date of
.. New customers shell have and maintain operator certificetton for an
"approved" water supply &, required by State regulations.
Delivery f&ciLities0 metering stetions, and rights-of-way shall be
dedioated to Dallas. Upon dedication° Dallas will assume maintenance
responsibility for these faoiLttie,.
· Resale o~ Dallas water is prohibited withou~ Dallas' prior approval.
Transportation charges, when applicable, will be collected by Dallas
Customers shall be reguired to convert to She two-part fete when
their daily water demand reaches 1 ~D (million geLLona per daM).
Before Dallas will provide water service to a customer entity located
w~thin the corporate boundaries of a municipelt~y, the customer mus~
also provides water service within ~ts corporate boundaries
S£RVICE CONOITZO#$
TREATED WAT~FIr CUSTOHERS
I!
S£RVICE AREA
Within the Servtce Area defined by Peat, Harwtck, Httche11 & Cowa~
"Aflalysts of Water Service Area" ~ 9, 1980.
Also ~tttes adjacent to Eastern Reservoirs (Hubbard, Tawikont,
Pmlest~r'~t~-~d-TZK~rork) if adequate water supplies are not otherwise
avat 1 able ( Unt~eted Water)
D£FINZTZO~re: SUPPORT It is recognized that all the Inhabitants of
service will eventually became dependent on the supply of surface
water Minimum requirements must be establtstmd and mutntelned te insure
that thts transition is equitable, that the related publtc health and wall
being issues are addressed, and that the ~eter resources of the area art
protected and matntetned for the beneftt of those who depend on them.
These minimum requirements will, by necesst~, became the QJ~ecttve Of any
responsible enttty seektng suffice water. For me~y entities, achieving
the mtntmum requirements wtll require time, political action and
substaflttal financial resources. Xt is therefore esleflttll that the
requirements are ufltfomly administered and relatively stable so thts
process can take place.
III MINZHUH REqUIRO4ENTS
A. FINANCIAL
New $~%tom~re to bee? up-fren$ costs necessaryL tA makq )~rvt;e
available ~no~11y aeltvery facilities aha metering stations;
~actllttes to be stzed for foreseeable future
No new custMrs that would necessitate unplanned expansion of
treatment and transmission facilities
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 (t) tm-part rate
o~ (tt) flat rates.
Two-pert rices are charged based on a volume component
and demand component Customers on Cwo-part rates hive
an opportunity te optimize their average cost for water
~lat rates are charged based only on volume of water
supplied.
~V
OTH£R
A
(b)
Where water Js transposed through one or more customer
ent~ttes, transportation charges should be negot~ate~
separately wtth such entitles, end w111 be In addttton ~o
the rates established for water Appendtx "A" may be used
as a guide to esttmate the cost of this servtce
TECHNICAL
The entt~y requesting service should have an established
storage end distribution system es deftned
The servtce area of the enttt¥ requesting servtce shall have
its san~t&~/ waste collection end tree,sent systems subject to
s responsible governmntal agency having minimum requirements
es deftned tn Appendix "C"
3
The entity requesting service shall have a water end wastewater
master plan es de¢lned tn Appendix "D" I~ster plans shall be
updated periodically, but et not less than 5 yelr Intervals
ORGANZZATZON
Service m~v be provided to legally constituted enttttes who can
valldate their abtltty to meet other service conditions end ere
authorized by the State of Texas to provtde potable water service to
a specifically deftned area Abtllty of the entt~ to effectively
asse~ control over land use end development end provtde adequate
wastewater collection and dtsposal will be of parm~ount lmpor'cance
tn considering new custwre Servtce to municipalities or enttt~es
whtch serve wtthtn the corgorste boundaries of municipalities ~s
envisioned However, servtce to others ts not precluded
Requesting enttty sh&11 have end maintain operator certification es
~equlred b~ the Texas Department of Health for an "approved" wa~er
system.
RE~UJR£1~NTS
Deltve~ f&ctltttel, metertng stations, and rtghts of way ~o be
dedicated to Osllas. Dallas to assume maintenance responsibility
Service shall be subject to the availability of water.
Resale of water ts prohibited except wtth prior approval of Dallas.
Base ratas for resale may be the Dallas ~wo-part or flat rite, as
appropriate Transportation charges w111 be addtttYe and also
sub~ect to Dallas approval.
[¥
OTHER
E.
G
H
!
(continued)
San Dallas transports wator to a Dallas customer using mai ns of
other customrs, Dallas shall collect Ge agreed
charge and credit ~e account of ~e cus~me~ pmvtdtng
~rans~r~tton servtces
Ordinance and o~er legal bases for land use and development control
shall be In effect prior to contract effec~ve date
Temporary excess capectty tn transmission mains shall be available
foe system transportation use
Customers shall be required to convert to two-part rates upon
reaching 1 ~ maximum demand
Agreement for Dallas to serve an entlt7 proposing to opereto wt~htn
Ga corporate boundaries of a muntclpallt~ must be ob~tned f.m ~e
muntct;allt~ tf ~e mun~ctpallt~ pmvtdes we~r servtce wt~tn
cor~rato boun~r~es
II
APPENOZX "A"
~u1~ellfles
Calculating Treated t~r Transporetton Costs
use when An ~nclty ~ransports water
Thru Thetr System For Another Entity)
Calculations to detemtne treated water transportation costs should
constder the following elements of cost
A
Costs Proportional to Oemand
(1) Distribution System Amortization
(2) Pumptng Factllty amortization
(3) Phystcal Plant Maintenance
(4) Administration Overhead
6 Costs Proportional to Voluma
(1) Electrical Servtce for Pumptng
(2) Distribution System Water Losses
(3) Chemtcal Retreatment (%f Requlrod)
Transportation costs may be calculated by the following fomula
Fomula for estimating t~ monthly cost of transporting water
through an enttty, plus a mark-up of 10 percent
TC~
CAFC
TCM 'FCAFC+ET+C I 11L12
- Total monthly transportation charges at lot markup
· Total annual ftxed cost
ET
CAFC
CCAP
Total electrtc servtce cost for Q dellvery
Total water loss cost for Q dellvery
CCAP + O 02 CCAP + 0 O1 CCAp
Capttal cost of pumptng and distribution plant ~or
transport of peak demand destred (see tables)*
= %nterest rate of debt servfce expressed as a dectmal
- Tam of bonds or loan ~n years
0 02CCAp · Annual maintenance cost
00ICCAp · Annual a~minlstratlve cost
3
4
2 CCAP
L
ET
L
H
CW
~lax~mum annual demand setttng In MC=I)
Number of mtles from pump statton to deltvery point (mtntmum
value of L fs 8 tn the second parc of th~s equaUon}
see tables for 1984 estimated values
· Number of mtles from pump station to delivery point (minimum
value of L ts 8 ~n thts equation)
- Elevation dlffemnco tn feet between pum~ and point of
deltvery expressed as a postttve or negattve value
= Average electrical cost per KgH at pump statton expressed
in dollars
- Volume of deHvew tn gallons/lO00
· 0 (0 15) (Dallas water commodtt~ cost tn $/1000 gallon)
WATER TRANSPORTATZON CAPITAL COST TABLES
Capttal cost per m~le of one MGD capacity system
PIPE SIZE
COST/M]LE/MGD
COST OF PUNP]NG PLANT/HGO
8" $40,000.
12" 40,000.
18" 35,000.
20" 31,000.
24" 21,000.
30" 16,000.
$10,000
SNePLE CALCULATIO#
ASSUIN:
t · 0.08 E · $0.06
N · 30yea~s H · 0
L · 6 miles Q · 15,000
0 · O.S HGD 24" pipe size
Dallas ~ater Co~dtty Cos~/lO00 ga. 1
· $0 22
TCH ·
CCAP ·
CAFc ·
IT ·
CWW -
ICAFc + ET +
12
DL (21,000)
73~000
+ 10,000 (1) · (0 5)(6)(21,000)+10,000 · 73,000
+ 0 03 (73,000)
~+ 0 03 (73,000) · 6484 28 + 21g0 · $8,647 28
1.5 + 1 $ (8-8) + 1 5 ( 0 )l (0 05) (15,000)
8 (180).J
1 5 (0 06) (15,000) · $1,350
(15,000) (0.15) (0o22) · $495 O0
TCM . 8674 28 + 1350 + 4gS - 722 86 + 1350 + 495 · $2,567 86
12
Average Cost/lO00 gal transpo~ed.l:~] 11- $01883
Assistance ~n application ot' the f'omula ts available f'~'om Dallas Water
APPENDIX "B#
WATER SYST~S FOR W~TED WATER CUSTONER~
All wholesale customer water systems shall, as mtntmum, comply vtth the
prevatlllng requirements of the "Rules and Regulations for Publlc Water Systems"
as established by the Texas Department of Health. Howver, the ~ules and
regu1&ttons do not address concerns of the Dallas Regional Water Supply System
~egardtng economic and water conservation considerations, thus they are not all
~nclustve for the purpose of considering the adequacy of potential customer
water systems
Following are considerations to be addressed In addttton to State standards
Distribution system constructed by acceptable methods and of acceptable
materials Co convey water to tnternal customers considering..
water distribution loss reduction. Engineering studies sh&11
valid&ts system average loss tn distribution of less than
potential contomtnatton during d~strtbutton.
adequacy of Pressures for fire protection and customer
convenience (noreilly minimum pressure shell be 3S p s.t
operating and 20 p.s t. residual)
Conservation Plan and Practices...
all accounts (Jncludtng municipal) metered
published contingency plans for conservation during water
sho~ages, peak demand pertods, emergencies.
]~! ~tntmum ground and elevated storage shall be constPucted or planned to
~nsure...
total storage equal to 75 ttmes average day consumption
maxtmum demand on the syscom shall not exceed 3 to I ratto
maximum day to sterege.
e;evated stersge equet to 50 percent of average datly
consumption or 55 gallons per captta, whichever ts less,
w~th a maximum of S.O lag required In each pressure zone
!V
Pemanent connections, in excess of 5 years operettng off Dallas' pressure
wtll not be made. (Tompore~ connections nomally shall not be made
fOr ps,ods tn excess of ftve years)
Atr gaps for ground storage and backflov preventers for elevated storage
shall be provided, Approved backflo~ preventers are requtred for
temporary coflnecttons.
V!
Pumptng system capable of moving water tnto storage and tnto distribution
system shell be tn Place or planned so as co tnsure compattbtltW wtth an
opttmum utilization of storage and distribution system
Treatment facilities sh&11 be available tf supplementer~ water requiring
additional treatment ts to be used.
V!ZZ. Zf system tmprevements are necemsar/ to mt mtntmum service requtroments,
evtdence of abt11~y to ftnance ~he tmprovomen~s must be provided.
II
III
IV
APPENO%X "C#
WASTEWATER SYS~SALE CUSTOFERS
All ~olesale custemer waste~ater system shall, as a mtnimu~, comply with
prevetltflg "Design Crtterta for SMrege Systems" as established by the Texas
Department of Health
Following are additional considerations to be addressed
Interconnected wastewater collection
the percent of customers residing
indicated by the following graph
and transmission system must serve
within the corporate boundaries as
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I III II{lll Jllllllll I Ill~l II1{11111 } Iii I111
I I II J {1111 Jill I II11 I I I,~'l J IJJl I Jill I IIi IJlJ
I II1' I II1{ I IIIt I IIII I I'~JJJ J Jill I IIII I III Illl
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POPUI. ATICX I
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 shell be considered the minimum standard for private
sewage facilities Primiry considerations for evaluating private
sewage facilities shall be (1) a valid percolation test, (2) adequate
absorption fteld 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 nmterials
The system in use shall not exceed the life expectancy cycle as outlined
for the Dallas Water Utilities wasteweter collection, transmission and
treat~nent system
V
VI
VII
VIII
Treatment Plant, tf operated by customr, shall be pemtttad by
£nvtronlefll~l P~otectton AgeKy and app~ved by applicable ~tata authority
and shill... .
be adequately stzed and maintained to meet pemtt requirements
be operated by qualified operators meettng mtntmum State
ce~ctficatton requtramenta.
be in satisfactory condition to serve future requirements
have an approved Master Plan for future expansion
If treatment service Is to be provtded by others, the service shall be
evaluated according to the same standards as if customer p~oposed to
operate the plant
Vhere areas are betng served by septic systems or small untt treatment
systems, a master plan for development of the collection system and
connecting customers to the collection and tranamlsston systems must be
available.
It is recognized that local, county and State requt~ementa for septtc
systems and other prtvata sewage facilities are generel rather than
spectftc The authority of Oallas to tmpose requtrementa for wastewatar
collection and dtsposal based on the spectftc situation betng evaluated is
recognized
ATTACHNENT !
TO
EXI'I~T C
A. PRXVATE SEWAGE FAC[LET[ES - SOIL PERCOLATZON TESTS
M~nimum of 2 test holes unifomly spaced over absorption fteld
site. Four holes may be required, depending on results of 2 holes
tests, per Texas Oepartment 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.
Saturation of the sot1 to establish swlling durtng wet weather Is
required for a mtntmum pertod of 24 hours prior to percolation
test
5 Percolation test requires a water depth of 12 inches The drop
water level is measured over a 30 minute pertod
6 Sandy sot1 tests require other procedures
NOTE This tn¢omation ts ~mm Texas Oepa~t~ent of Health's
"Construction Standards For Private Sewage Facilities"
8
6O
PRZYATE SEIiLAGE FACZLZTZE$
S~NGLE FANZLY RESZDENCES
ABSORPTION TRENCH AREA FOR 3 BEDROGq
AVIrR~ PE:RC(X.ATION RAT~ ( MIN/INCH)
SAND I ' 5 SilTY CLAY $1 - 45
8ANOY lOAM 6'15 ClAY LOAM 46-60
~ANDY CL~tY 16- ~
NOTES
3.
4
S
Abso~tton trench ~s not allowed for gravel
percolation race fs less than 1 mtn /1nth
mt n /1nth.
and clay soils where
or greater than 60
Area shown ts for an absorption trench tn irregular terratn whtch
ts larger than an absorption trench tn level terratn
Chart is based on Texas Department of Health's "Construction
Standards for Private Sewage Factlttfes"
Calculations for chart ere based on
Trench wtdth of 1 foot wtth roughened stdes and bottom
Spactng between parallel trenches of 5 feet
Maximum trench length of 60 feet.
Mtfltmum trench bottom areas per Texas Department of
publication referenced.
Pipe In parallel trenches must be ]eve]
He<h's
Each additional bedroom $hall increase the ama requtmment of
absorption trench by 33~ of tnat sho~n tn the table,
MINIMUM RESIDENTIAL LOT SIZE - PRIVATE SEWAGE FACILITIES . DIAGRA/4 OF
HINIML~I ABSORPTION TRENCH AREA FOR 3 BEDROOM RES)OENCE
D
ON SLOPE)
To ~etermine
Length
Width ·
the required minimum lot size multiply lot length by width
Building set-back from property line + house depth +
distance from house foundation to septic tank (minimum 5') +
septic tank installation + distance from septic tank to soil
absorption system (minimum 5') + *length or width of future
sot1 absorption system (from chart) and 10' minimum
clearance + length or width of soil absorption system (from
chert) + distance to property line (minimum 10')
Distance from property line to soil absorption system
(minimum 10') + 'length or width of soil absorption system
(from chart) + *length or width of future soil absorption
system (from chart) and ID' minimum clearance + distance
from soil absorption system to property line (minimum 10')
*Duplicate space must be allowed within the length and width of the
lot for a future absorption system to eccomodate house expansion and
replacement of a damaged absorption system
A maintenance requirement shall be in effect such that any standing
surface seepage observed 24 hours after rainfall in the immdtate area
of the absorption system shall be repaired by the owner within 30 days
after notification or it w111 be repaired for him at his expense.
EXHIBIT F
~ Metering Point
TOWN OF CORI1~.' ;~
TOV~ O~ _%
HICK?RY C, Iq~E. EK ~_~.
v
(,,5,
Town of Hickory Creek
WA~ SYSTEM IMI~OVFJ~IENI'$
LEGEND ~
~ NORTH
EXHIBIT G
In accordance with the provisions of 6 l of
parties agree as follows
l The Water Supply Date shall begin on
~u~ , 198-q
the Contract, the
/
the / day of
2 The Volume and Demand
from the Water Supply Date to
Year shall be
requested for the period of time
the beginning of the first Water
Volume ~ O
Demand /~) .{~ /
Signed this ~ T_Nday of ~
(M G )
(MGD)
L , 198 7
CITY OF DENTON, TEXAS
DIRECT01~ OF UTILITIES
TOWN OF HICKORY CREEK
HI&ORY CREE
EXHIBIT H
RBqUESTED VOLUMES ~ DEMANDS FOR WATER YEARS
WATER
YEAR
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2005
2004
2005
2006
ANNUAL WATER
VOLUME REQUESTED
AVBRAGE DAILY
USAGE
(MGD)
MAXIMUM DAILY
DEMAND REQUBSTED
(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-
tlons, water districts, or governmental entitles 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 $164 25
(2) Volume Rate $ 0 63/1,000 gals
(3) Demand Rate $262 56/1~000 gallons
12
~ANNUAL CHARGE
(4) Readiness to Serve Rate $ 0 3437/1,000 gallons
~As determined in the last month of each Water Year The
annual charge, if any, shall be ~ncluded 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
PAXMENT
Denton shall render bills on the tenth (10th) day of each
month B~lls shall be due and payable when rendered Bills are
considered delinquent if not paid by the twenty-f~fth (2Sth) day
of the month There shall be a five percent (5%) or five hundred
dollar ($500 00) charge, whichever ~s less, added to the bill ~f
not paid by the twenty-f~fth (2Sth) of the month If not pa~d by
the last day of the month, there shall be an additional ~nterest
charged on the unpaid balance, equal to the auction average rate
quoted on a bank discount basis for a twenty-s~x (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 b~lls are delinquent, or ten percent (10%), whichever ~s less
EFFECTIVE DATE
The charges stated herein shall
vices supplied after May 31, 1987
be applied to all water ser-
RESOLUTION RE~ARDIN~ THE INTERIM WHOLESALE WATER CONTRACT
BET~E~THE CITY OF DENTON AND
THE TO~NOF 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 c~tlzens 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
Hlckory 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 partlcipating regional cities or
entities, to expand its water treatment facilit~es 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 ~n the
best interest of both parties to enter ~nto a future contract to
provide for the joint planning, funding, and ownership of
additional water treatment facllitles to serve the future water
requirements of both Hickory Creek and Denton; and,
LAW OFFICES OF DON R WINDLE, P C
RESOLUTION, PAGE 1
220 San Jacmto Blvd , Suite 200, LB 8 · 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,
NOWv 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 ]olnt planning and funding of participating regional
cities or entitles, 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
]olnt planning and funding of participating regional cities or
entitles, 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
to serve the future water
Denton
additional water treatment facilities
requirements of both Hickory Creek and
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
2220SanJaclnto Blvd Sulte200, LB8 · Denton, TX 76205 · (817) 5651888 · Metro 4300622
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 executlon of
this Resolution, said period beginning not later than ... ,
1987 and continuing for thirty (30) consecutive days thereafter
8. 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
Mayor and Councllmembers
shall be approved and executed by the
of the Town of Hickory Creek, Texas
PASSED and APPROVED by the Town
H~ckory Creek, Texas on the
pursuant to agenda item
Council of the Town of
day of .... , 1987,
/~[I~ FLOWEI~S; MAyoR
TOWN OF HICKORY CREEK,
TEXAS
._ / _ > Council Member
C ___ -/~ouncil Member
~ - ~ u~c~l }~embe r
X .A/ /'
APPROVED ~ TO FORM ATTEST
AND AS TO CONTENT ~ ~ /
~bN R~ WI~D~E, "~ L~ERNE W~REN
TOWN ATTORNEY ~WN SECRETLY
LAW OFFICES OF DON R WINDLE, P C
RESOLUTION, PAGE 3
2220 San Jacmto Blvd , Suite 200 LB 8 · Denton, TX 76205 · (817) 565 1888
· Metro 430 0622