Res 134-90 7/17/1990RESOLUTION NO. El(----- 9Q
RESOLUTION APPROVING AMENDMENT TO WATER
PURCHASE CONTRACT WITH WICHITA VALLEY WATER
SUPPLY CORPORATION.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, THAT:
That certain Amendment to Water Purchase Contract, a copy of
which is attached hereto, between the City of Wichita Falls and
Wichita Valley Water Supply Corporation, is hereby approved, and
the City Manager is authorized to execute the same for the City
of Wichita Falls.
PASSED AND APPROVED this the 23rd day of July, 1990.
A Y O R
lA0-0-
0A11
ATTEST:
12677t,f-d//
City lerk
NINTH AMENDMENT TO
WATER PURCHASE CONTRACT
This NINTH AMENDMENT to water purchase contract is made and
entered into this the day of July, 1990, by and between the
City of Wichita Falls, Texas, hereinafter called "City" , and
Wichita Valley Water Supply Corporation, hereinafter called
Corporation" ,
WITNESSETH:
WHEREAS, by Resolution No. 1517, adopted on March 19, 1974,
the Board of Aldermen of the City of Wichita Falls approved a
certain Water Purchase Contract with Wichita Valley Water Supply
Corporation, which Contract has been heretofore amended eight
times; and,
WHEREAS, the parties do hereby desire to further amend such
contract.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
COVENANTS HEREIN CONTAINED, THE PARTIES HEREBY AGREE AS FOLLOWS:
A. Section 1. 0 of the Water Purchase Contract is hereby
amended to read as follows:
Section 1. 0 CITY will allow raw water to be diverted from
its water supply system in sufficient quantities to meet
CORPORATION' s needs for resale to consumers, with the proviso
that the maximum water to be diverted from the CITY' S water
2
supply system by CORPORATION from Lake Kickapoo shall not exceed
thirty million ( 30,000,000) gallons in any calendar month unless
a greater amount is approved in writing by CITY. "
B. Section 1. 1 of the Water Purchase Contract is hereby
amended to read as follows:
Section 1. 1 It is further stipulated that the diversion
point from the CITY water supply system shall be at the water
line and at the intake structure at Lake Kickapoo, Texas, at a
location mutually acceptable. "
C. Section 1. 2 is hereby deleted in its entirety.
D. Section 2. 0 of the Water Purchase Contract is hereby
amended to read as follows:
Section 2. 0 The cost of water purchased by CORPORATION
shall be based on the following rate setting principles which are
consistent with other similar water purchase agreements entered
into by the CITY.
a. Revenue requirements to be determined on utility
basis at an agreed test year' s original cost
adjusted thirty percent ( 30%) toward current cost
to cover its cost and as compensation for
ownership. The test year shall be the most recent
audited CITY fiscal year.
b. CITY to receive a rate of return on the agreed
adjusted value rate base equal to a composite of
the utility' s test year embedded cost of money
weighted on the debt portion of capital invested
3
in plant service and the utility' s latest cost of
money weighted on the remaining equity portion of
plant in service to cover its risks.
c. All existing reservoirs and associated facilities
to be included in common rate base. Wholesale
customers as class (either raw water only, raw
water transmitted, treated water only and
transmitted treated water) will pay their
proportionate share of all costs based on current
use.
d. A flat rate (volume only) shall be charged with
allocation of one hundred percent ( 100%) current
use to encourage conservation and thereby
resulting in efficient utilization of the water
system; provided, however, that the amount billed
each month shall never be less than any agreed
monthly minimum charge.
e. The risk of financing all future raw water
transmission lines and reservoirs must be borne by
the CITY Water Utility, and all costs will be
allocated to all wholesale customers on current
use basis.
Changes in the rate setting principles may be made by mutual
written agreement at any time. "
E. Section 2. 1 of the Water Purchase Contract is hereby
amended to read as follows:
4
Section 2. 1 The cost of raw water purchased by CORPORATION
shall be $0. 2354 per 1,000 gallons initially, effective May 3,
1989. The rates to CORPORATION for raw water shall be subject to
change each year as a result of a cost-of-service study using the
rate principles above. When a cost-of-service study is
conducted, CITY will provide the results and the new rates to
CORPORATION. The new rates will then be billed on the first
billing date occurring not less than sixty (60) days after
CORPORATION receives such rates. "
IN WITNESS WHEREOF, the parties hereto, acting under
authority of their respective governing bodies, have caused this
NINTH AMENDMENT to be duly executed in three counterparts, each
of which shall constitute an original.
ATTEST: CITY OF WICHITA FALLS
By:
City Clerk City Manager
ATTEST: WICHITA VALLEY WATER SUPPLY
CORPORATION
By:
Secretary President