Res 2194 8/1/1978RESOLUTION NO. 2194
RESOLUTION APPROVING CONTRACT FOR SALE OF RAW
WATER FROM LAKE KICKAPOO TO THE CITY OF OLNEY,
TEXAS.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
That certain water purchase contract, a copy of which is
attached hereto, between the City of Wichita Falls and the City
of Olney, Texas, whereby the City of Wichita Falls agrees to sell
to the City of Olney raw water from Lake Kickapoo, is hereby
approved, and the City Manager is authorized to execute the same
for the City of Wichita Falls.
PASSED AND APPROVED this the 1st day of August, 1978.
M A Y O R
ATTEST:
ity Clerk
airy
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WATER PU ?CRASE CONTRACT
THIS CONTRACT for the sale and purchase of water is
entered into as of the 1st day of 'Auf,i si: 1978 , between
the City of Wichita Falls , Texas hereinafter referred to as the
City" , and City of Olney, Texas , hereinafter referred to as
Olney" .
WITNESSTH :
WHEREAS , Olney is organized and established under provi-
sions of the laws of the State of Texas . One of the duties of
Olney is the construction and operation of a water supply and
distribution • system serving water users within the corporate
limits of Olney and to accomplish this purpose , Olney will
require a supply of raw water; and,
WHEREAS , the City owns Lake Kickapoo, a water reservoir
with capacity capable of serving the present customers of the
City system and the estimated number of water users to be served
by Olney; and,
WHEREAS , by Resolution No. 21 t;q. , enacted on the 1st
day of August 1978 , by City, (Attached hereto as Exhibit
A" ) , which authorized the City to sell raw water to Olney; and,
WHEREAS , Olney will operate a water treatment and distribu-
tion system, and serve its customers; and,
WHEREAS , by resolution of the City Council of Olney
Attached hereto as Exhibit "B" ) , enacted on the (.t4 day of
197P , such City Council of O1 lthorized pur-
chase of raw water by Olney from the City in accordance with the
terms set forth in the said resolution and further authorized
execution of this contract.
NOW THEREFORE , KNOW ALL MEN BY THESE PRESENTS , THAT for
value received, the City and Olney mutually gree to the follow-
ing; to-wit:
Section 1. 0 : City will allow water (RAW WATER) to be
diverted from Lake Kickapoo at the diversion point approved by
the City, in sufficient quantities to meet Olney ' s needs for .
resale to consumers ,. subject 'only to terms and provisions of
this contract.
Section 1. 1 : Diversion point shall be at Lake Kickapoo,
Texas , at a location mutually acceptable to the City and Olney.
It is also the intent of Olney to construct an eight (3) inch
above ground transmission line from Lake Kickapoo to Olney.
Section 1. 2 : Maximum amount of water to be diverted by
Olney from Lake Kickapoo shall not exceed one million
1, 000, 000) gallons per day unless a greater amount is approved
in writing by the City. In the event of an extended emergency,
City at any time will consider a reques by Olney for an-
increase in the maximum amount of water to be furnished. For
short emergency periods , Olney can draw extra water without
having to make formal request, but only notification by telephone.
Section 1 . 3 : Olney shall furnish, install, operate and
maintain at its own expense at the diversion point , the neces-
sary metering equipment, including a meter house or pit, and
required devices of standard type for properly measuring and
recording the quantity of water diverted from Lake Kickapoo.
Type and location of meter shall be agreed to by City and Olney
prior to diversion of water. Olney shall calibrate such meter-
ing equipment whenever requested by City but not more frequently
than once every twelve months . A meter registering not more
than two percent (2%) above or below the test result of the
rated capacity or the meter shall be deem Karate. The pre-
vious reading of any meter disclosed by test +_e be inaccurate
shall be corrected for the twelve months previous to such tests
in accordance with the percentage of inaccuracy found by such
tests and existing records. If any meter fails to register for
any period, the amount of water furnished during such period
shall be deemed to be the amount of water diverted at the corres-
ponding period immediately prior to the failure , based on exist-
ing records , unless City and Olney shall agree on a different
amount.
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Section 1 . 4 : Five days prior to estimated date of comple-
tion of construction of Olney water transmission line, Olney
will notify City in writing the date of initial diversion of
water.
Section 1. 5 : When requested by Olney after metering equip-
ment has been installed, City will agree to diversion of suffi-
cient water for testing, flushing and trench filling the system
during construction for which Olney will pay City at the rate
of seventeen and one-half cents ($0 . 175) per one thousand gal-
lons, or at the• permanent rate if it has been established at
the time of withdrawal.
Section 1 . 6 : Locations and Easements -- The location of
the proposed intake and pumping shall be approved by City.
Easements for the pipelines across City property shall be
acquired from City before any pipelines are co ,:structed.
Section 1 . 7 : Approval -- Pump station and pipelines must
be approved by Texas State Health Department before any construc-
tion.
Section 2 . 0 : Olney shall pay to City fc,: water purchased
hereunder at the rate of seventeen and one-half cents ($0. 175)
per one thousand gallons. This water rate is subject to modifi-
cation prior to January 1, 1979 based upon a contract water rate
study now under way. Thereafter, the price shall escalate ten
percent (10%) annually beginning January 1, 1900.
Section 2 . 1 - The City will read the H.H. aet.er on the
first day of each month during the term of this contract. Olney
and City shall have free access to read meters daily if they so
desire. City will provide Olney, no• later than the 10th day of
each month, With an itemized statement of the amount of water
metered to Olney during the preceding month. Olney shall pay to
City the amount of itemized statement for any month no later
than the 20th day of the month for the preceding month' s usage.
Section 3 . 0 : This contract shall have a term 'of three
years from the date of the initial metering of water to Olney,
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with two options to extend the term hereof , each of the two
extensions to be for a, _period of two years . Unless water is
taken within two years from the date hereof, this contract shall •
be void. At the end of the first year of the three year term,
Olney shall give City a detailed written report of a study of
their water supply problem; at the end of the second year of
the three year term, Olney • shall give City a written report on
the progress which they are making toward a solution.
Section 3 . 1 : To exercise the first option for two year
extension, prior to the end of the three year term Olney must
furnish to City documentary evidence that they have commenced
work and made significant progress toward a permanent solution
of the problem. This may consist of the awarding of a construc-
tion contract, the commencement of construction work under such
a contract, the formation of a water district for the purpose of
developing a water supply source, the filing and diligent prose-
cution of an application with a state. agency for a permit to
develop a water supply source, or some other actions which are
satisfactory to the then Board of Aldermen of City, demonstrating
that Olney is taking positive steps toward a permanent solution
to their water supply problem.
Section 3 . 2 : If the first option is exercised, at the end
of the first year of the two year extension, Olney shall furnish
City another written report on the progress being made toward a
solution.
Section 3 . 3 : To exercise the second op ion for a two• year
extension of the term of this contract, prior to the end of the
first two year extension Olney must furnish to City documentary
evidence that they have made substantial progress toward the
accomplishment of the chosen solution to their water supply pro-
blem, such as having completed work on a construction contract
on a new water source of supply, or having completed a substantial
part of the work on such a contract.
Section 3 . 4 : Olney shall have the right to have an timer-
gency extension of this contract beyond the total seven years
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c
thereof , in the event that a construction project has not been
finally completed, a new lake has not filled with water , or some
other contingency exists in spite of the diligent efforts of
Olney to have obtained a water source of supply prior to the end
of such seven year period.
Section 4 . 0 : In the event Olney' s present lakes should
become eighty percent full during the term of this contract,
Olney shall cease to take water from City under this contract
until such lakes are less than fifty percent full.
Section 5. 0 : While Olney is taking water from City under
this contract, Olney shall use whateve , water conservation mea-
sures that they deem necessary and proper. The watering of
trees and shrubs will be permissible to avoid loss of same.
Section 6 . 0 : City may cancel this contract at any time
during the life of the contract in the event Olney fails to
make any payment due hereunder within sixty days after same
becomes due; or, if Olney breaches any covenant herein other
than payment of the monthly statement, and such breach continues
for sixty days after City gives Olney written notice thereof.
Section 7 . 0 : It is distinctly understood between parties
hereto that City owes its primary obligation and duty to the
citizens of Wichita Falls; in the event of an .extended shortage
of water, or the supply of water available to City is otherwise
diminished over an extended period of time so that it becomes
necessary to ration water sold the citizc_° ichita Falls ,
the supply of water to Olney ' s consumers sh ll be reduced or
diminished in the same ratio or proportion as the supply to the
citizens of Wichita Falls is reduced or diminished.
Section 8 . 0 : This contract is subject to such rules ,
regulations , or laws as may be applicable to similar agreements
in the State of Texas ; City and Olney will collaborate in obtain-
ing such permits , certificates , or the like , as may be required
to comply herewith.
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Section 9 . 0 : Any amendment to this contract shall be in
writing and executed by both City and Olney.
Section 10 . 0 : Olney agrees to aid City in its search for
new water sources by affirmative testimony before the Water
Resources Board, .or by other appropriate action.
Section 11 . 0 : Olney agrees to notify City by letter of any
significant progress towards near water sources from time to
time as events unfold, but no less often than every six months.
Section 12 . 0 : In the event that any governmental agency
attempts to change any of the provision contained herein, then
either party hereto shall have the right to terminate the con-
tract.
IN WITNESS WHEREOF, the parties hereto , acting under
authority of their respective governing bodies , have caused this
contract to be duly executed in three counterparts, each of
which shall constitute an original.
City of Wichita Falls, Texas
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4440
By•r
f
k City Manage.
ATTEST:
Cit Clerk
City of 0 a::
By: Ad r. .
Mayo / e
ATTEST:
ZA1&4)
City Secretary
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