Res 2346 6/5/1979RESOLUTION NO. t)L7
RESOLUTION APPROVING WATER PURCHASE CONTRACT
WITH WINDTHORST WATER SUPPLY CORPORATION.
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 Windthorst 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 5th day of June, 1979.
M A Y O R
6'4,v4.2-
ATTEST:
1/J, /
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L, jC.G:I
City Clerk
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WATER PURCHASE CONTRACT
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THIS CONTRACT for the sale and purchase of water is entered into as of the
day of 1979, between the City of Wichita Falls, Texas here-
inafter referred to as the "City",and Windthorst Water Supply Corporation, herein-
a
after referred to as "Windthorst".
WITNESSETH :
WHEREAS, Windthorst is a water supply corporation organized and established
under provisions of the laws of the State of Texas. Windthast is organized for the
construction and operation of a water supply and distribution system serving water
users within the Windthorst area and to accomplish this purpose, Windthorst will re-
quire a supply of raw water; and,
Y
WHEREAS, the City owns Lake Kickapoo and Lake Arrowhead, water reservoirs
with capacity capable of serving the present customers of the City system and the esti-
mated number of water users to be served by Windthorst; and,
WHEREAS, by Resolution No. enacted on the day of
1979, by City, (Attached hereto as Exhibit "A"), which authorized the City to sell raw
water to Windthorst; and,
WHEREAS, Windthorst will operate a water treatment and distribution system, and
serve its customers; and,
WHEREAS, by resolution of the Board of Directors of the Windthorst Water Sup-
ply Corporation (Attached hereto as Exhibit "B"), enacted on the day of
1979, such Board of Directors authorized purchase of raw water by
Windthorst 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 Windthorst mutually agree to the following; td-wit:
Section 1. 0: City will allow water (RAW WATER) to be diverted from Lake
Arrowhead at the diversion point shown on the plans and approved by the City in suf-
ficient quantities to meet Windthorst's needs for the resale to consumers, subject only
to terms and provisions of this contract.
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Section 1.1: Diversion point shall be at the water line and at an intake struc-
ture at Lake Arrowhead, Texas, at a location mutually acceptable to the City and
Windthorst. It is also the intent of Windthorst to construct a transmission line from
Lake Arrowhead to Windthorst.
Section 1.2: Maximum amount of water to be diverted by Windthorst from
Lake Arrowhead shall not exceed two hundred thousand (2Q0, 000) gallons per day un-
less a greater amount is approved in writing by the City.
Section 1.3: Windthorst shall furnish, install, operate and maintain at its
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own expense at the diversion point, the necessary teetering 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 Arrowhead. Type and lo-
cation of meter shall be agreed to by City and Windthorst prior to diversion of water.
Windthorst shall calibrate such metering equipment whenever requested by City but
not more frequently than once every twelve (12) months. A meter registering not
more than two percent (2%) above or below the test result of the rated capacity of
the meter shall be deemed accurate. The previous reading of any meter disclosed by
test to be inaccurate shall be corrected for the twelve (12) months previous to such
test 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 in the corres-
ponding period immediately prior to the failure, based on existing records unless City
and Windthorst agree on a different amount.
Section 1.4: Thirty (30) days prior to estimated date of completion of con-
struction of Windthorst transmission system, Windthorst will notify City in writing
the date of initial diversion of water.
Section 1.5: When requested by Windthorst after metering equipment has been
installed, the City will agree to diversion of sufficient water for testing, flushing, and
trench filling the system during construction for which Windthorst will pay City at the
rate set out of fourteen cents ($0.14) per one thousand (1, 000) gallons. However,
minimum rate will not apply to this water used for testing the system.
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Section 1.G: Location and Easements - The location of the proposed pump
station and intake structure shall be approved by the City, and the pump station site
acquired or obtained by long term lease at an agreed upon price from the City before
detailed plans and specifications are made. Easements for the pipe lines across City
property shall be acquired from the City before any pipe lines are constructed.
Section 1. 7: Approval - Pump station and pipe lines must be approved by
Texas State Health Department before any construction.
Section 1. 8: Plans and Specifications Approval - Plans and Specifications
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shall be approved by the City before advertising for construction of any facilities.
Section 2. 0: The cost of water purchased by Windthorst shall be based on
the following schedule:
0.14 per 1, 000 gallons
Minimum Monthly Bill $300. 00
This water rate is subject to modification annually based upon a rate making system
and formula to be developed by Wichita Falls and submitted to Windthorst by January
1, 1980. Any change in water rates will become effective with water bills rendered
after April 30 of each year. The schedule of rates beginning with all water bills ren-
dered after this system is placed into operation could also include a "reservoir capac-
ity charge" designed to cover the cost of reservoir space required to meet Windthorst's
future needs but for water not actually being taken in the maximum daily amount as
contained in Section 1.2 of this contract.
Section 2.1: The City will read the Windthorst meter on the first day of each
month during the term of this Contract. Windthorst and City shall have free access
to read meters daily if they so desire. The City will provide Windthorst no later than
the 10th day of each month, with an itemized statement of the amount of water metered
to Windthorst during the preceding month. Windthorst shall pay to the City the amount
of itemized statement for any month no later than 20th day for the preceeding month's
usage.
Section 3. 0: This Contract shall extend for a term of forty (40) years from the
date of the initial metering of any water to Windthorst. Unless water is taken within
two (2) years from date hereof, this Contract shall be void. At the expiration of the
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term of this Contract, same may be renewed or extended for such term or terms, as
may be agreed upon by the City and Windthorst. City may cancel this Contract at any
time during the life of the Contract in the event Windthorst fails to make any payment
due hereunder within sixty (60) days after same becomes due; or, if Windthorst breaches
any covenant herein other than payment of the monthly statement, and such breach con-
tinues for sixty (60) days after City gives Windthorst written notice thereof.
Section 4. 0: Windthorst shall not be required to furnish water to any resident
of City. If City extends its city limits to include any consumer of water from Wind-
thorst, Windthorst will continue to provide water to such consumer. When City is
able to extend its own water distribution system which could provide such consumer
with City's water, such consumer shall be allowed the choice of remaining on Wind-
thorst's system or tying into City's system. Provided however, it is understood and
agreed the foregoing Section is subject to the restriction of 7U.S.C. Section 1926 (b)
as amended.
Section 5. 0: Windthorst shall permit the water to be used only for normal
residential, commercial, industrial and municipal purposes. Unless written per-
mission is obtained from City, water shall not be used for agricultural irrigation,
cattle feed lots, or any processing or manufacturing concern which uses such water
for other than normal domestic quantities. Windthorst shall permit water to be used
only within its service area as shown on Exhibit "C" Attached. Windthorst shall not
sell any water to any private party for resale by such private parties to third parties.
Section 5.1: 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 ex-
tended shortage of water, or the supply of water available to City is otherwise dimin-
ished over an extended period of time so that it becomes necessary to ration the water
sold to citizens of Wichita Falls, the supply of water to Windthorst consumers shall be
reduced or diminished in the same ratio or proportion as the supply to the citizens Hof
Wichita Falls is reduced or diminished.
Section 6. 0: This Contract is subject to such rules, regulations, or laws,
as may be applicable to similar agreements in the State of Texas; the City and
Windthorst will collaborate in obtaining such permits, certificates, or the like, as
may be required to comply herewith.
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Section 7. 0: Any amendment to this Contract shall be in writing and executed
by both City and Windthorst.
Section 8. 0: This contract shall not be assignable without the approval of City,
except Windthorst may assign and/or mortgage lease to the United States of America,
acting through the Farmers Home Administration. However, in the event of any oc-
currence rendering Windthorst incapable of performing under this lease, any successor
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of Windthorst, whether the result of legal process, assignment or otherwise, shall sue-
ceed to the rights of Windthorst hereunder.
Section 8.1: The construction of the water supply distribution system by the
Purchaser is being financed by a loan made or insured by, and/or a grant from, the
United States of America, acting through the Farmers Home Administration of the
United States Department of Agriculture, and the provisions hereon pertaining to the
undertakings of the Purchaser are conditioned upon the approval, in writing, of the
State Director of the Farmers Home Administration.
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
BY:
CITY MANAGER
ATTEST:
j.
CITY CLERK
WINDTHORST WATER SUPPLY CORP.
BY:
PRESIDENT
ATTEST:
SECRETARY
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