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Res 1931 3/1/1977r f V RESOLUTION NO. 1931 RESOLUTION APPROVING WATER PURCHASE CONTRACT WITH DEAN DALE 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 the Dean Dale 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 1st day of March , 1977. MAYOYG ATTEST: City Clerk WATER PURCHASE CONTRACT THIS CONTRACT for the sale and purchase of water is entered into as of the 2nd day of March, 1977, between the City of Wichita Falls, Texas, hereinafter referred to as the City" , and the Dean Dale Water Supply Corporation, herein- after referred to as the "Corporation" . WITNESSETH: WHEREAS , the Dean Dale Water Supply Corporation is a corporation organized and established under the provisions of the law of the State of Texas. The Corporation is organized for the construction and operation of a water supply distri- bution system serving water users within the area described in plans now on file in the office of the Corporation and to accomplish this purpose, the Corporation will require a supply of treated water; and, WHEREAS, the City owns several water reservoirs with capa- cities capable of serving the present customers of the City system and the estimated number of water users to be served by the said Corporation as shown in the plans of the system now on file in the office of the Corporation; and, WHEREAS , by Resolution No. 1931, enacted on the 1st day of March, 1977, by the City, (Copy of Exhibit "A" attached hereto) , which authorized the City of Wichita Falls to sell treated water to the Dean Dale Water Supply Corporation; and, WHEREAS , the Corporation will operate a water system, and serve the water users within the area described in the plans now on file in the office of the Director of Utilities , the Corporation and Public Utilities Commission of Texas. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and Corporation mutually agree to the following , to-wit: Section 1. 0: City shall deliver water ("WATER" ) to delivery point ("DELIVERY POINT" ) for sale to Corporation in sufficient quantities to meet Corporation' s needs and Corporation shall r be permitted to take same for resale to consumers, subject only to the terms and provisions of this Contract. Section 1. 1: Water delivered shall be of the same quality the City furnishes to residents of City and at a pressure the City attempts to maintain in the operation of its transmission and distribution facilities and at the points of delivery to its own users. Emergency failures shall excuse the City from this provision for a reasonable period of time to restore service. Section 1. 2 : Delivery point shall be located on an 8 inch main located at the intersection of Harding and Cottonwood Streets or at another satisfactory delivery point with approval of the City. Section 1. 3 : Corporation shall have the responsibility to transport the Water from the Delivery Point to its consu- mers , including imparting additional pressure to adequately serve Corporations' s consumers. Corporation shall provide at its own expense necessary transmission and storage from and at the Delivery Point to prevent abnormal demands by the Cor- poration, which demands would reduce the residual static pressure below 20 PSI in the City' s mains at the Delivery Point. If a mechanical facility is required to abate the abnormal demands of the Corporation, Corporation will install a pressure regulating valve and will not allow the residual pressure to be lowered to less than 20 PSI without permission of City. Section 1. 4 : Corporation shall furnish, install, operate and maintain at its own expense at the Delivery 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 taken by the Corporation. Type and location of meter shall be agreed to by City and Corporation prior to delivery of Water. The Corporation 2 - shall calibrate such metering equipment whenever requested by the 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 to be accurate. The previous read- I ings 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 peri- od shall be deemed to be the amount of water pumped in the corresponding period immediately prior to the failure, based on existing records , unless City and Corporation shall agree upon a different amount. Section 1. 5: All services on Corporation' s system shall be separately metered. Section 1. 6 : Thirty (30) days prior to the estimated date of completion of construction of Corporation' s water supply distribution system, Corporation will notify City in writing the date for the initial delivery of water. Section 1. 7 : When requested by Corporation after the metering equipment has been installed, City will make available to the contractor at the point of delivery, water sufficient for testing, flushing and trench filling the system of Corporation during construction, for which water Corporation will pay City at the rate set out hereafter; however, the minimum rate will not apply to this water used for testing the system. Section 1. 8 : Maximum amount of water to be furnished by City to Corporation shall be 150, 000 gallons per day in accordance with Section 1. 3 of this Contract unless a greater amount is approved by City. Control valves shall be installed to regulate for this maximum daily flow. 3 Section 2. 0: The cost of water purchased by Corporation shall be based in accordance with the following schedule of rates: The first 66 ,800 C.F. at 40 cents per 100 C.F. All water over 66,800 C.F. shall be paid for at 35 cents per 100 C.F. Minimum rate will be $200. 00 per month. This water rate is subject to modification prior to July 1, 1977 based upon the water cost analysis model as developed by the City of Wichita Falls. Thereafter, this water rate is subject to modification every two years, or when the domestic water rate for Wichita Falls customers is changed, whichever occurs sooner, based upon twice the percentage increase to the domestic water rate of the city. Section 2 . 1: The City will read the Corporation meter on the first day of each month during the term of this Con- tract. Corporation and City shall have free access to read meters daily, if they so desire. The City will provide Corporation no later than the 10th day of each month, with an itemized statement of the amount of water metered to Cor- poration during the preceding month. Corporation shall pay to the City the amount of the itemized statement for any month not later than the 15th day of the succeeding month. 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 the Corporation. Unless water is taken within two 2) years from date hereof , this Contract shall be void. At the expiration of the term of this Contract, same may be renewed or extended for such term or terms, as may be agreed upon by the City and Corporation. City may cancel this Contract at any time during the life of the Contract in the event Corporation fails to make any payment due hereunder within sixty (60) days after same becomes due; or, if Corporation breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) days after City gives Corporation written notice thereof . 4 - Section 4 . 0 : Corporation shall not be required to fur- nish water to any resident of City. If City extends its city limits to include any consumer of water from Corporation, Corporation 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 con- sumer shall be allowed the choice of remaining on Corporation 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: Corporation shall permit the water to be used only for normal residential and commercial purposes. Unless written permission is obtained from City, water shall not be used for extensive agricultural irrigation, or by any pro- cessing or manufacturing concern which uses water in substan- tial quantities , or for other municipalities and/or residential and/or commercial subdivisions. Corporation may sell water directly to customers located within the city limits of the Town of Jolly and the proposed Town of Dean, provided such customers are located within the service area of corporation. Permission to serve such subdivisions may be given by the City if the subdivision complies with the City' s subdivision regulations, building code, electrical code and plumbing code; if such subdivision is located outside City' s extra- territorial jurisdiction, compliance with such regulations and codes may be waived if the subdivider furnishes the City with a copy of any subdivision plat which is filed with the County Clerk. No extensions shall be made into the crash and/or noise zones of Sheppard Air Force Base as defined by Air Installation Compatible Use Zone Study prepared by Sheppard Air Force Base , June 7 , 1976 without specific approval of the City. The Corporation shall not sell any water to private parties for resale by such private parties to third parties. i Corporation shall be allowed to make single connections to the Corporation' s system with notification to the City of such action, provided the maximum daily allowable as set out in the contract is not exceeded. The Corporation shall not sell water to any consumer outside their service area as on file with the City and/or the Public Utility Commission of Texas. Approval by the City shall be required for any service area change, which approval shall not be unreasonably withheld. 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 extended short- age 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 the water sold to citizens of Wichita Falls, the supply of water to Corporation' s consumers shall be reduced or diminished in the same ratio or propor- tion as the supply to the citizens of Wichita Falls is re- duced or diminished. Section 6. 0: This Contract is subject to such rules, regulations , or laws, as may be applicable to similar agree- ments in the State of Texas. The City and Corporation will collaborate in obtaining such permits, certificates, or the like, as may be required to comply herewith. Where a direct physical connection exists between the Water Supply Distri- l bution Systems of the City and Corporation, Corporation shall operate and maintain its portion of the Water Supply Distribu- tion system in accordance with the standards of the Texas Department of Health Resources and in compliance with Article 4477-1, Vernon' s Annotated Civil Statutes and in compliance with those provisions of Chapter XII of the Plumbing Code of the City of Wichita Falls entitled Water Supply and Distribu- tion, which are in effect as of the date of this contract. Section 6 . 1 : City shall have the authority and respons- 6 - ibility of inspection to determine that no cross connections or condition of backflow or back-siphonage exist on that por- tion of the system receiving water under pressure from the Wichita Falls water mains. The City shall have the author- ity to disconnect the Water until correction within the system is made. The City shall also have the right to suspend delivery of water in the event the Corporation fails to construct, maintain and operate their portion of the Water Distribution System in substantial compliance with such standards referred to hereinabove. Provided, however, unless substantial non- compliance constitutes a safety and/or health hazard, the City ._. shall not suspend the delivery of water without first notifying the Corporation in writing of such non-compliance and affording the Corporation a reasonable opportunity to correct such non-compliance. Provided, further, in no event shall the City suspend delivery of water to any portion of the Corporation' s system not necessary in isolating the location of such non- compliance. Section 6. 2 : City' s Director of Utilities shall have the authority and responsibility to approve the plans and speci- fication of the Corporation' s transmission line and any and all extensions for compliance with approved City standards, and stipulations in this contract. Before any extension other than single meter connections are made to the system, written permission shall be obtained from the City. Section 7. 0: Any amendment to this Contract shall be in writing and executed by both City and Corporation. Section 8. 0: This contract shall not be assignable without the approval of City, except Corporation may assign and/or mortgage this contract to the United States of America, acting through the Farmers Home Administration. However, in the event of any occurrence rendering Corporation incapable of performing under this contract any successor of Corporation, whether the result of legal process, assignment or otherwise, shall succeed to the rights of Corporation hereunder. 7 - r Section 8. 1: The construction of the water supply distri- bution system by the Corporation 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 provi- sions hereon pertaining to the undertakings of the Corporation are conditioned upon the approval, in writing, of the State Director of the Farmers Home Administration. IN WITNESS WHEREOF, the parties hereto, acting under author- ity 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: City Clerk DEAN DALE WATER SUPPLY CORPORATION BY: President ATTEST: Secretary 8 -