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Res 1453 8/21/1973RESOLUTION NO. //5:? RESOLUTION APPROVING WATER PURCHASE CONTRACT WITH THE ARCHER COUNTY MUNICIPAL UTILITY DISTRICT NO. 1. WHEREAS, heretofore the City of Wichita Falls entered into a water purchase contract dated January 19, 1971 with the Bowman Water Supply Corporation, as authorized by Reso- lution No. 1145; and, WHEREAS, on February 20, 1973 the Board of Aldermen of the City of Wichita Falls adopted Resolution No. 1391, which authorized and approved the assignment of such water purchase contract by Bowman Water Supply Corporation to Archer County Municipal Utility District No. 1; and, WHEREAS, the above described water purchase contract dated January 19, 1971 is now void by its terms, as Section 3. 0 of such contract provided that, unless water is taken within two years from date thereof, such contract shall be void; no water was taken within such two year period; and, WHEREAS, the City of Wichita Falls and the Archer County Municipal Utility District No. 1 desire to enter into a new water purchase contract. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, THAT: That certain water purchase contract, a copy of which is attached hereto, between the City of Wichita Falls and Archer County Municipal Utility District No. 1, is hereby approved, and the City Managerer is authorized to execute the same for the City of Wichita Falls. PASSED AND APPROVED THIS THE 21st DAY OF AUGUST, 1973. M A Y O R/- ATTEST: L. 21,e7 City Clerk WATER PURCHASE CONTRACT THIS CONTRACT for the sale and purchase of water is entered into as of the day of 1973, between the City of Wichita Falls, Texas, hereinafter referred to as the "City" , and the Archer County Municipal Utility District No. 1, hereinafter referred to as the "District" . 1 W I T N E S S E T H : WHEREAS, the Archer County Municipal Utility District No. 1, is a Water and Sewer Utility District, organized and established under the provis- ions of the laws of the State of Texas. The District is organized for the construction and operation of a water supply distribution system serving water users within the area described in plans now on file in the office of the District and to accomplish this purpose, the District will require a supply of treated water; and, WHEREAS, the City owns several water reservoirs with capacities capable of serving the present customers of the City system and the estimated number of water users to be served by the said District as shown in the plans of the system now on file in the office of the District; ani, WHEREAS, by Resolution No. enacted on the day of 1973, by the City, (Copy of Exhibit A" attached hereto) , which authorized the City of Wichita Falls to sell treated water to the Archer County Municipal Utility District No.1, WHEREAS, the District 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 and the District; and, r7 4 NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and District mutually agree to the following, to-wit: Section 1.0: City shall deliver water ("WATER") to delivery point ("DELIVERY POINT") for sale to the District in sufficient quantities to meet the District's needs and the District shall 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 fatalities 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 a 12 inch main on Lake Road near Texas State Hospital or at another satisfactory delivery point with approval of the City. Section 1.3: The District shall have the responsibility to transport the Water from the Delivery Point to its consumers, including imparting additional pressure to adequately serve District's consumers. District shall provide at its own expense necessary transmission and storage from and at the Delivery Point to prevent abnormal demands by the District, 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 District, District 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: District shall furnish, install, operate and maintain at its own expense at the Delivery Point, the necessary 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 District. Type and location 'of meter shall be agreed to by City and District prior to delivery of Water. The District 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 per cent (2%) above or below the test result of the rated capacity of the meter shall be deemed to be accurate. The previous readings 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 pumped in the corresponding period immediately prior to the failure, based on existing records unless City and District shall Free upon a different amount. Section 1.5: All services on District's system shall be separately metered. Section 1.6: Thirty (30) days prior to the estimated date of completion of construction of District's water supply distribution system, District will notify City in writing the date for the initial delivery of water. Section 1•_i: When ?_'eallesGed by District al_ t,er the metering equipment has been installed, City will make available to the contractor at the point of delivnry, water sufficient for testing, flushing and trench filling the system of District during construction, for which water District 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 District shall be adequate to serve as many as 200 families per day in accordance with Section 1.3 of this Contract unless a greater amount is approved by City. Section 2.0: The cost of water purchased by District shall be based in accordance with the following schedule of rates: The first 66,800 C.F. at 35 cents per 100 C.F. All water over 66,800 C.F. shall be paid for at 30 cents per 100 C.F. Minimum rate will be $200.00 per month. The rates are subject to modification at the end of every five (5) year period. Any increase or decrease in the rates shall be based on a demonstrable increase or decrease in the cost of performance of the Contract. Section 2.1: The City will read the District meter on the first day of each month during the term of this Contract. District and City shall have free access to read meters daily, if they so desire. The City will provide District no later than the 10th day of each month, with an itemized statement of the amount of water metered to District during the preceding month. District 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 to the initial metering of any water to the District. 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 the District. City may cancel this contract at any time during the life of the contract in the event District fails to make any payment due hereunder within sixty (60) days after same becomes due; or, it the District breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) days after City gives the District written notice thereof. Section 4.0: The District shall not be required to furnish water to any resident of City. If the City extends its city limits to include any consumer of water from the District, the District 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 the District water system, or tying into the City's system. Provided, however, it is understood and agreed the foregoing section is subject to the restrictions of 7 U.S.C. 1926b, as amended. Section 5.0: The District 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 processing or manufacturing concern which uses such water in substantial quantities or for other municipalities and/or residential and/or commercial subdivision . Such permission will not be. s given to serve a subdivision unless the subdivision complies with the Subdivision Regulations, Building Code, Electrical Code, Plumbing Code and any other ordinances or regulations which applies in the City of Wichita Falls. The District shall not sell any water to any private party for resale by such private parties to third parties. The District shall be allowed to make single connections to the District system with notification to the City of such action, provided the maximum daily allowable as set out in the contract is not exceeded. The District shall not sell water to any consumer outside of the legal boundaries of Archer County Municipal Utility District No. 1. Section 5.1: It is distinctly understood between parties hereto that City owes its primary obligation and duty to the citizens of Wichita Falls; f.n thv? m/4,!Y: nf 37 the r 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 District's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the citizens of 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 District 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 Distribution Systems of the City and District, District shall operate and maintain its portion of the Water Supply Distribution system in accordance with the standards of the Texas Department of Health and in compliance with Article 4477-1 Vernon's Annotated Civil Statutes and in compliance with those provisions of Section 12 of the Plumbing Code of the City of Wichita Falls entitled Water Supply and Distribution, which are in effect as of the date of this Contract. Section 6.1: City shall have the authority and responsibility of inspection to determine that no cross connections or condition of back- flow or back-siphonage exist on that portion of the system receiving water under pressure from the Wichita Falls water mains. The City shall have the authority 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 District 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 District in writing of such non-compliance and affording the District a reasonable opportunity to correct such non-compliance. Provided, further, in no event shall the City suspend delivery of eater to any por',ion of the District's system not necessary in isolating the location of such non-compliance. Section 6.2: City's Director of Utilities shall have the suthority and responsibility to approve the plans and specifications of the District's original system 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 District. Section 8.0: In the event of any occurrence rendering the District incapable of performing under this Contract, any successor of the r District, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the District hereunder. 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. ATTEST: CITY OF WICHITA FALLS, TEXAS By: Wilma J. Thomas, CITY CLERK Gerald Fox, CITY MANAGER ATTEST: ARCHER COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 By: H. P. McDonnell, Secretary Paul R. Sorenson, President 1 WATER PURCHASE CONTRACT 1 THIS CONTRACT for the sale and purchase of water is entered 1 into as of the day of 1973, between the City of Wichita Falls, Texas, hereinafter referred to as the "City" , 1 and the Archer County Municipal Utility District No. 1, hereinafter referred to as the "District" . W I T N E S S E T H : WHEREAS, the Archer County Municipal Utility District No. 1, is a Water and Sewer Utility District, organized and established under the provis- ions of the laws of the State of Texas. The District is organized for the construction and operation of a water supply distribution system serving water users within the area described in plans now on file in the office of the District and to accomplish thisp purpose, the District will require a supply of treated water; and, WHEREAS, the City owns several water reservoirs with capacities capable of serving the present customers of the City system and the estimated number of water users to be served by the said District as shown in the plans of the system now on file '.n the e ftoe of the :Di; `r et.; and., WHEREAS, by Resolution No. enacted on the C day of by the City,, y, py of Exhibit A" attached hereto) , which authorized the City of Wichita Falls to sell treated water to the Archer County Municipal Utility District No.1, WHEREAS, the District 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 and the District; and, NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and District mutually agree to the following, to-wit: Section 1.0: City shall deliver water ("WATER") to delivery point ("DELIVERY POINT") for sale to the District in sufficient quantities to meet the District's needs and the District shall 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 facalities 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 a 12 inch main on Lake Road near Texas State Hospital or at another satisfactory delivery point with approval of the City. Section 1.3: The District shall have the responsibility to transport the Water from the Delivery Point to its consumers, including imparting additional pressure to adequately serve District's consumers. District shall provide at its own expense necessary transmission and storage from and at the Delivery Point to prevent abnormal demands by the District, 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 District, District 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: District shall furnish, install, operate and maintain at its own expense at the Delivery Point, the necessary metering equipment, including a meter house or pit, and required devices of standard t yp e for properly measuring and recording the quantity of Water taken by the District. Type and location 'of meter shall be agreed to by City and District prior to delivery of Water. The District 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 per cent (z7 ) above or below the test result of the rated capacity of the meter shall be deemed to be accurate. The previous readings 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 pumped in the corresponding period immediately prior to the failure, based on existing records unless City and District shall a ree upon a different amount. Section 1.5: All services on District's system shall be separately metered. Section 1.6: Thirty (30) days prior to the estimated date of completion of construction of District's water supply distribution system, District will notify City in writing the date for the initial delivery of water. Section_l,?: When r' qu'.2 t,ed by District after the metering equipment has been installed, City will make available to the contractor at the point of dellvory, water sufficient for testing, flushing and trench filling the system of District during construction, for which water District 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 District shall be adequate to serve as many as 200 families per day in accordance with Section 1.3 of this Contract unless a greater amount is approved by City. Section 2.0: The cost of water purchased by District shall be based in accordance with the following schedule of rates: The first 66,800 C.F. at 35 cents per 100 C.F. All water over 66,800 C.F. shall be paid for at 30 cents per 100 C.F. Minimum rate will be $200.00 per month. The rates are subject to modification at the end of every five (5) A year period. Any increase or decrease in the rates shall be based on a demonstrable increase or decrease in the cost of performance of the Contract. Section 2.1: The City will read the District meter on the first day of each month during the term of this Contract. District and City shall have free access to read meters daily, if they so desire. The City will provide District no later than the 10th day of each month, with an itemized statement of the amount of water metered to District.during the preceding month. District 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 to the initial metering of any water to the District. 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 the District. City may cancel this contract at any time during the life of the contract in the event District fai s to make any payment due hereunder within sixty (60) _ay after same becomes due; ate, if the Listrict breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) days after City gives the District written notice thereof. Section 4.0: The District shall not be required to furnish water to any resident of City. If the City extends its city limits to include any consumer of water from the District, the District 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 the District water system, or tying into the City's system. Provided, however, it is understood and agreed the foregoing section is subject to the restrictions of 7 U.S.C. 1926b, as amended. Section 5.0: The District 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 processing or manufacturing concern which uses such water in substantial quantities or for other municipalities and/or residential and/or commercial subdivision . Such permission will not be given to serve a subdivision unless the subdivision complies with the II Subdivision Regulations, Building Code, Electrical Code, Plumbing Code and any other ordinances or regulations which applies in the City of Wichita Falls. The District shall not sell any water to any private party for resale by such private parties to third parties. The District shall be allowed to make single connections to the District system with notification to the City of such action, provided the maximum daily allowable as set out in the contract is not exceeded. The District shall not sell water to any consumer outside of the legal boundaries of Archer County Municipal Utility District No. 1. Section 5.1: It is distinctly understood between parties hereto that City owes its primary obligation and duty to the citizens of Wichita Falls: an the event of ex.Lond_od. nhoiL• ;e w9,ter, or k;he 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 District's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the citizens of 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 District 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 Distribution Systems of the City and District, District shall operate and maintain its portion of the Water Supply Distribution system in accordance with the standards of the Texas Department of Health and in compliance with Article 4477-1 Vernon's Annotated Civil Statutes and in compliance with those provisions of Section 12 of the Plumbing Code of the City of Wichita Falls entitled Water Supply and Distribution, which are in effect as of the date of this Contract. Section 6.1: City shall have the authority and responsibility of inspection to determine that no cross connections or condition of back- flow or back-siphonage exist on that portion of the system receiving water under pressure from the Wichita Falls water mains. The City shall have the authority 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 District 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 District in writing of such non-compliance and affording the District a reasonable opportunity to correct such non-compliance. Provided, further, in no event shall the City suspend delivery of Kater to any ,orti an of the District's system not necessary in isolating the location of such non-compliance. Section 6.2: City's Director of Utilities shall have the suthority and responsibility to approve the plans and specifications of the District's original system 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 District. Section 8.0: In the event of any occurrence rendering the District incapable of performing under this Contract, any successor of the District, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the District hereunder. 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. ATTEST: CITY OF WICHITA FALLS, TEXAS By: Wilma J. Thomas, CITY CLERK Gerald Fox, CITY MANAGER ATTEST: ARCHER COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 By: H. P. McDonnell, Secretary Paul R. Sorenson, President