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Res 2320 4/3/1979 RESOLUTION NO. .01 dZ RESOLUTION APPROVING WATER PURCHASE CONTRACT WITH RED RIVER AUTHORITY OF TEXAS FOR WATER SYSTEM AT LAKE ARROWHEAD. 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 Red River Authority of Texas, for a water supply and dis- tribution system serving water users within the Lake Arrowhead area, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. PASSED AND APPROVED this the 3rd day of April, 1979. / M A Y O R ATTEST: 9-2,2 d._*: City Clerk • /et . • �i WATER PURCHASE CONTRACT • ,I • 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, 1, hereinafter referred to as the "City", and Red River Authority of Texas, herein- after referred to as "Authority". WITNESSETH : WHEREAS, Authority is organized and established under provisions of the laws of the State of Texas. One of the responsibilities of Authority can be the con- struction and operation of a water supply and distribution system serving water user within the Lake Arrowhead area and to accomplish this purpose, Authority will re- I quire a supply of raw water; and, WHEREAS, the City owns.Lake Arrowhead, a water reservoir with capacity capable of serving the present customers of the City system and the estimated num- ber of water users to be served by Authority; 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 i water to Authority; and, WHEREAS, Authority will operate a water treatment and distribution sys- tem, and serve customers on Lake Arrowhead City and State owned properties as per Exhibit "C" attached; and, WHEREAS, by resolution of the Board of Directors of Authority (Attached hereto as Exhibit "B"), enacted on the day of , 1979, such Board of Directors of Authority authorized purchase of raw water by Authority 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 Authority mutually agree to the following, to-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 sufficient quantities to meet Authority's needs for resale to consumers, subject • only to terms and provisions of this contract. it ,� i, Section 1. 1: Diversion point shall be at the water line and at an intake structure at Lake Arrowhead, Texas, at a location mutually acceptable to the City and Authority. Section 1.2: Maximum amount of water to be diverted by Authority from Lake Arrowhead shall not exceed one hundred fifty thousand (150,000) gallons per d y unless a greater amount is approved in writing by the City. Section 1. 3: Authority shall furnish, install, operate and maintain at its own expense at the diversion point, the necessary metering equipment, includinti 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 locat n of meter shall be agreed to by City and Authority prior to diversion of water. Authority shall calibrate such metering equipment whenever requested by City but not more f quently than once every twelve (12) months. A meter registering not more than two I � percent (2%) above or below the test result of the rated capacity of the meter shall sia 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 • I I 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 g period shall be deemed to be the amount of water diverted in the corresponding period im- mediately y prior to the failure, based on existing records unless. City and Authority. shall agree on a different amount. ii Section 1.4: Thirty (30) days prior to estimated date of completion of construction of Authority water supply and distribution system, Authority will notify City in writing the date of initial diversion of water. Section 1.5:, When requested by Authority 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 Authority 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. Section 1.6: Location and Easements - The location of the proposed pump station, treatment plant and intake structure shall be approved by the City, and the -2- pump station and plant 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 it Ij lines are constructed. Section 1. 7: Approval - Pump station, treatment process and p pipe lines must be approved by Texas State Health Department before any construction. it Section 1. 8: Plans and Specifications Approval - Plans and Specifications shall be approved by the City before advertising for construction of any facilities. Section 2. 0: The cost of water purchased by the Authority shall be based in accordance with the following schedule: j $0.14 per 1, 000 gallons 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 the Authority by Jan- 'j uary 1, 1980.. Any change in water rates will become effective for all water bills rendered after April 30th of each year. The schedule of rates beginning with all water �I bills rendered after this system is placed into operation could also include a "reservoir • j' capacity charge" designed to cover the cost of reservoir space required to meet Auth- I• ority'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 Authority meter on the first day of each month during the term of this contract. Authority and City shall have free access to read meters daily if they so desire. The City will provide Authority no later than the 10th day of each month, with an itemized statement of the amount of water metered to Authority during the preceding month. Authority shall pay to the City the amount of itemized statement for any month no later. than 20th day for the preceding 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 Authority. 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 Authority. City may cancel this contract at any time during the life of the contract in the event Authority fails to make any payment due -3- li hereunder within sixty (60) days after same becomes due; or, if Authority breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) days after City gives Authority written notice thereof. . Section 4. 0: Authority shall net be required to furnish w ater to any resi- dent of City. If City extends its city limits to include any consumer of water from Authority, Authority 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 Authority 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 amend 'I. Section 5. 0: Authority shall permit the water to be used only for normal residential, commercial and municipal purposes. Unless written permission is ob- tained from City, water shall not be used for agricultural irrigation, cattle feed lots, or any processing or manufacturing concern which uses such water in other than normal) residential or commercial quantities. Authority shall not permit water to be used by other municipalities or for commercial or residential subdivisions not in existence at the date of executing this contract. Authority shall not sell any water to any private party for resale by such private parties to third parties. The service area of the Authority shall be restricted to the area as indicated in Exhibit "C" attached which would include City-owned leased lands and State-owned lands as well as two private subdivisions on Lake Arrowhead which were final platted as of the date of this contract and conditioned by the other restrictions in this section. Any extension of the service area and system must be approved in writing by the City. 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 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 the water sold to citizens of Wichita Falls, the supply of water to Authority'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. -4- ii II 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 Auth- ority will collaborate in obtaining such permits, certificates, or the like, as may be required to comply herewith. Section 7. 0: Any amendment I o this contract shall be in writing and exe- cuted by both City and Authority. Section 8. 0: Lake Arrowhead is a primary water source facility for the 1 City. Improvements at Lake Arrowhead are not now served by a waste water collet- . tion and treatment system. Septic tanks are required by City Lease Agreement in accordance with State Health Department and City standards. The City will periodic- ally conduct a septic tank inspection program. Upon notification by the City, the Authority will discontinue water service to any customer who does not maintain their septic tank and system in accordance with State Health Department and City standards. At some future date, City may require that a sanitary sewer collection and treatment system be constructed and operated to serve Authority's water customers in order to prevent pollution of City's water supply. If such sanitary sewer collection and treat • ment system is not constructed within twenty-four(24) month's of notification by the City, Authority shall discontinue its water service under this contract. Upon corn- �I pletion of the sanitary sewer collection and treatment system, all of Authority's water customers will be required to tie into the system within ninety (90) days or Authority agrees to discontinue water service to those customers who have not made connection. Section 9. 0: This contract shall not be assignable without the approval of City, except Authority may assign and/or mortgage this lease to the United States of America, acting through the Farmers Home Administration. However, in the event of any occurrence rendering Authority incapable of performing under this lease, any successor of Authority, whether the result of legal process, assignment or otherwise, shall succeed to the rights of Authority hereunder. Section 9. 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 Ilonie Administration. • IN WITNESS WHEREOF, the parties hereto, acting under authority of their II respective governing bodies, have caned this contract to be duly executed in three counterparts, each of which shall constitute an original. II' CITY OF WICI-IITA FALLS, TEXAS BY: CITY MANAGER I' ATTEST: CITY CLERK RED RIVER.AUTIIORII'Y OF TEXAS BY: GENERAL MANAGER ATTEST: SECRETARY • • • -6-