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HomeMy WebLinkAboutOrdinance No. 98-1063 ORIGINAL CITY OF THE COLONY, TEXAS ORDINANCE NO. AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH NORTH TEXAS MUNICIPAL WATER DISTRICT (NTMWD) FOR SLUDGE HAULING SERVICES; ATTACHING THE APPROVED FORM OF CONTRACT AS EXHIBITS "A"; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas is hereby authorized to execute on behalf of the City a contract with North Texas Municipal Water District (NTMWD) for sludge hauling services. The approved form of contract is attached hereto as Exhibit "A", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED AND APPROVED by the City Council of the City of The Colony, Texas this /~-/cCJ~ dayof___~/~'___, 1998 . ry-' ' ~ t~s~ M~y~r Patti A. Hicks, TRMC, City Secretary APPROVED AS TO FORM: ,' ' NTMWD / THE COLONY, TX. SLUIX~E TRANSPORTATION AND DI?OSAL AG ~REEMENT SLUDGE TRANSPORTATION AND DISPOSAL AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § COUNTY OF COLLIN § AN AGREEMENT BETWEEN THE CITY OF THE COLONY, TEXAS, AND THE NORTH TEXAS MUNICIPAL WATER DISTRICT FOR SLUDGE TRANSPORTATION AND DISPOSAL This contract, made and entered into as ofthe /.:~4-day of ~(tjTE/~r~t~, 19 ~/g, by and between the North Texas Municipal Water District, hereinafter called "NTMWD", and the City of The Colony, Texas, a municipal corporation in Denton County, Texas, hereinafter called "City". WITNESS ETH: WHEREAS, City owns and operates one wastewater treatment plant that discharges into Lake Lewisville. WHEREAS, NTMWD owns and operates one wastewater plant in Richardson that discharges to Floyd Branch and another in Frisco that discharges into Stewart Creek. WHEREAS, City and NTMWD have been issued permits from the Texas Natural Resource Conservation Commission to discharge flow from those wastewater plants and to dispose of sludge residuals. WHEREAS, NTMWD owns and operates a landfill in Collin County, Texas, where sludge can be disposed. WHEREAS, it would be mutually beneficial for NTMWD and City to share in the cost of sludge transportation and disposal. NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, NTMWD agrees to transport and dispose of the sludge from City wastewater plant and the City agrees to pay for such service upon the terms and conditions hereinafter set forth, to-wit: 1. Definition of Terms. The terms and expressions as used in this contract, unless the context clearly shows otherwise, shall have the following meanings: (a) "Adjusted Annual Payment" means the Annual Payment, as adjusted in accordance with Section 5 of this agreement during or after each Fiscal Year. NTMWD / THE COLONY, TX. SLLrD~E TRANSPORTATION AND DI-SPOSAL AGREEMENT Co) "Annual Payment" means the amount of money as provided in Section 5 of this agreement to be paid to NTMWD by City as their proportionate share of the Annual Requirement. (c) "Annual Requirement" means the total amount of money required for NTMWD to pay all Operation, Maintenance, and Capital Expense in connection with the sludge transportation and disposal. (d) "Fiscal Year" means the twelve (12) month period beginning each October 1 and ending the following September 30, or such other twelve (12) month period as may be established in the future to constitute NTMWD's Fiscal Year. (e) '~rrip" means the transport by the NTMWD of an empty sludge container to the City's wastewater plant located at No. 2 Harris Plaza within the City (the Stewart 'Creek Wastewater Treatment Plant) ( the 'wastewater plant'), transport of a filled sludge container from the wastewater plant to the landfill, and disposal of the sludge contained therein at the landfill. A trip ticket shall be issued by the landfill and recorded by the NTMWD. 2. Operating Responsibility. It is the intent of this agreement that the operation of the sludge transportation equipment and disposal of the sludge is the responsibility of NTMWD. NTMWD is the owner of the sludge transportation equipment. City has the right to timely disposal of the sludge generated by City's wastewater plant by NTMWD. Exclusive of weekends and holidays, NTMWD shall be available to remove sludge from the City's wastewater treatment plant on a weekly basis. The City shall give NTMWD at least 24 hours notice of a required trip and NTMWD shall make such trip within 24 hours following such notice. 3. Financing. NTMWD will provide all equipment and personnel needed to perform adequate, timely disposal ofwastewater sludge from the three plants above. City will provide funds to pay for its proportionate share of the cost of such transportation and disposal. 4. Operating Budget. NTMWD shall prepare an annual operating budget reflecting the anticipated Annual Requirement in sufficient detail to justify expenditures for salaries, materials, supplies, contractual services, and capital outlays. The amount of the proposed operating budget shall be submitted to City on or before August 1 of each year. If a protest or request for a heating on the operating budget is not presented prior to September 1, the total amount of the proposed operating budget, on adoption by the NTMWD, shall be considered the "Annual Requirement" for the ensuing fiscal year. In the event City and NTMWD are not able to agree on the operating budget prior to October 1, the Annual Budget for the previous year shall apply for the first sixty (60) days of the new fiscal year, with adjustments onlyto those items that are agreed to by City. If, at the end of this 60-day period, no agreement has been reached on the operating budget, this contract shall be terminated in accordance with the termination provisions provided in Section 6. In the first year, an operating budget will be prepared for a full twelve (12) months with payments based thereon. Execution by all parties to this agreement will establish the operating budget attached hereto as Exhibit 1 as the Annual Requirement for the fiscal year beginning October 1, 1998 and ending September 30, 1999. Prior to NTMWD's actual receipt of sludge hauling equipment, the City shall · ' NTMWD ! THE COLONY, T2C SLUIX~E TRANSPORTATION AND DISPOSAL AGREEMENT be charged $340 per trip. On October 1 of each year thereafter, a new Annual Requirement will be implemented for each fiscal year beginning October 1 and ending September 30 during the term of this Contract. 5. payments By City. For services to be rendered to City by NTMWD under this contract, City agrees to pay, at the time and in the manner hereinafter provided, its proportionate share of the Annual Requirement, which shall be determined as hereafter described and shall constitute City's Annual Payment or Adjusted Annual Payment. For the Fiscal Year beginning October 1, 1998, City's Annual Payment shall be one-third (1/3) of the Annual Requirement. For each Fiscal Year thereafter, City's proportionate share of the Annual Requirement shall be a percentage obtained by dividing City's trips by the total combined City and NTMWD trips during the prior Fiscal Year. The calculation of each Annual Payment as determined herein, and each Adjusted Annual Payment, shall be determined as provided in this Section. City's Annual Payment shall be calculated by the NTMWD by multiplying City's percentage of the total combined City and NTMWD trips the prior Fiscal Year times the Annual Requirement. City's Annual Payment shall be made to NTMWD in eleven (11) monthly installments, on or before the tenth (10t~) day of each month, for its required part of the Annual Requirement for each Fiscal Year. The first monthly installment due October 10 of each year shall be one sixth (1/6) of the Annual Payment. Every other monthly installment shall be one twelfth (1/12) of the Annual Payment with no payment due in September of each year. At the close of the 1998- 99 Fiscal Year, and at the close of each Fiscal Year thereafter, NTMWD shall redetermine City's percentage by dividing City's trips during the Fiscal Year by the total trips of City and NTMWD during the Fiscal Year. City's Adjusted Annual Payment shall be calculated by multiplying City's redetermined percentage times the Annual Requirement. The difference between the Adjusted Annual Payment and the Annual Payment, if any, when determined, shall be applied as a credit or a debit to City's account with NTMWD and shall be credited or debited to City's next subsequent monthly payment or payments; provided, however, upon the termination or expiration of the Contract, the difference for the last year (or partial year) of the Contract shall be paid to the party to whom such difference is owed within thirty (30) days following a determination of such difference. Emergency expenditures not budgeted may be incurred with the concurrence of the NTMWD's Executive Director and City's City Manager, subject to limitations placed on each by their respective governing bodies, with appropriate adjustments in monthly payments. 6. Termination. The minimum contract period is five (5) years from date of authorization of this agreement.. Either City or NTMWD may require that this agreement be terminated after that period. The party desiring to terminate this agreement shall submit notice in writing to the other party, after which a period of thirty (30) days shall be allowed before termination becomes final. Once this agreement is terminated, NTMWD shall continue its operating responsibility for a period of forty-five (45) days at the request of City with payments for service in accordance with the agreement. If either party (the "first party") hereto has reason to believe that the other party (the "second party') is in violation of this agreement, the first party shall notify the second party in writing of the violation setting forth the nature of such violation. The second party shall be allowed thirty (30) days to cure the violations after written notice is received from the first party. Should the second party fail to comply, after notice and NTMWD / THE COLONY, TX. SLUIX~E TILa. NSPORTATION AND DISPOSAL AOgE£MENT opportunity to cure, then the first party shall have the right to cancel and terminate this agreement in accordance with the procedure described in the first paragraph of this Section 6. 7. Sludge Quality. The NTMWD cannot haul or dispose of hazardous waste. City will provide NTMWD documentation of all pertinent tests on sludge as required by the Environmental Protection Agency, or Texas Natural Resource Conservation Commission, or other lawful jurisdiction to insure its being non-hazardous. 8. Indemnity. City agrees to indemnify and hold harmless NTMWD, its officers, agents and employees from any and all claims, lawsuits, or causes of action for loss, liability, or damages (whether personal injury or death or property damage or destruction) arising out of the filling of a sludge container at the City's wastewater treatment plant , except for acts of negligence or reckless or intentional acts by NTMWD personnel. NTMWD agrees to indemnify and hold harmless the City, its officers, agents and employees from any and all claims, lawsuits, or causes of action for loss, liability, or damages (whether personal injury or death or property damage or destruction) arising out of the transportation by employees or contractors of NTMWD to and from the City's wastewater treatment plant, and disposal of sludge by, NTMWD, except for acts of negligence or recklessness or intentional acts by City personnel. 9. NTMWD's Financial Obligation. Nothing in this agreement shall be construed as requiring the NTMWD to expend funds from any source other than the revenues received hereunder. All costs required by valid rules, regulations, laws or orders passed or promulgated by the United States of America, the State of Texas, and regulatory or judicial branches thereof having lawful jurisdiction shall be the responsibility of City. THIS AGREEMENT APPROVED BY THE RESPECTIVE GOVERNING BODIES WITH THE UNDF_~SIGNED PROPERLY AUTHORIZED TO EXECUTE IN THEIR BEHALF _O_N __T[-[I_S THE~dt"~ DAY OF-~o~/yYzJ£~_ , 19 ~ . AND ON THE 24th DAY O~ SEPTEMBEr*. NORTH TEXAS MUNICIPAL CITY OF THE COLONY WATER DISTRICT Pr~siden~ - - ATTEST: (~ Secretary - City Secretary. [~-~.