HomeMy WebLinkAboutResolution No. 2010-096CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2010- C 6j ,
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
AUTHORIZING THE MAYOR TO EXECUTE THE WHOLESALE
TREATED WATER CONTRACT BETWEEN THE CITY OF
DALLAS AND THE CITY OF THE COLONY FOR THE PURPOSE
OF ESTABLISHING MUTUAL TERMS, COVENANTS AND
CONDITIONS FOR THE PURCHASE AND SALE OF
WHOLESALE WATER; THAT THE CONTRACT IS ATTACHED
HERETO AS EXHIBIT "A"; PROVIDING AN EFFECTIVE DATE
WHEREAS, the current contract between the City of The Colony and the City of
Dallas for the purchase of wholesale treated water expires on November 5, 2010; and,
WHEREAS, the City of The Colony City Council has determined it to be in the
best interest of it citizens to execute a new contract for the purchase of wholesale treated
water from the City of Dallas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
Section 1. That the City Council of the City of The Colony, Texas hereby
approves the Wholesale Treated Water Contract between the City of Dallas and the City
of The Colony for the purpose of establishing mutual terms, covenants and conditions for
the purchase and sale of wholesale water effective November 5, 2010 through November
5, 2040.
Section 2. That the Mayor is authorized to execute the Wholesale Treated
Water Contract between the City of Dallas and the City of The Colony, which is attached
hereto and incorporated herein as Exhibit "A".
Section 3. That this resolution shall take effect immediately from and after its
passage.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 16th day of November, 2010.
G'
hristie Wilson, T ROC, City Secretary
APPROVED AS TO FORM:
Jeff Moor o, City Attorney
J e McCour,t=y, Mayor
City of The`Colony, Texas
r t.a
WHOLESALE TREATED WATER CONTRACT BETWEEN
CITY OF DALLAS AND CITY OF THE COLONY
STATE OF TEXAS §
COUNTY OF DALLAS §
THIS WHOLESALE TREATED WATER CONTRACT ("Contract") is made and
entered into this the day of~;~~aa:~~~ 010, by and between the CITY OF DALLAS, a
Texas home rule municipality (hereinafter called "Dallas"), and the CITY OF THE COLONY,
TEXAS, a Texas home rule municipality (hereinafter called "Customer").
WHEREAS, Customer currently purchases wholesale treated water fi•om Dallas, and
Dallas currently delivers and sells wholesale treated water to Customer as set forth under the
terms, covenants, and conditions stated in the Current Contract; and
WHEREAS, the Current Contract with Dallas will expire on November 5, 2010, and
WHEREAS, Dallas and Customer desire to enter into a new wholesale treated water
contract; and
NOW, THEREFORE, Dallas and Customer, in consideration of the mutual terms,
covenants, and conditions contained in this Contract, agree as follows:
Article 1. DEFINITIONS
1.1 Definitions. In addition to the definitions stated in the preamble hereof, the following
words and phrases as used in this Contract, unless the context clearly shows otherwise, shall
have the following meanings:
"Current Contract" means that certain Wholesale Treated Water Contract dated and
effective November 5, 1980, by and between Dallas and Customer.
"Customer's Service Area" means the area within Customer's incorporated limits, as
amended from time to time through annexation or disannexation, and any service area described
in a certificate of convenience and necessity issued by the TCEQ for the provision of retail
public water service, even if such service area is outside of Customer's incorporated limits, such
service area on the Effective Date being as set forth in Exhibit "B," attached hereto and
incorporated herein by reference.
"Delivery Facilities" means the pipe, valves, meters, and other associated equipment and
appurtenances necessary to connect Dallas' water distribution system to Customer's water
distribution system at the Delivery Points so that delivery of Treated Potable Water from Dallas
to Customer is made possible.
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"Delivery Points" means those locations set forth in Exhibit "C," attached hereto and
incorporated herein by reference, or as may be added to or deleted by agreement of the parties
from time to time, where Dallas' water distribution system connects to Customer's water system
and at which delivery of Treated Potable Water occurs to Customer.
"Demand" means the maximum rate of flow of Treated Potable Water that may be taken
by Customer from Dallas within a Water Year.
"Demand Schedule" means Customer's written estimate of Customer's annual
requirements for delivery and use of Potable Treated Water from Dallas.
"Director" means the Director of Dallas' Department of Water Utilities, or the Director's
designated representative.
"Memorandum of Agreement" or "MOA" rneans that certain Memorandum of Agreement
for iholesale Treated Water effective December 17, 2009, by and among Dallas, Customer and
other local governmental entities, a copy of which is attached hereto as Exhibit "A," and
incorporated herein by reference.
"Potable Treated Water" means raw water that has been treated and purified to at least
Drinking Water Standards as required by applicable TCEQ rules and regulations for Public
Waters Systems, as amended from time to time.
"TCEQ" means the Texas Commission on Environmental Quality or its successor
agency.
"Water Year" means the period described by applicable ordinance of the City of Dallas,
as may be amended from time to time, which on the Effective Date begins on June 1st of each
calendar year and ends on May 31St of the immediately subsequent calendar year.
Article 2. TERM; TERMINATION OF CURRENT CONTRACT
2.1 Term. This Contract shall remain in full force and effect for a term of thirty (30) years
from November 5, 2010 ("Effective Date") unless terminated earlier as provided herein.
2.2 Termination of Current Contract. Upon the Effective Date, the Current Contract shall
be null, void, and of no further legal force or effect except as to any provisions that expressly
survive the termination of the Current Contract.
Article 3. WATER SALES
3.1 Sale and Delivery of Treated Water. Dallas agrees to sell and deliver to Customer, on
a wholesale cost basis, Potable Treated Water in accordance with the specifications and
restrictions contained in Article 4 of this Contract and in sufficient quantities to meet Customer's
volume and demand requirements as provided in this Contract.
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3.2 Limitations on Delivery. Customer understands and acknowledges that delivery of
Potable Treated Water to meet Customer's volume and demand requirements is subject to and
limited by available system supply and system deliverability, as reasonably determined by the
Director as well as events of Force Majeure; provided, however, delivery of Potable Treated
Water to Customer shall not be unreasonably witl-Aleld.
3.3 Demand Schedule. Not later than 60 days after the Effective Date, Customer shall
provide to Dallas a Demand Schedule which factors in any reasonably anticipated increases or
decreases in Demand during the term of this Contract. Customer shall either reaffirm or, if
necessary, revise and update the Demand Schedule not later than ninety (90) days prior to the
end of the fifth, tenth, fifteenth, twentieth, and twenty-fifth anniversaries of the Effective Date of
this Contract. Customer shall also either reaffirm or update the Demand Schedule not later than
ninety (90) days following receipt of a written request for same from Dallas.
3.4 Customer Changes in Demand. Customer may from time to time change its Demand as
set forth in the Demand Schedule subject to Section 3.7, below. Except for Special Conditions as
provided in Exhibit "D", Customer shall be required to pay Dallas the Annual Demand Charge
based on Section 3.8.
3.5 Failure to Deliver Demand - Seven Days. If Dallas fails to make available the
currently established Demand for seven (7) or more consecutive days, the Demand Charge for
such days shall be an amount equal to the maximum rate of delivery of Potable Treated Water
for the days in which full Demand was not met, multiplied by the current Annual Demand
Charge, then divided by 365, then multiplied by the number of days the Demand was not met.
3.6 Failure to Deliver Demand - Thirty Days. If Dallas fails to make available to
Customer the currently established Demand for thirty (30) or more consecutive days, the
Demand Charge for that Water Year shall be calculated by using the maximum rate of delivery
of Treated Potable Water to Customer for the days in which the full Demand was not met,
multiplied by the current Annual Demand Charge.
3.7 Notice of Demand Changes. Customer shall give reasonable notice to Dallas of
anticipated changes in its Demand. Such notice shall be given not less than six (6) months in
advance of the effective date of the change if the requested change, when considered with other
Dallas Customer requests does not require the construction of additional facilities. The Director
may waive the six-month notice requirement for good cause shown. If construction of additional
facilities is required, enough additional advance notice shall be given as is necessary to allow for
financing, design, and construction of the needed facilities.
3.8 Year on Which Annual Demand Charlze is Based. Customer agrees, for each Water
Year, to pay Annual Demand Charges based on the greater of: (a) the Demand for the current
Water Year; or (b) the highest Demand established during the five (5) Water Years preceding the
current Water Year.
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Article 4. DELIVERY POINT, ACCESS, ETC.
4.1 Deliverv Point. Dallas agrees to deliver Potable Treated Water sold to Customer for use
within Customer's designated service area as identified in Exhibit B, at the Delivery Point(s).
4.2 Cost of Delivery Facilities. Except as set forth in Sections 4.3, 4.4, and 4.5, the cost for
design and construction of all proposed Delivery Facilities, whether designated in Exhibit C or
mutually agreed upon at a later date, shall be borne by Customer. Unless otherwise mutually
agreed to by Dallas and Customer, Customer shall be responsible for the design, contracting,
construction, and financing of Delivery Facilities and for the acquisition of any right-of-way for
delivery of Treated Potable Water from the Dallas water system to the Delivery Points.
4.3 Oversizing of Delivery Facilities - Dallas Request. Dallas may elect to oversize a
proposed Delivery Facility for the benefit of Dallas or other parties. If Dallas requires oversizing
of a proposed Delivery Facility, Dallas shall be responsible for oversize costs to the extent of the
documented difference in cost between the size of the Delivery Facility required for Customer's
need and the size of the Delivery Facility specified by Dallas, including, but not limited to, any
additional right-of-way or other temporary of permanent interests in real property that would not
otherwise be required without the oversizing of the Delivery Facility.
4.4 Approval of Plans; Inspection. All designs, materials, and specifications for Delivery
Facilities shall conform to Dallas' requirements. Plans for the construction of a proposed
Delivery Facility shall be submitted to the Director for written approval prior to advertising for
bids for such construction. Customer agrees that Dallas has the right to make periodic
inspections during the construction phase of the Delivery Facilities. Final acceptance of
completed Delivery Facilities is subject to the written approval of the Director. Dallas agrees that
any approval or consent of Dallas or the Director required by this Section 4.4 shall not be
unreasonably withheld or delayed.
4.5 Meters and Meter Vaults. Unless otherwise agreed by the parties, Dallas shall
construct and maintain meter vaults, meters, and all associated facilities, and obtain electric and
telephone service in connection therewith, if needed. Customer agrees to reimburse Dallas for
actual design and construction costs incurred pursuant to this Section 4.5, but only to the extent
such costs are attributable to services provided to Customer, excluding costs of telemetry
equipment, telephone and electric service.
4.6 Conveyance of Delivery Facilities to Dallas. Customer agrees that after final inspection
and acceptance by the Director of completed Delivery Facilities, Customer will convey title of
those facilities and rights-of-way in conjunction therewith to Dallas. Upon conveyance of title to
Delivery Facilities by appropriate instrument, Dallas shall be responsible for operation and
maintenance thereof. In no event shall Customer be required to transfer to Dallas fee simple title
to real property if an easement in that real property is sufficient to allow Dallas to operate,
maintain, repair, replace, or reconstruct the Delivery Facility.
4.7 Additional Delivery Points. Customer may at any time during the term of this Contract
request additional Delivery Points for delivery of Potable Treated Water under this Contract. The
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additional requests may be granted with the approval of the Director and shall, when so approved
in writing, be deemed to be made a part of this Contract, thereby amending Exhibit C of this
Contract without need for a further written supplemental agreement.
4.8 Access to Dallas Facilities. Customer agrees to provide ingress and egress to
Customer's property located within Customer's incorporated limits for employees, contractors,
and agents of Dallas to install, operate, inspect, test, and maintain facilities and read meters
owned or maintained by Dallas; provided, however, Dallas' employees, contractors. and agents
shall at all times comply with Customer's policies regarding security and safety as may be
adopted from time to time by Customer for the purpose of safeguarding Customer's public water
system and supply.
4.9 Access to Customer Facilities. Dallas agrees to provide ingress and egress to Dallas'
property located within Dallas' incorporated limits to employees, contractors, and agents of
Customer to install, operate, inspect, test, and maintain facilities and read meters owned or
maintained by Customer; provided, however, Customer's employees, contractors, and agents
shall at all times comply with Dallas' policies regarding security and safety as may be adopted
from time to time by Dallas for the purpose of safeguarding Dallas' public water system and
supply.
4.10 Accuracy of Meters. It shall be the duty of each party to notify the other party as soon
as reasonably possible after a party obtains information that it believes indicates that a meter
used to measure the delivery of Potable Treated Water under this Contract is registering
inaccurately or malfunctioning. Each meter will be operated and maintained so as to record with
commercial accuracy. Dallas will notify Customer prior to any meter tests. Either party has the
right to request in writing that a meter be tested, with the other party having the right to witness
the test. If Customer requires an independent testing service be used, Customer shall pay the cost
of the testing service if any meter used to measure delivery under this Contract is found to be
accurate. If the meter is found to be inaccurate, Dallas shall pay the cost of the testing service.
4.11 Liability; Loss of Water. All liability related to, and all accounting for loss of, all
Potable Treated Water supplied under the terms of this Contract by Dallas to Customer shall
belong to Dallas up to Dallas' side of the meter at each Delivery Point. Liability related to, and
all accounting for loss of, all Potable Treated Water shall pass to Customer, after the Potable
Treated Water passes to the Customer side of the meter at each Delivery Point.
Article 5. INSPECTION OF BOOKS AND RECORDS
Dallas agrees that Customer or its employees or agents may have access to and inspect
the books and records of Dallas Water Utilities relating to the delivery and sale of Potable
Treated Water to Customer, including but not limited to records relating to charges therefor paid
by Customer, during reasonable business hours after reasonable prior written notice to the
Director. Customer agrees that Dallas or its employees or agents may have access to and inspect
the books and records of the Customer's Water Utilities relating to the receipt and resale of
Potable Treated Water to its end user customers during reasonable business hours and after
reasonable prior written notice to Customer.
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Article 6. ADDITIONAL SURFACE WATER SUPPLIES
6.1 New Water Source; Reduce Demand Oblilzation. If Customer develops or acquires
additional surface water supplies from any source other than Dallas, and Customer's reliance on
such additional surface water supplies results in reduced Demand from Dallas, Dallas is released
from its obligation to supply the Demand established pursuant to Article 3 pf this Contract to the
extent of such reduction in Customer's Demand. In this event, Dallas may, but is not required to,
adjust its supply obligation to levels commensurate with Customer's reduced demand on Dallas.
6.2 Payment for Reduction of Demand. Except as the result of a reduction in Demand as
agreed pursuant to Article 3 of this Contract, if during the term of this Contract, Customer ceases
(wholly or in part) to take water from Dallas for any reason, Customer shall for five (5) years or
the balance of this Contract, whichever is less, remain liable for Demand Charges at the billing
level in effect at the date of notification of such partial or total cessation. This obligation, once
established, shall serve as liquidated damages and is intended to compensate Dallas for the
expenditures incurred on Customer's behalf for the cost of installation of supply, transmission,
treatment, delivery and service facilities. Provided, however, Dallas may waive Customer's
obligation pursuant to this Section 6.2 in the event of nominal reductions based on Customer's
plans if Dallas has received prior notice of the plans and concurred in the reduction. It is agreed
by the parties that liquidated damages are a reasonable substitute for compensatory damages
which are difficult or impossible to calculate herein. This obligation is intended by the parties not
to be a penalty, but instead, a reasonable measure of damages.
Article 7. RATES AND PAYMENT
7.1 Setting of Charges by Dallas Ordinance. Rates charged Customer, including Demand
Charges established herein, shall be established by ordinance of Dallas. The capital costs
contributed by the Customer for Delivery Facilities and metering facilities shall be excluded
from the rate base.
7.2 Rate Setting Method; Notice of Chanlze. Customer understands that the Dallas City
Council has the right to change, by ordinance, the rates charged as needed to cover all
reasonable, actual and expected costs. Any change of rates shall be pursuant to principles set
forth in the Memorandum of Agreement. Dallas shall give Customer a minimum of six (6)
months written notice of intent to change rates. Dallas will furnish Customer a draft copy of the
Cost of Service Study for Proposed Rates thirty (30) days prior to Dallas submitting a rate
increase request to its City Council.
7.3 Customer Protest. Customer agrees to give Dallas a minimum of thirty (30) days notice
of its intent to protest rates, or any other condition of service, before the TCEQ or any other state
agency.
7.4 Monthly Invoice. Each month during the term of this Contract, Dallas agrees to deliver
to Customer a statement of charges setting forth the amount of Potable Treated Water delivered
to Customer through the Delivery Points for the period covered by the statement, the volume
charge for that month, and any past due amounts carried over from prior invoices (including
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accrued interest) ("the Monthly Statement"). Payment is due upon receipt of Monthly Statement.
Customer agrees to pay promptly. The Demand Charge shall be billed on the Monthly Statement.
7.5 Late Payment. Customer agrees that a payment is deemed late if received by Dallas
more than 30 days after the date of the Monthly Statement. Late payments shall accrue interest at
the interest rate provided in Section 2-1.1 of the Dallas City Code, as amended, or as authorized
by Chapter 2251 of the Texas Government Code, as amended, whichever applies. If any money
due and owing by Customer to Dallas is placed with an attorney for collection. Customer agrees
to pay to Dallas, in addition to all other payments provided for by this Contract, including
interest, Dallas' collection expenses, including court costs and reasonable attorney's fees.
7.6 Malfunctioning Meter; Estimated Payments. In the event a meter(s) is discovered to
be malfunctioning, the amount of Potable Treated Water that has passed through the meter will
be estimated for each day the meter has not functioned correctly. The last correctly measured
monthly consumption will be used as a basis for computing the amount of Potable Treated Water
delivered to the Customer during the time the meter has not been functioning correctly.
7.7 Disputed CharIzes. Dallas and Customer agree that any disputed charges on the Monthly
Statement shall be protested and resolved in accordance with Tex. Govt. Code §2251.042, as
amended. Customer agrees that in the event it disputes any portion of the charges on a Monthly
Statement, Customer will timely pay any undisputed amount in accordance with Section 7.4.
Article 8. CURTAILMENT, WATER CONSERVATION,
AND DROUGHT CONTINGENCY PLANS
8.1 Dallas Curtailment of Water During Water Shortage. During a water shortage,
Customer understands and acknowledges the Potable Treated Water being provided by Dallas
under this Contract is subject to curtailment in accordance with Texas Water Code § 11.039,
"Distribution of Water During Shortage," Dallas' water rights, and Dallas' Drought Contingency
Plan. Customer agrees that if water supplies or services are curtailed within Dallas, Dallas may
impose a like curtailment on deliveries to Customer. Customer shall cooperate by imposing
conservation measures upon its sales of Potable Treated Water to its end user customers.
8.2 Customer Water Conservation and DroujZht Contingency Plan. Customer agrees to
institute and maintain usage practices which ensure water is used in a manner that prevents
waste, conserves water resources for their most beneficial and vital uses, and protects the public
health. Customer agrees to develop and implement water conservation and drought contingency
plans consistent with the applicable elements of Title 30, Texas Administrative Code, Chapter
288, "Water Conservation Plans, Drought Contingency Plans, Guidelines and Requirements."
Customer agrees to furnish to Dallas electronic copies of its water conservation and drought
contingency plans and associated TCEQ and TWDB implementation reports.
8.3 Receipt of Dallas Plans. Customer acknowledges that Dallas has provided a copy of its
current Water Conservation Plan and Drought Contingency Plan and has advised Customer of
where to locate copies of plan updates.
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8.4 No Discrimination in Curtailments. To the extent Dallas imposes restrictions or grants
privileges of general applicability to itself and customer cities, including rules relating to the
curtailment of water delivery and availability, Dallas agrees to impose such restrictions and grant
such privileges equitably and in a non-discriminatory fashion.
Article 9. RESALE, WATER RIGHTS, AND REUSE
9.1 No Resale Outside Service Area. Customer agrees not to sell Potable Treated Water
purchased from Dallas to any person or entity outside Customer's Service Area unless Customer
has received prior written approval from the Director. In granting such authorization, Dallas may
establish the terms and conditions of the conveyance of such Potable Treated Water including,
but not restricted to, the setting of monetary rates for sale of such water. "Convey" means sell,
trade, donate, exchange, transfer title or contract therefor.
9.2 Resale Customers to Adopt Water Conservation and DroulZht Continency Plans.
In consideration of the written approval of the resale of Potable Treated Water, if so granted,
Customer agrees that the wholesale water supply contract with each successive wholesale
customer to whom Potable Treated Water is resold must contain a provision requiring said
customer to develop and implement a water conservation plan or water conservation measures
consistent with the requirements of Section 8.2.
9.3. Rights to Water and Return Flows. Customer understands, acknowledges, and agrees
that Customer shall acquire no water rights or title or right to the use, reuse, or recycling of water
generated as the result of Dallas' sale and delivery of treated water to Customer pursuant to this
Contract. Dallas makes no claim and asserts no water rights related to the wastewater effluent
return flows produced by Customer as a result of Customer's water use under this Contract, it
being expressly understood and agreed that Customer is not prohibited by this Contract from
treating and using such wastewater effluent return flows in accordance with applicable law and
TCEQ regulations.
Article 10. RIGHTS-OF-WAY AND STREET USE
10.1 Provision of Easements. Customer agrees to furnish any easements or rights-of-way
necessary within or without Customer's boundaries reasonably necessary for Dallas to deliver
Potable Treated Water to Customer as provided in Article 4, hereof, and to convey such
easements or rights-of-way to Dallas as therein provided.
10.2 Use of Customer Streets, Alleys, and Easements. Subject to the prior written approval
of Customer, Dallas may use Customer's streets, alleys and other public rights-of-way and public
utility easements within Customer's boundaries for pipeline purposes to provide Potable Treated
Water to Customer or to other customers without charges or tolls to the extent that Customer has
the legal right to make such grant. Dallas agrees to make, at Dallas' cost, the necessary repairs
to restore the streets, alleys or public rights-of-way used in accordance with Customer's then
existing specifications for such work. Such use and repairs shall be pursuant to the terms and
conditions of the conveyance Customer duly grants for such purposes.
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10.3 Use of Dallas Streets, Alleys, and Easements. Subject to the prior written approval of
Dallas, Customer may use Dallas' streets, alleys and other public rights-of-way and public utility
easements within Dallas' boundaries for pipeline purposes to provide Potable Treated Water to
Customer without charges or tolls to the extent that Dallas has the legal right to make such grant.
Customer agrees to make at Customer's cost, the necessary repairs to restore the streets, alleys or
public rights-of-way used in accordance with Dallas' then existing specifications for such work.
Such use and repairs shall be pursuant to the terms and conditions of a private license duly
granted by the Dallas City Council.
Article 11. CUSTOMER SYSTEM OPERATION STANDARDS
Customer agrees to operate its water distribution system subject to the following:
A. Customer shall protect Customer's storage and distribution system from cross
connections under the specifications required by health standards of the State of Texas.
B. Customer agrees to provide air gaps for any ground storage and backflow
preventers for any elevated storage.
C. Customer agrees to provide internal storage sufficient to meet its emergency
needs and to maintain a reasonable load factor for deliveries from Dallas to Customer.
D. Customer agrees to maintain and operate its internal system in compliance with
all local, state, and federal laws and regulations.
Article 12. MEMORANDUM OF AGREEMENT
The Memorandum of Agreement is incorporated herein, as if copied word for word and is
made a part of this Contract. Any revision of the Memorandum of Agreement according to its
terms and not in conflict herewith shall automatically be incorporated into and become a part of
this Contract.
Article 13. FORCE MAJEURE; RELEASE; INDEMNITY
13.1 Force Maieure. Neither party shall be liable to the other party for any failure, delay, or
interruption in the performance of any of the terms, covenants, or conditions of this Contract due
to causes beyond their respective control or because of applicable law, including, but not limited
to, war, nuclear disaster, strikes, boycotts, labor disputes, embargoes, acts of God, acts of the
public enemy, acts of superior governmental authority, floods, riots, rebellion, sabotage,
terrorism, or any other circumstance for which a party is not legally responsible or which is not
reasonably within its power to control. The affected party's obligation shall be suspended during
the continuance of the inability then claimed, but for no longer period. To the extent possible, the
party shall endeavor to remove or overcome the inability claimed with all reasonable dispatch.
13.2 Release for Line Damages. CUSTOMER HEREBY AGREES TO RELEASE AND
HOLD DALLAS WHOLE AND HARMLESS FROM ANY CLAIMS OR DAMAGES
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ARISING NOW AND IN THE FUTURE: (1) TO CUSTOMER'S WATER MAINS OR
WATER SYSTEM RESULTING FROM THE RATE OF FLOW OR QUANTITY OF
WATER DELIVERED; AND (2) AS A RESULT OF THE CHEMICAL OR
BACTERIOLOGICAL CONTENT OF WATER PROVIDED TO CUSTOMER, UNLESS
THE DAMAGES RESULTING FROM THE CHEMICAL OR BACTERIOLOGICAL
CONTENT OF THE WATER ARE CAUSED BY THE NEGLIGENT ACT OR
OMISSION OF DALLAS, ITS OFFICERS, EMPLOYEES, AGENTS, OR
CONTRACTORS.
13.3 Indemnification. To the extent allowed by law, Customer agrees to defend,
indemnify and hold Dallas, its officers, agents and employees, harmless from any liability
in claims, administrative proceedings or lawsuits for judgments, penalties, fines, costs
expenses and attorney's fees for personal injury (including death), property damage, other
harm for which recovery of damages is sought, suffered by any person or persons, or for
violations of state or federal laws or regulations, that may arise out of or be occasioned by:
(a) a breach of this Contract by Customer; (b) the negligent act or omission of Customer in
the performance of this Contract or in Customer's day-to-day water or wastewater utility
operations; or (c) the conduct of Customer that constitutes a violation of state or federal
laws or regulations. Provided, however, that the indemnity stated above shall not apply to
any liability resulting from Dallas' sole violation of a state or federal law or regulation or
from the sole negligence of Dallas, its officers, agents, employees or separate contractors,
and in the event of the joint and concurring responsibility of Customer and Dallas,
responsibility and indemnity, if any, shall be apportioned comparatively in accordance
with the law of the State of Texas, without waiving governmental immunity or any other
defenses of the parties under applicable Texas law. The provisions of this paragraph are
solely for the benefit of the parties to this Contract and are not intended to create or grant
any rights, contractual or otherwise, to any other person or entity.
13.4 Equitable Remedies. Recognizing that Dallas' and Customer's undertakings as provided
in this Contract are obligations, the failure in the performance of which cannot be adequately
compensated in money damages, Dallas and Customer agree that, in the event of any default, the
other party shall have available to it the equitable remedy of specific performance in addition to
other legal or equitable remedies which may be available to such party.
Article 14. SPECIAL PROVISIONS
This Contract shall incorporate and be subject to the additional special provisions
peculiarly applicable to the Contract with Customer as opposed to other Wholesale Treated
Water Customer, which are set forth in Exhibit "D," attached hereto and incorporated herein by
reference.
Article 15. MISCELLANEOUS PROVISIONS
15.1. Contract Administration. This Contract shall be administered on behalf of Dallas by
the Director and on behalf of Customer by its authorized official or designated representative,
who shall initially be Customer's Director of Public Works.
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15.2 Notice of Contract Claim. This Contract is subject to the provisions of Section 2-86
of the Dallas City Code, as amended, relating to requirements for filing a notice of a breach
of contract claim against City. Section 2-86 of the Dallas City Code, as amended, is
expressly incorporated by reference and made a part of this Contract as if written '%1,6rd for
word in this Contract. Customer shall comply svith the requirements of this ordinance as a
precondition of any claim relating to this Contract, in addition to all other requirements in
this Contract related to claims and notice of claims.
15.3 Venue. The obligations of the parties to this Contract shall be performable in Dallas
County, Texas, and if legal action is necessary in connection with or to enforce rights under this
Contract, exclusive venue shall lie in Dallas County, Texas.
15.4 Governing Law. This Contract shall be governed by and construed in accordance with
the laws and court decisions of the State of Texas, without regard to conflict of law or choice of
law principles of any other state.
15.5 Lcgal Construction. In case any one or more of the provisions contained in this
Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other provision of this Contract, and
this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never
been contained in this Contract.
15.6 Counterparts. This Contract may be executed in any number of counterparts, each of
which shall be deemed an original and constitute one and the same instrument. If this Contract is
executed in counterparts, then it shall become fully executed only as of the execution of the last
such counterpart called for by the terms of this Contract to be executed.
15.7 Captions. The captions to the various clauses of this Contract are for informational
purposes only and shall not alter the substance of the terms and conditions of this Contract.
15.8 Successors and Assigns. This Contract shall be binding upon and inure to the benefit of
the parties and their respective successors and, except as may otherwise be provided in this
Contract, their assigns.
15.9 Notices. Except as otherwise provided in Section 15.2, any notice, payment, statement,
or demand required or permitted to be given under this Contract by either party to the other may
be effected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be
addressed to the parties at the addresses appearing below, but each party may change its address
by written notice in accordance with this section. Mailed notices shall be deemed communicated
as of three (3) days after mailing.
The Colony Wholesale Treated 1 1
Water Contract
If to DALLAS:
Director of Water Utilities
City of Dallas
1500 Marilla Street - 4/a/North
Dallas, Texas 75201
If to CUSTOMER:
Mayor
City of The Colony
P. O. Box 560008 ,
The Colony, Texas 75056
15.10 Conflict of Interest. The following section of the Charter of the City of Dallas shall be
one of the conditions, and a part of, the consideration of this Contract, to wit:
"CHAPTER XXII. Sec. 11. FINANCIAL INTEREST OF EMPLOYEE
OR OFFICER PROHIBITED
(a) No officer or employee shall have any financial interest, direct or
indirect, in any contract with the City or be financially interested, directly or
indirectly, in the sale to the City of any land, materials, supplies or services,
except on behalf of the City as an officer or employee. Any violation of this
section shall constitute malfeasance in office, and any officer or employee guilty
thereof shall thereby forfeit the officer's or employee's office or position with the
City. Any violation of this section, with knowledge, express or implied, of the
person or corporation contracting with the City shall render the contract involved
voidable by the City Manager or the City Council.
(b) The alleged violations of this section shall be matters to be
determined either by the Trial Board in the case of employees who have the right
to appeal to the Trial Board, and by the City Council in the case of other
employees.
(c) The prohibitions of this section shall not apply to the participation
by City employees in federally-funded housing programs, to the extent permitted
by applicable federal or state law."
For purposes of this Section 15. 10, the word "City" means "City of Dallas."
15.11 Gift to Public Servant. This Contract shall be subject to the following additional
provisions:
A. Dallas may terminate this Contract immediately if Customer has offered, or
agreed to confer any benefit upon a Dallas employee or official that the Dallas employee or
official is prohibited by law from accepting.
B. For purposes of this section, "benefit" means anything reasonably regarded as
pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare
The Colonv Wholesale Treated 12
Water Contract
the beneficiary has a direct or substantial interest, but does not include a contribution or
expenditure made and reported in accordance with law.
C. Notwithstanding any other legal remedies, Dallas may require Customer to
remove any officer or employee of Customer from the administration of this Contract or any role
in the performance of this Contract who has violated the restrictions of this section or any similar
state or federal law, and obtain reimbursement for any expenditures made as a result of the
improper offer, agreement to confer, or conferring of a benefit to a Dallas employee or official.
15.12 Applicable Laws and Ref4ulations. This Contract is made subject to, and Dallas and
Customer agree to comply with, all applicable laws of the State of Texas, applicable rules,
regulations and orders of the TCEQ and Texas Water Development Board (TWDB). Federal
Law (including but not limited to environmental and water quality laws, rules, orders, and
regulations), and the Charter and other ordinances of the City of Dallas and the City of The
Colony, as same may hereafter be amended. This Contract's effectiveness is dependent upon
Dallas' and Customer's compliance with Title 30, Texas Administrative Code, Section 295.101
and Title 30, Texas Administrative Code, Chapter 297, Subchapter J (relating to water supply
contracts and amendments), as amended. This Contract may be subject to review and approval
by TCEQ or TWDB. In the event of any final judgment finding any violation of the laws, rules,
regulations, or orders described above, Customer shall be strictly liable for any damages caused
to the property of Dallas as a result of such violation.
15.13 Authorization to Act. By their signature below, the representatives of Dallas and
Customer state that they are authorized to enter into this Contract. Dallas and Customer shall
each provide documentation that this Contract has been authorized by its respective governing
body.
15.14 Entire A14reement; No Oral Modifications. This Contract (with all referenced
Exhibits, attachments, and provisions incorporated by reference) embodies the entire agreement
of both parties, superseding all oral or written previous and contemporary agreements between
the parties relating to matters set forth in this Contract. Except as otherwise provided elsewhere
in this Contract, this Contract cannot be modified without written supplemental agreement
executed by both parties.
EXECUTED this the day of , 2010, by the City of Dallas, signing by and
through its City Manager, duly authorized to execute same by Resolution No. 10-,502,9,
$ , 2010, and by Customer, acting through
adopted by the City Council on O)QCpm f1e
its duly authorized officials.
APPROVED AS TO FORM: CITY OF DALLAS
THOMAS P. PERKINS, JR. MARY K. SUHM
City Attorney City Manager
BY
dQn
BY - a_
Assistant City Attorney Assistant City Manager
;S;1b itt0d MAY Attorney
The Colony Wholesale Treated 13
Water Contract
ATTEST:
BY C 'stie Wilson, City Secretary
APPROVED AS TO FORM:
t\
BY
A city Attorney
CUSTOMER:
CITY OF THE COLONY
F<
r
i ~
The Colony' Wholesale Treated 14
Water Contract
Exhibit A
MEMORANDUM OF AGREEMENT
for
Wholesale Treated Water
Preamble: The 1979 MOA settled a rate dispute lawsuit between Dallas and its
Wholesale Treated Water Customers regarding the wholesale treated water rate-setting
methodology ("rate-setting methodology"), and as such has served the rate-setting
methodology process well over the past 30 years. This amended agreement recognizes
that changes to the rate-setting methodology have occurred over this timeframe, and
incorporates consensus changes between Dallas and its Wholesale Treated Water
Customers, and as such will serve to govern the rate-setting methodology for the next
30 years.
1. Purpose: Dallas is a regional water provider currently providing treated water
service to Wholesale Treated Water Customers located within Dallas' established
service area in North Central Texas. The purpose of this agreement is to establish
the rate-setting methodology and formalize the mutual expectations of Dallas and
its Wholesale Treated Water Customers with respect to rate-setting methodology.
This rate-setting methodology will provide the basis for determining wholesale
treated water rates after its effective date.
2. Applicability: This agreement is subject to all applicable orders, laws and
regulations of the City of Dallas, State of Texas and the United States. If any state
or federal governmental agency having jurisdiction disapproves any material part of
this agreement during the term, the agreement is subject to cancellation by any
party and renegotiation by Dallas and its Wholesale Treated Water Customers.
3. Water System Policy: Dallas operates a water system to provide a regulatory
compliant, safe and reliable water supply, adequate for the current water use and
future growth of Dallas and its Wholesale Treated Water Customers, and to avoid
subsidization of any class of customers.
4. Definitions: A glossary, which defines applicable cost of service terms is located in
Appendix A of this MCA. Cost of service terms may be added, or the definition of an
existing term amended, from time to time, without the necessity of amending this
MOA. Additions and amendments will be reflected in the appendices attached to
the annual cost of service studies.
5. Responsibilities:
a. Dallas is responsible for planning, financing, constructing, operating and
maintaining the water supply system to the extent permitted by available
water revenues, for developing cost of service information to support
wholesale rate changes, and for informing Wholesale Treated Water
Customers of wholesale rate changes and other pertinent utility information.
Exhibit "A" to The Colony Wholesale Treated
Water Contract
b. Wholesale Treated Water Customers are responsible for keeping Dallas
informed concerning their projected water supply needs and operating
requirements for planning, managing, and maintaining their retail water
systems to promote water conservation and efficient system operation, and
for paying adequate rates to Dallas to cover the costs incurred by Dallas in
providing service to them.
6. Rate-Setting Methodology for Wholesale Treated Water:
a. Revenue requirements are to be determined on a utility basis, at original cost,
including construction work in progress.
b. Dallas is to receive a rate of return on rate base equal to embedded interest
rate on water revenue bonds, commercial paper and other debt instruments
plus 1.5 percent, which is agreed to be an adequate return to cover its costs
and risks and as compensation for ownership and management
responsibilities.
c. All existing and future water supplies and associated facilities are to be
included in a common water rate base. Wholesale Treated Water Customers,
as a class, shall pay their proportionate share of costs for water supply,
including that portion held for future use. For the 2010 cost of service study,
Wholesale Treated Water Customers shall be allocated a percentage of total
reservoir costs based on a 10-year future use percentage calculated using a
24-year linear regression. This percentage shall be increased or decreased in
direct proportion to future changes in actual usage in conjunction with the cost
of service studies. (Dallas will pay the balance of water supply costs which
are not allocated to Wholesale Treated Water Customers under the cost of
service allocation.) Allocation of costs other than water supply costs,
including but not limited to operations and maintenance costs, shall be based
on current use.
d. Direct reuse of treated wastewater effluent is an Inside Dallas only cost and
will be allocated to Inside Dallas customers only. Indirect reuse of treated
wastewater effluent for lake augmentation will be included as a cost and as a
benefit common-to-all.
e. There will be a two part wholesale treated water rate (volume and demand),
with allocation of costs in rate design so as to encourage conservation and
efficient operation of the water systems of Dallas and its Wholesale Treated
Water Customers.
f. At the end of ten years from the Effective Date of the MOA, and each ten
years thereafter, the City of Dallas or a majority of the Wholesale Treated
Water Customers who are parties to this agreement may request a review of
the above rate-setting methodology; and if so, the methodology shall be
subject to renegotiation.
Exhibit "A" to The Colony Wholesale Treated 2
Water Contract
7. Wholesale Treated Water Rates: After the effective date of this MOA, Dallas will
prepare a cost of service study to support wholesale treated water rates and
allocations, and will submit it to the Wholesale Treated Water Customers to review
and accept prior to submission to the Dallas City Council. Except as noted herein,
the cost of service rate-setting principles will adhere to the 2009 cost of service
study, including changes that have been identified and implemented since that
date.
8. Effective Date: This MOA is effective as of December 17, 2009.
9. Term: The term of this MOA is thirty (30) years from its effective date, or until
December 16, 2039, and for such additional periods as the parties may mutually
agree upon.
10. Approved Changes: Changes in the rate-setting methodology or other conditions
may be made by mutual agreement of all parties at any time.
11. Individual Contracts: This MOA is considered a replacement of and supersedes the
1979 MOA and shall automatically be incorporated and become a part of all existing
wholesale treated water contracts without any further action or approval on the part
of the City or of the Wholesale Treated Water Customers. Rate-setting
methodology for individual contracts for wholesale treated water service between
Dallas and its Wholesale Treated Water Customers will be consistent with this
MOA. Dallas and its Wholesale Treated Water Customers will honor their existing
water service contracts until such time as the contracts are amended or superseded
by a new contract. Contracts for new Wholesale Treated Water Customers will be
consistent with this MOA.
12. Recognition of MOA Participants: The MOA renegotiation process took place over
many months during 2009 and 2010 and involved a number of meetings to discuss
possible changes, revisions, and alternatives to the existing MOA. To that end, the
City of Dallas would like to thank the individuals listed below for their outstanding
input and contributions in the MOA update and renegotiation process, without
whose help this revised document would not have been possible. Participants are
listed in the attached Appendix B.
13. Authorization to Act: By their signatures below, the representatives of Dallas and
the Wholesale Treated Water Customers state that they are authorized to enter into
this MOA. Dallas and the Wholesale Treated Water Customers will each provide
documentation that this MOA has been authorized by its respective governing body.
14. Counterparts: This MOA may be executed in any number of counterparts, each of
which shall be deemed an original and constitute one and the same instrument.
Exhibit "A" to The Colony Wholesale Treated 3
Water Contract
EXECUTED as of the l day o , 2010, on behalf of The Colony, Texas,
by it Mayor, duly authorized by Resolution No to - , adopted on the _J_~L day of
2010 and approved as to form by its City Attomey.
ATTEST:
BY
V Vk B'
fLi~21
Christie Wilson, City Secretary
CITY OF THE COLONY, TEXAS
APPROVED AS TO FORM:
BY
Jeff re, City Attorney
Exhibit "A" to The Colony Wholesale Treated 4
Water Contract
APPENDIX A
MOA - GLOSSARY OF TERMS
Allocation - The apportioning of the common-to-all cost of service.
Common-To-All - Facilities, and their associated cost, that are dedicated to providing
treated water service to both Dallas and Wholesale Treated Water Customers.
Construction Work in Progress (CWIP) - The utility's investment in facilities under
construction but not yet dedicated to service.
Demand Costs - Costs associated with providing facilities to meet peak rates of use, or
demand, placed on the system by the customers.
Depreciation - The wearing out or loss in service value of property used in utility
operations.
Depreciation Rate - The rate of loss in service value, based on the expected service
life of property.
Depreciation Reserve - The accumulated amount of the loss in service value of
property.
Direct Reuse - The use of treated wastewater effluent from Dallas' wastewater
treatment plants for non-drinking water purposes within the boundaries of the City of
Dallas.
Embedded Interest Rate - Annual interest expense expressed as a percentage of
average debt.
Indirect Reuse - The use of treated wastewater effluent from Dallas' wastewater
treatment plants for raw water supply augmentation purposes.
Inside Dallas - The group of retail treated water service customers, comprised of
residential, commercial and industrial customers served by Dallas Water Utilities.
Interest Expense - Payment made for the use of borrowed funds.
Materials & Supplies - Assets in inventory which are required to meet current
obligations and service responsibilities of the utility.
Maximum Day Demand - The maximum demand placed on the system over a 24-hour
period.
Maximum Hour Demand - The maximum demand placed on the system over a 60-
minute period on the system's maximum day.
MGD - Million gallons per day flow rate.
Exhibit "A", Appendix "A" to The Colony Wholesale Treated 1
Water Contract
APPENDIX A
MOA - GLOSSARY OF TERMS
(Page 2 of 2)
Operating Expenses - Operation and maintenance charges incurred in operating a
utility.
Original Cost - The amount of investment in facilities when first put into service.
Rate Base - Total investment dedicated to providing utility service.
Rate of Return - The percentage of return authorized to be earned on an investment
(e.g. a rate base).
Reservoir Capacity - The amount of water available from a reservoir.
Reservoir Costs - Costs incurred in acquiring and maintaining an untreated water
supply system.
ROFC - Rate of flow controller. A device limiting instantaneous flow rate to a specific
amount. Instantaneous flow rate for rate setting purposes is a per day setting.
Standby Service - Connection to wholesale treated water customer which is not
normally used, excluding bypass lines which are required by Dallas Water Utilities as a
part of an active metering facility.
Test Period (or Test Year) - Selected to be representative of the period of time over
which the new rates are expected to be in effect.
Treated Water - Raw water that has passed the purification process.
Unaccounted for Water - Water produced but not billed to customers that result from
metering inaccuracies, system leakage, and miscellaneous unmetered uses.
Volume Costs - Costs that tend to vary directly with the amount of water produced and
sold.
Water Supplies and Associated Facilities - Dallas' water supply system, including,
but not limited to, all reservoirs, indirect reuse water, and all system infrastructure.
Wholesale Cost of Service - The sum total of: (1) operating expense, (2) depreciation
expense, and (3) return on investment. Depreciation expense and rate of return are on
the original cost of investment less accumulated depreciation, capitalized interest and
contributed capital.
Wholesale Treated Water Customers - The group of water customers of the City of
Dallas which currently have a wholesale treated water contract with Dallas.
Working Capital - Assets (funds) which are required to meet current obligations and
service responsibilities of the utility.
Exhibit "A". Appendix "A" to The Colony Wholesale Treated 2
Water Contract
MOA
Addison:
Carrollton:
Cedar Hill:
The Colony:
Coppell:
Dallas/Fort Worth Airport:
Dallas County W.C.&I.D. #6:
Denton:
Desoto:
Duncanville:
Farmers Branch:
Flower Mound:
Glenn Heights:
Grand Prairie:
Grapevine:
APPENDIX B
WORKING GROUP
Randy Moravec
Lauren Clark
Bob Scott
Lori Iwanicki
David Gaines
Ruth Antebi-Guten
Tod Maurina
Chad Beach
Kim Tiehen
Jerry Dennis
Robert Rodriguez
Red Taylor
William Freeman
Tim Fisher
Isom Cameron
Tom Johnson
Frank Trando
Richard Summerlin
Dennis Schwartz
Charles Cox
Mark Pavageaux
Chuck Springer
Kenneth Parr
Judy Bell
Ron McCuller
Doug Cuny
Ramana Chinnakotla
Kent Conkle
Exhibit "A", Appendix "B", to The Colony Wholesale Treated 1
Water Contract
APPENDIX B
MOA -WORKING GROUP
(Page 2 of 2)
Irving:
Lewisville:
Red Oak:
Richardson:
University Park:
Upper Trinity Regional Water District:
Aimee Kaslik
David Cardenas
Carole Bassinger
Charles Brewer
Kent Pfeil
Keith Dagen
Kent Austin
Tom Taylor
Larry Patterson
Dallas:
Jo M. (Jody) Puckett
Bobby Praytor
Charles Stringer
Terry Lowery
Dennis Qualls
Jacqueline Culton
Tonia Barrix
Melissa Paschall-Thompson
Erica Robinson
Maria Salazar
Exhibit "A", Appendix "B", to The Colony Wholesale Treated 2
Water Contract
Exbibit B
DESCRIPTION AND MAP OF CUSTOMER'S SERVICE AREA
(CUSTOMER SHALL PROVIDE DESCRIPTIONS)
Exhibit "B" to The Colony Wholesale Treated
Water Contract
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Exhibit B
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Exhibit C
DELIVERY POINTS OF ENTRY AND METERING FACILITIES
(CUSTOMER SHALL PROVIDE DESCRIPTIONS)
Description: A. XXX Metering Station
Anticipated Future Facilities: Should additional delivery points be agreed upon in the future, this
Exhibit C will be revised to recognize these facilities.
Exhibit °C" to The Colony Wholesale Treated
Water Contract
I
Exhibit C
Exhibit C
a
W
Exhibit D
SPECIAL CONTRACT CONDITIONS/AGREEMENTS
A. OWNERSHIP AND CAPACITY RIGHTS
(1) In exchange for Customer's conveyance of title of the delivery facilities to
Dallas, Dallas agrees to continue to reserve for Customer the capacity to deliver 7.1
MGD to it through the delivery facilities. At any time, Dallas may temporarily use for
itself or others any portion of Customer's 7.1 MGD capacity which Customer is not
then using, but shall not impair its ability to deliver to customer up to 7.1 MGD when
requested by Customer. Customer's demand in any water year shall be determined
according to Article 3 of the contract.
(2) Pursuant to the Agreement for Construction of Transmission Facilities dated
July 14, 1982, attached to and made a part of this Exhibit D, and in addition to the 7.1
MGD referenced in Paragraph (1) above, Dallas reserves for Customer a first right of
refusal to purchase the final 3.0 MGD capacity in the constructed facilities. The
purchase price for the additional 3.0 MGD shall be the pro rata portion of the cost
incurred by Dallas in connection with constructing the delivery facilities, plus interest
on such portion of cost at Dallas' embedded interest rate on the date the option to
purchase the capacity is exercised.
B. RETURN FLOW
On an annual basis, Customer shall return to Dallas as treated effluent from
Customer's wastewater treatment plant 100% of the amount of water received at the
treatment plant less actual volumes used under a TCEQ approved effluent re-use
program by discharging such return flow into Lake Lewisville; provided, however,
nothing in this section shall require Customer to purchase water or pump well water
solely to meet its return flow obligation.
Exhibit " E" to The Colony Wholesale Treated 1
Water Contract
COUNCIL CHAMBER
103029
December 8, 2010
WHEREAS, The City of The Colony currently purchases wholesale treated water from
the City of Dallas, and Dallas currently delivers and sells wholesale treated water to The
Colony as set forth under the terms, covenants, and conditions stated in a Wholesale
Treated Water Contract between the Cities of Dallas and The Colony, dated November
5, 1980; and,
WHEREAS, The Colony's current contract with Dallas will expire on November 5,
2010; and,
WHEREAS, Dallas and The Colony desire to enter into a new wholesale treated water
contract; and,
WHEREAS, the term of the new 30-year Wholesale Treated Water Contract will be
November 5, 2010 through November 4, 2040; and,
WHEREAS, approval of the new contract would be in the best interest of the City of
Dallas as well as the City of The Colony; Now, Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:
Section 1. That the City Manager be and is hereby authorized to enter into a
Wholesale Treated Water Contract with the City of The Colony to purchase treated
water from the City of Dallas for the period November 5, 2010 through November 4,
2040 in the estimated annual amount of $1,500,000 after approval of the contract
documents by the City Attorney.
Section 2. That the City Controller is authorized and directed to deposit receipts for
services provided under this contract to the Water Utilities Current Fund as follows:
FUND DEPT UNIT REVENUE SOURCE
0100 DWU 7005 7849
Section 3. That this resolution shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Dallas and it is
accordingly so resolved.
APPROVL1) BY
CITY COUNCIL
t) ` -
-
,0ty Secretary
i
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2010- 0 ~ L-
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
AUTHORIZING THE MAYOR TO EXECUTE THE WHOLESALE
TREATED WATER CONTRACT BETWEEN THE CITY OF
DALLAS AND THE CITY OF THE COLONY FOR THE PURPOSE
OF ESTABLISHING MUTUAL TERMS, COVENANTS AND
CONDITIONS FOR THE PURCHASE AND SALE OF
WHOLESALE WATER; THAT THE CONTRACT IS ATTACHED
HERETO AS EXHIBIT "A"; PROVIDING AN EFFECTIVE DATE
WHEREAS, the current contract between the City of The Colony and the City of
Dallas for the purchase of wholesale treated water expires on November 5, 2010; and,
WHEREAS, the City of The Colony City Council has determined it to be in the
best interest of it citizens to execute a new contract for the purchase of wholesale treated
water from the City of Dallas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
Section 1. That the City Council of the City of The Colony, Texas hereby
approves the Wholesale Treated Water Contract between the City of Dallas and the City
of The Colony for the purpose of establishing mutual terms, covenants and conditions for
the purchase and sale of wholesale water effective November 5, 2010 through November
5, 2040.
Section 2. That the Mayor is authorized to execute the Wholesale Treated
Water Contract between the City of Dallas and the City of The Colony, which is attached
hereto and incorporated herein as Exhibit "A".
Section 3. That this resolution shall take effect immediately from and after its
passage.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 16th day of November, 2010.
A E
ristie Wilson, T C, City Secretary
APPROVED AS TO FORM:
A
Jeff Moon , City Attorney
J e McCou ,Mayor
ity of The Colony, Texa
F_ 1 -