HomeMy WebLinkAboutResolution - 3979 - Amendment Ot Contract - SWPS Company - Sale & Purchase Of Treated Effluent - 09_24_1992Resolution No. 3979
September 24, 1992
Item #34
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Amendment
to the Contract for Sale and Purchase of Treated Sewage Effluent between
the City of Lubbock and Southwestern Public Service Company, attached
herewith, which shall be spread upon the minutes of the Council and as
spread upon the minutes of this Council shall constitute and be a part of
this Resolution as if fully copied herein in detail.
Passed by the City Council this
ATTEST:
anegie boys, ulty 5ecreta
APPROVED AS TO CONTENT:
Carroll McDonald, Assistan City
Manager of Utilities
APPROVED AS TO FORM:
D a G. Vandiver, First
Assistant City Attorney
DG V :da/AGENDA-D3 /A-SPS. res
September 14, 1992
Resolution No. 3979
September 24, 1992
Item #34
F MI 1 SJ ,
This Amendment is made and entered into this 1st day of October, 1992, to the Contract
for Sale and Purchase of Treated Sewage Effluent dated May 1, 1968 (the "Agreement")
between the CITY OF LUBBOCK ("Lubbock") and SOUTHWESTERN PUBLIC SERVICE
COMPANY ("Company").
NOW, THEREFORE, in consideration of the mutual promises herein contained and the
mutual benefits to be obtained the City and the Company agree to amend the Agreement as
follows:
1. ARTICLE III - RATE AND PAYMENT shall be deleted in its entirety and
replaced with the following:
ARTICLE III - RATE AND PAYMENT
3.1 Company shall pay City the following total price per one thousand
(1,000) gallons of sewage effluent water delivered by City under the terms of this
Agreement:
Base Rates
(a.) Thirty-six cents (.36C) per one thousand (1,000) gallons for the first one
billion four hundred forty million (1,440,000,000) gallons delivered each
contract year.
(b.) Twenty-five cents (.25C) per one thousand (1,000) gallons in excess of one
billion four hundred forty million (1,440,000,000) gallons delivered each
contract year.
3.2 The Base Rates per one thousand (1,000) gallons of sewage effluent
water set forth in Section 3.1 shall be adjusted for the contract year commencing
October 1, 1993, and annually thereafter (Annual Adjustment Date) as follows:
Base Rate Adjustments
R = A(.513 + .5D)
C E
MUM
A = each base rate charged for sewage effluent water in the year
preceding the Annual Adjustment Date (Annual Adjustment Year).
B = the weighted average cost per kilowatt hour of electric energy
delivered by SPS to LP&L during the Annual Adjustment Year.
C = the weighted average cost per kilowatt hour of electric energy
delivered by SPS to LP&L during the year immediately preceding
the Annual Adjustment Year.
D = Consumer Price Index Revised -Urban Wage Earners and Clerical
Workers (CPI-W) for the Annual Adjustment Year as published in
September.
E = the CPI-W for the year immediately preceding the Annual
Adjustment Year as published in September.
R = the Adjusted Base Rate.
3.3 If the City delivers sewage effluent water that fails to meet the quality
standards set forth in ARTICLE VII - QUALITY, the following rates and
penalties will apply:
(a.) For all sewage effluent water delivered by the City that has a pH
lower than 6.0 or higher than 9.0 as determined by grab sample or continuous
monitoring by the Company at the Delivery Point, the Company will only pay the
City a total price of one cent (1C) per one thousand (1,000) gallons.
(b.) For all sewage effluent water delivered by the City on or before
December 31, 1994, that fails to conform to the quality standard for suspended
solids (SS) or biochemical oxygen demand (BOD) set forth in ARTICLE VII -
QUALITY, subparagraphs b. and d., except that such samples shall be taken at
the City of Lubbock Wastewater Treatment plant's effluent sump, by 24-hour
composite sampling, analyzed by standard methods in the City's laboratory, and
as reported to the Texas Water Commission, the following percentage penalties
shall apply to reduce the Base Rates or Adjusted Base Rates then in effect:
SS or BOD Penalty
45-50 ppm
10%
51-55 ppm
20%
56-60 ppm
30 %
61-70 ppm
50%
70 + ppm
100 %
N
(c.) For all sewage effluent water delivered by the City on or after
January 1, 1995, that fails to conform to the quality standard for suspended solids
(SS) or biochemical oxygen demand (BOD) set forth in ARTICLE VII -
QUALITY, subparagraphs b. and d., except that such samples shall be taken at
the City of Lubbock Wastewater Treatment plant's effluent sump, by 24-hour
composite sampling, analyzed by standard methods in the City's laboratory, and
as reported to the Texas Water Commission, the following percentage penalties
shall apply to reduce the Base Rates or Adjusted Base Rates then in effect:
SS or BOD Penalty
25-30 ppm
10 %
31-35 ppm
20 %
36-40 ppm
30%
41-50 ppm
50%
50 + ppm
100 %
(d.) For all sewage effluent water delivered by the City on or after
January 1, 1995, that fails to conform to the quality standards for residual
chlorine set forth in ARTICLE VII - QUALITY, subparagraph c., a 50% penalty
will apply.
(d.) If sewage effluent water delivered by the City fails to conform to
more than one of the quality standards set forth in ARTICLE VII - QUALITY,
the penalty that reduces the price the greatest amount will apply. However, the
amount of the penalty shall not exceed 100 % .
2. ARTICLE V - MINIMUM CHARGE shall be deleted in its entirety and replaced
with the following:
ARTICLE V - MINIMUM CHARGE
5.1 The quantity of sewage affluent water delivered and accepted shall at all
times be within the control of the Company; provided, however, the Company shall take
and pay for or pay for if not taken a minimum of one billion four hundred forty million
(1,440,000,000) gallons each contract year from and after October 1, 1992. The
Company shall pay the rate specified in this Amendment for the quantity of sewage
effluent water used and the same rate for the remainder of its minimum quantity
obligation. However, if the Company demands and the City is unable to deliver due to
force majeure at least seven million (7,000,000) gallons a day, the Company's minimum
obligation (1,440,000,000) for the year shall be reduced by the amount of gallons up to
seven million (7,000,000) gallons for each day that the Company demands and the City
is unable to deliver that quantity unless the City provides other water that meets the
minimum quality standards set forth in ARTICLE VII - QUALITY. If the City makes
other water available for delivery that satisfies both the quality and quantity requirements
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of this Agreement, the Company's annual minimum quantity obligation shall not be
reduced.
5.2 If for any reason other than force majeure the City fails to deliver upon
demand by the Company at least seven million (7,000,000) gallons a day, the Company's
minimum obligation (1,440,000,000) for the year shall be reduced by seven million
(7,000,000) gallons, without reduction for any lesser amount actually delivered, for each
day that the Company demands and the City fails to deliver at least seven million
(7,000,000) gallons unless the City provides other water that meets or exceeds the
minimum quality standards set forth in ARTICLE VII - QUALITY and satisfies the
City's deliverability obligation under this Agreement. The foregoing reduction of the
Company's minimum obligation for the year shall be in addition to any and all remedies
at law or equity available to the Company for City's failure to satisfy the daily
deliverability obligation.
3. The terms and conditions of the Agreement not changed by this Amendment shall
remain in full force and effect.
4. In the event of any inconsistency between the Agreement and this Amendment the
inconsistency shall be resolved in favor of this Amendment.
The parties have caused this A
representatives as of the date first above written
SOUTHWESTERN PUBLIC SERVICE
COMPANY
enry Hamilton
Vice President, Production
8930327\wK\2A
executed by their duly authorized
IM
City Secretary
Ranette Boyd
Approved as to Form:
first Assistant City Attorney
Donald G. Vandiver
Approved as to Content:
By:
Assistant City Manager
Carroll McDonald
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