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HomeMy WebLinkAboutResolution - 2016-R0166 - Lubbock County Water Control And Improvement District No. 1 - 05/12/2016Resolution No.2016-R0166 Item No.5.12 May 12,2016 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock,a First Amendment of Contract by and between the City of Lubbock and Lubbock County Water Control and Improvement District No. 1. for the provision of wholesale water, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this May 12.2016. GLEN^C.ROBERTSON.MAYOR ATTEST: <tA&f~*~r. Rebecca Garza.Citv Sec APPROVED AS TO CONTENT: Aubrey A.Spear,P.E..DirectorM Water Utilities 'J APPROVED AS TO FORM: Amy L .^hn > orpey Res.First Amend Contract-Lubbock County WaterControl & Improvement 4.7.16 Resolution No. 2016-R0166 FIRST AMENDMENT OF CONTRACT This First Amendment of Contract is made by and between the City of Lubbock (the "City"), a home rule municipal corporation located in Lubbock County, Texas, and the Lubbock County Water Control and Improvement District No. 1 (the "Wholesale Customer"), a conservation and reclamation district located in Lubbock County, Texas. WHEREAS, pursuant to Contract, dated on or about July 13, 1989, Resolution No. 3150 (the "Original Contract"), the City and the Wholesale Customer entered into that certain contract providing for, among other things, the purchase of water from the City by the Wholesale Customer; WHEREAS, Wholesale Customer desires to provide retail water service to retail customers not presently located within the boundaries of WHOLESALE CUSTOMER, including without limitation, within the corporate limits of WHOLESALE CUSTOMER and within certain areas generally located to the North and East of WHOLESALE CUSTOMER along East 50u' Street, Lubbock County (also known as CR 6900) beginning at City's corporate limits to the point it crosses CR 3200 and along FM 835 from the point it crosses East CR 7100 to a designated point, as approximately depicted on Exhibit `B" attached hereto; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by City and Wholesale Customer, the City and Wholesale Customer hereby agree to amend, and do amend, the Contract, as set forth below. n 1. Section 1-1 of the Original Contract is hereby deleted in its entirety and replaced with the following provision: 1-I. This Contract is made to provide access to CITY'S existing water system and to define the terms and conditions under which the CITY will construct and maintain water system capacity adequate to provide a specific volume of water for WHOLESALE CUSTOMER'S water system to make water available for property located within the boundaries of Lubbock Water Control and Improvement District No. 1, Texas as of January 1, 2016, and other lands and customers as described in Section 6-2.4, below. 2. Section 6-1.2. is hereby deleted in its entirety and replaced with the following: 6-1.2. Ouantity Quantities of water as may be required by WHOLESALE CUSTOMER not to exceed any of the following limitations: 720,000 gallons during any 24-hour period of time; or 105,000,000 gallons during any 365-day year period of time, and 105,287,671 gallons during any 366-day year period of time, as measured at the point of delivery. First Amendment of Contract Page 2 of 12 The location of the point of delivery and measuring device are shown on the vicinity map attached hereto as Exhibit "A" and made a part hereof for all purposes. The measuring device shall be located in an area reasonably accessible by CITY at all times. CITY shall install a metering station at the point of delivery and at its option may include in such metering station the following devices: (1) a flow rate controller; (2) an instantaneous flow meter; (3) a peak hourly flow meter; and (4) a cumulative volume totalizing meter, said devices being operable by CITY at the master metering station and remotely from within CITY. The volumes specified in this paragraph shall be subject to and limited by the CITY'S power to conserve and ration water as provided by Sections 6-2.6 and 6-3.1 of this Contract and shall be contingent upon completion of facilities necessary or convenient to deliver the water from the CITY'S existing facilities to the point of delivery. WHOLESALE CUSTOMER shall pay CITY as described in paragraph 6-2.2 of this Contract. Title to the water delivered by CITY to WHOLESALE CUSTOMER shall change at the measuring device as provided by paragraph 6- 3.5 of this Contract. 3. Section 6-2.2. is hereby deleted in its entirety and replaced with the following: 6-2.2. Rates and Payment Due WHOLESALE CUSTOMER shall pay to the CITY no later than the due date specified in the statement for water delivered pursuant to the terms of this Contract the base rate, as described below, and the volume rate, as described below. The base monthly rate for the meter installed at the point of delivery shall Fist Amendment of Contract Page 3 of 12 be equal to the rate established by the City Council of the City of Lubbock (City of Lubbock ) for meter of equal size as set forth in Section 22.03.084 of Code of Ordinances of the City of Lubbock, as may be amended from time to time. The volume rate charged for water provided shall be 81.17% of the rate established by the City Council of the City of Lubbock charged to commercial customers as set forth in Section 22.03.085 of the Code of Ordinances of the City of Lubbock, as may be amended from time to time, by the City Council of the City of Lubbock. 4. Section 6-2.4. is hereby deleted in its entirety and replaced with the following: 6-2.4. Service To and Definition of Retail Customers WHOLESALE CUSTOMER shall limit service to retail customers within the defined service area of the WHOLESALE CUSTOMER as described below, same being approximately depicted on Exhibit `B", attached hereto. The defined service area as shown is (i) the boundaries of the Lubbock County Water Control and Improvement District No. 1 Senate Bill 1715 and (ii) certain areas outside of the boundaries of the Lubbock County Water Control and Improvement District No. 1, as described on Exhibit "B", attached hereto (collectively, the "Defined Service Areas"). A retail customer is defined as a single or multiple family dwelling, a campus of an independent school district of the State of Texas, or a single commercial customer. The limitations upon service to retail customers within the Defined Service Areas shall apply to water delivered by CITY to WHOLESALE CUSTOMER and water received by First Amendment of Contract Page 4 of 12 WHOLESALE CUSTOMER from any other source, specifically including, but not limited to, WHOLESALE CUSTOMER'S wells. For purposes of this Contract, a commercial customer is a customer of WHOLESALE CUSTOMER which uses the water for purposes other than household or school use. Notwithstanding anything contained herein to the contrary, a retail customer shall not include any party engaged in the water supply business. The WHOLESALE CUSTOMER shall prohibit the resale or transfer of water delivered by the CITY under this Contract by any of WHOLESALE CUSTOMER'S retail customers to any other party, unless the written consent of the CITY is obtained in advance. Any service to retail or commercial customers located outside the corporate limits of WHOLESALE CUSTOMER, but within the Defined Service Areas, as depicted in Exhibit B, shall be permitted only upon approval by the CITY's City Council. Further, WHOLESALE CUSTOMER agrees that it shall provide service for any retail or commercial customers located within the Defined Service Areas upon request by the CITY. Water provided to WHOLESALE CUSTOMER shall be delivered to one or more of the points of delivery described in Exhibit "A". WHOLESALE CUSTOMER shall be responsible for any costs for the provision of water within its corporate limits, including, but not limited to, any costs associated with the construction and maintenance, at all times, of any and all pipe lines or other infrastructure necessary to deliver the wholesale water within WHOLESALE CUSTOMER's corporate limits and that the City of Lubbock shall be under no obligation whatsoever to bear any of said expenses aforementioned. First Amendment of Contract Page 5 of 12 Any costs and responsibilities for the provision of water within the Defined Service Areas, as described above, shall be negotiated between the parties at the time upon request by the CITY for provision of such water. Said costs may be apportioned between the parties and/or third parties upon mutual agreement of WHOLESALE CUSTOMER and the City. 5. Section 6-2.4.13. Authorization of Service, is hereby added to the Original Contract, as follows: 6-2.4.13. Authorization of Service WHOLESALE CUSTOMER hereby represents and warrants to CITY that it has obtained all necessary authorizations and consents required by the Texas Commission on Environmental Quality, or its successors, and any other governmental agency having jurisdiction over such matters, to serve all customers authorized to be served within the Defined Service Areas. It is expressly stipulated by WHOLESALE CUSTOMER that this Contract does not constitute valid authorization, of any kind or type, from any regulatory authority having jurisdiction over such matters, for providing retail water service in the Defined Service Areas by WHOLESALE CUSTOMER. 6. Section 6-2.5. is hereby deleted in its entirety and replaced with the following: 6-2.5. Sanitary Control A Reduced Pressure Zone (R.PZ) prevention device or air gap shall be maintained at all times by the WHOLESALE CUSTOMER at the point of delivery (i.e., First Amendment of Contract Page 6 of 12 between the two (2) systems). Where applicable, all costs associated with the installation and maintenance of this backflow prevention device shall be the sole responsibility of the WHOLESALE CUSTOMER. The plans of such RPZ prevention device or air gap shall be approved in writing by the CITY and any and all regulatory agencies with appropriate jurisdiction, including the Texas Commission of Environmental Quality. At no time shall a by-pass be installed on or around the backflow prevention device. WHOLESALE CUSTOMER may allow service by direct pressure, if available, from the CITY's line to the point of delivery. However, the CITY is under no obligation to provide water at any pressure above and over pressures necessary to deliver the quantities of water described in Section 6-1.2, above. The City agrees that it will provide the minimum pressure required by the Texas Commission on Environmental Quality under normal operating conditions at the point of delivery. The WHOLESALE CUSTOMER shall permit personnel of the CITY's staff to enter upon the property of the WHOLESALE CUSTOMER for the purpose of inspecting any and all facilities of both parties relating to and regarding necessary sanitary control. Should the CITY have reasonable grounds to believe that any condition exists which might result in contamination of the CITY's water supply or jeopardize any of their certifications with the Texas Commission on Environmental Quality and/or any other federal, state, or local regulatory permits or certifications, then the CITY shall notify the WHOLESALE CUSTOMER. First Amendment of Contract Page 7 of 12 The WHOLESALE CUSTOMER shall immediately correct such condition. In the event the WHOLESALE CUSTOMER fails to correct such condition then the CITY may, at its sole discretion, either correct the condition, at the WHOLESALE CUSTOMER'S expense, and include the cost of materials and labor in subsequent billing statements or cease delivering water until such condition is corrected to the satisfaction of the City of Lubbock. In the event the CITY determines that contamination of its water supply actually exists, the CITY shall have the absolute right to discontinue service to the WHOLESALE CUSTOMER until such time as said contamination has been eliminated by the WHOLESALE CUSTOMER. Nothing herein shall be construed to impose upon the CITY the duty and obligation to make any inspection or to regulate the quality of water beyond the point of delivery to the WHOLESALE CUSTOMER, and the WHOLESALE CUSTOMER shall be solely responsible for the operation, maintenance, regulation, employment and prudent management of all facilities beyond the point of delivery and the use and delivery of water herein to the citizens of the WHOLESALE CUSTOMER. The WHOLESALE CUSTOMER water system operators should be aware that any water received from the CITY will contain chloramines disinfectant. As such, the WHOLESALE CUSTOMER should adjust their disinfection system operations and monitoring for chloramines accordingly. Since 1983, the CITY has utilized chloramines as its water system disinfectant. This practice is common for larger cities in Texas and throughout the United States. The use of chloramines reduces the levels of disinfection byproducts (DBPs) in the system, First Amendment of Contract Page 8 of 12 while still providing protection from waterborne disease. If these chloramines are passed on to the water customers of the WHOLESALE CUSTOMER, the WHOLESALE CUSTOMER should notify them of the following: Chloramines can cause problems to persons dependent on dialysis machines. A condition known as hemolytic anemia can occur if the disinfectant is not completely removed from the water that is used for the dialysate. Consequently, the pretreatment scheme used for dialysis units must include some means, such as a charcoal filter, for removing the chloramines. Medical facilities should also determine if additional precautions are required for other medical equipment. Chloraminated water may be toxic to fish. Fish tank owners, must make sure that the chemicals or filters used are designed for use in water that has been treated with chloramines. The type of filter used for fish tanks may also need to be changed. 7. Section 6-2.6. is hereby deleted in its entirety and replaced with the following: 6.2.6. Water Conservation In the event CITY is required to implement its Water Conservation and/or Drought Contingency Plan for its system then in such event WHOLESALE CUSTOMER shall receive the same water allotment under such plan as any other customers of similar size and water needs served by CITY. WHOLESALE CUSTOMER shall adopt, develop, implement and maintain water conservation and drought contingency plans, programs, and rules incorporating loss -reduction measures and management practices, techniques, and technologies at least as promotional of conservation as such plans, programs and rules as developed and adopted by CITY. Such plans shall be designed to reduce the consumption of First Amendment of Contract Page 9 of 12 water, reduce the loss or waste of water, improve the efficiency in the use of water, and increase the recycling and reuse of water. WHOLESALE CUSTOMER agrees that if water supplies or services are curtailed within CITY, CITY may impose a like curtailment on deliveries to WHOLESALE CUSTOMER, and WHOLESALE CUSTOMER will cooperate by implementing the appropriate stages of their water conservation plan and/or drought contingency plan imposing such conservation measures. Additionally, in case of a shortage of water resulting from drought, the water to be distributed shall be divided among customers in accordance with Texas Water Code, § 11.039, as same may be amended from time to time. CITY'S obligations under this Contract shall be subject to water conservation plans and drought contingency plans adopted by CITY or required or approved by the Texas Commission on Environmental Quality, or any other or additional federal, state, or local regulatory district or entity with power to require or approve water conservation and drought contingency plans. WHOLESALE CUSTOMER shall develop and implement a water conservation plan or water conservation measures using the applicable elements of Title 30, Chapter 288, of the Texas Administration Code, and any successor regulations thereto. 8. Section 6-4. is hereby deleted in its entirety and replaced with the following: The expiration date of this Contract shall be until August 18, 2038. WHOLESALE CUSTOMER is given an option and contract for an additional period of thirty (30) years provided that at least twenty-four (24) months prior to First Amendment of Contract Page 10 of 12 the expiration of the initial term of this Contract, CITY and WHOLESALE CUSTOMER, in good faith begin to negotiate another contract pertaining to purchase of water from CITY by WHOLESALE CUSTOMER containing mutually agreeable terms and conditions. If another contract is not consummated, CITY shall not terminate service until WHOLESALE CUSTOMER has had a reasonable time (such time not to exceed two (2) years), in which to procure alternate services and this Contract shall remain in force until WHOLESALE CUSTOMER procures alternative service or the expiration of the two (2) years, whichever event occurs first. 9. Exhibit `B" of the Original Contract is hereby deleted in its entirety. 10. Except as expressly amended by this First Amendment, all terms and provisions of the Contract shall remain in full force and effect as originally provided therein. Executed and effective this the 12th day of May , 2016. First Amendment of Contract Page 11 of 12 CITY OF LUBBOCK: GLEN ROBE SON, MAYOR ATTEST: Bec y Garza, City Secretary APPROVED Q LUBBOCK COUNTY WATER CONTROL & IMPRP-VEMENT DISTRICT O. 1 MADEWELL,GENERAL MANAGER ATTEST: k 2fld ,District Secretary Works Aubrey A. Sp*, P.E., Direct r of Water Utilities I\a9;kelywl7X1Ci]Mix4U" Alfry Sit s, "`ant C tt ney First Amendment of Contract Page 12 of 12 e a LOOP 289 $a F3e sorH sr ry duos ZesA y 289 4. IVE 54 �Qa>� 0 a e3 cnv 6g 6`a sA�^p dZ 6sc 3 W n36D y E'R:NINb O ^C�6y 3 pe3> " C� 1 O a �a g? 63'v e � y Z 9 sA O H N "q Wo d� y y 3 r) O 0 'm+1 A C�y61 ydJ� tz >n y zy��o� z [+1 M 5y �y NO �i lyl1 lJ <J O 2 tA n S m �1 T o m uC] Mr 7 {NOSNVN D 4 p n m i l/ �•i" A ?a� < 02 m No Text