HomeMy WebLinkAboutResolution - 4631 - Water Sales Contract - Cith Of Shallowater - 10/13/1994Resolution No. 4631
October 13, 1994
Item #36
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 a Water Sales Contract by and between the City
of Lubbock and the City of Shallowater, 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:
Betty Johnson, City Secretary
APPROVED AS TO CONTENT:
Terry Ellerbr,6ok, Interim Director of Water
Utilities
APPROVED AS TO FORM:
Attorney
DGV.js/SHALOWTR.RES
ccdocs/March 11, 1994
Resolution No. 4631
October 13, 1994
Item #36
WATER SALES CONTRACT
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK §
This Contract is made by and between the CITY OF LUBBOCK (herein called
"LUBBOCK"), a municipal corporation located in Lubbock County, acting by and through its
Mayor as authorized by specific action of its City Council; and the CITY OF SHALLOWATER
(herein called "SHALLOWATER"), a municipal corporation located in Lubbock County, acting
by and through its Mayor as authorized by specific action of its City Council.
WITNESSETH:
WHEREAS, this Contract is made to provide access to LUBBOCK'S existing water sys-
tem and to define the terms and conditions under which LUBBOCK will provide a specific
amount of water to SHALLOWATER'S water system to make such water available to
SHALLOWATER'S water customers; and
WHEREAS, this Contract is entered into as the result of a request from
SHALLOWATER that LUBBOCK provide water at a point where SHALLOWATER will con -
nett to it's municipal water distribution system; NOW THEREFORE:
For and in consideration of the mutual agreement, covenants, obligations, and benefits
herein expressed LUBBOCK and SHALLOWATER contract and agree as follows:
1
ARTICLE I
GENERAL PROVISIONS
All words and phrases used in this Contract shall be construed in accordance with their
definitions as are commonly used at the time this contract is executed.
2. SHALLOWATER APPLICATION FOR WATER SERVICE
SHALLOWATER hereby requests LUBBOCK to furnish water service by providing
access to its existing water system. SHALLOWATENS water system is located near
LUBBOCK'S Sandhills Supply Line as described in Exhibit "A" of this Contract.
3. TERMS, PROVISIONS AND CONSIDERATIONS
LUBBOCK agrees to furnish such service and will perform as required by the terms of this
Contract in consideration of the commitments made by SHALLOWATER to LUBBOCK under
the terms of this Contract.
ARTICLE II
CONDITIONS OF PROVIDING SERVICE
I. LUBBOCK SHALL FURNISH FACILITIES
LUBBOCK shall furnish its existing water conveyance system facilities and construct a
water tap and such metering facilities as are necessary to receive water produced by LUBBOCK'S
water system and to provide water service and delivery to SHALLOWATER'S potable water
system at the location described in Exhibit "A" under the following conditions:
2. QUALITY AND TREATMENT
LUBBOCK will provide potable water of similar quality supplied to citizens and residents
of the CITY of Lubbock, Texas treated by disinfectants and such other treatment as may in the
future be directed by appropriate regulatory agencies and meeting the applicable quality standards
of the Texas Natural Resources Conservation Commission and other local, State and Federal
governmental agencies at the point of delivery during the term of this Contract or of any renewal
or extension thereof. CITY may furnish such supply out of surface water, ground water, or both,
at its discretion.
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 2
3. OUANTITY
LUBBOCK shall deliver a maximum of 1,000,000 gallons during any 24 hour period of
time or 365,000,000 gallons during any 365 day period of time to SHALLOWATER'S point of
delivery. All water quantities delivered shall be measured at the point of delivery. The points of
delivery will be at a measuring device located within 100 feet of a connection to LUBBOCK'S
water conveyance system. The measuring device shall be located in an area reasonably accessible
by LUBBOCK at all times. LUBBOCK shall install a metering station at the point of delivery and
at its option may include equipment in such metering station devices to: (1) control the rate of
flow; (2) measure the instantaneous flow of gallons per day; (3) measure peak hourly flow during
the day of maximum flow in gallons per day; (4) measure the cumulative volume of water taken;
and (5) control changes in the rate of flow, said devices being operable by LUBBOCK at the
metering station and remotely from within LUBBOCK. Deliveries shall be contingent upon
completion of facilities necessary or convenient for LUBBOCK to deliver water to
SHALLOWATER from LUBBOCK'S existing water conveyance system to SHALLOWATER'S
point of delivery. SHALLOWATER shall be required to pay all costs of materials and labor nec-
essary to effectuate this contract, including necessary piping, meters and appurtenances, and
installation. These reimbursements for the costs of connection, if constructed, shall be made to
LUBBOCK regardless of whether SHALLOWATER actually takes delivery of water under this
Contract.
4. POINT OF DELIVERY
WATER provided to SHALLOWATER shall be delivered to the point of delivery de-
scribed in Exhibit "A". Water passing through the flow meter at the point of delivery shall
become the property and responsibility of SHALLOWATER.
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 3
5. METERING EQUIPMENT
LUBBOCK will provide the installation and maintenance of the necessary metering
equipment, and required devices of standard type for properly measuring the quantity of water
delivered to SHALLOWATER. Calibration of such metering equipment shall be done on a rea-
sonable time schedule, but not less frequently than once every twelve (12) months, or more
frequently than once every three (3) months. A meter registering not more than three percent
accuracy above or below the test result shall be deemed to be accurate. The previous readings of
any meter disclosed by test to be inaccurate beyond the acceptable range of plus or minus three
percent shall be corrected in accordance with the percentage of inaccuracy found by such tests for
a period extending back one-half (1/2) of the time elapsed since the last calibration date but, in no
event, further back than a period of six (6) months. If the meter is out of service or out of repair
so that the amount of water delivered cannot be ascertained or computed from the reading
thereof, the water delivered during the period such meter is out of service or out of repair shall be
estimated upon the basis of the best data available. The metering equipment register shall be read
by LUBBOCK at least once a month. Metering equipment, valves, and other appurtenances
associated with the metering installation shall be the property of LUBBOCK.
6. BILLING PROCEDURE
A monthly statement of the amount of water determined to be delivered to
SHALLOWATER through the meter at the point of delivery during the preceding month shall be
mailed to SHALLOWATER. All statements for water delivered shall be due and payable from
current revenues available to SHALLOWATER fifteen (15) days after the issuance of said state-
ment. A late payment charge of five percent (5%) shall be charged to SHALLOWATER if said
SHALLOWATER fails to pay its bill on or before thirty (30) days from date of the bill. In the
event SHALLOWATER fails to pay its statement in full on or before the expiration of thirty (30)
days from the date of issuance of said statement that, in such event, interest shall be added to said
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 4
statement at the maximum lawful rate of interest on pre judgment debts in the State of Texas from
such date aforementioned until said statement is paid in full. If payment is not received by
LUBBOCK within thirty (30) days after the due date, the statement shall be deemed delinquent.
LUBBOCK shall notify SHALLOWATER in writing when any such payment shall become delin-
quent, and if such delinquency is not removed within thirty (30) days after the sending of such
written notice, LUBBOCK may, at its discretion, cease deliveries of water to SHALLOWATER
under the terms of this Contract. After water has ceased to be provided, LUBBOCK may, at its
discretion, notify SHALLOWATER of its intention to declare this Contract forfeited and null and
void. Upon such notice, SHALLOWATER shall have thirty (30) days to pay all delinquent
charges, reconnect charges, and penalties in order to reinstate water services prior to final action
by LUBBOCK declaring this Contract forfeited and null and void. Upon LUBBOCK declaring
this Contract forfeited and null and void, LUBBOCK shall sever and/or remove all connections to
LUBBOCK'S water system for delivery of water under this Contract.
ARTICLE III
CONDITIONS OF RECEIVING SERVICE
1. SHALLOWATER'S FACILITIES
SHALLOWATER agrees and understands that it will install and maintain, at its sole
expense, all facilities necessary for SHALLOWATER to operate its water system from the point
of delivery as described in this Contract and that LUBBOCK shall be under no obligation whatso-
ever to bear any of said expenses aforementioned. After installation of the meter facilities by
LUBBOCK, SHALLOWATER shall not alter, modify, or change the meter facilities under any
circumstances.
2. RATES AND PAYMENT DATE
SHALLOWATER shall pay to LUBBOCK, no later than the due date specified in the
statement for water conveyed pursuant to the terms of this Contract, those charges for water
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 5
provided as set forth within this Contract. The base monthly rate for the meter installed at the
point of delivery shall be equal to the rate established by the City Council of the City of Lubbock
for meters of equal size. The flow rate charged for water provided shall be equal to the rate
charged to Reese Air Force Base, as established by the City Council of the City of Lubbock. The
rates for water service will be adjusted on periodically by LUBBOCK. In the event LUBBOCK
deems it necessary to adjust the rate for water service pursuant to this Contract, LUBBOCK shall
furnish SHALLOWATER with a revised rate not less than sixty (60) days prior to the effective
date thereof. SHALLOWATER shall have the option of accepting the revised rate or terminating
water services under this Contract. The rates charged do not imply or include service by
LUBBOCK beyond LUBBOCK'S point of delivery; it being the intent of this Contract that all ex-
penses on SHALLOWATER'S side of the point of delivery as defined in this Contract shall be the
sole expense of SHALLOWATER.
3. SANITARY CONTROL
SHALLOWATER shall maintain at all times an air gap between LUBBOCK'S pressurized
system and SHALLOWATER'S water distribution system of not less than twice the diameter of
the pipe from the point of delivery to SHALLOWATER reservoir. SHALLOWATER shall not
allow service by direct pressure from the LUBBOCK'S supply line. SHALLOWATER shall
permit personnel of LUBBOCK to enter upon the property of SHALLOWATER for the purpose
of inspecting any and all facilities to determine whether SHALLOWATER is maintaining the
required air gap. Should LUBBOCK have reasonable grounds to believe that any condition exists
which might result in contamination of LUBBOCK'S water supply or jeopardize LUBBOCK'S
certification with the Texas Natural Resources Conservation Commission or other federal, state
or local regulatory authorities, then LUBBOCK shall notify SHALLOWATER and
SHALLOWATER shall immediately correct such condition. In the event SHALLOWATER fails
to correct such condition the LUBBOCK may, at its sole discretion, which shall not be unreason -
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 6
ably exercised, either correct the condition, at SHALLOWATER'S expense, and include the cost
of materials and labor in subsequent billing statements from LUBBOCK to SHALLOWATER or
cease delivering water under this Contract until such condition is corrected to the satisfaction of
the LUBBOCK. In the event LUBBOCK determines that contamination of LUBBOCK'S water
supply by SHALLOWATER exists, LUBBOCK shall have the absolute right to discontinue serv-
ice to SHALLOWATER until such time as said contamination has been eliminated by
SHALLOWATER. Nothing herein shall be construed to impose upon LUBBOCK the duty and
obligation to make any inspection or to regulate the quality of water beyond LUBBOCK'S meter-
ing point to SHALLOWATER and SHALLOWATER shall be solely responsible for the
operation, maintenance, regulation and employment of all facilities beyond the metering point, and
the regulation of the use of all water received by it at the metering point.
4. WATER CONSERVATION
In the event LUBBOCK is required to implement a water conservation and rationing plan
for its system then in such event SHALLOWATER shall receive the same water allotment under
such plan as any other customer served by LUBBOCK. SHALLOWATER shall cooperate with
and assist LUBBOCK in developing, implementing and maintaining water conservation plans,
programs, and rules incorporating loss -reduction measures and management practices, techniques,
and technologies designed to insure that water made available under this Contract is used in an
economically -sensitive manner and designed to reduce the consumption of water, reduce the loss
or waste of water, improve the efficiency in the use of water, and increase the recycling and reuse
of water. SHALLOWATER agrees that if water supplies or services are curtailed within
LUBBOCK, LUBBOCK may impose a like curtailment on deliveries to SHALLOWATER and
SHALLOWATER will cooperate by imposing conservation measures upon its sales.
LUBBOCK'S obligations under this Contract shall be subject to water conservation plans and
drought contingency plans adopted by LUBBOCK or required or approved by the Texas Natural
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 7
Resources Conservation Commission, the Texas Water Development Board, or any other or
additional federal, state, or local regulatory authority with power to require or approve water
conservation and drought contingency plans.
ARTICLE IV
MUTUAL CONDITIONS
1. FAILURE TO DELIVER
LUBBOCK does not warrant that the services provided for in this Contract will be free
from interruption or stoppage caused by maintenance, repair, substitution, renewal, replacement
or improvement of any of the equipment involved in the furnishing of any such services or caused
by the changes of services, alterations, strikes, lockouts, labor controversies, accidents, or acts of
God, the elements, or any other cause beyond the reasonable control of LUBBOCK. In the event
of a shortage of water, or if distribution of water by LUBBOCK to SHALLOWATER is deemed
inappropriate by any regulatory agency or law, the supply of water to SHALLOWATER under
this Contract shall be reduced or ceased as deemed necessary by LUBBOCK to protect its own
interests and comply with all rules and regulations of any regulatory agency having jurisdiction
over the operation of LUBBOCK'S facilities.
2. REGULATORY AGENCIES
This Contract is subject to all applicable federal, state, and local laws and any applicable
ordinances, rules, orders, and regulations of any local, state or federal governmental authority
having or asserting jurisdiction. However, nothing contained in this Contract shall be construed
as a waiver by any party to the Contract of any right to question or contest any law, order, rule or
regulation which may affect the terms and conditions of this Contract in any forum having
jurisdiction, and SHALLOWATER and LUBBOCK each agree to make a good faith effort to
support proposed laws and regulations which would be consistent with the performance of this
Contract in accordance with its terms.
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 8
3. MISCELLANEOUS CONDITIONS
All the situations, promises, undertakings and Contracts herein contained by or on behalf
of either LUBBOCK or SHALLOWATER shall bind the successors and assigns of either party,
whether so expressed or not; but neither LUBBOCK nor SHALLOWATER shall have the right
to assign this Contract, or any part thereof except as hereinafter provided without the written
consent of the other party. Either party may waive any default on the part of the opposite party
affecting any other provision of the Contract, but a waiver of any one default shall not be deemed
a waiver of any other or subsequent default or defaults. No delay by either party in enforcing any
of its rights under this Contract shall be deemed a waiver of such rights. LUBBOCK and
LUBBOCK'S agents have made no representation or promises with respect to the water services
except as herein expressly set forth, and no rights, easements, entitlements, or licenses are ac-
quired by SHALLOWATER by implication or otherwise except as expressly set forth in this
Contract.
4. NOTICE OF VIOLATION
In the event that either LUBBOCK or SHALLOWATER should violate any of the terms
of this Contract the other party shall promptly notify the other respective party of the violation.
Unless this Contract provides otherwise, in the event said violation is not cured within thirty (30)
days after the sending of such notice, the party sending the notice may at its discretion notify the
other party of its intention to declare this Contract forfeited and null and void. Except as other-
wise provided by this Contract, upon receiving such notice the delinquent party shall have thirty
(30) days to cure said violation prior to final action by the other party declaring this Contract for-
feiting and null and void. Any notice required under the terms of this Contract shall be in writing
and shall be delivered by certified mail, addressed to LUBBOCK or SHALLOWATER. If the
default cannot be cured within the thirty (30) day period, the length of the period shall be
extended for a reasonable period of time, if the delinquent party commences curing the violation
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 9
within the thirty day period and continues the curing of the violation with due diligence and conti-
nuity.
5. TERM OF CONTRACT
The term of this Contract shall be a period of fifteen (15) years from its effective date.
SHALLOWATER is given an option extend this contract for a like period provided that at least
twelve (12) months prior to the expiration of the initial term of this Contract, SHALLOWATER
notifies LUBBOCK of its desire to extend the Contract upon mutually agreeable terms and con-
ditions. If an extension is not consummated, LUBBOCK shall have the option to terminate water
service to SHALLOWATER and sever all connections to SHALLOWATER'S water distribution
system.
6. WAIVER
No failure on the part of LUBBOCK at any time to require the performance by
SHALLOWATER of any portion of this Contract shall in any way affect LUBBOCK'S right to
enforce such provision or any other provision. Nor shall any waiver by LUBBOCK of any provi-
sion hereof be taken or held to be a waiver of any other provision hereof or any other breach
hereof. No rights under this Contract may be waived and no modification or amendment to this
Contract may be made except by written amendment executed by the parties. No officer or agent
of SHALLOWATER or LUBBOCK is authorized to waive or modify any provision of the Con-
tract. No modifications to or rescission of this Contract may be made except by a written
document signed by LUBBOCK'S and SHALLOWATER'S authorized representatives.
7. HEADINGS
All headings in this Contract have been inserted for convenient reference only and shall not
in any manner be construed as modifying, amending, or affecting in any way the express terms and
provision hereof.
WATER SALE CONTRACT
CITY OF SHALLOWATER - PAGE 10
8. APPLICABLE LAW
This Contract shall be construed under the laws of the State of Texas and all obligations of
the parties hereunder are performable in Lubbock County, Texas.
9. EFFECTIVE DATE
This Contract shall be effective and binding between the parties hereto on date of execu-
tion by both parties.
10. MAILING ADDRESSES FOR NOTICE
CITY OF SHALLOWATER CITY OF LUBBOCK
P. O. Box 246 P. O. Box 2000
Lubbock, Texas 79463 Lubbock, Texas 79457
ATTN: m �:� e i e _ �Y) Ay'4 ,r ATTN: Terry Ellerbrook
Interum Director of Water Utilities
EXECUTED as of the 13 th day of
THE CITY OF SHALLOWATER
BY:
MAYOR
ATTEST:
ncvjs/SHAL0WTR.n0C
W-Cartracts,Ag iWmv. June 29, 1994
ATTEST:
(�r-w' jjr'iL
etty . johns-dk City Secretary
APPROVED AS TO CONTENT:
rry EHerbroQk Interim Director of
Water Utilities
APPROVED AS TO FORM:
1 �
6
iald2GA. andiver, First sistant
City Attorney
WATER SALE CONTRACT
CITY OF SHALLOWATER — PAGE 11
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