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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 XJ RECORD OF VALVES AND N0.1 SIZE I MAKE THIS SHEET I REVISION I TURNS I DATE I BY C.l�y yr ann�(pwis�r.� f aWdlR ThF w*ree TOWS INTERSECTION MAP OF LUBBOCK WATER SYSTEM By CITY ENOINEERINO DEPARTMENT CHECKED BY DATE 100 OF R.R. PROPERTY �l ' EXHIBIT "A" 1 �r EXISTING 'AS LINE— j , TAPPING FLO NNE T ER��,PJ� BELL 90 i, VALVE IN tiH ���P�, g DRESSER � �CUPLINABELLLL ITH f J J Q-- O c <11 584 c o' LEGS QF U) WATER TOWER t4j/ .i r G J 1 "=2 O'