Resolution 94-17
City of Wylie
RESOLUTION NO. 94-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS,
EXTENDING A SEWAGE TREATMENT SERVICES AGREEMENT WITH THE CITY OF
MURPHY, MAKING CERTAIN AMENDMENTS TO THE AGREEMENT, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, The City Council of the City of Wylie approved an agreement with the
City of Murphy for sewage treatment services and executed same on October 8, 1991, and
WHEREAS, Said agreement was extended by the City Council of the City of Wylie
has previously extended and sees fit to further extend the termination date of said contract,
and
WHEREAS, The City Council deems certain amendments to the agreement to be
in order
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wylie,
that:
SECTION 1. The agreement with the City of Murphy attached hereto as Exhibit "A"
provides in Section 10 termination unless connection is made within thirty-six months
which is hereby extended to April 8, 1995.
SECTION 2. Section 5, page 3, beginning on line 10 shall read "rate of 18 cents
per one thousand (1000) gallons maintenance costs & also include $1.02 per one
thousand (1000) gallon minimum per one thousand (1000) gallon usage for the first year,
which will be adjusted annually in accordance with this section."
SECTION 3. The City Manager is duly authorized to execute said agreement on
behalf of the City Council of the City of Wylie and to amend the contract as reflected by
the intent of this resolution.
DULY PASSED AND APPROVED on t~is the 9th d~aY of August, 1994.
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Jim Swartz, Mayor
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NORTH TEXAS MUNICIPAL WATER DISTRICT
CITY OF WYLIE - CITY OF MURPHY
SEWAGE TREATMENT SERVICES CONTRACT
THE STATE OF TEXAS S
THE COUNTY OF COLLIN 5
WHEREAS. tbe Nortb Texas Municipal Water District hereinafter
referred to as the NTMWD, a conservation and reclamation district,
the City of Wylie, a home rule city in Collin County, Texas,
and the City of Murphy, a general law city in Collin County,
Texas, desire to enter into this agreement;
WHEREAS, the NTMWD is a regional wastewater treatment plant
operator that owns and operates the Wylie Wastewater Treatment
Plant located in Wylie and the Murphy Wastewater Treatment Plant
located in Murphy;
WHEREAS, all of the capacity of two million gallons per day in
the Wylie Wastewater Treatment Plant is pledged and contracted
to the City of Wylie and the 250,000 gallon per day Murphy Waste-
water Treatment Plant is totally pledged and contracted to the
City of Murphy;
WHEREAS, the Murphy Wastewater Treatment Plant is at design
capaci ty and Murphy desires to contract to place flows above
the capacity of the Murphy Wastewater Treatment Plant in the
Wylie Wastewater Plant;
WHEREAS, Wylie is currently using an average of approximately
800,000 gallons per day of the two million gallons per day avail-
able in the Wylie Treatment Plant and is agreeable to the NTMWD
contracting wi tb Murphy for a portion of capaci ty at the Wylie
Wastewater Treatment Plant conditioned on Murphy's willingness
to participate with Wylie in a future regional plant when the
joint capacities require the construction of additional facil-
ities.
IT IS THEREFORE CONTRACTED AND AGREED BETWEEN THE THREE PARTIES
AS FOLLOWS:
SECTION I. Definitions - The terms and expressions used in this
contract, unless the contract shows clearly otherwise, shall
have meaning as follows:
a. Fiscal Year - Fiscal Year means the NTMWD Fiscal Year,
currently the year beginning October 1 of each calendar
year and ending on September 30 of the following calendar
year.
b. Minimum - The lDinimum flow for the calculation of the
anDual payment by the City of Murphy shall be based
on a minilbUlD flow of 25,000 gallons per day aDd shall
Dever be less than this amount; bowever, the minimwn
sball increase any year in which Murphy flows greater
than 25,000 gallons per day and shall continue at the
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NTMWD CITY OF WYLIE - CITY OF MURPHY
SEWAGE TREATMENT SERVICES CONTRACT
PAGE TWO
higher amount from then on but tbe min1mu~ or allowable
average day flow shall never exceed an annual average
of 250,000 gallons per day without the express permission
of the NTMWD and Wylie.
c. Murphy Connecting Interceptor The Murphy connecting
interceptor shall refer to the necessary pipeline from
the Murphy Wastewater Treatment Plant to the Wylie 15"
Phase II line on Bensley Lane. It is not the intent
of this agreement to provide for the construction or
contractual arrangements for service concerning the
construction of this pipeline which will be solely the
responsibility of the City of Murphy.
d. Murphy Wastewater Treatment Plant - The Murphy Wastewater
Treatment Plant is to be referred to as the Murphy Plant
and is a 250,000 gallon per day treatment unit
constructed and owned by the MTMWD for use of the City
of Murphy under a contract dated December 1976.
e. Operation and Maintenance Expense - Operation and mainte-
nance expense means all costs and expenses required
for the successful treatment of wastewater at the Wylie
Plant including but not limited to the cost of utilities,
cost of personnel, engineering, legal services, supplies,
contractual services, insurance premiums, repairs and
replacements of equipment, and all debt service and
capital expenses pertaining directly to the Wylie Plant.
f. Wylie Sewer Collection System - The Wylie sewer collec-
tion system shall mean the pipelines constructed and
owned by the C1 ty of Wylie for the collection of sewage
that carries the sewage to the Wylie Plant. It would
be the intent of the program for the Murphy connecting
interceptor to connect to the Wylie sewer collection
system at an agreed point for transportation on to the
Wylie Plant Site.
g. Wylie Wastewater Treatment Plant - The Wylie Wastewater
Treatment Plant referred to as the .ylie Plant, is the
modified Wylie Plant after being expanded by the NTMWD
under a contract with Wylie dated June 1987. The .ylie
Plant bas a current capacity of two million gallons
per day.
SECTION 2. Volume DischarEe ReQuirements. Murphy sball have
the right to discharge to the Wylie Sewer collection system
through the Murphy connecting interceptor and then to the Wylie
Plant up to a maximum average annual daily flow of 250,000 gallons
witb a max day flow Dot to exceed 2.5 times daily average. Murphy
shall have the responsibility for payment on the basis of a mini-
mum of 25,000 gallons per day commencing on the first day that
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NTMWD CITY OF WYLIE - CITY OF MURPHY
.- SEWAGE TREATMENT SERVICES CONTRACT
PAGE THREE
flow is iDtroduced to the Wylie Plant, and the mlnlmum shall
be escalated based upon the bighest annual daily average utilized
by Murphy during the wastewater year (August 1 through July 31).
Sbould Murphy Ibax day flow exceed 2.5 times daily average of
the wastewater year the annual minimum would be IDcreased for
the next year and years thereafter based on max day flow divided
by 2.5 to establish "average" day minimum until the actual average
day flow exceeds the calculated amount.
SECTION 3. Meterinaz and Point of Deliverv. Murphy shall be
required to build the Murphy connecting interceptor pipeline
to the Wylie collection system totally at the expense of Murphy.
At the intersection of the Murphy connecting interceptor and
the Wylie Sewer collection system a meter would be installed
as approved by the NTMWD with the total construction e~pense
provided by Murphy. It shall be the responsibility of the NTMWD
to Dlaintain and read the meter which would be utilized by the
NTMWD for billing purposes to Murphy and credit to Wylie for
services rendered and calculations on quantity flow. Should
a disagreement develop over the meter reading either Wylie or
Murphy could employ at their expense an outside consul tant to
work with the NTMWD and evaluate the accuracy of the meter.
If disagreement continues over the meter reading a formal report
would be prepared and submitted to the NTMWD Board of Directors
wbose decision would be final concerning the accuracy of tbe
meter readings. In no case would adjustments be made for a
greater period of time than six months.
The location of the meter will be the point of delivery for Murphy
to tbe Wylie collection system and all payments and billing for
services will be based on this volume.
SECTION 4. Dischar~e Qualit~. Murphy agrees to limit discharges
into the Wylie plant system to wastewater that complies with
quali ty requirements the NTMWD finds it necessary from time to
time to establish at the Wylie Plant in order to meet standards
imposed by state and federal regulatory agencies having appropri-
ate jurisdiction or to protect the treatment capacities of the
wastewater treatment plant. Quality restrictions of the NTIIWD
would be applicable to both Wylie or Murphy. Further. industrial
pretreatment requirements of the state and federal author1 ties
must be complied with in Wylie and Murphy to avoid penal ties
of the regulatory agencies.
SECTION 5. Annual Budszet. The NTMWD shall prepare an annual
operating budget reflecting all anticipated costs in connection
with the operation and maintenance of the Wylie Plant in
sufficient detail to justify expenditures for salaries. materials.
supplies. contractual services. and debt service. The allocation
between Murphy and Wylie shall be submitted in a prelilDinary
proposed annual budget to Wylie and Murphy on or before August
1 each year. If a protest or request for additional information
1s not preseDted prior to September 1 the proposed budget. on
adoption by tbe NTMWD Board of Directors. shall be considered
the annual budget for the ensuing fiscal year. In the event
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NTMWD CITY OF WYLIE - CITY OF MURPHY
SEWAGE TREATMENT SERVICES CONTRACT
PAGE FOUR
either city does Dot agree on tbe annual budget prior to September
1 a hearing would be held before the NTIIWD Board of Directors
concerning objections to either the budget or allocation of cost.
After hearing all evidence from the parties iovol ved J the NTMWD
Board of Directors shall be responsible for the allocation of
cost between participants and establishing the budget necessary
to pay all of the operation aDd Plalntenance expense including
debt serv1ce on the Wylie Plant. Included in the budget for
Murphy shall be an item for collection system service at the
rate of 18 cents per one thousand gallons with minimum established
on same volume and method as wastewater treatment minimum. This
item shall be adjusted to actual flow, if greater than the ~inimum
each year. This item charge to Murphy shall be an add on to
annual payment.
SECTION 6. Annual Payments. Wylie is responsible under the con-
tractual agreement between the NTMWD and Wylie for the expansion
of the Wylie Plant dated June 1981 and nothing in this agreement
shall relieve Wylie from this responsibility; however, all pay-
ments received from the City of Murphy sball be utilized as a
credi t from the charges to Wylie. The annual payments shall
be based on all operation and maintenance expense of NTMWD,
including debt service J on the Wylie Plant and shall be made
by each city equal to its proportional flow to plant (or in the
case of Murphy 1 ts contractual minimum whichever is greater)
as its proportional part of the total operating budget divided
by twelve. these payments to be made monthly 1n advance on or
before the 10th day of each month. The first monthly payment
due October 10 of each year shall be twice the calculated monthly
payment with no payment due in September of each ensuing year
except for any adjustments necessary during any fiscal year.
At the end of each fiscal year any surplus balance shall be
carried forward to reduce the overall cost during the next budge-
tary period. Emergency expenditures not budgeted may be required
due to unforeseen or unexpected conditions but each ci ty shall
be notified of such emergency wi th the rigbt to appeal to the
NTMwn Board of Directors on any request for adjustments in the
monthly payments in the same manner as the original budget.
If Murphy shall fail to make any monthly payment by the 20th
day of the month in which due, after notice to Murphy, the NTMWD
could terminate services as of the 10th day of the following
month and will be required as a condition of this contract to
terminate service by the 10th day of the second month following
the nonpayment. Further, the NTMWD may take legal action to
acquire payments due under this agreement and shall be entitled
to recover reasonable attorney fees plus ten percent on all over-
due charges.
SECTION 1. Re~ional Pro6!ram. It is agreed by all parties to
this agreement that the long range coal for wastewater treatment
service for Wylie and Murphy shall be a regional facility serving
these two cities and otbers. It 1s understood by all parties
that when the Wylie Plant reacbes 75% of capacity, or such other
NTlfWD CITY OF WYLIE - CITY OF MURPHY
SEWAGE TREATMENT SERVICES CONTRACT
PAGE FIVE
requirements as ~ay be made by state and federal regulatory
agencies, planning for an additional facility to treat the
combined wastewater flows .ill be necessary and that construction
must begin on said facility on or before the time the Wylie Plant
reaches 90% of design capacity. The regional program would be
funded by each entity paying 1 ts fair share of the cost based
on proportional flow to the system. Should a regional program
not be developed Murphy and Wylie agree to pay for the necessary
future facilities based on a proportional flow contract agreement.
SECTION 8. lodemni tv. Each party to this agreement agrees to
indemnify and hold harmless each other from any and all causes
for loss. liability or damages. arising out of the operation
of the Wylie Plant.
SECTION 9. ~ Financial Obll~atioD. Nothing in this agreement
shall be construed as requiring the NTIIWD to expend funds from
any source other than the revenues received under this agreement
and the Wylie - NTMWD Agreement dated June 25, 1987. All cost
required by valid rules. regulations. laws or orders passed or
promulgated by tbe United States of America. the State of Texas,
and regulatory judiCial branches thereof . having lawful
jurisdiction shall be the responsibili t1 of the cities of Wylie
and Murphy.
SECTION 10. ~. This agreement shall be 1n effect until super-
seded by a regional agreement approved by all parties. or thirty
years from the'date of execution. whichever occurs first. Should
Murphy Dot construct the Murphy connecting interceptor system
and start service wi thin tbirty-six months from the date of the
execution of this agreement, then this agreement is null and
void.
THIS AGREEMENT APPROVED BY THE RESPECTIVE GOVERNING BODIES BY
ADOPTION OF APPROPRIATE RESOLUTIONS AUTHORIZING THE ,JJNDERSIGNED
~~I: BEHALF OF EACH ~TITY ON THIS THE ~ DAY OF
, 1991.
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w. AKIN, MAYOR
OF WYLIE
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REG I W. GEORGE. YOR
CITY OF MURPHY
ATTEST:
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L JmA B. .ARLEY;--CIT~ SECRETARY
08/02/94 13:20
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THE HOGA.'i CORP.
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JliTMWD CITY OF WYLIE - CITY OF MURPHY
SEWAGE TREATMENT SERVICES CONTRACT
PAGE SIX
ATTEST:
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DARWIN L. WHITESIDE, SECRETARY