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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. 1 . /#/ / p!J " . Jim Swartz, Mayor j AttefY(i1~ V\)! v...' (f; J..,).J.I U";i.. ,,<:IV I ilJ.J UU:. nv...."\.' I.Vl\r. I(!J UUJ: UU.::I 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 V..,/V.fU" ~y.~1 u..J." ...;tv 4 ~VoJ ~nL nv\,;J.."L." \..vn.r. l4!j VV"/ VVO 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 .... "".1.1 ...~v I .I.V~ J.QL nV\:I."L.' \"-v.nr. ~ VVvl VVQ 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 "t::.:J VVV" vvv 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. I/~JI ~ w. AKIN, MAYOR OF WYLIE ~LJ~_ REG I W. GEORGE. YOR CITY OF MURPHY ATTEST: 4XLL.... 4. n (Lr...f!L,C/- L JmA B. .ARLEY;--CIT~ SECRETARY 08/02/94 13:20 "0'214 490 7163 THE HOGA.'i CORP. ~ 008/008 JliTMWD CITY OF WYLIE - CITY OF MURPHY SEWAGE TREATMENT SERVICES CONTRACT PAGE SIX ATTEST: ~ ~ .I:I-:i-".~~ DARWIN L. WHITESIDE, SECRETARY