Item 9CITEM 9C
Approve a Wholesale Water Purchase Contract with the City of Fort Worth.
Wholesale Water Contract With Ft Worth
Current contract with all cities expires Dec. 31, 2010
Contracts for all 30 wholesale customers are identical
Exhibits to the contract will identify unique conditions for each entity
20-year contract term
Effective Date of contract Jan. 1, 2011
Wholesale Water Contract With Ft Worth
Items unique to the Southlake contract
Two emergency interconnections with the City of Grapevine, 1 existing, 1 proposed
Emergency interconnection with the Southlake Park Water System
Wholesale Water Contract With Ft Worth
Two significant contract changes
Remove the 4% cap to the street rental fee in the calculation of rates with condition that increases are limited to 1% per five years with the first increase in year one.
Add Payment In Lieu Of Tax (PILOT) to the calculation of rates
Wholesale Water Contract With Ft Worth
Impact of Street Rental Fee and PILOT
Street Rental Fee increase from 4% to 5%
Increase revenue requirement by $232,677
PILOT
Increase revenue requirement by $777,019
Net effect on 2011 Wholesale Water Rates (effective 1-1-2011)
4 of the 5.86% is due to these contract changes
RECOMMENDATION
Approve a Wholesale Water Purchase Contract with the City of Fort Worth.
Questions?