Item 4BCITY OF
SOUTHLAKE
MEMORANDUM
(January 4, 2011)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Authorize the execution of a contract for billing of treated
water between the City of Fort Worth and the Cities of Keller,
Southlake and Westlake
Action
Requested: Authorize the execution of a contract for billing of treated water
between the City of Fort Worth and the Cities of Keller, Southlake
and Westlake
Background
Information: Historically, Fort Worth has billed Southlake for all water delivered
through the shared water lines that served both Keller and
Southlake. The Southlake finance department determines Keller's
portion of each month's water invoice and bills Keller for their
share. In 2008, in anticipation of the completion of the meter
modification project, Council approved a billing agreement between
the cities of Fort Worth, Keller and Southlake in which Fort Worth
agreed to bill the two cities separately. That agreement expired on
December 31, 2010 along with the previous wholesale water
purchase contract. This new agreement will accompany the new
wholesale contract which took effect January 1, 2011 and will
include the future metered connections on the T.W. King water line
by both Southlake and Westlake.
Since 1984, Southlake and Keller have shared the use of a water
supply line form the Fort Worth Alta Vista pump station. In 2005, a
second shared line from Fort Worth's Caylor station was placed in
service. Following completion of that project, Keller and Southlake
jointly contracted to upgrade the water meters on these lines to
improve the billing accuracy. Through the 2008 billing agreement,
Fort Worth would assume the role of determining the volume of
water used by Keller and Southlake by reading the new
downstream meters at the two cities' Pearson pump stations.
Like the 2008 agreement, this billing contract establishes fair and
reasonable methods to split peaking charges for maximum day and
maximum hour usage. It also provides a calculation for splitting the
cost of any discrepancies between the Fort Worth billing meters
and the downstream customer meters and incorporates the future
Southlake and Westlake meters on the T.W. King water supply line.
The Fort Worth City Council approved this contract on December
14, 2010. This agreement will become effective 60 days after
approval by the four cities and will expire on September 30, 2031
along with the new wholesale purchase agreement.
Financial
Considerations: This agreement establishes fair methods for distributing all the
components for wholesale water costs.
Strategic Link: The billing contract between the four cities links to the city's
strategy map relative to the focus areas of Performance
Management and Service Delivery. The specific corporate
objective that is met by the execution of this contract is:
Collaborate with select partners to implement service solutions.
Citizen Input/
Board Review: N/A
Legal Review: This contract has been reviewed by the City Attorney.
Alternatives: The City Council may approve the proposed billing contract or deny
it.
Supporting
Documents: Proposed Billing Contract
Contract Exhibits
Staff
Recommendation: Authorize the execution of a contract for billing of treated water
between the City of Fort Worth and the Cities of Keller, Southlake
and Westlake.
Staff Contact. Robert H. Price, P.E., Public Works Director
Chuck Kendrick, Asst. Director of Public Works
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CONTRACT BETWEEN THE CITIES OF FORT WORTH, KELLER,
SOUTHLAKE AND WESTLAKE RELATED TO THE
BILLING FOR TREATED WATER
WHEREAS, on or about the day , 2010, the cities of Fort Worth and
Keller entered into a contract for the provision by Fort Worth of treated water to Keller,
such contract being City of Fort Worth City Secretary Contact No. ; and
WHEREAS, on or about the day , 2010, the cities of Fort Worth and
Southlake entered into a contract for the provision by Fort Worth of treated water to
Southlake, such contract being City of Fort Worth City Secretary Contact No.
; and
WHEREAS, on or about the day , 2010, the cities of Fort Worth and
Westlake entered into a contract for the provision by Fort Worth of treated water to
Westlake, such contract being City of Fort Worth City Secretary Contact No.
; and
WHEREAS, the cities of Keller and Southlake entered into a contract between
themselves related to the provision of treated water by Southlake to Keller, such treated
water being provided to Southlake by Fort Worth; and
WHEREAS, the City of Fort Worth authorized the resale of treated water by
Southlake to the City of Keller; such contract being City of Fort Worth City Secretary
Contract No. 17683; and
WHEREAS, the City of Fort Worth authorized Westlake's additional point of
connection and the joint use of the T.W. King Water Supply Line with Southlake through
City of Fort Worth City Secretary Contract No. ; and
WHEREAS, Keller, Southlake and Westlake desire to enter into a contract with
Fort Worth related to the billing for treated water delivered to Keller by Southlake and
Southlake to Westlake including provisions related to billing for lost water according to
the methodology described in the memo issued by Freese and Nichols, dated April 25,
2010 which shall be included in the contract; and
WHEREAS, the City of Fort Worth is agreeable to provide billing services related
to the treated water provided by Keller, Southlake and Westlake subject to and solely
pursuant to the terms and conditions stated below.
NOW, THEREFORE, THE CITIES OF KELLER, SOUTHLAKE,
WESTLAKE AND FORT WORTH AGREE AS FOLLOWS:
1.
TFRM
The Agreement shall be effective upon the date the last party fully executes the
contract and shall terminate on September 30, 2031, unless terminated earlier as provided
herein. It may be renewed on terms mutually agreeable to the parties.
2.
RATES FOR WATER TAKEN
The rates to be charged for treated water delivered by Fort Worth to the Cities of
Keller, Southlake and Westlake (hereinafter referred to as "the Cities") shall be equal to
the volume rates and rate of use charges currently in effect and as they may change from
time to time, all in accordance with City of Fort Worth City Secretary Contracts
, and such contracts being hereinafter referred
to collectively as the "Contracts".
3.
DETERMINATION OF UNACCOUNTED WATER LOSSES,
ALLOCATION TO EACH PARTY FOR BILLING PURPOSES
A. Two factors shall be used to determine unaccounted water loss: 1) the interior
surface area of the water supply pipeline required to deliver flow to each city's
delivery point as determined in Section 4; and 2) the recorded actual water usage,
as described in Section 5.
B. A city which does not take any flow during the monthly billing period shall not be
assessed an unaccounted water loss; however, if flow is not taken by any city
during any monthly billing period, then the unaccounted water loss of the
Delivery System in that monthly billing period shall be allocated proportionately
to each city based on the surface area of the water supply pipeline required to
deliver flow to each city's delivery point.
4.
SURFACE AREA OF THE WATER SUPPLY PIPELINE
The surface area of the water supply pipeline used by each city based on the flow
paths available to convey flow to each City's delivery point are as follows:
• Southlake Pearson Delivery Point: the Cities agree that the resulting average
interior surface area of pipeline that can deliver flow through both the Fort Worth
Northside 11 Caylor Tank through the 42-inch line and the Fort Worth North
Beach Tank through the 36-inch/30-inch line equals 240,151 square feet.
• Keller Pearson Delivery Point: the Cities agree that the resulting average interior
surface area of pipeline that can deliver flow equals 240,151 square feet.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 2 of 11
Westlake Delivery Point: the Cities agree that the resulting average interior
surface area of pipeline that can deliver flow to the future anticipated Westlake
Delivery Point is 380,494 square feet.
T.W. King Delivery Point: the Cities agree that the resulting average interior
surface area of pipeline that can deliver flow to the future anticipated Southlake
T.W. King Delivery Point is 453,405 square feet.
5.
Recorded Actual Water Usage
The total actual water delivered from all of the Fort Worth meters as shown on
Exhibit "A" shall be measured on a monthly basis. The recorded actual water usage by
each city at meters numbered 3, 4, 5 or 6 shall also be measured from each delivery point
on a monthly basis by Fort Worth pursuant to the Contracts. The sum of the water
delivered from the Fort Worth meters numbered 1 and 2 shall then be compared to the
sum of the water usage by the Cities at meters numbered 3, 4, 5 and 6. The difference
shall equal and be the total unaccounted water loss volume.
As an example only:
Table A
Total Unaccounted Water Loss Calculation
Total Fort Worth Meters
Total Sum of the Actual
Total Unaccounted
Measured
Water Used at the Cities
Water Loss Volume
Delivery Points
44 MG per Month
42 MG per Month
2 MG per Month TA
Each city's percentage of allocated unaccounted water loss shall then be determined on a
monthly basis by:
1. Multiplying the surface area designated for each citya in Section 4A by each city's
recorded actual water usage to determine the product of the two factors; then
2. Adding up the productsc' for all of the Cities; then
3. Dividing the product of each city' by the total sum product°T for total Cities' to
determine each city's percentage of unaccounted water loss'; then
4. The unaccounted water loss assessed to each Citye shall be determined by
multiplying the percentage allocated to each city' by the total unaccounted water
loss volumeTA
As an example only:
Table B
Allocation of Unaccounted Water Losses Between Soutmake, Keller and Westlake
Delivery
Average Interior
Record Actual
Product of
% of
Actual
Point
Surface Area of
Water Usage at
Two Variables
Allocation
Unaccounted
Pipeline to Each
Each Cities
Affecting Loss
of Total
Water Loss
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 3 of 11
Cities Delivery
Meter
Allocation'
Water Loss
Allocations
Point'
Southlake
240,1 51
20 MG per
4,803,200
39.78%
0.79 MG per
Pearson
Month
Month
Keller
240,151
12 MG per
2,881,812
23.87%
0.48 MG per
Pearson
Month
Month
Westlake
380,494
2 MG per
760,988
6.30%
0.13 MG per
Month
Month
Southlake
453,405
8 MG per
3,627,240
30.05%
0.60 MG per
T.W. King
Month
Month
Total
42 MG per
12,073,240sT
100.00%
2.0 MG per
Month
MonthTA
Keller and Westlake agree that the treated water delivered to meters numbered 3,
4, 5 and 6 under this Agreement will not be added to the treated water taken by each of
them pursuant to City of Fort Worth City Secretary Contact No. and
No. . Keller and Westlake will continue to receive separate monthly bills
and a separate annual bill under Fort Worth City Secretary Contract No.
and , as well as monthly bills and an annual bill under this
Agreement.
6.
MAXIMUM HOUR. MAXIMUM DAY CHARGES
The assessment of the maximum hour and the maximum day charges incurred at
meters numbered 1 and 2 shall be based on the volume at each city's meter numbered 3,
4, 5 or 6 during the same maximum hour and maximum day time period and shall be
determined as follows:
A. First, to determine each city's allocated percentage of maximum day and
maximum hour charges take each city's recorded actual water usage for the actual
maximum hour and maximum day and divide by the total volume of meters 3
and 4 on Exhibit "A"; and meters 5 and 6 once the meters have been connected
to the system; then
B. Each city's allocated percentage as calculated above shall be multiplied by the
total maximum day and maximum hour charge incurred from meters 1 and 2 per
the Contracts.
C. The total annual payment for water delivered to each city shall be based on the
annual and peak volumes delivered to each city during the Fiscal Year, as
determined by meters, flow recording devices or other approved methods, and as
provided in this Agreement. The October monthly payment for September's
usage shall contain any adjustments necessary to update the calculations as
necessary to recover the annual payment for the Customer's actual withdrawals
from the Fort Worth System (including Rate of Use Charges as defined in the
Contracts for Maximum Hour and Maximum Day Demands) for the Fiscal Year
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 4 of 11
just ended, during which the water usage occurred. Each city will be responsible
for its own portion of the settle -up amount.
D. This information shall not be used for annual billings made under City of Fort
Worth City Secretary Contracts No. , No. and No.
E. If any of the cities did not take water during prior year to the current billing year,
then the monthly maximum day and maximum hour charges for the current billing
year will be based on the readings from the most recent year with reading.
F. For historical information and comparison, and solely for use under this
Agreement, Fort Worth and the Cities agree that the maximum day and maxium
hour volumes shall be:
Maximum Day Maximum Hour
Keller 4.97 MGD 5.95 MGD
Southlake 18.29 MGD 20.26 MGD
Westlake To be determined at the design stage of the future meter.
This information shall not be used for annual billings made under City of Fort Worth
City Secretary Contract No. and
7.
MONTHLY CALCULATION
A. The methodology as described in Section 3 and 4 have been derived from the
consultant's memorandum to Southlake, Keller and Westlake dated April 25,
2010 and attached as Exhibit "B". By executing this Agreement, the Cities
acknowledge that they have had their respective utility personnel or consultants
review Exhibit "B" and that they fully understand the methodology and agree to
the calculations demonstrated therein for the purpose of billing treated water
delivered to Keller, Southlake and Westlake.
B. Except as provided in Section 5, monthly billing for water volume will be based
on meter readings for total volume from meters numbered 3, 4, 5 and 6.
C. Furthermore, attached hereto as Exhibit "C" is an example of a calculation for
billing the total water, including the maximum day and the maximum hour
charges, to each city on a monthly basis under this Agreement.
8.
METER UPGRADES
The meters, together with the meter vaults, designated as Meter 3 and Meter 4 on
Exhibit "A" attached hereto shall each be upgraded. The plans and design for the meters
and the meter vaults are subject to the written approval of Fort Worth. The existing
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 5 of 11
meters shall be replaced with transit time meters and provision shall be made for back-up
power to the meters. Further, fire hydrants will be installed on the downstream side of
the meters. Keller and Southlake entered into a contract dated January 20, 2004 detailing
the division of costs associated with the required meter installation and vault
construction, a copy of which is attached hereto as Exhibit "D", same being Southlake
City Contract No. 04-15. Exhibit "D" is solely attached for the purpose of cost sharing
related to the upgraded meters between the Cities and for no other purpose.
9.
FUTURE ANTICIPATED METERS
It is anticipated that Southlake will construct a new meter shown on Exhibit "A"
as meter number 5 and that Westlake will construct a new meter shown on Exhibit "A"
as meter number 6. Prior to construction, each city shall submit plans and design for the
meters to Fort Worth for review and written approval of Fort Worth. Each meter shall
comply with Fort Worth standards as then in effect. Prior to delivery of water to either
meter, each meter must be inspected and approved by Fort Worth and such inspection
fees shall be the sole responsibility of the owner city. The inspection fee shall be the
same as the fee charged to Fort Worth developers.
10.
OPERATION AND MAINTENANCE OF METERS
Fort Worth shall be responsible for operating and maintaining meters numbered 3,
4, 5 and 6. In that regard, Fort Worth may either contract for any necessary repairs or
perform the work with Fort Worth employees. The Cities agree to reimburse Fort Worth
for the total cost of any required maintenance or repair. Repair and maintenance of each
meter numbered 3, 4, 5 or 6 will be paid by the owner city. The Cities shall pay for the
costs of meter calibration, meter maintenance, power to operate the meters, any upgrades
to the remote telemetry unit or meters and station, and any additional expenses for meter
reading, testing and calibrations of the meters with the costs being divided as stated
immediately above.
Calibration of meters 1 and 2 only, shall be performed as described in Section 4 of
the Contracts.
11.
OPERATION OF DELIVERY SYSTEM
"Delivery System" shall mean the system of water mains that delivers treated
water to the Cities, as represented by lines A, B, C, D, E, and F on Exhibit "A". Fort
Worth shall never have any duty to operate and maintain the Delivery System. The Cities
in accordance with whatever contracts exist between them shall be responsible to operate
and maintain the Delivery System.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 6 of 11
12.
PROHIBITION OF EXTENSIONS
The Cities shall not permit any extensions or connections to the Delivery System
without a written amendment to this Agreement.
13.
MEDIATION OF DISPUTES
If any dispute arises hereunder between the parties, such dispute shall be resolved
in accordance with Section 22.6 of the Contracts.
14.
EASEMENTS/All-WEATHER ACCESS
Each city, as appropriate, shall dedicate an easement to Fort Worth in order for
Fort Worth to have access to the meters numbered 3, 4, 5 and 6, as well as the meter
vaults. In addition, the Cities shall provide an all-weather access to the meter vaults.
15.
CONTRACTS CONTROLLING
To the extent that this Agreement modifies either City of Fort Worth City
Secretary Contact No. or , this Agreement shall
control. In all other matters, the provisions of City of Fort Worth City Secretary Contact
No. I and take precedence.
16.
TERMINATION
This Agreement may be terminated by Fort Worth at any time in its sole
discretion by giving written notice to the Cities at least sixty (60) days prior to the date of
termination. The Cities may terminate this Agreement only by mutual agreement
between the three of the cities and then by the Cities giving written notice to Fort Worth
at least sixty (60) days prior to the date of termination.
17.
EFFECT OF TERMINATION
If this Agreement is terminated, the Cities shall revert to the status and contractual
relations they were in effect prior to the execution of this Agreement.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 7 of 11
18.
THIRD PARTY BENEFICIARIES
The provisions and conditions of this Agreement are solely for the benefit of the
parties hereto, and any of their lawful assigns or successors and are not intended to create
any rights, contractual or otherwise, to any other person or entity.
19.
NOTICES
All written notices called for or required by this Agreement shall be sufficient if
forwarded to the parties below, or such other party or address as either parry designates in
writing, by certified mail, postage prepaid, or by hand delivery:
City of Fort Worth:
City of Fort Worth
Attn: City Manager
1000 Throckmorton
Fort Worth, TX 76102
City of Keller
with a copy to: City of Fort Worth
Attn: Water Director
P. O. Box 870
Fort Worth, Texas 76102
City of Keller with a copy to: City of Keller
Attn: City Manager Public Works Director
P.O. Box 770 P.O. Box 770
Keller, Texas 76244 Keller, Texas 76244
Hand Delivery: 1100 Bear Creek Parkway, Keller, Texas 76248
City of Southlake
City of Southlake
Attn: City Manager
1400 Main Street, Suite 460
Southlake, Texas 76092
Town of Westlake
Town of Westlake
Attn: City Manager
Westlake, Texas 76
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 8 of 11
with a copy to: City of Southlake
Attn: Public Works Director
1400 Main Street, Suite 230
Southlake, Texas 76092
with a copy to: Town of Westlake
Attn: Utility Director
Westlake, Texas 760
20.
FORCE MAJEURE
If, by reason of Force Majeure as hereinafter defined, any parry hereto shall be
rendered wholly or partially unable to carry out its obligations under this Agreement, then
such party shall give written notice of the particulars of such Force Majeure to the other
parties within a reasonable time after the occurrence thereof. The obligations of the party
giving such notice, to the extent affected by such Force Majeure, shall be suspended
during the continuance of the inability claimed and for no longer period, and any such
party shall be in good faith exercise its best efforts to remove and overcome such
inability.
The term "Force Majeure" as utilized herein shall mean and refer to acts of God;
strikes, lockouts or other industrial disturbances; acts of public enemies; orders of any
kind of the government of the United States, the State of Texas, or any other civil or
military authority; insurrections; riots; epidemics; landslides; earthquakes; lightning;
fires; hurricanes; storms; floods; washouts; or other natural disasters; arrest; restraint of
government and people; civil disturbances; explosions; breakage or accidents to
machinery, pipelines or canals; or other causes not reasonably within the control of the
party claiming such inability. Force Majeure shall not excuse the obligation of and party
hereto to pay for treated water service provided under this Agreement.
21.
NO JOINT VENTURE, PARTNERSHIP, AGENCY
This Agreement will not be construed in any form or manner to establish a
partnership, joint venture or agency, express or implied, nor any employer -employee,
borrowed servant or joint enterprise relationship by and among the parties. Each party
shall be an independent contractor and shall be responsible at all times for directing its
employees in the course of their duties. Each parry shall be responsible at all times for
directing its employees in the course of their duties.
22.
CONTRACT CONSTRUCTION
The parties acknowledge that each party and, if it so chooses, its counsel have
reviewed and revised this Agreement and that the normal rules of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or any amendments or exhibits hereto.
23.
BILLING AGREEMENT
KELLER — SOUTHLAKE-WESTLAKE
Page 9 of 11
GOVERNMENTAL POWERS
It is understood that by execution of this Agreement, none of the parties hereto
waive or surrender any of it governmental powers.
24.
FIRST BILLING DATE
The first billing date under the terms and conditions of this Agreement shall be sixty (60)
days from the effective date of this contract.
APPROVAL RECOMMENDED:
S. Frank Crumb, P. E.
Water Department Director
Approved as to Form and Legality:
Christa R. Reynolds
Sr. Assistant City Attorney
APPROVAL RECOMMENDED:
Greg Dickens, P. E.
Public Works Director
Approved as to Form and Legality:
City Attorney
BILLING AGREEN IENT
hELLER — SO )LTTHL AKE-�\ESTLAhE
Page 10 of 11
CITY OF FORT WORTH
Fernando Costa
Assistant City Manager
Attest
Marty Hendrix
City Secretary
CITY OF KELLER
By:
Dan O'Leary
City Manager
Attest:
City Secretary
APPROVAL RECOMMENDED:
Robert H. Price, P.E., FNSPE
Public Works Director
Approved as to Form and Legality:
City Attorney
APPROVAL RECOMMENDED:
Utility Director
Approved as to Form and Legality:
Town Attorney
BILLING AGREEN IENT
hELLER — SO )LTTHL AKE-�\ESTLAhE
Page 11 of 11
CITY OF SOUTHLAKE
By:
Shana Yelverton
City Manager
Attest:
City Secretary
TOWN OF WESTLAKE
By:
City Manager
Attest:
Town Secretary
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4055 International Plaza, Suite 200 • Fort worth, Texas 76109 • 817-735-7300 • fax 817-735-7491 www.freese.com
TO: Bob Price, Director of Public Works, City of Southlake; Chuck Kendrick,
Deputy Director of Public Works, City of Southlake; Greg Dickens, Director of
Public Works, City of Keller; Jarrod Greenwood, Director of Public Works,
City of Westlake
CC: Ron King, Freese and Nichols
FROM: Thomas Haster, Freese and Nichols
SUBJECT Allocation of Unaccounted Water Losses and Maximum Day/Maximum Hour
Peaking Charges for Southlake/Keller/Westlake Water Supply System
DATE: April 25th, 2010
A. Allocation of Unaccounted Water Losses
We have reviewed various options to allocate the unaccounted water losses in the Southlake/Keller
and future Westlake Water Supply System. The water loss allocation needs to be flexible enough to
facilitate the addition of a future Westlake Delivery Point as well as being as equitable as possible to
allow the losses to be shared between the participating cities. The looping of the water supply lines
between the City of Fort Worth Caylor Northside II Water Supply and the City of Fort Worth North
Beach Eastside II Water Supply adds an additional level of complexity in the water loss allocation to
ensure that each wholesale customer equitably share in the future unaccounted water losses.
The two variables that should be reflected in the water losses allocation are A) flow used by each
wholesale customer and B) surface area of water supply pipeline required to deliver flow to each
wholesale customer delivery point. If a wholesale customer is not taking any flow during the monthly
billing period they should not have to participate in paying the unaccounted water losses. If a
wholesale customer delivery point is located closer to Fort Worth's billing meters than other wholesale
customers take points than it is expected that their opportunity for experiencing water losses will be
less than others at more remote locations. Therefore, it is with these two variables that Freese and
Nichols has developed the following draft methodology to allocate the unaccounted water losses as
shown below.
The first step in this methodology is to calculate the surface area (pipeline length multiplied by the
pipeline parameter) of each pipeline section. These various pipeline sections are shown in the
attached Figure 1 as: Line "A" = 36"/30" water transmission line from North Beach (Meter #2) to the
Southlake Pearson Delivery Point (Meter #3), Line "B" = 30-inch water transmission line from
Southlake Pearson Delivery Point (Meter #3) to Keller Pearson Delivery Point (Meter #4), Line "C" _
42-inch water transmission line from Caylor (Meter #1) to the split of the 30-inch water lines at
Pearson Road, Line "D" = 30-inch water transmission line from Keller Pearson Delivery Point (Meter
#4) to the 30-inch water transmission line on Florence Road, Line "E" = 30-inch water transmission
line from Pearson Road to the future Westlake Delivery Point (Meter #6) and Line "F" = 30-inch water
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 2 of 4
transmission line from the future Westlake Delivery Point (Meter #6) to the Southlake T.W. King
Delivery Point (Meter #5).
The following surface area for each pipeline section identified above is; Line "A" = 158,282 square feet,
Line "B" is 11,437 square feet, Line "C" = 278,949 square feet, Line "D" = 31,635 square feet, Line "E" _
140,342 square feet and Line "F" = 72,911 square feet.
The next step in the analysis is to estimate the average pipeline surface area used by each entity based
on the various flow paths available to convey flow to each delivery point. For the Southlake Pearson
Delivery Point there are two options to receive flow, Fort Worth Northside II Caylor Tank through the
42-inch line and Fort Worth North Beach Tank through the 36-inch/30-inch line. The average pipeline
surface area used to deliver flow to the Southlake Pearson Delivery Point is therefore the average of
the surface area of Line "A" plus the surface area of Line "B", Line "C" and Line "D" added together.
The resulting average surface area of pipeline that can deliver flow to the Southlake Pearson Delivery
Point is 240,151 square feet. Using this similar process, the resulting average surface area of pipeline
that can deliver flow to the Keller Pearson Delivery Point is also 240,151 square feet. The resulting
average surface area of pipeline that can deliver flow to the future anticipated Westlake Delivery Point
is 380,494 square feet. The resulting average surface area of pipeline to can deliver flow the Southlake
T.W. King Delivery Point is 453,405 square feet.
Once the average surface area to each delivery point is calculated, the next step is to record the water
usage taken by each delivery point. For the purpose of this calculation let's assume the following
average delivery rates are measured at each delivery point; Southlake Pearson uses 20 MGD, Keller
Pearson uses 12 MGD, Westlake uses 2 MGD and Southlake T.W. King uses 8 MGD. The actual usage
will be measured on a monthly basis to allow these water loss calculation to be represented of the
actual usage of the water supply system by each entity participating.
Based on these projected delivery rates the product of these two water loss variables would be the
following: Southlake Pearson Site Delivery Rate (20 MGD) multiplied by Average Surface Area of
Facilities (240,151 square feet) Used to Deliver this flow yielding in a product of 4,803,020. If the sum
of the Wholesale Customer Meters read 42 MGD as shown in the above example and the combined
Fort Worth billing meters of Caylor and North Beach read 44 MGD, then the unaccounted water loss
allocation would be 2 MGD as shown in Table 1 below.
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 3 of 4
Table 1
Total Unaccounted Water Loss Calculation for Southlake/Keller and Westlake
Total Fort Worth Billing Meters
Total Sum of the Flow Measured
Total Unaccounted Water Losses
Flow Measured
at the Wholesale Delivery Points
Between Billing Meters and
Wholesale Customer Meters
44 MGD
42 MGD
2 MGD
Once the total unaccounted water loss is calculated, it can be allocated to each wholesale customer
delivery point using the average surface area of pipeline facilities used to convey flow to each
wholesale customer delivery point and the average delivery rate during the billing period as shown
below in Table 2.
Table 2
Allocation of Unaccounted Water Losses Between Southlake, Keller and Westlake
Delivery
Average Surface
Average
Product of Two
% of
Actual
Point
Area of Pipeline to
Delivery Rate to
Variables
Allocation of
Unaccounted
Each Customer
Each Customer
Affecting Loss
Total Water
Water Loss
Delivery Point
Delivery Point
Allocation
Loss
Allocation
Southlake
240,151
20 MGD
4,803,200
39.78%
0.79 MGD
Pearson
Keller
240,151
12 MGD
2,881,812
23.87%
0.48 MGD
Pearson
Westlake
380,494
2 MGD
760,988
6.30%
0.13 MGD
Southlake
453,405
8 MGD
3,627,240
30.05%
0.60 MGD
T.W. King
Total
42 MGD
12,073,240
100.00%
2.0 MGD
B. Allocation of Maximum Day and Maximum Hour Peaking Charges
Unlike the allocation of unaccounted water losses, the relative location of various wholesale delivery
points for Keller, Southlake and Westlake from Fort Worth has no impact on how much maximum day
and maximum hour peaking occurs with each customer city. Therefore, it is not recommended that
this same procedure be applied for these peaking charges.
Historically the maximum day and maximum hour peaking charges of the combined Caylor and North
Beach meter readings has been distributed equally between customer cities based on the respective
Allocation of Unaccounted Water Losses and Peaking Charges
April 25th, 2010
Page 4 of 4
FREESE
M.9,41
volume of water used by each customer city. It is recommended that this same procedure be
maintained going forward as a fair and equitable methodology for allocating these peaking charges as
the T.W. King Water Supply Line is put into service and additional delivery points for Southlake and
Westlake are added.
Please let me know if you agree with this amended methodology and if the allocation is acceptable to
each of the wholesale customer cities. If this approach is acceptable, we will add signature blocks for
each wholesale customer city to sign and then forward to the City of Fort Worth for amendment to
your existing wholesale contracts.
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