HomeMy WebLinkAboutContract 49533-A1 CSO#726-10-2017
qr` SEC ORt� AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT 49533
AGREEMENTkWASTEWATER SERVICE
(Village CreeParal el Relief Sewer Li )
CITY SECRETARY
*' CONTRACT NO. 33THE STATE OF TEXAS
KNOW ALL BY THESE PRESENTS
COUNTY OF TARRANT
This AMENDMENT NO. 1 TO AGREEMENT FOR WASTEWATER SERVICE
("Amendment No. F) is made and entered into by and between the City of Burleson, acting
herein by and through its Deputy City Manager, Paul Cain, hereinafter referred to as
"Customer", and the City of Fort Worth, acting herein by and through its Assistant City
Manager, Jesus J. Chapa, hereinafter referred to as "Fort Worth", each of Tarrant County, State
of Texas, (collectively the "Parties').
WHEREAS, Fort Worth and Customer previously entered into that certain Agreement
for Wastewater Service dated August 22, 2017 identified as Fort Worth City Secretary Contract
No. 49533 (the "Wastewater Collection Contract'); and
WHEREAS, the Parties previously executed a Memorandum of Understanding (MOU),
dated October 31, 2016, identified as Forth Worth City Secretary Contract No. 48557, setting
forth the general terms and conditions for various items including the Customer's required
capacity and cost participation in Fort Worth's proposed `Village Creek Parallel Relief Sewer
Line", as more particularly described therein, in connection with the Customer's request for
additional wastewater capacity and wholesale wastewater service from Fort Worth; and
WHEREAS, the Parties desire to enter into this Amendment No. 1 in order to specify the
Customer's capacity rights in the existing Village Creek Main 257; to specify the Customer's
capacity rights in the proposed Village Creek Parallel Relief Sewer Line Project; to specify the
respective responsibilities of the Parties for construction of the Village Creek Parallel Relief
Sewer Line project; to describe the methodology for assessment of Customer costs related to the
Village Creek Parallel Relief Sewer Line Project; to specify Customer's payment obligations
with respect to the Village Creek Parallel Relief Sewer Line Project; and to otherwise clarify the
respective rights and obligations of the Parties with respect to the Village Creek Parallel Relief
Sewer Line Project.
NOW THEREFORE, for and in consideration of the mutual covenants, promises
and agreements contained herein, the sufficiency of which are hereby acknowledged, Fort
Worth and Customer do hereby agree as follows:
1.) Bidding and Construction. Fort Worth shall be responsible for preparation of all construction
contract documents, public bidding, award of a construction contract, and construction
administration related to the Village Creek Parallel Relief Sewer Line Project. To the extent
any changes in plans and specifications of the project are necessitated in connection
therewith, Fort Worth shall be solely responsible for any such mod
OFFICIAL RECORD
1 CITY SECRETARY
FT.WORTH,Tx
2.) Customer Existing Capacity and Service Request. The Parties acknowledge and agree that
the Customer currently has 8.7 million gallons per day (MGD) of capacity in the existing 27-
inch to 36-inch Village Creek Sewer Line, installed in the 1970's, owned and operated by
Fort Worth to provide wholesale wastewater service to the Customer at their point of delivery
(as defined in the Wastewater Contract). Customer has requested additional wastewater
capacity at this time, and Fort Worth agrees to make available additional wastewater
collection system capacity and service to Customer upon completion of the Village Creek
Parallel Relief Sewer Line project.
3.) The Improvements. The improvements consist of Parts 1, Parts 2A and Parts 2B of the
Village Creek Parallel Relief Sewer Line Project. Part 1 consists of the installation of
approximately 10,470 linear feet of 60-inch diameter sewer pipeline and associated
appurtenances from the Main 295 connection upstream to the Main 423 connection. Part 2A
consists of the installation of approximately 14,490 linear feet of 60-inch diameter sewer
pipeline and associated appurtenances from the Main 423 connection upstream to the Main
325 connection. The hydraulic capacity of the 60-inch diameter pipelines installed in Part 1
and Part 2A is approximately 80 MGD. Part 2B consists of the installation of approximately
12,890 linear feet of 48-inch and 42-inch diameter sewer pipelines and associated
appurtenances from the Main 325 connection to the existing Burleson wholesale meter
station. The hydraulic capacity of Part 2B is approximately 32 MGD.
4.) Capacity Request. The Customer has requested an additional 26.3 MGD of capacity in Parts
1 and Parts 2A, representing approximately 32.875% of the total capacity of the proposed
sewer line. The Customer has requested an additional 16.3 MGD of capacity in Part 213,
representing approximately 50.937%of the total capacity of the proposed sewer line.
5.) Design Elements. Fort Worth will provide design plans for improvement to the Customer for
Customer's review prior to Fort Worth bidding of the improvements (with the exception of
Part 1, which was bid prior to execution of this agreement). The Customer shall complete its
review and submit any comments and/or modification to Fort Worth within 14 work days.
Upon Fort Worth's agreement that modifications requested by the Customer is beneficial to
both the Customer and Fort Worth, the parties shall share proportionally in the cost to design
and construct the modification. If the Customer requests a design modification solely for its
benefit, then the Customer shall be responsible for the entire cost for design and construction
of such modification.
6.) Cost Participation. Unless otherwise specified in this amendment or the Wholesale
Wastewater Contract, cost participation will be based on the pro-rata share of the proposed
total capacity of the parallel relief sewer line. Pro-rata cost participation shall include the
engineering costs, the easement and land acquisition costs, the construction costs, and the
inspection costs. The Parties acknowledge that the City of Crowley is planning to cost
participate in Parts 1 and 2A of the Village Creek Parallel Relief Sewer Line Project.
7.) Cost Estimates. Table 1, 2A and 2B provides the current cost estimates for the project, as
well as the breakout of the Customer Costs. Exhibit "A" shows the location of the three line
segments identified in the three cost estimate tables. For the purpose of cost participation, it
is assumed that the costs from the design consultant (Alan Plummer and Associates) for the
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Part 2A and Part 2B engineering is split evenly between the two lime segments. In addition,
construction inspection costs are shown to be five percent of the construction estimate. The
current estimate of Burleson's total cost contribution For the Village Creek Parallel Relief
Sewer Line Project is $14,269,909 plus financing costs.
Table 1 -Main 257-Part 1, 60" Diameter Parallel Relief Line from M-295 to M-423
Task Label 60" Pipe Burleson Burleson % Total Cost Burleson Cost
Capacity Flow Estimate Estimate
Engineering 80 MGD 26.3 MCD 32.875% $830,722
Easements 80 MGD 26.3 MCD 32.875% $510,000
Construction 80 MGD 26.3 MGD 32.875% $8,125,899
Inspection 80 MGD 26.3 M® 32.875% $406,295
Total Cost Estimate 80 MCD 26.3 MGD 32.875% $9,872,916 $3,245,721
Table 2A-Main 257-Part 2A,60"Diameter Parallel Relief Line from M-423 to M-325
Task Label 60" Pipe Burleson Burleson % Total Cost Burleson Cost
Capacity Flow Estimate Estimate
Engineering 80 MCD 26.3 MGD 32.875% $688,943
Easements 80 MGD 26.3 MGD 32.875% $1,733,314
Construction 80 MGD 26.3 M(D 32.875% $14,061,201
Inspection 80 M® 26.3 MGD 32.875% $703.060
Total Cost Estimate 80 NICD 26.3 MCD 32.875% $17.186.518 $5,650,068
Table 2B -Main 257-Part 213,48"/42" Diameter Parallel Relief Line from M-325 to Meter
1-ask Labcl 48/42" Pipc Burleson Burleson % Total Cost Burleson Cost
Capacity Flow Estimate Estimate
Engineering 32 MGD 16.3 MCD 50.937% $688,943
Easements 32 MGD 16.3 MGD 50.937% $485,000
Construction 32 MGD 16.3 MGD 50.937% $8,930,077
Inspection 32 MGD 16.3 MGD 50.937% $446,504
Total Cost Estimate 32 MGD 16.3 M® 50.937% $10,550,524 $5,374,120
8.) Financing Cost. The Customer shall pay its share of the financing costs incurred by Fort
Worth for the Village Creek Parallel Relief Sewer Line Project in accordance with the pro-
rata cost percentages for Part 1, Part 2A, and Part 2B. Financing costs shall consist of the
interest incurred from the date the debt is issued by Fort Worth to the date of payment by the
Customer. As an example, for the water and sewer bonds issued in 2017 by Fort Worth, the
total interest cost is 3.46%,though actual interest rates will be utilized for future debt.
9.) Billing. Upon completion of the construction of the Village Creek Parallel Relief Sewer Line
Project (Parts 1, 2A, and 213), Fort Worth shall calculate the final and actual costs of
engineering, easement and land acquisition, construction, and inspection incurred for the
Village Creek Parallel Relief Sewer Line Project (Actual Project Costs) and submit an
invoice to the Customer(s). The invoice will include a detailed listing of all payments made
for the improvements, separated and totaled by segment (Parts 1, 2A, and 213) and by
category (Engineering, Easements, Construction, and Inspection). The Parties agree that the
Actual Project Costs shall be shared by Customer, the City of Fort Worth (and the City of
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Crowley for Parts 1 and 2A) based on the proportional share of the allocated capacity of the
pipelines, unless otherwise specified. Customer agrees that its pro rata share of the Actual
Project costs may differ from the projection stated in Section 4, and shall be based on the
final design capacity of the pipeline segments (Parts 1, 2A, and 213) divided by the
contractual capacity commitment from the Customer.
10.) Payment. Upon completion of construction and acceptance of the Village Creek Parallel
Relief Line Project (Parts 1, 2A, and 213), Fort Worth shall send an invoice (in accordance
with paragraph 9. above) to the Customer. Upon receipt of the invoice, Customer will review
the invoice for accuracy, responding in writing within 30 days whether they are in agreement
with the final accounting.
Should Customer disagree with and dispute the amount invoiced, Customer shall notify
Fort Worth of the disputed amount(s) within 30 days of receipt of the invoice. Fort Worth
and Customer shall resolve the disputed amount in accordance with Paragraph 24.4 of the
Wastewater Collection Contract.
Payment from Customer shall be as follows:
(A) If the invoiced amount is $14.5 million or less, Customer shall pay the invoiced
amount (plus financing costs), less any disputed amounts, on the Due Date
which shall be the latter of. (i) September 1, 2019, or (n) 30 days from the date
on which Customer receives the invoice.
(B) If the invoiced amount is no more,than $16.0 million, Customer agrees to pay up
to $14.5 million in accordance with (A) above with the outstanding amounts
(plus financing costs), less any disputed amounts, due and payable by
September 1, 2020. Financing costs on the amounts due under this section (B)
shall be prorated from September 1, 2019 to the time of payment.
(C) If the invoiced amount is more than $16.0 million, Customer shall make
payments, less any disputed amounts, of up to $16.0 million in accordance with
(A) and (B) above. The Parties agree to enter into a separate written agreement
with terms for any payments above $16.0 million.
Late payments by Customer to Fort Worth shall accrue interest at the rate of one and one-
half percent (1-1/2%) per month until paid.
11.) Purchased Capacity After Pa ment: The Parties agree that, following Customer's
payment in full of the amount invoiced under Paragraph 9 above, Customer's total purchased
wastewater capacity shall be:
From M325 north: 35 MGD
From M325 south: 25 MGD
12.) Future Capacity Needs. Should the Customer request additional capacity in the future
beyond the capacity requested and paid for as part of this agreement, Fort Worth, at their
discretion, may elect to provide additional capacity within the Village Creek Parallel Relief
Line Project, to be paid for at the pro-rata share of the total project cost, plus an interest
escalation component of 3.46% per year, calculated from the date of the construction
acceptance to the date of the customer request and approval by Fort Worth in writing.
Should Customer have surplus capacity within the capacity identified in Section 11 of
this agreement and Fort Worth wish to utilize this surplus capacity, Customer, at their
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discretion, may elect to provide all or a portion of its surplus capacity within the Village
Creek Parallel Relief Line Project to Fort Worth, to be paid for by Fort Worth at the pro-rata
share of the total project cost, plus an interest escalation component of 3.46% per year,
calculated from the date of the construction acceptance to the date of Fort Worth's request
and approval by Customer in writing.
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This Amendment No. I shall become effective upon the last date of execution by the Parties
below.
i
CITY OF FORT WORTH CITY OF BURLE SON j
JESUS J. CHAPA P, CAS
ASSISTANT CITY MANAGER DEPUTY CITY MANAGER
DATE: �� DATE:
APPROVED AS TO FORM AND APPROVED AS TO FORM AND
��1LEGALITY LEGAL
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CHRISVA LOPEZ- OLS BY: gvaj f,, A,
SR. ASSISTANT CITY ATTO CITY ATTORN Y
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Parallel Relief Sever Lire