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HomeMy WebLinkAboutContract 49533-A1 CITY C NTRACT NO. -I �J-634-1 AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT 49533 AGREEMENT FOR WASTEWATER SERVICE (Village Creek Parallel Relief Sewer Line) THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS COUNTY OF TARRANT This AMENDMENT NO. 1 TO AGREEMENT FOR WASTEWATER SERVICE ("Amendment No. 1') 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 terns 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 11 12 a�n ontract documents, public bidding, award of a construction contract, and construction Ob tration related to the Village Creek Parallel Relief Sewer Line Project. To the extent q4 an nges in plans and specifications of the project are necessitated in connection there Fort Worth shall be solely responsible for any such modifications. 0 ! OFFICIAL RECORD NOF� Q CITY SECRETARY Gays C6 y FT WORTH, TX CO 4� � V 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 213 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 co mection. 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 213 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 lime. 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 Pltunmer and Associates) for the 2 Part 2A and Part 2B engineering is split evenly between the two line 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 Linc from 1�1-295 to X1-423 Task Label 60" Pile Burlesoll But'L,tm Tough Cost Btn�lo,,on Cost Capacity Flow Ds6nale Estimate En ineerinE 80 MGD 6.3 M® '2.875% S�30. Easements 80 MGD 1.3 MGD 2.875% S�PO.(Iw Construction 80 MGD NICO --S8-1 Inspection 80 MGD - i% S Total Cost Estimate 80 MGD 26.3 M 3 $9,872,9 t 53,245,721 Table 2A -Main 257—Part 2A, 60" Diameter Parallel Relief Line from M423 to M-325 Task Label 60" Pipe Burleson Burleson % Total Cost Burieson Cost Capacity Flow Estimate Estimate Engineering 80NtGD )t).= .'rt6l") ,' X-;"., Sr.�. .�a3 Easements 80 iNVID 36.3 \161) 51,.7 33,314 Construction N161) 32.875`341 `;14._061_201 Inspection S41 .MU-) � �<,. V61) 32.875% S-fI"'ooll Total Cost Estimate 80 MGD ,6.3 'r161) 32,8�5% 51 No-. 1 S $5,651t.1168 Table 2B -Main 257—Part 2B,48"/42"Diameter Parallel Relief Line from M-325 to Meter Task LatvI 4S' -t."" Pipe Burleson Burleson % Toaa1 C��,t I�tu�lcson Cost Capacity Flow Isstimate Estimate Engineering v1GD 16.3 MGD 50.937% SM8,943 Easements AGD 16.3 MGD 50.937% 5-N5.000 Construction "AGD 16.3 MGD 50.937% Sx.0 30,077 In;7e .ir7n 4GD 6.3 MGD 5o." MGD 7CLt1; Slii_,,.1 4S {74 1 2() 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 2B), 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 2B) 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 3 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 2B) 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 (u) 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 nullion, 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 Payment: 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 4 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. [The remainder of this page intentionally left blank.] 5 EXHIBIT "A"— Village Creek Parallel Relief Seer Line tq r. M"265 � `_. e;t to7R r x w? `r rr ® y ► ► , sur w Vl ale Crrek?a.a lel F l e€ M Sewar Lira Part I DameterPipeiine M-423 mYRK y.t `d y•TY y Yr`y�r L �0. •► � .._.��I� is a �i #,b - 2 x Ulllafle Creek Parallel Reye' J ^`. Sewer Lira,Part 2a i r 90'Diameter Pipeline F.am h4-43 to h1-32': t Ew►V19C3AYRS�^f ! r. + TOSCANA M-325 I� „1" .. w000m=9P '! FORESTACRE r•>~tr1 D O'SON c� TAYLOR r. REDWING FCgEST+r�E SANDY " SALOWN 4:l W L1Tft� .I;7} •x OW GROVE 8ENDt7N � 'rYE 176'F l., p v F N R'8 1137 •�r ! .,� i _F Fa 3.� r,.+e` 9 RGNCIOAd6L—OWCATki will Ir LUCYTRMULE' a hlt?PfmER � "a-PER ' eOB>tNlidiEFT C1AKW)Ltow — WfNCiRID JRENCCN SOUTHWOOD Burleson 77 Ot�� 1...1��•- � wt r ' i'tl LEVY COUNTY LINE Meter Station RETTA a ria IfP'S 531 RErrA MANSFIELD MADELkiE T r Ri ytV7CT7 Exhibit "A" - Village Creek T Parallel Relief Sewer Line j NAnM This Amendment No. I shall become effective upon the last date of execution by the Parties below. CITY OF FORT WORTH CITY OF BURLESON JESUS J. CHAPA PAUL CAIN ASSISTANT CITY MANAGER DEPUTY CITY MANAGER DATE: 1 ` , 3 ,�? DATE: I O 1 Ito l a: APPROVED AS TO FORM AND APPROVED AS TO FORM AND L GALITY LEGAL CHRIST LOPEZ- O S BY: "A, Avialerle SR. ASSISTANT CITY ATMRNEY CITY ATTORNEY ATTEST G�1TY pr T MARY KAYSE Al C O CITY SECRETAR ,.9s' .. ;;� SEC T Y 1 6