HomeMy WebLinkAboutOrdinance 7054 ro
ORDINANCE NO. ��
AN ORDINANCE
AUTHORIZING THE EXECUTION OF A CONTRACT
BETWEEN THE CITY OF FORT WORTH, TEXAS,
AND TRINITY RIVER AUTHORITY OF TEXAS, AND
LEVYING A TAX TO MAKE THE CITY'S PAYMENTS
UNDER SAID CONTRACT; DECLARING AN EMERGENCY;
AND PROVIDING THAT THIS ORDINANCE SHALL BE
IN EFFECT FROM AND AFTER THE DATE OF ITS
ADOPTION
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WHEREAS, it is necessary and advisable that the
City of Fort Worth, Texas, enter into the Contract herein-
after authorized;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF FORT WORTH, TEXAS:
1. That the Mayor and the City Secretary of said
City are authorized and requested, for and on behalf of the
City of Fort Worth, Texas, to date, sign, seal, and other-
wise execute a Contract in substantially the form and
substance attached hereto and made a part hereof, and said
Contract shall be approved as to form and legality by the
City Attorney of said City.
2. That upon execution said Contract shall be
binding upon the City of Fort Worth for all purposes.
3. That during each year during the term of said
Contract, the City Council of said City shall compute and
ascertain a rate and amount of ad valorem tax which will be
sufficient to raise and produce annually the money necessary
to make the payments required to be made by the City under
I
said Contract, and in every year said tax shall be sufficient
to create a sinking fund of at least 2% as required by
Article 11, Section 5, of the Texas Constitution; and said
tax shall be based on the latest approved tax rolls of the
City, with full allowance being made for tax delinquencies
and the cost of tax collection. Said rate and amount of ad
valorem tax is hereby levied, and is hereby ordered to be
levied, against all taxable property in the City for each
year during the term of said Contract; and said tax shall
be assessed and collected each such year and used for making
the aforesaid payments. Said ad valorem taxes sufficient to
provide for making the aforesaid payments are hereby pledged
irrevocably for such payment, within the limit prescribed by
law.
4. That it is hereby officially found and deter-
mined that a case of emergency or urgent public necessity
exists which requires the holding of the meeting at which
this Ordinance is passed, such emergency or urgent public
necessity being that the execution of the proposed Contract
is required as soon as possible and without delay for neces-
sary and urgently needed public improvements; and that said
meeting was open to the public, and public notice of the
time, place and purpose of said meeting was given, all as
required by Vernon's Ann. Civ. St, article 6252-17.
5. That this Ordinance shall take effect and be
in full force and effect from and after the date of its
passage, and it is so enacted.
1
APPRWED AS TO FORM AND LEGALITY:
o �
City Attorney of the City of
Fort Worth, Texas
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH
SEWER SYSTEM CONTRACT
THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT
WHEREAS, the Trinity River Authority of Texas (hereinafter
sometimes called the "Authority") is a conservation and reclamation
district created by Vernon's Ann. Tex. St. Article 8280-188, pursuant
to Article 16, Section 59 of the Texas Constitution; and
WHEREAS, the City of Fort Worth (hereinafter sometimes
called the "City") is a city duly organized and existing pursuant to
the constitution and laws of the State of Texas; and
WHEREAS, the Authority is willing and able, in order to
carry out a purpose for which it was created, to acquire, by purchase
and construction, for the benefit of the City, part of a .sanitary
sewer system to render sanitary sewage services to inhabitants of the
City, and in connection with such acquisition to make certain improve-
ments and additions to existing sanitary sewer facilities of the City
(with all of such sanitary sewer facilities, including the part thereof
to be acquired by the Authority, together with said improvements and
additions, being hereinafter sometimes collectively called the "Project"
as described in grant number WPC-Tex 964) ; and
WHEREAS, the City has received approval of a grant from
the Environmental Protection Agency of the United States of America to
aid in constructing the Project designated WPC--Tex-964; and
WHEREAS, the Texas Water Quality Board has granted and
given the necessary permits in connection with the Project; and
WHEREAS, the City and the Authority are authorized to make
and enter into this Contract under Vernon's Ann. Tex. St., Articles
8280-188 and 1109j;
IT IS THEREFORE CONTRACTED AND AGREED BETWEEN
THE AUTHORITY AND THE CITY AS FOLLOWS:
Section 1. DEFINITIONS. The terms and expressions used
in this Contract, unless the context shows clearly otherwise, shall
have meanings as follows:
(a) "Project" means the Project as defined in the
preamble to this Contract.
(b) "Board" and "Board of Directors" means the Board
of Directors of the Authority.
(c) "Bond Resolution" means any resolution of the Board
of Directors authorizing the issuance of Bonds
and providing for their security and payment, as
such resolution(s) may be amended from time to time
as therein permitted.
(d) "Bonds" means any bonds to be issued by the Authority
for acquiring, by purchase and construction, its
part of the Project, whether in one or more series
or issues, or any bonds issued to refund same.
Section 2. OBLIGATION OF AUTHORITY TO ACQUIRE. The
Authority agrees to pay, and will pay, approximately 13% of all of
the actual costs of acquiring, by purchase and construction, the
Project, through the issuance of its Bonds to provide the money for
such payment, all in the manner hereinafter described; and the Authority,
by such payment, will thus acquire for the benefit of the City approxi-
mately 13% of the Project.
Section 3. OBLIGATION OF CITY TO ACQUIRE. The City agrees
to pay, and will pay, approximately 87% of all of the actual costs of
acquiring, by purchase and construction, the Project, from the money re-
ceived by the City from the Federal grant for the Project, or from other
sources available to the City, and the City, by such payment, will thus
acquire approximately 87% of said Project.
Section 4. AUTHORITY'S BOND RESOLUTION. The proceeds
from the sale of the Bonds will be used for the payment of all of the
Authority's expenses and costs in connection with the Bonds, including,
without limitation, all financing, legal, printing, and other expenses
and costs incurred in issuing its Bonds, plus an administrative charge
to be retained by the Authority, which charge shall be equal to 1% of
Bonds issued and delivered. Such Bonds will be issued in a mutually
agreeable amount sufficient to cover the estimated amount of all the
aforesaid expenses, costs and charges. A substantial draft of each
Bond Resolution of the Authority, showing the principal amount,
maturities, interest rates, the funds created, the purchaser, and other
2.
pertinent features with respect to the Bonds authorized thereby, must
be delivered to and be approved by the City prior to the delivery to
the purchaser of any Bonds authorized by such Bond Resolution; and the
approval of such draft by the City will constitute agreement by the
City that all provisions of the Bond Resolution are in compliance with
this Contract in all respects.
Section 5. CONSULTING ENGINEERS. The Authority and
the City agree that J. L. Robinson, Director, Fort Worth Water Department,
shall be the "Consulting Engineer" for the Project; that the Project
will be acquired by purchase and construction, in accordance with the
plans and specifications which have been prepared under the super-
vision of the Consulting Engineer. It is further agreed that the
Consulting Engineer may be changed, but only with the agreement of
both the Authority and the City.
Section 6. ACQUISITION CONTRACTS. For the convenience
of the Authority and the City, the City will enter into such contracts
as are necessary to provide for acquiring, by purchase and construc-
tion, the entire Project, and said contracts shall be advertised for
and executed as required by the laws applicable to the City, and also
as required by the City's grant offer from the Environmental Protection
Agency. The Authority shall cause to be deposited from the proceeds
from the sale of its Bonds into a special Project Acquisition Fund,
at such place as is designated by the City, to the credit of the City,
an amount of money which shall be specified in the Authority's Bond
Resolution. The City shall draw on and use said Project Acquisition
Fund to pay the costs of acquiring, by purchase and construction, the
Authority's part of the Project; provided that the City agrees that
expenditures from the Project Acquisition Fund must be approved by
the Consulting Engineer prior to the making of such expenditures.
Any amounts remaining in the Project Acquisition Fund after completion
of the Project shall be deposited in the Interest and Sinking Fund
established pursuant to the Authority's Bond Resolution, and thus reduce
to that extent the payments required to be made by the City under the
Contract.
3.
Section 7. PAYMENTS BY CITY. (a) The Authority will
provide, make available, and render, to and for the benefit of the
City and its inhabitants, the sanitary sewer facilities and sanitary
sewage services of the part of the Project paid for and acquired by
the Authority pursuant to this Contract. It is agreed that the City
shall have the exclusive use of the entire Project for the term of
this Contract. In consideration for the Authority's acquiring,
making available, and rendering to and for the benefit of the City
and its inhabitants, the sanitary sewer facilities and sanitary sewage
services of the Authority's part of the Project, the City agrees to
make the payments hereinafter specified. As further consideration,
it is agreed that the City will have the sole responsibility for
operating and maintaining the entire Project for the term of this
Contract, and that the City will operate and maintain the entire Project
for the term of this Contract; and the City agrees to indemnify and
to save and hold harmless the Authority from any and all claims,
damages, losses, costs, and expenses, including reasonable attorneys'
fees, arising at any time from the acquisition, existence, ownership,
operation and/or maintenance of the entire Project. It is further
agreed that the City's obligation to make any and all payments under
Section 7(b) and (c) of this Contract will terminate when all of
the Authority's Bonds issued in connection with the Project, or any
Bonds issued to refund same, have been paid in full and retired and
are no longer outstanding. It is hereby provided that in further
consideration of the payments made by the City under this Section, the
City shall become the owner of the Authority's part of the Project
when all of the Authority's Bonds, or any Bonds issued to refund
same, have been paid in full and retired; and the payments made by
the City under this Section shall constitute the necessary periodic
or installment payments required to purchase the Authority's part of
the Project; and all payments to be made by the City under this Section
shall be payable from and secured by pledges authorized by Section 2
4.
of Vernon's Ann. Tex. St. Article 1109j, and in the manner hereinafter
provided. It is further understood and agreed that the Authority's
only source of funds to pay the principal of and interest on its
Bonds, and to pay its expenses in connection with its Bonds and the
Project, is from the payments to be made by the City to the Authority
under this Contract.
(b) The City agrees to make the following payments to the
Authority while any of the Authority's Bonds issued in connection
with the Project, or any Bonds issued to refund same, are outstanding:
1. Such amounts, payable semi-annually on or before
the loth day preceding each interest payment
date on the Authority's Bonds, as are necessary
to pay (a) the principal and/or interest coming
due on the Authority's Bonds on the next succeeding
interest payment date, plus the fees and charges
of the Paying Agent for paying or redeeming the
Bonds and/or interest coupons appertaining thereto
coming due on such date, and (b) a fixed semi-
annual charge to cover and reimburse the Authority
for its administrative and overhead expenses directly
attributable and chargeable to the Bonds and the
Project, including the cost of routine annual
accounting reports, in the amount of $500 plus an
annual increase of 5% of the preceding year's total
payment for administrative and overhead expenses.
2. Such amounts, payable upon receipt of a statement
therefor, as are necessary to pay, or reimburse
the Authority for, any extraordinary or unexpected
expenses or costs reasonably and necessarily incurred
by the Authority in connection with the Bonds and
the Project (exclusive of routine administrative
expenses and costs, including the fees and charges
of the Paying Agent for the Bonds, and the cost of
routine annual accounting reports) such as expenses
of litigation, if any, and costs of special studies
and special professional services, if and when
required, by any governmental directive or regulation,
or as may be agreed between City and Authority.
(c) If, in addition to the amount initially issued, the
Authority finds it necessary to issue Bonds for the purpose of
completing the Project to the extent contemplated by this Contract,
all of the amounts to be paid to or retained by the Authority under
all Sections of this Contract shall be increased, and such increased
amounts shall at all times be sufficient to pay the principal of and
interest on all such Bonds. It is understood and agreed that the only
5.
source of funds for the Authority to acquire and complete its part of
the Project is from the issuance and sale of its Bonds (including
additional bonds) pursuant to this Contract.
(d) All payments, including indemnities, required to be
made by the City under this Contract shall be made from the surplus
revenues of the City's combined waterworks and sewer system remaining
after paying all expenses of operation and maintenance of said system
and after paying all debt service, reserve, and other requirements
in connection with the City's waterworks and sewer system revenue
bonds now or hereafter outstanding; and said surplus revenues are
hereby pledged to making such payments required under this Contract;
or if said surplus revenues should not be available or sufficient at
any time for making such payments, or any necessary part thereof,
required under this Contract, then, to the extent required, such
payments shall be made from the City's General Fund and the City's ad
valorem taxes, all as hereinafter provided. The City shall make pro-
vision in each annual City Budget for the payment of all amounts
required to be paid by the City under this Contract. In preparing
the budget the City may take into consideration the estimated surplus
revenues of the City's combined waterworks and sewer system to be
remaining after paying all expenses of operation and maintenance of
said system and after paying all debt service, reserve, and other
, requirements in connection with the City's waterworks and sewer system
revenue bonds now or hereafter outstanding; and the City hereby
covenants and agrees that it will fix, charge and collect rates for
water and sewer services of said system in such amounts as will
produce surplus revenues as aforesaid sufficient to provide for making
all payments required to be made by the City under this Contract.
However, to the extent that such surplus revenues are not available at
any time to make such payments, then the City's ad valorem taxes in
the City's General Fund shall be used to make such payments, and the
proceeds of an annual ad valorem tax are hereby pledged for such
6.
payments to the extent so required, in accordance with Vernon's
Ann. Tex. St. Article 1109j. During the current year, and during
each year hereafter, the governing body of the City shall compute
and ascertain a rate and amount of ad valorem tax which will be
sufficient to raise and produce the money necessary to make all or any
necessary part of such payments, including indemnities, required to
be made by the City under this Contract, and in every year said tax
shall be sufficient to create a sinking fund of at least 2% as required
by Article 11, Section 5, of the Texas Constitution. Said rate and
amount of ad valorem tax is hereby pledged to such payments, to the
extent required, and it shall be assessed, levied, and collected
against all taxable property in the City for each such year. Reference
is hereby made to the Ordinance passed by the governing body of the
City which authorizes the execution of this Contract and also levies
the tax, and orders the levying of the tax, as required by this
Section.
(e) Recognizing the fact that the City urgently requires
the facilities and services covered by this Contract, and that such
facilities and services are necessary for actual use and for standby
purposes; and further recognizing that the Authority will use the
payments received from the City hereunder to pay, secure, and finance
the issuance of the Bonds, it is hereby agreed that if and when any
Bonds are delivered, the City shall be obligated to make the payments
required by this Contract, regardless of whether or not the Authority
actually provides such facilities and services, or whether or not
the City actually receives the Federal grant, and the holders of the
Bonds shall be entitled to rely on the foregoing agreement and
representation, regardless of any other agreement between the Authority
and the City.
Section 8. COMPLIANCE WITH GRANT OFFERS. The City agrees
that with respect to the Project it will fulfill and comply with all
assurances made by the City in the grant offers received from the
7.
" nvironmental Protection Agency and accepted by the City; and that
with respect to the Project the City will discharge all of its
responsibilities and comply with all of its agreements with the
Environmental Protection Agency in connection with the grant offers
and the Federal grants made pursuant thereto. The Authority agrees
that it will join with and assist the City in complying with the fore-
going commitments to the Environmental Protection Agency, subject
to the provisions of this Contract.
Section 9. METERING. It is understood and agreed that
neither the Authority nor the City shall be under obligation to furnish,
operate, or maintain metering equipment in connection with the
Project under this Contract, unless metering is required by the
Environmental Protection Agency.
Section 10. ACQUISITION. The Authority and the City agree
to proceed promptly with the acquisition, by purchase and construction,
of the Project. The Authority and City hereby covenant that they
will make a diligent effort to complete such acquisition as soon as
practicable. The Authority and the City do not anticipate any delays
in completing the acquisition of the Project, but the Authority and
the City shall not be liable to each other for any damages occasioned
by the acquisition or completion of the Project, or any delays in
completion of the Project.
Section 11. CONDITIONS PRECEDENT. The obligation on
the part of the Authority to acquire its part of the Project shall be
conditioned upon the following:
(a) sale of Bonds in an amount sufficient to
assure the acquisition of its part of the
Project; and
(b) the Authority's and the City's ability, or
the ability of the contractors, to obtain
all material, labor, and equipment necessary
for the acquisition of the Project.
Section 12. USE OF CITY'S PUBLIC PROPERTY. By these
presents, City authorizes use by the Authority of streets and general
utility or sewer easements of City for construction, operation and
8.
maintenance of the Project, so long as such use by the Authority does
not interfere with any lawful use by the City, and subject to all of
City's Ordinances respecting the manner of such use and restoration
of lands, pavement or improvements resulting from exercise of the
rights provided in this Section.
Section 13. FORCE MAJEURE. If, by reason of Force
Majeure, any party hereto shall be rendered unable wholly or in part
to carry out its obligations under this agreement then such party
shall give notice and full particulars of such Force Majeure in
writing to the other parties within a reasonable time after occurrence
of the event or cause relied upon, and the obligation of the party giving
such notice, so far as it is affected by such Force Majeure, shall be
suspended during the continuance of the inability then claimed,
except as hereinafter provided, but for no longer period, and any
such party shall endeavor to remove or overcome such inability with all
reasonable dispatch. The term Force Majeure as employed herein, shall
mean acts of God, strikes, lockouts, or other industrial disturbances,
acts of public enemy, orders of any kind of the Government of the
United States or the State of Texas or any civil or military authority,
insurrections, riots, epidemics, landslides, lightning, earthquake,
fires, hurricanes, storms, floods, washouts, droughts, arrests,
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. It is understood and agreed that the settlement of strikes
and lockouts shall be entirely within the discretion of the party
having the difficulty, and that the above requirement that any Force
Majeure shall be remedied with all reasonable dispatch shall not require
the settlement of strikes and lockouts by acceding to the demands of
the opposing party or parties when such settlement is unfavorable to
it in the judgment of the party having the difficulty. It is specifi-
cally excepted and provided, however, that in no event shall any Force
9.
Majeure relieve the City of its obligation to make payments to the
Authority as required under Section 7 of this Contract.
Section 14. REGULATORY BODIES. This Contract and the
Project shall be subject to all valid rules, regulations, and laws
applicable thereto passed or promulgated by the United States of
America, the State of Texas, or any governmental body or agency
having lawful jurisdiction or any authorized representative or agency
of any of them.
Section 15. TERM OF CONTRACT. That the term of this
Contract shall be for the period during which the Authority's Bonds,
or any Bonds issued to refund same, are outstanding and unpaid.
IN WITNESS WHEREOF, the Authority and the City, acting
under authority of their respective governing bodies have cuased
this Contract to be duly executed in several counterparts, each of
which shall constitue an original, all as of the 19th day of July,
1974, which is the date of this Contract.
TRINITY RIVER AUTHORITY OF TEXAS
By
General Manager
ATTEST:
Secretary, Board of Directors
(SEAL)
CITY OF FORT WORTH, TEXAS
By
Mayor
ATTEST:
City Secretary
(SEAL)
APPROVED AS TO FORM AND LEGALITY
City Attorney
LINE 4 City of Fort Worth, Texas
'A"'FF Mayor and Council Communication
TE REFERENCE SUBJECT: Contracts with Burleson, Crowley PAGE
NUMBER and Trinity River Authority for Financing4
�a '915/74 C-2908 of Village Creek Collector Extension i °r
-On October 18, 1971, (M&C C-,2098), the City Council was advised of a proposed
1�1 plan to construct the Village Creek Sanitary Sewer Collector to the Burleson
and Crowley Sewage Treatment Plants and the proposed method of financing,
including the use of Trinity River Authority Bonds. The employment of
consulting engineers was authorized to prepare plans and specifications.
On February 28, 1972 (M&C CT2180) , the City Council authorized Sanitary
Sewer Service Contracts with. Burleson and Crowley, and execution of an agree-
ment with the Trinity River Authority for a loan to aid in financing of the
Village Creek Sewer Extension to Burleson and Crowley.
Under the provisions of the contracts with the two cities, Burleson and
Crowley were to share in the repayment of the Trinity River Authority loan,
with Burleson to pay 74 per cent of the semi-annual payments required to
repay the loan, and the City of Crowley to repay the remaining 26 per cent
of the semi-annual payments required for the loan retirement.
At that time, it was necessary for the City of Fort Worth to enter into an
agreement with the Trinity River Authority for a loan in the amount of 25
per cent of the project cost in order to qualify the City for a 55 per cent
federal grant. Therefore, based on the then estimated eligible project
cost of $2,080,000, it was anticipated that the TRA loan to be repaid
by the cities of Burleson and Crowley would amount to $520,000.
Passage of Public Law 92-500, known as the 1972 Amendments to the Water
Pollution Control Act, entitled the City of Fort Worth to a 75 per cent
grant to apply toward construction of the Village Creek Collector Sewer
Extension to Burleson and Crowley. An immediate application was made for
increase of the federal grant obtained for the Village Creek Collector
Sewer Extension to $1,591,500, which was 75 per cent of the estimated
eligible project cost of $2,122,000 at that time. The increase in federal
grant was accepted by the City in the increased amount of $1,591,500 on
January 9, 1973.
On November 5, 1973 (M&C C-2649), the City Council approved award of a
contract for the Village Creek Collector Sewer, Section 2, which was the
final segment of the Collector Sewer System Extension to Burleson and
Crowley. At that time, based on all bids received and contracts awarded,
it was anticipated that the total project cost, exclusive of right-of-way,
which is ineligible for federal participation, would be $2,132,000. There-
fore, it was necessary to apply for an increase in the federal grant from
$1,591,500 to $1,756,500, which would represent 75 per cent of the antici-
pated increased eligible project cost of $2,132,000. However, due to the
severe competition for federal funding under Public Law 92-500, it was not
anticipated that the increase in federal grant would be received, and
the Council was advised in M&C C-2649 that the adjusted estimated project
DATE REFERENCE SUBJECT: Contracts with Burleson, Crowley PAGE
NUMBE9/5/74. C-2908 and Trinity River Authority for Financing 2 ,f 4
of Vill age Creek GolleGter Extension
cost share for Burleson and Crowley would be approximately $430,925.
Assuming that the increased federal grant was not obtained, the Burleson
and Crowley share of the estimated project cost at the time of approval
of M&C C-2649 was $430,925, leaving the City of Fort Worth's project
cost at $352,575.
Subsequently, the requested increase in the federal grant amount to
$1,756,500 was approved by EPA and accepted by the City of Fort Worth on
November 21, 1973. Based on this amended federal grant participation,
the Crowley and Burleson share of the net project cost was recomputed
and determined to be $355,065. Based on the sharing of costs contained
in the original contracts between the City of Fort Worth and the Cities
of Burleson and Crowley, Burleson's 74 per cent share of this estimated
project cost was $262,748, and Crowley's 26 per cent share was $92,317.
The two cities were advised by letter of the reduction in their project
cost, and it was suggested that the contracts between the City of Fort
Worth and the cities of Burleson and Crowley be amended to reflect the
lesser amount of project cost participation required by virtue of the
increase in the federal grant participation. After review of the
amended information, the City of Crowley determined that they wished to
pay all but $50,000 of their project cost share in cash, setting their
loan requirements at $50,000. Added to the City of Burleson loan
share of $262,748, this made a loan requirement total of $312,748.
The percentage of participation of the two cities in the semiannual
loan payments would thus be changed to Burleson, 84 per cent and
Crowley, 16 per cent, Accordingly, amendments to the contracts between
the City of Fort Worth and the Cities of Burleson and Crowley were
prepared to reflect the facts that the loan to be obtained from TRA
would amount to approximately 13 per cent of the project cost of the
Village Creek Collector Sewer Extensions to Burleson and Crowley, and that
the City of Crowley's share of the semi-annual payments required for repayment
of that loan would be 16 per cent, while the City of Burleson's share of such
payments would be 84 per cent. These contract amendments have been submitted
to and approved by the governing bodies of the City of Crowley and the City
of Burleson, and are now submitted for approval by the City Council of
the City of Fort Worth.
To recapitulate, the following tabulation is presented to represent the
anticipated final participation costs and the estimated total project
cost of the Village Creek Collector Sewer Extension to Burleson and
Crowley.
DATE REFERENCE SUBJECT: Contracts with Burleson, Crowley7PA13ENUMBER and Trinity River Authority for Financin9/5/74 C-2908 of Village Creek Collector Extension �--
Total Estimated Project Cost
(including right-of-way at $33,000) $2,402,073.13
Less the Federal Grant as accepted
on November 21, 1973 $1,756,500.00
Net estimated project cost $ 645,573.13
Less Fort Worths share of the project
cost at 45 percent $ 290,507.91
Net Burleson and Crowley's estimated
share of the project cost $ 355,065.22
Less $42,316.96 to be paid by Crowley
in cash $ 42,316.96
Net amount of TRA loan requirement $ 312,748.26
In order to cover the cost of preparing and selling bonds, the amount of
the loan to be obtained from TRA is $325,000. The contract between the
City of Fort Worth and the Trinity River Authority will require sale by
the Authority of bonds in the amount of $325,000, with $315,000 to be
delivered to the City of Fort Worth, leaving approximately $10,000 to
defray the costs of issuance of bonds by the Trinity River Authority
of Texas. The bonds will provide for an interest rate of 6 3/4 per cent
for maturities 1976 through 1985, and 7 per cent for maturities 1986 through
1995, with the bonds to be retired in 1995. The bonds are subject to
redemption at any time on or after August 1, 1984, but such premature
redemption would require substantial penalties through August 1, 1988,
After that time they may be redeemed without penalty. Therefore, it is not
anticipated that the bonds will be redeemed prior to their normal maturity
date.
Recommendation
It is recommended;
1) An ordinance be adopted to authorize a Waste Disposal Contract
with the Trinity River Authority of Texas and that a resolution
be adopted to approve the bond resolution of the Authority
pursuant to the contract; and
2) The amendment in the contract between the City of Fort Worth
and the City of Crowley (City Secretary No. 7064), and the
amendment in the contract between the City of Fort Worth and
the City of Burleson (City Secretary No. 7065), be approved,
changing the percentage of the project cost to be financed by
1
DATE REFERENCE SUBJECT: Contracts with Burleson, Crowley PAGE
NUMBER and Trinity River Authority for Financing
9/5/74 C--2908 of Village Creek Collector Extension 4 °f 4
a TRA loan, and changing the percentage of each city`s partici-
pation in the semiannual payments required to retire that loan.
RNL/f
SUBMITTED BY: DISPOSITIO COUNCIL: PRO Y
APPROVED ❑ OTHER (DESCRIBE)
GJ)
lt�41at )1,lalloe, CITY SECRETARY
DATE
CITY MANAGER i/��