HomeMy WebLinkAboutContract 17254 9,
(361TY SECRETARY
CONTRACI
TRINITY RIVER AUTHORITY OF TEXAS .." DEN TON CREEK
'EM AMENDATORY CONTRACT
WASTEWATER INTERCEPTOR SYST:
THE STATE OF TEXAS
r
TRINITY RIVE AUTHORITY O'F TEXAS
THIS TRINITY RIVER AUTHORITY F' TEXAS DENTON CREEK
WASTEWATER INTERCEPTOR SYSTEM AMENDATORY CONTRACT (
"Amendatory Contract") made and entered into as o f the 26th day
of PRI L, 1,9!89 the "'Ccontract Date" , by and between TRINITY
RIVER AUTHORITY OF TEXAS the "Author lt l an agency and
political subdivision of the State of Texas being a conserva-
tion and reelamat en istr .ct created and functioning under
Article 16, Section 519 of the Texas Constitution, pursuant to
Chapter 518 , Acts of the 54th. Legislature of the State of
Texas, Regular Session, 1955, as amended (the "Authors-ty Aot11
and the following:
CITY O F FORS' WORTH, IN TA NT COUNTY, E S
CITY OF HASLET, IN TAR RANT COUNTY, TEXAS, and
CITY OF ROANOKE, IN DENTON COUNTY, TEXAS,
(collectively the "Cities") .
I T N E S S E T
WHEREAS, each of the C t1es 'is a duly created c ity and
polit ical subdivi S ion of the State of Texas operating under the
Constitution and laws of the State: of Texas and
WHEREAS, the Authority and the Cit ies are author ized to,
enter into this Contract pursuant to the Authority Acti,, Chapter
30, Texas Water Code, Vernon's Ann. Tex Civi. St Article
CITY, SJUL I ARY
1 WORTH, TEX*
4413 (32c), the "Interlocal Cooperation Act") and other apipill-
cable laws; and
WHEREAS., pursuant to a separate contract dated as of
October 28,, 1918l7, the Authority has agreed to acquire, con-
struct, own, and operate a regional wastewater treatment system
to serve the Cl*tl'es, within the watershed or drainage area of
Denton Creek,, a tributary of the Trinity River, located, :Ln
Denton and Tarrant Counties,, Texas the "Regional Wastewater
System") ; and
WHEREAS, such Contract does not provide for the r"'aciLlhies
required to transport the Wastewater of the Cities from the
Denton Creek drainage area into the Regional Wastewater System;
and
WHEREAS, under the TRINITY RIVER AUTHORITY OF TEXAS
DENTON CREEK WASTEWATER INTERCEPTOR SYSTEM CONTRACT made and
entered into by and between the Authority and the C1 lee as of
October 28, 1987 the "Interceptor Contract"') , the Authority
has agreed to acquire and construct the facilities requi' red to
transport, Wastewater of the Cities from the Denton Creek
drainage area into the Regional Wastewater Systemol and
WHEREAS such Wastewater transportation f acill Allies which,
w 11 serve the Clot 0
ies (hereinafter called the "Interceptor
41 6 ol
System"') are and will be described in an engineering report of
Rady & Associates, Fort Worth, Texas,, entitled "Comprehensive
2
Feasibi 1,
"1 a ty Study on Denton Creek Regi"lonal Wastewater System",
dated August, 1987 * and
If
WHEREAS, pursuant to the Interceptor Contract the Authori-
ty 'in 'it ially 'issued the Tr inity River Authority of Texas Denton
Creek Wastewater Interceptor, System Revenue Bonds, Series 1987,
a
in the principal amount of $1, 400, 000 (the "Series 1987 Bands"')
to provide part of the funds
i
requi red to acqure and construct
the Interceptor System,* and
WHEREAS, the or ig ienal estimated cost of the Interceptor
System of $3, 300, 000 was considerably low, and ilit will be
necessary for the Authority to issue approximately $5, 595, 000,
whether actually more or less, in principal amount of Bonds,
pursuant to the Interceptor Contract, as amended by this
Amendatory Contract, in order to refund the Series 1987 Bonds,,,
which were issued on a temporary basis,,, and to provide the
funds in such amounts as are actually required for finally
0,
completing the acquisition and construction of the Interceptor
c 41, 11
System in a cordanc e with, the Engineering Report* and
I
WHEREAS, the Cities of Fort Worth and Roanoke are solely
responsible for paying the Annual Requirement (debt service and
other requirements) in connection with the Series 19,87 Bonds
issued pursuant to the original Interceptor Contract (91, 52,%
thereof payable by Fort Worth and 8 . 48% thereof playable by
Roanoke)l , with the City of Haslet having paid to the Authority,
pursuant to the Interceptor Contract,, the sum of $3122, 5145 in
3
cash, to be applied to pay for a 10- 44% interest In the capaci-
0
ty of the Interceptor System, based on the original estimated
cost thereof, but with provision for an increased payment 'in
cash If the actual cost should be greater; and
It
WHEREAS, based on present estimates of cost, and having
received bids for the actual construction of the Interceptor
System, it would be required under the original Interceptor
Contract that Haslet pay at least an additional approximately
$1514, 000 to acquire a 10,44% 'interest in the capacity of the
Interceptor System,,, and
WHEREAS, it has now been determined by the City of Haslet
that it does not wish to obtain the full 10.44% 'interest in the
c *
c i e tees of the Intrceptor System under the tes of the
apa
original "Interceptor Contract# and
WHEREAS,, it is agreed between the parties hereto, as
hereinafter provided, that the cash sum previously paid and
advanced by Haslet shall provide it with a 7. 02% interest in
the capacity of the Interceptor System, that Haslet will not be
obligated to pay any additional sum in order to acquire said
7. 012% *nter�est ire an addi
1 , that Fort Worth will acqu *ti,onal
3 .42% interest 'in the capacity of the Interceptor System, (a
total of 85- 38% instead of the original 81. 96%) in return for
paying 91,83% of the Annual Requiremen t in cony ecti' on with all
Bonds 'issued under the Interceptor Contract, as amended by this
Amendatory Contract, 'instead of the 911. 52% for which it was
4
0 ligated under the original Interceptor Contract, and that
Roanoke will be obligated to pay 8* 17% of the Annual Require-
ment in connection with all Bonds 'issued under the Interceptor
Contract, as amended by this Amendatory Contract, instead of
the 8 . 8%, for which it was obligated under the original Inter-
ceptor Contract, in return for its 7- 60% 'interest in the
capacity of the Interceptor System.
NOW THEREFORE, it 'i' s agreed by and between the parties
hereto that.,
SECTION 1 Sections 3 (a) ,, 10(b) ,, 10!(f) , and 11(d) ,,
respectively, of the Interceptor Contract are hereby amended as
set forth 'in, (A) , (B) and (C) as follows:
(A)
Section, 31.. INTERCEPTOR SYSTEM USE BY THE CITIES, (a) 'i' s
hereby amended to be and read as follows,
" (a) In consideration of the payments to be made by each
City, respectively., under this Contract each of the Cities,
respectively, is entitled to and shall have a right to a
oil
percentage of the total use, capacity, and output of the
Interceptor System as follows,
Fort Worth 85* 38%
Haslet 7 *02%
Roanoke 7o6O%
and may discharge, its Wastewater generated within the Denton
Creek drainage area into the Interceptor System up to such
5
percentages,? respectively, at its Point or Points of Entry
hereinafter descr'bed, sublect to the restrictions hereinafter
stated* and provide that each such City must transport, such
Wastewater to its Po int, or Points of Entry into the Interceptor
System
(B)
Section 10 PAYMENTS BY THE CITIES (b) and (f) ,, are
hereby amended, respectively, to be, and read as follows:
I
Of (b) For each Annual, Payment Period during the to of
th' s, Contract
1 , the proport onate share of the Annual, Require-
men,t f or each such Per 1-a f or each of the Cities, excepting
Haslet, is hereby fixed and shall be pay. by each of the
cities, excepting Haslet, in the following percentages, respec-
tively 0
1 until Bonds have been 'issued and delivered under the
I
Interceptor Contract, as amended,, for the purpose of refunding
4,
the Series 1987 Bonds and completing the, acquisition and
construction of the Interceptor System,
Fort Worth 00" "M 10M vow mom 91* 52%
Roanoke 000* 4*00 40M *MW mom No", 8 , 48%.: and
(11) after Bonds, in one or more issues or instal lments,
have been *issued and delivered under the Interceptor Contract,
as amended, for the purpose of refunding the Series 1987 Bonds
and in such amounts as are actually required for finally
6
completing the acquisitton and construction of the Interceptor
System in accordance with the Engineering Report,*
Fort W'o rth 0", *NW NOW 9 1 o,8 3%
Roanoke 8,* 17%,o
Each such City is responsible solely for its fixed annual
percentage of the Annual Requirement, as set, forth above, and no
City shall,, or is obligated to, make any payment of the part of
the Annual Requirement for which any other City is responsi-
ble. 11
11 (f) For the Wastewater f acil "it ies and services to be
provi IN t
ded to the City of Haslet pursuant to this, Cunt r, and
specifically the right to use 7., 02% of the capacity of the
Interceptor System., the City of Haslet has paid to the Authori-
ty the sum oIf $3,22,,545, and it is agreed by and between the
parties hereto that such sum is reasonable and sufficient for
such purpose. "
(C)
IN
Section 11. SPECIAL PROVISIONS,* ('d) 'is hereby amended to
be and read as follows,:
11 (d) Each of the Cities agrees throughout the to of this
Contract to continuously operate and maintain Its combined
waterworks and sewer system and to, fix and collect such rates
and charges for water and sewer service,s to be supplied by its
combined waterworks and sewer system as aforesaid as will
preduce revenues in an amount equal to at least (i) a.11 of the
7
ov-terating "stem and maintenance expenses of such sys , including
e
#
sp tic irically the payments by such Cities, excepting Haslet,
under this Contract, and (1* I* ) all other amounts, as required by
law and the provisions of the ordi nances or resolutions author-
# 0 "ts revenue bonds or other obligat"
izing 1 ions now or hereafter
outstanding, including the amounts required to pay all princi-
pal of and 'Interest on such bonds and other obligations. 11
SECTION 29 All other terms and provisions of the original
Interceptor Contract shall be and remain in full force and
effect, and this Amendatory Contract shall be effective upon
its execution by all parties hereto.
IN' WITNESS WHEREOF, the parties, hereto acting under
authority of their respective governing bodes have caused thi' s
Amendatory Contract to be duly executed in several counter-
parts, each of which shall constitute an original,, all as of
the day and year first, above written, which is the date of this
Contract.
TRINITY R AUTH Y OF TEXAS
BY
Genera anager
ATTEST*
;ecx, to Board of Directors
(AUTHORITY SEAL)
8
�m
CITY OF FORT WORTH, TEXAS
Af
City Manager
ATT 'S T'
(CITY SEAL)
APPROVED AS TO FORM AND LEGALITY
y orney, City of Fort Worth�
Texas
CITY OF HAS LE ,i TEXAS
BY
mayor
ATTEST
City Secretary
('CITY SEAL),
CITY OF ROANOKE, TEXAS,
BY
Mayor
ATTEST
citi`Secrejvdry
(CITY SEAL �q
contraot4u,
�y
Date
9
o
we k w9
y
,m
czh of Fort Worth,-, exas
MaYor an,id ciouncll ommunication
"' . R'EFEREN'CE PAGE
NUMBED WASTEWATER
04/18/89 C 16000 INTERCEPTOR SYSTEM WITH THE TRINITY I of
RECOMMENDATION111,
it 0
is recomimended that the City Counc authorize tie Cis ty Manager to execute
an amiendatory, contract for the DRnton C elek Re
am
le �
7,.v„+w w µ ikmiw. a+wod#�MKK6u+wm+n Wmm'a�N AY w;W1'J1 r,Dnwe'ro rrY
m ' uurl pauw� ( u P vx,
DI SCUSS ION
uaW wu oo mnmm rr.a iiwi' ry N' im,iti.,
the City f Fort participated a contract s unwed October 28, 19 7
neu a u, he u �r�i ty River Authority agreed to ac re, r st uct ow:n and
e a e a re a waste at r
�o � � , serves the cities, � the true
n
watershed r drainage! area of Denton Creek . The Interceptor Contract, was
entered into on the same date which authorized the Authority, to acquire and
conist uct the facilities required a to transport as,t a e a the cities from
'h Denton r drainage a nage area into, the Regional Wastewater S stem!►
The 198,7 contract provided f'or system capacity land proportional financing
from � � np t a payment
of $322x5,45 relpresented a - t es the capacity of the interceptor
system'. Fort Worth's ca ac,1 ty of 81.96% and Roanoke's capacity of 7 ,,60% were
e
to i d by, a 91.52% share of system financing for Point Worth, and 8.48 for
Roanoke.1
Following approval of Project Contracts 'in OctoberI, 19 7 1.4 m n
System Revenue Bonds were issued t,o fund design and l� and ac 'u s i t i" ou
assoc a,ted with Interceptor System, 'Project development has progressed
to a psi u t where th,e design f' the project is complete., project ha,s been
advertised for bids c have ecru n ,a d� construction contract awards
are lid to re rated to the Aprilll , 1989 Trinity River Authority
hoard of D rad ar 's meeting,
Based upon the bids rece ed, the totals project cost is current $4.,569,235
which, includes costs associated with construction , an
E c u s u r or s
c lm a es to are original
project cost estimate, of $3,227,860,. A comparison the two costs is made
in Exhibit A. It should be noted that the original a cost estimate was based,
on a prieliminiary layout which nc ded approximately e ,X00 linear feed I ess
pipeline han the current delsigno Additi*onally, thwe original cost estimate.,
underesti routed costs foir engineering and land acquisition and omitteld costs
associated with construction, contract administration and inspection. The
large number r bids received 'were re extra y competitive and reflects t'h
true cost of construction the Interceptor Syste m
”' e System contracts provide that the total project costs be fi narked between
the Cities Fort Worth and Roanoke, however, the City of Haslet u u st elet
is s ba re I a u a ' costs our a cash ass Haslet finds this op nn cost
DATE' REFERENCE suBJEcTAMENDATORY CONTRACT FOR THE PAGE
NUMBER
�DENTON' CREEK REG101NAL WASTEWATER
04/18/89 C-11600 TH 'THF
RIVER, AUTH01RITY
cost, pirohibitiove at this, time ,. In! evaluating alternatives with the cilties*
the C*ty of Fort Worth, geographically thle only city wMch cou�ld potentially
take adva,ntage: of additi,oinial caplacity in 'the interceptor system, could,
purcha,s,e a, portion of 'the City o,f Haslet 's interceptor system capacl"' ty
equivialent, to Haslet " s additional cost obligations . Und,er th�ese terms ,
Haslet could repurchase the capacity from th,e City of Fort, Worth, at a fu�ture
time when Hasliet needed addlitional capacity ., Authority management has
proceeded with the development of this latter alternati1ve in that it
represents th�e, only practical alternative to, k,eep the piroject movi*n!lg through
construction, and subsequently into service , This alternative approach
requires that the original Interceptor Sysite,m contracts, be amended resulting
in the following revised contract, stipulations,,
Revised
Original Revised System
An, amendment to t,he i� n,terceptor system pro, *ect contriacts has been pr,epa,red
wh'ch ref'lects t,he revised capacity rights for two of the three Cities . A
and a debt service sc,hedule has been prepared. Each City s, approva,l of the
Denton Crelek Regional Wastew,ater Interceptor Systern Amendatory, Contract is
needed in order to proceed with, this project-s development.
RAM-,m/d6
SUBMITTED FOR THE DISPOSITION BY COUNCIL PROCESSED BY
CITY MANAGER'S Ruth,, Ann McKinney APPROVED
OFFICE BY
ORIGINATING OTHER (DESCRIBE)
DEPARTMENT HEAD: Richard Sawey CITY SECRETARY
FOR ADDITIONAL INFORMATION