HomeMy WebLinkAboutContract 19797CITY SECRETARY
CONTRACT Noi9J.I9?
TRINITY RIVER AUTHORITY OF TEXAS -
DENTON CREEK WASTEWATER INTERCEPTOR SYSTEM CONTRACT
(CADE BRANCH INTERCEPTOR EXTENSION PROJECT)
THE STATE OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS
THIS TRINITY RIVER AUTHORITY OF TEXAS - DENTON CREEK
WASTEWATER INTERCEPTOR SYSTEM CONTRACT (CADE BRANCH INTERCEPTOR
EXTENSION PROJECT) (the "Contract") made and entered into as of
the 26th day of AUGUST, 1992 (the "Contract Date"), by and
between TRINITY RIVER AUTHORITY OF TEXAS (the "Authority"), an
agency and political subdivision of the State of Texas, being a
conservation and reclamation district created and functioning
under Article 16, Section 59, of the Texas Constitution,
pursuant to Chapter 518, Acts of the 54th Legislature of the
State of Texas, Regular Session, 1955, as amended (the
"Authority Act"), and the following:
CITY OF FORT WORTH, IN TARRANT COUNTY, TEXAS,
CITY OF KELLER, IN TARRANT COUNTY, TEXAS, and
LAKE TURNER MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT
COUNTY AND DENTON COUNTY, TEXAS,
(collectively the "Users").
W I T N E S S E T H:
WHEREAS, each of the Cities of Fort Worth and Keller (the
"Cities") is a duly created city and political subdivision of
the State of Texas operating under the Constitution and laws of
the State of Texas and its Home Rule Charter; and
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WHEREAS, Lake Turner Municipal Utility District No. 1 of
Tarrant County and Denton County, Texas (the "District") is a
political subdivision of the State of Texas created and
functioning under Article 16, Section 59 of the Texas
Constitution, pursuant to Chapter 1032, Acts of 1987, 70th
Texas Legislature, Regular Session; and
WHEREAS, the Authority and the Users are authorized to
enter into this Contract pursuant to the Authority Act, Chapter
30, Texas Water Code, Chapter 791, Texas Government Code (the
"Interlocal Cooperation Act"), and other applicable laws; and
WHEREAS, pursuant to various contracts with "Contracting
Parties", as defined therein, including a contract with each of
the Users, the Authority has acquired, constructed, owns, and
operates a regional wastewater treatment system to serve the
Users within the watershed or drainage area of Denton Creek, a
tributary of the Trinity River, located in Denton and Tarrant
Counties, Texas (the "Regional Wastewater System"); and
WHEREAS, such contracts do not provide for the facilities
required to.tr�n�p. rt Wastewater of the Users from the Denton
Creek into the Regional Wastewater system; and
s;
-WIIERBlRfi1 U @z this Contract the Authority proposes to
acquire and construct the facilities required to transport
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certain Wastewater of the Users from the Denton Creek drainage
area into the Regional Wastewater System; and
WHEREAS such Wastewater transportation facilities which
will serve the Users (hereinafter called the "Project") are and
will be described in an engineering report of Carter & Burgess,
Inc. Consulting Engineers, Fort Worth, Texas, entitled "Trinity
River Authority Cade Branch Sanitary Sewer Interceptor
Extension Study", dated May, 1992; and
WHEREAS, such report, including all amendments, supple-
ments, and change orders thereto, heretofore or hereafter made,
is hereinafter called the "Engineering Report", and
WHEREAS, it is expected by the Users that as soon as
practicable after the execution of this Contract the Authority
will issue Bonds payable from and secured by Annual Payments
made under this Contract by the Cities of Fort Worth and Keller
which, together with the cash payments to be made by the
District, will be sufficient to provide the Project.
NOW, THEREFORE, in consideration of the mutual covenants
and agreements herein contained, the Authority agrees to issue
its Bonds and to provide the Wastewater transportation facili-
ties and services of the Project to the Users under this
Contract, and to acquire and construct the Project, upon and
subject to the terms and conditions hereinafter set forth,
to -wit:
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Section 1. DEFINITION OF TERMS. The following terms and
expressions as used in this Contract, unless the context
clearly shows otherwise, shall have the following meanings:
(a) "Annual Payment" means the amount of money to be paid
to the Authority by each of the Users during each Annual
Payment Period as its proportionate share of the Annual Re-
quirement.
(b) "Annual Payment Period" means the Authority's Fiscal
Year, which currently begins on December 1 of each calendar
year and ends on the last day of November of the next calendar
year.
(c) "Annual Requirement" means the aggregate during each
Annual Payment Period of the Bond Service Requirements with
respect to the Bonds for such Annual Payment Period, all as
more specifically described and defined in Section 9 of this
Contract.
(d) "Bond Resolution" means any resolution of the Author-
ity which authorizes any Bonds.
(e) "Bonds" means all bonds hereafter issued by the
Authority, expected to be in one or more series or issues, and
the interest thereon, to acquire and construct the Project
(including all bonds issued to complete the acquisition and
construction of the Project), and any bonds issued to refund
any Bonds or to refund any such refunding bonds.
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(f) "Regional Wastewater System Contracts" means and
includes all contracts, and all amendments thereto or replace-
ments thereof, heretofore or hereafter entered into between or
among the Users and others and the Authority with respect to
the Regional Wastewater System.
(g) "Regional Wastewater System" means the Authority's
"Regional Wastewater System" as defined in the preamble to
this Contract, and includes all facilities acquired, con-
structed, or operated by the Authority pursuant to the "Region-
al Wastewater System Contracts".
(h) "Users" means the "Users", as defined in the first
paragraph of this Contract.
(i) "User" means any one of the Users.
(j) "District" means Lake Turner Municipal Utility
District No. 1 of Tarrant County and Denton County, Texas.
(k) "Engineering Report" means the "Engineering Report"
as defined in the preamble to this Contract.
(1) "Project" means the Wastewater transportation facili-
ties described in the Engineering Report which are acquired and
constructed by the Authority in order to receive and transport
Wastewater of the Users into the Regional Wastewater System.
However, and notwithstanding the foregoing, said term includes
only those facilities which are acquired or constructed with
proceeds from the sale of Bonds issued, or payments made,
pursuant to this Contract. Said term does not include any part
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of the Regional Wastewater System or any facilities acquired or
constructed by the Authority with the proceeds from the issu-
ance of "Special Facilities Bonds", which are hereby defined as
being revenue obligations of the Authority which are not
secured by or payable from Annual Payments made under this
Contract, and which are payable solely from other sources.
(m) "Wastewater" means Sewage, Industrial Waste, Munici-
pal Waste, Recreational Waste, and Agricultural Waste, together
with Properly Shredded Garbage and such Infiltration Water that
may be present, all as defined in the Texas Water Code.
Section 2. CONSULTING ENGINEERS; CONSTRUCTION OF PROJECT.
The Authority and the Users agree that the Authority will
choose the Consulting Engineers for the Project, provided that
the Consulting Engineers may be changed at the option of the
Authority. The Authority agrees that the Project will be
acquired and constructed in general accordance with the Engi-
neering Report, and in accordance with the laws applicable to
the Authority.
(b) It is anticipated that the acquisition and construc-
tion of the Project, except the part paid for by the District,
as hereinafter provided, will be financed by the Authority
through the issuance of one or more series or issues of its
Bonds payable from and secured by Annual Payments made under
this Contract. The proceeds from the sale of the Bonds will be
used for the payment of the Authority's costs and expenses in
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connection with the Project (including engineering and design
costs and expenses, and the cost of the land and interests
therein, related to the Project) and the Bonds, including,
without limitation, all financing, legal, printing, and other
expenses and costs incurred in issuing its Bonds. Such Bonds
will be issued by the Authority in the amount actually required
to provide for the acquisition and construction of the Project
and to fund to the extent deemed advisable by the Authority a
debt service reserve fund, a contingency fund, and interest on
Bonds during construction. It is now estimated that such Bonds
will be issued in an aggregate amount of approximately
$2,600,000 (whether actually more or less), which sum now is
estimated to be sufficient to cover the aforesaid costs and
expenses and other amounts required. Each Bond Resolution of
the Authority shall specify the exact principal amount of the
Bonds issued thereunder, which shall mature not more than 25
years from the date of such Bonds, and shall bear interest at
not to exceed the maximum legal rates then permitted by law,
and each Bond Resolution shall create and provide for the
maintenance of a revenue fund, an interest and sinking fund, a
debt service reserve fund, and any other funds deemed advis-
able, all in the manner and amounts as provided in such Bond
Resolution. Each City agrees that if and when such Bonds are
actually issued and delivered to the purchaser thereof, the
Bond Resolution authorizing the Bonds shall for all purposes be
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deemed to be in compliance with this Contract in all respects,
and the Bonds issued thereunder will constitute Bonds as
defined in this Contract for all purposes.
Section 3. PROJECT USE BY THE USERS. (a) In considera-
tion of the payments to be made by each User, respectively,
under this Contract, each of the Users, respectively, is
entitled to and shall have a right to a percentage of the total
use, capacity, and output of the Project as follows:
Fort Worth - - - - - - - - - - - - - - - - - - 41.26%
Keller - - - - - - - - - - - - - - - - - - - - 35.60%
Lake Turner Municipal Utility District No. 1 - 23.14%,
and may discharge its Wastewater generated within the Denton
Creek drainage area into the Project up to such percentages,
respectively, at its Point or Points of Entry hereinafter
described, subject to the restrictions hereinafter stated; and
provided that each such User must transport such Wastewater to
its Point or Points of Entry into the Project.
(b) The maximum rate at which Wastewater is discharged by
each User at its Point or Points of Entry into the Project
shall not exceed for a period of sixty minutes a rate which, if
continued for a period of twenty-four hours would equal 3.50
times such User's estimated average daily contributing flow of
Wastewater into the Project for the then current Annual Payment
Period. The total quantity of Wastewater discharged into the
Project shall never exceed the amount which the Project and the
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Regional Wastewater System are capable of receiving, treating,
and disposing, unless approved by the Authority, subject to
terms and conditions to be established by the Authority.
Notwithstanding the foregoing, no User shall ever make any dis-
charge into the Project or the Regional Wastewater System which
would cause them to be overloaded or be in violation of appli-
cable discharge permits from the State of Texas and/or the
United States of America, or which would exceed its authorized
percentage of use prescribed above.
(c) Wastewater meeting the quality requirements of
Section 4 of this Contract will be received into the Project at
the Points of Entry, respectively, to be established pursuant
to mutual agreement between the Authority and the affected
User. Additional Points of Entry may be established by mutual
agreement between the Authority and a User in the future if
such additional Points of Entry are determined by the Authority
to be beneficial to the Project.
Section 4. QUALITY. Each User shall discharge into the
Project only such Wastewater as it is permitted to discharge
into the Regional Wastewater System, and will not discharge
into the Project any wastes prohibited by the Regional
Wastewater System Contract.
Section 5. METERING OF WASTEWATER. The Authority will
furnish and install, for each User, respectively, as part of
the Project, such meter stations of standard type as the
A
Authority may determine in its discretion are required for
measuring properly all Wastewater discharged into the Project
by each User at such station. Such meters and other equipment
shall remain the property of the Authority. Each User shall
have access to such metering equipment at all reasonable times
for inspection and examination, but the reading, calibration,
and adjustment thereof shall be done only by employees or
agents of the Authority in the presence of a representative of
the affected User or Users if requested by such User or Users.
All readings of meters will be entered upon proper books of
record maintained by the Authority. Upon written request any
User may have access to said record books during reasonable
business hours.
Section 6. UNIT OF MEASUREMENT. Wastewater discharged
into the Project shall be measured in gallons, U. S. Standard
Liquid Measure.
Section 7. LIABILITY FOR DAMAGES AND RESPONSIBILITY FOR
WASTEWATER. Liability for damages arising from the transporta-
tion, delivery, reception, treatment, and/or disposal of all
Wastewater discharged into the Project hereunder shall remain
in each User to its Point or Points of Entry, respectively,
into the Project, and title to such Wastewater shall be in such
User to such Point or Points, and upon passing through Points
of Entry liability for such damages shall pass to the Authori-
ty. As between the Authority and each User, each party agrees
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to indemnify and to save and hold the other party harmless from
any and all claims, demands, causes of action, damages, losses,
costs, fines, and expenses, including reasonable attorney's
fees, which may arise or be asserted by anyone at any time on
account of the transportation, delivery, reception, treatment,
and/or disposal while title to the Wastewater is in such party,
or on account of a prohibited discharge by a User.
Section 8. OTHER CONTRACTS. Each of the Users, respec-
tively, reserves the right to enter into contracts with any
other entity which has entered into a Regional Wastewater
System Contract with the Authority, for the discharge of
Wastewater generated by such entity within the Denton Creek
drainage area and the use of any part of the capacity of the
Project to which such User has rights and which it is not
using; but for the purposes of this Contract such Wastewater
shall constitute and be regarded as Wastewater of such User and
no such contract shall relieve such User of its primary obliga-
tion to comply with this Contract and make the payments to the
Authority required under this Contract, -nor shall any entity
make any discharge into the Project except as permitted in a
Regional Wastewater System Contract with the Authority.
Section 9. FISCAL PROVISIONS. Subject to the terms and
provisions of this Contract, the Authority will provide and
pay, together with the cash payment made by the District, for
the cost of the acquisition and construction of the Project by
issuing its Bonds in amounts which will be sufficient to
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accomplish such purpose, and the Authority will own the
Project. It is specifically understood and agreed, however,
that this Contract does not, and is not intended to, cover or
prescribe any matters relating to the operation and maintenance
of the Project, and that all matters in connection with and
governing the operation and maintenance of the Project and the
responsibility and cost thereof are contained in the "Trinity
River Authority of Texas - Denton Creek Regional Wastewater
Treatment System Contract", dated October 28, 1987, the "Trini-
ty River Authority of Texas - Denton Creek Regional Wastewater
System Supplemental Contract", dated as of April '27, 1988, and
the "Trinity River Authority of Texas - Denton Creek Regional
Wastewater Treatment System Second Supplemental Contract (City
of Keller, Texas)", dated as of April 22, 1992. It is
acknowledged and agreed that payments to be made to the
Authority by the Cities of Fort Worth and Keller under this
Contract will be the only source available to the Authority to
provide the Annual Requirement, and that each such Annual
Requirement shall be allocated between the Cities of Fort Worth
and Keller as hereinafter provided, and that the Annual
Requirement for each Annual Payment Period shall at all times
be not less than an amount sufficient to pay or provide for the
payment of the "Bond Service Requirements" equal to:
(1) the principal of, redemption premium, if any,
and interest on, all Bonds, as such principal,
redemption premium, if any, and interest become
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due, less interest to be paid out of Bond
proceeds or from other sources if permitted by
any Bond Resolution, and all amounts required to
redeem any Bonds prior to maturity when and as
provided in any Bond Resolution plus the fees,
expenses, and charges of each Paying Agent/ -
Registrar for paying the principal of and
interest on the Bonds and for authenticating,
registering, and transferring Bonds on the
registration books; and
(2) the proportionate amount of any special,
contingency, or reserve funds required to be
accumulated and maintained by the provisions of
any Bond Resolution; and
(3) any amount in addition thereto sufficient to
restore any deficiency in any of such funds
required to be accumulated and maintained by the
provisions of any Bond Resolution.
Section 10. PAYMENTS BY THE CITIES OF FORT WORTH AND
KELLER. (a) For the Wastewater facilities and services to be
provided pursuant to this Contract, each of the Cities of Fort
Worth and Keller agrees to pay, at the time and in the manner
hereinafter provided, its proportionate share of the Annual
Requirement, which shall be determined as herein described and
shall constitute such City's Annual Payment. Each of the
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Cities of Fort Worth and Keller shall pay its part of the
Annual Requirement for each Annual Payment Period directly to
the Authority, in monthly installments, on or before the 10th
day of each month of each Annual Payment Period, in accordance
with the schedule of payments furnished by the Authority.
(b) For each Annual Payment Period during the term of
this Contract, each of such Cities' proportionate share of the
Annual Requirement for each such Period is hereby fixed and
shall be paid by each of said Cities in the following percent-
ages, respectively:
Fort Worth - - - - - - 53.68%
Keller - - - - - - - - 46.32%
Each such City is responsible solely for its fixed annual
percentage of the Annual Requirement as set forth above, and
neither City shall, or is obligated to, make any payment of the
part of the Annual Requirement for which the other City is
responsible.
(c) The Annual Requirement, and each such City's share
thereof shall be redetermined, after consultation with each of
such Cities, at any time during any Annual Payment Period, to
the extent deemed necessary or advisable by the Authority, if
the Authority issues Bonds to complete the Project or to refund
any Bonds which require an increase in the Annual Requirement;
(d) All amounts due and owing to the Authority by each
such City shall, if not paid when due, bear interest at the
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rate of ten (10) percent per annum from the date when due until
paid. The Authority shall, to the extent not prohibited by
law, discontinue the services of the Project to any City which
remains delinquent in any payments due hereunder for a period
of sixty days, and shall not resume such services while such
city is so delinquent. However, the Authority shall pursue all
legal remedies against such delinquent City to enforce and
protect the rights of the Authority, the other City, and the
owners of the Bonds, and such delinquent City shall not be
relieved of the liability to the Authority for the payment of
all amounts which are due by it hereunder. If any amount due
and owing by any City to the Authority is placed with an
attorney for collection, such City shall pay to the Authority
all actual and reasonable attorneys fees, in addition to all
other payments provided for herein, including interest.
(e) If, during any Annual Payment Period, any City's
Annual Payment is redetermined in any manner as provided or
required in this Section, the Authority will promptly furnish
such City with an updated schedule of payments reflecting such
redetermination.
(f) For the Wastewater facilities and services to be
provided to the District pursuant to this Contract, and specif-
ically the right to use 23.14% of the capacity of the Project,
the District shall pay to the Authority the sum of $517,986 to
be applied to pay 23.14% of the actual acquisition and
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construction costs of the Project (presently estimated to be
approximately $2,238,488) and thus reduce to that extent the
amount of Bonds which otherwise would be required. The Dis-
trict represents that such amount is lawfully available to it
for such purpose, and will be paid to the Authority in funds
immediately available to the Authority prior to the execution
of this Contract. It is understood and agreed that the
delivery of the initial series of Bonds under this Contract
will be conditioned on the prior receipt by the Authority of
the aforesaid sum. It is further agreed, however, that if the
actual cost of acquisition and construction of the Project is
determined by the Authority to be greater than the presently
estimated approximately $2,238,488, the District shall, within
15 days after written notice from the Authority of such
determination, pay to the Authority an additional amount equal
to 23.14% of the excess of the actual cost over said estimated
cost, with such additional amount to be applied to the acquisi-
tion and construction of the Project. Such additional payment,
if any, shall be made by the District from money lawfully
available for such purpose. If the actual cost of acquisition
of the Project is determined by the Authority to be less than
said estimated approximately $2,238,488, the Authority shall,
within 15 days after such determination, rebate to the
District, out of the sum previously paid by it, 23.14% of the
difference between the actual cost and the estimated cost.
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Section 11. SPECIAL PROVISIONS. (a) It is the intent of
the parties that the Project will be placed in operation in
1993, and the Authority agrees to proceed diligently with the
design and construction of the Project to meet such schedule,
subject to the other terms and conditions in this Contract. It
is expressly understood and agreed, however, that any obliga-
tion on the part of the Authority to acquire, construct, and
complete the Project shall be (i) conditioned upon the Author-
ity's ability to obtain all necessary land and interests
therein, permits, material, labor, and equipment, and upon the
ability of the Authority to finance the cost of the Project
through the actual sale of the Authority's Bonds and (ii)
subject to all present and future valid laws, orders, rules,
and regulations of the United States of America, the State of
Texas, and any regulatory body having jurisdiction.
(b) The Authority shall never have the right to demand
payment by any City of any obligations assumed by it or imposed
on it under and by virtue of this Contract from funds raised or
to be raised by taxes, and the obligations under this Contract
shall never be construed to be a debt of such kind as to
require any of the Cities to levy and collect a tax to dis-
charge such obligation.
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(c) Each of the Cities of Fort Worth and Keller, respec-
tively, represents and covenants that all payments to be made
by it under this Contract shall constitute reasonable and
necessary "operating expenses" of its combined waterworks and
sewer system, as defined in Vernon's Ann. Tex. Civ. St. Article
1113, and in Section 30.030, Texas Water Code, and that all
such payments will be made from the revenues of its combined
waterworks and sewer system. Each of such Cities, respec-
tively, represents and has determined that the services to be
provided by the Project are necessary and essential to the
present and future operation of its combined water and sewer
system, and that the Project constitutes the best available and
most adequate method for obtaining the Wastewater facilities
and services as hereinbefore described, and, accordingly, all
payments required by this Contract to be made by each of the
Cities of Fort Worth and Keller, respectively, shall constitute
reasonable and necessary operating expenses of its combined
waterworks and sewer system as described above, with the effect
that the obligation to make such payments from revenues of such
combined waterworks and sewer system shall have priority over
any obligation to make any payments from such revenues of
principal, interest, or otherwise, with respect to all bonds or
other obligations heretofore or hereafter issued by such City.
(d) Each of the Cities of Fort Worth and Keller agrees
throughout the term of this Contract to continuously operate
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and maintain its combined waterworks and sewer system and to
fix and collect such rates and charges for water and sewer
services to be supplied by its combined waterworks and sewer
system as aforesaid as will produce revenues in an amount equal
to at least (i) all of the operating and maintenance expenses
of such system, including specifically the payments by such
Cities under this Contract, and (ii) all other amounts as
required by law and the provisions of the ordinances or resolu-
tions authorizing its revenue bonds or other obligations now or
hereafter outstanding, including the amounts required to pay
all principal of and interest on such bonds and other obliga-
tions.
(e) The Authority covenants and agrees that neither the
proceeds from the sale of the Bonds, nor the moneys paid to it
pursuant to this Contract, nor any earnings from the investment
of any of the foregoing, will be used for any purposes except
those directly relating to the Project and the Bonds; provided
that the Authority may rebate any excess arbitrage earnings
from such investment earnings to the United States of America
in order to prevent any Bonds from becoming "arbitrage bonds"
within the meaning of the IRS Code of 1986 or any amendments
thereto in effect on the date of issue of such Bonds. Each of
the Users covenants and agrees that it will not use or permit
the use of the Project in any manner that would cause the
interest on any of the Bonds to be or become subject to federal
19
income taxation under the IRS Code of 1986 or any amendments
thereto in effect on the date of issue of such Bonds.
Section 12. 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 Contract, other than the
obligation of each User to make its payments to the Authority
as required under this Contract, then if 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 on, 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, 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, insurrection, riots,
epidemics, landslides, lightning, earthquake, fires, hurri-
canes, storms, floods, washouts, droughts, arrests, restraint
of government and people, civil disturbances, explosions,
breakage or accidents to machinery, pipelines or canals,
partial or entire failure of water supply, or on account of any
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other causes not reasonably within the control of the party
claiming such inability.
Section 13. UNCONDITIONAL OBLIGATION TO MAKE PAYMENTS.
Recognizing the fact that each of the Cities of Fort Worth and
Keller urgently requires the facilities and services of the
Project, and that such facilities and services are essential
and necessary for actual use and for standby purposes, and
recognizing the fact that the Authority will use payments
received from such Cities to pay and secure its Bonds, it is
hereby agreed that each of said Cities shall be unconditionally
obligated to pay, without offset or counterclaim, its payments
under this Contract, including the proportionate share of the
Annual Requirement of each of said Cities as provided and
determined by this Contract, regardless of whether or not the
Authority actually acquires, constructs, or completes the
Project or is actually providing the facilities or services of
the Project to any User hereunder, or whether or not any User
actually uses the facilities or services of the Project whether
due to Force Majeure or any other reason whatsoever, regardless
of any other provisions of this or any other contract or
agreement between any of the parties hereto. This covenant by
the Cities of Fort Worth and Keller, respectively, shall be for
the benefit of and enforceable by the owners of the Bonds
and/or the Authority.
PAI
Section 14. TERM OF CONTRACT; MODIFICATION; NOTICES;
STATE OR FEDERAL LAWS, RULES, ORDERS, OR REGULATIONS. (a)
This Contract shall be effective from and after the Contract
Date, and this Contract shall continue in force and effect
until the principal of and interest on all Bonds shall have
been paid, and thereafter shall continue in force and effect
during the entire useful life of the Project.
(b) Modification. No change, amendment, or modification
of this Contract shall be made or be effective which will
affect adversely the prompt payment when due of all moneys
required to be paid by each User under the terms of this
Contract and no such change, amendment, or modification shall
be made or be effective which would cause a violation of any
provisions of any Bond Resolution.
(c) Addresses and Notice. Unless otherwise provided
herein, any notice, communication, request, reply, or advice
(herein severally and collectively, for convenience, called
"Notice") herein provided or permitted to be given, made, or
accepted by any party to any other party must be in writing and
may be given or be served by depositing the same in the United
States mail postpaid and registered or certified and addressed
to the party to be notified, with return receipt requested, or
by delivering the same to an officer of such party, or by
prepaid telegram when appropriate, addressed to the party to be
notified. Notice deposited in the mail in the manner
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hereinabove described shall be conclusively deemed to be
effective, unless otherwise stated herein, from and after the
expiration of three days after it is so deposited. Notice
given in any other manner shall be effective only if and when
received by the party to be notified. For the purposes of
notice, the addresses of the parties shall, until changed as
hereinafter provided, be as follows:
If to the Authority, to:
Trinity River Authority of Texas
5300 S. Collins Street
Arlington, Texas 76018
If to the Users, as follows:
City of Fort Worth
1000 Throckmorton
Fort Worth, Texas 76102
City of Keller
158 South Main
Keller, Texas 76248
Lake Turner Municipal Utility
District No. 1
3500 Lincoln Plaza
500 North Akard
Dallas, Texas 75201
The parties hereto shall have the right from time to time and
at any time to change their respective addresses and each shall
have the right to specify as its address any other address by
at least fifteen (15) days' written notice to the other parties
hereto.
(d) State or Federal Laws, Rules. Orders, or Regulations.
This Contract is subject to all applicable Federal and State
23
laws and any applicable permits, ordinances, rules, orders, and
regulations of any local, state, or federal governmental
authority having or asserting jurisdiction, but nothing con-
tained herein shall be construed as a waiver of any right to
question or contest any such law, ordinance, order, rule, or
regulation in any forum having jurisdiction.
Section 15. SEVERABILITY. The parties hereto specifical-
ly agree that in case any one or more of the sections, subsec-
tions, provisions, clauses, or words of this Contract or the
application of such sections, subsections, provisions, clauses,
or words to any situation or circumstance should be, or should
be held to be, for any reason, invalid or unconstitutional,
under the laws or constitutions of the State of Texas or the
United States of America, or in contravention of any such laws
or constitutions, such invalidity, unconstitutionality, or
contravention shall not affect any other sections, subsections,
provisions, clauses, or words of this Contract or the applica-
tion of such sections, subsections, provisions, clauses, or
words to any other situation or circumstance, and it is in-
tended that this contract shall be severable and shall be
construed and applied as if any such invalid or unconstitu-
tional section, subsection, provision, clause, or word had not
been included herein, and the rights and obligations of the
parties hereto shall be construed and remain in force accord-
ingly.
24
Section 16. REMEDIES UPON DEFAULT. It is not intended
hereby to specify (and this Contract shall not be considered as
specifying) an exclusive remedy for any default, but all such
other remedies (other than termination) existing at law or in
equity may be availed of by any party hereto and shall be
cumulative. Recognizing however, that the Authority's under-
taking to provide and maintain the services of the Project is
an obligation, failure in the performance of which cannot be
adequately compensated in money damages alone, the Authority
agrees, in the event of any default on its part, that each User
shall have available to it the equitable remedy of mandamus and
specific performance in addition to any other legal or equita-
ble remedies (other than termination) which may also be avail-
able. Recognizing that failure in the performance of any
User's obligations hereunder could not be adequately compen-
sated in money damages alone, each User agrees in the event of
any default on its part that the Authority shall have available
to it the equitable remedy of mandamus and specific performance
in addition to any other legal or equitable remedies (other
than termination) which may also be available to the Authority.
Notwithstanding anything to the contrary contained in this
Contract, any right or remedy or any default hereunder, except
the right of the Authority to receive the Annual Payment which
shall never be determined to be waived, shall be deemed to be
conclusively waived unless asserted by a proper proceeding at
25
law or in equity within two (2) years plus one (1) day after
the occurrence of such default. No waiver or waivers of any
breach or default (or any breaches or defaults) by any party
hereto or of performance by any other party of any duty or
obligation hereunder shall be deemed a waiver thereof in the
future, nor shall any such waiver or waivers be deemed or
construed to be a waiver of subsequent breaches or defaults of
any kind, character, or description, under any circumstances.
Section 17. VENUE. All amounts due under this Contract,
including, but not limited to, payments due under this Contract
or damages for the breach of this Contract, shall be paid and
be due in Tarrant County, Texas, which is the County in which
the principal administrative offices of the Authority are
located. It is specifically agreed among the parties to this
Contract that Tarrant County, Texas, is the place of perfor-
mance of this Contract; and in the event that any legal pro-
ceeding is brought to enforce this Contract or any provision
hereof, the same shall be brought in Tarrant County, Texas.
IN WITNESS WHEREOF, the parties hereto acting under
authority of their respective governing bodies have caused this
Contract to be duly executed in several counterparts, each of
which shall constitute an original, all as of the day and year
first above written, which is the date of this contract.
26
ATTEST*
err,Ptary, Board of Directors
�AJTH'ORYTY SEAL)
ATTEST:
L 4;; L-1///t.o /s
City Secretary
(CITY SEAL)
Contract hori3at on
Date
S
AP'7PJROVEDp ASSTTO/ �FORM
AND LEGAL�IpTYY+
Bond Counsel to the Authority
CITY CIF F RT O5a2i2�
,TEXASBY
City Mar
AS �TO = D LEGALITY
ty Att3'Yney, City of Fort Worth,
Texas
CITY OF KELLER, TEXAS
BY QFOt-C
Mayor
27
(CITY SEAL)
LAKE TURNER MUNICIPAL UTILITY
DISTRICT NO. 1 OF TARRANT COUNTY
AND DENTON COUNTY, TEXAS
BY
esident, Board of D' ectors
ATTES .
Secretar , Board of Directors
(DISTRICT SEAL)
28
City of Fort �orih, Texas n a�
Mayor and GOUWO ���.catzon
SUBJECT
**C-13513
EPTOR SYSTEM CONTRACT (CADE BRANCH
RECOMMENDATION:
It is recommended that the City Council adopt a resolution authorizing the City Manager
to execute a contract with the Trinity River Authority of Texas for the purpose of
constructing the Cade Branch Interceptor Extension o t' tFie Denton Creek Wastewater
Interceptor System.
DISCUSSION:
In February 1992, at the request of the City of Fort Worth, the Trinity River Authority
(TRA) initiated a feasibility study for the Cade Branch Interceptor Extension project
to serve parts of far north Fort Worth and adjacent unsewered areas. The proposed
contract will fund the costs of design, land acquisition and construction. Estimated
project costs is $2,238,488.
The participating entities will share funding, use, capacity and output of the project
as follows:
Fort Worth $ 923,550.00 41.26%
Keller 796,981.00 35.60%
Lake Turner MUD No. 1 517,957.00 23.14%
TOTAL $2,238,488.00 100.0%
Lake Turner MUD No. 1 will pay cash for its portion while bonds will be issued by TRA
for the balance of the project cost. Fort Worth and Keller will make annual payments
of principal and interest to retire the bonds. Payments will be:
Fort Worth 53.68%
Keller 46.32%
The Fort Worth portion of this project will be in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fisca Services certifies that funds required for this agreement are
in the proposed operating budget for FY 92-93 of the Water and Wastewater Fund. There
will be no expenditures in FY 1991-92.
Office by:
Mike Groomer 6140
to
APPROVED
CITY COUNCIL
Originating Department Read:
Richard Sawey 8207
from AUG IS VW
PE45 539120 709000 �C+6a.4��
For Additional Information
Contact:
Cayo Poli W rtb,, Teof xas
Richard Sawey 8207
40Primed an regdad paper