Loading...
HomeMy WebLinkAboutContract 19362 CITY SECRETARY 223 CONTRACT NO CONTRACT FOR SALE OF WATER LINE 1. Parties. This Contract for Sale of Water Line (the "Contract" ) is between the following parties: Trophy Club Municipal Utility District No. 1 (the "District") 100 Municipal Drive Trophy Club, TX 76262 and The City of Fort Worth (the "City" ) 1000 Throckmorton Fort Worth, TX 76101 The District is a municipal utility district created and operating under the provisions of Article XVI, Section 59, of the Texas Constitution, and the general laws of the State of Texas including, particularly, Chapter 54, Texas Water Code, as amended. The District is acting by and through Constance S. White, the duly authorized President of the District's Board of Directors. This Contract is executed by the District in its capacity as the owner of legal title and operator of common utility facilities in the Trophy Club project. The City is a municipal corporation located in Tarrant County, Texas, acting by and through Mike Groomer, its duly authorized Assistant City Manager. 2 . Background and Purposes . a. The District and the City are parties to an existing Contract for Water Service dated March 13, 1979, as amended (the "Existing Contract" ) . Under the Existing Contract, the City sells to the District treated water out of the City' s water storage facility known as the North Beach Street Ground Storage Site. b. To transport the treated water from the City's North Beach Street Ground Storage Site to the District's central water treatment and storage facility in Trophy Club, the District constructed in 1981 and now owns, operates, and maintains a 21-inch water transmission pipeline (the "Pipeline" ) . A portion of the District's original Pipeline has recently been relocated at the intersection of U.S. Highway 377 and new State Highway 170, and along the south right-of-way line of the new State Highway 170 and State Highway 114 between U.S. Highway 377 and the entrance of the Trophy Club project. Attached to this Contract as Exhibit 1 is a sketch showing the location of the Pipeline as currently in operation, including the portion of the Pipeline being sold to the City under this Contract. OFFICIAL CM SECRETARY FT. WORTH, T3. c . The City is interested in acquiring ownership and control of a portion of the Pipeline, from the beginning of the Pipeline at the City's North Beach Street Ground Storage Site and extending to the southeast corner of the intersection of U.S . Highway 377 and State Highway 170 . The City desires to obtain such portion of the Pipeline in order to provide water service to areas annexed by the City in recent years north of the North Beach Street Ground Storage Site and south of State Highway 114 and in order to allow the City to provide treated water on a wholesale basis to the District and other entities in the area along or near the Pipeline. d. The portion of the Pipeline being sold by the District to the City under this Contract constitutes an insubstantial part of the District' s water system and the disposition of this portion of the Pipeline will not substantially impair the revenues or operations of the District' s system. With the change in the "point of delivery" of water under the Existing Contract as provided in paragraph 7 of this Contract, the portion of the Pipeline being sold to the City is surplus property of the District and is no longer needed by the District. e. This Contract is executed by the City and the District as an interlocal contract under Chapter 791 (the Interlocal Cooperation Act) of the Texas Government Code. f . This Contract is also executed by the City and the District as a sale or exchange of property between two governmental entities under Section 272 . 001 (b) (6 ) of the Texas Local Government Code. The price to be paid by the City to the District for the real property interests covered by this Contract is not less than the fair market value of those real property interests . g. This Contract has been authorized by the governing board of each party to this Contract. The governing board of each party to this Contract has determined that the terms and provisions of this Contract are in the best interest of that party. 3 . Agreement to Sell and Purchase. The District agrees to sell and convey to the City, and the City agrees to purchase and receive from the District, all of the ownership rights, titles, and interests in and related to that portion of the Pipeline from the point of its beginning at the City' s North Beach Street Ground Storage Site and to the southeast corner of the intersection of U.S. Highway 377 and State Highway 170, as shown on the attached Exhibit 1 . The portion of the Pipeline to be conveyed by the District to the City is referred to in this Contract as the "Fort Worth Pipeline. " This conveyance shall include a transfer of full legal ownership from the District to the City of the pipes, valves, meters, cable lines, and other tangible items of property constituting a part of the Fort Worth Pipeline, as well as an -2- assignment from the District to the City, to the fullest extent allowed by law, of all easements, rights-of-way, permits, and other intangible rights relating to the Fort Worth Pipeline. An itemization of the tangible property comprising the Fort Worth Pipeline is attached to this Contract as Exhibit 2 . An itemization of the intangible rights relating to the Fort Worth Pipeline is attached to this Contract as Exhibit 3 . 4 . Price. The price to be paid by the City to the District for the Fort Worth Pipeline shall be $718, 000 . The price shall be paid by the City to the District within 24 hours after execution of this Contract. This agreed price includes recognition of all prior contributions by the District to shared facilities, such as the North Beach Street Ground Storage Tank. 5 . Closing Documents . In exchange for the payment by the City to the District of the sum required under this Contract, the District shall execute and deliver to the City a Bill of Sale to the tangible assets comprising a part of the Fort Worth Pipeline; an Assignment of the easements, rights-of-way, permits, and other intangible rights comprising a part of the Fort Worth Pipeline; and/or other instruments legally sufficient to convey to the City full title to the Fort Worth Pipeline, free and clear of all liens, claims, encumbrances, conditions, easements, and restrictions . 6 . Indemnification. The parties hereto recognize and acknowledge that the Fort Worth Pipeline may or may not be constructed within the boundaries of easements granted to the District or within other public rights-of-way. Therefore, the District agrees to defend, indemnify, and hold harmless the City from and against any and all claims regarding the Fort Worth Pipeline being located on private property and not within easements granted to the District or within other public rights-of-way. In the event a final judgment from a court of competent jurisdiction determines that the Fort Worth Pipeline is located on private property and not within easements granted to the District or other public rights-of-way, the District agrees at its sole cost and expense to either relocate the Fort Worth Pipeline or to acquire a proper easement acceptable to the City. 7 . Condition of Items. It is expressly recognized that the Fort Worth Pipeline was originally constructed in 1981 and has been in continuous use and operation since that time, with normal maintenance. The City has had the opportunity to inspect the items comprising the Fort Worth Pipeline prior to execution of this Contract to satisfy itself regarding the condition of the line. THE TANGIBLE ITEMS COMPRISING THE FORT WORTH PIPELINE SHALL BE CONVEYED AND ACCEPTED "AS IS" AND "WHERE IS . " THE DISTRICT MAKES NO REPRESENTATION OR WARRANTY REGARDING THE CONDITION OF THE FORT WORTH PIPELINE AND ALL IMPLIED WARRANTIES ARE EXPRESSLY DISCLAIMED. As of the effective date of this transaction, all maintenance and -3- operations of the Fort Worth Pipeline shall be transferred to and assumed and thereafter performed and paid for by the City, and the District shall be relieved of and released from any further responsibility to operate and maintain same. As part of the conveyance the District assigns to the City all rights and remedies of the District under any construction contracts, payment and performance bonds, and manufacturer warranties . 9 . New Point of Delivery/New Meter. As of the effective date of this Contract the "point of delivery" of the treated water sold by the City to the District shall be the southeast corner of the intersection of U.S. Highway 377 and State Highway 170, at the end of the portion of the Pipeline being conveyed by the District to the City, as shown on the attached Exhibit 1 . No later than two years after the effective date of this Contract, the City shall install at City' s expense a new meter at or near the southeast corner of the intersection of U.S. Highway 377 and State Highway 170. Upon installation of such new meter the "point of delivery" of the treated water sold by the City to the District shall be the meter vault connection to the District' s side of the new meter. The District shall retain ownership of and maintenance responsibility for all mains and distribution facilities beyond this new point of delivery. Until the new meter is operational, the amount of treated water sold by the City to the District shall continue to be calculated at the existing meter at the beginning of the Fort Worth Pipeline near the North Beach Street Ground Storage Tank. Any treated water from the Fort Worth Pipeline to Nestle Distributing Co. or other customers of the City shall be metered by the City and deducted from the total quantity of water passing through the existing meter. Consideration shall also be given by the City to any line loss in the Fort Worth Pipeline and to the effect of such deducted water usage on the maximum hour and maximum day rates otherwise chargeable by the City to the District. 9 . Water Supply Contract. As part of this sale transaction, the parties agree to simultaneously enter into a new uniform wholesale water agreement under the same general terms as the City' s other wholesale customers, to be effective no later than October 1, 1992 . The new uniform wholesale water agreement will supersede and replace the Existing Contract, dated March 13, 1979 . 10 . Execution and Date. This Contract is executed by the parties in multiple counterparts . This Contract is dated and shall be effective for all purposes as of 1992 . -4- ATTEST: CITY OF FOR OR By. MYke Groomer City Secretary Assistant City Manager City of Fort Worth City of Fort Worth APPROVED AS TO FORM AND LEGALITY: ��/- <--,) j _ 41 -� ity Attorney Gmtreat rization 04�1—ccity of Fort Worth Date APP A RECOMMENDE R h rd W. Sawey, Dir for City of Fort Worth Water Department ATTEST: TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Susan Holt McCabe _onsta-n-ce S. White Secretary, Board of Directors President, Board of Directors APPROVED AS TO FORM AND LEG ITY: --A, J'-'71 Attorney for the District APPROVAL RECOMMENDED: Rogern r \ Distric . Manager \3518-10.016\3.D -5- 1 zooD a zooD .Dao GOOD _ GRAPHIC SCALE IN FEET I TROPHY CLUB TCMUD N0,IDRIVE WATER PLANT `� or J+ F9 i I f � � 40 Qo. Gov p�4 0p �P ry I I \ QO Y \k I O I FOR WORTH GROUND STORAGE TANK q LAS rq LEGEND ___ ORIGINAL 21'TO RE PURCHASED BY CITY OF FORT WORTH NEW 21'TO BE PURCHASED a CITY OFFORT WORTH BALANCE OF21'TO REMAIN WITH -' TROPHY CLUB MUD NO.I EXHIBIT TROPHY CLUB 2111 WATER SUPPLY MAIN EXHIBIT 2 Trophy Club 21" Water Supply Main Itemization of Quantities Original 21 Inch Water Supply Line (from Beach Street Tank to Beginning of Highway 377 Bypass) 1. 29,841 L.F.21' CCP 2. 255 L.F. 20" CCP 3. 2-20" Gate Valves w/Valve Box 4. 1 - Meter Vault w/10'Turbine Flow Meter and 10'Wide x 15' Long x 12' Deep Concrete Vault 5. 1 - Bypass Valve Vault w/20" Ball Valve and 10' Wide x 15' Long x 20' Deep Concrete Vault 6. 1 - Polly Pig Wye 7. 3- 6" Blow-off Valves 8. 11 - 1' Combination Air and Vacuum Valve 9. 2-2' Combination Air and Vacuum Valve 10. 1 - 45 L.F. Railroad Bore Crossing w/36" Casing Pipe 11. 1 - 68 L.F. Highway Bore Crossing w/36" Casing Pipe New 21 Inch Water Supply Line (from Beginning of Highway 377 Bypass to Highway 170) 1. 3,032 L.F. 21'CCP 2. 1 - 21"Pipe Connection 3. 1 -2"Air Release Valve 4. 1 -6" Blow-off Valve 5. 1 -20" BF Valve PASM1SC\88012502FMa EXHIBIT 3 INTANGIBLE RIGHTS RELATING TO FORT WORTH PIPELINE 1 . Approval from State Department of Highways and Public Transportation to Denton County Municipal Utility District No. 1 dated January 20, 1981, stating that the Department has no objection to the location of the 21-inch water transmission line in highway right-of-way for U.S . 377 and S .H. 114 . 2 . Approval (Permit No. 220-W-97-90) from State Department of Highways and Public Transportation to Trophy Club Municipal Utility District No. 1 dated July 2 , 1991, regarding the location of the 21-inch water transmission line in the new highway right-of-way for the relocated portion of U. S . 377 . 3 . Any and all other approvals, permits, or private easements relating to the pipeline. ■A4 LM f ILL•1 f_ AccouNTlNo•z TRANSPORTATIONIPU13LIC W KZA City of Fort Worth, Texas 'A 4 ER AOMINISI RATION l M ;w and Council Communicaffon AT REFERENCE NUMBER L NAME TGE PA 06/16/92 C-13415 60TROPHY 1 of 2 SUBJECT PROPOSED PURCHASE OF 21" WATER TRANSMISSION MAIN AND APPROVE WHOLESALE WATER CONTRACT WITH TROPHY CLUB MUD RECOMMENDATION: It is recommended that the City Council : 1 `1 . Authorize the City Manager to execute a contract to acquire a 21" water line from Trophy Club Municipal Utility District (MUD) No. 1 at a cost of $718,000.00, and 2. Authorize the City Manager to execute a uniform wholesale water contract with Trophy Club MUD. DISCUSSION: On May 5, 1992 City Council approved a Community Facilities Agreement with Hillwood Construction Corporation, developer of Alliance Gateway Phase I , to provide city services to an area in which the Nestle Distribution Center will be located. The CFA allowed water service to be provided to this development either by constructing new water lines or by providing water service via the 21" water line owned by Trophy Club MUD. The existing wholesale water contract with Trophy Club MUD would allow Fort Worth to tap into the line but as the line is gravity fed, it would require pressurizing in order to meet fire protection requirements of the development. Negotiations with the Trophy Club MUD to acquire the line resulted in agreement of several key points: 1. Trophy Club will provide temporary water service to the development until sale of the main occurs, and 2. The agreed-to price includes all compensation to Trophy Club MUD for the 21" line, permits, and easements, as well as recognition of all prior contributions to shared facilities (i .e. , Trophy Club's unammoritized monetary contribution to the Beach Street storage tank) , and 3. A commitment of both parties to enter a uniform wholesale water agreement under the same general terms as Fort Worth's other wholesale customers. The most cost effective and viable alternative is for Fort Worth to purchase the line from Trophy Club. The sale price represents a substantial savings over the replacement cost of that pipeline; the cost to purchase right-of-way, and to design and construct 29,966 linear feet at 21" line is estimated to be $1,681,000.00. Purchase of the Trophy Club line resolves additional water related issues such as increased reliability of service, allows for expansion of the customer base, facilitates the Water Department's efforts to maintain satisfactory water quality in the northeast part of the service area and places Trophy Club on parity with all other water contract jurisdictions. Primed on•ecy,14!Dara 4 City of Fort Worth, Texans Mayor and Council Communication DATE 06/16/92 T —REFERENCE NUMB R C-13415 T-OG NAME 60TROPHY PAGE 2 of 2 SUBJECT PROPOSED PURCHASE OF 21" WATER TRANSMISSION MAIN AND APPROVE WHOLESALE WATER CONTRACT WITH TROPHY CLUB MUD FISCAL INFORMATION/CERTIFICATION: The Director of Fiscal Services certifies that funds required for this contact are available in the current Capital Budget, as appropriated, of the Commercial Paper Water Fund. MG:t Submitted or City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: to Mike Groomer 6140 APPROVED Originating Department Mea : CITY COUNCIL Richard Sawey 8207 (from) JUN 16 IM PW77 541300 06077014014 718,040.0 For Additional Information d&;.cJ&Z444 rC./ Contact: Ctty Secretary of the Richard Sawey 8207 City of Fort Worth,?e:u ^ VAn..A—re I.A Hero.