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HomeMy WebLinkAbout1997-036J \WPDOCS\ORD\SANGER ORD ORDINANCE NO q-0-36 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL ADDENDUM TO JOINT OWNERSHIP AND OPERATIONS CONTRACT BETWEEN THE CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT REGARDING PARTICIPATION IN THE SANGER TRANSMISSION LINE, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Denton ("the City") and the Upper Trinity Regional Water District (the "UTRWD") entered into a May 6, 1993 Joint Ownership Contract (the "Contract") to ]ointly develop and operate a water transmission line (the "Joint Transmission Line") from the vicinity of Lillian Miller Parkway and Interstate 35E, and extending generally along Lillian Miller Parkway to the vicinity of Old Alton Road near the south city limits of Denton, and WHEREAS, construction of the Joint Transmission Line has been completed and the line is operating satisfactorily, and WHEREAS, the UTRWD is planning to construct another transmis- sion line (the "Sanger Transmission Line") that will connect to the north portion of the City's water distribution system in the vicinity of Loop 288 and Interstate Highway 35, extending generally along IH35 to the City of Sanger, and WHEREAS, the Sanger Transmission Line and its connection to the City of Denton's system is authorized under a certain contract for Water Treatment and Transmission Services dated July 21, 1992 between City and UTRWD, and, according to said contract "Denton may participate, at its own option, in the capital and operating cost of said pipeline based upon its proportionate share of the overall transmission capacity of the line, up to the limit of Denton's extraterritorial ]urisdiction " WHEREAS, in said July 21, 1992 contract, City agreed to provide transmission service for UTRWD water through the City water system to the Sanger Transmission Line and to other delivery points on City's water system, and WHEREAS, City desires to participate in the capacity and proportionate cost of the Sanger Transmission Line to be construct- ed by the UTRWD, and WHEREAS, City and UTRWD desire to enable such participation in the Sanger Transmission Line by an Addendum to the Contract, and WHEREAS, City has agreed by separate contract to convey to UTRWD certain pipeline facilities associated with water service to the City of Corinth and Lake Cities Municipal Utility Authority, and City and UTRWD desire to increase City's share of the Joint Transmission Line in Lillian Miller Parkway as consideration for said property being conveyed, and WHEREAS, City and UTRWD desire to implement such other contract provisions as will enable ]oint participation in the Sanger Transmission Line and to provide for the UTRWD to purchase treated water from City for resale to Sanger, and WHEREAS, UTRWD agrees to use its best efforts to design, construct and complete the Sanger Transmission Line as provided in this addendum to contract, NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is hereby authorized to execute an addendum to the Joint Ownership and Operations Contract Between the City of Denton and Upper Trinity Regional Water District Regarding Participation in the Sanger Transmission Line, a copy of which addendum to contract is attached hereto and incorporated by reference herein ,SECTION II That the expenditure of funds as required in the attached addendum is hereby authorized SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the `1� day of 1997 JP9K MILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY By ADDENDUM TO JOINT OWNERSHIP AND OPERATIONS CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT THE STATE OF TEXAS § 3 COUNTY OF DENTON § This Addendian (the'Addendurn') to an existing ombW styled as JOINT OWNERSHIP AND OPERATIONS CONTRACT, dated May 6, 1993, (the 'ContracC) by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the 'Distncr), a conservation and reclamation district created pursuant to Article XVI, Sedan 59 of the Constitution of the State of Texas, and the CITY OF DENTON ('Denton'), a munarpal corporates, is made and approved as of the y� day of _�iIV , 19# (the 'Date of Addendum') WHEREAS, Denton and District entered into the May 6, 1993 Joint Ownership and Operations Contract (the 'Contract') to jointly develop and operate a water transmission line (the 'Joint Transmission Line") from the vicinity of Lillian Miller Parkway and Interstate 35E, and extending generally along Lillian Miller Parkway to the vicinity of Old Alton Road near the south city limits of Denton, and WHEREAS, construction of the Joint Transmi-sion Line has been completed and the line is operating satisfactonly, and iiddendrn ro oaoaad s.eero.n osy or Denbo and urawo ReYorddY Bomar TrMembelen une Peye 2 WHEREAS, the District is planning to constrict another transmission line (the "Sanger Transmission UrW) that will conned to the north portion of the Denton water distribution system in the vicinity of Loop 288 and Interstate Highway 35, extending generally along IH35 to the City of Sanger, and WHEREAS, the Sanger Transmission Una and its connection to the Denton system are authorized under a certain contract for Water Treatment and Transmission Services dated July 21, 1992 between Denton and District, and, according to said contract, 'Denton may participate, at its option, in the aipd d and operating cost of said pipeline based upon its proportionate share of the overall transmission capacity of the line, up to the limit of Denton's extraterritorial jurisdiction WHEREAS, in said July 21, 1992 contract, Denton agreed to provide transmission service for District water through the Denton water system to the Sanger Transmission Line and to other delivery points on Denton's water system, and WHEREAS, Denton desires to participate in the capacity and proportionate cost of the Sanger Transmission Una to be constructed by the District, and WHEREAS, Denton and District desire to enable such participation in the Sanger Transmission Line by this Addendum to the Contract, and WHEREAS, Denton has agreed by separate contract to convey to District certain pipeline facilities associated with water service to City of Corinth and Lake Cities Municipal Liddy Authority, and Denton and District desire to increase Denton's share of the Joint Transmission Line in Lillian Miller Parkway as consideration for said property being conveyed, and WHEREAS, Denton and District desire to implement such other contract provisions as will enable joint participation in the Sanger Transmission Line and to provide for the District to purchase treated water from Denton for resale to Sanger Addendm to contract Between city of Denton and urawD Regarding Sanger TranamNeion Line Page i NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the District agrees to use its best efforts to design, construct and complete the Sanger Transmission Line upon and subject to the terms of the Contract and this Addendum as hereinafter set furth, to -wit Soo6on 1.0. Preamble Meorgoratied That the matters stated in the preamble hereof are true and correct and are incorporated into the body of this Addendum as if copied in their entirety Section I.I. Scoga of Addendum The provisions of the Conrad shall remain in full forme and effect as supplemented by this Addendum Further, Denton and District agree to add the provisions of this Addendum to provide for joint participation by Denton and District in the Sanger Transmission Line and to increase Denton's share of the Joint Transmission Line as reflected in Exhibit A (Revised) attached hereto and incorporated herein for all purposes Section 1.2 Pardobation in Regional Treated Waller Prej2d District and Denton agree that Denton's participation in the Sanger Transmission Line will increase Denton's participation in the Regional Treated Water Project as specified in the Contract only as provided herein a) Denton's participation in the Regional Treated Water Project will increase by the defined limits of its participation in the Sanger Transmission Line, and b) Denton will gain a greater share of the Regional Treated Water Project by the agreement herein to increase Denton's share of the Joint Transmission Line Seabon 1 3 Participation in Sanger Transmission Line Denton will participate on a pro rate basis in the Sanger Transmission Line in accordance with the limits, size and capacities specified in Exhibit C and with cost participation as specified in Exhibit D, hereto, which Exhibits are incorporated into this Addendum and the Contract for all purposes The Sanger Transmission Line shall be designed and constructed by the District Addaad�to coaaract Betwaoa cry of Denson and urrtwo ReprdNq eaapr Tnnambaion Lbe Papa 4 Section 1 A Extent of ParticLnation District agrees to provide for the Sanger Transmission Line between the points and along the general route and for the capacities delineated in Exhibit C Denton may transport water for its own use through the Sanger Transmission Line up to the peak day capacities provided for in Exhibit C Section 1.& Suesiel Provisions Denton and District acknowledge and agree to the special provisions related to the Sanger Transmission Line which are set forth in the attached Exhibit D, which Exhibit is incorporated into this Addendum and the Contract for all purposes Section 1.6 sale of Wafer As provided in the July 21, 1992 contract between Denton and District, Denton reaffirms its agreement to sell wholesale treated water to District for delivery and resale to Sanger Such sale of water by Denton shall be on a wholesale basis in accordance with said July 21, 1992 Contract, as amended or supplemented Section 1.7 EadY PBYment Denton may prepay or pay the remaining balance of its share of capital cost participation in the Sanger Transmission Line or the Joint Transmission Line at any time The amount of such early payment will be equal to the unpaid balance including any deferred amounts Section 1.8 Term of Addendum This Addendum shall be effective on and from the Date of Addendum The term thereof shall be the same as the term of the Contract and any renewals thereof Addendum to Contract Bet~n City of Denton and UTRWD Regarding Sanger Transm Ission Une Page 5 IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this Addendum 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 Addendum UPPER TRINITY VONA WATER DISTRICT RichardHuckaby President, Board of Directors AT ST rle mdb ng, w —� [Dlstdct seat] S rd o ctors �VED AS TO F RM EGALITY John F Boyle, Jr , Couns I for the District CITY/OF PENTON, TEXAS Ted Benavides, City Manager TTEST J nnifer W ters, City Secretary APPROV AS O LE L FORM Herb Prouty, City ttor ey Addendum to Contract Be w tan City of Denton and UTRWD Raeardine Sanem Tnnamialon Line paw a EXHIBIT B Exhibit B as contained in the original Contract shall remain valid and in effect Said Exhibit, is modified or supplemented only to the extent provided in this Addendum NOT TO SCALE PIPEUNE RWTE GENERALLY ALONG UWAN MILLER PKWY/ FM 2181 FROM INTERSTATE HIGHWAY 35E TO OLD ALTON PIPE SIZES, 27" DIA FROM IH 35E TO FM 2181 20" DIA FROM FM 2181 TO RYAN ROAD 18" DIA FROM RYAN ROAD TO OLD ALTON CALCULATED CAPACITY OF 27" DIA. PIPE. TOTAL - 14 3 MGD DENTON SHARE 72 7% (10 4 MGO) UTRWD SHARE 27 3% (39 MGD) CAI Can ATED CAPACITY OF 20" DIA. PIPE. TOTAL — 6 5 MGD DENTON SHARE = 39 9% (2 6 MGD) UTRWD SHARE = 601% (39 MGD) CAI CI0 ATFD CAPACITY OF 18" DIA. PIPE. TOTAL = 4 9 MGD DENTON SHARE = OR (0 0 MGD) UTRWD SHARE = 100% (4 9 MGD) PIPELINE LENGTHS APPROXIMATELY 3 600 LF OF 27" DIA APPROXIMATELY 5 400 LF OF 20" DIA APPROXIMATELY 6 500 LF OF 18' DIA 27" DIA �— Q=143MGD 20" DIA f Q=65MGD I -9: Y�� l moo• Canetructlan ROW eY Qt7 ReelCmtiW `11i. 20 Permanent 0 Canetredion l J 18" DIA Q = 4 9 MGD DELIVERY POINT d RaW ary ReaidantY 1 20 Pennona20• Canee EXHIBIT "A REVISED" N JOINT TRANSMISSION LINE UPPER TRINITY REGIONAL WATER DISTRICT REGIONAL TREATED WATER PROJECT PHASE 1A PIPELINES R.0 W I / Rwd ReaidanOW 2D• Conetruetlon EXHIBIT B Exhibit B as contained in the original Contract shall remain valid and in effect Said Exhibit is modified or supplemented only to the extent provided in this Addendum a ledd-psd ekb SANGER TRANSMISSION LINE PIPELINE ROUTE, NORTH FROM LOOP 288 ON THE EAST SIDE OF INTERSTATE HWY 35 TO JUST SOUTH OF RECTOR ROAD. EAST ON THE SOUTH SIDE OF RECTOR ROAD, THEN NORTH ALONG THE EAST SIDE OF COVAJNG ROAD NORTH TO THE SANGER DELIVERY POINT TO PROM CONNECTION POINT TO DELIVERY POINT 12" dA FROM MILAM ROAD TO SANGER DELIVERY CULATED CAPACITY OF , dA. PIPE, ]§ INITIAL TOTAL m 3 25 MGD DENTON SHARE a 59R (1 92 MGD) UTRWO SHARE - 41% (133 MOD) PIPELINE LENGTH, APPX 17,000 LF OF 16" DIA PIPE APPX 18,500 LF OF 12" OIA PIPE NOTE. THIS EXHIBIT ILLUSTRATES THE APPROXIMATE ROUTE OF THE PROPOSED PIPELINE ALONG THE GENERAL ROUTE SHOWN ACTUAL LOCATION OF THE PIPELINE MAY VARY FOR ENGINEERING OR OTHER TECHNICAL REASONS IF ACTUAL PIPELINE SIZES OR LENGTHS VARY, BY MUTUAL AGREEMENT, THE SHARE PERCENTAGES SHALL REMAIN THE SAME EXHIBIT C PIPELINE LIMITS AND CAPACITIES EXHIBIT D TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR PARTICIPATION IN THE SANGER TRANSMISSION LINE SPECIAL PROVISIONS ReGARDING PARTICIPATION The provisions of this "Exhibit D' form a part of the Contract and are applicable to the Upper Trinity Regional Water District (the "District') and to the City of Denton ("Denton') as of set forth in their entirety in the body of the Contract 1. The District vid construct the Sanger Transmission Line as a part of the Project as defined in the Contract The District will own the Sanger Transmission Line, including the right-of-way, except as otherwise provided heroin for Denton's share of the line The District will coordinate routing, design and right-of-way acquisition with Denton Within the City Limits of Denton, the District's improvements shall not unduly conflict with any Denton master plan for land development District and Denton agree to coordinate future joint use of said rights -of -way within Denton for underground utilities District and Denton agree to coordinate arrangements for parallel or adjoining easements and other rights -of -way, including reciprocal use of such easements and rights -of -way for temporary use during construction, routine operational maintenance and for other mutually beneficial purposes 2. It is mutually agreed that, within its share of the easement or nght-of-way for the Sanger Transmission Line, Denton shall have the right to install and maintain other water Imes, as well as sewer, underground electric and telecommunication facilities owned by Denton 3. The Distnct will provide the funds to design the Sanger Transmission Line, including acqu Qition of nghts-of-way The size of the line and capacities in the line for Denton and District, respectively, shall conform to the requirements of Exhibit C, hereto 4. After design of the Sanger Transmission Line has been completed and after approval by Denton, the District shall lake competitive bids for construction After receipt of bids and before a contract (or contracts) for construction is awarded, the District shall give Denton ExhN* D Addanduwn to Cordrad 6aaw66 City of Donlan and YTRWD Regarding Banpar Tranamftsbn Lim Papa 2 written 'notice of the District's recommendation regarding award of contract(s) and of Denton's share of the proposed contract to be awarded Unless Denton elects the financing option described in Paragraph 5 following, Denton shall deposit with the District, within forty-five (45) dayb, its pro rate share of the proposed construction cost for the Sanger Transmission Line plus the cost of special appurtenances, it any, requested by and for Denton The funds so deposited by Denton for construction shall be placed in an interest bearing construction account by District The District may withdraw funds from the construction account as required to make progress and final payment according to the construction contract awarded for the Sanger Transmission Line The District shall maintain an accounting of all direct expenditures for rights of way and for design and construction of the Sanger Transmission Line, including engineering and geotechnical services during construction Upon completion of construction, Denton agrees to pay its share, if any, of contract change orders, direct services during construction, or extra costs required to complete the Sanger Transmission Line After payment for change orders, services during construction or extra costs, any surplus funds remaining in the interest bearing account shall be returned to Denton at completion of the contract(s) 5 At Denton's option, District will provide funds to construct Denton's share of the Sanger Transmission Line according to this paragraph Subject to the terms of the Contract and this Addendum, District will provide and pay for the cost of the acquisition, design, construction and improvement of the Sanger Transmission Line, by issuing its Bonds in amounts which will be sufficient to accomplish such purposes Denton will make payments as required to pay its pro rate share of the Annual Requirement, as provided in Section 5 01 of the Contract and this Addendum To determine Denton's share of the Annual Requirement for the Sanger Transmission Line, District will calculate the Capital Component of cost for Denton's share described in Paragraph 4 hereof based on actual costs of completion and the following schedule Year 1 Capital Component of Cost will be based on the incremental cost (minimum amount for total incremental cost equals $280,000) to oversize the pipeline from twelve (12) inch diameter to sixteen (16) inch diameter for the interval indicated in Exhibit C Years 2 through 8 Capital Component of Cost will be based on a graduated scale in even increments to transition to a full pro rata cost participation in the tenth (10th) year HahONt D AdduMwn 1s CaThad Babwan City a1 Donlan and UTRWD Reyndtn0 8anpar To. V 0sslon UM Palls i Year 10 to Retirement of Bonds Capital Component of Cost will be based on pro rate share of capacity as indicated in Exhibit C Said capital cost will include an Interest component (at a rate equal to the interest rate applicable to the Bonds issued to construct the line) for the amount of pro rate cost deferred under this schedule Subject to mutual agreement in writing, Denton may pay its share of the Annual Requirement according to an alternative schedule developed by the District After Denton has paid its full pro rate share and after retirement of Bonds, the Capital Component of Cost will no longer apply 6. If requested in writing by the District and agreed to by Denton, Denton may acquire or purchase easements or rights -of -way within the City Limits of Denton on behalf of the District for the Sanger Transmission Line Specifically, Denton agrees to acquire or to arrange for the dedication of necessary rights -of -way or easements in the interval from the Denton Connection Point to the Delivery Point near Milam Road The District will reimburse Denton for all direct cost associated with Denton's efforts to acquire said easement regardless of whether the easement is actually purchased If requested by District and agreed to by Denton, Denton may exercise its power of eminent domain on behalf of the District 7 On behalf of Denton and District, Denton agrees to operate that portion of the Sanger Transmission Line up to the Delivery Point (meter) and to be responsible for normal and routine maintenance of said portion of the Sanger Transmission Line according to the standards of Denton's own water transmission and distribution system Denton will maintain records of the actual cost of such maintenance and will send periodic reports of cost to District for reimbursement of cost in proportion to respective share of rated capacity of the pipeline according to Exhibit C District shall have reasonable access to Denton's records to verify such costs District hereby agrees that it will make payments to Denton according to the provisions of sections 5 06 and 5 07 of the Contract, which sections are otherwise applicable to Denton If, in the opinion of Denton, extraordinary maintenance such as pipeline replacement exceeding 1% of the length of the pipeline is required, Denton shall give written notice of such needed replacement Exhbk o Addendum b OoMacl ENwaan CVV of eanisn and eTRWO PUgeniap Sanger Tmmndsslon Lau Page 4 to District, and District and Denton shall mutually determine which party shall take appropriate steps to accomplish such extraordinary maintenance 8 Prior to completion of construction of the Sanger Transmission Line, Denton's Executive Director of Utilities shall develop a mutually satisfactory written procedure for coordinating the operation and maintenance of the Sanger Transmission Line and for each party to notify the other party of any activities which may affect the operations of the other pary's system 8. The Delivery Point for water by Denton shall be at a mutually agreeable location at a mid point on the Sanger Transmission Line at the approximate location shown on Exhibit C 10. All meter facilities for the Sanger Transmission Line shall conform to Section 4 03, "Metering Equipment" of the Contract District shall pay for and install appropriate meter facilities, including rate of flow controller and back -flow prevention device at the Delivery Point District will own the metering facilities and Denton will provide normal maintenance and calibration, the costs of which are eligible for inclusion in service rates 11. Denton may purchase the Distnct's rights, in whole or part, in the Sanger Transmission Line if District, at any future time, gives notice that its share of the tine is no longer needed for District purposes The price to be paid by Denton to District to purchase any portion of the District's share of the Sanger Transmission Line under this paragraph shall be equal to the original cost thereof for the District's share, less accumulated depreciation plus a credit (not to exceed said purchase price) for revenues, if any, received by District from Denton and other public utilities for use of the nghts-of-way included in the Sanger Transmission Line Deprecation expense will be computed on a straight line basis over a period not to exceed thirty (30) years for that portion of the pipeline owned by District For that portion of the pipeline owned by TWDB under a State Participation Agreement, depreciation expense shall start when the District purchases the TWDB's interest or five (5) years from date pipeline was first used for public service, whichever date occurs first E■nN* D Addandmd b OoMact Batsman C*J of Dadon and UTRWO Rap gdkv Ban"r To w. slon Lim Pays 6 12 If Denton purchases the District's share or any portion thereof of the Sanger Transmission Line under the provisions of this Exhibit, District shall continue to enjoy certain rights in connection therewith (1) to receive water from Denton, (2) to deliver water to Denton, and (3) to -deliver water to intervening customers of District along the line as may be provided by contract, and (4) to have the right of emergency exchange of water between Denton and District through the pipeline 19 If Denton desires and requests the District to constrict improvements or install appurtenances for Denton as part of the Sanger Transmission Line, which improvements or appurtenances are not otherwise needed by District, Denton shall be responsible for the entire cost of such improvements or appurtenances installed for the sole benefit of Denton 14. In a separate contract dated July 21, 1992 for WATER TREATMENT AND TRANSPORTATION SERVICES (as supplemented), District agreed to increase Denton's share of the Joint Transmission Line, as consideration for certain property being conveyed to District Said increased share shall not cause an increase in the amount to be paid by Denton for its share of the Annual Requirement for the Joint Transmission Line Rather, the increased share will result in Denton having larger capacity in the Joint Transmission Line and a corresponding smalletshare to acquire from the District when and if Denton acquires the District's share of the Joint Transmission Line under the terms of the Contract See Exhibit A (Revised) for the revised respective shares of the Joint Transmission Line 15 Notwithstanding any provision in this Addendum and the Contract, Denton shall have no responsibility for any portion of the Regional Treated Water Project other than the Joint Transmission Line and the Sanger Transmission Line DENTOMCONTRACTWDD-PSTL E%D