HomeMy WebLinkAbout2006-216ORDINANCE NO. 2006- o2j
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER TO PAY THE CITY'S ONE-TIME LUMP -SUM PAYMENT IN THE AMOUNT
OF $461,244.15 TO THE UPPER TRINITY REGIONAL WATER DISTRICT PERTAINING
TO DENTON'S SHARE OF THE KRUM TRANSMISSION PIPELINE AGREEMENT;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, City of Denton and the Upper Trinity Regional Water District
("UTRWD") entered into an Agreement for joint participation in the 16-inch water transmission
pipeline to Krum, Texas along Farm to Market Road 1173. The Public Utilities Board
recommended approval of this Agreement on the 22"d day of March, 2004, and the City Council
approved the Agreement on May 4, 2004; and
WHEREAS, this pipeline was completed in_the summer of 2005 and has been operational
since that time. The pipeline's capacity is 4.0 MGD, and the pipeline capacity and associated
costs were agreed to be shared equally by and between the City and the UTRWD; and
WHEREAS, the City of Denton had two options under said Agreement available to it
with respect to the payment of the matching sum to the UTRWD; either to pay one lump -sum
payment of $461,244.15; or to pay the payments over nine years, with an annual payments of
$65,876 (which included interest at the rate of 5.339%, the then current bond interest rate paid by
the UTRWD); and
WHEREAS, the Public Utilities Board considered this matter at its July 10, 2006 regular
public meeting and recommended approval of the one-time lump -sum payment option wherein
the City Council would authorize the payment of $461,244.15 to the UTRWD, by a vote of 6-0;
and
WHEREAS, the City Council, having considered the recommendation of the Public
Utilities Board, and having determined that the lump -sum one-time payment to the UTRWD is
due and owing, hereby approves said payment; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations set forth in the caption hereinabove are true and correct.
SECTION 2. The City Manager is hereby authorized to pay the sum of $461,244.15 in
full payment of the lump -sum payment obligation of the City of Denton to the UTRWD; the
expenditure of funds is hereby authorized.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of 2006.
PERK . McNEILL, MAYOR
ATTEST:
JENNIFER WALTER1S,'CCITY SECRETARY
By 1 W
APPRO ED AS O LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
SA0ur Documents\0rdinances\06UUum Transmission Pipeline Payment-2006.doc