Loading...
1997-036j \WPDOCS\0RD\SANGER 0RD ORDIN CE NO 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 ~olntly develop and operate a water transmission line (the "Jomnt Transmission Line") from the vlclnlty of Lllllan M~ller Parkway and Interstate 35E, and extending generally along Llllzan M~ller Parkway to the v~cln~ty of Old Alton Road near the south city l~m~ts of Denton, and WHEREAS, construction of the Joint Transmission Line has been completed and the l~ne ~s operating satisfactorily, and WHEREAS, the UTRWD is planning to construct another transmis- sion line (the "Sanger Transmission L~ne") that will connect to the north portion of the City's water distribution system ~n the v~clnlty of Loop 288 and Interstate H~ghway 35, extendIng generally along IH35 to the C~ty 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 C~ty and UTRWD, and, according to sa~d contract "Denton may participate, at its own option, in the capital and operating cost of sald p~pel~ne based upon ~ts proportionate share of the overall transmission capacity of the l~ne, up to the limit of Denton's extraterritorial jurisdiction" WHEREAS, ~n sa~d July 21, 1992 contract, City agreed to provide transmission service for UTRWD water through the C~ty water system to the Sanger Transmission Line and to other delivery points on City's water system, and WHEREAS, Clty deslres to participate ~n the capacity and proportionate cost of the Sanger Transmission L~ne to be construct- ed by the UTRWD, and WHEREAS, C~ty and UTRWD desire to enable such participation in the Sanger Transmission Line by an Addendum to the Contract, and WHEREAS, C~ty has agreed by separate contract to convey to UTRWD certain pipeline facilities associated with water service to the C~ty of Corinth and Lake Cities Municipal Utility Authority, and City and UTRWD desire to increase City's share of the Joant Transmission Line an Lallaan Maller Parkway as consaderatlon for said property being conveyed, and WHEREAS, City and UTRWD desare to amplement such other contract provlslons as will enable joint partaclpatlon 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 ars best efforts to design, construct and complete the Sanger Transmlssaon Line as provided in this addendum to contract, NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the Caty Manager as hereby authorized to execute an addendum to the Joint Ownershap and Operations Contract Between the City of Denton and Upper Trinity Regional Water Dlstr~ct Regarding Partlclpat~on in the Sanger Transmission L~ne, a copy of which addendum to contract is attached hereto and incorporated by reference herein ~ That the expenditure of funds as required in the attached addendum ~s hereby authorized ~ That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED th~s the~~' day of ~ 1997 ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY ADDENDUM TO JOINT OWNERSHIP AND OPERATIONS CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT REGARDING PARTICIPATION IN SANGER TRANSMISSION UNE THE STATE OF TEXAS COUNTYOF DENTON This Addendum (the 'Addendum") to an e)estmg c~- ~b-act styled as JOINT OWNERSHIP AND OPERATIONS CONTRACT, dated May 6, 1993, (the 'Contract') by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the 'District'), a conservation and rectamedon district created pursuant to A~ticle XVl, SectKm 59 of the Constltutmn of the State of Texas, and the CITY OF DENTON ('Denton"), a mur.apal c,::qx:ta~xt, ~s made and approved as of the /-// day of , 19~ (the "Date of Addendum') WHEREAS, Denton and I)stnct entered ~nto the May 6, 1993 Jmnt Ownership and Operations Contract (the 'Contract') to jointly develop and operate a water transmission I,ne (the 'Joint Transm~ssmn Line') from the v~nRy of L~lhan Mdler Pad(way and Interstate 35E, and exten(~ng generally along LiIl~an M~ller Parkway to the wc~nRy of Old Alton Road near the south c~ty hmRs of Denton, and WHEREAS, construction of the Joint Transmits;on Line has been completed and the hne is operating sabsfactonly, and WHEREAS, the D~stnct ,s Idannlng to construct another transmission line (the "Sanger Transmission IJne") that mil connect to the north portKm of the Denton water c~stnbutK)fl system in the vlc~nKy of Loop 288 and Interstate Highway 35, extending generally along IH35 to the C,~ty of Sanger, and WHEREAS, the Sanger Trensmlss~on LJne end Ks connection to the Denton system are authorized under a (~ain contract for Water Treatment and Trensm,ssK)n Serwces dated July 21, 1992 between Denton and District, and, r=,,:,o;~cling to smd contract, 'Denton may p4bllcipa~, at Ks c3p~on, ~n the captal and oper~ng cost of smd p4pel,ne based upon its pcc~e shere of the ovefldl transmission c~ of the I~ne, up to the llmK of DefltCXt's extraterritorial JultSdK:tlofl ' WHEREA8, in said July 21, 1992 contract, Denton agreed to provide transmission sewlce for D~st~ct water through the Denton water system to the Sanger TransmissKm Line and to other delivery points on Denton's water system, and WHEREA8, Denton desires to pert~pate in the capac~ and propcxtKm~e cost of the Sanger Trensmlss~on IJne to be construoted by the Distnot, and WHEREA8, Denton and District desire to enable such participation in the Sanger Transm~ssKm Line by th,s Addendum to the Contract, and WHEREAS, Denton has agreed by separate contract to convey to [~stnct certmn p~pahne fecal;ties assoc~ted ruth water service to C~ty of Connth end Lake C;fles Municipal Ut,l~ty Authonty, and Denton end D~stnct desire to ~ncrease Denton's share of the Joint Transmission Line ~n LiIl~an M;ller Parkway as cons;deraflon for sa;d property being conveyed, and WHEREAS, Denton and D~stnct desire to implement such other contract provisions as w~ll enable joint part~patmn in the Sanger Transmission L~ne and to provide for the District to purchase treated water from Denton for resale to Sanger NOW, THEREFORE, ~n conslderat,on of the mutual covenants and agreements heroin contmned, the D,stnct agrees to use ~s best efforts to design, construct and complete the ~anger Trensmms~on IJne upon and subject to the terms of the Contract and th~s Addendum as hereinafter set furth, to-w~t AGREEMENT 8eobon 1.0. Preamble btoomoraied That the rna~ers s~,~'ed in the preamlde hereof are true and con'ect and me incoflXxated into the body of this Addendum es if copied in thetr entirety 8eelion 1.1. ~ The pmv~ons of the Contract shall remain in full force and effect as supplemented by this Addendum Further, Denton and Dist~ct agree to add the provisions of this Addendum to provide for joint part~pabon by Denton and District ,n the Sanger Tmnsmiseion hne end to increase Denton's share of the Jmnt Tmnsmismon lane as reflected tn Exhibit A (Rev,seal) attached hereto and incorporated haman for all purposes 8eellen 1.2 parNalaalien in Reaienal Treated Water Prelect D,stnct and Denton agree that Denton's part=paflon ~n the Sanger Tmnsm,ss~on lane ,ncrease Denton's participation ,n the Regional Treated Water Project as specified in the Contract only as provided harem a) Denton's part~c~pahon an the Regional Treated Water ProJeCt will increase by the defined hm~ts of Rs partlc~pabon ~n the Sanger Transmission lane, and b) Denton w~ll gmn a greater share of the Regional Treated Water Project by the agreement here~n to ~ncrease Denton's share of the Joint Trensm~sslon lane Seobon 1 3 parbmpabon an Sanaer Transm~ss,on Line Denton wall part~=pate on a pro rata bas~s m the Sanger Trensm~sslon lane an accordance vath the hm~s, s~ze and capac~bes specified ~n Exhibit C and wRh cost participation as specified m Exhibit D, hereto, which ExhibRs are incorporated into th~s Addendum and the Contract for all purposes The Sanger Transmission lane shall be designed and constructed by the D~stnct ¢31{y of I}eatea lad UTRWD Uae 8eobon 1.4 Extent of P,,rbm_eation [~stnct agrees to provide for the Sanger Trensm~ss~on Line between the points and along the general mute and for the capa=t~es del,neared ~n F. xhlbA C Denton may transport water for As own use through the Sanger Trensm~ss=n Line up to the peak day capacities prowdad for ~n Exhlb~ C 8eotion 1.$. 8~anbd Provisions Denton and Disthct acknowiodge and agree to the spacml provisions related to the Sanger Transm,ssmn Line wha:h are set fo,th in the attached F_.xhit~t D, which Exhibit is incorporated ~nto this Addendum and the Contract for all puq)oses 8eeaea 1.6 ~ efWa~r As prowled in the July 21, 1992 contract between Denton and D~stnct, Denton reaffirms As agreement to sell wholesale treated water to Ehstnct for dalrvery and resale to Sanger Such sale of water by Denton shall be on a wholesale basis in accordance w~th said July 21, 1992 Contract, as amended or supplemented Section 1.7 ~ Denton may prepay or pay the remmn~ng balance of ~ts sham of capital cost Part=patlon ~n the Sanger Trensmlss~on hne or the Joint Transm,ss~on bne at any t~me The amount of such early payment w~ll be equal to the unpaid balance ~nclud~ng any deferred amounts 8eetmn 1.8 Term of Addelt{Ipm 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 IN WITNESS WHEREOF, the parbes hereto acbng under authonty of their respective governing bodies have caused th~s Addendum to be duly executed in several counterparts, each of which shall constitute an ong~nal, all as of the day and year first above wntten, which is the Date of Addendum UPPER TRINITY REGIONAL WATER DISTRICT R~chard Huckaby ~ Premdent, Board of D~rectors Oohn F Boyle, Or, Gouns§l for tho D~stnct CI~_~ENTON, TEXAS Ted Benawdes, C~ty Manager r-V~pers, C~ty Secretary APPROVEB AS/TO LEG/AL FORM Herb Prouty,' C;ty~,ttorr~ey EXHIBIT B E~lblt B as contained ~n the original Contract shall remain vahd and ~n effect Sa,d Exh~brt is modred or supplemented only to the extent prowded in th~s Addendum NOT TO SCALE GENERALLY ALONG ULMAN MILLER PKWY/ F'M 2181 FROM INTERSTAI'IE HIGHWAY 35E TO OLD ALTON 27' DIA FROM IH 35E TO FM 2181 20" DIA FROM Fbi 2181 TO RYAN ROAD 18" DIA FROM RYAN ROAD TO OLD ALTON .~ I;ApACITY OF 27" DIA. PIPE. TOTAL *= 14 3 MGO DENTON SHARE= 72 7~[ (10 4 MOD) / Ull~WO SHARE= 27 3~ (3 9 MGD) 2D' Pem~,~nt 18" DIA CALCULATED CAPACITY OF 20' DIA. PIPE. Q = 4-9 MGD TOTAL ,- 6 5 MGD DENTON SHARE = 399,(26 MGD) UTRWD SHARE = 601,(39 MGD) GALCULATED CAPACITY OF 18" DIA. PIPE. -~/TOTAL = ~ 9 MGD O£NTON SHARE = 0:~ (0 0 MGD) r-- UTR1AO SHARE = 1007~ (4 9 MOD) POINT APPROXIMATELY 3 600 LF OF 27" DIA APPROXIMATELY 5 400 LF OF 20' OlA ~ APPROXIMATELY 6 500 LF OF 18' DIA ~.~ EXHIBIT "A REVISED" JOINT TRANSMISSION LINE UPPER TRINITY REGIONAL WATER DISTRICT REGIONAL TREATED WATER PROJECT PHASE lA PIPELINES , EXHIBIT B Exhibit B as contmned ~n the ongtnal Contract shall rema,n vahd and ~n effect Satd Exh~bR ts modeled or supplemented only to the extent provtded ~n this Addendum a ~add.-p~l e~ SANGER TRANSMISSION LINE 0 5000 SCALE POINT NOR'IH FROM LOOP 288 ON THE; EAST ~ Of' IN'I[RSTATE HWY ~5 TO dUST SOUIH CF' RECTOR RO/~D, EAST ON 'R.IE SOU'IN S~OE 0¢ RECTOR ROAD, ~N NORll,I ALONG THE EAST OF' O0~NG ROAD NORTH TO IH[ SANGER DEU~'ERY POINT 16 ~[~ FROM C(~IN[C'RON POINT TO D~IJ~'ERY P(~NT 12' DIA FROM lelII,.AM ROAD TO SANGE~ DI;'UVERY INIIlIAL TOTAL = 3 25 MGO DE:NTON SHARE; =, 59~ (I 92 MGO) U1RM) SHARE = 41~ (1 33 APPX. 17,000 LF O,c' 16" DIA PIPE APPX. 18,500 LF OF 12" DIA PiPE GANZER ROAD 'Il'liS EXHIBIT ILLUSTRATES THE APPROXIUATE ROUTE OF TIlE 16" DIA. PIP PROROSED PIPELINE ALONG THE GENERAL ROUTE SHOWN ACTUAL LOCA'IION ~ THE PIPELINE MAY VARY FOR ENGINEERING OR OTHER 1ECHNICAL REASONS IF ACTUAL PIPELINE SIZES OR LENGTHS VARY, BY MUTUAL AGREEMENT, THE SHARE PERCENTAGES SHALL REMAIN THE SAME LOOP 28 EXHIBIT C tL PIPELINE LIIdI?S co~[c'no~ AND CAPACITIES INITIAL Q = .3 25 MGD EXHIBIT D TO CONTRACT BETWEEN CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT FOR PARTICIPATION IN THE SANGER TRANSMISSION UNE SPECIAL PROVISIONS R'*:GARDING PARTICIPATION The proviMons of this "Exhibit D' form a part of the Contract and are applicable to the Upper Trindy Regional Water District (the 'D~sthct") and to the C~y of Denton ("Denton") as d' set forth m their entirety in the body of the Contract 1. The Dlath~ will ~mstruct the Seeger Trarmmlssion Line as a part of the Project as defined in the Contract The District will own the Sanger Tmnsm,ssion Line, Including the right-of, way, exg:mpt as otherwise provided herein for Donton'$ share of the line The District will coordinate routing, design and rigM-of-way acquisition with Denton Within the City Umits 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 seld rights-of-way wilhm Denton ,for underground utilities District and Denton agree to coordinate arrangements for parallel or adjoining easements and other rigMs-of-way, incJuding reciprocal use of such easements and rights-of-way for temporary use dunng construction, routine operelfonal maintenance and for other mutually bemdtclal purposes 2. It is mutually agreed that, vath~n its share of the easement or right-of-way for the Sanger Transmission Une, Denton shall have the nght to ;nstatl and mmntmn other wa{er I;nes, as well as sewer, underground elec=tno and teiecommumcat~on fa~htles owned by Denton 3. The Dlstnct wdl prowde the funds to des;gn the Sanger Transmission L~ne, ~ncludlng acq~ =~bon of nghts-of-way The s~ze of the hne and capacities in the hne for Denton and D;stnct, respectively, shall conform to the requirements of Exh;b;t C, hereto 4. After design of the $anger Transmission L;ne has been completed and after approval by Denton, the D~stnct shall take compebflve b~ds for construction After receipt of b~ds and before a contract (or contracts) for construction ~s awarded, the D~stnct shall g;ve Denton written hotlce of the D~stnct's recommendation regarding award of contract(s) and of Denton's share of the proposed contract to be awarded Unless Denton elects the financing option descnhed in Paragraph 5 follovang, Denton shall deposit with the D,stnct, w~thln forty-five (45) day~, ~ts pro rata share of the proposed construction cost for the Sanger Transmission hne plus the cost of special appurtenances, d' any, requested by and for Denton The funds so deposited by Denton for construction shall be placed in an ~nterest beanng construction account by Disthct The District may ~thdraw funds from the construction account as required to make progress and final payment according to the construcben contract awarded for the Sanger Transmission Line The District shall maintain an accounting of all direct expond~ture$ for rights of way and for design and (~lstmction of the 8anger Transmission bna, including engineering and gm)technical services during construction Upon compleben of construction, Denton agrees to pay ~s share, ~f any, of contract change orders, direct sewices during construction, or extra costs required to complete the Sanger Transmission Line After payment for change orders, services dunng construction or extra costs, any surplus funds remaining in the interest bearing account shall be returned to Denton at completion of the contract(s) 6 At Denton'a option, Disthct Mil provide funds to construct Denton'a share of the Sanger Tmnemlaslon Une 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 ~mprovement of the Sanger Transmission Line, by issuing its Bonds in amounts which w~ll be sufficient to accomplish such purposes Denton w~ll make payments as required to pay its pro rata share of the Annual Requirement, as prowded ~n Section 5 01 of the Contract and th~s Addendum To determine Denton's share of the Annual Requirement for the Sanger Transmission bna, D~stdct w~ll calculate the Capital Component of cost for Denton's share descnbed in Paragraph 4 hereof based on actual costs of completion and the following schedule Year I Capital Component of Cost w~ll be based on the incremental cost (minimum amount for total incremental cost equals $280,000) to oversize the p~pehne from twelve (12) ~nch d~ameter to sixteen (16) tach d~ameter for the ~nterval indicated in Exhibit C Years 2 throuflh 9 Capital Component of Cost will be based on a graduated scale ~n even increments to transition to a full pro rata cost parhc~pat~on ~n the tenth (lOth) year Year 10 to Ret3rement of Boqde Cap;tal Component of Cost w~ll be based on pre rata share of capac,ty as ~nd~catsd in Exhibit C Sa~d capital cost w~ll ,nclude an ~nterest component (at a rate equal to the ~ntsrest rate appl,cable to the Bonds ~ssued to construct the line) for the amount of pm rata cost deferred under th,s schedule Subject to mutual agreement in writing, Denton may pay ,ts share of the Annual Reqwrement according to an altematwe schedule developed by the District After Denton has pa,d ~ts full pm rata share and after retirement of Bonds. the Capital Component of Cost wtll no longer apply 6. If requested ,n writing by the Distnct and agreed to by Denton. Denton may acqu,re or purchase easements or ~ghts-of-way mth,n the C~y [Jm~ts of Denton on behalf of the D~stnct for the 8anger Transmission Erie 8poctflcally. Denton agrees to acqu,re or to arrange for the dedication of necessary rights-of-way or easements ,n the ,nterval from the Denton Connect,on Point to the Del,very Point near M,lam Road The D,stnct vail reimburse Denton for all d,rect cost assoc;ated vath Denton's efforts to acqwre sa,d easement regardless of whether the easement ,s actually purchased If requested by D,stnct and agreed to by Denton, Denton may exe~se ~s power of eminent domain on behalf of the D,stnct 7 On behalf of Denton and Dlstnct, Denton agrees to operate that port,on of the Sanger Trensm,ss~on L~ne up to the Delivery Point (meter) and to be responstble for normal and routine ma~ntenence of se~d port~on of the Senger Transm,ss~on Line accord,ng to the standards of Denton's own water transmission and d;stnbut;on system Denton vail maintain records of the actual cost of such maintenance and w~ll send penod~c reports of cost to D~stnct for re;mbursement of cost m proporhon to respective share of rated capacity of the p;pel~ne according to Exhibit C D~stnct shall have reasonable access to Denton's records to venfy such costs D~stnct hereby agrees that ~t w~ll make payments to Denton according to the prows~ons of sect;ons 5 06 and 5 07 of the Contract, which sections are otherw;se applicable to Denton If. in the op~mon of Denton, extraordinary maintenance such as p~pel;ne replacement exceeding 1% of the length of the p;pel~ne ~s requ,red. Denton shall g~ve wntten not~ce of such needed replacement to District, and Distnct and Denton shall mutually determine which party shall take appropnate steps to accomplish such extraordinary maintenance 8 Pnor to compleaon of construction of the Sanger Tmnsmlwon Une, Denton's Executive Director of Utilities shell develop a mutually satisfactory written procedure for coordinating the operation and maintenance of the Sanger Transmission IJne and for each party to notify the other party of any activities which may affect the operet~ons of the other party's system 9. The Delivery Point for water by Denton shall be at a mutually agreeable location at a mid po,nt on the Sanger Transmission IJne at the approximate location shown on Exhibri C 10. All ma~er facilities for the Sanger Transmission IJne shall conform to Section 4 03, "Metering Equipment' of the Contract District shall pay for and install appropnata meter facdit~es, including rate of flow controller and back.flow prevention device at the Delivery Point Disthct own the metering facilities and Denton will provide nomnel maintenance and ca'lbreaon, the costs of which are eligible for inclusion in serwce rates 11. Denton may purchase the Disthct's rights, in whole or part, in the Sanger Transmission Line if Distnct, at any future time, gives notice that its share of the line is no longer needed for District purposes The price to be paid by Denton to District to purchase any portion of the Distnct'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 depre~atlon plus a credit (not to exceed said pumhase price) for revenues, if any, received by District from Denton and other public uflhtles for use of the nghts-of-way included in the Sanger Transmission Line Depreciation 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 port~on of the p~pehne 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 p~pelme was first used for pubhc service, whichever date occurs first 12 If Denton purchases the D~stnct's share or any port~on thereof of the Sanger Transmission Line under the provisions of th~s Exhibit, D~stnct shall continue to enjoy carta~n nghts in connection therewith (1) to receive water from Denton, (2) to dehver water to Denton, and (3) to-dehver water to intervening customers of Distnct along the line as may be provided by contract, and (4) to have the nght of emergency exchange of water between Denton and Disthct through the pipeline 13 If Denton des;res and requests the D~stnct to construct tmprovements or install appurtenencas for Denton as part of the Sanger Transmiss~on IJna, which improvements or appurtenances are not otherwise needed by D,stnct, 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 ~norease Denton's share of the Joint Transmission Une, as consideration for certain property beir conveyed to D,stnct Sa~d increased share shall not cause an increase in the amount to be pa~l by Denton for ~ts share of the Annual Requirement for the Joint Transmission [Jne Rather, the increased share result In Denton having larger capacity in the Joint Trensm~ss~on Idne and a corresponding smaller,share to acquire from the Disthct when and ~f Denton acquires the D;stnct'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 Trensmlss~on Line 15 Notwithstanding any prowslon in th;s Addendum and the Contract, Denton shall have no responsibility for any port,on of the Regional Treated Water Project other than the Jmnt Transmission L~ne and the Sanger Transm~ss;on L~ne DENTON~CONTRACT'~ADO-PSTL EXD