HomeMy WebLinkAboutItem 06 - Grapevine Golf ClubITEM I
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER .I/
MEETING DATE: FEBRUARY 6, 2001
SUBJECT: AMENDMENT # 1 WATER SUPPLY AGREEMENT WITH
GRAPEVINE GOLF CLUB L.P.
RECOMMENDATION:
City Council consider approving Amendment # 1 to the Water Supply Agreement with
Grapevine Golf Limited, L.P for the supply of irrigation water to the Cowboys Golf
Course, authorize Staff to execute said amendment, and take any necessary action.
FUNDING SOURCE:
Grapevine Golf Club L.P. will pay the City of Grapevine for water utilized on the
Cowboy's Golf Course.
BACKGROUND:
The City entered into a contract on September 21, 1999 with Grapevine Golf Limited,
L.P. to provide untreated water for irrigation of the Cowboy's Golf Course being
constructed adjacent to the Grapevine Municipal Golf Course. This contract provided for
a fixed rate per thousand gallons of untreated water for two alternative water supplies,
direct wastewater effluent re -use and raw water from the lake.
Since this initial agreement, the City has negotiated a contract with Dallas Water Utilities
to purchase raw water from Lake Grapevine to irrigate the Grapevine Municipal Golf
Course and the Cowboys Golf Course. The cost of this raw water is far cheaper than
the direct re -use alternative. The rate will be adjusted annually by Dallas Water Utilities
and billed to the City of Grapevine. The same rate will be charged to both the Cowboys
Golf Course and the Grapevine Municipal Golf Course.
Grapevine Golf Limited, L. P. has agreed to this amendment and to the annually
adjustable rate utilizing Dallas Water Utilities raw water.
The City Attorney drafted the initial agreement and Amendment # 1.
Staff recommends approval.
JLH/jsl
February 1, 2001 (8:35AM)
FIRST AMENDMENT TO WATER SUPPLY AGREEMENT
WHEREAS, the CITY OF GRAPEVINE, TEXAS, a Texas municipal corporation
(the "City"), and GRAPEVINE GOLF Limited, L.P., a Delaware limited partnership
authorized to conduct business in Texas("GGL" ), entered into a Water Supply
Agreement (the "Agreement") dated September , 1999; and
WHEREAS, Section 10 of the Agreement provides that it can be amended upon the
mutual agreement of the parties, as evidenced by their execution of an amending
document; and
WHEREAS, the City and GGL both mutually desire to amend the Agreement; and
WHEREAS, the City and GGL desire that this Amendment take effect prior to its
execution, as provided for herein, in order to achieve both parties' goals.
AGREEMENT FOR AMENDMENT
For and in consideration of the mutual promises, covenants, obligations, and
benefits described herein and in the Agreement, the City and GGL agree as follows:
1. All matters stated in the preamble are found to be true and correct and are
incorporated herein as if copied in their entirety.
2. Section 4. Rate and Payments, is hereby amended in its entirety and replaced
as follows:
"Section 4. Rate and Payments
The City will provide Irrigation Water (whether Raw Water, Wastewater, or
Alternative Water) to GGL at the same costs as is provided to the Grapevine
Municipal Golf Course, and consistent with the following:
There shall be two (2) charges paid by GGL in consideration for the Irrigation
Water received by GGL:
a. Capital Charge- GGL shall be responsible for its proportionate
share of any capital improvements or facilities deemed necessary by the City to
ensure a sufficient volume of Irrigation Water to the Service Area. The Capital
Charge will include any costs necessary to provide Wastewater to the Delivery
Points. The Capital Charge shall be assessed on a monthly basis and shall be
calculated as a proportionate volume share of Irrigation Water provided to the
First Amendment to Water Supply Agreement- Page 1
FIRST AMENDMENT TO WATER SUPPLY AGREEMENT
WHEREAS, the CITY OF GRAPEVINE, TEXAS, a Texas municipal corporation
(the "City"), and GRAPEVINE GOLF Limited, L.P., a Delaware limited partnership
authorized to conduct business in Texas("GGL"), entered into a Water Supply
Agreement (the "Agreement") dated September , 1999; and
WHEREAS, Section 10 of the Agreement provides that it can be amended upon the
mutual agreement of the parties, as evidenced by their execution of an amending
document; and
WHEREAS, the City and GGL both mutually desire to amend the Agreement; and
WHEREAS, the City and GGL desire that this Amendment take effect prior to its
execution, as provided for herein, in order to achieve both parties' goals.
AGREEMENT FOR AMENDMENT
For and in consideration of the mutual promises, covenants, obligations, and
benefits described herein and in the Agreement, the City and GGL agree as follows:
1. All matters stated in the preamble are found to be true and correct and are
incorporated herein as if copied in their entirety.
2. Section 4. Rate and Payments, is hereby amended in its entirety and replaced
as follows:
"Section 4. Rate and _Payments
The City will provide Irrigation Water (whether Raw Water, Wastewater, or
Alternative Water) to GGL at the same costs as is provided to the Grapevine
Municipal Golf Course, and consistent with the following:
There shall be two (2) charges paid by GGL in consideration for the Irrigation
Water received by GGL:
a. Capital Charge- GGL shall be responsible for its proportionate
share of any capital improvements or facilities deemed necessary by the City to
ensure a sufficient volume of Irrigation Water to the Service Area. The Capital
Charge will include any costs necessary to provide Wastewater to the Delivery
Points. The Capital Charge shall be assessed on a monthly basis and shall be
calculated as a proportionate volume share of Irrigation Water provided to the
First Amendment to Water Supply Agreement- Page 1
Service Area and the Grapevine Municipal Golf Course and any other end user.
GGL's pro -rata share of the Capital Charge will be that portion of the total capital
cost necessary to provide GGL 750,000 gallons of Irrigation Water per day, and
shall not include any construction or infrastructure other than those necessary to
provide 750,000 gallons of Irrigation Water per day to the Delivery Points.
b. Commodity Charge- The Commodity Charge shall be the
incremental price per 1,000 gallons of Irrigation Water provided, and shall be
consistent with the Commodity Charge for Irrigation Water provided to the
Grapevine Municipal Golf Course. The Commodity Charge shall include, where
applicable, a pumping charge to address the direct cost to the City for providing
Irrigation Water to the Delivery Point. The Commodity Charge shall be billed and
paid on a monthly basis throughout the Term of the Agreement. Commodity Charge
payments shall be deemed late fifteen (15) days following GGL's receipt of an
invoice for same.
The Commodity Charge is applicable to all Irrigation Water provided to GGL,
while the Capital Charge shall only be applicable in the event the Irrigation Water
provided is Wastewater, or Alternative Water.
Any amounts due and owing by GGL from the effective date of this
Amendment to its date of execution which were not previously paid shall be payable
in a one time lump sum to Grapevine in accordance with the payment provisions of
the Agreement.
In addition to the above, GGL shall be responsible for the installation,
maintenance, and costs of all pipes, pumps, and other facilities required to transfer
the Irrigation Water from the Delivery Points, including any necessary permits or
easements therefor. The City agrees that no easements will be necessary for the
Subleased Premises as shown in the attached Exhibit A. Additionally, the City
agrees that any easement required by GGL to access the Delivery Points shall be
acquired by the City at GGUs sole cost. GGL shall be responsible for the operation
and maintenance of any delivery facility at the Delivery Points necessary to
distribute the Irrigation Water to the Service Area.
It is expressly understood and agreed that any obligations on the part of the
City to provide Irrigation Water to the Delivery Points be (a) conditioned upon the
City's ability to maintain all necessary permits, contracts, material, labor and
equipment, provided the City uses its best efforts to maintain said permits,
contracts, material, labor, and equipment, and (b) subject to all present and future
valid laws, orders, rules, and regulations of the United States of America, the State
First Amendment to Water Supply Agreement- Page 2
of Texas, and any government or regulatory body having jurisdiction over the City
or its activities."
3. This Addendum shall be attached as an exhibit to the Agreement and shall
be incorporated therein.
4. The Agreement and its terms remain unchanged, except as otherwise
provided herein.
EFFECTIVE as of the day of 2000.
Executed this day of , 2000.
ATTEST:
By:
Linda Huff
City Secretary
John F. Boyle, Jr.
City Attorney
CITY OF GRAPEVINE, TEXAS,
William D. Tate
Mayor
First Amendment to Water Supply Agreement- Page 3
Grapevine Golf Limited, L.P.
A Delaware limited Partnership
By:
The State of Texas
County of Tarrant
President
Before me, the undersigned, on this day personally appeared ,
of Grapevine Golf Limited, L.P., known to me or proved to me through the presentation of a valid
Driver's License to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed. Mr. furthermore attested that he is signing this Agreement in his
capacity with the Grapevine Golf Limited, L.P., and that such capacity makes his signature valid to
bind the company, Grapevine Golf Limited, L.P.
Seal:
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this _ day of ,
111
My Commission Expires:
Notary Public in and for the State of Texas
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First Amendment to Water SupplyAgreement- Page 4