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HomeMy WebLinkAboutItem 11 - Water Booster Pump StationMEMO TO: FROM: MEETING DATE: SUBJECT: RECOMMENDATION: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL BRUNO RUMBELOW, ACTING CITY MANAGER fA NOVEMBER 15, 2005 RESOLUTION AND CONTRACT WATER BOOSTER PUMP STATION City Council consider approval of a resolution and contract with the Trinity River Authority of Texas for the funding participation in the design and construction of a Water Booster Pump Station to serve the City of Grapevine, authorize the Mayor to execute said contract, and take any necessary action. FUNDING SOURCE: FUNDING Account # Amount Award % TRA N/A $ 5,114,000 50.0 Future Utility Bonds N/A $ 5,114,000 50.0 Construction $ 6,265,000 61.3 Total $ 10,228,000 $ 0 100.0 BUDGET Amount Award % $ 821,000 8.0 -Design Land Acquisition $ 2,200,000 21.5 Construction $ 6,265,000 61.3 Contingency $ 942,000 9.2 Total $ 10,228,000 $ 0 100.0 Note: The project is included in the current Water Impact Fee program and is 100% attributable to new development. Future Utility Bonds will be reimbursed by Water Impact Fees as they are received. BACKGROUND: The City of Grapevine is a wholesale water and wastewater customer of the Trinity River Authority of Texas (TRA). The TRA drinking water service area contract was amended in 1998 to incorporate an expanded area. This was due to the limited water rights November 10, 2005 (10:01AM) Grapevine possesses in Lake Grapevine and increased water demand in northeast Grapevine. The City of Grapevine and TRA conducted a water supply study to determine if TRA could deliver water to Grapevine in the northern service area at quantities sufficient to meet peak demands. Freese and Nichols Inc., consulting engineers, coordinated field testing to determine if bottlenecks such as closed valves or restrictions existed in Grapevine's distribution system to determine the reliable delivery rate of TRA's transmission system to Grapevine. The results did not indicate any obvious blockages in Grapevine's distribution system. TRA's delivery rate is highly dependent on the pressure that can be maintained by TRA at the City of Grapevine delivery points. Based on the field testing results, it appears the total reliable maximum delivery rate from TRA is approximately 16 to 18 MGD currently. At ultimate development, Grapevine will require a dry weather total maximum day demand delivery of 26.30 MG from TRA. A booster pump station will be required for TRA to adequately deliver water to all contracted Grapevine service areas. The contracted service areas according to the 1998 Amended Contract includes all areas west of Dooley Street and north of the Cottonbelt Railroad as well as all of the City south of the Cottonbelt Railroad. The booster pump station would best be located generally in the area of State Highway 121 south of Mustang Drive. Timing is important in that water demand projections indicate the need for the pump station in 2006-2007. Staff began discussions with TRA to seek partial funding for the pump station. Initially, the response was negative but eventually TRA agreed to take a funding agreement to the TRA Advisory Board made up of the member cities of the TRA water system (Bedford, Euless, Colleyville, North Richland Hills and Grapevine). The funding agreement provided for a 50% participation from TRA. Cost estimates were approximately $10.228 million for construction of the station including land. The Board voted unanimously to fund the construction of the pump station with a cap of $5.114 million. This was a precedent setting vote, in that TRA has never participated in the cost of construction of a facility that serves only one entity within the city limits of that entity. The attached resolution and contract will provide for TRA participation in construction of a water pump station serving Grapevine. The City Attorney has reviewed the documents and found them to be acceptable. Staff recommends approval. MS/ms November 10, 2005 (10:01AM) -To4 � b -S - RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AUTHORIZJNG AND DIRECTING THE EXECUTION OF THE TRINITY RIVER AUTHORITY OF TEXAS — CITY OF GRAPEVINE WATER FACILITIES CONTRACT (TARRANT COUNTY WATER PROJECT); AND PROVIDING AN EFFECTIVE DATE WHEREAS, the Trinity River Authority (TRA) provides potable drinking water to the City of Grapevine; and WHEREAS, future development in the City will increase the need for TRA to provide potable drinking water in the City; and WHEREAS, to meet this increased potable drinking water demand, a booster pump station and ground storage facility is necessary to provide the volumes and pressures in the TRA delivery trunk lines; and WHEREAS, TRA and the City have reached an agreement to share in the cost of this pump station and ground storage facility on a 50 percent TRA and a 50 percent City basis. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the preamble of this resolution are true and correct and are incorporated herein as if copied in their entirety. Section 2. That for and on behalf of the City of Grapevine, Texas (the "City"), the Mayor of the City is hereby authorized and directed to sign, deliver, and otherwise execute, and the City Secretary of the City is hereby authorized and directed to sign and attest the "Trinity River Authority of Texas — City of Grapevine Water Facilities Contract (Tarrant County Water Project)" (the "Contract") in substantially the form and substance attached to this Resolution and made a part hereof for all purposes as Exhibit "A". Section 3. That upon its execution by the parties thereto, the Contract shall be binding upon the City in accordance with its terms and provisions and the appropriate officials of the City are authorized and directed to take any and all action, to execute and deliver any and all documentation and to perform any and all functions as may be necessary or appropriate according to the terms of the Agreement. Section 4. That this Resolution shall take effect and be in full force and effect from and after the date of its adoption, and it is so resolved; and all resolutions of the City Council of the City in conflict herewith are hereby amended or repealed to the extent of such conflict. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 15th day of November, 2005. ATTEST: APPROVED AS TO FORM: RES. NO. 2 TRINITY RIVER AUTHORITY OF TEXAS - CITY OF GRAPEVINE WATER FACILITIES CONTRACT (TARRANT COUNTY WATER PROJECT) THE STATE OF TEXAS TRINITY RIVER AUTHORITY OF TEXAS This Trinity River Authority of Texas - City of Grapevine Water Facilities Contract ("Contract") is made and entered into as of the _ day of , 2005, by and between the CITY OF GRAPEVINE, TEXAS ("City"), a municipal corporation acting under the laws of the State of Texas, and its Home Rule Charter, and the TRINITY RIVER AUTHORITY OF TEXAS ("Authority"), a conservation and reclamation district and political subdivision of the State of Texas created and functioning under Article 16, Section 59, of the Texas Constitution, pursuant to Chapter 518, Acts of the 54th Legislature of the State of Texas, Regular Session, 1955, as amended ("Authority Act"). RECITALS WHEREAS, in connection with the Authority's Tarrant County Water Proj ect, hereinafter described, water supply contracts, each dated as of January 21,1972, and amended as of January 22,1975 and December 5,1979 (with respect to the City of Euless) and December 11, 1979 (with respect to the City of Bedford), have been duly executed between the Authority and the Cities of Bedford and Euless, Texas, respectively, and water supply contracts, each dated as of April 25, 1979, and amended as of December 5, 1979 and April 23, 1980, have been duly executed between the Authority and the Cities of Colleyville and North Richland Hills, Texas, and the City with all of the above named cities being hereinafter collectively called and defined as the "Cities", and with all of the above contracts, as amended, being hereinafter collectively called and defined as the "TCWP Contracts"; and WHEREAS, the TCWP Contracts relate to the financing of the acquisition and construction of the Tarrant County Water Project, being water supply facilities to serve the Cities and others, as described in the engineering report entitled "Report on Proposed Bedford -Euless Water System to Trinity River Authority of Texas", dated July 1, 1971, and as such report has been amended and supplemented to provide expanded service, including the supplement thereto entitled "Trinity River Authority of Texas Tarrant County Water Project Master Plan Modification to serve Bedford, Euless, Colleyville, Grapevine, and North Richland Hills", dated October, 1976, prepared by Knowlton -English -Flowers, Inc., and including all additional amendments and supplements thereto made thereafter; and WHEREAS, pursuant to the TCWP Contracts and appropriate bond resolutions the following Series of bonds were duly issued and delivered by the Authority and are now in whole or in part outstanding and secured by payments pursuant to the TCWP Contracts: Trinity River Authority of Texas (Tarrant County Water Project) Improvement and Refunding Revenue Bonds, Series 1999, dated June 15, 1999 (the "Series 1999 Bonds"), in the original principal amount of $32,765,000 and Trinity River Authority of Texas (Tarrant County Water Project) Improvement and Refunding Revenue Bonds, Series 2003, dated January 1, 2003 (the "Series 2003 Bonds"), in the original principal amount of $72,700,000; and WHEREAS, under the TCWP Contracts and the resolutions authorizing the above described bonds, the Authority may issue junior lien revenue bonds as "Improvement Bonds" to acquire and construct improvements to the Authority's Tarrant County Water Project as "Additional Bonds"; and WHEREAS, the Authority heretofore issued its Trinity RiverAuthority ofTexas (Tarrant County Water Project) Improvement and Refunding Revenue Bonds, Series 2005 (the "Series 2005 Bonds") to obtain funds to refund certain of the Series 1999 Bonds and Series 2003 Bonds and to acquire and construct improvements and extensions to the Tarrant County Water Project, which Bonds were issued on a junior and subordinate lien basis relative to the unrefunded Series 1999 Bonds and Series 2003 Bonds; and WHEREAS, as the Tarrant County Water Project has been constructed, improved and expanded to date, and, in anticipation of further planned construction, improvement and expansion projects which are being implemented through the issuance of the Bonds (as hereinafter defined), the Authority and the Cities have concluded that the Tarrant County Water Project has experienced, and will continue to experience in the absence of construction of the facilities hereinafter provided for, limitations in delivering water to the Cities at their various delivery points at higher pumping rates during peak flow periods; and WHEREAS, the City has requested that the Authority participate in the construction cost and ownership of certain water transportation and storage facilities within the City's water system which have been designed to provide adequate water pressure and volume to the water customers of the City as an alternative means to address the limitations of the Tarrant County Water Project described above; and WHEREAS, the Authority and the Cities have determined that participation of the Tarrant County Water Project in the construction cost and ownership of such facilities is the most cost effective manner of addressing the limitations of the Tarrant County Water Project described above; and WHEREAS, the Authority is willing and able, in order to carry out a purpose for which it was created, to acquire, by purchase and construction, for the benefit of the Authority and the Tarrant County Water Project, certain water facilities to provide water to inhabitants of the City (with such water facilities being hereinafter called the "Project"); and WHEREAS, the Project is described in an engineering report considered to be an amendment and supplement to the 1976 Modified Master Plan heretofore described and captioned "Tarrant County Water Supply Project Master Plan of 2005", dated July, 2005, by Malcolm Pirnie, Inc.; and WHEREAS, such report, including all amendments, supplements, and change orders thereto, heretofore or hereafter made, is hereinafter called the "Engineering Report"; and E WHEREAS, the Authority has issued the Series 2005 Bonds in an amount which, together with funds provided by the City, will be sufficient to provide, amongst other purposes, Phase I of the Project, 50% of which, upon completion, will be owned by the Authority as part of the Tarrant County Water Project, and to be operated by the City on behalf of itself and the Authority; and WHEREAS, subsequently, the construction of Phase II of the Project will be funded by the Authority and the City as hereinafter provided; and WHEREAS, the City and the Authority are authorized to make and enter into this Contract under the Authority Act and other applicable laws; and WHEREAS, this preamble is made a part of this Contract for all purposes. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Authority agrees to provide 50% of the cost of Phase 1 of the Project, and to subsequently issue Bonds to fund 50% of the cost of Phase II of the Project under this Contract, and the City agrees to acquire, construct and operate the Project, upon and subject to the terms and conditions hereinafter set forth, to -wit: Section 1. DEFINITIONS. The terms and expressions used in this Contract, unless the context shows clearly otherwise, shall have meanings as follows: (a) "Board" and "Board of Directors" means the Board of Directors of the Authority. (b) "Bonds" or "Authority's Bonds" means any bonds issued by the Authority, including the Series 2005 Bonds, for acquiring, by purchase and construction, its interest in the Project, whether in one or more series or issues, or any bonds issued to refund same or to refund any refunding bonds. (c) "Bond Resolution" means any resolution of the Board authorizing the issuance of Bonds and providing for their security and payment, as such resolution(s) may be amended from time to time as therein permitted. (d) "Engineering Report" means the engineering report as described and defined in the preamble to this Contract, together with any amendments and supplements thereto. (e) "Project" means the Project as described in the Engineering Report. Section 2. OBLIGATION TO ACQUIRE; PROJECT FUNDING. (a) The City agrees to pay from its available sources, subject to the further terms and provisions of this Contract, 50% of all of the actual costs of acquiring, by purchase and construction, the Project, all in the manner hereinafter described; and the City, by such payment, will thus acquire 50% of the Project. The entire output and usefulness of the Project, however, is for the direct benefit of the City and indirectly for the benefit of the Tarrant County Water Project (b) The Authority agrees to pay to the City, and will pay solely from, and to the extent of the availability of, either the proceeds derived from the issuance and sale of its Bonds or funds available to the Authority from its ownership and operation of the Tarrant County Water Project, or both, and subject to the further terms and provisions of this Contract, 50% of all of the actual costs incurred by the City in acquiring, by purchase and construction, the Project, all in the manner hereinafter described; and the Authority, by such payment, will thus acquire 50% of the Project for the benefit of the Authority and the Tarrant County Water Project. (c) Unless otherwise agreed upon in writing, the Authority shall pay such 50% of the cost of the acquisition, by purchase and construction, of the Project to the City in partial payments based upon written statements with documentation presented to the Authority by the City as the Project is designed and acquired, by purchase and construction. The Authority shall make such progress payments within 30 days of receipt of such written statements. (d) As described in the Engineering Report, Phase I of the Project is estimated to cost $7,008,000 and Phase II of the Project is estimated to cost $3,220,000. The Authority's share of the Project costs shall not exceed $3,504,000 for Phase I, nor $5,114,000 in total. Section 3. CONSULTING ENGINEERS. The City has selected Consulting Engineers for the Project and the Project will be acquired, by purchase and construction, in substantial accordance with the Engineering Report and in accordance with plans and specifications prepared under the supervision of the Consulting Engineers. It is further agreed that the Consulting Engineers may be changed, but only with the agreement of both the Authority and the City. Section 4. ACQUISITION CONTRACTS. The City, acting on its own behalf and on behalf of and as agent for the Authority, will enter into such contracts as are necessary to provide for acquiring, by purchase and construction, the entire Project, and said contracts shall be executed as required by the laws applicable to the City. The Authority, upon written request made to the City, shall have the right to review and approve, in writing, any bids submitted to the City relating to the acquisition, by purchase and construction, of the Project. The City shall cause the amounts due under such contracts to be paid proportionally from the combined funds of the City and the Authority, as provided under this Contract. The Authority shall deposit proceeds from the sale of any of its Bonds, to the extent the Authority has issued its Bonds for said purpose, into a special Project Construction Fund. Said Project Construction Fund shall be used for paying to the City the Authority's share of the costs and expenses incident to the Project, pursuant to specific written requests therefor, in accordance with Section 2 hereof. Section 5. THE PROJECT; OWNERSHIP; OPERATION. (a) The City will provide, make available, and render, to and for the benefit of the City and its inhabitants, the water facilities and services of the Project paid for and acquired by both the City and the Authority pursuant to this Contract. As further consideration, it is agreed that the City will have the sole responsibility for causing the Project to be operated and maintained, and that the City will cause the Project to be operated and maintained; and the City agrees, to the extent permitted by law, to indemnify and to save and hold harmless the Authority from any and all claims, damages, 4 losses, costs, and expenses, including reasonable attorneys fees, arising at any time from the acquisition, existence, ownership, operation and/or maintenance of the Project. It is hereby provided that in further consideration of the payments made by the City and the Authority under this Contract, the City and the Authority shall become the owners of undivided 50% interests in the Project upon completion of the acquisition, by purchase and construction, of the entire Project. (b) After completion of the acquisition, by purchase and construction, of the entire Project, and when the entire Project is ready to be placed in service, the City and the Authority shall jointly inspect the same and if it is found by the City and the Authority to have been acquired, by purchase and construction, as required by this Contract, the City, acting by and through the Mayor of the City, shall notify the Authority in writing that it has accepted the Project on behalf of both the City and the Authority. Upon such acceptance, 50% of the right, title and interest of every nature whatsoever in and to the Project automatically shall vest irrevocably in the City, and 50% thereof shall vest irrevocably in the Authority, without the necessity of the execution of any conveyance by either party, and such transaction shall result in the automatic vesting of title to the Project in the City and Authority in consideration for the mutual agreement of the City and the Authority to perform their respective obligations and make the payments and indemnities required under this Contract. If requested in writing by the Authority, the City, acting by and through the Mayor of the City, will execute and deliver to the Authority an appropriate instrument acknowledging that vesting of title has occurred, but such instrument shall not be necessary to effect the vesting of title, which shall occur as described above. Until the acceptance of the Project by the Authority, all right, title, and interest in and to the Project shall be in the City. The payments required to be made by the City and the Authority under this Agreement shall be made in all events, regardless of whether title to the Project or any part thereof is in the Authority or in the City. The Project shall be operated and maintained as part of the City's Water System. The City shall carry insurance on the Project, naming both the City and the Authority as the insured parties, in the same manner and to the same extent that it carries insurance on other similar facilities constituting part of said System. Section 6. ACQUISITION. The City and the Authority agree to proceed promptly with the acquisition, by purchase and construction, of the Project in accordance with the terms of this Contract and the Engineering Report. The City and Authority hereby covenant that they will make a diligent effort to complete such acquisition as soon as practicable. The City and the Authority do not anticipate any delays in completing the acquisition of the Project, but the City and the Authority shall not be liable to each other for any damages caused by any delays in completion of the Project. Section 7. FORCE MAJEURE. If, by reason of Force Majeure, any party hereto shall be rendered unable wholly or in part to carry out its obligations under this agreement then such party shall give notice and full particulars of such Force Majeure in writing to the other party within a reasonable time after occurrence of the event or cause relied upon, and the obligation of the party giving such notice, so far as it is affected by such Force Majeure, shall be suspended during the continuance of the inability then claimed, except as hereinafter provided, but for no longer period, and any such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term Force Majeure as employed herein, shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, orders of any kind of the S ry authority, Government of the United States or the State of Texas or any civil or milita insurrections, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, or other causes not reasonably within the control of the party claiming such inability. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty, and that the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demands of the opposing party or parties when such settlement is unfavorable to it in the judgment of the parry having the difficulty. Section 8. REGULATORY BODIES. This Contract and the Project shall be subject to all valid rules, regulations, and laws applicable thereto passed or promulgated by the United States of America, the State of Texas, or any governmental body or agency having lawful jurisdiction or any authorized representative or agency of any of them. Section 9. TERM OF CONTRACT. That the term of this Contract shall be for the useful life of the Project. [The balance of this page is intentionally left blank.] P IN WITNESS WHEREOF, the Authority and the City, acting under authority of their respective governing bodies have caused this Contract to be duly executed in several counter- parts, each of which shall constitute an original. ATTEST: Secretary ATTEST: City Secretary TRINITY RIVER AUTHORITY OF TEXAS By General Manager CITY OF GRAPEVINE, TEXAS an 7 Mayor CERTIFICATE FOR A RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF THE TRINITY RIVER AUTHORITY OF TEXAS - CITY OF GRAPEVINE WATER FACILITIES CONTRACT (TARRANT COUNTY WATER PROJECT), AND PROVIDING FOR THE EFFECT OF SAID RESOLUTION AND CONTRACT THE STATE OF TEXAS COUNTIES OF TARRANT, DALLAS AND DENTON CITY OF GRAPEVINE I, the undersigned, City Secretary of the City of Grapevine, Texas, hereby certify as follows: 1. The City Council of the City of Grapevine convened in REGULAR MEETING ON THE 15TH DAY OF NOVEMBER, 2005, in the City Council Chamber in the City Hall, and the roll was called of the duly constituted officers and members of said City Council, to -wit: William D. Tate, Mayor Linda Huff, City Secretary Ted Ware, Mayor Pro Tem Clydene Johnson C. Shane Wilbanks Darlene Freed Sharron Spencer Roy Stewart and all of said persons were present, except the following absentees: , " thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written A RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF THE TRINITY RIVER AUTHORITY OF TEXAS - CITY OF GRAPEVINE WATER FACILITIES CONTRACT (TARRANT COUNTY WATER PROJECT), AND PROVIDING FOR THE EFFECT OF SAID RESOLUTION AND CONTRACT was duly introduced for the consideration of said City Council and duly read. It was then duly moved and seconded that said Resolution be adopted; and, after due discussion, said motion, carrying with it the adoption of said Resolution, prevailed and carried with all members present voting "AYE" except the following: NAY: None. ABSTAIN: None. 2. That a true, full, and correct copy of the aforesaid Resolution adopted at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that said Resolution has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the adoption of said Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; and that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for adoption at said Meeting; and that said Meeting was open to the public, and public notice of the time, place, and purpose of said Meeting was given, all as required by Chapter 551, Texas Government Code. SIGNED AND SEALED the 15th day of November, 2005. City Secretary (CITY SEAL)