Item 4CItem 4C
CITY OF
SOUTHLAKE
MEMORANDUM
(February 3, 2015)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Approve amendment to the wholesale water purchase contract
with the City of Fort Worth in an amount not to exceed
$4,000,000
Action
Requested: Approve amendment to the wholesale water purchase contract with
the City of Fort Worth in an amount not to exceed $4,000,000.
Background
Information: Southlake's water system master plan adopted as part of the
Southlake 2030 plan projects the City's ultimate water demand will
be just over thirty-four million gallons per day (34.2 MGD). In order
to meet this demand capacity, staff programmed funding in the
2014 and 2015 utility capital improvement program for participation
in a large diameter pipeline project with the City of Fort Worth to
increase capacity at Southlake's Caylor meter station. Three other
wholesale customers (Keller, Trophy Club, and Westlake) will also
share capacity and a proportional construction cost on this project.
Because the final phase of the pipeline construction project is
expected to be complete late Summer 2015, the proposed
amendment to the wholesale water contract is intended to finalize
the percent participation for each city. Also, because the last phase
of the project has not been bid and right-of-way acquisition is not
complete, the cost for each participant in the table below is an
estimate based on capacity and does not include all easements or
possible change orders.
Percent Share of
Requested Percent of Total Cost
Wholesale Capacity Pipeline Capacity ($15,959,000
Customer (M GD) (60 M GD) EST.)
SDuthlake 21.7% $ 3,457,783
5.8% $ 930,942
4.0% $ 638,360
14.2% $ 2,260,000
13
Keller
3.5
Trophy Club
2.4
Westlake
8.5
Southlake's ultimate water demand of 34.2 million gallons per day
will be met with the completion of this project.
Financial
Considerations: Funding for this project is provided in the 2014 and 2015 utility fund
capital improvement program. The current balance in the project
account is $2,500,000 and this Summer's bond sale will bring the
project fund to the full $4,000,000 available for the project.
Strategic Link: Providing an adequate supply of water to meet the needs of the
community links to the city's strategy map relative to the focus area
of infrastructure. The specific corporate objective that is met by this
project is investing to provide and maintain high quality public
assets.
Citizen Input/
Board Review: N/A
Legal Review: Yes
Alternatives: The City Council may approve or deny this amendment.
Supporting
Documents: Amendment to the 2010 Wholesale Water Contract
2010 Wholesale Water Contract
Staff
Recommendation: Approve amendment to the wholesale water purchase contract with
the City of Fort Worth in an amount not to exceed $4,000,000.
Staff Contact: Robert H. Price, P.E., Public Works Director
Chuck Kendrick, Deputy Director of Public Works - Operations
THE STATE OF TEXAS
KNOW ALL BY THESE PRESENTS
COUNTY OFTARRANT
AM ENDM ENT TO CITY SECRETARY CONTRACT NO. 41110 FOR WATER
SERVI CE BETWEEN TH E CI TY OF FORT WORTH AND TH E CI TY OF
SOUTH LAKE FOR TH E CONSTRUCTI ON OF A NORTHSI DE 11 48-1 NCH
WATER MAIN AND ALLOCATED CAPACITY
This First Amendment to City Secretary Contract No. 41110 ("AMENDMENT")
is made and entered into by and between the City of Southlake, acting herein by and
through its Mayor, John Terrell, hereinafter referred to as CUSTOMER and the City of
Fort Worth, acting herein by and through its Assistant City Manager, Fernando Costa,
hereinafter referred to as FORT WORTH, all of Tarrant County, State of Texas,
(collectively the "PARTIES").
WHEREAS, FORT WORTH and CUSTOMER have entered in an Agreement for Water
Service known as Fort Worth City Secretary Contract No. 41110 ("CONTRACT"); and
W H EREAS, the PARTIES recognize that there is a need for additional water capacity in
the northeast sector of Fort Worth and in Southlake; and
WHEREAS, to address this need FORT WORTH is constructing a 48-inch water main
from Heritage Trace Parkway to Alta Vista and Timberland Boulevard, approximately
11,713 linear feet as shown in EX I BI T F.2a; and
W H EREAS, CUSTOMER has requested capacity in the proposed water main which will
increase its total projected water demand; and
W H EREAS, Section 3.3 of the CONTRACT states that CUSTOMER shall pay for each
new or enlarged or additional connection to the FORT WORTH system, including the
cost of the wholesale meter and CUSTOMER's proportionate share of the improvements
required for that service; and
WHEREAS, CUSTOMER recognizes that the City of Keller, Trophy Club Municipal
Utility District No. 1 and the Town of Westlake have also requested capacity in the
proposed Northside II 48-inch water main; and
WHEREAS, the PARTIES agree that CUSTOMER's cost and participation for the
Northside II 48-inch water main shall be as stated in this AMENDMENT.
NOW THEREFORE, THE PARTI ES AGREE TO AM END THE CONTRACT AS
FOLLOWS:
The CONTRACT shall be amended to include the following as EX H I BI T F.2:
EXH I BIT F.2
ALLOCATION OF COST AND CAPACITY FORTH E
NORTH SIDE 11 48-1 NCH WATER M AI N
1.) FORT WORTH shall be responsible for the preparation of plans and specifications
(together with any modifications required during construction) and contract
documents for the construction of the Northside II 48-inch water main, shown on
Exhibit F.2a.
2.) CUSTOMER shall be entitled to an additional 13 MGD capacity in the Northside
II 48-inch water main, increasing its existing capacity of 20 MGD to a total of 33
MGD at the Caylor Tank meter location shown on Exhibit A to the CONTRACT.
The additional 13 MGD equals 21.7 percent of the proposed Northside II 48-inch
water main's 60 MGD capacity. The estimated total engineering and construction
cost of the Northside II 48-inch water main is $15,959,000. Customer agrees to
pay FORT WORTH 21.7 percent that equals $3,457,783 as its proportionate share
of the cost.
3.) Because the completion of the Northside II 48-inch water main is not expected
before the peak summer demand period of 2015, FORT WORTH shall remove the
existing orifice plate (which restricts the flow to less than 20 MGD) prior to May
1, 2015. CUSTOMER agrees to continue to limit the flow rate at the Caylor Tank
meter to 20 MGD or less until the proposed Northside II 48-inch water main is
placed in service. Once the Northside II main is placed in service, CUSTOMER
will be allowed to utilize a total of 33 MGD through the Caylor Tank meter.
4.) The cost of easements, appraisal fees, and right-of-way acquisitions shall be shared
by FORT WORTH, CUSTOMER, Keller, Trophy Club Municipal Utility District
No.l and Westlake proportionately.
5.) The estimated engineering and construction costs stated herein are for planning
purposes. Actual Project cost may differ and shall be adjusted to reflect the final
cost of engineering, construction, easements, appraisals, and right-of-way
acquisition and financing. CUSTOMER will be responsible for 21.7 percent of the
Actual Project cost.
6.) Nothing contained herein shall be construed to prevent FORT WORTH from
including the costs it incurs hereunder as system costs as that term is defined in the
CONTRACT.
7.) Upon completion of the Northside II 48-inch water main, FORT WORTH will
submit an invoice to CUSTOMER detailing CUSTOMER's percentage of the
costs. CUSTOMER shall pay FORT WORTH such costs within 30 days from the
date the invoice is received. A payment is late if not paid within 10 days from the
Amendment:F.2 Northside II 48-inch Water main Page 2
(01/05/15)
due date. Late payments shall accrue interest at the rate of one and one-half
percent (1-1/2%) per month until paid.
8.) If CUSTOMER exceeds the 33 MGD capacity at the Caylor Tank wholesale
meter, then the CUSTOMER will be required to provide additional cost
participation toward the Northside II 48-inch water main. The additional cost
participation will be required prior to CUSTOMER increasing the rate of flow at
the Caylor Tank meter.
This AMENDMENT shall become effective upon full and complete execution of each
party below:
EXECUTED this day of )2015.
CITY OF FORT WORTH CITY OF SOUTH LAKE
FERNANDO COSTA
ASSISTANT CITY MANAGER
DATE:
APPROVED AS TO FORM AND
LEGALITY
CHRISTA LOPEZ-REYNOLDS
SR. ASSISTANT CITY ATTORNEY
ATTEST
MARY KAYSER
CITY SECRETARY
JOHN TERRELL
MAYOR
DATE:
APPROVED AS TO FORM AND
LEGALITY
BY:
ATTORNEY
ATTEST
Lori Payne
CITY SECRETARY
Amendment:F.2 Northside II 48-inch Water main Page 3
(01/05/15)
EX H BI T 66F.2a"
48-inch water main from Heritage Trace Parkway to Alta Vista and Timberland Boulevard
Amendment:F.2 Northside II 48-inch Water main Page 4
(01/05/15)