HomeMy WebLinkAboutRes 2020-12-842 Agreement with Anna and City of HoweCITY OF ANNA, TEXAS
RESOLUTION NO. i.0a0 - Q� '6LA6L
A RESOLUTION OF THE CITY OF ANNA, TEXAS REACTED TO THE AN INTER -LOCAL
AGREEMENT BETWEEN THE CITIES OF ANNA AND HOWE UNDER WHICH THE CITY OF
HOWE AGREES TO TRANSFER A PORTION OF ITS CONTRACTUAL MINIMUM TAKE OR
PAY WATER OBLIGATIONS WITH THE GREATER TEXOMA UTILITY AUTHORITY (GTUA)
TO THE CITY OF ANNA IN EXCHANGE FOR AN AGREED PAYMENT FROM ANNA AND
AUTHORIZING THE CITY MANAGER TO SIGN THE INTER -LOCAL AGREEMENT
WHEREAS, the City of Howe, Texas has previously authorized and executed agreements with
the Greater Texoma Utility Authority for surface water supply system to be planned, funded,
constructed, and operated by GTUA, including the payment of monthly minimum take or pay
water purchase provisions necessary to fund said water transmissi won system and purchase of
potable water; and
WHEREAS, the City of Howe has chosen to not accept delivery of a portion of the agreed
minimum take or pay water through the end of the 2020 water year (ended July 31, 2020) and
desires to transfer a portion of its obligated minimum take or pay for said 2020 water year to
the City of Anna for consideration detailed in an inter -local agreement; and;
WHEREAS, the City of Anna has indicated interest in purchasing a portion of the City of Howe's
minimum take or pay for the water year ended July 31, 2020 as explained in a report
memorandum to the City Managers,/Administrators of the Cities of Melissa, Anna, Van Alstyne
and Howe, dated October 5, 2020 by Donald E. Paschal, Jr., consultant to said cities, which
report memorandum is attached to said inter -local agreement as "Exhibit A"; and
WHEREAS, it is acknowledged that a companion or similar agreement is contemplated
between CGMA-GTUA City of Anna and the selling CGMA-GTUA Cities of Melissa, Howe and
Van Alstyne.; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA,
TEXAS THAT:
Section 1. Recitals Incorporated.
The City Council of the City of Anna authorizes the execution by the City Manager of the
attached Inter -local Agreement with the City of Howe for the terms detailed therein providing
for the following:
A. Receiving a portion of Howe's GTUA required minimum take or pay from Howe as
provided for in the attached Inter -local Agreement.
B. Agreeing to pay for the agreed portion of the 2020 water year minimum take or pay to
the City of Howe.
Section 2. Verification,
RES. PAGE 1 OF 2
It is specifically provided that the participating cities shall have the right to verify quantities of
water with the GTUA prior to final consummation of the attached agreement.
Section 3. Approval of Resolution.
This Resolution shall be effective immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 8th day of
December, 2020,
ATTESTED:
Carrie L. Land, City Secretary
aW Pike, Mayor
RES. PAGE 2 OF 2
CITY OF HOWE
116 East Haning • Post Office Box 518
Howe, Texas 75459
903-532-5571
November 20, 2020
City of Anna
P 0 BOX 776
Anna, TX 75459
The signed Resolution 2020-0003 and Interlocal Agreement for Talce oi- Pay Water is
enclosed. Please return the executed copies, pages 5 & 6 to the City of Howe. The invoice is
attached.
Sincerely,
9 1 &At
joy Stevens
City Secretary
City of Howe
P. 0. Box 518
Howe, Texas, 75459
903-532-5771
�:ity ofAi>>ia
110 Box 776
I mia TX 75409
Qty Description
Unit Price
Date: November 20, 2020
INVOICE # 201117
ILA/
Resolution
Take or Pay Water
$1765 per
. thousand
$481295.25
$481295.25
Total
Thank you!
Maply
RESOLUTION N0.2020-0003
A RESOLUTION RELATED TO AN INTER -LOCAL AGREEEMNT
BETWEEN THE CITIES OF HOWE AND ANNA UNDER WHICH THE CITY
OF HOWE AGREES TO TRANSFER A PORTION OF ITS CONTRACTUAL
MINIMUM TAKE OR PAY WATER OBLIGATION WITH THE GREATER
TEXOMA UTILITY AUTHORITY TO THE CITY OF ANNA IN EXCHANGE
FOR AN AGREED PAYMENT FROM ANNA AND AUHORIZING THE
EXECUTION AND ADMINISTRATION OF SAID INTER -LOCAL
AGREEMENT
WHEREAS, the City of HOWE has previously authorized and executed agreements with
the Greater Texoma Utility Authority for a surface water supply system to be planned, funded,
constructed, and operated by GTUA, including the payment of monthly minimum take or pay
water purchase provisions necessary to fund said water transmission system and purchase of
potable water; and
WHEREAS, the City of HOWE has chosen to not accept delivery of a portion of the
agreed minimum take or pay water through the end of the 2020 water year (ended July 31, 2020)
and desires to transfer a portion of its obligated minimum take or pay for said 2020 water year to
the City of Anna for consideration detailed in an inter -local agreement; and
WHEREAS, the City of Anna has indicated interest in purchasing a portion of the City of
HOWE's minimum take or pay for the water year ended July 31, 2020 as explained in a report
memorandum to the City Managers / Administrators of the Cities of Melissa, Anna, Van Alstyne
and Howe dated October 5, 2020 by Donald E. Paschal, Jr., consultant to said cities, which
report memorandum is attached to said Inter -local agreement as "Exhibit A"; and
WHEREAS, it is acknowledged that a companion or similar agreement is contemplated
between the Purchasing CGMA-GTUA City of Anna and the Selling CGMA-GTUA Cities of
Melissa, Howe and Van Alstyne.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of HOWE
that:
SECTION 1: The City Council of the City of HOWE authorizes the execution by the City
Administrator or Mayor of the attached Inter -local agreement with the City of Anna for the terms
detailed therein providing for the following:
A. Transferring a portion of HOWE's GTUA required minimum take or pay to Anna as
provided for in the attached Inter -local Agreement.
B. Invoicing Anna for the agreed portion of the 2020 water year minimum take or pay.
C. Accepting Payment from Anna as provided for in the attached Inter -local agreement.
SECTION 2: It is specifically provided that the participating cities shall have the right to verify
quantities of water with the GTUA prior to final consummation of the attached agreement.
Upon motion of Pdeq, seconded by H
the above resolutionwas approved by the City Council of the City of at its
meeting held this day of ( VOPMAP 12020, by the following vote:
.7 AYE d NAY
City of HOWE
ABSTAIN
of HOWE
INTERLOCAL AGREEMENT BY AND BETWEEN
THE CITY OF ANNA, TEXAS AND THE CITY OF HOWE, TEXAS
FOR PURCHASE AND CORRESPONDING SALE OF A PORTION OF THE
SELLING CITY'S MINIMUM TAKE OR PAY OBLIGATION UNDER THE GTUA-
CITIES OF MELISSA, ANNA, VAN ALSTYNE, AND HOWE POTABLE WATER
SUPPLY CONTRACT
THIS AGREEMENT is made and entered by and between the CITY OF ANNA,
TEXAS, a Texas Home -Rule Municipal Corporation, hereinafter referred to as "Anna", and
CITY OF HOWE, TEXAS, a Texas General Law City hereinafter referred to as "Howe",
collectively referred to herein as the "Cities", as follows:
WITNESSETH:
WHEREAS, both Anna and Howe are political subdivisions within the meaning of
Interlocal Cooperation Act, Texas Government Code, Chapter 791, as amended (the "Act"); and
WHEREAS, the Act provides authority for entities such as Anna and Howe to enter into
inter -local agreements with each other to perform governmental functions and services as set
forth in the Act; and
WHEREAS, each ofthe Cities has previously entexed into an agreement with the Greater
Texoma Utility Authority, hereinafter referred to as "GTUA" fox the planning, construction,
funding, and operations of a surface water supply system to serve the collective Contract Cities
of Melissa, Anna, Van Alstyne, and Howe, which agreement specifies the obligations of each
participant; and
WHEREAS, each of said Cities has entered an Amended and Restated Contract for
Water Supply providing that from the tune water has been delivered to each Participating City
for one month and forward, on a monthly basis, each Participating City shall be charged for
water at the greater of its minimum take -or -pay amount (MT P) under the Potable Water Supply
Contract made and entered between such Participating City and GTUA; and
WHEREAS, for the water year 2019-2020 ended July 31, 2020 as provided for in said
water- purchase agreements, including the North Texas Municipal Water District, hereinafter
referred to as "NTMWD" standard water purchase agreement, only the City of Anna received
delivery of water which equaled or exceeded the individual City required MT-P; and
WHEREAS, the Contract Cities of Melissa, Anna, Van Alstyne, and Howe have a multi-
year precedent of the referenced Minimum Take or Pay Buy -Sell concept as referenced herein
and as is further referenced and detailed in "Exhibit A" attached hereto for reference in
establishing the buy -sell rate; and
WHEREAS, the Cities Van Alstyne, Howe, and Melissa are desirous of selling to Anna
a portion of their unused MT-P and Anna is willing to purchase said unused portion of the
mum MT-P as defined in this agreement and detailed in "Exhibit A" thus allowi mining Van
Alstyne, Howe, and Melissa to recover a portion of the purchased but unused MT-P for the stated
water year% and
ILA far MT-P Transfer Agreement for 2020 Water Year -Page 1
WHEREAS, the background of the above noted agreements, volumes, rates, and
circumstances are further detailed in the October 5, 2019 memorandum attached hereto for
reference and labeled "Exhibit A".
NOW, THEREFORE, ANNA and HOWE, for and in consideration of the recitals set
forth above and terns and conditions below, agree as follows:
I.
TERM
This Agreement shall apply to the NTMWD water year ended July 31, 2020 and shall be
executed and consummated in full between November 1, 2020 and January 31, 2021 and shall
not apply to subsequent water volumes or water years unless said Cities so authorize by
subsequent agreement.
!I.
AGREEMENT
The Cities agree fihat HOWE shall transfer 27,363,000 gallons (27,363.0} one thousand
gallon increments) of MT-P water to ANNA for the water year ended July 31, 2020 and ANNA
shall remit to HOWE a payment for said transfer of MT-P at the rate of $1.765 per thousand
gallons totaling in the sum of $48,295.25 as payment in full for said portion of HOWE's MT P.
Following execution of this agreement, HOWE shall submit to ANNA an invoice for the transfer
A the described MT-P for the above stated sum and ANNA shall remit payment for said transfer
within twenty (20) days of receipt of said invoice, it being the intent that this transaction shall be
completed on or before January 31, 2021, although it is specifically provided that completion of
said invoicing and payment after said date shall not invalidate any portion of this agreement, it
being the intent however to complete said transaction by the stipulated date.
III.
RESPONSIBILITIES OF THE PARTIES
1. The respective City Councils of ANNA and HOWE shall each approve an interlocal
agreement authorizing the sale /purchase of MT-P as described herein and further detailed in the
attached Exhibit A.
2. HOWE, following approval of the interlocal agreement by each party thereto shall submit
to ANNA an invoice for the referenced gallons of MT-P water detailed above in Section II and in
the stipulated amount.
3. ANNA shall remit to HOWE the above stated payment for the transferred MT-P within
twenty (20} working days of the receipt of referenced invoice.
4. Any party hereto wishing to verify the metered quantities of water or the portion of the
minimum take or pay to which this agreement refers shall be entitled to verification subject to
said verification being completed prior to the submission of the invoice referenced in item III — 2
above. Should GTUA verification indicate a different volume of minimum take or pay than
referenced herein, the parties hereto shall modify said quantity and the resultant payment for said
quantity of minimum take or pay prior to the invoicing and payment phase (item III — 2 & 3
above).
ILA for MT-P Transfer Agreement for 2020 Water Year -Page 2
Ave
TERMINATION
C. The Cities recognize that this Agreement shall commence upon the effective date herein
and continue in full force and effect until termination in accordance with its provisions. Anna
and Howe herein recognize that the continuation of any contract after the termination of this
agreement or impacting any future water year shall be subject to City Council approval for each
City, respectively. Following termination of this agreement, or should either City fail to execute
this agreement, there shall be no further commitment hereunder.
v.
RELEASE AND HOLD HARMLESS
Anna and Howe, to the extent authorized under the constitution and laws of the State of
Texas, agree to be responsible for their own acts of negligence which may arise in connection
with any and all claims for damages, cost, and expenses to person or persons and property that
may arise out of or be occasioned by this Agreement. In the event of joint and concurrent
negligence, Anna and Howe agree that responsibility shall be apportioned comparatively. This
obligation shall be construed for the benefit of the parties hereto, and not for the benefit of any
third parties, nor to create liability for the benefit of any thud parties, nor to deprive the parties
hereto of any defenses each may have as against third parties under the laws and court decisions
of the State of Texas. '
VI.
AUTHORITY TO SIGN
The undersigned officer and/or agents of the parties hereto are the properly authorized
officials and have the necessary authority to execute this Agreement on behalf of the parties
hereto. The Cities have executed this Agreement pursuant to the authority granted by its
governing body.
IX.
SEVERABILITY
The provisions of this Agreement are severable. If any paragraph, section, subdivision,
sentence, clause, or phrase of this Agreement is for any reason held to be contrary to the law or
contrary to any rule or regulation having the force and effect of the law, such decisions shall not
affect the remaining portions of the Agreement. However, upon the occurrence of such event,
either party may terminate this Agreement by giving the other party thirty (30) days written
notice.
X.
VEN�CJE
This Agreement and any of its terms or provisions, as well as the rights and duties of the
parties hereto, shall be governed by the laws of the State of Texas. The parties agree that this
Agreement shall be enforceable in Collin County, Texas, and, if legal action is necessary,
exclusive venue shall lie in Collin County, Texas.
ILA for MT-P Transfer Agreement for2020 Water Year -Page 3
XI.
INTERPRETATION OF AGREEMENT
It is acknowledged that this is a negotiated document. Should any part of this Agreement
be in dispute, the Cities agree that the Agreement shall not be construed more favorably for
either City.
XII.
REMEDIES
No right or remedy granted herein or reserved to the parties is exclusive of any right or
remedy granted by law or equity; but each shall be cumulative of every right or remedy given
hereunder. No covenant or condition of this Agreement may be waived without the express
written consent of the parties. It is further agreed that one (1) or more instances of forbearance
by either party in the exercise of its respective rights under this Agreement shall in no way
constitute a waiver thereof.
XIII.
SUCCESSORS AND ASSIGNS
The parties each bind themselves, their respective successors, executors, administratozs
and assigns to the other party to this contract. Neither patty will assign, sublet, subcontract or
transfer any interest in this Agreement without the prior written consent of the other party. No
assignment, delegation of duties or subcontract under this Agreement will be effective without
the written consent of both parties.
ILA for MT-P Transfer Agreement for 2020 Water Year -Page 4
City of Howe
P. 0. Box 518
Howe, Texas, 75459
903-532-5771
P 0 Box 776
imia TX 75409
Qty Description
Unit Price
I NJ
Date: November 20, 2020
INVOICE # 201117
ILA/
Resolution
—
Take or Pay Water
. per $1765
thousand
$48,295.25
Total
$48,295.25
Thank you!
IN WITNESS WHEREON, the parties have executed this Agreement by signing below,
Date,
APPROVED AS TO FORM:
�N C
ATTORNEY
Date: P#I ier 17 aoM
CITY CA All I1A,
Jim
City
CITY ON HOWE, TEXAS
By:
City Administrator
APPROVED AS TO FORM
CITY ATTORNEY
tp'
ILA for MT-P Ti�lnsfer Agreement for 2020 Water Year- Page 5
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF COLLIN §
;;to4C) �
This instrument was acknowledged before me on the day of
2-01, by Jill" `firE' 0of the City of Anna, Texas, a Texas
Home -Rule Municipal Corporation, on behalf of said municipality.
CABBIE L. SMITH
MY NOIWY ID # 1141M
Expires FeWary 4.20
STATE OF TEXAS §
COUNTY OF GRAYSON §
Notary Public, State of Texas
This instrument was acknowledged before me
?4'Y, by UnC O ,
Texas General Law ity, on behalf of said municipatiti,
Exhibit A
on the / 7�1 day of /l/OGE' r ,
of the City of Howe, Texas, a
Attach copy of October 5, 2020 memorandum from Donald E. Paschal, Jr. to CGMA Mayors
and City Managers regarding the subject: Sale of GTUA-CGMA Minimum Take or Pay to
Participant City
ILA for MT-P Transfer Agreement for2020 Water Year -Page 6