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Home My WebLink AboutRes 2016-07-200 Potable Water Pass Through and Pumping agreement CITY OF ANNA, TEXAS RESOLUTION NO.. ( (Potable Water Agreement) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AN AMENDMENT TO THE POTABLE WATER PASS THROUGH & PUMPING AGREEMENT WITH THE CITY OF MCKINNEY. WHEREAS, the Collin Grayson Municipal Alliance ("CGMA") pipeline was constructed in 2007 to serve water to the Cities of Melissa, Van Alstyne, Anna and Howe; and WHEREAS, during the planning phases of the project, the Greater Texoma Utility Authority ("GTUA") reached an agreement with the North Texas Municipal Water District ("NTMWD") to purchase potable water on the north side of McKinney; and WHEREAS, the agreement reached with McKinney expires in September of 2016 which necessitates an extension to the existing pass through agreement; and WHEREAS, the proposed amendment extends the contract to September 30, 2019 or until the CGMA pipeline is connected to the NTMWD system, whichever is sooner; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Approval of Amendment to Interlocal Agreement The City Council hereby approves an amendment to the Second Amendment to Greater Texoma Utility Authority - City of Mckinney Potable Water Pass Through & Pumping Agreement, attached hereto as Exhibit 1, and authorizes, ratifies and approves the Mayor's execution of same. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 26th day of July 2016. �' ATTEST: APPRfED: -914 t14. 0 F � Carrie L. Smith, City Secretai� ,°°•• ° °•M1ji �e Crist, Mayor w •w• •w• B Amends Ordinance 163A-2004 Resolution 0I EXHIBIT 1 SECOND AMENDMENT TO GREATER TEXOMA UTILITY AUTHORITY—CITY OF MCKINNEY POTABLE WATER PASS THROUGH & PUMPING AGREEMENT Effective Date: May 3, 2016 THIS SECOND AMENDMENT,is made and entered into effective the 3rd day of May,2016 to that one certain Original Agreement dated effective the 30th day of November, 2004, which Agreement was subsequently amended August 20, 2006 (collectively the "Amended Agreement") by and between the CITY OF McKEVNEY, TEXAS, a municipal corporation, hereinafter called the "City," and the GREATER TEXOMA UTILITY AUTHORITY, hereinafter called"GTUA,"provides: 1. Section 8 of the Amended Agreement shall be amended to read as follows: RATE FOR WATER DELIVERED BY AGREEMENT IN EXCESS OF MAXIMUM. During the amended term hereof, McKinney and GTUA may agree to the delivery by McKinney of additional volumes of water, in excess of those described in Column 2, Exhibit B, as amended. The rate for any amounts delivered under this Section 8 shall be as depicted on Columns 3 and 4,Exhibit B, as amended. 2. Section 10(e),of the Amended Agreement shall be amended to read as follows: e. Remedies for NTMWD's Failure to Commence Construction of Delivery Point. McKinney shall have the unilateral right to terminate this Amended Agreement if by January 1, 2018 NTMWD has failed to initiate, in McKinney's sole determination, sufficient plans for design, funding, and construction of the NTMWD-GTUA delivery point contemplated by this Amended Agreement. Upon such determination by McKinney and after 180 days written notice to GTUA, this Amended Agreement shall terminate; however, GTUA shall have the continuing obligation to transfer the New Transmission Line under Section 10(a)if such line was has been constructed. 3. Section 12 of the Amended Agreement shall be amended to read as follows: TERM OF AGREEMENT. So long as no default shall exist, McKinney shall exercise its best efforts to complete the design and necessary utility infrastructure to effectuate this Amended Agreement, which if completed shall have a primary term commencing on December 31, 2006 (or sooner if McKinney completes the necessary utility infrastructure) and continue in force and effect until its SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page l of 8 termination on September 30, 2019 (or thirteen [13] years after the commencement date whichever is sooner),unless: McKinney agrees to extend the Amended Agreement on a year-to-year basis if 1) McKinney determines, in its sole discretion, that it has available capacity for any requested extension term after September 30, 2019, 2) the increased volumes requested are not more than 2.5 MGD over the previous year's volumes, and 3) GTUA agrees to a price for water delivery which is not less than 150% more than the previous year's Base Cost; however in no event shall the agreement be extended without the mutual agreement to the then existing timeline for the pending the completion of a new NTMWD transmission facility designed to provide service to GTUA; however in no event shall this Agreement be extended more than three(3) consecutive one-year extensions; OR, NTMWD completes construction of an adequate transmission facility designed to serve GTUA prior to the termination of this Amended Agreement, such as the transmission facility contemplated by NTMWD and the City of McKinney as a component of the planned McKinney Delivery Point # 4. In such event, this Amended Agreement shall be immediately terminated upon the connection of the NTMWD transmission line to the GTUA Point of Delivery and upon final payment for any costs incurred by GTUA to McKinney under this Amended Agreement. This SECOND AMENDMENT to the Potable Water Pass Through and Pumping Agreement shall be effective as of May 3,2016. IN WITNESS WHEREOF, the CITY OF MCKIAWEY, TEXAS has caused this SECOND AMENDMENT to be signed and executed in its behalf by its Interim City Manager, and duly attested by its City Secretary, and the GTUA has signed and executed this Agreement, both in duplicate,as of the dates written below. [signatures on the fallowing pages] SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 2 of 8 GREATER TEXOMA UTILITY AUTHORITY Denison,Texas By: President,Board of Directors Attest: GREATER TEXOMA UTILITY AUTHORITY Denison, Texas By: Secretary,Board of Directors Accepted and agreed to: Tom Muehlenbeck Interim.City Manager City of McKinney,Texas Attest: SANDY HART,TRMC,MMC City Secretary City of McKinney,Texas SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 3 of 8 `��t,rrttrurnrrny� [Signatures below are needed Z Printed Name: ', ' s • r Mayor `•.R .. City of Anna,Texas Attest: ? Sit Printed Name: 0 a e't+2 [..,. 5roAh City Secretary City of Anna, Texas SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 4 of 8 Printed Name: Mayor City of Melissa,Texas Attest: Printed Name: City Secretary City of Melissa,Texas SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 5 of 8 Printed Name: Mayor City of Howe,Texas Attest: Printed Name: City Secretary City of Howe,Texas SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 6 of 8 Printed Name: Mayor City of Van Alstyne,Texas Attest: Printed Name: City Secretary City of Van Alstyne,Texas PREPARED IN THE OFFICES OF: BR0WN&HOFMRISTER, LL.p 740 East Campbell Road,Suite 800 Richardson,Texas 75081 214/747-6100 214/747-6111 Fax SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 7of8 Exhibit B to Amended Agreement [to include the entire text from Amended Agreement including the revised Columns 2-4] SECOND AMENDMENT POTABLE WATER AND PASS THROUGH AGREEMENT Page 8 of 8 k0 GREATER TEXOMA UTILITY AUTHORITY 5100 Airport Drive Denison TX 75020 Ph.(903)786-4433 Ru��C Fax(903)786-8211 gtua@gtua.org .M—EM.0 TO: Collin Grayson Municipal Alliance Members (see distribution list below) FROM; Drew Satterwhite, P.E. General Manager DATE: June 30, 2016 RE: Amendment to the Potable Water Pass Through &Pumping Agreement with the City of McKinney The Collin Grayson Municipal Alliance("CGMA")pipeline was constructed in 2007 to serve water to the Cities of Howe, Van Alstyne, Anna and Howe ("Cities"). During the planning phases of the project,the Greater Texoma Utility Authority("Authority")reached an agreement with the North Texas Municipal Water District ("NTMWD") to purchase potable water on the north side of McKinney. However, the NTMWD did not have a major transmission line in the area which ultimately led to discussions with the City of McKinney of purchasing the water from NTMWD and paying McKinney a fee to pass the water through their system for delivery to the CGMA system. This was a temporary measure as it was understood that NTMWD would be building a transmission line in the vicinity of the CGMA pump station in the coming years. As development slowed down after the economic downturn beginning around 2007, the plans for constructing this pipeline slowed down as well. The NTMWD's transmission line is currently under design and scheduled to be complete in May of 2018. The agreement reached with McKinney expires in September of 2016 which necessitated the pursuit of an extension to our existing pass through agreement that will keep us under contract until we can receive water from NTMWD directly. The proposed amendment has no substantial changes from the existing contract as it was focused on extending the contract to September 30, 2019 or until we have a connection with NTMWD, whichever is sooner. The Authority and the City of McKinney have already approved the amendment and we are now requesting that you place this on your next council agenda for approval. We have provided 6 signature pages for your respective City and after we receive all signature pages, we will compile an original contract for all parties to the agreement. Please let me know if you would like for me to attend the council meeting at which your council plans to consider this agreement. DKS Distribution: Melissa—Mayor Reed Greer, City Manager Jason little Anna—Mayor Mike Crist, City Manager Phillip Sanders Van Alstyne—Mayor Larry Cooper, City Manager Frank Baiter Howe—Mayor Jeff Stanley, City Administrator Joe Shephard Don Paschal—CGMA Facilitator Attachments:Second Amendment to GreaterTexoma Utility Authority—City of McKinney Potable Water Pass Through & Pumping Agreement