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HomeMy WebLinkAboutResolution No. 2012-015 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2012-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, TERMINATING THE STEWART CREEK WEST REGIONAL WASTEWATER SYSTEM CONTRACT, DATED MAY 28, 1998, BY AND BETWEEN THE CITY OF THE COLONY, TEXAS, NORTH TEXAS MUNICIPAL WATER DISTRICT, AND THE CITY OF FRISCO, TEXAS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND SEND A LETTER TO THE NORTH TEXAS MUNICIPAL WATER DISTRICT AND THE CITY OF FRISCO, TEXAS, CONCERNING THE TERMINATION OF SAID CONTRACT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on May 28, 1998, the City of The Colony, Texas (hereinafter referred to as the "City"), entered into the "Stewart Creek West Regional Wastewater System Contract" with the City of Frisco, Texas (hereinafter referred to as "Frisco"), and the North Texas Municipal Water District (hereinafter referred to as "NTMWD"), a copy of said contract is attached hereto as Exhibit A; and WHEREAS, the City subsequently sued NTMWD and Frisco for various causes of action arising out the Stewart Creek West Regional Wastewater System Contract, involving the expansion of the North Texas Regional Wastewater System luiown as Stewart Creek West; and WHEREAS, on February 25, 2010, the parties entered into a Settlement Agreement concerning the Stewart Creek West Regional Wastewater System Contract, a copy of which is attached hereto as Exhibit B; and WHEREAS, on February 16, 2010, and pursuant to the Settlement Agreement, the City and Frisco entered into the "Stewart Creels West Regional Wastewater System Relinquishment Agreement," a copy of which is attached hereto as Exhibit I of Exhibit B of this Resolution, where Frisco agreed to make certain payments to NTMWD on behalf of the City in return for the City's agreement to relinquish its right to wastewater service under the Stewart Creek West Regional Wastewater System Contract; and WHEREAS, NTMWD and Frisco now desire to improve and expand the wastewater system covered by the Stewart Creek West Regional Wastewater System Contract, whereby Frisco is willing to pay certain bond service component for bonds issued to provide funding for such improvements and expansion; and WHEREAS, on October 27, 2011, NTMWD and Frisco entered into an amendment of the Stewart Creek West Regional Wastewater System Contract with the execution of the "Stewart Creek West Regional Wastewater System Amendatory Contract," a copy of which is attached hereto as Exhibit C; and WHEREAS, in order to provide that the City shall have no liability for bonds issued to provide funds for such improvement and expansion to the wastewater system, bonds issued to refinance the outstanding bonds, or bonds issued in the future for either of such purposes, it was necessary for NTMWD and Frisco to enter into the Stewart Creek West Regional Wastewater System Amendatory Contract, a copy of which is attached hereto as Exhibit C; and WHEREAS, the original Stewart Creek West Regional Wastewater System Contract provided that the Stewart Creek West Regional Wastewater System Contract remained in force until all bonds, including refunding bonds were paid in full, and remains in force thereafter throughout the useful life of the wastewater system; and WHEREAS, NTMWD and Frisco terminated the Stewart Creek West Regional Wastewater System Contract by entering into the Stewart Creek West Regional Wastewater System Amendatory Contract, a copy of which is attached hereto as Exhibit C; and WHEREAS, Article 1.01(n) of the Stewart Creek West Regional Wastewater System Amendatory Contract provides that the "Original Contract Termination Date" means the date of termination of the original Stewart Creek West Regional Wastewater System Contract as specified in writing to NTMWD by the City, at any time after the effective date of the Stewart Creek West Regional Wastewater System Amendatory Contract; and WHEREAS, the City Council of The City of The Colony, Texas, finds and determines it is in the best interest of the City of The Colony, Texas, to terminate the original Stewart Creek West Regional Wastewater System Contract, attached hereto as Exhibit A, in order for the City to have no liability for bonds issued pursuant to the Stewart Creek West Regional Wastewater System Amendatory Contract, attached hereto as Exhibit C. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The foregoing recitals are hereby found to be true and correct legislative findings of the City of The Colony, Texas, and are fully incorporated into the body of this Resolution. SECTION 2. The City Council of the City of The Colony, Texas, does hereby terminate the Stewart Creek West Regional Wastewater System Contract, attached hereto as Exhibit A, and authorizes the City Manager to execute and submit to NTMWD and Frisco the letter, attached hereto as Exhibit D, terminating said Stewart Creek West Regional Wastewater System Contract, consistent with the Stewart Creek West Regional Wastewater System Amendatory Contract by and between NTMWD and Frisco. SECTION 3. The Settlement Agreement, dated February 25, 2010, by and between the City of The Colony, Texas, the City of Frisco, Texas, and the North Texas Municipal Water District, is not affected by the termination of the Stewart Creek West Regional Wastewater System Contract, and remains in full force and effect. SECTION 4. If any section, article paragraph, sentence, clause, phrase or word in this Resolution, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Resolution; and the City Council hereby declares it would have passed such remaining portions of this Resolution despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. This Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPRO D BY THE.. CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS day of 2012. J McCourr , Mayor ATTEST•~ J Fl Christie Wilson, City Secretary ~ APPROVED AS TO FORM:? C, Jeff Moore, City Attorney ExhibitA Stewart Creek West Regional Wastewater System Contract Dated May 28, 1998 I FOR EXHIBITS/ATTACHMENTS: SEE ORIGINAL DOCUMENT IN CITY SECRETARY'S OFFICE