Loading...
HomeMy WebLinkAboutRES 00-316 RESOLUTION NO. ()Q- 1(e THAT the City Manager be and he is hereby authorized to execute an agreement with the LNVA for the City's participation in the construction and operation/maintenance of the Neches River Salt Water Barrier. The agreement is substantially in the form as Exhibit "A" attached hereto and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1112 M day of 2000. - Mayor - G AMRESOLUTIIAGENDAI.RES WHEREAS, the Chief of Engineers has recommended the construction of a salt water barrier in the Neches River at or near Beaumont, Texas for the purpose of preventing the upstream movement of salt water or other pollutants into the portion of the river from which the City of Beaumont and the Lower Neches Valley Authority withdraw water for distribution by Lower Neches Valley Authority for municipal, industrial and agricultural use and for treatment and distribution as potable drinking water by the City of Beaumont, and WHEREAS, following the completion of studies by the United States Army Corps of Engineers and the completion by that agency of the necessary plans and specifications the Congress will be requested to appropriate the funds for the construction of such salt water barrier; and WHEREAS, some share of the construction, operational and maintenance costs of said project will be required to be contributed by local interests; and WHEREAS, the share of the total construction costs which will be required to be contributed by local interests will be in the amount of$14,200,000 and that local interests will be required to accept responsibility for the payment of a portion of the annual costs of operating and maintaining the project when completed, which portion has been estimated to be in the amount of$450,000 per annum at current prices; and WHEREAS, both Lower Neches Valley Authority and the City of Beaumont, Texas will benefit from the construction of said salt water barrier and are willing to accept responsibility for the contribution of the portions of capital costs and operation and maintenance expenses above mentioned; and WHEREAS, in order to assure the earliest possible action in providing for the construction of said salt water barrier it is necessary that assurance be given to the Secretary of the Army that local interests will contribute toward the first cost of the work said sum of$14,200,000 and upon completion of the project will contribute toward the annual operation and maintenance expense of said project a sum equal to 25% of such expense, such portion of such expense being presently estimated to be $112,000 per annum, which assurances Lower Neches Valley Authority is prepared to give for itself and on behalf of the City of Beaumont subject to the agreements by the City of Beaumont hereinafter contained and set out; and WHEREAS, Lower Neches Valley Authority, as prime sponsor, will be required to furnish certain assurances satisfactory to the Secretary of the Army, that it will, on behalf of itself and the City of Beaumont, provide certain lands, easements, etc., and accomplish certain alterations, relocations et cetera as is more specifically hereinafter set out; and WHEREAS, Lower Neches Valley Authority is also prepared to give such additional assurances subject to the assurances hereinafter given and the obligations and undertakings hereinafter assumed by the City of Beaumont; and WHEREAS, it is to the benefit of the City of Beaumont, Texas that such assurances be given by Lower Neches Valley Authority and by the City of Beaumont and that said project be constructed at the earliest possible time, now therefore KNOW ALL MEN BY THESE PRESENTS, that this contract and agreement made and entered into on this day of , A..D. 2000 by and between Lower Neches Valley Authority, an agency of the State of Texas with its office situated in Beaumont, Jefferson Country, Texas (hereinafter called Authority) acting herein by and through its President and Secretary who are hereunto duly authorized to act by resolution adopted by the Board of Directors of said Authority, and the City of Beaumont, Texas, a political subdivision of the State of Texas, acting herein by and through its Mayor and City Secretary who are hereunto duly authorized to act by ordinance adopted by the City Council of said City of Beaumont (hereinafter called the City) WITNESSETH For and in consideration of the benefits flowing to the City herein above mentioned the City has contracted, agreed and bound itself and does hereby contract, agree and bind itself to pay to Lower Neches Valley Authority, as its share of the construction costs of said salt water barrier project, the sum of$1,800,000 in cash within one year after the execution date of this agreement. Additionally the City has contracted, agreed and bound itself and does hereby contract, agree and bind itself to pay to Authority each year after said project is complete and commence operation, in cash, one half the amount paid by Authority for operation and maintenance expense, which amount paid by City to Authority will not exceed (but will equal) 12 V2% of the total of the operation and maintenance expense, presently estimated at $56,250 per annum, such payment by City to be applied toward the share of the cost of operation and maintenance required to be contributed by Authority, said payments to Authority to be made each year within ten (10) days following the date upon which Authority is required to make such contributions to the cost of operation and maintenance. In consideration of the City's agreements set out above Authority has contracted and agreed with City that Authority will, at such time as is proper, give to the Secretary of the Army and the United States Congress the Authority's assurances as local sponsor that the Authority will contribute toward the first cost of the work the sum of $14,200,000 to be paid in a lump sum prior to commencement of construction, or in installments prior to commencement of pertinent work items, in accordance with construction schedules as required by the Chief of Engineers and that Authority will pay each year up to twenty-five (25%) percent of the operation and maintenance expense in connection with the operation of said project (one-half of which contribution to operation and maintenance expense, will be repaid to Authority by City as above provided.) For the same consideration Authority has further contracted and agreed with City that Authority will, at such time as is proper, give to the Secretary of the Army and the United States Congress the Authority's assurances as local sponsor that the Authority will provide without cost to the United States all lands, easements and rights-of-way and will further accomplish without cost to the United States all alterations and relocations of structures, pipelines, power lines, cables, utilities facilities, sewers and highway facilities made necessary by the construction of the project and Authority will further give its assurance that it will obtain all necessary water rights, resolve any conflicts as to water rights necessary for the effective operation of the project and will hold and save the United States free from damages that may result from construction, maintenance and operations of the project. All of the foregoing is based upon and subject to the performance by City of the obligations herein above contained and with the understanding that City will cooperate with and assist Authority in the obtaining of such water rights, the resolution of any such conflicts and the protection of the United States from damages that may result from construction, maintenance and operation of the project. City will hold and save the United States and Authority free from damages to City or property within City from damages that may result from the construction, maintenance and operation of the project. This agreement is entered into pursuant to and under the authority of Article 4413 (32C) of Vernon's Civil Statutes of the State of Texas and the other statutory and constitutional authority vested in the City and Lower Neches Valley Authority' EXECUTED in duplicate originals on this the day of A.D. 2000. ATTEST: CITY OF BEAUMONT, TEXAS By: City Secretary City Manager ATTEST: LOWER NECHES VALLEY AUTHORITY President 08/10/2000