03/11/1992-CC-Agenda Packet-Work SessionCITY COUNCIL WORT{SHOP AGENDA
WEDNESDAY, MARCH 11, 1992
CITY COUNCIL CHAMBER
7:00 P.M.
1. Call Meeting to Order
2. Consider and Possible Action Regarding Water Projects
3. Anv Other Such Matters
4. Adjournment
Rosalie Garcia
City Secretary
ELEMENTS OF PROPOSED AGREEMENT TO
CONSTRUCT A PIPELINE FROM DENTON
TO SERVE THE CITY OF SANGER
March 11, 1992
• UTRWD will provide for the proposed line to Sanger in the
Regional Water System and include it in the package to TWDB
for 50o cost participation.
• Capacity requirements for Sanger = �..5 mgd peak day (year
2010). Pipe size = 12" diameter.
• The District will design, construct and own the line. Denton
will share 50o in the cost and capacity of the line.
• The District will install a booster pump to raise pressure
enough to deliver water into Sanger's elevated tank.
• The line will be scheduled to be in service by June 1, 1993.
• Denton may oversize any portion of the line at their cost (or
raise their participation level to offset).
• Sanger will contribute $100,000 to the cost of the project
(and receive credit against water bill for amount of debt
service thereof).
• The water is to be purchased from Denton during a 6-year
interim period according to surplus water price (approximately
$1.25/1,000 gallons). Denton will forego the raw water
component (approximately $0.38/1,000 gallons) for one year
after service starts. After the interim period the District
could purchase permanent water from Denton, or Denton could
transfer the District's water.
• Denton will pay the District its pro-rata share of the debt
service owed by the District on the 50 0 local share and is
obligated to repurchase the TWDB 50o share to Denton's City
limits.
C;fWP51�DOCUMENT�PIPE-BLM,PRO
March 11, 1992
Elements of Proposed Agreement
To Construct Pipeline From
Denton to Serve City of Sanger
Page 2 of 2
• Denton would have the right to use the line to serve Denton
customers within its City limits. Upon beginning such use,
Denton would have the duty to purchase all of the TWDB share
in the line from Denton to the point of use. Denton would
continue to pay its pro rata debt service for the local share
(or purchase that part also).
• Denton would have a continuing option to purchase the line to
its City limits at District's actual cost. Denton would be
required to purchase the entire line to the City limits when
sales by Denton to Denton customers reaches an average of
150,000 gallons per day. That part of debt service attributed
to principal which has been paid by Denton will be credited to
the purchase price of the line.
• Sanger would take or pay for 150,000 gallons per day.
• The price to Sanger would be based on actual cost until such
time as other elements of the Regional Water Project are in
service. At which time, the price to Sanger would be the
average regional price.
Preliminary Estimate of Price (per 1,000 gallons) _
Less Credit for $100,000
Participation in Project
Estimated Net Price
Less Special Raw Water Credit
(First Year)
0.20
0.38
When other customers are served by District, the price will be
averaged.
Denton would assure delivery of 1.5 mgd when needed,
reinforcing the system as needed in future years.
TET:jlf
C,1WP511DOCQMENT/PIPE-E(,M,PRO
March 11, 1992