2010-066 RES CONTRACT AMENDMENT REQ FOR TX CAP FUND CONT #729192RESOLUTION NO. mn-nhh
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
AUTHORIZING THE SUBMISSION OF A CONTRACT AMENDMENT
REQUEST FOR THE TEXAS CAPITAL FUND CONTRACT BETWEEN THE
CITY OF PARIS, TEXAS AND THE TEXAS DEPARTMENT OF
AGRICULTURE, COIVTRACT NUMBER 729192; MAKING OTHER FIIVDIIVGS
AND PROVISIONS RELATED TO THE SUBjECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City of Paris entered into a contract dated February 4, 2010 with the
Department of Agriculture for funding and construction of an economic development
project, to wit: infrastructure improvements in Lamar County, Texas; and,
WHEREAS, certain revisions are requested to the Performance Statement for the
construction of such infrastructure improvements as further described in the letter dated
May 7, 2010 from Hayter Engineering attached hereto as Exhibit "A"; and,
WHEREAS, the City of Paris desires to make such revisions.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. The City Council having reviewed the proposed changes hereby
authorizes the City Manager to submit a contract amendment request to the Texas Capital
Fund Program for the following proposed activities:
a. An increase in the size of the pipe for the water line from twelve inch (12") to
fourteen inch (14") and sixteen inch (16").
b. The total length of the water line will be increased by three thousand eight
hundred eighty linear feet (3,88011).
c. Amended Performance Statement as set forth in Exhibit "B" attached hereto and
incorporated herein by reference.
Section 3. This resolution shall be effective immediately upon passage.
DULY PASSED AND APPROVED this 14th day of June, 2010.
r
Will Biard, Mayor
ATTEST:
ice Ellis, City Clerk
APPROVED AS TO FORM:
111~
W. Kent McIlya , Ci Attorney
HAYTER
ENGINEERING, INC.
CONSULTANTS PLANNERS ENGINEERS
May 7, 2010
Mr. Kevin Carruth, City Manager
City of Paris
P.O. Box 9037
Paris, Texas 75461 RE: City of Paris - 14" Water Main Extension to Daisy Farms, LLC
Texas Capital Fund Infrastructure Project 9729192 and HEI 9124001-280
Dear Mr. Carruth:
4445 S.E. LOOP 286
PARIS, TEXAS 75460
(903) 785-0303
FAX (903) 785-0308
Please accept this letter as our revision of the definition of "minimum necessary requirements"
for the above referenced project. At the time of the submission of the City's Texas Capital Fund
application, it was believed the proposed Daisy Farms facility could be served by a twelve inch
(12") water line, however, after final engineering of the project, it has been determined that a
fourteen inch (14") line and sixteen inch (16") line will be necessary due to the amount of water
that is needed for the project as well as the expected water pressure needed to service this large
facility. Please find attached my calculations documenting the need for the increase in line size
and inclusion of fire hydrants. In the attached Preliminary Engineering Report please find our
documentation for the necessary changes.
During the application process, we were asked to provide the cost estimate that would reflect the
length of water line that could be constructed for an amount of one million dollars ($1,000,000).
At the time that we gave our cost estimate, we believed that we would only be able to construct
twenty thousand five hundred linear feet (20,500 l.f.) of water line. After final engineering for
the dairy, it was determined that the water line would need to extend an additional three thousand
eight hundred eighty linear feet. The total minimum length of water line for the Daisy project
should be twenty four thousand three hundred eighty linear feet (24,380 I.Q. Due to the fact that
this was the minimum necessary for the business, we bid this additional length in an addendum
to the original bid. The bids came in below estimate, and we will be able to complete the entire
length of the water line within the Texas Capital Fund budget.
We request that you ask for an amendment to the Performance Statement for this Texas Capital
Fund project to reflect the following changes to the project:
Service Since 1957
raPE F-000315
~XH~~~T -L
Kevin Carruth
May 7, 2010
Page 2
Water Activities in the amount of Nine Hundred Forty Thousand and No/100 Dollars
($940,000.00). The "minimum necessary" activities are to consist of approximately tventy
, • , eiie
h, „a,.,,,, .w linear- f o+ (120 hr) „c b,. o .,a en*, twentv four thousand three
hundred eiahty linear feet (24,380 l.f.) of fourteen inch (14") water distribution line, one
thousand two hundred twenty two linear feet (1,220 l.f.) of sisteen inch (16" water
distribution line, one thousand five hundred sixty linear feet (1,560 I.£) of fourteen inch
(14bore, two hundred twenty linear feet (220 l.f.) of twentv four inch (24") bore,
eleven (11) fire hydrantsLValves, fittings, meter and vault. These improvements shall be in
the following locations:
Location From To Distance
State Hwy 19 corner of County Rd 11400/Hwy 19 project site 20,589-24,380 11
These changes reflect the minimum necessary improvements for this proposed facility. Davis Bacon
wages were used when submitting the bids that were utilized for this amendment request.
If you have further questions, please do not hesitate to contact me.
Sincerely,
HAYTER ENGINEERING, INC.
1
R. Reeves Hayter, P.E.
President
cc: Kim Lacey, Municipal Development Services (w/attachment)
Shawn Napier, City of Paris (w/attachment)
Enctosure
EXNlBlT A
PERFORMANCE STATEMENT
City of Paris
The Contractor shall carry out the following activities in the target area(s) identified on the map in its
Economic Development application. The Contractor shall obtain the Department's prior written approvai
for any modifications or changes that are made to this project's activities specified in Exhibits A and B.
Project Summary
The purpose of this Economic Development project is to provide infrastructure activities in the form of
water line construction in support of the Company. The Company shall be constructing a ten thousand
(10,000) cow dairy operation on approximately three thousand (3,000) acres of land located south of
Paris close to the intersection of Hwy 19 and FM 2036. The location of the land is defined as the
Company's project site. The infrastructure activities shall allow the Company to begin its operations in
the City of Paris, Texas. The Company is a manufacturer/producer of sour cream and cottage cheese
and this dairy will provide milk for these products. National objective of this CDBG economic
development program is to primarily benefit LMI persons through permanent job creation.
Project Activities
The Contractor shall provide to the Department documentation showing winning bid(s) for "minimum
necessary" infrastructure activities that are needed to adequately serve only the Company. These bids
also shall contain the alternate provisions for the winning bid(s) addressing oversizing, extra activities or
improvements. Oversizing and/or extra activities are defined as activities exceeding the "minimum
necessary" needed for this project and are ineligible for payment with contract funds. The Contractor is
responsible for payment of all oversizing or extra activities and/or cost overruns and may be required to
provide evidence of expenditure(s) prior to drawing contract funds.
The "minimum necessary" activities are identified below and the Contractor shall expend a total of
One Million and No/100 Dollars ($1,000,000.00) of contract funds on these activities.
Water Activities in the amount of Nine Hundred Forty Thousand and No/100 Dollars ($940,000.00).
The "minimum necessary" activities are to consist of approximately theusand fEd° uRd"°d
„
, twentv four thousand three hundred eiqhtv linear feet (24,380 I.f.) of
fourteen inch (14") water distribution line, one thousand two hundred twentv two linear feet
(1,220 I f) of sixteen inch (16" water distribution line, one thousand five hundred sixtv linear
feet (1,560 I f) of fourteen inch (14") bore two hundred twentv Iinear feet (220 I.f.) of finrenty
four inch (24") bore, eleven (11) fire hvndrants, valves, fittings, meter and vault. These
improvements shall be in the following locations:
Location From To Distance
State Hwy 19 corner of County Rd 11400/Hwy 19 project site 29;599-24,380 I.f.
Administration Activities in the amount of Sixty Thousand and No/100 Dollars ($60,000.00) to carry
out project administration activities, including the cost associated with the required program fiscal and
compliance audit as required in Section 19.
The Contractor shall ensure that the Company expends a minimum total of Four Million and No/100
Dollars ($4,000,000.00) in cash for this project as follows:
DallaFs , ; Four Million i and
, .
EXHIBl7` a
No/100 Dollars ($3,631,89 .$4,000,000.00) for working capital to include real estate
acquisitionlequitv, enqineerinq, pavroll, construction of facilitv and construction of water line. ;
, ' .
Upon the Department's request, the Contractor shall provide evidence that contract funds were
expended as specified in Exhibits A and B.
Project Objective
As a result of this project, the Contractor shall ensure that the Company creates a minimum of one
hundred one (101) permanent jobs. Fifty-one percent (51%) or fifty-two (52) of these jobs shall be held
by LMI persons prior to Date of Termination. In the event more than one hundred one (101) permanent
jobs are created, the Contractor shall ensure that at least fifty-one percent (51 of all permanent jobs
created during the contract period are held by LMI persons. Any employee transferring from another
Company location or related business operation shall be identified and may not be considered as a
created permanent job.
ATEGORIES
EXHIBIT B
Budget
CITY OF PARIS
CODE TCF
OMPANY
OTAL
Real Estate
Acquisition
$0
$0
$0
Equity
$0
0
Public Activities
Water Activities
1A/01 $940,000
$0
$940,000
Working Capital
$0
$4,000,000
$4,000,000
Engineering
$0
$0
$0
SUBTOTALS
$940,000
$4,000,000
$4,940,000
Administration
32 $60,000
$0
$60,000
TOTALS
$1,000,000
$4,000,000
$5,000,000