08-D MJC Coop AgrDRAFT
F:ALICE\RFSWORK\CURRENTUVI7C Water Line AgreementRes
October 1, 2004
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE CITY MANAGER, CITY
ATTORNEY, AND CITY ENGINEER TO NEGOTIATE AND PREPARE A
COOPERATION AGREEMENT AND OTHER INSTRUMENTS BETWEEN
THE CITY OF PARIS AND MARVIN-JENIVINGS-CLARDY WATER
SUPPLY CORPORATION FOR THE CONSTRUCTION OF A NEW EIGHT
INCH (8") WATER LINE ON FM 905 IN AN AREA LOCATED INSIDE
THE CITY LIMITS OF THE CITY OF PARIS IN RETURN FOR THE
RELINQUISHMENT OF THE CERTIFICATE OF CONVEIVIENCE AND
NECESSITY TO SAID AREA; MAKING OTHER FINDINGS AND
PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City of Paris has been approached by representatives of the Marvin-
Jennings-Clardy Water Supply Corporation (MJC) to participate in a program involving
replacement of an old four inch (4") water line with a new eight inch (8") water line in the
Southeast part of Paris; and,
WHEREAS, the Water Supply Corporation has offered the City the opportunity to
participate in paying a portion of the cost of the aforesaid line, the same consisting primarily of
the cost of the materials, with the installation of said lines to be at the Water Supply Corporation's
expense; and,
WHEREAS, the estimated distance of the aforesaid water line extension is 7,840 feet,
with an estimated cost of upgrading the water line to be $9,016 and the estimated cost of a new
meter and vault to be approximately $8,715; and,
WHEREAS, the portion of the line to be installed is located inside the city limits of the
City of Paris; and,
WHEREAS, the new line proposed for installation meets all standards prerequisite to
providing appropriate fire service to the benefit of the property owners receiving service from said
line; and,
WHEREAS, in return for the City's participation in the project, MJC is willing to release
its Certificate of Convenience and Necessity for that portion of the property served by the new
water line and located in the city limits of the City of Paris, thereby affording the City of Paris
the opportunity to add existing and new customers to its water system; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COLTNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble of this resolution are hereby in all
things approved.
Section 2. That the City Manager, City Attorney, and City Engineer shall be and they
are hereby authorized to negotiate a cooperation agreement and any and all instruments associated
therewith by and between the City of Paris and Marvin-Jennings-Clardy Water Supply Corporation
(MJC) for the City to participate in the cost of installing a new eight inch (8") water line on FM
905 located in the city limits of the City of Paris, with the City to pay the cost of the line itself
and the installation of a new meter and vault, a11 other costs associated with the installation to be
paid by or on behalf of Marvin-Jennings-Clardy Water Supply Corporation.
Section 3. That in return for the City's participation in the extension of said water line,
Marvin-Jennings-Clardy has proposed and the aforesaid cooperative agreement would provide for
the transfer of the Certificate of Convenience and Necessity from MJC to the City of Paris for
providing water service to those property owners, including current and new water customers,
who would be served by the aforesaid new water line and who are located inside the city limits
of the City of Paris.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 7' day of October, 2004.
Curtis Fendley, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
MEMORANDUM
TO: Mayor and City Council
FROM: Shawn Napier,
City Engineer
DATE: October 1, 2004
SUBJECT: Marvin-Jennings-Clardy Water Supply Corporation
The Marvin-Jennings-Clardy (MJC) Water Supply Corporation (WSC) just recently received
bids in order to replace an old 4-inch water line with a new 8-inch water line on F.M. 905
Southeast of Paris. The City of Paris was approached in April of this year about the possibility
of upgrading the proposed water line to a City of Paris standard pipe (PVC C-900 DR-18) from a
rural water pipe (ASTM D-2241 Class 200 PVC). This is an opportunity to upgrade the lines to
a fire rated line (able to support fire hydrants). If we so chose we could also pay for a new meter
and vault to be installed at the current city limit line on F.M. 905 at Echols Creek. If we did this
we would have the opportunity to change the CCN (Certificate of Convenience and Necessity)
from MJC to the City of Paris. In doing so we would gain 10 current customers and the prospect
for additional new customers.
The price for upgrading the water line is $1.15 per foot. This is the difference in the price per
foot of the two kinds of water pipe. The distance from the current meter location to the proposed
meter location is approximately 7,840 feet. The cost for upgrading the pipe is $9,016.00. The
cost to install a new meter and vault at the current city limit line is $8,715.00. The attorney's fee
for changing the CCN is estimated to be $2,000.00. If the CCN was transferred to the City of
Paris the MJC water meters would be exchanged with City of Paris touch read meters. The cost
to replace the 10 meters is $1,000.00. The price to the City of Paris for the total project would be
approximately $20,800.00. We are in the process of getting water consumption numbers on the
10 water customers from MJC. The new line will be installed by MJC at no cost to the City of
Paris.
The MJC board meets October 12th to consider this matter.
cc: Larry Shaw, Interim City Manager
Larry W. Schenk, City Attorney
Jon Clack, Director of Water Utilities
Gene Anderson, Finance Director