Title
Consider a memorandum/resolution authorizing the execution and delivery of an addendum No. 1 to amended and restated waste disposal contract between Bell County Water Control and Improvement District No.1 and City of Killeen, Texas.
Body
DATE: January 21, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Addendum No. 1 to amended and restated waste disposal contract with WCID No. 1
BACKGROUND AND FINDINGS:
The City of Killeen entered into a wastewater treatment contract with the Bell County Water Control and Improvement District No. 1 (“WCID #1” or “District”) in 1968 (“1968 Agreement”). Over the years, this contract has been amended for various reasons, with the most recent amendment approved by the City Council on September 12, 2023, and effective as of December 14, 2023 (CCM/R 23-135R).
On November 5, 2024, Mayor Nash-King, along with Councilmembers, received a tour of the 38th Street Wastewater Plant and a presentation from the General Manager of WCID #1. During the tour and presentation, upcoming plant improvements were discussed that will enhance the water quality, reliability, and safety of the wastewater plant. These improvements are anticipated to be completed by the end of 2026.
This addendum no. 1 modifies the Amended and Restated Waste Disposal Contract, particularly Section 22, dated December 14, 2023, between WCID No. 1 and the City of Killeen. WCID No. 1 will issue Sanitary Sewer System Revenue Bonds, Series 2025, with a maximum aggregate principal amount not to exceed $14,870,000. The entire 100% of the bond proceeds will be allocated to the Plant 1 modifications at the 38th Street Treatment Facilities. The City of Killeen is responsible for 100% of the debt service associated with these bonds.
The principal amount and debt service requirements allocated to the City are preliminary and will be finalized after the bond pricing. Fixed charges for the City will follow the schedule outlined in Exhibit A, subject to amendments based on market conditions or adjustments after the project’s completion. Any unexpended bond proceeds may be used for purposes such as redeeming outstanding bonds or constructing additional facilities, with any adjustments communicated to the City through an amended Exhibit A.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Restated and amended waste disposal contract addendum no. 1 with WCID #1 conforms to all City policies regarding contracted services.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
There is no financial impact for the current fiscal year. For future years, the estimated financial impact is $948,830 in FY 2026, $1,191,455 in FY 2027, and an average estimated amount of $1,196,942 annually from FY 2028 to FY 2045.
Is this a one-time or recurring revenue/expenditure?
Recurring
Is this revenue/expenditure budgeted?
There is no financial impact for the current fiscal year. For future years, the impact will be included in our proposed budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Subject to the approval of future proposed budgets.
RECOMMENDATION:
Authorize the City Manager, or his designee, to execute and deliver Addendum No. 1 to the Restated and Amended Waste Disposal Contract with WCID No. 1, and authorize the City Manager, City Secretary, and their designees to take any further actions and execute any necessary instruments to implement the provisions of this resolution and facilitate the issuance of the bonds by the District.
DEPARTMENTAL CLEARANCES:
Public Works
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Addendum
Certificate
Resolution
Exhibits
Presentation