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WA9402-CS 940805 MEMORANDUM To: Steve Goram, Director of Public Works From: Kenneth M. Griffin, P.E., Assistant City Manager/City Engineer RE: Dallas Water Line # 3 Contract Agreement Date: August 5, 1994 This memo is written as a follow-up to our telephone conversation of August 4, 1994 in which you requested written comments on the Dallas Water Line contract agreement that you previously forwarded to this office. I informed you during the conversation that I had seen the information but had not forwarded comments to you. When reviewing my in-basket after our telephone conversation, I did note that you had processed information to this office in late July that was addressed to Pete Smith and copied to this office. I had originally scanned the letter and because the Engineering Department has not been involved in this process I assumed it was copied to this department for information only. Upon closer review of the letter after our conversation, I noted that it did state at the end of the third paragraph that you are requesting the City Engineer to review and comment. I apologize for the delay in the comments. I have now reviewed the contract and based on various correspondence processed with the contract, it appears as though your office has reviewed numerous iterations of the contract without involving the Engineering Department. Also, in reviewing the cover letter, I noted that you had a follow-up meeting concerning this contract agreement at the end of the week of July 25th. Again, Engineering was not invited to that meeting. I personally have very little knowledge about the contract negotiations that have taken place in the past and/or any commitments made on the part of the Cities of Coppell, Irving or Dallas concerning this issue. The only thing I am aware of is that the City of Irving will be constructing the water line through the City of Coppell so that the Cities of Irving, Coppell and Lewisville can obtain additional water. However, as you requested, I have reviewed the contract and based on its face value only, I have the following comments to offer: 1. On page 3, paragraph 2 there is a line talking about the City of Coppell and Lewisville sharing pro rata cost of several items including right-of-way acquisition cost. Will this pro rata share be for the entire project or just the cost of the right-of-way within the City of Coppell? Also, will the City obtain credits for any right-of-way that it obtains through the platting process for this project? 2. On page 4, paragraph 4 there is a statement that alludes to the fact that each City is responsible for filing its on arbitrage report on bond monies placed in escrow. Has the Finance Department been made aware of this and will we have any arbitrage concerns if Irving holds the money that we give them for an extended period of time? 3. On page 5, paragraph 6 in the third line the word "in" should be changed to "is". 4. On page 7, paragraph 13 in the ninth line the word "works" should be capitalized. Again, because the Engineering Department has not been involved in the process concerning contract negotiations, I can only take this at its face value and offer the above comments. If you have any questions please feel free to contact this office. ~le/wa9402/8694gorm.mm