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HomeMy WebLinkAboutContract 48557 CITYSEMARY -S CONTRACT NO, MEMOP,ANDUM OF UNDERSTANDING 5't This Memorandum of Understanding is executed as of the day of c-�o i�" , 2016 by the City of Fort Worth, Texas ("Fort Worth"), and the City of Burleson, Texas (`Burleson"). The term sheet attached hereto as (the "Term Sheet") is hereby incorporated herein and made a part of this Memorandum of Understanding for all purposes. The purpose of this Memorandum of Understanding is to set forth an agreement in principle between the cities with respect Burleson's capital contributions to Fort Worth's wastewater system as well as issues related to Burleson's application to amend its Sewer Certificate of Convenience and Necessity. Upon j execution of this Memorandum of Understanding,the parties will proceed to negotiate in ; good faith the definitive terms and conditions for the new Wholesale Wastewater Contract which will include mutually acceptable provisions. Executed effective as of the date set forth above. i I CITY OF FORT WORTH CITY OF BU S Jesus J. Chapa Paul Cain Assistant City Manager Deputy City Manager l Approved as to form and legality:. Approved as to form and legality: i Christa .L ez-R olds City Attorney Assistant City Atto i' i Attest: _ A test: l 5 6 � 8 a ? � H Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Name of Employee Title TERM SHEET I. Overview. The City of Fort Worth ("Fort Worth") and the City of Burleson ("Burleson") are both parties to the Wholesale Wastewater Contract known as Fort Worth City Secretary Contract No. 15804 ("Wholesale Contract") which provides for provision of wastewater service to Burleson by Fort Worth. The Wholesale Contract will expire on or about May 8, 2017. Fort Worth is in negotiations with its customer cities, including Burleson, for a new Wholesale Contract. During the negotiations, certain issues regarding Burleson's capital contributions to the sewer system for its known and predicted future capacity needs, as well as Burleson's application to amend its Sewer Certificate of Convenience and Necessity ("CCN") arose between the parties. Fort Worth and Burleson are entering into this Memorandum of Understand ("MOU") to document the agreement with regard to these issues prior to the finalization of the new Wholesale Contract. II. Capital Contributions to a Parallel Relief Sewer Line A. Both parties agree that a parallel relief sewer line to Village Creek to serve Burleson is necessary as identified in Exhibit A. This line shall be constructed and installed with capital contributions from Burleson and Crowley and will serve both Burleson and the City of Crowley from each city's meter station to the Everman connection point shown in Exhibit A. B. Both parties agree that the capital contribution from Burleson for the construction of the parallel relief sewer lines will be based on Burleson's requested future peak flow capacity, subtracted from the existing Burleson wastewater contribution to the collection system. The existing contribution from Burleson is calculated as the maximum gravity capacity of the pipeline downstream of the Burleson meter station prior to the Crowley connection (10 MGD), less the Fort Worth contributions from the Burleson North meter station (0.26 MGD) and the Thomas Crossing, Hunters Field, Camden Park, and Shadow Glenn development flow contributions (1.06 MGD). Therefore the existing capacity allocated to Burleson calculates to 8.7 MGD. Future peak flow capacity needed by Burleson will be calculated based on the most recent Freese and Nichols (F&N) study as of the date of this MOU. Burleson shall provide Fort Worth with its necessary capacity for the proposed sewer line as soon as is practicable, and prior to the execution of the new Wholesale Contract. The determined capacity shall be consistent with the F&N study and Fort Worth's own calculations. The identified future peak flow capacity less the existing I flow contribution shall also be the basis in determining Burleson's pro- rata share of the capital cost of the proposed parallel relief sewer line. C. Prior to the execution of the new Wholesale Contract, Burleson and Fort Worth shall determine the timing of when Burleson will pay its capital contribution to Fort Worth. Ill. Burleson's Sewer CCN Application for Amendment A. Burleson has filed an application to the Public Utility Commission ("PUC") (Docket No. 44356) to amend it Sewer CCN No. 20358. Fort Worth filed a letter of support ("letter") provided certain key issues are resolved between the cities as shown in Exhibit B. B. In addition to the capital contribution towards the relief sewer line in Section II, Fort Worth stipulated to the PUC that Burleson must also agree to the reimbursement of$97,370 of which Fort Worth contributed to in the City of Crowley's sewer line to serve an area known as the Hyder Tract. Burleson agrees that if the PUC approves the sewer CCN amendment, and upon Burleson serving the Hyder Tract, it shall reimburse Fort Worth for that contribution in full. C. The Wholesale Contract has not previously accounted for Fort Worth's customer cities to serve in their Extra Territorial Jurisdiction ("ETS). If the Sewer CCN is approved, Burleson will have the right to serve in its ETJ. Burleson agrees to negotiate with Fort Worth in good faith any necessary terms and conditions in the new Wholesale Contract to allow for such provision and further agrees that Fort Worth maintains its right to manage and protect its wastewater system. i Exhibit "A" Village Creek Parallel Relief Sewer Line Location Map eol�f Y-JU ' p w'} Point"D", End of Project, Downstream limits of 7- capital contributions for ! parallel relief line from Burleson and Crowley - Q J. 7 Point"C"to Point"D" Approx 24,000 LF Parallel -- r Relief Sewer Main. Fort Worth, Burleson,and Crowley i� Cost Participation ! Point"B" Mansfi6d Existing Crowley Point"C" Meter Station :f Confluence of Burleson, �• w Crowley and Fort Worth l. ;,'�I` `? ' Parallel Relief Sewer Lines Point"A"to Point"C" Rendon CDP Point"B"to Point"C" Approx. 13,000 LF Parallel Approx. 18,000 LF Parallel Relief Sewer Main 3�! Relief Sewer Main Fort Worth and Burleson ¢ Fort Worth and Crowley Cost Participation Cost Participation j a Burleson Point"A", Existing Burleson Meter Station N EXHMI "A" 0 VoHage Creek FORT WORTH ParaHel ReNef Bones � -- I i I I i I Exhibit "B" Fort Worth Letter of Support For Burleson CCN Amendment Application FORTWORTH. September 15,2016 Public Utility Commission of Texas Central Records 1701 North Congress Avenue P.O.Box 13326 Austin,Texas 78711-3326 RE: Docket No. 44356, Notice of Application to Amend A Sewer Certificate of Convenience and Necessity(CCN)in Johnson and Tarrant Counties,Texas To Whom It May Concern: The City of Fort Worth received notice of the City of Burleson's application to amend its sewer Certificate of Convenience and Necessity No. 20358 (CCN) in Johnson and Tarrant Counties to include approximately 46.184 acres in its boundaries. The City of Fort Worth is filing this comment to the notice in support of the application in light of the discussion and negotiations between the two cities. Burleson is a long time.wholesale sewer service customer of the Fort Worth. The expansion of its sewer CCN appears to mirror Burleson's Extra Territorial Juridiction (ETJ) boundary. While Fort Worth has not previously provided for its customer cities to serve in their ETJ,Fort Worth is in discussion and working through the details to allow this service.It is in Fort Worth's best interests to develop standards for this provision which can be implemented uniformly with its other wholesale customer cities. Burleson's proposed CCN includes property known as the Hyder Tract. Fort Worth previously contributed $97,370 for capacity in the City of Crowley's (also a customer city)sewer line to serve this tract. Fort Worth and Burleson are in negotiations to allow Fort Worth to be compensated once the area is served Burleson. And lastly, Fort Worth and Burleson are determining the capital contributions necessary for a proposed Village Creek parallel relief sewer line based on the future flow capacity identified by Burleson and the City of Crowley. Fort Worth anticipates that these issues will be resolved so that Burleson's CCN amendment will not negatively impact Fort Worth's system,therefore alleviating the need to object to Burleson's application. In light of this effort between Burleson and Fort Worth, Fort Worth offers its show of support to the application. Please let me know if you have any questions. Sincerely, ,d`ohn Carman City of Fort Worth Water Department Fort Worth E WATER DEPARTMENT ADMINISTRATION THE CITY OF FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH,TEW 76102 817-392-8240 * FAx 817-392-8195 Printed on recycled paper 1964.1993.2011 r '