HomeMy WebLinkAboutContract 35362�� I �' ��`�;►�i��igl�i �
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INTERLOCAL AGREEMENT
BETWEEN
DALLAS / FORT WORTH INTERNATIONAL AIRPORT BOARD OF DIRECTORS
AND THE CITY OF FORT WORTH
TAIS AGREEMENT is made entered into this the �'� day o 2007, by and
between the CITY OF FORT WORTH, a home rule municipal corporation of e State of Texas
located within Tarrant, Denton, Parker and Wise Counties, Texas (hereinafter referred to as the
"City"), acting herein by and through its duly authorized Assistant City Manager, and the
DALLAS / FORT WORTH INTERNATIONAL AIRPORT BOARD OF DIRECTORS, A
Joint Airport Board of the Cities of Dallas and Fort Worth (hereinafter referred to as "the
Board").
WHEREAS this Agreement is made under the autharity granted by and pursuant to
Chapter 791 of the Texas Government Code; and
WHEREAS, in 2006, the Board, together with the Cities of Dallas and Fort Worth,
entered into a lease with Oklahoma City-based Chesapeake Energy Corporation for the natural
gas exploration in the Barnett Shale that lies beneath the Dallas / Fort Worth International
Airport's 18,000 acres; and
WHEREAS Board Resolution Nos. 2006-03-068 and 2006-06-207, approved by City of
Dallas Ordinance No. 26410 and City of Fort Worth Ordinance No. 17049-07-2006, adopted the
DFW Airpart Construction and Fire Prevention Standards, Part Nine — Oil and Gas Exploration
and Production, for oil and gas exploration and uniform limitations, safeguards, and requirements
for drilling operations to protect health, safety, and general welfare of the public as well as
minimize the potential impact to property, protect the quality of the environment, and encourage
the orderly production and transportation of available mineral and natural gas resources; and
WHEREAS Board Resolution No. 2007-02-30, approved by City of Dallas Ordinance
No. 26607 and City of Fort Worth Ordinance No. 17444-03-2007, amended Part Nine to add a
variance procedure for gas drilling at the airport; and
WHEREAS Chapter 791 of the Texas Government Code authorizes local government
entities to enter into agreements for the performance of governmental functions, including
administrative functions such as the inspection of oil and gas production operations and facilities;
and
WHEREAS the City and the Board desire that the City perform such oil and gas
inspection services at the Airport; and
WHEREAS each governing body, in performing government functions or in paying for
the performance of governmental functions hereunder, shall make that performance or those
payments from current revenues legally available to that party; and
WHEREAS each governing body finds that the subject of this Agreement is necessary
far the beneiit of the public and that each has the legal authority to perform and to provide the
government function or service which is the subject matter of this Agreement; and
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WHEREAS each governing body �nds that the performance of this Agreement is in the
common interest of both parties and that the division of costs fairly compensates the performing
party for the services or functions under this agreement;
NOW, THEREFORE, in consideration of the mutual benefits and promises contained
herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
ARTICLE 1
CITY OBLIGATIONS
§ 1.01 The City shall:
1. Provide all labor, materials, equipment, personnel, supervision and
management for gas well inspecting service at the Airport, pertaining to:
a. Site inspection log and pad site case file for each location;
b. Maintenance of computer file records;
c. Attendance at staff ineetings of the Board as requested; and
d. Reply to related public information requests.
2. Maintain a gas well inspector available on an "on-call" 24/7 schedule.
3. Notify designated Board personnel and well operator and driller personnel
of emergencies known to the City; provided that the City shall not be
required to provide emergency response services.
4. Provide general site inspections to commence as the drilling starts on each
pad site.
5. Carry out general site inspections generally one day per week as follows:
a. Compliance with DFW Ordinances, Part-9 Oil and Gas Exploration and
Production, Sections 14-17 as regards surface conditions;
b. Compliance with the rules of the Texas Administrative Code (TAC) Title 16-
Economic Regulation, Part 1-Railroad Commission of Texas, Chapter 3-Oil and
Gas Division;
c. Onsite equipment conditions for damage, saltwater leaks and general
maintenance;
d. Wellhead pressure;
e. Impromptu check of tank contents for sour gas;
£ Check for NORM (Naturally Occurring Natural Radiation); and
g. Site conditions recognized as a potential public safety hazard.
6. Report hazardous or environmental conditions associated with surface
contamination to designated Board personnel.
ARTICLE 2
BOARD OBLIGATIONS
§2.01. The Board shall provide:
1. Access to the airport and each pad site on a 24 hour, seven day a week basis
2. Security clearance, badge, driving classes and other required training
if needed, an escort to secured areas;
-�- 3. Assistance and advice by Fire, Security, Environmental and other
�;r� ���' ': �` � , departments involved with gas well drilling and production activities•
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4. Relevant DFW staff list with title, name, phone, email and location map to
office sites;
5. 24-hour emergency contact numbers and names for airport personnel and
Chesapeake;
6. Designated no fee parking during site inspection and management
conferences;
7. Location coordinates and attribute information for each pad site and well;
8. File sharing as necessary to complete the scope of services;
9. Coardinate with the City for office space for one inspector with necessary
equipment DFW and the City mutually agree is necessary to facilitate
communication and project control by DFW;
10. Cost sharing of use of laptop for DFW; and
1 L Issuance of Airport permits for:
a. Gas well pad sites located on the airport,
b. Gas wellbore and tank facilities,
c. Freshwater and other related pits,
d. Natural gas compressor substations,
e. Natural gas gathering and transmission pipelines,
f. Saltwater waste pipelines and disposal facilities,
g. Any other permits required by airport ordinances.
ARTICLE 3
FEES
§3.01. The Board shall pay:
1. A commencement fee of $650 per well, as each well is commenced;
2. An annual gas well inspection fee of $175 for each wellbore that exists on
the first of January of each calendar year;
3. Emergency overtime costs, four (4) hour minimum, of $125 per hour,
commencing at the time the inspector receives the call for onsite assistance from
authorized Airport officials; and
4. The cost of training and equipment utilized exclusively for the Airport well site
inspections.
§3.02. The fees schedule may be amended by mutual agreement of the City and The Board.
§3.03. The City shall submit invoices quarterly to the Board, mailed on or about the ls` of
March, June, September and December of each year. Invoices shall be submitted to the Finance
Department of the Board, at the address indicated below.
§3.04. Current Revenues. Pursuant to 791.011 of the Interlocal Cooperation Act, each party
paying for performance of governmental functions or services must make those payments from
current revenues available to the paying party. Payments will be due within 30 days from receipt
of invoice.
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ARTICLE 4
TERM
§4.01. The term of this Agreement is for a period of two years beginning on May 1, 2007 and
ending on April 30, 2009. The Agreement may be renewed by mutual agreement between the
parties for additional two-year terms, provided that the Board requests each renewal in writing to
City on or before sixty (60) days prior to the expiration of the Term or any extension.
ARTICLE 5
CLAIMS/WAIVER OF IMMUIVITY
§5.01. Notice of Claims. The parties agree to notify each other promptly upon the receipt of any
claim or lawsuit brought in connection with any injury, death or damages related to this
Agreement. The parties agree to make their officers, agents, and employees available to each
other at all reasonable times for any statements and case preparation necessary for the defense of
any claims or litigation for which they may be responsible hereunder.
§5.02. Partial Waiver of Governmental Immunitv. The City and the DFW Board, by signing
this Agreement and to the extent permitted by law, waive their respective immunity from suit by
the other Party, but only with respect to a suit to enforce this Agreement by a Party seeking a
restraining order, preliminary or permanent injunctive relief, specific performance, mandamus, or
declaratory relief. The City and the DFW Board do not waive any other defense or bar against
suit available to the City or the DFW Board.
§5.03. No Third-Party Causes of Action. Nothing herein shall be construed in any manner to
create a cause of action for the benefit of any person not a party to this Agreement, or to create
any rights for the benefit of any person not a party to this Agreement not otherwise existing at
law.
§5.04. Liability of Claims. Nothing in the performance of this Agreement shall impose any
liability for claims against the Board other than claims for which liability may be imposed by the
Texas Tort Claims Act. Nothing in the performance of this Agreement shall impose any liability
for claims against the City other than claims for which liability may be imposed by the Texas
Tort Claims Act.
ARTICLE 6
TERMINATION OF AGREEMENT
§6.01. This agreement may be terminated by either party, at any time, for any reason and
without cause, upon thirty (30) days written notice to the other party.
ARTICLE 7
GENERAI. PROVISIONS
§7A1. Addresses for Notices. Any notice provided for or permitted under this Agreement shall
be made in writing and may be given or served by (i) delivering the same in person to the party to
be notified, (ii) depositing the same in the mail, postage prepaid, certified with return receipt
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requested, at the addresses shown below, unless and until the Parties are otherwise notiiied in
writing of a new address by any Party or (iii) sending by telecopy, with a copy thereof sent by
registered mail on the same day. All notices required or permitted under this Agreement shall be
personally delivered or mailed to the respective Parties by depositing same in the United States
mail, postage prepaid. Mailed notices shall be deemed communicated as of five days after
mailing.
The Ci :
City of Fort Worth
Planning and Development Department
Support Services Division, Gas Drilling Section
1000 Throckmorton Street
Fort Worth, Texas 76102
Wit17 copy to:
Sarah Fullenwider
Assistant City Attorney
1000 Throckmorton Street
Fort Worth, Texas 76102
The Board:
If intended fo� the DFW Internation�al
Ai�port Board:
Chief Executive Officer
DFW International Airport Board
P.O. Box 619428
3200 E. Airfield Drive
DFW Airport, Texas 75261-9428
With copy to:
Legal Counsel
DFW International Airport Board
P.O. Box 619428
3200 E. Airfield Drive
DFW Airport, Texas 75261-9428
If inte�z�ded for th�e Buildi�zg Officer:
Mr. Curtis Inglis, Building Of�cial
Dallas / Fort Worth International Airport
P.O. Box 612008
DFW Airport, Texas 75261-2008
The parties may from time to time change their respective addresses, and each shall have the right
to specify.as its address any other address upon at least ten days written notice to the other party.
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§7.02. Nondiscrimination. Neither the City nor the Board, nor any of their officers, members,
agents, employees, program participants, ar subcontractors, while engaged in performing this
Agreement, shall in connection with the employment, advancement, or discharge of employees,
or in connection with the terms, conditions or privileges of their employment, discriminate
against persons because of their age, except on the basis of a bona fide occupational qualification,
retirement plan, or statutory requirement. The City and the Board agree that in the execution,
performance, or attempted performance of this Agreement they will not discriminate against any
person or persons because of gender, religion, color, sexual orientation, or national origin, nor
will they permit their respective agents, employees, subcontractors or program participants to
engage in such discrimination.
§7.03. No Partnership or Joint Venture. The City shall operate hereunder as an independent
contractor and not as an officer, agent, servant, partner or employee of the Board. The City shall
have the exclusive control of the work designated to be performed by it under this Agreement,
and all persons performing the same shall be solely responsible for the acts and omissions of their
officers, agents, servants, contractors, subcontractors and employees. Neither the City nor the
Board shall be responsible under the doctrine or respondeat superior for the acts or omissions of
the officers, agents, servants, contractors, subcontractors, or employees of the other party.
§7.04. Force Majeure. If performance of any covenant or term of this Agreement is delayed by
reason of war, civil commotion, act of god, governmental restrictions, regulations, or interference,
fire or other casualty, or any other circumstances beyond the City's or the Board's control, ar that
of the party obligated or permitted under this Agreement to do or perform the term or covenant,
regardless of whether the circumstance is similar to any of those enumerated or not, each party so
delayed is excused from performance during the delay period.
§7.05. Successors and Assi -�ns. Subject to the limitations contained herein, the covenants,
conditions and agreements made and entered into by the parties hereto are declared to be for the
benefit of and binding upon their respective successors, representatives and assigns, if any.
§7.06. Severability. It is agreed that in the event any covenant, condition or provision of this
Agreement is held to be invalid by any court of competent jurisdiction, the invalidity of such
covenant, condition or provision shall in no way affect any other covenant, condition or
provision; provided, however, that the invalidity of any such covenant, condition or provision
does not materially prejudice either the City or the Board in connection with the rights and
obligations contained in the valid covenants, conditions or provisions of this Agreement.
§7.07. Applicable Laws. The laws of the State of Texas shall govern this license agreement and
the relationship created hereby. Venue for any action brought to interpret or enforce, or arising
out of or incident to, the terms of this agreement shall be in Tarrant County, Texas
§7.08. No Individual Liability. To the extent allowed by law, no officer, agent, employee, or
representative of any of the Parties shall be liable in his or her individual capacity, nor shall such
person be subject to personal liability arising under this Agreement.
§7.09. Non-Liability for Other Parties Obli�ations, Costs and Attorney's Fees. Each Party
hereunder shall only be responsible and liable for its own obligations, costs, and attorneys fees in
connection with the performance of this Agreement, or any dispute ar litigation that may arise in
connection with this, Agreement.
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§7.10. Captions The captions to the various clauses of this Agreement are for informational
purposes only and shall not alter the substance of the terms and conditions of this Contract.
§7.11. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and constitute one and the same instrument.
§7.12. No Third Party Beneficiaries. The provisions of this Agreement are solely for the benefit
of the Parties hereto; and nothing in this Agreement, express or implied, shall create or grant any
benefit, or any legal or equitable right, remedy, or claim hereunder, contractual or otherwise, to
any other person or entity.
§7.13. Sole Agreement. This Agreement constitutes the sole and only agreement of the parties
hereto and supersedes any prior understanding or written or oral agreements between the parties
respecting the subject matter.
EXECUTED this the � day o , 2007.
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By: , �'`�.
Assistant City Man�er
AT"I'EST:
By. ��'"� V ` .
City Secretary
APPROVED AS TO FORM
AND L�GALITY
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ssistant C�`ty Attorney
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DALLAS/FORT WORTH
INTERNATIONAL AIRPORT
BOARD OF DIRECTORS
By: �
x utive Of icer
ATTEST:
By: �J�Z�'zZ�
Board Secretary �
APPROVED AS TO FORM
AND LEGAL� jTY
gy; '���� C�-,� ����
Legal Counsel for the Board
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/22/2007
DATE: Tuesday, May 22, 2007
LOG NAME: 06DFW INTERLOCL
REFERENCE NO.: C-22136
SUBJECT:
Authorize an Interlocal Agreement between the Dallas/Fort Worth International Airport Board of
Directors and the City of Fort Worth to Provide Gas Well Inspector Service at DFW
RECOMMENDATION:
It is recommended that the City Council authorize the attached Interlocal Agreement between the
Dallas/Fort Worth International Airport Board of Directors and the City of Fort Worth.
DISCUSSION:
In 2006, the Board, together with the cities of Dallas and Fort Worth, entered into a lease with Chesapeake
Energy Corporation for natural gas exploration in the Barnett Shale that lies beneath Dallas/Fort Worth
International Airport's 18,000 acres.
Board Resolutions No. 2006-03-068 and 2006-06-207 were approved by City of Dallas Ordinance No.
26410 and City of Fort Worth Ordinance No. 17049-07-2006. These documents established the DFW
Airport Construction and Fire Prevention Standards, Part Nine — Oil and Gas Exploration and Production,
for oil and gas exploration and uniform limitations, safeguards, and requirements for drilling operations to
protect the health, safety, and general welfare of the public. The intent of these standards is to minimize
the potential impact to property, protect the quality of the environment, and encourage the orderly
production and transportation of available mineral and natural gas resources. Board Resolution No. 2007-
02-30, approved by City of Dallas Ordinance No. 26607 and City of Fort Worth Ordinance No. 17444-03-
2007, amended Part Nine to add a variance procedure for gas drilling at the airport.
Chapter 791 of the Texas Local Government Code authorizes local government entities to enter into
Interlocal Agreements for the performance of governmental functions, including administrative functions
such as the inspection of oil and gas production operations and facilities. This attached agreement
authorizes the Gas Well Section of the City's Planning and Development Department to perform oil and gas
inspection services at the Airport and establishes related fees.
The City and the Board have determined that this Interlocal Agreement is in the common interest of both
parties and that the division of costs fairly compensates the performing party for the services or functions to
be provided under this agreement. It is anticipated that inspections at the Airport will be possible with
existing City of Fort Worth staff until 2009. Any future resource enhancements will also be fully offset
through appropriate fees.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
Logname: 06DFW INTERLOCL Page 1 of 2
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Dale Fisseler (6140)
Originating Department Head: Fernando Costa (8042)
Additional Information Contact: John Garfield (8043)
David Lunsford (2339)
Logname: 06DFW INTERLOCL Page 2 of 2