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Home My WebLink AboutContract 27923, O�;-:r� I-02 AO�i: ��' I i�l CITY SECRETq�y PURCHASE AGREEMENT ��T 1d0. 3 STATE OF TEXAS § COUNTY OF TARRANT § WHEREAS, T. K. R. Inc. is the owner and holder of a Certificate of Convenience and Necessity ("CCN") issued by the Texas Natural Resource Conservation Commission ("TNRCC") or predecessor agency, same being Certificate No. 12022, which authorizes water service to an area in and around Lake Crest Estates, such area being located within the corporate limits of the City of Fort Worth; and WHEREAS, the City of Fort Worth also holds a CCN issued by the TNRCC or predecessor agency, same being Certificate No. 12311, which authorizes the City of Fort Worth to provide water service to the same general area; and WHEREAS, the City of Fort Worth is desirous of purchasing from T. K. R., Inc. its retail water distribution lines and meters serving the area covered by CCN No. 12022. NOW, THEREFORE, this agreement is made and entered into by and between the City of Fort Worth, a home-rule municipal corporation situated in Tarrant and Denton Counties, Texas, hereinafter referred to as "Buyer", acting herein by and through Marc Ott, its duly authorized interim assistant city manager, and T. K. R., Inc., hereinafter referred to as "Seller", acting herein by and through Karen Reed Oney, its duly authorized President. I . Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the retail water distribution lines and associated water meters serving the area covered by CCN No. 12022, authorizing Seller to provide water service to an area east of the City of Fort Worth Eagle Mountain Water Treatment Plant, more particularly as shown on Exhibit "A" attached hereto and made a part hereof for all purposes. Seller agrees to execute any and all documents necessary for filing �►�I��;�:�;��' ��: �;�i�'�� ' ��' �i�� -_ r : ._�� _�. . U�;—:' I-02 i10�� ;2 I I�! CITY SECRET'q�Y PURCHASE AGREEMENT ��T NO. j STATE OF TEXAS § COUNTY OF TARRANT § WHEREAS, T. K. R. Inc. is the owner and holder of a Certificate of Convenience and Necessity ("CCN") issued by the Texas Natural Resource Conservation Commission ("TNRCC") or predecessor agency, same being Certificate No. 12022, which authorizes water service to an area in and around Lake Crest Estates, such area being located within the corporate limits of the City of Fort Worth; and WHEREAS, the City of Fort Worth also holds a CCN issued by the TNRCC or predecessor agency, same being Certificate No. 12311, which authorizes the City of Fort Worth to provide water service to the same general area; and WHEREAS, the City of Fort Worth is desirous of purchasing from T. K. R., Inc. its retail water distribution lines and meters serving the area covered by CCN No. 12022. NOW, THEREFORE, this agreement is made and entered into by and between the City of Fort Worth, a home-rule municipal corporation situated in Tarrant and Denton Counties, Texas, hereinafter referred to as "Buyer", acting herein by and through Marc Ott, its duly authorized interim assistant city manager, and T. K. R., Inc., hereinafter referred to as "Seller", acting herein by and through Karen Reed Oney, its duly authorized President. I . Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the retail water distribution lines and associated water meters serving the area covered by CCN No. 12022, authorizing Seller to provide water service to an area east of the City of Fort Worth Eagle Mountain Water Treatment Plant, more particularly as shown on Exhibit "A" attached hereto and made a part hereof for all purposes. Seller agrees to execute any and all documents necessary for filing U I �f ,'r,l l� � 1��N1Y rN�C,,;�;�,�': u�� '��%' ��A�:� �� ' '�� '� � �- ___.',�°,. a..._ • 0 with the TNRCC to effectuate the cancellation or decertification of CCN No. 12022. Further, Seller shall cooperate with Buyer to obtain the approval of the TNRCC of such cancellation or decertification. II. The purchase price for the water distribution lines and associated meters shall be $22,000, with $1,000 being due and payable to Seller upon the execution of this purchase agreement, and the balance being due and payable upon closing. Seller shall execute a Bill of Sale in the form attached hereto as Exhibit "B" upon delivery of the closing payment. Closing shall occur after the completion of the Buyer's water main and the connection of the last customer of Seller is connected to the Fort Worth system. III. Seller acknowledges that Buyer is in the process of installing a water main that will be used to provide water service to Seller's customers. Until (i) the installation of the water main is completed and accepted by Buyer and, (ii) Seller's customers are connected to such main, Seller agrees, at its sole cost and expense, to continue to operate, maintain, and repair its groundwater well system, the associated distribution system and customer connections, and provide potable water to its customers. Seller shall be responsible for the payment of all costs incurred in providing such water service until its last customer is connected to the Buyer's system. Seller shall be entitled to all revenues generated from the sale of water to its customers prior to their connection to the Fort Worth system. Buyer shall be responsible for the disposition of lines, mains and water meters utilized by the Seller to provide water service under CCN No. 12022. IV. Seller, at its sole cost and expense, shall be responsible for closing the existing groundwater well(s) and the removal and disposition any groundwater tanks in accordance with rules adopted by the TNRCC. 0 V. Seller agrees to indemnify, defend and hold harmless Buyer, its officers, agents, and employees, from and against any claims or causes action arising out of Seller's provision of water service to its customers and the closure of the existing groundwater well(s) and disposition of the groundwater tanks. Seller shall not be responsible for any action or cause of action arising out of Buyer's provision of water services. Executed this �S�'day of , 2002. BUYER: CITY OF FORT W H By: Marc Assistant City Manager APPROVED AS TO FORM AND LEGALITY: � Assistant City Attorney ATTEST: ��ri��act Aut,c�4=l�°"'�.-- �� o �. - na�� SELLER: T. K. R., Inc. By: ��1 Karen Reed Oney President ��Q�� cll Y � � � �:��:'� �:w._._��.,_..., Exhibit B BILL OF SALE T.K.R., Inc, in consideration of One Dollar ($1.00) and other good and valuable consideration paid by the City of Fort Worth, the receipt of which is hereby acknowledged, does hereby sell to the City of Fort Worth the following described goods: All water mains, lines and meters owned by T.K.R., Inc. used in providing treated water service pursuant to Certificate of Convenience and Necessity No. 12022, including mains and lines from the 6500 block through the 6600 Marvin Brown Road, from the 6500 block through the 6600 of Seth Barwise Road, from the 6500 block through the 6600 block of Gillis John Road, from the 6500 block through the 6600 block of Hanger Road, from the 6500 block through the 6600 Bowman Roberts Road, and from the 6000 block through the 6100 block of Longhorn Road. Seller covenants and agrees to defend the sale of the goods to the Buyer, and to the Buyer's successors and assigns against all lawful claims. This Bill of Sale shall be effective as to the transfer of property listed above on the date that it is executed. In witness whereof, this bill of Sale is executed on the 2002. BUYER: City of Fort VVorth Marc Ott Assistant City Manager APPROVED 1#S TO ��rti�13 AND LEGALITI': � / Assistani Cily aii�d�sa�:y day of SELLER: T.K.R., Inc. � Karen Reed Oney President ACKNOWLEDGEMENT OF BILL OF SALE Before me, the undersigned authority, on this day personally appeared Karen Reed Oney, President of T. K. R., Inc. Seller, known to me to be the person whose name is subscribed to the foregoing Bill of Sale, and acknowledge to me that she executed it for the purposes and consideration therein expressed. Given my hand and seal of office this 2 . , ......�.�.:v:..:::;:.�;.,.-' . � ► �� ► :�• , � '%\ .• • . ► � C = � 1�� : 'R � � ► ................................ Notary Public in and for the State of Texas J P , �;, ;, m�-!,=- J ''_ = P-_ ,��;��- m �r-_ � Tm_./ ,. -- �_ � _ � _- �� __ _�-_ _._ - � _ � m � - = n-- _�-==-- ��i� _ s _� " - �--- � �m �_ _ � ., � I .< i , � �' � '- " ~ �- — � � e � � .. ., , m . s J__ _--� �- -- 1 _ . � � - a3�nrvf+eoe ` ,, � � � � - W � � � .. , � SNHOf Z-.__._ . .__. . ._. 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WATER SYSTEM AND WATER CERTIFICATE OF CONVENIENCE AND NECESSITY NO. 12022 RECOMMENDATION: It is recommended that the City Council authorize the City Manager to purchase the T.K.R., Inc. water system and water Certificate of Convenience and Necessity (CCN) No. 12022 in the amount of $22,000. DISCUSSION: The T.K.R., Inc. water system is located east of the Eagle Mountain Water Treatment Plant in Fort Worth. On January 9, 2001 (M&C PZ-2274), the City Council approved the annexation of this area as part of Lake Crest Estates. T.K.R., Inc. supplies approximately 44 customers with well water, but provides no fire hydrants for fire protection or wastewater service. On June 12, 2001 (M&C C-18621), the City Council approved an engineering agreement with Teague Nall and Perkins, Inc. for preparation of water and sewer construction plans and specifications for the Lake Crest Estates area. The water construction is expected to start this summer to provide water service to the site, based on the Annexation Plan. The Water Department has negotiated with T.K.R., Inc. to purchase the water system, including its CCN No. 12022, in the amount of $22,000. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current capital budget, as appropriated, of the Water Capital Projects Fund. BG:n Submitted for City Manager's Office by: Bridgette Garrett (Acting) Originating Department Head: Dale Fisseler Additional Information Contact: Dale Fisseler FUND � ACCOiJNT � CENTER (to) 6140 8207 (from) P161 8207 539120 I 060161151460 AMOUNT , 000.00 CITY SECRETARY APPROVED 06/04/02