HomeMy WebLinkAboutContract 51711 > p 03TY SECRETARY
CONTRACT N0. 51-7 11
�`O�G`L Fo cQ PQ' MEMORANDUM OF UNDERSTANDING
o �
This Memorandum of Understanding is executed as of the day of
JW4e/� , 2018 by the City of Fort Worth, Texas ("Fort Worth"), and the City
of Kennedale, Texas ("Kennedale"). The term sheet attached hereto (the "Term Sheet") is
hereby incorporated herein and made a part of this Memorandum of Understanding for all
purposes. Kennedale has informed Fort Worth that they intend to enter an agreement with the
City of Arlington for a potable water supply and for the operation and maintenance of
Kennedale's water and sewer systems. The City of Kennedale currently has a wholesale water
contract and a wholesale wastewater contract with the City of Fort Worth.
The purpose of this Memorandum of Understanding is to establish the process by which
impact fees will be assessed by Kennedale during the years following a connection with the City
of Arlington water system, and to document a proposed water accounting plan to mitigate the
possibility that water supplied by Fort Worth to Kennedale will be utilized to serve areas outside
of the City of Kennedale. The parties agree to formalize the methodology into an amendment to
the wholesale water contract (City Secretary No. 4110 1) prior to Kennedale taking water from
the City of Arlington.
Executed effective as of the date set forth above.
CITY OF FORT ORTH CITY OF KENN DA
CITY
Jesus J. Ch*a" /� B an Johnson
Assistant City Manager r Mayor
OF
Approved as to form and legality:�44,1 A,
'�j•'•••... '�Q�:
Christa R. open-Reyno d ��"It COUNrl,
Assistant City Attorney ����►►��++++`'��
OFFICIAL RECORD
HA\Boards,Councils,and Committees\UIB\MOU-Kennedale Water AmendmentvIdoc CITY SECRETARY
FT. WORTH,TX
Attest: Attest:
Ma a s Leslie Galloway
rY Y Y
City Secretar ®FZT City Secretary
,.0
OFFICIAL RECORD
CITY SECRfTA�RY
H:\Boards,Councils,and Committees\UIB\MOU-Kennedale Water Amendmentv2.doc age
FT, WORTH,TX
TERM SHEET
I. Overview.
The City of Fort Worth("Fort Worth") and the City of Kennedale ("Kennedale") are both
parties to the Wholesale Water Contract known as Fort Worth City Secretary Contract
No. 41101 ("Wholesale Contract") which provides for provision of water to Kennedale
by Fort Worth. On or about October 5, 2018 Kennedale notified Fort Worth of its
negotiation and intent to enter into an Agreement with the City of Arlington for water
supply and for operation and maintenance of Kennedale's water and sewer systems.
Kennedale also notified the City of its intent to retain ownership of the water and sewer
assets. This memorandum of understanding seeks to clarify how impact fees would be
assessed by Kennedale in accordance with the terms and conditions of the Wholesale
Contract. This memorandum further seeks to establish initial measures to be taken by
Kennedale and Arlington to prevent the transmission of water supplied by Fort Worth to
Kennedale to be sold and used outside of the Kennedale service area.
II. Impact Fees Collected by Kennedale
A. It is the parties understanding that the infrastructure required for Arlington to
provide water service to Kennedale will take one year to design, construct, and
put into service. Article 16 of the Wholesale Contact provides the process by
which impact fees are collected for customers with multiple water providers.
However, Article 16 does not consider a scenario where a customer served by
Fort Worth would add another surface water supply. Therefore, it is proposed
that Article 16 be revised as follows:
a. FY 19—Kennedale collects 100%of Fort Worth Impact Fee
b. FY 20 — Impact fee collection to be based on a projected flow split
between Fort Worth and Arlington water supplies, that Kennedale
provides Fort Worth by September 30, 2019. Kennedale will be
responsible for ensuring that Arlington manages the water supplies to
comply with the flow split percentage established by Kennedale.
C. FY 21 — Impact fee collection based on the FY 20 actual flow split
between the Fort Worth and Arlington surface water supplies.
d. FY 22 — Impact fee collection based on the FY 21 actual flow split
between the Fort Worth and Arlington surface water supplies.
e. FY 23 — Impact fee collection based on the FY 22 actual flow split
between the Fort Worth and Arlington surface water supplies.
f. FY 24 — Impact fee collection based on the higher of the actual FY 23
flow split between the Fort Worth and Arlington surface water supplies, or
HABoards,Councils,and Committees\UIB\MOU-Kennedale Water Amendmentv2.doc Page 3
the previous three years average (FY 21, FY 22, and FY 23) actual flow
split between the Fort Worth and Arlington surface water supplies.
g. FY 25 and thereafter— Kennedale to perform impact fee collection based
on the requirements contained in Article 16 of the Wholesale Contract
governing impact fee collection for customers with multiple surface water
providers.
III. Resale of Water
A. Article 12 of the Wholesale Contract prohibits the resale of water without the
express written consent of Fort Worth. Fort Worth was recently notified by
Kennedale of Arlington's desire to be able to serve customers, located outside of
Kennedale's city limits, through Kennedale's water system. Kennedale agrees to
provide documentation to Fort Worth of Arlington's water supply to and through
Kennedale.
B. It is Fort Worth's understanding that Kennedale and Arlington expect to finalize
their agreement in the next two weeks. Kennedale enters this agreement with the
understanding that Fort Worth has not granted approval for Kennedale to resell
water provided by Fort Worth to customers located outside of Kennedale's
service area.
C. Kennedale's current water system does not allow for the isolation of the Fort
Worth supply from the proposed Arlington supply. It is anticipated that water
from Fort Worth and Arlington will be commingled once introduced into the
Kennedale water system.
D. To prevent Fort Worth water being sold to users outside of Kennedale, Kennedale
proposes that deduct metering stations with SCADA and telemetry capabilities
would be constructed to ensure that any outflow of water from Kennedale would
not exceed the total inflow of water into Kennedale from the metered Fort Worth
and Arlington supplies, less the Fort Worth supply. This would provide some
level of confidence to Fort Worth that Fort Worth's supply is not being utilized to
serve customers outside of Kennedale. Kennedale agrees to immediate cease any
supply of Fort Worth water outside its service area and to provide a proportional
share of the revenue Kennedale or Arlington receives if Fort Worth water is sold
outside the service area of Kennedale.
E. Any outflow of water from Kennedale must be metered, with metering data
shared with Fort Worth upon request, and will not be taken into consideration
when determining the surface water flow split used to calculate impact fee
collections.
HABoards,Councils,and Committees\UIB\MOU-Kennedale Water AmendmentvIdoc Page 4