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HomeMy WebLinkAboutContract 38705 (2)c1TY SECRETAr:. NTRAtC T No EXTENSION OF INTERLOCAL AGREEMENT BETWEEN DALLAS / FORT WORTH INTERNATIONAL AIRPORT BOARD AND THE CITY OF FORT WORTH THIS EXTENSION AGREEMENT is entered into as %J the date set forth below by and between the CITY OF FORT WORTH, a home rule municipal corporation of the State of Texas located within Tarrant, Denton, Parker and Wise Counties, Texas (hereinafter referred to as the "City"), and the DALLAS / FORT WORTH INTERNATIONAL AIRPORT BOARD, A Joint Airport Board of the Cities of Dallas and Fort Worth (hereinafter referred to as "the Board"). WHEREAS the City and the Board entered in an Interlocal Agreement ("City of Fort Worth Contract No. 35362"), pursuant to Chapter 791 of the Texas Government Code, for the City to perform oil and gas inspection services at the Airport for a Term of May 1, 2007 through April 30, 2009; WHEREAS, the City and the Board wish to continue in their relationship and desire to amend the Agreement for the purpose Q f extending the term; WHEREAS Fort Worth M&C G23520, approved May 19, 2009 and Airport Board Resolution No. 2009-04-063, approved April 2, 2009, approved a two-year extension thereof; NOW, THEREFORE, KNOW ALL PERSONS BY THESE PRESENTS: That the City and the Board do hereby agree to amend and renew the Agreement as follows: 1. That City Secretary Contract No.35362, is hereby amended to extend the term of the Agreement. ARTICLE 4 —TERM is hereby amended to add a second paragraph to read as follows: §4.02 In addition, by agreement of the Parties, this Agreement is extended through April 30, 2011, subject to earlier termination as provided herein. That all other terms and conditions of City Secretary Contract No.35362, not expressly amended herein, shall remain in full force and effect throughout the term of this Agreement. IN WITNESS WHEREOF, the parties hereto have made and entered into this Agreement this 17�ay of , 2009, in Fort Worth, Tarrant County, Texas CITY OF FORT WORTH By: T.M. Higgins vv Assistant City Manager Fort Worth Date: S�Zo�D q Approved as to form and legality: Assistant City Attorney Fort Worth Attested: Fort Worth City Secretary M&C C-23520 DALLAS /FORT WORTH INTERNATIONAL AIRPORT BOARD Approved aslo form and legality: By:�� dqffrOy P. Vegan � Chief Executive Officer DFW Airport General Counsel Attested: Airport B Secretary 2 M&C Review Page 1 of 2 DATE: 5/19/2009 CODE: C REFERENCE NO.: **C-23520 TYPE: CONSENT LOG NAME: PUBLIC HEARING: Offcia[ site of the CRy tit Fork. k-,)tth, I exas 12GAS WELL INSPECTIONS SUBJECT: Authorize a Two Year Extension to the Interlocal Agreement Between the Dallas/Fort Worth International Airport Board and the City of Fort Worth to Provide Gas Well Inspector Service at Dallas/Fort Worth International Airport RECOMMENDATION: It is recommended that the City Council authorize a two year extension to the Interlocal Agreement, City Secretary Contract No. 35362 between the Dallas/Fort Worth International Airport Board and the City of Fort Worth to provide Gas Well Inspector Service at Dallas/Fort Worth International Airport. DlscussloN: On May 22, 2007, Council authorized an Interlocal Agreement with Dallas/Fort Worth International (DFW) Airport providing gas well inspector service at DFW. This Interlocal Agreement provided for two two-year extensions. DFW Airport has requested the first of these two-year extensions. In 2006, Dallas/Fort Worth International Airport Board (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 DFW Airport's 18,000 acres. Board Resolutions Nos. 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 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. The City and the Board have determined that the continuation of 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. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. http://apps.cfwnet.org/council�acket/mc_review.asp?ID=11778&councildate=5/19/2009 6/17/2009 M&C Review Page 2 of 2 TO Fund/ACCOUnt/Centers Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ATTACHMENTS FROM Fund/Account/Centers Karen Montgomery (6222) David Yett (7623) Charlene Sanders (7611) http://apps.cfwnet.org/council�acket/mc review.asp?ID=11778&councildate=5/19/2009 6/17/2009 TO: Cathy Nevans, Legal Department FROM: Allison Tidwell, City Secretary's Office DATE: May 27, 2009 SUBJECT: GAS WELL INSPECTOR SERVICE AT D/FW INTERNATIONAL AIRPORT These documents are being forwarded to you for original signatures from the Dallas/Fort Worth International Airport Board. All signed copies of the contract must be returned with original signatures for final processing. Failure to return the documents will delay the final processing of the contract. Once we have received all of the documents, we will assign a contract number. Thank you in advance for your cooperation. If you have any questions, please call me at 817-392-6090. Attached: 4 sets :. Sim INTERLOCAL AGREEIVIENT BETWEEN DALLAS / FORT WORTH INTERNATIONAL AIRPORT BOARD OF DIRECTORS AND THE CITY OF FORT WORTH THIS AGREEMENT is made entered into this theak;L'� day of , 2007, by and between the CITY OF FORT WORTH, a home rule municipal corporation of t e State of Texas located within Tarrant, Denton, Parker and Wise Counties, Texas (hereinafter r ferred 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 authority 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 Foxt Worth, entered into a lease with Oklahoma Citywbased Chesapeake Energy Corporation for the natural ;as 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 Ciiy of Dallas Ordinance No. 26410 and City of Fort Worth Ordinance No. 17049-07-2006, adopted the DFW Airport Construction and Fire Prevention Standards, Fart Nine - Oil and Gas Exploration and Production, for ail 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 perfarrnance of gaverzzznental fitnetions, 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 pez•%nn 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 ox those payments from. current revenues legally available to that party; and WHEREAS each governing body rinds that the subject of this Agreement is necessary for the benefit 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 WHEREAS each governing body finds 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 11 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 meetings of the Board as requested; and d. Reply to related public information requests. 2. Maintain a gas well inspector available on an "on -call" 2417 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. S. 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 1447 as regards surface conditions; b. Compliance with the rules of the Texas Administrative Code (TAC) Title Mop Economic Regulation, Part l-Railroad Commission of Texas, Chapter 3-Oil and Gas Division; Q. Onsite equipment conditions for damage, saltwater leaks and general maintenance; d, Wellhead pressure; e. Impromptu check of tank contents for sour gas; f Check for NORM (Naturally Occurring Natural Radiation); and g, Site conditions recdgnized as a potential public safety hazard. 6. Report hazardous �or,�A environmental conditions associated with surface contamination to designated Board personnel. §2,O1. The Board shall provide: 1. Access to the airport and each pad site on a 24 hour, seven day a week basis; 2. Seeuriiy clearance, badge, driving classes and other required training and, if needed, an escort to secured areas; 3. Assistance and advice by Fire, Security, Environmental and other DFW departments involved with gas well drilling and production activities, �a �#. Relevant Dl?W staff Iist with title, name, phone, email and location map to office sites; 5, 24whour 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; �. pile sharing as necessary to complete the scope of services; 9. Coordinate 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 11. Issuance of Airport permits for: a. Gas well pad sites located on the airport, b. Gas wellbore and tank facilities, c. T'reshwater 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. a>r��rzcLE ss FEES §3.01. The Board shall pay: 1. A commencement fee of $b50 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 I nspections. §3.02. The fees schedule maybe amended by mutual agreement'of the City and The Board. §303. The City shall submit invoices quarterly to the Board, mailed an or about the 1S` 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. §104, Current Revenues. Pursuant to-1791.011 of the bterlocal 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, 3 IVY&C'Review Page 1 of 2 Official site of the City of Fort Worth, Texas DATE: 5/19/2009 CODE: C REFERENCE NO.: **C-23520 TYPE: CONSENT LOG NAME: PUBLIC HEARING: 12GAS WELL INSPECTIONS SUBJECT: Authorize a Two Year Extension to the Interlocal Agreement Between the Dallas/Fort Worth International Airport Board and the City of Fort Worth to Provide Gas Well Inspector Service at Dallas/Fort Worth International Airport RECOMMENDATION: It is recommended that the City Council authorize a two year extension to the Interlocal Agreement, City Secretary Contract No. 35362 between the Dallas/Fort Worth International Airport Board and the City of Fort Worth to provide Gas Well Inspector Service at Dallas/Fort Worth International Airport. DISCUSSION: On May 22, 2007, Council authorized an Interlocal Agreement with Dallas/Fort Worth International (DFW) Airport providing gas well inspector service at DFW. This Interlocal Agreement provided for two two-year extensions. DFW Airport has requested the first of these two-year extensions. In 2006, Dallas/Fort Worth International Airport Board (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 DFW Airport's 18,000 acres. Board Resolutions Nos. 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 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. The City and the Board have determined that the continuation of 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. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers http://www.fortworthgov.org/council�acket/mc review.asp?ID=11778&councildate=5/19/2009 5/19/2009 IVI&C`Review Submitted for City Manager's Office bv: Karen Montgomery (6222) Page 2 of 2 Originating Department Head: Additional Information Contact: ATTACHMENTS David Yett (7623) Charlene Sanders (7611) http://www.fortworthgov.org/council�acket/mc review.asp?ID=11778&councildate=5/19/2009 5/19/2009