HomeMy WebLinkAboutContract 29060 CITY SECRETARY )q0t
0NTRA(_-;T INIOX L� �-
AGREEMENT REGARDING WATER AND SEWER UTILITY SERVICE
This Agreement Regarding Water and Sewer Utility Service ("Agreement") is entered
into as of July , 2003 by and between Shelcon Co. fric., 4101 W. Green Oaks Blvd. Suite
305, P%lB 143, Arlington, Texas 76016, hereinafter referred to as "Utility", Lonesome Dove
Development, Ltd., 13241 Harmon Road, Suite C, Fort Worth, Texas, hereinafter referred to as
-Developer", and the City of Fort Worth, a Texas home rule municipality, hereinafter referred to
as the "City".
WHEREAS, Developer is proposing to develop a residential subdivision consisting, of
215 lots, more or less, to be called Mustang Creek Estates (the "Development") on certain land
in Tarrant County, Texas identified on Exhibit "A"to this Agreement, which is in the extra-
territorial Jurisdiction of the City(the "Land"); and
WHEREAS, the Utility wishes to provide retail water service to the Land until water
service from the City is available; and
WHEREAS, no entity presently holds a Certificate of Convenience and Necessity
("CCN") for water service that covers the Land; and
WHEREAS the Utility, the Developer and the City wish to cooperate in providing water
utility service to the Land.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the
parties agree as follows:
1. The Utility will submit its water utility plan for the Development to the City of Fort
Worth Water Department for approval, which approval shall not be unreasonably
withheld, so long as the plan contains the following elements:
a. a demonstration that the Utility can provide an adequate supply of water to the
Land, assuming full build-out of the proposed Development; and
b, the proposed water utility infrastructure meets City system design requirements,
including requirements for fire flow; and
C. meets the requirements of Exhibit B attached hereto.
�ITCEQ")
I riental Quality (
The Utility will file with the Texas Commission on Environn I
and subject to the to and conditions of this Agreement the City will not oppose, a
water CCN application to provide the proposed water utility ser-vice to the Land.
3, The Utility will submit its wastewater utility plan for the Land to the City for approval,
which approval shall not be unreasonably withheld, so long as the plan complies with
City of Fort Worth Ordinance No, 7234, Sewer service is to be provided by individual
septic systerns, and neithei- the Utility nor the Deve lop ff will seek a qewer CCN or will
R I
it ,iri-vW-5,t Z
Seek to construct or operate a sewage treatment plant without agree
the C.ty regarding the speciffications ol'such a plant.
-&;w
4. Upon the City constructing water facilities to the Land and upon 90 days written notice,
the City, at its sole option, may connect the Development's water system to the City's
water system. At the time of the connection, the City will collect impact fees from the
property owner(s) pursuant to its impact fee ordinance then in effect. The Developer
may, in its sole discretion, elect to enter into agreements with each home buyer to (1)
collect from each lot sale an amount equal to City water impact fees then in effect at the
time of the lot sale; (2) deposit the money so collected into an account to be held in
escrow; and (3) at the time of the connection, deliver such escrowed funds to the City,
along with accurate records showing the property owners' names and amounts
contributed by each one. The City agrees to apply such funds delivered to it as a credit
against the impact fees then due under paragraph 5 below. The Developer may utilize
I., Z�
any and all interest earned to pay for bookkeeping, accounting, and management of the
escrow account. The terms of this paragraph 4 are intended solely for the convenience
and benefit of the property owners and Developer; any City assessment or collection of
impact fees shall be governed by Chapter 395 of the Local Government Code, and if any
provision of this paragraph 4 and the Chapter 395 conflict, then Chapter 395 shall
control.
5. As of the date of this agreement, the impact fee for a 3/4-inch meter is $372.05. If the
Developer collects impact fees from any home buyer pursuant to paragraph 4 above,
Developer shall be responsible for the collection of the impact fee in effect at the time the
home buyer connects to the Developer's water system. The impact fees to be collected
upon the connection of the Development to the City water system shall be based upon the
then-existing impact fee schedule. The purchase price of the water distribution for the
Development as stated in Paragraph 7.a. below shall be adjusted upward by the increase,
if any, in the impact fees to be collected upon connection to the City's water system;
provided, however, that such increase, if any, shall be retained by the City as credit for
the increased impact fees to be paid. Any home owner who has not paid an impact to the
Developer pursuant to paragraph 4 above shall be responsible for the payment to the City
of the then existing impact existing as of the date of the connection to City's water
system.
6. Until connection of the Development to the City's system pursuant to this Agreement, the
I
Utility shall read meters, process billing, collect water billing, and operate and maintain
1:1 Z:>
the system with all ,rights privileges and responsibilities associated with ownership of an
Z� 1:�
approved water system in the State of Texas.
7, Upon connection of the Development's water distribution to the City's water system, the
Utility will:
a. convey the water distribution system for the Development to the City for a purchase
price of$10,000;
b, provide the City with the names, addresses, and monthly water meter readings from
all water system custom.-rs at the time the City connects to the water system, and all
water customer deposits,
c, 'ransf r, as of the connectlon date, ownership of and responsibility for the water
rrearment fac'!'des, water fines, 'and and well or wells to the City,of Fort Worth, with
engineenng plans and documents showing the well Construction and any subsequent
53596 i-?
maintenance as well as a certification, signed by a registered professional engineer,
that the well was i
designed and constructed in compliance with applicable law;
n
d. bear the cost of disconnecting or severance of the treatment site to the water
distribution system when the system is connected to the Fort Worth Water System
and when requested by the City,
8. At the time the City connects to the water system pursuant to Paragraph 4 above, the
Utility will cease providing water utility service to the Land, and the City shall have no
other obligations to the Utility or the Developer with regard to the costs, operation,
equipment removal or site restoration of the water utility; however, if the Utility does not
comply with the requirements of paragraph 7(c), then the wells will not be transferred to
the City, and the Utility shall retain ownership and responsibility for such wells. The
City may file any water or sewer sale-transfer-merger application or CCN application or
amendment related to its water or sewer service to the land pursuant to and consistent
with this Agreement, and neither the Utility nor the Developer will protest such
applications.
9. The decision to connect the Development to the City's water system and the timing of
C
such connection(s) shall be in the sole discretion of City.
M The parties agree that the designation Linder this Agreement of areas and customers to be
served by water utility providers is valid and enforceable and may be submitted to the
TCEQ for approval at the appropriate time pursuant to Section 13.248 of the Texas Water
Code regardino, contracts designating areas to be served by retail public utilities. Upon
the City's election to connect its water system to the Land, the City shall deliver to the
TCEQ (or the agency with approval authority at that time) all required notices with
respect to the change in ownership, conveyance of the systems and obtain any approval,
if required, of same. The Utility shall cooperate and assist City to the extent reasonably
necessary in obtaining such consents or approvals.
11. If Developer engages or allows any water utility other than the Utility to provide water
service to the Land, then Developer will first contractually obligate Such provider to the
terms and conditions of this Agreement.
12. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective legal representatives, corporate affiliates, successors and assigns.
13). The parties acknowledge that each party and its counsel have reviewed and revised this
Contract and that the no al rules of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or exhibits hereto.
14� This Agreement constitutes the sole and only agreement of the parties with respect to the
subiect matter her,-of and supersedes any prior understandings or written or oral
agreements among the parties concerning the suk,,ect matter hereof.
56590-1-2
WHEREFORE, PREMISES CONSIDERED, the parties hereto have executed this Ag reement on
the day of 2003. -.
ATTEST: CITY OF FORT WORTH-),
X
BY:
Gloria Pearson Mal- A,
City Secretary Assistant City Manager
APPROVED AS TO FORM AND 0
LEGALITY: 5
contract Authorization
Assistant`City Attorney
ATTEST: SHELCON WATER CO. INC.
A
!'z
BY:
C'
Corporate Secretary Pr'0Q&
Title: x.
11--777
-------------
5-5596-4-2
ATTEST: LONESOME DOVE DEVELOPMENT,
LTD.
By: Le,
Printed Name: " r
Title:
i
.� t f l { ,�g ✓ti
w
AR(I
s
...-
t
91
ZM
Fl 4jI � � J Y. ✓n aA� � �C'�---�
I
gt9ftso3 L..fi �
'b nv_vnx€ta .., .r` r W •,F � 5 a "".eb � � a.�€ ,
M
0
11!31 10>Y F p 3�
X ae- z P
� c� y�x�� °,Ea' �q�fiM9�������¢a��� a'�0�� �°�8_"•
all
BE s�;_' I till x° � I. §x.
$ a o � „ a:^ s spa
z a . Pia €xi x E c& !
tgat i,v�x„ "€��= ax:
x x 0" Ail
t �� €
Jim
al
22, `v >B
x @ € € tea �g [
$
I "aa 2
EXHIBIT "B"
WATER TREATMENT FACILITY SPECIFICATIONS
T.C.E.Q. Design Standards estimated to be:
• 215 Customers
• 3.5 PeopleIA-4eter
• 753 People
• 215 gallons'Iday/person—Fort Worth
• 162,000 gallons''day— Fort Worth
• 246 gallons/day/person—TNRCC
• 185,000 gallons/day—TNRCC
Anticipated Facilities:
• Three Paluxy Water Wells or Alternate
• Annex Trinity and I Paluxy Water Well
• Annex Ground Storage 46,000 Gal.
• Annex pumping station with treatment facilities. Treatment site 100 +/- x 100 fenced
a second and third remote well site (maybe) sanitary control easement. A 10", 8" and 6"
R.V.C. water lines, fire hydrants, values, meters, etc.
565964-2
City of Fort Worth, Texas
emuvar ,end council commu"icatio"
DATE REFERENCE NUMBER L0G NAME PAGE
6/24103 **G-14005 I 60MUSTANG 1 of 2
SUBJECT AGREEMENT FOR WATER AND SEWER SERVICES FOR THE MUSTANG CREEK
ESTATES DEVELOPMENT, LOCATED IN THE CITY'S EXTRA-TERRITORIAL
JURISDICTION IN SOUTHWESTERN TARRANT COUNTY
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an agreement with
Lonesome Dove Development, Ltd. regarding the construction and operation of water and sewer
utilities to serve the Mustang Creek Estates development in southwestern Tarrant County.
DISCUSSION:
The Mustang Creek Estates (the Development) is a proposed 109 acre, 80 lot development that lies
within the City's extra-territorial jurisdiction (ETJ), but outside the City's existing water Certificate of
Convenience and Necessity (CCN). The area currently is approximately seven miles from the City's
existing water distribution system. Lonesome Dove Development, Ltd. (the Developer), whose general
partner is Hilltop, LLC, and A+ Water Works (the proposed water Utility provider) would like to enter into
a contract with the City that provides for the Utility and the Developer:
(1) to construct, upon Water Department approval of the plans, a water system for the Development
that will meet all City design requirements; and
(2) to demonstrate that the system will provide an adequate supply of water to the Development
upon full build out; and
(3) to construct, upon Water Department approval of the plans, a wastewater utility system for the
Development that will meet all City design requirements and subdivision ordinances, for sewer
service to be provided by individual septic systems.
The agreement will also give the City the option, upon construction of water distribution lines in the area
and 90 days written notice, to purchase and connect its water system to the Development's water
system for a fixed purchase price of $10,000. The decision to connect the Development to the City's
water system and the timing of the connection will be in the sole discretion of the City. The agreement
further provides that neither the Developer nor the Utility will oppose any City application for a water or
sewer CCN consistent with the terms of the agreement. The agreement also states that the Developer,
for the benefit of the landowners, may choose to maintain an escrow account to be applied toward the
payment of impact fees to the City at such time as the impact fees may properly be assessed and
collected by the City.
This agreement is consistent with the City's water and wastewater master plans and promotes the
cooperation of the Developer and the City in the orderly provision of water and sewer services to this
area of the ETJ until City water and sewer services are available.
GO of Fort Worth, Texas
Imagor a"d cou"Cil commmu"icatio"
%No*,
DATE REFERENCE NUMBER L G NAME PAGE
6/24/03 **G-14005 I 60MUSTANG 1 2 of 2
SUBJECT AGREEMENT FOR WATER AND SEWER SERVICES FOR THE MUSTANG-CREEK
ESTATES DEVELOPMENT, LOCATED IN THE CITY'S EXTRA-TERRITORIAL
JURISDICTION IN SOUTHWESTERN TARRANT COUNTY
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on the City's funds.
MO:r
Submitted for City Martager's I FTIND ACCOUNT CUNTER AIMOtINT CITY EC
Office by:
------------
Mare Ott 8476
Foriginating-f)epartment Head-
Mae bell Brown(Acting) 820 (from) APPROVED 06LM/033
------------------------
I fnforl��
p
�Ad di i t_io n, 'ation 6,ntact
lay ell Brown(Acting) 8707