HomeMy WebLinkAboutContract 47149 INTERLOCAL AGREEMENT
BETWEEN
CITY OF COLLEGE STATION
AND THE CITY OF FORT WORTH
THIS AGREEMENT 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 "CFW"), acting herein by and through its duly
authorized Assistant City Manager, and the CITY OF COLLEGE STATION (hereinafter
referred to as"CCS").
WHEREAS this Agreement is made under the authority granted by and pursuant to
Chapter 791 of the Texas Government Code; and
WHEREAS, in 2015, the CCS, approved an amended oil and gas ordinance, Code of
Ordinances, Chapter 4, Section 4-13 Oil and Gas Regulation,the CCS city engineer may retain an
independent contract inspector(s)that serve(s)as the city oil and gas inspector(s).
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 CFW and the CCS desire that the CFW perform such oil and gas
inspection services at the CCS; 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
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 1
CFW OBLIGATIONS
§1.01 The CFW shall:
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1. Provide all labor,materials,equipment,personnel, supervision and management for oil
and gas well inspecting service at the CCS,pertaining to site inspection for each oil and
gas location;
2. Make an oil and gas well inspector available on an"on-call"schedule,at the CFW's
earliest reasonable availability;
3. Notify designated CCS personnel and well operator and driller personnel of emergencies
known to the CFW;provided that the CFW shall not be required to provide emergency
response services;
4. Provide general site inspections to commence as the drilling and completion operations
starts on each pad site;
5. Carry out general site inspections annually:
a. Compliance with CCS Ordinances,Chapter 4 Oil and Gas Exploration
and production, Sections 4-13 as regards surface conditions,as amended;
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,as amended;
C. Onsite equipment conditions for damage,saltwater leaks and general
maintenance;
d. Impromptu check of tank contents for sour gas(H2S);
e. Check for NORM(Naturally Occurring Radioactive Material); and
f. Site conditions recognized as a potential public safety hazard.
6. Report hazardous or environmental conditions associated with surface contamination to
designated CCS Engineer.
7. CFW shall report the inspection results directly to CCS, and CFW shall not be
responsible for enforcing any of CCS's regulations or city code.
ARTICLE 2
CCS OBLIGATIONS
§2.01. The CCS shall provide:
1. Access to each pad site on a 24 hour,seven day a week basis;
2. A single point of contact for CFW who will coordinate with all involved CCS
departments;
3. Relevant CCS staff list with title, name, phone, email and location map to
office sites;
4. 24-hour emergency contact numbers and names for Oil and Gas Operators;
5. Location coordinates and attribute information for each pad site and well;and
6. File sharing as necessary to complete the scope of services;
ARTICLE 3
FEES
§3.01. The CCS shall pay:
1. An inspection fee of$1000 per new well, for each required new well inspection,
per the ordinance;
2. An annual permit renewal inspection fee of$850 for each wellbore existing on
January 1st of each calendar year;
3. Emergency overtime costs, eight (8) hour minimum, of $125 per hour,
commencing at the time the inspector receives the call for onsite assistance from
authorized CCS officials; and
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4. Reimbursement for the actual cost of travel to and from College Station including
lodging, transportation and meals as allowed by CFW travel policy (i.e. no
reimbursement for alcohol or entertainment purchases). Cost of travel estimated
at$300.00 for each visit that requires an overnight stay.
§3.02. The fees schedule may be amended by mutual agreement of the CFW and The CCS.
§3.03. The CFW shall submit invoices annually to the CCS, mailed on or about the I" of
February each year, or as necessary. Invoices shall be submitted to the City of College Station
City Engineer,at the address indicated below.
§3.04. Payment for CFW's services shall be due within 30 days from receipt of invoice.
ARTICLE 4
TERM AND TERMINATION
§4.01. This Agreement shall be effective when signed by the last parry who's signing makes the
Agreement fully executed and will remain in full force and effect until December 31, 2016. This
Agreement shall renew for successive one-year terms automatically unless sooner terminated in
accordance with the provisions of this Agreement. The conditions set forth below shall apply to
the initial term and all renewals. Notwithstanding this provision, either party may modify or
terminate this Agreement as provided herein.
§4.02. Either Party may terminate this Agreement at any time for convenience, upon thirty (30)
days written notice to the other Party.
ARTICLE 5
CLAIMS/WAIVER OF IMMUNITY
§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. Governmental Immunity. It is expressly understood and agreed that, in the execution of
this Agreement, neither of the parties waives,nor shall be deemed hereby to waive, any immunity
or defense that would otherwise be available to it against claims arising in the exercise of
governmental powers and functions.
§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 CCS 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 CFW other than claims for which liability may be imposed by the Texas
Tort Claims Act.
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ARTICLE 6
GENERAL PROVISIONS
§6.01. 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
requested, at the addresses shown below, unless and until the Parties are otherwise notified 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 CFW:
City of Fort Worth
Planning and Development Department
Support Services Division,Gas Drilling Section
1000 Throckmorton Street
Fort Worth,Texas 76102
With copy to:
Christa Lopez-Reynolds
Sr.Assistant City Attorney
1000 Throckmorton Street
Fort Worth,Texas 76102
The CCS:
City of College Station
City Engineer
P.O. Box 9960
College Station, Texas 77842
(979) 764-5007
AGibbs@b,c is
With copy to:
City of College Station
Legal Department
P.O. Box 9960
College Station, Texas 77842
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.
§6.02. Nondiscrimination. Neither the CFW nor the CCS, nor any of their officers, members,
agents, employees, program participants, or subcontractors, while engaged in performing this
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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 CFW and the CCS agrees 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.
§6.03. No Partnership or Joint Venture. The CFW shall operate hereunder as an independent
contractor and not as an officer, agent, servant, partner or employee of the CCS. The CFW 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 CFW nor the
CCS shall be responsible under the doctrine of respondent superior for the acts or omissions of
the officers,agents,servants,contractors,subcontractors,or employees of the other party.
§6.04. 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 CFW's or the CCS's control, or 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.
§6.05. Successors and Assigns. 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.
§6.06. 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 CFW or the CCS in connection with the rights and
obligations contained in the valid covenants,conditions or provisions of this Agreement.
§6.07. 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.
§6.08. 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.
§6.09. Non-Liability for Other Parties Obligations 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 or litigation that may arise in
connection with this Agreement.
§6.10. 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.
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§6.11. 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.
§6.12. 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.
§6.13. 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 µ
day of ,r 2015.
CITY OF FORT WORTH CITY,0�COLLEGE STATION
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By:, h Kell E.Tem lln
Fernando Costa � � � Y 1�
Assistant City Manager City Manager
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ATTEST:
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By
Maly Kayseri1'e y Ma burn
City Secretary: City Secretary
APPROVED AS TO FORM APPROVED AS TO FORM
AND LEGALITY AND E LITY
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Assistant City Attorney i Attorney
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Date
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M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA
FORT WORTH
COUNCIL ACTION: Approved on 10/13/2015
DATE: 10/13/2015 REFERENCE C-27506 LOG NAME: 06CITY OF COLLEGE STATION
NO.: INTERLOCAL AGREEMENT
CODE: C TYPE: NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Interlocal Agreement to Provide Gas Well Inspections and Related Services to
the City of College Station (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize an Interlocal Agreement with the City of College
Station to provide gas well inspections and related services.
DISCUSSION:
In 2015, the City of College Station, Texas adopted oil and gas regulations which allow the city
engineer to retain an independent contract inspector(s) that serve(s) as the city oil and gas inspector
(s).
Similar to Fort Worth's own regulations, College Station's code of ordinances provide for 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 resources.
Chapter 791 of the Texas Local Government Code authorizes local governmental entities to enter
into Interlocal Agreements for the performance of the governmental functions, including
administrative functions such as the inspection of oil and gas production operations and
facilities. This Agreement authorizes the Gas Well Section of the City's Planning and Development
Department to perform oil and gas inspections and related services in the City of College Station and
establishes related fees. However, the Agreement specifically states that Fort Worth shall have no
responsibility for enforcing College Station's regulations.
The cities 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 of functions to
be provided under this Agreement. It is anticipated that inspections at College Station will be
possible with existing City of Fort Worth Staff. Any future resource enhancements will also be fully
offset through appropriate fees.
Annual inspections will generate approximately $14,000.00 in revenue, based upon 16 wells at
$850.00 per well, and will require approximately 40 hours of inspection time per year. Travel and
overnight stay will be reimbursed on an actual cost basis, with the estimated cost per visit being
$300.00. Call out inspections are $1,000.00 per inspection with an eight-hour minimum, but this is
estimated to occur no more than twice per year.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above
recommendation, funds will be available in the Fiscal Year 2016 Operating Budget, as appropriated,
of the General Fund, Planning and Development Department for expenses associated with this
Agreement. Estimated receipts are projected at$14,000.00 annually.
TO
http://apps.cfwnet.org/council_packet/Mc_review.asp?ID=21504&councildate=l 0/13/2015 10/19/2015
M&C Review Page 2 of 2
Fund Department Account Project + Program Activity Budget Reference# I Amount
ID ID I Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID Year Chartfield 2
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Alondra Salas (2851)Tom Edwards (2314)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=21504&councildate=10/13/2015 10/19/2015