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Home My WebLink AboutResolution 1996-035 RESOLUTION NO. 96-35 WHEREAS, the City Manager, City Attorney, Director of Public Works and Councilman, Mark Wood, have been engaged in a mediation process for the past two weeks in an attempt to settle Cause No. 236-155408-94 in the 236th District Court of Tarrant County; and WHEREAS, the said mediation team for the City has arrived at a proposed settlement with the mediation team from the City of Watauga; and WHEREAS, said mediation team has presented the proposed agreement to the City Council of the City of North Richland Hills; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The settlement of Cause No. 236-155408-94 pursuant to the terms brought back from the mediation and presented to the Council be and is hereby approved. 2. The City Manager is authorized to execute the necessary agreements, judgments and other documents necessary to settle said lawsuit, pursuant to the terms of the mediated agreement, a copy of which is attached hereto and made a part hereof. PASSED AND APPROVED this 23rd day of April, 1996. APPROVED: ~ Tommy Brow Mayor ATTEST: ~afi~ atricia Hutson, City Secretary Rex McEntire, Attorney or the City RATIFIED BY RESOLUTION 96-42, passed on June 24, 1996 to certify which WITNESS MY HAND AND SEAL OF THE CITY ~25thday of June, 1996. SEAL ~~t:i ~ City Secretary k t:4Z~¿ or- ø~ ~ ln~~ ~ 'ti- ~"fL. ~ ~~.1>\. · ~~ ,Ii .. . II: -. Z ~ ~ t:t.... /~ "t¡- __"'_'__" ., '- ~ ~ -r:- ~ ~ ~ -. _J --<-. ~ .. _.._."...._..H.__~.".....·,. .+ ------ / _f~ 'if l' 4.~~ ÂA-A-·"-'ï9.7~]:;j_. g z · ..;!)~ <--t ~ 't;; ~ ~ ;J;- ~:. - Æ \v~~Oe-oa('d-)~ ~ ..- 3.. ~...;t ~ 'k~ f)~ ~~) ....;..".t~~~ ~ ~ "~J -e-~ F'tr..~JA1 . w.:J1L r:-' -¡: . r 'p ---'1: ~~~".¡~-~~L-J~ t ~_. ~ ~.~~~~~ "#u. ~ ~ _~ t:k 1--0 ~ ~ 4.. 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TEXAS 78701 TELEPHONECSI21322-S800 TELECOPIE" (S121 472-0S32 April 8, 1996 III SOLED....D STREeT· SUITE 300 SAN ....NTONIO. TEXAS 7820S TELEPHONE (2101212-5... TELECO,"IE" (2101212-5... 'BY APPOINTMENT ONLY Mr. Rex McEntire City Attorney City of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 FOR SETTLEMENT DISCUSSION PURPOSES Re: Cause No. 236-155408-94, The City of Watauga, Texas v. The City of North Richland Hills, Texas in the 236th Judicial District Court of Tarrant County, Tèxas Dear Rex: This letter is to confirm our discussion Friday concerning various issues involved in the transfer of the water and wastewater system from North Richland Hills to the City of Watauga if the parties are able to reach an agreement on the sale of the systems. The following is a summary of our discussion concerning various issues: 1. Who will own the shared facilities is unresolved. a) NRH has proposed that it would retain ownership of the facilities set forth in its Resolution 94-41 but share their use with Watauga. b) Watauga has proposed that North Richland Hills would own ail the facilities listed in Resolution 94-41 except the Denton Highway, D.L. Hail, and Hightower Transmission Lines. Watauga would own the D.L. Hail, Denton Highway, and Hightower Road mains and share their use. Although the Chapman Road and Starnes Road mains were not included in Resolution 94-41, Watauga would share those facilities with North Richland Hills if it so desires. However, Watauga would not charge North . Richland Hills any O&M costs associated with the operation of the shared facilities owned by Watauga. 2. Watauga would pay a portion of the O&M on the shared facilities owned by North Richland Hills based on Watauga's percentage of the total volume of flow. Watauga would not charge North Richland Hills for O&M on the shared facilities owned by Watauga. 3. Watauga would pay North Richland Hills a transportation charge for the use of the shared facilities that North Richland Hills owns based on the useful life of those shared facilities. The transportation charge paid by Watauga would be escrowed for the replacement of those shared facilities. Mr. Rex McEntire April 8, 1996 Page 2 4. North Richland Hills and Watauga would enter into an agreement for use of the shared facilities for a term to be tied to the life of the facilities and any replacement facilities or the outstanding bonds associated with the facilities, whichever is longer. 5. Watauga would pay North Richland Hills for the system as soon as the bonds could be issued and sold. At that time, Watauga would get title to the facilities but would contract with North Richland Hills for the operation and maintenance of the systems for a transition period of approximately 18 to 24 months. Watauga would get the revenues from the system during the transition period. Also, all accounts and deposits would be transferred to Watauga at the end of the transition period. 6. Watauga would pay for the installation of the subtraction meters but North Richland Hills would own the meters. North Richland Hills would pay for the operation and maintenance of the subtraction meters. Replacement of the subtraction meters will be on the same basis as the replacement of the meter for delivery of water to North Richland Hills from Fort Worth according to that contract. 7. North Richland Hills would convey the facilities back by quitclaim deed or a special warranty deed but not by a general warranty deed. 8. North Richland Hills would transfer any easements that it holds for the water and wastewater system. 9. Watauga would give North Richland Hills the right to condemn property in Watauga for future water and wastewater improvements to be made to North Richland Hills' system and the right to use public rights-of-way in Watauga upon a condition that North Richland Hills would pay for any construction in returning the streets to their previous condition. 10. Watauga will give North Richland Hills a preliminary plan for separation of the system for review. The engineers will discuss the specific requirements. 11. Watauga and North Richland Hills will discuss the method of determining each city's share of demand charges. The engineers for the cities will arrive at a method for determining the share of demand charges during the period of transition and after transition. 12. Watauga and North Richland Hills will share the cost of a study to update the impact fee in North Richland Hills and Watauga on a 50/50 basis. Mr. Rex McEntire April 8, 1996 Page 3 13. The cost of the investigation of the wastewater facilities being conducted in response to the EP A's Administrative Order will be recovered by a surcharge to all of the customers of North Richland Hills and Watauga. 14. North Richland Hills will consult with Watauga regarding the progress of the wastewater investigation. 15. North Richland Hills will sell the customer meters to Watauga for an amount to be determined by North Richland Hills and Watauga staff. 16. North Richland Hills and Watauga will work together to obtain the clarification of the water contract with the City of F ort Worth as it relates to the separation of the water system. 17. Watauga will contract separately with the City of Fort Worth for wastewater servIce. 18. North Richland Hills and Watauga will work together on the transfer of the Certificates of Convenience and Necessity for the water and wastewater systems. 19. North Richland Hills will propose an agreement for the handling of an emergency connection. Please let me know if I have incorrectly stated the substance of our discussion on these . issues. Many of the above proposals by Watauga have not been considered by North Richland Hills. After North Richland Hills' consideration of these proposals, please let me know which of the issues can be resolved outside of mediation and which need to be submitted to the mediator for resolution. I look forward to hearing from you concerning these issues. Yours truly, RL T/jmc 1212\OOO-108.LTR Enclosure cc: Lee Maness Mark Daniels Bill Lewis III CONGRESS AVENUE SUITE 1800 AUSTIN, TEXAS 78701 TELEPHONE (5121 322-5800 TELECOPIER (5121 472-0532 III SOLEDAD STREET· SUITE 300 SAN ANTONIO, TEXAS 78205 TELEPHONE (2101212-5888 TELECOPIER (2101212-5888 -IY APPOINTMENT ONLY <~ "'. '-(2 ~ LLOYD, GOSSELINK, FOWLER, BLEVINS & MATHEWS, P. C. ATTORNEYS AT LAW April 22, 1996 FOR SETTLEMENT DISCUSSION PURPOSES VIA FACSIMILE Mr. Rex McEntire City Attorney City of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 Re: Cause No. 236-155408-94, The City of Watauga, Texas v. The City of North Rich/and Hills, Texas in the 236th Judicial District Court of Tarrant County, Texas Dear Rex: After our mediation session on Wednesday, Lee Maness pointed out a misstatement in my letter to you of April 8, 1996. The misstatement concerned the subtraction meters that Watauga would install. Lee has confirmed my misstatement of the understanding between Watauga and North Richland Hills concerning this issue with Greg Dickens. In April 8 letter, I stated the following in item no. 6: 6. Watauga would pay for the installation of the subtraction meters but North Richland Hills would own the meters. North Richland Hills would pay for the operation and maintenance of the subtraction meters. Replacement of the subtraction meters will be on the same basis as the replacement of the meter for delivery of water to North Richland Hills from Fort Worth according to that contract. The corrected statement of understanding concerning the subtraction meters is as follows: 6. Watauga would pay for the installation of the subtraction meters, but North Richland Hills would own the meters. North Richland Hills would pay for the operation, maintenance, testing, and replacement of the subtraction meters. Watauga will consult with North Richland Hills concerning the design of the subtraction meters. Mr. Rex McEntire April 22, 1996 Page 2 Please let me know if I have incorrectly stated the understanding between Watauga and North Richland Hills concerning the subtraction meters. Yours truly, RL T/jmc 1212\OOO-llO.LTR cc: Lee Maness Mark Daniels Bill Lewis Clyde Ashworth