HomeMy WebLinkAboutResolution 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
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LLOYO, GOSSELINK, FOWLER, BLEVINS & MATHEWS. ~.i..7' CO' 11'\\1-
ATTORNEYS AT LAW I'" T
,t
I I I CONG"ESS ....VENUE
SUITE t.OO
....USTIN. 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
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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