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Item 4G - westlake ILA CITY OF SOUTH LAKE MEMORANDUM Item 4G (June 1 , 2016) To: Shana Yelverton, City Manager From: Ben Thatcher, Assistant City Manager Subject: Item 4G - Interlocal Agreement with the Town of Westlake for the provision of sanitary sewer services. Action Requested: Approval of an Interlocal Agreement for the provision of sanitary sewer services connected to the N-1 sanitary sewer collector main in the Town of Westlake. Background Information: The purpose of this interlocal agreement is to update the method Southlake uses to recover the cost of waste water treatment. In 1995, with the development of The Coventry Subdivision, the Town of Westlake and the City of Southlake agreed to participate in the construction of the N-1 sewer main. Through that agreement, Westlake purchased capacity in a portion of the main but not ownership of the main. In 1999 a second interlocal agreement provided for the connection of the Glenwyck Farms Addition through an area sewer meter and established rates for Southlake to recover the cost for waste water treatment. The agreement presented today provides a means for Southlake to bill for unmetered sewer connections to the N-1 sewer main in Westlake. Westlake agrees to pay for the Trinity River Authority base rate that Southlake is charged plus a ten percent (10%) administrative fee. This agreement also acknowledges Westlake's approval for a portion of the waste water from the Southlake Meadows Subdivision to flow through the Terra Bella Subdivision in Westlake before entering the N-1 main at no cost to the City of Southlake. Financial Considerations: This interlocal agreement updates the method Southlake uses to recover the cost of waste water treatment. Strategic Link: B2 — "Collaborate with select partners to implement service solutions." Honorable Mayor and City Council Item 4G, Page 2 of 15 Citizen Input/ Board Review: Not Applicable. Legal Review: City attorney has reviewed the agreement. Alternatives: 1) Approve as proposed. 2) Reject — Both Cities would need to develop sewer connections within their own City limits. Supporting Documents: Interlocal Agreement with Westlake. Staff Recommendation: Approve item as proposed Honorable Mayor and City Council Item 4G, Page 3 of 15 INTERLOCAL AGREEMENT FOR THE PROVISIONS OF SANITARY SEWER SERVICES CONNECTED TO THE N-1 SANITARY SEWER COLLECTOR MAIN IN THE TOWN OF WESTLAKE STATE OF TEXAS § COUNTY OF TARRANT § THIS AGREEMENT is made and entered into by and between the Town of Westlake, Texas, a Type A general law municipal corporation, located in Tarrant County, Texas (hereinafter referred to as "Westlake") and the City of Southlake, Texas, a home rule municipal corporation, located in Tarrant County, Texas (hereinafter referred to as "Southlake"). WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, authorizes city governments in the State of Texas to contract with one another for the provision of various governmental functions and the delivery of various governmental services, including those in the area of public health, sanitation, and utility services; and WHEREAS, Westlake and Southlake desire to provide sanitary sewer service to the citizens of the respective municipalities by not duplicating services; and WHEREAS, pursuant to a prior interlocal agreement dated August 29, 1995 (the "1995 Agreement"), Westlake and Southlake currently share capacity in a portion of Southlake's sanitary sewer collector main, commonly referred to as "N-1 collector main" and is located within the N-1 drainage basin (the "N-1 collector main") depicted on Exhibit "A" attached hereto; and Honorable Mayor and City Council Item 4G, Page 4 of 15 WHEREAS, pursuant to another interlocal agreement between the municipalities dated August 6, 1999 (the "1999 Agreement"), after two years from the date Glenwyck Farms tapped the N-1 collector main Westlake agreed to pay Southlake twice the rates Southlake is required to pay the Trinity River Authority ("TRA") for wastewater treatment in the Denton Creek System; and WHEREAS, Southlake pays for the cost for treatment of all the wastewater transported through the N-1 collector main; and WHEREAS, Westlake has constructed sanitary sewer facilities to serve the Glenwyck Farms, Vaquero, Granada, and Terra Bella subdivisions located in the town limits of Westlake and within the N-1 drainage basin; and WHEREAS, wastewater flows from the Glenwyck Farms, Vaquero and Granada subdivisions are measured by an area wastewater meter; and WHEREAS, wastewater flows from the Carlyle and Terra Bella subdivisions are not measured by area wastewater meters prior to the points of connection to the N-1 collector main; and WHEREAS, Westlake has agreed that a portion of the waste water flow from the Southlake Meadows addition in Southlake may flow through the Terra Bella subdivision sewer collection system prior to entering the N-1 collector main; and WHEREAS, Westlake and Southlake mutually desire to be subject to the provisions of the Interlocal Cooperation Act and other applicable statutes and contract pursuant thereto. NOW, THEREFORE, for the mutual consideration herein stated, Westlake and Southlake agree as follows: Honorable Mayor and City Council Item 4G, Page 5 of 15 1 Wastewater Southlake agrees to receive and discharge normal domestic wastewater from properties within Westlake, specifically, the normal domestic wastewater from the portion of the N-1 drainage basin located within Westlake. For purposes of this Agreement, "normal domestic wastewater" shall mean wastewater excluding industrial wastewater and any commercial wastewater which would require pretreatment by TRA unless that wastewater is adequately pretreated to meet TRA's requirements. Westlake agrees to take all reasonable and necessary steps to prevent industrial wastewater and commercial wastewater which would require pretreatment by TRA from entering Southlake's wastewater system, including the passage of any necessary regulatory measures to prohibit such discharge, or to adequately pretreat such wastewater to meet TRA's requirements prior to its entry into Southlake's wastewater system. Westlake agrees to receive and discharge normal domestic wastewater from properties within Southlake, specifically, the normal domestic wastewater from the portion of the southlake Meadows subdivision located within Southlake. For purposes of this Agreement, "normal domestic wastewater" shall mean wastewater excluding industrial wastewater and any commercial wastewater which would require pretreatment by TRA unless that wastewater is adequately pretreated to meet TRA's requirements. Southlake agrees to take all reasonable and necessary steps to prevent industrial wastewater and commercial wastewater which would require pretreatment by TRA from entering Westlake's wastewater system, including the passage of any necessary Honorable Mayor and City Council Item 4G, Page 6 of 15 regulatory measures to prohibit such discharge, or to adequately pretreat such wastewater to meet TRA's requirements prior to its entry into Westlake's wastewater system. 2 Billing The 1995 Agreement and the 1999 Agreement between Westlake and Southlake for billing Westlake metered and estimated wastewater flows through the N-1 collector main are hereby amended as follows: Until such time Trinity River Authority assumes billing responsibilities, Southlake shall read, or cause to be read, all current and proposed area meters identified on Exhibit "B" to calculate a sewer volume for billing Westlake. For any Westlake sanitary sewer connection to the N-1 collector main that is not metered by an area sanitary sewer meter (unmetered), Westlake shall provide Southlake a copy of the Westlake utility bill for each unmetered utility customer no later than 10 days following that date that Westlake bills are mailed to Westlake customers. Southlake will in turn bill Westlake on a monthly basis for sewer treatment of the aggregate average sewer volume as determined by the Winter Quarter Average (December, January, and February) for each sanitary sewer connection that is not metered by an area sanitary sewer meter. Southlake will invoice Westlake for wastewater treatment as described above. Payment shall be due to Southlake no later than 30 days of the invoice date. Honorable Mayor and City Council Item 4G, Page 7 of 15 3 Rates and Bills The rates charged for all Westlake sanitary sewer volume discharged into the N-1 collector main, metered or unmetered, shall be equal to the most current rates adopted by TRA for wastewater treatment in the Denton Creek System plus 10% administrative. This section shall apply to all properties in Westlake that are served by the N-1 collector main either measured by an area sanitary sewer meter or estimated as identified above. Whenever there is a change in the rate TRA charges for sewer treatment Southlake shall: 1) notify Westlake of the change; and modify Southlake's billing to reflect the pass-through rate charged to Westlake. 4 Other Service Area The municipalities agree that no service areas or individual sanitary sewer services from properties that are outside the N-1 drainage basin shall be allowed to be connected to the N-1 collection main without the written consent of both municipalities. Therefore, neither Westlake nor Southlake may add areas or customers outside of the N-1 drainage basin as shown on Exhibit "A" and as recorded on Southlake's Sewer System Master Plan. 5 Applicable Law This Agreement and any of its terms and provisions, as well as the rights and duties of the parties hereto shall be governed by the laws of the State of Texas. This Agreement is fully performable in Tarrant County, Texas, and in the event that any cause of action is filed by either party arising out of the terms of Honorable Mayor and City Council Item 4G, Page 8 of 15 this Agreement, the exclusive venue for said lawsuit shall be in Tarrant County, Texas. 6 Severability In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. 7 Authority Each party certifies that the undersigned officers and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions or orders extending said authority have been duly passed and are now in full force and effect. 8 Term and Termination of Agreement This Agreement shall continue so long as wastewater flow from any subdivision in the town limits of Westlake flows into the Southlake sanitary sewer system; provided, however, that this Agreement may be terminated by either party, with or without cause, one hundred eighty (180) days after written notice of termination is delivered by the party desiring to terminate the Agreement to the other party at the address provided herein. Honorable Mayor and City Council Item 4G, Page 9 of 15 9 No joint enterprise No provision of this Agreement shall be construed to create any type of joint ownership of any property, to create a partnership, joint venture or other agreement of any kind, or to create any right of partial control, ownership of or equity in the other municipalities' facilities described herein. Furthermore, the parties hereto acknowledge and agree that the doctrine of respondeat superior shall not apply between the municipalities. 10 Notice Any notice, communication or request provided or permitted to be given by either party to the other party must be in writing and addressed as follows: If to Southlake: City of Southlake Attn: City Manager 1400 Main Street, Suite 460 Southlake, Texas 76092 Telephone: (817) 748-8400 Facsimile: (817) 748-8010 and to: City of Southlake Attn: Director of Public Works 1400 Main Street, Suite 320 Southlake, Texas 76092 Telephone: (817) 748-8400 Facsimile: (817) 748-8077 If to Westlake: Town of Westlake Attn: Town Manager 1301 Solana Blvd., Building 4, Suite 4202 Westlake, Texas 76262 Telephone: (817) 430-0941 Facsimile: (817) 430-1812 Honorable Mayor and City Council Item 4G, Page 10 of 15 and to: Town of Westlake Attn: Director of Public Works 1301 Solana Blvd., Building 4, Suite 4202 Westlake, Texas 76262 Telephone: (817) 430-0941 Facsimile: (817) 430-1812 or to such other addresses as may be provided for in writing from time to time. 11 Other agreements unaffected This Agreement shall govern the provision of all Town of Westlake wastewater discharged into the N-1 sewer line. All other interlocal agreements between Westlake and Southlake not changed in whole or in part by this agreement shall continue in effect. 12 No waiver of immunity or defenses This Agreement is made pursuant to Chapter 791 of the Texas Government Code. It is expressly understood and agreed that in the execution of this Agreement, neither municipality 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, or any damage limitation or other protection provided to municipalities under any applicable law. This section shall be liberally construed to carry out the intent of each municipality's governing body, and the municipalities do hereby invoke said governmental immunity to the extent possible under the law. Honorable Mayor and City Council Item 4G, Page 11 of 15 13 No third party beneficiaries It is understood by the parties that this Agreement is entered into for the mutual convenience and public purposes of the municipalities which are parties hereto, and it is the parties' intent that no other parties shall be construed as beneficiaries of this Agreement, including the owners, residents, or operators of property connected to the N-1 collection main, regardless of whether such persons are provided wastewater services under this Agreement. 14 Payment for Services Each party paying for the performance of governmental functions or services hereunder shall make those payments from current revenues available to the paying party. 15 Section or Other Headings Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 16 Amendment This Agreement may only be amended, altered, or revoked by written instrument signed by both parties. 17 Interpretation Regardless of the actual drafter of this Agreement, this Agreement shall, in the event of any dispute over its meaning or application, be interpreted fairly and reasonably, and neither more strongly for nor against any party. Honorable Mayor and City Council Item 4G, Page 12 of 15 18 Counterparts This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. This Agreement may be executed in multiple originals. 19 Force Majeure If, by reasons of Force Majeure, any party will be rendered wholly or partially unable to carry out its obligations under this Agreement after its effective date, then such party will give written notice of the particulars of such Force Majeure to the other party or parties within a reasonable time after the occurrence of such event. The obligations of the party giving such notice, to the extent affected by such Force Majeure, will be suspended during the period of the inability, provided that both parties agree to use good faith and exercise reasonable efforts to remove and overcome such inability. 20 Mutual Assistance The parties hereto agree to take all reasonable measures which are necessary or appropriate to carry out the terms and provisions of this Agreement and to aid and assist each other in carrying out such terms and provisions. 21 Exhibits All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Honorable Mayor and City Council Item 4G, Page 13 of 15 CITY OF SOUTHLAKE Date Laura Hill, Mayor ATTEST: City Secretary Approved as to form and Legality Allen Taylor, City Attorney TOWN OF WESTLAKE Date Thomas E. 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