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Item 4G - Interlocal GV Sewer1 MEMORANDAM April 30, 2019 TO: Shana K. Yelverton, City Manager FROM: Kenneth M. Baker, Senior Director of Planning and Community Development SUBJECT: Item 4G - Inter-local Agreement with the City of Grapevine Request: Approve an Inter-local Agreement with the City of Grapevine to provide sanitary sewer service to property within the City of Southlake located at 2701 Lonesome Dove Road. Background: The purpose of this agreement is to provide public sanitary sewer service to the property as part of the boundary adjustment under Item 4F, Resolution No. 19-005. The City of Grapevine has sanitary sewer service directly adjacent to the property and has requested that the property be removed from an onsite sanitary sewer system (septic system) and placed on a public sanitary sewer service as part of the boundary adjustment agreement. The nearest City of Southlake sanitary sewer is approximately 220 feet to the west of the subject property. Financial Considerations: The City of Southlake currently provides and collects for water, refuse collection and storm water for the property. As part of this agreement, upon connection the City of Southlake will collect fees for sanitary sewer and make payment to the City of Grapevine. The process for collections and payment is the same as the current inter-local agreement with the City of Grapevine for the Simmons and Rain Forest Additions. As an alternative to the inter-local agreement, the cost for the City of Southlake to extend sanitary sewer to the property is estimated at approximately $25,000. Alternatives: The City Council may approve or deny this resolution. Legal Review: The agreement is modeled after the current inter-local agreement with the City of Grapevine for sanitary sewer service and is under review by the City Attorney. 2 Supporting Documents: 1) Location Map 2) Inter-local Agreement 3) Link to Presentation Staff Contact: Ken Baker, 817-748-8067 3 Location Map 4 INTERLOCAL AGREEMENT FOR PROVISION OF SANITARY SEWER STATE OF TEXAS § § COUNTY OF TARRANT § This Agreement is entered into by and between the City of Grapevine, Texas, a home rule municipality located in Tarrant, Dallas and Denton County, Texas, operating herein by and through its duly authorized Mayor, William D. Tate, and the City of Southlake, Texas, a home rule municipality located in Tarrant County, Texas, operating herein by and through its duly authorized Mayor, Laura Hill. A. DEFINITIONS 1. "Force majeure" is an act of God or a public enemy, war, riot, civil commotion, insurrection, terrorism, strike (unless caused by acts or omissions of the party asserting same), governmental or de facto governmental regulatory or eminent domain action (unless caused by acts or omissions of the party asserting same), fire, drought, explosion, flood, or other natural catastrophe. 3. "Grapevine" is the City of Grapevine, a home-rule municipality located in Tarrant, Dallas, and Denton County, Texas. 4. “Southlake” is the City of Southlake, a home-rule municipality located in Tarrant and Denton Counties, Texas. 5. The Service Area is approximately 0.88 acres in size, commonly referred to as the 2701 Lonesome Dove Road, currently consisting of the area defined by Exhibit A attached hereto. B. RECITALS WHEREAS, Southlake has permitted development of 2701 Lonesome Dove Road, and desires to support and facilitate such development through the provision of essential municipal utility services, including sanitary sewer collection facilities; and WHEREAS, 2701 Lonesome Dove Road flows naturally into Grapevine, and Southlake currently does not have the facilities necessary to transport the sanitary sewer discharge into Southlake's wastewater processing facilities; and WHEREAS, Grapevine has the sanitary sewer facilities and wastewater processing capacity to accept the flow from 2701 Lonesome Dove Road; and WHEREAS, Grapevine is willing to accept the flow from 2701 Lonesome Dove Road on the same terms as other customers of the Grapevine sanitary sewer system, and is currently providing such service to properties in the Southlake Simmons Service Area under a previous inter-local agreements dated November 18, 2008; and WHEREAS, consideration for Grapevine providing such service would be provided by the revenue generated from the fees for such service generated by the residential customer located in the 2701 Lonesome Dove Road; and 5 WHEREAS, Chapter 791 of the Texas Government Code (the "Inter-local Cooperation Act") authorizes municipalities to enter into interlocal agreements for the providing of governmental functions and services, including but not limited to, sanitary sewer collection services; and WHEREAS, the parties hereto deem it to be to their mutual benefit and to the benefit of the health, safety and welfare of their respective citizens to enter into this Inter-local Cooperation Agreement to provide for the continued provision of sanitary sewer service to 2701 Lonesome Dove Road and the extension of such service to all of the lots in such area, under the terms and conditions set forth herein; NOW THEREFORE, in consideration of the foregoing, and under the terms and conditions hereinafter set forth, Grapevine and Southlake, for good and valuable consideration, specifically, the mutual promises and agreements contained herein, do hereby contract, covenant and agree as follows: C. TERM OF AGREEMENT AND CONDITIONS PRECEDENT That Grapevine and Southlake do hereby covenant and agree as follows: 1. Purpose. The purpose of this Agreement is to provide for the efficient provision of sanitary sewer collection service by Grapevine to the defined area per attached Exhibit “A” located at 2701 Lonesome Dove Road, to which Southlake cannot currently provide such sanitary sewer service due to a lack of sufficient nearby collection lines. 2. Term. The term of this Agreement shall be for ninety-nine years from the effective date of this Agreement. The Agreement shall continue thereafter indefinitely unless one of the parties provides written notice to the other party of the notifying party's intent to terminate the Agreement. In the event such notice is given, this Agreement will terminate two years after the date such notice is given to the non-terminating party, or such earlier time as may be agreed by the parties. 3. Grapevine Agreement to provide sanitary sewer service to 2701 Lonesome Dove Road. a. Agreement to provide sanitary sewer collection service. During the term of this Agreement, Grapevine agrees to accept the flow from 2701 Lonesome Dove Road on the same terms and conditions that Grapevine provides to its residents and other customers, except as provided herein. The flow will be accepted at the North Gravel Road sanitary sewer collection system. b. Repair and monitoring responsibilities. Grapevine shall be responsible for monitoring and repairing within a reasonable time any of the sanitary sewer system facilities located in Grapevine necessary to accept the flow from the sanitary sewer service for 2701 Lonesome Dove Road. Grapevine agrees to maintain the sanitary sewer system and wastewater facilities located in Grapevine necessary to accept the sanitary sewer flow from 2701 Lonesome Dove Road so as to insure that quality standards established by applicable ordinances, regulations, and statutes are met, and Grapevine shall be liable to Southlake for any damages arising out of the provision of the services described herein or the failure to provide such services 6 herein, provided, however, that nothing contained herein shall be construed as expanding Grapevine's liability under existing law, as imposing any greater duties on Grapevine than are otherwise imposed upon it as a municipal corporation under applicable law, or as waiving any governmental immunity Grapevine is accorded under applicable law, or waiving any damage limitations or caps imposed by applicable law. Southlake shall be responsible for monitoring and repairing within a reasonable time any of the sanitary sewer system facilities located in Southlake necessary to collect the sanitary sewer flow from 2701 Lonesome Dove Road and discharge it into Grapevine's sanitary sewer system facilities located in Grapevine. Southlake agrees to maintain the sanitary sewer system facilities located in Southlake necessary to collect the sanitary sewer flow from 2701 Lonesome Dove Road and deliver it to Grapevine so as to insure that quality standards established by applicable ordinances, regulations, and statutes are met, and Southlake shall be liable to Grapevine for any damages arising out of the provision of Southlake’s services described herein or the failure to provide such services herein, provided, however, that nothing contained herein shall be construed as expanding Southlake's liability under existing law, as imposing any greater duties on Southlake than are otherwise imposed upon it as a municipal corporation under applicable law, or as waiving any governmental immunity Southlake is accorded under applicable law, or waiving any damage limitations or caps imposed by applicable law. c. Charges for Sanitary Sewer Service. Southlake shall be charged for the sanitary sewer service and shall pay to Grapevine all those charges applicable to customers within the Grapevine corporate limits at the same rate charged to customers within the Grapevine corporate limits. The rate shall apply to tap charges, impact fees, service charges, consumption charges, deposits and all other charges which a customer in Grapevine would be required to pay. Grapevine shall notify the City of Southlake within a reasonable period of time (60 days) upon a change to any of the requisite rates. Grapevine’s failure to notify Southlake does not relieve Southlake from the responsibility of paying for the aforementioned services in accordance with the appropriate rate structure at the time services are provided. d. Billing and collection responsibilities. Southlake shall read the meter for the lot located at 2701 Lonesome Dove Road on a monthly basis, bill the account holder at 2701 Lonesome Dove Road the rates set by Southlake for sanitary sewer service, and provide Grapevine with a spreadsheet indicating the dates the meter was read and the total gallons used and the amount Southlake billed for water and sanitary sewer services. Grapevine will then invoice Southlake for the sanitary sewer portion only based upon Grapevine's rates, and Southlake will promptly pay Grapevine the invoiced amount. Southlake will bear the responsibility for collecting the amounts due from the account holders located within the specified service area. e. Impact Fees. New connections served by the City of Grapevine under this agreement shall be charged the applicable Grapevine Wastewater Impact Fee in effect at the time of the connection. f. Cooperation regarding repairs. Southlake and Grapevine agree to cooperate in any efforts to repair the sanitary sewer facilities of either Southlake or Grapevine 7 serving 2701 Lonesome Dove Road, including providing necessary equipment, traffic control and barricades in the respective cities. g. Funding. Each party providing services under this agreement shall pay for those services from current revenue available to that party. 4. Regulatory control. It is understood and agreed by the parties hereto that the development regulations of the city in which facilities are located shall be applicable to such facilities. 5. No joint enterprise. No provision of this Agreement shall be construed to create any type of joint ownership of any property, nor shall same be deemed to create a partnership, joint venture or other agreement which would be construed as granting partial control, ownership of or equity in the facilities described herein. It is understood and agreed that the facilities operated by Southlake shall be owned and controlled by Southlake, and that the facilities operated by Grapevine shall be owned and controlled by Grapevine. Furthermore, the parties hereto acknowledge and agree that the doctrine of respondeat superior shall not apply between the cities. 6. 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 Attention: City Manager 1400 Main Street Southlake, Texas 76092 If to Grapevine: City of Grapevine Attention: City Manager P.O. Box 95104 Grapevine, Texas 76099 or to such other addresses as may be provided for in writing from time to time. 7. 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 city 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. This section shall be liberally construed to carry out the intent of the city councils of Southlake and Grapevine, and the cities do hereby invoke said governmental immunity to the extent possible under the law. 8. No third party beneficiaries. It is understood by the parties that this Agreement is entered into for the mutual convenience and purposes of the cities 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 located in either the Grapevine Area or the Southlake area, regardless of whether such persons are anticipated to be customers under this Agreement. 8 9. Entire Agreement. This Agreement, including any exhibits attached and made a part hereof, is the entire Agreement between the parties and supersedes all prior or contemporaneous understandings or representations, whether oral or written, respecting the subject matter herein. 10. Venue. This Agreement shall be construed under the substantive laws of the State of Texas, without reference to its choice of law provisions, and venue for any action arising under state law under this Agreement shall be the District Courts of Tarrant County, Texas. If any action relating to this Agreement is not properly brought in state court, venue shall be the United States District Court for the Northern District of Texas. 11. Severability. In the event any section, subsection, paragraph, subparagraph, sentence, phrase, or word herein is held invalid, illegal, or unenforceable, the balance of this Agreement shall be enforceable, and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, subparagraph, sentence, phrase, or word. In such event there shall be substituted for such deleted provision a provision as similar in terms and in effect to such deleted provision as may be valid, legal and enforceable. 12. Authority. This Agreement was authorized by the Southlake City Council at its regular meeting on the _____ day of ______________, 20___, authorizing the Southlake City Manager to execute this Agreement on behalf of the City of Southlake, and by the Grapevine City Council at its regular meeting on the _____ day of ______________, 20___, authorizing the Grapevine City Manager to execute this Agreement on behalf of the City of Grapevine. 13. 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. 14. Amendment. This Agreement may only be amended, altered, or revoked by written instrument signed by the parties to such amendment. 15. 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. 16. 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. 17. 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 continuance of the inability claimed and for no longer period, and any such party will in good faith exercise its best efforts to remove and over come such inability. 18. 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. 9 19. Recitals. The recitals to this Agreement are incorporated herein, and are intended to aid in the interpretation of this Agreement. 20. Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 10 EXECUTED this ______ day of _________________, 2019. CITY OF GRAPEVINE By:_____________________________________ Bruno Rumbelow, Grapevine City Manager ATTEST: ____________________________________ Tara Brooks, Grapevine City Secretary APPROVED AS TO FORM AND LEGALITY: ____________________________________ John F. Boyle, Jr., Grapevine City Attorney EXECUTED this ______ day of _________________, 20___. CITY OF SOUTHLAKE By: ______________________________________ Shana Yelverton, Southlake City Manager ATTEST: ____________________________________ Amy Shelley, Southlake City Secretary APPROVED AS TO FORM AND LEGALITY: ____________________________________ Tim G. Sralla, Southlake City Attorney 11 EXHIBIT “A” TRACT I- 2701 Lonesome Dove Road FIELD NOTES FOR DESCRIPTION OF LAND FROM THE CITY OF GRAPEVINE TO THE CITY OF SOUTHLAKE (THE SOUTHERN PORTION OF WHICH CURRENTLY LIES WITHIN THE CITY OF SOUTHLAKE), TARRANT COUNTY, TEXAS: BEING A TR ACT OF LAND OUT OF THE JOHN CHILDRESS SURVEY, ABSTRACT NO. 254, TARR ANT COUNTY, TEXAS, AND BEING TRACTS OF LAND AS DESCRIBED IN DEEDS RECORDED IN COUNTY CLERKS NO. D208 402672 AND D211 052750, DEED RECOR DS, TARRANT COUNTY, TEXAS, AND BEING DESCRIBED AS FOLLOWS: BEGINNING AT A 1/2 " IR ON PIN FOUND IN THE NORTH LINE OF N. GR AVEL CIRCLE FOR THE SOUTHEAST COR NER OF TRACT BEING DESCRIBED, SAID POINT BEING LOCATED 170.30 FEET NORTH 89 DEGREES 53 MINUTES 35 SECONDS WEST FROM THE SOUTHWEST CORNER OF LOT 35, BLOCK 2, LAKEVIEW ESTATES, AN ADDITION TO THE CITY OF GRAPEVINE, TARRANT COUNTY, TEXAS, ACCORDING TO THE PLAT RECORDED IN CABINET A, SLIDE 8072, PLAT RECORDS, TARRANT COUNTY, TEXAS; THENCE NORTH 89 DEGREES 5 4 MINUTES 00 SECONDS WEST 1 69.31 FEET ALONG THE NORTH LINE OF SAID N. GR AVEL CIRCLE TO A CAPPED IRON PIN FOUND FOR THE NORTHEAST INTERSECTION OF N. GRAVEL CIRCLE AND LONESOME DOVE R OAD; THENCE NORTH 00 DEGREES 1 6 MINUTES 00 SECONDS EAST 224.1 5 FEET ALONG THE EAST LINE OF SAID LONESOME DOVE ROAD TO A CAPP ED IRON PIN (AW) FOUND FOR THE NORTHWEST CORNER OF TRACT BEING DESCRIBED, SAID POINT BEING THE SOUTHWEST CORNER OF LOT 2, BLOCK 1, MILLS ESTATES, AN ADDITION TO THE CITY OF GRAPEVINE, TARRANT COUNTY, TEXAS, ACCORDING TO THE PLAT RECORDED IN CABINET A, SLIDE 1 0489, PLAT RECORDS, TARRANT COUNTY, TEXAS; THENCE NORTH 89 DEGREES 24 MINUTES 47 SECONDS EAST 173.58 FEET ALONG THE SOUTH LINE OF SAID LOT 2, BLOCK 1, MILLS ESTATES TO THE NORTHEAST CORNER OF TRACT BEING DESCRIBED; THENCE SOUTH 02 DEGREES 15 MINUTES 26 SECONDS WEST 13 1 .32 FEET TO A 1 /2" IRON PIN FOUND FOR CORNER OF TRACT BEING DESC RIBED; THENCE SOUTH 00 DEGREES 04 MINUTES 37 SECONDS WEST 95.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.88 ACRES OF LAND, MORE OR LESS (AND INCLUDING ALL AREA WITHIN LONESOME DOVE ROAD DIRECTLY ADJOINING THE WEST BOUNDARY OF THE HEREIN DESCRIBED TRACT). 12