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Item 4BCITY OF SOUTHLAKE Item 4B MEMORANDUM (April 15, 2014) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Approve Interlocal Agreement with the City of Keller for sewer connection for Keller residential development named The Sanctuary. Action Requested: Approve Interlocal Agreement with the City of Keller for sewer connection for Keller residential development named The Sanctuary. Background Information: The City of Southlake has existing interlocal agreements with Keller, Westlake, and Grapevine to provide utility services for the mutual benefit of both parties to these agreements. The Interlocal Cooperation Act, Chapter 791 of the Texas Government Code allows city governments to contract with one another for various governmental functions. There are presently three metered sewer interconnections between Keller and Southlake, each serving multiple parcels, where sewer services are provided by the neighboring city. At two of the existing locations, Keller provides sewer treatment for Southlake residents and one connection where Southlake provides treatment for Keller residents. This Interlocal agreement will provide sewer service for The Sanctuary development in Keller to enter the Southlake sewer collection system through a metered connection to be built by the Keller developer (see location map). Like the existing connections, the city receiving flows from the adjacent city will bill the contributing city at the rate currently charged by the Trinity River Authority for sewer treatment on a monthly basis. The agreement also requires that Keller collect sanitary sewer impact fees at Southlake's rate and pass those on to the City of Southlake on a quarterly basis. Financial Considerations: All construction costs related to the improvements covered by the Interlocal Agreement were paid by the City of Keller or the developer of the subdivision. Item 413 Strategic Link: The approval of the Interlocal Agreement links to the city's strategy map relative to focus area of Partnerships & Volunteerism. The specific corporate objective that is met by the agreement is to collaborate with select partners to implement service solutions. Citizen Input/ Board Review: None Legal Review: City attorney reviewed the Interlocal Agreement. Alternatives: The City Council may reject or approve this Interlocal Agreement. Supporting Documents: Location Map City of Keller Interlocal Agreement Staff Recommendation: Approve Interlocal Agreement with the City of Keller for sewer connection for Keller residential development named The Sanctuary. Staff Contact: Robert H. Price, P.E., Public Works Director Chuck Kendrick, Deputy Director of Public Works — Operations Item 4B i INTERLOCAL COOPERATION AGREEMENT FOR THE PROVISIONS OF SANITARY SEWER SERVICES TO THE SANCTUARY SUBDIVISION OF THE CITY OF KELLER STATE OF TEXAS § COUNTY OF TARRANT § THIS AGREEMENT is made and entered into by and between the City of Southlake, Texas. a home rule municipal corporation, located in Tarrant County, Texas (hereinafter referred to as "Southlake"), and the City of Keller, Texas, a home rule municipal corporation, located in Tarrant County, Texas (hereinafter referred to as "Keller") WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code authorizes city governments under 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, utility services; and WHEREAS, Keller does not currently have a sanitary sewer collector main located within the S-10 (Southlake designation - see Exhibit "A"); and WHEREAS, Keller has constructed a sanitary sewer to serve The Sanctuary subdivision located in the S -1 0 d r a i nag e b a s i n; and WHEREAS, Southlake has a sanitary sewer collector main to serve the southwestern portion of the S-10 basin. including that portion of Keller within the S-10 drainage area; and WHEREAS, Keller and Southlake recognize that the drainage basin designated S-10 has portions which lay in both jurisdictions; and WHEREAS, Southlake has designed capacity in this respective system to provide sanitary sewer service for that portion of Keller lying in the drainage basin; and WHEREAS, Keller and Southlake desire to provide sanitary sewer service to the citizens of the respective cities by not duplicating services, and WHEREAS, Keller 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, Keller and Southlake agree as follows: 1 Metering Keller shall furnish and install all meters, recording equipment and appurtenances required for the proper operation of a meter of a type and capacity agreed to by both parties to measure wastewater flows leaving Keller and entering Southlake. Southlake will maintain and operate the meter after it is accepted by Southlake. Either city shall have the right to test the meter and appurtenances at any time. No meter shall be adjusted, changed, or tested, in place or elsewhere, unless the city intending to make such adjustments. change, or test shall first give w r i t t e n notice to the other city of this intention and thereafter give reasonable opportunity to the other city to have representatives participate in such test change, or adjustment. The meter will be properly sealed, and the seal will not be broken unless representatives of the parties have been notified i n w r i t i n g and give a reasonable opportunity to be present. The location of the meter shall be mutually agreed upon i n w r i t i n g by and between the cities and the meter shall not be moved or relocated except by mutual w r i t t e n consent. 2 Wastewater Southlake agrees to receive and discharge normal domestic wastewater from Keller, specifically, the normal domestic wastewater from The Sanctuary subdivision located in the portion of the S-10 drainage basin located within Keller. For purposes of this agreement, "normal domestic wastewater" shall mean wastewater excluding industrial wastewater or any commercial wastewater which would require pretreatment by Trinity River Authority (TRA) unless that waste is adequately pretreated to meet TRA's requirements. Keller agrees to take all reasonable and necessary steps to prevent industrial wastewater and commercial wastewater which would require pretreatment by Trinity River Authority (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. 3 Meter Reading and Billing A. The meter shall be read by Southlake from time to time, but not less than monthly intervals. and both cities shall have free access to read these respective meters daily. It shall be the duty of each city to give immediate notice to the other should the meter be found not functioning, and upon such notice Southlake shall make any required repairs to such meter promptly. Whenever it is evident that a meter has not registered accurately for a period of time, the quantity used shall be estimated in accordance with the historical flow under similar conditions. B. The meter reading or rates of flow shall be added together when more than one meter for a city is in service for measuring wastewater flow between the cities, and the resulting sum thereof shall be used for the purpose of calculating the total wastewater flow and the applicable charges to be paid. 4 Rates and Bills A. Since both cities transport wastewater to the TRA Big Bear Creek system for final treatment at TRA Central Plant, the treatment cost per 1,000 gallons is equal. Therefore, the meter reading will be shared with the other city monthly. Southlake shall bill Keller at the appropriate rate at least every six months. Keller agrees to pay the bill by the 20th day of the month immediately succeeding the month in which the bill is received. B. The rate charged shall be the rate TRA Central Wastewater Treatment Plant charges its member cities. 5 nfhcr Gccc Keller agrees to collect sanitary sewer impact fees for each of the properties served by this agreement at the same rate that is charged for new development within Southlake, or to pay Southlake. Those impact fees shall be transferred to Southlake on a quarterly basis. Southlake will provide Keller the impact fee schedule when there is a change in the sewer impact fee charged to Southlake residents. 6 Other Service Area The cities agree that no additional service areas or individual sanitary sewer services shall be added to this agreement without the written consent of the City Council of the city impacted by the additional sewage flow through their sanitary sewer system. Therefore, Keller cannot add areas or customers outside of the S-10 basin as shown on the exhibit "A" and as recorded on Southlake's Sewer System Master Plan. 7 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 this Agreement, the exclusive venue for said lawsuit shall be in Tarrant County, Texas. 8 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. 9 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. 10 Term and Termination of Agreement This Agreement shall continue so long as wastewater flow from the Sanctuary subdivision of Keller 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. 11 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 City's facilities described herein. Furthermore, the parties hereto acknowledge and agree that the doctrine of respondeat superior shall not apply between the cities. 12 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: Shana Yelverton, 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 Keller: City of Keller Attn: Steve Polasek, City Manager 1100 Bear Creek Parkway P.O. Box 770 Keller, Texas 76244-0770 Telephone: (817) 743-4002 Facsimile: (817) 743-4190 and to: City of Keller Attn: Director of Public Works 1100 Bear Creek Parkway P.O. Box 770 Keller, Texas 76244-0770 Telephone: (817) 743-4080 Facsimile: (817) 743-4195 or to such other addresses as may be provided for in writing from time to time. 13 Other agreements unaffected The parties agree that this Agreement shall govern the provision of wastewater service to the Sanctuary subdivision of Keller. All other interlocal agreements between Southlake and Keller shall continue in effect and shall remain unaffected by this Agreement. 14 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, 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 the city councils of each City, and the cities do hereby invoke said governmental immunity to the extent possible under the law. 15 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 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 the Sanctuary subdivision, regardless of whether such persons are provided wastewater services under this Agreement. 16 Each party paying for the performance of governmental functions or services hereunder shall make those payments from current revenues available to the paying party. 17 Entire Agreement This Agreement, including the 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. 18 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. 19 This Agreement may only be amended, altered, or revoked by written instrument signed by both parties. 20 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. 21 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. 22 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. 23 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. 24 Exhibits All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. CITY OF SOUTHLAKE Date John Terrell, Mayor ATTEST: City Secretary Approved as to form and Legality Attorney for Southlake CITY OF KELLER Date Pat McGrail, Mayor ATTEST: City Secretary Approved as to form and Legality Keller City Attorney V y 2� Exhibit "A" low 4 - T _•:. �.� �I �. �i � Ala � ero � _ �� °•V s� •- � 1 9� Point of Connection to the SDuthlakeCollection System IEjaI j zars • i 9��. I'! � � � 2F� 207 I 'HURCH �• . -- I W CONTINENTAL B D- _ ,,I ' The Sanctuary' * Suhdivision W.