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WA9402-CS 940707 P.O. Box 478 Coppell, Texas 75019 ~__~ 214-462-0022 July 7, 1994 Ron McCuller Assistant Public Works Director Water Utilities City of Irving P.O, Box 152288 Irving, Te×as 75015-2288 RE: Dallas Water Supply Line #3 Dear Ron: In response to your letter regarding maintenance payment associated with the Dallas Water Supply Line #3 project, I offer the following: There has been an understanding from the beginning that there would be capacity transfer of the two water lines. We are agreeable to paying a reasonable lump sum payment to the City of Irving for the loss of benefit in transferring capacity from the 54" water line to the proposed Dallas Water Supply Line #3. We would recommend to either participate in some of the physical maintenance or the reimbursement of a percentage of maintenance costs on our prorata share of the proposed pipeline section from Elm Fork to Sandy Lake Road crossing. Reimbursement would take place within 30 days of receipt of explanation of maintenance. However, I must tell you that long term maintenance of the line should not be requested of Coppell since we are planning at this time on allowing you access to our rights-of-way, easements, and land at no cost, as well as waiving inspection fees. We do not agree to the escrow of funds and the establishment of a maintenance account as outlined in your July 1, 1994, letter. Addressing other issues required in the updated version of the contract, the following terms and conditions need to be included in the contract: 1. The Dallas Water Supply Line #3 is a joint project between the Cities of Lewisville, Coppell, and Irving, and through this joint effort, the three entities will bring needed water capacity to each City at a reduced cost through economies of scale. 2. The City of Coppell obtains the right of 22% (20MGD) capacity of the Dallas Water Supply Line #3, and upon completion of section 1, transfer of capacity will take place with the City of Irving to allow Coppell to increase its capacity of the existing 54" water line to 29 MGD. This being done to facilitate present design and construction plans for Coppell's new ROFC facility to be located at the Sandy Lake Road crossing. 3. The City of Irving agrees to cooperate with the City of Coppell and will allow Coppell to use Irving's unused capacity of the 54" water line until section 1 is completed and in service. 4. The City of Irving recognizes the contributions and assistance the City of Coppell will provide through joint cooperation, for the mutual benefit of increasing both communities' water line capacities. And because of this mutual cooperation, the City of Coppell will agree to work with the City of Irving in coordinating and informing them as much as practical of the activities in the city associated with development that is in or near the proposed alignment of the water line. 5. The City of Coppell will agree to cooperate in every reasonable way with the construction of the pipeline by waiving inspection fees and review costs associated with the construction of the pipeline in the city limits. 6. The City of Irving will provide inspection services on the project and will agree to follow the City of Coppell's standards and practices and time frames for construction. The City of Coppell will approve the plans, have the right to review the inspection process and where necessary, intervene when concerns and discrepancies are identified, including the inspector being able to shut down the project if warranted. 7. The City of Irving will provide to the City of Coppell a detailed estimate and explanation of costs necessary to secure capacity in the proposed water line and specific dates when funds will be required. 8. The City of Irving will agree that the existing 54" water line and the proposed Dallas Water Supply Line #3 will be interconnected at specific locations for emergency purposes only. As mentioned in previous correspondence, Irving representatives met with Coppell staff some weeks ago and discussed alignment and development activity; we appreciate this meeting and I believe both cities felt comfortable with the proposed alignment and what needed to be addressed to secure this route. Several months ago I expressed concern that this project had reached high center and was not progressing. I applaud the recent activity on this project. Personally, I believe the only major issue still unsettled is the maintenance of the water line. There is too much to gain for all communities involved for us not to work through this matter. I am confident we can. The meeting planned for July 29, 1994, is still much needed so we can get closer in terms of finalizing the agreement between- staffs in order to seek council approval. I would prefer an updated version of the agreement more in line with what we have discussed in past meetings and in line with the contents of this letter in order for my legal staff and other staff members to review it for overall consistency when we meet, or before if possible. I look forward to working with you and other representatives through the completion of this project. veAe Director of Public Works SGG/sm cc: James Witt, City Manager/Coppell Ken Griffin, City Engineer/Coppell Dave Ryburn, Wholesales Service Manager/DWU Sandy Cash, Deputy City Manager/Irving Steve Bacchus, Director of Public Services/Lewisville Howard Pafford, Water Superintendent/Coppell