WA9402-CS 940725 Coppell. Texas 75019
~ 214-A62-002(~
JUly 25, 1994
Mr. Pete Smith
NichoZs, Jackson, Hager, Dillard, & Smith
500 N. Ackard, St 1800
Dallas, Texas 75201
~: Dallas Water Line #3 Contract Agreement
Dear Pete:
Today we received the latest revision with regard to the above
referenced matter. This revision covers most of the issues we
have been negotiating during the previous months with the City of
Irving.
I hate to impose, but I would greatly appreciate your comments by
noon, Thursday, July 28, 1994, (which you can fax to me) in order
for me to prepare for a meeting being held the end of this week.
Along with this document I am transmitting a letter from the City
of Irving's City Manager which, to some degree, addresses the
urgency of this review. By copy, I am also requesting the
Planning Director and City Engineer to review and comment as
well.
1as do not hesitate to call me if you have questions Thank
. e e .
ou for~ your help and cooperation.
'incerely,
en G. Goram
~ctor of Public Works
SGG/sm
cc: Jim Witt, City Manager
Ken Griffin, ACM/City Engineer
Gary Sieb, Planning Director
attachment
) STEPHEN W. McCULLOUGH
CITY MANAGER
o rvin
July 22, 1994
Mr. Jim Witt
City Manager
City of Coppell
P. O. Box 478
Coppell, Texas 75019
Re: Dallas Water Supply Line No. 3
Dear Mr. Witt:
As you know, Irving intends to let a construction contract in September for a new water supply
line. This line is to be constructed from Dallas' Elm Fork Plant in Carrollton to Irving' s
northernmost pump station near Northlake.
Early in the planning stages of this project, we contacted the Cities of Coppell, Lewisville and
Flower Mound to see if there was an interest in participation. The primary reason for doing this
was because the City of Dallas suggested to us that these cities might have need for additional
water transmission capabilities, and we felt there might be some benefit from the economy of scale
derived from building a larger project. Coppell and Lewisville indicated an interest.
Subsequently, there have been on-going discussions at the staff level regarding the possible details
of shared participation and benefit from this project.
Irving' s original proposal was very straight forward in that we asked the participating cities to
share fully in costs of engineering, construction and maintenance on a pro-rata basis. These
shares have been determined to be Irving 65/91, Coppell 20/91 and Lewisville 6/91. In return,
each city would own respective pro-rata portions of the main and be entitled to a like capacity
thereof. Irving, having the largest share, volunteered to be the lead agency and administer the
project.
Not long into the planning process, Coppell and Lewisville asked if Irving would be willing to
"trade" 26 MGD of its capacity in the existing Dallas owned main for the like amount of capacity
fights these two cities would have in the new main. As we understood it, this was for the purpose
of saving costs in the construction of metering facilities, as well as simplify Dallas' billing for
wholesale water sales.
Coppell and Lewisville additionally expressed a desire to be relieved of long term maintenance
responsibilities on the new water main, preferring for others to own the main.
P.O. Box 152288. 75015-2288 ~
825 West Irving Blvd. · Irving. Texas 75060 · (214) 721-25Zl ;~llql~
Fax No. (214) 721-2750 ~ECYC~ED PAP~,
Mr. Jim Witt July 22, 1994
City Manager page 2
City of Coppell
In order to address this issue, Irving has proposed that ownership of the main remain wholly with
Irving and that the other participating cities may acquire Irving's capacity rights in the existing
Dallas main provided that they:
1. Agree to pay a pro-rata share of maintenance events when such occur (Irving
would send an invoice) or
2. An escrow account would be established in the amount of $250,000 to be paid,
either up front, or over time as a "maintenance fee" until the amount is reached.
The fund would be replenished if used, by reinstitution of the maintenance fee.
Please note that Irving has not asked the other cities to participate in any
administrative, depreciation, or capital replacement fund costs that might
normally be associated with such a project, except that Irving would retain
interest on this escrow account.
We have not been able to consummate an agreement and the participation of all but Irving in this
line remains in doubt.
Recently, two events have transpired which create an urgency to resolve differences to go
forward with this contract.
1. Dallas Water Utilities has notified all three cities that a letter of agreement
must be received by August 1, 1994, signed by all three cities, or they will
discontinue the design of the 91 MGD metering station that will serve this
line.
Instead, they will design a 65 MGD facility as was originally requested by
Irving which will serve only the City of Irving. This change will also
cause a substantial delay in the project.
2. Irving engineering staff met with several of your staff members two weeks
ago to go over the alighment and obtain all pertinent information
regarding the development and construction status of property along that
alignment.
All paxties concurred that the best alignment through a tract known as
Northlake Woodlands East Addition No.10 (in Coppell), was within a
dedicated City right-of-way for a "future" street known as Bethel School
Road. We were advised that the section of this roadway we proposed to
locate the main in must be constructed by February, 1995 per Coppell's
requirements.
Mr. Jim Witt July 22, 1994
City Manager page 3
City of Coppell
Upon meeting with the owner of the tract, however, we were informed
that utilities were already installed and that paving is scheduled in the next
few weeks. Indications from the owner are that they are willing to work
with us so that we may still be able to install the main prior to pavement
placement. Obviously, this cannot happen unless Irving and Coppert have
come to an agreement.
This corridor is very important to the overall alignment of the main, as
other more costly alignments will have to be considered ff this "window of
oppo~unity" is missed.
In order to try to expedite a resolution to this issue and meet deadlines imposed by the above
situations, we are, once again, enclosing a revised contract for Coppell's consideration. This
contract differs from previous ones submitted to your staff in that the maintenance provision is
changed to reflect a one time, lump sum, up-front payment as suggested in Mr. Goram's letter of
July 7, 1994. Also certain other provisions suggested by the City of Coppell have been inserted in
the contract.
We are hopeful that this will resolve this matter and that this important project may proceed. The
successful completion of these negotiations must be completed prior to August 1, 1994, if the
City of Lewisville is to be included in this project. I look forward to hearing from you.
Sincerely,
Stephen W. McCullough
City Manager
SMc/cg
pc: Steve Goram, Director of Public Works, Coppell
Dave Ryburn, Wholesale Services Manager, Dallas
Sandy Cash, Deputy City Manager, Irving
Don Rorschach, City Attorney, Irving
Jack Angel, Public Works Director, Irving
Fde
P.O. ReX 476
C0ppell, Texas 75019
The City With A Beautiful Future 214-462-0022
JUly 7, 1994
Ron McCuller
Assis=ant Public Works Director
Water U~ilities
City of Irving
P.O. Box 152288
Irving~ Texas 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 offe~
the ~ollowing:
There has been an understanding from the beginning tha~ there
would De capacity transfer of the two water lines. We are
agreeable to paying a reasonable lump sum payment to the City of
Irving for the less of benefit in craneletting 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 reimbursemen~ 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 o~ Coppell since we are planning at thi~
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 Lewisvilla, Coppall, 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 Coppall obtuins the right of 22% (20MGD)
capacity of the Dallas Water Supply Line #3, and upon
completion of secZ£on l, transfer of capacity will take
place with t~e City of Irving to allow coppall 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
Coppall and will allow coppelI 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 Coppall 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 coppelI will agree to cooperate in every
reasonable way with the construction of the pieeline 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 coppe!l 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 ~o shut down the project
if warranted.
7. The city of Irving will provide to the City of Coppeli a
detailed estimate and explanation of costs necessary to
secure capacity in the proposed w~t~r line and specifi~
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
i~terconnected 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.
incerel
Director of Public Works
SGG/sm
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
This Contract made and entered into this the day
of , 1994 by and between the City of Irving and
the Cities of Coppell and Lewisvllle, Texas.
WITME28ET~:
WHEREAS, the Cities of Irving, and Coppell currently have
contracts with the City of Dallas to purchase treated water; and
WHEREAS, water currently being purchased by these cities is
delivered through a supply line constructed in the early 1970's,
which supply line is owned, operated and maintained by the City of
Dallas; and
WHEREAS, the Cities of Irving, Lewisville and Coppell will need
[dditional treated water over and above the capacity of the
existing supply line within a few years; and
~WHEREM, the Cities of Lewisville and Coppell wish to obtain
treated water from any new pipeline capacity that becomes available
in the near future; and
WHEREAS, the City of Irving intends to construct, own, operate
and maintain a new water supply line from the City of Dallas Elm
Fork Water Treatment Plant to the City of Irving Mackberry Pump
Station along the approximate route shown on Exhibit 1, attached
hereto; and
PaSel~13
JUL-2S-B4 08:18 FROM: CITY OF IRVINU Lu= ~Zl ~ r~u~
WHEREAS, this supply line, to be known as Dallas Water Supply
Line No. 3 can be sized to include capacity for the Cities of
Coppall and Lewisvilla, which capacity may be used to replace any
additional capacity used by these cities in the existing supply
line; and
WHEREAS, the Cities of Coppell and Lewisvilla wish said line to
be oversized and desire to purchase capacity in the proposed Dallas
Water Supply Line No. 3;
NOW, THEREFORE, in consideration of the mutual covenants and
a~ree~ents herein contained the City of Irving agrees to provide
and the cities of Coppall and Lewisvilla agree to pay for extra
delivery capacity in the proposed Dallas Water Supply Line No. 3
upon the terms and conditions and for the considerations
herOnafter set forth, to-wit:
ARTICLE I
1. The City of Irving will proceed with the design and
construction of said Dallas Supply Line No. 3, such supply
line, right-of-way and facilities to be owned by the City
of Irving, and the Project will have the following
approximate capacities:
Pa~c~ ~13
JUL-25-84,08:18 FROM: CITY OF IRVING
Elm Fork Water Treatment Plant to Sandy Lake Road
crossing -- 91 million gallons per day (MGD).
The approximate location of the water supply line and the
points referred to are shown on Exhibit 1, which is
attached hereto.
2. The Cities of Coppell and Lewisrills agree to pay their
pro-rata share of the actual cost of constructing,
operating and maintaining the supply line, including
~ ~,/o .>~ engineering and right-of-way ac~.sition costs, in
~"'~-q:/-~/~j proportion to the capacity each is entitled to in any
~,~_~ ~..i. particular se~ent of the supply line. These proportions
~o which said two (2) cities are entitled are, as follows:
· Elm Fork Water Treatment Plant to Sandy Lake Road
crossing:
20
Coppell ...............
91
Lewisrills ............ 6
91
· Sandy Lake Road Crossing to Hackberry Pump Station
Coppell ............... None
Lewisville ............ None
hF3~13
08:1,8 FROM: CITY OF IRVING iD: 721
3. The City of Irving will furnish each City an estimate of
their cost to secure capacity in the proposed water supply
line as well as an approximate schedule of when funds will
be required. Before contracts for construction are awarded
by City of Irving, the Cities of Coppoll and Lewisville
shall deposit their share of the costs with the City of
Irving. Funds received by the City of Irving will be
placed in escrow and a complete accounting of expenditures
will be furnished each City. If additional funds are
required, said Cities shall deposit said additional funds
with the City of Irving before said City becomes obligated
to the contractor(s). Upon termination or completion of
the Project, each City is entitled to any excess funds not
jnc].uding any interest. Said funds ~hall bc paid to each
entity within ninety (90) days of termination or completion
of the Pro3ect.
4. The Cities of Coppoll and Lewisville shall hold the City of
Irving harmless for any penalties or levy by the Internal
~ v~ ,x~ ~'~ Revenue Service on those cities bond funds placed in
~ ! escrow. Each City is L'e~wonsible for ~ I ~ ng its own
....... ~ arbitrage report on bond monies placed in escrow with the
· ~/' \ City of Irving.
5. In lieu of participating in the after construction
maintenance expense of the Dallas Supply Line No. 3 and in
consideration for Irving allowing, during the term of this
Agreement and any renewal, the use of 20 MGD to Coppell and
!~i~e4dl3
6 MGD to Lewisville of Irving's contracted pipeline
capacity in the existing Dallas owned water transmission
line, said cities agree to pay to Irving as follows:
$192,307.50 being paid by Coppell and $57,692.50 being paid
by Lewisville. Such payment shall be considered as the
full obligation such cities have for future maintenance Of
the pro-rated portion of purchased capacities in the Irving
owned transmission line, during the term of this Agreement
and any renewals thereof.
6. Use of Irving's capacity in the existing Dallas supply line
will not b~ granted until such time as the Dallas Supply
Line No. 3 i~ completed and in service and above described
payments are received by Irving.
7. The City of Irving will provide inspection services on the
Dallas Supply line No. 3 project and agrees to follow the
City of Coppell's standards and practices for construction,
including reasonable time frames wherein this project is
constructed within the corporate limits of Coppell.
Coppell shall have the right to review plans and inspect
the project within its' corporate limits. The City of
Irving agrees to co-operate with Coppeli in the enforcement
~f such 8tandard~ upon the contractor and minimize
inconvenience associated with such construction wherever
practical.
Pa~5ofl3
8. The City of Coppoll will waive inspection fees, review
costs, and any other fees that might be associated with the
construction Of the pipeline within Coppell's city limits.
9. The City of Coppoll agrees to co-operate in the acquisition
of rights-of-way necessary for the installation of the
pipeline and related appurtenances within the City of
Coppoll and hereby authorizes the City of Irving to
exercise the powers of eminent domain necessary for the
acquisition thereof. The City of Irving shall not require
the City of Coppell to bring or prosecut~ the action for
condeennation.
0. The City of Coppoll will grant to the City of Irving the
necessary easements and rights-of-way within its' public
streets, alleys, and ways to construct and maintain all the
City of Irving water facilities that may lie within the
City of Coppoll.
The City of Irving agrees to keep the main in good repair.
In the event of damage to the road, streets, or alleys
through which the main may pass within the City of Coppoll
as a result of repair or failure to repair such mains, the
City of Irving will repair such damage. In the event it is
necessary to cut the surface of such street, road or alleys
for the purpose of maintaining said main, the City of
irving shall repair any such cuts. Such maintenance
procedures and construction shall be according to the City
Pa~6~[3
of coppell standards wherein the project is within the
corporate limits of the City of Coppell..
12. Certain interconnections between the Dallas Supply Line
No. 3 and the Existing Dallas Supply line, locations to be
determined by the engineer and approved by the City of
Dallas may be installed in order to provide emergency
service in the event of failure of one of the pipelines.
13. Whenever by reason of the changes in the grade of any
street or in the location or the manner of constructing any
underground water or sewer mains that shall be deemed
necessary by the governing body of the City of Coppell to
alter, change, adopt the facilities of the City of Irving
which are situated in the City of Coppell's right-of-way,
such alterations or changes shall be promptly made by the
City of Irving when ordered in writing by the Director of
Public ~rks of the City of Coppell, without claim for
reimbursement or damages against the City of Coppoll; and
if the City of Coppell shall require the City of Irving to
adopt or conform its facilities or in any way to alter,
relocate, or change its property to enable any other
corporation, person or entity to use, or to use with
greater convenience, said streets or public rights-of-way,
The City of Irving shall not be bound to make any such
changes until such other ~nrporation, person or entity
shall have undertaken, with solvent bond, to reimburse the
JUL-~S-84, 88:2~ FROM: CITY OF IRVING ID: 721 2420 ~AU~
City of Irving for any loss or expense which shall be
caused by, or arise out of such change, alteration, or
relocation of the City of irving's property provided that
the City of Coppall shall never be liable therefore.
~tTICL~ II
Each City is directly responsible for any metering station cost
required to meter water taken from either the existing supply line
or the proposed Dallas Water Supply Line No. 3 to serve such City.
Such meters shall be equipped with rate of flow controlling devices
that will limit the rate of withdrawal to the delivery capacity
contracted for.
A~TlCra III
Each City shall be responsible for directly entering into an
agreement with the City o= Dallas, or modifying its existing
agreement, for the purchase of treated water that it wishes to have
transported through the proposed pipeline.
ARTICLX IV
The City of Irving will obtain all right-of-way within or
without the boundaries of the City of Coppall necessary to
construct the pipeline within its corporate limits. Reimbursement
Pue~8~13
JUL-28-94 88:21 FROM: CITY OF IRVING [D: 721 2q2~ ~u~
for costs of right-of-way acquisition to the City of Irving shall
be in accordance with the provisions of this agreement.
ARTICLE V
The Cities of Coppoll and Lewisville each agree to protect
their separate systems from cross connections under the
s~ecifications required by health standards of the State of Texas.
ARTICLE VI
The Cities of Coppoll and Lewisville each agree to provide air
gaps for any ground storage and backflow preventors for any
elevated stnr^g~.
ARTICI~VII
City of Irving shall not be liable in damages for actual and/or
consequential damage experienced by the Cities of Coppell or
Lewisville resulting from the flow, pressure, or quantity of water
through the pipeline.
~9
JUL-25-94 88:21 FROM: CITY OF II~VINL; iL): /zl z~z~3 r~ , ~
ARTICLE VIII
This contract shall remain in force and effect for a term of
thirty (30) years from and after the date of execution of the
contract. This contract shall automatically renew for successive
30 year terms unless written notification is given by one City to
the other two cities 60 months prior to the renewal date.
Venus for the resolution of all litigation shell be in a court
of competent jurisdiction in Dallas County, Texas.
ARTICLg IX
Any notices may be given to the respective parties at the
following addresses by certified mail, postage prepaid:
City of Irving, Texas
Attention: City Manager
825 West Irving Boulevard
Irving, Texas 75060
City of Coppell
Attention: City Manager
255 Parkway Boulevard
cop~ell, Texas 75019
City of Lewisville, Texas
Attention: City Manager
1197 West Main
Lewisville, Texas 75029~9002
JIJL-25-94 08:91 FROM: CITY OF IRVING ID: 721 2420 PAGE
ARTICLE X
Force_Majeure: If by reason of force majeure any party hereto
shall be rendered unable wholly or in part to carry out its
obligations under this Contract, then if such party shall give
notice and full particulars of such force majeure in writing to the
other party within a reasonable time after occurrence of the event
or cause relied on, the obligation of the party giving such notice,
V fa% as it is affected by such force maJeure, shall be suspended
period, and any such party shall endeavor to remove or
overcome such inability with all reasonable dispatch. The term
"Force MaJeure" as employed heroin shall mean acts of God, strikes,
lockouts or other industrial dinturbanccs, acts Of pUblic enemy,
orders of any kind of the Goverrunent of the United States or the
Skate of Texas, or any Civil or military authority, insurrection,
riots, epidemics, landslides, lighting, earthquake, fires,
hmrricanes, storms, floods, washouts, droughts, arrests, restraint
of goverrunent and people, civil disturbances, explosions, breakage
or accidents to machinery, pipelines or canals, partial or entire
fail~e of water supply, or on account of any other causes not
reasonably within the control 0£ Lhe party claiming such inability.
ARTICI~ XI
To the extent City of Irving or other governmental agency
imposes restrictions relating to the curtailment of water delivery
end availability, the Cities agree that the City of Irving may
iu~llof~3
JUL-2S-94 ~8:22 FROM: CITY OF IRVING iu: Y21 ~q2~ M~U~
impose such restrictions and grant such privileges equitably and in
a non-discriminatory fashion. In the event the City of Dallas
reduces flow available to all cities because of drought or
emergencies each city shall reduce its withdrawal to a rate that is
proportional to its capacity in the supply line delivery
facilities.
ARTICLE XlI
· 8~e_rabilit~: The Parties hereto specifically agree that in
case any one or more of the sections, subsections, provisions,
clauses or words to any situation or circumstance should be, or
should be held to be, for any reason, invalid or unconstitutional,
under the laws or constitutions of the State or the United States
fAmerica, or in contravention of any such laws or constitutions,
h invalidity, unconstitutionality or contravention shall not
ect any other sections, subsections, provisions, clauses or
words of this Contract of the application of such sections,
subIectio~, provisions, clauses or words to any other ~ituation or
cir umsta es, and it is intended that this Contract shall be
severable nd shall be construed and applied as if any such invalid
or unconst%tutional section, subsection, provision, clause or word
had not been included herein, and the rights and obligations of the
parties hereto shall be construed and remain in force accordingly.
IN WITNE$S WHEREOF, the parties hereto acting under authority
of their respective governing bodies have caused this Contract to
be duly executed in several counterparts, each of which shall
JUL-2E-B4 ~8:27 FROH: CITY OF IRVING ID,* 721 2420 PAGE
constitute an original, all as of the day and year first above
written, which is the date of thls Contract.
Executed this the day of , 19 .
CITY OF IRVING
By: By:
CITY OF COPPELL
$y: By:
ATeSeT: CITY OF LEWXSVILLE
lY:
F,a~13t.,fl.t