SS9602-CS 950823
MEMORANDUM
To: Peter G. Smith, City Attorney
From: Kenneth M. Griffin, P.E., Asst. City Manager/City Engineer
RE: TRA Contract
Date: August 23, 1995
For several years now the City of Coppell has been in contact with the Trinity River Authority
concerning the charges for the treatment of wastewater for the City of Coppell. It has been our
contention that they have been inaccurately measuring the flow and therefore charging the incorrect
amount. As can be seen by the referenced letter, this was first put in writing to TRA on March 11,
1993. Since that time, the City of Coppell has had ongoing dialogue with TRA and has gone as far
as metering all of our points of entry into the TRA system to show that there was a discrepancy
between the TRA meter and what we were actually putting into the system.
Subsequent to the City metering the inflow, there was a meeting with TRA representatives to
discuss the results obtained by the City. During the meeting, TRA representatives stated that they
are and have been actively pursuing a way to check the existing meter located on East Beltline near
the Longbranch Country Club. Based on our meeting, TRA committed to meter both upstream and
downstream of their existing meter and compare the results to determine if there are any
inaccuracies in their meter.
The City has just received data from the first week of metering and it clearly shows that there is
about a twenty percent difference in the City's favor in what TRA has been charging us and what
the actual flow is through the meter. Once I received the first report, I reviewed the TRA
Agreement dated February 10, 1976. Section 3.07 entitled "Metering", starting on page 90 of the
agreement discusses the adjustment period. My understanding of the contract is that if there is an
inaccuracy in excess of 5% then it shall be corrected for a period of time exceeding back to the time
when the inaccuracy began, if that time is ascertainable. However, it goes on to further state that in
no event shall it go back further than a period of six months. This wording disturbs me because we
have been consistently in dialogue with TRA concerning the inaccuracy of the metering and they
have chosen not to respond in a timely manner. This has gone on for approximately 2 1/2 years.
Now that an inaccuracy has finally been acknowledged by TRA, it appears the contract states that
we can only go back six months for adjustments. This seems highly unfair to the City.
There are a couple of items that I would like to determine if we have any legal standing on: 1) Is
my comprehension of the contact in this area accurate in the fact that even though they have been
notified for several years of this problem that we can only go back six months to obtain an
adjustment in the rates we pay?; 2) Because of the March 11, 1993 letter does the City have any
standing legally to require an adjustment period that began six months prior to March 11, 1993, i.e.
September 11, 1992?
Based on just the initial reading that has been submitted, the six month period adjustment is
equivalent to approximately $125,000. However, the adjustment for the period of which we
contend there has been an inaccuracy is probably more in the range of $600,000. As you can see
we could be discussing as much as $500,000 difference in what we believe TRA owes the City in
adjustments and what the contract supposedly states.
If you should have any questions concerning this issue please feel free to contact me.
cc: Jim Witt
Alan Johnson
Howard Pafford