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2006-340S:\Our Documents\Ordinances\06\Interlocal Agrmt-Highland Village.doc ORDINANCE NO.d6W,5, -9~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN INTERLOCAL COOPERATION AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE CITY OF HIGHLAND VILLAGE, TEXAS TO PROVIDE GAS WELL INSPECTION SERVICES; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves an Interlocal Cooperation Agreement between the City of Denton, Texas and the City of Highland Vlilage to provide gas well inspection services substantially in accordance with the Interlocal Cooperation Agreement which is attached hereto and incorporated herein by reference (the "Agreement"). The City Manager, or his designee, is authorized to execute the Agreement on behalf of the City. The City Manager, or his designee, is authorized to carry out the City's rights and duties under the Agreement. Any prior actions of the City taken pursuant to the Agreement are hereby ratified. SECTION 2. The City Council finds that the Agreement will benefit the City of Denton and is in the public interest. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the~day of 2006. &44~r PE . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, ITY SECRETARY By: APPRO D AS TO LEGAL FORM: EDWIN M. S ER, CITY TTORNEY By: THIS AGREEMENT is made and entered into as of the Effective Date as hereinafter defined, by and between the City of Denton, Texas, a home rule municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as " Denton" and the City of Highland Village, Texas, a home rule municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as "Highland Village". WHEREAS, Highland Village is in need of gas well inspection services; and WHEREAS, Denton and Highland Village desire to enter into this agreement under the authority and subject to the provisions of Texas Government Code, Chapter 791, the Interlocal Cooperation Act for the provision of gas well inspection services; and WHEREAS, each party hereto is capable of performing the services provided for herein, and each party paying for the performance of governmental functions or services is making those payments from current revenues available to the paying party and all payments are in an amount that fairly compensates the performing party for the services or functions performed under this agreement; NOW, THEREFORE, it is mutually agreed by the parties hereto as follows: The term of this Agreement shall commence as of the Effective Date and shall expire on the 21 s` day of February, 2011 unless terminated earlier as provided herein. II. Denton shall provide gas well inspection services as follows: 1. Inspection fee of $1,200 per well, unless otherwise agreed to in writing by both parties to this Agreement, would include the following: Two site inspections will be provided with the first inspection following installation of the drilling rig to inspect for compliance with municipal drilling ordinance and the second following completion of the drilling and installation of the operating facilities. Each inspection will include two site visits, the first to inspect and identify any issues of non- compliance to be noted on a Gas Well Inspection Report and the second to determine if compliance has been achieved in the specified time limit. The site visit following completion of the well will include inspection for proper removal of the rig, remediation of on-site reserve and frac pits, and set-up for operation of tank batteries. Written Inspection Reports will be provided to Highland Village and a copy to the gas well operator for each visit. The only items to be inspected by the Gas Well Inspector will be those agreed upon by both parties and set forth on the Gas Well Inspection Report; 2. Each additional inspection in response to a specific request by the City Manager will be performed at a cost of $200, unless otherwise agreed to in writing by both parties to this Agreement, per site visit; 3. Complaints filed with other agencies (i.e. TRC; EPA; TCEQ; etc.) will be the responsibility of Highland Village without direct participation by the Gas Well Inspector unless requested as an additional service by Highland Village; 4. Enforcement of Highland Village gas well regulations will be the sole responsibility of Highland Village. The Gas Well Inspector may identify violations and report them to the City Manager or designee for enforcement action. The Gas Well Inspector may be required, as an additional service, to testify in court regarding any noted violations of the Highland Village gas well regulation ordinance; 5. The Gas Well Inspector may inspect for specific operating safety issues as identified on an Inspection Checklist to be approved by both parties to this agreement as a part of the first inspection (i.e. fire extinguisher installation; no smoking signs; etc 6. Site inspection includes collection of water samples from the Reserve Pit for content analysis by a City of Denton Lab. The fee for City of Denton Lab analysis shall be as identified in Exhibit A to this Agreement; additional analysis performed by a non- municipal laboratory may be requested by Highland Village for a fee identified in Exhibit A; 7. Site inspection does NOT include inspection of access route and road damage remediation action; and, 8. Any Denton employee that performs services under this agreement will remain an employee of Denton, but will perform gas well inspection services under the supervision and control of the Highland Village City Manager. In addition to the fees specified above, for the services of the Denton Gas Well Inspector, Highland Village will reimburse Denton the sum of $50.00 per hour. In addition to the gas well inspection services specified in this paragraph, the City Manager may request additional services from Denton's Gas Well Inspector. Highland Village shall reimburse Denton the sum of $50.00 per hour for any additional services, as defined in this agreement and in addition to the gas well inspection services specified above. III. This Agreement may be terminated in whole or in part, with or without cause, by Denton or Highland Village upon forty-five (45) days' written notice to the other via certified mail, return receipt requested, or facsimile at the address or fax numbers set forth below. For Denton: George Campbell, City Manager City of Denton City Hall 215 E. McKinney Street Denton, Texas 76201 Fax No. 940-349-8596 City of Denton Gas Well Inspection Services Page 2 of 4 For Highland Village: Michael Leavitt City Manager City of Highland Village 1000 Highland Village Road Highland Village, Texas 75077 Fax No. (972) 317-0237 In the event of termination Highland Village shall fully pay Denton for services completed through the effective date of termination. IV. The covenants, conditions and terms hereof are to be construed under the laws of the State of Texas and are performable by all parties in Denton County, Texas. The parties mutually agree that venue for any obligation arising from this Agreement shall lie in Denton County, Texas. V. This writing is intended by the parties as a final expression of their agreement and as a complete and exclusive statement of the terms of their agreement. This Agreement can be modified only in writing signed by both of the parties or their duly authorized agents. VI. This Agreement is not intended to extend the liability of the parties beyond that provided by law. Neither Denton nor Highland Village waives, nor shall be deemed hereby to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. VII 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. VIII. 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 and all necessary resolutions extending said authority have been duly passed and are now in full force and effect. Signed to be effective the lr2~1 day of 2006 (the "Effective Date"). CITY OF D NTON, BY: - George Campbell City Manager City of Denton Gas Well Inspection Services Page 3 of 4 ATTEST: JE IFER WALTER , CITY SECRETARY BY: APPR ED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: VILLAC,F ~vPOPpORgT~ Gym FEB p U C? 2 ATTEST- = S 63 ~ IUI`^p", BY: ~2. V/1 APPROVED ~ASTO FORM AND LEGALITY: BY"` ~TGt wG ~7r>(,c,N n h~ Dorothy G. Palun o, City Attorney City of Denton Gas Well Inspection Services Page 4 of 4 CITY OF HIGHLAND V LAGE BY: Michael Leavitt City Manager Exhibit A City of Denton Oil and Gas Monitoring Laboratory Analysis Price Schedule General Water Quality Analysis Performed by City of Denton Lab: (sample collection included as part of initial inspection fee) Cost to be as shown unless otherwise agreed to in writing by both parties to this Agreeemnt. Analysis Cost pH (Standard Units) $15.00 Conductivity(microsiemens) $15.00 Salinity;as Chloride (ppm) $15.00 Total Dissolved Solids $15.00 Chloride (ppm) $25.00 TPH (ppm) Fiber optic method Immunoassay method Combined Cost $30.00 Total $115.00 Note: If requested by City of Highland Village , TPH will be tested by independent lab using a generally accepted test method. Sample collection shall be billed at a minimum of one hour by City of Denton. Independent lab cost to be billed directly to City of Highland Village by lab. Initial: Cit of Highland Village Date: t-t~ -dam Initial: City of Denton Date: 12-2-01 Exhibit A City of Denton - Gas Well Inspection Services Page 1 of 1