From
Ron McCuller, Public Works Director
Title
Intergovernmental contract with Johnson County Special Utility District to revoke current contract (March 6, 2010) and enter into a new contract
Presenter
Ron McCuller, Public Works Director
Recommended Action
Approve
Analysis
In 2010, some 11 years after the 1999 annexation of the South Sector, we entered into a treated water supply agreement with Johnson County Special Utility District (JCSUD). The purposes of the agreement were to 1) provide a water supply to the annexed area on the North of U.S. 287 and East of S.H. 360 (then know as the Baruch Property), 2) transfer the CCN (Certificate of Convenience and Necessity) owned by JCSUD but within the Grand Prairie city limits to Grand Prairie. {Note: a CCN is a state issued document that gives a utility the right to serve a given area, which is usually exclusive (as in the case) and excludes others from serving the area], and 3) provides that JCSUD serve the area with water for a period not to exceed (5) years, when Grand Prairie would have a line in place to serve the area whereupon the pipeline flow would reverse and the City would sell water to JCSUD. The $1.1 million pipeline was to be largely paid for by the developer with the City and JCSUD having minimal participation of $200,000 each.
The Baruch property development was dropped by the owner who sold the land to others. There being no reason to activate this contract, both parties agreed to wait and see if the new owner would agree to the arrangement. However, Grand Prairie proceeded with our plan to extend a water line in a co-operative jointly funded construction with Mansfield to construct a water line to this area of Grand Prairie.
The new owner is now intending to develop the land but since we now have water available from our own line, Grand Prairie no longer needs this contract to supply water to the area. Also, the current construction of the S.H. 360 main lanes in this area makes ex...
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