Authorize Settlement of an Annexation Lawsuit Entitled City of Fort Worth, Texas v. Town of Lakeside, Texas, Cause No. 141-280413-15, to Provide for Exchange of Certain Areas Within the Cities' Jurisdiction and Certificated Water Service Areas and Authorize Execution of All Agreements Necessary to Complete the Settlement (COUNCIL DISTRICT 7)

It is recommended that the City Council:

1. Authorize the settlement of an annexation lawsuit entitled City of Fort Worth, Texas v. Town of Lakeside, Texas filed as Cause No. 141-280413-15, to include the following terms: (i) payment of $175,000.00 to Town of Lakeside in exchange for its release of certain areas within its Certificate of Convenience and Necessity for providing water service; (ii) release to Lakeside of Fort Worth extraterritorial jurisdiction along Highway 199 from Haley Road to Nine Mile Bridge Road with the exception of the North Access Road; (iii) transfer to Lakeside of two tracts of Fort Worth extraterritorial jurisdiction lying north of Lakeside along with the Certificates of Convenience and Necessity for those areas, and (iv) execution of a Boundary Agreements to memorialize the revised jurisdictional boundaries of the two cities; and

2. Authorize the City Manager or his designee to pay Lakeside $175,000.00, record the appropriate instruments, and to take all actions necessary under the settlement.

Fort Worth filed suit against the Town of Lakeside ("Lakeside") on August 17, 2015; the Fort Worth City Council ratified the lawsuit via resolution on August 25, 2015. Fort Worth's pleadings allege that Lakeside illegally annexed portions of Fort Worth's exclusive Extraterritorial Jurisdiction (ETJ):  Rankin, Confederate Parkway and Silver Creek Road, and a 119.262-acre tract east of Lakeside bisected by Highway 199. Fort Worth alleged that Lakeside relinquished to Fort Worth all its ETJ outside an area circumscribed by a mutual common boundary line established in a 1971 joint resolution. Fort Worth further alleged that each of the parcels annexed by Lakeside were outside the common boundary line.

During the course of the litigation, Fort Worth and Lakeside resumed discussions regarding Fort Worth's acquisition of Certificates of Convenience and Necessity (CCN) for property within the Fort Worth city limits. A broader discussion emerged, and it became clear that the City and Lakeside both shared the same goals of quieting boundaries and coordinating their CCNs so that each city provides water service to its own citizenry. The parties met and the following was agreed, contingent upon Council approval:

• Fort Worth will pay Lakeside $175,000 for CCN it will obtain in 19 months for property in Fort Worth City limits south of Lakeside;

• Fort Worth will have the exclusive CCN in the Casino Beach area, and Lakeside will release any claim to joint CCN;

• Lakeside will transfer its CCN in the area north of the south side of the north access road of Highway 199 to Fort Worth in five years;

• Lakeside will agree to not protest Fort Worth's acquisition of CCN at the Public Utilities Commission;

• Fort Worth will agree to not protest Lakeside's acquisition of CCN at the Public Utilities Commission;

• Fort Worth will annex the area west of Tyler to Casino Beach, and Lakeside will transfer its CCN east of Tyler to Fort Worth for this area in five years (See A on attached map);

• Fort Worth will release to Lakeside by boundary adjustment all of Highway 199 from Haley Road to Nine Mile Bridge Road except for the north access road (See D on attached map);

• Prior to November of this year, Lakeside will disannex the area north of Highway 199 (to include the northern frontage road), (see G and H on attached map), and the area east of Midland and lots 1 through 7 of the north side of Block 4 and lots 1 through 7 of Block 5 of the Ella Young Subdivision of Tarrant County Texas fronting on the north side of Ella Young, (see area F on the attached map).

• Fort Worth will annex the area north of Highway 199 (to include the northern frontage road), (see G and H on attached map), the area east of Midland, including lots 1 through 7 of Block 4 and lots 1 through 7 of Block 5 of the Ella Young Drive Subdivision of Tarrant County Texas fronting on the north side of Ella Young Drive (see area F on the attached map), and the remainder of Fort Worth's ETJ located to the eastern boundary of Lakeside 2015 annexations (see area B on attached map), and Lakeside will release CCN to Fort Worth in these areas;  

• Fort Worth will annex, then release to Lakeside, the area that is the eastern boundary of Lakeside's 2015 annexations and the area west of the east right-of-way line of Tyler Road, (see area B on attached map), via a boundary adjustment; Lakeside will keep CCN in this area;

• Fort Worth will disannex the area between Lakeside City limits and Fort Worth's current ETJ west of Highway 199 (see area E on attached map), via a boundary adjustment;

• Fort Worth will release to Lakeside its ETJ in the triangular and rectangular-shaped tracts north of Lakeside as well as CFW's CCN in those areas, (see area C on attached map);

• Fort Worth will dismiss its lawsuit thereby allowing Lakeside to keep some of the area it annexed last year: Silver Creek, Confederate Park and Rankin Roads, and an area east of Rankin Road to the east boundary line of Lakeside's 2015 annexation; and

• Lakeside will agree that it has no remaining ETJ.

All land transactions are set forth in the descriptions attached to the M&C. The property described as acquired by Fort Worth will ultimately be in Council District 7, it is anticipated that these annexations will occur later this year.

This contract will be with a governmental entity, state agency or public institution of higher education: (The Town of Lakeside, Texas)