Kennedale may get out of the water business – at least a major part of it

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Citizens could see another reduction of rates ? this article has been corrected to say that a final approval would be needed by council vote.
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The City of Kennedale and the City of Arlington have reached an agreement in principle that would transfers the operation and maintenance of the water and sewer system of Kennedale to Arlington. The agreement was reached in committee between the two cities and was announced Thursday night at a meeting of the Kennedale City Council. It still needs final council approval.{{more: continue}}

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For Arlington, who has excess water, it would give them another large and growing customer base and access to additional transmission lines to better serve its current customers.
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For Kennedale it helps solve a number of problems. Kennedale has to buy water as the current well system cannot handle the demand. This would provide a more stable market for that water purchase. It also has an aging system in some parts of the city that to update requires manpower and equipment beyond the city?s capability. And, it would help solve customer complaints of high rates and for some poor water taste.
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contractual obligations …
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The essence of the agreement is that Arlington would take over the daily operation of the Kennedale water and sewage system in a 5 year agreement, renewable every 5 years. The agreement does have an escape clause which would allow both city to re-evaluate the agreement and if needed to terminate under terms agreeable to both sides.?
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The current staff of the Kennedale water department would be given the opportunity to be employed by Arlington in a similar capacity. Kennedale would retain ownership of all current utility assets and would maintain the current department facility which would be used by Kennedale and Arlington.? ?
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With the agreement Arlington would be responsible for the construction of connection lines, maintain the current Kennedale system including existing wells while using their current technology and resources to improve the Kennedale system.
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Kennedale and Arlington will honor all current contracts including with Fort Worth, Arlington, Progressive Waste Management and Fathom billing management system.
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customer benefits …?
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As a result of the agreement,? the Kennedale City Council would be considering another reduction of the water/sewer rates. This would be the third rate reduction if approved since 2016. The actual benefit to each Kennedale customer will vary as to their monthly usage, size of line and type. The 2016 increase, which in some cases double or more, customer monthly costs was the impetus for the search for a better solution to Kennedale?s long term water and sewer issues.??
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Kennedale customers would see little change in the current operation as Arlington takes over other than more Arlington water department trucks in the area. The transition period is expected to last 2 months after which customers would report service issues directly to Arlington. Kennedale citizens would still be able to pay online or in person in Arlington or Kennedale city offices.
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budget obligations …??

Kennedale

would sill maintain a budget for water/sewage which will include the cost for the

Arlington operation and maintenance agreement which in the first year is

projected to be $1,092,566 and estimated typical cost of $788,000 in a typical

year. Kennedale would also need to budget for reserve emergency expenses

estimated at $150,000 per year and annual capital expenditures, estimated at

$250,000. As a result one of the budget expenditures that would go away is ?Other

Kennedale Operation Costs? which was budgeted this year at $1,654, 953. There would be no personnel budget for water department.

Note: Changes could still be made before a formal vote is taken.?

Credit for

hammering out the details of the agreement goes to the Arlington team composed

of Buzz Pishkur, Craig Cummings, Angelia Garrett, Brad Franklin, Craig Gantt

and the Kennedale team of George Campbell, Brady Olsen, Wayne Olson, Tom Gooch.?

Find this

and more information @ Kennedale/Arlington?Water

Agreement Presentation

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