Fort Worth reaches settlement with Lakeside over annexation, water case

The City Council approved a $175,000 payment Tuesday to the town of Lakeside as part of a settlement in an annexation lawsuit it filed against Lakeside last year.

Fort Worth filed the suit in state District Court in Tarrant County in August 2015 saying the Lakeside Town Council violated a 1971 agreement and illegally annexed portions of Fort Worth’s extraterritorial jurisdiction south of Texas 199, and a 119.2-acre tract east of Lakeside and bisected by Texas 199.

But during lawsuit discussions, “it became clear that the city and Lakeside both shared the same goals of quieting boundaries and coordinating their [water service] so that each city provides water service to its own citizenry,” according to a city report.

“It certainly is a fair settlement and beneficial to both sides,” said District 7 Councilman Dennis Shingleton, whose district includes the area near Lakeside. “We managed to keep and maintain those assets that belong to the city of Fort worth, especially the integrity and quality of Lake Worth and infrastructure around the lake that are necessary for us to maintain water quality for our citizens. It’s important we did it this way. It’s important that we resolved the problem at least to our favor.”

Lakeside was providing water to about 70 Fort Worth residents. Fort Worth will pay Lakeside $175,000 out of the current water and sewer operating budget to release those residents from Lakeside water service and make up for lost revenue to Lakeside.

As part of the settlement, Fort Worth will give a section of its extraterritorial jurisdiction generally north of Texas 199 and south of Nine Mile Bridge to Lakeside as well as a small tract west of Surfside. Fort Worth retains the Casino Beach area along Lake Worth, and tracts off of Roadrunner and Bluebonnet, north of Texas 199.

It will take up to five years to complete the settlement because sewage and other water infrastructure work needs to be done, but annexations spelled out in the settlement should be completed by year’s end, the city said. The settlement involves several city boundary shifts, as well as both municipalities releasing claims to the land.

Lakeside approved the settlement Sept. 22. The settlement will be filed in state District Court.

In other action:

▪ The council unanimously approved a policy that waives permitting and inspection fees for residents who voluntarily install sidewalks in neighborhoods where there are none. Sidewalks will still need to be permitted, built by approved contractors and inspected, the city said. The council hopes that removing the fee will encourage residents to build sidewalks, creating more walkable communities. In fiscal 2015, the city collected $7,200 in fees from 72 sidewalk projects. Councilwoman Ann Zadeh asked that the policy cover replacing dilapidated sidewalks as well.

▪ Also unanimously, the council approved a resolution supporting Scenic Texas in its efforts seeking a rehearing on the August ruling in a state appeals court in Austin that said parts of 1972 Texas Highway Beautification Act violate free speech rights. The ruling stems from a 2011 case filed by Auspro Enterprises against the Texas Department of Transportation, which ordered the business to remove a Ron Paul presidential sign in front of its business and fined the company for not getting a permit. A District Court ruled in Auspro’s favor, but the appeals court reversed the decision.

This story was originally published September 28, 2016 at 3:11 PM with the headline "Fort Worth reaches settlement with Lakeside over annexation, water case."