R2004-048 04-12-04 RESOLUTION NO. R2004-48
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO AN INTERLOCAL AGREEMENT WITH THE GULF COAST
WATER AUTHORITY FOR THE PURCHASE OF WATER CAPACITY IN
THE SOUTHEAST WATER PLANT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain interlocal agreement by and between the City of Pearland
and the Gulf Coast Water Authority, a copy of which is attached hereto as Exhibit "A" and
made a part hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an interlocal agreement with the Gulf Coast Water
Authority, for the purchase of water capacity in the Southeast Water Plant.
PASSED, APPROVED and ADOPTED this the 12th dayof April ,
A.D., 2004.
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
Exhibit "A"
Resolution No. R2004-48
INTERLOCAL SERVICES AGREEMENT
This INTERI,OCAL SERVICES AGREEMENT (this "Agreement") is made and entered
into as of the ~. day of ~'vl, o~rok,~ ..... ~_, pursuant to Chapte. r 791, Texas Government Code, as
amended, by and b,.tv~,.e,, 'tI-~e-*GULF C L)AS'I WATER AUTHORITY, a Conseiwation and
reclamation district and a governmental agency and body politic and corporate and a municipal
corporation of the State of Texas (the "Authorit,~"), the CITY OF PEARLAND, TEXAS. a
muni,_'.ipal corporation and home-rule city situated in Brazoria County, Texas, ("Pearland"), which
hereby agree as follows:
RECITALS
WHEREAS, Pearland desires to acquire 10 MGD of capacity in the expansion of the South
East Water Purification Plant (the "Plant") situated in Harris County, Texas, and operated by the City
of Houston, Texas ("Houston"), for the purpose of providing water to the Pearland municipal water
system; and
WHEREAS, the Authority presently has participating rights of 16.5 MGD of capacity in the
Plant on behalf of the City of League City ("League City"); and
WHEREAS, Pearland desires that the Authority negotiate with Houston to purchase 10 MGD
of the 80 MGD expansion of the Plant which ii. would acquire on behalfofPearland urtder a contract
with Houston and t~.e other co-owners of the Plant (the "Cost Sharing Agreement,') and supply water
to Pear!and pursuant to a water supply contract (the "Pearland Water Supply Contract"); and
WHEREAS, the Anthority and Pearland are entering into this Agreement for the purpose of
setting forth the services to be provided by the Authority to Pearland in negotiating with the City of
Houston and the obligations of Pearland with respect thereto; and
WHEREAS, the Board desires to authorize the General Manager of the Authority to
negotiate the Pearland Water Supply Contract pursuant to which the Authority would supply the
water from the Plant to Pearland; and
WHEREAS, the Board of Directors of the Authority (the "Board") and the City Council of
Pearland will attthorize the transactions which are the subject of this Agreement;
NOW THEREFORE for good and valuable consideration the parties agree, as follows:
Section 1. Term. The initial term of this Agreement shall be March 1,2004, through the
earlier of: (i) March 3 !, 2005; or (ii) when the Cost Sharing Agreement betwem~ the Authority and
the City of Houston on behalf of the City of Peariand and the Water Supply Contract between the
Authority and Pearland have been executed by all parties; or (iii) either party to this Agreement
notifieg the other in writing that they are terminating ti'tis Agreement and all amount due and payable
to the Authority in Section 4 hereof has been received; provided, however, that the: Authority shall
not be obligated to execute the Cost Sharing Agreement until Pearland and the Authority have
approved and executed the Pearland Water Supply Contract.
Sen'ices Interlocal Agreement with City of Pearland (1)_031604 810
Section 2. Services to be i~rovided ~b/!2the Authority. During the term of this
Agreement, the Authority agrees to provide to Pearland the following services:
(a)
The Authority and, .at its request, Vinson & Elkins L.L.P., its counsel; shall meet and
negotiate with Houston and the other Participants in the Plant in order to obtain an
executed Cost Sharing Agreemep, t..
(b)
The Authority shall promptly and regularly inform the City Manager of Pearland as to
the status of such contract negotiations, and obtain his comments.
(c)
The Authority shall obtain Pearland's approval of the Cost Sharing Agreement and
the Pearland Water Supply Agreernent prior to execution thereof by the Authority.
(d)
The Authority's employees shall perform the necessary clerical and administrative
work required fbr the Authority to perform its obligations hereunder.
(e)
The Authority shall draft the documentation required for the Authority's Pearland
Water Supply Contract.
Section 3. Certain Obligations of Pearland. During the term of this Agreement,
Pearland agree as follows:
(a)
Pearland shall cooperate with and share information with the Authority that the
Authority deems neccssa%' or desirable to provide the services described in Section 2
hereof.
(b)
Pearland shall make available to the Authority any access or an)' easements or rights
of way necessmT for the Authority to per5arm the services.
(c) Pearland shall pay to the Authority the amounts described in Section 4 hereo£
Section 4. Payments by Pearland to Authority. In consideration for the services to be
performed by the Authority:
(a)
Pearland shall pay the Authority a monthly administrative fee of $300 per month for
its employees time.
(b)
Pearland shall also reimburse the Authority for its actual reasonable legal fees and
expenses;
(c)
Peartand shall reimburse the Authority for its out-of-pocket expenditures directly
related to negotiating, authorizing and executing both the Cost Si,,aring Agreement
and the Water Supply Contract in an amount not to exceed $500 Per month.
(d)
Pearland agrees that payment of its obligations under this Agreement shall be an
operating expense of its waterworks system.
(e) Pearland shall not obtain the services described in Section 2 from any other party.
Services Interlocal Agreement with City of Pearland (1)_031604 8 l0 2
(f)
The Authority shall bill Pearland monthly for the mounts set forth above and
payment shall be made to the address set forth below within 30 days of receipt of
such invoice.
(g) Pearland shall make such payments out of current revenues available to it.
Section 5. Notice. Al! notices under tl4is Agreement shall be in writing and sent by U.S.
Mai!, overnight deliveLw, confirmed facsimile or delivered in person and shal} be deemed to have
been given when mailed, sent or delivered to the party at their respective addresses as set forth in this
agreement.
When to the Authority:
Gulf Coast Water Authority
3630 FM 1765
Texas City, Texas 77591
Facsimile: (409) 935-4156
Attention: General Manager
Pearland:
City of Pearland
3519 1 iberw Dr.
Pearland, Texas 77581
Facsimile: (281)-652-1708
Attention: City Manager
Section 6. Cost Sharing Agreement and Pearland Water Supply Contract Subject to
Board Approval. Nothing in this Agreement shall obligate the Authority or Pearland to execute and
deliver either the Cost Sharing Agreement or the Pearland Water Supply Contract if the governing
body of such entity: determines by resolution that the purposes for which they entered into this
Agreement cannot be attained by further negotiation; authorizes the notice of termination described
in Section 1 hereof; and pays all amounts due and owing to the Authority set: forth in Section IV
hereof.
Section 7. Entire Agreement. This Agreement constitutes ~ entire agreement between
the parties as to the matters described herein.
Services Interloeal Agreement ~ith City of Pearland (1)_031604 810 3
Execmed this the
day of
i'~ ~x¢ e-.M ,2004.
GULF COAST WATER AUTHORITY
~~1 Manager
CITY OF PEARLAND, TEXAS
By:
Bili Eisen'?~ity Manager
ATTEST:
APPROVED AS TO FORM:
By:
City Attorney
Services lnterlocal Agreement with City of Pearland (t)_031604 810Signature Page for lnterlocal Services Agreement
I
CERTIFICATE FOR RESOLUTION 2004-001
STATE OF TEXAS §
COUNTY OF GALVESTON §
I, the undersigned officer of the Board of Directors of Gulf Coast Water Authority,hereby
certify as follows:
1. The Board of Directors of Gulf Coast Water Authority convened in a regular meeting
on the 1 8th day of March 2004 and the roll was called of the duly constituted officers and members of
said Board, to-wit:
W. W. Latimer President
James E. Yarbrough Vice President
John W. Knust Secretary-Treasurer
Carlton A. Getty Assistant Secretary-Treasurer
John P. Klass, Jr. Director
Joseph C. Trahan Director
Robert C. Williams Director
and all of said persons were present, except the following absentee(s): , thus
constituting a quorum. Whereupon, among other business, the following was transacted at said
meeting: a written
RESOLUTION NO. 2004-001
APPROVING EXECUTION AND DELIVERY OF INTERLOCAL SERVICES
AGREEMENT BETWEEN GULF COAST WATER AUTHORITY AND THE CITY OF
PEARLAND TO ENTER INTO AN AGREEMENT BETWEEN GULF COAST WATER
AUTHORITY AND THE CITY OF HOUSTON FOR 10 MILLION GALLONS OF
CAPACITY IN THE CITY OF HOUSTON'S SOUTHEAST WATER PURIFICATION
PLANT ON BEHALF OF THE CITY OF PEARLAND; AUTHORIZING NEGOTIATION
OF A WATER SUPPLY CONTRACT BETWEEN GULF COAST WATER AUTHORITY
AND THE CITY OF PEARLAND RELATING THERETO; AND AUTHORIZING
CERTAIN OTHER MATTERS
was duly introduced for the consideration of said Board and read in full. It was then duly moved and
seconded that said Resolution be adopted; and,after due discussion,said motion,carrying with it the
adoption of said Resolution, prevailed and carried unanimously.
2. That a true, full and correct copy of the aforesaid Resolution adopted at the meeting
described in the above and foregoing paragraph is attached to and follows this certificate; that said
Resolution has been duly recorded in said Board's minutes of said meeting; that the persons named
in the above and foregoing paragraph are the duly chosen,qualified,and acting officers and members
Resolution 2004-001 (Pearland Interlocal Agreement).doc
of said Board as indicated therein;that each of the officers and members of said Board was duly and
sufficiently notified officially and personally, in advance, of the time, place and purpose of the
aforesaid meeting,and that said Resolution would be introduced and considered for adoption at said
meeting, and each of said officers and members consented, in advance, to the holding of said
meeting for such purpose; that said meeting was open to the public as required by law; and that
public notice of the hour, date, place, and subject of said meeting was given as required by Texas
Government Code, Chapter 551, and Texas Water Code, Section 49.063.
SIGNED AND SEALED the 18th day of March 2004.
By: '/`�I
�����itl � C. on A. Getty
\ WATER /i� Asst. Secretary-Treasurer
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Resolution 2004-001 (Pearland Interlocal Agreement).doc 2
RESOLUTION NO. 2004-001
APPROVING EXECUTION AND DELIVERY OF INTERLOCAL SERVICES
AGREEMENT BETWEEN GULF COAST WATER AUTHORITY AND THE CITY OF
PEARLAND TO ENTER INTO AN AGREEMENT BETWEEN GULF COAST WATER
AUTHORITY AND THE CITY OF HOUSTON FOR 10 MILLION GALLONS OF
CAPACITY IN THE CITY OF HOUSTON'S SOUTHEAST WATER PURIFICATION
PLANT ON BEHALF OF THE CITY OF PEARLAND; AUTHORIZING NEGOTIATION
OF A WATER SUPPLY CONTRACT BETWEEN GULF COAST WATER AUTHORITY
AND THE CITY OF PEARLAND RELATING THERETO; AND AUTHORIZING
CERTAIN OTHER MATTERS
WHEREAS,Pursuant to Section 791.026,Texas Government Code,as amended,the City of
Pearland has requested the Gulf Coast Water Authority to enter into an Interlocal Services
Agreement pursuant to which the Authority will negotiate with the City of Houston("Houston")to
purchase capacity in the planned expansion of Houston's Southeast Water Purification Plant (the
"Plant") on behalf of Pearland (the "Interlocal Agreement"); and
WHEREAS, the Authority will provide the water from the Plant to Pearland under the terms
of a water supply agreement to be negotiated between the Authority and Pearland (the "Pearland
Water Supply Contract"); and
WHEREAS,the Board of Directors of the Authority(the"Board")convened on this date at a
regular meeting open to the public and wishes to authorize the General Manager of the Authority to
execute and deliver such Interlocal Agreement between the Authority and Pearland; and
WHEREAS, the Board also wished to authorize the General Manager to negotiate the
Pearland Water Supply Contract;
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF GULF
COAST WATER AUTHORITY THAT:
Section 1. The recitals to these Resolutions,including the terms defined in such recitals,
are hereby approved by the Board and incorporated into these Resolutions.
Section 2. The Board has met and considered the form of Interlocal Services Agreement
attached hereto as Exhibit"A"and hereby authorizes the General Manager to execute such Interlocal
Services Agreement substantially in the form attached hereto with such changes as he deems
necessary or desirable.
Section 3. The Board hereby authorizes the General Manager to have prepared by legal
counsel and negotiate the Pearland Water Supply Contract for the approval of the Board.
Section 4. The Board hereby further authorizes the General Manager and any other
appropriate officials and agents of the Authority to do any and all things necessary or convenient to
carry out the transactions approved by these Resolutions.
Resolution 2004-001 (Pearland Interlocal Agreement).doc
PASSED AND ADOPTED THIS 18th DAY OF MARCH, 2004.
()3
W.W. Latimer, resident
Carlton A. Getty, Asstcretary-Treasurer
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Resolution 2004-001 (Pearland Interlocal Agreement).doe 2