R2019-143 2019-06-10 RESOLUTION NO. R2019-143
A Resolution of the City Council of the City of Pearland, Texas, adopting and
implementing a Policy for Utility Service Requests in the City's Extra-territorial
Jurisdiction ("ETJ").
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Policy for Utility Service Requests in the ETJ, a copy of which is
attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and
approved.
PASSED, APPROVED and ADOPTED this the 10th day of June, A.D., 2019.
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TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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Exhibit "A"
Policy: Requests for Utility Service in the ETJ
June 10, 2019
BACKGROUND- Owners of property located in the City's ETJ on
occasion petition the City to connect to the City's water and/or sanitary
sewer utilities. The City's general policy regarding request for service is
to allow connection provided the property owner also petitions the City for
annexation into the City's incorporated limits. The City is generally limited
by state law to annexing property that is adjacent and contiguous the
City's incorporated boundaries, therefore this policy is intended to
establish the criteria by which requests for connection to City utilities will
be considered. However, it is the general policy of the City that properties
should be served by City utilities that are within the City of Pearland's
incorporated area and that any limited exceptions should be guided by
the policy set out below.
II. ETJ REQUESTS FOR CONNECTION TO CITY UTILITIES (PROPERTY
ADJACENT TO CITY LIMITS) Owners of property located adjacent to
the City's incorporated limits shall be required to submit a petition for
annexation into the city limits along with the request for connection to
City utilities. The annexation petition shall be processed in accordance
with Chapter 43 C-3 of the Texas Local Government Code (the "Act").
Once the property is annexed by the City, the property owner shall be
eligible to connect to City utilities, provided utilities to serve the property
exist at the time of annexation.
III. ETJ REQUESTS FOR CONNECTION TO CITY UTILITIES (PROPERTY
NOT ADJACENT TO CITY LIMITS)- Owners of property not located
adjacent to the City's incorporated limits may be eligible for connection to
City utilities if, prior to the City's consent to connect to City utilities, a
Development Agreement is negotiated that provides the following:
a. PETITION FOR ANNEXATION OF PROPERTY- The property owner
irrevocably petitions and consents, on its behalf and on behalf of all
current and future owners of the property, to the full purpose
annexation of the Property in accordance with the procedures set
forth in the Act.
i. Filed In Real Property Records. The Development
Agreement shall be filed in the Real Property Records of the
County where the property is located.
ii. Binding on Successors in Interest. All conditions and
covenants of the Development Agreement are declared to be
covenants running with the land and shall be fully binding
upon all persons acquiring any interest in all, or a portion of
the Property described herein, whether by descent, demise,
purchase, gift or otherwise. The Agreement and the benefits
and obligations created thereby shall inure to the benefit of
and be binding upon the parties hereto and their successors,
transferees and assigns. Any purchaser of all or any portion of
the Property assumes and agrees to be bound by the
covenants and agreements of the Agreement that apply to the
Owner. Any person who sells or conveys any portion of the
property shall, prior to such sale or conveyance, give written
notice of this Agreement to the prospective purchaser or
grantee, and shall give written notice of the sale or
conveyance to the City.
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iii. Written Agreement for Services. Pursuant to Section
43.0672 of the Act, the parties agree that the Agreement shall
constitute an agreement for the provision of services to the
property, and that upon annexation of the property, the City
shall provide all available municipal services to the Property in
the same manner it provides municipal services to all other
properties in the City.
iv. Annexation Effective Date. The property owner
acknowledges that the City will proceed with the annexation
process upon receipt of the annexation petition and the
effective date of the annexation will be the future date upon
which the property becomes adjacent to the City's
incorporated limits.
b. DEVELOPMENT OF THE PROPERTY- The property owner agrees
to the following terms regarding the development of the property:
i. Land Uses Prior to Annexation. The Owner covenants and
agrees not to use the Property for any use other than for what
is allowed by the Development Agreement. The Owner also
covenants and agrees that the City's applicable Zoning
District, as defined in the City's Unified Development Code,
shall apply to the Property. The Owner agrees that the City is
authorized to enforce all of the City's regulations and planning
authority that do not materially interfere with the use of the
Property for the agreed upon use in the same manner the
regulations are enforced within the City's boundaries.
ii. Applicable Ordinances and Codes. The owner agrees that
the development located within the boundaries of the property
will be constructed in accordance with the City's ordinances,
codes, and regulations in effect at such time of construction,
including but not limited to, the Pearland Code of Ordinances,
the Unified Development Code, the Engineering Design
Criteria Manual, and the adopted building codes.
iii. Building Permits and Inspections. The owner agrees that
all new construction of improvements within the boundaries of
the Property shall be required to obtain building permits from
the City and shall be subject to City inspections. Nothing in
the agreement excuses compliance with Brazoria County's
regulations; however, in the event the County's regulations
and the City's regulations differ, the more stringent regulation
shall apply.
iv. No Waiver of City Standards. Except as may be specifically
provided by the Agreement, the City will not waive or grant
any exemption to the property or owner with respect to City
regulations or ordinances, including without limitation, platting,
permitting or similar provisions.
c. UTILITY SERVICE PRIOR TO ANNEXATION-The property owner
agrees to the following terms regarding Utility services prior to the
date of annexation:
i. Construction of Utility Extensions. The owner shall be
responsible for the design, construction and all costs
associated with the construction of utility extensions required
to serve the Property. The sizing of the utilities shall be in
accordance with the City's Water Master Plan and Wastewater
Master Plan. The design and construction of the utilities shall
be in accordance with plans approved by the City Engineer.
ii. Utility Services Rates. The City shall provide the agreed
upon utility services to the owner of the property at 1 1/2 times
the rate that customers located in the city limits pay. The
amount is subject it change at any time as modifications are
made to the rate structure for customers within the city limits
are changed.
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1. If the property connected to City utilities is not located
within the City's Advanced Metering Infrastructure
communications network system:
a. An additional monthly charge of shall be added
to cover the cost of manual/drive-by meter
readings; OR
b. The property owner may pay to install a radio
communications tower and all associated
communications equipment at a site of the
City's choosing, within a public right-of-way, if
available to provide connectivity to the City's
Advanced Metering Infrastructure
communications network.
2. A property owner petitioning to connect to the City's
Sanitary Sewer system with no connection to the water
system will be required to have a City water meter
connected to their domestic water service line, no
matter the source of water, to establish the winter
quarter average water usage to calculate the
volumetric portion of the sewer rate. The base rate for
residential sewer will be the 5/8" meter rate.
iii. Impact Fee Equivalent. An agreement by the parties that if
the property were in the City an Impact Fee would apply; but
that, as the property is not yet annexed into the City, an
impact fee equivalent shall apply, which fee shall be
calculated by multiplying what would be the impact fee, if the
property were in the City, by 2.
iv. Acquisition of Easements. All easements required for utility
service to the property shall be provided at the cost of the
property owner. The owner shall retain a surveyor, approved
by the City, to prepare a survey of the required easements,
including property descriptions and parcel maps needed to
acquire the easement. . Prior to the City's initiation of required
easements, the Owner shall pay all reasonable third party
costs for the easement acquisition, including, but not limited to
surveying, engineering, appraisal, right-of-way consultant,
legal and compensation to owners.
v. Deposit for Easement Acquisition. The owner shall make
deposit(s) with the City for acquisition costs, either in escrow
or by letter of credit. Any funds shall be set aside in a
separate, federal insured account with a federally regulated
financial institution, and a copy of each monthly statement
provided promptly to the owner, and a copy of each monthly
statement provided promptly to the Developer. Any letter of
credit shall be issued by a federally regulated financial
institution with assets of no less than $1,000,000,000.00 with
the City as beneficiary, shall have a minimum 12 month term,
and shall provide that if the term is not extended (or a
replacement letter of credit provided) within the last 30 days,
then the City may draw on the letter of credit. Otherwise, the
letter of credit shall be "clean", not subject to other conditions
for the City to draw upon it and in form acceptable to the City,
in its reasonable discretion. If such draw occurs, then the
funds shall be used to establish the escrow required herein.
The City may draw on these funds not more frequently than
monthly, by written draw request signed by the City Finance
Director addressed to the Owner describing the actual,
reasonable costs of the acquisition process, and delivered to
the Owner at least seven(7) days prior to the proposed date
for the advance. The escrow or letter of credit shall be
established in the amount of $1,000,000.00 at the same time
the survey of the easement is provided to the City. Once the
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remaining escrow or undrawn amount on the letter of credit is
less than $100,000.00, Developer shall be replenish the
amount to $1,000,000.00 within seven (7) days. When the
required easements have been acquired, and all acquisition
costs paid, the escrow or letter of credit shall be promptly
released to the owner. The escrow or letter of credit may not
be used for any other purposes by the City and is not security
for any other obligation of the Owner. Upon request, the City
shall provide to the owner copies of invoices for all costs for
which funds are used. The owner shall provide the City a list
of any discrepancies. The City and the owner shall meet to
discuss any discrepancies and endeavor, in good faith, to
achieve agreement on the proper payment amount. If, after
reviewing these invoices and meeting with the City, the Owner
is not satisfied that the funds have been properly utilized,
then, the Owner may audit any escrow account and the
acquisition costs and related records. The owner's auditor
shall meet with the City Finance Director or outside auditor to
outline the scope and process for the audit. Only one audit is
permitted in any calendar year. No audit may cover a period
previously audited, unless necessary in the reasonable
opinion of the owner's auditor.
vi. Dedication. Upon construction and inspection of required
utility line extensions, owner shall dedicate the utility line to
the City in accordance with the City's regulations.
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