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R2022-175 2022-08-22RESOLUTION NO. R2022-175 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter a First Amended Utility Agreement with Brazoria County Municipal Utility District No. 69. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain First Amended Utility Agreement by and between the City of Pearland and Brazoria County Municipal Utility District No. 69, 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 a First Amended Utility Agreement with Brazoria County Municipal Utility District No. 69. PASSED, APPROVED and ADOPTED this the 22nd day of August, A.D., 2022. ________________________________ J.KEVIN COLE MAYOR ATTEST: ________________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ________________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: 2BED3E07-4DC7-44A0-AA5C-D8B4A12C4614 FIRST AMENDMENT TO UTILITY SERVICES AGREEMENT This First Amendment to Utility Services Agreement (this "First Amendment") is made and entered into as of ____________, 2022, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and home-rule city of the State of Texas (the "City"), and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 69, a body politic and corporate and a political subdivision of the State of Texas organized under the provisions of Article XVI, Section 59 of the Texas Constitution (the "District"). WHEREAS, the City and the District entered into that certain Utility Services Agreement dated February 7, 2018 (the "Utility Agreement"), pursuant to which the City agreed to pay to the District the Annual Payment (as defined in the Utility Agreement), which Annual Payment constitutes a portion of the ad valorem taxes collected by the City on land and improvements located within the District; WHEREAS, the District desires to annex additional land into the boundaries of the District, including that certain 49.654 acres described in Exhibit "A" attached hereto and incorporated herein (the "Annexation Tract"); and WHEREAS, the City and the District now desire to amend the Utility Agreement to provide that the Annual Payment obligations therein do not apply to taxes collected by the City on land, and the improvements thereon, annexed into the District's boundaries after the effective date of the Utility Agreement, including the Annexation Tract. NOW, THEREFORE, for and in consideration of the mutual covenants and terms contained herein and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the City and District agree as follows: 1. Definitions. Unless otherwise specifically set forth in this First Amendment, all capitalized terms herein shall have the meanings set forth in the Utility Agreement. 2. Amendment to Subsection 6.01(a). Subsection 6.01(a) of the Utility Agreement is hereby deleted in its entirety and replaced with the following: (a) In consideration of the development of the land within the District and the related increase in the taxable value of such land to the City through the acquisition of and construction of the Facilities by the District and in order to enhance the economic feasibility of the District and more equitably distribute among the taxpayers of the City and the District the burden of ad valorem taxes to be levied from time to time by the City and the District, the City agrees to collect and pay to the District a portion of the ad valorem taxes collected by the City in future years on the land and improvements within the area described by metes and bounds in Exhibit "B" attached hereto and incorporated herein by reference (the "Annual Payment"). It is expressly agreed to by the City and the District that the Annual Payment shall not include ad valorem taxes collected by the City from land and improvements annexed into the boundaries of the District after the effective date hereof. The Annual Payment shall be a payment of a portion of the City's tax revenues actually collected and received by the City, exclusive of any interest and penalties paid by the taxpayer to DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F the City and exclusive of any collection costs incurred by the City. Before the District has issued Bonds, all Annual Payments received by the District from the City shall be deposited by the District into the general operating fund of the District and may be used for any lawful purpose. Once the District has issued Bonds, all Annual Payments received by the District from the City shall be deposited by the District into a debt service fund of the District and shall be applied solely to the payment of the Bonds and other debts, liabilities, and obligations of the District to or for the benefit of any persons or entities relating to the financing, construction, and acquisition of all or any portion of the Facilities. 3. Amendment to Section 9.04. The District's address for purposes of giving notice is hereby revised to: Brazoria County Municipal Utility District No. 69 c/o Schwartz, Page & Harding, LLP 1300 Post Oak Blvd, Suite 2400 Houston, TX 77056 Attn: Board of Directors Telefacsimile No. 713-623-6143 4. Addition of Exhibit "B". Exhibit "B" attached hereto is hereby added to the Utility Agreement and incorporated therein for all purposes. 5. Continuing Effect. Except as modified or amended in this First Amendment, all terms and provisions of the Utility Agreement shall remain in full force and effect without modification or amendment. 6. No Further Amendments. This First Amendment and the Utility Agreement constitute the entire agreement between the District and the City with respect to the subject matter hereof and supersede all prior and contemporaneous negotiations, understandings and agreements. This First Amendment may only be modified or amended by a written instrument executed by both the District and the City. 7. Severability. The invalidity or unenforceability of any particular provision, or any part thereof, of this First Amendment shall not affect the other provisions hereof and this First Amendment shall be construed in all respects as if such invalid or unenforceable provision were omitted. 8. Headings. The headings contained in this First Amendment are inserted as a matter of convenience only and in no way define, limit, extend or describe the scope of this First Amendment or any provision hereof. 9. Counterparts. This First Amendment may be executed in one or more original or facsimile counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same document. [SIGNATURES COMMENCE ON THE NEXT PAGE] DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F IN WITNESS WHEREOF, the City and the District have executed this First Amendment to be effective as of the date first written above. THE CITY OF PEARLAND, TEXAS By: ___________________________ Mayor ATTEST: By: ____________________ City Secretary (SEAL) COUNTERSIGNED: By: City Manager APPROVED AS TO FORM: By: City Attorney DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 69 By: President, Board of Directors THE STATE OF TEXAS § § COUNTY OF BRAZORIA § This document was acknowledged before me on this day of tJ ouemk,,,c , 2022,by ... ,President of the Board of Directors of Brazoria County Municipal Utility District No. 69,a political subdivision of the State of Texas,on behalf of said political subdivision. L Notary Public in and for The State of Texas (SEAL) ww . MATTHEW R. REED « "• NOTARY ID 012907560-4 s' ` Mu Com ssion Expires September 09,2024 r� 'I^ � EXHIBIT A DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F EXHIBIT B DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F DocuSign Envelope ID: 04FF6834-E7F0-4863-A8AD-3693831E2C0F