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R2002-0185 11-25-02RESOLUTION NO. R2002-18,~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A STRATEGIC PARTNERSHIP AGREEMENT AND SALES AND USE TAX AGREEMENT WITH BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Strategic Partnership Agreement and Sales and Use Tax Agreement by and between the City of Pearland and Brazoria County Municipal Utility District No. 1, copies of which are attached hereto as Exhibits "A" & "B" and made a part hereof for all purposes, are 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 Strategic Partnership Agreement and Sales and Use Tax Agreement with Brazoria County Municipal Utility District No. 1. PASSED, APPROVED and ADOPTED this the 25th A.D., 2002. day of November TOM REID MAYOR ATTEST: ~ S~ETARY ~/ APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY Exhibit "A" Resolution No. R2002-185 STRATEGIC PARTNERSHIP AGREEMENT THE STATE OF TEXAS § COUNTY OF BRAZORIA § This STRATEGIC PARTNERSHIP AGREEMENT (this "Agreement") is made and entered into, effective as of December 1, 2002, by and between 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. 1, a conservation and reclamation district created pursuant to Article XIV, Section 59, Texas Constitution and operating pursuant to Chapters 49 and 54, Texas Water Code (the "District"). RECITALS 1. The District was created with the consent of the City for the purpose of providing water, sewer, and drainage facilities to the land within its boundaries. The District is located wholly within the extraterritorial jurisdiction ("ETJ") of the City, but is not within its corporate limits. The District is part of a master planned community of approximately 2000 acres (the "Development"). 2. The provisions of Tex. Local Gov't Code, §43.0751 (Vernon Supp.2000) (the"Act") state that the City and the District may enter into a strategic partnership agreement that provides for the terms and conditions under which services will be provided and funded by the City and the District and under which the District will continue to exist for an extended period after annexation of the land within the District by the City. 3. The City and the District, after the provision of required notices, held public hearings in compliance with the Act. Based upon public input received at such hearings, the City and the District wish to enter into a strategic partnership agreement to provide the terms and conditions under which services will be provided by the City and the District and under which the District will continue to exist for an extended period of time after the District is annexed for full purposes. 4. The City and the District recognize that the District is part of the Silverlake Community and that they will cooperate with each other in their mutual efforts to bring the U:/VANESSA/MUDOTHER/SPA.FINAL. 11 20.02.BC1 Silverlake Community within the full purpose jurisdiction of the City in a transition that will minimize service problems and keep the Community advised of all significant transition matters. NOW, THEREFORE, for and in consideration of the mutual agreements, covenants, and conditions contained herein, and other good and valuable consideration, the City and the District agree as follows: Article 1 DEFINITIONS The terms Act, C~ty, D~strtct, and ETJ shall have the meanings 1.01. Definitions. " "" ' "" ' ' " .... provided for them in the Recitals, above. Except as may be otherwise defined, or the context clearly requires otherwise, capitalized terms and phrases used in this Agreement shall have the meanings as follows: ao "Limited district" means a district that, pursuant to a strategic partnership agreement, continues to exist after full-purpose annexation by a municipality in accordance with the terms of a strategic partnership agreement. bo "Strategic partnership agreement" means a written agreement between a municipality and a district that provides terms and conditions under which services will be provided and funded by the parties to the agreement and under which the district will continue to exist for an extended period of time if the land within the district is annexed for limited or full purposes by the municipality. Co "City's Consent" shall mean the consent of the City of Pearland to the creation of Brazoria County Municipal District No. 1 and all of the terms and conditions contained in the consent. do "Development" shall mean the construction of underground utilities and above ground commercial or residential improvements within the boundaries of the District. eo "TCEQ" means the Texas Commission on Environmental Quality or its successor agency. U:/VANES SAJMUDOTHER/SPA.FINAL. 1 t.20.02.BCI 2 1.02. Findings and conclusions. The City and the District hereby find and declare: a. The Act authorizes the City and the District to enter into this Agreement to define the terms and conditions under which services to the District will be provided and funded by the Parties and to define the terms and conditions under which the District will be annexed by the City as agreed hereunder as an alternative to annexation without the consent of the District. b. In compliance with Subsection (p) of the Act, this Agreement (i) does not require the District to provide revenue to the City solely for the purpose of an agreement with the City to forgo annexation of the District, and (ii) provides benefits to each party, including revenue, services, and regulatory benefits which are reasonable and equitable with regard to the benefits provided to the other Party. c. All the terms and conditions contained in this Agreement are lawful and appropriate to provide for the provision of municipal services and annexation. d. The District is not obligated to make payments to the City for services except as otherwise provided herein. e. This Agreement has been duly adopted by the City and the District after conducting two public hearings at which members of the public who wanted to present testimony or evidence regarding the Agreement were given the opportunity to do so. Notice of each hearing was published in the format required by Tex. Local Gov't Code, §43.123(b) and was published at least once on or after the 20th day before each public hearing. Article 2 ANNEXATION OF THE DISTRICT 2.01. Annexation procedures. Because the District is, pursuant to this Agreement, an area that is the subject of a strategic partnership agreement, the City is not required to include the District in its Annexation Plan pursuant to Tex. Local Gov't Code, §43.052. At the time that the City undertakes to annex the District for full-purposes in accordance with this agreement, the City shall follow the procedures and provide the level of services described in Local Government Code Chapter 43, Subchapter C-1. Upon the full-purpose annexation of the territory within the District by the City, the District shall continue to exist for a period of time after annexation until the occurrence of the full-purpose annexation conversion date specified herein, and in accordance with Texas Local Government Code, §43.075 l(h). U:/VANES SA/MUDOTHERJSPA.FINAL. 11.20.02.BC1 3 2.02. Operations prior to annexation. Prior to the full-purpose annexation conversion date, except as may be specifically provided in this Agreement and the City of Pearland's consent Resolution (No. R80-5, as amended), the District is authorized to exercise all powers and functions of a municipal utility district provided by law, including, without limiting the foregoing, the power to incur additional debts, liabilities, or obligations, to construct additional utility facilities, or to contract with others for the provision and operation thereof, or sell or otherwise transfer property without prior approval of the City. 2.03. Full-Purpose Annexation Conversion Date. In accordance with Texas Local Government Code §43.0751 (0(5)(A), the Full-Purpose Annexation Conversion Date shall occur on December 31, 2006. On the full-purpose annexation conversion date, the land included in the boundaries of the District shall be deemed to be within the incorporated limits of the City without need for further action by the City of District. The City and the District agree that this Full-Purpose Annexation of the District shall specify that the lands within the District shall, on December 31, 2006., be converted from the municipality's limited purpose jurisdiction to its Full-Purpose Jurisdiction. 2.04. Continuation of the District following annexation. Upon annexation of the District under the provisions of Section 2.01, above, the District will continue to exist for an extended period to allow for the completion of District operations and the integration of the District's system into the City's system, following which period the City shall act to abolish the District in accordance with applicable law; provided that, if the City has not abolished the District within 90 days after annexation, the District shall be automatically abolished on the 91st day. At such time, the City will assume all rights, assets, liabilities and obligations of the District (including all obligations to reimburse the developers within the District) and the District will not be continued or converted for limited purposes. Upon annexation, fees and charges imposed on residents of the former District for services provided by the City shall be equal to those fees and charges imposed on all other residents of the City. 2.05. Liaison Committee Appointed. Upon approval of this Agreement, the Board of Directors of the District or a subcommittee of at least two directors, shall act as Liaison Committee to coordinate with the City all matters relating to District operations and the transition to full City jurisdiction. Prior to the annexation conversion date, the District shall appoint two resident members to continue on the Liaison Committee for two (2) years following the conversion date. U:/VANESSAJMUDOTHER/SPA.FINAL. 11.20.02.BC1 4 Article 3 ALLOCATION OF MUNICIPAL SERVICES WITHIN THE DISTRICT 3.01. Fire/EMS services. The City and the District agree that the District currentlyreceives fire fighting services from the Pearland Volunteer Fire Department, and emergency medical services ("EMS") from the City of Pearland, and that pursuant to this Agreement, such services shall continue. In consideration of such Fire/EMS Services, the District agrees to make payments to the City as follows: a. The City agrees that the Pearland Volunteer Fire Department ("Department"), as a non- profit corporation, will serve the District for its actual cost in providing fire fighting services, including necessary capital improvements for future growth. The City will also provide emergency medical services based on its actual cost including necessary capital improvements for future growth. The District shall pay the City for Fire/EMS services provided hereunder based upon its proportionate share of the annual budgets for both services. The District's share shall be determined by calculating the percentage that the District's total equivalent units in each Service Area and applying that percentage to the annual budget for each service. For the initial period of this Agreement, until annual budgets are prepared by the City and the Department, the District shall pay a charge of $4.38 per unit which includes charges for both fire and EMS services. b. Equivalent Units must have active connections to the District's water supply system and are determined as follows: Type Structure Equivalent Units Single family dwelling ............................................................ Single apartment unit .............................................................. Commercial, office, retail, or distribution without fixed fire protection, per 1,000 square feet ......................................... Commercial, office, retail, or distribution with fixed fire protection, per 2,000 square fee Type Structure Equivalent Units Industrial and manufacturing with fixed fire protection per 1,000 square feet U:/VANES SAJMUDOTI-[ER/SPA.FINAL. I 1.20.02.BC1 5 Industrial and manufacturing without fixed fire protection per 500 square feet ............................................................. Retail gasoline sales .............................................................. c. For the purposes of this Article, the term "fixed fire protection" shall mean any system built into a facility which automatically controls or extinguished fire according to national consensus standards as determined by the Chief of Department or his duly authorized representative. d. Department and City shall provide a fully organized, trained and equipped fire fighting and EMS force, respectively, and each shall, to the best of its ability, maintain facilities for housing its fire and EMS equipment at locations convenient and accessible to the District. e. The City and the Department shall prepare and submit an itemized annual budget for all maintenance and operation expenses and capital improvements to the District on or before June 30 of the year following the effective date of this Agreement. The City and Department shall maintain accounting records in accordance with generally accepted accounting principles and such records shall be available for inspection at reasonable times by an authorized District representative. f. The District shall provide the City with a written report of the total equivalent units in the District as of January 1, 2002 and the charges to the District will be adjusted based upon the City's and the Department's annual budget and report of the total equivalent units being served as specified herein. The initial monthly payment by the District shall be made without demand or notice. Payments shall commence on the first full month after execution of this Agreement and the payment shall become delinquent if not paid within thirty (30) days of the due date. Delinquent payments shall include a six percent (6%) delinquent payment charge. The initial monthly payment of $4.38 per unit shall, if necessary, be adjusted after the City and the Department submit their 2003 budgets and reports of the total number of units in their Service Area. 3.02. Police protection. The District may provide for the provision of enhanced police protection services within the District by contracting with the City for such services. If provided by the City, the level of police services to be provided shall be determined by mutual agreement of the City and the District. Payment to the City with regard to any police protection provided under this Section shall be based upon the actual costs of the City, including reasonable overhead, in providing such services. U:/VANESSA/MUDOTHER/SPA.FINAL I 1 20.02.BC1 6 3.03. Solid waste services. The District shall provide solid waste collection services to the residential users within the District using the same contractor used by the City. Any solid waste collection services provided by the District pursuant to this agreement, shall be comparable to the services provided by the City. The District may, at it option, either (i) enter into a separate contract with such contractor to provide solid waste collection services to its residents, or (ii) request the City to extend its existing collection contract to cover the District. If the District elects the first option, it shall pay the contractor directly; if the District elects the second option, it shall pay the City for the costs attributable to the contract extension. Article 4 COSTS AND ASSESSMENTS 4.01. Determination of costs of municipal services. The City and the Department shall determine their actual costs of providing Fire/EMS services described in Article 3 using generally accepted municipal accounting procedures, and shall provide such costs to the District annually, at least 60 days prior to the beginning of the District's fiscal year. The costs of the these services shall be a separately accounted for and, to the extent that the City or Department receives fees, contributions, or other revenues in connection therewith, such revenues shall be accounted and used to offset the City's and the Department's costs. The District's costs shall be determined by its percentage of the total equivalent units served in relationship to the annual budgets. 4.02. Fee derived from residential property. In accordance with the Act, the District shall impose a fee on residential and non-residential property within the District to be used to pay the fees for municipal services. The fee shall be equal to the costs of providing municipal services within the District as computed in accordance with Sections 3.01 and 4.01, above, using the total number of equivalent units within the District and the City and Department Service Areas. The District may incorporate these fees in its monthly water and sewer rates for the District or, at its option, may seek voter approval of a contract for services and include these fees in its ad valorem tax rate, it being understood that Texas Commission on Environmental Quality approvals may be required for fire protection plans and contracts. 4.03. Fee for municipal services. The District shall make the payment to the City on a monthly basis, as specified herein commencing on the first full month after execution of this Agreement for its equivalent units served. The District will continue to pay voluntary contributions until payments under this Agreement commence. U:/YANES SA/MUDOTHER/SPA.FINAL, 11.20.02.BC1 7 4.04. City ofPearland/Pearland VFD. The Pearland VFD and the City are separate entities and the City has represented that the City provides most of the funding for the VFD and that the City can lawfully charge and collect fees for services. The City agrees that all payments from the District will be used for fire and EMS purposes and that the District is within the Service Area of the Pearland VFD and the City's EMS Service. Payments received by the City may be deposited in the City's General Fund provided said payments are subsequently used for fire/EMS costs. Article 5 WATER AND SEWER SERVICES PROVIDED BY THE DISTRICT 5.01. Water and Sewer Services. The District shall continue to develop, to own, and to operate and maintain a water and wastewater system in the District. The District agrees to operate and maintain its water and wastewater at the same level as the District has operated and maintained them before the annexation conversion date. The City shall have the right to periodically inspect the District's water and wastewater system. The District will cooperate with the City with regard to the use of any surplus capacity to serve areas outside the District as well as the expansion of plant facilities, if such service and/or expansion complies with existing regional agreements between the District and other districts using the facilities and is feasible. 5.02. Water and Sewer Fees. The District, prior to the Full-Purpose Annexation conversion date referenced herein, agrees to increase District's water and sewer fees to rates substantially equivalent to the City's water and sewer fees in effect at the time of the Full-Purpose Annexation conversion date. Any excess funds generated pursuant to this section shall be placed in the District's operating reserves. Upon annexation, the City shall use such funds for the benefit of the District. To facilitate the District's increase in water and sewer fees, the City shall notify the District of any water and sewer rate increases adopted by the City during the term of this agreement. 5.03. Other considerations. Except as provided herein, the District shall be subject to the regulation and approval of the City in the same manner as provided for a district located in the City's ETJ generally. U:/VANESSA/MUDOTHER/SPA.F1NAL 11.20.02.BC1 8 Article 6 SALES TAX PROVISIONS 6.01. Imposition of sales tax. The City is hereby authorized to impose its sales and use taxes within the boundaries of the District, without annexation by the City, subject to the provisions and procedures described in this Article. 6.02. Eligibility. This Article shall become effective upon the receipt of notice by the District from the City that, as a result of any Federal Census, the City is an eligible municipality under Subsection (n) of the Act. 6.03. Hearings. Upon receipt of the notice described in Section 6.02, above, the District will cooperate with the City to schedule two public hearings regarding the imposition of the City's sales and use taxes in the District, following the same notification process as provided in Subsection (d) of the Act. 6.04. Sales tax agreement. Following the hearings, the City may direct the District to approve and execute the Sales and Use Tax Agreement attached hereto as Exhibit A. The District agrees that, upon receipt of such direction, it will execute the Sales and Use Tax Agreement within 60 days thereafter. 6.05. Cooperation. The Parties will cooperate to provide such documentation as the City may reasonably require to satisfy the requirements of the State Comptroller in connection with the collection of sales and use taxes with the District. Article 7 DEFAULT, NOTICE AND REMEDIES 7.01. Default, notice. A breach of any material provision of this Agreement after notice and an opportunity to cure, shall constitute a default. The non-breaching defaulting Party shall notify the breaching Party of an alleged breach, which notice shall specify the alleged breach with reasonable particularity. If the breaching Party fails to cure the breach within a reasonable time not sooner than 30 days after receipt of such notice (or such longer period of time as the non-breaching Party may specify in such notice), the non-breaching Party may declare a default hereunder and exercise the remedies provided in this Agreement in the event of default. U:NANESSA/MUDOTteflgR/SPA. FINAL. 11.20.02 ItCI 9 7.02. Remedies. In the event of a default hereunder, the remedies of the non-defaulting Party shall be limited to either or both of the following: Monetary damages for actual losses incurred by the non-defaulting Party if such recovery of monetary damages would otherwise be available under existing law and the defaulting Party is not otherwise immune from paying such damages; and Injunctive relief specifying the actions to be taken by the defaulting Party to cure the default or otherwise comply with its obligations hereunder. Injunctive relief shall be directed solely to the default and shall not address or include any activity or actions not directly related to the default. Article 8 MISCELLANEOUS 8.01. District Expenditures. The District shall provide the City with monthlybookkeeping and operations reports, and cooperate with the City regarding information related to District expenditures. 8.02. Beneficiaries. This Agreement shall bind and inure to the benefit of the Parties, their successors and assigns. This Agreement shall be recorded with the County Clerk in Official Records of each county in which the District is located, and shall bind and benefit each owner and each future owner of land included within the District's boundaries in accordance with Tex. Local Gov't Code, §43.0751 (c). District agrees to use its best effort to notify prospective residents of the District of the terms of this agreement. 8.03. District Funds Remaining. The City agrees to establish or maintain the same or similar accounts as the District for the deposit of any funds remaining at the time of the Full-Purpose Annexation conversion date. With the exception of the Debt Service Fund, which is used solely to pay debt service on the District's bonds, the funds in the other accounts (operations and construction), will be used to pay other District obligations and projects. In addition, after all District obligations from these funds are paid, any remaining funds shall be used within the District as mutually agreed upon by the City and the Liaison Committee. 8.04. Term. This agreement shall commence and bind the City and District on the Effective Date and continue until the abolishment of the District pursuant to Section 2.04 of this U:NANEgRA/MI31X)THER/S PA FINAL. I 1.20.02.BC1 10 agreement. Nothing herein shall prevent the City from terminating this agreement and instituting proceedings to annex the district, on request by the goveming body of the district, on a date prior to the Full-Purpose Annexation conversion date established by this agreement. 8.05. Notice. Any notice or other communications (a"Notice") required to be given by one Party to another by this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below for such Party, (i) by delivering the same in person (ii) by depositing the same in the United States Mail, certified or registered, return receipt requested, postage prepaid, addressed to the Party to be notified, or (iii) by depositing the same with Federal Express or another nationally recognized courier service guaranteeing "next day delivery," addressed to the Party to be notified, or (iv) by sending the same by telefax with confirming copy sent by mail. Notice deposited in the United States mail in the manner hereinabove described shall be deemed effective from and after the date of such deposit. Notice given in any other manner shall be effective only if and when received by Party to be notified. For the purposes of notice, the addresses of the Parties, until changes as provided below, shall be as follows: City: City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Attn: City Manager District: Brazoria County Municipal Utility District No. 1 c/o Paul A. Philbin & Assoc. P. C. 6263 Woodway, Suite 725 Houston, Texas 77057 The Parties shall have the right from time to time to change their respective addresses, and each shall have the right to specify as its address any other address within the United States of America by giving at least five days written notice to the other Parties. If any date or anyperiod provided in this Agreement ends on a Saturday, Sunday, or legal holiday, the applicable period for calculating the notice shall be extended to the first business day following such Saturday, Sunday or legal holiday. 8.06. Time. Time is of the essence in all things pertaining to the performance of this Agreement. 8.07. Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable then, and in that event, it is the intention of the Parties hereto that the remainder of U:/VAN~SSAfMUDOTHEPJSPA.FINAL. 11.20.02.BC1 11 this Agreement shall be affected. The parties agree to negotiate in good-faith to replace any illegal, invalid or unenforceable provision of the agreement with a provision that is believed to be valid. If such an agreement cannot be reached by both parties, nothing shall prohibit the City from instituting proceedings to annex the district on a date prior to the Full-Purpose Annexation date. 8.08. Waiver. Any failure by a Party hereto to insist upon strict performance by the other Party of any material provision of this Agreement shall be deemed a waiver thereof or of any other provision hereof, and such Party shall have the right at any time thereafter to insist upon strict performance of any and all of the provisions of this Agreement. 8.09. Applicable law and venue. The construction and validity of this Agreement shall be governed by the laws of the State of Texas without regard to conflicts of law principles. Venue shall be in Brazoria County, Texas. 8.10. Reservation of rights. To the extent not inconsistent with this Agreement, each Party reserves all rights, privileges, and immunities under applicable laws. 8.11. Further documents. The Parties agree that at any time after execution of this Agreement, theywill, upon request of another Party, execute and deliver such further documents and do such further acts and things as the other Party may reasonably request in order to carry out the terms of this Agreement. 8.12. Incorporation of exhibits and other documents by reference. All Exhibits and other documents attached to or referenced to in this Agreement are incorporated herein by reference for the purposes set forth in this Agreement. 8.13. Effects of State and Federal laws. Notwithstanding any other provision of this Agreement, the District shall comply with all applicable statutes or regulations of the United States and the State of Texas, as well as any City ordinances or rules implementing such statutes or regulations, and such City ordinances or rules shall not be deemed a breach or default under this Agreement. U:NANI~ S S A/MUDOTi~IgP, JS PA. FINAL. 11.20.02.BCl 12 8.14. Authority for execution. The City hereby certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with the City Charter and City ordinances. The District hereby certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted by the Board of Directors of the District. IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement effective as of the date written above. CITY OF PEARLAND, T~AS ATTEST: City,retS/ THE STATE OF TEXAS § COUNTY OF BRAZORIA § ThB_~nstmment was acknowledged before me on .d.~der-r~er' / O ,2002, by ~/"~ - ~ e [ ~ , as Mayor of Pearland, Texas, a home-role municiPality, on behalf of said municipality. (NOTARY SEAL) U:/VANEggMMUDOTI~R/SPA.FINAL. 11.20.02.BC1 13 BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 President, Board of Directors ATTEST: By: ~~'&- Secretary THE STATE OF TEXAS § COUNTY OF BRAZORIA § ' b · , &This inst?ment was ackn, qwled, g,ed l~e~fore me on ~x~(,%g'?~-X~.C3~:}P 0~1 , 2002, y ,~'-~\~ EF~- ~ ,,..-~.~.. , a~s~.E', _5' ~_C~T~'\.. .. ',. "~'f'Br~z0~i~ C°Unty Municipall ~tility DistrictdNo. 1, a political subdivision of the State of Texas, on behalf of said politica subdivision. VANc~..c~ ,.!. WOOD ~%'A /,~-~ /*~] M'¢C,G~d~'~ ~5, tON EXPIRES - ~,,~:--.--; A~; ;}L t3, 2003 (NOT~Y SEAL) ~i~try';,,,..S,, !at e o f~-!.X.~ - " U:/VANES SA/MUDOTHER/SPA.F1NAL 11.20.02.BC1 1 4 Exhibit "B" Resolution No. R2002-185 Exhibit A to Strategic Partnership Agreement SALES AND USE TAX AGREEMENT THE STATE OF TEXAS § COUNTY OF BRAZORIA § This SALES AND USE TAX AGREEMENT (this "Agreement") is made and entered into effective as of /[}o vern bec 7.f ,2002, 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. 1, a conservation and reclamation district created pursuant to Article XIV, Section 59, Texas Constitution and operating pursuant to Chapters 49 and 54, Texas Water Code (the "District"). RECITALS 1. The City and the District have previously entered into that certain Strategic Partnership Agreement, dated as of /~/.v¢~./o~r 'LV'., 2002 (the "Strategic Partnership Agreement"), providing for, inter alia, the imposition of the City's sales and use taxes with the District, contingent upon the City being an eligible municipality in accordance with the terms of Subsection (n) of the Act. 2. The 2000 Federal Census has determined that Brazoria County has a population in excess of 200,000, and that Harris County has a population in excess of 2.8 million. As a result, the City has found that it is a municipality in a county with a population of more than 200,000, bordering on the Gulf of Mexico, and adjacent to a county with a population of more than 2.8 million, and is therefore an eligible municipality under Subsection (n) of the Act. 3. The City provided notice to the District, and together they held two public hearings in accordance with Article 6 of the Strategic Partnership Agreement. NOW, THEREFORE, the City and the District hereby agree as follows: Section 1. Capitalized terms used herein shall have the same meaning as provided in the Strategic Partnership Agreement, unless otherwise defined herein. Section 2. Effective upon the date first written above, the City is hereby authorized to impose, levy and collect its Sales and Use Taxes with the District. Section 3. The parties agree to take all reasonably necessary steps to give effect to the terms of this Agreement. IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement effective as of the date first written above. CITY OF PEARLAND,_~AS Mayor ATTEST: City~ref'ar~/f BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 President, Board of Directors ATTEST: Secretary R2002-185 BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.1 RESOLUTION APPROVING AND RATIFYING APPOINTMENT OF LIAISON COMMITTEE TO COORDINATE WITH THE CITY OF PEARLAND The Board of Directors of Brazoria County Municipal Utility District No.1 met in regular session, open to the public, at its regular meeting place, on the date set out herein; whereupon the roll was called of the members of the Board. to-wit: Bill Cox, Jr., President Laura Brazil-Nichols, Vice President Loice Cottingham, Secretary Scott Lester, Deputy Secretary Sue Funkhouser, Director All members were present except, /J tJ JJ t, WHEREUPON the following Resolution was introduced and after full discussion and deliberation the Resolution was adopted by a vote of ,..,-- "ayes" and C:) "noes." The Resolution adopted is WHEREAS, Brazoria County Municipal Utility District No.1 ("MUD 1 ") heretofore entered into a "Strategic Partnership Agreement" ("Agreement") with the City of Pearl and and said Agreement is incorporated herein for all purposes. WHEREAS, under Sections 2.05 and 8.03 ofthat Agreement, MUD 1 has appointed Loice Cottingham, Laura Brazil-Nichols, and Sue Funkhouser as members of the "Liaison Committee" for the two years following the Conversion Date under said Agreement; and WHEREAS, the City of Pearl and has annexed MUD 1 effective December 31,2006, the Conversion Date; and WHEREAS, MUD 1 wishes to approve and ratify the appointment of the Liaison Committee, and further wishes to provide for the funding of said Liaison Committee; S:IRESOLUTJONSICONVEYIBC J. LIA JASON COMM JTTEE.BC3.wpd NOW, THEREFORE, BE IT RESOL VED BY BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.1 THAT: 1. The Board of Directors of the District hereby approves the appointment of Directors Cottingham, Brazil-Nichols, and Funkhouser to the Liaison Committee as authorized by the Agreement. 2. The Board hereby affirms that all appointees are qualified to serve on the Committee and authorizes the Committee to meet at least once a month. 3. The Board hereby allocates the funding of said Committee on the same general basis as Municipal Utility District meetings, fees, and consulting charges. The Board allocates $30,000 for said expenses and authorizes the District's General Counsel to receive and administer said funds. 4. The Board directs the Liaison Committee to take any and all actions necessary to insure that remaining District funds are used for their specified purposes pursuant to the obligations set forth in the Agreement. PASSED, APPROVED and EFFECTIVE, on this the 22nd day of March, 2007. , - :-:.. d:;T'/'" /.-, .-.' .' ~ "/-?-~-~ .-. C- .;;; '7 .__/C / /" , President, Board of Directors Secret y, Board of Directors (SEAL) S;IRESOLUTIONSICONVEYIBC 1.L1AIASON COMM ITTEE. BC3.wpd 2 AFFIDAVIT OF PUBLICATION • The Pearland Reporter News 2404 South Park Pearland, Texas 77581 State of Texas Brazona and Harris Counties I, Randy Emmons, hereby certify that the notice hereby appended was published in Brazona and Harris Counties in THE REPORTER NEWS, a newspaper of general circulation in Brazoria, Harris & Galveston Counties, for l issues, as follows: N a A Date 0G71 • Z, 20 ° 42- N o. Date 20 N o. Date 20 N o. Date 20 N o. Date 20 Subscribe and sworn to before me this 3 / day of a e 20 az- • li • • • �e •, • �`16 LAURA ANN EMMONS • • • %: • Commission Notary Public Expires State of Texas .,,�•�� 09 09-2006 • — i 1 1 / Rif ' Laura Ann Emmons, Publisher Notary Public, State of Texas Joint Public Hearing - Mud No. 1 Strategic Partnership Agreement & Sales/Use Tax Pub. 10-02-02 r Published Oct. 2, 2002 NOTICE OF JOINT PUBLIC HEARING OF THE CITY OF PEARLAND AND BRAZORIA COUNTY MUNICIPAL DISTRICT NO. 1 Notice is hereby given that on the nth day of October, 2002, at 6:30 p.m., the City Council of the City of Pearland, Brazoria, Fort Bend, and Harris Counties, Texas and Brazoria County Municipal Utility District No. 1 will conduct Public Hearings in the Council Chambers, City Hall, 3519 Liberty Drive, Pearland, Texas, to gather public comment and testimo ny regarding the adoption of a Strategic Partnership Agreement and a Sales & Use Tax Agreement between the City and Brazoria County Municipal Utility District No. 1. Copies of the proposed Strategic Partnership Agreement may be obtained prior to hearings at the office of the City Secretary at the above listed address. At said hearing all interested parties shall have the right and opportunity to appear and be heard on the subject. /s/ Young Lorfing City Secretary This site is accessible to dis- abled individuals. For special assistance, please call Young Lorfing at (281) 652-1655, prior to the meeting so that appropriate arrangements can be made. AFFIDAVIT OF PUBLICATION The Friendswood Reporter News P.O. Box 954 Friendswood, Texas 77546 State of Texas Galveston and Harris Counties I, Randy Emmons, hereby certify that the notice hereby appended was published in Galveston and Harris Counties in THE REPORTER NEWS, a newspaper of general circulation in Galveston, Harris and Brazoria Counties, for / issues, as follows: N o. / Date OCR-- / l 20 02--- N o. Date 20 N o. Date 20 N o Date 20 N o. Date 20 Subscribe and sworn to before me this 31 day of act • • • • LAURA ANN EMMONS Notary Public State of Texas Commission Expires 09-09-2006 Laura Ann Emmons, Publisher Notary Public, State of Texas Public Hearing - Mud No. 1 Strategic Partnership Agreement & Sales/Use Tax Pub. 10-16-02 Published Oct. 16, 2002 NOTICE OF PUBLIC HEARING OF THE CITY OF PEARLAND Notice is hereby given that on the 23rd day of October, 2002, at 6:30 p.m., the City Council of the City of Pearland, Brazoria, Fort Bend, and Harris Counties, Texas, will conduct a Public Hearing at Southwyck Golf Club, Prestwick Room, 2901 Clubhouse Drive, Pearland, Texas, to gather public com- ment and testimony regard- ing the adoption of a Strategic Partnership Agreement and a Sales & Use Tax Agreement between the City and Brazoria County Municipal Utility District No.1. Copies of the Strategic Partnership Agreement are available in the City Secretary's office on the 3rd floor of City Hall at 3519 Liberty Drive, Pearland, Texas 77581. At said hearing all interested parties shall have the right and opportunity to appear and be heard on the subject. /s/ Young Lorfing City Secretary This site is accessible to dis- abled individuals. For special assistance, please call Young Lorfing at 281.652.1655, prior to the meeting so that appro- priate arrangements can be made. AFFIDAVIT OF PUBLICATION The Friendswood Reporter News P.O. Box 954 Friendswood, Texas 77546 State of Texas Galveston and Harris Counties I, Randy Emmons, hereby certify that the notice hereby appended was published in Galveston and Harris Counties in THE REPORTER NEWS, a newspaper of general circulation in Galveston, Harris and Brazona Counties, for l issues, as follows: N o. % Date b G� 30 20 a Z N o Date 20 N o Date 20 N o Date 20 N o. Date 20 President Subscribe and sworn to before me this 3 / day of LAURA ANN EMMONS Notary Public State of Texas Commission Expires 09 09-2006 Laura Ann Emmons, Publisher Notary Public, State of Texas Public Hearing - Mud No. 1 Strategic Partnership Agreement & Sales/Use Tax Pub. 10-30-02 Published Oct, 30, 2002 NO T ICL OF PUBLIC HEARING OF THE CITY OF PEARLAND Notice is hereby given that on the 4th day of November, 2002, at 6:30 p.m., the City Council of the City of Pearland, Brazoria, Fort Bend, and Harris Counties, Texas, and Brazoria County Municipal District No. 1, will conduct a Public Hearing at Pearland City Hall, Council Chambers, 3519 Liberty Drive, Pearland, Texas, to gather public comment and testimony regarding the adoption of a Strategic Partnership Agreement and a Sales & Use Tax Agreement between the City and Brazoria County Municipal Utility District No.1. Copies of the Strategic Partnership Agreement are available in the City Secretary's office on the 3rd floor of City Hall at 3519 Liberty Drive, Pearland, Texas 77581. At said hearing all interested parties shall have the right and opportunity to appear and be heard on the subject. /s/ Young Lorfing City Secretary This site is accessible to dis- abled individuals. For special assistance, please call Young Lorfing at 281-652-1655, prior to the meeting so that appropriate arrangements can be made.