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R2007-190 2007-11-26 RESOLUTION NO. R2007 -190 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A SUPPLEMENT AGREEMENT WITH BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.4. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Supplemental Agreement by and between the City of Pearland and Brazoria County Municipal Utility District No.4, 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 Supplemental Agreement Brazoria County Municipal Utility District NO.4. 111.1""1f1, ",,"'::' t>-RLA"""" "., \>'S....... .I\t.o..... @\~)~) ATrE~/' ../ ~c ITY S CRET ARY PASSED, APPROVED and ADOPTED this the 26th day of November, A.D., 2007. -c~f?~ TOM REID MAYOR APPROVED AS TO FORM: ()a..-.~ 11. ~ DARRIN M. COKER CITY ATTORNEY Exhibit II A" Resolution No. R2007 -190 07 -0088 SUPPLEMENT TO: 1. AGREEMENT FOR a. OWNERSHIP, OPERATION AND MAINTENANCE OF WATER FACILITIES, b. EMERGENCY WATER SUPPLY PROVISIONS, c. OWNERSHIP OF REGIONAL WASTEWATER TREATMENT FACILITIES AND 2. CONTRACT FOR FINANCING, CONSTRUCTION AND OPERATION OF REGIONAL WASTEWATER TREATMENT FACILITIES Parties and Effective Date This Supplement ("Supplement") is entered into as of the "?)Cjr'0 day of ()CW D.e...K , 2007 ("Effective Date"), by and between the CITY OF PEARLAND ("City"), a home rule municipality, and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 4 ("District"), a political subdivision of the State of Texas, organized and operating pursuant to Article XVI, Section 59 of the Texas Constitution and Chapters 49 and 54 of the Texas Water Code. Purpose The District and formerly existing Brazoria County Municipal Utility District No.5 ("MUD 5") entered various agreements prior to MUD 5's annexation by the City. The City has succeeded to the rights and obligations of MUD 5 following annexation of MUD 5 by the City. The purpose of this Supplement is to reassign and modify certain of the Parties' rights, obligations and duties under those agreements following dissolution of MUD 5 by the City. Recitals The District and MUD 5 have previously entered into the following agreements ("Previous Agreements") for water production facilities and regional wastewater treatment facilities: (1) Restated Agreement for Ownership, Operation, and Maintenance of Water Facilities and Emergency Water Supply Provisions and for Ownership of Regional Wastewater Treatment Facilities, dated November 21,1995; (2) Supplement to Restated Agreement for Ownership, Operation, and Maintenance of Water Facilities and Emergency Water Supply Provisions and for Ownership of Regional Wastewater Treatment Facilities, dated January 19, 1998; (3) Second Supplement to Restated Agreement for Ownership, Operation, and Maintenance of Water Facilities and Emergency Water Supply Provisions and 142772 for Ownership of Regional Wastewater Treatment Facilities, dated March 22, 1999; and (4) Contract for Financing, Construction and Operation of Regional Wastewater Treatment Facilities ("Original Wastewater Conh'act"), dated May 18, 1983. MUD 5 was annexed and dissolved by the City on or about December 31, 2005, at which time the City succeeded to all of MUD 5' s rights and obligations under the Previous Agreements. The annexation and dissolution of MUD 5 have necessitated certain supplementation of the Previous Agreements, which is set forth herein. Consideration The City and the District agree that this Supplement is supported by good, valuable and sufficient consideration and acknowledge their respective receipt of same. Mfirmation of City's Status and Nominal Change of Parties The Parties affirm that, upon MUD 5's annexation and dissolution by the City, the City succeeded to all of MUD 5's rights and obligations under the Previous Agreements and is therefore the proper party and signatory to this agreement. When the Previous Agreements specify "No. 5," the Parties understand that to identify the City. ARTICLE I Water 1.01 District to own, operate, maintain and control Water Facilities. 1 The City hereby conveys and relinquishes to the District all of its right, title and interest in the Water Facilities, whether in ownership, operation, maintenance or control. From the Effective Date: (a) the District shall be the sole owner and operator of the Water Facilities, shall own all capacity in the Water Facilities and shall be responsible for all maintenance of the Water Facilities; (b) the City shall have no liability for any ownership, operation, maintenance, repair or replacement costs of the Water Facilities; (c) the City shall have no right to any water produced by the Water Facilities other than on an emergency basis as set froth herein; (d) neither the City nor the District shall have any obligation to insure the Water Facilities, or any part of them; and (e) neither the City nor the District shall have any obligation to maintain a separate operating account as to the Water Facilities. ' I For purposes of this Agreement, "Water Facilities" shall mean all water wells, water plants and related appurtenances, no matter when constructed, located within the boundaries of the District. 142772 2 1.02 Emergency water supply. The City and the Disb'ict agree to continue to provide water to each other under emergency conditions as set forth in the Previous Agreements, except that the price to be paid for water supplied under emergency conditions shall be the then-current rate for residential water usage within the supplying Party, unless otherwise agreed in writing by the Parties. This Supplement does not affect the terms and conditions of any emergency water supply agreement(s) between: (a) MUD 5 or the City and any person other than the District; or (b) the Disb'ict and any person other than the City or MUD 5. 1.03 Ownership of water wells in MUD 5. The District hereby conveys and relinquishes to the City all of its right, title and interest, if any, whether in ownership, operation, maintenance or control, in any water wells witl1in tl1e boundaries of MUD 5. ARTICLE II Wastewater 2.01 Elimination of capacity charges, The District shall not be charged any "capacity charges" as defined in Section 3.03(b) of the Original Wastewater Contract. 2.02 Routine maintenance. So long as the cost of a routine maintenance item (or series of related items) of the Waste Disposal Facilities (as defined in tl1e Original Wastewater Contract) does not exceed $5,000.00, tl1e City shall be solely responsible for tl1e cost of such maintenance. For routine maintenance items (or series of related items) exceeding $5,000.00, the Parties shall share in the cost on tl1e following pro rata basis: 52.71 % to the City and 47.29% to the Disb"ict. The City shall determine whether an item(s) constitutes routine maintenance. Except in an emergency, routine maintenance items exceeding $5,000.00 must be approved in advance by the Parties' respective governing bodies. 2.03 Revised pro-rations. One purpose of this Supplement is to allocate the maintenance cost of the Wastewater Disposal Facilities among all parties that benefit from the facilities. Therefore, if tl1e City expands the Waste Disposal Facilities, the District's proportionate share of maintenance costs as set forth in Section 2.02 above shall be reduced accordingly. No additional person or entity, including any person or entity affiliated with or controlled by the City or the District, shall be allowed to use the Wastewater Disposal Facilities or cause an expansion of the Wastewater Disposal Facilities without a reallocation of the parties' proportionate shares executed by all users. ARTICLE III Supplement Controls 3.01 No additional changes. All terms and conditions of tl1e Previous Agreements that are not specifically addressed by this Supplement remain in full force and effect. In the 142772 3 event, however, of any conflict between this Supplement and any provision(s) of the Previous Agreements, the terms of this Supplement control. [EXECUTION PAGES FOLLOW] 142772 4 SUPPLEMENT TO: 1. AGREEMENT FOR a. OWNERSHIP, OPERATION AND MAINTENANCE OF WATER FACILITIES, b. EMERGENCY WATER SUPPLY PROVISIONS, c. OWNERSHIP OF REGIONAL WASTEWATER TREATMENT FACILITIES AND 2. CONTRACT FOR FINANCING, CONSTRUCTION AND OPERATION OF REGIONAL WASTEWATER TREATMENT FACILITIES, Effective as of the Effective Date CITY OF PEARLAND, TEXAS ATTEST: """~'~R'LA"""" /~~*"~""""'/~:9)<, f >-/ \\"1'\1 'L_' .x- :~: ')>.i \0\ ./en] \,..,..,::,:...............::,::"",'/ 'j'UIlI'I.~04' By ~mJ f(~ Title: Mayor, City of Pearland ~$* itle: City Secretary, Young Lorfi ng COUNTERSIGNED: rZJ A-' G-t- By:______________________________ Title: Darin Coker, City Attorney 142772 5 SUPPLEMENT TO: 1. AGREEMENT FOR a. OWNERSHIP, OPERATION AND MAINTENANCE OF WATER FACILITIES, b. EMERGENCY WATER SUPPLY PROVISIONS, c. OWNERSHIP OF REGIONAL WASTEWATER TREATMENT FACILITIES AND 2. CONTRACT FOR FINANCING, CONSTRUCTION AND OPERATION OF REGIONAL WASTEWATER TREATMENT FACILITIES, Effective as of Effective Date BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.4 /~/S(/ --?7 L~:' C ~:?2-H-" r t:' ~resident, B9a- of Dir tors ATTEST: (7 : ) ;ptt'/J htci,-& -t, ~1 " 'I . , SeGretary, Board of/Directors . 142772 6