R2001-0012 01-08-01 RESOLUTION NO. R2001-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A SANITARY SEWER FEE AGREEMENT WITH BRAZORIA
COUNTY MUNICIPAL UTILITY DISTRICT NO. 19 ("MUD 19") PROVIDING
FOR THE REIMBURSEMENT OF SANITARY SEWER FEES BY THE CITY
TO MU D 19 FOR TEMPORARY SANITARY SEWER TREATMENT SERVICE
PROVIDED TO THE CITY.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain sanitary sewer fee agreement by and between the City
of Pearland and Brazoria County Municipal Utility District No. 19, 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 the original of the attached agreement for and
on behalf of the City of Pearland, regarding the reimbursement of sanitary sewer fees
by the City to MUD 19 for temporary sanitary sewer treatment service provided to the
City.
PASSED, APPROVED and ADOPTED this the 8 day of
January , A.D., 2001.
TOM REID
MAYOR
ATTEST:
1
RESOLUTION NO. R2001-12
APPROVED AS TO FORM:
D~COKER
CITY ATTORNEY
2
SANITARY SEWER FEE AGREEMENT
This Sa.~nitary Sewer Fee Agreement (this "Agreement") is made and entered into a~ of the
~ day of '~/~(~ ~{/ ,2001, 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. 19, a political subdivision of the State of Texas, organized pursuant to the
provisions of Article 16, Section 59 of the Texas Constitution and Chapters 49 and 54 of the Texas
Water Code, as amended (the "District").
RECITALS
WHEREAS, the District was created within the City's corporate limits for the purposes of,
among other matters, providing water distribution, wastewater collection, and drainage facilities to
serve the land within its boundaries; and
WHEREAS, pursuant to the October 12, 1998 Utility Agreement between the City, the Ritson
Morris Corporation, a Texas corporation, and Beazer Homes Texas, L.P., a Texas limited
partnership, on behalf of the District (the "Utility Agreement"), the City, among other matters, agreed
to provide water and sanitary sewer services to the water and sanitary sewer customers of the
District; and
WHEREAS, pursuant to the Utility Agreement, the City has agreed to charge water and
sanitary sewer customers within the District, City rates and charges for such services on the same
basis and conditions as the City provides such services to similar City customers outside the District;
provided, however, that pursuant to the Utility Agreement, the City shall also charge a monthly
surcharge of $5.00 per equivalent single family residential connection within the District (the "$5.00
Surcharge"), which Surcharge shall be returned by the City to the District; and
WHEREAS, the City and the District have agreed that the District shall provide temporary
sanitary sewer treatment services to the subdivisions of Autumn Lake and South Hampton and to
approximately 3.6 acres of land (the "Annexation Tracts") owned by 518 Investments, Joint Venture,
a Texas joint venture ("518 Investments") that 518 Investments seeks the District to annex, which
Annexation Tracts are more particularly described by metes and bounds in the attached Exhibit "A";
provided however, that if the Annexation Tracts are not annexed by the District, the District shall not
provide any sanitary sewer service to such tracts (the subdivisions of Autumn Lake and South
Hampton and the Annexation Tracts, if they are annexed by the District, being referred to herein
collectively as the "District's Temporary Sanitary Sewer Service Area"); and
WHEREAS, the City has agreed to pay to the District all sanitary sewer rates and charges
collected by the City from customers within the District's Temporary Sanitary Sewer Service Area;
AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual promises, covenants, obligations
and benefits of this Agreement, the City and the District contract and agree as follows:
1. The City intends to extend its sanitary sewer facilities by constructing a sanitary
sewer line to the intersection of Wooten Road and FM 518 that would provide
sanitary sewer service to the District's Temporary Sanitary Sewer Service Area (the
"City Line"). Until such time, the District shall provide sanitary sewer service to the
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District's Temporary Sanitary Sewer Service Area by means of a temporary sanitary
sewer treatment plant ("Temporary STP") leased from AquaSoume Engineering and
Construction, Inc. under the Lease Proposal for Interim Wastewater Treatment Plant,
executed August 18, 1999, and a~ociated document~, all of which are attaohed ~
Exhibit "B" (the "Temporary STP AquaSource Lease"). The District has executed a
Service Agreement with AquaSource Services and Technologies, Inc., dated July 5,
2000, attached as Exhibit "C", for operation, maintenance and management services
for the Temporary STP (the "AquaSource Service Agreement"). After the City
constructs the City Line, the District shall be responsible for constructing and
financing a connection from the permanent sanitary sewer facilities within the
District's Temporary Sanitary Sewer Service Area to the City Line for the purpose of
sending all sanitary sewer flow from the District's Temporary Sanitary Sewer Service
Area to the City Line. The City hereby reserves sufficient capacity in the City Line
and the City's sanitary sewer facilities to serve all of the connections that will be built
within the District's Temporary Sanitary Sewer Service Area.
2. The current City sanitary sewer rates and charges per equivalent single family
residential or commercial connection are $11.39 for 2000 gallons of water usage and
$1.46 per 1000 gallons of water usage exceeding 2000 gallons, ("City Sanitary
Sewer Fees"), as reflected in City Ordinance 870-3, attached as Exhibit "D". The
City shall pay to the District all City Sanitary Sewer Fees collected by the City from
customers within the District's Temporary Sanitary Sewer Service Area, for so long
as the permanent sanitary sewer facilities within the District's Temporary Sanitary
Sewer Service Area ara not connected to the City Line and the sanitary sewer flow
from the District's Temporary Sanitary Sewer Service Area is being treated by the
Temporary STP. The City shall actively collect, and pursue any necessary remedies
to collect, City Sanitary Sewer Fees from customers within the District's Temporary
Sanitary Sewer Service Area. The term "Costs of the Temporary STP" shall mean
the total costs incurred prior to or subsequent to the date of this Agreement for
materials, labor, construction, installation, inspection, design, easements and site(s),
related to the Temporary STP; operational, administrative, engineering, and legal
costs related to the Temporary STP; costs related to governmental approvals,
certificates, or permits, related to the Temporary STP; costs related to site work and
lease payments of the Temporary STP, including without limitation, payments due to
AquaSource under the Temporary STP AquaSource Lease, payments due under the
AquaSource Service Agreement, and payments to T&C Construction, Inc. for site
work related to the Temporary STP; and any other related costs pertaining to the
Temporary STP. In the event that the total Costs of the Temporary STP ara at any
time less than the total City Sanitary Sewer Fees paid by the City to the District
hereunder ("Excess City Sanitary Sewer Fees"), then the District shall calculate a six
month reserve at 50% of the then-current District budget for the Temporary STP, and
the District shall return to the City the Excess City Sanitary Sewer Fees after
withholding such reserve. Such reserve can be used by the District for any costs or
expenses related to the Temporary STP before or after this Agreement has
terminated, and any remaining reserve shall be returned by the District to the City.
The City may, at its discretion, increase or decrease the City Sanitary Sewer Fees;
provided that connections within the District's Temporary Sanitary Sewer Service
Area pay the same rates and charges for sanitary sewer service to the City as those
charged by the City to similar City customers outside the District, plus the $5.00
Surcharge. All payments due from the City under this Agreement ara payable from
the City Sanitary Sewer Fees from the District's Temporary Sanitary Sewer Service
330349~2 DOC 2
Area. The District shall provide to the City within 45 days ofthe effective date of this
Agreement a listing of the Costs of the Temporary STP incurred to date.
3. The City Sanitary Sewer Fees shall be paid by the City to the District within thirty (30)
days of the last day of the month for which the City Sanitary Sewer Fees apply (the
"Due Date"). Each City Sanitary Sewer Fee that is not paid on or before the Due
Date shall be delinquent. If the City fails or refuses to pay a delinquent City Sanitary
Sewer Fee for a period in excess of sixty (60) days from the receipt of written notice
from the District regarding same, then each City Sanitary Sewer Fee included in such
notice shall incur interest at the rate of one per cent (1%) of the amount of the City
Sanitary Sewer Fee per month, for each month or portion thereof during which a City
Sanitary Sewer Fee remains unpaid upon expiration of such sixty (60) day period.
4. The City shall maintain proper books, records, and accounts; shall provide the
District with an accounting together with each City Sanitary Sewer Fee payment, and
shall afford the District or its designated representatives reasonable access to its
books, records, and accounts or recalculated City Sanitary Sewer Fee payment
which is or becomes due and payable by the City hereunder.
5. Prior to the City providing additional water service within the District's Temporary
Sanitary Sewer Service Area, the applicants for water and sewer service shall pay all
applicable fees to the City, to the extent not already paid to the City prior to the
effective date of this Agreement, which may include, but not be limited to deposits,
tap fees, meter fees, and water and sewer impact fees. All such fees shall be
collected and retained by the City.
6. This Agreement shall remain in effect until the date that the permanent sewer
facilities within the District's Temporary Sanitary Sewer Service Area are connected
to the City Line and all sanitary sewer flow from the District's Temporary Sanitary
Sewer Service Area is being permanently received by the City Line (the "Active City
Line Date"), at which time the Agreement shall automatically terminate; provided,
however, that the City's obligation, subject to the terms of paragraph 2, to pay the
District City Sanitary Sewer Fees for the full time period pdor to the Active City Line
Date shall continue in effect until such obligation is satisfied. The City agrees that at
such time, and thereafter, the City shall be responsible for providing all sanitary
sewer service to the District's Temporary Sanitary Sewer Service Area, the District
shall no longer be required to provide temporary sanitary sewer service to the
District's Temporary Sanitary Sewer Service Area, and the District may terminate the
Temporary STP Lease and the AquaSoume Service Agreement.
7. At no time shall the City own any rights to or associated with the Temporary STP.
8. This Agreement shall be for the sole and exclusive benefit of the parties hereto and
shall never be construed to confer any benefit upon any third party or upon any
customers of the City or the District.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of equal dignity, as of the date first given above.
THE CITY OF PEARLAND, TEXAS
City Manager
ATTEST:
(SEAL)
APPROVED AS TO FORM:
City Attorney
BRAZORIA COUNTY MUNICIPAL
UTILITY DISTRICT NO. 19
By' __,.~. .,. ~--
Name: ,~ ,,o~F-~
Ti,e:
ATTEST:
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330349_2DOC 4