R2001-0100 08-13-01 RESOLUTION NO. R200'1-100
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 THE
SHADOW CREEK RANCH DEVELOPMENT COMPANY LIMITED
PARTNERSHIP FOR THE COLLECTION OF SANITARY SEWER FEES
ASSOCIATED WITH THE SHADOW CREEK RANCH TEMPORARY
SANITARY SEWAGE TREATMENT FACILITY.
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 Shadow Creek Ranch Development Company Limited Partnership, 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 an agreement with Shadow Creek Ranch Development
Company Limited Partnership for the collection of sanitary sewer fees associated with the
Shadow Creek Ranch Temporary Sanitary Sewage Treatment Facility.
PASSED, APPROVEDandADOPTEDthisthe 13 dayof August
A.D., 2001.
TOM REID
MAYOR
ATTEST:
rUyNG L-~~G/
SE~,~,ETARY ~'/ ~,/
RESOLUTION NO. R200'I -'I 00
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
SANITARY SEWER FEE AGREEMENT
(Shadow Creek Ranch)
This Sanitary Sewer Fee Agreement (this "Agreement") is made and entered into as of the
13th day of August, 2001, by and between the City of Pearland, Texas, a municipal corporation and
home-rule city of the State of' Texas (the "City") and Shadow Creek Ranch Development Company
Limited Paamership, a Nevada limited partnership, (the "Developer"), on behalf of Brazoria County
Municipal Utility District No. 26, a proposed political subdivision of the State of Texas, to be
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 is in the process of being 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 form of the Utility Agreement between the City and Shadow
Creek Ranch Development Company Limited Partnership, a Nevada corporation, on behalf of the
District (the "Utility Agreement") attached to the Petition for Consent to the Creation of Municipal
Utility Districts that was approved by the City on February 26, 2001, 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 TIRZ Project Plan and Financing Plan, dated August 23, 1999, includes the
lease and operation of a temporary sanitary sewer treatment plant of up to 250,000 gallons per day of
capacity as a T[RZ project expense; and
WHEREAS, the Development Agreement between the City and the Developer, dated
September 13, 1999, obligates the City to assume lease payments for the temporary sanitary sewer
treatment plant once there are residential connections to the plant, but such obligation is limited to
the extent of revenues generated by connections to the plant; and
WHERAS, the parties had anticipated that the Developer would initially bid and lease the
temporary sanitary sewer treatment plant on behalf of the IW, Z and transfer the lease to the City at
the time that the first residential connection was made; and
WHEREAS, the Texas Natural Resource Conservation Commission wastewater discharge
permit is in the name of the City and the parties agree that it will be more administratively efficient
and prudent for the City to lease and operate the temporary sanitary sewer treatment plant than to
attempt to assign the permit to the District or the Developer; and
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WttEREAS, the financial obligation of the City created by the Development Agreement is
not modified by the Agreement, but this Agreement merely clarifies the intent of the parties as to the
lessor of the temporary sewage treatment plant and the procedures for payment and reimbursement of
the lease and operating costs; and
VvI-[EREAS, the City and the Developer, on behalf of the District, have agreed that the City
shall provide temporary sanitary sewer treatment services to the master planned community of
Shadow Creek Ranch, including the portion consisting of land to be included in the District, until
permanent facilities are constructed and operational; and
WHEREAS, the City has agreed to collect all sanitary sewer rates and charges from
customers within the District for the temporary sanitary sewer treatment service; and
WHEREAS, both parties realize that the costs involved in this temporary samtary sewer
treatment service may exceed the rates and charges collected by the City from the District's
residents; and
WHERAS, the Developer, on behalf of the District, has agreed to reimburse the City for any
costs exceeding the rates and charges collected by the City for providing the temporary sanitary
sewer treatment to District residents in accordance with the Development Agreement as an operating
cost of the District; provided, however, such reimbursement shall be limited to the amount in the
TIRZ budget for the temporary sanitary sewer treatment plant.
AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual promises, covenants,
obligations and benefits o£this Agreement, the City and the District contract and agree as follows:
The City intends to construct a permanent samtaty sewer plant that would provide
sanitary sewer service to the District (the "Permanent STP"). Until such time, the
City shall provide sanitary sewer service to the District by means of a temporary
sanitary sewer treatment plant ("Temporary STP") leased by the City, on behalf of
the District, under the Lease Proposal for Interim Wastewater Treatment Plant,
entered into by the City (the "Temporary STP Lease"). The City, on behalf of the
District, also will execute a Service Agreement with a licensed operating company
for operation, maintenance and management services for the Temporary STP (the
"Service Agreement").
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. Pursuant to the Utility Agreement, the
City shall pay to the District the $5.00 Surcharge collected by the City from
customers within the District. The City shall actively collect, and pursue any
necessmy remedies to collect, City Sanitary Sewer Fees from customers within the
District. The term "Costs of the Temporary STP" shall mean the total costs incurred
related to the Temporary STP and payments due under the Service Agreement. In the
event that the total Costs of the Temporary STP are at any time more than the total
City Sanitary Sewer Fees collected by the City from customers within the District,
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the Developer, on behalf of the District, shall reimburse the City for the difference
(the "Excess Temporary STP Costs") in accordance with the Development
Agreement, provided such reimbursement shall be limited to the amount in the TIRZ
budget for the Temporary STP. In the event of Excess Temporary STP Costs, the
City shall send an invoice to the Developer, on behalf of the District prior to its
creation, and to the District subsequent to its creation. The City may, at its discretion,
increase or decrease the City Sanitary Sewer Fees; provided that connections within
the District 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.
3. Any Excess Temporary STP Costs shall be paid by the Developer, on behalf of the
District (or by the District after creation), within 30 days of receipt of an invoice from
the City (the "Due Date"). Any Excess Temporary STP Costs that are not paid on or
before the Due Date shall be delinquent. If the Developer or District fails or refuses
to pay any delinquent Excess Temporary STP Costs for a period in excess of 60 days
from the receipt of whtten notice from the City regarding same, then all Excess
Temporary STP Costs included in such notice shall incur interest at the rate of one
per cent (1%) of the amount of the outstanding Excess Tempormy STP Costs per
month, for each month or portion thereof during which any Excess Temporary STP
Costs remain unpaid upon expiration of such 60 day period.
Pursuant to the Utility Agreement, the $5.00 Surcharge shall be paid by the City to
the District, within 30 days of the last day of the month for which the $5.00
Surcharge applies (the "Due Date"). Each $5.00 Surcharge that is not paid on or
before the Due Date shall be delinquent. If the City fails or refuses to pay a
delinquent $5.00 Surcharge for a period in excess of 60 days from the receipt of
written notice from the District regarding same, then each $5.00 Surcharge included
in such notice shall incur interest at the rate of one per cent (1%) of the $5.00
Surcharge per montb, for each month or portion thereof during which a $5.00
Surcharge remains unpaid upon expiration of such 60 day period.
5. The City shall maintain proper books, records, and accounts; shall provide the
District with an accounting together with each $5.00 Surcharge payment, and shall
afford the District or its designated representatives reasonable access to its books,
records, and accounts or recalculated $5.00 Surcharge payment which is or becomes
due and payable by the City hereunder.
Prior to the City providing water service within the District, the applicants for water
and sewer service shall pay all applicable fees to the City, 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.
7. This Agreement shall remain in effect until the date that all sanitary sewer flow from
the District is being treated by the Permanent STP, at which time the Agreement shall
automatically terminate. The City agrees that at such time, and thereafter, the City
shall be responsible for providing all sanitary sewer service to the District pursuant to
the Utility Agreement and the City shall terminate the Temporary STP Lease and the
Service Agreement.
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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.
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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 C1TY OF PEARLAND, TEXAS
ATTEST: By: ~ J
City Manager
(SE.t~L) APPROVED AS TO FORM:
City Attorney
SHADOW CREEK RANCH DEVELOPMENT
COMPANY LIMITED PARTNERSHIP,
a Nevada limited partnership
By: Shadow Creek Ranch, Inc~
a Nevada corporation, its general partner
Gary ~q. ¢ook, President
FOLLOWING ITS CREATION AND ITS ORGANIZATIONAL MEETING, APPROVED
AND ACCEPTED BY:
BRAZORIA COUNTY MUNICIPAL
UTILITY DISTRICT NO. 26
By:
Name:
ATTEST: Title: President, Board of Directors
By:.
Name
Title: Secretary, Board of Directors
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