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R-2014-078 2014-07-28RESOLUTION NO. R2014-78 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into amendments to the Strategic Partnership Agreements with Brazoria County Municipal Utility District Nos. 21 and 22; providing the conditions under which the City's sales and use tax may be collected; and providing for the temporary use of the City's Convenience and Necessity. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Amended Strategic Partnership Agreements with Brazoria county Municipal Utility District Nos. 21 & 22, 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 Amended Strategic Partnership Agreements. PASSED, APPROVED and ADOPTED this the 28th day of July A.D., 2014. ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY 2&.tct TOM REID MAYOR ,�Q�R�N ��'% AMENDMENT TO STRATEGIC PARTNERSHIP AGREEMENT Resolution No. R2014-78 Exhibit "A" THE STATE OF TEXAS § COUNTY OF BRAZORIA This AMENDMENT TO STRATEGIC PARTNERSHIP AGREEMENT (this "Amendment") is made and entered into, effective as of July 1, 2014, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and general -law city of the State of Texas (the "City"), and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 21, 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 and the City entered into that certain Strategic Partnership Agreement, dated July 1, 2002 (the "Agreement"), following notice and hearings as provided by law, for the purposes stated therein, including providing for the incorporation of the District into the City. 2. The City and the District desire that the conditions under which the City may impose its sales and use taxes should be revised to comply with current law. 3. The City and the District have provided notice and held two public hearings relating to this Amendment, as required by Texas Local Government Code Sec. 43.0751, and wish to amend the Agreement as more fully described below. 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: 1. Definitions. Capitalized terms used herein shall have the meanings provided for them in the Agreement, unless otherwise defined or the context clearly requires otherwise. 2. Amendments. The Agreement is hereby amended as provided in this Section. a. Article 7 is amended to read in its entirety as follows: "7.01. Imposition of sales tax. The City is hereby authorized to impose its sales and use taxes within the area of any limited -purpose annexation under Section 7.03, below. 493686 Pagel 7.02. 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 within the District. 7.03. Limited -purpose annexation. a. Notwithstanding the other provisions of this Agreement, the City is authorized to annex any land developed for commercial purposes ("Commercial Property") within the District for the limited purpose of levying and collecting its sales and use taxes within the area of limited -purpose annexation in accordance with applicable law. Upon full purpose annexation of the District under Article 3, above, any area annexed for limited purposes shall be considered to be within the full -purpose jurisdiction of the City. b. During the period of limited -purpose annexation: (i) neither the District nor any owners of taxable property within District is liable for any present or future debts of the City, (ii) ad valorem taxes levied by the City will not be levied on taxable property within District (including specifically any area of limited -purpose annexation), and (iii) the area of limited -purpose annexation shall be treated as if it were within the City's extraterritorial jurisdiction except as specifically provided herein." 3. Agreement in effect. Except as specifically amended hereby, the Agreement remains in full force and effect, as of its Effective Date. [EXECUTION PAGES FOLLOW] 493686 Page 2 IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement effective as of the date first written above. ATTEST: ATTEST: By: Secretary CITY OF PEARLAND, TEXAS By: Mayor BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 21 By: President, Board of Directors 493686 Page 3 AMENDMENT TO STRATEGIC PARTNERSHIP AGREEMENT THE STATE OF TEXAS COUNTY OF BRAZORIA § § § Resolution No. R2014-78 Exhibit "B" This AMENDMENT TO STRATEGIC PARTNERSHIP AGREEMENT (this "Amendment") is made and entered into, effective as of July 1, 2014, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and general -law city of the State of Texas (the "City"), and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 22, 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 and the City entered into that certain Strategic Partnership Agreement, dated July 1, 2002 (the "Agreement"), following notice and hearings as provided by law, for the purposes stated therein, including providing for the incorporation of the District into the City. 2. The City and the District desire that the conditions under which the City may impose its sales and use taxes should be revised to comply with current law, and that the provision of water and wastewater services should provide for the issuance of appropriate certificates of convenience and necessity. 3. The City and the District have provided notice and held two public hearings relating to this Amendment, as required by Texas Local Government Code Sec. 43.0751, and wish to amend the Agreement as more fully described below. 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: 1. Definitions. Capitalized terms used herein shall have the meanings provided for them in the Agreement, unless otherwise defined or the context clearly requires otherwise. 2. Amendments. The Agreement is hereby amended as provided in this Section. 493218 a. A new Section 6.05 is added as follows: "6.05. Water and wastewater services prior to District certification. The City holds a certificate of convenience and necessity ("CCN") covering water Page 1 493218 and wastewater service on land in its extraterritorial jurisdiction, including the land in the District. The District has applied for its own CCNs for water and wastewater, and anticipates receipt of the CCNs in the near future. During the period that the District's CCNs are pending approval, the District shall construct water and wastewater facilities to serve the land within the District, and shall operate such facilities, including billing, collections and maintenance on behalf of and as the agent of the City, and may reference the City's CCNs as may be reasonably required in connection with its plans and other approvals from regulatory agencies having jurisdiction thereover. The District shall operate the water and wastewater facilities in accordance with applicable laws and regulations. In consideration of the costs of design, construction, operation and maintenance of the water and wastewater facilities, as well as for the indemnity provision in the following paragraph, the District will retain all revenues of such facilities during the term of this Section. Upon the issuance of the District's water and wastewater CCNs, this Section shall terminate, and all water and wastewater facilities constructed by or on behalf of the District shall be owned owned by the District and operated under the District's CCNs. In consideration of the above, the District hereby indemnifies and holds harmless the City, its officials and employees of any and all liability resulting from the construction, operations and maintenance of the District's water and wastewater facilities and the use of the City's CCN as described above." b. Article 7 is amended to read in its entirety as follows: "7.01. Imposition of sales tax. The City is hereby authorized to impose its sales and use taxes within the area of any limited -purpose annexation under Section 7.03, below. 7.02. 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 within the District. 7.03. Limited -purpose annexation. a. Notwithstanding the other provisions of this Agreement, the City is authorized to annex any land developed for commercial purposes ("Commercial Property") within the District for the limited purpose of levying and collecting its sales and use taxes within the area of limited -purpose annexation in accordance with applicable law. Upon full purpose annexation of the District under Article 3, above, any area annexed for limited purposes shall be considered to be within the full -purpose jurisdiction of the City. Page 2 b. During the period of limited -purpose annexation: (i) neither the District nor any owners of taxable property within District is liable for any present or future debts of the City, (ii) ad valorem taxes levied by the City will not be levied on taxable property within District (including specifically any area of limited -purpose annexation), and (iii) the area of limited -purpose annexation shall be treated as if it were within the City's extraterritorial jurisdiction except as specifically provided herein." 3. Agreement in effect. Except as specifically amended hereby, the Agreement remains in full force and effect, as of its Effective Date. [EXECUTION PAGES FOLLOW] 493218 Page 3 IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement effective as of the date first written above. ATTEST: ATTEST: By: Sec ! tary 493218 CITY OF PEARLAND, TEXAS By: Mayor BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 22 By: Pre ident, Board of Directors Page 4 STATE OF TEXAS COUNTY OF BRAZORIA Personally appeared before the undersigned, a Notary Public within and for said County and State. Buzz Crainer, Representative for Brenda Miller Fergerson, Publisher of the Pearland Journal, a newspaper of general circulation in the County of Brazoria,State of Texas. Who being duly sworn, states under oath that the report of Legal Notice, a true copy of Which is hereto annexed was published in said newspapers in its issue(s) of July 10, 2014. (Fjtzzatse4;4L__ blisher's Representative Sworn to and subscribed before me this /? day of Aus it 5 71, 2014.. Notary Pub is My commission expires on "//' ZD/4 ��`PY PI�� o�?.• Vie,- LUCILLE GUERRA Notary Public,State of Texas ;,9,"4,1i My Commission Expires '......; ...° January 18, 2016 •R-F'- 7#•-••,--4.-G- _ • • NOTICE-OF PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE STRATEGIC PARTNERSHIP AGREEMENTS BETWEEN THE CITY AND BRAZORIA COUNTY MUNICIPAL UTILITY' ; DISTRICTS Nos.21 AND 22 • • ' • • ..Notice is hereby given•that on the 28th day of July,'2014, at' , 6:30 p.m., the City Council of the City of Pearland, Texas, , will conduct a Public Hearing in the Council Chambers,City Hall, 3519 Libertli Drive, Pearland,Texas, to gather public ' -comment and testimony regarding an amendment to the • „Strategic Partnership Agreements between the City and Brazoria County Municipal Utility Districts Nos.21 and_22: `. At said hearing,all interested parties'shall have the-right• and opportunity to`appear`and be heard on the subject.' , Young Lorfing,TRMC • - City Secretary • .-This site is accessible to disabled individuals. For special assistance, please call.Young Lorfinq•at 281.652.1655, —prior to the meeting so that appropriate arrangements can be made. - - 00) (gyp.� STATE OF TEXAS COUNTY OF BRAZORIA Personally appeared before the undersigned, a Notary Public within and for said County and State. Buzz Crainer, Representative for Brenda Miller Fergerson, Publisher of the Pearland Journal, a newspaper of general circulation in the County of Brazoria,State of Texas. Who being duly sworn, states under oath that the report of Legal Notice, a true copy of Which is hereto annexed was published in said newspapers in its issue(s) ofJuly 3, 2014. 4 liwy 34/4.1te.,L.„../ ublisher's Representative Sworn to and subscribed before me this_ /34-4 day ofAzgzes 71 , 2014. 4.7./ e_., :140 6--2Ze—e.,1.4.,s-- Notary Public My commission expires on /—/8- 20/4 s.��pr P.,',� �..''' 4:.,_ LUCILLE GUERRA _?• '__ Notary Public,State of Texas s;� ..; My Commission Expires '-,',; ;;t1 January 18, 2016 NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE STRATEGIC PARTNERSHIP AGREEMENTS BETWEEN THE CITY AND BRAZORIA COUNTY L MUNICIPAL UTILITY DISTRICTS Nos.21 AND 22 Notice is hereby given that on the 14th day of July, 2014, at 6:30 p.m., the City Council of the City of Pearland,Texas, will conduct a'! Public Hearing in the Council Chambers,City Hall,3519 Liberty Drive,; Pearland,Texas,to gather public comment and testimony regarding an" amendment to the Strategic Partnership Agreements between the City,' and Brazoria County Municipal Utility Districts Nos.21 and 22. At said hearing all interested parties shall have the right and opportunity", to appear and be heard on the subject. • ; Young Lolling,TRMC City Secretary. i. This site is accessible to disabled individuals. For special assistance; please call Young Lorfinq at 281.652.1655,prior to the meeting so that_. appropriate arrangements can be made. n