14-R-66 - Cibolo Creek Municipal Authority-Wastewater FacilityRESOLUTION NO. 14 -R -66
RESOLUTION BY THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF
SCHERTZ, TEXAS AND THE CIBOLO CREEK MUNICIPAL AUTHORITY
REGARDING PURCHASE OF PROPERTY FOR A FUTURE WASTEWATER
TREATMENT FACILITY
WHEREAS, the City of Schertz, Texas (the "City ") and the Cibolo Creek Municipal Authority
(the "Authority") desire to enter into an inter -local agreement regarding the purchase of property
for a future Wastewater Treatment Facility; and
WHEREAS, the Authority is the regional agency designated to provide regional wastewater
service in the Cibolo Creek Watershed in the vicinity of the City; and
WHEREAS, the City is faced with future growth within its city limits in the vicinity of
Interstate Highway 10 and Cibolo Creek for which additional wastewater treatment facilities will
be needed; and
WHEREAS, the City desires the Authority to develop a wastewater treatment facility in the
vicinity of Interstate Highway 10 and Cibolo Creek that would allow the City and the Authority
to provide wastewater treatment services in the area of the Plant Site; and
WHEREAS, to assist the Authority in its efforts to acquire the Plant Site, the City desires to
advance, in accordance with the terms of an inter -local agreement, up to Two Million and
No /100 Dollars ($2,000,000.00) to the Authority for use by the Authority to purchase the Plant
Site and to perform legal and due diligence activities in connection with such acquisition; and
WHEREAS, Chapter 791 of the Texas Government Code, as amended, titled Interlocal
Cooperation Contracts, authorizes contracts between political subdivisions for the performance
of governmental functions and services, and pursuant to Chapter 791, Texas Government Code,
as amended, and the general and special laws of the State of Texas, the Parties are authorized to
enter into such an inter -local agreement; and
WHEREAS, the City staff the City has recommended that the City enter into an inter -
local agreement with the Authority for the purchase provided for herein; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
into said inter -local agreement.
NOWTHEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the City to execute the inter -local
agreement regarding the purchase of property for a future Wastewater Treatment Facility as
attached to this Resolution as Exhibit A.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this5`u- day of � i , 2014.
CITY OF SCHERTZ, TEXAS
Mayor, Michael R. Carpenter
ATTEST:
City Secretary, Brenda Dennis
(CITY SEAL)
Exhibit A COPY
INTERLOCAL AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND
THE CIBOLO CREEK MUNICIPAL AUTHORITY REGARDING PURCHASE OF
PROPERTY FOR A FUTURE WASTEWATER TREATMENT FACILITY
This Interlocal Agreement Between the City of Schertz, Texas and the Cibolo Creek
Municipal Authority Regarding Purchase of Property for a Future Wastewater Treatment Facility
(the "Agreement ") is entered into between the City of Schertz, Texas, a Texas municipal
corporation (the "City"), and the Cibolo Creek Municipal Authority, a conservation and
reclamation district created and operating pursuant to Article XVI, § 59 of the Texas
Constitution (the "Authority"), to be effective as of the date on which the last Party signs this
Agreement (the "Effective Date "). The City and the Authority are collectively referred to herein
as the "Parties" and are each a "Party"
WITNESSETH:
WHEREAS, the Authority is the regional agency designated to provide regional
wastewater service in the Cibolo Creek Watershed in the vicinity of the City.
WHEREAS, the City is faced with future growth within its city limits in the vicinity of
Interstate Highway 10 and Cibolo Creek for which additional wastewater treatment facilities will
be needed.
WHEREAS, the City desires the Authority to develop a wastewater treatment facility in
the vicinity of Interstate Highway 10 and Cibolo Creek ( "Plant Site "), to be known as the
Southern Watershed Regional Water Reclamation Plant (the "Southern Plant "), that would allow
the City and the Authority to provide wastewater treatment services in the area of the Plant Site.
WHEREAS, to assist the Authority in its efforts to acquire the Plant Site, the City
desires to advance, in accordance with the terms of this Agreement, up to Two Million and
No /100 Dollars ($2,000,000.00) to the Authority for use by the Authority to purchase the Plant
Site and to perform legal and due diligence activities in connection with such acquisition.
WHEREAS, the Authority and the City, exercising their respective mutual authorities,
wish to enter into this Agreement to set forth the terms and conditions related to the City's
advancement of funds to the Authority for acquisition of the Plant Site and related legal and due
diligence activities in connection with such acquisition.
WHEREAS, this Agreement shall not affect the existing wholesale contract between the
City and the Authority.
WHEREAS, Chapter 791 of the Texas Government Code, as amended, titled Interlocal
Cooperation Contracts, authorizes contracts between political subdivisions for the performance
of governmental functions and services, and pursuant to Chapter 791, Texas Government Code,
as amended, and the general and special laws of the State of Texas, the Parties are authorized to
enter into this Agreement.
50665099.2
AGREEMENT:
NOW THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the sufficiency of which are acknowledged, and subject to the terms and conditions
hereinafter set forth, the Parties agree as follows:
I. Advancement of Funds
1.1 The City agrees to advance funds of up to Two Million and No /100 Dollars
($2,000,000.00) (the "Funds ") to the Authority for use by the Authority to purchase the Plant
Site and to perform legal and due diligence activities in connection with such acquisition.
1.2 The City will advance such Funds to the Authority at such time as the Authority has
entered into a contract for acquisition of the Plant Site.
1.3 If CCMA has not entered into a contract to purchase the Plant Site by September 30,
2014, then the City's obligations to advance the Funds shall cease and this Agreement shall
become null and void and of no further effect.
II. Repayment of Funds
2.1 The Authority shall reimburse the City the amount of the Funds advanced by the City no
later than December 1, 2014 (the "Repayment Date ") from the proceeds of bonds issued for,
among other purposes, the purpose of purchasing and acquiring the Plant Site and constructing
the Southern Plant (the "Bonds ").
2.2 Should CCMA fail to reimburse the City by the Repayment Date, then the Authority shall
reimburse the Funds to the City in one of the following ways upon receipt of a written
declaration by the City as to the form of reimbursement (the "Declaration "): (a) Convey the Plant
Site to the City free and clear of any liens in a reasonable and timely manner; or (b) within 90
days of receiving the Declaration, repay the total amount of the advanced Funds to the City.
IH. Binding Effect; Benefiting Parties
3.1 This Agreement shall bind and benefit the respective Parties and their legal successors,
but shall not otherwise be assignable, in whole or in part, by either Party without first obtaining
the written consent of the other Party.
3.2 This Agreement inures to the benefit of and obligates only the Parties. No term or
provision of this Agreement shall benefit or obligate any person or entity not a Party to the
Agreement. The Parties shall cooperate fully in opposing any attempt by any third person or
entity to claim any benefit, protection, release, or other consideration under this Agreement.
50665099.2 - 2 -
IV. Governmental Functions; Liability; No Waiver of Immunity or Defenses
4.1 Notwithstanding any provision to the contrary herein, this Agreement is. a contract for
and with respect to the performance of governmental functions by governmental entities.
4.1.1 The services provided for herein are governmental functions, and the City and the
Authority shall be engaged in the conduct of a governmental function while providing
and/or performing any service pursuant to this Agreement.
4.1.2 The relationship of the Authority and the City shall, with respect to that part of
any service or function undertaken as a result of or pursuant to this Agreement, be that of
independent contractors.
4.1.3 Nothing contained herein shall be deemed or construed by the Parties, or by any
third party, as creating the relationship of principal and agent, partners, joint venturers, or
any other similar such relationship between the Parties.
4.2 Each Party reserves and does not waive any defense available to it at law or in equity as
to any claim or cause of action whatsoever that may arise or result from or in connection with
this Agreement. This Agreement shall not be interpreted nor construed to give to any third party
the right to any claim or cause of action, and neither the City nor the Authority shall be held
legally liable for any claim or cause of action arising pursuant to or in connection with this
Agreement except as specifically provided herein or by law.
4.3 Neither Party waives or relinquishes any immunity or defense on behalf of itself, its
trustees, councilmembers, officers, employees, and agents as a result of the execution of this
Agreement and the performance of the covenants and agreements contained herein.
V. Notices
5.1 All correspondence and communications concerning this Agreement shall be directed to:
SCHERTZ: City of Schertz
1400 Schertz Parkway
Schertz, Texas 78154
Attention: City Manager
AUTHORITY: Cibolo Creek Municipal Authority
By mail:
P.O. Box 930
Schertz, Texas 78154
By personal delivery:
100 Dietz Road
50665099.2 - 3
Schertz, Texas 78154
Attention: Clint Ellis
With a copy to: Harry B. Adams III
1001 Pat Booker Rd, Suite 200
Universal City, TX 78148
Notices required hereunder shall be hand - delivered or sent by prepaid certified mail, return
receipt requested.
VI. Severability
6.1 If any provision of this Agreement shall be deemed void or invalid, such provision shall
be severed from the remainder of this Agreement, which shall remain in force and effect to the
extent that it does not destroy the benefit of the bargain.
VII. Entire Agreement
7.1 This Agreement is the entire agreement between the City and the Authority as to the
subject matter hereof and supersedes any prior understanding or written or oral agreement
relative to the subject matter hereof. This Agreement may be amended only by written
instrument duly approved and executed by both Parties in accordance with the formalities of this
Agreement.
VIII. Governing Law; Venue
8.1 All Parties agree that this Agreement shall be construed under the laws of the State of
Texas, and obligations under the Agreement shall be performed in Guadalupe County, Texas. In
the event that any legal proceeding is brought to enforce this Agreement or any provision hereof,
the same shall be brought in the State District Court of Guadalupe County, Texas. The Parties
agree to submit to the jurisdiction of said court.
[ Signatures and acknowledgements on the following pages J
50665099.2 - 4 -
SIGNATURE PAGE TO
INTERLOCAL AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND
THE CIBOLO CREEK MUNICIPAL AUTHORITY REGARDING PURCHASE OF
PROPERTY FOR A FUTURE WASTEWATER TREATMENT FACILITY
The Parties hereto have executed this Agreement as of the dates set forth below to be effective as
of the Effective Date.
CITY OF SCHERTZ, TEXAS
By:
Jolu�eKC ssel,
City Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on the ��Lday of k it ST ,
2014, by John C. Kessel, the City Manager of the City of Schertz, Texas, a exas municipal
corporation, on behalf of said City.
( Notary Public in and for the State of Texas
50665099.2 S -1
SIGNATURE PAGE TO
INTERLOCAL AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND
THE CIBOLO CREEK MUNICIPAL AUTHORITY REGARDING PURCHASE OF
PROPERTY FOR A FUTURE WASTEWATER TREATMENT FACILITY
CIBOLO CREEK MUNICIPAL AUTHORITY
B y: d Q a -- &U —
Clint Ellis,
General Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on the l[IMday of
2014, by Clint Ellis, the General Manager of the Cibolo Creek Municipal Author , on behalf of
said entity.
[ Seal ]
Oee000e000
® SARAH E. GONZALEZ
Notary Public
State of Teias
ar� My Comm. Exp.10.31 -2016
50665099.2 S -2
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