ORDER NO.28571 REQUEST CITY OF KERRVILLE TO GRANT WAIVER OF FEES Came to be heard this the 22"a day of March 2004 with a motion made by Commissioner Nicholson, Seconded by Commissioner Baldwin, the Court unanimously approved by a vote of 3-0-0 to request the City of Kerrville to grant a waiver of hookup and capital recovery fees for sewer and water connection for River Star Arts and Event Park. ~~ ~ ~~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: William H. Williams OFFICE: Commissioner, Pct. 2 MEETING DATE: March 22, 2004 TIME PREFERRED: SUBJECT: (Please be specific) Consider, discuss, and take appropriate action requesting City of Kerrville to grant a waiver of hookup and capital recovery fees for sewer and water connection for River Star Arts and Event Park under construction on Kerr County property. EXECUTIVE SESSION REQUESTED NAME OF PERSON(S) ADDRESSING THE COURT: Commissioner Williams. ESTIMATED LENGTH OF PRESENTATION: 5 Minutes IF PERSONNEL MATTER NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation is appreciated and contributes toward your request being addressed at the earliest opportunity. See Agenda Request Rule adopted by Commissioners Court. ~~P~ E ~F~ x Oa`ntY ot~0~ COUNTV JUDGE PAT TINLE \' COMMISSIONERS COURT H.A. ~BusTER" BALDWDH, PCT. I WILLIAM "BILL° WILLfAMS, PCT. 2 JONATHAN LETZ, PCT. J DA\'E NICHOISON, PCT. ~ THE COUNTY COURT of KERB COUNTY,TEXAS 700 MnIN Ri:RRVn.I.r, Trxns 78028 Tra_ (830)792-2211 Pnx:(8?0)792-2218 E-Mnn.: kerrcocc a.kic.com March 11, 2004 Mr. Ron Patterson, City Manager City of Kerrville 800 Junction Hwy. Kerrville, TX 78028 Dear Ron: Kerr County has leased approximately seven (7) acres on the Western end of its property at the Hill Country Youth Exhibit Center to the Texas State Arts and Crafts Educational Foundation to construct the River Star Arts and Event Park. This park will become the permanent home of the Texas Arts and Craft Fair and be open for other events throughout the year. Construction is underway, and the Foundation plans to conduct its 2004 Texas Arts and Crafts Fair over the Memorial Day weekend on this site. City records should confirm that in 1997, Ken County funded the extension of the sanitary sewer line the city constructed on Riverside Drive that resulted in the Hill Country Youth Exhibit Center connection to the Riverside Drive sewer line. Hookup and capital recovery fees were waived by the city. Further, in January 2000, and August 2001, Ken County requested a waiver of fees for out-of--city sewer service for Flat Rock Lake Park and the Kerrville Youth Baseball and Softball complex. Both of these waivers were approved by the Kerrville City Council. Currently the Hill Country Youth Exhibit Center, the Kerr County Agricultural Extension Building, and the Kerrville Youth Baseball and Softball complex have both city sewer and water connections. The immediate construction calls for permanent restroom facilities and an office building to be constructed on the southeastern part of the property near Riverside Drive. Both sewer and water connections are needed for this facility. An additional sewer and water tap may be needed in the future to accommodate future facilities in the western portion of the property. A city water line traverses the Arts and Crafts Park property, and a tap offthis line will likely satisfy their water connection requirement. Therefore, in summary, Ken County is requesting waiver of hookup and capital recovery fees for the sewer and water connections at the River Star Arts and Event Park now under construction on county property. This request is consistent with the previous CLERK JANNETT PIEPER COURT COORDINATOR THEA SovH agreements referenced for the development of the sewer and water needs for this property. I anticipate this request will be confirmed by Court Order at our March 22, 2004, meeting. Sincerely, William H. Williams, Commissioner, Precinct 2 c. County Judge Pat Tinley Commissioner H. A. "Buster" Baldwin Commissioner Jonathan Letz Commissioner Dave Nicholson Bob Miller, Executive Director, Texas Arts and Crafts Educational Foundation Agenda Item Backup Information and Comments The agenda item refers to the letter I sent to City of Kerrville on behalf of the Texas State Arts and Crafts Educational Foundation requesting waiver of hookup and capital recovery fees for sewer and water connections to their new River Star Arts Park. It is my understanding this item will be on City Council Agenda Tuesday 4/23104. It might be helpful to the Court to read and digest the letter from Ron Patterson to Bob Miller. In this correspondence, he seems to be closing the door on any request of this nature because TSA&CF is a tenant on our property. He only holds out "Economic Development" as a possible carrot. The underlying issues are two-fold. They are: one. The fair is moving to a location out of the city limits, and therefore all sales that take place during events there are not subject to city sales tax; and any improvements are not subject to ad valorum tax. They forget the TSA&DF Foundation is atax-exempt organization. Secondly, Mayor Fine, in a conversation with me at a recent KEDF meeting, wanted to know if we would consider allowing the city to annex that portion of our property upon which the Arts Park will be located. He used as his reason for annexation that the city health inspector would no longer be able to police food vendors at the fair, and he believed that such health oversight is valuable to the general public. To, this I would agree. However, I believe his query is really tax driven and not health-related. I told him I had no way of knowing whether Commissioners' Court would be so inclined, but I would make you aware of his request. WHW THE CITY OF KERRVILLE, TEXAS March 10, 2004 VIA a-mail Followed by U.S. Mail Mr. Bob Miller, Executive Director Texas Arts and Crafts Education Foundation P.O. Box 291527 Kerrville, Texas 78029-1527 Dear Mr. Miller: I have reviewed your email, dated March 4~', 2004, and completed the research necessary to answer your questions for the Texas Arts and Crafts Educational Foundation's ("Foundation") project. I will address the water and sewer issues separately then provide an outline of the process required to proceed. Water: r.,, Because the Hill Country Youth Exhibition Center ("Ag Facility') was and remains outside the City of Kerrville ("City") limits the then Kerr County ("County") Judge, in a letter dated July 13~', 1982 (Attachment #1}, requested the City provide water service to the Ag Facility at the inside City rates. Additionally, the request acknowledged that requirement to pay all "usual and customary charges for tapping the City's water main." The City looked favorably on this request due to the fact that it was providing direct service to a facility owned and operated by "another unit of government." On July 27~', 1982 the City Council approved the request for outside City water service at the inside City rates (Attachment #2). However, none of the available documentation or records indicates approval of future water taps at no charge to the County or any other entity. Please be aware that even if such documentation did exist that provision of water (or sewer) service to any agency other than "another unit of government" would not be covered. This provision was, and is, only for providing services directly to a facility that is owned and operated by the governmental unit in question, the County. Simply being a tenet on property owned by such governmental unit does not qualify for waiver of the required tap fees. Sewer - On July 8~', 1996 the City entered into an agreement with the County to provide for the extension of a sewer line to the Ag Facility as part of a project the City was already undertaking (Attachment #3). This agreement contemplated the County would pay for such extension and upon completion of such extension the facility would be connected `~ to the City's sewer system. $00 JUNCTION ffiGHWAY • KERRVILLE, TEXAS 78028-5069 • 830/257-8000 U:\Ron Correspondence - 20041Arts and Crafts Foundation - WaterSewer Req.doc -- - - Page_ 1 of 3 - While the above referenced agreement does not mention capital recovery or tap fees the City has no record of such payment. It appears that since the County was paying '~ the cost of the improvements to the trunk main system (not a service line improvement) no such fees applied to this situation. Again, this was for a specific use owned and operated by "another unit of government." The referenced agreement also does not provide for the provision of any additional sewer taps for County use. There is, however, another agreement (via Resolution 010- 2000 Attachment #4) that not associated in any way to the original sewer extension agreement that authorized two additional connections to the sewer system for facilities owned and operated by "another unit of government", the County. The outside City connection and the waiver of capital recovery fees were for the Kerrville Youth Baseball and Softball Facilities and for Flat Rock Lake Park. Again, please be reminded that these connections were specially authorized for providing services directly to facilities that are owned and operated by the County. Simply being a tenet on property owned by such governmental unit does not qualify for waiver of the required capital recovery fees. I understand that two questions were raised about the capital recovery fees. One was what the fee is for. Simply put it is for the impact on the system, additional flow, etc. The second was about making a request to the City Council to waive the capital recovery fees due to a provision in the City's ordinance that allows for such waiver in the case of creating economic development. Such request may be made and I will include how to do that in the section below that will address the next steps that need to be taken. I would point out, however, that the Foundation's project is actually moving an existing venue outside the City limits. This means that there will be no ad valorem taxes generated on the improvements and the City will no longer collect the sales tax that was previously generated from the venue. Yes, the City and County will still reap the benefits that they always have from the hotel room nights, other spin off shopping, etc. but the City will no longer enjoy all of the benefits it once did. It is because of this situation that it may be difficult for the Council to make a finding for waiver under that provision. Electricity I must apologize but on this matter I cannot provide any input or direction. 1 do not have any operation control over this utility thus I am not familiar with any of their policies/procedures that might impact your situation. I would direct your questions and/or requests to Mr. Bill Taylor. Next Steps: 1. Prepare a written request addressed to the City Council requesting water and sewer service outside the City limits. This request may come directly from the Foundation since you will not be requesting free taps that were mistakenly thought to have been granted to the County. In order to place this item on the Tuesday, March 23 City Council meeting please have the letter, with any desired backup, to Dane Tune at City Hall no later than noon March 16. 800 JUNCTION ffiGHWAY • KERRVII.LE, TEXAS 78028-5069 • 830/257-8000 U:1Ron Correspondence - 20041Arts and Crafts Foundation - WaterSewer Req.doc --- __ Page20 3- 2. Should you choose to additionally request the waiver of tap and capital recovery fees please include this in the above referenced letter. Make sure that you specifically outline your justification for such request. 3. Once the Council has approved the outside City connection, and if you either choose not to request waiver of fees or the Council does not approve such then your previous payment of $2,092.20 for a water tap fee will be processed and you will need to make a payment of $1,000.00 for the capital recovery fee. 4. Schedule the water tap installation with the Utilities Division (792.8319 or 792.8318). 5. Establish your water and sewer account with the City by coming to the Utility Billing Division in City Hall (Inside front door to right.). Sorry to be so long winded but I wanted you to have a full explanation on this matter. I hope you do not mind the use of a-mail for my initial response. I used it because I know that time is of the essence for you. Should there be any additional questions please feel free to call or send a-mail any time. Respectfully, //Signed// Ron K. Patterson City Manager c: County Judge and Commissioners ^ Mayor and City Council File Attachments: 1. County request letter dated July 13, 1982 2. Excerpt, City Council minutes dated July 27, 1982 3. Agreement between County and City regarding sewer line construction 4. City Resolution 010-2000 concerning sewer services 800 JUNCTION HIGHWAY • KERRVII.LE, TEXAS 78028-50b9 • 830/257-8000 U:1Ron Correspondence - 20041Arts and Crafts Foundation - WaterSewer Req.doc - - - - - Page 3 of 3 - - FIGIO COUNTY SCHOOL SUPERINTENOEI'IT Mr. Lou Odle City Manager City Hall Kerrville, Texas Dear Lou: IULIUS R. NEUNHOFFER COUNTY JUDGE, KERR COUNTY KERRVILLE• TEXAS 7F3U28 78028 July 13, 1982 PHONE 312-237-7033 Pursuant to our telephone conversation of yesterday I am, by means of~this letter, communicating to the City Council Kerr County's formal request for city water service for the Kerr County Agricultural Exhibition Buildings on the south side of State Highway 27. While our property is traversed by a city water main pursuant to an easement previously granted to the City of Kerrville, the propert~r to be served is just outside the City's corporate limits. In addition to this request for service, it is further requested ~ that the City Council consider a waiver of the customary policy to charge double the regular municipal rates for water service outside the corporate limits. A favorable consideration of this additional request is sought inasmuch as the requested service is by another unit of government and the fact that the property to be served would be exempt from municipal ad valorem taxes if it were to be within the corporate limits. I wish to further advise that the officials of the Junior Livestock Association have made a determination that a two inch meter would be required to meet the needs of all of the new and expanded facilities which can no ,longer be adequately served by our obsolete private water system. Kerr County is, of course, prepared to pay the City of Kerrville the usual and customary charges for tapping the City=s main and for the meter installation charges. Thank you and the members of the City Council for your favorable consideration of our requests. Very truly yours, JRN/bgm pc: George A. Holekamp, -~.~~' ~'' T ' ~ ~ f ~ !' ~ , ~'~ 'I- • i J ius R. ~N~unhoffer ~~ ~ G~ounty Judge , ~ r / jai President, Livestock Show Assn. - 55 - C; /1~e e ~~ ~a /17G ' ~~tU S-c.~ RECEIVED JUL 1 3 i982 ~~ h~~~ ~ ~ '„STATE OF TEXAS 'JNTY OF KERR ..QTY OF KERRVILLE VOL 27 PAGE 131 JULY 27, 1982 On Tuesday; July 27, 1982, the City Council met in -•egular session at 7:30 p.m. in the City Hall Conference Room. The meeting was called to order by Mayor Calk. The invocation was voiced by Rev. David Lilley, Zion Lutheran Church. X34 APPROVAL OF COUNTY REQUEST FOR WATER SERVICE AT EXHIBITION BUILDING A letter from Judge Julius R. Neunhoffer requests city water servit for the Kerr County Agricultural Exhibition Buildings on the south side' State Highway 27. It is further requested that the City Council consid a waiver of the customary policy of charging double the regular municip~ rates for water service outside the corporate city limits. t -.Councilman Pollard moved to.authorize water service at the Exhi Building and to charge only the single rate. Motion was seconded by Councilman Stacy, and the motion passed unanimously by five votes. APPROVAL OF LONE STAR GAS COMPANY GATE RATE INCREASE The Texas Municipal League proposes to investigate Lone Star Gas Company's application to the Texas Railroad Commission for a 19% gate increase. The City of Kerrville's participation in this effort, at a of 4d per capita, would amount to $611. Councilman =Pollard moved to join the TML in this effort and auth~ the $611 expenditure. Motion was seconded by Councilman McAshan, and motion passed unanimously by five votes. ~6i18i96 14;34 CITY OF KERRVILLE -- 7922238 ,4~-~~a„M~.JI- ~,3 AGItEF-M1ENT BETWEEN CITY OF YCERRVII.LE, TEXAS AND KERR COUNT`l, ~XAS REGARDINC3 CONSTRUCTION OF - SEWER LINE TQ ~iII.L COUNTRY YOUTH EXHIBITION CENTER N0. 698 D02 THIS INTERLOCAL AGREEMENT is made and entered into on this the ~~, day of ,T„~~, , 199b, by and between the City of Kerrville, Texas, ("City"), and the County of Kerr, Texas, ("County"): WITNESSETH: WI~REAS, the County owns and operates the Hill Country Youth Exhibition Center located at 4104 San Antonio Highway ("the Center"); and WHEREAS, the Center is presently not served by sanitary sewer; and WHEREAS, City has previously approved as a capital improvement projcct the extension of water and sewer linos along a portion of Riverside Drive within the City limits near the Center; and WI:~REAS, extension afthe sewer line which the City intends to construct along Riverside Drive beyond the City limits would make that line available to the County for providing service to the Center; and WHEREAS, upon the County's _ _eement to pay for the~portion aof~construction of~the additional extension of the sewer line~a serve the Center; the City will agree to expand the scope of its capital improvement project to extend the sewer line previously planned to the vicinity of the Center; and WI~EIZEAS, both the City and County find that such a joint project would be beneficial to and in the interest of the residents of Ken County, including those who reside within the City of Kerrville; NOW, THEREFORE, in consideration of the recitals set forth above and the covenants expressed herein, and in accordance with the Interlocal Cooperation Act (Tex. Govt. Code X791.001, et. seq. ), City and County hereby agree as follows: 1. The City agrees to prepare plans and specifications which will provide for the construction of an 8-inch SDR-2b waste water main and all related manholes and appurtenances that will extend generally along that portion of Riverside Drive fr~t~th~~C~ity'~s'incorporated~iimits~o~heiite~'fob +an~ppr~imate~ength~of~~35~inear~feet~ (hereafter called "the Project"). i -- 2. The City shall utilize the provisions of Tex, t,oc. Gov't. Code X52.001, et seq, and applicable City ordinances and policies for purchasing and contracting far the Project. Approved by City Cc:~ncil Date: ? 3 i~~~ Volu e~_~Rage 5, ° 9 _-- --- -- 06ii8i96 1a: 35 CIT~f OF KERRVILLE -+ 7922238 N0. 698 D03 3. Not later than thirty (30) days following receipt of written notice of the City Engineer's acceptance of the Project, the County shall reimburse the City an amount equal to the actual cost of the constFUCtion of the Project set forth in said notice. 4, Far purposes of this Agreement, the cost estimate far the Pro}ect is $65,000.00. County agrees and represents that it has current funds available to reimburse the City as required by Section 3, above, in the amount of $65,000.40. City will notify County in whiting of the bids received for the Project indicate that the actual cast of the construction of the Project will exceed $65,000.00. County shall notify City not later than fifteen (15) days a$er receipt of the notice from City that County: a. has current funds available and agrees to reimburse the City for the cost of the Project up to the actual bid amount; or b. desires to terminate this Agreement. In the event County fails to provide the required notification to City or notifies City that County desires to terminate this Agreement, City shall be released from all obligations to construct the Project. ~. 6. Upon completion of the Project, title to the Project shall be in the City, 7. County agrees to dedicate to the City such utility easements as may be necessary for the City to construct, operate, maintain, repair, and replace the lines and appurtenances associated with the Project. Such easements shall be in a form approved by the City Attorney and the attorney representing the County in such matters, 8. Upon completion of the Project, County agrees to pay City the rate for sewer service charged to commercial customers located within the City limits as established by City from time to time. Prior to commencement of service, County agrees to negotiate in good faith an agreement with City regarding the provision of sewer service outside the City limits. 9. This contract shall be binding upon the parties hereto; provided, however, that neither the City nor the County shall assign, sublet, ar transfer their interest in this contract without the prior written consent of the other. 10. This contract has been made in and shalt be construed in accordance with the laws of the State of Texas. Venue shall be in Kerr County, Texas. 11 Notice to City provided herein shall be sufficient if sent by first class mail, postage prepaid to: Cam' UN' KFRi;~~11 NlKF.RR ~oL'NTY At:ELFEMroNT FQR ExTRNFTAN ~.r Scvrrit CIO tiiy. ~Ut~N~1~t Y YOLTH 15CHIRl7TON C~NTRR- PAC:F Z i-, 06i18i96 14:35 CITY OF KERRUILLE ~ 7922238 ,-- City Manager's Office 800 Junction Highway Kerrville,-Texas 7802$ and notices to County, if sent by first class mail, postage prepaid addressed to: County Judge Kent County Courthouse 700 Main Street I{ecrville, Texas 7828 N0.698 D04 or to such other addresses as the parties may designate to each other in writing from time to time. SIGNED AND AGitEED on the dates indicated by the parties below. CITY Ole TCERRVIT.T.,E, 'T'EXAS _ B CharJe P. Johns ayor 7 -- Z Date ATTEST: She~Ia L. Brand, City Clerk APPROVED AS Tp FORM: Kevin B. Laughlin, City ttorney o:~wve[ocn:~wroocsvrn.tnttit~xrx.nr. Munutta.[na ..-,. COUNTY OF KERT~ TEXAS By ~.~ ol3ert A. e / County Judgc b Data ATTEST; Patricia Dye, County Cl APPROVED AS TO FORM: ~~ p} I~R ~~**'1 c ~Rji, CUUN7V AGtLMRNT NOR E7tTENSIQN ~,r 4vwr..re ~.rrr~: •rc~ TiLL_COiTT+ITicY 'Y'C1u•771 E!CHIBITIAN 'FNTTT;,~ PJ~CE ~ ~i • • ~~~~~~ ~~ CITY OF KERRVILLE, TEXAS RESOLUTION NO. 010 -2000 RESOLUTION AUTHORIZING SEWER SERVICE CONNECTIONS AND WAIVER OF CAPITAL RECOVERY FEES FOR FLAT ROCK LAKE PARK AND KERRVILLE YOUTH BASEBALL AND SOFTBALL ASSOCIATION FACILITIES WHEREAS, Kerr County Commissioners' Court has requested sewer service connections for Flat Rock Lake Park and Kerrville Youth Baseball and Softball Association facilities; and WHEREAS, these locations are out of the city limits, but in close proximity to the Guadalupe River and Third Creek, it is desirable that any sewer generated by these facilities be handled by the city wastewater system and not by on-site wastewater facilities; and WHEREAS, Kerr County has requested that the City waive the payment of capital recovery fees; and WHEREAS, the City Council of the City of Kerrville, Texas, finds these connections and waiver of fees to be in the best interest of the general public; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF .._. KERRVILLE, KERR COUNTY, TEXAS: Out-of--city sewer service connections and waiver of capital recovery fees for Flat Rock Lake Park and Kerrville Youth Baseball and Softball Association facilities are hereby approved. PASSED AND APPROVED ON this the ATTEST: // da of A.D., 2000. Ben R. ow, Mayor f ~ ~ ~~~ ~~ Sheila L. Brand, City Clerk APPROVED AS TO FORM: ,.-. - Kevin B. Laughlin, Cit Attorney F:\WPDOCS\WastewaurVtes\County Connexions and Waives a Fees.wpd Approved by CiISr C: i~~,:r` Date: `~1'1~-.00 Vol e_~"age 3/~