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CC Resolution No. 2569RESOLUTION NO. 2569 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO NOTIFY CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 OF THE CITY'S INTENT TO TERMINATE THE WATER SUPPLY AND WASTE DISPOSAL AGREEMENT ON MARCH 3, 2021; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** WHEREAS, the City of Baytown entered into a Water Supply and Waste Disposal Agreement (the "Agreement") on March 4, 1996, with Chambers County Municipal Utility District No. 1 (the "District") to provide the District with utility services; and WHEREAS, the Water Supply and Waste Disposal Agreement (the "Agreement") requires that a two-year notice prior to its expiration be provided to the District for termination; and WHEREAS, the City also entered into a Strategic Partnership Agreement ("SPA") with the District on June 27, 2005, and entered into a similar SPA with the District on January 28, 2008, in order to collect sales and use taxes, to apply certain City ordinances, and to grant a limited immunity from full -purpose annexation until March 3, 2021, for those commercial areas subject to the SPA's; and WHEREAS, on or before December 3, 2020, the City Manager is required to evaluate and make a recommendation to the City Council regarding whether the City should negotiate a new SPA, annex the properties for full purposes, or allow the SPA to expire. WHEREAS, the City desires to work with the District to determine the best course of action for the City and the residents of the District; and WHEREAS, in order to preserve all of the City's options, the City desires to give notice of termination of the Agreement so the City can either (i) negotiate a new agreement with the District or (ii) annex the territory for full purposes and provide full municipal services to the District; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the findings of the City Council of the City of Baytown contained in the recitals of this resolution are hereby approved and adopted. Section 2: That the City Council of the City of Baytown hereby authorizes the City Manager to notify Chambers County Municipal Utility District No. 1 (the "District") of the City's intent to terminate the Water Supply and Waste Disposal Agreement with the District on March 3, 2021. Section 3: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 28th day of February, 2019. B D N CAPETILL a or T 04 LgricIA BRYSCH, City Clerk APPROVED AS TO FORM: ,,�ACIO RAMIREZ, SR., VAttorney �cobfs0l\legal\Karen\FileslCity Council\Resolutions\2019\February 281CCMUDTermina6on.doc