HomeMy WebLinkAbout2021-0816 Amended and Restated ILA for Administration of Fire Protection Svc. with Town of Trophy ClubAMENDED AND RESTATED INTERLOCAL COOPERATION AGREEMENT
FOR ADMINISTRATION OF FIRE PROTECTION SERVICES
THIS AGREEMENT is made and entered into as of the Effective Date, by and
between Trophy Club Municipal Utility District No. 1, a district created pursuant to
Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54
hereinafter referred to as "District", and the Town of Trophy Club, a home rule
municipal corporation, hereinafter referred to as "Town".
WITNESSETH:
WHEREAS, District is a duly organized political subdivision of the State of Texas
engaged in the administration of fire protection and related services for the benefit of
those persons residing, traveling within, or being physically located within the boundaries
of District, which boundaries include, without limitation, portions of the incorporated and
unincorporated limits of the Town of Trophy Club, Texas; and
WHEREAS, the District and the Town are parties to that certain Interlocal
Cooperation Agreement for Administration of Fire Protection Services" dated September
19, 2016 (the "Prior ILA") setting forth certain agreements of the parties relating to Fire -
Fighting Activities, Fire Protection Services, and Fire Functions (as hereinafter defined)
to residents of the District and the Town, including to residents of the Trophy Club Public
Improvement District No. 1 (hereinafter also referred to as "PID");
WHEREAS, the provision of Fire Functions is a governmental function that serves
the public health and welfare, promotes efficiency and effectiveness of local governments,
and is of mutual concern to the contracting parties; and
WHEREAS, District is individually authorized to perform Fire Functions pursuant
to Section 49.351 of the Texas Water Code, and the Town is individually authorized to
perform Fire Functions pursuant to its police powers and the parties desire to enter into
this Agreement regarding the performance of Fire Functions; and
WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter
791, et seq., as amended (the "Act") provides authority for governmental entities of the
State of Texas to enter into interlocal agreements with each other regarding governmental
functions and services as set forth in the Act; and
WHEREAS, Town and District have determined it necessary and appropriate to
enter into a new agreement for the operation of Fire Protection Services superseding the
Prior ILA for Fire Protection Services.
NOW, THEREFORE, District and Town, for and in consideration of the recitals set
forth above and terms and conditions below, agree as follows:
Incorporation / Term
1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and
incorporated herein as a part of this Agreement.
1.2 Term. This Agreement shall become effective upon the Effective Date and shall
remain in effect until September 30, 2023. The Prior ILA shall terminate for all purposes
as of the Effective Date.
II.
Definitions
2.1 As used herein, the words and phrases hereinafter set forth shall have the
meanings as follows:
A. "Effective Date" shall mean October 1, 2021.
B. "Eligible Persons" shall mean those persons residing, traveling within, or being
physically located within the corporate boundaries of the Town of Trophy Club, Texas
and/or District, including without limitation both incorporated and unincorporated
areas, and shall also include those persons residing, traveling within, or being
physically located within the corporate boundaries of another political subdivision of
the State of Texas with whom Town and/or District have a mutual aid agreement to
provide fire protection services and those persons located within the fire district as
designated by Denton County and accepted by Town and/or District.
C. "Emergency Medical Services" shall mean any and all of the customary and usual
activities of trained paramedics providing emergency health care services,
D. "Fire -fighting Activities", "Fire Protection Services", or "Fire Functions" shall
mean any and all of the customary and usual activities of a fire department, including
fire suppression, fire prevention, training, safety education, maintenance,
communications, photography, and administration.
E. "Maximum Annual Payment Amount" means the maximum total payment that may
be made by District to Town each year to contribute funding to the cost of Fire
Functions. The Maximum Annual Payment Amount shall be the amount of revenues
available to the District from the levy of a fire tax without triggering the Voter Approval
Tax Rate. The District shall not be contractually obligated to levy, or collect, a tax to
pay the Maximum Annual Payment Amount to Town in any year, and in all cases, the
maximum annual payment obligation of District to Town under this Agreement shall
be limited to the final budget amount approved by the Board of Directors of the District.
F. "Voter Approval Tax Rate" shall have the meaning set forth in Section
49.23602(a)(4) of the Texas Water Code.
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III.
Budget and Funding
3.1 Budget and Funding Matters:
A. Budget Preparation: The parties agree to the following schedule of events for
purposes of preparation of an annual budget for funding Fire Functions:
Town shall prepare a preliminary draft budget for Fire Protection Services
and furnish that draft budget to the District on or before June 1 of each year. The
draft budget shall specify all projected revenues and expenses relating to Fire
Functions for the annual period and shall separately identify the expenses for
which District is responsible for payment in accordance with the funding provisions
of this Agreement.
ii. District shall provide initial comments and requested modifications to the
preliminary draft budget to the Town on or before June 30 of each year.
iii. After receipt of June preliminary appraised value information from Denton
and Tarrant County, but no later than June 30th of each year, District will provide
to Town a preliminary estimate of the Maximum Annual Payment Amount.
iv. Within seven (7) days after receipt of certified appraised value information
from Denton and Tarrant County, District will provide to Town the Maximum Annual
Payment Amount. To the extent District is aware of any obligations or
circumstances that would prevent District from funding the Maximum Annual
Payment Amount, District shall furnish such information and the best estimate of
available funding to be incorporated into the preliminary draft budget for Fire
Functions.
v. Representatives of Town and District shall cooperate in good faith to revise
and finalize a preliminary draft budget for Fire Functions for subsequent
consideration by the governing bodies of Town and District.
vi. The governing bodies of Town and District may, but shall not be obligated
to, meet before August 1 of each year (or such other date approved by the parties)
to discuss the preliminary budget.
vii. Each party shall adopt a fiscal year budget in accordance with their
respective statutory obligations, but the adopted budget for Fire Functions may not
allocate to District an annual payment obligation that exceeds the Maximum
Annual Payment Amount as furnished by District to Town based on final certified
appraised values in District or any lesser amount available for funding as
communicated by District to Town, or that includes any costs for which Town is
responsible for payment under this Agreement.
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B. Funding Obligations: District and Town shall share the funding of costs associated
with Fire Protection Services provided to Eligible Persons as defined herein, pursuant
to the approved Budget and in accordance with the terms of this Agreement; and,
under no circumstance shall the District's share of funding costs during any fiscal year
exceed the Maximum Annual Payment Amount or the budgeted expenses approved
by the District. Such funding shall be accomplished in accordance with the following
terms and conditions:
1) District shall continue to pay all debt service for debt previously incurred by District
for Fire Functions for as long as the debt remains outstanding.
2) District shall fund up to 50% of all budgeted costs of personnel providing Fire
Protection Services provided to Eligible Persons as defined herein.
3) Town shall fund the remaining percentage of all budgeted costs of personnel
providing Fire Protection Services provided to Eligible Persons as defined herein.
4) District shall fund up to 100% of budgeted costs of services and supplies
associated with Fire Protection Services and supplies.
5) In recognition that Fire Protection Services shall be provided to persons and
properties located within the Town but not within District, the Town shall levy and
collect an annual assessment on and collect from the owners of real property and
taxable improvements thereon located within the Town but not within District in
accordance with the Public Improvement District Act, Chapter 372 of the Texas
Local Government Code, as amended. Such assessment shall be adopted by
Town Council through the approval of the Annual Service and Assessment Plan
for Authorized Services for the Trophy Club Public Improvement District No. 1. If
the beneficial assessment determined in the SAP (Service and Assessment Plan)
is an amount less than the revenues that would be generated based on the fire tax
rate of District, Town shall fund the difference through other revenues identified in
Town's sole discretion.
6) Town shall pay for all costs associated with Fire Functions that are not part of the
approved budget. By way of example, if Town approves salary increases or
purchases equipment for Fire Functions outside of the approved budget, Town
shall be solely responsible for funding such costs.
7) The District agrees in good faith to communicate to the Town the intent to use fire
reserve funds not part of the approved budget that would reduce the fire reserve
fund balance below thirty (30) percent.
8) The District agrees to communicate the intent to create new debt related to Fire
Services allowing the Town the option to fund the expenditure prior to the debt
being issued.
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C. Payment: Payments from the District for the purpose of Fire Protection Services shall
be paid to the Town on a monthly basis. The monthly payments shall constitute the
entirety of the approved budget for District's payment divided by twelve (12) months,
minus total PID assessment fee for Fire Protection services, beginning on October 1
and concluding on September 30 of each fiscal year of the term of this Agreement.
Payments will become past due fifteen (15) business days after the established due
date.
The sole source of revenues for payment of the District's funding obligations under
this Agreement shall be the District's fire tax. Under no circumstances shall the District
be obligated to pay an amount to Town during a fiscal year that exceeds the Maximum
Annual Payment Amount or the amount of the budget for Fire Functions approved by
Board of Directors of District.
3.2 Audit, Revenues and Expenses:
A. Annual Audit and Revenues. Town shall conduct an annual audit by an independent
auditor that identifies the actual fiscal year expenses and revenues for Fire Functions.
The audit for each year shall be furnished to District on or prior to May 1 of the
subsequent year. By May 1 of each year, Town shall also identify and furnish to
District a listing of all revenues related to Fire Functions (whether or not budgeted) for
the prior year.
B. Expense Detail. Town shall furnish to District evidence of all expenses and costs
relating to Fire Functions funded by District (in whole or in part) within 15 days after
receipt of a request from District.
C. Reconciliation Payment. Any overpayment by District for a fiscal year period shall be
reimbursed by Town within 30 days after receipt of a written invoice for payment from
District. Overpayments may arise because the Town's expenses for Fire Functions
are less than budgeted, actual revenues are greater than budgeted, ineligible costs
are allocated to District, or for other reasons.
IV.
Operational Obligations and Rights of the Parties
4.1 District Obligations and Rights:
District and Town shall perform all of their respective duties and obligations as herein
stated and shall devote sufficient time and attention to the execution of such duties in full
compliance with the terms and conditions of this Agreement.
4.2 Town Obligations and Rights:
A. Upon the effective date of this Agreement, Town shall be responsible for providing
Fire Protection Services to Eligible Persons, including but not limited to assuming full
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responsibility for the operational control and management of Fire Protection Services.
The Town's responsibilities hereunder shall include, without limitation, the control, and
management of all personnel as more specifically set forth in Section VII and all policy
and personnel matters related to and arising out of providing Fire Protection Services
and the obligations specifically assumed hereunder.
B. Town, acting through its Town Manager or designees, shall oversee the daily
operations of Fire Protection Services.
C. The officers and employees of Town shall perform all duties and responsibilities
necessary to render Fire Protection Services to all Eligible Persons.
D. It shall be the responsibility and duty of Town, its officers and employees, within the
sole discretion of such officers and employees, to determine priorities in the
dispatching and use of such equipment and personnel to perform Fire Functions under
this Agreement.
E. Town shall have the authority to enter into mutual aid agreements on behalf of District
and Town to provide Fire Protection Services as deemed appropriate by Town. The
term of such agreements shall run concurrently with the term of this Agreement and
shall terminate upon termination of this Agreement.
F. Town shall perform all of its duties and obligations as herein stated and shall devote
sufficient time and attention to the execution of such duties provided on behalf of
District in full compliance with the terms and conditions of this Agreement and shall
provide immediate and direct supervision of employees, agents, contractors, sub-
contractors and/or laborers, if any, in the furtherance of the purposes, terms and
conditions of this agreement for the mutual benefit of Town and District.
G. District may hire Fire Auditors of their choice to review physical Fire Department assets
and operator practices on an annual basis for benefit of District and Town; audit may
occur during the month of April. (See Attachment "B"). All auditors fees for such audits
(excluding fiscal year financing audits) will be paid by the District.
H. The Town shall provide the District timely notice of any accident, damage, dangerous
or defective condition relating to District assets under this agreement.
V.
Assets
5.1 Ownership. Prior to the commencement of this agreement, all assets owned or
directly purchased by District utilized for Fire Protection Services shall remain the property
of District. This Agreement does not affect right, title or interest to such property. All assets
owned or directly purchased by Town utilized for Fire Protection Services shall remain
the property of the Town. This Agreement does not affect right, title, or interest to such
property.
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5.2 Ownership Upon Termination. Upon termination of this Agreement, each party
shall retain ownership of assets purchased with its respective funds unless both Town
and District elect to negotiate terms to transfer ownership to the other party.
VI.
Employee Supervision and Organization
6.1 Control and Oversight. Town shall have control and oversight over Fire
Protection Services and control and oversight over Emergency Medical Services. Town
shall have exclusive authority to establish Standard Operating Procedures for Fire/EMS
Protection Services. (hereinafter collectively, "SOPs").
6.2 Benefits and Human Resources Services. In accordance with Town personnel
policies, Town shall provide benefits and human resources services to all eligible
employees providing Fire Protection Services. DISTRICT shall provide funding as set
forth in Subsection 3.1(B). The Parties understand and agree that on and after the
effective date of this Agreement, all employees providing Fire Protection Services shall
be Town employees and shall be solely subject to Town personnel policies and SOPs.
VII.
Consideration
The parties agree that sufficient consideration for this Agreement exists and is found in
the payments made pursuant to Section III of this Agreement and in the cross promises
set forth above and other good and valuable consideration. District's agreement to fund
Fire Functions as provided in Section III above in exchange for Town's agreement to
oversee and manage Fire Functions for Eligible Persons as provided in Section IV above,
shall serve as sufficient consideration under this Agreement. Each party hereto paying
for the performance of governmental functions or services shall make such payments
from current revenues legally available to the paying party. Each party further agrees that
it is fairly compensated for the services or functions performed under the terms of this
Agreement.
VIII.
Negligence of Parties/Insurance
8.1 Town Negligence/Insurance. Town shall be responsible for its sole negligence.
Town agrees to and accepts full responsibility for the acts, negligence, and/or omissions
of all Town's officers, employees, and agents acting under its direction. Town shall
provide liability insurance to cover the acts and omissions of Town, its officers,
employees, and agents performing obligations under this agreement, including but not
limited to all personnel providing Fire Protection Services. Town shall maintain general
liability insurance to cover Town owned or leased assets.
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8.2 District Negligence/Insurance. District shall be responsible for its sole
negligence. District agrees to and accepts full responsibility for the acts, negligence,
and/or omissions of all District's officers, employees, and agents acting under its direction.
District shall maintain general liability insurance to cover District owned or leased assets.
District shall provide liability insurance to cover the acts and omissions of District, its
officers, employees, and agents performing obligations under this Agreement.
IX.
Immunity
The fact that Town and District accept certain responsibilities relating to the rendering of
Fire Protection Services under this Agreement as part of their responsibility for providing
protection for the public health makes it imperative that the performance of these vital
services be recognized as a governmental function and that the doctrine of governmental
immunity shall be, and it is hereby, invoked to the extent possible under the law. Neither
Town nor District waives any immunity or defense that would otherwise be available to it
against claims arising from the exercise of governmental powers and functions.
X.
Default / Termination
In the event that either party hereto breaches any term or condition of this Agreement,
this Agreement may be terminated by the aggrieved party if such default is not cured
within a period of one hundred eighty (180) days after receipt of written notice of default
by the party allegedly in breach of its obligations hereunder. At the option of the aggrieved
party, if such default is not cured within the one hundred eighty (180) day period, this
Agreement shall immediately terminate without further notice, unless an extension is
mutually agreed and approved by both Town and District.
XI.
Entire Agreement
This Agreement represents the entire and integrated agreement between Town and
District and supersedes all prior negotiations, representations, and/or agreements, either
written or oral, including the Prior ILA. This Agreement may be amended only by written
instrument signed by both parties.
XII.
Venue
The laws of the State of Texas shall govern this Agreement and each of its terms and
provisions, including but not limited to the rights and duties of the parties hereto, and
exclusive venue shall be in Denton County, Texas.
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XIII.
Severability
In the event that any portion of this Agreement shall be found to be contrary to law, it is
the intent of the parties hereto that the remaining portions shall remain valid and in full
force and effect to the extent possible.
XIV.
Non -Waiver
All rights, remedies, and privileges permitted or available to either party under this
Agreement or at law or equity shall be cumulative and not alternative, and election of any
such right, remedy, or privilege shall not constitute a waiver or exclusive election of rights,
remedies or privileges with respect to any other permitted or available right, remedy or
privilege. Additionally, one instance of forbearance by either party in the enforcement of
any such right, remedy or privilege against the other party, shall not constitute a waiver
of such right, remedy or privilege by the forbearing party. A default by either party under
this Agreement shall not result in a forfeiture of any rights, remedies, or privileges under
this Agreement by such defaulting party.
XV.
ANNUAL DISTRICT FINANCIAL AUDIT
Town shall provide any documents requested by auditors of District no later than
November 30 of each year.
[The remainder of this page intentionally left blank.]
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ACKNOWLEDGEMENTS
STATE OF TEXAS §
COUNTY OF DENTON §
COUNTY OF TARRANT § I'
This instrument was acknowledged before me on the -44' day of
U�f , 2021 by Al I'M_ Fletiru , Mayor of the TOWN OF TROPHY
CLUB, TEXAS, a home rule municipal corpor-6tion, on behalf of such corporation
LETICIA VACEK MiaW
Notary ID # 128039020 Notar dblic in and for the Sta e of
9 My Commission Expires 4 Texas
y�oF�� July 06, 2025
STATE OF TEXAS §
COUNTY OF DENTON §
COUNTY OF TARRANT §
This instrument was acknowledg,.ed before me on the I �;J' day of
{.`1( ,,� j�s-� , 2021 by 0 c'O. Pb,f(V) , President of the TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1, a conservation and reclamation district of the
State of Texas, on behalf of said district.
.`"""',, LAURIE SLAGHT
:ss -VY PLO'
_2r" ':.i
:Notary Public, State of Texas
-m. ".rP; iF Comm. Expires 01-19-2024
'i,;rciF;‘''` Notary ID 12872053-4
.� )7 7 ,
otary Public in and ori the State of
Texas
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Signature Authority
The undersigned officer and/or agents of the parties hereto are the properly authorized
officials and have the necessary authority to execute this agreement on behalf of the
parties hereto and each party hereby certifies to the other that any necessary resolutions
extending such authority have been duly passed and are now in full force and effect.
A EXECUTED in duplicate originals. The effective date of this Agreement shall be
Aui(xf 2LI , 2021.
ATTEST:
By: B%%(
Name: ��M[ /� PfIC
Title: Town Secretary / RMC
TOWN OF TROPHX CL =� I EXAS
By: an
Name: . F }'(/
Title: Mayor
ikuqu t 2-I, 2021
ATTEST:.
By: L t�S�
Name: Kelly Castonguay
Title: Secretary/Treasurer
7TJ PHY CLUB MUNIC
"DISTRICT NO.1
By:
Name: Steve Flynn
Title: President
Date: August 16, 2021
AL UTILITY
a
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