HomeMy WebLinkAbout2023-0823 ILA for Administration of Fire Protection Services 2023INTERLOCAL COOPERATION AGREEMENT
FOR ADMINISTRATION OF FIRE PROTECTION SERVICES (2023)
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, District and Town are parties to the existing Interlocal Cooperation
Agreement for Administration of Fire Protection Services that expires on September 30th,
2023 (the "Prior ILA") which set forth certain terms and conditions of the parties relating
to Fire Protection Services (as hereinafter defined) to residents of District and Town,
including to residents of the Trophy Club Public Improvement District No. 1 (hereinafter
also referred to as the "PID"); and
WHEREAS, the PID is not located within the boundaries of the District and is not
a party to this Agreement; and
WHEREAS, Town, whose council also serves as the board of directors for the PID,
anticipates receiving payment, if any, from the PID to pay part of the Fire Protection
Services through the collection of special assessments levied under Texas Local Gov't
Code Ch. 372 (the "PID Act"); and
WHEREAS, the provision of Fire Protection Services is a governmental function
that serves and benefits the public health, safety, and welfare of Town, District, and the
general public, 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 Protection Services
pursuant to Section 49.351 of the Texas Water Code, and Town is individually authorized
to perform Fire Protection Services pursuant to its police powers and the parties desire
to enter into this Agreement regarding the performance of Fire Protection Services; 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
Page 1 of 13
WHEREAS, Town and District have determined it necessary and appropriate to
enter into this Agreement for the administration of Fire Protection Services, which
supersedes 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 and 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 remain in full force and effect for a period of one (1)
year from the Effective Date, and shall automatically renew each year thereafter for four
(4) additional one (1) year renewal periods, unless written notice of nonrenewal is given
no later than ninety (90) days prior to the expiration of the applicable one (1) year renewal
period, or unless terminated in accordance with Section X.
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, 2023.
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 an
automatic or mutual aid agreement to provide fire protection services and those
persons located within the fire district as designated by Denton County or Tarrant
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 Protection Services" 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, administration,
fire -fighting activities, "fire -fighting services" as defined in Texas Water Code Ch.
49, and all other related fire functions.
Page 2 of 13
E. "Maximum Annual Payment Amount" means the maximum total payment that
may be made by District to Town each year to pay District's proportionate share of
funding for the cost of Fire Protection Services in accordance with this Agreement
and the Act. The Maximum Annual Payment Amount shall be the amount of
revenues available to District from the levy of a fire tax without triggering the Voter
Approval Tax Rate. District shall not be contractually obligated to levy, or collect,
a tax to pay the Maximum Annual Payment Amount to Town in any fiscal year
beyond the then current fiscal year; however, District shall be contractually
obligated to fund its proportionate share of the cost of Fire Protection Services in
accordance with this Agreement and the Act, and in all cases, the maximum annual
payment obligation of District to Town under this Agreement shall be limited to the
final Approved Budget by the Board of Directors of District and the Town Council
of Town, or any amendment to the Approved Budget by the Board of Directors of
District and the Town Council of Town.
F. "Voter Approval Tax Rate" shall have the meaning set forth in Section
49.23602(a)(4) of the Texas Water Code.
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 Protection Services:
Town shall prepare a preliminary draft budget for Fire Protection Services
and furnish that draft budget to District on or before June 1st of each year. The
preliminary draft budget shall specify all projected revenues and expenses relating
to Fire Protection Services for the next fiscal year 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 Town on or before June 30th of each year.
iii. After receipt of preliminary appraised value information from Denton and
Tarrant Counties, 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 Counties, 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
Page 3 of 13
Protection Services.
v. Representatives of Town and District shall cooperate in good faith to revise
and finalize a preliminary draft budget for Fire Protection Services for subsequent
consideration by the governing bodies of Town and District to adopt the final
approved budget for Fire Protection Services (the "Approved Budget").
vi. The governing bodies of Town and District may, but shall not be obligated
to, meet before August 1St of each year (or such other date approved by the parties)
to discuss the preliminary draft budget.
vii. Each party shall adopt a fiscal year budget in accordance with their
respective statutory obligations. Notwithstanding Sections 3.1.B.ii. and 3.1.B.iv.,
the Approved Budget 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 that includes any costs
for which Town is responsible for payment under this Agreement.
viii. In order to facilitate the emergency services assessment for the PID
pursuant to the annual Service and Assessment Plan ("SAP"), District shall
provide information to Town concerning outstanding District debt, lease, and
reserves related to Fire Protection Services as reasonably requested by Town.
ix. The Parties agree that any amendments to the Approved Budget must be
made using the same process described herein, and no amendment to the
Approved Budget may be made unless each party's respective governing bodies
agree and approve such amendment.
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 District's share of funding costs during any fiscal year
exceed the Maximum Annual Payment Amount or the budgeted expenses approved
by District, unless approved in writing by District. Such funding shall be accomplished
in accordance with the following terms and conditions:
District shall continue to pay all debt service for debt previously incurred by
District for Fire Protection Services for as long as the debt remains outstanding.
ii. District shall fund 50% of all budgeted and amended budgeted costs of
personnel providing Fire Protection Services to Eligible Persons.
iii. Town shall fund the remaining 50% of all budgeted and amended
budgeted costs of personnel providing Fire Protection Services to Eligible
Persons. During the term of this Agreement, Town will not increase the number of
current personnel providing Fire Protection Services to Eligible Persons, unless
otherwise required by law, and District shall not be responsible for Town's
Page 4 of 13
increase, if any, in the number of current personnel providing Fire Protection
Services to Eligible Persons.
iv. District shall fund 100% of budgeted and amended budgeted costs of
services and supplies associated with Fire Protection Services.
v. In recognition that Fire Protection Services shall be provided to persons and
properties located within Town and the PID, but not within District, the Town, acting
through the PID, may levy and collect an annual assessment on and collect from
the owners of real property and taxable improvements thereon located within the
PID, but not within District, in accordance with the PID Act, as amended. Such
assessment may be considered for adoption by Town Council, after
recommendation by the PID, through the approval of the SAP for the PID. If the
PID fails to levy an annual assessment, or fails to levy an annual assessment that
would produce revenues equal to the revenues that would be generated based on
the fire tax rate of District, the Parties agree that District is not obligated to provide
Fire Protection Services within the PID and the Parties shall prepare a new annual
budget for funding of Fire Protection Services in accordance with the provisions in
Section 3.1.A. If the annual assessment collected by the PID is less than amount
included in the Approved Budget, Town agrees to work in good faith with the PID
to collect unpaid annual assessments.
vi. Town shall pay for all Town imposed expenditures associated with Fire
Protection Services that are not part of the Approved Budget unless District pre -
approves the expenditure in writing. By way of example, if Town approves salary
increases or purchases equipment for Fire Protection Services (without District
approval) outside of the Approved Budget, Town shall be solely responsible for
funding such costs.
vii. District agrees in good faith to communicate to Town the intent to use
District's operating reserve funds not part of the Approved Budget that would
reduce the District's operating reserve fund balance below twenty-five percent
(25%).
viii. District agrees to communicate the intent to create new debt related to Fire
Protection Services allowing Town the option to fund the expenditure prior to the
debt being issued.
ix. By the 10th of each month the Town shall provide to District a report on the
Approved Budget that compares budgeted costs to actual costs and explains the
reasons for any differences between budgeted and actual costs.
C. Payment: Payments from 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 assessments actually collected for Fire Protection
Services, beginning on October 1st and concluding on September 30th of each
Page 5 of 13
fiscal year of the term of this Agreement. Payments will become past due fifteen
(15) business days after the invoice is received by the District.
It is the intent of District that the sole source of revenues for payment of District's
funding obligations under this Agreement be District's fire tax; however, in the
event the fire tax received by District is insufficient to pay District's funding
obligations under this Agreement, District may use other available funding sources.
Under no circumstances shall 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 Approved Budget for Fire Protection Services approved by Board of
Directors of District, except as otherwise provided in this Agreement.
3.2 Audit, Revenues and Expenses:
A. Annual Audit and Revenues: Town shall conduct an annual audit at its sole cost
by an independent auditor that identifies the actual fiscal year expenses and
revenues for Fire Protection Services. The annual audit shall be furnished to
District on or prior to May 1st of the subsequent year. By May 1st of each year,
Town shall also identify and furnish to District a listing of all revenues, if any, related
to Fire Protection Services (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 Protection Services funded by District (in whole or in part) within
fifteen (15) days after receipt of a request from District.
C. Reconciliation Payment: Overpayment. Any overpayment by District for a fiscal
year period as informed by the annual audit conducted pursuant to Section 3.2 (A)
and other documentation shall be reimbursed by Town within thirty (30) days after
receipt of a written invoice for payment from District.
Underpayment. Any underpayment by District for a fiscal year period as informed
by the annual audit conducted pursuant to Section 3.2 (A) and other
documentation shall be paid to Town within thirty (30) days after receipt of a written
invoice for payment from Town.
Iv
Operational Obligations and Rights of the Parties
4.1 District and Town 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
Page 6 of 13
Fire Protection Services to Eligible Persons, including but not limited to assuming
full responsibility for the operational control and management of Fire Protection
Services. Town's responsibilities hereunder shall include, without limitation, the
control, and management of all personnel as more specifically set forth in Section
VI 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 Protection
Services under this Agreement.
E. Town shall have the authority to enter into automatic and mutual aid agreements
on behalf of District and Town to provide Fire Protection Services as deemed
appropriate by Town.
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.
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
Page 7 of 13
remain the property of Town. This Agreement does not affect right, title, or interest to such
property.
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
Protection Services and Emergency Medical Services (hereinafter collectively referred to
as "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 this Agreement. 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 Protection Services as provided in Section III above in exchange for Town's
agreement to oversee and manage Fire Protection Services for Eligible Persons as
provided in Section IV above, shall serve as sufficient consideration under this
Agreement. In accordance with the Act, 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: Without waiving any governmental immunity of
Town, Town shall be responsible for its sole negligence and 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
Page 8 of 13
or leased assets.
8.2 District Negligence/Insurance: Without waiving any governmental immunity of
District, District shall be responsible for its sole negligence and 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.
8.3 Texas Government Code Section 791.006: The assignment of liability under this
Agreement is made pursuant to Section 791.006 of the Texas Government Code, as
amended, and the assignment of liability under this Agreement is intended to be different
than liability otherwise assigned under Section 791.006(a) of the Texas Government
Code.
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 and 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.
Page 9 of 13
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,
without regard for conflict of laws principles, and exclusive venue shall be in state district
court in Denton County, Texas.
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 30th of each year.
XVI.
Annual Appropriations
Under no circumstances shall the obligations of the parties hereunder be deemed
or construed to create any debt within the meaning of any constitutional or statutory
provision, or to unlawfully approve the expenditure of funding beyond the applicable fiscal
year; provided, however, without abrogating any police or legislative powers of the
respective parties, the parties agree during the term of this Agreement to make a good
faith effort to appropriate funds necessary to pay for governmental functions and services
under this Agreement as authorized by Texas law.
Page 10 of 13
[The remainder of this page intentionally left blank.]
Page 11 of 13
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.
EXECUTED in duplicate originals. The effective date of this Agreement shall be
2023.
ATTEST:
By:
Name:
Title: Town Secretary / RMO
ATTEST:
By: 1
Name: Doug Harper
Title: Secretary/Treasurer
TOWN OF TROPHY CLUB, TEXAS
By:
Jeannette Tiffany
Title: Mayor
Date:
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 1
By: �.
Name: Kevin R. Carr
Title: Present
Date: �' 4.3/z3
Page 12 of 13
ACKNOWLEDGEMENTS
STATE OF TEXAS §
COUNTY OF DENTON §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the day of
, 2023 by Jeannette Tiffany, Mayor of the TOWN OF TROPHY CLUB,
TEXAS, a home rule municipal corporation, on behalf of such corporation
Notary Public in and for the State of
Texas
STATE OF TEXAS §
COUNTY OF DENTON §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the ' day of
;.,. i.. , 2023 by Kevin R. Carr, President of TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1, a conservation and reclamation district of the State of Texas,
on behalf of said district.
LAURIE SLAGHT
- Notary Public, State of Texas
_°"^ Comm. Expires 01-19-2024
y1fjt1.Notary ID 12872053-4
Irak- —
—
, 4/
Notary Public in and for the Std of
Texas
Page 13 of 13