City Council

Agenda Request

Agenda Of:

03-23-10

Agenda Request No:

ii-a

Initiated By:

SuEllen Staggs, Director of Utilities

Responsible Department:

Intergovernmental relations

Presented By:

Dale Rudick

Department Head:

Dale Rudick, Direcotr of Intergovernmental Relations

 

 

Additional Department. Head (s):

SuEllen Staggs, Director of Utilities

Subject / Proceeding:

Resolution Supporting Dissolution of WCID No. 1

Exhibits:

Resolution No. 10-08

Clearances

Approval

Legal:

Joe Morris, City Attorney

Executive Director:

n/a

Purchasing:

N/A

Asst. City Manager:

Karen Daly

 

Karen Glynn

Budget:

N/A

City Manager:

Allen Bogard/for AB

Budget

Expenditure Required:  $

N/A

Current Budget:  $

N/A

Additional Funding:  $

N/A

Recommended Action

Approve Resolution Supporting Dissolution of Fort Bend County Water Control and Improvement District No. 1

Executive Summary

 

Fort Bend County Water Control and Improvement District No. 1 (District) was created in the 1930’s to serve Imperial Sugar in a predominantly rural setting for flood control and water supply. As it stands, the District has the right and obligation to provide water, sewer and drainage services to an area that includes the City and small parts of several jurisdictions including the cities of Houston, Missouri City and Stafford, along with numerous overlapping municipal utility districts, levee improvement districts and the County’s Drainage District. While the District has no debt, it retains the legal ability to sell debt and levy a tax on the District’s residents.

 

Over the last several years, the City and the District have worked cooperatively to enter into an agreement whereby the City obtained all of the District’s assets with the exception of the water right on Oyster Creek.   Currently, the City provides water, sewer and drainage services to all Sugar Land residents and businesses within the District’s limits.  Areas outside of Sugar Land are also served these utilities by entities other than the District. 

 

The Board members of the District have been mindful and protective of the District’s most valuable asset, the water right. The Board has been uncertain about relinquishing the water right for fear it might revert to the State.   The only viable avenue open that would protect the water right is pursuing dissolution of the District through legislative action.  With this method, the City and the District can assure ownership of the water right is obtained by the City and conversely, the residents it was intended and is meant to supply.  

 

The current water supply contract between the City and the District also includes a transfer of funds for the cost of the water from the City’s Utility Fund into two separate accounts.  The amount of 85% of this Utility Fund expense is deposited into the CIP Fund specifically to fund drainage projects in which the Board chooses.  The remaining 15% goes to the District to fund their expenses such as the annual audit and board member per diems. The District has no outstanding debt nor any ongoing projects or expenditures besides its own internal expenses and upkeep.

 

Recognizing the vision and faithful service provided by the District over the years; the attached draft Resolution No. 10-08 states the City’s recommendation and support for the dissolution of the District provided that the City receives the District’s water rights and the City retains ownership of the District’s real property and facilities previously conveyed to the City by the District.  As stated, the recommended dissolution is an effort to eliminate unnecessary duplication of governmental administration, services, functions, and costs.   Should Council elect to approve the draft resolution, it will be incorporated into City Council’s proposed 2011 Legislative Agenda.  This would include working directly with the District Board members, legislators, our legislative consultant and others in preparation for the January 2011 Legislative Session.

 

The draft resolution has been reviewed and is recommended by the City Council’s Intergovernmental Relations Committee. 

 

Exhibits

 

RESOLUTION NO.  10-08

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, RECOMMENDING AND SUPPORTING DISSOLUTION OF FORT BEND COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 1 (DISTRICT) PROVIDED THAT THE CITY RECEIVES THE DISTRICT’S WATER RIGHTS AND RETAINS OWNERSHIP OF THE PROPERTY AND FACILITIES PREVIOUSLY CONVEYED BY THE DISTRICT TO THE CITY UPON DISSOLUTION.   

 

            WHEREAS, the District was created in 1932 by the Texas Legislature to provide water and drainage for approximately 15,995 acres of land located in Fort Bend County; and 

 

WHEREAS, for over 75 years the District through its elected Board of Directors has faithfully served the residents of the District and that the citizens of the City of Sugar Land are grateful for their dedicated service; and

 

WHEREAS, the District has provided drainage for property within the District and protected the property from flooding through the building of levees; and 

 

WHEREAS, the District has assured adequate water supplies through its water rights and reservoir system on Oyster Creek; and 

 

WHEREAS, as a result of the City’s incorporation and the City’s annexations, approximately 90% of the land located within the District’s boundaries now lies within the City’s corporate limits; and 

 

            WHEREAS, the City now provides all the water and drainage services to the residents and businesses located in that part of the District that lies within the City; and

 

            WHEREAS, by contract, the City has purchased from the District substantially all the raw water that the District owns under its adjudicated water rights; and

 

            WHEREAS, the District has conveyed to the City all its dams, facilities, improvements, easements and real property that are used to contain, control, or convey the District’s water; and

 

            WHEREAS, the District has taxing authority but has no outstanding bonded indebtedness financed through ad valorem taxes or any other substantial outstanding debts; and

 

WHEREAS, the City of Sugar Land’s City Council finds that: 

 

1.            All of  the District’s functions including drainage and water management are now being performed by the City;

 

2       The continued existence of the District results in unnecessary duplication of governmental administration, services, functions, and costs; and

 

3       The District has maintained a long-standing water right that has served the citizens of Sugar Land and legislative action is warranted and necessary to protect the citizens’ interest and need for the water right;  NOW, THEREFORE,

 

 

BE IT RESOLVED BY THE CITY COUNCIL

 OF THE CITY OF SUGAR LAND:  

 

Section 1.  That it recommends and supports the dissolution of the District through legislative action provided that the City receives the District’s water rights and the City retains ownership of the District’s real property and facilities previously conveyed by the District to the City.   

 

            APPROVED on ________________________, 2010.

 

 

 

____________________________________

 James A. Thompson, Mayor 

 

 

 

ATTEST:

 

 

 

_____________________________

Glenda Gundermann, City Secretary

 

Reviewed for Legal Compliance: