Res 129-2002 12/17/2002RESOLUTION NO. 1 D C1- IM)J
RESOLUTION APPROVING A FIFTH GENERATION NON -
ANNEXATION AGREEMENT WITH SAINT - GOBAIN VETROTEX
CORPORATION, GUARANTEEING ITS IMMUNITY FROM
ANNEXATION FOR A PERIOD OF SEVEN YEARS BEGINNING
JANUARY 1, 2003; FINDING AND DETERMINING THAT THE MEETING
AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Wichita Falls entered into a fourth generation
non - annexation agreement with Saint - Gobain Vetrotex Corporation (formerly Vetrotex
Certainteed), for a period of five years from January 1, 1998; and
WHEREAS, the City of Wichita Falls desires to enter into a fifth generation non -
annexation agreement with Saint - Gobain Vetrotex Corporation for a period of seven
years from January 1, 2003;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. The City Manager is hereby authorized to enter into a fifth
generation non - annexation agreement with Saint - Gobain Vetrotex Corporation a copy of
which is attached hereto.
SECTION 2. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 17th day of December 2002.
ATTEST:
City Clerk
. •
STATE OF TEXAS §
COUNTY OF WICHITA §
NON - ANNEXATION CONTRACT WITH
SAINT - GOBAIN VETROTEX CORPORATION
This contract, made and entered into by and between the City of Wichita Falls,
Texas, a municipal corporation, hereinafter called "City," and Saint - Gobain Vetrotex
America, Inc. hereinafter called " Vetrotex,"
WIT NESS ETH:
WHEREAS, Vetrotex is the owner of a certain tract of land, (hereinafter called
"Subject Property ") located in Wichita County, Texas, said land being more fully
described in Exhibit A, which is attached hereto and incorporated herein, and which
includes land located within the City's extraterritorial jurisdiction.
NOW, THEREFORE, for and in consideration of the mutual covenants
hereinafter contained to be performed by the parties hereto, City and Vetrotex do
hereby agree as follows:
1. City guarantees the continuation of the extraterritorial status of Subject
Property, and its immunity from annexation by the City, for a period of seven (7) years
from January 1, 2003.
2. City will furnish water and sewer service to Vetrotex for that portion of the
Subject Property described in Exhibit A at rates equal to 105% of the rates charged to
users located within the City limits throughout the term of this contract. These services
shall be subject to the ordinances of the City presently existing and as may be
hereinafter amended.
3. Vetrotex shall dispose of all the municipal and industrial solid waste (but not
hazardous waste) that is being removed from the Subject Property for disposal at a
landfill ( "the landfill ") owned and operated by the City. Vetrotex shall use no other landfill
for the disposal of its municipal and industrial solid waste during the term of this
contract, but Vetrotex is free to reuse, recycle or reclaim its waste.
Vetrotex shall pay the City a disposal rate of Twenty Three ($23.00) Dollars per
ton for all waste deposited in the City landfill. The City shall have the right to request
from Vetrotex at any time during the term of this contact an adjustment in the disposal
rate, and the rate may be adjusted in the event of a material change in the operating
costs of the City due to or as a direct result of revised federal or state laws, ad valorem
taxes, governmental fees and regulations or unforeseen increases in fuel costs. The
City shall have the right to petition Vetrotex for these unusual cost adjustments and
shall provide Vetrotex with documents and records in any reasonable form and
sufficient detail to reasonably establish the necessity of any requested rate adjustment
at the time of the request.
4. City shall furnish fire protection services to Vetrotex on Subject Property
throughout the term of this contract.
5. Vetrotex shall not allow the sale of fireworks on Subject Property.
6. Vetrotex shall pay to the City each year during the seven (7) years of this
contract, as payment in lieu of all taxes, an amount in cash, or cash equivalents
acceptable to City, equal to a certain percentage, as specified below, of the amount that
its normal City taxes would have been for that year had it been within the City limits.
The appraised value of the land, buildings and other improvements, machinery,
equipment, inventory, and other personal property shall be determined by the Wichita
County Appraisal District each year as set forth in the TEXAS PROPERTY TAX CODE, as
amended. Each annual payment shall be billed by the City and be due and payable
upon receipt. In computing the amount payable to the City each year during this
contract, the sum of the two following amounts shall be applied:
a) Eighty -two and one -half (82.5 %) percent of the then - current
property tax rate as established by the City Council shall be
applied to the appraised value of land, buildings and
improvements, machinery, equipment, inventory, and other
personal property for the incremental amount of the total
appraised value, up to but not exceeding $160,000,000.
b) Twenty -five (25 %) percent of the then - current property tax rate
as established by the City Council shall be applied to the
appraised value of land, buildings and improvements,
machinery, equipment, inventory, and other personal property
for the incremental amount of the total appraised value that
exceeds $160,000,000.
7. In the event Vetrotex should breach any of the provisions of this contract, and
fails to remedy such breach within thirty (30) days after having been notified in writing
by City to do so, City shall then have the right to terminate this contract, and to proceed
to annex Subject Property, provided that City shall not have the right to so terminate this
contract if Vetrotex has in good faith disputed any alleged breach.
8. The City shall initiate proceedings to annex Subject Property into the City
limits early enough to be able to complete such proceedings by December 31, 2009,
and Subject Property shall be included on the tax rolls of the City on January 1, 2010.
City shall notify Vetrotex in writing thirty (30) days prior to initiating such proceedings.
9. This contract shall be effective January 1, 2003.
10. Nothing in this contract shall limit or in any way restrict Vetrotex's ability to
appeal any appraisal made by the Wichita County Appraisal District. This contract shall
inure to the benefit of Vetrotex's assigns or successors in interest to Subject Property.
11. This contract repeals and replaces any previous non - annexation agreements
between the parties.
12. City shall indemnify, defend and hold harmless Vetrotex, its affiliates,
officers, directors and employees and agents of each of them ( "indemnified parties "), in
connection with losses, damages, fines, penalties and expenses (including reasonable
attorneys' fees) incurred by such indemnified parties and arising out of or incident to the
performance by City of its obligations under Paragraph 3 of this Agreement.
13. City represents and warrants that it currently has and will continue to
maintain all the necessary permits required to own, operate and maintain the City
landfill in which Vetrotex's municipal and industrial solid waste is being disposed.
5
IN WITNESS WHEREOF, the parties hereto have caused this contract to be
executed by their duly authorized officers on this \�)day
ATTEST:
City Clerk
APPROVED AS TO FORM:
A; ��
City Attorney
CITY Of. CHITA FALLS
By
,,Jap6es Berzina
-City Manager
SAINT- OBAIN VETROTEX AMERICA, INC.
By:
Title: vl�c C
ATTEST:
at L t 'L
Exhibit A
Lot 1 of Certain -Teed Products Addition to Wichita Falls, Texas, according to the plat of
said addition recorded in Volume 22, Pages 21 -22 of the Plat Records of Wichita
County, Texas.