Board of Directors Meeting Agenda


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Meeting Date: 12/06/2017  

SUBJECT MATTER:
Receive, consider and act upon renewal of the Memorandum of Understanding with the City of Shenandoah for shared area services (C-2017-0557);
FISCAL IMPACT:
There will be no new impact to the 2018 budget as a result of this Memorandum of Understanding. The annual fiscal impact related to the Memorandum of Understanding is estimated to be less than $50,000 per year for Streetscape Maintenance. The cost associated for Covenant Administration is not able to be calculated but believed to be minimal and included in the regular operations of the Township Covenant Administration Department. 
BACKGROUND:
In 2009, The Woodlands Township Board of Directors entered into a one year Memorandum of Understanding (MOU) with the City of Shenandoah effective January 1, 2010. In November 2010, the MOU was extended for an additional year, and in 2011 the Board approved and agreement that would begin January 1, 2012 and auto-renew for up to five years.

The MOU was developed to address the number of properties located inside the boundaries of the City of Shenandoah that are encumbered with Community Association Covenants. Because the properties are within the city limits of Shenandoah, they could not be included within the boundaries of The Woodlands Township. When the Transition Agreement between the Community Associations and the Township was approved in 2008, the Township understood that an agreement would need to be developed with the City when covenant responsibilities were assumed by the Township and the community association assessments were replaced with a property tax levy. Even though covenants remained in place on the properties after assumption by the Township, the Township cannot levy a property tax to pay for services for properties located in the city limits or the extraterritorial jurisdiction of the City. The area within the city limits that is encumbered with Woodlands covenants is referred to as the "shared area". 

The Woodlands Township and the City of Shenandoah (City) entered in the Memorandum of Understanding (MOU) to set forth the required division of responsibilities for the provision of shared governmental services in order to most efficiently utilize the assets and resources of each entity and to assure the residents and property owners within the shared area subject to the MOU of the continued and uninterrupted delivery of services. The MOU expires on December 31, 2017 and staff recommends renewal of the MOU (Attachment A). 

A portion of the land within the corporate limits or the extraterritorial jurisdiction (ETJ) of the City are subject to Woodlands Covenants (shared area)  which require the Township, as successor entity to the Associations, to administer and enforce the Covenants, Restrictions, Easements, Charges and Liens established therein.  Additionally, the Township provides certain Streetscape Maintenance Services to a portion of the shared area along Research Forest Drive and Grogan's Mill Road. 

The MOU establishes the Township's ability to continue to provide covenant administration and streetscape services, while the City assumes the responsibility for street lighting services, irrigation water and garbage and solid waste disposal services. 

As it has been five years since the MOU was adopted, the Board may consider a one year renewal of the MOU at this time and direct the President/General Manager to review the MOU with the City to determine if any modifications are necessary. 
RECOMMENDATION:
Approve the renewal of the Memorandum of Understanding with the City of Shenandoah for a one year term and authorize the President/General Manager to execute the renewal agreement as approved to form by the Township Attorney. 
Attachments
Attachment A - MOU City of Shenandoah


    

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