R88-02B 12-28-87 t it .. n?z;^..--....�..P.__ _• —_..__, ..--_
RESOLUTION NUMBER R 88-2
A RESOLUTION OF THE, CITY COUNCIL OF THE CITY
OF FRIENDSWOOD , TEXAS , AUTHORIZING THE MAYOR
TO EXECUTE A CONTRACT AND AGREEMENT BY AND
BETWEEN THE CITY OF FRIENDSWOOD AND THE CITY
OF PEARLAND FOR THE PROVISION OF WATER AND
SEWER SERVICE .
BE IT RESOLVED by the City Council of the City of
Friendswood , Texas , that the Mayor be , and he is hereby
authorized to execute for and in behalf of the city, a Contract
and Agreement by and between the City of Pearland and City of
Friendswood relating to the furnishing of water and sanitary
sewer service in such cities . Said Agreement attached hereto as
Exhibit "A" .
PASSED , APPROVED AND ADOPTED THIS 18TH DAY OF JANUARY ,
1988 .
v<,
MAYOR ALPH L . LOWE
ATTEST:
DELORIS MCIWZI , CMC
CITY SECRET , •Y
DM/jt
EXHIBIT "A"
AGREEMENT
CITY OF PEARLAND, TEXAS
AND
CITY OF FRIENDSWOOD, TEXAS
WHEREAS , it is the desire of the City Council of the
Cities of Pearland and Friendswood, Texas , to give the residents
living within either of the Cities water and sewer service when and
where possible; and
WHEREAS, it is the desire of the two Cities to cooperate
in servicing certain parts of both Cities ; and
WHEREAS, it is not the desire of either City to enter
into this Agreement for the purpose of profiting from same ; and
WHEREAS , the intention of each City is to provide water
and sewer service for all residents within its limits as soon as prac-
ticable; and
WHEREAS, there are certain areas of Friendswood which can
now best be serviced by Pearland, and certain areas of Pearland which
can best be serviced by Friendswood; and
WHEREAS , it is in the best interest of both Cities to
encourage subdivisions and orderly growth;
THEREFORE, for the reasons stated above , this Agreement
is made on this the 18th day of Janua.ny , A. D., 1988
by and between the City of Pearland and the City of Friendswood.
I. TERMS OF AGREEMENT:
This Agreement shall be effective for a term of one (1)
year from the date hereof, and may be renewed annually by the approval
of both Councils .
I I . AREAS SERVED:
If either City has a subdivision or area it decides can
best be served with water and sewer by the other City, it shall notify
the other City, stating that it has an area or subdivision which needs
such service and which cannot be served at such time by the City in
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which it lies. Such notice should contain a statement that the City
Engineer has checked the plans and specifications of the subdivider or
other person putting in water lines and sewer lines and that the same
meet with all the requirements by the City Ordinances and Engineer's
requests and that such lines will be inspected by the Engineer as they
are laid. The City-which -will provide- the service shall have the
right to have its Engineer check the plans and specifications of the
subdivider or other person or firm putting in such lines. If the City
which will provde the service deems that it has the capacity to pro-
vide such service it shall notify the other and such subdivision or
area will then come under the terms and provisions of this Agreement.
Any extensions of the lines from the original subdivision or area to
another subdivision or area will have to be approved just as would a
new subdivision or area.
III. OWNERSHIP OF METERS AND LINES:
The City, in which any subdivision or area to be served
lies , shall have the lines deeded to it by the subdivider or other
person or firm putting same in. Each City shall install the water
meters within its own boundaries and shall charge its regular tap fee
for such connection. Such City shall also charge and collect its
regular tap fee. Before either City will provide service to the
other, the lines to be served must have been deeded to the City. In
this connection, it is agreed that Pearland will not own any lines or
meters within Friendswood, and vice-versa. All maintenance of lines
or meters will be done by the City within which such lines and meters
lie.
IV. READING METERS, BILLING, AND RATES:
The City providing water service shall read the custom-
ers' meter and bill the customers in the same manner and at the same
rate as other customers being provided like service. Customers
charges for sanitary sewer service shall be determined in the same
manner.
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V. AREA TO BE IN, CITY:
Neither City will provide service under this Agreement to
subdivisions or areas unless such subdivisions or areas are properly
annexed into the other City.
VI. TAKE-OVER BY CITY BEING SERVED:
At any time that one of the Cities desires to furnish
water and sewer service to a subdivision or area within its own
limits , which subdivision or area is being served by the other City, a
thirty (30) day notice shall be given by the City being served to the
serving City. After receiving such notice , the serving City shall
send final bills and take other appropriate action to consumate the
take-over by the other City. It is understood that the water and
sewer service must be taken over together and that neither water or
sewer service can be taken over singularly.
VII. DEBT SERVICE REQUIREMENTS:
Both the City of Pearland. and the City of Friendswood
have financed Water and Sewer improvements through the issuance of
Bonds and Warrants; the City of Pearland has issued General Obligation
Bonds and Warrants; the City of Friendswood has issued- General Obliga-
tion Bonds and Revenue Bonds.
For the purpose of this Agreement the total Interest and
Sinking Fund requirements for the City of Friendswood were divided by
the Estimated tax yield to derive the percentage used in "Example 2."
Pearland has issued Bonds and Warrants for purposes other than Water
and Sewer Improvements. The yearly Interest and Sinking Fund require-
ments for the other purposes were deducted from the total requirements
and remainder for Water and Sewer was divided by Pearland's estimated
tax yield to derive the percentage used in "Example 1 ."
VIII . AD VALOREM TAXES:
Each City shall levy its regular ad valorem tax on the
value of property and improvements in any subdivision or area being
served under this Agreement. Subject to an annual review, the follow-
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ing payments are to be made to-wit :
(1) Friendswood shall pay to Pearland from Friendswood's
general revenue , an amount equal to 24.88% of the ad valorem taxes
collected from property being served by Pearland.
(2) Pearland shall pay to Friendswood from Pearland's
general revenue, ari amount equal to 17:89% of the ad-valorem taxes-
collected from property being served by Friendswood.
Those payments shall be made for the purpose of making
this Agreement fair and equitable to all concerned. It is realized
that a taxpayer within a City who is paying taxes but who does not
have water and sewer service would have a legitimate complaint if res-
idents of the other City were receiving water and sewer service but
not paying any taxes to the service City.
These amounts shall be paid on or before August 1st of
each year and shall be payable on all property in the area being
served by water and/or sewer service .
IX. ANNEXED BOUNDARY LINES:
This Agreement shall have absolutely no effect on either
City's annexed boundary lines. The subject of annexation is in no way
involved in this Agreement .
X. PRECEDENT:
This Agreement is intended only for the situation as
exists between Pearland and Friendswood. It is not the intention of
either City to hereby set a precedent for any agreements between one
of these Cities and other Cities not a part hereto.
XI . INSPECTION OF BOOKS:
Each City shall have the right to have its auditors
inspect the books and tax records of the other City as concerns taxes
collected in areas being provided water and sewer service under this
Agreement.
XII. AGREEMENT TO BE SPREAD UPON MINUTES OF COUNCILS:
It is ordered by the City Council of the City of
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C 1
Pearland, Texas, and by the city Council of the City of Friendswood,
Texas, that this Agreement be spread upon the Minutes of each Council
on the date upon which this Agreement is approved by such City.
/� EXECUTED IN DUPLICATE ORIGINALS THIS THE GU day
of pfsc.P,t , A. D. , 1911 .
CITY OF PEARLAND, TEXAS
GYy✓ / <
Tom Reid, Mayor
ATTEST:
X;L/1-....C...i
City cretary DATE: /d - � 9- d�/
7
APPROVED:
1
d /661.201
Ci y t ey
CITY OF FRIENDSWOOD, TEXAS
(7e9 (7e)Ctotes.A........
Ralph owe, Mayor
ATT T• - ;-�''1,,
Cit Secretary ;
DATE: /44( "
APPROVED:
City Attorney
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EXAMPLE
EXAMPLE: On a house and lot market valued at $20,000.00
(1) ____Pear1 and' s assessed value of the house and lot would be
$20 , 000.00. At the current rate of $0.735 per $100.00 of
assessed value, this would equal $147.00. Of this amount 23.53%
($34.59) would apply to bonded indebtedness.
(2) Friendswood' s assessed value of the house and lot would be
$20,000.00. At the current rate of $0.695 per $100.00 of
assessed value, this would equal $139.00. Of this amount 18.92%
($26.30) would apply to bonded indebtedness .
(3) RESULT: Pearland pays to Friendswood an amount equal to 17.89%
of the ad valorem taxes collected on homes receiving water and
sewer service from Friendswood.
(4) RESULT: Friendswood pays to Pearland an amount equal to 24.88%
of the ad valorem taxes collected on homes receiving water and
sewer service from Pearland.
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