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R87-03 B 03-02-1987 RESOLUTION NO. R87-3 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 2ND DAY OF March, A.D. , 1987. 2-cT& MAYO RALPH L. OWE CITY OF FRIENDSWOOD 4OISM2 , T: Jr- C CITY SECRETARY 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 twoCities to cooperate in servicing certain parts of both Cities ; arid 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 9th day of October , A. D., 1986 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 1 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. 2 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- 3 ry • 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 , an amount equal to 19 . 28% 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 4 rl fill 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 day of , A. D . , 19 er/ . CITY OF PEARLA , TEXAS � dN2 Tom eid, Mayor ATTEST: .1.1.- /42,---a-,--' City S retary DATE : of - g r i 7 APPROVED : r ity ttorney CITY OF FRIENDSWOOD , TEXAS (--- c%'\.7rf97-c--e•-.)1/4- Ral h Lowe , Mayor ATTEST: C t Secretary/ DATE: /1 JtJI!h 4, /,7 APPROVED : City Attorney 5 • EXAMPLE EXAMPLE: On a house and lot market valued at $20, 000.00 (1) Pearland' s assessed value of the house and lot would be $20,000.00. At the current rate of $0.70 per $100.00 of assessed value, this would equal $140.00. Of this amount 24.70% ($34.58) 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 amount19 . 42% ($26 . 99) would apply to bonded indebtedness . (3) RESULT: Pearland pays to Friendswood an amount equal to 19 . 28% 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.