R92-05 02-10-92 RESOLUTION NO. R92-5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEAR-
LAND, TEXAS AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT
AND AGREEMENT BY AND BETWEEN THE CITY OF PEARLAND AND
THE CITY OF FRIENDSWOOD FOR THE PROVISION OF WATER AND
SEWER SERVICE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS:
Section One. That certain agreement by and between City of
Pearland and City of Friendswood relating to the furnishing of
water and sanitary sewer service, a facsimile of which is annexed
hereto, designated Exhibit "A" hereof and incorporated herein for
all purposes, is authorized and approved.
Section Two. The Mayor is hereby authorized to execute and
the City Secretary to attest the original and counterparts of the
annexed contract documents for and on behalf of the City.
PASSED, APPROVED and ADOPTED this /O day of
~~ , A.D., 1992.
Mayor
ATTE ST:
Pat Jones //
City Secretary
Lester Rorick
City Attorney
r
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
practicable; 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 of the best interest of both Cities to en-
courage subdivisions and orderly growth;
THEREFORE, for the reasons stated above, this Agreement is
made on this the r day of ' G 1-,4„, , A.D. , 1992,
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.
II. AREAS SERVED:
by the City in which it lies . Such notice should contain a
statement that the City Engineer has checked the plans and speci-
fications of the subdivider or other person putting in water
lines and sewer lines and that the same meet with all the re-
quirements by the City ordinances and Engineer' s request 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 provide the service deems that it has the capaci-
ty to provide 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 Pear-
land 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 customers'
meter and bill the customers in the same manner and at the same
rate as other customers being provided like service. Customers'
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 consummate 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 Obligation Bonds and Revenue Bonds.
The City of Pearland has issued Bonds and Warrants for
purposes other than Water and Sewer Improvements. The yearly
Interest and Sinking Fund requirements 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" .
The City of Friendswood combined all its Bond issues into
one refunding issue in August, 1986 . The total principal on
Water and Sewer Bond issues refunded was divided by the total
principal amount of all bond issues refunded to arrive at the
percent of Water and Sewer Bond issues refunded. The current
year Bond issue payment was multiplied by the percent of Water
and Sewer Bond issues refunded to arrive at the total Interest
and Sinking Fund requirements for Water and Sewer Bond issues.
The computed total of Interest and Sinking Fund requirements for
value of property and improvements in any subdivision or area
being served under this Agreement. Subject to an annual review,
the following payments are to be made, to-wit:
(1) Friendswood shall pay to Pearland from Friendswood' s
general revenue, an amount equal to 18 . 45% 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 14. 24% 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 real-
ized 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 residents 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:
the date upon which this Agreement is approved by such City.
EXECUTED IN DUPLICATE ORIGINALS THIS THE /O day of
, A.D. , 1992.
0;'1",;://///e7
.V. Co i er
Mayor
ATTEST:
—4 ;?,t77
Pat Jones
City Secre ary
DATE:
APPR V ("ORM:
Lester Rorick
City Attorney
CITY OF FRIENDSWOOD, TEXAS
0aul Schrader
Mayor
ATTE T:
De oris A c er
City Secretary
DATE: oC- 9,
APPROVED AS TO FORM:
hn Olson
City Attorney
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 . 800 per $100 . 00 of
assessed value, this would equal $160 . 00 . Of this amount
16 . 03% ($25 . 65) 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
16.39% ($22. 78) would apply to bonded indebtedness.
(3 ) RESULT: Pearland pays to Friendswood an amount equal to
14. 24% 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
18 .45% of the ad valorem taxes collected on homes receiving