R93-18 04-19-93RESOLIFEION NO, 93-18
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF FRIENDSWOC~, TEXAS, A~EHO~I~G'
MAYOR TO R~RCIPEE A CONTHACT AND A~R~me~T BY
AND BEYWEEN THE CIT~' OF FRIEND8~OO~ AND
CITY OF ~ FOR ~tE PPaVISIC~' OF WATE~
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NOW, THKrKw(3~E], BE IY ~ESOLVE~ BY ~tE. CITY OaDNC//~ OF' ~HE.
CITY OF F~/END~0~ that the Mayor be, and he is hereby
authori. zed to execute for
Contract and Agreement by
Friendswood and the City
and ~n bebal~ of the City, a
and between the. City of
of Pearland relating to the
furnishing of water and sanitary sewer' service in such
cities, Said Agreement attached hereto as E~dxibit "A"
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PASSED, APPHOVE~AN~~BY~"ClT~'CO~NCIL. OFTBE'C3A~
OF FRIENDSWO0~-, TEXAS, this the 19thday- of April, 1993.
1 Newman
City of Friendswood
ATTEST:
City Secretary
it/R93-18
EXHIDIT "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 be best 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 19th day of April , A. D., 1993,
by and between the Cities of Pearland and 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 annuallyby the approval
of both Councils.
II.
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
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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 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 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 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 subdi-
vision 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
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rate as other customers being provided like service. Customers'
charges for sanitary sewer service shall be determined in the
same manner.
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
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 Pearlandhas 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
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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
Water and Sewer Bond issues was divided by the Estimated tax
yield to derive the percentage used in "Example 2".
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
following payments are to be made, to-wit:
(1) Friendswood shall pay to Pearland from Friendswood's
general revenue, an amount equal to 18.32% 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 12.73% 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 com-
plaint if residents of the other City were receiving water and
sewer service but not paying taxes to the service City.
These amounts shall be paid on or before August I of each
year and shall be payable on all property in the area being
served. bywater and/or sewer service.
IX.
ANNEXED BOUNDARY LINES
This Agreement shall have absolutely no effect on either
Cityws annexed boundary lines. The subject of annexation is in
no way involved in this Agreement.
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.
XlI.
MAINTENANCE OF AGREEMENT
It is ordered by the City Council of the City of Pearland,
Texas, and by the City Council of the City of Friendswood, Texas,
that the caption of the Resolution adopting this Agreement be
spread upon the Minutes of each Council on the date upon which
this Agreement is approved by such City and that the City Secre-
tary of each City maintain an Original of this Agreement in his
or her office during the term of this Agreement.
EXECUTED IN DUPLICATE ORIGINALS this the
day of
, A. D., 1993.
P , City Manager
ATTEST:
Pat Jone~,~i~y Secretary
Date: ~ ~o~ ~ - ~
APPROVED AS TO FORM:
Lester Rorick, City Attorney
ATTEST:
Delo~is McKenzi~, City Secretary
Date:
CITY OF FRIENDSWOOD, TEXAS
APPROVED AS TO FORM:
J~~nOls~n,l~City Attorney
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EXAMPLE
Example: On a house and lot market valued at $20,000.00
(i)
Pearland's assessed value of the house and lot would be
$20,000. At the current rate of $0,797 per $100.00 of
assessed value, this would equal $159.40. Of this amount
15.24% ($24.29) 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 S0,663 per $100.00 of
assessed value, this would equal $132.60. Of this amount
15.30% ($20.29) would apply to bonded indebtedness.
(3)
RESULT: Pearland pays to Friendswood an amount equal to
12.73% 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
18.32% of the ad valorem taxes collected on homes receiving
water and sewer service from Pearland.
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