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Ordinance No. 4,30651114 -2 ORDINANCE N0. 4306 AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO ALLOCATION AGREEMENTS WITH SAN JACINTO PLACE MUNICIPAL UTILITY DISTRICT NO. 1 AND SAN JACINTO PLACE MUNICIPAL UTILITY DISTRICT NO. 2; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the Mayor and City Clerk of the City of Baytown to execute and attest to Allocation Agreements with San Jacinto Place Municipal Utility District No. 1 and San Jacinto Place Municipal Utility District No. Z. Copies of said agreements are attached hereto, marked Exhibits "A" and "B," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown, this the 14th day of November, 1985. ATTEST: �e LEEN P. HALL, ity C erk APPROVED: aRANDALL ONG , y Attorney 51114 -2a EXHIBIT "A" 51114 -2b ALLOCATION AGREEMENT BETWEEN CITY OF BAYTOWN, TEXAS AND SAN JACINTO PLACE MUNICIPAL UTILITY DISTRICT NO. I THE STATE OF TEXAS § § COUNTY OF HARRIS § This Agreement made and entered into on the date hereinafter set forth by and between the CITY OF BAYTOWN, TEXAS, a municipal corporation and home -rule city which is principally situated and has its City Hall in Harris County, Texas (the "City ") , and San Jacinto Place Municipal Utility District No. 1 Harris County, Texas, a body politic and corporate and governmental agency of the State of Texas, organized under the provisions of Article XVI, Section 59 of the Texas Constitution and Chapter 54, Texas Water Code (the "District "). nILIr-.rmnr r WHEREAS, the City consented to creation of the District pursuant to Resolution No 824 , on January 13, , 1983 AND WHEREAS, the consent granted pursuant to Resolution No. 824 was conditioned upon, among other provisions, the execution by the City and the District of this Agreement; AND WHEREAS, the City and the District desire to enter into this Agreement to provide a method by which the City may annex the territory within the District and the District shall continue to exist to repay the obligations of the District incurred to provide necessary water, sewer and drainage facilities for lands within the district; NOW THEREFORE, for and in consideration of the premises and the mutual agreements herein set forth, the City and the District do hereby mutually agree as follows: 51114 -2c ARTICLE I CITY ANNEXATION The City and the District understand and agree that the City shall have the right to annex all of the territory within the District and dissolve the District until such time as the District issues obligations to finance the water, sewer and drainage facilities. The City and the District hereby agree that the City may annex all of the territory within the District at the earlier of such time as at least 90% of the facilities for which District bonds have been authorized are installed, or five years after the date of issuance of any obligations to finance the facilities. The District's engineer shall certify to the City in writing that completion of 90% of the facilities has occurred. The City and the District agree that the District shall continue to exist following the annexation of all territory within the District by the City for the purposes of repaying the obligations of the District and maintaining and operating the water, sewer and drainage facilities. The District shall own the system composed of the water, sewer and drainage facilities installed by it. The City shall not be required to assume the outstanding obligations of the District upon annexation. Upon the repayment of all of its obligations issued to finance the facilities, the District and the City shall take such steps as are necessary to dissolve the District. ARTICLE II DISTRICT REVENUES Following annexation of all the territory within the District by the City, the District shall no longer levy annual ad valorem taxes to repay its outstanding indebtedness, and shall thereafter repay its obligations only from revenues derived from the water, sewer and drainage facilities. The District shall establish rates sufficient to repay its obligations, and sufficient to maintain and operate the District. 51114 -2d ARTICLE III GOVERNMENTAL SERVICES Following annexation by the City of all territory within the District, the City shall have all governmental powers within such territory; provided, however, the District shall have those powers necessary to maintain its existence, maintain and operate the water, sewer and drainage facilities and to repay its obligations. The District intends to and shall enter into a contract with Baytown Area Water Authority for the purchase of treated water. Pursuant to this contract, the District shall be required to obtain the approval of the City Council of the City of Baytown and Baytown Area Water Authority prior to providing water service to lands outside the boundaries of the District. The District agrees that no sewer service shall be provided to lands outside the boundaries of the District without the prior approval of the City Council of the City of Baytown. The District agrees that it shall not construct sewage treatment plant facilities without the prior approval of the City Council of the City of Baytown. ARTICLE IV MISCELLANEOUS 4.1. Assignability. This Agreement shall bind and benefit the respective parties and their legal successors and shall not be assignable, in whole or in part, by either party without first obtaining written consent of the other party. 4.2. Regulatory Agencies. This Agreement shall be subject to all present and future valid laws, orders, rules and regulations of the United States of America, the State of Texas, and of any regulatory body other than the parties hereto. 4.3. No Additional Waiver Implied. The failure of any party hereto to insist, in any one or more instances upon performance of any of the terms, covenants or conditions of this Agreement, shall not be construed as a waiver or relinquishment 51114 -2e of the future performance of any such term, covenant or condition by any other party hereto, but the obligation of such other party with respect to such future performance shall continue in full force and effect. 4.4. Modification. Except as otherwise provided herein, this Agreement shall be subject to change or modification only with the written consent of the parties hereto. 4.5. Parties in Interest.. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third party. The City shall never be subject to any liability for damages to any customer of the District for any failure of the District to perform its obligations under this Agreement. 4.6. Severabilit . The provisions of this Agreement are severable, and if any provision or part of this Agreement or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provision or part of this Agreement to other persons or circumstances shall not be affected thereby. 4.7. Merger. This Agreement embodies the entire agreement between the parties and there are no prior effective representations, warranties or agreements between the parties. 4.8. Term. This Agreement shall be in force and effect from the date of execution hereof for a term of forty (40) years. Dated this day of 1965. CITY OF BAYTOWN ATTEST: Mayor City Clerk 51114 -2f SAN JACINTO PLACE MUNICIPAL UTILITY DISTRICT NO. 1 ATTEST: President ecretary 51114 -2g EXHIBIT "B"