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
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EXHIBIT "A"
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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:
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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.
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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
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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
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SAN JACINTO PLACE MUNICIPAL
UTILITY DISTRICT NO. 1
ATTEST:
President
ecretary
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EXHIBIT "B"