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" WATER MAIN PRORATA REIMBURSEMENT
AGREEMENT BETWEEN THE CITY OF DENTON
r AND MICHAEL VERRILLI
r WHEREAS, Michael Verrilli, (Developer), whose business eddress is
2750 Pockrus Page Road, Denton, Tx., 76205, wishes to develop and
improve real property located at the southeast corner of the inter-
section of Pockrus-Page Road and the Missouri, Kansas and Te/e.s
Railroad Right-of -Way,(now owned by the Union Pacific Railroad), in
d` the City of Denton, Texas or its extraterritorial jurisdiction, and
is required to provide such property with adequate water service by
designing, constructing and installing a water main; and "
WHEREAS, the City of Denton (City) a municipal corporation lo:ated
rF at 215 East McXinney, Denton, Texas 76201, in accordance witli its
ordinances may reimburse Developer for the costs of the water main
a installed by Developer based upon prorate charges paid to the city
by persons connecting to the water main;
r NOW, THEREFORE, in consideration of their mutual promises, Devel-
oper and City agree as follows
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1. Developer shall design, install, and construct, at no
cost to the City, a six inch (6") water main and all necessary ap-
purtenances thereto, extending a total distance of approximately
sixteen hundred seven (1,6071) feet (the "tieilities"), located as
shown on Exhibit A, attached hereto and incorporated herein by raf-
erence, and shall be subject to prorata reiW).trsement in accordance
with this Agreement.
2. Prior to beginning construction of the facilities, Devel-
oper shall obtain, at Developer's sole cost and expense all neces-
sary permits, licenses and easements. If easements are needed, the
deeds therefor obtained by Developer shall be reviewed and approved
as to form and substance by City prior to the beginning of con-
struction. If Developer is unable to acquire needed easements, Do-
'f veloper shall provide city with any requested documentation of ef-
forts to obtain such easements, including evidence of negotiations
and reasonable offers made to the affected property owners. Any
• easements for the facilities obtained by the Developer shall be as-
signed to City, if not taken in City0s name, prior to acceptance of
the facilities, and Developer warrants clear title to such ease-
ments and will defend city against any adverse claim made against
such title.
4. The estimated cost of the design, construction and in-
stallation of the facilities subject to prorata reimbursement is f •
Nineteen Dollars and Sixty Cents ($19.0) per linear foot for the
estimated Thirty One Thousand Four Hundred Ninety Seven Dollars and
Twenty Cents (*31,491.20) for the sixteen hundred seven linear feet
(106070) of facilities. E "
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' 5. Within thirty (30) days of the acceptance of the facili-
ties by the City, Developer shall submit to the City's Executive
i Director of Utilities the actual cost of the facilities. To deter-
mine the actual cost of the facilities, City shall have the right
to inspect any and all records of Developer, his agents, employees,
contractors or subcontractors and shall have the right to require
Developer to submit any necessary information, documents, invoices,
receipts or other records to verify the actual cost of the faoili-
ties. The Executive Director of Utilities shall review and verify
the actual cost of the facilities and certify the allowable reim-
OI bursable cost and the date the facilities were accepted, which
certificate shall be attached hereto and be incorporated heroin by
reference.
6. After title to the facilities have vested in the City,
the city shall collect a prorate charge from any person connecting
to the facilities in accordance with the provisions of the Code of
ordinances of the City. Within thirty (30) days of the receipt of
' prorate charges the City shall transfer such amount collected to
developer.
7. The City shall transfer to Developer prorate charges
collected for a period of time of twenty (20) years from the date
facilities are accepted by City, as specified herein, but shall not
transfer or reimburse to the Developer an amount of funds in excess
of the certified cost of the facilities.
8. The parties hereto recognize that the facilities subject
to this Agreement are necessary to provide water service to the
Developer's pproperty. Should the City decide that it wishes to
participate in the cost of funding a water main that would provide
greater water capacity than the facilities Developer is required to
install, the Developer and City may enter into a separate Water
Main Participation Agreement to provide for the sharing of cost of
such oversized main. it such Agreement is entered into, the actual
Agreement, but the prorate charges to be collected and transferred
to Developer shall be based on the terms of this Agreement, as
through the facilities subject to this Agreement were installed.
• 9. The prorate charges to be collected by the City and
transferred to Developer in accordance with the ordinances of the
city and this Agreement are intended to reimburse the Developer for
the Developer'a cost of the facilities by requiring persons connec-
ting who benefit thereby to participate in the cost of the faoili-
ties. This Agreement shall not be considered to impose any obliga-
tion or liability upon the City to pay for the facilities from its
M general revenues, bond funds or any other revenues it may receive, ! •
except for those prorate funds received from parsons connecting to
such facilities.
Page 2
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10. Should any court of competent jurisdiction determine that
all or part of the City's ordinance on which the prorate charges to
be paid to developer under this Agreement are based are found to be
unlawful or invalid, the City may cease to charge or collect the
prorata charges for connection to the facilities and will have no
further obligation hereunder.
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11. All notices, payments or communications to be given or
{a made pursuant to this Agreement by the parties hereto, shall be
sent to Developer at the business address given above and to the
Executive Director of Utilities for the City at the address given
abovo.
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12. The Developer shall indemnify and hold the City harmless
from any and a?,l claims, damages, loss or liability of any kind
}r; whatsoever, by reason of injury to property or person occasioned by
¢ any act or omission, neglect or wrongdoing of Developer, its of-
ficera, agents, employees, invitees, contractors or other persons
i' with regard to the performance of this Agreement, and Developer
will, at its own cost and expense, defend and protect the City
against any and all such claims and demands.
13. This instrument embodies the whole Agreement of the par-
ties hereto and there are no promise., terms, conditions or obli-
gations other than those contained herein. This Agreement shall
supersede all previous communication:+, representations or agree-
ments, either verbal or written, between the parties hereto.
14. This Agreement shall not be assigned by Developer without
the express written consent of City.
15. Any and all suits for any breach of this Agreement, or
any other uuit pertaining to or arising out of this Agreement,
shall be brought and maintained in the court of competent jurisdic-
tion #n Denton County, Texas.
16. This Agreement shall be effective for a period of twenty
(20) years from the date facilities are acceptod by City or until
Developer has been paid all allowable reimbursable prorate charges
• for the facilities, whichever occurs first] provided, however,
should Developer fail to begin substantial construction of the fa-
cilities within one year from the date of execution of this Agree-
ment, this Agreement shall terminate.
Executed this the D7 day of , 1992.
• CITY OF DENTON T~ • .
Y el,
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D HARRELL, CIT MANAGER
Page 3
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ATTEST! Y ' YF? 1 y
JENNIP R WALT$R6# CITY SECRETARY
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APPR ED Ae TO LEGAL f'OA!! I
DEBRA A. DRAYOVITCHo CITY ATTORNEY wxn`} u.
BY LAO)
n MICHAEL VERRILLTi DEVELOPER rwty,
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SECR ARY
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