2016-043ORDINANCE NO. 2016 -043
AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE
CITY MANAGER TO EXECUTE A "WATER & SEWER MAIN PRO -RATA
REIMBURSEMENT AGREEMENT" BY AND BETWEEN THE CITY OF DENTON, TEXAS
AND THX PROPERTIES, LLC FOR REIMBURSEMENT OF THE COSTS OF BUILDING A
WATER AND SEWER MAIN, THROUGH PRO -RATA CHARGES PAID TO THE CITY;
AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO THE AGREEMENT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas requires that the development owned by THX
Properties, LLC ( "Owner "), commonly referred to as that real property commonly known as
"Vista del Arroyo," located within the City of Denton, or its extraterritorial jurisdiction; Denton
County, Texas (as more particularly depicted in Exhibit I, attached hereto and incorporated
herein by reference); and said Owner is required to provide such real property development with
adequate water and sewer service by designing, constructing, and installing a water and sewer
main; and
WHEREAS, the City of Denton, Texas may lawfully reimburse the Owner for the costs
of the twelve -inch water main installation and the eight -inch sewer main installation by the
Owner based upon pro -rata charges paid to the City of Denton, Texas by persons or entities
connecting to the water and sewer main pursuant to the Denton Development Code, Subchapter
35.21.10.1 and .2; and also in accordance with Texas Local Government Code, Sections 51.072
and 271.005 NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee, is authorized to execute a "Water and
Sewer Main Pro -Rata Reimbursement Agreement" by and between the City of Denton, Texas
and THX Properties, LLC" (the "Agreement ") to provide for the pro -rata reimbursement for the
design, construction, and installation of a total of 1,802 linear feet of off -site water line, being a
12 -inch diameter water main, substantially in the form of the attached Agreement, which is
incorporated herewith by reference and made a part of this Ordinance for all purposes; subject
however, to Owner, THX Properties, LLC entering into a Development Contract with the City of
Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.B.
SECTION 2. The City Manager, or his designee, is also hereby authorized to execute
said Agreement to provide for the pro -rata reimbursement for the design, construction and
installation of a total of 1,515 linear feet of off -site sewer line, being an 8 -inch diameter sewer
main, substantially in the form of the attached Agreement, which is incorporated herewith by
reference and made a part of this Ordinance for all purposes; subject however, to the Owner,
THX Properties, LLC entering into a Development Contract with the City of Denton, Texas in
accordance with the Denton Development Code, Subchapter 35.16.20.B.
SECTION 3. The City Manager is hereby authorized to make such expenditures and
transfers of funds under such conditions as are set forth in the attached Agreement, marked as
Exhibit "A," and incorporated herewith by reference..
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SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B �
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By:
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THE STATE OF TEXAS §
COUNTY OF DENTON §
WATER MAIN AND SEWER MAIN PRO -RATA REIMBURSEMENT AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND THX PROPERTIES, LLC
WHEREAS, THX Properties, LLC (hereafter "Developer "), a Limited Liability
Corporation, whose business address is 8760 Hilltop Road, Argyle, Texas 76226, wishes to
develop and improve real property named Vista Del Arroyo (as shown in Exhibit 1, attached
hereto and incorporated herein by reference) which is located within the City of Denton, Texas,
and Developer is required to provide such property with adequate water and sewer service by
designing, constructing and installing a water main and sewer main; and
WHEREAS, the City of Denton, Texas (hereafter "City "), a Texas municipal corporation,
located at 215 East McKinney, Denton, Texas 76201, in accordance with its ordinances and by
Statutory authority granted thru TLGC 51.072 and TLGC 271.005, may contract with and
reimburse a Developer for the cost of the water main and sewer main installed by the Developer
(goods and services), based upon pro -rata charges paid to the City by persons connecting to the
water main and sewer main;
NOW, THEREFORE, in consideration of their mutual promises, Developer and City agree as
follows:
1. Developer will design and construct a 12 -inch diameter off -site water main and all
necessary appurtenances thereto, extending a total distance of approximately 1,802 feet
( "Facilities "), located as shown on Exhibit 2, attached hereto and incorporated herein by
reference. This off -site water main shall be subject to pro -rata reimbursement in
accordance with this Agreement.
2. Developer will design and construct an 8 -inch diameter off -site sewer main and all
necessary appurtenances thereto, extending a total distance of approximately 1,535 feet
( "Facilities "), located as shown on Exhibit 2, attached hereto and incorporated herein by
reference. This off -site sewer main shall be subject to pro -rata reimbursement in
accordance with this Agreement.
3. Prior to beginning construction of the Facilities, Developer shall obtain at Developer's
sole cost and expense, all necessary permits, licenses, and easements.
4. Colm tifiv _Bid Rgj( Ld lnents, Bond I eguirements,_anclmmITPt��� t Rccygirements. In
accordance with the provisions of Texas Local Government Code, Subchapter C, Section
212.071- 212.074, the Developer shall receive a pro -rata reimbursement under this
Agreement, provided that all of the following requirements are adhered to:
(a) The Developer shall obtain a minimum of three competitive bids, which include
unit price cost information, for the construction of the water and sanitary sewer
utilities, described above in paragraphs 1 and 2.
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(b) Copies of the bids shall be provided to the City for review.
(c) The Developer may award to the contractor of his choice; however, the pro -rata
reimbursement will be based on the lowest of the bids received by the Developer,
provided those costs are similar to previous costs received for similar projects
where public competition was obtained.
(d) Prior to reimbursement approval, the City shall provide a validation of the low
bid unit prices received as a result of the competition by conducting an
independent analysis of the bids. The analysis shall be conducted referencing
previous competitive bids received by the City for similar projects of this size
and requirements, for pricing consistency.
(e) If the Developer's lowest competitive bid is found to be competitive with low
bids received by the City for similar projects, the pro -rata reimbursement will be
based on those unit prices.
(f) Upon finalization of the independent review as stipulated in #4 (d -e), the pro -rata
reimbursement amount shall be approved to the lowest submitted pricing, or
from the analysis of previously publically competed pricing, dependent upon
which method provides the best value to the City.
(g) The Developer shall ensure that all materials provided for the project are
asbestos -free, as represented by the Manufacturer's Material Safety Data Sheet.
(h) The Developer shall establish and maintain a central file for all design,
construction, and related contractual documentation, and provide the City access
to the database of documentation. The Developer grants to the City the right to
audit all of the project documentation, including Contractor's records and
billings related to the performance of work for the project. The Developer agrees
to retain its project records for a minimum of five (5) years following completion
of the work.
5. The costs of the design and construction of the Facilities subject to pro -rata
reimbursement are estimated to be:
Water:
Sewer:
$167,194.35 (Developer cost) or $92.78 per linear foot (1,802 linear feet
of off -site Facilities)
$93,326.20 (Developer cost) or $60.80 per linear foot (1,535 linear feet of
off -site Facilities)
The calculations from which these costs were determined are presented in Exhibit 3.
Final pro -rata reimbursement costs will be computed and added to this Agreement as
Exhibit 4, after completion of construction and acceptance by the City of the utilities,
based on actual construction quantities.
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6. Within thirty (30) days of the acceptance of the Facilities by the City, Developer shall
submit to the City's Assistant City Manager of Utilities the actual cost of the Facilities.
To determine the actual cost of the Facilities, the 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 to any necessary information,
documents, invoices, receipts or other records to verify the actual cost of the Facilities.
The Assistant City Manager of Utilities shall review and verify the actual cost of the
Facilities and certify the allowable reimbursable cost and the date the Facilities were
accepted, which certificate shall be attached hereto and be incorporated herein by
reference.
7. After title to the Facilities has vested in the City, the City shall collect a pro -rata charge
from any person or entity connecting to the off -site facilities in accordance with the
provisions of the Code of Ordinances of the City. Within thirty (30) days of the receipt
of pro -rata charges, the City shall transfer the applicable amount collected to Developer.
8. The City shall transfer to Developer pro -rata charges collected for a period of time for
twenty (20) years only, from the date Facilities are accepted by City, as specified herein;
but in no event shall the City transfer or reimburse to the Developer any amount of funds
in excess of the certified cost of the Facilities.
9. The pro -rata 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's cost of the Facilities by requiring persons or entities
connecting who benefit thereby, to participate in the cost of the Facilities. This
Agreement shall not be considered to impose any obligation or liability upon the City to
pay for the Facilities from its general revenues, bond funds or any other revenues it may
receive, except for those pro -rata funds received from persons or entities connecting to
such Facilities.
10. Should any court of competent jurisdiction determine that all or a part of the City's
ordinances upon which the pro -rata 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 pro -rata charges for connection to the Facilities, and shall have no further
obligations hereunder.
11. All notices, payments or communications to be given or made pursuant to this Agreement
by the Parties hereto, shall be sent to Developer at the business address given above and
to the Assistant City Manager of Utilities for the City at the address given above.
12. The Developer shall indemnify and hold the City harmless from any and all claims,
damages, loss or liability of any kind whatsoever, by reason of injury to property or
person occasioned by any act or omission, neglect or wrongdoing of Developer,, its
officers, agents, employees, invitees, contractors or other persons 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.
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13. This instrument embodies the whole agreement of the Parties hereto, and there are no
promises, terms, conditions or obligations other than those contained herein. This
Agreement shall supersede all previous communications, representations or agreements,
either verbal or written, between the parties hereto.
14. Developer shall not assign this Agreement without the express written consent of the
City.
15. Any and all suits for any breach of this Agreement or any other suit pertaining to or
arising out of this Agreement, shall be brought and maintained in the court of competent
jurisdiction in Denton County, Texas.
16. This Agreement shall be effective for a period of twenty (20) years from the date
Facilities are accepted by the City, or until Developer has been paid all allowable
reimbursable pro -rata charges for the Facilities, whichever occurs first; provided,
however, should Developer fail to complete substantial construction of the Facilities
within one year from the date of execution of this Agreement, this Agreement shall
terminate.
EXE ,I IT1::1) 1 1is the I& day of � �, � mm,...�.g 201 , .
CITY OF DENTON, TEXAS ( "CITY ")
A Texas Municipal Corporation
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By:
i 1I GE C. CAMPBELL
CITY MANAGER
ATTESTED BY:
JENNIFER WALTERS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: ti k
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ATTEST:
By:
APPROVED AS TO LEGAL FORM:
By: rot,
THX PROPERTIES,, LLC ("DEVELOPER!')
A Limited Liability Corporation
By:
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Exhibit 3
Vista Del Arroyo
Water Main Pro -Rata Cost
Description
Quantity
Unit
Unit Price
Subtotal
Pre - Construction Conference
1
LS
$
500.00
$
500.00
Mobilization and Startup
1
LS
$
5,200.00
$
5,200.00
Contractors Insurance, Warranties, Bonds Understandings & Developers Agreement
1
LS
$
19,350.00
$
19,350.00
Erosion Control & SWPPP Compliance
1
LS
$
870.00
$
870.00
Construction Staking
1
LS
$
1.50
$
1.50
Drawings Set w/ Field Changes Indicated for Preparation of Record Drawings
1
LS
$
500.00
$
500.00
12" C900 DR 18 Water Line
1802
LF
$
38.00
$
68,476.00
Ductil Iron Fittings
0.48
Ton
$
8,335.94
$
4,001.25
20" Steel Casing Pipe By Other than Open Cut Method
85
LF
$
237.00
$
20,145.00
Connect to Existing 12" Water Main
2
EA
$
780.00
$
1,560.00
12" Gate Valve & Box
1
EA
$
2,200.00
$
2,200.00
12" Combination Air Valve Assembly & Vault
1
EA
$
5,145.00
$
5,145.00
Standard Fire Hydrant Assembly
7
EA
$
3,764.00
$
26,348.00
Waterline Trench Safety
1802
LF
$
0.30
$
540.60
Waterline Testing
1
LS
$
1,802.00
$
1,802.00
Engineering Design Cost
1
LS
$
10,555.00
10,555.00
Water Total
$
167,194.35
Water line footage
1,802
Water Pro Rata cost per foot
$
92.78
Exhibit 3 (cont.)
Vista Del Arroyo
Sewer Main Pro -Rata Cost
Description
Quantity
Unit
Unit Price
Subtotal
Pre - Construction Conference
1
LS
$
500.00
$ 500.00
Drawings Set w/ Field Changes Indicated for Prep. Of Record Drawings
1
LS
$
500.00
$ 500.00
8" SDR 35 Sanitary Sewer Main Line
735
LF
$
32.60
$ 23,961.00
8" SDR 26 Sanitary Sewer Main Line
800
LF
$
32.60
$ 26,080.00
4' Diameter Manhole Precast or Cast in Place (5' -10')
3
EA
$
2,280.00
$ 6,840.00
4' Diameter Manhole Precast or Cast in Place (10' -15')
1
EA
$
2,280.00
$ 2,280.00
5' Diameter Manhole Precast or Cast in Place
2
EA
$
3,715.00
$ 7,430.00
Conncet to Existing Manhole
1
LS
$
840.00
$ 840.00
Trench Safety
1535
LF
$
0.30
$ 460.50
Sewer Line Testing
1
LS
$
1,842.00
$ 1,842.00
Low Water Crossing
2
EA
$
6,018.85
$ 12,037.70
Engineering Design Cost
1
LS
$
10,555.00
$ 10,555.00
Sewer Total
$ 93,326.20
Sewer line footage
1,535
Seaver Pro Rata cost per foot
$ 60.80