2008-294ORDINANCE NO. 2008-~
AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE
CITY MANAGER TO EXECUTE A WATER MAIN AND SEWER MAIN PRO-RATA
REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND
KLR DEVELOPMENT LLC. FOR REIMBURSEMENT OF THE COSTS OF BUILDING A
WATER MAIN 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 KLR
Development LLC (the "Owner"), whose business address is 2117 Spur Court, Denton, Texas
76210, commonly referred to as that real property commonly known as and located within Ryan
Road Estates (as more particularly depicted in Exhibit I, attached hereto and incorporated herein
by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction; and said
Owner is required to provide such real property 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 diameter off-site water main and all necessary appurtenances thereto,
extending a total distance of approximately 1,234 linear feet regarding water main installation by
the Owner based upon pro-rata charges paid to the City of Denton, Texas by persons connecting
to the water main pursuant to the Denton Development Code, Subchapter 35.21.10.1 and .2; and
WHEREAS, the City of Denton, Texas may lawfully reimburse the Owner for the costs
of the eight inch diameter off-site sewer main and all necessary appurtenances thereto, extending
a total distance of approximately 1,635 linear feet regarding sewer main installation by the
Owner based upon pro-rata charges paid to the City of Denton, Texas by persons connecting to
the sewer main pursuant to the Denton Development Code, Subchapter 35.21.10.1 and .2; NOW
THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the City Manager is authorized to execute a Water Main and Sewer
Main Pro-Rata Reimbursement Agreement between the City of Denton, Texas and KLR
Development LLC. (the "Agreement") to provide for the pro-rata reimbursement for the design,
construction, and installation of approximately 1,234 linear feet of water line, being an 12-inch
and 8-inch diameter water main; as well as to provide for the pro-rata reimbursement for the
design, construction, and installation of approximately 1,635 linear feet of 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 Owner, KLR Development LLC. entering into a Development Contract with the
City of Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.2
and 35.16.20.4.
SECTION 2. That 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.
SECTION 3. That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the day of AQZZ e&) , 2008.
MARK A. BURROUGHS, AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: i
THE STATE OF TEXAS §
COUNTY OF DENTON §
WATER MAIN AND SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND KLR DEVELOPMENT LLC
WHEREAS, KLR Development LLC ("Developer"), A Limited Liability Corporation
whose business address is 2117 Spur Court, Denton, Texas 76210, wishes to develop and
improve certain real property named Ryan Road Estates (as shown in Exhibits 1, 2, and.,
attached hereto and incorporated herein by reference) located in the City of Denton,
Texas or pits extraterritorial jurisdiction, and 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 ("City"), a municipal corporation, located at 215 East
McKinney, Denton, Texas 76201, in accordance with its ordinances may reimburse
Developer for the costs of the water main and sewer main installed by the Developer,
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:
Developer has designed, installed and constructed, 12 - inch and 8- inch diameter
off-site water main and all necessary appurtenances thereto, extending a total
distance of approximately 1,234 feet ("Facilities"), located as shown on Exhibit
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 has designed, installed and constructed, 8- inch diameter off-site sewer
main and all necessary appurtenances thereto, extending a total distance of
approximately 1,635 feet ("Facilities"), located as shown on Exhibit 3, 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 Facilities, Developer shall obtain at
Developers sole cost and expense, all necessary permits, licenses, and easements.
If easements are needed, the deeds therefore obtained by Developer shall be
reviewed and approved as to form and substance by the City prior to the
beginning of construction. If Developer is unable to acquire needed easements,
Developer shall provide the City with any requested documentation of efforts 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 assigned to City, if not taken in City's name, prior to
acceptance of the Facilities; and Developer warrants clear title to such easements
and will defend the City against any adverse claim made against such title.
4. The cost for the design, construction, and installation of the Facilities subject to
pro-rata reimbursement is:
Water:
$37,012.00 (Developer cost) or $29.10 per linear foot (1,272 linear
feet of off-site Facilities)
$0.00 (City participation cost)
Sewer:
$57,586.75 (Developer cost) or $35.22 per linear foot (1,635 linear
feet of off-site Facilities)
$0.00 (City participation cost)
The calculations from which these costs were determined are presented in Exhibit
4.
5. 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.
6. After title to the Facilities has vested in the City, the City shall collect a pro-rata
charge from any person connecting to the off-site facilities in accordance with the
provisions of the Code of Ordinances of the City. The City shall thereafter
transfer the applicable amount collected to Developer.
7. The City shall transfer to Developer pro-rata charges collected for a period of
time for 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 and sewer service to the Developer's property. The
City has decided that it will participate in the cost of funding a water main that
would provide greater water capacity than the Facilities Developer is required to
2
install. The City and Developer will enter into a separate Water Main
Participation Agreement to provide for the sharing of cost of such oversized main.
The pro-rata charges to be collected and transferred to Developer shall be based
on the terms of this Agreement, as though the Facilities subject to this Agreement
were installed.
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 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 connecting to such Facilities.
10. Should any court of competent jurisdiction determine that all or a part of the
City's ordinance 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.
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.
3
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.
EXECUTED this the day of A&4&kV , 2008.
CITY OF DENTON, TEXAS
By•
G O LEC. . CAMPBELL
CITY MANAGER
ATTESTED BY:
JENNIFER WALTERS, CITY SECRETARY
By:
AP 4EDS LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: AAA_Q~~-r'1'j
KLR Development LLC
A Limited Li biity Corporation
G
By:
Is
ATTEST:
By: DVA
APPROVED AS TO LEGAL FORM:
By: _bAm
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Pro-Rata Sewer -Ran Road Estates EXHIBIT 3
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EXHIBIT 4
Ryan Road Estates
Offsite Water Main and Sewer Main Pro-Rata Costs
Water
Description
Quantity
Unit
Unit Price
Subtotal
Connect to existing water system and install 12x8 reducer
1
EA
$
1,200.00
$
1,200.00
8-in. DR-18 water line (to be oversized to 12-in. by City)
869
LF
$
21.00
$
18,249.00
8-in. DR-18 water line
403
LF
$
21.00
$
8,463.00
Open cut Ryan Road and replace asphalt
50
LF
$
80.00
$
4,000.00
8-in. 45 degree bend
2
EA
$
350.00
$
700.00
8-in. 90 degree bend
2
EA
$
400.00
$
800.00
8-in. x 8-in. tee
1
EA
$
500.00
$
500.00
8-in. gate valve
1
EA
$
700.00
$
700.00
8-in. restrained end plug
1
EA
$
400.00
$
400.00
Material Testing
1
LS
$
500.00
$
500.00
Water Testing
1
LS
$
500.00
$
500.00
Bond
1
LS
$
1,000.00
$
1,000.00
Water Total
$
37,012.00
Water line footage
1,272
Water Pro Rata cost per foot
$
29.10
Sewer
Description
Quantity
Unit
Unit Price
Subtotal
Connect to existing manhole
1
EA
$
1,500.00
$
1,500.00
8-in. SDR-35 sewer line
1635
LF
$
21.75
$
35,561.25
4-ft. diameter manhole
5
EA
$
2,300.00
$
11,500.00
Open cut school drive and replace asphalt
30
LF
$
80.00
$
2,400.00
Open cut Ryan Road and replace asphalt
25
LF
$
80.00
$
2,000.00
Material testing
1
LS
$
800.00
$
800.00
Sewer testing
1635
LF
$
1.30
$
2,125.50
Bond
1
LS
$
1,700.00
$
1,700.00
Sewer Total
$
57,586.75
Sewer line footage
1,635
Sewer Pro Rata cost Der foot
S
35.22