2005-211ORDINANCE NO. 2005- z
AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A SERVICE AREA DESIGNATION
AND TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS
AND THE CITY OF KRUM, TEXAS WHEREIN THE CITY OF DENTON TRANSFERS
AND ASSIGNS ITS RETAIL WATER AND SEWER SERVICE RIGHTS IN AND TO THE
TWO TRACTS KNOWN AS ASPEN PARK PHASE ONE AND ASPEN PARK PHASE TWO
ADDITIONS TO THE CITY OF KRUM, TEXAS, FOR A TOTAL OF 59.99 ACRES OF
LAND; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas has been requested by the City of Krum, Texas to
transfer its service rights for retail water service (Water CCN No. 10195) and wastewater service
(Sewer CCN No. 20072); so that the City of Krum may serve a new residential development
named Aspen Park Phase One and Aspen Park Phase Two (the "Additions") with both retail
water and wastewater service; said additions total 59.99 acres of land; and
WHEREAS, Aspen Park, L.P., the Developer of said Additions desires that the Additions
be annexed by the City of Krum, Texas and that they be furnished with both retail water and
wastewater service by the City of Krum; and
WHEREAS, Aspen Park Phase One is located within the City of Krum's extraterritorial
jurisdiction (being 52.979 acres of land); while Aspen Park Phase Two is located within the City
of Denton's extraterritorial jurisdiction (being 7.011 acres of land). In a separate agenda item
following this item, the City Council shall conduct a public hearing on the release of Denton's
7.011 acres of extraterritorial jurisdiction to the City of Krum; thereafter the Council will
consider an ordinance approving a "Boundary Adjustment Agreement" that confirms the release
of the 7.011 acres of extraterritorial jurisdiction to the City of Krum; and
WHEREAS, provided that the City Council approves both the assignment and transfer of
the retail water and wastewater service rights to the City of Krum, Texas hereunder; as well as
the release in a separate agenda item by the City of Denton, Texas of the 7.011 acres of
extraterritorial jurisdiction to the City of Krum; and
WHEREAS, the City Council of the City of Denton, Texas hereby announces that it will
pass upon the facts and circumstances of the future requests and applications of other cities and
developers in the future; it being the Council's intention to announce to the citizens of the City
that it will consider the individual facts and circumstances presented to it, and there is no policy
of the City Council regarding such requests and applications; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the recitations contained hereinabove contained are true and correct
and shall be deemed to be a part of this Ordinance.
SECTION 2. That the City Manager is authorized to execute a "Service Area
Designation and Transfer Agreement" by and between the City and the City of Krum, Texas,
substantially in the form of the attached Agreement, which is incorporated herewith by reference
and made a part of this Ordinance for all purposes.
SECTION 3. That this ordinance shall become effective immediately upon its
passage and approval.
PASSED AND APPROVED this the Z_ R-dday of 2005.
e t6'(~ &D4,
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
,,.;WAd 1.
S:\Our Documents\0rdinances\05\Krurn Service Area Designation and Transfer Agreetnent4005.doc
STATE OF TEXAS §
COUNTY OF DENTON §
SERVICE AREA DESIGNATION AND TRANSFER AGREEMENT
THIS AGREEMENT ("Agreement') is entered into by and between the City of Krum,
Texas ("Krum") and the City of Denton, Texas ("Denton") to designate and transfer certain
service rights and obligations to that one certain 59.990 acre development known as "Aspen
Park" which is located within the extra-territorial jurisdiction of the two above-referenced cities.
Recitals
WHEREAS, the City of Krum, Texas is a General Law municipality situated in Denton
County, Texas and currently furnishes both retail water and wastewater service within its
corporate boundaries and extra-territorial jurisdiction; and
WHEREAS, the City of Denton, Texas is a Home Rule municipality situated in Denton
County, Texas, and currently furnishes both retail water and wastewater service within its
corporate boundaries and extra-territorial jurisdiction; and is the holder of Water CCN No. 10195
and Sewer CCN No. 20072 issued by the Texas Commission on Environmental Quality
("TCEQ") or its statutory predecessors; and
WHEREAS, Aspen Park, L.P., a Texas Limited Partnership, is the present owner of a
59.990 acre tract development in Denton County known as "Aspen Park" (the Aspen Park
Development) as shown on the surveyed plat that is attached hereto as Exhibit "A." The entirety
of such Aspen Park Development is situated within the retail water and sewer service areas
certificated to the City of Denton in Water CCN No. 10195 and Sewer CCN No. 20072. Said
Development property consists of two (2) adjacent tracts, consisting of a certain 52.979 acre tract
Service Area Designation and
Transfer Agreement -1-
of land, known as "Aspen Park Phase One" ("Phase One" tract), which is more particularly
described in Exhibit "B" attached hereto, and is located within Krum's extra-territorial
jurisdiction; and a certain adjacent 7.011 acre tract of land, known as "Aspen Park Phase Two"
("Phase Two" tract); and is located within Denton's extra-territorial jurisdiction; and
WHEREAS, Aspen Park, L.P. desires that its Aspen Park Development be annexed by
Krum, upon release of Aspen Park's Phase Two tract from Denton's extra-territorial jurisdiction
and famished with retail water and sewer service by the City of Krum, in order to provide for the
timely and orderly extension of utility facilities and development of the Aspen Park Phase One
and Aspen Park Phase Two tracts described therein; and
WHEREAS, the City of Krum desires to provide retail water and sewer service to said
Aspen Park Development; but must first secure the City of Denton's consent and agreement to
designate such service area, and transfer the certificated retail service rights to such development
to Krum under the provisions of Texas Water Code, Sections 13.248 and 13.301; and
WHEREAS, the City of Denton has informally indicated that it wishes to facilitate the
Aspen Park Development and, subject to its City Council approval, is amenable to entering into
an agreement for the designation and transfer of its service rights to the above-described
development to Krum.
NOW THEREFORE, in consideration of $10.00 and other good and valuable
consideration paid by the City of Krum to the City of Denton, the receipt and adequacy of which
is hereby acknowledged, the City of Krum and the City of Denton do hereby agree as follows:
1. The City of Denton hereby transfers all of its retail water and sewer service area
rights in and to the Aspen Park Development under Water CCN No. 10195 and Sewer CCN No.
20072 to the City of Krum pursuant to the authority of Texas Water Code, Section 13.301,
Service Area Designation and
Transfer Agreement -2-
subject to all Texas Commission on Environmental Quality ("TCEQ") statutory and regulatory
requirements and approvals, set forth or referenced therein, notice of which transfer is expressly
acknowledged by Krum.
2. Pending the final transfer of its certificated service area rights to the City of Krum
as provided for under this Agreement, the City of Denton hereby designates the Aspen Park
Development as property included within its certificated water and sewer service areas which
may, by this Agreement, be served with retail water and wastewater service by the City of Krum;
and the cities of Denton and Krum hereby agree that this Agreement be incorporated into the
parties' respective service.areas of public convenience and necessity, under the provisions of
Section 13.248 of the Texas Water Code.
3. The City of Krum shall furnish to the City of Denton's Assistant City Manager of
Utilities, a copy of any and all applications, notices, approvals, orders or other documents filed
with the TCEQ, or by the TCEQ in connection with the approval of this Agreement by the,
TCEQ, said delivery to be made within ten (10) days of the submission and/or receipt thereof.
4. All rights, powers, privileges and authorities of Denton and Krum not otherwise
restricted or affected by the express terms and provisions of this Agreement, are reserved by
Denton and Krum.
5. This Agreement embodies the entire Agreement and understanding by and
between the City of Denton and the City of Krum, Texas, with regard to the subject matter of this
Agreement.
6. If any provision of this Agreement is judicially declared invalid or unenforceable,
such provision shall be deemed severed from this Agreement, and the remaining portions of this
Agreement shall remain in effect.
Service Area Designation and
-Transfer Agreement -3-
7. All recitals set forth above and all attachments referenced herein are incorporated
by reference into the text of this Agreement, as if fully set forth herein.
8. The City of Denton and the City of Krum each represent and warrant that the
signatories on this Agreement are authorized to execute this Agreement by their respective
governing bodies. The City of Denton and the City of Krum each warrants that any action
required to be taken in order for this Agreement to be binding on it, has been duly and properly
taken prior to the execution of this Agreement.
10. This Agreement shall be effective on the last date of signature hereof; and is
subject to the approval by the TCEQ as provided by the applicable provisions of the Texas Water
Code and the Regulations.
Dated: Q -a~ ' ()S
ATTEST:
Ann Mills, City Secretary
By: o✓Yt/vx `-t ~
APPROVED AS TO LEGAL FORM:
By:
The City of Krum, Texas
Br~.!
Lab~ L onica, Mayor
Service Area Designation and
Transfer Agreement -4-
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By:
Euline Brock, Mayor
ATTEST:
Jennifer Walters, City Secretary
&d Dated: Qo ~z &57
APPROVED AS TO LEGAL FORM:
Edwin M. Snyder, City Attorney
Hy: &4AW
U
S:\Our Documents\Contracts\05\Kram-Denton-Aspen Park-Agreement-CCN-2005.doc
Service Area Designation and
Transfer Agreement -5-