2005-023ORm aNCE NO. 2005-
AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE
CITY MANAGER TO EXECUTE A WATER MAIN PRO-RATA REIMBURSEMENT
AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND NUB NEIGHBORS
REGARDING SWISHER ROAD WATER LINE PHASE 1, PROVIDING FOR
REIMBURSEMENT OF THE COSTS OF BUILDING A WATER MAIN TO BOTH THE
CITY OF DENTON AND NLrB NEIGHBORS AS SPECIFIED IN THE AGREEMENT,
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 real property owned by Nub
Neighbors ("Property Owner) commonly referred to as that real property described as the
"Swisher Road Water Line Phase 1" (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 Property Owner is required to provide such real property with adequate
water service by designing, constructing, and installing a water main; and
WHEREAS, the City of Denton, Texas may lawfully reimburse the Property Owner for
the sum of $8,315.90 representing the agreed-upon portion of the costs of the water main
installation by the Property Owner based upon pro-rata charges paid to the City by any persons
connecting to the water 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 Pro-Rata
Reimbursement Agreement Between the City of Denton, Texas and Nub Neighbors (the
"Agreement") to provide for the pro-rata reimbursement to Nub Neighbors of the sum of
$8,315.90 only, with all remaining pro-rata charges to be paid to the City, for the design,
construction, and installation of 1,025 linear feet of 8-inch diameter water mains, 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 Property Owner, Nub Neighbors entering
into a Development Contract with the City of Denton, Texas in accordance with the Denton
Development Code, Subchapter 35.16.20.2.
SECTION 2. That the City Manager is hereby authorized to make such expenditures
and transfers of ftmds to the City and to Nub Neighbors trader such conditions and limitations 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 /¢Z~.. day of January, 2005.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
S:\Our Documents\Ordinances\05\Water Main Pro-Rata Reimb Ord-N¢ighbors-2005.doc
THE STATE OF TEXAS §
COUNTY OF DENTON §
WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND NUB NEIGHBORS
WHEREAS, Nub Neighbors ("Property Owner"), whose address is 309 Sanders
Road, Denton Texas 76210 wishes to develop and improve certain real property named
Swisher Road Waterline Phase 1 (as shown in Exhibit I, attached hereto and incorporated
herein by reference) located in 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, Texas ("City"), a municipal corporation, located
at 215 East McKirmey Street, Denton, Texas 76201, in accordance with its ordinances
may reimburse Property Owner for the part of the costs of the water main installed by the
Property Owner, based upon pro-rata charges paid to the City by persons connecting to
the water main;
NOW, THEREFORE, in consideration of their mutual promises, Property Owner and
City agree as follows:
Property Owner has designed, installed and constructed, 8-inch diameter water
main and all necessary appurtenances thereto, extending a total distance of
approximately 1025 feet ("Facilities"), located as shown on Exhibit I, attached
hereto and incorporated herein by reference. This water main shall be subject to
pro-rata reimbursement in accordance with this Agreement.
Prior to beginning construction of Facilities, Property Owner shall submit
payment to the City in the amount of $18,962.50, thereby funding 50% of the cost
of 1025 feet of water line as described in Exhibit I. The Property Owner shall
obtain at Property Owner's sole cost and expense any necessary easements. The
City shall design and install the water line, shall obtain all necessary permits and
licenses and ~hall survey and prepare documentation for any required easements.
If Property Owner is unable to acquire needed easements, Property Owner 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
Property Owner shall be assigned to City, if not taken in City's name, prior to
acceptance of the Facilities; and Property Owner warrants clear title to such
easements and will defend the City against any adverse claim made against such
title.
The cost for the design, construction, and installation of the Facilities subject to pro-
rata reimbursement is:
$18,962.50 (Property Owner cost) or $18.50 per linear foot (1025
linear feet of Facilities)
and
$18,962.50 (City cost) or $18.50 per linear foot (1025 linear feet of
Facilities)
The City has established cost for the project, which has been agreed upon by the
Property Owner, in the amount of $37,925.00. The City will collect pro-rata for
all connections of properties abutting and adjacent to both the off-site and
perimeter portions the water line improvement described in this Agreement. Pro-
rata charges shall be $37.00 per linear foot. Pro-rata reimbursements to the
Property Owner shall be in the amount of $18.50 per linear foot regarding pro~rata
charges received by the City; SUBJECT HOWEVER to the limitation that total
payment(s) to be made by the City under this Agreement to Property Owner
amount to, and are limited to a total of $8,315.90; that is the City and Property
Owner shall each receive 50% of each pro-rata payment made to the City, until
such time as the 50% share of the Property Owner, in the amount of $8,315.90,.
has been fully paid. Thereafter, after the Property Owner has been repaid the
amount of $8,315.90, the City shall solely retain all further pro-rata charges
received from persons connecting to the Facilities.
After title to the Faculties have vested in the City, the City shall collect a pro-rata
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 pro-rata charges, the City shall transfer the applicable amount collected
to Property Owner in accordance with the provisions of Paragraphs 3 and 5 of this
Agreement.
The City shall transfer to Property Owner 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 Property Owner an amount
of funds in excess of $8,315.90. Once the Property Owner has received the
maximum amount of reimbursement, $8,315.90, the City shall then continue to
collect pro-rata charges to recover the City's remaining portion of expenditures
excluding any costs associated with oversize participation; and no further
payments shall be made to the Property Owner. The Property Owner and the City
also recognize the possibility that no one will seek to connect to the Facilities
described in this Agreement for a period of time for twenty (20) years; in which
case, the Property Owner and the City each recognize the risk that they will
receive no funds pursuant to this Agreement.
The parties hereto recognize that the Facilities subject to this Agreement are
necessary to provide water service to the Property Owner's property. The City
may decide that it will participate in the cost of funding a water main that would
provide greater water capacity than the Facilities Property Owner is required to
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install. If the City elects to oversize the 8-inch water line to a 12-inch water line,
any additional cost and expense will be borne solely by the City. The pro-rata
charges to be collected and transferred to Property Owner shall be based on the
terms of this Agreement, as though the Facilities subject to this Agreement were
installed.
The pro-rata charges to be collected by the City and transferred to Property
Owner in accordance with the ordinances of the City and this Agreement are
intended to reimburse the Property Owner for the Property Owner's share of the
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 solely
from those pro-rata funds received from any persons connecting to such Facilities.
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 Property Owner
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.
All notices, payments or communications to be given or made pursuant to this
Agreement by the parties hereto, shall be sent to Property Owner at the business
address given above and to the Assistant City Manager of Utilities for the City at
the address given above.
10.
The Property Owner 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
Property Owner, its officers, agents, employees, invitees, contractors or other
persons with regard to the performance of this Agreement; and Property Owner
will, at its own cost and expense, defend and protect the City against any and all
such claims and demands.
11.
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.
12. Property Owner shall not assign this Agreement without the express written
consent of the City.
13. 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. This Agreement shall be
governed by and construed in accordance with the laws of the State of Texas.
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14. This Agreement shall be effective for a period of twenty (20) years from the date
Facilities are accepted by the City, or until Property Owner has been paid all
allowable reimbursable pro-rata charges for the Facilities, totaling $8,315.90,
whichever event occurs first; provided, however, should Property Owner 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 January, 200~.~-
"CITY"
CITY OF DENTON, TEXAS
Michael A. Conduff, City Ma~_~
ATTESTED BY:
JENNIFER WALTERS, City Secretary
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, City Attorney
"PROPERTY OWNER"
~ NEIC~BORS
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