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2004-252O INANCE NO. 2004- 5-A AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. FOR REIMBURSEMENT OF THE COSTS OF BUTLDING A 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 Quail Creek North, Ltd. ("Developer") commonly referred to as that real property described as the "Quail Creek Apartments" (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its exlraterritorial jurisdiction; and said Developer is required to provide such real property with adequate sewer service by designing, constructing, and installing a sewer main; and WHEREAS, the City of Denton, Texas may lawfully reimburse the Developer for the costs of the sewer main installation by the Developer based upon pro-rata charges paid to the City 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 Sewer Ma'm Pro-Rata Reimbursement Agreement Between the City of Denton, Texas and Quail Creek North, Ltd. (the "Agreement") to provide for the pro-rata reimbursement for the design, construction, and installation of 3,285 linear feet of 8-inch, 10-inch, 12-inch, and 15-inch diameter off-site sewer 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 Developer, Quail Creek North, Ltd. 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 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 ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S:\Our Documents\Ordinances\04\Sewer Main pro-Rata Reimb Oral-Quail Creek Apartments-2004.doc THE STATE OF TEXAS § COUNTY OF DENTON § SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. WHEREAS, Quail Creek North, Ltd. ("Developer"), whose business address is 5400 LBJ Freeway, Dallas, Texas 75240, wishes to develop and improve certain real property named the "Quail Creek Apartments" (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 sewer service by designing, constructing and installing a sewer main; and WHEREAS, the City of Denton, Texas ("City"), a municipal corporation, located at 215 East McKinney Street, Denton, Texas 76201, in accordance with its ordinances may reimburse Developer for the costs of the sewer main installed by the Developer based upon pro-rata charges paid to the City by persons subsequently connecting to the sewer main; NOW, THEREFORE, in consideration of their mutual promises, Developer and City agree as follows: Developer has designed, installed and constructed, 8-inch, 10-inch, 12-inch, and 15-inch diameter off-site sewer mains and all necessary appurtenances thereto, extending a total distance of approximately 3,285 feet ("Facilities"), located as shown on Exhibit I1, attached hereto and incorporated herein by reference. This off-site sewer main shall be subject to pro-rata reimbursement in accordance with this Agreement. Prior to beginning construction of Facilities, Developer shall obtain at Developer's 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 City prior to the beginning of construction. If Developer is unable to acquire needed easements, Developer shall provide 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 City against any adverse claim made against such title. 3. The estimated cost of the design, construction, and installation of the Facilities subject to pm-rata reimbursement is: $108,412.80 (Developer's cost) or $33.00 per linear foot for 3,285 feet of off-site Facilities See attached Exhibit III for cost breakdown. 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 any necessary information, documents, invoices, receipts or other records to verify the actual cost of the Facilities to the City. 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. After title to the Facilities have 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. Within thirty (30) days of the receipt of pro-rata charges, the City shall transfer the applicable amount collected to Developer. The City shall transfer to Developer pro-rata charges as are 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 any amount of funds in excess of the certified cost of the Facilities, as determined by the City in paragraph 4 above. The parties hereto recognize that the Facilities subject to this Agreement are necessary to provide sewer service to the Developer's property. 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. Should any court of competent jurisdiction determine that all or part of the City's ordinance on 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 will have no further obligations hereunder. 2 10. 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. 11. 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. 12. 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. 13. Developer shall not assign this Agreement without the express prior written consent of the City. 14. Any and all suits for any broach 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. 15. 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 ~2L/~' dayof ~~k~, 2004. "CITY" CITY OF DENTON, TEXAS Michael A. C'onduff, ~'~if~Vlanager ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY HERBERT L. PROUTY, CITY ATTORNEY "DEVELOPER" QUAIL CREEK NORTH, LTD. ATTESTED BY: By: ~ APPROVED AS TO LEGAL FORM: S:\Our Documents\Contracts\04\Sewer Main Pro-Rata Agrmt-Quail Creek Apts-2004.doe 4 Exhibit I Qual Creek Vicinity Map SITE / -~--~ /~.. DISCLAIMER ~is data hes been compiled for the City of Denton. Various official and unofficieJ sources were used to gather this informafi on. Every effor~ was made to ensure the accuracy of this data, however, no guarantee Is given or Implied as to the eccuracy of said data [8/24/2883 ll:lg 94027BB701 L.[jo~qO UTILITV P~ LLANO UTILITY SERVICES, INC. 3501 F.M. 21881 * Suite 245 * Corinth, Texas 76205 (940)270-8700 * Fax (940)270-8701 82/82 OFI~ITIg BRISAKDOWN Pete: 1 of 1 Project: (~UAIL CREEK APARTMENTS ' Date: 10/23/03 .... CITY OF DENTON, TEXAS By: Cocb~ Stovall '/ Sob #: SANITARY SEWER . 4' DIAMETER MANHOLE 9 EA $ 1,775.00 l$15,975.00 15" SDR-35 PVC SEWER PIPE 853 LF $ 27.00 $23,031.00 · 12" SDR-35 PVC SEWER PIPE 527 LF $ 26.00 $13,702.00: 4. 10" SDR-35 PVC SEWER PIPE 1000 LF $ 21.00 $21,000.00 5. B" SDR-35 PVC SEWER PIPE 305 LF $ 17.25 $! 5,611.25 6. CONNECT TO EXISTING I EA $ I~175.00 $1,175.00 7. SEWER '~ESTINO 32B5 ILF $ 0.85 $2,792.25 8. TRElqCH SAFETY 3285 LF $ 0.30 $9S5.50 SUBTOTAL SANITARY .~KWER $94,272.00 WATER 1. CAST IRON FrI'riNos 0.5 EN $ 2~200.00 $1,100.00 2. 12" OATE~/'ALVE 4 EA $ 1,425.00 $5~700.00 3. 12" DI~ PVC WATERPIPE 1925 LF $ 24.50 M7~162.50 4. INSTALL 12" PVC THKOU,.G.H SLEEVE 250 LF $ 12.00 $3,000.00 5. Il, BORE 40 LF $ ' 175,00 $7r000.00 61 CONNECT TO EXISTING .. 1 EA $ 1,100.00 $1rl00.00 '~ WATER TESTINO 1925 LF $ 0.25 $481.25 $. TRENCH SAI~ETY 1925 LP $ 0.15 ;285.75 StrffrOTAt~'WAT~a ,_ SUBTOTAL SANITARY. SEWER $94,272.00 SUBTOTAL WATER ;65,$32.50 GILAND TOTAL $160,104.30 . NOTE:. PLEASE CALL IF YOU HAVE ANY QUESTIONS. Project Manager/Estimator Direct: 940-270-5703 Cell: 214-636-3468 Email: cstovsll~llanoutility.com EXHIBIT 3 Sanitary Se~er Developers Cost 15% for engineering $ 94,272.00 $ 14,140.80 Total $ 108,412.80