2002-182O INANCE NO.
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 PULTE HOMES FOR
REIMBURSEMENT OF THE COSTS OF BUILDING 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 Pulte
Homes ("Developer") commonly referred to as that real property described as The Vintage,
Phase One-A (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
Developer is required to provide such real property with adequate sewer service by desi~tming,
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 Code of Ordinances of the City of
Denton, Texas {}34-118{b)(3); NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the City Manager is authorized to execute a Sewer Main Pro-Rata
Reimbursement Agreement Between the City of Denton, Texas and Pulte Homes (the
"Agreement") to provide for the pro-rata reimbursement for the design, construction, and
installation of 4,112 linear feet of 18-inch and 24-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, Pulte Homes
entering into a Development Contract with the City of Denton, Texas in accordance with Chapter
34 of the Code of Ordinances of the City of Denton, Texas.
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 &U~ ,2002.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: ..... ~6
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
S:\Our Documenls\Ordinances\02~S ewer Main Pro-Rata Reimb Ord - Pulta Homes-Vintage.doc
THE STATE OF TEXAS §
COUNTY OF DENTON §
SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND PULTE HOMES
WHEREAS, Pulte Homes, ("Developer"), whose business address is 1431 Greenway
Drive, Suite 700, Irving Texas 75036-2484 wishes to develop and improve certain real
property named The Vintage, Phase One-A (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 desi~tming, constructing and installing a sewer main; and
WHEREAS, the City of Denton ("City"), a municipal corporation, located at 215 East
MeKinney, 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 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, 18-inch and 24-inch diameter
off-site sewer mains and all necessary appurtenances thereto, extending a total
distance of approximately 4,112 feet ("Facilities"), located as shown on Exhibit
II, 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
review 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 pro-rata reimbursement is:
$197,649.50 (Developer cost) or $48.07 per linear foot (4,112
linear feet of off4ite Facilities)
$46,309.50 (City participation cost)
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.
5. 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.
6. 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.
The parties hereto recognize that the Facilities subject to this Agreement are
necessary to provide sewer service to the Developer's property. The City has
decided that it will participate in the cost of funding a sewer main that would
provide greater sewer capacity than the Facilities Developer is required to install.
The City and Developer will enter into a separate Sewer 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 through the Facilities subject to the Agreement were
installed.
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
2
charge or collect the pro-rata charges for connection to the Facilities, and will
have no further obligations hereunder.
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 fi.om 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, contactors 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 written consent of
the City.
14. 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.
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 /¢~--~ day of~-n(.~fj(.~ ,2002.
Michael A. Conduff, CitykManager
ATTESTED BY:
Jennifer Walters, City Secretary
APPROVED AS TO LEGAL FORM:
Herbert L. Prouty, City Attorney
ATTEST:
PULTE HOMES
A Corporation
BY: '~d~
BY:
APPROVED AS TO LEGAL FORM:
BY:
S:\Our Documents\Contracts\02~Scwcr Main Pro-Rata Ag~mt-Pulte Homes.doc
4
Vintage Location Map
//~ VINTAGE
CITY OF DENTON o
WATER UTILITY
0.25
0.5
Miles
EXHIBIT I
~ Vintage Off-Site Sewer ~ ·
~ / // ; ' / I'~ ~ ~ -' I
,/r' ~'0F 24~RLINE ~r ]
..................... /~ ............ /
. ~112' OF TOTAL SEWERLINE
V~iI N TAG E DEVELOPMENT
CITY OF DENTON
WATER UTILITY l~l EXHIBIT II