RES 2003-40TOWN OF TROPHY CLUB
RESOLUTION NO. 2003 - 40
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, APPROVING A CONTRACT FOR THE
TRANSFER OF STORM DRAINAGE FACILITIES FROM TROPHY
CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TO THE TOWN OF
TROPHY CLUB; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, The Town of Trophy Club (the "Town") is a general law
municipality of the State of Texas, located in Denton County, Texas; and
WHEREAS, Trophy Club Municipal Utility District No. 1 ("MUD1") is created
and operates pursuant to Article XVI, Section 59, of the Texas Constitution and the
general laws of the State of Texas, including Chapters 49 and 54 of the Texas Water
Code, as amended; and
WHEREAS, MUD1 is the owner of legal title to various water, sanitary sewer,
storm drainage, and related utility facilities located within its boundaries; and
WHEREAS, with regard to storm drainage facilities, MUD1 has historically
constructed, owned and maintained underground storm drainage facilities within its
boundaries located within the Town, from the curb inlets down through underground
storm drainage pipes and valves, and the Town has constructed, owned, and maintained
the streets and the surface storm drainage facilities within the Town boundaries; and
WHEREAS, because many of MUD 1's underground storm drainage facilities are
located beneath the streets or within street rights-of-way, the Town's street repair and
reconstruction projects have required work on MUD I's storm drainage facilities; and
WHEREAS, MUD1 and the Town have attempted to cooperate on projects
affecting both the streets and storm drainage facilities by coordinating their respective
governing boards, staff, engineers and contractors to review and approve plans for repair
and reconstruction and by sharing the costs of such projects in a reasonable manner; and
WHEREAS, Town and MUD1 believe that a transfer of the underground storm
drainage facilities to the Town will allow the Town to plan and complete the repair and
reconstruction projects with greater speed and costs efficiency for the benefit of the
property owners, taxpayers, users, and citizens of both the Town and MUD 1; and
WHEREAS, the Town has determined that it is in the best interest of the Town
and its residents for the Town to accept the transfer of the storm drainage facilities owned
by MUD 1 and to take ownership and maintenance responsibilities for those facilities; and
WHEREAS, a written Contract for Transfer of Storm Drainage Facilities
(hereinafter "Contract") from MUD 1 to Town memorializes the terms of the transfer, a
substantial copy of which Contract is attached hereto and incorporated herein as Exhibit
"A" to this Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS:
Section 1. That, based upon the foregoing premises, the Town of Trophy
Club, Texas, hereby determines that the acceptance of ownership of the storm drainage
facilities in accordance with the terms and conditions of the Contract for Transfer of
Storm Drainage Facilities, Exhibit "A" hereto, serves the best interests of its residents;
Section 2. That, the Town hereby approves the terms of the Contract and
authorizes the Mayor or his designee to execute all necessary documents to effect the
transfer;
Section 3. That, this Resolution shall become effective from and after its date
of passage in accordance with law.
PASSED AND APPROVED by the Town Coyxfcil � the T/o pf Trophy Club,
Texas, this 3rd day of November, 2003.
of Trophy Club, Texas
ATTE
Town Secretary
Town of Trophy Club, Texas
>�
c
[SEAL] ;`0 C:
APPROVED AS TO FORM
Town Attorney
Town of Trophy Club, Texas
`.'gayA,_
EXHIBIT A
CONTRACT FOR TRANSFER OF STORM DRAINAGE FACILITIES
1. Parties. This Contract for Transfer of Storm Drainage Facilities (the "Contract")
is between the following parties:
and
Trophy Club Municipal
Utility District No. 1 ("MUDI")
100 Municipal Drive
Trophy Club, TX 76262
Town of Trophy Club (the "Town")
100 Municipal Drive
Trophy Club, TX 76262
MUD is a municipal utility district created and operating pursuant to Article XVI,
Section 59, of the Texas Constitution, and the general laws of the State of Texas including,
particularly, Chapters 49 and 54 of the Texas Water Code, as amended. MUD is acting by and
through Dean Henry, the duly authorized President of MUD Is Board of Directors. This
Contract is executed by MUD in its capacity as the owner of legal title of the MUD Storm
Drainage Facilities as described below in this Contract.
The Town is a Type "A" General Law Municipality located in Denton and Tarrant
Counties, Texas, acting by and through Scott Smith, its duly authorized Mayor.
2. Background and Purposes.
a. MUD was created and organized in 1975 as Denton County Municipal
Utility District No. 1 with territory totally within Denton County (as Denton County existed at
that time). In late 1982 the territory of MUD was expanded by the annexation of land located
in Tarrant County, and the name of MUD1 was changed to Trophy Club Municipal Utility
District No. 1 effective as of April 1, 1983.
b. MUD is the owner of legal title to various water, sanitary sewer, storm
drainage, and related utility facilities located within its boundaries. The utility facilities owned
by MUD 1, as well as the similar utility facilities owned by Trophy Club Municipal Utility
District No. 2 ("MUD2"), are currently (since October 4, 2000) operated by an administrative
agency known as the Trophy Club Master District (the "Master District"). The Master District
has been established by an interlocal contract between MUDI and MUD2 pursuant to Chapter
-1-
791 (the Interlocal Cooperation Act) of the Texas Government Code to jointly provide
governmental functions and services for both MUD 1 and MUD 2. MUD 1 and MUD2 (and their
predecessors) were created, organized, and began their operations before the Town existed.
C. The Town was incorporated and organized following an election of voters
held on January 19, 1985, but MUD 1 and MUD2 have continued to exist and operate along with
the Town.
d. With regard to storm drainage facilities, MUD 1 and MUD2 historically
have each constructed (or caused to be constructed), owned, and maintained (or caused to be
maintained) the underground storm drainage facilities within that part of their respective
boundaries located within the Town, from the curb inlets down through underground storm
drainage pipes and vaults, and the Town has constructed (or caused to be constructed), owned,
and maintained (or caused to be maintained) the streets and the surface storm drainage facilities
within the Town boundaries. (Note: MUD 1 does not own or maintain any of the underground
storm drainage facilities within the area of MUD known as Solana - Westlake, and which is
located within the boundaries of the Town of Westlake).
e. Within recent years the Town has performed a number of street repair and
reconstruction projects to correct and maintain the streets in the Town. Because many of
MUD Fs inlets and underground storm drainage facilities are located beneath the streets or within
street rights-of-way, the Town's street repair and reconstruction projects have required work on
MUDI's storm drainage facilities. In at least some locations it appears that the need for street
repairs or reconstruction has been caused or aggravated by the need for repairs to the
underground storm drainage facilities. On other locations the underground storm drainage
facilities appear to be in good condition, but the construction plans of the Town have required or
proposed work that impacts the underground storm drainage facilities. The District and the
Town have attempted to cooperate on these projects through their respective governing boards,
staffs, engineers, and contractors to review and approve the plans for repair and reconstruction
work and to allocate between the Town and MUD 1, MUD2, or the Master District the
construction, engineering, and other costs of such projects in a reasonable manner. However,
disagreements have arisen between the parties regarding these projects. After discussing these
matters over many months, MUD 1 and the Town have determined that these disputes can best be
resolved and avoided and their respective interests and the interests of their respective property
owners, taxpayers, users, and citizens will best be served in the future by having MUD 1 transfer
to the Town the ownership and related operation and maintenance responsibility for all of the
underground storm drainage facilities owned by MUD 1.
f. The parties believe that the transfer of the underground storm drainage
facilities to the Town will allow the Town to plan and complete the repair and reconstruction
projects with greater speed and cost efficiency, for the benefit of the property owners, taxpayers,
users, and citizens of both the Town and MUD 1.
g. The storm drainage facilities being transferred by MUD to the Town
under this Contract constitute an insubstantial part of MUD Is utility system and the disposition
of this portion of the utility system will not substantially impair the revenues or operations of
MUD I's utility system. Because MUD 1 no longer intends to provide storm drainage facilities
and services, the storm drainage facilities being transferred to the Town are surplus property of
MUD 1 and are no longer needed by MUD 1.
h. This Contract is executed by the Town and MUD 1 as a transfer of
property from a district to a municipality pursuant to Section 49.226(b) of the Texas Water Code.
i. This Contract has been authorized by the governing board of each party to
this Contract. The governing board of each party to this Contract has determined that the terms
and conditions of this Contract are in the best interest of that party and are necessary or
advantageous to that party.
3. Agreement to Transfer. MUD agrees to transfer and convey to the Town, and
the Town agrees to receive from MUDI, all of the ownership rights, titles, and interests in and
related to the storm drainage facilities owned by MUD 1 and located within the boundaries or
extraterritorial jurisdiction of the Town. The general location of the storm drainage facilities
being transferred by MUD to the Town pursuant to this Contract is shown on the attached
Exhibit 1. The storm drainage facilities to be transferred and conveyed by MUD 1 to the Town
are referred to in this Contract as the "MUDI Storm Drainage Facilities."
The transfer and conveyance shall include a transfer of full legal ownership from
the MUD 1 to the Town of the pipes, inlets, vaults, access holes and covers, valves, equipment,
inventory of spare components, and other tangible items of property constituting a part of the
MUD 1 Storm Drainage Facilities, as well as an assignment from MUD 1 to the Town, to the
fullest extent allowed by law, of all easements, rights-of-way, permits, and other intangible rights
relating to the MUD Storm Drainage Facilities. An itemization of the tangible property
comprising the MUD Storm Drainage Facilities is attached to this Contract as Exhibit 2. An
itemization of the intangible rights relating to the MUD Storm Drainage Facilities is attached to
this Contract as Exhibit 3.
4. Consideration. In exchange for MUD 1's transfer of the MUD 1 Storm Drainage
Facilities to the Town, the Town agrees that, as of the effective date of this transaction, all
maintenance and operations of the MUD 1 Storm Drainage Facilities are transferred to and
assumed and thereafter shall be performed and paid for by the Town, and MUD 1 and the Master
District are relieved of and released from any further responsibility to operate and maintain
same. The parties agree that no other consideration will be paid by either party to the other for
the transfer of the MUD Storm Drainage Facilities. The parties agree that this is sufficient
consideration for this transaction.
-3-
5. Closing Documents. In exchange for the Town's execution of this Contract,
MUDI shall execute and deliver to the Town a Bill of Sale to the tangible assets comprising a
part of the MUDI Storm Drainage Facilities; an Assignment of the easements, rights-of-way,
permits, and other intangible rights comprising a part of the MUD 1 Storm Drainage Facilities;
and/or other instruments legally sufficient to convey to the Town full title to the MUDI Storm
Drainage Facilities, free and clear of all financial liens, claims, and encumbrances, but subject to
any and all existing and valid conditions, easements, restrictions, zoning ordinances, and other
governmental rules and regulations applicable to the MUDI Storm Drainage Facilities.
6. Condition of Items. It is expressly recognized that the MUDI Storm Drainage
Facilities were originally constructed in many different projects over a period of years dating
back to about 1976 and have been in continuous use and operation since their construction, with
normal maintenance. The Town has had the opportunity to inspect the items comprising the
MUDI Storm Drainage Facilities prior to execution of this Contract to satisfy itself regarding the
condition of the facilities. THE TANGIBLE ITEMS COMPRISING THE MUDI STORM
DRAINAGE FACILITIES ARE TRANSFERRED, CONVEYED, AND ACCEPTED "AS
IS" AND "WHERE IS." THE DISTRICT MAKES NO REPRESENTATION OR
WARRANTY REGARDING THE CONDITION OF THE MUDI STORM DRAINAGE
FACILITIES AND ALL IMPLIED WARRANTIES ARE EXPRESSLY DISCLAIMED.
As part of the conveyance, MUD 1 assigns to the Town all rights and remedies (if any) of MUD 1
under any construction contracts, payment and performance bonds, and manufacturer warranties
relating to the MUDI Storm Drainage Facilities. After the effective date of this Transfer, the
Town shall be solely responsible for compliance with any and all applicable governmental
regulations and requirements relating to the MUD 1 Storm Drainage Facilities.
7. Other Contracts. MUDI and the Town are parties to other contracts relating to
other subjects. This Contract does not amend such other existing contracts between the parties.
8. Cooperation. The parties to this Contract agree to cooperate to execute and
deliver any other documents that may be necessary or appropriate to implement the provisions of
this Contract, including appropriate communications with the Texas Commission on
Environmental Quality and other governmental agencies, contractors, engineers, and other
parties related to or affected by the MUDI Storm Drainage Facilities. If the Town requests
services from the staff of the Master District or use of the equipment operated by the Master
District to maintain the MUDI Storm Drainage Facilities after the effective date of this
Contract, then the Town will pay the Master District for such services and equipment usage on
terms negotiated by the Town and the Master District; which said terms are annexed hereto and
made part hereof as Exhibit 4.
9. Entire Agreement. This Contract represents the entire and integrated agreement
between the Town and MUD 1 regarding the MUD I Storm Drainage Facilities and supersedes all
prior negotiations, representations and/or agreements, either written or oral. This Contract may
me
be amended only by written instrument signed by both parties. Each of the Exhibits attached to
this Contract is made a part of the Contract for all purposes.
1.0. Venue. The laws of the State of Texas shall govern this Contract and each of its
terms and provisions, including but not limited to the rights and duties of the parties hereto, and
exclusive venue shall be in Denton County, Texas.
11. Severability. In the event that any portion of this Contract shall be found to be
contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid
and in full force and effect to the extent possible.
12. Non -Waiver. All rights, remedies and privileges permitted or available to either
party under this Contract or at law or equity shall be cumulative and not alternative, and election
of any such right, remedy or privilege shall not constitute a waiver or exclusive election of
remedy or privilege. Additionally, one instance or forbearance by either party in the
enforcement of any such right, remedy, or privilege against the other party shall not constitute a
waiver of such right, remedy, or privilege by the forbearing party. A default by either party
under this Contract shall not result in a forfeiture of any rights, remedies, or privileges under this
Contract by such defaulting party.
13. Signature Authority. The undersigned officer and/or agents of the parties hereto
are the properly authorized officials and have the necessary authority to execute this Contract on
behalf of the parties hereto and each party hereby certifies to the other that any necessary
resolutions extending such authority have been duly passed and are now in full force and effect.
[continued on next page]
M2
10.14 of I I HIM
LOCATION OF MUDI STORM DRAINAGE FACILITIES
[Location sketch or map to be provided by Trophy Club Public Works Dept or engineer showing
general location of the MUD Storm Drainage Facilities. Storm drainage facilities in Solana -
Westlake should not be included.]
2i
4
D
00
EXHIBIT 2
TANGIBLE PROPERTY BEING CONVEYED
[Itemization of quantities of pipe, vaults, valves, etc., that constitutes part of the MUDI Storm
Drainage Facilities being conveyed, as shown in GASB 34 records or in the Maximus Appraisal
Report dated 9/30/021
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•
INTANGIBLE RIGHTS RELATING TO MUD1 STORM DRAINAGE FACILITIES
Any and all approvals, permits, or easements relating to the storm drainage lines in or
serving Trophy Club MUD 1, but excluding the storm drainage facilities located within
Solana - Westlake (which are not owned by MUD I)
2. Any and all contract rights with contractors relating to the construction, maintenance or
operation of the MUD1 Storm Drainage Facilities
EXHIBIT 4
MASTER DISTRICT SCHEDULE OF CHARGES
The Town and MUDs will share equally the operation, maintenance and reserve for
replacement costs of the jet trailer, jet truck, and camera van. The operational and
maintenance costs are budgeted at $20,740 for FY 03-04
Given that this equipment has been used approximately 10% of the time in conjunction
with the storm sewers the Town would then be entitled to $8,296* of employee time
charged at the actual rate of the employees operating the equipment.
At an average pay and benefits rate of $16.15 per hour ($33,600 annual) times 3
employees (required crew) the Town would be entitled to 171 hours of equipment use
annually. ($8,296/($16.15 X 3)). Amount of time available to the Town would vary
based on actual operation and maintenance expense using computation below.
There will be no bills or statements sent until such time as annual use of the equipment
by the Town exceeds the agreed to amount. At which time the MUDs will bill the Town
for employee time only. The sharing of the cost will be accomplished in the same
manner as it is currently being done on all other areas where costs are shared. It will be
accomplished in the finance department and the finance department will track the amount
of hours the equipment is being used by the Town and generate a bill for employee
services at the point it becomes necessary.
*If the equipment is only used for 10% of the time on storm sewers, then the Town
should only be obligated to 10% of the costs. The difference should be applied to offset
MUD employee costs up to the 50% level.
ESTIMATED OPERATING COSTS X 50% = TOWNS PORTION
$20,740 X 50% = $10,370
$20,740 X 10% = $2,074
DIFFERENCE = $8,296
14. Execution and Date. This Contract is executed by the parties in multiple
counterparts. This Contract shall be effective for all purposes after Town enacts all necessary
ordinances, including but not limited to the appropriate fee ordinances, and such ordinances have
the force and effect of law.
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 1
By:
Dean Henr , Pres dent of
the Board of Dir tors
ATTEST:
1"'� A4o�4—=r� —
Jim Hase, Secretary of
the Board of Directors
APPROVED AS TO FORM:
Robert G. West
Attorney for TCMUD 1
H:\STOR\RGW\MUD\STORMSEW\CONTRACT.doc
W0111120031
Diane
PHY CLUB, TEXAS
Town Secretary
Patricia Adams, Town Attorney
T R®pyL
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STATE OF TEXAS )
COUNTY OF DENTON)
This instrument was acknowledged before me on/l � , 2003, by DEAN HENRY
as President of the Board of Directors of Trophy Club Municipal Utility District No. 1, on behalf
of said district.
[seal]
OOF
fi,R:"�R ANN MMGPNota y Pubi c
-j PLATE OP TEXASMy Cor r^ c �u }
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33
STATE OF TEXAS )
COUNTY OF DENTON)
��drj�-Public tate of Texas
Name Printe
Commission Expires:
This instrument was acknowledged before me on G' > �' , 2003, by SCOTT SMITH,
as MAYOR of THE TOWN OF TROPHY CLUB, a Texas general law municipality, on behalf
of said municipality.
[seal]
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Please return recorded instrument to:
Robert G. West
Whitaker Chalk Swindle & Sawyer, LLP
301 Commerce Street, Suite 3500
Fort Worth, TX 76102
99
1
Notary Public, StateTexas
Name Printed: -/ /L"C-
Commission Expires:a