HomeMy WebLinkAboutOrdinance No. 424 · 'Y OF THE ,COLO~NY, TEXAS
ORD,NANCE NO.
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS
AUTHORIZING THE MAYOR OF THE CITY TO ENTER INTO A
CONTRACT AND MUTUAL AGREEMENT TO EFFECTUATE
CONSOLIDATION OF THE COLONY MUNICIPAL UTILITY DIS-
TRICT NO. 1 OF DENTON COUNTY, TEXAS INTO THE CITY OF
THE COLONY; AUTHORIZING THE MAYOR TO ENTER INTO A
SUPPLEMENTAL CONTRACT AND MUTUAL AGREEMENT TO
EFFECTUATE CONSOLIDATION OF THE COLONY MUNICIPAL
UTILITY DISTRICT NO. 1 OF DENTON COUNTY, TEXAS INTO
THE CITY OF THE COLONY; AUTHORIZING THE MAYOR TO
ENTER INTO A CONTRACT AND MUTUAL AGREEMENT TO
DISSOLVE THE COLONY MUNICIPAL UTILITY DISTRICT NO. 1
OF DENTON COUNTY, TEXAS; RATIFYING, APPROVING AND
AFFIRMING ALL PREVIOUS ACTS OF THE CITY COUNCIL AND
THE MAYOR RELATING TO EXECUTING THE ABOVE LISTED
CONTRACTS AND MUTUAL AGREEMENTS; PROVIDING A SE-
VERABILITY CLAUSE; DECLARING AN EMERGENCY AND PRO-
VIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
Section 1. That the Mayor of the City of The Colony, Texas (the
"City") is hereby authorized and empowered to enter into the following contracts
and mutual agreements, copies of which are attached hereto and incorporated
herein:
A. A Contract and Mutual Agreement to Effectuate Consolidation of
The Colony Municipal Utility District No. 1 of Denton County, Texas Into the
City of The Colony (Exhibit "A");
B. A Supplemental Contract and Mutual Agreement To Effectuate
Consolidation of The Colony Municipal Utility District No. 1 of Denton County,
Texas Into the City of The Colony (Exhibit "B"); and
C. A Contract and Mutual Agreement To Dissolve The Colony
Municipal Utility District No. 1 of Denton County, Texas (Exhibit "C").
Section 2. That all acts of the City Council and the Mayor heretofore
taken relative to the above described Contracts and Mutual Agreements are
hereby ratified, approved and affirmed.
Section 3. If any section, article, paragraph, sentence, clause, phrase or
word in this ordinance, or application thereto any person or circumstance is held
invalid or unconstitutional by a Court of competent jurisdiction, such holding
shall not affect the validity of the remaining portions of this ordinance; and the
City Council hereby declares it would have passed such remaining portions of the
ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
Section 4. The fact that the present ordinances and regulations of the
City of The Colony, Texas, are inadequate to properly safeguard the health,
safety, morals, peace, and general welfare of the inhabitants of the City of The
Colony, Texas, creates an emergency for the immediate preservation of the
public business, property, health, safety, and general welfare of the public which
requires that this ordinance become effective from and after the date of its
passage and it is accordingly so ordained.
PASSED AND_,A,~.PROVED/~ the City Council of the City of The Colony,
Texas on this the ~/'r'~ day of ( .,3m~,.~_~.__~ , 1986.
o,t
y ~., y ~ Colony, Texas --
ATTE ~
~~ity of The Colony, Texas
[SEAL]
APPROVED AS TO FORM:
City Attorney, City of The Colony, Texas
STATE OF TEXAS )
)
COUNTY OF DENTON )
CONTRACT AND MUTUAL AGREEMENT TO EFFECTUATE
CONSOLIDATION OF THE COLONY MUNICIPAL UTILITY
DISTRICT NO. 1 OF DENTON COUNTY, TEXAS
INTO THE CITY OF THE CODONY
WHEREAS, The Colony Municipal Utility District No. 1 of
Denton County, Texas (hereinafter referred to as the
"District"), a political subdivision of the State of Texas
organized and existing under the laws of the State of Texas
and Chapter 54 of the Texas Water Code, was created by an
Order entered by the Texas Water Commission in 1974; and
WHEREAS, the City of The Colony (hereinafter referred to
as the "City") is a Home Rule City and a political subdivision
of the State of Texas operating under the statutes governing
Home Rule Cities and its Home Rule Charter, adopted pursuant
to Article 11, Section 5 of the Texas Constitution, that was
created in January of 1977; and
WHEREAS, both the District and the City are located
within Denton County, Texas; and
WHEREAS, the continuing growth of the boundaries of the
City since its incorporation has created a relationship
between those boundaries and those of the District wherein the
City believes that it can now, or by the taking of action
available to it now can within a relatively short period of
time, cause the involuntary abolition of the District pursuant
to Art. 1182c-5, V.T.C.S., and
WHEREAS, while the District has resisted the threats of
th~ City to cause the abolition of the District, the District
has recognize~' the likely ability of the City inevitably to
abolish the District and cause its consolidation; and
WHEREAS, the District and the City each recognize that an
orderly, systematic abolition of the District and consoli-
dation of its assets, liabilities, and powers into the City is
preferable for bondholders, personnel of the District, and the
community to involuntary abolition and consolidation; and
WHEREAS, in order to accomplish such a systematic and
orderly abolition and consolidation and to protect the
interest of the District's bondholders and others without
uncertainty as to their rights, the City and the District have
entered into this Agreement.
NOW, THEREFORE, WITNESSETH:
The parties, the District and the City, do hereby
agree and contract as follows:
1. All of the matters stated in the preamble are found
to be true and correct and are incorporated herein as if
copied in their entirety.
5. Abolition of the District and consolidation into the
City shall take place (herein called the "date of
consolidation"), unless otherwise agreed to in writing by the
parties, on the first October 1 following the declaratory
judgment becoming a final, non-appealable judgment, but in no
event earlier than October 1, /q~ · The parties shall work
in good faith to cause the date of consolidation to be October
1,.~g_~_ but sh.all not be responsible to each other for the
failure to attain such a date.
6. Between such time as the CoRrt shall enter its
declaratory judgment and the date of consolidation, the
parties agree as follows:
a) The City shall have reasonable access to the books
and records of the District for the purposes of
informing itself of all the assets, liabilities,
policies and actions of the District; and
b) The District shall (itself or through a contractor)
prepare and deliver to the City a current itemized
list of all of the District's assets, potential or
existing liabilities, real property, easements,
agreements and contracts (which shall be updated as
of the date of consolidation); and
c) The District shall keep the City informed of its
actions; and
d) The District shall inform the City of all income and
disbursements.
7. The District and the City agree, as follows:
a) At 9:00 A.M. on the date of consolidation the
District shall be abolished and dissolved and all
properties and assets of the District shall vest
immediately in the.City, and the City shall thereby
assume and become liable for all bonds and other
obligations for which the District is liable. The
City shall thereafter perform all services and func-
tions theretofore performed or rendered by the
District, shall thereafter levy and cause to be
collected upon all taxable property within the City
taxes sufficient to pay principal of and interest on
the assumed bonds and other obligations in
accordance with their terms as they become due and
payable, and shall receive all water, sewer and
other revenues charged by the District prior to the
date of consolidation.
b) The District Manager of the District at the date of
consolidation shall assume the position of
Assistant City Manager of the City at a salary not
below 95% of the salary of the City Manager, plus
fringe benefits.
c) . The other personnel of the District shall become
personnel of the City in accordance with the provi-
sions of the Personnel Protocol set forth as Exhibit
A.
d) The City will honor the agreement set forth as
Exhibit B.
8. The District agrees to deliver documents,
schedules, facts and other information to the City as and when
required by this Agreement. However, the City acknowledges
that the District, its Board of Directors, its employees,
agents and consultants, including its attorneys, make no
warranty or representation of any nature that any of the
documents, schedules, facts, potential liabilities, or other
information is complete, accurate, not misleading, binding or
not binding upon the District, and the City discharges and
releases all said parties from any claim of liability or
damage arising out of the abolition o~ the District, its
consolidation into the City, or for any contract assumed by
the City or claimed to be assumed by others. Upon the date of
consolidation, the City agrees to indemnify, save and hold
harmless the District, its present and former directors, its
former employees and agents and consultants (including its
attorneys) from any and all liability, damage or expense
(including attorneys' fees as incurred) for any claim of any
nature whatsoever made against them or any of them by any
person or entity for actions by or on behalf of the District.
9. The parties agree to sign all necessary and required
deeds, instruments, bills of sale and otherwise to satisfy all
legal and technical requirements to effectuate the dissolution
and consolidation of the District in accordance with this
Agreement, and upon consolidation the District's Board
President and~r the District Manager and the City Mayor
and~r the City Manager will be authorized and directed to
execute all necessary and required documents in accordance
with this Agreement as approved by their respective legal
counsel.
10. Venue for any proceedings under.this Agreement shall
be in the County of Denton, Texas.
11. If any section, article, paragraph, sentence,
clause, phrase or word in this Agreement, or application
thereto any person or circumstances is held invalid or un-
constitutional by a Court of competent jurisdiction, such
holding shall affect the validity of the remaining portions of
this Agreement, and this Agreement shall be null and void;
provided, however, nothing shall prohibit the parties from (a)
entering into a new agreement not affected by the invalid
provisions, or (b) agreeing in writing to abide by this
Agreement without the invalid provisions.
EXEOUT~ this /_~___~day of ~ 1986. CI~ OF THE COLOR
THE COLOR MUNICIPAL UTILI~
DISTRICT NO. 1 OF DENTON
PERSONNEL PROTOCOL
CONSOLIDATION OF THE COLONY MUNICIPAL UTILITY DISTRICT NO. 1
OF DENTON COUNTY, TEXAS INTO THE CITY OF THE COLONY
Principles of Consolidation Relative to District Employees
I. Ail employees of The Colony Municipal Utility District
No. 1 of Denton County, Texas (the District) shall be-
come employees of the City of The Colony (the City) on
the date of consolidation with full credit for their
years of service at the District for p~rposes of senior-
ity and other employee benefits at the City.
II. All health and life insurance benefits of the City shall
be made available immediately upon consolidation to all
District employees. The City upon receipt of a report
from Mr. Bob Barry of Southwestern Life Insurance Company
that is to be submitted pursuant to a letter dated 1-24-86
from Janice Carroll, City Manager for the City, copy attach-
ed, shall commence to take all necessary steps to merge
the District's insurance plan into the City's insurance
plan in order to effectuate a smooth merger that will
afford the District's employees on the date of consoli-
dation all of the City's insurance benefits on a par
with the District's current insurance benefits.
III. All District employees on the date of consolidation shall
become members of the Texas Municipal Retirement System
(TMRS), and the City will take all necessary steps, includ-
ing but not limited to payments to said TMRS sufficient to
grant each District employee full credit for their tenure,
to be outlined in a report from TMRS in response to a letter
dated 1-24-86 from Janice Carroll, City Manager for the
City, copy of which is attached.
IV. All employees of the District will be employed initially
in the City's new Water Department. The District's District
Manager and the City's City Manager shall agree on the
precise placement and slotting of each employee prior to
the date of consolidation which report shall include comp-
ensation on the date of consolidation for each District
employee and shall be subsequently attached to this contract
as a supplement to Exhibit "A". The reports received from
Bob Barry of Southwestern Life Insurance Company and TMRS
pursuant to the attached letters from Janice Carroll shall
also be subsequently attached as supplements to this
Exhibit "A". All salaries, where necessary, as determined
by the District's District Manager and the City's City Manager
shall be adjusted but until the adjustment is accomplished,
the salaries shall remain in effect. No employee shall
receive a decrease in salary due to the consolidation.
V. The City agrees that those District employees who become
employees of the City shall not be required to live with-
in the city limits of the City as a condition of employment
with the City.
EXHIBIT "A"
The Colo u M n c pal U i ity D $trict No. 1
,'. _
August 23, 1985
Mr~ William M. Hall
~ District Manager
· THE COLONY M.U.D. #1
One Harris Plaza
The Colony, TX 75056
Dear Bill:
In consideration of your agreement to remain as District
Manager with knowledge of the uncertainty of the future of the
District, the District, by this letter, agrees that if your
employment with a successor to the District is terminated by
you or its successor, for any reason, within 18 months of the
commencement of your employment by the successor, you will
receive, on the date of termination, in a lump sum, an amount
equal to three (3) months compensation, in addition to other
accrued buL unpaid benefits. This amount will be calculated
based on your highust monthly salary within the year prior to
termination. All other conditions of employment shall remain
the same, an¢~, no such severances shall necessarily be
by the District upon any termination prior to a consolidation
or annexation of the District by The C.~ty.
This agreement is e~fective as of the {]ate set forth
above. The District specifically intends this liability to
be assumed by and binding on the District's successors or
assigns, including The City of The Colony, Texas.
Very truly yours,
TIIE COLONY ~UNICIPAL UTILITY DISTRICT
NO. 1 OF DENTON COUNTY, TEXAS
ACCEPTED:
WilliamS4. Hall
STATE OF TEXAS )
)
COUNTY OF DENTON )
CONTRACT AND MUTUAL AGREEMENT TO DISSOLVE
THE COLONY MUNICIPAL UTILITY DISTRICT NO. 1
OF DENTON COUNTY, TEXAS
WHEREAS, The Colony Municipal Utility District~No. 1 of Denton County,
Texas (the "District"), a political subdivision of the State of Texas (the "State")
organized and existing under the laws of the State and Chapter 54, Texas Water
Code Annotated, was created by the Texas Water Commission in 1974; and
WHEREAS, the City of The Colony, Texas ("The Colony"), a Home Rule City
and a political subdivision of the State operating under the statutes governing Home
Rule Cities and its Home Rule Charter, adopted pursuant to Article XI, Section 5,
Texas Constitution, was incorporated in 1977; and
WHEREAS, the City of Lewisville, Texas ("Lewisville"),. a Home Rule City
and a political subdivision of the State operating andre the statutes governing Home
Rule Cities and its Home Rule Charter, adopted pursuant to Article XI, Section 5,
Texas Constithtion, was incorporated in 19~7__~"~; and
WHEREAS, the City of Eastvale, Texas ("Eastvale"), a General Law City and
a political subdivision Of tile State operating under the statutes governing General
Law Cities, was incorporated in 1975; and
WItEREAS, the District, The Colony, Lewisville and Eastvale are all located
within Denton County, Texas; and
WHEREAS, the District lies partly within tile corporate limits of The Colony,
Lewisville and Eastvale, and partly in unincorporated areas of Denton County,
Texas; and
WHEREAS, the District, The Colony, Lewisville and Eastvale wish to enter
into a mutual ag'eeement pursuant to Article 1182e-5, Tex. Rev. Civ. Stat. Ann.,
whereby the District will be dissolved and The Colony will assume the District's
debts, liabilities and obligations, and ownership of the DistricUs properties and
assets; and
WHEREAS, tile District and The Colony entered into a CONTRACT AND
MUTUAL AGREEMENT TO EFFECTUATE CONSOLIDATION OF THE COLONY
MUNICIPAL UTILITY DISTRICT NO. 1 OF DENTON COUNTY, TEXAS, INTO THE
CITY OF THE COLONY (the "Agreement"), dated February 11, 1986, in order to
accomplish a systematic and orderly dissolution and consolidation of the District,
and to protect the interests of tl~e District's bondholders and all other interested
parties, and Lewisville and Eastvale are in agreement with the terms of the
Agreement.
NOW, THEREFORE, WITNESSETH: ~
The parties, the District, The Colony, Lewisville and Eastvale, do hereby
m~tually agree and contract as follows:
1. All of the matters stated in the preamble are found to be true and
correct and are incorporated herein as if copied in their entirety.
2. ~ All capitalized terms defined in the preamble have the same meaning
herein unless another meaning is specifically stated.
3. Dissolution and consolidation of tl~e District shall take place at the
time and in the manner set out in the Agreement (a copy of which is attached hereto
as Exhibit "Al.' and incorporated herein).
4. Upon said dissolution The Colony will assume the District's debts,
liabilities and obligations, and ownership of the District's properties and assets.
5. The boundaries of the District, The Colony, Lewisville and Eastvale
prior to dissolution are as shown on the map attached hereto as Exhibit "B" and
incorporated herein.
6. All the District's customers in areas outside the corporate limits of
The Colony shall be served by The Colony after dissolution. Customers in such areas
shall pay the usual and customary fees and assessments charged to customers
outside the corporate limits of The Colony. Lewisville and Eastvale agree to
execute the waive Release attached hereto as Exhibit "C" and incorporated herein,
which Release, among other matters, states that Lewisville and Eastvale waive any
participation in the law suit to be filed by The Colony and the District seeking a
final, non-appealable, Declaratory Judgment in connection with the dissolution and
consolidation of the District, provided no terms of this contract are altered or
changed without the written consent of Lewisville and the Colony.
8. Upon dissolution and consolidation The Colony discharges and'
releases the District, Lewisvilie and Eastvaie, including their respective employees,
agents, consultants and attorneys, from any claim of liability or damage arising out
of the dissolution of the District, its consolidation into The Colony, or for any
contract assumed by The Colony or claimed to be assumed by others, and will
indemnify, save and hold harmless the aforesaid from any and all liability, damage
or expense for any claim of any nature whatsoever made against them or any of
them by any person or entity for actions by or on behaif of the District.
9. If any portion of this Agreement is held invalid or unconstitUtionai by
a court of competent jurisdiction, such holding shall not affect the remaining
portions of this Agreement, and this Agreement shall remain in full force and effect.
Executed this ~ day of ~,~c.~ ,1986.
THE COLONY MUNICIPAL UTILITY
DISTRICT NO. i OF DENTON
COUNTY, TEXAS
Secretary, Board of Directors President, Board of Directors
CITY OF LEWISVII~LE
City~eeretary
· CITY OF E'ASTV~I~E
City Secretary Mayor
CiTY:OF THE COLONY
2. Subject only to the issuance of the final, non-
appealable judgment referred to in paragraph 3 and the time
provisions of paragraph 5, the District shall be abolished and
contemporaneously therewith have its assets and liabilities
assumed by and consolidated into the City in accordance with
the terms and conditions of this Agreement.
3. Upon execution of this Agreement and satisfaction of
the conditions set forth in paragraph 4 below, the District
~nd the City shall jointly institute an a~tion i~ the District
ourt of Denton County, Texas, pursuant to and in accordance
with Art. 717m-1, Tex. Rev. Civ. Stat. Ann. for a final, non-
appealable declaratory judgment (herein called the
"declaratory judgment") declaring:
a) the validity of this Agreement and the actions
contemplated thereby; and
b) the boundaries of the City and the consolidated
District upon consolidation; and
c) the status and security of the District's bond-
holders; and
d) the status of all areas currently within the
District (irrespective of the city in which such
area lies), including any unincorporated areas; and
e) the release and indemnity provision of paragraph 8
to be valid and binding; and
f) any other matters deemed reasonably appropriate for
inclusion therein.
The District and the City agree to pursue in good faith the
declaratory judgment but nothing shall require either party to
accept without objection or disapproval a declaratory judgment
which does not contain provisions protecting the District's
bondholders in a manner satisfactory to the District's Board
of Directors and upholding the terms and conditions of this
Agreement. Costs of litigation shall be divided equally
between the parties, except that attorneys' fees shall be
borne by the party incurring the same; provided, however, to
the extent that counsel for the District shall not have been
paid in full on the date of consolidation, the City shall
assume the obligation to pay counsel's fees and disbursements.
4. Prior to institution of the declaratory judgment
action, the parties shall (i) cooperate to cause, in a form
acceptable to the City and the District, one or more maps to
be prepared reflecting the boundaries of the District and the
City for. the purposes of revealing the extent to which, if
any, there are areas within the District which are within
unincorporated territory of Denton County and within
incorporated cities other than the City and (ii) reach an
agreement regarding (a) the disposition to be made of the
District's various funds upon consolidation and (b) the
approximate tax rate to be levied by the City in Fiscal Year
1987. In order to assist the parties in making these determi-
nations, the parties shall cause to be prepared and completed,
in a form acceptable to the City and the District, a report
reflecting the pro forma financial condition of the City and
District as a consolidated entity, including estimated tax
rates and fund balances.
June, 1986
CAPITAL IMPROVEmeNT PROGR~4
Page Four
LONG RANGE:
~rojected for F.Y. 1989
Expansion of Wastewater Treatment Plant
Estimated At $2,600,000.00
TOTAL ESTIS~TE OF TRREE YEAR CAPITAL 'IMPROVEMENT PLAN
$4,135,600.00
WMH/dwo
WAIVER OF SERVICE OF CITATION AND
PARTICIPATION IN LAW SUIT
The City of Lewisville, Texas does hereby waive service of citation and
participation in the Declaratory Judgment Suit filed by the City of The Colony,
Texas and The Colony Municipal Utility District No. 1 of Denton County, Texas
in the District Court of Denton County, Texas, which suit is filed pursuant to
Tex. Rev. Civ. Stat. Ann. Art. 717m-1 (Vernon), as amended, and is the subject
of this a Contract between the cities of Lewisville, Eastvale and The Colony and
The Colony Municipal Utility District No. 1, the style of said case being City
of The Colony, et al. v. All Taxpayers, et al., Cause No.
This waiver and release may be filed in the Court records of said case and
constitutes an appearance by the said City of Lewisville conditioned upon no
terms of the Contract being modified or altered without the written consent of
the City of Lewisville.
Executed this __ day of , 1986.
CITY OF LEWISVILLE, TEXAS
By:
Mayor
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned authority on this day personally appeared
, Mayor of the City of Lewisville, Texas, a
Texas Municipal Corporation known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed
the same on behalf of said City, for the purposes and consideration therein
expressed.
Given under my hand and seal of office this day of
A.D., 1986. '
Notary Public, State of Texas
My Commission Expires:
[SEAL]
EXHIBIT C
WAIVER OF SERVICE OF CITATION AND
PARTICIPATION IN LAW SUIT
The Town of Eastvale, Texas does hereby waive service of citation and
participation in the Declaratory Judgment Suit fi]ed by the City of The Colony,
Texas and The Colony Municipal Utility District No. 1 of Denton County, Texas
in the District Court of Denton County, Texas, which suit is filed pursuant to
Tex. Rev. Civ. Stat. Ann. Art. 717m-1 (Vernon), as amended, and is the subject
of this a Contract between the cities of Lewisville, Eastvale and The Colony and
The Colony Municipal Utility District No. 1, the style of said case being City
of The Colony, et al. v. All Taxpayers, et al., Cause No.
This waiver and release may be filed in the Court records of said case and
constitutes an appearance by the said Town of EastvaIe conditioned upon no
terms of the Contract being modified or altered without the written consent of
the Town of Eastvale.
Executed this __ day of , 1986.
TOWN OF EASTVALE, TEXAS
By:
Mayor
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned authority on this day personally appeared
, Mayor of the Town of Eastvale, Texas, a
Texas Municipal Corporation known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed
the same on behalf of said Town, for the purposes and consideration therein
expressed.
Given under my hand and seal of office this day of
A.D., 1986. '
Notary Public, State of Texas
My Commission Expires:
[SEAL]
EXHIBIT C
STATE OF TEXAS
COUNTY OF DENTON
SUPPLEMENTAL CONTRACT AND MUTUAL AGREEMENT
'TO EFFECTUATE CONSOLIDATION OF THE COLONY
MUNICIPAL UTILITY DISTRICT NO. 1 OF DENTON
COUNTY, TEXAS INTO THE CITY OF THE COLONY, TEXAS
WHEREAS, a Contract and Mutual Agreement to Effectuate Consolidation of
The Colony Municipal Utility District No. 1 of Defilo~ County, Texas (the "District")
into the City of The Colony (the "City") (said Contract and Mutual Agreement
hereinafter referred to as the "Contract") has heretofore been entered into between
the District and the City on February 11, 1986; and
WHEREAS, the Contract requires, in Paragraph 4 thereof, that prior to the
institution of the declaratory judgment action outlined in Paragraph 3 of the
Contract, the District and the City would have accomplished to the satisfaction of
the parties those items enumerated in Paragraph 4; and
WHEREAS, this Supplemental Contract and Mutual Agreement To Effectuate
Consolidation of The Colony Municipal Utility District No. 1 of Denton County,
Texas into the City of The Colony (the "Supplemental Contract") is entered into
between the District and the City for the purpose of acknowledging that those
requirements enumerated in Paragraph 4 of the Contract have been accomplished
and to authorize the institution of the declaratory judgment action.
NOW, THEREFORE, WITNESSETH:
The District and the City do hereby contract and agree as follows:
1. That all of the matters stated in the above and foregoing preamble
are found to be true and correct and are incorporated herein as if copied herein in
their entirety.
2. That the District and the City hereby acknowledge and agree that
those items outlined in Paragraph 4 of the Contract have been accomplished to the
mutual satisfaction of the District and the City, which items are as follows:
A. One or more maps have been prepared reflecting the
boundaries of the District and the City which reveal the extent to which, if any,
there are areas within the District which are within unincorporated territory of
Denton County and within incorporated cities other than the City;
B. An agreement has been reached regarding the disposition to
be made of the District's vJrious funds upon consolidation, which agreement is as
follows:
The City of The Colony hereby agrees from and after the
effective date of the consolidation of the District and the City
that the hereinafter described District funds will be used and
expended solely for the following purposes: (1) improvement,
maintenance and refurbishing of water, sewer and drainage
projects; (2) reduction, retirement or reservation for reduction
and retirement of any of the outstanding bonds of the District
issued by the District; and (3) operation and maintenance of
the water and sewer enterprise, including, but not limited to,
the accomplishment of those projects set forth in Exhibit "A"
attached hereto to the extent such projects are not otherwise
accomplished. The District funds that are to be limited in
such a manner are as follows: a) bond proceeds and interest
thereon from previously issued District bonds; b) proceeds
from the sale of authorized but unissued bonds of the District;
and c) any funds in the enterprise fund that are in excess
of two (2) months operating expense reserve.
C. An agreement has been reached on the tax rate to be levied
by the City in fiscal year 1987, which tax rate to be levied is:$.73 per $100.00
valuation; provided, however that the City Council shall not be restricted or
limited from setting the tax rate and shall have full power and authority to
raise or lower the said tax rate as provided by State law and its Home Rule
Charter.
D. A report reflecting the proforma financial condition of the
City and .District as a consolidated entity, including estimated tax rates and fund
balances has been prepared and completed in a form acceptable to the District
and the City by Deloitte, Haskins & Sells.
3. That the declaratory judgment action outlined and d~scribed in
Paragraph 3 of the Contract is authorized to be instituted by the District and
the City and maintained to final judgment.
4. That this Supplemental Contract is supplementary to the Contract
and is~not intended to amend or change any para~-raph, sentence, word or
phrase of the Contract.
EXECUTED this the day of , 1986.
CITY OF THE COLONY, TEXAS
City Sectary Mayor//City~ o~Co~ony, Te~'as
THE COLONY MUNICIPAL UTILITY
DISTRICT NO. 1 OF DENTON COUNTY,
TEXAS
By:
Secretary President
June, 1986
CAPITAL IMPROVEMENT PROGRAM
These projects are broken into three (3) categories; Immediate,
Projected for F.Y. 1987, and Long-Range (3 years).
Immediate
Drainage Ditch, North Colony to ~4iller - clean, grade slopes and.
rechannelize proposal in-hand @ $55.00/hour, to be staged over
a five (5) week period.
Estimated at $11,000.00
Misc. Drainage Area Rip-Rap - crushed rock (12") delivered from
Texas Industries, Bridgeport @ $300.00/20 Tons.
PROJECT AREAS FOR RIP-RAP:
O'Hare Circle
Ragan Road
Aquatic Park (Parking Lot)
Branch Hollow/Arbor Glen
Rearn& Squires
Estimated at $ 3,000.00 (200 Tons)
John Yates/Stanley - Storm sewer wash out - inlet overloaded flume
and fence, (i.e. North Colony Blvd.)
Estimated at $ 9,000.00
O'Hare Circle - Headwall seoaration, install 9:1 Tinhorn, 8 foot
section. ~ -
?stimated at $ 400.00
Paige Road Inlet at Medical Center - Concrete Work
Estimated at $ 200.00
Paige ~[edical Drainage - ~.nstall four (4) flum'es to extend to drain
bed.
Estimated at $ 2,000.00
June, 1986
CAPITAL IMPROVEI~E~T ?ROGRAM
Page Two
Immediate (Con't)
Replace Headwall Washed out Tinhorn Sections & Concrete Abutmentsl
PROJECT AREAS:
Ragan Road
Augusta
Squires
Estimated at $ 5,000.00
Purchase of Tractor & Sidemo~.~er - Drair3ge areas and Maintenance of
Road areas (FM 423, S.H. 121)
Estimated at $ 30,000.00
TOTAL FOR IMMEDIATE PROJLCTS ........ $ 60,600.00
Projected for P.Y. 1987
Well Site #2 remove, repair as necessary well pump, motor and
shaft (specs prepared)
Estimated at $ 55,000.00
Elevated Storage Tank #1 inspect, repair and paint
Estimated at $ 80,000.00
Paige 5Iedical/Pai~e to Miller - install pilot channel, 12' ft. width.
Estimated at $ 52,000.00
Repair of Roadway at Wastewater Treatment Plant - scarify & blacktop.
}~$timated at~ $ 3,500.00
Repainti~g exterior of Elevated Storage Tank #1 including Logo.
Estimated at $119,000.00
June, 1986
CAPITAL IMPROVEMENT PROGRAM
Page 5hree
Projected for F.Y.' 1987 (Con't)
Repair of Roadway at ~aster Lift Station - Scarify & Blacktop.
Estimated at $ 5,000.00
Repair of Bridges & Wingwalls per State Requirements Letter.
Estimated at $125,0~]0.00
Purchase of Additional Computer Software for Municipal Applications.
Estimated at $ 13,000.00
TOTAL FOR F.Y. 1987 PROJECTS ........ $425,000.00
LONG RANGE
Projected for F.Y. 1988
New Elevated Storage - due to growth, we have reached maximum for
per person to storage capacity (55 gal.) - will reduce or maintain
Fire Key Rate - use Bond Fund presently available or unissued C.R.P.
(Capital Recovery Program) increase for new builds.
Estimated At $450~000.00
Inspection and Repainting of Elevated Storage Tank #2
Estimated At $200,000.00
Southwest Trunk Sewer Line - Engineering Design & Construction 30"
Esti.~ated at $400,000.00
TOTAL FOR F.Y. 1988 PROJECTS ........ $1,050,000.00