HomeMy WebLinkAboutContract 56233 CITY SECRE ARY
%)A r''ONTRACT NO.
AGREEMENT TERMINATING CERTAIN AGREEMENTS
C�x g p, �
RELATED TO THE TRADITION DEVELOPMENT
This Agreement Terminating Certain Agreements Related to the Tradition Development
(this "Agreement") is entered into by and between the City of Fort Worth, Texas (the "City"),
Petrus Investment, LP (the "Petrus"), Justin Timberbrook, LLC ("Timberbrook"), DEBLOCK,
Ltd. ("DEBLOCK") and Tradition Municipal Utility District No. 2A of Denton County (the
"District") (each a "Party" and, collectively,the "Parties"), effective May 11, 2021 (the"Effective
Date").
ARTICLE I
RECITALS
A. The City, Aperion Communities, LLLP, Eladio Properties, LLLP, Drooy
Properties, LLLP,Rocksand Investments, LLLP, Justin Ranch 427, LLLP, and Justin Ranch 123,
LLP entered into that certain Development Agreement effective May 21,2008 (the "Development
Agreement") (City Secretary Contract No. 37127) governing 1,922.237 acres of land (the
"Tradition Property"), 644.1 acres of which is now solely owned by Petrus Investment, LP and
described on the attached Exhibit A(the"Petrus Property"),approximately 549.992 acres of which
is now solely owned by Justin Timberbrook, LLC and described on the attached Exhibit B (the
"Timberbrook Property") and approximately 63.007 acres of which is now solely owned by
DEBLOCK, Ltd. and described on the attached Exhibit C (the "DEBLOCK Property"). The
Development Agreement was recorded in the Denton County Real Property Records on August
13, 2008 as Instrument No. 2008-89146.
B. On May 11, 2021, the City Council adopted Resolution No. 5392-05-2021,
releasing the Petrus Property,the Timberbrook Property and the DEBLOCK Property
(collectively, the"Property") from the City's extraterritorial jurisdiction("ETJ") authority.
C. The Parties desire to terminate the Development Agreement as to the Property,
effective upon the City's release of the Property from its ETJ on May 11, 2021.
D. The Development Agreement was superseded and replaced with respect to a portion
of the Tradition Property by that certain Development Agreement between the City and SLF IV—
114 Assemblage, Ltd. effective January 12, 2016 (City Secretary Contract No. 47477).
E. The Texas Legislature approved the creation of Tradition Municipal Utility District
No. 2 of Denton County ("MUD No. 2") including 1,922.237 acres of land by Act of May 23,
2007, 80"' Legislature, Regular Session, Chapter 752, codified as Special District Local Laws
Code, Chapter 8189, effective September 1, 2007.
F. The Fort Worth City Council approved Resolution No. 3568-12-2007(the"Consent
Resolution") consenting to the creation of MUD No. 2 and Resolution No. 4408-02-2015
consenting to the division of MUD No. 2 into Tradition Municipal Utility District No. 2A of
Denton County ("MUD No. 2A") and Tradition Municipal Utility District No. 2B of Denton
County ("MUD No. 213").
EUMCIAL RECUR®CRE°9ARYAgreement Terminating Certain Agreements—Page 1 RTH,TX
G. On December 18, 2007, the City Council of the City approved that certain
"Agreement Concerning Creation and Operation of Tradition Municipal Utility District No. 2 of
Denton County" (City Secretary Contract No. 36463,M&C - 22589) (the "Consent Agreement").
H. MUD No.2 held an election on May 9,2015 to divide into MUD No.2A containing
approximately 1,259.89 acres and MUD No. 2B containing approximately 662.91 acres.
I. The Board of Directors of MUD No.2 canvassed the votes of such division election
on May 13,2015, and determined that MUD No. 2 has been divided into MUD No. 2A containing
approximately 1,259.89 acres and MUD No. 2B containing the 662.91 acres.
J. The Petrus Property, Timberbrook Property, and DEBLOCK Property are located
wholly within the boundaries of MUD No. 2A.
K. The Parties acknowledge that the Consent Resolution and Consent Agreement as
to MUD No. 2A are of no further effect and void upon the release of all land within MUD No. 2A
from the City's ETJ on May 11, 2021.
L. On February 26, 2015, the City of Fort Worth served notice of termination of the
Agreement for Sale of Treated Water, Wholesale Wastewater Service Agreement for Tradition
Municipal Utility District No. 1 and termination of the Agreement for Sale of Treated Water for
Tradition Municipal Utility District No. 2 attached as Exhibit D.
M. The City, Aqua Utilities, Inc., Aperion Communities, LLLP, Eladio Properties,
LLLP, Drooy Properties, LLLP, Rocksand Investments, LLLP, Justin Ranch 427, LLLP, and
Justin Ranch 123, LLLP entered into that certain Agreement Regarding Water and Wastewater
Utility Service effective December 18, 2007 (the "Agreement Regarding Water and Wastewater
Utility Service."
N. MUD No. 2 and MUD No. 2A did not sign the Agreement Regarding Water and
Wastewater Utility Service, and the Parties acknowledge that MUD No. 2 and MUD No. 2A are
not parties to such agreement.
O. The Parties desire to terminate the Agreement Regarding Water and Wastewater
Utility Service as to the Property.
P. The City, Aqua Utilities, Inc., Aperion Communities, LLLP, Eladio Properties,
LLLP, Drooy Properties, LLLP, Rocksand Investments, LLLP, Justin Ranch 427, LLLP, and
Justin Ranch 123, LLLP entered into that certain Buy-Out Option Contract effective December
18, 2007 (the "Buy-Out Option Contract").
Q. MUD No. 2 and MUD No. 2A did not sign the Buy-Out Option Contract, and the
Parties acknowledge that MUD No. 2 and MUD No. 2A are not parties to such agreement.
R. The Parties desire to terminate the Buy-Out Option Contract as to the Property.
S. The City, Aqua Utilities, Inc., Aperion Communities, LLLP, Eladio Properties,
LLLP, Drooy Properties, LLLP, Rocksand Investments, LLLP, Justin Ranch 427, LLLP, and
Agreement Terminating Certain Agreements—Page 2
1560.026\95493.6
Justin Ranch 123, LLLP entered into that certain Agreement Regarding Payment of Impact Fees
and Financing of Water and Wastewater Facilities effective December 18, 2007 (the "Agreement
Regarding Payment of Impact Fees and Financing of Water and Wastewater Facilities").
T. MUD No. 2 and MUD No. 2A did not sign the Agreement Regarding Payment of
Impact Fees and Financing of Water and Wastewater Facilities, and the Parties acknowledge that
MUD No. 2 and MUD No. 2A are not parties to such agreement.
U. The Parties desire to terminate the Agreement Regarding Payment of Impact Fees
and Financing of Water and Wastewater Facilities as to the Property.
NOW THEREFORE, for and in consideration of the mutual agreements, covenants, and
conditions hereinafter set forth,the Parties contract and agree as follows:
1. The following agreements and all post-termination obligations contained in the
following agreements are terminated and of no further force or effect with respect to the Property
upon the City's release of the Property from its ETJ (collectively, the "Agreements"): (a) the
Development Agreement; (b) the Consent Agreement; (c) the Agreement Regarding Water and
Wastewater Utility Service; (d) the Buy-Out Option Contract; and (e) the Agreement Regarding
Payment of Impact Fees and Financing of Water and Wastewater Facilities. The City agrees that
there are no additional agreements to which the City is a party that govern the Property or that are
binding on MUD No. 2A.
2. Intentionally deleted.
3. This Agreement shall be recorded in the real property records of Denton County
and upon such recording the Development Agreement will be of no further force and effect with
respect to the Property and the Property will be released from all Development Agreement
obligations.
4. Petrus hereby warrants that it is the successor in interest to the Petrus Property, and
has the authority to enter into this Agreement.
5. Timberbook hereby warrants that it owns the Timberbrook Property, and has
authority to enter into this Agreement.
6. DEBLOCK hereby warrants that it owns the DEBLOCK Property, and has
authority to enter into this Agreement.
7. Each Party hereby unconditionally, fully and completely releases, acquits,
and forever discharges the other Parties and its successors and assigns from any and all
claims, demands, actions, causes of action, suits, liabilities, damages, losses, costs and
expenses whatsoever, known or unknown, accrued or unaccrued, in law or in equity,
relating to the Agreements.
8. This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original.
Agreement Terminating Certain Agreements—Page 3
1560.026\95493.6
9. Exhibit A, Exhibit B, Exhibit C and Exhibit D are attached hereto and
incorporated herein for all purposes.
[signatures appear on next page]
Agreement Terminating Certain Agreements—Page 4
1560.026\95493.6
ST: CITY OF FORT WORTH
By: Al"
onald P. Gonzalez Dana Burghd f
Acting City SecretaryOF FORT Assistant Cit Manager
�� •� Date: 162Z
U
* �z
APPROVED AS TO FORM D'' .... . ..
LEGALITY'
Assistant City Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me, on thely day of , 2021,
by Dana Burghdoff, Assistant City Manager of the City of Fort Worth,Texas o behalf of said
City.
ary Public, State of Texas
SELENa A,
Notary Public. State of Tex
Comm. Expires 03.31-?02 ted Name: 4k&
1i++` Notary ID 132422528
Commission Expires:
SELENA ALA
32r _Notary Public,State of Texas
Comm.Expires 03.31.2024
Notary ID 132422528
Agreement Terminating Certain Agreements—Page 5 FT. WORTH,TX
=ram
1560.026\95493.6
Petrus Investment,L.P.
a Texas limited partnership
By: PMC Management, L.P.,
a Texas limited partnership,
its sole general partner
By: Hillwood Development Company, LLC,
a Texas limited liability company,
its sole general partner
By:
Name: Michel@ M pinc'=n[d
Title:
Secretary
STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument was Y acknowledged before me on this 1-3 day of /en ,
g � c.�4 2021,
by I'll/c/ul(L Aa LZ& A�cj-L rU� of Hillwood Development Company, LLC, a
Texas limited liability company and the sole general partner of PMC Management, LP, a Texas
limited partnership and the sole general partner of Petrus Investment, LP, a Texas limited
partnership, on behalf of said partnership.
Notary Public
SHANNON SUSAN DEAR
`P rinted Name /tA� Acc.e
Notary Public,State of Texas
Comm Expires01-22-2022
, W,, Notary ID 10936492 My Commission Expires:
Agreement Terminating Certain Agreements-Page 6 - --_
1560.026\95493.6
JUSTIN TIMBERBROOK,LLC,
a Texas limited liability company
By: A, Z+
Timothy M. Stewart, Manager
STATE OF TEXAS §
COUNTY OF TARRANT§
This instrument was acknowledged before me on this 13'0" day of b L44 ,2021,
by Timothy M. Stewart, Manager of Justin Timberbrook,LLC, a Texas limited liability company
on behalf of said company.
VAN=e6
Notary Public
Notary Ps
iN,. ,P Comm. 4Of��``� Nota Printed Name: yr,1(I�JS�t V a,I�QS My Commission Expires: 0`-up-gu
LWWOR-(HoyECfl�ETARYY
Agreement Terminating Certain Agreements—Page 7
1560.026\95493.6
DEBLOCK,LTD.,
a Texas limited partnership
By: Mansfield Management, LLC,
A Texas limited liability company,
Its General Partner
0
By:
o reta A. Weatherford, anager
By:
ames A. eatherford, Manager
STATE OF TEXAS §
COUNTY OF §
S� b-e-r 2021
before me on this da of c.-1-a
This instrument was acknowledgedZ� y � ,
by Morreta A. Weatherford, Manager of Mansfield Management, LLC, a Texas limited liability
company, General Partner of DEBLOCK, LTD., a Texas limited partnership, on behalf of said
partnership. C
� ��� LESLIE SIKES Notary Public
.� �/.
Y`?o Pv PGe�:Notary Public,State of Texas
Q Comm.Expires 03 20 2024 Printed Name: Lo5l�2 5kK-e S
Notary ID 1748461
My Commission Expires: 3—Zv—Z oz4
STATE OF TEXAS §
COUNTY OF §
This instrument was acknowledged before me on this 21 yl day of c,4v 6-- , 2021,
by James A. Weatherford, Manager of Mansfield Management, LLC, a Texas limited liability
f DEBLOCK LTD. a Texas limited artnershi on behalf of said
company, General Partner o p,
partnership.
Notary Public
LESLIE SIKES
Notary Public,State of Texas
N� •P Comm. Expires 03-20-2024 Printed Name: L�-st�� 5i1�S
Notary ID 1748461
My Commission Expires:
CO)MCOAL RECO1�D
Agreement Terminating Certain Agreements—Page 8
T:_ 1560.026\95493.6
TRADITION MUNICIPAL
UTILITY DISTRICT NO. 2A
By:
Presi ent, Bbdid of Directors
STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument was acknowledged before me on this day of `>� ►� _ , 2021,
by ,� uZ, �C�i��' , President of the Board of Directors of Tradition Municipal Utility
District No. 2A on behalf of said district.
Notary Public
Printed Name: Pew 'y�
My Commission Expires: r� 'Z—
50- r& DON LOGAN
° ' Nota
3*; �;* ry Public
6 STATE OF TEXAS
0F a+'pPM 48148
Comm.E 89A r 06,2024
Agreement Terminating Certain Agreements—Page 9
1560,026\95493.6
Exhibit A
Description of the Petrus Property
DESCRIPTION OF
644.077 ACRES OF LAND
BEING a tract of land situated in the William G.Brookfield Survey,Abstract Number 34,the
W.A.Ferris Survey,Abstract Number 419 and the W.D.Reed Survey,Abstract Number 1125,
Denton County,Texas,being a portion of that tract of land described by deed to Petrus
Investment,L.P.recorded in Instrument Number 2009-23477,Real Property Records,Denton
County,Texas and being more particularly described by metes and bounds as follows:
BEGINNING at the northwest corner of said Petrus Investment tract,being in the south line of
that tract of land described by deed to Pennington Family Trust recorded in Instrument Number
01-44060,said Real Property Records;
THENCE N 89000'06"E, 1146.80 feet,with the north line of said Petrus Investment tract and
the south line of said Pennington Family Trust tract,to the south right-of-way line of State
Highway FM 407(a 90'right-of-way);
THENCE with said right-of-way line the following courses and distances:
S 50010'22"E,681.84 feet,to the beginning of a curve to the left;
With said curve to the left,an arc distance of 429.23 feet,through a central angle of
39°45'00",having a radius of 618.69 feet,the long chord which bears S 70°02'52"E,
420.67 feet;
S 89055'02"E,458.26 feet;
THENCE S 00000'00"W,2998.58 feet,departing said right-of-way line over and across said
Petrus Investment tract,to the east line of said Petrus Investment tract;
THENCE S 88057'58"W,802.46 feet,with said east line;
THENCE S 00012'20"E,3748.08 feet,continuing with said east line;
THENCE S 00009'48"E,510.42 feet,continuing with said east line;
THENCE S 89056'06"W,4660.90 feet,departing said east line over and across said Petrus
Investment tract,to the west line of said Petrus Investment tract;
THENCE with the west line of said Petrus Investment tract the following bearings and
distances:
N 00009'07"W,521.37 feet;
N 76015'35"E,381.87 feet;
Agreement Terminating Certain Agreements—Page 10
1560.026\95493.6
N 00017'29"W, 307.73 feet;
S 89055'43"W, 370.50 feet;
N 00011'47"W, 3495.61 feet;
S 89055'01"E, 509.27 feet;
S 00017'31"E, 226.36 feet;
N 89005'17"E, 870.26 feet;
N 88048'54"E, 1598.69 feet;
N 00025'07"W, 907.20 feet;
THENCE N 00042'38"W, 2696.06 feet to the Point of Beginning and containing 29,055,983
square feet or 644.077 acres of land more or less.
"Integral parts of this document"
1. Description
"This document was prepared under 22 TAC 663.21,does not reflect the results of an on the ground
survey,and is not to be used to convey or establish interests in real property except those rights and
interests implied or established by the creation or reconfiguration of the boundary of the political
subdivision for which it was prepared."
Agreement Terminating Certain Agreements—Page 11
1560.026\95493.6
Exhibit B
Description of the Timberbrook Property
All that certain lot, tract, or parcel of land, situated in a portion of the W. C.
Brookfield Survey, Abstract No. 34, Denton County, Texas, being all of that certain
called 427.810 acre tract described as Tract 1 and a called 122.145 acre tract
described as Tract 2 in a deed to Justin Timberbrook, LLC recorded in Document
No. 2017-4977 of the Deed Records of Denton County, Texas (DRDCT), and being
more completely described as follows, to-wit:
BEGINNING at a 1/2" capped iron rod stamped "COLEMAN 4001" for the
Northwest corner of said 427.810 acre tract, the Southwest corner of a called 64.7
acre tract described as Fourth Tract in a deed to Glenn Shoop recorded in
Document No. 1994-29773 (DRDCT), and being in the East line of a called 413 acre
tract described in a deed to JNJDF, Ltd. recorded in Document No. 2008-85490
(DRDCT);
THENCE South 89 deg. 32 min. 11 sec. East along the North line of said 427.810 acre
tract, the South line of said 64.7 acre tract, and the South line of a called 38.17
acre tract described as First Tract in said deed to Glenn Shoop, a distance of
5,409.33 feet to a 1/2" capped iron rod stamped "COLEMAN 4001" for the most
northerly Northeast corner of said 427.810 acre tract, the Southeast corner of said
38.17 acre tract, and being in the West line of a called 52.65 acre tract described
as Third Tract in said deed to Glenn Shoop;
THENCE South 00 deg. 36 min. 55 sec. West along the East line of said 427.810 acre
tract and the West line of said 52.65 acre tract, a distance of 352.87 feet to a 1/2"
capped iron rod stamped "OWEN SURV 5560"for an ell corner of said 427.810 acre
p
tract and the Southwest corner of said 52.65 acre tract;
THENCE North 89 deg. 50 min. 05 sec. East along the North line of said acre
tract and the South line of said 52.65 acre tract, a distance of 651 .55 feet to a 5"
metal fence corner for the most easterly Northeast corner of said 427.810 acre
tract and the Northwest corner of a called 18.000 acre tract described in a deed
to Keo Chanthalath, et al recorded in Document No. 2013-2597 (DRDCT);
THENCE South 00 deg. 37 min. 02 sec. East along the East line of said 427.810 acre
tract and the West line of said 18.000 acre tract, a distance of 1 ,371 .73 feet to a
5" metal fence corner for the most easterly Southeast corner of said 427.810 acre
tract and an ell corner of a called 241 .210 acre tract described in a deed to Justin
Timbebrook, LLC recorded in Document No. 2017-5803 (DRDCT);
Agreement Terminating Certain Agreements—Page 12
1560.026\95493.6
THENCE North 85 deg. 09 min. 22 sec. West along the South line of said 427.810
acre tract, the North line of said 241 .210 acre tract, and the North line of a called
80.00 acre tract described in a deed to Pennington Family Trust recorded in
Document No. 2001-R0044064 (DRDCT), a distance of 2,098.10 feet to a 1/2"
capped iron rod found stamped "COLEMAN 4001"for the Northeast corner of said
122.145 acre tract and the Northwest corner of said 80.00 acre tract;
THENCE South 00 deg. 19 min. 52 sec. East along the East line of said 122.145 acre
tract and the West line of said 80.00 acre tract, a distance of 3,644.95 feet to a
1/2"capped iron rod found (illegible) for the Southeast corner of said 122.145 acre
tract, the Southwest corner of said 80.00 acre tract, and being in the North right-
of-way line of FM Highway No. 407 (90' right-of-way), said point being a Point of
Curvature of a non-tangent circular curve to the left, having a radius of 617.96
feet, a central angle of 18 deg. 52 min. 10 sec., and being subtended by a chord
which bears North 81 deg. 06 min. 32 sec. West - 202.60 feet;
THENCE in a westerly direction along said curve to the left, the South line of said
122.145 acre tract, and said North right-of-way line, a distance of 203.52 feet to a
1/2" capped iron rod found stamped "5439";
THENCE South 89 deg. 27 min. 23 sec. West along the South line of said 122.145
acre tract, the South line of said 427.810 acre tract, and said North right-of-way
line, a distance of 1 ,876.41 feet to a 1/2" iron rod found;
THENCE South 89 deg. 22 min. 34 sec. West along the South line of said 427.810
acre tract and said North right-of-way line, a distance of 1,932.50 feet to a 5/8"
iron rod found for the Southwest corner of said 427.810 acre tract and the
Southeast corner of said 413 acre tract;
i
THENCE North 00 deg. 04 min. 25 sec. East departing said North right-of-way line
and continue along the West line of said 427.810 acre tract and the East line of
said 413 acre tract, a distance of 5,241 .66 feet to the POINT OF BEGINNING,
containing 23,957,669 square feet or 549.992 acres of land, more or less.
Bearings are referenced to Texas State Plane Coordinate System, North Central
Zone (4202), North American Datum of 1983 as derived from GPS observation.
Agreement Terminating Certain Agreements—Page 13
1560.026\95493.6
Exhibit C
Description of the DEBLOCK Property
Ot A 63.0o7 acres tract of[and out of the WILLIAM P-ROOILEIELD SRRVEY,All-STRRCT
No. 34, Denton County, Texas: being All Of that certAtn tract Of[And wove yed to Western
Real Estate Investors, Inc. to l oQW .ent No. 2010-1533, O f fle�al Public Records, Denton
county, Texas: being further described by metes a nd bounds as follows:
�ECIINNINC, at a found 1/2' iron rod to Dove Httt Road, a paved surface, said Dove Hill Road
being that certain 4o' roadway As described to Volvme 631, Page 493, O.P.R.D.C.T. And to
the called east Une of that ceYtatn 52 acres tract of land described to Vo[uote 594, Page 654,
O.P.R.D.C.T., same befog the Southwest cornet of a ca[[ed 24.095 ACYeS tract Of land COV Ve yed
to Pennington i=Amdtu Trust to Vo[uvue 4233, Page 525, O.P.R..D.C.T., for the northwest
corner Of this tract. WHENCE the northwest corner of sAtd 52 acres tract is cA[cutated by
deeds to bear N 00.05' W 20.13 feet, S 89°55 W r'58.8 feet'� N 00,05' W 660.61 feet.
THENCE S 88°02'47^ E Along the common tine Of said Pennington FAvut[y tract�said
Western RCA[ Estate tract, at 1142.5 feet pass a found 5/8" troo rod with pLasttc cap, for a
total distance of 1190.06 feet to a found 1/2" iron rod, at the northwest corner of Tract 3 being
a eAt[ed 1023.4685 acres tract Of land as conveyed to Pettus Investments, LP in DOe'RM nt
No. 2009-2347 7, O.P.R.D.C.T., for the northeast coYneY of this tYAct.
THENCE S 00°41'22N E 2272.02 feet along the commove floe of said Tract 3 _�said western
Real Estate tract, to a found 1/2' tron rod at the northeast corner of a eA[[ed 11.548 acres tract
of[and described to that eertatw contract of Sale recorded to Docuvueot No.199--21328,
O.P.R..D.C.T., for the Southeast coYneY o f this tract.
THENCE S 8853'46" W 1193.27 feet along the eovxmon line of said 11.548 acres tract
SnW western Reat Estate tract, to a found Stgna[ in pave►M.ent to the called east line Of said
52 Acres tract, for the southwest corner of this tract.
THENCE N 0034'49" W along the 0OK& u.on line of sAtd 52 acres tract,� said Western Reat
Estate tract, same befog the easteY[y tines of that called 17.000 acres tract conveyed to HAYrts
to Document No. 2009-68342, O.P.R.D.C.T., that called 10.00 Acres tract conveyed to
MAryott to Dor,"ment No. 2013-120216, O.P.R.D.C.T., that ea[[ed 10.000 acres tract conveyed
to Haynes to Vo[uvxe962, Page 43, O.P.R.D.C.T., And thAt eatted 5.000 acYeS tract Conveyed
to Choate to Votume924, PAge_921, O.P.R.D.C.T., a dtStAvx.ce of 2336.14 feet to the POINT OF
UECJINNINCI.
geartngs derived fYovu c,.P.S. observattovwS performed by carter Suweytng �Mapping, Inc.
and reftect N.R.D. 1983, Texas state Plane CoordinAte System, North Central Zone 4202.
Agreement Terminating Certain Agreements—Page 1
1560.026\95493.6
Exhibit D
See attached letter
Agreement Terminating Certain Agreements—Page 2
1560.026\95493.6
FORTWORTH.
February 26,2015
I
Robert L. Laughman,President
Aqua Utilities. Inc.
Aqua Texas,Inc.
1106 Clayton Lane, Suite 400 W.
Austin, Texas 78723
CERTIFIED MAIL/RETURN RECEIPT RE,OUESTED: 7011 1570 0002 5818 3650
William Dickerson,Assistant General Counsel
Aqua Utilities. Inc. i
Aqua Texas,Inc.
1106 Clayton Lane, Suite 400 W.
Austin, Texas 78723 1
CERTIFIED MAIL/RETURN RECEIPT REOU t'STED: 7011 1570 0002 5818 3667
Re; Termination of the Agreement for Sale of Treated Water,Wholesale Wastewater
Service Agreement for Tradition Municipal Utility District No. 1 and Termination of the
Agreement for the Sale of Treated Water for Tradition Municipal Utility District No. 2
Dear Mr. Laughman,
This letter serves as the City of Fort Worth's notice of termination of several agreements
with Aqua Utilities,Inc.,Aqua Texas,Inc.(Aqua Utilities)for Tradition Municipal Utility
District No. 1 and Tradition Municipal Utility District No. 2.
U
Tradition Municipal Utility District No. 1 j
Section 4.05 of the Superseding Agreement Regarding Water and Wastewater Utility �!
Service, known as City Secretary Contract No. 32899, provides that the Agreement for
the Sale of Treated Water, laiown as City Secretary Agreement No. 32902, and the
Agreement for Wholesale Wastewater Service known as City Secretary Agreement
No. 32903, between the City and Aqua Utilities shall both terminate if (1) a lease
agreement between Aqua Utilities and Tradition MUD No. 1 for the operation of the
water or sewer infrastructure is not is executed by January 1,2007; or (2)Tradition MUD
No. 1 does not own any water or sewer retail service infrastructure as of December 21,
2010.Neither of these conditions has been met by Aqua Utilities and therefore the City is
exercising its right to terminate the Agreement for Sale of Treated Water and the
Agreement for Wastewater Service. 1
Tradition Municipal Utility District No. 2
i,
Section 4.05 of the Agreement Regarding Water and Wastewater Service (which {
has a stated effective date of December 18, 2007, but which was never executed)
provides that the Agreement for the Sale of Treated Water, known as City Secretary
Contract No. 37128, and the Wholesale Wastewater Service Agreement for Tradition
MUD No. 2 shall both terminate if (1) a lease agreement between Aqua Utilities and
Tradition MUD No. 2 for the operation of the water or sewer infrastructure is not is
CITY MANAGER'S OFFICE
CITY or FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH,TEXAS 76102
817-392-6111 * Fnx 817-392-6134
Q%Printed on recycled paper
FORTWORTH.
executed within two years of the MUD's creation date (which was on or about
September 1, 2007 and consented to by City Council Resolution No. 3568-12-2007on or
about December 18, 2007 ); or (2) Tradition MUD No. 2 does not own any water or
sewer retail service infrastructure as of five years after the 'Tradition MUD No. 2
creation date. Neither of these conditions has been met by Aqua Utilities and therefore
the City is exercising its right to terminate the Agreement for the Sale of Treated Water
luiown as City Secretary Contract No. 37128. The Wholesale Wastewater Service
Agreement was never executed by the parties.
In accordance with the terms and conditions of these agreements,the termination is
effective immediately. Please let me know if you have any questions.
Sincerely,
Fernando Costa
Assistant City Manager
Cc: Andy Cronberg,Interim Water Director,City of Fort Worth
Wendy Chi-Babulal, Water Planning and Development Engineering Manager, City
of Fort Worth
Christa R. Lopez-Reynolds, Sr. Assistant City Attorney, City of Fort Worth
i
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CITY MANAGER'S OFFICE
CITY op FORT WORTH * 1000 THROCKMORTON STRL'ET * FORT WORTH, TEXAS 76102
817-392-6111 * FAx 8t7-392-6134
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