HomeMy WebLinkAboutContract 25904 CITY SECRETARY
CONTRACT No.
RELEASE AND SETTLEMENT AGREEMENT
THIS RELEASE AND SETTLEMENT AGREEMENT ("Agreement") is made and
entered into as of the day of , 2000, by and between Gary J. Baker,
Deborra L. Baker and The Estates of Eagle M ntain, Ltd. (collectively, "Baker") and the City of
Fort Worth, Texas ("City").
WHEREAS, the City of Fort Worth annexed all land within the Tarrant County
Municipal Utility District No. 1 ("Tarrant County MUD") on January 4, 2000, consisting of
approximately 1,559 acres of land;
WHEREAS, Eagle Mountain Municipal Utility District ("Eagle Mountain MUD" or
"MUD"), consisting of approximately 457 acres of land, was wholly contained within the Tarrant
County MUD;
WHEREAS, Baker is the developer of all real property contained within the former
Eagle Mountain MUD;
WHEREAS, Eagle Mountain MUD was created on March 12, 1999, by order of the
Texas Natural Resource Conservation Commission, upon petition by Baker;
WHEREAS, on March 16, 1999, Eagle Mountain MUD and Baker entered into a
Facilities and Operating Costs Reimbursement Agreement providing that Baker would fund
construction of water, sanitary sewer and drainage facilities required to serve Baker's
development within the MUD and the MUD would reimburse Baker with the proceeds of bonds
issued by the MUD and an ad valorem tax levied by the MUD;
WHEREAS, at an election duly called and held for and within Eagle Mountain MUD on
May 1, 1999, the duly qualified resident electors of Eagle Mountain MUD authorized the Board
of Directors of the MUD to issue bonds in the maximum amount of$28,700,000 for the purchase
or construction of water, sanitary sewer and drainage facilities; to levy a maintenance tax; and to
levy a contract tax;
WHEREAS, as of January 4, 2000, when City annexed Eagle Mountain MUD, Baker
had expended funds for the construction of water, sanitary sewer and/or drainage facilities, but
no bonds had been issued and no contract tax had been assessed by Eagle Mountain MUD to
reimburse Baker;
WHEREAS, Section 43.0715 of the Texas Local Government Code provides that if a
municipality with a population of less than 1.5 million annexes a special district and the
annexation precludes or impairs the ability of the district to issue bonds, the municipality will
pay in cash to the landowner or developer before the effective date of the annexation certain
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expenses incurred for construction of infrastructure in the district that would have been eligible
for reimbursement from bond proceeds;
WHEREAS, Baker and City executed an agreement effective January 4, 2000 (City
Secretary Contract No. 25518) extending the due date for the reimbursement of expenses under
Section 43.0715 to February 15, 2000 (the "Extension Agreement");
WHEREAS, the Extension Agreement provided that Baker seeks reimbursement of
$2,084,697.32, that the City acknowledges a debt of $1,500,000, and that the claim for
$584,697.32 is in dispute;
WHEREAS, Baker and City subsequently extended the due date for reimbursement to
March 15, 2000, and again to April 4, 2000;
WHEREAS, City paid the sum of$1.5 million to Baker on April 5, 2000;
WHEREAS, Baker claims the right to payment of an additional amount of$584,697.32
pursuant to Section 43.0715, together with interest, court costs and attorneys' fees if permitted by
law;
WHEREAS, Baker and City recognize that it is desirable to enter into this agreement, in
order to avoid the delay and expense of potential litigation and to resolve all claims by Baker
against City for reimbursement for development expenses, penalties, interest or attorneys' fees
pursuant to Section 43.0715 and all other claims by Baker relating to annexation by the City of
territory within Tarrant County MUD and Eagle Mountain MUD;
NOW, THEREFORE, in consideration of the mutual promises described herein, Baker
and City agree as follows:
SETTLEMENT TERMS
1. Payment: City agrees to pay to Baker on or before May 26, 2000, and Baker agrees to
accept the sum of Three Hundred Fifty Thousand Dollars ($350,000.00) in full and final
settlement of the following claims:
a. All claims by Baker for payment of costs and expenses incurred by Baker in
connection with Eagle Mountain MUD, together with penalties and interest,
pursuant to 43.0715 of the Texas Local Government Code; and
b. All other claims by Baker, including attorneys' fees, relating to annexation of
Tarrant County MUD or Eagle Mountain MUD.
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2. Conveyance of Infrastructure: Baker conveyed all of Baker's rights in water, sanitary
sewer and drainage facilities in Eagle Mountain MUD situated on that certain real
property in Tarrant County, Texas more particularly described in Exhibit "A" attached
hereto, to Eagle Mountain MUD by that certain Conveyance of Existing Facilities and
Assignment of Contract dated effective August 4, 1999, and recorded at Volume 14047,
Page 381, Real Property Records of Tarrant County. To the best of his knowledge, Baker
warrants that the instruments conveyed all of Baker's interest in the water, sanitary sewer
and drainage facilities in Eagle Mountain MUD. Eagle Mountain MUD conveyed its
interest in such facilities to Tarrant County MUD by Conveyance Instrument executed as
of August 4, 1999, and recorded at Volume 14045, Page 704. By operation of law all
assets and obligations of Tarrant County MUD and Eagle Mountain MUD became City's
assets upon dissolution of the MUDS.
3. Execution of Additional Documents: In the event any further documents may be
necessary to effectuate the terms of this Release and Settlement Agreement, including
additional conveyance documents necessary to complete the transfer of the foregoing
water, sanitary sewer and drainage facilities to City, then Baker agrees to cooperate in the
review and execution of any further documents reasonably requested by City.
4. Survival of Representations and Warranties: All warranties, guaranties, representations,
and covenants ("Continuing Obligations") of Baker and the respective transferors
(collectively, the "Predecessors in Interest") under the foregoing "Conveyance of Existing
Facilities and Assignment of Contract" and "Conveyance Instrument" shall remain in full
force and effect and shall survive the execution of this Release and Settlement Agreement
for the term(s) expressly stated therein, or, in the absence of express terms, until fully
performed. The Continuing Obligations shall remain binding upon the Predecessors in
Interest and their respective heirs, successors and assigns; and the benefits accruing from
the Continuing Obligations shall enure to the benefit of City, its successors and assigns.
5. Release: Baker acknowledges that payment of $350,000 constitutes full and final
payment of all claims for reimbursement, penalties, and interest under Section 43.0715 of
the Local Government Code and attorneys' fees relating to such claim, and all other
claims relating to annexation of Tarrant County MUD and Eagle Mountain MUD. For
and in consideration of delivery of $350,000 by City and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Baker hereby
releases and forever discharges City and its employees, officers, agents, representatives,
and attorneys of and from all claims, demands, damages, actions or causes of action,
whether known or unknown, accrued or unaccrued, relating to annexation of territory in
Tarrant County MUD or Eagle Mountain MUD, expressly including without limitation
all claims for reimbursement of costs or expenses incurred by Baker in connection with
Eagle Mountain MUD, and penalties, interest and attorneys' fees pursuant to Section
43.0715 of the Texas Local Government Code or other applicable law.
6. Review and Execution: The undersigned warrant that they have thoroughly reviewed this
Agreement with their independent counsel; that they fully understand the t.Prrns and the
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consequences of this Agreement, that they sign it as their free act and deed, and that that
no promise or inducement has been offered except as set forth herein. The undersigned
further acknowledge that this agreement is the result of negotiations and discussions
among the undersigned, so that any rule of construing ambiguities against the drafter
shall have no force and effect.
7. Governing Law/Venue: This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, as it is applied to contracts made and
to be wholly performed within the State of Texas without regard to any choice of
law rules or principles to the contrary. The undersigned hereby agree that venue of
any action under this Agreement shall be exclusively in Tarrant County, Texas and
that this Agreement is performable in Tarrant County, Texas.
8. No Admission of Liability: Baker and City fully understand and agree that this
settlement is being made purely on a compromise basis in order to avoid further and legal
expense. It is further agreed neither City nor Baker admit liability by the making of this
settlement, but rather each expressly denies any and all such liability. It is further agreed
that this Release and Settlement Agreement is not to be construed in any manner
whatsoever as an admission of liability on the part of any of the parties hereto.
Signed this 1Wit, day of )' t , 2000.
Gary J. B
ATTEST BY '
kv Deborra L. Baker
The Estates of Eagle Mountain, Ltd., a
Texas Limited Partnership
_ / 9 By: D sot o Wildwood/Development, Inc.
Contract Authorization a ral Partner
5-��- By: �4�
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Date G4 Baker ident
AS TO FORM AND LWALITY1 CITY OF FOW TH
By: _ /ti-�-----
t City orney Printed Name: /ln► 1C� Groomer-
fa 3 foo Title: (ass sty..+ �; i monase,'-
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LE6AL DESCRIPTION
Parts of the D. C. PAGE SURVEY, Abstract No. 1245, the 65. RALL
SURVEY, Abstract No. 1985, the BBB. d G.R.R. COMPANY SURVEY,
Abstract No. 221, W.M. R05INSON SURVEY, Abstract No. 1310, T.
FREEMAN SURVEY, Abstract No. 546, situated about 10 miles north 40
degrees west from the courthouse In Fort Worth In Tarrant County,
Texas;and embracing all of Parcel "0", a 5 acres tract, a 10-
003/1000 acres tract and a portion of Parcel "M", all described In
the deed to Amon G. Garter Foundation recorded In volume 9'128, page
1525 of the Tarrant County Deed Records and all of the I7-696/I000
acres tract and the 28-1-13/1000 acres tract described In the deed
to Amon G. Garter Foundation recorded In volume 11413, page 1412
and the 2-332/1000 acres tract described in the deed to Amon G.
Garter Foundation recorded In volume 11895,page 74 of the sold
Deed Records and more particularly described as follows:
Beginning at a 5/8" Iron rod recovered for the southeast corner of
Lot I In Block I of LA JOLLA HILLS ADDITION, on addition In Tarrant
County, Texas as sold Lot I appears upon the map thereof recorded
In volume 388-199, page 42 of the said Deed Records and to the west
line of State F.M. Highway No. 1220 (Boat Club Road) In the east
line of sold Parcel "M".
THENCE south no degrees-50 minutes-Ib seconds west along the sold
east line of said Parcel "M" to and along the east line of the sold
5 acres tract and the 10-003/1000 acres tract and along the west
line of State Highway No. 1220, a distance of 3647-06/100 feet to
a 7/8" Iron recovered for the southeast corner of the said 10-
003/1000 acres tract.
THENCE north 89 degree5-35 minutes-58 seconds west, along the south
line of the said 10-003/1000 acres tract, along the south
line of sold Parcel "M" and the north line of Robertson Road, 4554-
84/100 feet to a 1/2" Iron rod set for the southwest corner of
sold Parcel "M" and being the southeast corner of a
o 40.00 acre tract of land situated In the
BBB. d G. R.R. Co. Survey, Abstract No. 221, D.G.
Pace Survey, Abstract No. 1245, 6.5. Rall Survey,
Abstract No. 1985 and W.M. Robinson Survey,
Abstract No. 1310, Tarrant County, Texas,
a portion of a 399.996 acre tract of land described
In deed to Gary J. Baker and Deborro L. Baker
(Tract Sc) as recorded In Volume 12702, Page 1148,
Deed Records of Tarrant County, Texas;
Thence departing the north right-of-way line of
Robertson Road and following the meanders of a
stream the following courses;
North 00 deg. 24 min. 02 sec. East a distance of
284.85 feet to a 1/2 Inch Iron rod set for corner;
North 23 deg. 07 min. 02 sec. East a distance of
219.43 feet to a 1/2 inch Iron rod set for corner;
North 17 deg. 56 min. 21 sec. West o distance of
132.23 feet to a 1/2 Inch Iron rod set for corner;
North 10 deg. 21 min. 50 sec. West a distance of
468.69 feet to 1/2 Inch Iron rod set for corner; --
North Ob de 14 min. 49 sec. East a distance of
163.11 feet tog.
1/2 Inch iron rod set for corner;
North 44 dog. 10 min. 04 sec. West a distance of C ��:rl yir 0029.66 feet to a 1/2 Inch Iron rod set for corner; a
Thence South 89 deg. 59 min. 54 sec. Nast, departing EXHIBIT
said stream, a distance of 1,539.69 feet to a 1/2 z "All
Inch Iron rod set for corner, said corner being In the
common line of sold Tract 5G and a 515 acre"tract of
land described In deed to Minnie Meacham Brants as
recorded In Volume 3158, Page 572, Deed Records of
Tarrant County, Texas; Sheet I Of 5
THENCE north 00 degrees-00 minutes-06 seconds Host, along the Host
line of sold Parcel "M" and the east line of 515 acres tract, 1843-
4'TAOO feet to a 7/8" iron rod recovered for a reentrant corner of
sold Parcel "M".
THENCE north 25 degrees-45 minutes-3'1 seconds Hest, along the sold
Host line of Parcel "M", to the southwest corner of the 28-
1'73/1000 acres tract described in the dead to Amon G. Garter
Foundation recorded In volume 11413, page 1412 of the sold Deed
Records, '75-30/100 feet to a 1/2" iron set for a corner;
Thence North 64 deg 14' 25" East departing sold west lino a distance of
10644 feet to point for a corner;
Thence North 84 deg 32' 42" East a distance of 40.00 feet to a point
for a corner in the center line of proposed Lake Country Drive;
Thence North 05 deg 2'7' 18" West along said center line a distance of
534.32 feet to a point for a corner;
Thence North 84 deg 32' 42" East departing sold center line a distance of
40.00 feet to a point for a corner, sold point being in the east right-of-
way line of proposed Lake Country Drive;
i Thence North 05 deg 2-7' 18" West along sold east line a distance of 466.34
feet to a point for a corner, sold point being the beginning of.o tangent
curve to the left having a radius of 14'12.64 feet a chord bearing of
North 05 degrees-56 minutes-0"1 seconds West and a chord length of 24.641 feet;
Continuing along sold East Right-of-Way line of Lake Country Drive and along sold
tangent curve to the left through a central angle of 00 degrees-5'1 minutes-38 seconds
an arc distance of 24.69 feet, slad point being at the southwest corner of the tract
described In the dead to Metronorth Development, Inc. recorded In Volume 12013,
Page 2264 of the sold deed records;
THENCE southeasterly along the common line of sold Metronorth
Development, Inc. Tract and sold 1'1-696/1000 acres tract:
south '78 degree5-36 minutes east 233-69/100 feet to a 5/8"
Iron rod recovered;
south 65 degree5-41 minutes east 233-04/100 feet to a 5/8"
Iron rod recovered;
south 45 de9ree5-30 minutes east 110-03/100 feet 5/8" to a
Iron rod recovered;
south "16 degrees-30 minutes east 125-32/100 feet 5/8' to a
Iron rod recovered for the south corner of sold 5-52/100 acres
tract in the Hest line of the 61-443/1000 acres tract
described In the deed to Lake Country Country Club recorded In
volume 1041'1, page 1851 and the north corner of a 2-332/1000
acres tract described in the deed to Amon G. Garter Foundation
volume 11895, page '74 of the sold Deed Records.
THENCE southwesterly and southeasterly along the north line of sold
2-332/1000 acres tract:
south 21 degree5-09 minutes-02 seconds east 129-15/100 feet to
a 5/8" Iron rod recovered;
south 06 degrees-43 minutes-18 seconds Hest '71-95/100 feet to
a 5/8" Iron rod recovered;
south 33 degrees-32 minutes-Oq seconds Hest 51-26/100 feet to
a 5/8" iron rod recovered;
south 40 degree5-22 minute5-15 seconds east 24-13/100 feet to
a 5/8" Iron rod recovered;
north 75 degree5-14 minutes-28 seconds cast 86-2'1/100 feet to
a 5/8" Iron rod recovered;
south 68 degrees-08 minute5-55 seconds east 203-53/100 feet to
a 5/8" iron rod recovered;
south 88 degree5-00 minute5-34 seconds east '12-38/100 feet to 1 _
a 5/8" Iron rod recovered:
south 66 denree-5-13 minutes-23 seconds east 103-16/100 feet t0
a 5/8" iron "Zi
recovered;
south 39 degrees-54 minute5-I6 seconds east 101-'14/100 feet to ,a•_,
• a 5/8 Iron rod recovered;
south 54 degree5-39 minutos-2'7 seconds east 235-14/100 feet to —
a 5/8" Iron rod recovered; Sheet 2 of 5
south 3-T degrees-13 minutes-32 seconds east 35-64/100 feet to
a 5/8" Iron rod recovered;
south 49 degrees-II minutes-51 seconds east 63-15/100 feet to
a 5/8" Iron rod recovered;
south 18 degrees-00 minute5-20 seconds east 58-19/!00 feet to
a 5/8" Iron rod recovered;
south 54 degrees-20 minute5-20 seconds east 343-40/100 feet to
a 5/8" Iron rod recovered;
south 29 degrees-55 minute5-14 seconds west 9-83/100 feet to
a 5/8" Iron rod recovered In a north line of I'7-696/100 acres
tract.
THENCE along the said north line of 11-6%/1000 acres tract:
south 21 degrees-30 minutes-54 seconds east 145-63/100 feet to
a 5/8" Iron rod recovered;
south '76 degree5-23 minutes-54 seconds east 155-44/100 feet to
a 5/8" Iron rod recovered;
south 12 degrees-01 minutes east 135 feet to the northeast
corner of sold I'7-696/l000 acres tract In a north line of sold
Parcel "M" and In a south line of sold 61-423/1000 acres
tract.
THENCE southeasterly and northeasterly along the common line of
sold 61-423/1000 acres tract and Parcel "M":
north 58 degree5-55 minute5-12 seconds east 93-61/100 feet to
a 5/8" Iron rod recovered;
south 26 degrees-17 minute5-22 seconds east 202-69/100 feet to
a 5/8" Iron rod recovered;
north 86 degree5-47 minutes-34 seconds east 23"1-17/100 feet to
a 5/8" Iron rod recovered;
south 80 degree5-50 minutes oast 116-80/100 feet to a 5/8"
Iron rod recovered;
north 46 degrees-48 minute5-50 seconds east 425-66/100 feet to
a 5/8" Iron rod recovered;
north 54 degrees-02 minutes-38 seconds east 215-86/100 feet to
a 5/8" Iron rod recovered;
north 49 degree5-48 minutes-32 seconds east 10'7-56/100 feet to
a 5/8" Iron rod recovered;
south 50 degrees-31 minutes-10 seconds east 339-74/100 feet to
a 5/8" Iron rod recovered;
south 49 degrees-06 minutes-O'7 seconds east 14'7-02/100 feet to
a 5/8" Iron rod recovered;
north 66 degree5-05 minutes east 323-II/100 feet to a 5/8"
Iron rod recovered;
north 66 degree5-55 minute5-40 seconds east 105-43/100 feet to
a 5/8" Iron rod recovered for the west corner of a tract
described to Lake Country Country Club, Inc. recorded In
volume 118x5, page 84 of the sold Deed Records.
THENCE along the south line of last mentioned Lake Country Country
club, Inc. tract:
north 48 degree5-57 minutes-50 seconds east 322-8'9/100 feet to
a 5/8" Iron rod recovered;
north 18 degrees-50 minutes-35 seconds east 101-48/100 feet to
a 5/8" Iron rod recovered for the north corner of last
mentioned Lake Country Country Club, Inc. tract and the
southwest corner of Lot I, Block I of LA JOLLA HILL5 ADDITION,
an addition to the city of Forth Worth as said Block I appears
upon the map thereof recorded In volume 388-199,page 42 of
the sold Deed Records.
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THENCE along the south line of said Block I: rug
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south 68 degrees-41i minutes-14 seconds east 385-31/100 foot to �[ p�
a 5/8" Iron rod recovered; Lrt RIEI::4111::019 VIER.
south 89 degree5-09 minutes-45 seconds east 425-0'7/100 feet
the place of beginning and containing 45"1-41/100 acres.
Sheet 5 of 5
City of Fort Worth, Texas
4Vagor And Councit Communication
DATE REFERENCE NUMBER I LOG NAMEE
5/23/00 G-12928 02FINAL 1 of 3
PAG
SUBJECT AUTHORIZE THE CITY MANAGER TO EXECUTE A RELEASE AND SETTLEMENT
AGREEMENT WITH GARY J. BAKER, DEBORRA L. BAKER AND THE ESTATES OF
EAGLE MOUNTAIN, LTD. IN FINAL SETTLEMENT OF CLAIM FOR EXPENSES
INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE
MOUNTAIN MUNICIPAL UTILITY DISTRICT
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to Execute a Release and Settlement Agreement with Gary J. Baker,
Deborra L. Baker and The Estates of Eagle Mountain, Ltd. to settle their claim for payment of
expenses incurred in connection with the installation of water, sewer and drainage facilities in the
Eagle Mountain Municipal Utility District; and
2. Authorize the City Manager to pay $350,000.00 to Gary J. Baker, Deborra L. Baker and The Estates
of Eagle Mountain, Ltd. in accordance with the Release and Settlement Agreement.
DISCUSSION:
Gary J. Baker, Deborra L. Baker and The Estates of Eagle Mountain, Ltd. (collectively, Baker), have
made a claim for $2,084,697.32 against the City for reimbursement of expenses incurred in connection
with the installation of water, sewer and drainage facilities in the Eagle Mountain Municipal Utility
District (Eagle Mountain MUD). The City paid $1,500,000.00 to Baker on April 5, 2000. Approval of
this Mayor and Council Communication will result in a resolution of the remaining claim of $584,697.32
for$350,000.00.
Background
On January 4, 2000, the City of Fort Worth annexed all territory in the Tarrant County Municipal Utility
District No. 1, consisting of approximately 1,559 acres of land. The Eagle Mountain MUD, consisting of
approximately 457 acres of land, was located entirely within the Tarrant County Municipal Utility District
No. 1.
The Eagle Mountain MUD was created in March 1999, by order of the Texas Natural Resource
Conservation Commission (TNRCC). The petition for creation of the Eagle Mountain MUD was
submitted by Baker, who are the owners/developers of all real property located within the district.
Baker sought creation of the Eagle Mountain MUD so that the MUD could issue bonds to finance the
water, sanitary sewer and drainage facilities necessary to serve Baker's development projects within
the Eagle Mountain MUD.
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City of Fort Worth, Texas
"aljor And Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
5/23/00 G-12928 02FINAL 2 of 3
SUBJECT AUTHORIZE THE CITY MANAGER TO EXECUTE A RELEASE AND SETTLEMENT
AGREEMENT WITH GARY J. BAKER, DEBORRA L. BAKER AND THE ESTATES OF
EAGLE MOUNTAIN, LTD. IN FINAL SETTLEMENT OF CLAIM FOR EXPENSES
INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE
MOUNTAIN MUNICIPAL UTILITY DISTRICT
On March 16, 1999, the Eagle Mountain MUD and Baker entered into a Facilities and Operating Costs
Reimbursement Agreement. The agreement provided that Baker would fund construction of water,
sanitary sewer and drainage facilities required to serve Baker's development within the Eagle Mountain
MUD and that the Eagle Mountain MUD would reimburse Baker with the proceeds of bonds to be
issued by the Eagle Mountain MUD and an ad valorem tax to be levied by the MUD.
On May 1, 1999, an election was held in the Eagle Mountain MUD to authorize the Eagle Mountain
MUD to issue bonds in the maximum amount of $28,700,000.00 for the purchase or construction of
water, sanitary sewer and drainage facilities and to levy an annual ad valorem tax and an annual
maintenance tax.
As of January 4, 2000, when the Eagle Mountain MUD was annexed by the City, Baker had expended
funds for the construction of water, sanitary sewer and/or drainage facilities, but no bonds had been
issued and no taxes assessed by the Eagle Mountain MUD to reimburse Baker.
Applicable Law
The Eagle Mountain MUD was abolished by operation of law on April 4, 2000. Section 43.0715 of the
Texas Local Government Code provides that if a municipality annexes a municipal utility district and the
annexation precludes the ability of the district to issue bonds, the city must pay in cash to the developer
or owner all expenses incurred by the developer or owner in connection with the district that the district
has, in writing, agreed to pay and that would otherwise have been eligible for reimbursement from bond
proceeds under the rules and requirements of the TNRCC, as the rules and requirements exist on the
annexation date.
As discussed above, the Eagle Mountain MUD and Baker entered into a Facilities and Operating Costs
Reimbursement Agreement by which the Eagle Mountain MUD agreed to reimburse Baker for the
construction of water, sanitary sewer and drainage facilities in the maximum amount allowed by the
TNRCC. Abolition of the Eagle Mountain MUD precluded the Eagle Mountain MUD's ability to issue
bonds to•fund reimbursement of Baker for their development costs. Accordingly, the City is obligated
by statute to reimburse Baker for amounts that otherwise would have been eligible for reimbursement
under TNRCC rules and regulations in effect on January 4, 2000.
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City of Fort Worth, Texas
tMagor And Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
5/23/00 G-12928 02FINAL 3 of 3
SUBJECT AUTHORIZE THE CITY MANAGER TO EXECUTE A RELEASE AND SETTLEMENT
AGREEMENT WITH GARY J. BAKER, DEBORRA L. BAKER AND THE ESTATES OF
EAGLE MOUNTAIN, LTD. IN FINAL SETTLEMENT OF CLAIM FOR EXPENSES
INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE
MOUNTAIN MUNICIPAL UTILITY DISTRICT
Extension of Reimbursement Deadline and Partial Payment of Baker's Claim
Baker and the City contractually extended the due date for the reimbursement to February 15, 2000, by
agreement dated January 4, 2000, (City Secretary Contract No. 25518) to give the parties the
opportunity to discuss alternative financial incentives for Baker's development projects in lieu of
reimbursement for development costs under Section 43.0715. The agreement acknowledged that
Baker seeks reimbursement in the amount of $2,084,697.32. Baker and the City acknowledged that
the reimbursement amount is between $1,500,000.00 and $2,084,697.32. The parties agreed that if no
agreement for alternative financial arrangements were reached by February 15, 2000, the City would
pay no less than $1.5 million to Baker on that date and either party could elect to litigate, arbitrate or
mediate any contested amounts, up to a total of $2,084,697.32. The deadline was extended to March
15, 2000, and again to April 4, 2000.
On April 4, 2000, the City Council authorized payment to Baker in the amount of $1,500,000.00,
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adopted a supplemental appropriation ordinance in the amount of $584,697.32 to fund an escrow
account for the additional amount claimed by Baker, and directed the City Manager to take action
necessary to resolve the claim (M&C G-12880). Approval of this Mayor and Council Communication
would settle the claim for $350,000.00. The balance in the escrow account of $234,697.32 would be
returned to the Water and Sewer Operating Fund.
FISCAL 1IN'FORMATION/CE RTI FICATION:
The Finance Director certifies that upon approval of the above recommendations, funds will be
available in the current operating budget, as appropriated, of the Water and Sewer Operating Fund.
MG:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
APPROVED
Mike Groomer 6140 CITY COUNCIL �
Originating Department Head:
Dale Fisseler 8202 (from) MAY 2000
PE45 240014 0000000 $350,000.00
Additional Information Contact:
cuy nacres-y of the
Marcella Olson 7631 City of Fort Worth.To
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