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2010R59-Letter Agreement Jeffrey Kahn RESOLUTION NO. 10-R-59 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A LETTER AGREEMENT WITH JEFFREY KAHN, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the City enter into a Letter Agreement with Jeffrey Kahn relating to connecting the Corridor Oaks Mobile Home Park to the City of Schertz Sewer System; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Jeffrey Kahn pursuant to the Letter Agreement attached hereto as Exhibit A (the "Agreement"). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY, OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Agreement with Jeffrey Kahn in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, ' and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after. its final passage, and it is so resolved. 50338988.1 EXHIBIT A LETTER AGREEMENT 50338988.1 A-1 PASSED AND ADOPTED, this 19t~' day of October, 2010. CITY OF SCHERTZ, TEXAS Ma ATTEST: City Secretary (CITY SEAL) 50338988.1 EXHIBIT A LETTER AGREEMENT 50338988.1 A-1 D. General Matters. 1. This Letter Agreement shall be governed by Texas law. 2. This Letter Agreement may be executed in counterparts by all parties hereto and such counterparts, taken together, shall be deemed to be one instrument. 3. Time is of the essence in the performance of this Letter Agreement. CITY OF SCHERTZ, TEX S Sy ' rsc wa e, Assistant City Manager Acknowledged and Agreed: JEFFREY KAHN ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on the day of October, 2010 by Jeffrey Kahn. (SEAL) Notary Public in and for the State of Texas Printed Name of Notary My Commission Expires: 50337302.2 4 City of Schertz, Texas 1400 Schertz Parkway Schertz, Texas 78154 October 19, 2010 Mr. Jeffrey Kahn 206 Cliffside Drive San Antonio, TX 78231 Re: Connecting the Corridor Oaks Mobile Home Park to the City of Schertz Sewer System Dear Mr. Kahn: This letter agreement (this "Letter Agreement") is between the City of Schertz, Texas (the "City") and Jeffrey Kahn ("Kahn") with respect to connecting the Corridor Oaks Mobile Home Park (the "Kahn Property") to the City's sewer system. A. Background. 1. The Kahn Property has been served by a septic system located on the property. 2. City ordinance allows an owner of property to continue to use a working septic system located on the property until such time as the septic system fails. At such time, the property owner must discontinue use of the septic system and connect the property to the City's sewer system. 3. The City believes that the septic system serving the Kahn Property failed and that Kahn repaired the septic system after the septic system failure. As a result, on May 18, 2010, the City issued Citation No. 0482 against Kahn for violation of Chapter 90, Article III, Section 90-78 of the City's Code of Ordinances (the "Citation"). 4. The Kahn Property is located adjacent to a Walgreen's property (the "Wal r~ een's Property"). The City's sewer line crosses only a portion of the Walgreen's Property and does not extend to the Walgreen/Kahn common property line. B. Agreements. To resolve this matter, for and in consideration of the covenants and agreements set forth in this Letter Agreement and other good and valuable consideration, the receipt and sufficiency of which consideration are hereby acknowledged and agreed, the City and Kahn agree as follows: 50337302.2 1. No later than 5:00 p.m. on November 16, 2010, Kahn shall pay the City by cashier's or certified check the amount of Twenty Six Thousand Eight Hundred Ninety Four and No/100 Dollars ($26,894), which is one-half of the full amount of the impact fees related to connecting the Kahn Property to the City's sewer system in the amount of Fifty Three Thousand Seven Hundred Eighty Eight and No/100 Dollars ($53,788.00) for the seventeen living units on the Kahn property . (the "Impact Fees"). 2. The City, at its sole cost and expense, will secure an easement across the frontage of the Walgreen's Property to extend the sewer line to the Walgreen/Kahn common property line (the "Wal~reen's Easement"), and the City, at the City's sole cost and expense, will extend the sewer line across the Walgreen's Property through the Walgreen's Easement to the Walgreen/Kahn common property line. 3. The City will notify Kahn in writing when it has acquired the Walgreen's Easement. 4. Kahn will grant an easement to the City across the entire frontage of the Kahn Property at a location approved by the City to connect the sewer line across the Kahn Property to the edge of the adjoining property (the "Kahn Easement"). The Kahn Easement will be composed of a sixteen foot (16') wide permanent easement and a twenty foot (20') wide temporary construction easement. The ,City Engineer will consult with Kahn's engineer concerning the location of the Kahn easement and the depth of the sewer line within the Kahn Easement; final approval of such location and depth shall be made by the City Engineer. 5. The City will prepare the easement agreement for the Kahn Easement (the "Kahn Easement Agreement") within three (3) business days after execution of this Letter Agreement by Kahn. Kahn will execute the Kahn Easement Agreement and return a fully executed and acknowledged original of the Kahn Easement Agreement to the City within two (2) business days after Kahn's receipt of the Kahn Easement Agreement from the City. 6. At Kahn's sole cost and expense, Kahn's engineer will design, at or above City standards and the standards of the Texas Commission on Environmental Quality ("TCEQ"), (a) a sewer line in the Kahn Easement from the Walgreen/Kahn common property line across the entire frontage of the Kahn Property to the edge of the adjoining property (the "Kahn Property Sewer Line"), (b) a sewer line to each of the mobile home sites on the Kahn Property (such connecting lines, the "Connecting Lines"), and (c) plans for capping the septic system. Kahn or his engineer will submit the plans for the Kahn Property Sewer Line, the Connecting Lines, and the septic system capping to the City for review and approval and to TCEQ. Such plans will be submitted on a schedule to permit Kahn to comply with the requirements of paragraph B.l 1. below. 50337302.2 2 7. If the plans for the Kahn Property Sewer Line, the Connecting Lines, and capping the septic system are acceptable to the City, the plans will be approved by the City within two (2) business days. If the plans are not acceptable, Kahn's engineer will modify the plans to be in compliance with City requirements, Kahn's engineer will confirm with TCEQ that, if TCEQ chooses to review such plans, it has approved those plans. 8. The City will begin construction on the portion of the sewer line to be located in the Walgreen's Easement within five (5) business days after the later of (a) obtaining the Walgreen's Easement and (b) receiving any approval required by TCEQ, and the City expects that it will complete such portion of the project by January 4, 2011 (the "Anticipated City Completion Date"), although the actual completion date maybe earlier or later (the "Actual City Completion Date"). The City will notify Kahn in writing of the Actual City Completion Date. 9. Upon the City's completion of that portion of the project, Kahn will pay the City the remaining portion of the Impact Fees, Twenty Six Thousand Eight Hundred Ninety Four and No/100 Dollars ($26,894) by cashier's or certified check; provided, Kahn shall make such payment not later than two (2) business days after the earlier of the Anticipated City Completion Date and the Actual City Completion Date. 10. Subject to Kahn's payment of the final installment of the Impact Fees, Kahn, at Kahn's sole cost and expense, will build the Kahn Property Sewer Line and the Connecting Lines and cap the septic tank in accordance with the approved plans. 11. Kahn, at Kahn's sole cost and expense, will connect the Connecting Lines to the mobile homes and the Kahn Property Sewer Line. 12. Kahn will begin construction of the Kahn Property Sewer Line and the Connecting Lines within ten (10) business days after the latest of (a) the date the City approves the plans for the Kahn Property Sewer Line and the Connecting Lines, (b) the date TCEQ approves such plans or declines to reviewgithem, (c) the Anticipated City Completion Date, and (d) the Actual City Completion Date. Kahn will complete such construction, including disconnecting and capping the septic system and connecting all mobile home units to the Connecting Lines, within twenty (20) business days after commencement of such construction. Kahn agrees that the City may issue a stop work order until, Kahn pays the final installment of the Impact Fees. C. Acknowledgement /Dismissal of Citation. The terms and obligations set forth in this Letter Agreement shall be accepted by Kahn by delivery of an executed and acknowledged original of this Letter Agreement no later than 5:00 pm on October 25, 2010. If this Letter Agreement is accepted by Kahn in accordance with the previous sentence, the City will dismiss the Citation on the date Kahn submits to the City the plans described in paragraph B.6. above. 50337302.2 3 RESOLUTION NO. 10-R-59 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A LETTER AGREEMENT WITH JEFFREY KAHN, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the City enter into a Letter Agreement with Jeffrey Kahn relating to connecting the Corridor Oaks Mobile Home Park to the City of Schertz Sewer System; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Jeffrey Kahn pursuant to the Letter Agreement attached hereto as Exhibit A (the "Agreement"). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Agreement with Jeffrey Kahn in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid; the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after. its final passage, and it is so resolved. 50338988. I EXHIBIT A LETTER AGREEMENT 50338988.1 A-1 PASSED AND ADOPTED, this 19th day of October, 2010. CITY OF SCHERTZ, TEXAS Ma ATTEST: City Secretary (CITY SEAL) 50338988.1