R-1426-5-96RESOLUTION NO. 1426-5-96 (R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, APPROVING A SETTLEMENT AGREEMENT
BETWEEN ALLEN SEWER ASSOCIATES AND PARTNERS JOINT
VENTURE ("ASAP"), THE CITY OF ALLEN, TEXAS, BRIAR RIDGE
INVESTMENTS INC. AND TWIN CREEKS GOLF LIMITED, RELATED TO
OWNERSHIP RIGHTS TO A CERTAIN SEWER LINE WITHIN THE CITY
OF ALLEN AND SETTLEMENT OF CERTAIN LAWSUITS ATTENDANT
THERETO, AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS
RELATED THERETO.
WHEREAS, on September 16, 1985, the City of Allen entered into a contract titled the "Sanitary Sewer Line
Construction Contract and Pro Rata Refunding Agreement," the purpose of which was to allow the construction
of a sewer line by ASAP and in consideration thereto, the City Council would adopt an ordinance implementing
pro rata fees for all properties within the service area of said sewer line; and,
WHEREAS, on December 7, 1989, the City Council did adopt Ordinance No. 958-12-89, imposing said pro
rata charges; and,
WHEREAS, in November of 1993, ASAP filed suit against Briar Ridge and the City of Allen alleging that
it was the only entity entitled to receive pro rata sewer fee refunds to be collected by the City. The lawsuit is
currently under appeal in the 5th Judicial District Court of Appeals of Dallas, Texas; and,
WHEREAS, in October of 1994, Twin Creeks Golf, Limited filed suit against the City alleging among other
things that the sewer fee ordinance was invalid and unenforceable; and,
WHEREAS, the parties to the case agreed to mediate the lawsuits and as a result of the mediation agreed to
settle the ASAP lawsuit, the ASAP appeal, and the golf course lawsuit in terms more precisely set out in the
attached settlement agreement; and,
WHEREAS, the City Council finds that to ensure the orderly growth of the community it is in the best interest
of the City to approve such settlement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS THAT:
Section 1: The City Council hereby approves the attached settlement agreement and authorizes its execution
by the City Manager.
Section 2: City Council authorizes the City Manager to take all actions necessary to perfect closing of the
settlement agreement, including making settlement. payments not to exceed $260,231. It is understood that
these funds or fees are costs paid by others and that the City of Allen shall not bear any of these direct
settlement costs.
Section 3: City Council recognizes that under this agreement, subsequent to closing, the Council will be
required to repeal Ordinance No. 958-12-89 that currently imposes the pro rata fees.
Section 4: Council authorizes the execution of the assignment agreement, a copy of which is attached hereto,
that transfers all the easements and improvements within the easement of a current ASAP sewer system to the
North Texas Municipal Water District (NTMWD). It is understood that the sewer line will become part of
NTMWD's regional waste water collection system.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 2ND DAY OF MAY 1996.
APPROVED:
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Farmer, MAYOR
ATTEST:
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y M ison, CMC, CITY SECRETARY
Resolution No. 1426-5-96 (R) Page 2