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R-12-12-20-H3 - 12/20/2012RESOLUTION NO. R-12-12-20-113 WHEREAS, the City desires to purchase a waterline easement in, under and across a 1.308 acre tract of land for the City's Regional Water System — Treated Transmission Line Segment 3 Project, and WHEREAS, Diamond K Plus, Ltd., the owner of the Property, have agreed to sell said Property to the City, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Easement Contract with Diamond K Plus, Ltd., for the purchase of the above described Property, a copy of said Contract being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 20th day of December, 2012. ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: j Wyk/t,- AW SARA L. WHITE, City Clerk O:\wdox\SCC Ints\0l 12\ 1204\MUMCIPAL\00264156.DOC/rmc EXHIBIT „A„ Segment 3 — Parcel 2 EASEMENT CONTRACT State of Texas County of Williamson THIS EASEMENT CONTRACT ("Contract") is made by and between DIAMOND K PLUS, LTD., a Texas limited partnership, (referred to in this Contract as "Seller", whether one or more) and the CITY OF ROUND ROCK, TEXAS (referred to in this Contract as "Purchaser"), upon the terms and conditions set forth in this Contract. ARTICLE I PURCHASE AND SALE By this Contract, Seller sells and agrees to convey, and Purchaser purchases and agrees to pay for, the property interests described as follows: Waterline easement in, under and across a 1.308 acre (56,975 square foot), tract of land situated in the Washington Anderson Survey, Abstract No. 15, in Williamson County, Texas, being a portion of that called 83.25 acre tract of land (Tract 1), conveyed to Diamond K Plus, Ltd., by instrument recorded in Document No.2005003584, of the Official Public Records of Williamson County, Texas, said 1.308 acre (56,975 square foot) tract of land being more particularly described by metes and bounds in Exhibit "A" attached hereto and incorporated herein, as well as that temporary construction easement shown in the attached Exhibit "A", said 1.308 acre (56,975 square foot) tract and related temporary construction easement are referred to collectively, herein as the "Property"; for the consideration and upon and subject to the terms, provisions, and conditions set forth below. ARTICLE II PURCHASE PRICE Amount of Purchase Price 2.01. The purchase price for the Property shall be the sum of TWO HUNDRED FORTY- SEVEN THOUSAND FIVE HUNDRED FORTY SEVEN and no/100 Dollars ($247,547.00). Payment of Purchase Price 2.02. The Purchase Price shall be payable in cash at the closing. 00261108.doc/jmr Segment 3 — Parcel 2 ARTICLE III PURCHASER'S OBLIGATIONS Conditions to Purchaser's Obli atg ions 3.01. The obligations of Purchaser hereunder to consummat( contemplated hereby are subject to the satisfaction of each of the following which may be waived in whole or in part by Purchaser at or prior to the closinf PreliminEy Title Commitment 3.02. Within twenty (20) days after the date hereof, Purchaser, at Purchaser's sole cost and expense, shall have caused the Gracy Title Company ("Title Company") to issue a preliminary title report (the "Title Commitment") accompanied by copies of all recorded documents relating to easements, rights-of-way, etc., affecting the Property. In the event that title to the property is not satisfactory to Purchaser, Seller shall promptly undertake to eliminate or modify all unacceptable matters to the reasonable satisfaction of Purchaser, or shall provide Purchaser with any assistance reasonably requested as necessary to eliminate or modify such matters. Miscellaneous Conditions 3.03. Seller shall have performed, observed, and complied with all of the covenants, agreements, and conditions required by this Contract to be performed, observed, and complied with by Seller prior to or as of the closing. ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby represents and warrants to Purchaser as follows, which representations and warranties shall be deemed made by Seller to Purchaser also as of the closing date, to the best of Seller's knowledge: (1) There are no parties in possession of any portion of the Property as lessees, tenants at sufferance, or trespassers; (2) Seller has complied with all applicable laws, ordinances, regulations, statutes, rules and restrictions relating to the Property, or any part thereof; (3) The Property herein is being conveyed to Purchaser under threat of condemnation. 2 Segment 3 — Parcel 2 ARTICLE V CLOSING Closing Date 5.01. The closing shall be held at the office of Gracy Title Company, 2007 Sam Bass Road, Suite 1007, Round Rock, Texas 78681, on or before the 30th day after the effective date of this Contract, or at such time, date, and place as Seller and Purchaser may agree upon, or within 10 days after the completion of any title curative matters, including partial lien releases, subordination agreements, or probate issues, if necessary for items as shown on the Title Commitment (which date is herein referred to as the "Closing Date"). Seller's Obligations at Closing 5.02. At the closing Seller shall: (1) Deliver to Purchaser a duly executed and acknowledged Waterline Easement in the form attached hereto as Exhibit "A" in and to all of the Property described herein, free and clear of any and all liens, encumbrances, conditions, easements, assessments, and restrictions, except for the following or as stated in the easement document: (a) General real estate taxes for the year of closing and subsequent years not yet due and payable; (b) Any exceptions approved by Purchaser pursuant to Article III hereof; and (c) Any exceptions approved by Purchaser in writing. (2) Deliver to Purchaser a Texas Owner's Title Policy at Purchaser's sole expense, issued by Title Company, in Purchaser's favor in the full amount of the purchase price, insuring Purchaser's easement interest in the Property subject only to those title exceptions listed herein, such other exceptions as may be approved in writing by Purchaser, and the standard printed exceptions contained in the usual form of Texas Owner's Title Policy, provided, however: (a) The boundary and survey exceptions shall be deleted; (b) The exception as to restrictive covenants shall be endorsed "None of Record;" and (c) The exception as to the lien for taxes shall be limited to the year of closing and shall be endorsed "Not Yet Due and Payable." (3) Deliver to Purchaser possession of the Property, unless possession is delivered prior to Segment 3 - Parcel 2 that time pursuant to any other provision of this contract. Purchaser's Obligations at Closing 5.03. At the Closing, Purchaser shall pay the cash portion of the purchase price. Closing Costs 5.04. All costs and expenses of closing in consummating the sale and purchase of the Property shall be borne and paid as follows: (1) Owner's Title Policy and survey to be paid by Purchaser. (2) Easement, tax certificates, and title curative matters, if any, paid by Purchaser. (3) All other closing costs shall be paid by Purchaser. (4) Attorney's fees paid by each respectively. ARTICLE VI MISCELLANEOUS Notice 6.01. Any notice required or permitted to be delivered hereunder shall be deemed received when sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to Seller or Purchaser, as the case may be, at the address set forth below the signature of the party. Texas Law to Apply 6.02. This Contract shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Williamson County, Texas. Parties Bound 6.03. This Contract shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Contract. 4 Segment 3 — Parcel 2 Legal Construction 6.04. In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, this invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Contract shall be construed as if the invalid, illegal, or unenforceable provision had never been contained herein. Prior Agreements Superseded 6.05. This Contract constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. Time of Essence 6.06. Time is of the essence in this Contract. Gender 6.07. Words of any gender used in this Contract shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. Memorandum of Contract 6.08. Upon request of either party, both parties shall promptly execute a memorandum of this Contract suitable for filing of record. Compliance 6.09 In accordance with the requirements of Section 20 of the Texas Real Estate License Act, Purchaser is hereby advised that it should be furnished with or obtain a policy of title insurance or Purchaser should have the abstract covering the Property examined by an attorney of Purchaser's own selection. Effective Date 6.10 This Contract shall be effective as of the date it is approved by the Round Rock City Council, which date is indicated beneath the Mayor's signature below. Possession and use agreement 6.11 By signing this Contract, Seller agrees to allow Purchaser to use and possess the 5 Segment 3 — Parcel 2 Property for the purpose of constructing and/or improving a waterline and related facilities thereon, upon full execution of this contract. SELLER: DIAMOND K PLUS, LTD. By: Diamond K Plus Management, LLC a Texas limited liability company, its general partner By The hil R. Krienke, Jr., Manager 1) P. . Box 306 Round Rock, Texas 78680 PURCHASER: CITY OF ROUND ROCK IM Date: Alan McGraw, Mayor 221 E. Main Street Round Rock, Texas 78664 0 Exhibit "A" CITY OF ROUND ROCK WATERLINE EASEMENT THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS: COUNTY OF WILLIAMSON That Diamond K Plus, Ltd., a Texas limited partnership, whose current address is PO Box 306, Round Rock, Texas 78680, and its successors and assigns, (hereinafter referred to as "Grantor"), for and in consideration of the sum of TEN and NO/100 DOLLARS ($10.00) and other good and valuable consideration paid by the CITY OF ROUND ROCK, TEXAS, a municipal corporation (hereinafter referred to as "Grantee"), whose mailing address is 221 East Main Street, Round Rock, Texas 78664, the receipt and sufficiency of which is hereby acknowledged, does hereby GRANT, SELL and CONVEY unto Grantee a perpetual easement and right-of-way to construct, install, operate, maintain, inspect, reconstruct, enlarge, relocate, rebuild, repair, and remove a water transmission and distribution system and waterlines, together with all necessary lines, pipes, conduits, valves, vaults, manholes, ventilators, and other equipment, improvements and appurtenances thereto, in, upon, over, under, above and across the following described property of Grantor, to -wit: Being a 1.308 acre (56,975 square foot), tract of land situated in the Washington Anderson Survey, Abstract No. 15, in Williamson County, Texas, being a portion of that called 83.25 acre tract of land (Tract 1), conveyed to Diamond K Plus, Ltd., by instrument recorded in Document No.2005003584, of the Official Public Records of Williamson County, Texas, said 1.308 acre (56,975 square foot) tract of land being more particularly described in Exhibit "A" attached hereto and incorporated herein for all purposes. This conveyance is made and accepted subject to any and all conditions and restrictions, if any, relating to the hereinabove described property to the extent, and only to the extent, that the same may still be in force and effect and shown of record in the office of the County Clerk of Williamson County, Texas. Except as otherwise noted, the easement, rights and privileges herein granted shall be perpetual; provided, however, that said easement, rights and privileges shall cease and revert to Grantor in the event the said waterline is abandoned, or shall cease to be used, for a period of five (5) consecutive years. Grantor covenants that it will not convey any other easement or conflicting rights within the area covered by this grant without the express written consent of Grantee, which consent shall not be unreasonably withheld. Grantee shall have the right to review any proposed easement or conflicting use of the easement to determine the effect, if any, on the waterline contemplated herein. Prior to granting its consent for other easements, Grantee may require reasonable safeguards to protect the integrity of the waterline. As required by this paragraph, express written consent of Grantee shall be obtained by Grantor in the following manner: advance written notice must be given by certified mail to the (1) City of Round Rock City Manager at 221 East Main Street, Round Rock, Texas 78664, and (2) City Engineer at 2008 Enterprise Drive, Round Rock, Texas 78664. Following receipt of such notice, the City of Round Rock shall have ten (10) days in which to respond in writing granting consent, conditioning consent upon reasonable safeguards, or denying consent. 00251803.doc Grantor further grants to Grantee: (a) the right of ingress to and egress from the easement over and across Grantor's property by means of roads and lanes thereon, if such exist, otherwise by such route or routes as shall occasion the least practicable damage and inconvenience to Grantor; provided that such right of ingress and egress shall not extend to any portion of Grantor's property which is isolated from the easement by any public highway or road now crossing or hereafter crossing the property; the foregoing right of ingress and egress includes the right of the Grantee to disassemble, remove, take down, and clear away any barricade or other structure which obstructs, prevents, or hinders Grantee's ingress to and egress from the Grantor's property, and should Grantee deem it necessary to so disassemble, remove, take down, or clear away any such barricade or other structure, Grantee shall, as soon as is reasonably feasible, replace or restore Grantor's property to as similar a condition as reasonably practicable as existed immediately prior to Grantee's actions pursuant to this provision, unless said barricade or other structure is inconsistent with the rights conveyed to Grantee herein; (b) the right of construction, maintaining and using such roads on and across the property as Grantee may deem necessary in the exercise of the right of ingress and egress; (c) the right to mark the location of the easement by suitable markers, provided that such markers shall be placed in locations which will not interfere with any reasonable use Grantor shall make of the easement; (d) the right to grade the easement for the full width thereof and to extend the cuts and fills for such grading into and on the land along and outside the easement to such extent as Grantee may find reasonably necessary; (e) the right from time to time to trim and to cut down and clear away any and all trees and brush now or hereafter on the easement and to trim and to cut down and clear away any trees on either side of the easement which now or hereafter in the opinion of Grantee may be a hazard to the pipeline, valves, appliances or fittings, by reason of the danger of falling thereon or root infiltration therein, or which may otherwise interfere with the exercise of Grantee's rights hereunder, provided, however, that all trees which Grantee is hereby authorized to cut and remove, if valuable for timber or firewood, shall continue to be the property of Grantor, but all tops, lops, brush and refuse wood shall be burned or removed by Grantee; (f) the right to install, maintain and use gates in all fences which now cross or shall hereafter cross the easement; and (g) the right to support the pipelines across ravines and watercourses with such structures as Grantee shall deem necessary. (h) in addition to the permanent easement area granted above, Grantor also grant Grantee a temporary construction easement as shown on Exhibit "A". Such temporary construction easement shall terminate upon completion of construction activities. 0) Grantee hereby covenants and agrees: (a) Grantee shall not fence the easement; (b) Grantee shall promptly backfill any trench made by it on the easement and repair any damage it shall do to Grantor's private roads or lanes on the lands; (c) Grantee shall indemnify Grantor against any loss and damage which shall be caused by the exercise of the rights of ingress and egress or by any wrongful or negligent act or omission of Grantee's agents or employees in the course of their employment. Grantor also retains, reserves, and shall continue to enjoy the surface of such easement for any and all purposes which do not interfere with and prevent the use by Grantee of the easement, including the right to build and use the surface of the easement for private streets, roads, driveways, alleys, walks, gardens, lawns, parking areas and other like uses; provided Grantor shall not erect or construct on the easement any building or other structure such as a patio, swimming pool, sport court, storage shed, accessory building, barbeque pit or similar structure, or drill or operate any well, or construct any reservoir or other obstruction on the easement, or diminish or substantially add to the ground cover over the pipelines. Grantee shall not be responsible or liable for the removal, repair or damage to any property, structure, building, or other use inconsistent with the rights conveyed to Grantee by the easement; provided, however, before constructing any improvements, at least ten (10) days' written notice shall be provided to Grantee of the general plans of the improvement to be constructed on the easement, and Grantor must first obtain the consent and approval from Grantee of the construction and location of any improvements within the easement. It is understood and agreed that any and all equipment and facilities placed upon said property by Grantee shall remain the property of Grantee. Grantor hereby dedicates the easement as a public utility waterline easement for the purposes stated herein. TO HAVE AND TO HOLD the rights and interests described unto Grantee and its successors and assigns forever, and Grantor does hereby bind itself, and its successors and assigns and legal representatives, to warrant and forever defend, all and singular, the above-described easement and rights and interests unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming, or to claim same, or any part thereof. IN WITNESS WHEREOF, Grantor has caused this instrument to be executed this day of .2012. (Signature on the following page) GRANTOR: Diamond K Plus, Ltd. I� Diamond K Plus Management, LLC a Texas limited liability company, its general partner Theophil R. Krienke, Jr., Manager ACKNOWLEDGMENT THE STATE OF COUNTY OF This instrument was acknowledged before me on this the day of the month of , 2012, by Theophil R. Krienke, manager of Diamond K Plus Management, LLC, general partner of Diamond K Plus, Ltd., known by me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of and on behalf of said entity and in the capacity and for the purposes and consideration therein expressed. After recording please return to: Sheets & Crossfield, P.C. 309 East Main Street Round Rock, Texas 78664 4 Notary Public, State of PARCEL 2 DIAMOND K PLUS, LTD COUNTY: WILLIAMSON EXHIBIT A PROPERTY DESCRIPTION Page 1 of 5 Revised 06-07-2012 DESCRIPTION OF A 1.308 ACRE (56,975 SQUARE FOOT), TRACT OF LAND SITUATED IN THE WASHINGTON ANDERSON SURVEY, ABSTRACT NO. 15, IN WILLIAMSON COUNTY, TEXAS, BEING A PORTION OF THAT CALLED 83.25 ACRE TRACT OF LAND (TRACT 1), CONVEYED TO DIAMOND K PLUS, LTD, BY INSTRUMENT RECORDED IN DOCUMENT NO. 2005003584, OF THE OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY, TEXAS, SAID 1.308 ACRE (56,975 SQUARE FOOT) TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING FOR REFERENCE at an iron rod found with plastic cap stamped "CCC -4835" in the existing southerly right-of-way line of County Road 272 (right-of-way width varies), same being in the northerly boundary line of said 83.25 acre tract; THENCE, with said right-of-way line, same being said northerly boundary line, S 69023'48" W for a distance of 88.93 feet to a calculated point, being the northeast corner of the remainder of that 149.95 acre tract conveyed to Theophil R. Krienke Jr. and Sharon R. Krienke by instrument recorded in Vol. 483, Pg. 475 of the Deed Records of Williamson County, Texas, same being the northwest corner of said 83.25 acre tract; THENCE, departing said right-of-way line, with the common boundary line of said remainder tract and said 83.25 acre tract, S 27°46'00" E for a distance of 44.23 feet to calculated point for the most northwesterly corner and the POINT OF BEGINNING of the herein described tract; THENCE, departing said common boundary line, and through the interior of said 83.25 acre tract, the following four (4) courses: 1) Along a curve to the right, having a radius of 4,950.00 feet, a central angle of 02°15'34", a chord which bears, N 75°0451" E, a distance of 195.18 feet, with an arc length of 195.20 feet, to a calculated point; 2) N 76012'38" E for a distance of 203.01 feet to a calculated point, for the beginning of a curve to the left; 3) Along said curve to the left, having a radius of 5,050.00 feet, a central angle of 11035'26", a chord which bears, N 70024'55" E, a distance of 1019.85 feet, with an arc length of 1021.59 feet, to a calculated point; 4) N 64°37'12" E, for a distance of 480.38 feet to a calculated point, being in the westerly right-of-way line of said County Road 272 (AKA CR 178), same being in the easterly boundary line of said 83.25 acre tract, for the most northeasterly corner of the herein described tract; 5) THENCE, with said right-of-way fine, same being the easterly boundary line of said 83.25 acre tract, S 24007'55" E for a distance of 30.01 feet to a calculated point, being the most southeasterly corner of the herein described tract, and from which an iron rod found with plastic cap stamped "CCC -4835" being in said common boundary line bears, S 24007'55" E at a distance of 425.93 feet; PARCEL 9 DIAMOND K PLUS, LTD COUNTY: WILLIAMSON Page 2 of 5 THENCE, departing said right-of-way line, and through the interior of said 83.25 acre tract, the following four (4) courses: 6) S 64°37'12" W for a distance of 479.73 feet to a calculated point, for the beginning of a curve to the right; 7) Along said curve to the right, having a radius of 5,080.00 feet, a central angle of 11°35'26", a chord which bears, S 70024'55" W, a distance of 1025.91 feet, with an arc length of 1027.66 feet, to a calculated point; 8) S 76°12'38" W for a distance of 203.01 feet to a calculated point, for the beginning of a curve to the left; 9) Along said curve to the left, having a radius of 4,920.00 feet, a central angle of 02°11'13", a chord which bears, S 75°07'01" W, a distance of 187.78 feet, with an are length of 187.79 feet, to a calculated point, being in the common boundary line of said remainder tract, and said 83.25 acre tract, for the most southwesterly corner of the herein described tract, and from which a 60d nail found on said common boundary line bears, S 2746'00" E at a distance of 72.05 feet; 10) THENCE, with said common boundary line N 27046100" W for a distance of 30.64 feet to the POINT OF BEGINNING, containing 1.308 acres (56,975 square feet) of land, more or less. NOTE: There is also a variable width Temporary Construction Easement northerly of Calls 1 through 4 of the above description, as depicted on the accompanying Parcel Plat. All bearings recited herein are based on the Texas State Plane Coordinate System, Central Zone No. 4203, NAD 83. This property description is accompanied by a separate plat. That I, Lawrence M. Russo, a Registered Professional Land Surveyor, do hereby certify that the above description is true and correct to the best of my knowledge and belief and that the property described herein was determined by a survey made on the ground under my direction and supervision. WITNESS MY HAND AND SEAL at Round Rock, Williamson County, Texas. )' awrence M. Russo 1 Registered Professional Land Su veyor No. 5050 Inland Geodetics, L.P. Firm Reg. 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Utilities and Environmental Services Director Item Summary: The Regional Water System - Treated Transmission Line Segment 3 is the final segment required to deliver Brushy Creek Regional Utility Authority (BCRUA) treated water to the City of Round Rock's Water Distribution System. This 48 -inch potable waterline will be approximately 12,000 linear feet . Segment 3 will connect on the east end of Treated Waterline Segment 2C at Ronald Regan Boulevard and terminate at an existing 48 -inch stub -out at the intersection of C.R. 175 and RM 1431. The goal is to have this waterline constructed by the summer of 2014. The Segment 3 waterline has been designed to be within an exclusive 30 -foot City of Round Rock Easement with an additional 50 foot Temporary Construction Easement. This Purchase Agreement for $247,547 is for these easements that are located on the Diamond K. Plus, Ltd. property. Cost: $247,547 Source of Funds: Self -Financed Water Construction Recommended Action: Approval � J :707(D LMLJ 3 X °Cv O w 4 0 � Segment 3 - Parcel 2 EASEMENT CONTRACT State of Texas County of Williamson THIS EASEMENT CONTRACT ("Contract") is made by and between DIAMOND K PLUS, LTD., a Texas limited partnership, (referred to in this Contract as "Seller", whether one or more) and the CITY OF ROUND ROCK, TEXAS (referred to in this Contract as "Purchaser"), upon the terms and conditions set forth in this Contract. ARTICLE I PURCHASE AND SALE By this Contract, Seller sells and agrees to convey, and Purchaser purchases and agrees to pay for, the property interests described as follows: Waterline easement in, under and across a 1.308 acre (56,975 square foot), tract of land situated in the Washington Anderson Survey, Abstract No. 15, in Williamson County, Texas, being a portion of that called 83.25 acre tract of land (Tract 1), conveyed to Diamond K Plus, Ltd., by instrument recorded in Document No.2005003584, of the Official Public Records of Williamson County, Texas, said 1.308 acre (56,975 square foot) tract of land being more particularly described by metes and bounds in Exhibit "A" attached hereto and incorporated herein, as well as that temporary construction easement shown in the attached Exhibit "A", said 1.308 acre (56,975 square foot) tract and related temporary construction easement are referred to collectively, herein as the "Property"; for the consideration and upon and subject to the terms, provisions, and conditions set forth below. ARTICLE II PURCHASE PRICE Amount of Purchase Price 2.01. The purchase price for the Property shall be the sum of TWO HUNDRED FORTY- SEVEN THOUSAND FIVE HUNDRED FORTY SEVEN and no/100 Dollars ($247,547.00). Payment of Purchase Price 2.02. The Purchase Price shall be payable in cash at the closing. 00261108.doc/jmr Segment 3 — Parcel 2 ARTICLE III PURCHASER'S OBLIGATIONS Conditions to Purchaser's Obligations 3.01. The obligations of Purchaser hereunder to consummate the transactions contemplated hereby are subject to the satisfaction of each of the following conditions (any of which may be waived in whole or in part by Purchaser at or prior to the closing.) Prelimingy Title Commitment 3.02. Within twenty (20) days after the date hereof, Purchaser, at Purchaser's sole cost and expense, shall have caused the Gracy Title Company ("Title Company") to issue a preliminary title report (the "Title Commitment") accompanied by copies of all recorded documents relating to easements, rights-of-way, etc., affecting the Property. In the event that title to the property is not satisfactory to Purchaser, Seller shall promptly undertake to eliminate or modify all unacceptable matters to the reasonable satisfaction of Purchaser, or shall provide Purchaser with any assistance reasonably requested as necessary to eliminate or modify such matters. Miscellaneous Conditions 3.03. Seller shall have performed, observed, and complied with all of the covenants, agreements, and conditions required by this Contract to be performed, observed, and complied with by Seller prior to or as of the closing. ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby represents and warrants to Purchaser as follows, which representations and warranties shall be deemed made by Seller to Purchaser also as of the closing date, to the best of Seller's knowledge: (1) There are no parties in possession of any portion of the Property as lessees, tenants at sufferance, or trespassers; (2) Seller has complied with all applicable laws, ordinances, regulations, statutes, rules and restrictions relating to the Property, or any part thereof, (3) The Property herein is being conveyed to Purchaser under threat of condemnation. 2 Segment 3 — Parcel 2 ARTICLE V CLOSING Closing Date 5.01. The closing shall be held at the office of Gracy Title Company, 2007 Sam Bass Road, Suite 1007, Round Rock, Texas 78681, on or before the 30th day after the effective date of this Contract, or at such time, date, and place as Seller and Purchaser may agree upon, or within 10 days after the completion of any title curative matters, including partial lien releases, subordination agreements, or probate issues, if necessary for items as shown on the Title Commitment (which date is herein referred to as the "Closing Date"). Seller's Obligations at Closing 5.02. At the closing Seller shall: (1) Deliver to Purchaser a duly executed and acknowledged Waterline Easement in the form attached hereto as Exhibit "A" in and to all of the Property described herein, free and clear of any and all liens, encumbrances, conditions, easements, assessments, and restrictions, except for the following or as stated in the easement document: (a) General real estate taxes for the year of closing and subsequent years not yet due and payable; (b) Any exceptions approved by Purchaser pursuant to Article III hereof; and (c) Any exceptions approved by Purchaser in writing. (2) Deliver to Purchaser a Texas Owner's Title Policy at Purchaser's sole expense, issued by Title Company, in Purchaser's favor in the full amount of the purchase price, insuring Purchaser's easement interest in the Property subject only to those title exceptions listed herein, such other exceptions as may be approved in writing by Purchaser, and the standard printed exceptions contained in the usual form of Texas Owner's Title Policy, provided, however: (a) The boundary and survey exceptions shall be deleted; (b) The exception as to restrictive covenants shall be endorsed "None of Record;" and (c) The exception as to the lien for taxes shall be limited to the year of closing and shall be endorsed "Not Yet Due and Payable." (3) Deliver to Purchaser possession of the Property, unless possession is delivered prior to 3 Segment 3 — Parcel 2 that time pursuant to any other provision of this contract. Purchaser's Obligations at Closinjv 5.03. At the Closing, Purchaser shall pay the cash portion of the purchase price. Closing Costs 5.04. All costs and expenses of closing in consummating the sale and purchase of the Property shall be borne and paid as follows: (1) Owner's Title Policy and survey to be paid by Purchaser. (2) Easement, tax certificates, and title curative matters, if any, paid by Purchaser. (3) All other closing costs shall be paid by Purchaser. (4) Attorney's fees paid by each respectively. ARTICLE VI MISCELLANEOUS Notice 6.01. Any notice required or permitted to be delivered hereunder shall be deemed received when sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to Seller or Purchaser, as the case may be, at the address set forth below the signature of the party. Texas Law to Apply 6.02. This Contract shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Williamson County, Texas. Parties Bound 6.03. This Contract shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Contract. 4 Segment 3 — Parcel 2 Legal Construction 6.04. In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, this invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Contract shall be construed as if the invalid, illegal, or unenforceable provision had never been contained herein. Prior Agreements Superseded 6.05. This Contract constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. Time of Essence 6.06. Time is of the essence in this Contract. Gender 6.07. Words of any gender used in this Contract shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. Memorandum of Contract 6.08. Upon request of either party, both parties shall promptly execute a memorandum of this Contract suitable for filing of record. Compliance 6.09 In accordance with the requirements of Section 20 of the Texas Real Estate License Act, Purchaser is hereby advised that it should be furnished with or obtain a policy of title insurance or Purchaser should have the abstract covering the Property examined by an attorney of Purchaser's own selection. Effective Date 6.10 This Contract shall be effective as of the date it is approved by the Round Rock City Council, which date is indicated beneath the Mayor's signature below. Possession and use agreement 6.11 By signing this Contract, Seller agrees to allow Purchaser to use and possess the Segment 3 — Parcel 2 Property for the purpose of constructing and/or improving a waterline and related facilities thereon, upon full execution of this contract. SELLER: DIAMOND K PLUS, LTD. By: Diamond K Plus Management, LLC a Texas limited liability company, its general partner By The hil R. Krienke, Jr., Manager P.01' Box 306 Round Rock, Texas 78680 PURCHASER: CITY OF ROUND ROCK By: an McGraw, Mayor 221 E. Main Street Round Rock, Texas 78664 Date: k/,-20 - N/ 3 Exhibit "A" CITY OF ROUND ROCK WATERLINE EASEMENT THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS: COUNTY OF WILLIAMSON That Diamond K Plus, Ltd., a Texas limited partnership, whose current address is PO Box 306, Round Rock, Texas 78680, and its successors and assigns, (hereinafter referred to as "Grantor"), for and in consideration of the sum of TEN and NO/100 DOLLARS ($10.00) and other good and valuable consideration paid by the CITY OF ROUND ROCK, TEXAS, a municipal corporation (hereinafter referred to as "Grantee"), whose mailing address is 221 East Main Street, Round Rock, Texas 78664, the receipt and sufficiency of which is hereby acknowledged, does hereby GRANT, SELL and CONVEY unto Grantee a perpetual easement and right-of-way to construct, install, operate, maintain, inspect, reconstruct, enlarge, relocate, rebuild, repair, and remove a water transmission and distribution system and waterlines, together with all necessary lines, pipes, conduits, valves, vaults, manholes, ventilators, and other equipment, improvements and appurtenances thereto, in, upon, over, under, above and across the following described property of Grantor, to -wit: Being a 1.308 acre (56,975 square foot), tract of land situated in the Washington Anderson Survey, Abstract No. 15, in Williamson County, Texas, being a portion of that called 83.25 acre tract of land (Tract 1), conveyed to Diamond K Plus, Ltd., by instrument recorded in Document No.2005003584, of the Official Public Records of Williamson County, Texas, said 1.308 acre (56,975 square foot) tract of land being more particularly described in Exhibit "A" attached hereto and incorporated herein for all purposes. This conveyance is made and accepted subject to any and all conditions and restrictions, if any, relating to the hereinabove described property to the extent, and only to the extent, that the same may still be in force and effect and shown of record in the office of the County Clerk of Williamson County, Texas. Except as otherwise noted, the easement, rights and privileges herein granted shall be perpetual; provided, however, that said easement, rights and privileges shall cease and revert to Grantor in the event the said waterline is abandoned, or shall cease to be used, for a period of five (5) consecutive years. Grantor covenants that it will not convey any other easement or conflicting rights within the area covered by this grant without the express written consent of Grantee, which consent shall not be unreasonably withheld. Grantee shall have the right to review any proposed easement or conflicting use of the easement to determine the effect, if any, on the waterline contemplated herein. Prior to granting its consent for other easements, Grantee may require reasonable safeguards to protect the integrity of the waterline. As required by this paragraph, express written consent of Grantee shall be obtained by Grantor in the following manner: advance written notice must be given by certified mail to the (1) City of Round Rock City Manager at 221 East Main Street, Round Rock, Texas 78664, and (2) City Engineer at 2008 Enterprise Drive, Round Rock, Texas 78664. Following receipt of such notice, the City of Round Rock shall have ten (10) days in which to respond in writing granting consent, conditioning consent upon reasonable safeguards, or denying consent. 00251803.doc Grantor further grants to Grantee: (a) the right of ingress to and egress from the easement over and across Grantor's property by means of roads and lanes thereon, if such exist, otherwise by such route or routes as shall occasion the least practicable damage and inconvenience to Grantor; provided that such right of ingress and egress shall not extend to any portion of Grantor's property which is isolated from the easement by any public highway or road now crossing or hereafter crossing the property; the foregoing right of ingress and egress includes the right of the Grantee to disassemble, remove, take down, and clear away any barricade or other structure which obstructs, prevents, or hinders Grantee's ingress to and egress from the Grantor's property, and should Grantee deem it necessary to so disassemble, remove, take down, or clear away any such barricade or other structure, Grantee shall, as soon as is reasonably feasible, replace or restore Grantor's property to as similar a condition as reasonably practicable as existed immediately prior to Grantee's actions pursuant to this provision, unless said barricade or other structure is inconsistent with the rights conveyed to Grantee herein; (b) the right of construction, maintaining and using such roads on and across the property as Grantee may deem necessary in the exercise of the right of ingress and egress; (c) the right to mark the location of the easement by suitable markers, provided that such markers shall be placed in locations which will not interfere with any reasonable use Grantor shall make of the easement; (d) the right to grade the easement for the full width thereof and to extend the cuts and fills for such grading into and on the land along and outside the easement to such extent as Grantee may find reasonably necessary; (e) the right from time to time to trim and to cut down and clear away any and all trees and brush now or hereafter on the easement and to trim and to cut down and clear away any trees on either side of the easement which now or hereafter in the opinion of Grantee may be a hazard to the pipeline, valves, appliances or fittings, by reason of the danger of falling thereon or root infiltration therein, or which may otherwise interfere with the exercise of Grantee's rights hereunder, provided, however, that all trees which Grantee is hereby authorized to cut and remove, if valuable for timber or firewood, shall continue to be the property of Grantor, but all tops, lops, brush and refuse wood shall be burned or removed by Grantee; (f) the right to install, maintain and use gates in all fences which now cross or shall hereafter cross the easement; and (g) the right to support the pipelines across ravines and watercourses with such structures as Grantee shall deem necessary. (h) in addition to the permanent easement area granted above, Grantor also grant Grantee a temporary construction easement as shown on Exhibit "A". Such temporary construction easement shall terminate upon completion of construction activities. 2 Grantee hereby covenants and agrees: (a) Grantee shall not fence the easement; (b) Grantee shall promptly backfill any trench made by it on the easement and repair any damage it shall do to Grantor's private roads or lanes on the lands; (c) Grantee shall indemnify Grantor against any loss and damage which shall be caused by the exercise of the rights of ingress and egress or by any wrongful or negligent act or omission of Grantee's agents or employees in the course of their employment. Grantor also retains, reserves, and shall continue to enjoy the surface of such easement for any and all purposes which do not interfere with and prevent the use by Grantee of the easement, including the right to build and use the surface of the easement for private streets, roads, driveways, alleys, walks, gardens, lawns, parking areas and other like uses; provided Grantor shall not erect or construct on the easement any building or other structure such as a patio, swimming pool, sport court, storage shed, accessory building, barbeque pit or similar structure, or drill or operate any well, or construct any reservoir or other obstruction on the easement, or diminish or substantially add to the ground cover over the pipelines. Grantee shall not be responsible or liable for the removal, repair or damage to any property, structure, building, or other use inconsistent with the rights conveyed to Grantee by the easement; provided, however, before constructing any improvements, at least ten (10) days' written notice shall be provided to Grantee of the general plans of the improvement to be constructed on the easement, and Grantor must first obtain the consent and approval from Grantee of the construction and location of any improvements within the easement. It is understood and agreed that any and all equipment and facilities placed upon said property by Grantee shall remain the property of Grantee. Grantor hereby dedicates the easement as a public utility waterline easement for the purposes stated herein. TO HAVE AND TO HOLD the rights and interests described unto Grantee and its successors and assigns forever, and Grantor does hereby bind itself, and its successors and assigns and legal representatives, to warrant and forever defend, all and singular, the above-described easement and rights and interests unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming, or to claim same, or any part thereof. IN WITNESS WHEREOF, Grantor has caused this instrument to be executed this day of .2012. (Signature on the following page) GRANTOR: Diamond K Plus, Ltd. By: Diamond K Plus Management, LLC a Texas limited, liability company, its general partner LJU�G�IIJ`� G�♦ By: Theophil R. Krienke, Jr., Manager ACKNOWLEDGMENT THE STATE OF COUNTY OF This instrument was acknowledged before me on this the day of the month of , 2012, by Theophil R. Krienke, manager of Diamond K Plus Management, LLC, general partner of Diamond K Plus, Ltd., known by me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of and on behalf of said entity and in the capacity and for the purposes and consideration therein expressed. After recording please return to: Sheets & Crossfield, P.C. 309 East Main Street Round Rock, Texas 78664 4 Notary Public, State of PARCEL 2 DIAMOND K PLUS, LTD COUNTY: WILLIAMSON EXHIBIT A PROPERTY DESCRIPTION Page 1 of 5 Revised 06-07-2012 DESCRIPTION OF A 1.308 ACRE (56,975 SQUARE FOOT), TRACT OF LAND SITUATED IN THE WASHINGTON ANDERSON SURVEY, ABSTRACT NO. 15, IN WILLIAMSON COUNTY, TEXAS, BEING A PORTION OF THAT CALLED 83.25 ACRE TRACT OF LAND (TRACT 1), CONVEYED TO DIAMOND K PLUS, LTD, BY INSTRUMENT RECORDED IN DOCUMENT NO. 2005003584, OF THE OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY, TEXAS, SAID 1.308 ACRE (56,975 SQUARE FOOT) TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING FOR REFERENCE at an iron rod found with plastic cap stamped "CCC -4835" in the existing southerly right-of-way line of County Road 272 (right-of-way width varies), same being in the northerly boundary line of said 83.25 acre tract; THENCE, with said right-of-way line, same being said northerly boundary line, S 69°23'48" W for a distance of 88.93 feet to a calculated point, being the northeast corner of the remainder of that 149.95 acre tract conveyed to Theophil R. Krienke Jr. and Sharon R. Krienke by instrument recorded in Vol. 483, Pg. 475 of the Deed Records of Williamson County, Texas, same being the northwest corner of said 83,25 acre tract; THENCE, departing said right-of-way line, with the common boundary line of said remainder tract and said 83.25 acre tract, S 27°46'00" E for a distance of 44.23 feet to calculated point for the most northwesterly corner and the POINT OF BEGINNING of the herein described tract; THENCE, departing said common boundary line, and through the interior of said 83.25 acre tract, the following four (4) courses: 1) Along a curve to the right, having a radius of 4,950.00 feet, a central angle of 02°15'34", a chord which bears, N 75°04'51" E, a distance of 195.18 feet, with an arc length of 195.20 feet, to a calculated point; 2) N 76012'38" E for a distance of 203.01 feet to a calculated point, for the beginning of a curve to the left; 3) Along said curve to the left, having a radius of 5,050.00 feet, a central angle of 11°3526", a chord which bears, N 70024'55" E, a distance of 1019.85 feet, with an arc length of 1021.59 feet, to a calculated point; 4) N 64°37'12" E, for a distance of 480.38 feet to a calculated point, being in the westerly right-of-way line of said County Road 272 (AKA CR 178), same being in the easterly boundary line of said 83.25 acre tract, for the most northeasterly corner of the herein described tract; 5) THENCE, with said right-of-way line, same being the easterly boundary line of said 83.25 acre tract, S 24007'55" E for a distance of 30.01 feet to a calculated point, being the most southeasterly corner of the herein described tract, and from which an iron rod found with plastic cap stamped "CCC -4835" being in said common boundary line bears, S 24007'55" E at a distance of 425.93 feet; PARCEL 9 DIAMOND K PLUS, LTD COUNTY: WILLIAMSON Page 2 of 5 THENCE, departing said right-of-way line, and through the interior of said 83.25 acre tract, the following four (4) courses: 6) S 64°37'12" W for a distance of 479.73 feet to a calculated point, for the beginning of a curve to the right; 7) Along said curve to the right, having a radius of 5,080.00 feet, a central angle of 11°35'26", a chord which bears, S 7002455" W, a distance of 1025.91 feet, with an arc length of 1027.66 feet, to a calculated point; 8) S 76012'38" W for a distance of 203.01 feet to a calculated point, for the beginning of a curve to the left; 9) Along said curve to the left, having a radius of 4,920.00 feet, a central angle of 02011'13", a chord which bears, S 75°07'01" W, a distance of 187.78 feet, with an arc length of 187.79 feet, to a calculated point, being in the common boundary line of said remainder tract, and said 83.25 acre tract, for the most southwesterly corner of the herein described tract, and from which a 60d nail found on said common boundary line bears, S 27046'00" E at a distance of 72.05 feet; 10) THENCE, with said common boundary line N 27046100" W for a distance of 30.64 feet to the POINT OF BEGINNING, containing 1.308 acres (56,975 square feet) of land, more or less. NOTE: There is also a variable width Temporary Construction Easement northerly of Calls 1 through 4 of the above description, as depicted on the accompanying Parcel Plat. All bearings recited herein are based on the Texas State Plane Coordinate System, Central Zone No. 4203, NAD 83. This property description is accompanied by a separate plat. That I, Lawrence M. Russo, a Registered Professional Land Surveyor, do hereby certify that the above description is true and correct to the best of my knowledge and belief and that the property described herein was determined by a survey made on the ground under my direction and supervision. WITNESS MY HAND AND SEAL at Round Rock, Williamson County, Texas. Mt- --- - Lawrence M. Russo Registered Professional Land S veyor No. 5050 Inland Geodetics, L.P. Firm Reg. 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