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Sand Point-CS 920717July 17, 1992 CITY MANAGER TO: Alan D. Ratliff, City Manager ~~_ FROM: Frank Trando, Deputy City Manager/Finance Director <~ SUBJECT: Frank Bamburg Escrow Agreement On July 16, 1992, Ken Griffin, City Engineer, Alan Johnson, Assistant Finance Director, Frank Bamburg, and I met to determine Mr. Bamburg's suggestions concerning an escrow agreement. During our conversation, it became very evident that the road escrow agreement is only the tip of the iceberg regarding Mr. Bamburg's objection to the road pro rata fee. He believes that we shouldn't assess him the $64,801.42 fee for road pro rata. During the meeting, he furnished us with an unsigned draft letter, which I have attached for your review. He indicated that he would like to approach the Council with an agreement whereby the road pro rata would either be eliminated completely or drastically reduced. He will be forwarding a letter requesting this proposal be placed on the City Council agenda. I informed him that the letter and the agreement had to be received by Monday, July 20th. He responded by asking if there was any way that he could go ahead and be placed on the agenda and then allow additional time for transmittal of the proposal. I told him that we could possibly wait until the 22nd, but, we would have to receive it by 5:00 p.m. on that day to allow for staff review. Mr. Bamburg then decided that he would prefer to wait until the next Council meeting, which would be August 11, 1992. I told him that he would have to provide us with the letter and the proposal no later than August 3rd in order to be placed on the August 1 lth agenda. Frank Bamburg - Escrow Agreement PAGE 2 We also discussed escrowing the money or putting up a Certificate of Deposit. He agreed that the Certificate of Deposit be purchased, making it payable to the City of Coppell and Frank Bamburg, and both parties would have to sign it before it could be cashed. It was also agreed that any accrued interest would roll into the Certificate until the issue regarding the amount of road pro rata has been settled. Additionally, he understood that he or the City would not use the Certificate of Deposit for security on any further indebtedness. Staff will create a preliminary agreement and ask the legal department to review it to insure that its legality. In reference to the August 1 lth agenda, it is my intention that the Council consider two items; "A" allowing Mr. Bamburg to make a presentation concerning road pro rata; and "B" of the same item, would request Council approval of the agreement concerning the Certificate of Deposit. Certainly, if the Council approved Mr. Bamburg's proposal to waive the road pro rata, there would be no need for the agreement concerning the Certificate of Deposit. If the Council denied Mr. Bamburg's proposal, they would need to authorize execution of the agreement with him to insure that we have funds available as required by the subdivision. It is absolutely imperative that we place the agreement for the Certificate of Deposit on the August 1 lth agenda, even if Mr. Bamburg doesn't have his proposal completed. I welcome any suggestions that you may have concerning this matter. FT/Ir Bamburg. O01 July 17, 1992 MEMORANDUM TO: Larry Jackson, City Attorney FROM: Frank Trando, Deputy City Manager/Finance Director~ SUBJECT: Preparation of an Agreement for Road Escrow The purpose of this memo is to give you the background and some key points that need to be included in the above mentioned agreement. As you may be aware, Frank Bamburg, Bamburg Building Co., is building S. haflo~ Point Estates. Consequently, we need an escrow for road pro rata, in the amount of $64,801.42. Mr. Bamburg doesn't want to pay the road pro rate amount, and is proposing that he purchase a Certificate of Deposit in lieu of placing the money in the City's bank account. Mr. Bamburg and staff have agreed to the following key points: 1. The Certificate of Deposit would be made payable to both the City and Frank Bamburg or his designee. 2. The interest on the Certificate of Deposit would be rolled into the principal for the new Certificate of Deposit in the event that it is decided that the road pro rata is appropriate. 3. The Certificate of Deposit could in no way be utilized as collateral by either the City or Mr. Bamburg for any other debt. Frank Bamburg - Escrow Agreement PAGE 2 Naturally, you should incorporate any other provisions that you feel necessary to protect the City in this particular issue, and I would be more than happy to discuss this with you at your earliest convenience. Thank you for your assistance in this matter, and please note that I need the agreement back by July 23rd so that I can forward it to Mr. Bamburg for his review and further discussion. FT/Ir attachment Bamburg.002 July 10, 1992 City of Coppell Kenneth M. Griffin, P.E. City Engineer Alan D. Ratliff, City Manager P.O. Box 478 Coppell, Texas 75019 Re: Sand Point Estates/Road Escrow Gentlemen: In connection with your request for me to deposit the sum of $64,801.42 into a "road escrow" account with the City of Coppell for Sandy Lake Road, I hereby submit to you the following proposal. I first protest the assessment for the reason that no actual work has been performed to improve Sandy Lake Road. It is my position that any assessment by the City cannot be made until such time as the actual improvements are made, and the actual amount of the assessment is determined. Additionally, the amount of $64,801.42 is to me an arbitrary figure, which may or may not be accurate. I further contend that any assessment on Sand Point Estates can only be for an amount not to exceed any enhanced value to the property as improved. Without waiving any rights of protest I may have, I am willing and able to immediately assign to the City of Coppell my interest in a certificate of deposit in the amount of $ , with the following conditions. The certificate of deposit shall remain my property and all interest accrued thereunder shall also be mine. Upon the letting of a contract for the im- provements to Sandy Lake Road, and upon a final determination of the pro- rata assessment due against Sand Point Estates, the funds necessary to pay such assessment by Sand Point Estates shall be immediately paid from this certificate of deposit. Such release of funds shall not require my approval, and shall be automatic upon the occurrence of these conditions. Sincerely, Frank Bambur$ Building Company Frank Bamburg, President PLEASE RETURN THIS l~)ltlt,~lI~ RESPONSE! !