Leon Valley
TX

Ordinance

Discuss and consider possible action on an ordinance authorizing a Settlement Agreement in a state lawsuit styled WM. Rancher Estates Joint Venture, et al. vs. City of Leon Valley, Texas, et al. in the 225th Judicial District Court, Bexar County, Texas, Cause No. 2013-CI-03399 to purchase privately owned real property in the amount of $500,000; authorizing the acquisition of privately owned real property containing approximately 23.071 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, in connection with the Settlement Agreement; and authorizing a budget adjustment in the amount of $500,000 in the General Fund for the acquistion of said property.

Information

Department:FinanceSponsors:City Manager Kelly Kuenstler
Category:Budget

Attachments

  1. Printout
  2. Exhibit "A"

Item Discussion

PURPOSE

 

On February 28, 2013, William Rancher Estates Joint Venture, et al. filed a lawsuit against the City of Leon Valley, Texas, et al., regarding privately owned real property containing approximately 23.017 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, alleging several causes of action against the City.

 

At mediation, the parties reached settlement agreement for the City to purchase 12 parcels of privately owned real property in the amount of $500,000, contingent upon City Council approval.  In order to finalize settlement of the case, and purchase said property, a budget adjustment of the General Fund in the amount of $500,000 is necessary.

 

SEE LEON VALLEY

 

Social - Prudent management of City funds to settle through mediation saves taxpayers’ dollars.

 

Economic Development - Depending on the decision of the citizens of Leon Valley and the City Council, the area could have an impact on economic development in that the area could be left as a natural area, could be turned into a park, could be developed or could be partially developed. 

 

Environmental Stewardship - The 12 lots that the City will purchase have an impact on existing flood plain areas and reducing development preserves the environment.
 

FISCAL IMPACT

 

Funding to purchase the 12 lots will come from the General Fund reserves. 

 

Document Comments

RECOMMENDATION

 

Staff recommends settlement of this case.  If this settlement agreement is not approved by the City Council, the case will proceed to trial.  It is in the best interest of the City to settle this matter to avoid the uncertainty and risks associated with litigation.

 

Body

AN ORDINANCE AUTHORIZING A SETTLEMENT AGREEMENT IN A STATE LAWSUIT STYLED WM. RANCHER ESTATES, JOINT VENTURE, ET AL. VS. CITY OF LEON VALLEY, TEXAS ET AL. IN THE 225TH JUDICIAL DISTRICT COURT, BEXAR COUNTY, TEXAS, CAUSE NO. 2013-CI-03399 TO PURCHASE PRIVATELY OWNED REAL PROPERTY IN THE AMOUNT OF $500,000; AUTHORIZING THE ACQUISITION OF PRIVATELY OWNED REAL PROPERTY CONTAINING APPROXIMATELY 23.071 ACRES LOCATED ALONG THE WEST SIDE OF WILLIAM RANCHER ROAD, INCLUDING TWO PARCELS ON THE SOUTH SIDE OF GRASSHILL DRIVE AND THREE CONTIGUOUS PARCELS AT THE CORNER OF AIDS AND SAMARITAN IN LEON VALLEY, BEXAR COUNTY, TEXAS, IN CONNECTION WITH THE SETTLEMENT AGREEMENT; AND AUTHORIZING A BUDGET ADJUSTMENT IN THE AMOUNT OF $500,000 IN THE GENERAL FUND FOR THE ACQUISITION OF SAID PROPERTY.

 

WHEREAS, on February 28, 2013, William Rancher Estates Joint Venture, et al. filed a lawsuit against the City of Leon Valley, Texas, et al., regarding privately owned real property containing approximately 23.017 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, alleging several causes of action against the City; and 

 

WHEREAS, the City of Leon Valley has vigorously contested its liability; however, it is in the best interest of the City to settle this matter to avoid the uncertainty and risks associated with further litigation; and

 

WHEREAS, the parties reached a settlement agreement to purchase approximately 23.071 acres of privately owned real property in the amount of $500,000, contingent upon City Council approval; and

 

WHEREAS, on September 20, 2016 the City Council of the City of Leon Valley adopted the 2016-2017 fiscal year budget; and

 

WHEREAS, Texas Local Government Code Section 102.010 provides that a municipality is not prohibited from making changes to a budget for municipal purposes; and

 

WHEREAS, in order to finalize the settlement and purchase said property, a budget adjustment of the General Fund in the amount of $500,000 is necessary; NOW THEREFORE,

 

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LEON VALLEY, TEXAS: 

 

SECTION 1:              The settlement agreement in a state lawsuit styled WM. Rancher Estates Joint Venture, et al. vs. City of Leon Valley, Texas, et al. in the 225th Judicial District Court, Bexar County, Texas, Cause No. 2013-CI-03399 to purchase privately owned real property in the amount of $500,000 is hereby authorized.

 

SECTION 2:              The acquisition of privately owned real property containing approximately 23.071 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, more particularly described in metes and bounds, attached hereto and incorporated herein as Exhibit "A", in connection with the settlement agreement is hereby authorized.

 

SECTION 3.              The budget adjustment in the amount of $500,000 in the General Fund as set out in Exhibit “B”, attached hereto and incorporated herein for all purposes for the acquisition of said property, is hereby authorized.

 

SECTION 4.              The financial allocations in this Ordinance are subject to approval by the Director of Finance.  The Director of Finance may, subject to concurrence by the City Manager, or the City Manager’s designee, correct allocations as necessary to carry out the purpose of this Ordinance.

 

SECTION 5.              This Ordinance shall become effective immediately upon passage by four affirmative votes; otherwise it shall be effective on the tenth day after passage hereof.

 

PASSED, ADOPTED AND APPROVED by the City Council of the City of Leon Valley this the 21st day of February 2017.                                                                                   

                                                                                                                APPROVED

                                                                                                 

                                                                                                  ________________________

                                                                                                      CHRIS RILEY

                                                                                                                  MAYOR

Attest:             

_____________________________                           

SAUNDRA PASSAILAIGUE, TRMC

        City Secretary

 

 

Approved as to Form:

                                          ______________________________             

                                                        DENISE FREDERICK

                                                             City Attorney


Exhibit “B”

Ordinance No. _________

 

CITY OF LEON VALLEY, TEXAS

BUDGET ADJUSTMENT

FISCAL YEAR 2016-2017

Request Submitted By:                                                        Date: _2/13/2017_______

                                   Department Head

Approved By:                                                                      Date: 2/13/2017_______

                                            Finance Director

Approved By:                            Date: _2/14/17_________

                                   City Manager

 

TYPE OF TRANSFER:                                                                                                  DEPARTMENT:

 

______ Inter-Departmental Transfer                                                                     

______ Intra-Departmental Transfer                                                       

__X __ Supplemental Appropriation                                                                      General Fund

FROM:

FUND

ACCOUNT NO.

DESCRIPTION

AMOUNT

General Fund 100

General Fund Reserves

$500,000

 

 

 

 

 

 

TO:

FUND

ACCOUNT NO.

DESCRIPTION

AMOUNT

General Fund 100

Land

$500,000

 

 

 

 

 

 

Meeting History

Feb 21, 2017 7:00 PM  City Council Regular Meeting

City Manager Kelly Kuenstler presented this item first by giving a brief background saying that on February 28, 2013, William Rancher Estates Joint Venture, et al. filed a lawsuit against the City of Leon Valley, Texas, et al., regarding privately owned real property containing approximately 23.017 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, alleging several causes of action against the City. At mediation, the parties reached settlement agreement for the City to purchase 12 parcels of privately owned real property in the amount of $500,000, contingent upon City Council approval. In order to finalize settlement of the case, and purchase said property, a budget adjustment of the General Fund in the amount of $500,000 is necessary.

City Manager Kelly Kuenstler concluded saying staff recommends settlement of this case. If this settlement agreement is not approved by the City Council, the case will proceed to trial. It is in the best interest of the City to settle this matter to avoid the uncertainty and risks associated with litigation.

Council Member Monica Alcocer announced that she would recuse herself from any discussion or vote due to a possible conflict of interest.

A motion was made by Council Member Benny Martinez and seconded by Council Member David Edwards, to approve an ordinance authorizing a Settlement Agreement in a state lawsuit styled WM. Rancher Estates Joint Venture, et al. vs. City of Leon Valley, Texas, et al. in the 225th Judicial District Court, Bexar County, Texas, Cause No. 2013-CI-03399 to purchase privately owned real property in the amount of $500,000; authorizing the acquisition of privately owned real property containing approximately 23.071 acres located along the west side of William Rancher Road, including two parcels on the south side of Grasshill Drive and three contiguous parcels at the corner of Aids and Samaritan in Leon Valley, Bexar County, Texas, in connection with the Settlement Agreement; and authorizing a budget adjustment in the amount of $500,000 in the General Fund for the acquisition of said property as presented.

RESULT:ADOPTED [3 TO 0]
MOVER:Benny Martinez, Council Place 4
SECONDER:David Edwards, Council Place 1
AYES:David Edwards, Belinda Ealy, Benny Martinez

Discussion