HomeMy WebLinkAboutContract 54791-A1CSC N o. 54791-A1
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 54791,
A MANAGEMENT AND IMPROVEMENT SERVICES AGREEMENT
Fort Worth Public Improvement District No. 7(Heritage)
This FIRST AMENDMENT TO CITY SECRETARY CONTRACT NUMBER 54791 ("First
Amendment") is made and entered into by and between the CITY OF FORT WORTH ("City"), a home-
rule municipal corporation organized under the laws of the State of Texas, acting by and through its duly
authorized Assistant City Manager, and FIRSTSERVICE RESIDENTIAL TEXAS PID, LLC, a Texas
limited liability company ("Contractor") acting by and through its duly authorized representative.
WHEREAS, the City and Contractor are parties to a Management and Improvement Services
Agreement for Fort Worth Public Improvement District No. 7, the same being City Secretary Contract
Number 54791 ("Agreement");
WHEREAS, Contractor identified a mid-year adjustment to reflect changes to the current budget
and 5-year service plan, including an increase to the management fee;
WHEREAS, on April 6, 2021, the City Council adopted a resolution approving a revised Fiscal
Year 2020-2021 budget and iive-year service plan, taking into account an increase of $26,675.00 to the
management fee far the Contractor;
WHEREAS, the parties wish to amend the Agreement to incorporate the revised budget and five-
year service plan; and
NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and agreements
contained herein, the City and Contractor do hereby covenant and agree to amend the Agreement as follows:
1. Exhibit A to the Agreement concerning the Budget and Service Plan for the District is
replaced with, and superseded by, a new Exhibit A that is attached to this First Amendment, which is
incorporated into the Agreement for all purposes.
2. Section 6.1, Management Fee, is amended to increase the management fee by $26,675.00,
for total amount not to exceed $154,603.00 and reads as follows:
"6.1. Mana�ement Fee. As full compensation for the provision of all
Improvements and Services during the term of this Agreement, City will pay the
Contractor a management fee of One Hundred Fiftv-Four Thousand, Six
Hundred Three Dollars and Zero Cents ($154,603.00) in equal monthly
installments ("Management Fee"), which is reflected in the Budget and Service
Plan as the "Management Fee". The term Management Fee includes any and all
administrative costs incurred by the Contractor to perform its duties and
responsibilities under this Agreement, including, but not limited to, the insurance
requirements set forth in Section 13, rent, office space, telephone charges (wired
and wireless), office and general supplies, clerical costs, project management fees
and costs, staff expenses, professional development, training, education, and the
like. Exhibit A also contain a separate line item for "Insurance", which includes
the costs for insurance for any policies not required under Section 13.
3. All funds previously paid to the Contractor prior to this First Amendment apply toward the
total compensation paid to the Contractor. Furthermore, the parties acknowledge and understand that the
OFFICIAL RECORD
First Amenament to csc s4�9� C ITY S EC RETARY
FT. WORTH, TX
additional $26,675.00 of the Management Fee will be calculated in the monthly payments on a go-forward
basis and that the City does not owe any of that portion in arrears.
4. All terms of this First Amendment that are capitalized but not defined have the meanings
assigned to them in the Agreement.
5. All terms and conditions of the Agreement that are not expressly amended pursuant to this
First Amendment will remain in full force and effect.
IN WITNESS WHEREOF, the undersigned have caused this First Amendment to be executed in
Fort Worth, Tarrant County, Texas.
CITY OF FORT WORTH:
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Jay Chapa
Deputy City Manager
Date: M ay 2�� 2021
ATTEST:
By: ��/�Z��e��
Mary J. Kayser
City Secretary
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APPROVED AS TO FORM AND LEGALITY:
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By; O
Tyler F. Wallach
Senior Assistant City Attorney
Contract Compliant Manager:
By signing, I acknowledg that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
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Crystal Hinojosa
Sr. Contract Compliance Specialist
FIRSTSERVICE RESIDENTIAL
TEXAS PID, LLC
a Texas limited liability company
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By.Kathleen Ward (May28,202112:13 CDT)
Kathleen Ward
President
Date:
May 28, 2021
M s: 20-0572 (August 25, 2020); 21-0225 (Apri16, 2021)
Form 1295: 2020-652848
OFFICIAL RECORD
CITY SECRETARY
FT. W�RTH, TX
First Amendment to CSC 54791 2 of 3
Exhibit "A"
city of Fort wortn
Five Year Service Plan (Mid-Year)
Public Improvement Dis[rict No. 7- Heritage
REVENl1ES
PID Assessments
COFW Payment in lieu of Services
PID Generated Revenue
Total Budgeted Revenues
Use of Fund Balance
Total Funds Available for Use
EXPENSES
Management Fee
Utilities
LandscapinglTree Maintenance
Common Area Maintenance
Holiday Lighting
Security Enhancements
Advertising
Public Events
Capital Improvements
Annual Review
City Administrative Fee
Total Budgeted Expenses
FY20/21 FY27/22 FY22123
$ 1,802,016 $ 1,838,056 $ 1,874,817
191,096 191,096 191,096
35
$ 1,993,147 $ 2,029,752 $ 2,065,973
73Q218 402,624 -
$ 2,723,365 $ 2,431,776 $ 2,065,973
$ 154,603 $ 143,416 $ 146,283
230,500 235,110 239,812
1,208,000 1,075,213 857,500
387,000 392,805 300,000
32,500 33,150 33,813
78,500 80,070 81,671
2,400 2,448 2,497
16Q000 162, 400 164,836
427,500 184,000 195,683
2,500 2,500 2,500
39,862 40,583 41,318
$ 2,723,365 $ 2,351,695 $ 2,065,973
Net Change in Fund Balance
Fund Balance, Beginning of Year (Estimated Yrs 2-5)
Estimated Fund Balance, End ofYear
Reserve Requirement
Over (Under) Reserve
$ (730,218j $ (322,543) $ -
1,409,775 679,557 357,014
679,557 357,014 357,014
338,164 344,385 350,638
$ 347,393 $ 72,626 $ 6,376
*FY2021 Assessment Rate = $.170 Residential/ $.110 Commercial
FY23/24 FY24l25
$ 1,912,313 $ 1,95Q559
191,096 191,096
$ 2,703,409 $ 2,147,655
$ 2,703,409 $ 2,147,655
$ 149,209 $ 152,193
244,608 249,501
907,500 1,007,500
275,000 250,000
34,103 35,178
83,305 84,971
2,547 2,598
15Q329 152,584
212,240 161,797
2,500 2,500
42,068 42,833
$ 2,703,409 $ 2,147,655
$ - $ -
357,014 357,014
357,014 357,014
357,014 357,014
$ - $ -
First Amendment to CSC 54791 3 of 3
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/06/21
M&C FILE NUMBER:
LOG NAME: 17PID7 MIDYEARFY21
SUBJECT
(CD 4, and CD 7) Adopt Attached Resolution Amending the Fiscal Year 2020-2021 Budget and
Five-Year Service Plan for Public Improvement District 7— Heritage, Authorize an Amendment to
City Secretary Contract No. 54791, a Management and Improvement Services Agreement with
FirstService Residential Texas PID, LLC, to Increase the Management Fee by $26,675.00 for a
Total Amount Not to Exceed $154,603.00, and Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution approving the revised Fiscal Year 2020-2021 Budget and Five-
Year Service Plan for Public Improvement District 7— Heritage to reflect amendments
associated with a mid-year review;
2. Authorize an amendment to City Secretary Contract No. 54791, a Management and
Improvement Services Agreement with FirstService Residential Texas PID, LLC, to increase
the management fee by $26,675.00 for a total fee amount not to exceed $154,603.00; and
3. Adopt the attached appropriation ordinance increasing receipts and appropriations in the
Fort Worth Public Improvement District 7- Heritage Fund in the amount of $252,000.00 in
Fiscal Year 2020-2021, from available, unreserved fund balance.
DISCUSSION:
The City of Fort Worth Department of Economic Development administers the City's Public
Improvement Districts (PIDs), in accordance with Chapter 372 of the Texas Local Government
Code. The City's PID Policy outlines the need to proactively work with the PID managers to
oversee the services being provided by the PIDs and their associated financial positions. Staff,
along with the contracted PID management companies, have conducted mid-year reviews of the
Public Improvement District 7- Heritage (Heritage PID) Annual Budget (Budget) and recommend
the following adjustments.
The City contracts with FirstService Residential Texas PID, LLC (FirstService) to manage the
Heritage PID. FirstService has identified the need to increase the Heritage PID Budget by the use
of fund balance in the amount of $252,000.00, in order to align expenses with actual activities in the
Budget and Five-Year Service Plan. The expense increase can be attributed primarily to increases
in insurance, additional water irrigation meters, and contract adjustments to landscaping and
maintenance. The proposed increase in the use of fund balance for Heritage PID will decrease
reserves in the fund balance. Removal of the insurance line item does not relieve FirstService from
acquiring insurance in the types and amounts required under the contract. All such insurance costs
are built into the current management fee.
Revenue adjustments:
Line Items to Previously Recommended Amended
be Adjusted Approved FY21 Mid-Year FY21 Budg�
Budget Item Adjustment Item
PID $1,802.016.00 $0.00 $1,802,016.00
Assessments
COFW
Payment in lieu $191,096.00 $0.00 $191,096.00
of Services
PID Generated $35.00 $0.00 $35.00
Revenue
Use of Fund $478,218.00 $252,000.00 $730,
Balance 218.00
Totals $2,471,365.00 $252,000.00 $2,723,365.00
Expenditure adjustments:
Line Items to be Previously Recommended Amended
Adjusted Approved FY21 Mid-Year FY21 Budget
Budget Item Adjustment ' Item
Management Fee $127,928.00 $26,675.00 $154,603.00
Utilities $300,500.00 ($70,000.00) $230,500.00
Landscaping/Tree �1,120,000.00 $88,000.00 $1,208,000.00
Maintenance
Capital 500.00
Improvements �200,000.00 $227,500.00 $427,
Insurance $12,675.00 ($12,675.00) $0.00
Annual Review $10,000.00 ($7,500.00) $2,500.00
Totals $1,771,103.00 $252,000.00 $2,023,103.00
Staff recommends an increase of $26,675.00 in the management fee line item of the current
Budget and Five-Year Service Plan. The insurance costs are considered administrative costs and,
therefore, are being rolled into the Management Fee line item. The increase will also cover costs
associated with the purchase of an all terrain vehicle, which will be used for the benefit of the
Heritage PID. Staff supports FirstService's recommended mid-year budget adjustments. All other
previously approved line items not mentioned above remain the same.
Upon approval of the above recommendations, the total budgeted expenses for the Fiscal Year
2020-2021 will be $2,723,365.00. This mid-year budget adjustment will decrease the unaudited,
unassigned fund balance by a total of $252,000.00. The revised Budget and Five-Year Service
Plan will take effect upon approval by City Council. The City and FirstService will amend the
existing management contract to reflect the mid-year adjustments (City Secretary Contract No.
54791). The proposed changes to the Heritage PID Budget maintain compliance with reserve
requirements.
The Heritage PID is located in COUNCIL DISTRICTS 4& 7.
A Form 1295 is not required because: This M&C does not request approval of a contract with a
business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption
of the attached appropriation ordinance, funds will be available in the current operating budget, as
appropriated, in the FWPID #7 - Heritage Fund. Prior to any expenditure being incurred,
the Economic Development Department has the responsibility to validate the availability of funds.
Submitted for City Manaaer's Office b� Jay Chapa 5804
Originating Business Unit Head:
Additional Information Contact:
Robert Sturns 2663
Crystal Hinojosa 7808