HomeMy WebLinkAboutResolution 3568-12-2007A RESOLUTION
NO 3568-12 2007
CONSENTING TO THE CREATION OF TRADITION MUNICIPAL
UTILITY DISTRICT NO 2 OF DENTON COUNTY AND TO
CERTAIN ROAD PROJECTS WITHIN THE DISTRICT AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
AGREEMENT CONCERNING CREATION AND OPERATION OF
TRADITION MUNICIPAL UTILITY DISTRICT NO 2 OF DENTON
COUNTY" FOR THE TRADITION DEVELOPMENT
WHEREAS effective May 3 2005 the City of Fort Worth (the `C~") adopted a
Policy Concerning Creation of Conservation and Reclamation Distracts (the `Creation
Policy")
WHEREAS by House Bi113182, 80th Texas Legislature, Regular Session, Special
Distract Local Laws Code, Chapter 8189 effective September 1 2007 (the `District
Legislation'), the Texas Legislature approved the creation of Tradition Mumcipal Utility
Distract No 2 of Denton County encompassing that certain 1,920-acre tract situated in the
City's extraterritorial ~urisdichon m Denton County Texas, described m Section 2 of the
Distract Legislation (the `District"), which Distract lies m the extraterntoraal jurisdiction of
the City•
WHEREAS, Section 8189 023 of the Distract Legislation provides that the election
to confirm the creation of the Distract may not be held unless the City adopts a resolution
after September 1 2007 reconfirming its consent to the creation of the Distract;
WHEREAS, Section 8189 102(c) of the District Legislation provides that the
District may not undertake a road project unless the City consents by ordinance or
resolution,
WHEREAS, Aperaon Communities, LLLP Eladio Properties, LLLP Drooy
Properties, LLLP and Rocksand Investments, LLLP all Arizona limited liability limited
partnerships (collectively `Owner"), have petitioned the City to obtain the City's consent to
the creation of the District and to the undertaking of a road project by the Distract, as
defined m the petition,
WHEREAS, the Crty and Owner have negotiated the terms of the Agreement
Concerning Creation and Operation of Tradition Municipal Utility District No 2 of Denton
County" between the City the Distract and Owner (the `Consent Agreement") attached
hereto as Exhibit A, and
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RESOLUTION NO 3568-12-2007
WHEREAS, following rts review of the Creation Policy and the Consent
Agreement, the City Council desires to adopt this Resolution, which consents to creation of
the Distract subject to the terms of the Consent Agreement, complies with the consent
process set forth in Section 8189 023 of the District Legislation, and consents to the Road
Project as defined in and subject to the Consent Agreement, pursuant to Section
8189 102(c) of the District Legislation,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS
1
That the City Council of the City of Fort Worth hereby grants rts consent to the
creation of Tradition Mumcipal Utility District No 2 of Denton County pursuant to the
District Legislation and subject to the terms and conditions set forth m the Consent
Agreement.
2.
That the City Council of the Crty of Fort Worth hereby grants rts consent to the
Road Project as defined in the Consent Agreement, subject to the terms and conditions set
forth in the Consent Agreement.
3
That the City Manager or a designee is hereby authorized to execute the
Agreement Concerning Creation and Operation of Tradition Mumcipal Utility District No
2 of Denton County attached hereto as Exhibit A, and that the City Secretary is hereby
authorized to attest such execution for and on behalf of the City in multiple counterparts.
4
That this Resolution shall constitute consent to the creation of the District pursuant
to Section 8189 023 of the Distract Legislation and consent to the Road Project, as defined
m the Consent Agreement, pursuant to Section 8189 102(c) of the Distract Legislation.
That it is officially found and determined that this meeting of the Crty Council of
the Crty of Fort Worth is open to the public as required by law and that written notice of
the date, hour place and subject of the meeting was posted for at least seventy two hours
before the meeting as required by law
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RESOLUTION NO 3568-12-2007
6
That this Resolution and the Consent Agreement shall supersede any prior
resolutions or agreements regarding the City's con sent to creation of the District.
Adopted the 18th day of December, 2007
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DEC 1 8 2007
City Se"cretary j !` ~ =~
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014940.00010:998807 03
RESOLUTION NO 3568-12-2007
Exhibit A
The Agreement Concerning Creation and Operation of Tradltlon Mumclpal Utility District No 2 of Denton
County is available for mspechon and copying m the City Secretary's Office, Third Floor of Crty Hall, 1000
Throckmorton.
014940 00010:998807.03
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 12/18/2007 Res No 3568-12 2007
DATE Tuesday December 18 2007
LOG NAME 06TRADITION2 REFERENCE NO C 22589
SUBJECT
Authorize Execution of the Consent Resolution Development Agreement, Buy-Out Option
Agreement, Impact Fee Agreement, Utility Agreement, Wholesale Wastewater Service Agreement,
and the Agreement for the Sale of Treated Water and Approve the Form of the Strategic Partnership
Agreement for Tradition Municipal Utility District No 2 of Denton County
RECOMMENDATION
It is recommended that the City Council
1 Adopt a resolution consenting to the creation of Tradition Municipal Utility District No 2 of Denton County
("District")
2 Authorize the City Manager or a designee to execute the following contingent upon receipt of necessary
executed documents from Aqua Utilities
a A Development Agreement between the City and Aperion Communities LLLP Eladio Properties,
LLLP and Drooy Properties, LLLP and Rocksand Investments LLLP
b A Buy-Out Option Agreement between the City Aqua Utilities Aperion Communities, LLLP Eladio
Properties, LLLP and Drooy Properties LLLP and Rocksand Investments, LLLP and the District;
c An Impact Fee Agreement between the City Aqua Utilities Aperion Communities LLLP Eladio
Properties, LLLP and Drooy Properties, LLLP and Rocksand Investments, LLLP and the District;
d A Utility Agreement between the City and Aqua Utilities, Aperion Communities LLLP Eladio
Properties LLLP and Drooy Properties LLLP and Rocksand Investments LLLP and the District;
e A Wholesale Wastewater Service Agreement between the City and Aqua Utilities,
f An Agreement for the Sale of Treated Water between the City and Aqua Utilities, and
3 Authorize the City Manager or a designee to bring forth the Strategic Partnership Agreement for approval
after the formation of the Municipal Utility District.
DISCUSSION
Aperion Communities LLLP Eladio Properties, LLLP and Drooy Properties LLLP and Rocksand
Investments LLLP (AEDR) are Arizona limited liability partnerships that own and are developing
approximately 2 663 acres in Fort Worths and Northlake s extraterritorial jurisdiction as a mixed-use
development to be known as `Tradition The property is in Denton County and is located north of Highway
114 and west of Highway 156 On December 13 2005 (M&C C-21198) the City Council authorized the City
Logname 06TRADITION2 Page 1 of 3
Manager to enter into contracts for the first 431 acres of this development known as Tradition Municipal
Utility District No 1 of Denton County The district was confirmed by the voters on May 12, 2007
On September 12 2006 (M&C G-15392) the City Council granted conditional consent to Tradition
Municipal Utility District No 2 of Denton County in response to a petition submitted by AEDR. The intent
was to allow the creation of a 'master MUD" that would subsequently be subdivided into smaller tracts
consistent with their development phases. During the 2007 legislative session H B 3182 was approved
and authorized the creation of this district consisting of 1 922.737 acres subject to adoption of a consent
resolution by the Fort Worth City Council
The attached resolution grants formal consent to the formation of the District and specifically grants to the
District the authority to finance road projects In addition it grants the City Manager the authority to execute
the Agreement Concerning Creation and Operation of Tradition Municipal Utility District No 2 of Denton
County" (the Consent Agreement) This is the contract between the developer the District, and the City
governing .the issuance of bonds the construction standards for infrastructure and the terms of future
annexation
The other documents listed above which are available for public inspection and copying in the City
Secretary's Office can be summarized as follows
The Development Agreement provides for the enforcement of municipal building codes and establishes
land use and development regulations for the Development. In addition it imposes Special Regulations to
govern design issues such as block lengths and street right-of-way and sidewalk widths. The Development
will generally be in compliance with development standards within the City limits The Agreement also
identifies enhancements beyond the City's regulations in terms of amenities, entry features and
landscaping
The remaining five agreements identified as items b through f above relate to the provision of water and
wastewater facilities and service to the Development. Aqua Utilities is the holder of the Water Certificate of
Convenience and Necessity (CCN) in the Development and are therefore party to several of the
agreements
Aqua Utilities will provide retail water and wastewater service to the Development. The City will provide
wholesale water service through a wholesale contract similar to those with our customer cities The provider
for wholesale wastewater service is still under negotiation The goal of the City and the Developer is to
partner with Trinity River Authority (TRA) and install a new interceptor line from the existing TRA
wastewater treatment facility at Denton Creek. If this occurs, the City will provide wholesale wastewater
service to Aqua Utilities through a wholesale contract and a TRA interceptor line agreement will be brought
to City Council for consideration If the negotiation of TRA interceptor option is unsuccessful the Developer
intends to build a package treatment plant to be operated by Aqua Utilities
The Impact Fee Agreement will allow the City to recover the treatment, pumping and other infrastructure
costs associated with providing water and wastewater service to the Development. Under the Buy-Out
Option Agreement the City has the option to purchase the water and wastewater facilities in the
Development from the District for $10 and become the retail water and wastewater service provider This
can occur at anytime after 17 years of the first connection to retail water or wastewater utility service within
a District, or within 90 days before the date of annexation of a District by the City Aqua Utilities will agree
not to contest the application of the City for the CCN for the area within that District.
The Strategic Partnership Agreement will authorize the City to annex acreage within the Development
designated for commercial development for the limited purpose of imposing sales and use tax. This
agreement will be presented to the City Council with the appropriate public hearings after the district is
formally established by election
Logname 06TRADITION2 Page 2 of 3
This Development will not require the expenditure of City funds or the collection of offsetting revenue for
wholesale services for several years.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that approval of these Agreements will have no immediate material effect on
City funds. Any effect on expenditures and revenues will be budgeted in future fiscal years
TO Fund/AccountlCenters
Submitted for City Manager's Office b~
Originating Department Head.
Additional Information Contact:
FROM Fund/AccountlCenters
Dale Fisseler (6140)
Fernando Costa (8042)
Susan Alanis (8180)
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