HomeMy WebLinkAboutResolution 3198-05-2005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS ADOPTING A POLICY CONCERNING
CREATION OF CONSERVATION AND RECLAMATION DISTRICTS
No ~ ~ - b5 a~
WHEREAS, petitions have been submitted to the Crty of Fort Worth seeking the City Council s
consent to creation of two municipal utility districts and two water control and improvement districts m
the City's extraterritorial jurisdiction,
WHEREAS, rt is anticipated that the Crty will receive additional petitions seeking the City
Council s consent to creation of municipal utility districts, water control and improvement distracts or
other types of conservation and reclamation districts,
WHEREAS, rt is advisable to adopt a policy concerning creation of conservation and reclamation
distracts to provide guidelines for the Crty Council to consider requests for consent to creation of such
districts,
WHEREAS, the policy is not intended to hmrt the issues that can be considered by the Crty Council
with regard to specific consent petitions, but to provide a framework for analysis of each proposed
district and issues unique to the district;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS, TO•
Adopt the Policy Concerning Creation of Conservation and Reclamation Districts, attached
hereto as Exhibit A
ADOPTED this ~~ day of May 2005
h~
ATTEST. ~ -~,~
~~
JVED ~:5~'
Assistant Crty Attorney
Mike Moncrief, Mayor
---~-,~
~-_
~__._ .__.. ~~ APPROVED
CITY COUNCIL
MAY ~1;~3 2005
~~~~
City Secretary of the
Exhibit "A"
POLICY CONCERNING CREATION OF CONSERVATION AND
RECLAMATION DISTRICTS
I. PURPOSE AND INTENT
The City of Fort Worth (the `City") wishes to allow the prudent use of political
subdivisions that are created pursuant to Article III, Section 52, and/or Article XVI, Section 59
of the Texas Conshtuhon and that are authorized by law to provide water wastewater drainage
and other services ("distracts") m order to facilitate development within the City's corporate
boundaries and extratemtorial jurisdiction that is generally consistent with the City's
Comprehensive Plan.
This policy is intended to be equitably applied to the creation of, inclusion of land
within, and operation of all proposed districts, while allowing flexibility necessary to address
unique factors that may arise with respect to each proposed district.
Prior to considering whether to consent to or support the creation of a district, the City
will consider whether the City is able to provide water and wastewater service to the area
proposed to be included in the distract and whether the Crty wishes to annex such area m the
foreseeable future.
The purpose of this policy is to cant' out the following purposes to the extent allowed by
law•
• Encourage quality development,
• .Allow the City to enforce reasonable land use and development regulations,
• Provide for construction of infrastructure consistent with Crty standards and Crty
inspection of such infrastructure;
• Provide notice to residents of the district that the City may annex the distract at
some future lime;
• Facilitate cost-effective construction of infrastructure to serve the area within the
district, including police and fire stations, that is consistent with Crty standards
and plans, so that the potential financial burden on the citizens of Fort Worth
will be reduced, in the event of annexation of such land by the City
• Provide for extension of water and wastewater lines that will serve future growth
m the Crty and its extratemtorial ~unsdicrion consistent with the City's regional
utility planning;
• Establish guidelines for reasonable conditions to be placed on
Issuance of bonds by the district; and
The City's consent to creation of the district, mcludmg conditions
consistent with the City's water and sewer bond ordinances regarding
creation of distracts that might otherwise detramentaily compete with the
City's utility systems,
• Establish guidelines for other mutually beneficial agreements by the City and the
distract;
• Provide a procedural framework for responding to a petition seeking the City's
consent to the creation of the distract; and
• Encourage communication with county officials and staff members of the county
or counties m which a proposed district is to be located.
II. DEFINITIONS
Bond -Instrument, mcludmg a bond, note, certificate of participation or other instrument
evidencing a proportionate interest m payments due to be paid by an issuer or other type of
obligation that. (1) ~s issued or incurred by an issuer under the issuer's borrowing power
without regard to whether it is subject to annual appropriation, and (2) is represented by an
instrument issued m bearer or registered form or is not represented by an instrument but the
transfer of which is registered on books maintained for that purpose by or on behalf of the issuer
Certificate of convenience and necessity (CCN) - A permit issued by the Texas Commission
on Environmental Quality ("TCEQ") authorazmg a specified utility to be the retail water or sewer
service provider m a specified area.
City Council -City Council of the City of Fort Worth.
Consent agreement - An agreement between the City and owners and developers of land m a
proposed distract, which, if agreed to, shall be attached to the consent resolution adopted by the
City Council.
Consent resolution - A resolution approved by the City Council setting forth terms of its
consent to creation of a district.
Consent to creation of a district -Authorization for the owners of land in a proposed district to
initiate proceedings to create a district as provided by law
2
District A municipal utility district ("MUD"), water control and improvement district
("WCID"), fresh water supply district ("FWSD") or similar political subdivision created to
provide water sewer or drainage utility services, roads or other services allowed by law to a
specified area, pursuant to Article III, Section 52 and/or Article XVI, Section 59 of the Texas
Constitution.
Extraterritorial jurisdiction (ET.n -Unincorporated area generally extending five miles from
the Crty hmrt, excluding other incorporated mumcipahties and their ETJ m which the Crty has
the authority to annex property as determined m accordance with Chapter 42 of the Local
Government Code
Strategic partnership agreement - An agreement between the City and a district addressing the
relationship between the City and the district, including limited purpose annexation of
commercial areas and other matters pursuant to Section 43 0751 of the Local Government Code.
TCEQ -The Texas Commission on Environmental Quality or its successor
III. PREREQUISITES TO CONSENT TO CREATION OF A DISTRICT
Before the Crty Council consents to creation of a district, the following issues shall be
considered
1 If applicable, whether the area proposed for inclusion in the district meets criteria for
annexation set out m the City's annexation pohcy and is likely to be annexed by the City
within the foreseeable future and
2 Whether the City will provide water and wastewater services to the land within the
proposed district at a reasonable cost and will commence construction of facilities
necessary to serve the land within 2 years and substantially complete such construction
within 4'/2 years after submittal of the petition.
If the determination on both issues 1 and 2 above is negative, then before consenting to the
creation of a district, the City Council should consider further whether the creation of the district
is feasible, practicable, necessary for the provision of the proposed services and would be a
benefit to the land, and therefore warrants the City's consent, consistent with the other
considerations m this pohcy
If the determination on either of the two issues is affirmative, then the City Council should not
consent to creation of the district unless the petitioner demonstrates that unique factors justify its
creation. If appropriate under the circumstances, the City shall
• Commence negotiations with the owners of at least 50 percent of the land in the proposed
district and a ma~onty of the qualified voters concerning the City's provision of water and
wastewater services, upon receipt of a petition submitted by such persons m accordance
with Local Government Code, Section 42 042, or
• Commence proceedings to annex the land m the proposed district.
3
IV COMMUNICATION WITH COUNTY OFFICIALS
• The City will initiate communication with county officials for the county or counties m which a
district is proposed to be located in order to promote interlocal cooperation on shared local goals
and to support regional planning.
V STAFF ANALYSIS
Upon receipt of a petition seeking the City's consent to creation of a district and after a
prehmmary detennmahon of the Article III prerequisites, City staff shall analyze the proposed
development and its potential impact on facilities and services. The petitioner is encouraged to
provide the following preliminary information relative to the land proposed to be included m the
district, if available•
1 Engineering report showing.
a. Prehmmary water availability study including copies of any proposed
contracts,
b Prehmmary wastewater treatment availability including copies of any proposed
contracts,
c Preliminary drainage study and
d. Preliminary road study for any roads proposed to be reimbursed by bonds.
2. Preliminary cost estimates for water wastewater drainage or road facilities or projects,
and any other proposed district facilities to be reimbursed or paid for by the issuance of
district bonds,
3 Master development plan showing general layout of proposed land uses, mayor streets
and roads, water wastewater and drainage facilities, and any other district facilities,
4 Infonnat~on concerning provision of firefighting and law enforcement services,
5 Estimated buildout schedule by year with estimated assessed valuations m the district;
6 Estimated ultimate amount of bonds to be issued by the district, ultimate debt service
requirements and and projected district tax rate•
7 District boundary and vicinity map
8 Traffic study identifying potential impacts on.
a. The City's road system serving the land proposed to be included m the district,
if all or any portion of the land is located within the City or within 2 miles of the
City's boundaries, and
b The county's road system.
This traffic study is m addition to any traffic studies required by the City's subdivision
regulations m connection with submittal of subdivision plats;
4
9 If all or any portion of the proposed district is located outside the City's boundaries,
proof that the petitioner has provided the following information by certified mail to the
County Judge and each member of the Commissioners Court of the county or countigs
in which the land proposed to be included m the district is included. the name, acreage
and location of the proposed distract, buildout schedule, estimated population on total
buildout and map of the area,
10 Such other information as City staff may reasonably require to analyze the need for the
proposed facilities and the development's potential impact; and
11 Any proposed City consent agreements
VI. CONDITIONS TO CITY'S CONSENT TO CREATION OF DISTRICT
If the City Council elects to consent to the creation of, or inclusion of land within, a district, then
~t shall impose the following requirements as conditions of the City's consent, and such
requirements shall be stipulated in the consent resolution and/or other ancillary agreement,
unless the City Council determines that requirements are not appropriate with regard to a specific
district.
1 All water wastewater drainage and road infrastructure and facilities, as well as any
other infrastructure or faciht~es to be reimbursed or paid for by the issuance of district
bonds, shall be designed and constructed to City standards, mcludmg without limitation
fire flow standards and utility and road design, construction and installation standards,
m accordance with plans and specifications that have been approved by the City In
the event of a conflict between City water and wastewater standards and standards
imposed by the CCN holder for the proposed district, City standards will prevail, unless
otherwise agreed by the City
2 The City shall have the right to inspect all facilities being constructed by or on behalf of
the distract and to charge inspection fees consistent with the City's Policy for
Installation of Community Fac~lrties, as amended from time to time
3 Bonds, mcludmg refunding bonds issued by the district, shall, unless otherwise agreed
to by the City comply with the following requirements, provided such requirements do
not generally render the bonds unmarketable
a. Maximum maturity of 25 years for any one serves of bonds,
b Interest rate that does not exceed 2% above the highest average interest rate
reported by the Daily Bond Buyer m its weekly `20 Bond Index" during the one
month period next preceding the date notice of the sale of such bonds is given,
c The bonds shall expressly provide that the district shall reserve the right to
redeem bonds at any time subsequent to the tenth (10th) anniversary of the date of
issuance, without premium. No variable rate bonds shall be issued by a district
• without City Council approval and
5
d. Any refunding bonds of the distract must provide for a minimum of 3% present
value savings and that the latest matunty of the refunding bonds may not extend
beyond the latest matunty of the refunded bonds unless approved by the City
Council
4 The City shall require the following information with respect to bond issuance
a. At least 30 days before issuance of bonds, except refunding bonds, the distract s
financial advisor shall certify m wasting that the bonds are being issued within the
existing economic feasibility guidelines established by the TCEQ for distracts
~ssumg bonds for water sewer or drainage facilities in the county in which the
distract is located and shall deliver the certification to the City Secretary the City
Manager and the Director of the Development Department.
b At least 30 days before the issuance of bonds, the distract shall deliver to the City
Secretary the City Manager and the Director of the Development Department
notice as to
i. The amount of bonds being proposed for issuance
ii The projects to be funded by such bonds, and
~u The proposed debt service tax rate after issuance of the bonds.
If the district is not required to obtain TCEQ approval of the issuance of the bonds
(other than refunding bonds) the distract shall deliver such notice to the City
Secretary the City Manager and the Director of the Development Department at
least 60 days prior to issuing such bonds. Within 30 days after the distract closes
the sale of a serves of bonds, the distract shall deliver to the City Secretary the
City Manager and the Director of the Development Department a copy of the final
official statement for such serves of bonds. If the City requests additional
information regarding such issuance of bonds, the distract shall promptly provide
such information at no cost to Crty
5 The purposes for which a distract may issue bonds shall be restricted to the purchase,
construction, acquisition, repair extension and improvement of land, easements, works,
improvements, facilities, plants, equipment and appliances necessary to
a. Provide a water supply for the distract for municipal uses, domestic uses and
commercial purposes,
b Collect, transport, process, dispose of and control all domestic, industraal or
communal wastes from the distract whether m fluid, solid or composite state;
c Gather conduct, divert and control local storm water or other local harmful
excesses of water m the distract; and
d. Pay organization and admmistrat~ve expenses, operation expenses during
construction, cost of issuance, interest during construction and capitalized interest.
If appropraate m a particular distract, the Crty may consent to issuance of bonds for
purchase, construction, acquisition, repair extension or improvement of fire stations,
roads and/or other capital improvements that are mutually agreed upon by the City
Council and the petitioner
•
6
s
VII. ADDITIONAL REQUIREMENTS
The City may address issues relating to the distract m a consent agreement, strategic partnership
agreement, development agreement, community facilities agreement or other documents
acceptable to the parties The City shall consider proposing additional terms, subject to the
mutual agreement of the parties and as allowed by law mcludmg without limitation the
following:
1 The distract shall contain sufficient acreage to assure the economic viability of the distract
but no more acreage than can feasibly be annexed at one time In general, a distract is not
expected to include less than 200 acres or more than 500 acres.
2 Development within the distract shall be generally consistent with the City's
Comprehensive Plan.
3 No distract shall include land in more than one city s extraterritorial ~unsdiction.
4 The City and the owners of all land in the proposed distract may reach agreement on the
terms of a development agreement pursuant to Local Govenunent Code, Section 212 1'71
et se to extend the City's planning authority over land included m the distract by
providing for approval of a development plan, authorizing enforcement by the City of
land use and development regulations, and including other lawful terms and
considerations the parties consider appropriate The development agreement may include
provisions that are mutually acceptable to the parties relatmg to the following matters
a. Land use plan reflecting all approved land uses and residential densities
b Compliance with City construction codes, mcludmg permit requirements,
c Compliance with City and other applicable stormwater and water quality
regulations,
d. Development standards comparable to City zoning regulations, and
e. Dedication and development of park areas.
The above list is not intended to be exhaustive. It is expected that the parties will
cooperate to identify those matters unique to that distract that may be addressed in a
development agreement.
5 At least 34 days before issuance of bonds, the distract shall certify m writing that the
distract is in full compliance with the consent resolution approved by the City Council
and, to the extent such agreements impose requirements on the distract, with the consent
agreement, strategic partnership agreement and all other agreements executed by the City
and the distract, and shall deliver the certification to the City Secretary the City Manager
and the Director of the Development Department.
6 No land within the distract shall be allowed, at any time m the future, to incorporate,~oin
m an incorporation, or be annexed into any incorporated city other than the Crty of Fort
Worth.
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7 No land shall be annexed by the district without pnor City Council approval
8 The d~stnct shall not construct or install infrastructure or facilities to serve areas outside
the district or sell or deliver services to areas outside the district without pnor Crty
Council approval provided, however the district may serve a maximum of 10 retail
residential connections outside the district without Crty Council approval.
9 After creation of the district, and unless otherwise expressly authorized by the consent
agreement or development agreement, no district shall be converted into another type of
district, consolidated with another district, divided into two or more new districts, or seek
additional governmental powers that were beyond its statutory authority at the time the
district was created, without pnor Crty Council approval.
10 The Crty may annex any commercial development wrthm the district for limited purposes
pursuant to Local Government Code, Section 43 0751 and may impose a sales and use
tax wrthm the area annexed for limited purposes. The Crty may consider sharing tax
receipts with the district, provided the district s share is used to finance infrastructure,
retire bond debt or for other purposes acceptable to the City
11 The district shall not issue any bonds other than those authorized by the consent
agreement without City Council approval.
12. The district shall file a notice in the real property records of all counties in which the
district is located stating that the Crty has authority to annex the distract. The parties may
attach a form of such notice to the consent agreement or development agreement.
13 The district shall send a copy of the order or other action setting an ad valorem tax rate to
the City Secretary the City Manager and the Director of the Development Department
wrthm 30 days after district adoption of the rate
14 The district shall send a copy of its annual audit to the City Secretary the City Manager
and the Director of the Development Department within 30 days after approval.
15 The City will encourage the district to maintain a debt service structure that will ensure
that the district s taxes are maintained at a rate at least equal to the City's tax rate, to the
extent feasible
16 The district shall provide copies of any material event notices filed under applicable
federal securities laws or regulations to the City Secretary the City Manager and the
Director of the Development Department wrthm thirty (30) days after filing such notices
with the applicable federal agency
17 Construction of capital improvements such as fire stations and recreational amenities will
be encouraged.
18 Sharing of fire stations, recreational amenities and other capital improvements by the
Crty and the district will be encouraged.
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19 If construction or expansion of a wastewater treatment facility is proposed to serve the
district, the plant design shall conform to all applicable state and federal permrttmg and
design standards. In addition, any wastewater discharge shall be pennttted to meet
effluent hmrtations no less strngent than (a) current permit requirements for Village
Creek Wastewater Treatment Plant; (b) current permit requirements for Denton Creek
Wastewater Treatment Plant; or (c) 5-5 2 1 (5 parts per million { `ppm'}biochemical
oxygen demand, 5 ppm total suspended solids, 2 ppm nitrogen, and 1 ppm phosphorus)
whichever is strictest. The City reserves the right to protest any wastewater treatment
facility permit application or amendment.
20 The board of directors of the district and landowners within the district will assist the
City in annexing one or more areas, each of which may not exceed 525 feet in width at its
widest point or such other width limitation subsequently imposed by law as reasonably
necessary for the City to connect areas to the City that are outside the district and that the
Crty intends to annex m the foreseeable future.
21 If it is determined that the development will place a burden on City roads that will
provide access to the development, the City may require the district to construct, widen or
improve such roads (or contribute funds for such purpose) m proportion to the traffic
generated by the development.
22 The City may agree not to annex and dissolve the district any earlier than the first to
occur of (i) extension of water sanitary sewer and drainage facilities to serve 90% of the
land wrthm the district; or (ii) 15 years after creation of the district. The contract between
the City and the district may provide that the Crty may set rates for water and/or sewer
services for property that was wrthm the district that vary from those for other properties
wrthm the City m order to compensate the Crty for assumption of district obligations
upon annexation, m compliance with any statutory requirements applicable to such an
agreement.
23 The consent agreement and ancillary documents should include terms providing for the
district to be fully developed and ready for full. purpose annexation by the City wrthm a
reasonable time period.
24 The petitioner shall reimburse the City for expenses incurred by the City m connection
with the City's consent to formation of the district, including but not hmrted to
professional fees incurred m connection with negotiation and preparation of the consent
resolution, consent agreement, development agreement, strategic partnership agreement
and related documents.
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Exhibit "A"
POLICY CONCERNING CREATION OF CONSERVATION AND
RECLAMATION DISTRICTS
I. PURPOSE AND INTENT
The City of Fort Worth (the `City") wishes to allow the prudent use of political
subdivisions that are created pursuant to Article III, Section 52, and/or Article XVI, Section 59
of the Texas Constitution and that are authorized by law to provide water wastewater drainage
and other services ("districts"), m order to facilitate development within the City's corporate
boundaries and extraterritorial jurisdiction that is generally consistent with the City's
Comprehensive Plan.
This policy is intended to be equitably applied to the creation of, inclusion of land
within, and operation of all proposed districts, while allowing flexibility necessary to address
unique factors that may arise with respect to each proposed distract.
Prior to considering whether to consent to or support the creation of a district, the City
will consider whether the Crty is able to provide water and wastewater service to the area
proposed to be included in the district and whether the City wishes to annex such area m the
foreseeable future
The purpose of this policy is to carry out the following purposes to the extent allowed by
law•
• Encourage quality development;
• Allow the City to enforce reasonable land use and development regulations;
• Provide for construction of infrastructure consistent with Crty standards and Crty
inspection of such infrastructure;
• Provide notice to residents of the district that the Crty may annex the district at
some future time
• Facilitate cost-effective construction of infrastructure to serve the area within the
distract, including police and fire stations, that is consistent with City standards
and plans, so that the potential financial burden on the citizens of Fort Worth
will be reduced, m the event of annexation of such land by the Crty•
• Provide for extension of water and wastewater lines that will serve future growth
m the Crty and its extratemtorial jurisdiction consistent with the City's regional
utility planning;
• Establish guidelines for reasonable conditions to be placed on.
Issuance of bonds by the district; and
The City's consent to creation of the district, mcludmg conditions
consistent with the City's water and sewer bond ordinances regarding
creation of distracts that might otherwise detrimentally compete with the
City's utility systems,
• Establish guidelines for other mutually beneficial agreements by the City and the
district;
• Provide a procedural framework for responding to a petition seeking the City's
consent to the creation of the district; and
• Encourage communication with county officials and staff members of the county
or counties m which a proposed district is to be located.
II. DEFINITIONS
Bond -Instrument, mcludmg a bond, note, certificate of participation or other instrument
evidencing a proportionate interest m payments due to be paid by an issuer or other type of
obligation that: (1) is issued or incurred by an issuer under the issuer's borrowing power
without regard to whether rt is subject to annual appropraation, and (2) is represented by an
instrument issued m bearer or registered form or is not represented by an instrument but the
transfer of which is registered on books maintained for that purpose by or on behalf of the issuer
Certificate of convenience and necessity (CCN) - A permit issued by the Texas Commission
on Environmental Quality ("TCEQ') authorizing a specified utility to be the retail water or sewer
service provider m a specified area.
City Council -City Council of the City of Fort Worth.
Consent agreement - An agreement between the City and owners and developers of land m a
proposed district, which, if agreed to, shall be attached to the consent resolution adopted by the
City Council.
Consent resolution - A resolution approved by the City Council setting forth terms of its
consent to creation of a distract.
Consent to creation of a district -Authorization for the owners of land in a proposed district to
mrtiate proceedings to create a distract as provided by law
2
District A mumcipal utility district ("MUD"), water control and improvement distract
("WCID"), fresh water supply district ("FWSD") or similar political subdivision created to
provide water sewer or drainage utility services, roads or other services allowed by law to a
specified area, pursuant to Article III, Section 52, and/or Article XVI, Section 59 of the Texas
Constitution.
Extraterritorial jurisdiction (ET,l) -Unincorporated area generally extending five miles from
the City limit, excluding other incorporated mumcipalrties and their ETJ m which the Crty has
the authority to annex property as determined m accordance with Chapter 42 of the Local
Government Code
Strategic partnership agreement - An agreement between the City and a district addressing the
relationship between the City and the distract, including limited purpose annexation of
commercial areas and other matters pursuant to Section 43 0751 of the Local Government Code.
TCEQ -The Texas Commission on Environmental Quality or its successor
III. PREREQUISITES TO CONSENT TO CREATION OF A DISTRICT
Before the City Council consents to creation of a district, the following issues shall be
considered.
1 If applicable, whether the area proposed for inclusion m the district meets criteria for
annexation set out m the City's annexation policy and is~likely to be annexed by the City
within the foreseeable future• and
2. Whether the City will provide water and wastewater services to the land within the
proposed distract at a reasonable cost and will commence construction of facilities
necessary to serve the land within 2 years and substantially complete such construction
within 4'/z years after submittal of the petition.
If the determination on both issues 1 and 2 above is negative, then before consenting to the
creation of a district, the Crty Council should consider further whether the creation of the distract
is feasible, practicable, necessary for the provision of the proposed services and would be a
benefit to the land, and therefore warrants the City's consent, consistent with the other
considerations in this policy
If the determination on either of the two issues is affirmative, then the City Council should not
consent to creation of the distract unless the petitioner demonstrates that unique factors justify its
creation. If appropriate under the circumstances, the Crty shall
• Commence negotiations with the owners of at least 50 percent of the land in the proposed
distract and a ma~oraty of the qualified voters concermng the City's provision of water and
wastewater services, upon receipt of a petition submitted by such persons m accordance
with Local Government Code, Section 42 042 or
• Commence proceedings to annex the land in the proposed district.
3
IV COMMUNICATION WITH COUNTY OFFICIALS
The Crty will initiate communication with county officials for the county or counties in which a
district is proposed to be located in order to promote interlocal cooperation on shared local goals
and to support regional planning.
V STAFF ANALYSIS
Upon receipt of a petition seeking the City's consent to creation of a distract and after a
preliminary determination of the Article III prerequisites, Crty staff shall analyze the proposed
development and its potential impact on facilities and services. The petitioner is encouraged to
provide the following preliminary information relative to the land proposed to be included m the
district, if available•
1 Engineering report showing.
a. Preliminary water availability study including copies of any proposed
contracts,
b Preliminary wastewater treatment availability including copies of any proposed
contracts,
c. Preliminary drainage study and
d. Preliminary road study for any roads proposed to be reimbursed by bonds.
2 Preliminary cost estimates for water wastewater drainage or road facilities or projects,
and any other proposed district facilities to be reimbursed or paid for by the issuance of
district bonds,
3 Master development plan showing general layout of proposed land uses, mayor streets
and roads, water wastewater and drainage facilities, and any other distract facilities,
4 Information concerning provision of firefighting and law enforcement services,
5 Estimated buildout schedule by year with estimated assessed valuations m the distract;
6 Estimated ultimate amount of bonds to be issued by the distract, ultimate debt service
requirements and and projected distract tax rate;
7 Distract boundary and vicinity map
8 Traffic study identifying potential impacts on:
a. The City's road system serving the land proposed to be included m the district,
if all or any portion of the land is located within the Crty or wrthm 2 miles of the
City's boundaries, and
b The county's road system.
This traffic study is m addition to any traffic studies required by the City's subdivision
regulations m connection with submittal of subdivision plats;
4
9 If all or any portion of the proposed district is located outside the City's boundaries,.
proof that the petitioner has provided the following information by certified mail to the
County Judge and each member of the Commissioners Court of the county or counties
in which the land proposed to be included m the district is included. the name, acreage
and location of the proposed district, buildout schedule, estimated population on total
buildout and map of the area,
10 Such other information as City staff may reasonably require to analyze the need for the
proposed facilities and the development's potential impact; and
11 Any proposed City consent agreements.
VI. CONDITIONS TO CITY'S CONSENT TO CREATION OF DISTRICT
If the City Council elects to consent to the creation of, or inclusion of land within, a district, then
rt shall impose the following requirements as conditions of the City's consent, and such
requirements shall be stipulated m the consent resolution and/or other ancillary agreement,
unless the City Council determines that requirements are not appropriate with regard to a specific
district.
All water wastewater drainage and road infrastructure and facilities, as well as any
other infrastructure or facilities to be reimbursed or paid for by the issuance of district
bonds, shall be designed and constructed to City standards, including without limitation
fire flow standards and utility and road design, construction and installation standards,
m accordance with plans and specifications that have been approved by the City In
the event of a conflict between City water and wastewater standards and standards
imposed by the CCN holder for the proposed district, City standards will prevail, unless
otherwise agreed by the City
2 The City shall have the right to inspect all facilities being constructed by or on behalf of
the district and to charge inspection fees consistent with the City's Policy for
Installation of Community Facilities, as amended from time to time.
3 Bonds, including refunding bonds issued by the district, shall, unless otherwise agreed
to by the City comply with the following requirements, provided such requirements do
not generally render the bonds unmarketable
a. Maximum maturity of 25 years for any one series of bonds,
b Interest rate that does not exceed 2% above the highest average interest rate
reported by the Daily Bond Buyer in its weekly `20 Bond Index" during the one
month period next preceding the date notice of the sale of such bonds is given,
c The bonds shall expressly provide that the district shall reserve the right to
redeem bonds at any time subsequent to the tenth (10~') .anniversary of the date of
issuance, without premium. No variable rate bonds shall be issued by a district
without City Council approval, and
d. Any refunding bonds of the distract must provide for a minimum of 3% present
value savings and that the latest maturity of the refunding bonds may not extend
beyond the latest maturity of the refunded bonds unless approved by the City
Council.
4 The City shall require the following information with respect to bond issuance
a. At least 30 days before issuance of bonds, except refunding bonds, the district's
financial advisor shall certify in writing that the bonds are being issued within the
existing economic feasibility guidelines established by the TCEQ for districts
issuing bonds for water sewer or drainage facilities m the county m which the
distract is located and shall deliver the certification to the City Secretary the Crty
Manager and the Director of the Development Department.
b At least 30 days before the issuance of bonds, the distract shall deliver to the Crty
Secretary the City Manager and the Director of the Development Department
notice as to
i. The amount of bonds being proposed for issuance
ii. The projects to be funded by such bonds, and
ui. The proposed debt service tax rate after issuance of the bonds.
If the district is not required to obtain TCEQ approval of the issuance of the bonds
(other than refunding bonds), the district shall deliver such notice to the City
Secretary the City Manager and the Director of the Development Department at
least 60 days prior to issuing such bonds. Within 30 days after the district closes
the sale of a series of bonds, the district shall deliver to the City Secretary the
Crty Manager and the Director of the Development Department a copy of the final
official statement for such series of bonds. If the City requests additional
information regarding such issuance of bonds, the distract shall promptly provide
such information at no cost to City
5 The purposes for which a district may issue bonds shall be restricted to the purchase,
construction, acquisition, repair extension and improvement of land, easements, works,
improvements, facilities, plants, equipment and appliances necessary to
a. Provide a water supply for the distract for mumcipal uses, domestic uses and
commercial purposes,
b Collect, transport, process, dispose of and control all domestic, industrial or
communal wastes from the district whether m fluid, solid or composite state,
c. Gather conduct, divert and control local storm water or other local harmful
excesses of water m the district; and
d. Pay organization and administrative expenses, operation expenses during
construction, cost of issuance, interest during construction and capitalized interest.
If appropriate m a particular distract, the City may consent to issuance of bonds for
purchase, construction, acquisition, repair extension or improvement of fire stations,
roads and/or other capital improvements that are mutually agreed upon by the Crty
Council and the petitioner
6
VII. ADDITIONAL REQUIREMENTS
The Crty may address issues relating to the district m a consent agreement, strategic partnership
agreement, development agreement, community facilities agreement or other documents
acceptable to the parties. The Crty shall consider proposing additional terms, subject to the
mutual agreement of the parties and as allowed by law including without limitation the
following:
1 The district shall contain sufficient acreage to assure the economic viability of the distract
but no more acreage than can feasibly be annexed at one time. In general, a district is not
expected to include less than 200 acres or more than 500 acres.
2 Development within the district shall be generally consistent with the City's
Comprehensive Plan.
3 No district shall include land m more than one city's extraterntonal ~urasdiction.
4 The Crty and the owners of all land m the proposed d~stnct may reach agreement on the
terms of a development agreement pursuant to Local Government Code, Section 212 171
et seg to extend the City's planning authority over land included m the district by
providing for approval of a development plan, authorizing enforcement by the City of
land use and development regulations, and mcludmg other lawful terms and
considerations the parties consider appropriate. The development agreement may include
provisions that are mutually acceptable to the parties relating to the following matters
a. Land use plan reflecting all approved land uses and residential densities,
b Compliance with Crty construction codes, mcludmg permit requirements,
c. Compliance with City and other applicable stormwater and water quality
regulations,
d. Development standards comparable to City zoning regulations, and
e. Dedication and development of park areas.
The above list is not intended to be exhaustive. It is expected that the parties will
cooperate to identify those matters unique to that district that may be addressed m a
development agreement.
5 At least 30 days before issuance of bonds, the district shall certify m writing that the
distract is in full compliance with the consent resolution approved by the Crty Council
and, to the extent such agreements impose requirements on the district, with the consent
agreement, strategic partnership agreement and all other agreements executed by the City
and the district, and shall deliver the certification to the City Secretary the Crty Manager
and the Director of the Development Department.
6 No land within the district shall be allowed, at any time in the future, to incorporate, tom
m an incorporation, or be annexed into any incorporated city other than the City of Fort
Worth.
7
7 No land shall be annexed by the distract without prior City Council approval.
8 The distract shall not construct or install infrastructure or facilities to serve areas outside
the distract or sell or deliver services to areas outside the distract without prior City
Council approval, provided, however the district may serve a maximum of 10 retail
residential connections outside the district without City Council approval
9 After creation of the district, and unless otherwise expressly authorized by the consent
agreement or development agreement, no district shall be converted into another type of
distract, consolidated with another distract, divided into two or more new districts, or seek
additional governmental powers that were beyond its statutory authority at the time the
district was created, without prior City Council approval.
10 The City may annex any commercial development within the district for limited purposes
pursuant to Local Government Code, Section 43 0751 and may impose a sales and use
tax wrthm the area annexed for hmrted purposes. The Crty may consider sharing tax
receipts with the district, provided the district's share is used to finance infrastructure,
retire bond debt or for other purposes acceptable to the Crty
11 The district shall not issue any bonds other than those authorized by the consent
agreement without Crty Council approval.
12. The distract shall file a notice m the real property records of all counties m which the
district is located stating that the City has authority to annex the district. The parties may
attach a form of such notice to the consent agreement or development agreement.
13 The district shall send a copy of the order or other action setting an ad valorem tax rate to
the City Secretary the City Manager and the Director of the Development Department
wrthm 30 days after district adoption of the rate.
14 The district shall send a copy of its annual audit to the City Secretary the City Manager
and the Director of the Development Department within 30 days after approval.
15 The Crty will encourage the district to maintain a debt service structure that will ensure
that the district's taxes are maintained at a rate at least equal to the City's tax rate, to the
extent feasible.
16 The district shall provide copies of any material event notices filed under applicable
federal securities laws or regulations to the Crty Secretary the Crty Manager and the
Director of the Development Department wrthm thirty (30) days after filing such notices
with the applicable federal agency
17 Construction of capital improvements such as fire stations and recreational amenities will
be encouraged.
18 Sharing of fire stations, recreational amenities and other capital improvements by the
City and the district will. be encouraged.
8
19 If construction or expansion of a wastewater treatment facility is proposed to serve the
distract, the plant design shall conform to all applicable state and federal permitting and
design standards. In addition, any wastewater discharge shall be permitted to meet
effluent limitations no less stringent than (a) current permit requirements for Village
Creek Wastewater Treatment Plant; (b) current permit requirements for Denton Creek
Wastewater Treatment Plant; or (c) 5-5-2 1 (5 parts per million { `ppm }biochemical
oxygen demand, 5 ppm total suspended solids, 2 ppm nitrogen, and 1 ppm phosphorus),
whichever is stractest. The Crty reserves the right to protest any wastewater treatment
facility permit application or amendment.
20 The board of directors of the distract and landowners within the district will assist the
City m annexing one or more areas, each of which may not exceed 525 feet m width at its
widest point or such other width hmrtation subsequently imposed by law as reasonably
necessary for the City to connect areas to the City that are outside the distract and that the
City intends to annex in the foreseeable future.
21 If it is determined that the development will place a burden on City roads that will
provide access to the development, the Crty may require the distract to construct, widen or
improve such roads (or contribute funds for such purpose) in proportion to the traffic
generated by the development.
22. The Crty may agree not to annex and dissolve the distract any earlier than the first to
occur of (i) extension of water sanitary sewer and drainage facilities to serve 90% of the
land within the distract; or (ii) 15 years after creation of the distract. The contract between
the Crty and the district may provide that the City may set rates for water and/or sewer
services for property that was within the distract that vary from those for other properties
within the City m order to compensate the City for assumption of distract obligations
upon annexation, m compliance with any statutory requirements applicable to such an
agreement.
23 The consent agreement and ancillary documents should include terms providing for the
district to be fully developed and ready for full purpose annexation by the City within a
reasonable time period.
24 The petitioner shall reimburse the Crty for expenses incurred by the City m connection
with the City's consent to formation of the distract, including but not limited to
professional fees incurred m connection with negotiation and preparation of the consent
resolution, consent agreement, development agreement, strategic partnership agreement
and related documents.
9
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 5/3/2005 Res. #3198-05-2005
DATE Tuesday May 03 2005
LOG NAME. 60MUD POLICY REFERENCE NO G-14778
SUBJECT
Approve a Resolution Adopting a Policy Concerning the Creation of Conservation and Reclamation
Districts
RECOMMENDATION
It is recommended that the City Council approve a resolution adopting a .policy concerning the creation of
conservation and reclamation districts
DISCUSSION
Conservation and reclamation districts are political sub-divisions of the State of Texas authorized primarily
to provide water wastewater and drainage facilities and services to customers located within district
boundaries In addition districts can provide other services such as solid waste collection and fire
protection Districts can provide the services directly or contract with another political sub-division to provide
~. the services Conservation and reclamation districts include municipal utility districts water control and
improvement districts and fresh water supply districts
Districts have the powers to incur debt, levy taxes and enter into contracts with voter approval, districts may
issue bonds to fund construction of infrastructure levy an annual property tax sufficient to pay the district's
outstanding debt and levy a maintenance tax to cover the costs of operating and maintaining the district's
water and sanitary sewer systems.
Petitions seeking the City's consent to creation of two municipal utility districts and two water control and
improvement districts in the extraterritorial jurisdiction have been submitted to the City 1n addition the City
has been advised that a petition seeking consent to creation of four additional municipal utility districts in the
extraterritorial jurisdiction will be submitted Further City staff have been contacted by other property
owners who in the future may seek the City's consent to form districts either inside the City or in the City's
extraterritorial jurisdiction
The policy .provides guidelines for the City Council to consider requests for consent to creation of
conservation and reclamation districts and for negotiation of the consent agreement and ancillary
documents Each individual request for consent to creation and all contracts between the City the district
and property owners will be presented to the City Council for approval The policy is not intended to limit
the issues that can be considered by the Council but to provide a framework for analysis of each proposed
district and issues unique to the district.
The policy contains the following sections
Purpose and Intent;
Definitions,
Prerequisites to consent to creation of a District, which sets out issues for the Council to consider
in deciding whether to consent to creation of a district, including whether it would be advisable to
Logname 60MUD POLICY Page 1 of 2
annex and serve the area, in lieu of consenting to creation
Communication with County officials
City staff analysis which encourages the petitioner to submit specific documents to the City to enable
u~ City staff to analyze the proposed development and its potential impact on facilities and services
~~ Conditions to City's consent to creation of a District, which sets out conditions that can be unilaterally
imposed by the City pursuant to state law and
Additional requirements, which are conditions to consent the City should consider proposing subject
to mutual agreement of the parties. The policy expressly provides that the list of additional
requirements is not intended to be exhaustive
The policy reflects two substantive changes to the draft policy dated April 5 2005 that was previously
provided to the City Council Article V(4) was amended to encourage the petitioner to provide information to
the City concerning provision of law enforcement services, as well as firefighting services. Article VII was
amended to add a new item 14 concerning negotiation of a requirement that the district send a copy of its
annual audit to the City Secretary the City Manager and the Director of the Development Department and
to renumber the subsequent items.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect. on City funds
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office b~ Marc Ott (8476}
Originating Department Head. S Frank Crumb (Acting) (8207).
Additional Information Contact: Marcella Olson (8819)
~.~
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Logname 60MUD POLICY Page 2 of 2