HomeMy WebLinkAboutResolution 4825-08-2017 A Resolution
NO. 4825-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
NORTHSIDE IV 24 INCH WATER TRANSMISSION MAIN ALONG BOWMAN
ROBERTS ROAD PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the
design, planning, acquisition and construction for the Northside IV 24 inch Water
Transmission Main along Bowman Roberts Road Project (the "Project") prior to the
issuance of obligations by the City in connection with the financing of the Project
from available funds; and
WHEREAS, the City finds, considers, and declares that the reimbursement of
the City for the payment of such expenditures will be appropriate and consistent
with the lawful objectives of the City and, as such, chooses to declare its intention,
in accordance with the provisions of Section 1.150-2 of the Treasury Regulations, to
reimburse itself for such payments at such time as it issues obligations to finance the
Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum principal
amount not to exceed $5,250,000.00 for the purpose of paying the aggregate costs of the
Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this Statement
after a date which is later than 18 months after the later of (1) the date the expenditures
are paid or (2) the date on which the property, with respect to which such expenditures
were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued pursuant
to this Statement more than three years after the date any expenditure which is to be
ORTWO T
Resolution 4825-08-2017
reimbursed is paid.
Adopted this Is' day of August, 2017.
ATTEST:
----------------7=By: ------------ OF FpR�
Ronald P. Gonzales, Assist t City Secretary �-� • �y
�XAS
ORT WORT
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/1/2017 - Ordinance Nos. 22815-08-2017 and22816-08-
2017 & Resolution No. 4825-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28316
LOG NAME: 60NSIV24INWM CONDIE
SUBJECT:
Authorize Acceptance of Funds from CENTEX Homes, Inc., in the Amount of$738,300.00 to Provide
Construction Costs for Northside IV 24-Inch Water Transmission Main Along Bowman Roberts Road from
Santa Gertrudis Street to Haltom Bailey Boswell Road, Authorize Execution of a Contract with Condie
Construction Company, Inc., in the Amount of$4,859,595.00 for Northside IV 24-Inch Water Transmission
Main Along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road, Provide
for Project Costs, Testing and Contingencies for a Total Project Amount of$5,383,395.00, Adopt
Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinances (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the acceptance of funds from CENTEX Homes, Inc., in the amount of$738,300.00;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer Community Facility Agreement Fund in the amount of$738,300.00;
3. Adopt the attached Resolution expressing official Intent to reimburse expenditures with proceeds of
future debt for entire the Northside IV 24-inch Water Transmission Main Project;
4. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of$4,645,095.00; and
5. Authorize execution of a contract with Condie Construction Company, Inc., in the amount of
$4,859,595.00 for the Northside IV 24-inch Water Transmission Main Along Bowman Roberts Road
from Santa Gertrudis Street to Haltom Bailey Boswell Road (City Project No.100277)
DISCUSSION:
This project provides for the 24-inch water transmission main from the Eagle Mountain Water Treatment
Plant along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road. The
proposed water main is the first phase of a 24-inch water transmission main from the treatment plant to
serve points in the northern growth areas of the City. The project also includes the installation of hydro-
pneumatic tank, meter installation at the treatment plant and transfer value station with motorized valve
and SCADA controls. In accordance with City Secretary Contact No. 48320 a Developer Funding
Agreement between CENTEX Homes and the City of Fort Worth for Northside IV 24-inch water main
extension Bowman-Roberts Road, CENTEX Homes is providing $738,300.00 for its share of the
construction cost of this project.
Logname: 60NSIV24INWM CONDIE Page 1 of 3
This project was advertised for bids on April 6, 2017 and April 13, 2017 in the Fort Worth Star-Telegram.
On June 1, 2017 the following bids were received:
Bidder mount ITime of Completion
Condie Construction Company, Inc. $4,859,595.00 320 Calendar Days
S.J. Louis Construction of Texas, Ltd. $5,145,815.00
Thalle Construction Company, Inc. $6,253,959.00
In addition to the contract cost, $280,800.00 is required for project management, material testing and
inspection, $243,000.00 is provided for project contingency and $34,592.00 is provided to cover costs for
Amendment No. 2 to allow for inspection of the hydro-pneumatic tank and the transfer valve station by the
project design consultant: Freese and Nichols, Inc., Mayor and Council Communication (M&C C-28046)
awarded the engineering/design of this project to Freese and Nichols, Inc., while also accepting funds
from Centex Homes for its share of the design costs.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund.
Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation
authority authorized under the Direct Purchase Note (DPN) Program will be used to provide interim
financing for this project until debt is issued. To the extent resources other than the Water and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the DPN Program or earlier issuance of Water and Sewer revenue bonds than is currently planned.
Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and
Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution.
The City Council adopted the Water Department's Fiscal Year 2016-2020 Five Year Capital Improvement
Plan on February 2, 2016, (M&C G-18662). This City Council adopted plan includes this specific project,
with funding identified through the DPN program to be reimbursed with future revenue bonds. In
accordance with the provisions of the Financial Management Policy Statement, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. This debt must be issued within approximately three years to provide reimbursement for these
expenses. If that does not occur, the costs will no longer be reimbursable by issuing tax-exempt debt and
the funding source will have to be made whole through budgetary methods. Adoption of this resolution
does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-exempt
bond proceeds.
Construction is anticipated to commence in September 2017 and be completed by July 2018. The overall
project budget is estimated to be $5,973,000.00.
This project will have no impact on the Water Department's Operating Budget when complete.
M/WBE OFFICE—Condie Construction Company, Inc., is in compliance with City' s BDE Ordinance by
committing to nine percent MBE participation. The City's MBE goal on this project is eight percent.
The project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION /CERTIFICATION:
Logname: 60NSIV24INWM CONDIE Page 2 of 3
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinances, funds will be available in the Water and Sewer Community Facilities
Agreement Fund and the Water& Sewer DPN Fund for the Northside IV 24-Inch Water Transmission
Main Project as depicted in the table below.
Existing Additional
FUND Appropriations Appropriations Project Total*
W&S Community Facilities $110,745.00 $738,300.00 _ $849,045.00
Agmt Fund 56008
0ater & Sewer DPN Fund $478,255.00 $4,645,095.00 $5,123,350.00
011 _
Project Total $589,000.00 $5,383,395.00 1$5,972,395.00
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Kara Shuror (8819)
Additional Information Contact: Roberto C. Sauceda (8819)
Logname: 60NSIV24INWM CONDIE Page 3 of 3
I 11`SECRETARY
ACT Rte. .�
DEVELOPER FUNDING AGREEMENT
O"l?8 FOR
�'JIyQ `u'h NORTHSIDE IV 24-INCH WATER MAIN EXTENSION
BOWMAN-ROBERTS ROAD
THIS AGREEMENT is by and between CENTEX HOMES, a Nevada general
partnership, hereinafter referred to as "Developer", and the City of Fort Worth, hereinafter
referred to as "City".
WHEREAS, Developer, is the owner of land to be developed as a phase of a
residential community commonly known as LakePointe, an Addition To The City Of Fort
Worth, Tarrant County Texas, more fully described in Exhibit A attached hereto (the
"Property"); and
WHEREAS, in order to serve the Property, Developer is required to extend a 12-inch
water line to the Property; and
WHEREAS, City is planning to construct in phases the NS IV 24-inch water main from
Eagle Mountain Water Treatment Plant to serve points in the City's northern growth areas.
WHEREAS, in lieu of Developer constructing its 12-inch water main pursuant to a
Community Facilities Agreement with City participation, City will instead construct Phase 1 of
the Northside IV 24-inch Water Main Extension from the Eagle Mountain Water Treatment
Plant at Bowman Roberts Road and Santa Gertrudis to Bailey Boswell Road, including a
hydropneumatic tank, a pressure plane valve and related facilities and a stub out to provide
water service to the Property (the "Facility") as a CIP project, with Developer to contribute
funds equivalent to its proportionate share of the water main toward the City's construction of
the Facility; and
WHEREAS, as more fully set forth below, Developer will make a total contribution to
the City of $849,045 for its share of the Facility and to expedite service to Developer's
Property (the "Contribution") in the amounts of $110,745 for engineering costs (the
"Engineering Cost Contribution") and $738,300 for construction costs (the "Construction
Cost Contribution"); and
WHEREAS, the estimated cost for the Facility is $400,000 for design and $5,240,000
for construction (See Opinion of Probable Construction Costs in Ex. B) inclusive of Facility
features which are not the Developer's responsibility;
NOW THEREFORE, in consideration of the above recitals, City and Developer, acting
herein by and through their duly authorized representatives, do hereby agree as follows:
1.
City, at City's cost (including Developer's Contribution), agrees to design and construct
the Facility. The scope of the Facility is shown on Exhibit "B" attached hereto and
incorporated herein.
OFFICIAL RECORD
CITY SECRETARY
Dev Funding Agreement NS IV 24-Inch Water Main FT.NORTH,TSS_ Page 1 of 9
2.
City shall design (or cause to be designed) the Facility upon receipt of Developer's
Engineering Cost Contribution. Developer shall deliver its Engineering Cost Contribution to
the City within 10 days after Developer receives from the City a fully-executed copy of this
Agreement. If the City Council for the City fails to authorize the award of a contract for design
of the Facility within 90 days after the effective date of this Agreement, City will immediately
return the Engineering Cost Contribution to Developer. Failure by Developer to remit the
Engineering Cost Contribution will delay award of the design contract.
3.
Developer will pay the Construction Cost Contribution to the City within 10 days after
the City notifies Developer in writing that the City has finalized and approved the construction
plans for the Facility and the City has advertised for bids from contractors for the construction
of the Facility. If within 180 days after receipt of Developer's Construction Cost Contribution
the City Council for the City has not authorized the award of a contract for the construction of
the Facility, the City will immediately return all of the Contribution to Developer. The City shall
construct the Facility as soon as is reasonably practical after the design is completed. Failure
by Developer to timely remit the Construction Cost Contribution will delay-award of the
construction contract.
4.
City agrees to design and construct the Facility in accordance with the following
schedule. City will use its best reasonable efforts to comply with this schedule:
Completion Deadline
Task
Six months after execution
of the agreement.
Design Completion Estimated April 1, 2017
One month after design
completes.
Advertisement Estimated May 1, 2017
Three months after bid
Construction Award/Signing of General opening date. Estimated
Contract August 1, 2017
Dev Funding Agreement NS IV 24-Inch Water Main Page 2 of 9
One month after Council
Award for construction
Construction Commencement contract. Estimated
September 1, 2017
13 months
after construction
Facility Completion commencement. Estimated
October 2, 2018
It is acknowledged and agreed by the parties that time is of the essence in the performance
of this Agreement. From and after the execution of this Agreement and until completion of the
Facility, City shall provide Developer with monthly progress reports.
5.
Developer's Contribution to the City shall be the entire amount of Developer's
obligation for its costs related to the Facility, such Improvements being necessitated in part
by the additional water demands that the development of the Property will be placing upon on
the Northside IV pressure plane. The Contribution fairly represents the Developer's
proportional share of the cost of the Facility and shall not be refunded for any reason after
award of the construction contract by the City.
By accepting the Developer's Contribution pursuant to this Agreement, City agrees
that the Developer and any successor owner of all or part of the Property will have no
obligation whatsoever to pay any amounts in addition to the Developer's Contribution or take
any further action with regard to the design or construction of the Facility even if(a) the actual
costs to construct the Facility exceed the costs expected by the City as of the date of this
Agreement, (b) the specifications, composition, or other characteristics of the Facility
hereafter change for any reason, (c) a mistake has been made (mutual or unilateral) in
computing the costs of the Facility or otherwise, or (d) the costs or scope of the Facility
change for any reason.
6.
The City will timely proceed with processing a Community Facilities Agreement and
related engineering plan review for the development of the Property when submitted by
Developer ("Property CFA"). As part of the Property CFA, City will allow the on-site
subdivision paving, water, sewer and other public improvements ("Infrastructure") to proceed
to construction while the Facility is being constructed. The City will issue acceptance of
completed Infrastructure constructed, inspected and accepted in accordance with the
Property CFA even though the construction of the Facility may not then be complete. City will
issue building permits for subdivision lots within the Property with a finished floor elevation
below 830' even though construction of the Facility may not then be complete and Developer
Dev Funding Agreement NS IV 24-Inch Water Main Page 3 of 9
agrees it will not close the sale of any completed homes to a third party until the Facility is
complete and accepted per City and TCEQ rules and regulations.
7.
Developer shall be entitled to a refund of a portion of its Contribution pursuant to City Code
Chapter 35, Article III, Division 4 et seq.
8.
The City will use its best reasonable efforts to construct the Facility without undue
delay, but City's performance of construction will be subject to delays caused by events of
force majeure.
9.
This Agreement shall be binding upon and inure to the benefit of the City and
Developer and their respective successors and assigns. This Agreement, together with any
exhibits attached hereto, constitutes the entire agreement between the parties hereto, and
may not be amended except by a writing signed by all parties and dated subsequent to the
date hereof.
If Developer or any subsequent owner transfers the Property or any portion thereof
prior to the performance of all obligations of the Developer hereunder, Developer or such
transferring owner shall obtain an agreement from the transferee assuming the obligations of
the transferring owner under this Agreement performable from and after the date of transfer.
From and after the date of such transfer, the transferee shall be solely obligated under this
Agreement, and the transferring owner shall have no further obligations under this
Agreement, with respect to the Property or portion thereof transferred.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Dev Funding Agreement NS IV 24-Inch Water Main Page 4 of 9
Executed by each party's duly designated and authorized representative, effective as
of the date subscribed by the City's designated signatory.
Developer:
CENTEX HOMES, a Nevada general CITY OF FORT WORTH
partnership, by Centex Real Estate
Corporation, its managing general partner �—
By:
By; f Jesus J. Chapa
Name: Assistant City Manager
Title: vP QF 1 ANn nFVFI nPMFNT
Date: Date: /O'
Recommended By:
Joh' arman
9irector, Water Department
APPROVED AS TO FORM ATTEST-
Am 41L
Douglas W Black ary J. K y er
Sr. Assistant City Attorney City Secretary
OFFICIAL RECORD
CITY SECRETARY
Ft WORTH,TX
Dev Funding Agreement NS IV 24-Inch Water Main Page 5 of 9
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Jesus J. Chapa, Assistant City Manager for the City of Fort
Worth, known to me to be the person whose name is subscribed to the foregoing instrument,
and acknowledged to me that the same was the act of the City of Fort Worth and that he
executed the same as the act of said City of Fort Worth for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2016.
W v,�. ml
otary Public, State of Texas
My Commission expires:
LINDA M. HIRRIINGER
Notary PubliC,State of Texas
Comm.Expires 02-02-20)8
Notary ID 12414474.6
Dev Funding Agreement NS IV 24-Inch Water Main Page 6 of 9
STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
onthis day personally appeared ( ,�Ini �1yu-fit
�J21� ltd QhIOCIPYYlAtof Centex Real Estate Corporation, a Nevada corporation, on
behalf of said corporatio�, in its capacity as managing general partner of Centex Homes, a
Nevada general partnership, on behalf of said general partnership, known to me to be the
person whose name is subscribed to the foregoing instrument, and acknowledged to that he/she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this �' j~j day of
2016.
JESSICA HERNANDE2
No ry Pubic, Stat "Tes
NotaryPublic,state of Texas
My Commission Expires
April 18, 2018 Commission expires:
Dev Funding Agreement NS IV 24-Inch Water Main Page 7 of 9
Exhibit A
The Property
[Description of Centex's Property to be served to be inserted]
Dev Funding Agreement NS IV 24-Inch Water Main Page 8 of 9
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Exhibit B
The f=acility
[Description/diagram of Facility to be inserted, including showing plans and location for
service to Centex's Property]
Dev Funding Agreement NS IV 24-Inch Water Main Page 9 of 9
EXHIBIT B
OPINION OF PROBABLE CONSTRUCTION COST
Route Study
Northside 4 24-Inch Water Main
CITY OF FORT WORTH,TEXAS
• • CHECKED BY DATE—
FT1N14497 1 OLK pGS March 24 2018
ITEM r
t
DESCRIPTION QUANTITY UNIT UNITPRICE TOTALE
24-Inch Water Main $ 3,838,860.00
1 244n Waterline by Oen Cut 10,820 LP $ 140.00 $ 1,614,800:00
2 24-in Waterline Inside Casing 180 LF $ 180.00 $ 32,400.00
3 36-in Steel Casing by Other Than Open Cut 180 LF $ 720.00 $ 129,600.00
4 244n Gate Valve and Vault 10 EA $ 30,000.00 $ 300,000.00
5 2-In Combination Air Valve Assembly 6 EA $ 20,000.00 $ 120,000.00
6 84n Blow Off Assembly 61 EA $ 25,000.00 $ 150.000.00
7 Connection to Water Treatment Plant i EA $ 20 000.00 $ 20,000.00
8 Trench Safet 10,820 LF $ 2,00 $ 21,640.00
9 H dromulch 60,120 SY $ 1.00 $ 60,120,00 i
10 Storm Water Pollution Prevention Plan 1 LS $ 25,000,00 $ 25,000.00
11 Cathodic Protection 1 LS $ 140,000.00 $ 140,000.00
12 Traffic Control 6 MO 3,000,00 $ 18,000.00 I
13 Ashet t Pavement Repair 10,000 LF $ 65.00 $ 650,000.00
Surface Mill 26,700 SY $ 4,00 $ 108 800.00 i
15 V As halt Pvmt Type D 26,700 SY $ 15.00 $ 400,600.00
16 Pavement Sirlping 10,000 LF $ 5.00 $ 60,000,00
17 Misc.UllityAdjustments 1 LS $ 100,000.00 $ 100,000.00
f
Flow Meter at EMWTP $ 40,000.00
16 Flow Meter 1 EA $ 20,000,00 $ 20,000.00
17 Piping for flow meter 1 LS $ 10,000.00 S 10,000,00
18 Electical E upment for flow meter 1 LS $ 10,000.00 $ 10,000.00
i
Hydro-Pneumatic Tank $ 300 000.00 I
19 Hydro-Pneumatic Tank 1 LS $ 250,000.00 S 250,000.00 {
20 jElectical Equpment for Hydro-Pneumatic Tank 1 LS $ 50,000.00 $ 50,000.00
Pressure Plan Flow Transfer Station $ 188,200.00
21 Flow control valve 1 EA $ 30,000.00 $ $0,000.00 i
22 Flow Meter 1 EA $ 8,000.00 $ 8,000.00
23 12"Gate Valve 2 EA $ 3,500.00 $ 7,000.00
24 Connection to existing 36-inch NSIiI Water Line 1 EA $ 25,000.00 $ 26,000.00
25 12"Ductile Iron Pie 40 LF $ $0.00 $ 3,200.00
26 Valut f I EA $ 20,000.00 $ 20,000.00
27 Electical Power to site 1 LS $ 50 000.00 1$ 50,000,00
28 Electical E u ment for Flow Transfer Station 1 LS $ 25,000.00 $ 25,000.00
29 SCADA Antenna 1 LS S 20,000.00 $ 20,000.00
,SUBI• •
.00
CONTINGENCY MIS 873,500.00
TOTAL,OPCC5,241,000.00
Notes,
1.Easements may be required where Right-Of-Way for existing roads have not been dedicated.
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ATTACHMENT E
CITY OF FORT WORTH I.
NORTHSIDE 4
Proposed NS4 to NS3
�',� .• 24-INCH WATER MAIN
Transfer Valve
(PROJECT 6N4)
LEGEND
Proposed Proposed
Hydropneumatic Tank — 24"Water Line r
": -�a� .� •-
Proposed Meter Water
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Treatment Plant
iT Proposed Valve
FORT WORTH,,
t•f PI� �i, FREESE 1
tl :.•, ;(r -�y-► ,_ �' 91MINICHOLS
'�• •lt . 1 411 I t J
F }s a' '° xF i Proposed Northside IV -
: .. 24" Water Line
F.
-
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Water
Treatment Plant - Proposed
H dro neumatic Tank '
Proposed Meter y p
1
+,0 1000 connection to ''-
;SCALE IN FEET ti30" Water Line
<° . Exisng