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HomeMy WebLinkAboutContract 50707 C17Y SECRUARYO O Memorandum of Understanding CONTRACT N0. rl- Between the City of Fort Worth,Texas and PB Ventana I,LLC for Permanent Sanitary Sewer Services Related to the Ventana Development in Southwest Fort Worth This Memorandum of Understanding ("MOU"), entered to on the date signed by the City's Assistant City Manager,by and between the City of Fort Worth("City"),a Texas home-rule municipality ("City"), acting herein by and through, its duly authorized Assistant City Manager, and PB Ventana I, LLC, a Texas limited liability company ("Developer") acting by and through its duly authorized representative. City and Developer are referred to herein individually as a party and collectively as the parties. WHEREAS, Developer is planning to construct a 492 acre master-planned residential development in Southwest Fort Worth;and WHEREAS,the City was planning a capital improvement project for improvements to the City's sanitary sewer system in the area of Developer's project;and WHEREAS, the City and Developer have entered into discussions to have Developer construct the City's infrastructure as part of Developer's project("Project'D;and WHEREAS, the City and Developer desire to document the discussions and mutual understandings between the City and Developer regarding the Project; NOW,THEREFORE,the City and Developer mutually understand the following: 1. EFFECT AND PURPOSE 1.1. Non-Binding Understanding. This MOU does not represent a binding obligation between the City and Developer. This MOU represents the intent of the City and Developer to take necessary steps to implement the Project. 2. UNDERSTANDING 2.1. Facilities and Location. Freese&Nichols,Inc.("FNP')studied three designs in an analysis dated November 17, 2017, a copy of which is attached hereto and incorporated herein by reference as Exhibit A(the"FNI Study"). The preferred design by the City and Developer is a Lift Station and Force Main located on the Ventana Property(Option Number 3 in the FNI Study). The location ofthe Lift Station will be generally at the Southeastern corner of the Ventana Property at a low point in the basin with the Force Main route generally up the Eastern boundary of the Ventana property to the right-of-way of Veale Ranch Parkway. The exact location to be determined and optimized during design. The facilities will consist of approximately a 5.0 MGD Lift Station and an approximate 16"Force Main which may transition to a Gravity Main in areas where the design allows("Facilities"). According to the FNI Study,the sizing Memorandum of Understanding Between the City of Fort Worth,Texas Pag and PB Ventana I,LLC for Permanent Sanitary Sewer Services Related to the Ventana Development in Southwest Fort Worth OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX will provide adequate service to all of the property in the drainage basin in the City limits of Fort Worth, said location being generally referred to as Rolling V South,which encompasses the Ventana property. 2.2. Cost Participation. The City and Developer intend to use a pro-rata cost sharing formula where the Developer's portion of the Project Costs as defined in Section 2.3 shall be a percentage of Developer's share of the required peak flow capacity of the overall approximately 5.0 MGD capacity facilities ("Developer's Share"), and the City's portion of the Project Costs shall be the remaining percentage("City Participation"). The pro-rata cost sharing formula shall be referred to herein as("Cost Sharing"). The required flow capacity of the Ventana property shall be determined by a revised Sewer Study approved by the City that will be solely funded by the Developer to include the revised Ventana boundary in accordance with the City's policies and procedures. The required flow capacity of the Ventana property from the approved revised Sewer Study should determine the Cost Sharing percentages. The parties intend to execute a Design Procurement Agreement("DPA")for the engineering design and one or more Community Facilities Agreement("CFA")for construction,in accordance with state law, the City Code and City policy. The DPA will establish the Developer's Share and City Participation for the design cost. The CFAs will establish the Developer's Share and City Participation for the remaining Project Costs. City Participation in either the DPA or the CFA that is in excess of$100,000 must be approved by the Fort Worth City Council. Appropriation of funds in an amount less than $100,000 may also require City Council approval. Developer understands that it can take five or more weeks to place an item on the .agenda for the City Council to consider for approval. 2.3. Proiect Costs. The Project Costs shall be the costs directly related to designing and constructing the Lift Station and the required Force Main/Gravity Line necessary to connect the Lift Station to the existing 30" Gravity Line located at the southeast corner of FM 2871 and Aledo Road that are identified in this Section 2.3 ("Project Costs"). The Project Costs shall include all hard construction costs, engineering design, survey, Real Property Expenses as defined in Section 2.4, TXDOT permit fees, and Oncor charges to bring power to the Lift Station.Other permit fees(including,but not limited to the City's IPRC fees)and other soft costs will be at Developer's expense and not part of the Cost Sharing. 2.4 Real Property Ex ep nses.The cost for the land where the Lift Station will be located and any easements for the Force Main/Gravity Line necessary to connect the Lift Station to the existing 30" Gravity Line located at the southeast corner of FM 2871 and Aledo Road that are not located in the future ROW dedication shall be part of the Project Costs for which City and Developer will be Cost Sharing("Real Property Expenses"). Developer will not be reimbursed by the City or receive any credit under the Cost Sharing formula for easements that will be dedicated within future ROW. The dollar value attributable to-Real Property Expenses in the Cost Sharing formula for land or easements obtained from third parties shall be the cost of acquisition paid to the third parties for the land or easements. The dollar value attributable to Real Property Expenses in the Cost Sharing formula for land owned by Developer or easements dedicated to the City by Developer shall be $42,000.00 per acre. The Developer shall negotiate any land or easements needed from third parties. 2.5. Platting and Building Permit. The Developer is obligated to plat and dedicate in fee the Lift Station site at no cost to the City,once the adjoining property is platted. The Lift Station property will initially be provided within an exclusive sanitary sewer easement. The Developer will be required to get approval of the City's Planning Commission to defer platting of the site until the adjoining property is Memorandum of Understanding Between the City of Fort Worth,Texas Page 2 of 4 and PB Ventana I,LLC for Permanent Sanitary Sewer Services Related to the Ventana Development in Southwest Fort Worth platted and to request approval for issuance of the building permit for construction of the Lift Station in the easement. 2.6. Process/Bidding/Unit Pricing. Developer shall choose the design engineer.Separate plan sets will be generated for the Lift Station and Force Main. The Fort Worth Water Department will review the plans for approval. Upon informal approval, the plans shall be submitted through the City's IPRC process for final approval and processing. The City's Participation cannot be binding until approved by the City Council. The parties intend to seek City Council approval as soon as reasonably possible which may include utilizing engineer's estimates and contingencies. It is anticipated that one Design Procurement Agreement will be executed by the City and Developer for design of the Project. It is further anticipated that two CFAs will be executed by the City and Developer, one for the Lift Station facilities and one for the Force Main facilities. Upon selection of a design engineer by Developer and the approval of the design engineer by the Water Department,a Design Procurement Agreement will be presented to the City Council to approve the City's Participation in the design engineering cost. The Lift Station and Force Main CFAs may be presented to the City Council for approval under one or two separate Mayor&Council Communications("M&Cs") and be based on engineer's estimates at the time a sufficient design has been achieved. The Facilities will be publicly bid if required by State law,and in accordance with the City's CFA Policy. In accordance with the CFA Policy,the Developer is generally only required to provide a financial guarantee(a bond,letter of credit,or escrow agreement),for the Developer's Share of the hard costs for the Project. However, to the extent that City's Participation qualifies as an exception to the public bidding requirements under State law,Developer may be required to use a bond in the amount of both Developer's Share and City's Participation of the Project Costs. The cost of the financial guarantee for the Project may be considered part of the Project Costs and such cost to be split between the City and Developer in accordance with the Cost Sharing formula for the Project. The Developer may choose any contractors where public bidding is not required. The City's Unit Price Ordinance may be used to determine the specific amount of City Participation. City and Developer understand that the Lift Station may have to be publicly bid if the requirements of the Unit Price Ordinance cannot be met. The targeted completion date is summer 2019. 2.7. Funding. The City will process progress payments to reimburse Developer for the City Participation portion of the Project Costs. Progress payments shall be made to Developer no more frequently than monthly and shall be subject to a minimum threshold of$100,000.00 before a payment is required to be made by the City to Developer. The Water Department shall process payments as fast as reasonably possible,generally targeting no greater than 30 business days. As of the date of this MOU,the Water Department has earmarked funds for the City Participation; however, the City Council has not approved the City Participation. 2.8. Walnut Creek Sewer Per Acre Charge Payment—A sewer per acre charge for the existing 30-inch gravity sewer main that the proposed Lift Station and Force Main will connect to was established by City Ordinance No.21843 pursuant to City Code Section 35-86. The sewer per acre charge applies to properties that will use the capacity of the existing 30-inch sewer main. Due to the additional basin for this development, the sewer per acre charge must be recalculated in accordance with Section 35-86, and approved by the City Council.The Developer agrees to pay the new sewer per acre charge for the remaining proposed Ventana development,excluding the Phase 1 plat of Ventana but including the Phase 2 plat area of Ventana. The new per acre charge is not anticipated to exceed$710/acre.The City agrees to extend the Memorandum of Understanding Between the City of Fort Worth,Texas Page 3 of 4 and PB Ventana I,LLC for Permanent Sanitary Sewer Services Related to the Ventana Development in Southwest Fort Worth time of payment of the new sewer per acre charge for the Phase 2 plat to final acceptance of the Facilities by the City. 2.9. Waterline Easement. The City owns a 20'water line easement on the eastern side of the Benbrook/Fort Worth city limit line.The City intends to preserve this easement for future extension of a waterline to areas within Ventana Property and the remainder of Rolling V South located south of the 300' TESCO overhead powerline easement,if necessary. 2.10. Additional Matters. Temporary all-weather access(at a minimum a gravel road), will be used for access to the Lift Station until public roads can be reasonably extended in accordance with the Developer's development plan and such roads that serve the Lift Station shall be included as Project Costs. Potential odor concerns have been identified given the size of facility and lack of initial volume of flow. Odor controls and/or other design options will be installed/explored. Other design options may include additional buffer land around the Lift Station,the cost of which could be a Real Property Expense. SIGNED this 1 day of r --12018. CITY OF FORT WORTH PB VENTANA 1, LLC 7-1 Jesus J. Chapa E. Peter Pincoffs III Assistant City Manager Manager APPROVED AS TO FORM AND LEGALITY CITY ATTORNEY FORS. c3: 40. M&C: A � * 1295: R&a ............... _7ld P. Gonzales,AgsLL ity Sept -' OMCIAL RECORD CITY SECRETARY FT.WORTH,TX Memorandum of Understanding Between the City of Fort Worth,Texas Page 4 of 4 and PB Ventana I,LLC for Permanent Sanitary Sewer Services Related to the Ventana Development in Southwest Fort Worth Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. / C___ Chris Harder, P.E., Interim Director OFFICIAL.RECORD CITY SECRETARY FT.WORf"v TX