HomeMy WebLinkAboutContract 33927 CITY SECRETARY r ��
CONTRACT NO .
MEMORANDUM OF BUY-OUT OPTION CONTRACT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF TARR.ANT §
This Memorandum of Buy-Out Option Contract ("Memorandum") is effective as of
July 18, 2006, by and among Johnson County Special Utility District, a special utility district
created pursuant to Article XVI, Section 59, of the Texas Constitution, Chapters 49 and 65 of
the Texas Water Code (collectively, "Seller") and the City Of Fort Worth, a home-rule
municipality located in Tarrant,Denton, and Wise Counties, Texas("Purchaser').
A. Under that certain Buy-Out Option Contract dated as of July 18, 2006
("Contract'), Seller has granted Purchaser the option ("Option") to purchase certain land,
improvements, easements, account records, plans, and other associated property ("Pro a ")
related to the provision of water service to, and located within, that certain real property
development consisting of approximately 194.044 acres of land in Tarrant County, Texas, as
more particularly described on EXHIBIT "A" attached hereto ("Development"). Purchaser may
exercise the Option at any time during the period beginning on July 18, 2015 and ending on July
18, 2021. Purchaser's exercise of the Option is governed by the terms and conditions of the
Contract.
B. Seller and Purchaser are executing, acknowledging, and recording this
Memorandum to provide public notice of the existence of the Contract and of the Option that
exists in Purchaser's favor to purchase the Property in the Development under the terms and
conditions of the Contract.
C. Seller and Purchaser do not intend by this Memorandum — and nothing in this
Memorandum may be deemed—to alter, amend or otherwise affect the terms or conditions of the
Contract.
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MEMORANDUM OF BUY-OUT OPTION CONTRACT Page 1
EFFECTIVE as of the date set forth above.
SELLER
ATTEST: JOHNSON COUNTY SPECIAL UTILITY
DISTRICT
By:
Distri t Sec tary ral Terry K ey, Ge anager
Off ce M ager
PURCHASER
I
ATTEST: CIT RTH
By:
Marty Hendrix Marc A. Ott, Assi t City Manager
City Secretary
APPROVED AS TO FORM
AND LEGALITY: s_
ri tract Auth rizat'ion
9- - �
Christa pez, Assistant (Aty Attorney 1 a�.a
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, THE UNDERSIGNED AUTHORITY, on this day personally appeared
Terry Kelley, general manager of Johnson County Special Utility District, known to me to be the
person and officer whose name is subscribed to the foregoing instrument, and acknowledged to .
me that he executed the same for the purposes and consideration therein expressed, in the
capacity therein stated, and as the act and deed of said district.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 31_�_ day of�� -�
2006.
LINDA IRELAND
Notary Public Notdry Public in and for the State of Texas
NT STATE OF TEXAS M Commission expires: �-
F My Comm.Exp.04/17/2008 y p
W�
790176_1
MEMORANDUM OF BUY-OUT OPTION CONTRACT Page 2
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, THE UNDERSIGNED AUTHORITY, on this day personally appeared Marc
A. Ott, Assistant City Manager of the City of Fort Worth, known to me to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed, in the capacity therein
stated, and as the act and deed of said city.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2006.
wwitAswa.it Aa'.R�� +1.a..i
Notary Public for the State of Texas
•t ;� rx lP REs Notary's Printed Name: }�e77'i e L a li o_
6'5, 2007 My Commission Expires:
HETTt SANE
MY CUMMt '',.i iN EXPIRES
July 25,2007
790176_1
MEMORANDUM OF BUY-OUT OPTION CONTRACT Page 3
Exhibit A
Legal Description of the Development
Being a 194.044 acre tract in the J. Armendaris Survey, Abstract No. 1767,the U. Mendoza
Survey, Abstract No. 994 and the Pinckney Caldwell Survey, Abstract No. 363, Tarrant County,
Texas and being a westerly portion of that 332.896 acre tract of land described in a deed to Tlh
Realty Investments Ltd. and recorded in Volume 13229, Page 60, Deed Records, Tarrant County,
Texas. Said 194.044 acre tract is more particularly described as follows:
Beginning at a highway monument found at the northwest corner of said 332.896 acre tract, in
the east line of Floyd Hampton Road and at the southwest corner of a 11.015 acre tract described
in a deed to the State of Texas and recorded in Volume 12683,Page 110, said deed records;
Thence easterly with the northerly line of said 332.896 acre tract and the southerly line of said
11.015 acre tract the following calls:
N 45 degrees 35 minutes 31 seconds E, 70.94 feet to a highway monument found;
S 89 degrees 35 minutes 25 seconds E, 355.17 feet to a highway monument found
at the beginning of a compound curve to the left;
1,336.17 feet with the arc of the first part of said compound curve to the left to a
highway monument found. The first part of said compound curve to the left has a
radius of 5,879.58 feet, a central angle of 13 degrees 01 minute 15 seconds and a
long chord which bears N 83 degrees 53 minutes 57 seconds E, 1,333.30 feet;
262.62 feet with the arc of the second part of said compound curve to the left to a
highway monument found. The second part of said compound curve to the left
has a radius of 1,926.86 feet, a central angle of 7 degrees 48 minutes 33 seconds
and a long chord which bears N 73 degrees 29 minutes 03 seconds E, 262.42 feet;
N 78 degrees 15 minutes 13 seconds E, 59.70 feet to a point in the line dividing
the City of Crowley and the Extra Territorial Jurisdiction of the City of Fort
Worth, described in Joint Resolutions and Agreements 1230 and 1827;
Thence S 00 degrees 00 minutes 27 seconds E with the line dividing the City of Crowley and the
Extra Territorial Jurisdiction of the City of Fort Worth,4,072.16 feet to a point in the southerly
line of said 332.896 acre tract;
Thence with the southerly lines of said 332.896 acre tract the following calls:
N 89 degrees 28 minutes 47 seconds W, 379.37 feet;
S 00 degrees 25 minutes 07 seconds W, 613.53 feet to a broken up concrete
monument;
N 89 degrees 45 minutes 23 seconds W, 586.85 feet to the southeast corner of a
14.999 acre tract described in a deed to Morris Daniel Jr. and Deanna Daniel and
recorded in Volume 13679, Page 306, said deed records;
Thence with the easterly and northerly lines of said 14.999 acre tract the following calls:
N 00 degrees 22 minutes 06 seconds E, 566.53 feet;
N 89 degrees 45 minutes 23 seconds W, 1,059.73 feet;
N 38 degrees 55 minutes 42 seconds W, 108.78 feet to a point at the northwest
corner of said 14.999 acre tract, in the westerly line of said 332.896 acre tract, in
the easterly line of Floyd Hampton Road and at the beginning of a curve to the
left;
Thence with the westerly line of said 332.896 acre tract and the easterly line of Floyd Hampton
Road the following calls:
49.10 feet with the arc of said curve to the left. Said curve has a radius of 109.40
feet, a central angle of 25 degrees 42 minutes 54 seconds and a long chord which
bears N 13 degrees 39 minutes 13 seconds E, 48.69 feet;
N 00 degrees 47 minutes 42 seconds E, 808.30 feet;
N 00 degrees 37 minutes 18 seconds W, 400.00 feet;
N 00 degrees 47 minutes 42 seconds E, 2,493.26 feet to the point of beginning
and containing 194.044 acres.
rage i of
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/11/2006
DATE: Tuesday, July 11, 2006
LOG NAME: 60BRIDGES REFERENCE NO.: C-21564
SUBJECT:
Authorize Execution of Agreements with Johnson County Special Utility District and Briscoe Clark
Company, Ltd. to Provide Wholesale Water Service and Retail Wastewater Service to the Bridges
Subdivision in the City of Fort Worth's Extraterritorial Jurisdiction (ETJ)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute an agreement for the Sale of Treated Water, Sewer Service
Billing Agreement and Buy-Out Option Agreement with Johnson County Special Utility District (SUD) for
wholesale water service and billing of wastewater service to the Bridges Subdivision; and
2. Authorize the City Manager to execute a Community Facilities Agreement with Briscoe Clark Company,
Ltd. for construction of wastewater infrastructure to serve the Bridges Subdivision.
DISCUSSION:
The Bridges Subdivision contains approximately 198 acres of land located in the City's ETJ just west of the
City of Crowley. Briscoe Clark Company, Ltd. plans to develop the site into approximately 600 residential
lots. This development is adjacent to that portion of the Bridges Subdivision located within the Crowley city
limits. The agreements under consideration will only apply to that portion of the Bridges Subdivision located
in Fort Worth's ETJ.
Johnson County SUD is the authorized retail provider of treated water to The Bridges Subdivision pursuant
to a certificate of convenience and necessity (CCN) issued by the Texas Commission on Environmental
Quality. Briscoe Clark Company, Ltd. initially approached the Fort Worth Water Department (FWWD)
seeking only wastewater service to the Bridges Subdivision. The FWWD felt it would be in the City's best
interest to provide both water and wastewater service to the development. Johnson County SUD and the
Briscoe Clark Company, Ltd. agreed. Four separate agreements were developed to implement the water
and wastewater service plan for the development.
The Agreement for the Sale of Treated Water provides for the sale of treated water to the Johnson County
SUD at the rates charged to the City's municipal wholesale customers. Johnson County SUD will collect
impact fees on behalf of the City and remit to the City on a quarterly basis. It provides for infrastructure to
be designed and constructed to Fort Worth standards, installation of an 8" water meter with telemetry, limits
use of the water to inside of the Bridges Subdivision and terminates if the City elects to purchase the water
system, but no later than July 11, 2022. Johnson County SUD also agrees not to oppose Fort Worth's
application to acquire the CCN after Fort Worth's purchase of the system, so that Fort Worth can become
the retail water provider to the development.
The Sewer Service Billing Agreement provides for the Johnson County SUD to serve as agent for Fort
Worth for the billing and collection of sewer service fees. Bridges customers will pay outside City rates that
will include a cap and a minimum fee but no winter quarter average. Johnson County SUD will be allowed
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/8/2006
Page 2 of 2
to retain 10% of the sewer service fee for billing service compensation. They will also collect sewer impact
and tap fees and rebate them to Fort Worth on a quarterly basis.
The Buy-Out Option Contract provides for a buy-out option period for Fort Worth to purchase the water
system from Johnson County SUD between July 11, 2015 and Julyl 1, 2021. The purchase price for the
water system is set at the total amount of all impact fees collected and rebated to the City of Fort Worth plus
interest accrued.
The Community Facilities Agreement will be a standard community facilities agreement with the City of Fort
Worth for the installation of the wastewater system. Briscoe Clark Company, Ltd. will pay for all onsite
improvements and the installation of a customer meter station. Fort Worth will pay for over sizing associated
with the installation of an 18" sewer outfall main.
The staff feels that the negotiated agreements are a good deal for the City of Fort Worth. They provide for
the orderly growth and development for the Bridges Subdivision and future developments in the area within
the City's ETJ. Water and sewer facilities will be built to City standards. The extension of the sewer outfall
main from Crowley through the subdivision will open up areas to the west within Fort Worth's ETJ for
development. They also provide for the future transfer of water facilities and the CCN to the City at the
City's option.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Water Department and the Finance Department will be responsible
for the collection, deposit and recording of revenues under this Agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE45 493042 0601000 $0.00
PE45 493022 0701000 $0.00
Submitted for City Manager's Office 15T. Marc Ott (6122)
Originating Department Head: S. Frank Crumb (8207)
Additional Information Contact: S. Frank Crumb (8207)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/8/2006
••if.a♦rya`
CITY OF FORT WORTH , •,w•
1000 THROCKMORTON '
FT WORTH TX 76196
Submitter: CITY OF FORT WORTH
SUZANNE HENDERSON
TARRANT COUNTY CLERK
TARRANT COUNTY COURTHOUSE
100 WEST WEATHERFORD
FORT WORTH, TX 76196-0401
DO NOT DESTROY
WARNING - THIS IS PART OF THE OFFICIAL RECORD.
Filed For Registration: 09/15/2006 09:28 AM
Instrument#: D206288666
OPR 6 PGS $32.00
1111111 IIII 1111111111 IIIII 111111111111111111111111111111111
D206288666
ANY PROVISION WHICH RESTRICTS THE SALE, RENTAL OR USE
OF THE DESCRIBED REAL PROPERTY BECAUSE OF COLOR OR
RACE IS INVALID AND UNENFORCEABLE UNDER FEDERAL LAW.