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HomeMy WebLinkAboutContract 47168 (2)lacrist OGj 27 2015 OO � S�.GRE� R. era 2FLiita ati i . r 7c1 Y FACILITIES AGEEMENT WITH CIT��VER I ING PA TICIPAT ON Developer Information: Developer Company Name: FG Aledo Development Address, State, Zip Code: 3045 Lackland Blvd. • Phone, E-Mail: 817-717-7133, kgill@sableholdings.com Authorized Signatory/Title: Kim Gill/ General Manager Project Information: Project Name: Morning Star Off -Site Water — Westside V Project Location: FM 3325 Parker County Plat Case No.: None Plat Name: None Mapsco: 760D Council District: ETJ Adjacent to CD 3 City Project No: 02606 CFA: 2015-058 DOE: 7479 To be completed by s Received by: Date: City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 1 of 17 /Orcreig • • COMMUNITY FACILITIES AGREEMENT WITH CITY OVERSIZING PARTICIPATION THE STATE OF TEXAS COUNTY OF TARRANT City Secretary Contract No. WHEREAS, FG Aledo Development, LLC, ("Developer"), desires to make certain specific improvements as described below and on the exhibits attached hereto ( `Improvements") related to a project generally described as Morning Star Off -Site Water — Westside V Water Main (` Project') within the City or the extraterritorial jurisdiction of Fort Worth, Texas ("City' ); and WHEREAS, the City has reviewed the proposed Improvements and desires to have the Developer oversize the proposed Improvements to provide capacity for future development in the area ("Oversized Improvements"); and WHEREAS, the Developer and the City desire to enter into this Community Facilities Agreement ( CFA" or "Agreement") in the amount of $4,593.725.52 in connection with the collective Improvements for the Project; and WHEREAS, the construction costs of the Improvements, including the Oversized Improvements, in the Developer's Project are as presented by the Cost Summary Table and Exhibits hereto; and WHEREAS, The City's cost participation shall be in an amount not to exceed $2,048,766.48 ("Participation '); and WHEREAS, the City has requested the Developer to cause, and the Developer agrees to cause, the design, permitting and construction of the Project for which the City will, subject to City Council approval, reimburse the Developer for the City's portion of those costs; and WHEREAS, Walsh Ranches Limited Partnership ("Walsh") has agreed to cost participate in the Improvements to provide capacity in the Project to serve the Walsh Ranch property. Walsh's participation is an estimated $431,074.28, based on engineer's estimate and cost sharing as shown in Exhibit A-1. Walsh will provide the funds directly to the City. Upon project completion, Developer, City and Walsh shall reconcile their respective participation amounts with actual quantities constructed and accepted by the City. Walsh will provide any additional cost participation payment to the City; and City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 2 of 17 WHEREAS, Walsh reserves the right to request changes to the Project to accommodate a potential water main lowering adjacent to the Walsh Ranch development and Developer and City will use their best efforts to accommodate such request; and WHEREAS, the City Council has authorized funding for the Oversized Improvements by M&C C 27460 on September 15, 2015; NOW, THEREFORE for and in consideration of the covenants and conditions contained herein, the City and the Developer do hereby agree as follows: General Requirements A. The Policy for the Installation of Community Facilities ("Policy") dated March, 2001 approved by the City Council of the City of Fort Worth, as amended, is hereby incorporated into this Agreement as if copied herein verbatim. Developer agrees to comply with all provisions of said Policy in the performance of its duties and obligations hereunder and to cause all contractors hired by Developer to comply with the Policy in connection with the work performed by said contractors. B Developer shall provide financial security in conformance with paragraph 6, Section II, of the Policy and recognizes that there shall be no reduction in the collateral until the Project has been completed and the City has officially accepted the Improvements. Developer further acknowledges that said acceptance process requires the Developer s contractor(s) to submit a signed affidavit of bills paid and consent of Surety signed by its surety to ensure the contractor has paid any sub-contractor(s) and suppliers in full. Additionally, the contractor will provide in writing that the contractor has been paid in full by Developer for all the services provided under this contract. C. Developer agrees to cause the construction of the Improvements contemplated by this Agreement and that said construction shall be completed in a good and workmanlike manner and in accordance with all City standards and the City -approved construction plans, specifications and cost estimates provided for the Project and the exhibits attached hereto. D. The following checked exhibits describe the Improvements and are incorporated herein: Water (A) X; Sanitary Sewer (A-1) ; Paving City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 3 of 17 (B) ; Storm Drain (B-1) ; Street Lights & Signs (C) . E The Developer shall award all contracts for the construction of community facilities in accordance with Section II, paragraph 7 of the Policy and the contracts for the construction of the public infrastructure shall be administered in conformance with paragraph 8, Section II, of the Policy. Developer shall ensure its contractor(s) pays the then -current City -established wage rates. F. For all Improvements included in this Agreement for which the Developer awards construction contract(s), Developer agrees to the following: i. To employ a construction contractor who is approved by the director of the department having jurisdiction over the infrastructure to be constructed, said contractor to meet City's requirements for being prequalified, insured, licensed and bonded to do work in public ways and/or prequalified to perform water/waste water construction as the case may be. ii. To require its contractor to furnish to the City a payment and performance bond in the names of the City and the Developer for one hundred percent (100%) of the contract price of the infrastructure, and a maintenance bond in the name of the City for one hundred percent (100%) of the contract price of the infrastructure for a period of two (2) years from the date of final acceptance insuring the maintenance and repair of the constructed infrastructure during the term of the maintenance bond. All bonds to be furnished before work is commenced and to meet the requirements of Chapter 2253, Texas Government Code. iii. To require the contractor(s) it hires to perform the construction work contemplated herein to provide insurance equal to or in excess of the amounts required by the City's standard specifications and contract documents for developer -awarded infrastructure construction contracts. The City shall be named as additional insured on all insurance required by said documents and same will be evidenced on the Certificate of Insurance (ACORD or other state -approved form) supplied by the City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 4of17 contractor's insurance provider and bound in the construction contract book. iv. To require its contractor to give 48 hours advance notice of intent to • commence construction to the City's Construction Services Division so that City inspection personnel will be available; to require the contractor to allow the construction to be subject to inspection at any and all times by City inspection forces, to not install or relocate any sanitary sewer, storm drain, or water pipe unless a responsible City inspector is present and gives his consent to proceed, and to make such laboratory tests of materials being used as may be required by the City. v. To require its contractor to have fully executed contract documents submitted to the City to schedule a Pre -Construction Meeting. The submittal should occur no less than 10 working days prior to the desired date of the meeting. No construction will commence without a City -issued Notice to Proceed to the Developer's contractor. vi. To delay connections of buildings to service lines of sewer and water mains constructed under this Agreement, if any, until said sewer and water mains and service lines have been completed to the satisfaction of the Water Department. G. Developer shall provide at its expense, unless otherwise agreed to by City, all engineering drawings and documents necessary to construct the Improvements under this Agreement. H. Developer shall cause the installation or adjustment of the required utilities to serve the development or to construct the Improvements required herein. I. City shall not be responsible for payment of any costs that may be incurred by Developer in the relocation of any utilities that are or may be in conflict with any of the community facilities to be installed hereunder. City will be responsible for the costs of utility relocation necessitated by the City's participation in this Agreement. J. Developer hereby releases and agrees to indemnify, defend and hold the City harmless for any inadequacies in the preliminary plans, specifications and cost estimates supplied by the Developer for this City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 5 of 17 Agreement K. Developer agrees to provide, at its expense, all necessary rights of way and easements across property owned by Developer and required for the construction of the current and future improvements provided for by this Agreement. L The Developer further covenants and agrees to, and by these presents does hereby, fully indemnify, Jzold harmless and defend the City, its officers, agents and employees from all suits, actions or claims of any character, whether real or asserted, brought for or on account of any injuries (including death) or damages sustained by any persons or to any property, resulting from or in connection with the construction, design, performance or completion of any work to be performed by said Developer, his contractors, subcontractors, officers, agents or employees, or in consequence of any failure to properly safeguard the work, or on account of any act, intentional or otherwise, neglect or misconduct of said Developer, its contractors, sub -contractors, officers, agents or employees. M. The Developer will further require its contractors to indemnify, defend and hold harmless the City, its officers, agents and employees from and against any and all claims, suits or causes of action of any nature whatsoever, whether real or asserted, brought for or on account of any injuries or damages to persons or property, including death, resulting from or in any way connected with the construction of the infrastructure contemplated herein, whether or not such injuries, death or damages are caused. in whole or in part, by the alleged nezlizence of the City of Fort Worth, its officers, servants, or employees. Further, Developer will require its contractors to indemnify and hold harmless the City for any losses, damages, costs or expenses suffered by the City or caused as a result of said contractor's failure to complete the work and construct the improvements in a good and workmanlike manner, free from defects, in conformance with the Policy, and in accordance with all plans and specifications. N. Upon completion of all work associated with the construction of the City of Fort Worth Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date 07.30.2015 Page 6 of 17 Improvements, Developer will assign to the City a non-exclusive right to enforce the contracts entered into by the Developer with its contractor along with an assignment of all warranties given by the contractor, whether express or implied. Further, Developer agrees that all contracts with any contractor shall include provisions granting to the City the right to enforce such contracts as an express intended third party beneficiary of such contracts. O. Inspection and material testing fees are required as follows and further apportioned in the Cost Summary Table below i. Developer shall pay in cash water and wastewater inspection fees and material testing fees equal to two percent (2%) for a total of 4% of the Developer's share of the total construction cost as stated in the construction contract. ii. Developer shall pay in cash paving and storm drain inspection fees equal to four percent (4%) and material testing fees equal to two percent (2%) for a total of 6% of the Developer s share of the total construction cost as stated in the construction contract. iii. Developer shall pay in cash the total cost of streetlights or if the City is not installing the streetlights inspection fees equal to four percent (4%) of the Developer's share of the streetlight construction cost as stated in the construction contract. iv. Developer shall pay in cash the total cost of street signs necessary for Developer's portion of the Project. P. COMPLETION WITHIN 2 YEARS i. The City's obligation to participate (exclusive of front foot charges) in the cost of the Oversized Improvements shall terminate if the facilities are not completed within two (2) years• provided, however, if construction of the Improvements has started within the two year period, the Developer may request that the CFA be extended for one additional year. If the Oversized Improvements are not completed within such extension period, there will be no further obligation of the City to participate. City participation in this CFA shall be subject to the annual availability of City funds as approved by the City Council. City of Fort Worth Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 7 of 17 ii. Subject to paragraph i, above, the City shall reimburse Developer for the City's costs upon presentation of proper documentation of completion of installation of the Oversized Improvements. iii. Nothing contained herein is intended to limit the Developer's obligations under the Policy, this Agreement, its financial guarantee, its agreement with its contractor or other related agreements. iv. The City may utilize the Developer's financial guarantee submitted for this Agreement to cause the completion of the construction of the Improvements if at the end of two (2) years from the date of this Agreement the Improvements have not been completed and accepted. v. The City may utilize the Developer's financial guarantee to cause the payment of costs for construction of the Improvements before the expiration of two (2) years if the Developer breaches this Agreement, becomes insolvent or fails to pay costs of construction and the financial guarantee is not a Completion Agreement. If the financial guarantee is a Completion Agreement and the Developer's contractors and/or suppliers are not paid for the costs of supplies and/or construction, the contractors and/or suppliers may put a hen upon the property which is the subject of the Completion Agreement. vi. If the City fails to utilize the Developer's financial guarantee in accordance with subsections (iv) and (v) above, Walsh shall be entitled to a refund of any balance remaining on its financial participation, subject to costs paid for actual work completed and attributable to the capacity improvements to serve Walsh, if any. Q. Walsh agrees to submit its estimated financial participation to the City in the form of cash or check concurrent with its execution of this Agreement. Should any additional funds be owed after the reconciliation process described in the recitals, Walsh agrees to remit said funds to the City within 7 business days of receiving notice from the City. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 8 of 17 COST SUMMARY TABLE Developer's Cost City's Cost A. Water and Sewer Construction 1. Water 2. Sewer Water Contingency (25%) Water Construction Cost Sub -Total B. TPW Construction 1. Paving 2. Storm Drain 3. Street Lights TPW Construction Cost Sub -Total Total Construction Cost Construction Fees: C. Water/Sewer Inspection Fee (2%) D. Water/Sewer Material Testing Fee (2%) Water Construction Fees Sub -Total E. TPW Inspection Fee F. TPW Material Testing Fee G. Street Light Inspection Fee H. Street Signs Installation Cost I. Civil/Geotechnical Engineering & Survey (20%) TPW Construction Fees Subtotal Total Construction Fees TOTAL PROJECT COST City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 1,626,057.50 406,514.38 2,032,571.88 2,032,571.88 $ 1,575,981.90 $ - $ 393,995.48 $ 1,969,977.38 $ $ $ $ $ 1,969,977.38 40,651.44 $ 39,399.55 40,651.44 $ 39,399.55 81,302.88 $ 78,799.10 $ $ $ $ $ $ 81,302.88 $ 78,799.10 Walsh's Cost Total Cost $ 331,595.60 $ 3,533,635.00 $ $ $ 82,898.90 $ 883,408.75 $ 414,494.50 $ 4,417,043.75 $ - $ $ $ $ $ $ $ $ 414,494.50 $ 4,417,043.75 $ 8,289.89 $ 88,340.88 $ 8,289.89 $ 88,340.88 $ 16,579.78 $ 176,681.75 $ $ $ - $ $ $ $ $ $ $ $ $ $ 16,579.78 $ 176,681.75 $ 2,113,874.76 $ 2,048,776.48 $ 431,074.28 $ 4,593,725.50 Page 9 of 17 The costs stated herein may be based upon construction estimates rather than actual costs. The City's portion of inspection and material testing fees are directly allocated to the City's accounts for charges and does not reimburse the Water Inspection and Material Testing Fees to the Developer. The City's participation estimate shall be limited to the unit prices contained in City of Fort Worth Ordinance No 19192-06-2010, as amended, ("Unit Price Ordinance") or as determined by public competitive bid. The City's cost participation (excluding inspection and material testing fees) is not a lump sum amount and may be less than stated above depending upon actual quantities as shown on the Notice of Final Completion package ( Green sheet') and based on unit prices from the construction contract documents In no event shall the City pay more per unit than as determined pursuant to the Unit Price Ordinance or public competitive bid. (SIGNATURE PAGE AND EXHIBITS TO FOLLOW) City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 10 of 17 IN TESTIMONY WHEREOF, the City of Fort Worth has caused this instrument to be executed in quadruplicate in its name and on its behalf by its Assistant City Manager, attested by its City Secretary, with the corporate seal of the City affixed, and said Developer has executed this instrument in quadruplicate, effective as of the date subscribed by the City's designated City Manager. Approved by City Manager's Office: Jesus J. Chapa Assistant City Manager Date: jor-?gi69fte /5 Recommended By: Water Department 1-\ Wendy Chi() abulal, EMBA, P.E Development Engineering Manager a/ J Jn Carman, Director 4vater Department Approved as to Form. & Legality: Douglas W. Black Assistant City Attorney ��2 M&CNo.: ���� Date: I - Developer: FG Aledo Development ,74/ i S Name: Kim Gill Title: General Manager Date: Transportation & Public Works c �-- W Douglas Doug Wiersig, P.E Director At1 EST. I Mary J. K City Secretary City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 11 of 17 OFFICIAL RECORD CITY SECRETARY Ft WORTH, TX Cost Participating Party: Walsh Ranches Limited Partnership (execution hereof obligates the signatory to pay its share of the costs described in Exhibit A-1 and any additional funds owed after the reconciliation process, only, , and does not obligate the signatory to the other terms of this CFA) Walsh Ranches Limited Partnership, a Texas limited partnership By: Walsh North Star Company, a Texas corporation, its General Partner Name: Malcolm Louden Title: President City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 12 of 17 Check items associated with the project being undertaken; the checked items must be included as Attachments to this Agreement Included rs ■ Attachment Attachment 1 Location Map Exhibit A: Water Improvements Water t Exhibit A-1: Cost Participation Table 4 tmAitiet ECU M irrt Exhibit B: Sewer Improvements Sewer Estimate Exhibit C: Paving Improvements Paving Estimate Exhibit D: Storm Drain Improvements Storm Drain Estimate Exhibit E: Street Lights and Signs Improvements Street Lights and Signs Estimate City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 13 of 17 ATTACHMENT "1" Changes to Standard Agreement Community Facilities Agreement City Project No. 02606 Paragraph O. i. is hereby revised to read as follows: i. Developer shall pay in cash water and wastewater inspection fees and material testing fees equal to two percent (2%) for a total of 4% of the Developer's share of the total construction cost as stated in the construction contract. Upon project completion and as a condition of releasing the Financial Guarantee, the Developer shall pay in cash any difference between the 4% share of the total construction cost and the actual total inspection and material testing costs. City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 14 of 17 110,111-11-ii t di/ 117 i741Hipit, Noilvooi J- - 7:401V 1 MATCH LINE - SHT 1 OF 2 SCALE: 1"= 400' 44•- /4/1- FRST/1TFlfiG ykI ENO 20 CITY PARTICIPATION OVER 16" 12", 16" 24" AND 36" WATER LINES, FIRE HYDRANTS, GATE VALVES AND ASSOCIATED APPURTENANCES • PROP 36"W .41411 INTERSTATE HIGHWAY NO. 20 -00 • C. C Lk. I- l SCALE: 1 "= 400' PROP 36"W EXHIBIT "A" D.O.E. NO. 7479 OFF SITE WATER IMPROVEMENTS WATER NO. P265-600140260683 CITY PROJECT NO. 02606 "MORNINGSTAR DEVELOPMENT-WS5" x-23178 WELCH ENGINEERING, I NC. CONSULTING ENG/VEERS SHT 2 OF 2 411 A X0O 1—ID0 • c00Z0 N Z CO • O+ O 0) N O O OOi 0 O rn 0 rn co 4- 1.1 11 Hid FARMER ROAD - FM 3325 0 r 0 FARMER ROAD - FM 3325 INN a1.6“ 01 O N 0 r P1 O Exhibit A-1: Cost Participation Table Cost Estimate for Morning Star Off Site Water- (City/Walsh Ranch pays for 16"/36" & 16"/24" Waterlines) Item Description Qty Unit Engineers Estimate Total Construction Morningstar Cost Cost City Walsh Ranch Cost Cost Comments 1 12" Water Pipe 10 LF $ 48 $ 480 1 $ 480 $ - $ 2 16" Water pipe 1960 LF $ 65 $ 127,400 $ 127,400 $ - $ - 3 24" Water pipe 5080 LF $ 150 $ 762,000 $ 330,200 $ 408,720 $ 23,080 Cost based on percentage for 24" water line. 4 36" Water pipe 3630 LF $ 200 $ 726,000 $ 235,950 $ 387,639 $ 102,411 Cost based on percentages for 36" water line. 5 16" Water Carrier Pipe 110 LF $ 200 $ 22,000 $ 22,000 $ - $ 6 36" Water Carrier Pipe 525 LF $ 380 $ 199,500 $ 105,000 $ 69,930 $ 24,570 Cost based on 74/26 percentage for 36" water line. 7 30" Casing by other 110 LF $ 675 $ 74,250 $ 74,250 $ - $ than Open cut 8 54" Casing by other 525 LF $ 1,500 $ 787,500 $ 354,375 $ 320,513 $ 112,613 Cost based on 74/26 than Open cut percentage for 36" water line. 9 Concrete Encasement 80 CY $ 150 $ 12,000 $ 6,000 $ 5,460 $ 540 Cost based on %'s for 24" for Utility Pipes water line. Bulk is located on 24" section. 10 12" Gate Valve 11 16" Gate Valve w/Vault 1 EA $ 2,500 $ 2,500 $ 2,500 $ 3 EA $ 14,000 $ 42,000 $ 42,000 $ City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 15 of 17 12 24" Gate Valve w/Vault 13 36" Butterfly Valve w/Vault 14 Air Valve Assembly-2" Valve 15 Air Valve Assembly-3" Valve 16 Standard Blow -Off Assembly-6" Valve 17 Standard Blow -Off Assembly-8" Valve 18 Ductile Iron Water Fittings w/Restraint and Blocking (< 16") 19 Ductile Iron Water Fittings w/Restraint and Blocking (>16") 6 EA $ 48,000 $ 3 EA $ 65,000 $ 1 EA $ 7,800 $ 6 EA $ 12,000 $ 1 EA $ 5,000 $ 5 EA $ 6,900 $ 2 TN $ 6,900 $ 8 TN $ 6,900 $ 20 Connection to existing 1 EA $ 3,800 $ 16" water main 21 Connection to existing 1 EA $ 7,500 $ 36" water main 22 Trench Safety 23 SWPPP > 1 acre 24 Remove and Repair Existing Fence 11315 LF $ 288,000 $ 195,000 $ 7,800 $ 72,000 $ 5,000 $ 34,500 $ 13,800 $ 55,200 $ 3,800 $ 7,500 $ 1 $ 11,315 $ 1 LS $ 25,000 $ 200 LF $ 6 $ City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 25,000 $ 1,200 $ Page 16 of 17 84,000 $ 42,000 $ 7,800 $ 46,800 $ 5,000 $ 25,000 $ 13,800 $ 27,600 $ 3,800 $ 3,800 $ 5,658 $ 25,000 $ 1,200 $ 188,700 $ 117,300 $ - $ 21,840 $ - $ 8,322 $ - $ 22,632 $ 2,738 $ 4,639 $ 15,300 Cost based on percentage for 24" water line. 35,700 Cost based on percentages for 36" water line. 3,360 Cost based on percentages for 24" & 36" water lines. 1,178 Cost based on percentages for 24" & 36" water lines. 4,968 Cost based on higher percentage for 36" water line (82%/18%). Need to revise Unit Cost once bids come in. 962 Cost based on 74/26 percentage for 36" water line. 1,018 Cost based on percentage for 24" water line. 25 Replace and Re- 1389 SF $ 10 $ 13,890 $ 6,945 $ 5,139 $ 1,806 Cost based on 74/26 establish 2" Gravel percentage for 36" water Road line. 26 Traffic Control 4 MO $ 6,000 $ 24,000 $ 24,000 $ - $ 27 Utility Markers 1 LS $ 7,000 $ 7,000 $ 3,500 $ 1,750 $ 1,750 28 Cathodic Protection 1 LS $ 13,000 $ 13,000 $ - $ 10,660 $ 2,340 Cost based on higher percentage for 36" water line (82%/18%). 29 Steel Fittings (Alternative) 0 LS $ 12,000 $ $ $ $ 30 C303 Fittings (Alternative) 0 LS $ 12,000 $ $ $ $ Total Cost $ 3, 533, 635.00 $ 1, 626, 057.50 $ 1, 575, 981.90 $ 331, 595.60 City of Fort Worth, Texas Standard Community Facilities Agreement with City Oversizing Participation CFA Official Release Date: 07.30.2015 Page 17 of 17 M&C Review Page 1 of 3 Official site of the City of Fort Worth, Texas Fo RT WORT!! COUNCIL ACTION: Approved on 9/15/2015 - Resolution No. 4514-09-2015 & Ordinance No. 21888-09-2015 DATE9/15/2015 REFERENCE C-27460 LOG NAME' NO.: CODE SUBJECT: C TYPE NON- PUBLIC CONSENT HEARING: 06MORNINGSTAR OFFSITE WATER IMPROVEMENTS WESTSIDE 5 NO Authorize Execution of a Community Facilities Agreement with FG Aledo Development LLC., and Walsh Ranches Limited Partnership in the Amount of $4,593,726.52 with City Participation in the Amount of $2,048,776.48 for the Oversizing and Construction of the Westside V Water Main to Serve the Morningstar Development, Walsh Ranch and Surrounding Areas Located East of FM 3325 in Fort Worth's Extraterritorial Jurisdiction and Adopt Reimbursement Resolution and Adopt Appropriation Ordinance (ETJ ADJACENT to COUNCIL DISTRICT 3) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the acceptance of funds in the amount of $431,074.28 from Walsh Ranches Limited Partnership for oversizing the water capacity in the Westside V 24-inch/30-inch/36-inch water main to serve Walsh Ranch; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water Capital Projects Funds in the amount of $431,074.28; 3. Authorize the execution of a Community Facilities Agreement with FG Aledo Development LLC., in the amount of $4,593,725.52, which includes City participation in the amount of $2,048,776.48 and Walsh Ranches Limited Partnership financial participation in the amount of $431,075.?8 for the installation of a 24-inch/30-inch/36-inch water main to serve the Morningstar Development, Walsh Ranch and to accommodate future growth in the surrounding areas located East of FM 3325; and 4. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the cost of oversizing the Westside V 24-inch/30-inch/36-inch water main to serve Walsh Ranch and construction of a 24-inch/36-inch water main to serve Morningstar and surrounding areas located East of FM 3325 in Fort Worth's Extraterritorial Jurisdiction. DISCUSSION: • Morningstar, a development located in Fort Worth's Extraterritorial Jurisdiction (ETJ), is located within the Municipal Utility Districts No. 1 and No 2 of Parker County (Districts), which were established on December 4, 2007 per M&C C-22562. As part of their off -site water infrastructure, Morningstar needs only a 16 inch Westside V water main to serve its site. Walsh Ranches Limited Partnership agreed to cost participate in the estimated amount of $431,074.28 in this proposed off -site water main for the water capacity needed to serve the Walsh Ranch Development, which is adjacent to Morningstar. The City of Fort Worth is cost participating in the oversizing of the off -site Westside V 24-inch/30-inch/36-inch water main to serve anticipated future growth in the surrounding area. The City of Fort Worth's cost participation in the construction of said water main is estimated in the amount of $2,048,776.48. The estimated construction cost for this water main is subject to construction inspection and material testing fees. FG Aledo Development, LLC., agrees to pay for additional inspection fees that would be above the http://apps.cfwnet.org/council_packet/mc review.asp?ID=21426&councildate=9/15/2015 10/01/2015 M&C Review Page 2 of 3 standard 2 percent if the City deems the need to require additional inspections. The summary of costs associated with Morningstar, Walsh Ranches and the City of Fort Worth is as follows: A. Water Construction 1. Water With 25% Contingency B. Construction Fees: 1. Inspection (2%) 2. Material Testing Fees (2%) Construction Fees Sub -Total Total Water Project Cost Morningstar Cost City Cost $1,626,057.50 $1,575,981.90 $2,032,571.88 $1,969,977.38 $40,651.44 I $39,399.55 $40,651.44 $39,399.55 $81,302.88 $2,113,874.76 $78,799.10 $2,048,776.48 Walsh Ranches Cost Total Cost $331,595.60 $3,853,635.00 $414,494.50 $41417,043.76 $8,289.89 $8,289.89 $16,579.78 $431,074.28 $88,340.88 888,340.88 $176,681.76 $4,593,725.52 The costs stated above are based on an engineer's estimate. This project will be publicly bid. The reimbursement of the participation (excluding inspection and material testing fees) is not a lump sum amount and may be less than stated above depending upon actual quantities from the Notice of Final Completion package (green sheet). 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 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 Funs} 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 Direct Purchase Note 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. In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates presenting revenue -supported debt issuances to the City Council for consideration within the next three years. The Financial Management Services Department is currently working win all departments to ensure that multi -year Capital Improvements Plans are in place. Newly developed and already existing plans, such as the Water Department's current multi -year Capital: Improvement Plan, will be presented to City Council for review and adoption If the City Council -adopted plan does not include issuance of debt for this specific project, the project will be funded with other financing sources. If the Council -adopted plan calls for debt issuance, that 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 other 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 This project is located in Fort Worth's Extraterritorial Jurisdiction (ETJ ADJACENT to QQUNCIL DISTRICT 3), Mapsco 710U 710V, 710Y, 710Z, 711S, 711W, 760C, 760D and 761A, http://apps.cfwnet.org/council_packet/mc_review.asp?ID=21426&councildate=9/15/2015 10/01/2015 M&C Review Page 3 of 3 FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available as directed by M&C G- 18375 in the 2017 Water and Sewer Revenue Bonds Capital Project Fund for transfer from unspecified funding to the Westside V 24-inch/30-inch/36-inch water main project as depicted in the following table: Fund 2017 Water and Sewer Revenue Bonds Capital Project Fund After appropriation of the amount of $2 048,776.48 to the project, an amount of $47,4S9,817.98 in available revenue will remain in the 2017 Water and Sewer Revenue Bonds Capital Project Fund. Projected Expenditures Balance Available Appropriation Amount $49,508,594.46 TO Fund/Account/Centers 2) P265 488100 2) P265 488500 2)P265 488100 2) P265 539140 2) P265 531200 2) P265 531350 600140260683 600140260684 600140260685 600140260683 600140260684 600140260685 $414.494.50 $8.289.89 $8.289.89 $414.494.50 $8.289.89 $8.289.89 Submitted for Citv Manager's Office bv: Originating Department Head: Additional Information Contact $2,048,776.48 $47,440,817.98 FROM Fund/Account/Centers P266 539140 600140260683 P266 531200 600140260684 P266 531350 600140260685 P265 531200 600140260684 P265 531350 600140260685 P265 541200 600140260683 Jesus J. Chapa (5804) Fernando Costa (6122) John Carman (8246) Randle Harwood (6101) Wendy Chi-Babulal (8242) Julie Westerman (2677) $1.969.977.38 $39.399.55 $39.399.55 $8,289.89 $8.289.89 $414,494.50 ATTACHMENTS 06MORNINGSTAR OFFSITE WATER IMPROVEMENTS - WESTSIDE 5 P265 A015 (Rev8.28.15).docx MORNINGSTAR WATER - REIMB RESOLUTION(Rev8.28.15).doc Morningstar Water Location Map.pdf http://apps.cfwnet.org/council packet/mc review.asp7ID=21426&councildate=9/15/2015 10/01/2015