HomeMy WebLinkAboutContract 30509 AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN THE CITY OF FORT WORTH AND
THE UNITED STATES POSTAL SERVICE
STATE OF TEXAS §
CITY SECRETARY CONTRACT NO.303�q
COUNTY OF TARRANT §
WHEREAS, on or about October 22, 2003 the City of Fort Worth("City") and United
States Postal Service("USPS")made and entered into a Memorandum of Understanding, same
being City Secretary Contract No. 229195 (the "Contract");
WHEREAS, on or about May 12, 2004 the City and USPS made and entered into an
Amendment to the Memorandum of Understanding, same being City Secretary Contract No.
29958 (the "First Amendment");
WHEREAS,the Contract as amended involves the development the Fort Worth Federal
Center("Federal Center") as a site to which City could relocate its Harley Street and Cherry
Street Maintenance facilities;
WHEREAS,the Contract as amended provides that the USPS will prepare a schematic
design and maximum guaranteed price for the construction of a facility to be located at the
Federal Center that would be acceptable to City for the relocation of the Harley Street and
Cherry Street Maintenance Facilities;
WHEREAS, City has requested that the USPS's developer, Conch Development L.L.C.,
proceed with the design of new facility upon execution of the Master Agreement in order to
accommodate the City's schedule for the project;
WHEREAS,the funding for the additional design will not be available until such time as
the fmancing for the project is in place;
WHEREAS,the USPS's developer, Concho Development L.L.C., in order to
accommodate the desires of the City has secured interim funding for the additional costs of
enhanced design work;
NOW, THEREVORE,the City acting herein by and through its duly authorized
representatives and the USPS acting herein by and through its duly authorized developer, enter
into the following agreement that amends the Contract:
Paragraph 3 of the Contract is amended to be and read as follows:
The parties acknowledge that,prior to the execution of the Master Agreement,the
Developer will incur certain costs related to the design of the Project, legal, and
administrative expenses and other necessary and proper expenses. Both pantie
acknowledge that either party may terminate this MOU prior to the exc qa , ;thj�l`'U1
CITY
n ' �-Cnj
Master Agreement. If terminated by the City without cause,the City agrees to reimburse
the USPS, for its account and for the account of the Developer, an amount not to exceed
$90,000, and upon such payment,the USPS shall release or cause to be released to the
City, and the City will become the owner of all plans, specifications, design documents
and all other documents, relating to the Project Site or the Project. The parties also
acknowledge that, subsequent to the execution of the Master Agreement,the Developer
will incur additional costs related to the design of the Project, legal, and administrative
expenses and other necessary and proper expenses. Both parties acknowledge that should
the City be unable to close the financing for the project within 120 days from the date of
the execution of the Master agreement, either party may terminate this MOU and the City
agrees that it will reimburse the USPS,for its account and for the account of the
Developer, an additional amount not to exceed$500,000 for design, legal, and
administrative expenses incurred as of the date the City gives notice that it desires to
terminate this MOU, and upon such payment,the USPS shall release or cause to be
released to the City, and the City will become the owner of all plans, specifications,
design documents and all other documents relating to the Project Site or the Project.
Should USPS terminate without cause its obligations under this MOU,USPS agrees to
reimburse the City an amount not to exceed$10,000 for out of pocket expenses incurred
by the City for its efforts pursuant to this MOU. The USPS's developer, Concho
Development L.L.C. is expressly authorized to make a collateral assignment of this
agreement to secure the funding for the enhanced design herein described.
All other provisions of the contract,which are not expressly amended herein, shall remain in full
force and effect..
EXECUTED on this the ` day of September 2004,in Fort Worth, Tarrant County,
Texas
APPROVAL RECOMMENDED: APPROVED:
B
o e, arc
Dire apartment of Assi tant Ci anager
Tran rtation and Public Works
ATTEST: CONCHO DEVEL NT L.L.C.
City Secretary Lee D. Coa 1, Manag r
APROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
contract Authorization
Date
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved As Amended on 7/27/2004 - Ordinance No. 16052 and 16053
DATE: Tuesday, July 27, 2004
LOG NAME: 20MOU REFERENCE NO.: C-20171
SUBJECT:
Appropriation Ordinance . and Amendment to the Memorandum of Understanding with Concho
Development LLC to Authorize Architectural/Engineering Design Work on the Federal Depot Service
Center Project
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$590,000 in the Capital Projects Reserve Fund from available funds, contingent upon a failure to achieve
either the transfer of title of the property at the Federal Depot site to the Local Government Corporation
(LGC) from the USPS developer-agent (Concho Development, L.L.C.) or the issuance of bonds to finance
the Federal Depot Service Center project; and
2. Authorize the transfer of $590,000 from the Capital Projects Reserve Fund to the Specially Funded
Capital Projects Fund contingent upon a failure to achieve either the transfer of title of property or the
issuance of bonds; and
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$590,000 in the Specially Funded Capital Projects Fund from available funds, contingent upon a failure to
achieve either the transfer of title of property or the issuance of bonds; and
4. Authorize the City Manager to execute an amendment to the Memorandum of Understanding (MOU)
with Concho Development LLC, contingent upon receiving an acceptable letter of agreement from the
General Services Administration related to any unexpected site conditions at the Federal Depot site.
DISCUSSION:.
M&C C-19766 (Sept 23, 2003), authorized the execution of an MOU with the USPS to cause a $70,000
schematic design effort, and the development of a firm price quote to relocate the Harley Service Center to
the Federal Depot site. M&C C-20026 (April 13, 2004) authorized the amendment to the MOU for an
additional $20,000 of schematic design work to allow the relocation of the Downtown Service Center to be
included in the project at a total estimated project cost of $21,100,000 to $21,400,000. As reported to
Council via Informal Report 8603 (June 02, 2004) staff has been negotiating the terms of a $21,400,000
agreement between the Local Government Corporation created for this project and the USPS developer-
agent (Concho Development, LLC).
To protect the interests of the City and the LGC, the agreement document states that the deal is ultimately
contingent upon both the transfer of title to the property to the LGC and the sale or issuance of the bonds
needed to finance the project. It will take 45 to 60 days to close on the property and complete the issuance
of bonds.
Logname: 20MOU Page 1 of 2
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To ensure that the construction contractor and design consultants will honor the price quotes used to set
the project cost it is necessary to begin and complete all geotoohOicm| and civil engineering design and
approximately 3OY6ofthe architectural and mechanical/engineering/plumbing design prior to closing on the
property and the issuance Pfbonds. The cost for this design work ia $5OO'OOO.
Provided that the transfer of title to the property and the issuance of bonds takes place as planned, then the
design costs addressed in this K8&C, as well as all other project coats, will be financed via lease-revenue
bonds issued by the [GC. The LGC will make debt service payments from the proceeds of the lease
between the City and the LG[}. If property transfer or bond issuance fails for some reason, the City will pay
theU8PS $bOO'OOO from the Capital Projects ReserVe Fund for all the design work addressed by this K8&C'
as well as $90.000 for the schematic design work already accomplished under the K8[)U as currently
amended. In. this event, the product ofthe design effort will become the property of the City.
The original K8(jU and the first amendment were between the City and the U8PG. Since that time, the
UE;PG' Lee O. Cornell and David F. Godfrey have formed the limited liability corporation, CoOcho
OaVo|op[nent. LLC' to perform the xvork..
FISCAL INFORIVIATION/ClERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordiDanoo, funds will be available in the Specially Funded Capital Projects Fund
contingent upon a failure to achieve either transfer of title of property or the issuance of bonds. The cash
balance of the Capital Projects Reserve Fund after this transfer will be $ 1.903'062. The fiscal year end
fund balance ot this time io projected tobe $ $1.740'822. .
TO Fund/Account/Centers FROM Fund/Account/Centers
(1)GC10 488332 013010001000 $580,000.0 $590,000.00
(1)GC10 538070 013010001000 X590,000j00 L4)GC35 531200 020020004000 $590,000.00
(2&3)GC35 472010 020020004000 $590,000.00
(3)GC35 531200 020020004000 $590,000.00
Submifted for City Manager's Office by: -------^
Marc Oft /O47Q\
Originating Department Head: Robert Goode (7801)
Additional Information Contact: Greg Simmons (7862)
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