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Home My WebLink AboutContract 36199-A3City Secretary Contract No.�J� ` 1- I-�,�3 THIRD AMENDMENT TO AGREEMENT CONCERNING CREATION AND OPERATION OF MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 2 (City Secretary Contract Number 36199) This Third Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 2 of Parlcer County (this "Third Amendment") is made between the City of Fort Wor-th, Texas, a home-rule municipal coiporation situated in Tai7ant, Denton, Johnson, Parlcer, and Wise Counties, Texas (the "Citv"), acting by and though its duly authorized City Manager, and Morningstar Ranch Municipal Utility District No. 2 of Parker County (the "District"), a political subdivision of the State of Texas, operating under the provisions of Article III, Section 52, and Article XVI, Section 59, of the Texas Constitution, Chapters 49 and 54, Texas Water Code, as amended, and Chapter 8491, Texas Special District Local Laws Code, as amended, and is executed to be effective as of the latest date of the signatures below. RECITALS: The District and City have previously entered into that certain Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 2 of Parlcer County, City Secretary Contract No. 36199, effective January 29, 2008, and executed by the District effective February 22, 2011 (the "Ori in��reement"), as amended by that certain First Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility Disti•ict No. 2 of Parlcer County, City Secretary Contract No. 36199-A1, effective March 30, 2017 (the "First Amendment") and that certain Second Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 2 of Parker County, City Secretary Contract No. 36199-A2, effective December 28, 2021 (the "Second Amendment," and collectively with the Original Agreement and First Amendment, the "Creation and Operation A�reement"). Prior to the execution of the Second Amendment, on January 26, 2021, the City Council of the City approved Resolution No. 5336-01-2021 (the "Consent Resolution") consenting to the addition of approximately 350.42 acres of land to the District (the "Annexation"). A condition of the Consent, among other things, was the execution of the Second Amendment, which said condition was satisfied by the City's execution of the Second Amendment on December 28, 2021. The District, after fuliilling the requirements of the Consent Resolution, completed the Annexation on March 1, 2022. The District and City have continuously operated as though the Second Amendment has been in full force and effect fi�om December 28, 2021, until the present. The District and City have now determined that a scrivener's error exists in Section 8 of the Second Amendment, which states that the District shall complete the Annexation by January 1, 2022. Such scrivener's ei7or inadvertently and unintentionally causes the Second Amendment to terminate on Januaiy 1, 2022, Third Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipa] Utility District No. 2— Page 1 , ' � _ ° " 4 �I�� EL�tETARY G�� C'� � FT Wf]RTH T FE8 ��"2� i��_ ��5� � . X � which was not the intention of either party. The City and District therefore desire to enter into this Third Amendment in order to acicnowledge the scrivener's error, clarify the City and District's intention as to Section 8 of the Second Amendment, and to reinforce the continued validity of the Creation and Operation Agreement. AGREEMENTS: 1. City and District acicnowledge the error and her•eby agree that such date is a scrivener's error that should have read 2023. 2. City and District both acicnowledge and agree that they intended Section 8 to read January 1, 2023. 3. The Annexation occui-�ed in a timely manner in compliance with the terms of the Consent Resolution. 4. Section 8 of the Second Amendment is hereby amended in its entirety to be and read as follows: 8. Except as amended by this Amendment, the Creation and Operation Agreement remains in full force and effect. This Amendment will terminate and be of no further force or effect as of January 1, 2023, if the District does not annex the Additional Property on or before that date. 5. The Second Amendment, as amended by this Third Amendment, remains in full force and efFect, along with the terms of the Original Agreement, as amended by the First Amendment and Second Amendment. 6. This Third Amendment reflects the entire understanding between the parties and may only be amended in writing, signed by both parties. The parties agree to execute such documents and do such things as may be necessary or appropriate to facilitate the consummation of their agreements herein. [EXECUTION PAGES FOLLOW] Third Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 2— Page 2 ATTEST: � nnette Goodall -�4�°�°nn�- ity Secretary APPROVED AS TO FORM AND LEGALITY: �� ' �__. Richard A. McCracicen Assistant City Attorney M+c.'. 2S^o�3q (,2�25�25� F�,�. ��q s I N/� CITY OF FORT WORTH By: Jesica McEachern Assistant City Manager Date: �e.h `�Sk ��5 �'FFiI't� r - . ��"� .'; �: CITY �-.�F�,,, ._ ., - ..• �T �, f�, • _ Third Amendment to Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 2— Page 3 DISTRICT: MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 2 OF PARKER COUNTY � / sident, ��2l, of Directors Name: �f�%L � i��64' Date: �/ � i�Of !�`� �J✓ s� ��`��k" _ � �'u�.� ,�� E�O�p � ,�� Third Amendment to Agreement Conce�ning Creation and Operation of Morningstar Ranch Municipal Utility. �S District No. 2— Page 4 City of Fort Worth, Mayor and DATE: 02/25/25 Texas Council Communication M&C FILE NUMBER: M&C 25-0139 LOG NAME: 06AMENDMENT TO CREATION AGREEMENT - MORNINGSTAR RANCH MUD #2 SUBJECT (ETJ/Parker County) (CD 3) Authorize Execution of Third Amendment to Creation Agreement for Morningstar Ranch Municipal Utility District No. 2 to Extend the Dealine for the District to Annex Additional Property into the District's Boundaries RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the Third Amendment to the Creation Agreement for Morningstar Ranch Municipal Utility District No. 2 to extend the deadline for the District to annex additional property into the District's boundaries DISCUSSION: FG Aledo Development, LLC, a Texas limited liability company, and FWFW Holdings, Inc., a Texas corporation (collectively Owner), own and are developing approximately 1,087 acres of land in Fort Worth's extraterritorial jurisdiction in Parker County as a single-family residential development known as Morningstar Ranch. At the request of the prior owner, the City Council consented to the creation of Morningstar Ranch Municipal Utility District No. 1 originally encompassing 380.316 acres of land and Morningstar Ranch Municipal Utility District No. 2 originally encompassing 356.829 acres of land on December 4, 2007. The districts were created by action of the Texas Commission on Environmental Quality. In March 2017, 176.613 acres of land were excluded from District No. 2 and annexed by District No. 1. On January 26, 2021 the City Council approved Resolution No. 5336-01-2021 consenting to the annexation of approximately 350.42 acres of land (the Additional Property) by District No. 2. Upon annexation of the Additional Properly by District No. 2, District No. 1 encompasses approximately 556.929 acres of land and District No. 2 encompasses approximately 530.213 acres of land On May 4, 2021 (Mayor & Council Communication 21-0309), the City Council authorized the execution of a 2021 Utility Agreement and 2021 Development Agreement for Morningstar Ranch and the Second Amendment to the Creation Agreement for Morningstar Ranch Municipal Utility District No. 2. The Second Amendment to the Creation Agreement for Morningstar Ranch Municipal Utility District No. 2 provided that the amendment would terminate and be of no further force or effect as of January 2, 2022 if the District did not annex the additional property on or before that date. The District was unable to annex the additional property into the District by January 1, 2022. City staff recommends that the agreement be amended to extend the deadline for the District to annex the property into the District to January 1, 2023. This M&C will not affect the contractural timelines the City has for annexing property in the District into the City for Full purposes. The Morningstar Ranch development is located in the ETJ of Parker County and in FUTURE COUNCIL DISTRICT 3. A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Morningstar Ranch Municipal Utility District No. 2 FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the recommendation will have no material effect on City funds. Submitted for City Manager's OfFice b� Dana BurghdofF 8018 Originatinc,�Business Unit Head: D.J. Harrell 8032 Additional Information Contact: