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Home My WebLink AboutContract 47479-A2City Secretary Contract No. 41L41- �q — Na SECOND AMENDMENT TO AMENDED CREATION AND OPERATION AGREEMENT FOR TRADITION MUNICIPAL UTILITY DISTRICT NO.1 OF DENTON COUNTY This Second Amendment to Amended Creation and Operation Agreement for Tradition Municipal Utility District No.1 of Denton County (the "Second Amendment") is entered into by the City of Fort Worth, Texas, a home -rule municipal corporation situated in Tarrant, Denton, Johnson, Parker, and Wise Counties, Texas (the acting by and through its duly authorized Assistant City Manager, and Tradition Municipal Utility District No.1 of Denton County (the "District"), a municipal utility district created pursuant to Article XVI, Section 59, of the Texas Constitution, Chapters 49 and 54 of the Texas Water Code, and Chapter 8129, Texas Special District Local Laws Code, effective upon execution of this Second Amendment by all Parties (the "Effective Date"). RECITALS WHEREAS, the City and the District are parties to that certain Amended Creation and Operation Agreement for Tradition Municipal Utility District No. 1 of Denton County, effective January 12, 2016 (the "Operating Agreement"), City Secretary Contract No. 47479, as amended, which sets forth certain terms regarding the operation of the District; and WHEREAS, local governmental entities, including the District, have experienced dramatic increases in infrastructure costs in the preceding ten years since the approval of the Operating Agreement; and WHEREAS, the parties now desire to amend the Operating Agreement to modify certain terms and conditions of the Operating Agreement in order to increase the amount of bonds authorized for public projects as set forth in this Second Amendment. NOW THEREFORE, in consideration of the mutual promises contained herein along with other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: AGREEMENT OFFICIAL RECORD 1' CITY SECRETARY Cr IA1f%D r TX SECOND AM�IENT TO AMENDED CREATION AND OPERATION AGREEMENT FOR TRADITION MUNICIPAL UTILITY DISTRICT NO.1 OF DENTON COUNTY Page 1 of 4 Section 4.04 of the Agreement is amended in its entirety to be and read as follows: 4.04. Road Project. Notwithstanding the restrictions otherwise imposed by Section 54.016 of the Water Code (as referenced in Section 4.03 of this Agreement) and Section 8129.102 of the District Legislation, the City consents to the Road Project for the benefit of the District and has consented to the Road Project for all purposes by adoption of the Consent Resolution and Resolution No. 5925-04-2024, adopted April 9, 2024. This Agreement hereby authorizes and further consents to the District undertaking the Road Project for the benefit of the District and to the issuance by the District of Bonds for the Road Project. In consideration for the City's consent to the Road Project, the District agrees that the total amount of Bonds issued by the District for all purposes (excluding refunding Bonds) shall not exceed the greater of $98,183,379.00, or the actual cost incurred for the design, construction, and financing of any of the authorized purposes listed in Section 4.02, including all costs authorized for reimbursement under the District Legislation, Chapters 49 and 54 of the Texas Water Code, and the TCEQ Rules (the "Bond Limit Amount"). The District acknowledges that the Bond Limit Amount is sufficient to accomplish the purposes of the District and that the District has voluntarily agreed to the Bond Limit Amount in consideration for the City's consent to the Road Project. District facilities, if any, the cost of which exceeds the Bond Limit Amount will be dedicated to the District without reimbursement unless otherwise approved by the City Council. 2. All terms in this Second Amendment that are capitalized, but not defined, shall have the meanings ascribed to those term in the Agreement. 3. All other provisions of the Agreement which are not expressly amended herein shall remain in full force and effect. [SIGNATURE PAGES FOLLOW] SECOND AMENDMENT TO AMENDED CREATION AND Page 2 of 4 OPERATION AGREEMENT FOR TRADITION MUNICIPAL UTILITY DISTRICT NO.1 OF DENTON COUNTY CITY OF FORT WORTH By: C -p Name: Jesica McEachern Title: Assistant City Manager ATTEST /' 4.00aa�n�a n l� o�F oa r °!�aa By: ot- % a �►o oQ d N e/ Jannette Goodall p o °�j Title: City Secretary �V o 8= 0 o n °OOppOO° q, AXASAPPROVED AS TO FORM AND LEGAL By: sJz� 4 -- Name: Richard A. McCracken Title: Sr. Assistant City Attorney M&C: 25-0314 (4/ 22/ 25) Form 1295: N/ A OFFICIAL RECORD CM,SECRETARY `NORTH, TX I SECOND AMENDMENT TO AMENDED CREATION AND Page 3 of 4 OPERATION AGREEMENT FOR TRADITION MUNICIPAL UTILITY DISTRICT NO.1 OF DENTON COUNTY TRADITION MUNICIPAL UTILITY DISTRICT NO.1 By: V Name: Walker Bright Title: President ATTEST By: Name: Alex Pfe ferkorn Title: Secretary SECOND AMENDMENT TO AMENDED CREATION AND Page 4 of 4 OPERATION AGREEMENT FOR TRADITION MUNICIPAL UTILITY DISTRICT NO.1 OF DENTON COUNTY 6/24/25, 3:00 PM M&C Review CITY COUNCIL AGENDA Create New From This M&C Official site of the City of Fort Worth, Texas FoR H REFERENCE **M&C 25- 13TRADITION MUD 1 SERIES DATE: 6/10/2025 NO.: 0510 LOG NAME: 2025 UNLIMITED TAX UTILITY BONDS CODE: C TYPE: CONSENT PUBLIC NO NO SUBJECT: (ALL) Approve Tradition Municipal Utility District No. 1 of Denton County Proposal Seeking City Consent to Issue the District's Unlimited Tax Utility Bonds, Series 2025, in an Amount Not to Exceed $6,755,000.00 RECOMMENDATION: It is recommended that the City Council consent to the issuance of the Tradition Municipal Utility District No. 1 Unlimited Tax Utility Bonds, Series 2025, in an amount not to exceed $6,755,000.00. DISCUSSION: In compliance with the Amended Creation and Operation Agreement (the Agreement) between Tradition Municipal Utility District No. 1 of Denton County (the District) and the City, the District is requesting the City's consent for the District's proposed issuance of its Unlimited Tax Utility Bonds, Series 2025 (the Bonds) in the aggregate principal amount not to exceed $6,755,000.00. The District certifies that it is not in breach of the Agreement and is in compliance through providing notice of its intent to issue Series 2025 Utility Bonds. The District further certifies that it will comply with the bond requirements listed within the Agreement. The District's bond issue includes costs associated with the construction, engineering, surveying, and City of Fort Worth fees for the following: the District's share of construction of Winding Meadows Drive and North Side III Offsite Waterline serving certain phases of developed residential property within the District, the costs of engineering, testing, and surveying associated therewith, and fees paid to the City. Additionally, proceeds from the Bonds will be used to pay developer interest, eighteen months of capitalized interest, and certain costs of issuance of the Bonds. The financial advisor to the District has certified that the Bonds will be issued within the economic feasibility guidelines established by the Texas Commission on Environmental Quality. Staff recommends consenting to the issuance of the District's Unlimited Tax Utility Bonds, Series 2025, in an amount not to exceed $6,755,000.00 in accordance with the Agreement. FISCAL INFORPviATION/CERTIFICATION: The Director of Finance certifies that approval of this recommendation will have no material effect on City funds. TO Fund Department Account Project Program Activity Budget Reference # Amount ID I I ID I I I Year I (Chartfield 2) I FROM Fund Department Account Project Program Activity Budget Reference # Amount ID I I ID I I Year (Chartfield 2) Submitted for Citv Manager's Office by_ Reginald Zeno (8517) apps.cfwnet.org/council_packet/mc_review.asp?ID=33370&counclidate=6/10/2025 1/2 6/24/25, 3:00 PM M&C Review Oriainatina Department Head: Reginald Zeno (8517) Additional Information Contact: Anthony Rousseau (8338) ATTACHMENTS Tradition MUD 1 - Feasibilitv Certification (2025 Utiliht Bonds).Ddf (Public) apps.cfwnet.org/council_packet/mc_review.asp?ID=33370&councildate=6/10/2025 2/2