Loading...
HomeMy WebLinkAboutContract 63847CSC No. 63847 MEMORANDUM OF UNDERSTANDING Tarrant Regional Water District and City of Fort Worth Central City Flood Control and Panther island Redevelopment Projects This Memorandum of Understanding ("MOU") is effective, as of the date of final execution, ("Effective Date") by and between the TARRANT REGIONAL WATER DISTRICT ("TRWD"), a water control and improvement district a conservation and reclamation district, and political subdivision of the State of Texas, created and functioning under Article 16, Section 59, of the Texas Constitution and the general laws of the State of Texas, including Chapters 49, 50 and 51, Texas Water Code, and Chapter 268, Acts of the 55°i Texas Legislature, Regular Session, 1957, as amended, and the CITY OF FORT WORTH ("City"), a Texas home rule municipal corporation, each individually referred to as a "party" and collectively referred to as the "parties." WHEREAS, the Central City Flood Control Project addresses the City of Fort Worth's flood risks that are result of explosive population growth with the City having tripled in size since the current levee system was constructed in the 1960s; and WHEREAS, the Panther island redevelopment project is a once -in -a -lifetime placemaking opportunity for the City of Fort Worth and the region, providing a road map for a market responsive and well -planned urban waterfront district, and fostering sustainable development in the City's core; and WHEREAS, the Central City Flood Control Project and the Panther island redevelopment project are separate but related, long-term initiatives that have been undertaken in partnership by the City and TRWD, along with federal, state and local partners; and WHEREAS, the Central City Flood Control Project's design was chosen as the community's preferred alternative at the conclusion of a significant public process. The selection was due to the many and varied community benefits it will provide at completion, including: ■ Flood protection for 2,400 acres of developed and developable areas along the Clear Fork and West Fork of the Trinity River. ■ The creation of more than 5 miles of publicly accessible waterfront. • A regional amenity in the form of 1.5 miles of upper and lower -level waterfront promenade, direct access to levee trails, integral parks, and boat launches. ■ The restoration of more than 250 acres of ecosystem and riparian habitat, including the planting of tens of thousands of trees within the project boundaries. ■ The remediation of more than 150 acres of environmental contamination. • The opportunity for a vibrant and sustainable forth -based zoning district on roughly 400 acres of underutilized public and private land in the City's core, the scale and location of which has the potential to capture and fuel the City's long-term population and employment growth. • The Panther Island for» -based district is projected to generate $1B in additional ad valorem tax revenue to the City and public partners during MOU - Central City Flood Control and Panther island Redevelopment Projects Page 1 of 10 the term of the Trinity River Tax increment Financing District (TiF) No. 9. • The Panther island form -based district is being designed and positioned to be a regional and even national destination, attracting the type of activity, density, and employment opportunity that can positively impact the quality of life throughout the city and county. WHEREAS, the Central City Flood Control Project and Panther Island Redevelopment Projects have been conceived of, adopted [via Panther Island Strategic Vision 2.0 (2024), master plans, and codes], funded, managed, and executed by TRWD, the City, and U.S. Army Corps of Engineers and Texas Department of Transportation for nearly 20 years; and WHEREAS, due to the long-term and complex nature of the program, in recognition of established commitments and significant public investment, and to realize the mutual benefits of program completion, it is the intent of the City and TRWD to adhere to various agreements that have been established over the course of the project regarding the parties' cooperation in program delivery; and WHEREAS, some of the prior agreements are in writing and executed, while others are being memorialized for the first time in this agreement; and WHEREAS, this document is intended to memorialize and summarize those agreements that are necessary to facilitate continued cooperation and partnership. NOW, THEREFORE, in consideration of the mutual benefits and obligations set forth herein, the receipt and sufficiency of which are hereby expressly acknowledged, the Parties agree as follows: 1. Reimbursement process for City expenses under the inter Local Agreement (iLA) (City Secretary's Office No. 43425, as amended) between City and TRWD related to the Central City Flood Control Project: o General: ■ Project costs are defined in the executed ILA and its Amendment No, 1, and as further referenced in the Project and Financing Plan for TiF No. 9 (as amended), which tie to project components identified in the Final Supplemental Environmental Impact Statement (FSEiS) and generally include public works and public improvements of the TIF District. • Costs included in the City's original $26.6M contribution to the program are ineligible for reimbursement. ■ Each contract shall have a reimbursement letter signed at the staff level in advance of contract execution that stipulates eligible project components (Central City Flood Control/Non-Central City Flood Control), project schedule, contract amount, budgeted amount, reimbursement timing, and other standard project information. MOU - Central City Flood Control and Panther island Redevelopment Projects Page 2 of 10 • The purpose of the letter is to memorialize an inter -agency understanding of eligible costs in advance of contract execution; and • To facilitate cash flow planning on the part of TRWD; and • To determine if the contract is within the available local project budget and would be eligible for reimbursement. • It is understood by both parties that the letter is not intended to be a legal agreement or supersede the ILA or its Amendment No. 1. ■ Change orders and other contract amendments that affect reimbursement amounts require a separate reimbursement letter to achieve the same purposes as the original letter. ■ The parties agreed that, beginning in 2023, a single annual reimbursement would be processed for City expenses incurred on eligible contracts, rather than at project completion. o Timing: ■ A consolidated City reimbursement packet shall be submitted to TRWD by August l of each year for payment by TRWD to City before Fiscal Year close (September 30) of that same year. • Late requests will not be eligible for reimbursement until the next cycle. o Required documentation: ■ A summary workbook that includes all projects and corresponding invoices associated with the overall reimbursement request. ■ A signed reimbursement letter(s) between City and TRWD for each included contract and associated amendments. ■ Copy of each included contract, including change orders and amendments, and associated Mayor and Council Communications M&C(s). ■ Proof of Payment for each invoice provided. ■ If a contract is complete and final reimbursement is sought, additional required documentation includes: • Final as-builts and/or record drawings, according to standard City practice. • Summary spreadsheet that includes all invoices for all cost associated with the contract [to be used for USACE Lands, Easements, Rights of Ways, Relocations and Disposals (LERRDs) credit submittal]. • Summary spreadsheet that includes all invoices associated with the amount of reimbursement request. • City Green sheet documenting completion of the work by the contractor and acceptance by City. 2. Budget considerations: o The TRWD 2018 bond program provided $250M in debt authorization for the Central City Flood Control Project. Some portions of the projects originally intended to be funded with bond proceeds have instead been cash funded by TRWD, as the partners MUU - Central City Flood Control and Panther Island Redevelopment Projects Page 3 of 10 anticipated extension of the term of Tax Increment Reinvestment Zone Number Nine (TiF 9). That cash funding, in turn, has led to bonding capacity in excess of the current local budget. ■ As may be necessary, the additional bonding capacity will be allocated to the local cash match requirement for federal funding to implement the Central City Flood Control Project. o The local project budget includes a contingency line item. Those contingency funds are also expected to be required for the local cash match requirement for implementation of the Central City Flood Control Project. o Beyond the available local budget, each party will be responsible for funding their shortfall for Project Costs (utility relocations, cash match, etc.). ■ These costs will be reimbursed by the TIF after its prior obligations are satisfied, should sufficient revenues be available. o in accordance with Section 3.4 of the Project Cost Financing Agreement, the priority order of TiF payments is listed below. Reimbursements for funding shortfalls beyond the local budgets would likely require modification to the current TIF finding limitation. ■ Annual payment to TRWD for Loan Balance including all Advances and Debt Service, will be applied at TRWD's discretion, in the following order: • NCTCOG for bridge loan ($350k over 10 years starting in 2023) • Bond debt (up to $250M plus —$250M in interest) o TRWD's project expenditures (e.g. land acquisition, environmental, demolition) o Payments through TRWD to City for completed eligible infrastructure relocations/modifications (invoices paid annually) • TRWD cash -funded Capital Costs (—$190M) ■ Payment to TRWD for TRWD finding shortfall (cash match, land/h•elocation/demolition/remediation/program management) after the TIF's prior obligations are satisfied, should sufficient revenues be available. ■ Payment to City for City funding shortfall (water, sanitary sewer, and stormwater relocations, franchise utility relocations, local street modifications) after the TiF's prior obligations are satisfied, should sufficient revenues be available. 3. Required properties o TRWD and City will support the dedication to and/or use of properties from one party to the other for Central City Flood Control and Panther island project purposes, subject to respective governing body approvals, as may be necessary. This may include, but is not limited to, utility and public open space easements; canal, street, and pedestrian rights -of -way; rights -of -entry; and land swaps. 4. Canals: o Canals satisfy stormwater detention and conveyance requirements in current and ultimate conditions; they satisfy flood protection requirements that allow the levees to MOU - Central City Flood Control and Panther island Redevelopment Projects Page 4 of 10 be removed; and they will be an important component of the open space and pedestrian network of the island. o it is understood by the parties that the Canal System (defined as all segments and TRWD improvements within the Canal ROW which includes the Canal and Paseos) will be owned and operated by TRWD. Routine maintenance and operation of the Canal System infrastructure, as described in the Canal System Manual, will be performed by TRWD; once established, a public improvement district (PID) will perform enhanced maintenance such as landscaping, litter control, and power washing, as described in the Public Improvement District Service Plan and the Management and improvement Services Agreement. ■ The canal system is the adopted Panther Island stormwater plan, by means of appropriate references in city code. ■ TRWD plan review, approval, construction inspection, and acceptance of canals constricted by others will be incorporated into the appropriate City development processes, as described in an Interlocal Agreement for Canal System Development Processes to be entered into by the parties. o It is understood that the long-term capital maintenance of the Paseos may be a shared responsibility to be negotiated in good faith between TRWD and the City which receives sales and hotel -occupancy taxes associated with the economic and tourism success of Panther Island. This acknowledgment of future good faith negotiation will be incorporated into the Interlocal Agreement for Canal System Funding and Maintenance. o In accordance with Texas Government Code Chapter 2267 or other applicable law, City will dedicate to TRWD in fee, at no cost, the City -owned property needed for future stormwater canal segments on Panther Island. o City staff will recommend that the City Council allow the use of park fees collected on Panther island (Central City Unit Number 4.13-6) by TRWD for the purpose of constructing the Paseos as agreed to by the parties at the time each segment is constructed by TRWD or a developer. 5. Park improvements: o City staff will recommend that the City Council allow the use of park fees collected on Panther Island (Central City Unit Number 4.13-6) for improvements to TRWD- or City -owned open spaces, plazas, and walkways, including those adjacent to the bypass channel, to meet this purpose so long as they serve a recreational function and are open to the public. o Use of park fees for open spaces or Paseos, as noted in section 4, shall be negotiated in good faith by both parties to determine the best use of available funds to achieve the infrastructure and activation objectives with the intent to provide a shared recommendation to the City Council. o For City Park and Recreation Department improvements on TRWD property such as traillieads within the FWCC: MOU - Central City Flood Control and Panther Island Redevelopment Projects Page 5 of 10 ■ Platting: if replatting is required, the City Manager and staff shall recommend a waiver of the requirement to the City Plan Commission, as applicable. ■ The Zoning Administrator will review the applicability of Section 6.300 of the Zoning Ordinance, Appendix A of the City Code to areas open to the public within parkland or open space. TRWD and the City agree that the absence of incompatible uses or the existence of negative visual, noise, or other by- products of non-residential land uses shall be considered favorably in the determination by the Zoning Administrator that Sections 6.300 and 6.301 is not applicable to parkland or open space for the purposes of landscaping, screening, setback and buffer yard requirements. o For USACE Central City improvements within City parkland and outside of the limits of the federal floodway: ■ TRWD will seek to obtain a temporary work area easement with the City for USACE construction activities within the park. ■ TRWD will prepare the information/documents for any required conversion of parkland for the construction of improvements. Park and Recreation staff will use the information provided by TRWD to process the park conversion. o Regarding USACE Central City improvements within City parkland inside the limits of the federal floodway: ■ City acknowledges TRWD has the right to perform work within the Fort Worth Federal Floodway; and as such a temporary work area easement is not necessary to be executed. ■ TRWD will, at least 10 days prior to the commencement of USACE Central City work within the Fort Worth Federal floodway, provide notice to the City of the date and duration of the work to be performed. 6. Platting: o Street vacations: Applications to vacate street rights -of -way required for the Central City Flood Control Project or TRWD-led Canal System should include a request to the City Plan Commission to waive the subdivision ordinance requirement to incorporate the area to be vacated into a replat. The area vacated will be incorporated into a replat upon the development of adjacent parcels. o Platting will not be required for construction of the Canal System by TRWD within TRWD property or right-of-way. Platting of canals will occur in conjunction with the development of adjacent parcels. o The Fort Worth Floodway shall not generally require platting. Should a compelling need to plat the Floodway arise, plat notes shall be subordinate to the TRWD's ability to operate and maintain the Floodway. MOU - Central City Flood Control and Panther island Redevelopment Projects Page 6 of 10 7. Other o A future Public improvement District (PiD) is contemplated by both TRWD and City for purpose of operating and maintaining various district functions and amenities, including but not limited to the canals, public open spaces, signature bridges, water quality devices and landscaping. o it is understood by both parties that open space on Panther island will be dedicated as such and is not intended to be dedicated as parkland. ■ City and TRWD have committed through a separate MOU to work together in furthering greenspace preservation efforts. This commitment is applicable to Panther Island in working cooperatively to preserve properties on Panther island that are envisioned as future public open space, and to ensuring perpetual public access to open spaces and waterfronts. o In accordance with Ordinance No. 27615-04-2025 amending the Urban Forestry Ordinance, Panther island and work associated with the Central City Flood Control Project or TRWD-led Canal System, including but not limited to, valley storage projects are exempt from urban forestry requirements. The intent of the Urban Forestry Ordinance is met by the overall Ecosystem Restoration aspect of the Central City Flood Control program. ■ Tree removal will be coordinated with the City Forester and minimized to the degree possible. o TRWD and City will not charge staff expenses to the program, except for positions that are fully dedicated to interagency support of the Central City Flood Control Project, including: ■ Programmatic scheduling and cost control for the Central City Flood Control project. ■ Documents and records management. ■ Advisory services related to USACE protocol and operations. ■ Programmatic administrative support (TRVA Board, inter -agency administrative). o The applicability of fees related to the implementation of the Project, including utility service kills, dedication or vacation of required rights -of -way, easements will be incorporated into the interlocal Agreement between the TRWD and the City for development processes. o TRWD and City will designate staff to notify and closely coordinate with each other on public information requests and media releases. o Presentation materials for public meetings will be reviewed by TRWD and City in advance in order to ensure consistent and coordinated messaging. o Haul routes required for construction of the project are evaluated during design. Anticipated damage to City roadways can be addressed either via payment of an upfront fee by the contractor prior to beginning construction, or by pre- and post -construction inspection and repair to pre -construction conditions by the contractor. o Due to the various unique requirements and processes associated with development of Panther Island, City and TRWD will endeavor to ensure a consistent and coordinated MOU - Central City Flood Control and Panther island Redevelopment Projects Page 7 of 10 team of reviewers be assigned to review and process development applications on Panther Island. o Pending the establishment of a formal governance structure for Panther Island, City and TRWD will continue to coordinate closely on the consideration and review of any development proposals in the district. o Through meetings with the USACE, FEMA, City, and TRWD, the partners have agreed on the following with regard to modification of FEMA FIRM maps related to the Central City Flood Control and Panther Island projects: ■ Conditional Letters of Map Revision (CLOMRs) and Letters of Map Revision (LOMRs) will be handled on a feature -by -feature basis but will be required by FEMA to address revisions to the Special Flood Hazard Area extents and water surface elevations. • For each feature, if a No -Rise Analysis can be certified, then a CLOMR will not be required. ■ The USACE will perform (or cause to be performed) and provide the required modeling and other requirements for inclusion in an application for a CLOMR (if required) and LOMR, as appropriate. TRWD and the City will work cooperatively on submission and processing of the application for FEMA review and approval. o To the extent possible, when an inter -agency process, format, or agreement has been established and utilized successfully, it shall be utilized for future such inter -agency actions (i.e., easement language, reporting templates, rights of entry, haul route repair, etc.) o Proceeds from the future sale of properties that were purchased with Central City project funds (including initial cash contributions by the public partners, as well as expenditures later reimbursed with TIF revenues) will be allocated to the repayment of outstanding local Central City project costs (demolitions and relocations, land acquisition, cash match, utility relocations, etc.). ■ Should all project costs be met, proceeds would be allocated to mutually beneficial improvements or operations on Panther Island, prioritizing the installation of canals and other critical public infrastructure above other potential improvements. 7. Notices. All written notices required under this MOU must be hand delivered or sent by certified mail, return receipt requested, addressed to the proper party at the following address: To Citv: To TRWD: City of Fort Worth Tarrant Regional Water District Attn: City Manager's Office Attn: General Manager 100 Fort Worth Trail 800 E. Northside Drive Fort Worth, TX 76102 Fort Worth, TX 76102-1016 With copy to Fort Worth City Attorney's Office at same address MOU - Central City Flood Control and Panther Island Redevelopment Projects Page 8 of 10 8. Governing Law. The Parties agree that this MOU shall in all respects be governed by, and construed in accordance with, the laws of the State of Texas, (without regard to principles of conflict of laws that would require the application of a law of other jurisdiction), and exclusive venue shall lie in the courts of competent jurisdiction in Tarrant County, Texas. 9. Captions and Headings. Captions and headings used in this MOU are for reference purposes only and shall not be deemed a part of this MOU. 10. Counteru<u•ts. This MOU may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument, and it shall not be necessary in making proof of this MOU to produce or account for more than one such counterpart. 11. Entire Agreement. This MOU represents the entire understanding of the Parties in relation to the subject matter hereof, and supersedes any and all previous agreements, arrangements, or discussions between them (whether written or oral) in respect of the subject matter hereof. 12. Governmental Powers. By execution of this MOU, neither TRWD nor the City waives their sovereign or governmental powers, or immunities, all of which are expressly reserved. 13. Severability. If any provision of this MOU shall be determined to be unenforceable, void, or otherwise contrary to law, such condition shall in no manner operate to render any other provision of this MOU unenforceable, void or contrary to law, and this MOU shall continue in force in accordance with the remaining terms, and provisions hereof, unless such condition invalidates, the purpose or intent of this MOU. 14. Amendment. No amendment, modification, or alteration of the terms of this MOU shall be binding, unless it is in writing, dated subsequent to this MOU, and duly executed by the Parties hereto. 15. "Third Party Rights. The provisions and conditions of this MOU are solely for the benefit of TRWD and City and are not intended to create any rights, contractual or otherwise, for any person or entity. 16. Conflicts. in the event of any dispute over the meaning or application of and provision of this MOU, this MOU shall be interpreted fairly and reasonably, and neither more strongly fair or against any Party, regardless of the actual drafter of this MOU. 17. No Partnershin. Nothing in this MOU shall be deemed to create a partnership, agency, joint venture, or joint enterprise between the Parties. [signature page follows] MOU - Central City Flood Control and Panther island Redevelopment Projects Page 9 of 10 ACCEPTED AND AGREED: CITY OF FORT WORTH: Naha Nwk By. Dana 6wghd off (Jut 28, d21, 17:I' ff.T) Name: Dana Burghdoff Title: Assistant City Manager Date: 2025 APPROVAL RECOMMENDED: By: ?, P C,,�, Name: Ronald Gonzales Title: Asst City Secretary ATTEST. By: U Name: Jannette S. Goodall Title: City Secretary TARRANT REGIONAL WATER DISTRICT: Tarrant Regional Water D'strict By: I Name: D: Ruhman Title: General Manager Date: 05 .S'ut>l. 2025 1 CONTRACT COMPLIANCE MANAGER: By signing T acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Name: Clair Davis Title: Sr. Capital Projects Officer APPROVED AS TO FORM AND LEGALITY: By: Name: Melinda Ramos Title: Deputy City Attorney CONTRACT AUTHORIZATION: M&C: Form 1295: APPROVED AS TO FORM AND LEGALITY: Name: Stephen Tatiim Title: General Counsel MOU - Central City Flood Control and Panther Island Redevelopment Projects Page 10 of 10