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Home My WebLink About064268-A1 - General - Contract - Castle Group Texas, LLCCSC No. 64268-Al FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 64268, A MANAGEMENT AND IMPROVEMENT SERVICES AGREEMENT Fort Worth Public Improvement District No. 7 (Heritage) This FIRST AMENDMENT TO CITY SECRETARY CONTRACT NUMBER 64268 ("First Amendment") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home -rule municipal corporation organized under the laws of the State of Texas, acting by and through its duly authorized Assistant City Manager, and CASTLE GROUP TEXAS, LLC a Texas limited liability company ("Contractor"), acting by and through its duly authorized representative. WHEREAS, the City and Contractor are parties to a Management and Improvement Services Agreement for Fort Worth Public Improvement District No. 7, the same being City Secretary Contract Number 64268 ("Agreement"); WHEREAS, Contractor identified a need to reallocate certain funds between budgeted line items; WHEREAS, on April 28, 2026, the City Council adopted an ordinance approving a revised Fiscal Year 2025-2026 budget and five-year service plan, taking into account the budgetary adjustments; and WHEREAS, the parties wish to amend the Agreement to incorporate the revised budget and five- year service plan. NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and agreements contained herein, the City and Contractor do hereby covenant and agree to amend the Agreement as follows: 1. Exhibit A to the Agreement concerning the Budget and Service Plan for the District is replaced with, and superseded by, a new Exhibit A that is attached to this First Amendment, which is incorporated into the Agreement for all purposes. 2. All terms of this First Amendment that are capitalized but not defined have the meanings assigned to them in the Agreement. 3. All terms and conditions of the Agreement that are not expressly amended pursuant to this First Amendment will remain in full force and effect. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX First Amendment to CSC 64268 IN WITNESS WHEREOF, the undersigned have caused this First Amendment to be executed in Fort Worth, Tarrant County, Texas. CITY OF FORT WORTH: to Jesica McEachern Assistant City Manager Date: 05/19/2026 CASTLE GROUP TEXAS, LLC: a Texas limited liability company a By: VA1111MIndf (May -A, 2026 14:38:09 EDT) Will Delgado President Date: 05/08/2026 CITY OF FORT WORTH INTERNAL ROUTING PROCESS: APPROVAL RECOMMENDED: rttia_ By: Christianne Simmons (May 11, 2026 15:55:53 CDT) Name: Christianne Simmons Title: Chief Transformation Officer APPROVED AS TO FORM AND LEGALITY: �5o By: Name: Taylor Paris Title: Sr Assistant City Attorney Contract Authorization: M&C: 25-0815 (September 16, 2025); 26-0268 (April 28, 2026 Form 1295:2025-1344919 First Amendment to CSC 64268 Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: � 41111'' Name: Crystal Hinojosa Title: Economic Development Manager f fOH> tp City Secretary: A `, Name: Jannette S. Goodall Title: City Secretary OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Exhibit "A" City of Fort Worth Five. Year Service Plan: Mid -Year Adjustment Public Improvement District No. 7 - Heritage FY 25126 FY 2WZ7 FY Z7128 FY 28129 FY2930 REVENUES PID Asses5ments $ 2,161.087 2,M,92G $ 2=,697 $2.361,478 $ 2AW-322 COFW Payment m Oeu of Serdic�ps 266.0GE1. 274F05G 282,272 290,740 2%AG2 PID Gen-raind Revenue I.G50 I'MO 1,050 1,050 1.1350 Total. Bud geted Revenues �4UMT 2,623.,727 i ZW.726 f2.U%975 $ 2,753,541 Useoffund BaLance $ 563.774 i,,),F;.la $ lataLAevenues $ :3.DI2,M 2.612.374 2.5%.-,126 f2.67:3,9-15 $ 7-753.541 EXPENSES Mana.,s,nmentfee $ mala $ 192.5m $ 196.446 $ 200.375 $ 204.383 U-. Ir. ;Is 283.950 289,629 295,422 301.330 307,357 L--ro-iscaping, 1=.965 1,319,742 1,346.137 1.373,064 1AGOF52 I Cc rman Area Maintenance 217,701 222,455 210,G59 216.3GO 222.1351 Sk,.curry EnhanceTr*.rA 105.WG 94FOOO 95,WG 97,7% 99.754 Advertising 7,704 5W WO 543E 500 F'UbftC Event 92.GGG 93.840 95,717 97,631 99.584 Association Employees 58.943 60,020 61.72G 62,445 63,694 Capital lTqxovemerTts 709.852 286,569 20D.000 206,000 20.180 Annual Review 6.GW 3,OW 3,WG 3'M 3,000 City Administrative Fee 48.957 50,435. 51,935 53.4,90 55.07 i Total. Budgeted Expenses $ 3,012,666 2,612,374 $ Z556,315 $ 2,M978 $ ZGMBH Cc ntribul Dn I-) I u r,:J Dau-nce 4,0.411 $ 61.997 $ 94.648 Total Expense 3.032,686 i 2.612.374 f2,5%,72r. f2.673,975 $ 2,753.541 Net Change in Fund BaLa nee $ {563.7741 $ (90.G481 $ 40,411 $ 61,997 $ KWO I and 3alance, Bep;nnings Df Year $ 1,319,493 $ 755.719 $ 665,071 $ 705,482 $ 767A79 I stimatr-:11 undP=1ancn, Ind afYeaT 755.719 $ 9135,071 $ 705,482 767,479 $ 1152,127 ll,seryo 112-juiremen. 435.483, 426,138 435,417 444.9(15 444.905 Over (Under) Reserve $ 320,236 $ 238.9M $ 270.066 $ 322-575 $ 40.223 *FY25126kssessment Rate = 5.245 ResIdentlalJ$-i25ComrnerciaL First Amendment to CSC 64268 M&C Review Page 1 of 3 A CITY COUNCIL AGEND Create New From This M&C Official site of the City of Fort Worth, Texas FORT WORTH �''� m7_A 0 V 4 ;1 40 :11 kq [d KeZH kq I_1►TA14 CODE: G TYPE: CONSENT PUBLIC HEARING: 03PID07 MIDYEAR FY26 SUBJECT: (CD 4 and CD 10) Adopt Ordinance Amending Public Improvement District 7 - Heritage Fiscal Year 2025-2026 Adopted Budget and Five -Year Service Plan; Authorize the Execution of an Amendment to the Associated Management and Improvement Services Agreement with Castle Group, LLC to Align with these Changes; and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: Adopt the attached ordinance amending Public Improvement District 7 - Heritage Fiscal Year 2025-2026 Adopted Budget and Five -Year Service Plan to reflect amendments associated with a mid -year review and direct the City Secretary to record the same in the real property records of Tarrant County, Texas no later than the seventh (7th) day after adoption by the City Council; Authorize the execution of an amendment to the associated Management and Improvement Services Agreement with Castle Group, LLC (City Secretary Contract No. 64268) to align with these changes; and Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Public Improvement District 7 - Heritage Fund in the amount of $162,216.00: 1) $1,050.00 from available revenue generated by the PID, and 2) $161,166.00 from available, unreserved fund balance, for the purpose of funding mid -year budget adjustments. DISCUSSION: The City of Fort Worth's (COFW) FWLab Department administers the City's Public Improvement Districts (PIDs). The City's PID Policy outlines the need to proactively work with the City's PID management companies to oversee the services being provided within each of the PIDs. PID 7 - Heritage (Heritage PID) is managed by Castle Group, LLC (Castle). On September 16, 2025, City Council adopted Ordinance No. 27986-09-2025, approving the Fiscal Year (FY) 2025-2026 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2025 Assessment Roll for the Heritage PID. After conducting a mid -year review of the Heritage PID's budget, City staff and Castle have identified the need to increase Heritage PID's appropriations by $162,216.00. This adjustment reflects an increase of $1,050.00 in PID generated revenue as well as the use of available fund balance to support program enhancements. The primary factors driving expenditure adjustments include adjusted management fees, additional investments in landscaping, fence, and wall maintenance, and addressing slope failure. In addition to PID Assessments, the Heritage PID also receives funding from the following sources: The City's Payment In -Lieu of Services is a supplement to the PID budget and intended to provide for the standard level of improvements and services as comparable to what would be provided by the City for the taxpayers generally. The City of Fort Worth Payment In -Lieu of Assessment is an allocation to the PID budget for assessments the City would pay on City -owned properties in the Heritage PID, if the City was not a tax-exempt entity. Neither of these revenue sources is changing in the current update to the Five -Year Service Plan. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=34311&councildate=4/28/2026 5/6/2026 M&C Review Page 2 of 3 Revenue Adjustments: Previously Approved Recommended Amended Line Items FY26 Budget Mid -Year FY26 Budget Item Adjustment Item PID $2,161,087.00 $0.00 $2,161,087.00 Assessments COFW Payment In- 266,068.00 0.00 266,068.00 Lieu of Services COFW Assessment 20,707.00 0.00 20,707.00 PID Generated 0.00 1,050.00 1,050.00 Revenue Use of Fund Balance 402,608.00 161,166.00 563,774.00 Totals 1 $2,850,470.0011 $162,216.001 $3,012,686.00 Expenditure Adjustments: Line Item Previously Approved FY26 Budget Item Recommended Mid -Year Adjustment Amended FY26 Budget Item Management Fee 1 $185,900.00 $2,918.001 $188,818.00 Utilities 1 283,850.001 100.0011 283,950.00 Landscaping Common Area Maintenance 1 1,268,865.001 1 1 1,572.001 2 000.0011 6,129.00 1,293,865.00 217,701.00 Security Enhancements 1 105,000.0011 105,000.00 Advertising 1 500.001 7,200.0011 7,700.00 Public Events =1 85,000.0011 '000.0011 92,000.00 Association Employees 57,974.001 869.0011 58,843.00 Capital improvements 629,852.001 8 000.0011 709,852.00 Annual Review 1 3,000.001 '000.0011 6,000.00 City Administration Fe 1 48,957.0011 0.0011 48,957.00 Totals 1 $2,850,470.001 $162,216.00 $ 3,012,686.00 Upon approval of the above recommendations, the total budgeted expenses for FY2025-2026 will be $3,012,686.00. The revised Budget and Five -Year Service Plan will take effect upon approval by City Council. The City and Castle will amend the existing management contract to reflect the mid -year adjustments (City Secretary Contract No. 64268). Funding will be budgeted within the FWPID #7 — Heritage Fund for Fiscal Year 2026. Funding is available for appropriation in the fund balance of the FWPID# 7 - Heritage Fund. The current balance is $2,211,125.28, after this M&C available balance will be $2,049,959.28. The Heritage PID is located in COUNCIL DISTRICTS 4 & 10. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the FWPID #7 - Heritage fund and in the unreserved fund balance of the FWPID #7 - Heritage fund and, upon approval of the above http://apps.cfwnet.org/council_packet/mc_review.asp?ID=3431I&councildate=4/28/2026 5/6/2026 M&C Review Page 3 of 3 recommendations and adoption of the attached appropriation ordinance, funds will be available in the FWPID #7 - Heritage Fund to support the approval of the contract amendment. Prior to an expenditure being incurred, the FWLab Department has the responsibility of verifying the availability of funds. Fund Department Account Project Program Activity Budget I Reference # Amount ID I I ID I I I Year I (Chartfield 21 Fund Department Account Project Program Activity Budget Reference # Amount ID I I ID I I I Year I (Chartfield 2) Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Christianne Simmons (6222) Brady Kirk (8712) ATTACHMENTS 03PID07 MIDYEAR FY26 funds avail.docx (CFW Internal) ORD.APP03PID07 MIDYEAR FY26 AO(R3).docx (Public) PID 07 FID Table 2026.03.xlsx (CFW Internal) PID 07 MY SAP FY26.pdf (Public) PID 07 SAP Amendment Ord FY26.DOCX (Public) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=34311&councildate=4/28/2026 5/6/2026 FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Castle Group Texas, LLC Subject of the Agreement: First Amendment to CSC 64268 FY26 Management Agreement PID 7-Heritage M&C Approved by the Council? * Yes 9 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes 8 No ❑ 64268 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No 8 If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No ® If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: 04/22/2026 If different from the approval date. Expiration Date: 09/30/2026 If applicable. Is a 1295 Form required? * Yes ❑ No W *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 8 No ❑ Contracts need to be routed for CSO processing in the following order: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.