M&C Review


COUNCIL ACTION:  Approved on 8/7/2018 

DATE: 8/7/2018 REFERENCE NO.: L-16133 LOG NAME: 06065030 FAR NORTH FORT WORTH MUD #1 AGREEMENT AMENDMENTS
CODE: L TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of First Amendment to Utility and Infrastructure Agreement and First Amendment to Development Agreement for the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (ETJ Adjacent to COUNCIL DISTRICT 7)

RECOMMENDATION:

It is recommended that the City Council authorize the City Manager or a designee to execute the following amendments to agreements for the Northstar development in the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties and to take any actions to carry out such agreements:

1.  First Amendment to Development Agreement between the City of Fort Worth, Texas and Northstar Ranch, LLC for the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties; and

2.  First Amendment to Utility Agreement.

 
DISCUSSION:

Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (the District) encompasses approximately 733 acres of land in Fort Worth's extraterritorial jurisdiction in Tarrant, Denton and Wise counties (the Property).  The Property is located east of U.S. Highway 81/ 287 and west of Sendera Ranch Boulevard.  The City will be the retail water and wastewater service provider to the Property at outside city limit rates, subject to construction of off-site and on-site water and wastewater infrastructure by the District and Northstar Ranch, LLC, owner and developer of the Property.

On December 15, 2015, the City Council adopted Resolution No. 4554-12-2015 consenting to creation of the District and authorizing execution of Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 Mayor and Council Communication (M&C L-15844).  The District was created by order of the Texas Commission on Environmental Quality dated January 20, 2017 and was granted road powers by the Texas Legislature by House Bill 4331 approved on May 20, 2017.

On August 15, 2017, the City Council authorized execution of a Utility and Infrastructure Agreement, Development Agreement, and First Amendment to Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 (M&C L-16059).  The Utility and Infrastructure Agreement provides for design and construction of certain on-site and off-site water and wastewater infrastructure to serve the Property.

Northstar Ranch, LLC and the District have asked the City to amend the Utility and Infrastructure Agreement and the Development Agreement with respect to the phasing of construction of water and wastewater infrastructure and roads to serve the Property.  The amendment to the Utility and Infrastructure Agreement reflects that the City will provide retail water and wastewater service to the eastern portion of the Property after Northstar Ranch, LLC and the District construct connections to existing City infrastructure in the Sendera Ranch development.  The City will provide retail water and wastewater service to the western portion of the Property as off-site water and wastewater infrastructure is constructed by Northstar Ranch, LLC, the District or other developers.  The amendment will allow Northstar Ranch, LLC to construct up to 20 model homes on the western portion of the Property, to be served by City water service and an on-site sewer system.  Sale of the model homes to end-users is prohibited until City wastewater service is available.  The amendment to the Utility and Infrastructure Agreement also modifies the road construction requirements by Northstar Ranch, LLC and the District to reflect the phasing of the development described above.  The amendment to the Development Agreement is consistent with the amendments to the Utility and Infrastructure Agreement.

The Property is located in FUTURE COUNCIL DISTRICT 7.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that approval of this Agreement will have no immediate material effect on City funds.  Any effect on expenditures and revenues will be budgeted in future fiscal years.

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Submitted for City Manager's Office by:
Jay Chapa (6122)
Originating Department Head:
Randle Harwood (6101)
Additional Information Contact:
Mary Elliott (7844)

 
 
ATTACHMENTS
  ExD Dev Agmt 7.27.18.pdf
  FINAL Amt to Dev. Agt 7.30.18.pdf
  Form 1295.pdf
  Location Map Far North FW MUD 1.pdf