HomeMy WebLinkAbout033171 ORD - 09/19/2023Ordinance authorizing a Water Arterial Transmission & Grid Main Construction and
Reimbursement Agreement up to $1,087,852.60 with MPM Development, LP to
construct a 12 -inch water arterial transmission grid main line for the proposed
residential and commercial development located off Yorktown Dr., southeast of Starry
Rd., also known as Oso Creek Corner Subdivision; and authorizing future transfer
and appropriation of Water and Wastewater Trust Fund revenue up to $1,087,852.60 to
reimburse the developer in accordance with the agreement. (District 5).
WHEREAS, the Developer/Owner, in compliance with the City's Unified Development
Code ("UDC"), has a plat, approved by the Planning Commission on October 19, 2022, to
develop a tract of land, approximately 103.015 acres known as Oso Creek Corner Subdivision;
WHEREAS, under the UDC, the Developer/Owner is responsible for construction of the
Water Arterial Transmission & Grid Main ("Water Improvements");
WHEREAS, under the UDC, the Developer/Owner is eligible for reimbursement of the
Developer/Owner's costs for the construction of Water Improvements;
WHEREAS, it is in the best interests of the City to have the Water Improvements be
constructed to its ultimate capacity under the City's applicable Master Plan; and
WHEREAS, the City's participation as Trustee does not create a loan of its credit
because Texas Constitution Article 1.1, Section 3 prohibits the City from becoming a subscriber
to the capital of any private corporation or association, or make any appropriation or donation to
the same, or in anywise loan its credit;
WHEREAS, execution of the Agreement constitutes a promise to pay only to the extent
that the assets and future assets of the trust are sufficient for such purpose and that any
judgement will only be satisfied out of the assets of the trust and not out of the City's assets and
the City is excluded from personal liability;
WHEREAS, the Water Arterial Transmission & Grid Main Trust Fund does not currently
have sufficient funds to fully reimburse Developer/Owner for Water Improvements under the
Agreement;
WHEREAS, a construction and reimbursement agreement must be approved by the City
Council before the developer starts construction. Reimbursement only shall be made when
monies are available in and appropriated from the Water Arterial Transmission & Grid Main
Trust Fund. The order of the reimbursement will be determined according to the date
construction and reimbursement agreement is approved by the City Council;
WHEREAS, the Agreement approved herein will be fourt-in-line in the order for
reimbursement from the Water Arterial Transmission & Grid Main Trust Fund based on the date
the agreement is approved by the City Council per UDC 8.5.3.E; and
WHEREAS, if the developer is owed funds from the Water Arterial Transmission & Grid
Main Trust Fund reimbursement shall be made as funds are deposited into the trust fund from
other development and/or, the developer will be given credit for lot or acreage fees that are due
on subsequent final plats filed with the County Clerk per UDC 8.5.3.E.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS,
THAT:
033171
1
SCANNED
SECTION 1. The City Manager or designee is authorized to execute a Water Arterial
Transmission & Grid Main Construction and Reimbursement Agreement ("Agreement"),
attached hereto, with MPM Development, LP ("Developer"), for the installation of a 12 -inch
water line, including all related appurtenances, for the development of Oso Creek Corner
Subdivision, Corpus Christi, Nueces County, Texas.
SECTION 2. In the event of a project delay, the City Manager or designee is authorized to
execute an extension of the agreement for a period not to exceed a period of 12 months.
SECTION 3. The City Manager or designee is authorized to transfer future revenue of the
Water Distribution Main Trust Fund, Wastewater Trunk System Trust Fund and Wastewater
Collection Line Trust Fund to the No.4030-21805-777 Water Arterial Transmission & Grid Main
Trust Fund, in accordance with the priority established by UDC 8.5.1.C.1.d, 8.5.1.C.2.d,
8.5.2.E.1.d, and 8.5.2.E.2.d, until $1,087,852.60 is appropriated in accordance with this
ordinance.
SECTION 4. The City Manager or designee is authorized to appropriate up to $1,087,852.60
from the No.4030-21805-777 Water Arterial Transmission & Grid Main Trust Fund as
funds become available to reimburse the Developer for the water transmission line
construction and improvements in accordance with the Agreement, this ordinance, and the
UDC.
SECTION 5. This ordinance takes effect upon passage.
Introduced and voted on the ra`day of
I 5
D and APPROVED on the rim day of
Paulette Guajardo, Mayo
\N"\kW , 2023.
tI\W , 2023.
Rebecca Huerta, City Secretary
0331 11
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money
required for the current fiscal year's portion of the contract, agreement, obligation or
expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: 09/1 9/2 023 Legistar Number: 23-1272
Agenda Item:
Ordinance authorizing a Water Arterial Transmission & Grid Main Construction and
Reimbursement Agreement up to $1,087,852.60 with MPM Development, LP to construct a 12 -inch
water arterial transmission grid main line for the proposed residential and commercial development
located off Yorktown Dr., southeast of Starry Rd., also known as Oso Creek Corner Subdivision;
and authorizing future transfer and appropriation of Water and Wastewater Trust Fund revenue up
to $1,087,852.60 to reimburse the developer in accordance with the agreement. (District 5).
Amount Required: (Amount to be Certified) $1,087,852.60
Fund Name
Accounting Unit
Account No.
Amount
Water Arterial Transmission &
Grid Main Trust Fund as fund
become available (Future
Revenues)
4030-21805-777
540450
$1,087,852.60
TOTAL
$1,087,852.60
❑ Certification Not Required
O. al 121 I2.cZ3
Director of Financial Services Date: