HomeMy WebLinkAbout033220 ORD - 11/28/2023Ordinance authorizing an amendment to the Water Arterial Transmission & Grid Main
Construction and Reimbursement Agreement with MPM Development, LP to extend
the contract term to December 6, 2025, and to increase reimbursement by $190,212.64
for a total not to exceed amount of $374,023.38 for construction of a 12 -inch water
arterial transmission grid main line for residential development, Royal Creek Estates
Unit 8; and authorizing future transfer and appropriation of Water and Wastewater
Trust Fund revenue up to $190,212.64 to reimburse the developer in accordance with.
the agreement.
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 the 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
constructed to their ultimate capacity under the City's applicable Master Plan;
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 the 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 sixth -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;
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 developments, 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; and
WHEREAS, the developer will only proceed with construction if the reimbursement
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03 3 2 20 SCANNED
reflects an update to the cost of construction.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS, THAT:
SECTION 1. The City Manager or designee is authorized to execute an amendment to the
Water Arterial Transmission & Grid Main Construction and Reimbursement Agreement with
MPM Development, LP to extend the contract term to December 6, 2025, and to increase
reimbursement by $190,212.64 for a total not to exceed amount of $374,023.38 for construction
of a 12 -inch water arterial transmission grid main line for residential development, Royal Creek
Estates Unit 8.
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 $190,212.64 is appropriated in accordance with this
ordinance.
SECTION 4. The City Manager or designee is authorized to appropriate up to $190,212.64 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 1 Mday of M(XVI\W , 2023.
VED on the orb 'day ofM , 2023.
a ette Guajardo, Mayor
ATTEST:
b-cca Huerta, City Secretary
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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: 11/14 /2 02 3 Legistar Number: 23-1727
Agenda Item:
Ordinance authorizing an amendment for the Water Arterial Transmission and Grid Main
Construction and Reimbursement Agreement ("Agreement") with MPM Development, L.P.
("Developer") for both time and cost to reimburse the construction of a required water arterial
transmission and grid main line for Royal Creek Unit 8, the proposed development located off Oso
Parkway and Rock Crest Dr. Amending the contract for an additional 24 months and increasing the
funding by $109,212.64 for a total not to exceed $374,023.38 (District 5).
Amount Required: (Amount to be Certified) $374,023.38
Fund Name
Accounting Unit
Account No.
Amount
Water Arterial Transmission &
Grid Main Trust Fund as fund
become available (Future
Revenues)
4030-21805-777
540450
$374,023.38
TOTAL
$374,023.38
n Certification Not Required
aeltA/CA )<W// eAl4r"-- ab -61? -o-3
DvTiA.Director of Financial Services Date: