BACKGROUND/DISCUSSION:
On June 18, 2019, City Council entered into a Chapter 380 Economic Development Agreement with AM & JK Development, LLC for The Square development (Development). The agreement obligated the City to make Grant Payments to the developer on a dollar for dollar reimbursement basis for roadway improvements, including sanitary sewer improvements.
The City of Fort Worth recently completed the Dozier Creek Sanitary Sewer along Development's north property line. The sewer provides an opportunity for a convenient and economical connection point for the Development. However, the desired connection point and service area is outside of an existing City of Fort Worth metering station for the City of Saginaw.
In order to make the connection, the City of Fort Worth is requiring pro-rata participation in the construction of the Dozier Creek Sanitary Sewer based on the flow being added to it by the Development and an amendment to the Wholesale Wastewater Contract to add the connection point.
The calculated cost participation is $34,425.82. The new connection point will be designated as Saginaw No. 5 and its address will be 751 N Saginaw Blvd. A new meter is not planned at this time. Billing is planned to be made based on a percentage of water consumption for taps in the Development's service area.
The actual connection will be funded by the Developer as a separate contract.
The funds will be drawn down from the First Grant payment of $1,000,000 under the 380 Agreement in lieu of reimbursement since the City of Fort Worth Wholesale Wastewater Agreement amendment must be executed and funded from the City of Saginaw.
FINANCIAL IMPACT:
The Fiscal Impact will be $34,425.82. Funds in the amount of $696,678 have been reserved in the Enterprise Fund for Water and Sanitary Sewer improvements under the Chapter 380 Economic Development Agreement.
RECOMMENDATION:
It is recommended that the City Council approve the Second Amendment to the City of Fort Worth Wholesale Wastewater Contract.