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20-R-48 - Utility agreement with TxDOT for relocation of a segment of sewer Main near intersection of IH35 & FM 1103RESOLUTION NO. 20 -R -48 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A STANDARD UTILITY AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION RELATING TO THE RELOCATION OF A SEGMENT OF SEWER MAIN NEAR THE INTERSECTION OF IH -35 AND FM 1103 AND ALL MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz (the "City ") was required to relocate existing sewer main facilities within the Texas Department of Transportation (TxDOT) right -of -way to accommodate the reconstruction of the FM 1103 bridge over IH -35; and WHEREAS, the City is eligible for reimbursement of all project costs associated with the sewer main relocation through a Standard Utility Agreement with TxDOT; and WHEREAS, the City Council has determined that it is in the best interest of the City to seek reimbursement of all eligible costs from TxDOT, pursuant to the Standard Utility Agreement attached hereto as Exhibit A (the "Agreement "). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Standard Utility Agreement with TxDOT, in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 8' day of December, 2020. CITY OF SCHERTZ, TEXAS Ral 6uti64ez, Mayor ATTEST: r City Secretary 50506887.] EXHIBIT A TXDOT STANDARD UTILITY AGREEMENT 50506887.1 A -1 Form ROW -U -35 (Rev. 08/19) Page 1 STANDARD UTILITY AGREEMENT U- Number: U***** Project ID # A******** District: San Antonio County: Comal Federal Project No.: NH 2019 (797) Highway: IH 35 ROW CSJ: 0016- 05 - * ** From: At FM 1103 Highway Project Letting Date: 03/2017 To: This Agreement by and between the State of Texas, acting by and through the Texas Transportation Commission, ( "State "), and City of Schertz - Sewer, ( "Utility "), acting by and through its duly authorized representative, shall be effective on the date of approval and execution by and on behalf of the State. WHEREAS, the State has deemed it necessary to make certain highway improvements as designated by the State and approved by the Federal Highway Administration within the limits of the highway as indicated above (the "Highway Project "); WHEREAS, the proposed Highway Project will necessitate the adjustment, removal, and/or relocation of certain facilities of the Utility as indicated in the following statement of work: Relocate approximately 605 L.F. of 8 -inch Sanitary Swewr, install 4 precast Manholes, 21.96 V.F. of precast Manholes (extra depth), reconstruct 2 manholes, abandon 582.1 L.F. of 8 inch sewer main, remove 3 sewer Manholes, 645.28 L.F. of trench excavation saefty protection, 50 L.F. of Steel casing (18in) (open cut), 32 L.F. of water pipe (PVC) (12 IN) (open cut). 19.4 C.Y. of flowable fill, In addition adjust 32 feet of 12" water main due to conflict with the proposed 8 inch sanitay sewer main.; and more specifically as shown in the Utility's plans, specifications and estimated costs, which are attached hereto as Attachment "A ". WHEREAS, the State will participate in the costs of the adjustment, removal, and relocation of certain facilities to the extent as may be eligible for State and /or Federal participation. WHEREAS, the State, upon receipt of evidence it deems sufficient, acknowledges the Utility's interest in certain lands and facilities that entitle it to reimbursement for the adjustment, removal, and relocation of certain of its facilities located upon the lands as indicated in the statement of work above. NOW, THEREFORE, BE IT AGREED: The State will pay to the Utility the costs incurred in adjustment, removal, and relocation of the Utility's facilities up to the amount said costs may be eligible for State participation. All conduct under this agreement, including but not limited to the adjustment, removal, and relocation of the facility, the development and reimbursement of costs, any environmental requirements, and retention of records will be in accordance with all applicable federal and state laws, rules and regulations, including, without limitation, the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. §§ 4601, et seq., the National Environmental Policy Act, 42 U.S.C. §§ 4321, et seq., the Buy America provisions of 23 U.S.C. § 313 and 23 CFR 635.410, as amended, Texas Transportation Code § 223.045, the Utility Relocations, Adjustments, and Reimbursements provisions of 23 CFR 645, Subpart A, and the Utility Accommodation provisions of 23 CFR 645, Subpart B. The Utility shall supply, upon request by the State, proof of compliance with the aforementioned laws, rules, regulations, and guidelines prior to the commencement of the adjustment, removal, and relocation of the facility. Initial Date Initial Date TxDOT Utility Form ROW -U -35 (Rev. 08/19) Page 2 The Utility shall not commence any physical work, including without limitation site preparation, on the State's right of way or future right of way, until TxDOT provides the Utility with written authorization to proceed with the physical work upon TxDOT's completion and clearance of its environmental review of the Highway Project. Any such work by the Utility prior to TxDOT's written authorization to proceed will not be eligible for reimbursement and the Utility is responsible for entering any property within the proposed limits of the Highway Project that has not yet been acquired by TxDOT. This written authorization to proceed with the physical work is in addition to the authorization to commence work outlined below. Notwithstanding the foregoing, the provisions of this paragraph are required only when TxDOT has not obtained completion and clearance of its environmental review of the Highway Project prior to the execution of this Agreement by the State and the Utility. The Utility shall comply with the Buy America provisions of 23 U.S.C. § 313, 23 CFR 635.410, as amended, and the Steel and Iron Preference provisions of Texas Transportation Code § 223.045 and, when products that are composed predominately of steel and/or iron are incorporated into the permanent installation of the utility facility, use domestically manufactured products. TxDOT Form 1818 (Material Statement), along with all required attachments, must be submitted, prior to the commencement of the adjustment, removal, and relocation of the facility, as evidence of compliance with the aforementioned provisions. Failure to submit the required documentation or to comply with the Buy America, and Steel and Iron Preference requirements shall result in: (1) the Utility becoming ineligible to receive any contract or subcontract made with funds authorized under the Intermodal Surface Transportation Efficiency Act of 1991; (2) the State withholding reimbursement for the costs incurred by the Utility in the adjustment, removal, and relocation of the Utility's facilities; and (3) removal and replacement of the non- compliant products. The Utility agrees to develop relocation or adjustment costs by accumulating actual direct and related indirect costs in accordance with a work order accounting procedure prescribed by the State, or may, with the State's approval, accumulate actual direct and related indirect costs in accordance with an established accounting procedure developed by the Utility. Bills for work hereunder are to be submitted to the State not later than one (1) year after completion of the work. Failure to submit the request for final payment, in addition to all supporting documentation, within one (1) year after completion of the work may result in forfeiture of payment for said work. When requested, the State will make intermediate payments at not less than monthly intervals to the Utility when properly billed. Such payments will not exceed 90 percent (90 %) of the eligible cost as shown in each such billing. Intermediate payments shall not be construed as final payment for any items included in the intermediate payment. The State will, upon satisfactory completion of the adjustment, removal, and /or relocation and upon receipt of final billing prepared in an approved form and manner and accounting for any intermediate payments, make payment in the amount of 90 percent (90 %) of the eligible costs as shown in the final billing prior to audit and after such audit shall make an additional final payment totaling the reimbursement amount found eligible for State reimbursement. Alternatively, the State agrees to pay the Utility an agreed lump sum of $N /A as supported by the attached estimated costs. The State will, upon satisfactory completion of the adjustments, removals, and relocations and upon receipt of a final billing, make payment to the Utility in the agreed amount. Upon execution of this agreement by both parties hereto, the State will, by written notice, authorize the Utility to perform such work diligently and to conclude said adjustment, removal, and relocation by the stated completion date which is attached hereto in Attachment "C ". The completion date shall be extended for delays caused by events outside the Utility's control, including an event of Force Majeure, which shall include a strike, war or act of war (whether an actual declaration of war is made or not), insurrection, riot, act of public enemy, accident, fire, flood or other act of God, sabotage, or other events, interference by the State or any other party with the Utility's ability to proceed with the work, or any other event in which the Utility has exercised all due care in the prevention thereof so that the causes of other events are beyond the control and without the fault or negligence of the Utility. This agreement in its entirety consists of the following elements: Standard Utility Agreement — ROW -U -35; • Plans, Specifications, and Estimated Costs (Attachment "A "); • Accounting Method (Attachment "B "); Initial Date Initial Date TxDOT Utility Form ROW -U35 (Rev. 08/19) Page 3 • Schedule of Work (Attachment "C); • Statement Covering Contract Work — ROW -U -48 (Attachment "D "); • Utility Joint Use Acknowledgment — ROW- U -JUAA and /or Utility Installation Request — Form 1082 (Attachment "E "); • Eligibility Ratio (Attachment "F "); • Betterment Calculation and Estimate (Attachment "G "); and • Proof of Property Interest — ROW -U -1 A, ROW -U -1 B, or ROW -U -1 C (Attachment "H "). All attachments are included herein as if fully set forth. In the event it is determined that a substantial change from the statement of work contained in this agreement is required, reimbursement therefore shall be limited to costs covered by a modification or amendment of this agreement or a written change or extra work order approved by the State and the Utility. This agreement is subject to cancellation by the State at any time up to the date that work under this agreement has been authorized, and such cancellation will not create any liability on the part of the State. However, the State will review and reimburse the Utility for eligible costs incurred by the Utility in preparation of this Agreement. The State Auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this contract or indirectly through a subcontract under this contract. Acceptance of funds directly under this contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the State Auditor, under the direction of the Legislative Audit Committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. The Utility by execution of this agreement does not waive any of the rights that the Utility may have within the limits of the law. It is expressly understood that the Utility conducts the adjustment, removal, and relocation at its own risk, and that the State makes no warranties or representations regarding the existence or location of utilities currently within its right of way. Initial Date Initial Date TxDOT Utility Form ROW -U -35 (Rev. 08/19) Page 1 STANDARD UTILITY AGREEMENT U- Number: U * * * ** Project ID # A * * * * * * ** District: San Antonio County: Comal Federal Project No.: NH 2019 (797) Highway: IH 35 ROW CSJ: 0016-05-"" From: At FM 1103 Highway Project Letting Date: 03/2017 To: This Agreement by and between the State of Texas, acting by and through the Texas Transportation Commission, ( "State "), and City of Schertz - Sewer, ( "Utility "), acting by and through its duly authorized representative, shall be effective on the date of approval and execution by and on behalf of the State. WHEREAS, the State has deemed it necessary to make certain highway improvements as designated by the State and approved by the Federal Highway Administration within the limits of the highway as indicated above (the "Highway Project "); WHEREAS, the proposed Highway Project will necessitate the adjustment, removal, and /or relocation of certain facilities of the Utility as indicated in the following statement of work: Relocate approximately 605 L.F. of 8 -inch Sanitary Swewr, install 4 precast Manholes, 21.96 V.F. of precast Manholes (extra depth), reconstruct 2 manholes, abandon 582.1 L.F. of 8 inch sewer main, remove 3 sewer Manholes, 645.28 L.F. of trench excavation saefty protection, 50 L.F. of Steel casing (18in) (open cut), 32 L.F. of water pipe (PVC) (12 IN) (open cut). 19.4 C.Y. of flowable fill, In addition adjust 32 feet of 12" water main due to conflict with the proposed 8 inch sanitay sewer main.; and more specifically as shown in the Utility's plans, specifications and estimated costs, which are attached hereto as Attachment "A ". WHEREAS, the State will participate in the costs of the adjustment, removal, and relocation of certain facilities to the extent as may be eligible for State and /or Federal participation. WHEREAS, the State, upon receipt of evidence it deems sufficient, acknowledges the Utility's interest in certain lands and facilities that entitle it to reimbursement for the adjustment, removal, and relocation of certain of its facilities located upon the lands as indicated in the statement of work above. NOW, THEREFORE, BE IT AGREED: The State will pay to the Utility the costs incurred in adjustment, removal, and relocation of the Utility's facilities up to the amount said costs may be eligible for State participation. All conduct under this agreement, including but not limited to the adjustment, removal, and relocation of the facility, the development and reimbursement of costs, any environmental requirements, and retention of records will be in accordance with all applicable federal and state laws, rules and regulations, including, without limitation, the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. §§ 4601, et seq., the National Environmental Policy Act, 42 U.S.C. §§ 4321, et seq., the Buy America provisions of 23 U.S.C. § 313 and 23 CFR 635.410, as amended, Texas Transportation Code § 223.045, the Utility Relocations, Adjustments, and Reimbursements provisions of 23 CFR 645, Subpart A, and the Utility Accommodation provisions of 23 CFR 645, Subpart B. The Utility shall supply, upon request by the State, proof of compliance with the aforementioned laws, rules, regulations, and guidelines prior to the commencement of the adjustment, removal, and relocation of the facility. Initial Date Initial Date TOOT Utility Form ROW -U -35 (Rev. 08/19) Page 2 The Utility shall not commence any physical work, including without limitation site preparation, on the State's right of way or future right of way, until TxDOT provides the Utility with written authorization to proceed with the physical work upon TxDOT's completion and clearance of its environmental review of the Highway Project. Any such work by the Utility prior to TxDOT's written authorization to proceed will not be eligible for reimbursement and the Utility is responsible for entering any property within the proposed limits of the Highway Project that has not yet been acquired by TOOT. This written authorization to proceed with the physical work is in addition to the authorization to commence work outlined below. Notwithstanding the foregoing, the provisions of this paragraph are required only when TOOT has not obtained completion and clearance of its environmental review of the Highway Project prior to the execution of this Agreement by the State and the Utility. The Utility shall comply with the Buy America provisions of 23 U.S.C. § 313, 23 CFR 635.410, as amended, and the Steel and Iron Preference provisions of Texas Transportation Code § 223.045 and, when products that are composed predominately of steel and /or iron are incorporated into the permanent installation of the utility facility, use domestically manufactured products. TxDOT Form 1818 (Material Statement), along with all required attachments, must be submitted, prior to the commencement of the adjustment, removal, and relocation of the facility, as evidence of compliance with the aforementioned provisions. Failure to submit the required documentation or to comply with the Buy America, and Steel and Iron Preference requirements shall result in: (1) the Utility becoming ineligible to receive any contract or subcontract made with funds authorized under the Intermodal Surface Transportation Efficiency Act of 1991; (2) the State withholding reimbursement for the costs incurred by the Utility in the adjustment, removal, and relocation of the Utility's facilities; and (3) removal and replacement of the non- compliant products. The Utility agrees to develop relocation or adjustment costs by accumulating actual direct and related indirect costs in accordance with a work order accounting procedure prescribed by the State, or may, with the State's approval, accumulate actual direct and related indirect costs in accordance with an established accounting procedure developed by the Utility. Bills for work hereunder are to be submitted to the State not later than one (1) year after completion of the work. Failure to submit the request for final payment, in addition to all supporting documentation, within one (1) year after completion of the work may result in forfeiture of payment for said work. When requested, the State will make intermediate payments at not less than monthly intervals to the Utility when properly billed. Such payments will not exceed 90 percent (90 %) of the eligible cost as shown in each such billing. Intermediate payments shall not be construed as final payment for any items included in the intermediate payment. The State will, upon satisfactory completion of the adjustment, removal, and/or relocation and upon receipt of final billing prepared in an approved form and manner and accounting for any intermediate payments, make payment in the amount of 90 percent (90 %) of the eligible costs as shown in the final billing prior to audit and after such audit shall make an additional final payment totaling the reimbursement amount found eligible for State reimbursement. Alternatively, the State agrees to pay the Utility an agreed lump sum of $N /A as supported by the attached estimated costs. The State will, upon satisfactory completion of the adjustments, removals, and relocations and upon receipt of a final billing, make payment to the Utility in the agreed amount. Upon execution of this agreement by both parties hereto, the State will, by written notice, authorize the Utility to perform such work diligently and to conclude said adjustment, removal, and relocation by the stated completion date which is attached hereto in Attachment "C ". The completion date shall be extended for delays caused by events outside the Utility's control, including an event of Force Majeure, which shall include a strike, war or act of war (whether an actual declaration of war is made or not), insurrection, riot, act of public enemy, accident, fire, flood or other act of God, sabotage, or other events, interference by the State or any other party with the Utility's ability to proceed with the work, or any other event in which the Utility has exercised all due care in the prevention thereof so that the causes of other events are beyond the control and without the fault or negligence of the Utility_ This agreement in its entirety consists of the following elements: Standard Utility Agreement — ROW -U -35; • Plans, Specifications, and Estimated Costs (Attachment "A "); • Accounting Method (Attachment "B "); Initial Date Initial Date TxDOT Utility Form ROW -U -35 (Rev. 08/19) Page 3 • Schedule of Work (Attachment "C); • Statement Covering Contract Work — ROW -U -48 (Attachment "D "); • Utility Joint Use Acknowledgment — ROW- U -JUAA and/or Utility Installation Request — Form 1082 (Attachment "E "); • Eligibility Ratio (Attachment "F "); • Betterment Calculation and Estimate (Attachment "G "); and • Proof of Property Interest — ROW -U -1 A, ROW -U -1 B, or ROW -U -1 C (Attachment "H "). All attachments are included herein as if fully set forth. In the event it is determined that a substantial change from the statement of work contained in this agreement is required, reimbursement therefore shall be limited to costs covered by a modification or amendment of this agreement or a written change or extra work order approved by the State and the Utility. This agreement is subject to cancellation by the State at any time up to the date that work under this agreement has been authorized, and such cancellation will not create any liability on the part of the State. However, the State will review and reimburse the Utility for eligible costs incurred by the Utility in preparation of this Agreement. The State Auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this contract or indirectly through a subcontract under this contract. Acceptance of funds directly under this contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the State Auditor, under the direction of the Legislative Audit Committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. The Utility by execution of this agreement does not waive any of the rights that the Utility may have within the limits of the law. It is expressly understood that the Utility conducts the adjustment, removal, and relocation at its own risk, and that the State makes no warranties or representations regarding the existence or location of utilities currently within its right of way. Initial Date Initial Date TOOT Utility Form ROW -U -35 (Rev. 08/19) Page 4 The signatories to this agreement warrant that each has the authority to enter into this agreement on behalf of the party represented. UTILITY Utility: City of Schertz - Sewer Name of Utility By: Authorized Signature Mark Browne Print or Type Name Title: City Manager Date: Initial Date TxDOT Initial Date Utility EXECUTION RECOMMENDED: Director of TP &D (or designee), San Antonio District THE STATE OF TEXAS Executed and approved for the Texas Transportation Commission for the purpose and effect of activating and /or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By: Date: District Engineer (or designee) Form ROW -U -35 (Rev. 08/19) Page 5 Attachment "A" Plans, Specifications, and Estimated Costs All material items that must meet Buy America or Steel and Iron Preference Provision requirements must be indicated with an asterisk ( *). Initial Date Initial Date TxDOT Utility 2111110'ad (INV NVIIJ 11am9s 1N3KLS[1f(FV (119 INIOPKON EIO-1089-ZI M 'ONI ONIIA99MION9 CPdOA SINHWIsfiftiv AMIU1 10(IXI fo I I NJ DIFIMS A(DAUD N �1 S1 21Z Sf ONI �&1119� Z W Hill ida`ss8 i g.ie H ;HUH III su 1 I II III 117 HUHN,,, T 09tv ]�.Ls HNI I Moil \O, I. M ISE o$p bl �lI __' i -_ �g GII I I'I- ' I IF 61 2 IL I o I ol DNI DNM3aNIDXH UOJ 4- SNOISMU 2 Ism OR N I is Y -1 gi I iIHIM .. N' ryQI ga 11 id MIR -11 t tl.LS liT. I N d I ANA Poi iNg 5i pa� fill. 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Initial Date Initial Date TOOT Utility Form ROW -U -35 (Rev. 08/19) Page 7 Attachment "C" Schedule of Work Estimated Start Date: Work has been completed, (subject to physical work restrictions prior to the issuance of environmental clearance as required by the provisions of this agreement) Estimated Duration (days): 90 days, Work performed under a Emergency Work Authorization Estimated Completion Date: 4/15/20 Initial Date Initial Date TOOT Utility Forth ROW -U -35 (Rev. 08/19) Page 8 Attachment "D" Statement Covering Contract Work (ROW —U -48) (ROW— U -48 -1, if applicable) Initial Date Initial Date TOOT Utility U- Number: U15618 ROW CSJ Number: 0016 -05 124 District: San Antonio County: Comal Highway No.: IH 35 Federal Project No.: NH 2019 (507) 1, Julie Gohlke , a duly authorized and qualified representative of City of Schertz - Sewer , hereinafter referred to as owner, am fully cognizant of the facts and make the following statements in respect to work which will or may be done on a contract basis as it appears in the estimate to which this statement is attached. It is more economical and /or expedient for Owner to contract this adjustment, or Owner is not adequately staffed or equipped to perform the necessary work on this project with its own forces to the extent as indicate on the estimate. Procedure to be Used in Contracting Work ® A. Solicitation for bids is to be accomplished through open advertising and contract is to be awarded to the lowest qualified bidder who submits a proposal in conformity with the requirements and specificatio s for the work to be performed. Associated bid tabulations will be provided to the State. cep Q ❑ S. Solicitation for bids is to be accomplished by circulating to a list of pre - qualified contractors or known qualified contractors and such contract is to be awarded to the lowest qualified bidder who submits a proposal in conformity with the requirements and specifications for the work to be performed. Associated bid tabulations will be provided to the State. Such presently known contractors are listed below: 4. ❑ C. The work is to be performed under an existing continuing contract under which certain work is regularly performed for Owner and under which the lowest available costs are developed. The existing continuing contract will be made available to the State for review at a location mutually acceptable to the Owner and the State. If only part of the contract work is to be done under an existing contract, give detailed information by attachment hereto. ❑ D The utility proposes to contract outside the foregoing requirements and therefore evidence in support of its proposal is attached to the estimate in order to obtain the concurrence of the State, and the Federal Highway Administration Division Engineer where applicable, prior to taking action thereon (approval of the agreement shall be considered as approval of such proposal). E. The utility plans and specifications, with the consent of the State, will be included in the construction contract awarded by the State. In the best interest of both the State and the Owner, the Owner requests the State to include the plans and specifications for this work in the general contract for construction of Highway in this area, so that the work can be coordinated with the other construction operations; and the construction contract is to be awarded by the State to the lowest qualified bidder who submits a proposal in conformity with the requirements and specifications for the work to be performed. If this option is chosen, attach form ROW- U -48 -1, the terms of which are incorporated herein by reference. C' Z8 D o Sign ture C Date Title *U48* $$ °o h N oG ' SS H o SC QSS $ 00 G O'O ^NCh • C C 0000000,0000 C t- O O:O O N O�N 1 O O M O O o o O o O O O ' .8. 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N c C C L ii�UU X aOUV /LLB oO Q O q) Nw N V O> O O Cl a) (L) V O 00 vU� i a) E a) m N 03 m:3 o 0 M vi O ���H��UULL •• $ c' i 2 CDC)o000OO;a x z o 0 0 -' - c O o e c o c - c c o!o�o 0 o.c to o o �,O O O O c T 4 C6 e- � N� C yG— tJ M - ti ry N rJ ^I rA r.J r Ni NIN t~^. rs M iM '`N M O r r r r N co M M r U _G as m e: EW" I � Y _ � - Forth ROW -U -35 (Rev. 08/19) Page 9 Attachment "E" Utility Joint Use Acknowledgment — (ROVE` -U -JUAA) and/or Utility Installation Request — (Form 1082) ❑ Utility Joint Use Acknowledgment (ROW —U —JUAA) ® Utility Installation Review /Permit Number: SAT20190301170415 Initial Date Initial Date TOOT Utility Form ROW -U -35 (Rev. 08/19) Page 10 Attachment "F" Eligibility Ratio Eligibility Ratio established: 100 % ❑ Non - interstate Highway (Calculation attached) ® Interstate Highway Initial Date Initial Date TxDOT Utility Form ROW -U -35 (Rev. 08/19) Page 11 Attachment "G" Betterment Calculation and Estimate ❑ Elective Betterment Ratio established: 0 % (Calculation attached) ❑ Forced Betterment (Provide supporting documentation) ® Not Applicable Initial Date Initial Date TxDOT Utility Form ROW -U -35 (Rev. 08/19) Page 12 Attachment "H" Proof of Property Interest ❑ Supporting documentation of compensable property interest that establishes reimbursement eligibility as referenced in Texas Transportation Code §203.092. ❑ Property interest documented through applicable affidavits and required attachments. ❑ ROW -U -1A and ❑ ROW-U-113 Or ❑ ROW -U -1 C ® The roadway improvement project is designated as an Interstate Highway project; therefore, no supporting documentation of compensable interest is required. Initial Date Initial Date TxDOT Utility Print Agenda Item CITY COUNCIL MEMORANDUM Page 1 of 2 Agenda No. 13. City Council September 22, 2020 Meeting: Department: City Secretary Subject: Resolution No. 20-R -107 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas, authorizing an amended Development Agreement, Project/ Financing Plan, and Interlocal Agreement for the Tax Increment Reinvestment Zone #2 (TIRZ) #2 (Sedona/Crossvine). (M. Browne/B. James) BACKGROUND The Tax Increment Reinvestment Zone #2 (T1RZ #2 Sedona/Crossvine) was created in 2006 by the City of Schertz. A TIRZ is a mechanism to jumpstart development and ultimately generate new tax revenue. It builds needed public infrastructure in areas lacking adequate development to attract businesses; encourages development, thereby increasing property values and long -term property tax collections; and reduces the cost of private development by providing reimbursement for eligible public improvements. A TIRZ uses improvements to spur development and raise property values within a zone. Then it funnels some tax collected on that increase in value into a fund that pays for the improvements. In additional to the City of Schertz, Bexar County and the San Antonio River Authority (SARA) participate in the TIRZ. The TIRZ #2 was created at the request of the owner /developer of the Sedona Master Planned Community. As part of the creation a Project and Finance Plan; Interlocal Agreement; and Development Agreement were approved. Only one phase of the development was constructed, the neighborhood known as Sedona off of Lower Seguin Road and Hollering Vine. With the economic downturn in the late 2000s the project was sold to the current developer, Schertz 1518, Ltd. Initially the TIRZ included about 825 acres, was to run through 2027 and would generate a maximum reimbursement to the developer of $45,000,000. Homes values were estimated to be between $160,000 and $240,000 and the average market value of those homes in 2018 was $212,793. The value of home that have been constructed since then are conservatively estimated at between $250,000 and $350,000. The new average market value in 2018 of these newer homes was $321,538. The Project and Finance Plan details the improvements that will be made and estimates the revenue to be generated to pay for /reimburse the developer for the improvements. It also outlines the property to be included in the zone. The Interlocal Agreement between the City, Bexar County, SARA and the TIRZ outlines the terms of the TIRZ and the agreement between the entities to participate in the TIRZ (and includes the Project and Finance Plan). It also outlines the percent of increased revenue to be contributed to the TIRZ. The Development Agreement is between the participating entities and the developer outlining the obligations of the developer, Schertz 1518, Ltd. and the entities. In 2015, as a result of the economic downturn the developer sought and the City approved Ordinance 15-R-80 amending the Development Agreement that extended the term of the TIRZ and increased the maximum contribution. This occurred also as a result of the rezoning and rebranding of the development as The Crossvine. The rezoning significantly increased the amount of open space and transformed the nature of the development. Prior to seeking County approval, a significant issue arose with regard to land use conflicts with JBSA Randolph. A large section of the TIRZ that was zoned for large lot single family development was in the Accident Potential Zone II (APZ II) and the recently updated Joint Land Use Study (JLUS) no longer recommended large residential lots in the area. As a result, the developer let lapse an option to purchase and develop this land which then allowed the owner to enter into a conservation easement thus eliminating the land use conflict. This stalled the approval process and necessitated updating the Project and Finance Plans. The proposed amendments increase the maximum reimbursement to $66,000,000 as a function of the increase in the cost of improvements and revenue generated by the zone. It also increases the size of the TIRZ to approximately 948 https: / /agendaquick .schertz.com / print_ag rnemo.cf n ?seq= 810 &rev num =0 &mode = Exte... 11/24/2020 Print Agenda Item Page 2 of 2 acres. It extends the TIRZ to the end of 2041. Per these amendments, the City's contribution remains at 100 %, SARA's remains at 55% and Bexar County's is proposed to increase from 58% to 89 %. It also includes the maximum portion of the $66,000,000 each entity will contribute - City of Schertz $47,190,000; SARA $990,000; and Bexar County $17,920,000. Other amendments include: adjusting the developer's contribution to the Fire Station to $500,000 and indicating the City can use any of those funds for other purposes, the developer agreeing that the tract of land on Ware Seguin Road dedicated to the City for a Fire Station can be used for any purpose. Finally, the developer is required to dedicate and additional 1 acre tract next to the current Fire Station on Lower Seguin Road to the City. Other changes have been made as outlined in the attachment, but one of note is that the developer must impose the architectural restrictions that were in the zoning but can no longer be enforced by the City due to changes in State Law. Finally, a significant factor in increasing the term of the agreement is to account for the substantial number of exemptions in the area. In 2015 the assessed value (the part that pays property taxes) was 92% of the determined market value. As of 2019 that had declined to 76 %. This means the TIRZ is not generating the anticipated revenue to be paid to the developer for the cost of improvements. By extending the term, it allows more time for the developer to potentially be reimbursed, though there is no guarantee of that. The TIRZ Board unanimously recommended approval of the amendments at their August 21, 2020, meeting. GOAL Provide for the continued high quality of development in the TIRZ by responding to changing economic and land use conflicts by amending the documents. COMMUNITY BENEFIT The approval of the amendments allows for the orderly and high quality development of the area. It also provides additional land near Fire Station #3 that can be used for an expansion of City facilities and allows the tract of land owned by the City and dedicated by the developer to be used for any purpose the City desires. SUMMARY OF RECOMMENDED ACTION Approval of Resolution 20 -R -107 authorizing the amendments to the Development Agreement, Project/Financing Plan and Interlocal Agreements for TIRZ #2. FISCAL IMPACT The amendment increases the maximum City contribution until the end of 2041 to $47,190,000, but only if the TIRZ generates that amount of revenue. RECOMMENDATION Approval of Resolution 20 -R -107. Attachments Resolution 20 -R -107 Change Overview Project Financing Plan Development Agreement Interlocal Agreement Crossvine Update h4s://agendaquick.schertz.com/print_ag_jnemo.cfin?seq=8 I O&rev num= 0&mode= Exte... 11/24/2020