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Title
Developer Agreement Final Reconciliation for Greenway Trails in the negative amount of $504,633.34 (This item was tabled at the January 7, 2020 Council meeting.)
Presenter
Gabriel Johnson, Director of Public Works
Recommended Action
Approve
Analysis
In order to serve the South Sector, the City established a contract for the purchase of treated water from Mansfield and funded and built a water transmission line that brings water from the Mansfield water treatment plant to the northwestern corner of the South Sector just east of SH 360 and south of the Ellis-Tarrant County lines. On April 17, 2018, (18-7694) the City Council approved a Developer Agreement with WM SUB GT, LP providing a reimbursement of actual costs not to exceed $1,500,000 to the Developer for over sizing of the standard 12" line to 18" and 24" lines. This provided water to the annexed area of the city located east of SH 360 and north of US 287.
Original cost for the betterments was a conservative estimate that included contingency. Work has now been completed and the Developer is requesting reimbursement in the amount of $995,366.66.
Since the original developer agreement was signed, WM SUB GT, LP reassigned the right for reimbursement to Forestor (USA) Real Estate Group, Inc. without notifying the City. They in turn reassigned all rights, titles, interests, powers and duties to D. R. Horton. D.R. Horton will receive the reimbursement directly from the City. Reassignment contact was prepared by City legal staff and executed.
Financial Consideration
No additional funding is required for this Final Reconciliation Change Order.
Funding for the developer agreement with WM SUB GT, LP for the installation of a portion of the South Sector Water Transmission Line, in the amount of $995,366.66 for Developer Reimbursement of Over Sizing Costs and Impact fee Credits for a Basic 12" Water Line, is available in the Water Capital Projects Fund (500592) WO #01810703 (Southwest Sector Trans Line) PO 316769
Remaining funds in the amount of $504,633.34 will be released to the unobligated Water Capital Projects Fund (500592).