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Item 6H6H -1 CITY OF SOUTHLAKE MEMORANDUM August 20, 2013 To: Shana Yelverton, City Manager From: Kari Happold, Deputy Director of Community Services Subject: Ordinance No. 999, 2nd Reading, Abandon a pedestrian and equestrian easement located along the southern boundary of Lots 10 through 17, Block 1, Fox Hollow Addition as shown on the plat dated July 5, 1996. PUBLIC HEARING Action Requested: Approve Ordinance No. 999, abandoning a pedestrian and equestrian easement located along the southern boundary of Lots 10 thru 17, Block 1, Fox Hollow Addition as shown on the plat dated July 5, 1996. Background Information: This item was originally presented as Ordinance No. 999 at the May 10, 2011 City Council meeting for Public Hearing, where the item was TABLED to a future meeting, date to -be -determined (TBD). The table action was to allow further investigation by staff of the issues concerning the use of the trail. Notification of affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition have been mailed. The Developer of the Fox Hollow Addition dedicated on a plat a ten foot (10') wide strip of land as an easement/trail across the south boundary of Lots 10-16 and across the east half of the south boundary of Lot 17. This easement was to be utilized exclusively for the improvement and utilization as an equestrian trail. The City agreed to maintain the trail for equestrian use only. The Developer and City agreed that in the future, if said trail becomes obsolete due to lack of availability of easement across adjoining properties, the City will formally abandon said easement and the property within said easement shall revert to the property owner, fee simple. The property to be abandoned and quit claimed is .26 acres, as more particularly described and shown in Exhibit "A" attached. City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 6H - 2 Shana Yelverton, City Manager City Council Meeting Date — August 20, 2013 Page 2 In May, Community Services staff met with Ride for Pride, the equestrian organization that previously desired equestrian access to the trail. The users of this trail have not used it in over 3 years. Ride for Pride has been trying to acquire an easement from Countryside Bible Church, which is the area they must cross prior to accessing the City dedicated easement. Ride for Pride is still trying to acquire the easement. Ride for Pride has also offered to clean up the area with a volunteer 4-H group as large equipment can no longer access this area. Several residents have responded that they would like the easement to be abandoned so they have control of the area and make improvements. One homeowner has moved his fence across the easement. Financial Considerations: There are no costs to the City other than the normal filing fees to record the Quit Claim at Tarrant County Courthouse. Strategic Link: This project is aligned with the Strategic Focus Area of Infrastructure and meets the Corporate Objectives Improve performance of deliver and operational processes. Citizen Input/ Board Review: Notice of pending City Council action of 2nd Reading and Public Hearing of Ordinance No. 999 at May 7, 2013 meeting was mailed to affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition May 13, 2013 and advertised on the City's webpage. Notice of City Council action at May 10, 2011 meeting to Table item and continue Public Hearing to a future meeting, date to -be - determined (TBD) was mailed to affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition May 11, 2011. Notice of pending City Council action at May 3, 2011 meeting to Table item and continue Public Hearing to May 10, 2011 was mailed to affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition April 27, 2011. Notice of pending City Council action at April 19, 2011 meeting to Table item and continue Public Hearing to May 3, 2011 was mailed to affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition April 12, 2011. City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 6H - 3 Shana Yelverton, City Manager City Council Meeting Date — August 20, 2013 Page 2 Initial notice of pending City Council action was mailed to affected property owners of Lots 10 through 17, Block 1 of Fox Hollow Addition March 31, 2011. City Council approved (6-0) 1st Reading, Ordinance No. 999 at their April 5, 2011 meeting. Legal Review: This is the standard ordinance and quit claim deed, originally drafted by the City Attorney. Alternatives: Alternatives may include: ■ City Council approval as presented ■ City Council approval with modifications ■ City Council decision not to approve Supporting Documents: Exhibit A —Plat Ordinance No. 999 Quit Claim document Developer's Agreement Staff Recommendation: Approve Ordinance No. 999, 2nd Reading and Public Hearing, to abandon a pedestrian and equestrian easement located along the southern boundary of Lots 10 through 17, Block 1, Fox Hollow Addition as shown on the plat dated July 5, 1996. City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork F- w �R. Ml w-' 0 1 i Aln ,04'1 Oli 10- ZE 3.00.60.W S 6H -5 ORDINANCE NO. 999 AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS, ABANDONING A PEDESTRIAN AND EQUESTRIAN EASEMENT LOCATED ALONG THE SOUTHERN BOUNDARY OF LOTS 10 THROUGH 17, BLOCK 1, FOX HOLLOW ADDITION, AN ADDITION TO THE CITY OF SOUTHLAKE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake, Texas, is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, on May 31, 1996, the City of Southlake entered into a Developer Agreement with Southlake-Fox Hollow, Ltd., developer, regarding the installation of certain community facilities located the Fox Hollow Addition to the City ("Developer Agreement"); and WHEREAS, the Developer Agreement required the dedication of a certain ten - foot wide easement for a pedestrian and equestrian trail ("Easement") to the City located across the southern boundary of Lots 10 through 17, Block 1 of the Fox Hollow Addition; and WHEREAS, the Developer Agreement further provided that if the Easement were to become obsolete due to the lack of availability of easements across adjoining properties, the City will formally abandon the Easement and allow the property to revert to the underlying property owner in fee simple; and WHEREAS, the City Council of the City of Southlake, after careful study and consideration, has determined that the Easement has become obsolete as defined by the Developer Agreement and is not being used by, nor useful or convenient to the public in general, and therefore constitutes a public charge without a corresponding public benefit; and WHEREAS, the City Council is of the opinion and finds that the said Easement is not needed for public use and should be vacated and abandoned to the underlying fee interest owner. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. That the City of Southlake hereby vacates and abandons the ten -foot wide Easement located along the southern boundary of Lots 10 through 17, Block 1, Fox Hollow Addition, as shown on the plat dated July 5, 1996 and filed in Cabinet A, Slide 2969 of the real property records of Tarrant County, Texas, which plat is attached N:\Boards\City Council\2013\08-20\FINALS\Item 6H - Ord No. 999 2nd Read and PH -Fox Hollow Esmnt - KH - NO AUDIO PPT REQUIRED THIS ITEM\Item 6H - Memo Attachment 2 - Ord No. 999 Fox Hollow.docx City Council Meeting — August 20, 2013 Page 1 of 3 ■ hereto as Exhibit "A" and made a part hereof for all purposes, the same as if fully copied herein, and the same shall revert in fee simple to the owners of the underlying fee interest in the property or properties. SECTION 2. That said Easement is abandoned, vacated and closed insofar as the right, title and interest of the public to such Easement are concerned, provided, however, if any utilities or facilities are presently located within said Easement, the City reserves an easement and the right to continue to use and maintain such facilities. SECTION 3. That upon passage hereof, the City Secretary is authorized and directed to prepare a certified copy of this ordinance and furnish the same to the owners of the underlying fee properties, and to record this ordinance in the real property records of Tarrant County, Texas. SECTION 4. This ordinance shall take effect immediately from and after its passage as provided by law. PASSED AND APPROVED on the 1st reading the day of 2013. JOHN TERRELL MAYOR ATTEST: ALICIA RICHARDSON, TRMC CITY SECRETARY PASSED AND APPROVED on the 2nd reading the day of , 2013. JOHN TERRELL MAYOR N:\Boards\City Council\2013\08-20\FINALS\Item 6H - Ord No. 999 2nd Read and PH -Fox Hollow Esmnt - KH - NO AUDIO PPT REQUIRED THIS ITEM\Item 6H - Memo Attachment 2 - Ord No. 999 Fox Hollow.docx City Council Meeting — August 20, 2013 Page 2 of 3 6H - 7 ATTEST: ALICIA RICHARDSON, TRMC CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: CITY ATTORNEY N:\Boards\City Council\2013\08-20\FINALS\Item 6H - Ord No. 999 2nd Read and PH -Fox Hollow Esmnt - KH - NO AUDIO PPT REQUIRED THIS ITEM\Item 6H - Memo Attachment 2 - Ord No. 999 Fox Hollow.docx City Council Meeting — August 20, 2013 Page 3 of 3 FOX HOLLOW ADDITION DEVELOPER AGREEMENT An Agreement between the City of Southlake, Texas, hereinafter referred to as the "City," and the undersigned Developer, hereinafter referred to as the "Developer," of the Fox Hollow Addition, to the City of Southlake, Tarrant County, Texas, hereinafter referred to as the "Addition," for the installation of certain community facilities located therein, and to provide city services thereto. It is understood by and between the parties that this Agreement is applicable to the 19 lots contained within the Fox Hollow Addition and to the off -site improvements necessary to support the Addition. The Addition consists of 18 single family residential lots and one commercial lot. 1. GENERAL REQUIREMENTS: A. It is agreed and understood by the parties hereto that the Developer shall employ a civil engineer licensed to practice in the State of Texas for the design and preparation of the plans and specifications for the construction of all facilities covered by this Agreement. B. Since the Developer is prepared to develop the Addition as rapidly as possible and is desirous of selling lots to builders and having residential building activity begin as quickly as possible and the City is desirous of having the subdivision completed as rapidly as possible, the City agrees to release 10% of the lots after installation of the water and sewer mains. Framing shall not commence until water quality is approved by the City and all appropriate Fire Code requirements are satisfied, and street signs with street names are in place, Temporary all-weather metal signs securely fastened in the ground are acceptable until permanent street signs are installed. The Developer recognizes that the remaining building permits or Certificates of Occupancy for residential dwellings will not be issued until the supporting public works infrastructure including permanent street signs with block numbers and regulatory signs within the Addition have been accepted by the City. This will serve as an incentive to the Developer to see that all remaining items are completed. C. The Developer will present to the City either a cash escrow, letters of credit, performance bond or payment bond acceptable to the City guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all of the facilities to be constructed by the Developer, and providing for payment to the City of such amounts, up to the total remaining amounts required for the completion of the Addition if the Developer fails to complete the work within two (2) years of the signing of this Agreement between the City and Developer. All bonds shall be issued by a Best rated bonding company. All letters of credit must meet the Requirements for Irrevocable Letter of Credit attached hereto and incorporated herein. 6H - 9 The value of the performance bond, letters of credit or cash escrow will reduce at a rate consistent with the amount of work that has been completed by the Developer and accepted by the City. Each request for reduction or payment of escrow funds must be accompanied by lien releases) executed by all subcontractors and/or suppliers prior to the release of escrow funds or reduction in value of the account. Performance and payment bond, letters of credit or cash escrow from the prime contractor(s) or other entity reasonably acceptable to City, hereinafter referred to as Contractor, will be acceptable in lieu of Developer's obligations specified above. D. The Developer agrees to furnish to the City maintenance bonds, letters of credit or cash escrow amounting to 20% of the cost of construction of underground utilities and 50% of the construction cost for paving, These maintenance bonds, letter of credit or cash escrow will be for a period of two (2) years and will be issued prior to the final City acceptance of the subdivision. The maintenance bonds, letters of credit or cash escrow will be supplied to the City by the contractors performing the work, and the City will be named as the beneficiary if the contractors fail to perform any required maintenance. E. Until the performance and payment bonds, letters of credit or cash escrow required in Paragraph C has been furnished as required, no approval of work on or in the Addition shall be given by City and no work shall be initiated on or in said. Addition by Developer, save and except as provided above. F, It is further agreed and understood by the parties hereto that upon acceptance by City, title to all facilities and improvements mentioned hereinabove shall be vested in the City and Developer hereby relinquishes any right, title, or interest in and to said facilities or any part thereof. It is further understood and agreed that until the City accepts such improvements, City shall have no liability or responsibility in connection with any such facilities. Acceptance of the facilities shall occur at such time that City, through its City Manager or his duly authorized representative, provides Developer with a written acknowledgment that all facilities are complete, have been inspected and approved and are being accepted by the City. G. On all public facilities included in this agreement for which Developer awards his own construction contract, Developer agrees to the following procedure: Developer agrees to pay the following: a. Inspection fees equal to three percent (3%) of the cost of the water, street, drainage and sanitary sewer facilities, on all facilities included in this agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; -2- 6H - 10 b. Administrative Processing Fee equal to two percent (21/1o) of the cost of water, street, drainage and sanitary sewer facilities, on all facilities included in this Agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; c. Trench testing (95% Standard); d. The additional charge for inspections during Saturday, Sunday, holidays, and after normal working hours; e. Any charges for retesting as a result of failed tests; f.. All gradation tests required to insure proper cement and/or time stabilization. 2. The City agrees to bear the expense of: a. All nuclear density tests on the roadway subgrade (95% Standard); b. Technicians time for preparing concrete cylinders; and C. Concrete cylinder tests and concrete coring samples. The City can delay connection of buildings to service lines or water mains constructed under this Agreement until said water mains and service lines have been completed to the satisfaction of and accepted by the City. 1l. The Developer and any third party, independent entity engaged in the construction of houses, hereinafter referred to as Builder will be responsible for mowing all grass and weeds and otherwise reasonably maintaining the aesthetics of all land and lots in said subdivision which have not been sold to third parties. After fifteen (15) days written notice, should the Developer or Builder fail in this responsibility, the City may contract for this service and bill the Developer or Builder for reasonable costs. Should such cost retrain unpaid for 120 days after notice, the City can file a lien on such property so maintained. Any guarantee of payment instrument (Performance Bond, Letter of Credit, etc.) submitted by the Developer or Contractor on a form other than the one which has been previously approved by the City as "acceptable" shall be submitted to the City Attorney for the City and this Agreement shall not be considered in effect until such City Attorney has approved the instrument. Approval by the City shall not be unreasonably withheld or delayed. 6H - 11 Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that the City, through the City Manager, shall retain the right to reject any surety company as a surety for any work under this or any other Developer's Agreement within the City of Southlake regardless of such company's authorization to do business in Texas. Approval by the City shal l not be unreasonably withheld or delayed. II. f'ACILITIES: A. ON SITE WATER: The Developer hereby agrees to install water facilities to service lots as shown on the final plat of the Addition. Water facilities will be installed in accordance with plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in accordance with Ordinance No. 170 and shall be responsible for all construction costs, materials and engineering. In the event that certain water lines are to be oversized because of City requirements, the City will reimburse the Developer for the oversize cost greater than the cost of an 8" line. Additionally, the City agrees to provide temporary water service at Developer's request and expense, for construction, testing and irrigation purposes only, to individual lots during the construction of homes, even though sanitary sewer service may not be available to the homes. B. DRAINAGE: Developer hereby agrees to construct the necessary drainage facilities within the Addition. These facilities shall be in accordance with the plans and specifications to be prepared by Developer's engineers, released by the City Engineer, and made part of the final plat as approved by the City Council. The Developer hereby agrees to fully comply with all EPA requirements relating to the planning, permitting and management of storm water which may be in force at the time that development proposals are being presented for approval by the City. The Developer hereby agrees to comply with all provisions of the Texas Water Code. C. LAW COMPLIANCE: Developer hereby agrees to comply with all federal, state, and local laws that are applicable to development of this Addition. D. STREETS: The street construction in the Addition shall conform to the requirements in Ordinance No. 217. Streets will be installed in accordance with plans and -4- 6H - 12 specifications to be prepared by the Developer's engineer and released by the City Engineer. 2. The Developer will be responsible for: a) Installation and two year operation cost of street lights, which is payable to the City prior to final acceptance of the Addition; b) Installation of all street signs designating the names of the streets inside the subdivision, said signs to be of a type, size, color and design standard generally employed by the Developer and approved by the City in accordance with City ordinances: c) Installation of all regulatory signs recommended by the Manual on Uniform Traffic Control Devices and as directed by the Director of Public Works. It is understood that Developer may put in signage having unique architectural features, however, should the signs be moved or destroyed by any means the City is only responsible for replacement of standard signage. 3. All street improvements will be subject to inspection and approval by the City. No work will begin on any street included herein prior to complying with the requirements contained elsewhere in this Agreement. All water, sanitary sewer, and storm drainage utilities which are anticipated to be installed within the street or within the street right-of-way will be completed prior to the commencement of street construction on the specific section of street in which the utility improvements have been placed or for which they are programmed. It is understood by and between. the Developer and the City that this requirement is aimed at substantial compliance with the majority of the pre -planned facilities. It is understood that in every construction project a decision later ;may be made to realign a line or service which may occur after construction has commenced. The Developer hereby agrees to advise the City Director of Public Works as quickly as possible when such a need has been identified and to work cooperatively with the City to make such utility change in a manner that will be least disruptive to street construction or stability. E. N-SITE SANITARY SEWER FACILITIES; The Developer hereby agrees to install sanitary sewerage collection facilities to service lots as shown on the final plat of the Addition. Sanitary sewer facilities will be installed in accordance with the plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in compliance with all applicable city ordinances, regulations and codes and shall be responsible for all construction costs, materials and engineering. The Developer understands that City Sanitary Service does not -5- 6H - 13 currently exist in the area. Any interim pumping of waste will be at the expense of the Developer. F. EROSION CONTROL: During construction of the Addition and after the streets have been installed, the Developer agrees to keep the streets free from soil build-up. The Developer agrees to use soil control measures such as hay bales, silt screening, hydromulch, etc., to prevent soil erosion. It will be the Developer's responsibility to present to the Director of Public Works a soil control development plan that will be implemented for this subdivision. When, in the opinion of the Director of Public Works, there is sufficient soil build-up on the streets or other drainage areas and notification has been given to the Developer, the Developer will have seventy-two (72) hours to clear the soi 1 from the streets or affected areas. If the Developer does not remove the soil from the street within 72 hours, the City may cause the soil to be removed either by contract or City forces and place the soil within the Addition at the Developer's expense. All expenses must be paid to the City prior to acceptance of the Addition. G. AMENITIES: It is understood by and between the City and Developer that the Developer shall dedicate on a plat a ten -foot (10') wide strip of land as an easement/trail across the south boundary of Lots 10-16 and across the east half of the south boundary of Lot 17 This easement shall be utilized exclusively for the improvement and utilization as an Equestrian Trail. The developer agrees to construct a three -rail wood fence along the north side of said easement. The City agrees to accept responsibility for the construction and maintenance of said trail, including the fencing of said trail other than that fencing agreed to be installed by Developer. Additionally, the City will restrict the use of this easementitrail from bicycles, trail bikes, motorcycles, "four wheelers" and any other similar vehicles. , Any lot within the Addition which abuts or contains the Equestrian/Pedestrian Easement shall have the right to construct a gate so that such lot shall have direct access to said Easement. The control and operation of said gate shall be the sole responsibility of the homeowner of property owner for whom said is constructed. Developer and City agree that in the future, if said trail becomes absolute due to the lack of availability of easements across adjoining properties, the City will formally abandon said easement and the property within said easement shall revert to the property owner, fee simple. The Developer may also incorporate specialty signs and accessory facilities within the Addition and/or within the easement, whose maintenance shall be the responsibility of the Developer. M 6H - 14 H. LJSF, OF PUBLIC RIGHT-OF-WAI': It is further understood by and between the City and Developer that the Developer may provide unique amenities within public right-of-way, such as landscaping, irrigation, lighting, signage, etc., for the enhancement of the Addition. The Developer agrees to maintain these amenities until such responsibility is turned over to a homeowners association. The Developer and his successors and assigns understand that the City shall not be responsible for the replacement of these amenities under any circumstances and further agrees to indemnify and hold harmless the City from any and all damages, loss or liability of any kind whatsoever by reason of injury to property or third person occasioned by its use of the public right-of-way with regard to these improvements and the Developer shall, at his own cost and expense, defend and protect City against all such claims and demands. 1. START OF CONSTRUCTION: Before the construction of the streets, and the water, sewer, or drainage facilities can begin, the following must take place: 1. Approved payment and performance bonds must be submitted to the City in the name of the City prior to the commencement of any work. 2. At least six (6) sets of construction plans stamped "Released for Construction" by the City Engineer must be submitted. All fees required to be paid to the City. Developer's Agreement executed. The Developer, or Contractor shall furnish to the City a policy of general liability insurance, naming the City as co-insured, prior to commencement of any work. 6. A pre -construction meeting between Developer and City is required. Developer or contractor shall furnish to the City a list of all subcontractors and suppliers, which will be providing greater than a $1,000 value to the Addition. III. GENERALPROVISIONS: A. Developer covenants and agrees to and does hereby fully indemnify, hold harmless and defend the City, its officers, agents, servants and employees, from all claims, suits or causes of action of any nature whatsoever, whether real or asserted, brought -7- 6H - 15 for or on account of any injuries or damages to persons or property, including death, resulting from or in any way connected with the agreement or the construction of the improvements or facilities described herein; which indemnity, shall terminate upon acceptance by the City of such improvements or facilities; and in addition, the Developer covenants to indemnify, hold harmless and defend the City, its officers, agents, servants and employees, from and against any and all claims, suits or causes of action of any nature whatsoever, brought for or on account of injuries or damages to persons or property, including death, resulting from any failure to properly safeguard the work, or on account of any act, intentional or otherwise, neglect or misconduct of the Developer, its contractors, subcontractors, agents, servants or employees, which indemnity, shall terminate upon acceptance by the City of such improvements or facilities. B. Venue of any action brought hereunder shall be in Fort Worth, Tarrant County, Texas. C. Approval by the City Engineer or other City employee of any plans, designs or specifications submitted by the Developer pursuant to this agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, his engineer, employees, officers or agents for the accuracy and competency of their design and specifications. Such approval shall not be deemed to be an assumption of such responsibility and liability by the City for any defect in the design and specifications prepared by the consulting engineer, his officers, agents, servants or employees, it being the intent of the parties that approval by the City Engineer signifies the City's approval on only the general design concept of the improvements to be constructed. In this connection, the Developer shall for a period of two (2) years after the acceptance by the City of Southlake of the completed construction project, indemnify and hold harmless the City, its officers, agents, servants and employees, fzom any loss, damage, liability or expense on account of damage to property and injuries, including death, to any and all persons which may arise out of any defect, deficiency or negligence of the engineer's designs and specifications incorporated into any improvements constructed in accordance therewith, and the Developer shall defend at his own expense any suits or other proceedings brought against the City, its officers, agents, servants or employees, or any of them, on account thereof, to pay all expenses and satisfy all judgement which may be incurred by or rendered against them or any of them in connection herewith. D. This agreement or any part thereof or any interest herein, unless specifically agreed to herein shall not be assigned by the Developer without the express written consent of the City Manager, which shall not be unreasonably withheld or delayed. E. On all facilities included in this agreement for which the Developer awards his own construction contract, the Developer agrees to employ a construction contractor who 10 6H - 16 is approved by the City, and whose approval shall not be unreasonably withheld or delayed, said contractor to meet City and statutory requirements for being insured, licensed and bonded to do work in public streets and to be qualified in all respects to bid on public streets and to be qualified in all respects to bid on public projects of a similar nature. F. Work performed under the agreement shall be completed within two (2) years from the date thereof. In the event the work is not completed within the two (2) year period, the City may, at its election., draw on the performance bond, letter of credit or other security provided by Developer and complete such work at Developer's expense; provided, however, that if the construction under this agreement shall have started within the two (2) year period, the City may agree to renew the agreement with such renewed agreement to be in compliance with the City policies in effect at that time. G. The City is an exempt organization under Section 151,309, Tax Code, and the facilities constructed under this Agreement will be dedicated to public use and accepted by the City upon acknowledgement by the City of completion under Paragraph I.F. L The purchase of tangible personal property, other than machinery or equipment and its accessories, repair, and replacement parts, for use in the performance of this Agreement is, therefore, exempt from taxation under Chapter 151, Tax code, if the tangible property is: a. necessary and essential for the performance of the Agreement; and b, completely consumed at the job site. 2. The purchase of a taxable service for use in the performance of this Agreement is exempt if the service is performed at the job site and if a. this Agreement expressly requires the specific service to be provided or purchased by the person performing the Agreement; or b, the service is integral to the performance of the Agreement. IV. OTHER ISSUES: A_ OFF -SITE WATER: #nn,;bw Water facilities will be installed in accordance with plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the M 6H - 17 Developer agrees to complete this installation in accordance with Ordinance No. 170 and shall be responsible for all construction costs, materials and engineering. In the event that certain water lines are to be oversized because of City requirements, the City will reimburse the Developer for the oversize cost. B. PARK FEES: The Developer agrees to dedicate, and the City agrees to accept the ten foot (10') equestrian easement outlined in Section II-G herein, plus construct a three -rail wood fence along the north side of said trail, in lieu of park fees. However, if the cost to construct the fence is less than the required Park Fees, the Developer will pay the difference. C. TREE PRESERVATION ORDINANCE: All construction activities shall meet the requirements of the Tree preservation Ordinance 595. SIGNED AND EFFECTIVE on the date last set forth below. CITY OF SOUTHLAKE, TEXAS By: ary Fiekes, Mayor DEVELOPER: Southlake-Fox Hollow Ltd By: q�V � C,h � f Title: C 1vi,eA (Ya /I f Nf�e Address S �av Date: 3 -3 - -10- 6H - 18 ATTE,sT: -11- 6H - 19 REQUIREMENTS FOR IRREVOCABLE LETTER OF CREDIT The Letter of Credit (L of C) must have a duration of at least one year. The L of C may be substituted for utility security deposits exceeding $10,000.00. The City reserves the right to specify the face amount of the letter of credit. The L of C must be issued by an FDIC insured bank in a form acceptable to the City of Southlake. The City reserves the right to approve/disapprove the bank issuing the Letter of Credit. 4. The L of C must be issued by a bank that has a minimum capital ratio of six (6%) percent, and has been profitable for each of the last two consecutive }rears. The customer must provide the City with supporting financial information on the bank to allow the City to ascertain requirements are met. Suitable financial information would be the previous two (2) years December 31 Call Reports submitted to the FDIC and audited financial statements, 6. Partial drawings against L of C must be permitted. The City must be able to draft on sight with proof of amount owed. The customer pays any and all fees associated with. obtaining L of C. 9. Expiring letter of credit must be replaced by substitute letters of credit at least 30 days prior to the expiration date on the L of C held by the City. C. ,WPW INb0\WP©OCSiUFVFLOP.AGRIFOX-}-IOLLL. WPD -12-