HomeMy WebLinkAboutItem 14 - TIRZ Professional ServicesFROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JANUARY 16,2024
SUBJECT: APPROVE A PROFESSIONAL SERVICES CONTRACT TO UPDATE
AND AMEND TAX INCREMENT FINANCING ZONE NO. 1 AND TAX
INCREMENT ZONE NO. 2
RECOMMENDATION: City Council to consider a professional services contract to update and
amend Tax Increment Financing Zone Number One and Tax Increment
Zone Number Two project and financing plans with David Pettit
Economic Development.
FUNDING SOURCE: Funds are available in the General Fund for an estimated amount of
$22,500.
BACKGROUND: This purchase request is for a contract to update and amend Tax
Increment Financing (TIF) Zone Number One and Number Tvio. David
Pettit Economic Development will amend the creation ordinances for
TIF No, 1 and TIF No. 2 to amend the TIF board composition for each,
and amend the Project and Financing Plan for TIF No, 1 and TIF No.
2 to include operating reinvestment zone project facilities as a Project
Cost category per Chapter 311 of the Texas Tax Code.
Staff recommends approval.
0 DAVID PETTIT
December 15, 2023
Mr. Bruno Rumbelow
City Manager
City of Grapevine, Texas
200 S. Main Street
Grapevine, Texas 76099
RE: Professional Services Agreement
Dear Mr. Rumbelow,
David Pettit Economic Development, LLC ("DPED") is pleased to provide this proposal for economic
development professional services relating to updating and amending the City of Grapevine, Tax Increment
Reinvestment Zone ("TIRZ") Number One and City of Grapevine, Tax Increment Reinvestment Zone ("TIRZ")
Number Two, to include amending the creation ordinance for each TIRZ, amending the Project and Financing
Plan (PFP) for each TIRZ, and amending the PFP ordinance for each TIRZ.
The Project
It is our understanding that the City of Grapevine, Texas is interested in amending the creation ordinances for
TIRZ #1 and TIRZ #2 to amend the TIRZ Board composition for each, and amending the Project and Financing
Plan for TIRZ #1 and TIRZ #2 to include operating reinvestment zone project facilities as a Project Cost
category per Chapter 311 of the Texas Tax Code.
The Assignment
Our work under this proposal would be to provide professional economic development services relating to
amending TIRZ #1 and TIRZ #2, and updating the Project and Financing Plans.
The Team
We proposed working in a team organized as follows:
• You will be our point of contact and will provide overall direction to our team. You may also include
other members of City staff with which we will meet regularly to review our progress and to get input
and direction on our work.
• At this time, we do not anticipate the need for any additional consultants to accomplish the work
described in this proposal.
Statutory Requirements
Chapter 311 of the Texas Tax Code outlines the various procedures for creating or amending a TIRZ, including
amending the Project and Financing Plan. A final Amended Project and Financing Plan would need to be
approved by the TIRZ Board and then by the governing body of the municipality by ordinance.
TIRZ #1 Scope of Services
Based on our conversations and our experience on previous projects, we propose the following scope of services
to amend TIRZ #1 and amend and update the Project and Financing Plan previously prepared by DPED. Our
proposed scope of services is divided into separate tasks, each providing a description of the work to be
performed and the key products resulting from the task.
306 West 7th St ect, Suite 60-2 1 Foil Worth, Texas 76tO2
8I7.439,QS15 www.diud11c.con3
Task 1
Task 2
Task 3
Task 4
Taxable Value Analysis
DPED would work with City staff to develop updated projections for future land uses, and timing of
proposed developments. A taxable value review of similar developments would be conducted to
establish conservative assumptions of future taxable value for development in the zone. This task will
be the basis for developing an updated spreadsheet model of potential TIRZ increments, given a
reasonable range of development assumptions and taxable values. Key products of this task would
include a spreadsheet model with projections based upon the historical taxable value review,
development projections and reasonable timing expectations.
Develop Amended TIRZ Cash Flow Model
Based on the revised anticipated land uses and projections, DPED would develop a draft financing cash
flow model (and supporting spreadsheets) for a various time periods. This model will allow the City,
consultants and others to underwrite the proposed developments and test various scenarios for the
eventual financing plan. Key products of this task would include excel spreadsheets of the Amended
TIRZ Cash Flow Models with growth and development assumptions.
Prepare an Amended Project and Financing Plan
DPED will develop the Finance Plan, Project Plan, and Detailed Description of the TIRZ, and other
exhibits required for local government review and approval per the state legislative requirements. This
work includes the written, graphic, and PowerPoint materials and exhibits, as well as support of the
process. Backup materials such as spreadsheets and databases will also be products that support the
plans. Key products would include an Amended TIRZ Project and Financing Plan comprised of a legal
description of the zone, proposed TIRZ projects, estimated project costs, term of the zone and a tax
increment analysis.
TIRZ Documentation Support
DPED will provide assistance with drafting necessary documents for amending the TIRZ and amending
the Project and Financing Plan including: 1) public hearing notices; 2) resolutions; 3) amendment
ordinances; and 4) amended participation agreements. This can be a time-consuming process for City
staff, however DPED's extensive experience in drafting these documents should help streamline the
preparation of materials necessary for City Council consideration.
TIRZ #2 Scope of Services
Based on our conversations and our experience on previous projects, we propose the following scope of services
to amend TIRZ #1 and amend the Project and Financing Plan. Our proposed scope of services is divided into
separate tasks, each providing a description of the work to be performed and the key products resulting from
the task.
Task 1
Prepare an Addendum to the existing Project and Financing Plan
DPED will develop the additional materials necessary to amend the Project Costs portion of the existing
Project and Financing Plan for TIRZ #2, and other exhibits required for local government review and
approval per the state legislative requirements. This work includes the written, graphic, and PowerPoint
materials and exhibits, as well as support of the process. Backup materials such as spreadsheets and
databases will also be products that support the plans. Key products would include an Addendum to
the TIRZ #2 Project and Financing Plan, including operating reinvestment zone project facilities as a
Project Cost category per Chapter 311 of the Texas Tax Code.
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Task 2
TIRZ Documentation Support
DPED will provide assistance with drafting necessary documents for amending the TIRZ and amending
the Project and Financing Plan including: 1) public hearing notices; 2) resolutions; 3) amendment
ordinances; and 4) amended participation agreements. This can be a time-consuming process for City
staff, however DPED's extensive experience in drafting these documents should help streamline the
preparation of materials necessary for City Council consideration.
Fee for Services
Our fee for services relating to the scope of services for TIRZ #1 would be a lump sum fee of $15,000, and a
lump see of $7,500 for the scope of services for TIRZ #2.
Fees would be charged monthly, subject to on -going progress on the work effort. Reimbursable expenses not to
exceed $500 would be charged to include out-of-pocket expenses incurred in the interest of the project at actual
costs.
Changes of Scope and Additional Services
Minor additions to our scope will be treated as Additional Services. Work on Additional Services will not begin
until authorized in writing by the Client.
Additional Services and Rates for Hourly Services
Additional Services shall be billed on an hourly not to exceed basis unless a fixed fee or other method of
compensation is mutually agreed upon. Our current hourly rates are:
Classification Hourly Billing Rate
David Pettit
$325.00
Project Manager
$250.00
Project Specialist
$120.00
Planning Intern
$100.00
Administrative
$80.00
These rates apply for the current calendar year and are subject to revision on January 1, when they may be
revised to reflect changes in staff salaries over the preceding year.
Term of Agreement
It is anticipated that the services covered in the proposal will be completed within twelve (12) months of the date
services begin. This Agreement will terminate upon the earlier of completion of services or twelve (12) months
from the date of this Agreement. Additionally, Client may terminate this Agreement for any reason upon thirty
(30) days written notice to DPED and DPED will cease any and all work upon receipt of such notice, unless
otherwise directed in the notice. In the event of a termination as described above, Client shall be responsible
for the payment of the fees and expenses incurred by DPED pursuant to this agreement through the date of such
termination.
Reimbursables
We propose to be reimbursed for out-of-pocket expenses incurred in the interest of the project at our actual cost.
Reimbursable expenses include: our direct consultants and their expenses (to be reimbursed, all consultants
and their bids must be approved in writing, in advance by the client); reproduction; long distance communication;
document printing and delivery; document graphics and binding; delivery, postage and handling; travel time;
special materials; photography; etc. (Reasonable backup will be available upon request.)
Invoices and Payments
Payment for services rendered is due within thirty (30) days of Client's next monthly billing cycle following receipt
of invoice. In the event any invoices remain unpaid 45 days after the invoice date, we suspend work until we
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have been paid in full all amounts due for services and expenses. Amounts unpaid for more than 30 days after
the due date may accrue interest at 10% per annum. In the event we are forced to commence a collection
proceeding, you agree to pay reasonable attorney's fees and court costs, in addition to our fees billed under this
proposal.
Suspension and Termination
If the project is suspended or abandoned, DPED will be compensated for all services billed prior to receipt of
written notice by the Client. Services that are not billed or completed between billing periods and receipt of
written notice will be reimbursed at DPED's standard hourly rates.
If the scope or schedule of the project should change beyond that to be reasonably expected due to the program
changes, schedule or other reason, at their option, DPED may re -negotiate the aforementioned fees and scope
of work. Any renegotiation of scope or fee will be in writing and subject to the signing of both parties.
Certifications
Guarantees and Warranties: We will not be required to execute any document that would result in our certifying,
guaranteeing or warranting the existence of conditions whose existence we cannot ascertain.
Authorization to Proceed
Thank you again for this opportunity to work with you. Your signature below and the return of one copy to us for
our file will confirm your approval and authorize us to proceed.
Insurance
DPED will provide proof of professional liability insurance (including errors and omissions) with minimum limits
of $1,000,000 per occurrence and $2,000,000 in the aggregate and excess/umbrella liability of $1,000,000
per occurrence and $2,000,000 in the aggregate to client. Additionally, DPED shall carry the following
insurance coverages:
(a) Worker's compensation insurance atthe statutory limits and employer's liability insurance, with
minimum limits of$1,000,000.00/$1,000,000.00/$1,000,000.00; and
(b) Comprehensive general liability insurance, with minimum limits of $2,000,000.00 each
occurrence and $4,000,000.00 in aggregate; and
(c) Comprehensive automobile liability insurance, with minimum limits of $1,000,000.00
combined single limit each occurrence; and
DPED has previously provided, or concurrently with the execution of this agreement is providing, to Client a
certificate of insurance issued to Client evidencingthe foregoing insurance coverages and evidencingthat Client
and Client's lender, if any, are additional insured parties with respect to the insurance policies referred to in the
foregoing subparagraphs (b) and (c).
Notices
Any notice required or permitted to be given to either party shall be deemed to be received by such party (a) three
(3) days after deposit in the United States Registered or Certified Mail, Return Receipt Requested, or (b) one (1)
business day after deposit with a nationally recognized overnight delivery service for next day delivery, or (c) upon
personal delivery to the party to whom addressed provided that a receipt of such delivery is obtained, or (d) on
the next business day after transmission by telecopy provided that a confirmation copy is concurrently deposited
in United States Certified or Registered Mail, Return Receipt Requested, in any case addressed to the parties at
the following addresses:
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If to Client:
City ofGrapevine, Texas
200S. Main Street
Grapevine, Texas 7S0Q0
Attention: Bruno Rumbo|mw.City Manager
Email: bru m below@gra Devi notexes. aov
David Pettit Economic Development, LLC
30SWest Seventh Street, Suite G02
Ft. Worth, TX 76103
Attention: David Pettit
Email: doettit@dDedlic.com
or to the parties at such other addresses ortelmmpynumbers aothey may designate by notice tothe other party
as herein provided.
SUMMARY
I hope this accurately outlines the professional services you anticipated. If you have any questions or concerns
please do not hesitate to contact me at 817.439.9421.
Thank you for considering David Pettit Economic Development, LLC.
Sincerely,
David Pettit
Managing Member
If this agreement meets with your approval, please sign and return one executed copy to our office as notice to
AGREED TOAND ACCEPTED BY:
City of Grapevine, Texas
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