COMMUNITY FACILITIES AGREEMENTS

Fort Worth City Code ch. 9, art. IV

in effect

Fort Worth City Code § 9-300 CFA APPLICATION.

§ 9-300 CFA APPLICATION. Before submitting engineering plans to the infrastructure plan review center for first review, or compliance review for an express CFA review project, the developer must submit a completed CFA application and the CFA application fee set forth in § 2-321 of the city code to the development coordination office. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-301 MATERIAL TESTING.

§ 9-301 MATERIAL TESTING. (a) The city shall determine the estimated amount of material testing necessary for a CFA based upon the engineering plans submitted to the city for first review. The estimated cost of material testing will be provided by the city to the developer. (b) The city will maintain a list of pre-approved material testing laboratories. The developer must contract with material testing laboratories on the city's list. Material testing laboratories must provide copies of all test results directly to the city and the developer. If the community facilities being constructed fail a test, the developer must correct or replace the community facilities until the community facilities pass a retest. The developer must pay the material testing laboratories directly for all material testing and retesting. The city will obtain proof from the material testing laboratories that the material testing laboratories have been paid in full by the developer before the city will accept the community facilities that were tested. (c) The developer shall pay the city's administrative material testing service fee set forth in § 2-321 of the city code for each material test required for community facilities constructed pursuant to a CFA to reimburse the city for the city's cost incurred for material testing. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-302 INSPECTION FEES.

§ 9-302 INSPECTION FEES. The city will inspect community facilities being constructed to ensure that the community facilities are constructed in accordance with the engineering plans. The developer must pay the construction inspection service fees set forth in § 2-321 of the city code to the city to cover the city's cost for performing inspections. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-303 WATER TESTING LAB FEES.

§ 9-303 WATER TESTING LAB FEES. (a) The city will perform bacterial testing on water mains, firelines and fire hydrants being constructed by the developer. The developer must pay the water testing lab fee set forth in § 2-321 of the city code to the city to cover the city's cost for the tests. The water testing lab fee does not include the time required for the city's inspectors to collect and deliver water samples, which will be included in the construction inspection service fee. (b) Tests will be performed on every: (1) One thousand feet of water mains; (2) Dead-end of a water main; (3) Branch at a minimum of one joint of pipe for water mains; (4) Fireline; and (5) Fire hydrant. (c) Two consecutive passing bacterial tests must be obtained before the city can accept the water mains, firelines and fire hydrants. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-304 CALCULATION AND PAYMENT OF ESTIMATED INSPECTION AND TESTING FEES.

§ 9-304 CALCULATION AND PAYMENT OF ESTIMATED INSPECTION AND TESTING FEES. (a) The city will calculate the estimated cost of administrative material testing service fees, construction inspection service fees, and water testing lab fees based on the engineering plans and construction schedule submitted to IPRC for first review. The city will deliver a copy of the written estimate of the fee to the developer with the comments from IPRC on the engineering plans submitted for first review. (b) The developer must pay the estimated cost of the administrative material testing service fees, construction inspection service fees, and water testing lab fees to the city before the CFA is executed. If there is city participation in the project, the city will be responsible for administrative material testing service fees, construction inspection service fees, and water testing lab fees attributable to the city participation. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-305 STANDARD FORM OF CONTRACTS; CHANGES.

§ 9-305 STANDARD FORM OF CONTRACTS; CHANGES. The city uses standardized forms for community facilities agreements and financial guarantees. The developer may request changes to the language in the forms. The city is not required to accept the changes requested by the developer. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-306 TERM OF THE CFA.

§ 9-306 TERM OF THE CFA. (a) The term for completing construction of community facilities pursuant to a CFA shall be two years. The city and the developer may agree upon a term of less than two years. (b) If construction of the community facilities has commenced before the end of the term, the CFA may be amended to extend the term for up to one additional year. The maximum term of a CFA may not be more than three years. (c) If construction of community facilities pursuant to a CFA has not begun 90 days before the end of the term, the city may send written notice to the developer of the city's intent to use the developer's financial guarantee to construct the community facilities. If the developer and the city do not agree on an extension of the term within 60 days before the term expires or if the term of the CFA is already three years, the city may use the developer's financial guarantee to construct all or some of the community facilities contemplated by the CFA. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-307 CFA AMENDMENTS AND ASSIGNMENTS.

§ 9-307 CFA AMENDMENTS AND ASSIGNMENTS. All requests to amend or assign an executed CFA must be submitted by the developer to the development coordination office. The developer must pay the CFA amendment fee set forth in § 2-321 of the city code to the city before an amendment or a consent to an assignment of a CFA will be executed by the city. An amendment or assignment of a CFA shall be at the discretion of the city. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-308 FINANCIAL GUARANTEE REQUIRED.

§ 9-308 FINANCIAL GUARANTEE REQUIRED. The developer must provide the city with adequate financial security to guarantee the developer's obligations under the CFA, which include, but are not limited to, the developer's obligations to construct all the community facilities contemplated by the CFA and the payment by the developer to all contractors and material suppliers with whom the developer has a contract for the project. No construction of community facilities shall ever begin until the financial guarantee has been delivered to and approved by the city and the CFA has been executed by the developer and the city. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-309 TYPES OF FINANCIAL GUARANTEES.

§ 9-309 TYPES OF FINANCIAL GUARANTEES. (a) One or more of the following types of financial guarantees shall be provided by the developer to the city to guarantee the developer's obligations under the CFA: (1) Development bond. A development bond in the amount of 100% of the total amount of the developer's share of the construction costs in the CFA. The development bond shall be executed by the developer and guarantee that the developer will construct the community facilities and pay all contractors, material suppliers, and equipment suppliers for the project. The development bond must meet the requirements of Tex. Local Government Code Chapter 2253, and the Texas Insurance Code. The development bond may be required to cover the city's participation in the CFA if the construction contracts are not publicly bid; (2) Cash deposit. A cash deposit with the city in the amount of 125% of the total amount of the developer's share of construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover charge orders to the CFA. The city will not pay any interest on cash deposits made with the city; (3) Letter of credit. A letter of credit in the amount of 125% of the total amount of the developer's share of the construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover change orders to the CFA. The expiration date of a letter of credit shall be no less than 90 days after the term of the CFA expires; (4) Escrow agreement. An escrow agreement between the city, the developer and a financial institution or escrow agent in the amount of 125% of the developer's share of the construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover change orders to the community facilities agreement; (5) Completion agreement. The completion agreement provides that the plat will not be filed until the community facilities are accepted by the city and the developer has submitted proof to the city that the developer has paid all contractors and material suppliers. Completion agreements will not be allowed: a. For community facilities being constructed outside the boundaries of a plat; b. For community facilities constructed inside the boundaries of a plat, when the plat is only conveying right-of-way or an easement; c. When there is city participation in a CFA; or d. for a primary project if there is a concurrent CFA; and (6) Statement of appropriated funds. At the discretion of the city, written proof from a governmental entity that sufficient funding for the costs associated with the community facilities has been approved, appropriated, and set aside may be used as a financial guarantee. Only a governmental entity shall be allowed to use a statement of appropriated funds as a financial guarantee for a CFA. (b) All financial guarantees must be on forms prescribed by or acceptable to the city. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-310 REDUCTIONS IN FINANCIAL GUARANTEES - DEVELOPMENT BONDS, CASH DEPOSITS AND LETTERS OF CREDIT.

§ 9-310 REDUCTIONS IN FINANCIAL GUARANTEES - DEVELOPMENT BONDS, CASH DEPOSITS AND LETTERS OF CREDIT. (a) The developer may request a reduction in the amount of a development bond, cash deposit, or letter of credit that is provided as the financial guarantee for a CFA if the initial term of the CFA is more than four months. (b) No more than two reductions of a development bond, cash deposit or letter of credit may be made for any CFA. The director of the Development Services Department may authorize more than two reductions of a development bond, cash deposit or letter of credit and establish the requirements that must be met for the additional reductions. (c) The first reduction in a development bond, cash deposit, or letter of credit may only be made after: (1) One-third of the value of community facilities being constructed pursuant to the CFA have been verified by the city's inspectors to have been constructed in accordance with the engineering plans; and (2) The city has received an affidavit and release of lien executed by the contractor indicating that the contractor has been paid by the developer and the contractor has paid all subcontractors and material suppliers for one-third of the value of the community facilities being constructed pursuant to the CFA. (d) After the city has confirmed that one-third of the community facilities have been constructed in accordance with the engineering plans and the city has received an affidavit and release of lien from the contractor in the amount of one-third of the value of the community facilities being constructed pursuant to the CFA, then the development bond, cash deposit, or letter of credit may be reduced in an amount that does not exceed one-third of the original amount of the development bond, cash deposit, or letter of credit. (e) The second reduction in a development bond, cash deposit, or letter of credit may only be made after: (1) Two-thirds of the value of community Facilities being constructed pursuant to the CFA have been verified by the city's inspectors to have been constructed in accordance with the engineering plans; and (2) The city has received an affidavit and release of lien executed by the contractor indicating that the contractor has been paid by the Developer and the contractor has paid all subcontractors and material suppliers for two-thirds of the value of the community facilities being constructed pursuant to the CFA. (f) After the city has confirmed that two-thirds of the community facilities have been constructed in accordance with the engineering plans and the city has received an affidavit and release of lien from the contractor in the amount of two-thirds of the value of the community facilities being constructed pursuant to the CFA, then the development bond, cash deposit, or letter of credit may be reduced in an amount that does not exceed two-thirds of the original amount of the development bond, cash deposit, or letter of credit if more than 30 calendar days have passed since the first reduction in the financial guarantee. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019; Ord. 25556-06-2022, § 1, passed 6-14-2022, eff. 6-15-2022)

Fort Worth City Code § 9-310.1 REDUCTIONS IN FINANCIAL GUARANTEES - ESCROW AGREEMENTS.

§ 9-310.1 REDUCTIONS IN FINANCIAL GUARANTEES - ESCROW AGREEMENTS. (a) Every 30 days, the developer may request a reduction in the amount of an escrow agreement that has been provided as the financial guarantee for a CFA. (b) The reduction in an escrow agreement may only be made after: (1) The city's inspectors have verified the amount of the community facilities that have been constructed in accordance with the engineering plans; and (2) The city has received an affidavit and release of lien executed by the contractor indicating that the contractor has been paid by the developer and the contractor has paid all subcontractors and material suppliers for the community facilities that have been constructed pursuant to the CFA. (c) After the city has confirmed the amount of the community facilities that have been constructed in accordance with the engineering plans and the city has received an affidavit and release of lien from the contractor for the community facilities that have been constructed, then the escrow agreement may be reduced to an amount equal to 125% of the value of the community facilities that are remaining to be constructed that are guaranteed by the escrow agreement. (Ord. 25556-06-2022, § 2, passed 6-14-2022, eff. 6-15-2022)

Fort Worth City Code § 9-311 REDUCTIONS IN FINANCIAL GUARANTEES FOR STREETLIGHTS.

§ 9-311 REDUCTIONS IN FINANCIAL GUARANTEES FOR STREETLIGHTS. (a) In addition to the reductions in financial guarantees allowed by § 9-310, a developer may request a reduction in the financial guarantee when the only community facilities remaining to be constructed in a residential development are streetlights. (b) To be eligible for a reduction in the financial guarantee under this section: (1) The construction and final inspection of all Community facilities in the CFA, except streetlights, must be completed; (2) The construction of all streetlights must be completed and the streetlights only require a connection to a permanent source of electrical power and final inspection by the city; (3) The contract between the developer and the developer's contractor for the construction of streetlights must not include the construction of any other community facilities; (4) The remaining financial guarantee for the CFA must cover 125% of the cost of constructing the streetlights; and (5) The developer shall pay to the city the CFA amendment fee set forth in § 2-321 of the city code unless: a. A separate financial guarantee for the streetlights, other than a completion agreement, was provided to the city when the CFA was executed; or b. The developer previously provided a separate financial guarantee for the streetlights, other than a completion agreement, as authorized by this chapter. (c) The developer shall connect the streetlights to the electricity provided by an electric utility company within 30 days of an electric utility company providing power to the development. (d) The streetlights must pass a final inspection before the streetlights will be accepted by the city and the financial guarantee for the streetlights is released by the city. (e) A reduction in a financial guarantee for streetlights: (1) Allows the plat hold for the CFA to be released; (2) Allows building permits to be issued if all other requirements of the city for the issuance of building permits have been met; and (3) Allows the community facilities being constructed pursuant to a CFA, other than the streetlights, to be accepted by the city when all requirements for approval of those community facilities have been met. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-312 REPLACING A COMPLETION AGREEMENT WITH A DIFFERENT FINANCIAL GUARANTEE.

§ 9-312 REPLACING A COMPLETION AGREEMENT WITH A DIFFERENT FINANCIAL GUARANTEE. (a) The developer may request that a completion agreement be replaced with a different type of financial guarantee. (b) The completion agreement may only be replaced after: (1) The value of the community facilities that have previously been constructed pursuant to the CFA have been verified by the city's inspectors to have been constructed in accordance with the engineering plans; and (2) The city has received an affidavit and release of lien executed by the contractor indicating that the contractor has been paid by the developer and the contractor has paid all subcontractors and material suppliers for the value of the community facilities that have previously been constructed pursuant to the CFA. (c) The financial guarantee that replaces the completion agreement must be in the amount of 125% of the value of the remaining community facilities to be constructed pursuant to the CFA. If a development bond is used, the bond must be in the amount of 100% of the value of the remaining community facilities to be constructed pursuant to the CFA. (d) The developer must pay the CFA amendment fee to the city before the completion agreement may be replaced with another type of financial guarantee. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-313 PHASED CFAS.

§ 9-313 PHASED CFAS. (a) A phased CFA allows a developer constructing a multi-phased development to construct subsequent phases of the development before construction of the community facilities for the previous phases have been completed and accepted by the city. A phased CFA is also allowed when one developer is constructing two different developments and would like to simultaneously construct the community facilities in the two developments that will be connected to each other. (b) The developer or design engineer must notify the city on the CFA application and on the IPRC checklist that the CFA will be a phased CFA. (c) The IPRC plans for a phased CFA may be reviewed simultaneously with the review of the plans for the parent project regardless of whether the parent project includes on-site or off-site community facilities. (d) The parent project and the phased CFA must be constructed by the same developer. (e) Any type of financial guarantee a developer is authorized by this chapter to use may be used for a phased CFA. (f) If the phased CFA is for a residential development, the city will not record the final plat related to the phased CFA until the Community facilities being constructed pursuant to the phased CFA have been constructed and accepted by the city. (g) If the phased CFA is for a commercial development, the city will not issue a certificate of occupancy for any buildings until the community facilities being constructed pursuant to the phased CFA have been completed and accepted by the city. (h) The developer must notify all of the developer's contractors performing work on the phased CFA that the developer has elected to construct a phased CFA, the provisions relating to phased CFAs in the community facilities agreement, the risks associated with a phased CFA, and that the city will not bear any responsibility for the developer's decision to proceed with a phased CFA. The developer will be responsible for resolving any disputes between contractors performing work on the parent project and contractors performing work on the phased CFA. Technical conflicts relating to connection of the community facilities between the parent project and the phased CFA are part of the at-risk nature of a phased CFA and the developer must resolve all conflicts. (i) A developer may not make the final connection of the community facilities in the phased CFA to the community facilities in the parent project until the community facilities in the parent project have been constructed and accepted by the city and the city has consented to the developer making the connection. (j) The developer of a phased CFA must assume all risks associated with a phased CFA and must indemnify, defend and hold the city harmless for the construction of the community facilities pursuant to a phased CFA and the developer's decision to construct community facilities pursuant to a phased CFA. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-314 CONCURRENT CFAS.

§ 9-314 CONCURRENT CFAS. (a) A concurrent CFA allows a developer to construct community facilities that will connect to and are dependent upon community facilities being constructed by another developer, before the construction and acceptance by the city of the community facilities being constructed by the other developer. (b) The developer or design engineer must notify the city on the CFA application and the IPRC checklist that the CFA will be a concurrent CFA. (c) The primary project must have reached compliance review before the engineering plans for a concurrent CFA may be submitted to IPRC for pre-submittal review. (d) A concurrent CFA will not be allowed if the financial guarantee for the primary project is a completion agreement. Any type of financial guarantee a developer is authorized by this chapter to use may be used for a concurrent CFA. (e) If the concurrent CFA is for a residential development, the city will not record the final plat related to the concurrent CFA until the community facilities being constructed pursuant to the concurrent CFA have been constructed and accepted by the city. (f) If the concurrent CFA is for a commercial development, the city will not issue a certificate of occupancy for any buildings until the community facilities being constructed pursuant to the concurrent CFA have been completed and accepted by the city. (g) The developer of a concurrent CFA must acknowledge in writing to the city that due to the developer's election to proceed with a concurrent CFA, the potential exists for technical, delivery, acceptance, or performance problems which could result in the developer having to remove and reconstruct, at the developer's expense, the community facilities constructed under the concurrent CFA. (h) The developer of a concurrent CFA must agree that the developer will resolves all disputes with the developer of the primary project and between contractors and subcontractors performing work on the concurrent CFA and contractors and subcontractors performing work on the primary project. (i) The developer of a concurrent CFA must execute a written agreement with the developer of the primary project that includes the following provisions: (1) Provides access to the developer of the concurrent CFA onto property owned or controlled by the developer of the primary project that is necessary for the construction of the community facilities pursuant to the concurrent CFA; (2) Stipulates that the developer of the concurrent CFA and the developer of the primary project must resolve all disputes regarding the design and construction of the concurrent CFA and the primary project; and (3) Provides that the developer of the primary project must notify the developer of the concurrent CFA of all changes to the design or construction of the community facilities in the primary project, including any field changes. (j) The written agreement between the developer of the concurrent CFA and the developer of the primary project does not have to be delivered to the city for review. (k) The developer of a concurrent CFA must certify to the city in an attachment to the developer's CFA that the written agreement required by subsection (i) has been executed. (l) The developer of a concurrent CFA must notify all of developer's contractors performing work on the concurrent CFA that: (1) The developer has elected to construct community facilities pursuant to a concurrent CFA; (2) The provisions relating to concurrent CFAs in the community facilities agreement; (3) The risks associated with a concurrent CFA; and (4) The city will not bear any responsibility for the developer's decision to construct community facilities pursuant to a concurrent CFA. (m) A developer shall not make the final connection of community facilities constructed pursuant to a concurrent CFA to community facilities in the primary project until the community facilities in the primary project have been constructed and accepted by the city and the city has consented to developer making the connection. (n) The developer of a concurrent CFA must assume all risks associated with a concurrent CFA and must indemnify, defend and hold the city harmless for the construction of the community facilities pursuant to a concurrent CFA and the developer's decision to construct community facilities pursuant to a concurrent CFA. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-315 EXECUTION OF CFAS BASED ON ESTIMATES OF PROBABLE COSTS.

§ 9-315 EXECUTION OF CFAS BASED ON ESTIMATES OF PROBABLE COSTS. (a) At the discretion of the project manager, a CFA may be executed based upon the design engineer's estimate of probable costs before the engineering plans for the CFA have been accepted by the city. The engineering plans must have completed first review before a CFA may be executed based upon the design engineer's estimate of probable costs. (b) The project manager and city infrastructure departments shall review the cost estimates and must agree with the design engineer's estimate of probable costs before the CFA is executed. (c) The developer's financial guarantee must be in the amount of 150% of the design engineer's estimate of probable costs. (d) Before a pre-construction meeting can be scheduled, the developer must amend the financial guarantee if the financial guarantee is less than 125% of the cost of the community facilities based upon the bids received by the developer's contractors. (e) If the CFA exhibits must be revised or the cost of the public infrastructure for the engineering plans accepted by the city is more than the amount in the CFA, the CFA must be amended and the developer shall pay the CFA amendment fee. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-316 PROCUREMENT AND AWARD OF CONSTRUCTION CONTRACTS FOR COMMUNITY FACILITIES WITHOUT CITY PARTICIPATION.

§ 9-316 PROCUREMENT AND AWARD OF CONSTRUCTION CONTRACTS FOR COMMUNITY FACILITIES WITHOUT CITY PARTICIPATION. If there is no city participation in a CFA, the developer may procure the construction contracts by public or private bids, or any other lawful manner. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-317 REQUIREMENTS FOR CONTRACTORS CONSTRUCTING COMMUNITY FACILITIES.

§ 9-317 REQUIREMENTS FOR CONTRACTORS CONSTRUCTING COMMUNITY FACILITIES. (a) Community facilities must be constructed by contractors that: (1) Are pre-qualified by the city, where required; (2) Are licensed, bonded, and insured; and (3) Have the proper permits required by the city code and policies. (b) If the developer provides a development bond as the financial guarantee for a CFA that does not involve city participation, the developer's contractors will not be required to provide the city with payment and performance bonds, but must provide a maintenance bond for the community facilities. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-318 REQUIREMENTS FOR A NOTICE TO PROCEED TO CONSTRUCTION.

§ 9-318 REQUIREMENTS FOR A NOTICE TO PROCEED TO CONSTRUCTION. The following items are required before the city will issue a notice to proceed to construction for a CFA: (a) A complete set of engineering plans accepted by the city; (b) Proof of conveyance of all easements and temporary construction easements for the community facilities, and proof that all required permits have been issued; (c) A CFA executed by the city and the developer; (d) A financial guarantee acceptable to the city; (e) Payment of all required fees; (f) Complete contract document books that have been accepted by the city; (g) A maintenance bond in the amount of the construction contracts executed in the name of the city covering community facilities to be constructed against defects in materials and workmanship for a period of two years after completion and acceptance of the community facilities by the city; and (h) Payment and performance bonds provided by the contractors, or a development bond provided by the developer for a CFA that does not have city participation which eliminates the requirement that the contractors provide payment and performance bonds as specified in § 9-317. (Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)

Fort Worth City Code § 9-319 through 9-399 RESERVED.

Source: City of Fort Worth, Code of Ordinances, City Charter and Zoning Ordinance (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/ftworth/latest/ftworth_tx/0-0-0-62539Fetched: 10/26/2026