Title
Consider/Discuss/Act on an Amendment to the Facilities Agreement with HCA Health Services of Texas, Inc., now Known as Columbia Medical Center of McKinney Subsidiary, LP
Summary
MEETING DATE: September 20, 2011
DEPARTMENT: Development Services / Engineering
CONTACT: Michael Hebert, PE, Assistant Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Agreement.
ITEM SUMMARY:
• This item authorizes an amendment to the facilities agreement with Columbia Medical Center of McKinney Subsidiary, LP (the Hospital) to address the creation of proposed Lot 7R and Lot 8 due to the relocation of Frisco Road through existing Lot 7 as shown on the attached location map.
• The proposed Lot 8 is located at the southeast corner of the intersection of the frontage road of Spur 399 and the section of Frisco Road recently relocated by the North Texas Tollway Authority.
• Many items within the existing facilities agreement (attached) have been completed. The items that have not yet been completed remain the same. The primary items addressed with this amendment are:
o The Hospital will re-plat existing Lot 7, as shown on the attached current plat, into Lots 7R and the newly created Lot 8.
o Frisco Road shall be constructed by the adjacent developers as a 37-foot collector street as Lot 7R and Lot 8 develop.
o Lot 8 shall continue to be subject to the development ordinances of the City of McKinney if not specified otherwise in the amended agreement.
o The Hospital recognizes that Fairview will provide utility services to the newly created Lot 8, and the City of McKinney is not obligated to assure the services are extended to Lot 8 by the Town of Fairview.
o The amended agreement does not include items from the original agreement that have already been completed, such as the construction of Medical Center Drive between Spur 399 and Frisco Road.
o The provisions of this amendment will be null and void if, after a 2-year period:
§ Lot 7 is not replatted into Lot 7R and Lot 8,
§ Lot 8 is not sold to the owner of the adjacent 206-acre tract situated in Fairview, or
§ An Interlocal Cooperation Agreement regarding water and sewer service to Lot 8 is not authorized by the City of McKinney and the Town of Fairview.
• The attached Memorandum of Understanding (MOU) was signed in 2008 in which the City of McKinney agreed to cooperate with the Medical Center of McKinney, the Town of Fairview and the owner of the 206-acre tract south of Frisco Road in Fairview regarding the conveyance of the created 2-acre tract.
• The MOU indicates the 2-acre tract would be combined with the 206-acre tract to the south of Frisco Road in the Town of Fairview.
• This amendment to the Facilities Agreement is consistent with the items in the 2008 MOU.
BACKGROUND INFORMATION:
• The intent of Medical Center of McKinney is to sell this 2-acre tract to the property owner of the 206-acre tract such that the tract can develop in conjunction with the 206-acre tract.
• Fairview has agreed to provide utility services to the 2-acre lot and has approved an interlocal cooperation agreement with the City of McKinney to do so in a manner that has no financial impact on McKinney.
• This amendment does not disannex the 2-acre tract, nor does it change the CCN boundary or waive McKinney’s CCN rights. A CCN is a Certificate of Convenience and Necessity administered by the Texas Commission on Environmental Quality (TCEQ) and regulates which entity provides water and sewer services to a specific area.
• A concurrent item regarding an interlocal cooperation agreement with the Town of Fairview for the provision of utility services to this 2-acre tract of land is also on this agenda.
FINANCIAL SUMMARY:
• No negative financial impacts to the City of McKinney are anticipated due to the provisions of this agreement.
BOARD OR COMMISSION RECOMMENDATION:
• N/A