Title
Consider/Discuss/Act on a Non-Binding Term Sheet for a Proposed Interlocal Agreement with McKinney Municipal Utility District No. 1 of Collin County and McKinney Municipal Utility District No. 2 of Collin County Related to Park Property Maintenance and Capital Expenditures within Trinity Falls
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
5A: Create affordable recreational and cultural arts activities for all ages throughout the city
5B: Develop Parks strategy to preserve green space for future park land
5E: Develop sustainable quality of life improvements within the City of McKinney
MEETING DATE: October 19, 2021
DEPARTMENT: Parks & Recreation Department
CONTACT: Michael Kowski, Director of Parks & Recreation
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed non-binding Term Sheet.
ITEM SUMMARY:
• At present, a $0.02 per $100 property valuation, annual Park Fee is assessed on properties within Trinity Falls for the City’s use in maintaining the overall parks system and City-owned neighborhood parks located within the development. This proposal will allow for a portion of Park Fees collected to be disbursed to MUD No. 1 and MUD No. 2, on a reimbursement basis, for their use in undertaking maintenance and improvement activities. The conceptual elements of this non-binding Term Sheet will be used to develop a formal, binding interlocal agreement.
BACKGROUND INFORMATION:
• The masterplan for Trinity Falls includes a collection of public parks that will be constructed by the developer and then conveyed to and maintained by the City’s Parks & Recreation Department. Per the Development Agreement, a $0.02 per $100 property valuation, annual Park Fee was established to cover the direct costs of maintaining these parks as well as other areas across the parks system utilized by residents of Trinity Falls.
• Representatives from the MUDs have offered to take responsibility for all maintenance obligations and for the construction of City-directed capital improvements to BB Owen Park and City-owned neighborhood parks located within the development. The MUDs shall submit an annual budget and request for funding to the City, and the City will disburse funds, on a reimbursement basis, from the Park Fees received to date to cover approved expenses.
• The City shall prescribe the standard of maintenance, reserve the right to approve/disapprove any third-party contractors, and retain final approval of all improvements.
FINANCIAL SUMMARY:
• The City collected approximately $100,000 in Park Fees in 2021.
BOARD OR COMMISSION RECOMMENDATION:
• N/A