HomeMy WebLinkAboutOrdinance 21985-12-2015 ORDINANCE NO.21985-12-2015
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
SOUTHEAST ENHANCED NEIGHBORHOOD FAMILY AQUATICS CENTER PROJECT OF THE
GENERAL CAPITAL PROJECTS FUND IN THE AMOUNT OF $2,300,000.00 FROM AVAILABLE
FUNDS, FOR THE PURPOSE OF FUNDING A FORGIVABLE LOAN TO THE YMCA OF
METROPOLITAN FORT WORTH FOR THE CONSTRUCTION OF A NEW FULL SERVICE AQUATIC
FACILITY; PROVIDING A LEGAL LEVEL OF CONTROL; PROVIDING FOR A SEVERABILITY
CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget
of the City Manager, there shall also be increased estimated receipts and appropriations in the Southeast Enhanced
Neighborhood Family Aquatics Center Project of the General Capital Projects Fund in the amount of$2,300,000.00,
from available funds, for the purpose of funding a forgivable loan to the YMCA of Metropolitan Fort Worth for the
construction of a new full service aquatic facility.
SECTION 2.
That the legal level of control shall be at the project level for each project for which an appropriation is adopted
herein; that funds may not be transferred or reallocated between or among projects without the approval of the City
Council; that the Chief Financial Officer acting on behalf of the City Manager may, in consultation with a
department head, establish subprojects within a project without the approval of the City Council so long as all such
subprojects serve to further completion of the project identified herein and such action otherwise complies with all
applicable laws and ordinances and does not result in a net increase to the project's overall appropriation.
SECTION 3.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any
reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining
portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full
force and effect.
SECTION 4.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in direct
conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior
ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGLITY: ..w
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Tyler Walladh,,Assistant City Attorney 9' ary J. et, Ci y S etary
ADOPTED AND EFFECTIVE: December 1, 2015
Ordinance No.21985-12-2015
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1211/2015 - Ordinance No. 21985-12-2015
DATE: Tuesday, December 01, 2015 REFERENCE NO.: C-27548
LOG NAME: 80FORTWORTH&YMCA LOAN AGREEMENT
SUBJECT:
Authorize the Expenditure in the Amount of$2,300,000.00 in the Form of a Forgivable Loan to the YMCA
of Metropolitan Fort Worth for the Construction of a New Full Service Aquatic Facility, Authorize Execution
of a Loan Agreement, Authorize the Execution of a Support Agreement and Adopt Appropriation Ordinance
(COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an expenditure in the amount of$2,300,000.00 in the form of forgivable loan to the YMCA of
Metropolitan Fort Worth for the construction of a new full service aquatic facility in the southeast section of
Fort Worth, to be open to residents of Fort Worth in a manner similar to other City aquatics facilities;
2. Authorize the execution of a Loan Agreement and any related documents with the YMCA of
Metropolitan Fort Worth for a 20-year loan term beginning on the date that the aquatic facility is ready for
public use;
3. Authorize any amendments to the Loan Agreement that may be necessary to achieve the project
goals, provided that the amendments are within the scope of the project and in compliance with City
policies and applicable laws and regulations;
4. Authorize the execution of a multi-year Support Agreement with the YMCA of Metropolitan Fort Worth
to support the operation and maintenance of the new full service aquatic facility to:
a. Provide an annual operating subsidy of$59,000.00 for a term of 20 years to begin
in Fiscal Year 2017, with annual increases of two percent; and
b. Contribute $12,000.00 per year to a long-term major maintenance reserve fund for
a primary term of 10 years beginning in Fiscal Year 2017, with two five-year renewal options.
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Southeast Enhanced Neighborhood Family Aquatics Center Project of the General Capital Projects Fund
in the amount of$2,300,000.00 from available funds; and
6. Find that execution of the loan and the corresponding Support Agreement serve to carry out the public
purpose of providing quality, accessible and cost-effective aquatics opportunities to the residents of Fort
Worth in accordance with the City's 2015 Parks, Recreation and Open Space Master Plan and the 2008
City-Wide Aquatics Master Plan (as amended in 2012) and providing that adequate controls are in place
through such agreements to carry out such public purpose.
Logname: 80FORTWORTHYMCA LOAN AGREEMENT Page 1 of 4
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is for the City Council to authorize the
expenditure of$2,300,000.00 of General Capital Project Funds as the City's portion for the design and
construction of an Enhanced Neighborhood Family Aquatic Center (E-NFAC) in cooperation with the
YMCA of Metropolitan Fort Worth (YMCA), along with the provision of support funds to help subsidize
costs associated with the operation and maintenance of the E-NFAC. Loan funds will be distributed on a
reimbursable basis during the project design and construction phase up to a total of$2,300,000.00, with
an anticipated sum of up to $500,000.00 in Fiscal Year 2016 and up to $1,800,000.00 in Fiscal Year
2017. These amounts are subject to change and may be adjusted based on project schedule and
completion dates.
On March 20, 2012 (M&C G-17554), the City Council adopted amendments to the 2008 City-Wide
Aquatics Master Plan (Aquatics Master Plan). The amendments addressed the size and scope of future
aquatic facilities, outlined sectors of the City for facility distribution, recommended an operational subsidy
and emphasized the pursuit of partnerships to leverage the City's investment. The Aquatics Master Plan
specifically stated that the City should continue to pursue partnerships with other entities such as school
districts, non-profit agencies and private donors in the development of E-NFAC's.
In endorsing its recommendation to the City Council on January 25, 2012, the Parks and Community
Services Advisory Board included that the City should fund the construction of an E-NFAC in the eastside
sector in the next two to four years. On August 20, 2015, the most recent Citizens Survey was presented
to the City Council and, overall, the quality of parks/recreation programs and facilities was the fourth most
important priority of survey respondents with 61 percent of respondents indicating they were either
supportive or very supportive of developing new outdoor aquatics facilities. Specifically, one of the only
decreases in notable trends for citizen satisfaction seen since the 2009 survey was the availability of
outdoor swimming pools, with the greatest decrease at 11 percent and when considered by sector more
concern was shown in the east and west sectors.
The YMCA approached the City as early as March of 2014 with a multi-phase capital development needs
plan that included a cooperative opportunity for an aquatic facility in the southeast sector as Phase I. The
new facility will be located in the Renaissance Square development and the YMCA has identified and
secured a site for the new campus on Mitchell Boulevard, just south of East Berry and next to the Mitchell
Boulevard Elementary School. Overall cost for the entire development is anticipated at $12,100,000.00, of
which $2,300,000.00 would be the City's participation in the form of a forgivable loan specifically for the
aquatics (E-NFAC) portion of the YMCA campus. The City's financial participation is intended to show
both cooperative commitment and assist the YMCA in leveraging all potential fund raising efforts. The
actual loan funds, as an included stipulation of the loan contract, will be the last used for the E-NFAC after
all other financial resources have been applied. Construction of the E-NFAC portion of the YMCA campus
is anticipated to begin around July of 2016, with approximately three months of construction in Fiscal Year
2016 and anticipated to conclude in April of 2017, with approximately seven months of construction in
Fiscal Year 2017, with a May 2017 opening.
This E-NFAC will provide a much needed community resource for residents in the area, with increased
access to recreational swimming, swim lessons and water safety instruction.
The primary terms of the proposed Loan Agreement include the following:
1. Twenty year forgivable loan of$2,300,000.00 with zero percent interest evidenced by a note and
secured by a deed of trust against the E-NFAC portion of the YMCA campus. The deed of trust will
secure the YMCA's performance of the loan conditions as well as repayment of the loan funds if the loan
terms are not met, with forgiveness amortized over the term of the loan.
2. Any unforgiven portion of the loan must be repaid in the event of default, with the entire amount being
forgiven at the end of the loan term if there is no default.
Logname: 80FORTWORTHYMCA_LOAN_AGREEMENT Page 2 of 4
3. Construction must be complete and the E-NFAC opened for use within two years from the Loan
Agreement execution date, with a one year extension allowable upon mutual written agreement.
4. Payment of loan funds to the YMCA will be on a reimbursable basis during the construction phase of
the project and will be the last dollars put into the E-NFAC portion of the project.
5. Measurables must be met to ensure the public purpose is fulfilled, including:
a. A minimum number of Fort Worth residents to be served similar to any other City
of Fort Worth aquatics facilities, availability and hours of operation, daily admission
fees, private rentals, special events and use without a YMCA membership; and
b. Provision of learn-to-swim programs.
6. The YMCA will retain all revenues generated at the aquatics facility.
At the expiration of the 20-year term, public access would be maintained subject to the continuation of a
direct operating subsidy by the City.
In order to ensure that the aquatics facility is both accessible to citizens and operated and maintained to a
level acceptable to the City, it is recommended that the City provide an annual operating subsidy of
$59,000.00 with annual increases of two percent. The subsidy would cover lifeguards, instructors and
support staff related to the E-NFAC for the months the aquatics facility is in operation and accessible to
the public. Additionally, the YMCA has proposed the establishment of a long-term major maintenance
reserve fund and is requesting that the City contribute $12,000.00 per year for an initial period of 10 years,
with the option to renew for two additional five year periods. The YMCA would provide an annual dollar-
for-dollar match. The fund would be used for the repair and replacement of items associated directly with
the E-NFAC. The combination of these two financial considerations would equate to a total initial
operational outlay of$71,000.00 in Fiscal Year 2017, $72,180.00 in Fiscal Year 2018, $73,384.00 in Fiscal
Year 2019, etc. Funding will be requested to meet the contractual obligation for the Support Agreement in
the Fiscal Year 2017 proposed operating budget of the General Fund.
The proposed location for the new Southeast YMCA is in COUNCIL DISTRICT 8.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above
recommendations and adoption of the attached appropriation ordinance, funds will be available in
the Fiscal Year 2016 General Capital Improvement Program as appropriated in the General
Capital Projects Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accouni Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
5 30100 0800450 4910100 100036 2016 $2,300,000.00
15)301001 0800450 100036 2016 $2,300,000.00
FROM
Fund Department Accoun Project Program ctivit Budget i Reference # Amount
ID ID Year Chartfield 2
11)301001 0800450 1 100036 1 2016 $2,300,000.00
Logname: 80FORTWORTHYMCA LOAN AGREEMENT Page 3 of 4
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Richard Zavala (5704)
Additional Information Contact: Richard Zavala (5704)
Logname: 80FORTWORTHYMCA LOAN AGREEMENT Page 4 of 4