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HomeMy WebLinkAboutOrdinance 22221-05-2016 ORDINANCE NO.22221-05-2016 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE 2008 BOND PROGRAM RESIDUALS FUND BY $11,353,994.00 FOR VARIOUS PROJECTS AS DETAILED HEREIN; 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 2008 Bond Program Residuals Fund of$11,353,994.00, from available revenue, in the following projects and amounts and reduced fund balance in the Street Improvements 2008 Fund by the same amount: Project ount Montgomery Street $3,405,620.00 Old Decatur Road $1,800,000.00 singer Road _ $3,350,000.00 012 4CIP Street Reconstruction $2,798,374.00 (Programmable Project SECTION 2. 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 3. 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 LEGALITY:'L De71ycff ro , ssistant City Attorney Pecrea Sry ADOPTED AND EFFECTIVE:May 17,2016 Ordinance No.22221-05-2016 Page 1 of I City of Fort Worth, Texas Mayor and Council Communication COUNCIL'ACTION: Approved on 5/17/2016 - Ordinance No..22220-05-2016, 22221-05-2016, 22222-05-2016 & 22223-05-2016 DATE: Tuesday, May 17, 2016 REFERENCE NO.: G-18738 LOG NAME: 13PROJECT FUNDING RECOMMENDATIONS SUBJECT: Find That Conditions Have Materially Changed Such That Lakeshore Drive Project Proposed in 2008 Bond Program is Unwise and Unnecessary and Cancel Project; Find That Street and Storm Sewer Improvement Projects from the 2004 and 2008 Bond Programs are Substantially Complete; Find That Identified Projects Constitute Eligible Expenditures of Residual Funds; Approve Transfer of Remaining Debt Proceeds from Capital Funds to Newly Created Residuals Funds; and Adopt Ordinances Appropriating Funds for Identified Projects in Newly Created Residuals Funds and Reallocating Previously Appropriated Funds within the General Capital Projects Fund (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1) Find that conditions have materially changed so that the Lakeshore Drive project as proposed in the 2008 Bond Program is unwise and unnecessary and cancel that project; 2) Find that the street and storm sewer projects in Proposition One of the 2004 Bond Program are substantially complete and that the supplemental projects identified below are within the voted purposes of the bond proposition and constitute eligible expenditures for the remaining funds in the amount of$4,679,869; 3) Find that the street improvement projects in Proposition One of the 2008 Bond Program are substantially complete and that the supplemental projects identified below are within the voted purposes of the bond proposition and constitute eligible expenditures for the remaining funds in the amount of $11,353,994; 4) Find that the projects identified below are within the purposes identified in the published notices of intent for previously issued certificates of obligation and constitute eligible expenditures for the remaining funds in the amount of$13,845,414; 5) Approve the transfer of$4,679,869 from the Street Improvements Fund (2004 Bonds) to the 2004 Bond Program Residuals Fund, and adopt the attached ordinance increasing estimated receipts and appropriations in the 2004 Bond Program Residuals Fund in the same amount; 6) Approve the transfer of funds from the Street Improvements 2008 Fund (2008 Bonds) to the 2008 Bond Program Residuals Fund in the amount of$11,353,994, and adopt the attached ordinance increasing estimated receipts and appropriations in the 2008 Bond Program Residuals Fund in the same amount; 7) Approve the transfer of funds from the 2007 Critical Capital Program and the Street Logname: 13PROJECT FUNDING RECOMMENDATIONS Page I of 5 Improvements Supplemental Fund to the Street Improvement COs Residuals Fund in the amount of $13,845,414, and adopt the attached ordinance increasing estimated receipts and appropriations in the Street Improvements COs Residuals Fund in the same amount; and 8) Adopt the attached ordinance reallocating $9,834,188 in previously appropriated funds in the General Capital Projects Fund for various projects without increasing total appropriations in the Fund to use freed up, unrestricted, pay-as-you-go capital funding for other projects. DISCUSSION: The purpose of this Mayor and Council Communication is to cancel a planned bond project that changes in material circumstances have rendered unwise and unnecessary and to reallocate residual bond and certificate of obligation funds to eligible projects, including voter-approved projects from the 2014 Bond Program that have funding shortfalls and previously approved and funded pay-as-you-go capital projects, and to reallocate unrestricted dollars to other eligible capital projects. Detailed information on the nature and reasons for the various shortfalls in the 2014 Bond Program projects is included in an attachment to this M&C. As a continuation of clean up and closeout of funds and projects funded by the 2004 and 2008 Bond Programs and associated certificates of obligation, staff identified more than $52,000,00.00 in funds that had not been moved into specific projects or that remained following completion of projects. Of that amount $22,740,633.00 has now been appropriated into specific projects (M&Cs C-27677 and G-18719), leaving a remaining amount of$29,879,277.00 in street-related funding. Staff has identified a number of projects that would be within the voted purposes of the bond funds and within the purposes outlined in the published notices of intent for the certificates of obligation. Staff therefore recommends that the City Council approve this M&C, which adopts findings and appropriations ordinances to reprogram residual bond and certificate of obligation funds to identified projects. Cancellation of Lakeshore Drive Project In 2008 Fort Worth voters approved issuance of$232,900,000 in bonds for" Street Improvements." The booklet distributed prior to the 2008 bond election identified the projects that the City intended to undertake with those funds. One included project was improvements to Lakeshore Drive from Wilbarger to Berry. The bond booklet also included a statement advising voters that the City Council reserved "the right to abandon or modify a project if, in the council' s opinion, conditions materially change so that the project as originally proposed is unwise or unnecessary" and to "direct that the bond proceeds be expended for other projects within the voted purposes of the bonds." Approval of Recommendation 1 would find that, as a result of material changes in circumstances, including growing needs for other street-related infrastructure in the vicinity compared to the originally proposed, low-projected-demand roadway, the Lakeshore Drive project as proposed is no longer wise or necessary and is therefore cancelled. A separate M&C is being finalized and will be coming forth shortly in order to reallocate the $6,521,991.00 remaining in that project to other projects within the voted purposes of Proposition One. Those dollars are separate from and in addition to the funds addressed in the remainder of this M&C. 2004 Bond Program Funds Proposition One of the 2004 bond election authorized issuance of$232,900,000 for"Street and Storm Sewer Improvements"with the bond booklet identifying various projects and programs that were intended to be completed with those funds. The following amounts remain on hand within various allocations following substantial completion of all of the street and storm sewer projects identified in the bond booklet: Logname: 13PROJECT FUNDING RECOMMENDATIONS Page 2 of 5 (Description � � Amount Drainage - ---------_-- _�-(-- ---__ $157,118.00 Street Lights $415,671.00 Sidewalks ( $83,736.00 Intersections $74,788.00 [Neighborhood Streets $234,623.00 Traffic Signals w ( $234,810.00 [Enhanced CFA Urban Design $1,279,123.00 arterials ��� $2,200,000.00 (Total �� $4,679,869.00 The following arterial projects were included in the 2014 Bond Program but, due largely to rapidly rising construction costs, are currently underfunded: [Project _ _ Amount F ccart Avenue and McPherson_ _Bivd_ [ —$2,135,489.00 Montgomery Street $2,544,380.00 Total $4,679,869.00 Approval of recommendations 2 and 5 would (i) find that all street and storm sewer projects of the 2004 Bond Program are substantially complete, (ii) find that the proposed use— addressing shortfalls in arterial road projects in the 2014 Bond Program — is within the voted purpose of the bonds and therefore constitutes an eligible expenditure of these funds, and (iii) appropriate the residual to the specified projects. 2008 Bond Program Funds In the 2008 Bond Program, voters authorized issuance of$232,900,000 for"Street Improvements."With the cancellation of Lakeshore Drive, funding from which will be addressed via separate M&C, all of the street-related projects identified in the bond booklet are substantially complete, and the following amounts remain available within the allocations identified in the bond booklet: Description [ Amount [Bridges $48,452.00 (Intersection Revisions _ �A $86,328.00 [Neighborhood Streets �C $9,009,784.00 _ __ -__._ (traffic Signals J �� _[� $1,491,179.00 [ransportation Grant Match_ ( $718,251.00 �fotal _- -- - ------- (-----$11,353,994.00 The following citywide street construction / reconstruction /rehabilitation projects were included in the 2014 Bond Program but are currently underfunded: !Project fAmount _ _gom-r - ----_ Montgomery_—Street- -e [Old Decatur Road $1,800,000.00 �Risinger Road �� $3,350,000.00 X014 CIP Street Reconstruction $2,798,374.00 Programmable Project Logname: 13PROJECT FUNDING RECOMMENDATIONS Page 3 of 5 Total C $11,353,994.001 In approving Recommendations 3 and 6, the City Council would be (i) finding that all street-related projects of the 2004 Bond Program are substantially complete, (ii) finding that the proposed use — addressing shortfalls in citywide street construction /reconstruction /rehabilitation projects in the 2014 Bond Program — is within the voted purpose of the bonds and therefore constitutes an eligible expenditure of these funds, and (iii) appropriate the residual to specified projects. Certificate of Obligation Funds From 2007 to 2013 the City issued certificates of obligation (CO) to address funding shortfalls in the 2004 and 2008 Bond Programs and to fund other critical capital needs, including street-related improvements, with intended uses outlined in notices of intent that were published prior to each series of CO issuance. The CO-funded street projects are all substantially complete and the following funds remain within the originally planned allocations: ;Description Amount rNeighborhood Streets ( _$4,571,719.00 (Facilities $3,247,508.00 Intersections $89,674.00 �fotal $13,845,414.00 With the exception of School Safety Devices, the following projects were included in the 2014 Bond Program and are underfunded or funded out of unrestricted pay-as-you-go capital dollars that could be used to address other capital needs: Project I��� Amount 014 CIP_Street__Reco_nstruction $3,265,126.00 Programmable Project _ FAni Iter Expansion ,100.00 Contract Street Rehabilitation _[_ __ $9,834,188.00 ool Sch Safety Devices (— $250,000.00 [Total r $13,845,414.00 Approval of Recommendations 4 and 7 would (i) find that the proposed use —addressing shortfalls in citywide street construction / reconstruction / rehabilitation projects in the 2014 Bond Program and funding planned but unfunded devices to improve traffic safety in the vicinity of schools — is within the purpose of the certificates of obligation as described within the applicable notices of intent and therefore constitutes an eligible expenditure of these funds, and (ii) appropriate the residual to specified projects. NOTE —A portion of this funding will replace previously appropriated pay-as-you-go capital dollars so that those unrestricted funds can be used on other eligible capital projects. Reallocation of Previously Appropriated Pay-As-You-Go Capital Funds Reallocating almost $10 million in previously approved contract street maintenance expenses to residual CO funds frees up the unrestricted pay-as-you-go capital dollars for use in addressing shortfalls and needs in other capital projects. Staff recommends that the following projects be funded with those Logname: 13PROJECT FUNDING RECOMMENDATIONS Page 4 of 5 unrestricted dollars: (Project _ � T �_ __ Amount I4 CIP Proposition_ Two Park______ $3,363,128.00 201Projects(Detailed projects attached) (Fire Station 42 (Spinks) $776,288.00 [E. Lancaster Express Library_ $781,311.00 Mransportation System Asset $1,150,000.00 anagement _ (Trans. Impact Fee Study Update $100,000.00 (Roof Replacements __F___ $613,461.00 (Street Light Repairs ( $150,000.00 H_arley St. Loan Repayments_ $2,200,000.00 2018 Bond Program—Projects T �m $700,000.00 Estimating Approval of Recommendation 8 would reappropriate these dollars as outlined in the chart. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the 2004 Bond Program Residuals Fund, the 2008 Bond Program Residuals Fund, the Street Improvements CO's Residuals Fund, and the General Capital Projects Fund. Fund Identifiers (FIDs) are attached and will be updated upon receipt of new fund and project numbers. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Proje c Program ctivity Budget Reference # moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Aaron Bovos (8517) Additional Information Contact: Suzie Wagner (7806) Logname: 13PROJECT FUNDING RECOMMENDATIONS Page 5 of 5