HomeMy WebLinkAboutOrdinance 22835-08-2017 Ordinance No. 22835-08-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE SERIES 2017 ROCK CREEK RANCH PID MAJOR IMPROVEMENT PROJECT
FUND, SUBJECT TO THE SALE OF SPECIAL ASSESSMENT REVENUE BONDS AND
RECEIPT OF PROCEEDS, FOR THE PURPOSE OF PROVIDING UP TO $2,759,319.00
FOR WATER RELATED MAJOR IMPROVEMENTS, UP TO $5,724,317.00 FOR
SANITARY SEWER RELATED IMPROVEMENTS AND UP TO $1,300,000.00 TO PAY
FOR ISSUANCE AND RELATED COSTS; 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
EXAS:SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2016-2017 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Series 2017 Rock Creek Ranch PID Major Improvement Project Fund, subject to the sale of special
assessment revenue bonds and receipt of proceeds, for the purpose of providing up to $2,759,319.00 in
funding for water related major improvements, up to $5,724,317.00 for sanitary sewer related
improvements, and up to $1,300,000.00 to pay for cost of issuance, underwriting fees, and paying a portion
of the costs incidental to the organization of the District.
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. 22393-09-2016 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said prior ordinances and appropriations are hereby expressly repealed.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.
ROVED S TO FORM AND LEGALITY: CITY SEC ET
De i cElr y, Senior Assistant City Attorney a J. Ka r
ADOPTED AND EFFECTIVE: August 15, 2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/15/2017 - Ordinance Nos. 22833-08-2017, 22834-08-
2017, & 22835-08-2017
DATE: Tuesday, August 15, 2017 REFERENCE NO.: G-19079
LOG NAME: 13ROCK CREEK RANCH PID 2017BOND
SUBJECT:
Adopt Ordinance Authorizing Issuance of the City of Fort Worth, Texas Special Assessment Revenue
Bonds, Series 2017 (Fort Worth Public Improvement District No. 17 (Rock Creek Ranch) Major
Improvement Project) (Bonds) for the Purpose of Paying a Portion of the Costs of the Major Improvements
Within the PID, Paying a Portion of the Interest on the Bonds During and After the Period of Acquisition and
Construction of the Major Improvements, Funding a Reserve for the Payment of Principal and Interest on
the Bonds, Paying a Portion of the Costs Incidental to the Organization of the District and Paying the Cost
of Issuance of the Bonds; Authorizing Execution of All Related Documents; Ordaining Related Matters and
Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (a) authorizing the issuance and approving the sale of Bonds in the
principal amount set forth in the attached ordinance for the purpose of(i) paying a portion of the costs of
the Major Improvements within the PID; (ii) paying a portion of the interest on the Bonds during and after
the period of acquisition and construction of the Major Improvements; (iii) funding a reserve for the
payment of principal and interest on the Bonds; (iv) paying a portion of the costs incidental to the
organization of the district and (v) paying the cost of issuance of the Bonds and (b) approving and
authorizing the execution of the Indenture of Trust setting for the terms of the Bonds and securing the
pledge of assessments to the payment thereof; (c) approving and authorizing the execution of the Bond
Purchase Agreement, pursuant to which Stifel, Nicolaus & Company, Incorporated, agree to purchase the
Bonds from the City; (d) authorizing and approving the use of the Preliminary Limited Offering
Memorandum and Final Offering Memorandum in connection with the pricing and sale of the Bonds and
(e) authorizing and approving the execution of the Continuing Disclosure Agreement pursuant to which the
City undertakes to make certain disclosure with respect to the Bonds as required by the Securities and
Exchange Commission Rule 15c2-12 and (f) authorizing and approving the execution of the Agreement
Regarding Conveyance of Right of redemption and Wavier of Agricultural Valuation - Fort Worth Public
Improvement District No. 17 (Rock Creek Ranch) between the City, the Developer and the Landowners,
pursuant to which the Landowners agree, among other things, to waive the rights of redemption in the
event of any foreclosure sale of property within the PID.
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Series 2017
Rock Creek Ranch PID Major Improvement Project Fund by $8,483,636.00, subject to the sale of special
assessment revenue bonds and receipt of proceeds, to provide $2,759,319.00 in funding for water related
improvements and $5,724,317.00 for sanitary sewer related improvements and up to $1,300,000.00 to
pay for bond underwriting fees, cost of issuance, and a portion of the costs incidental to the organization
of the PID;
3. Adopt the attached ordinance increasing, subject to the sale of special assessment revenue bonds and
Logname: 13ROCK CREEK RANCH PID_2017BOND Page I of 3
receipt of proceeds, estimated receipts and appropriations in the Rock Creek Ranch PID Debt Service
Fund by up to $1,550,000.00 in the required reserve account, to fund the required reserve and by up to
$3,000,000.00 in the capitalized interest account, to fund the payment of interest on the bonds during and
after the period of acquisition and construction of the major improvements.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of the
Bonds that will allow the City of Fort Worth (City) to fund major water and sanitary sewer improvements
associated with Fort Worth Public Improvement District No. 17 (Rock Creek Ranch).
Staff is recommending that these bonds be sold to Stifel, Nicolaus & Company, Incorporated pursuant to a
bond purchase agreement resulting from a negotiated sale process conducted as a public
underwriting. The Bonds will have the terms set forth in the Indenture of Trust attached to the ordinance
and will be non-rated 20-year bonds to match the timing of the assessments' annual installments. Bonds
will be sold only to Qualified Institutional Investors upon execution of an Investor Letter attached to the
Preliminary Limited Offering Memorandum. The purpose of the fully funded debt service reserve fund is to
manage unforeseen payment delinquencies and timing of foreclosure proceedings.
Proceeds from the sale of the Bonds will be used to pay the cost of major improvements and of bond
issuance and to fund the required reserve and capitalized interest accounts. The approximate costs for
each are presented in the table below:
Use of Bond Proceeds F Amount
Water Infrastructure $2,759,319.00
Sanitary Sewer Infrastructure F $5,724,317.00
Other Fund Deposits:
Debt Service Reserve Requirement $1,550,000.00
Capitalized Interest $3,000,000.00
Cost of Issuance, Underwriting, Organizing District F $1,300,000.00
Total F—s 14,333,636.00
The exact amount of the costs of issuance, capitalized interest and reserve will fluctuate slightly based on
the final terms of sale. Appropriations will be limited to the amounts actually received and needed for
each identified purpose.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon adoption of the actions provided within this Mayor and Council
Communication, the sale of the City of Fort Worth, Texas, Special Assessment Revenue Bonds, Series
2017 (Fort Worth Public Improvement District No. 17 (Rock Creek Ranch) Major Improvement Project),
will proceed as necessary to provide funding of the Major Improvements outlined in the Fort Worth Public
Improvement District No. 17 (Rock Creek Ranch) Service and Assessment Plan.
FUND IDENTIFIERS (FIDs):
TO
Logname: 13ROCK CREEK RANCH PID_2017BOND Page 2 of 3
FunDepartment ccoun Project ctivity Budget Reference # moun
I ID ID IProgram
I Year I (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID YearChartfiield 2
CERTIFICATIONS:
Submitted for City Manager's Office by Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Alex Laufer (2268)
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