HomeMy WebLinkAboutOrdinance 23630-04-2019Ordinance No. 23630-04-2019
AN ORDINANCE INCREASING APPROPRIATIONS IN THE AMERICAN AIRLINES ECFA
PROJECT OF THE 2014 BOND PROGRAM FUND BY UP TO $1,275,000.00, FROM
PROCEEDS OF BONDS, FOR THE PURPOSE OF MAKING STREET AND
TRANSPORTATION IMPROVEMENTS; ESTABLISHING 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 appropriations in the American Airlines
ECFA Project of the 2014 Bond Program Fund in the amount of $1,275,000.00, from proceeds of sale of
authorized bond, for the purposes of making street and transportation improvements associated with the
ECFA for the new American Airlines headquarters.
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 orjudgment 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. 23392-09-2018 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said prior ordinances and appropriations are hereby expressly repealed.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Denis C
ity Attorney
SECTION 4.
ADOPTED AND EFFECTIVE: �_ � �+GY�
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City of Fort Worth, Texas
• • • � •
COUNCii_ ACTION: Approved on 4/9/2019 -Ordinance No. 23630-04-2019
DATE: Tuesday, April 9, 2019
LOG NAME: 06ECFA FUNDS
REFERENCE NO.: **G-19521
SUBJECT:
Adopt Ordinance Appropriating Up to $1,275,000.00 in Enhanced Community Facilities Agreement (ECFA)
Authorized Funding from the 2014 Bond Program for Street and Transportation Improvements Near the
New American Airlines Headquarters; Authorize Use of Certain Proceeds from the 2014 Bond Program for
Transportation Infrastructure Benefitting Fort Worth Citizens but Owned by Texas Department of
Transportation; and Find that Construction of These Improvements Completes the ECFA Project as
Proposed in the 2014 Bond Program (2014 BOND PROGRAM) (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance, increasing receipts and appropriations in the American Airlines ECFA
Project of the 2014 Bond Program Fund by up to $1,275,000.00 from authorization for enhanced
community facilities agreement (ECFA) funding from the 2014 Bond Program for street and transportation
improvements associated with the ECFA for the American Airlines headquarters project; and
2. Formally authorize use of no more than $415,000.00 of the $1,275,000.00 in 2014 ECFA bond
proceeds for engineering costs associated with a highway off -ramp that will be located in and benefit
citizens of Fort Worth, but will be constructed and owned by the Texas Department of Transportation
(TxDOT); and
3. Find that construction of infrastructure for the American Airlines ECFA totaling $2,000,000.00 from
various City funds in accordance with the terms of this and prior Council action constitutes completion of
the ECFA project as contemplated in the 2014 Bond Program and direct that any remaining residual bond
capacity be made available for use on other street and transportation improvements in accordance with
the voted purpose of the bonds.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to clarify and memorialize matters
related to funding for street and transportation improvements under the Enhanced Community Facilities
Agreement ("ECFA") for the new American Airlines headquarters (AA HQ) project in far east Fort Worth.
As detailed below, funding for the project comes from a combination of transportation impact fee
revenues, debt proceeds in a previously appropriated programmable project, and funds authorized as part
of the 2014 Bond Program, and those funds will be expended in that order.
Appropriation of Enhanced Community Facilities Agreement (ECFA) Funds
In 2014, Fort Worth voters approved Proposition One of the Bond Program, which authorized the sale of
$219,740,000.00 in public securities for "Street and Transportation Improvements." The bond booklet that
was distributed to the public prior to the election identified $2,000,000.00 of that amount as being for
Logname: 06ECFA FUNDS Page 1 of 3
"Enhanced Public/Private Community Facilities Agreements," which was a project described as
encompassing "public/private partnerships, grant and other funding opportunities, for implementation of
transportation and related new development, redevelopment, streetscape projects, and other public
infrastructure, as necessary, to support these improvements."
In October 2018, the City Council authorized use of up to $2,000,000.00 in City funds, including ECFA
funds and transportation impact fee revenues, for transportation infrastructure improvements associated
with the AA HQ project (M&C C-28898). Due to the high volume of traffic associated with the headquarters
project, transportation improvements are being made that include widened roadways and turn lanes on
Trinity Boulevard, the Frontage Road of US Highway 360, and American Boulevard.
Use of transportation impact fees is limited under state law. Therefore, staffs plan was to fund those
portions of the project that are impact -fee -eligible first, then to use $725,000.00 from debt proceeds that
were previously appropriated in a programmable ECFA project (M&C G-19719, Ordinance 22171), and
finally to expend 2014 Bond Program proceeds as needed to make up the balance of the City's
$2,000,000.00 commitment.
MSC C-28898 allocated $1,275,000.00 in ECFA bond authorization from the 2014 Bond Program for the
project. Approval of the first recommendation and adoption of the attached ordinance will properly
document the appropriation of up to $1,275,000.00 in 2014 ECFA authorization for the AA HQ project. To
the extent any portion of the ECFA authorized funding from the 2014 Bond Program is not actually needed
to meet the City's commitment, the residual will be released for use on other street and transportation
improvements as discussed in more detail below.
Paying a Portion of Costs for State -Owned Infrastructure
At the time the prior M&C was approved, staff anticipated that ECFA dollars would be used for costs
related to the City -owned streets, including intersections feeding into or out of those streets. However, in
more recent conversations, American has identified engineering expenses for the redesign of an off -ramp
of Highway 360 that will serve the new headquarters as a cost for which it would like to utilize these
dollars.
Based on the traffic impact study, redesign of the off -ramp improvements at Trinity Boulevard provides
transportation improvements needed to improve site operational efficiency for the new AA HQ buildings
while minimizing impact to the local roadway system. The construction of the improvements to the offramp
will be completed by TxDOT at no cost to the City and will serve a public purpose of improving traffic
conditions on public roadways in the City. Sufficient controls are in place to ensure that this public purpose
is met.
The off -ramp in question will be located within the corporate limits of the City of Fort Worth and utilized by
its citizens. According to TxDOT design criteria, the off -ramp has a design life of 20 years, which equals
the period for which the City's bonds will be outstanding. It is also worth noting that the total $1,275,000.00
in 2014 ECFA authorization being appropriated to this project represents a little more than one and a half
two percent (1.52%) of the general obligation bonds to be sold later this year to provide this funding.
Because the off -ramp serves the public and is a government -owned transportation project located in and
benefitting citizens of the City of Fort Worth with an anticipated useful life greater than the bonds, staff
recommends City Council find and formally approve this use of funds as being within the voted purpose of
the 2014 transportation bonds. Approval of the second recommendation would serve as formal City
Council action making that finding and approval.
In accordance with the City's practice of issuing bonds in arrears, available resources in the General Fund
will be used to provide interim financing for the 2014 Bond Program ECFA-funded expenses until debt is
issued later this year. Once debt associated with this project is sold, bond proceeds will reimburse the
General Fund in accordance with the statement expressing official Intent to Reimburse that was adopted
Logname: 06ECFA FUNDS Page 2 of 3
as part of the ordinance canvassing the bond election.
Declaring Completion of ECFA Project
As indicated above, staff is recommending $1,275,000.00 in 2014 ECFA bond authorization be
appropriated for the AA HQ project to be used together with the remaining $725,000.00 programmable
ECFA appropriation under Ordinance 22171 to ensure adequate funds are available for the City to meet
its full $2,000,000.00 commitment.
To the extent transportation impact fees can be used to reimburse infrastructure costs as part of the City's
commitment, those dollars will be utilized first. Based on current budgetary figures and reimbursement
requests, staff anticipates that no more than $200,000.00 in expenditures will ultimately be made from the
transportation impact fee revenues. After those dollars are exhausted, the $725,000.00 from the
programmable will be utilized, meaning in all likelihood expenditures from the 2014 Bond Program will only
be a little over $1,000,000.00.
Because a total of $2,000,000.00 in City funding is being applied toward the AA HQ ECFA project, staff
recommends that the City Council find that completion of this project constitutes completion of the ECFA
project as proposed in the 2014 bond booklet and that City Council authorize any residual capacity from
the ECFA bond authorization that is not needed for the AA HQ project should be released for use on other
eligible expenses under Proposition One. Approval of the third recommendation serves to make these
findings.
The American Airlines headquarters is located in Council District 5 but is anticipated to be a major
employer and economic driver throughout the City as well as the entire region.
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 ordinance, funds will be available for American Airlines ECFA Project in the Critical
Capital Projects Fund, the 2014 Bond Program Fund, and the Transportation Impact Fee Capital Fund.
FUND IDENTIFIERS (FIDs):
and Department ccoun Project
ID ID
and Department ccoun Project
ID ID
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
rogram�Activity) Budget
II Year
Budget
Year
Jay Chapa (6122)
Susan Alanis (8180)
Randle Harwood (6101)
Steve Cooke (5134)
Janie Morales (7810)
Reference # �Amoun
Chartfield 21
Reference # I�4mou
Chartfield 2)
Logname: 06ECFA FUNDS
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