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HomeMy WebLinkAboutOrdinance 20305-07-2012Ordinance No. 20305 -07 -2012 AN ORDINANCF. INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE SPECIALLY FUNDED CAPITAL PROJECTS FUND IN THE AMOUNT OF $10,400,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF INTERIM FUNDING OF IMPROVEMENTS FROM NORTH RIVERSIDE DRIVE BETWEEN GOLDEN TRIANGLE BOULEVARD AND NORTH TARRANT PARKWAY; 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 COUNCII, OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2011 -2012 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Specially Funded Capital Projects Fund in the amount of $10,400,000.00, from available funds, for the purpose of interim funding of improvements from North Riverside Drive between Golden Triangle Boulevard and North Tarrant Parkway. 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.19911 -09 -2011 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Assistant C Attorney ADOPTED AND EFFEC'T'IVE: July 24,201 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION. Approved on 7/24/2012 - Ordinance No. 20305 -07 -2012. DATE: Tuesday, July 24, 2012 REFERENCE NO.: C -25761 LOG NAME: 17NRDINTERFUNDLOAN SUBJECT: Authorize Interest - Bearing Interfund Loan from the Aviation Endowment Gas Lease Fund to the Specially Funded Capital Projects Fund in the Amount of $10,400,000.00 for the Interim Funding of Improvements to North Riverside Drive /Old Denton Road Between Golden Triangle Boulevard and North Tarrant Parkway, Authorize Execution of Necessary and Related Documents to Effect the Loan and Adopt Appropriation Ordinance (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Suspend the Financial Management Policy Statements that require an interfund loan to be repaid within five years; 2. Authorize an interest - bearing Interfund Loan Agreement from the Aviation Endowment Gas Lease Fund to the Specially Funded Capital Projects Fund in the amount of $10,400,000.00 for interim financing of improvements to North Riverside Drive /Old Denton Road between Golden Triangle Boulevard and North Tarrant Parkway, pending contract execution; and 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Specially Funded Capital Projects Fund in the amount of $10,400,000.00. DISCUSSION: Due to increased development along North Riverside Drive /Old Denton Road and North Tarrant Parkway, traffic congestion has increased and safety has become a concern. To help alleviate this problem, the Tax Increment Reinvestment Zone Number Seven (TIF 7) Board of Directors approved funding for improvements to North Riverside Drive /Old Denton Road between Heritage Trace Parkway and Dalton Street on April 30, 2010. On September 14, 2010, the City's Housing and Economic Development Committee recommended supporting additional improvements to North Riverside Drive in -line with the community's priorities. In response to the Committee's recommendations, on September 30, 2010, the TIF 7 Board of Directors approved the execution of a Development Agreement with the City of Fort Worth for the widening of North Riverside Drive /Old Denton Road between Heritage Trace Parkway and Golden Triangle Boulevard (City Contract No. 41452 - Phase II), with the project to be financed through an Interfund Loan Agreement between the Aviation and Transportation and Public Works Departments. As design progressed, it became clear that the road improvement project would come in under budget. Therefore, the TIF 7 Board of Directors approved Amendment No. 1 to the Development Agreement on June 25, 2012 to expand the definition of "Project" to include design and construction costs to improve North Riverside Drive /Old Denton Road between Golden Triangle Boulevard to North Tarrant Parkway. Logname: 17NRDINTERFUNDLOAN Page I of 2 6nterfumd Loan Agreement Terms Once approved by City Council, the /nierfund Loan Agreement between the Transportation and Public Works and Aviation Departments will authorize the Aviation Department to loan $10,400,000.00 needed for road improvements to North Riverside Drive/Old Denton Road in accordance with the Revenue and Expenditure Policies for Gas Lease Revenues as outlined in the City's Financial Management Policy Statements (FMPS) and in accordance with the Federal Aviation Administration's Policy and Procedures Concerning the Use of Airport Revenue. Pursuant to the FMPS, loan repayment must be from an independent revenue source and not from the City's General Fund. In this case. the loan will be reimbursed by increment collected in theT|F 7 district. || in estimated that the T|F 7 district would re-pay the loan in annual poymentS, including interest, within seven years. Interest rate per annum will be equal to the interest rate on 10-year United States Treasury Notes in effect on the date of approval by City Council, currently estimated at 1.66 percent plus one percent. As this seven-year period is longer than the five-year payback policy outlined in the City's F&1PS. approval of the Interfund Loan Agreement will require suspension of the FMPS policy to re-pay the loan within five years. CERTIFICATION: There is no penalty for repaying the loan within a shorter timeframe. FISCAL INFORMATION / 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 current capital budget, aa appropriated, nf the Specially Funded Capital Projects Fund. CENTERS: FUND TO FundfAccount/Centers 2) C291 222125 0000000 3) C291 446200 202230172483 3) C291 541200 202230172483 CERTIFICATIONS: FROM Fund/Account/Centers $10,400,000.00 2)T125 137291 000125099901 Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Fernando Costa (5122) Jay Chapa (5884) RobertStunns (8003) Marguerite Allen (2235) Lognumc}7NDD[NTEBFDNQL0AN Page 2of2 aw(�« M � runo��t ra�euear�i �,.n. v. %a /r. j & � w a. . i t 12�,0 t- t pi!r s W� r FXI i III IT A ih �r LO 10 1 GOLDEN TRIANGLE BLVD, 2 Under Design by COFW HERITAGE TRACE PKWY. w ".. cD Complete . ............... DALTON ROAD V Developer CFA Project ., „ " 1 North Riverside Drive