HomeMy WebLinkAboutOrdinance 24103-04-2020 Ordinance No. 24103-04-2020
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
CFA BUCKET PROGRAMMABLE PROJECT OF THE GENERAL GAS LEASE CAPITAL
PROJECTS FUND IN THE AMOUNT OF $900,000.00, FROM AVAILABLE
TRANSFERRED FUNDS, FOR COVERING GAPS IN INSPECTION FEE COSTS;
AUTHORIZING THE CITY MANAGER,ACTING DIRECTLY OR THROUGH A DESIGNEE,
TO MAKE CERTAIN TRANSFERS AND ALLOCATIONS UP TO BUDGETED AMOUNTS;
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 2019-2020 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the CFA
Bucket Programmable Project of the General Gas Lease Capital Projects Fund in the amount of
$900,000.00, from available transferred funds, for covering gaps in inspection fee costs.
SECTION 2.
That,appropriations in the CFA Bucket Programmable Project of the General Gas Lease Capital Project Fund
identify and allocate monies that are anticipated to be needed to cover gaps when there is insufficient funding
for the inspection services needed in connection with community facility agreement ("CFA") projects funded
by developers. In accordance with Chapter X of the Charter of the City of Fort Worth, Texas, by adoption of
this ordinance,the City Council authorizes and delegates to City Manager, or his designee, authority,when a
gap in inspection fee funding exists, to enact and make transfers and allocations of such monies in a
cumulative amount not to exceed the total amount budgeted within the CFA Bucket Programmable Project,
with such transfers and appropriations to be made from general bucket programmable balance to the receiving
project's center/subproject within the CFA Bucket Programmable Project, provided, however, that such
transfers and allocations shall be reported to the City Council in periodic financial reports.
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 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 4.
That this ordinance shall be cumulative of Ordinance 23835-09-2019 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 5.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Denis C. McElroy, Asst. City Attorney Mary J. Kayser F C '21,
ADOPTED AND EFFECTIVE:April 7, 2020 �: '®�
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/07/20 M&C FILE NUMBER: M&C 20-0231
LOG NAME: 20CFA DEVELOPER GAP FUNDING
SUBJECT
Authorize Transfer of$900,000.00 of Available Funds from the TPW Gas Lease Project Legacy Fund to the General Gas Lease Capital Projects
Fund and Adopt Ordinance Appropriating Transferred Funds for Inspection Fees for Community Facility Agreement Projects and Delegating
Authority to Effect Transfers within the Inspection Fee Project Up to the Budgeted Total(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1.Authorize the transfer of$900,000.00 of available funds from the TPW Gas Lease Project Legacy Fund to the General Gas Lease Capital
Projects Fund for inspection fees for community facility agreements;and
2.Adopt the attached ordinance, increasing receipts and appropriations in the General Gas Lease Capital Projects Fund CFA Bucket
programmable project(City Project No.P00001)in the amount of$900,000.00 and delegating authority to the City Manager of his designee to
effect transfers within the project up to its appropriated total.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to transfer available money from an old capital fund(TPW Gas Lease Project
Legacy)that is slated for closure to a more current fund and appropriate the money in its new location for the purpose of addressing funding gaps
in inspection fees for community facility agreements(CFA)where the fees assessed and collected from the developer do not cover the actual
costs to inspect the infrastructure.
On May 5,2019,the City Council adopted new policies for the assessment and collection of inspection fees for CFAs(M&C G-19532).
Previously,the City charged developers a percentage of the total construction costs to cover inspection fees. Under the new process,the City
charges$245.00 per day for inspection fees.The revised framework was intended to better align the fees assessed to the actual cost of
inspections. However,there will be times that the fees assessed are less than the actual cost of the work performed.In addition, if a project
exceeds the estimated construction timeline,the City may incur inspection expenses before the City collects shortages from developers during
reconciliation of the project.
These funds will be used to ensure that services can be provided and paid for and subsequently balance and close the CFA projects once all work
is complete without halting construction of a developer's project.
CFAs and Delegated Authority
As development occurs throughout the City of Fort Worth,developers enter into contracts with the City to undertake private construction of public
infrastructure,such as roads or water lines(community facilities)needed to support private development plans.The CFA Ordinance requires that
developers construct community facilities in accordance with City standards and cover the costs of inspection oversight by the City to ensure City
standards are being met.
Staff will evaluate the fee structure biennially and recommend fee revisions during the fee strucuture review as part of the budget process. Gap
funding sources are needed to cover City costs when they exceed the contribution rates.Staff recommends the City Council transfer$900,000.00
of available gas well revenue funds to the current Gas Lease Capital Projects Fund and appropriate it into the CFA Bucket project for use in
covering CFA inspection fees when developer contributions are insufficient to cover the total costs of providing the inspection services.
The attached ordinance also delegates authority to the City Manager or his designee,when a situation arises as outlined above,to enact and
make transfers and allocations from the CFA Bucket programable project to individual CFA projects within the General Gas Lease Capital
Projects Fund as needed.As transfers from the designated appropriations are made,the remaining appropriated and designated total would be
reduced.As capital funds,once appropriated,the budgeted amounts would remain in the assigned CFA project until the money has been
expended or the project is completed.
The delegated authority granted by the attached ordinance is subject to the restriction that the total amount of all such transfers within the CFA
Bucket programmable project may not exceed the amount appropriated and designated for this purpose and is also subject to the requirement
that the City Manager periodically report the transfers and allocations to the City Council throughout the fiscal year.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will
be available in the General Gas Lease Capital Project(General Gas Lease Capital Prj)Fund CFA Bucket programmable project. Prior to an
expenditure being incurred,the Transportation&Public Works Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: William Johnson 7801
Additional Information Contact: Monty Hall 8662