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HomeMy WebLinkAbout2003/01/14-Minutes-HEDC City of Fort Worth City Council Economic and Community Development Committee Highlights of the Meeting Held January 14, 2003 Committee Members Present: Jeff Wentworth, Wendy Davis, Frank Moss, Clyde Picht Council Members and City Staff Present: Chuck Silcox, Bette Chapman, Hugh Davis, Sundra Davis, Deidra Emerson, Dale Fisseler, Cynthia Garcia, Ossana Hermosillo, Tom Higgins, Chun-I Lu, Christine Maguire, Karen Meunier, Patrina Newton, Marcella Olson, Reid Rector, Bob Riley, Robert Sturns, Peter Vaky, Jerome Walker, Ardina Washington Call to Order: Chairman Jeff Wentworth called the meeting to order at 1:15 p.m. Approval of Minutes from the Meeting Held on December 10, 2002: Committee Member Frank Moss moved to approve the minutes. The motion was seconded by Committee Member Clyde Picht and carried. Discussion and Consideration of a Wastewater Contract and Development Plans with AquaSource Inc. for the Justin Ranch/Harriet Creek Development: Development Director Bob Riley began the presentation and explained that the primarily residential 1600-acre development under discussion was located west of Texas Motor Speedway and northwest of Alliance Airport. He said that Aquasource holds the Certificate of Convenience and Necessity(CCN) to provide water services in the area, but there is not a CCN on wastewater. Mr. Riley added that the developer of the substantial ten-year development has expressed interest in future annexation, and that he wanted to make the Committee aware that aff was holding discussions on annexation with the developer. Mr. Riley then introduced Water Department Director Dale Fisseler. Mr. Fisseler presented maps of the area and explained that, in an effort to develop a reasonable plan for orderly growth in the ETJ, staff has engaged in preliminary negotiations to develop a wastewater agreement with Aquasource, which holds both the CCN for water services and a permit for a wastewater treatment plant. He said that Aquasource was willing to provide the size of pipes requested by the City, to meet all City requirements for development in the ETJ and to meet City of Fort Worth fire protection requirements. Mr. Fisseler further explained that staff was endeavoring to keep the options open for Council and to insure that the City would be the provider of water and wastewater services should the area ever be annexed. He then asked the Committee for direction on the concept presented and for authorization to pursue a more detailed wastewater agreement with Aquasource. Mr. Wentworth asked if any preliminary estimates were available on the wastewater treatment costs. Mr. Fisseler said there would be no cost to the City, because under the agreement, any costs would be the developer's responsibility. Committee Member Wendy Davis asked if Mr. Fisseler had any concerns about the precedent this type of agreement would set for future developments that might try to come into the City with substandard infrastructure. Mr. Fisseler said that he was hopeful this agreement on wastewater would be an opportunity to develop a model for such projects and a transition plan for the ETJ. He said that initially he had had similar concerns, but he had found that the failure to work out cooperative agreements led to substandard wastewater reatment plants in the ETJ and environmental problems. He added that this plan would take the water and UPastewater systems out of the annexation process, and it would give Council more options in annexation decisions. Mr. Fisseler acknowledged that the matter was very complicated, but said that staff felt this was a good place to start. Page 1 of 3 Ms. Davis then asked Mr. Riley if staff was trying to develop a voluntary limited purpose annexation plan with the developer. Mr. Riley said that this was correct. He said the plan would provide benefits for the developer, in addition to giving the City a better planning tool to go through the CIP process. Mr. Riley added that the greveloper had agreed with the plan in concept. Mr. Picht asked Mr. Fisseler to define the standards that he had previously mentioned. Mr. Fisseler explained that any wastewater treatment plant would be required to meet the minimum state standards on wastewater treatment; however, the City of Fort Worth has a higher standard because of its size, and if developments do not meet those standards, the City must bear the cost of replacing the system when the areas are annexed. In addition, Mr. Fisseler said, if there are a number of the smaller treatment plants, which all discharge into the same channel as the City, the water in the discharge channel becomes degraded, and the City must then pay even more to clean it before it is discharged into Lake Grapevine, the water quality of which dictates the costs at the City's treatment plant. Mr. Picht then asked about the long-term cost of buying the system after annexation. Mr. Fisseler presented a chart of estimated costs and revenues and said that a very preliminary estimate to buy out the system in year ten was $2 million. Mr. Wentworth asked why the City's revenue rose in year ten, according to the estimates. Mr. Fisseler explained that the primary reason for this rise in revenue was because the City would become both the water and wastewater provider rather than just the wastewater wholesale provider. Mr. Fisseler added that the chart represented only utility costs and revenues and did not show tax revenues. Mr. Moss asked what the City would do about wastewater if the capacity of the previously mentioned 18-inch line already in place in the development was exceeded. Mr. Fisseler explained that if this should happen, the ity would have to build another line parallel to the existing 18-inch line to the point where it ties into a 30-inch ne, which has ample capacity, or construction of a new line in an alternate location would be considered. Mr. Moss then asked about the areas where annexation was being considered. Mr. Fisseler said that the next phase of the Harriet Creek CFA would be on the next Council agenda. Mr. Moss then asked about the water/wastewater capacity for future development. Mr. Fisseler said that the City's TRA contract states that they will expand the plant to serve any area in Fort Worth's ETJ that the City wants to serve. Mr. Wentworth asked if there was enough room in the right-of-way to add an 18-inch line. Mr. Fisseler said that he was not sure, but staff was in the process of acquiring additional easements. Mr. Picht asked if the Beechwood Development had been considered in this plan. Mr. Fisseler said that the lines were designed with capacity for Beechwood and part of the Hillwood Development, but the developments would be served on a first-come, first-served basis. However, he said, if more capacity was needed, then the extra line would be added. Mr. Picht asked about the cost of this to current rate-payers. Mr. Fisseler said that some of the costs were taken care of through impact fees, but some of the costs would be borne by current and future rate-payers and by the developer. Mr. Wentworth asked the Committee if there was a consensus for staff to pursue discussions with Aquasource. The Committee agreed that staff should do so. Discussion and Consideration of Reallocating Community Development Block Grant Funds for the Jennings, May, St. Louis Model Block: ousing Director Jerome Walker made the presentation (attached). He explained that the Jennings, May, St. uis Neighborhood Association was requesting that $15,760.92 in Model Block Community Development Funds be reallocated to assist in the rehabilitation of Old Firehouse No. 10. Mr. Walker asked the Committee to Page 2 of 3 recommend the reallocation and to recommend amending the CDBG Year XX Annual Consolidated Plan to reflect the reallocation. Mr. Picht asked what was not currently being funded in the JMSL Model Block Program. Mr. Walker explained Olat the Neighborhood Association had completed all of their Model Block activities, and the reallocation represented an excess of funds. Mr. Wentworth asked if the $15,760.92 was sufficient to renovate the firehouse. Mr. Walker said that the amount was sufficient to complete repairs that would allow the building to receive a Certificate of Occupancy, but the Neighborhood Association was still seeking private donations to complete the renovations. Mr. Picht asked who maintains the city-owned building. Ms. Davis explained that the Neighborhood Association has maintained the building and will continue to do so. Ms. Davis moved to approve the reallocation and the amendment. The motion was seconded by Mr. Moss and carried. Discussion and Consideration of Awarding Community Housing Development Organization (CHDO) Program Funds to Ability Resources, Inc. for Predevelopment And Land Acquisitions Activities for the Proposed Willow Bend Creek Apartments: This item was deferred to a later meeting. Executive Session: The Economic and Community Development Committee conducted a closed meeting to discuss or deliberate economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. *equests for Future Agenda Items: r. Picht asked to be updated on projects that had been discussed in a previous Executive Session. Mr. Moss requested a presentation on emergency repairs for housing, the availability of funding for this and efforts that might be made to increase the amount of funding available. Adjourn: The meeting adjourned at 2:07 p.m. The next meeting will be February 11, 2003. Page 3 of 3