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Home My WebLink AboutOrdinance 24772-04-2021ORDINANCE NO. 24772-04-2021 AN ORDINANCE INCREASING RECEIPTS AND APPROPRJA TIONS IN THE FORT WORTH PUBLIC IMPROVEMENT DISTRICT 7-HERITAGE, IN THE AMOUNT OF $252,000.00, FROM AVAILABLE UNRESERVED FUND BALANCE, FOR THE PURPOSE OF FUNDING MIDYEAR ADJUSTMENTS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRJOR 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 J. That in addition to those amounts allocated to the various City departments for Fiscal Year 2020-2021 in the Budget of the City Manager, there shall also be increased receipts and appropriations in the Fort Worth Public Improvement District Fund 7-Heritage in the amount of $252,000.00, from available unreserved fund balance, for the purpose funding midyear adjustments. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid , inoperative or void for any reaso n by a court of competentjuriscliction, 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 24446-09-2020 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY Assistant City Attorney Mary J. Kayser ADOPTED AND EFFECTIVE: April 6, 2021 City of Fort Worth, Texas Mayor and Council Communication DATE: 04/06/21 LOG NAME: 17PID7 MIDYEARFY21 SUBJECT M&C FILE NUMBER: M&C 21 -0225 (CD 4 and CD 7) Adopt Attached Resolution Amending the Fiscal Year 2020-2021 Budget and Five-Year SeNice Plan for Public Improvement District 7 -Heritage , Authorize an Amendment to City Secretary Contract No. 54791 , a Management and Improvement SeNices Agreement with FirstSeNice Residential Texas PID , LLC , to Increase the Management Fee by $26,675 .00 for a Total Amount Not to Exceed $154 ,603 .00, and Adopt Attached Appropriation Ord inance RECOMMENDATION : It is recommended that th e City Coun c il : 1. Adopt the attached resolution approving the revised Fiscal Year 2020-2021 Budget and Five-Year SeNice Plan for Public Improvement District 7 -Heritage to reflect amendments associated with a mid-year review ; 2 . Authorize an amendment to City Secretary Contract No. 54 791 , a Management and Improvement SeNices Agreement with FirstSeNice Residential Texas PID , LLC , to increase the management fee by $26 ,675.00 for a total fee amount not to exceed $154,603 .00 ; and 3. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Fort Worth Public Improvement District 7 - Heritage Fund in th e amount of $252 ,000 .00 in Fiscal Year 2020-2021 , from available , unreseNed fund balance . DISCUSSION: The City of Fort Worth Department of Economic Development administers the City's Public Improvement Districts (PIDs), in accordance with Chapter 372 of the Texas Local Government Code . The City's PID Policy outlines the need to proactively work with the PID managers to oversee the seNices being provided by the PIDs and the ir associated financial positions. Staff, along with the contracted PID management companies , have conducted mid-year reviews of the Public Improvement District 7 -Heritage (Heritage PID) Annual Budget (Budget) and recommend the following adjustments . The City contracts with FirstSeNice Residential Texas PID , LLC (FirstSeNice) to manage the Heritage PID . FirstSeNice has identified the need to increase the Heritage PID Budget by the use of fund balance in the amount of $252 ,000 .00, in order to align expenses w ith actual activities in the Budget and Five-Year SeNice Plan . The expense increa se can be attributed primarily to increases in insurance, additional water irrigation meters , and contract adjustments to landscaping and maintenance . The proposed increase in the use of fund balance for Heritage PID will decrease reseNes in the fund balance. Removal of the insurance line item does not relieve FirstSeNice from acquiring insurance in the types and amounts required under the contract. All such insurance costs are built into the current management fee . Revenue adjustments: Line Items to Previously Recommended Amended be Adjusted Approved FY21 Mid-Year FY21 Budget Budget Item Adjustment Item PID $1 ,802.016 .00 $0 .00 $1 ,802,016 .00 Assessments COFW Payment in lieu $191 ,096 .00 $0 .00 $191 ,096 .00 of SeNices PID Generated $35.00 $0 .00 $35.00 Revenue Use of Fund $478 ,21 s.o-,r-f"'\ l"\l"\I"\ "'"' <1''7'>./) ? 1 A /'l/'l Balance '"'"'"'"""""" Totals $2,471 ,365 .00 $252,000.00 $2,723,365 .00 Expenditure adjustments: Line Items to be Previously Recommended Amended Adjusted Approved FY21 Mid-Year FY21 Budget Budget Item Adjustment Item Management Fee $127 ,928 .00 1 - $26 ,675 .001 $154 ,603 .00 Utilities I Landscaping/Tree I Maintenance . Capital Improvements Insurance nnual Review otals $300 ,500 .001 ($70 ,000.00) $230 ,500 .00 $1 , 120,000.ooi $88 ,000 .00 $1 ,208 ,000 .00 $200 ,000 .00 $227,500 .00 $427 ,500 .00 $12 ,675 .00 $10 ,000 .00 [ $1,771,103.00 $252,0 Staff recommends an increase of $26 ,675 .00 in the management fee line item of the current Budget and Five-Year Service Plan . The insurance costs are considered administrative costs and, therefore , are being rolled into the Management Fee line item . The increase will also cover costs associated with the purchase of an all terrain vehicle , which will be used for the benefit of the Heritage PID. Staff supports FirstService's recommended mid-year budget adjustments . All other previously approved line items not mentioned above remain the same. Upon approval of the above recommendations , the total budgeted expenses for the Fiscal Year 2020-2021 w ill be $2,723 ,365 .00. This mid-year budget adjustment will decrease the unaudited , unassigned fund balance by a total of $252 ,000 .00 . The revised Budget and Five-Year Service Plan will take effect upon approval by City Council. The City and FirstService will amend the existing management contract to reflect the mid-year adjustments (City Secretary Contract No . 54791). The proposed changes to the Heritage PID Budget ma intain compliance with reserve requirements . The Heritage PID is located in COUNCIL DISTRICTS 4 & 7 . A Form 1295 is not required because: Th is 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 ord inance , funds will be available in the current operating budget, as appropriated , in the FWPID #7 -Heritage Fund . Prior to any expenditure being incurred , the Economic Development Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Jay Chapa 5804 Originating Business Unit Head: Robert Sturns 2663 Additional Information Contact: Crystal Hinojosa 7808