HomeMy WebLinkAboutOrdinance 19388-10-2010 Ordinance No. 19388-10-2010
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GENERAL UNRESTRICTED GAS LEASE REVENUE SECTION OF THE
CAPITAL PROJECTS RESERVE FUND IN THE AMOUNT OF $711,650.00, FROM
AVAILABLE FUNDS, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THE
GENERAL FUND FOR THE NEW SOUTHWEST MUNICIPAL COURT AND CITY
SERVICES FACILITY; 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 2010-2011 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Unrestricted Gas Lease Revenue Section of Capital Projects Reserve Fund in the amount
$711,650.00, from available funds, for the purpose of transferring said funds to the General Fund for the
new Southwest Municipal Court and City facility.
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.19355 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ordinances and appropriations are hereby expressly repealed.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:
sis ant City A orney
ADOPTED AND EFFECTIVE: October 5, 2010
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'JEROME
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: approved on 10151201`0 - Ord. No. 19388-10-2010 4119389-110-2010"' '
DATE: Tuesday, October 05, 2010 REFERENCE NO.: C-24515
LOG NAME: 02SOUTHWEST MUNICIPAL COURT FACILITY
SUBJECT:
Accept a Land Donation of 2.097 Acres Located at 3741 S.W. Loop 820, for the Southwest Branch of the
Municipal Court Authorize a 10 Year Lease to Purchase Agreement with the 3741 S.W. Loop 820, L.P., for
Improvements at Same Location, in the Amount of$711,650.00 and Adopt Appropriation Ordinances
(COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to accept the donation of 2.097 acres of land at 3741 S.W. Loop 820 upon
acceptance of the leased property improvements;
2. Authorize the City Manager to enter into a 10 year lease to purchase agreement with the 3741 S.W.
Loop 820, L.P., for an annual amount not to exceed $459,000.00;
3. Authorize the expenditure of up to $252,650.00 for one-time costs that include installation of IT
communication and alarm systems, moving expenses, additional equipment and furnishings;
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Capital Projects Reserve Fund - General Unrestricted Gas Lease Revenue by $711,650.00;
5. Authorize the transfer of$711,650.00 from the Capital Projects Reserve Fund - General Unrestricted
Gas Lease Revenue to the General Fund; and
6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
General Fund to $711,650.00.
DISCUSSION:
In March 2010, the City was approached by representatives of the former Southwest Bank
property at 3741 S.W. Loop 820 (aerial map attached). The property was available for a lease
or lease purchase and a staff team reviewed the property and improvements as a potential site
for a southwest satellite municipal court and city service facility. The 3741 S.W. Loop 820, L.P.,
has offered to donate the land (2.097 acres) that the 30,600 square foot building sits on as part
of the agreement. The estimated Tarrant Appraisal District value of the property donation is
$464,306.00. The current estimated Tarrant Appraisal District value of the improvements on the
property is $1,434,613.00 for a total value of land and buildings of$2,131,107.00. The addition
of $1,500,000.00 for needed renovations will bring the total estimated value to $3,631,107.00
Logname: 02SOUTHWEST MUNICIPAL COURT FACILITY Page I of 4
The current Municipal Court facility is too small to meet the current demands for services. Over
the last five years there has been 18 percent increase in the number of cases filed. The current
backlog for bench trials extends to 18 months resulting in a loss of revenue to the City and the
slow delivery of justice to the community. The addition of the two courts and support facilities at
the Southwest Municipal Court can reduce the time lag for bench trials to approximately six
months. The City has grown dramatically in the last 20 years but has not added any courtroom
capacity to address the growth. The location of this facility is consistent with the move towards a
strong central core of facilities in the downtown with distributed services in the regions of the
City close to those using city services.
The site and improvements will provide an excellent facility to serve the needs of citizens in
Southwest Fort Worth by providing Municipal Court and other city services. The facility is
located on the service road of S.W. Loop 820 just east of Trail Lake. The site is very accessible
as there is a Loop 820 exit at Trail Lake.
Terms of the Lease to Purchase
. 10 year term on the 30,600 square foot building where the building becomes property of
the City at the end of the lease
. Annual lease payment not to exceed $459,000.00
. Donation of 2.097 acres of land upon execution of the lease and acceptance of the
improvements
. 110 parking spaces and a shared parking agreement with the adjacent Southwest Bank
. Deposit of first and last lease payment
. No future banking use of the property
. Shared use of the Sign Post
. Building finish out financed as part of the annual lease payment
The lease to purchase and renovation of this facility will provide two courtrooms, support office
space, meeting rooms, counter space for Municipal Courts and the Water Department, office
space for Code Compliance, drive through bill and ticket paying and an electronic kiosk for the
payment of red light tickets.
The renovations needed to make the building ready to provide City and Municipal Court
Services are included and financed in the annual lease to purchase amount. The base rent for
the facility is $7.50 per square foot and additional rent shall be the amortized amount of the
build out costs. It is anticipated that the build out costs will not exceed $1,500,000.00, for a
maximum additional lease to purchase charge of$7.50 per square foot or$0.50 per square foot
per $100,000.00 of actual build-out cost. The maximum lease amount will be $15.00 per square
foot for an annual rent of$459,000.00. If the actual build out cost is less than the projected
estimate then the additional rent amount will be adjusted down to reflect the actual build out
cost.
One-time costs that the City must incur to occupy and use the building are estimated to be
$252,650.00. Those one-time costs include:
1. IT communication and alarm systems;
2. Moving expenses
3. Business equipment
Logname: 02SOUTHWEST MUNICIPAL COURT FACILITY Page 2 of 4
4. Additional furnishings
The Agreement will contain a termination provision that states that if the City terminates, the
landlord will accelerate the due date of all remaining rent, and upon the City's payment of the
remaining rent, the ownership of the building will become the City's.
Projected Schedule
Execute Lease to purchase agreement and associated documents
October 2010 through December 2010 - Build Out of Needed improvements
January 2011 - Move in and test period for the facility
February 2011 - Fully staffed and operational
Additional staffing for this facility is provided in the Water, Municipal Courts and Law
departments respective budgets and City Manager's recommended Fiscal Year 2011 budget.
This project is located in COUNCIL DISTRICT 6 and will serve the Southwest quadrant of the
City.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and approval of the attached appropriation ordinance, funds will be available in the current capital budget
of the Capital Project Reserve Fund and of the current operating budget of the General Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
4) GC10 446200 006060001000 $186.108.14 5)GC10 538070 006060001000 $186.108.14
4) GC10 446100 013010001000 $481,657.28 5)GC10 538070 013010001000 $525.541.86
4) GC10 446300 013010001000 $43.028.56 3) GG01 539120 0383000 $252.650.00
4) GC10 446600 013010001000 $757.44 2)GG01 537010 0383000 $459.000.00
4) GC10 446800 013010001000 $98.58
4) GC10 538070 006060001000 $186,108.14
4) GC10 538070 013010001000 $525.541.86
5)6)GG01 472010 0383000 $711.650.00
6IGG01 539120 0383000 $252,650.00
6) GG01 537010 0383000 $459.000.00
CERTIFICATIONS:
Submitted for CitXManager's Office by: Fernando Costa (6122)
Deidra Emerson (6760)
Originating Department Head: Randle Harwood (6101)
Logname: 02SOUTHWEST MUNICIPAL COURT FACILITY Page 3 of 4
Additional Information Contact: Randle Harwood (6101)
Logname: 02SOUTHWEST MUNICIPAL COURT FACILITY Page 4 of 4