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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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 l !► jL a-y- � x d f � t �y x_ M g n .,?.. viw �or _ -mw Ina t � s .L d a t a y P, .. IIA S: } � L 1 i } l No, cm P S • 6� w ffi tl0 � 'JEROME x 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