HomeMy WebLinkAboutOrdinance 25224-11-2021 ORDINANCE NO.25224-11-2021
AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE PUBLIC EVENTS CAPITAL FUND IN THE
AMOUNT OF $1,546.12, BY INCREASING ESTIMATED RECEIPTS AND
APPROPRIATONS IN THE FORT WORTH CONVENTION CENTER
EXPANSION AND PROJECT MANAGEMENT PROJECT(CITY PROJECT NO.
102582), AND DECREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FWCC MINOR RENOVATIONS AND REPAIRS
PROGRAMMABLE PROJECT (CITY PROJECT NO. P00053); 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 the budget of the City of Fort Worth for Fiscal Year 2021-2022, as enacted by Ordinance 25073-09-
2021, as amended, is hereby further amended to make the following adjustments in the Public Events Capital
Fund: increase estimated receipts and appropriations in the Fort Worth Convention Center Expansion and
Project Management project(City Project No. 102582)by$1,546.12,and decrease estimated receipts and
appropriations in the FWCC Minor Renovations and Repairs programmable project(City Project No. P00053)
by the same amount.
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 shallbe and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25073-09-2021 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
ofsaid prior ordinances and appropriations are hereby expressly repealed.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
Jannette S.Goodall(Dec 28,202113:25 CST)
Sr.Assistant City Attorney Jannette S. Goodall F 0 R T
City Secretary
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ADOPTED AND EFFECTIVE: November 30, 2021
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MAYOR AND COUNCIL COMMUNICATION MAP
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Copyright 2021 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for
informational purposes and may not have been prepared for or be suitable for legal, engineering,or surveying purposes.
It does not represent an on-the-ground survey and represents only the approximate relative location of property
boundaries. The City of Fort Worth takes no responsibility for the accuracy of said data.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/30/21 M&C FILE NUMBER: M&C 21-0934
LOG NAME: 21ARPA-FWCC EXPANSION FUNDING&PROJECT MANAGEMENT
SUBJECT
(CD 9)Approve Allocation of$52,000,000.00 in American Rescue Plan Act Funding for the Reinstatement of the Fort Worth Convention Center
Renovation Project, Including the Realignment of Commerce St., Suspended as a Result of Lost Hotel Occupancy Taxes Due to the COVID-19
Pandemic;Authorize Execution of a Professional Services Agreement with Broaddus&Associates, Inc. in an Amount Up to$2,313,927.00 for
Multi-Year Project Management Services Associated with the Renovation of the Fort Worth Convention Center; and Adopt Attached Appropriation
Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the allocation of up to$52,000,000.00 from the American Rescue Plan Act funds, Subtitle M (Coronavirus State and Local Fiscal
Recovery Funds)for a transfer to the Grants Capital Projects Federal Fund for the reinstatement of the Fort Worth Convention Center
Renovation project that was suspended as a result of lost hotel occupancy tax revenues due to the COVID-19 pandemic;
2. Authorize execution of a professional services agreement with Broaddus&Associates, Inc., in an amount up to$2,313,927.00,for multi-year
project management services associated with the renovation of the Fort Worth Convention Center;
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the Grants Capital Projects Federal Fund in the amount of
$52,000,000.00,transferred from the Grants Operating Federal Fund,for reinstatement of the Fort Worth Convention Center Renovation
project(City Project No. 102582);and
4. Adopt the attached ordinance adjusting estimated receipts and appropriations in the Public Events Capital Fund by increasing estimated
receipts and approrprations in the Fort Worth Convention Center Expansion and Project Management project(City Project No. 102582)by
$1,546.12,and decreasing estimated receipts and appropriations in the FWCC Minor Rennovations and Repairs programmable project
(City project No.P00053)by the same amount.
DISCUSSION:
This Mayor and Council Communication(M&C)takes actions to reinstate the Fort Worth Convention Center Renovation capital improvement
project. The actions consist of allocating$52,000,000.00 of American Rescue Plan Act(ARPA)Funding for the project, including the realignment
of Commerce Street;authorizing a professional services agreement with Broaddus&Associates, Inc., in the amount up to$2,313,927.00,for
multi-year project management services associated with the renovation;and reallocating$1,546.12 in previously appropriated funding left over
from before the project's suspsension.
The Fort Worth Convention Center started life as the Tarrant County Convention Center,constructed in 1966 and officially opened in 1968.The
building had an arena on the north end,convention and exhibit space in the middle,and the"JFK Theater"on the south end. The convention center
was expanded in 1983 by adding the"annex"to the east side of the exhibit halls and relocating Commerce Street. In 1997 the City purchased the
convention center from the County,and it was renamed the Fort Worth Convention Center. A"two phase"addition was started in 1999. Phase 1,
completed in 2002,demolished the JFK Theater and added exhibit space, meeting space, and ballroom space. Phase 2 was completed the
following year,adding more exhibit space,meeting space,and office space and giving the facility its current look.
A 2014"market and financial feasibility study"recommended renovation and expansion of the Fort Worth Convention Center in order to better
compete and serve multiple events. This study was updated in 2019,and based on these recommendations,in January of 2020 a Request for
Qualifications(RFQ)for a project management firm was published in the Fort Worth Star-Telegram and emailed to local and national project
management firms.
Nine highly qualified project management teams responded to this RFQ. A selection team(comprised of members of the Public Events
Department, Property Management Department,and representatives of Fort Worth downtown stakeholders)shortlisted three firms for interviews.
These firms were AECOM Technical Services, Inc., Broaddus&Associates, Inc.,and WT Partnership.
Interviews were held in March of 2020 as the COVID-19 crisis escalated. These interviews showed all three teams were highly qualified and
capable of providing the required staffing and expertise. Before a selection was formally recommended,it became clear that COVID-19 would
affect the tourism and convention industry and the project funding and schedule. The selection process was suspended until July 2021. At that
time, members of the selection team conducted follow up interviews with the three project management teams. It was determined at that time that
Broaddus&Associates, Inc.was currently the most qualified and most capable of providing the required staffing and expertise.
Diversity& Inclusion: Broaddus&Associates, Inc. is in compliance with the Business Equity Ordinance by committing to the 26.31%Business
Equity participation.The City's Business Equity goal on this project is 25%.
The expansion will be conducted in two phases, referred to as Phase 3A and Phase 3B. ARPA allocations in this M&C will be applied
towards Phase 3A,which will relocate the kitchens,demolish the annex on the east side of the exhibit halls,and straighten out Commerce Street
(allowing future development of a hotel). Phase 3B will demolish the arena,allowing construction of new exhibit hall and convention space, parking
and other support elements. Phase 3B will also complete the remodeling of the existing facility.
The Phase 3A budget is listed in the table below:
FWCC EXPANSION-PHASE 3A I COST
Project Management Contract Fee $2,313,927.00
Design Contract Fee $3,000,000.00
i
CMAR Construction Contract(Including Owners
Construction Contingency Allowance) �$44,000,000.00
Administration Costs, FFE, Etc. I $2,686,073.00
TOTAL$52,000,000.00
ALLOCATION OF ARPA SUBTITLE M FUNDING
Based on current projections, it is anticipated the ARPA appropriation of$52,000,000.00 will be split so that approximately$40,000,000.00 is
allocated to the renovation of the facility and$12,000,000.00 for Commerce Street infrastructure. The allocation between the two parts of the
project may be adjusted as it moves forward, but the total allocation of ARPA funding would not be increased without City Council approval.
ARPA allows local governments to expend funds to respond to the negative economic impacts of COVID,with Subsection 603(c)(1)(A)of Title VI
of the Social Security Act(added by ARPA)specifically authorizing aid to"impacted industries such as tourism,travel, and hospitality." In addition
Section 603(c)(1)(C)provides that ARPA can be used to replace revenue lost as a result of the COVID-19 public health emergency,with such
funds eligible to be used for the provision of government services.Treasury guidance construing the revenue recovery provision indicates such
funds can generally be used for any purpose for which a city could use its own funds,subject to certain narrow exceptions that are not applicable
here.
The renovation of the Fort Worth Convention Center will assist in the on-going recovery effort in the City's tourism,travel,and hospitality economic
sectors,and the realignment of Commerce Street should not only benefit the tourism sector(by facilitating development of a hotel)but is also a
project for which other City funds could be expended, meaning it is an eligible use of revenue recovery dollars. The project was therefore
determined to be a qualified priority by City Management for ARPA funding as approved by the City Council in M&C 21-0445 on June 22,2021.
Funding allocated by this M&C,in the total amount of$52,000,000.00,will be provided to the project in the amounts of$20,000,000.00 from
tranche 1 of ARPA funding received May 19,2021,and$32,000,000.00 from tranche 2,to be received on or before May 19,2022. Adoption of
the appropriation ordinance associated with Recommendation 3 will set up the capital funding structure.
The ordinance recommended for adoption under Recommendation 4 reallocates residual prior capital appropriations of$1,546.12, remaining
from before the projects suspension,to convert the FWCC Expansion&Project Management(City Project No. 102582)from a programmable
project to a static captial project. This action is needed as the status of this project now differs with the addition of grant funding.
The ARPA funding must be committed by December 31,2024 and spent by December 31,2026. Staff foresees no issue meeting that timeline,
and necessary reporting and documentation requirements of the ARPA legislation will be adhered to.
The following chart reflects the current status for allocation of the City's ARPA funding under Subtitle M,including all M&Cs on the November 30,
2021 Council Agenda:
M&Cs
Total CFW 21-0445 362021 AMERICAN
ARPA Subtitle $173,745,090.00 RESCUE PLAN
M Funding
Allocations
Approved $ 6,000,000.00 21-0794 25ARPA-VFW-TDG
To-Date
Allocations 21-0805 13ARPA-
Approved $ 1,000,000.00 ADMINISTRATION
To-Date
Allocations 21-0810 17ARPA
Approved $ 4,245,533.42 ALLOCATIONS EVANS&
To-Date ROSEDALE
REDEVELOPMENT
Allocations 21-0809 17ARPA
Approved $ 3,000,000.00 ALLOCATION CDFI
To-Date FRIENDLY AMERICA
Allocations 21-0811 17ARPA
Approved $ 2,400,000.00 ALLOCATIONS TO UNTHSC
To-Date TECHSTARS
Allocations 21-0814 19ARPA
Approved $ 10,100,000.00 ALLOCATIONS TO HOUSING
To-Date AND HUMAN SERVICES
PROJECTS
Allocations 21-0820 25ARPA-WRMC
Approved $ 300,000.00 MURAL PLAQUES
To-Date
Pending $ 8 000,000.00 23ARPA-VACCINATIONS
Allocation AND TESTING
Pending $ 4,560,000.00 25ARPA-
Allocation PED CAPITAL RESTORE
Pending $ 15,000,000.00 21 FUTURE CITY HALL ARPA
Allocation AND PEG FUNDING
Pending 21ARPA-FWCC EXPANSION
Allocation $ 52,000,000.00 FUNDING& PROJECT
MANAGEMENT(This M&C)
Remaining
Unallocated $ 67,139,556.58
Balance
The Fort Worth Convention Center is located in COUNCIL DISTRICT 9 but will benefit all council districts.
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that funds are available in the Grants Operating Federal Fund,and that upon approval of the above
recommendations and adoption of the attached appropriation ordinances funds will be available in the Grants Cap Projects Federal Fund FWCC
Expansion&Prj Mgmt project. Prior to an expenditure being incurred,the Public Events Department and Property Management Department have
the responsibility of verifying the availability of funds. Grant funds will be transferred to the Grants Cap Projects Federal Fund for the projects on a
reimbursement basis.
Submitted for City Manager's Office-W. Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Brian Glass 8088