HomeMy WebLinkAboutOrdinance 25748-09-2022 ORDINANCE NO.25748-09-2022
AN ORDINANCE ADJUSTING APPROPRIATIONS IN THE 2014 BOND
PROGRAM FUND IN THE AMOUNT OF $487,703.00, BY INCREASING
APPROPRIATIONS IN THE CFA-AA HEADQUARTERS P&T SIGN PROJECT
(CITY PROJECT NO. 101828),AND DECREASING APPROPRIATIONS IN THE
CFA-AMERICAN AIRLINES PVN PROJECT (CITY PROJECT NO. 101314) BY
THE SAME AMOUNT; 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 2021-2022 in the
Budget of the City Manager,there shall also be adjusted appropriations in the 2014 Bond Program Fund in
the amount of$487,703.00, by increasing appropriations in the CFA-AA Headquarters P&T Sign project
(City Project No. 101828),and decreasing appropriations in the CFA-American Airlines Pvn project(City
Project No. 10 13 14)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 shall be 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
of said prior ordinances and appropriations are hereby expressly repealed.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
Richard A.McCracken(Oct 3,202211:20 CDT) Jannette S.Goodall(Oct 3,202212:37 CDT)
Assistant City Attorney Jannette S. Goodall
City Secretary dR
e F.....,..r.
ADOPTED AND EFFECTIVE: September 27,2022 C.)
r
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/27/22 M&C FILE NUMBER: M&C 22-0735
LOG NAME: 06AAECFAI7-0192AMEND3
SUBJECT
(CD 5)Authorize Execution of Amendment No.3 to City Secretary Contract No.51820, an Enhanced Community Facilities Agreement with
American Airlines, Inc.for the Construction of Road Improvements on Trinity Boulevard,American Boulevard and US Highway 360 Frontage Road
Increasing City Participation by$103,609.90,City Participation with Regional Toll Revenue by$191,990.40, and Extending the Completion
Deadline to January 30,2022,Authorize Execution of Change Order No.2 to City Secretary Contract No.51820 for a Revised Contract Amount of
$3,544,671.10,Adopt Appropriation Ordinances,and Amend the Fiscal Years 2022-2026 Capital Improvement Program
RECOMMENDATION:
It is recommended that City Council:
I. Authorize the execution of Amendment No.3 to City Secretary Contract No.51820,an Enhanced Community Facilities Agreement with
American Airlines,Inc.for the construction of road improvements on Trinity Boulevard,American Boulevard and US Highway 360 Frontage
Road,increasing City Participation by$103,609.90 and City Participation with Regional Toll Revenue by$191,990.40,and extending the
completion deadline to January 30,2022;
2. Adopt the attached appropriation ordinance adjusting appropriations in the 2014 Bond Program Fund in the amount of$487,703.00 by
increasing appropriations in the CFA-AA Headquarters P&TSign project(City Project No. 101828)and by decreasing appropriations in the
CFA-American Airlines Pvn&SG project(City Project No. 101314)by the same amount;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Government Community Facilities
Agreement Fund in the amount of$14,473.39 for the purpose of funding development fees for the CFA-AA Headquarters P&T Sign project
(City Project No. 101828);and
4. Amend the Fiscal Years 2022-2026 Capital Improvement Program.
DISCUSSION:
On November 10,2015,the City Council adopted Ordinance No.21968-11-2015,Mayor and Council Communication (M&C)G-
18605,designating Tax Abatement Reinvestment Zone No.91,and approved execution of a Tax Abatement Agreement with American Airlines,
Inc.,(Developer),and the Dallas/Fort Worth International Airport Board for development of a corporate headquarters facility(Headquarters
Project)on property at Dallas-Fort Worth International Airport located within the City of Fort Worth,City Secretary Contract No.47341,as
amended.Under the Tax Abatement Agreement,the City agreed to abate a maximum of between 75 to 90 percent of the incremental real and
personal property taxes from the site for a period of one year provided that Developer expended at least$200 million in real property
improvements by December 31,2019 on property in the reinvestment zone and consider up to$2,000,000.00 in enhanced community facility
funds for public infrastructure projects associated with the Headquarters Project.As part of the project,the Developer anticipated expending
approximately$1,650,000.00 for the construction of road improvements including deceleration lanes,turn lanes,signaling,sidewalks and street
light improvements on Trinity Boulevard,American Boulevard, US Highway 360 Frontage Road Public Infrastructure.
On June 13,2017,the City Council authorized execution of an Enhanced Community Facilities Agreement(ECFA),M&C C-28274,under which
the City would reimburse Developer up to$950,000.00 of construction costs.The Developer proposed to expand the scope of the Public
Infrastructure project to include widened roadways and turn lanes on Trinity Boulevard, US Highway 360 Frontage Road,and American Boulevard
to accommodate the planned additional employee traffic at a total approximate cost of$7,000,000.00.
On June 12,2018, by M&C C-28730,the City Council rescinded M&C C-28274 to cancel the 2017 ECFA that was never executed and
authorized execution of a new ECFA with City participation in an amount not to exceed$1,700,000.00.After further design and discussions with
the Developer,through approval of M&C C-28898,the City Council rescinded M&C C-28730 and authorized entering into a new agreement
increasing the City's participation in the Public Infrastructure project to$2,000,000.00 representing the entire commitment in the original tax
abatement agreement.The M&C authorized execution of an Advance Funding Agreement(AFA)between the City and the State of Texas,acting
through Texas Department of Transportation,for Regional Toll Revenue(RTR)for the public infrastructure improvements along Trinity Boulevard,
American Boulevard and US Highway 360 Frontage Road.The M&C also authorized the execution of one or more ECFAs with the Developer
consisting of the RTR funds as well as Non-RTR Funds comprised of ECFA funds and Transportation Impact Fee funds in an amount not to
exceed$2,000,000.00 for the Public Infrastructure.The AFA(City Secretary Contract No.82071),provided the City with RTR funds in an amount
not to exceed$4,170,491.00,with a twenty percent local match requirement of$1,042,623.00.The ECFA, (City Secretary Contract No.51820)
was executed on January 31,2019. The.Developer is responsible for all costs exceeding the RTR funds received by the City under the AFA and
the City's participation with Non-RTR funds.
On June 3,2019,the ECFA was amended to include the construction of additional public infrastructure improvements in the vicinity of American
Blvd,that are were not funded by the AFA. On June 25,2019 through M&C C-29166,the City Council authorized execution of an amendment to
the ECFA and the Tax Abatement Agreement to extend the completion deadlines under the agreements pursuant to the force majeure provisions
due to delays in the Texas Transportation Commission not approving the Regional Toll Revenue funding until January 31,2019.
The purpose of this M&C is to authorize the execution of Amendment No.3 to the ECFA in order to finalize the amount of City Participation owed
to the Developer and close out the projects(City Project Nos. 101314 and 101828). The public infrastructure improvements were substantially
completed on October 22,2020. The final inspection was conducted on March 11,2021. City staff have been working with the Developer,
contractor and TxDOT on the final close out of the projects. Approval of this M&C,will authorize City staff to close out the projects and make the
final payments to the Developer for all work that was completed. Upon approval of this M&C,City staff will execute Amendment No.3 to the ECFA
with the Developer and execute the corresponding Change Order No.2 between the Developer and the contractor.
Funding for the CFA-American Airlines Pvn project is summarized in the table below:
Fund Existing Budget Change Project Total
Funding (Increase/Decrease)
30106- $5,600,000.00 $0.00 $5,600,000.00
Intergovernmental
Contribution
34014 2014 Bond $1,275,000.00 $(487,703.00) $787,297.00
Program Fund
31002 Grants $5,095,491.00 $0.00 $5,095,491.00
Capital Project State
39001 2007 Critical $725,000.00 $0.00 $725,000.00
Capital Projects
39008 Trans Impact $200,000.00 $0.00 $200,000.00
Fee Cap Legacy
Project Total $12,895,491.00 $(487,703.00) $12,407,788.00
Funding for the CFA-AA Headquarters P&TSign project is summarized in the table below:
Fund Existing Budget Change Project Total
Funding (Increase/Decrease)
30111 Govt
Community Facilities $14,473.39 $0.00 $14,473.39
Ag mt
34014 2014 Bond $0.00 $487,703.00 $487,703.00
Program Fund
Project Total $14,473.39 $487,703.00 $502,176.39
Funding for Enhanced Community Facilities Agreements was included in the 2014 Bond Program. Available resources within the General Fund
will be used to provide interim financing until debt is issued. Once debt associated with the project is sold, bond proceeds will reimburse the
General Fund in accordance with the statement expressing official Intent to Reimburse that was adopted as part of the ordinance canvassing the
bond election(Ordinance No.21241-05-2014)and subsequent actions taken by the Mayor and Council.
Funding for the CFA-AA Headquarters P&T Sign project was not included in the FY2022-2026 Capital Improvement Program. Funding in the
amount of$502,176.39($14,473.39 from developer fees and$487,703.00 from 2014 Bond Funds)is needed to cover construction fees and pay
the final amount of City Participation owned to the Developer to close out the Project.This action in this M&C will amend the Fiscal Years 2022-
2026 Capital improvement Program as approved in connection with Ordinance 25073-09-2021.
The CFA-AA Headquarters P&T Sign project previously received funding from the Government Community Facilities Agreement Fund in the
amount of$14,473.39 for developer fees that were previously paid by the Developer. Recommendation#3 will formalize the appropriation of
these funds from the Government Community Facilities Agreement Fund,as the funds were transferred from the Unspecified project through
former delegated authority,which is no longer recognized.
The Project is located in COUNCIL DISTRICT 5.
A Form 1295 is not required because: This contract will be with a publicly-traded business entity or a wholly-owned subsidiary of a publicly-traded
business entity:American Airlines
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the CFA-American Airlines Pvn&SG project within the 2014 Bond Program
Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the
2014 Bond Program Fund for the CFA-AA Headquarters P&TSign project to support the approval of the above recommendations and execution
of the amendment and change order. Prior to an expenditure being incurred,the Transportation and Public Works department has the
responsibility of verifying the availability of funds.
Submitted for City Manager's Office by. Dana Burghdoff 8018
Originating Business Unit Head: D.J.Harrell 8032
Additional Information Contact: Debbie Willhelm 2481
Jennifer Ezernack 8423