HomeMy WebLinkAboutIR 7789 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7789
GNppTER� January 11, 1994
To the Mayor and Members of the City Council
* '•X Subject: SOUTHWEST RECREATION CENTER GYE ASIIIM
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The 1986 Capital Improvement Bond Program allocated $500,000 for
the addition of a full size gymnasium and conversion of the
existing undersized gymnasium to exercise/activity space to
Southwest Recreation Center. The bonds for this project were sold
on March 15, 1988 as part of a $24,000,000 General Obligation bond
issue. The City entered into a contract in April 1989 for the
architectural design of the project. To date, $42,065 of the bond
funds have been spent on the architectural design.
The plans were reviewed by the City in January 1990, and since that
time the project has been stalled pending resolution of several
problems concerning the building site that were identified in the
review. Three major problems were cited. One was that the parking
lot would be about 100 spaces too small for the building size.
Another problem was that the building offset was too close to the
street. The final and most difficult problem cited was that the
only street access to the site was a private drive that cut across
Fort Worth Independent School District (FWISD) property.
In October 1993, the Park and Recreation Department identified the
Southwest Recreation Center Gym project in its Capital Improvement
Plan as being ready to proceed after successful negotiations with
FWISD achieved the redesignation of Welch Avenue from a private
drive to a dedicated street, thus removing the most challenging
problem associated with the process. It is expected that the
remaining variances can be achieved for the project to again move
forward.
Based on the bid costs received for the Fire Station Recreation
Center gymnasium bond project, it is expected that the $500, 000
allocation will be insufficient to complete the Southwest
Recreation Center project. Because the work involved in the two
projects is similar, it is estimated that an additional $200,000
will be needed to complete the project. A possible funding source
for this shortfall is the Capital Projects Reserve Fund. No other
funding source has been identified at this time.
If funding can be found for the expected shortfall, it is estimated
that design of the Southwest Recreation Center gymnasium project
can be completed by August 1994. Bids for the construction would
be solicited in November 1994, with the award of contract coming in
February 1995. Construction would then commence and with projected
completion by October 1995.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7789
dORT! % January 11, 1994
To the Mayor and Members of the City Council Page 2 of 2
't Subject: SOUTHWEST RECREATION CENTER GYMNASIUM
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The addition of a new gymnasium to the Southwest Recreation Center
would entail an operating impact on the Park and Recreation
Department budget. It is estimated that an additional $22,000
annual impact would be incurred for additional utility costs,
supplies and materials. No additions in personnel are anticipated.
Attached for your information is Informal Report No. 7775,
originally issued on November 30, 1993, which details all known
financial commitments that could utilize the Capital Projects
Reserve Fund.
Should the City Council require additional information on this
subject, it will be provided on request.
C§W�Q
� ��?'.. •
BOB TERRELL
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
, q November 30, 1993
,f 7E To the Mayor and Members of the City Council
raze
f Subject' FUTURE FINANCIAL COMMITMENTS
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This report details all known future financial commitments and
their probable costs that could utilize the Capital Projects
Reserve Fund as a funding source. This report does not reflect any
costs related to pending litigation in which the City is a
participant.
UNMDED NON-AVIATION NEEDS
Hillwood Interchange
The Hillwood interchange with I-35W is located in the Alliance
corridor. The design of the interchange has been completed, and
the project is awaiting State Department of Transportation
contracting, tentatively scheduled for the Spring of 1994. The
City of Fort Worth is responsible for 20 percent of the total
project cast at the time the contracts are finalized. The City has
already incurred the cost of the design work, and it is in the
process of acquiring the necessary rights of way for the project.
The costs already incurred by the City will be counted as part of
the City's 20 percent match. The City's portion of the cost,
addition to the amount already incurred, is expected to be
approximately $700,000. Funding for this project is expected to be
available in the Capital Projects Reserve Fund.
Basswood Interchange
The Basswood interchange with I-35W is located in north Fort Worth,
and it consists of the construction of a segment of the road east
of 2-35 to Riverside Drive. The City's cost obligation entails the
construction of the road segment. Design of this project is
currently underway by an outside firm. The anticipated date to
begin the construction project is the Spring of 1995. The City's
cost for this project is expected to be approximately $600,000 and
is anticipated to be available in the Capital Projects Reserve
Fund.
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS-
INFORMAL REPORT TO CITY COUNCIL MEMBERS Mc. 7776
November 30, 1993
of � To the Mayor and Members of the City Council Page 2 of 11
xr• Subject;
FUTURE FINANCIAL COMMITMENTS
Ym
Community Facilities Agreements in the Alliance Corridor
The City of Fort Worth committed $10.8 million to the Alliance
corridor in the form of storm drain installation, street
construction, and installation of street lighting. In order to
accelerate the development of the Alliance corridor, the Perot
Group in some instances incurred the cost of engineering,
inspection and administration, and negotiated for reimbursement by
the City for these activities. To date, the Perot Group is
eligible to request reimbursement for $269,000 incurred by them in
engineering, inspection, and administrative costs related to the
Alliance corridor. Funding for this reimbursement is expected to
be available in the Capital Projects Reserve Fund.
Botanic Garden Center Parking Lot Lighting
The design of lighting for the parking lot located at the Botanic
Garden Center and Conservatory has been completed by the Park and
Recreation Department. Implementation of the design has not yet
occurred. The cost of installation for these lights is anticipated
to be approximately $80,000. No funding source has been identified
for the installation of these lights. Bond funds are currently
unavailable for this project. No time frame for the installation
of these lights has been developed at this time.
Future ADA Compliance Costs
The City of Fort Worth has appropriated $1,000,000 for the first
year of ADA compliance activities. This first year of compliance
is to consist of curb cuts, ramps, handicapped parking, and
signage. Compliance with federal regulations under the Americans
with Disabilities Act is expected to occur over a three year
period, with completion before the ADA deadline of January 26,
1995. The first year priority is to enable disabled persons to
enter a building; the second year priority is to enable disabled
persons to circulate within all buildings; and the third year
priority is to provide accessible restrooms in all buildings. The
full three-year cost of the City of Fort Worth's ADA compliance is
unknown at this time. Funding for the remaining years of the
program is expected to come from the Capital Projects Reserve Fund.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
November 30, 1993
f r To the Mayor and Members of the City Council Page 3 of 11
IN FUTURE FINANCIAL COXXITXENTS
X Subject:
Im
Como-Hillside Pool Proinct
Basic refurbishment of the Como and Hillside swimming pools carries
and estimated cost of$200,000. This level of funding has been
secured and is sufficient to make only the pools fully operational.
Funds for the basic refurbishment are available. Both the Como and
Hillside swimming pool facilities are in need of numerous
improvements in addition to the pools themselves. Roof and
interior repairs and toilet replacements are needed in order to
complete the refurbishment of these facilities. Partial funding of
these additional improvements will be funded by several foundation
grants that have either been secured or are currently being sought.
The Park and Recreation Department anticipates an approximate
$50,000 shortfall in the total amount of funds needed to complete
the full refurbishment of the Como and Hillside pool facilities.
A possible funding source is the Capital Projects Reserve Fund.
Will Rogers Tower Reyairg
The Will Rogers Tower is in need of repairs. The structure has
deteriorated to the point that pieces of the tower are breaking
away and falling to the ground, creating a serious safety hazard.
The Transportation and Public Works Department is presently
conducting a study of the tower to determine the cost of repairing
it. While no cost information is available at this time, the
funding for these repairs is expected to be available in the
Capital Projects Reserve Fund.
Fire Station Recreation Center Gymnasium
The 1986 Capital Improvements Bond Program allocated $625,000 to
add a gymnasium to the Fire Station Recreation Center. The cost to
build the gymnasium was underestimated, due in part to the results
of soil testing that indicated the need for a special foundation.
Fire Station Recreation Center is also a registered historical
structure, and additional costs will be incurred to construct a
facade on the gymnasium to make it match the recreation center. In
order to build the gymnasium in accordance with the plans that were
approved by the community that uses Fire Station, an additional
$130,000 is needed. Bids have been received for the construction
of the gymnasium, and the project is now awaiting complete funding
before the project can begin. A possible funding source is the
Capital projects reserve fund.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
November 30 , 1993
To the Mayor and Members of the City Council Page 8 of 11
*�X Subject' FUTURE FINANCIAL COMMITMENTS
Other Unfunded Needs
Several other unfunded needs have been identified that are more
suitable as future bond-funded improvement projects.
Athletic Field Lightina
The wooden light poles on the athletic fields at Rosemont,
Sycamore, and Rockwood Parks have rotted to the point that they
could blow down in high winds. The Park and Recreation Department
and Light and Signal Division of T/PW recommend that the wood poles
be replaced with steel poles at a cost of $900,000 for the three
athletic fields.
Need for Additional Health Department Clinic and Offige Space
The demand for public health services has continued to increase,
but the space available for clinical and office operations has not
kept pace. The Health Department is in great need of additional
space for its operations. An addition in the form of a third two-
story wing to the 1800 University location would cost an estimated
$3-4 million; an entirely new facility would cost an estimated $9-
10 million.
Lake Arlington Park Boat Ramp
A grant from the State of Texas is available to help fund the
construction of a boat ramp at Lake Arlington Park. The grant
requires a 50 percent match from the City. To construct the boat
ramp, the City will have to contribute $75,000 in order to receive
the $75,000 grant from the State. No source has been identified
for these funds.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
November 30 , 1993
`—OT ° To the Mayor and Members of the City Council Page 9 of 11
rE Subjects FUTURE FINANCIAL COMMITMENTS
Von
Capital Projects Reserve Fund
The balance of the Capital Projects Reserve Fund as of October 31,
1993 is $3,818,691. Less the $1.3 million earmarked for vehicle
replacements, available funds are $2,518,691.
The fund receives an annual payment from Centreport of $1,434,193
on June 5 of each year through 1997, and a final payment of
$611,224 on June 5, 1998. The fund also receives an annual payment
from Dallas/Fort Worth Airport of $909,091 each April 1 through
1994. Barring any unforeseen uses and after all payments are
received, the estimated balance in the Capital Projects reserve
fund as of June 5, 1994 will be $4,861,975. The possible sale of
other assets could increase this total.
The tables on pages 10-11 list the financial obligations by the
fiscal year in which they are expected to be incurred, if known.
The tables also list the revenue that will be coming into the fund
over through FY 1995. The figures are summarized for the two year
period on Page 11. M&C G-4167 (05/08/79) , which details the
Capital Projects Financing Policy, is included as Attachment 1 to
this report.
Should the City Council desire additional information on this
subject, it will be provided upon request.
0 BOB TERRELL
--M` City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
November 30 , 1993
*0RF
��r To the Mayor and Members of the City Council Page 10 of 11
* '�x
Subject: FUTURE FINANCIAL COMMITMENTS
ton
summary„ of Financial gb iaations by Year
Balance as of 10/31/93 $3,818,691
LESS vehicle replacements for FY 1994 1,300,000
2,518,691
Possible FY 1994 Fund Expenditures:
Hillwood Interchange $700,000
Como-Hillside Pool Renovations 50,000
Fire Station Recreation Center Gym 130,000
ADA Compliance UNKNOWN
Will Rogers Tower Repairs UNKNOWN
- Total FY 1994 $880,000
Possible FY 1995 Fund Expenditures:
Basswood Interchange $600,000
OW Southwest Rec Center Gym 200,000
Vehicle Replacement UNKNOWN
ADA Compliance UNKNOWN
Total FY 1995 $8000000
Additional Expenditures With Unknown Time Frames:
Non-Aviation Projects
Community Facilities Agreements $269, 000
Botanic Garden Lighting 80,000
MDT Conversion 343,500
Total $692,500
Aviation Projects
Meacham Noise Mitigation $6900000
Meacham 16R/34L and Taxiway Reconstruction 351,527
Meacham 16L/34R Reconstruction and Shoulders 500,000
Meacham 9/27 and Taxiways Rehabilitation 150,000
Storm Water Drainage Retention Pond 40,000
Page Avjet Phases II and III $1,800,000
Spinks Wingway Road North Phases I and II 10,000
Total $3,541, 527
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776
November 30, 1993
®rt "� To the Mayor and Members of the City Council Page 11 of 11
FUTURE FINANCIAL COMMITNEHTS
1071
Total Possible Non-Aviation Expenditures $2,372,500
Total Possible Aviation Expenditures 3,541,527
Total Known Possible Expenditures 55.914.027
Knows Fund Revenues:
DFW Airport Payment- April 1994 $909,091
Centreport/GSIA-- June 1994 1,434,193
Centreport/GSIA- June 1995 1,434,193
----------
Total Known Revenues -$3,,77.7,477
if all known (as indicated on the preceding pages, there are many
unknown) possible expenditures listed in this report were to be
made, the reconciliation over a two year period would look like
this:
Balance as of 10/31/93 (minus FY 94 vehicle
replacements) $2,518,691
Total Identified Possible Expenditures,
FY 1994 and FY 1995, Non-Aviation 2,372,500-
Aviation 3,541,527-
Total Known Revenues, FY 1994 and FY 1995 3x777,477
Balance as of October 1, 1995 5 382,141
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
ATTACHMENT 1
Ci J of .fort Worth., T e. ,,ass
Mayor and Council Communication
DATE REFERENCE SUBJECT: Capital Projects Financing Policy PACE
NUMBER
518/79 G-4167 lot 2
In developing a long-range Capital Improvements Program, the Council and staff
have to base estimates of financial requirements on very limited cost data
projected up to five years in advance. The rate of inflation can have a serious
impact on the cost of any specific project requiring several years to complete.
The problem has been illustrated most recently in planning the construction of
new fire stations. It applies equally to streets, parks and other facilities.
Consequently, the amount of bonds authorized by the voters may not provide,
adequate funds to complete a particular project.
Since bonds normally are voted on at three to five year intervals, capital needs
may develop for specific projects between bond elections. For example, our
recent rapid growth in development generates unforeseen needs for parks and other
community facilities. In some cases, federal funds are available but local match
is required and thus funds not anticipated in a bond election are required.
All or any of these incidents indicate that the City needs a reserve of capital
001,, funds to supplement bond funds. The supplementary funds could be used to
complete projects where costs exceed the voted amount or to finance capital
projects between elections. The credit rating agencies encourage cities to
finance some of their capital projects from other than bond funds. The presence
of such a fund would give the Council a resource to use in meeting the City's
need for capital improvement.
One potential source of funds for such a capital projects reserve fund would be
from the sale of City assets no longer needed for their original purpose. In
most cases, these assets were acquired with the proceeds of bonds voted by the
citizens in conjunction with specific capital projects. In some cases, a
portion of these bonds may still be outstanding and are requiring appropriation
of the tax levy for their retirement. The present City practice is to offer
these properties for sale through advertising notices in newspaper and posting
of signs. The sale proceeds are then accounted for as miscellaneous revenue
in the General Fund and the net amount remaining after expenses goes into
Unappropriated Fund Balance of the General Fund and is available during the
annual appropriation process.
Another potential source of funds for a capital projects reserve are refunds
from other governmental agencies when these refunds are related to prior
purchases of real assets. As an example, the Federal government has a program
of refunding a percentage of land coaata incurred in development of the D/FW
Regional Airport. At the present time, these funds are being held in reserve
as a resource for debt service on the outstanding general obligation debt.
DATE REFERENCE sueircT: Capital Projects Fir-:ncing Policy PACE
NUMBER
518179 G-4157 _ __2
00" _
It is anticipated that in the next fiscal year and in the following twelve years
significant funds will be received from Dal-Mac Development, Inc., for the GSIA
property. The property was acquired over a time span of many years with the
proceeds from revenue bonds ($4,383,035) , general obligation bonds ($6,000,000),
gifts ($448,348) , and grants from the Federal government ($5,946,917).
There are other- tracts of land within the City acquired by gifts or for unpaid
taxes. Most of these parcels are surplus to the City needs. If no City depart-
ment has use for such parcels,they are regularly offered for sale by newspaper
advertising, lists to requesting parties, and by posting signs on the property.
The proceeds from such sales are credited to miscellaneous revenues .atid the net
after expenses goes to the Unappropriated Fund Balances of the General Fund.
Recommendation
The staff recommends that all proceeds from the sale of real property assets in
the General Fixed Assets account group or refunds of expenditures from other
governmental agencies be placed into a Capital Projects Reserve Account to be
appropriated by the Council for capital projects.
Regarding the specific case of GSIA and in view of the amount of funds involved,
the staff recommends that the Council adopt the following policy:
1. Resolve all appropriate claims of the Federal government as
to use of proceeds;
2. First additional proceeds (after Federal claims) go into a
fund to defease any outstanding revenue bonds ($3,865,000 as
of April 30, 1979);
3. Next additional proceeds repay General Fund advances ($10,635,382
to the Airport Fund) to be placed in the Capital Projects Reserve
Account;
4. Any additional proceeds, go into Capital Projects Reserve Account
and be earmarked specifically for future airport improvements.
MCM:plg
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CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY
OFFICE BY: L 0 APPROVED
ORIGINATING Q OTHER(DESCRIBE)
DEPARTMENT HEAD: tsOn CITY SECRETARY
FOR ADDITIONAL INFORMATION
CONTACT: 12avid JXoXX. Ext. $ DATE