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HomeMy WebLinkAboutIR 7776 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 November 30, 1993 To the Mayor and Members of the City Council FUTURE FINANCIAL COMMITMENTS ex Subject: N" This report details all known future financial commitments and their probable costs that could utilize the Capital Projects eserve Fund as a funding source. This report does not reflect any costs I related to pending litigation in which the City is a participant. UNFUNDED 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 cost 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. he 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 1-35 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. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 November 3a, 1993 ex To the Mayor and Members of the City Council Page 2 of 11 Subject: FUTURE FINANCIAL CoMMITXENTS is" 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 APA 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 CGO— Lka To the Mayor and Members of the City Council Page 3 of 11 X Subject: FUTURE FINANCIAL COMMITMENTS ian Como-Hillside -Pool Project 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 TqKer Repairs 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 Gvmnasium The 1956 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 pRTeq November 30, 1993 00 N ` �' To the Mayor and Members of the City Council Page 4 of 11 Subject. FUTURE FINANCIAL COMMITMENTS Hers Southwest Recreation Center Gymnasium The 1986 Capital Improvements Bond Program allocated $500,000 for the construction of a gymnasium for Southwest Recreation Center. After the architectural and engineering processes were completed, the costs for constructing this gymnasium were revised to $700,000. The $200,000 shortfall could be funded by the Capital Projects Reserve Fund. Conversion of Police MDTs to 800 Megahertz Channels Presently, the 348 Police Department mobile data terminals (MDTs) operate on two UHF radio channels. Due to a Federal Communications Commission ruling, excessive traffic loading on the UHF channels that slows the system's response time to inquiries, and the need for future growth of the Police MDT system, it was proposed during the 1993-94 budget study sessions to move the MDT units from the UHF channels to five 800 MHZ radio channels recently vacated by the Fire Department when the new trunked communications system began operating. Failure to utilize these valuable 800 MHZ channels will subject them to being reclaimed by the FCC and reassigned to other agencies. Total cost to make this conversion is estimated at $343,500. A possible funding source is the Capital Projects Reserve Fund. Vehicle Replacements There is a critical need to replace many vehicles in the City's fleet. For FY 1993-94, $1.3 million from the Capital Projects Reserve Fund is being used to replace 54 Priority 1 vehicles, including 40 police patrol cars and 4 fire engines. According to Equipment Services Division, a basic capital replacement plan for a fleet of 3500+ vehicles and pieces of equipment is estimated at about $6 million per year. Equipment Services Division is currently developing a five-year plan for vehicle and equipment replacement that will be ready before the equipment replacement process begins for the fiscal 1994-95 budget process. Until this plan is complete, the funding needs for vehicle and equipment replacement are substantially unknown. The Capital Projects Reserve Fund could be a partial source of funding for vehicle and equipment replacement. ISSUED BY THE CITY MANAGER FLIRT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 7776 November 30 , 1993 To the Mayor and Members of the City Council Page 5 of 11 * Subject: FUTURE FINANCIAL COMMITMENTS UNMDED AVIATION NEEDS Historical Expenditures Since 1985, Council M&Cs indicate that $9,616,828 has been expended from the Capital Projects Reserve Fund for airport improvements. A summary of the expenditures are as follows: SPINRS AIRPORT: TOTAL EXPENDITURES (1986 through 1990) : $4,790,811 1. Land purchase (4/15/86) $2,094,750 2. Land purchase (4/15/86) 287,000 3. Land purchase (9/16/86) 215,000 4. Land purchase (11/24/87) 230,618 5. Sanitary sewer extension (2/09/88) 120,000 6. water main extension (7/05/88) 53,541 7. Contract with Rife Island Corp. to terminate 11789,902 City Secretary contracts 16588 and 16589 (2/20/90) MEACSAM AIRPORT: TOTAL EXPENDITURES (1988 through 1990) : $30,295,144 1. Re-roof Meacham Airport terminal building and $ 178,087 Hangar 6-10N and repair roof of Crash/Fire building (8/09/88) 2. Re-roofing project (1/17/89) 6,057 3. Lease agreement with Page Avjet Corp. for 21326,000 aircraft maintenance operations (2/27/90) 4. Airport projects (6/19/90) 375,000 5. Site improvements (9/18/90) 1,040,000 ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 November 30 , 1993 GN�pT To the Mayor and Members of the City Council Page 6 of 11 rex Subject: FUTURE FINANCIAL COMMITMENTS Ian ALLIANCE AIRPORT: TOTAL EXPENDITURES (1988 through 1991) : $741,776 1. Title insurance (10/18/88) $ 29, 8$1 2. Change orders 11 and 12- Phase II (3/21/89) 45,786 3. Change orders 17 and IS- Phase II (6/20/89) 11,919 4. Engineering services contract- Taxiway H 301,490 reimbursement (9/04/90) 95,550 5. Railroad crossing agreement for Eagle Parkway and 248,302 A.T.S.F. Railroad (4/16/91) 6. Infrastructure expenditures (5/14/91) 130,948 7. Design of FBO paving and cable ducting (8/06/91) 69, 000 AIRPORT SYSTEM EXPENDITURES 1. Engineering services contracts - Fort Worth Airport $125, 000 System (6/27/89) 2. Security gates and fencing for Meacham and Spinks 69, 671 Airports and Reimbursement 35,573 CURRENT AND FUTURE UNFUNDED AVIATION NEEDS Meacham Airport Noise Mitigation The noise mitigation study funded by the Federal Aviation Administration for Meacham Airport outlined the steps that the City could take to mitigate noise pollution for nearby residents. The City's share of the funds necessary to purchase houses in the noise mitigation area and to relocate the people living in those houses is estimated at $690,000. A possible source of funding is the Capital Projects Reserve Fund. Meacham Airport Runway 16 34L and Taxiway Reconstruction Meacham Airport's short runway has deteriorated to the extent that it will probably be unusable in about one year. Engineering work on the project is currently being done. The City's share of the costs to reconstruct the runway and taxiway is estimated at $351,527. A possible source of funding is the Capital Projects Reserve Fund. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS-- --- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 November 3V , 1993 �;; Page 7 of 11 To the Mayor and Members of the City Council . FUTURE FINANCIAL COMMITMENTS Subject: tars Meacham Airport_ Runway 16I 34B Reconstruction and Shoulders A study is currently being done to determine whether Meacham-'s long runway is in need of rehabilitation or complete reconstruction, plus the shoulder additions. Should complete reconstruction be required, the City's share of the costs is estimated at $500,000. A possible source of funding is the Capital Projects Reserve Fund. Rehabilitation f Runway 9122 and Taxiways 11011 d " " at KSAch Meacham Airport's crosswind runway and taxiways are in need of rehabilitation. The City's share of the costs for this project is estimated at $150,000, and a possible source of funding is the Capital Projects Reserve Fund. Storm Water Drainage Retention Pond for Meacham Airport The City's Department of Environmental Management has recommended that a storm water drainage retention pond be constructed for pollution control purposes. The City's share of the costs for this project is estimated at $40,000. A possible source of funding is the Capital Projects Reserve Fund. Page Aviet Facility Phases JI and III at Meacham Airport Should Page Avjet build the- two hangars included in Phases II and III of the project, the City will incur the responsibility for constructing the parking lots, ramps, and taxi lanes for the structures. The City's share of the costs for this project is estimated at $1,800,000. These funds are expected to be available in the Capital Projects reserve fund. WinMia„y_RoAd North Phase I & II for Spinks Airport This project involves the construction of a perimeter road on the west side of Spinks Airport. The City's share of the costs for this construction is estimated at $10,000. A possible source of funding is the Capital Projects Reserve Fund. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS — INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 ur� �o November 3 4 , 1993 To the Mayor and Members of the City Council Page a of 11 Subject: FUTURE FINANCIAL COMMITMENTS ion Other Unfunded Needs Several other unfunded needs have been identified that are more suitable as future bond-funded improvement projects. Athletic Field Lighting 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 office 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 e XTo the Mayor and Members of the City Council Page 9 of 11 Subject• FUTURE FINANCIAL COMMITMENTS 1873 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. Ck&&,g oa%k� nBOB TERRELL City Manager ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7776 November 30 + 1993 G'"`'�T�R'� Ctr To the Mayor and Members of the City Council Page 10 of 11 x Subject: FUTURE FINANCIAL COMMITMENTS Tara Summagy of Financial Obligations 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: Millwood 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 ]ossible FY 1995 Fund Expenditures: Basswood Interchange $600,000 Southwest Rec Center Gym 200, 000 Vehicle Replacement UNKNOWN ADA Compliance UNKNOWN Total FY 1995 $800, 000 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 $690,000 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 Te R� 04 To the Mayer and Members of the City Council Page 11 of 11 Subject: FUTURE FINANCIAL COMMITMENTS ren Total Possible Non-Aviation Expenditures $20372,500 Total Possible Aviation Expenditures 31541,527 Total Known Possible Expenditures $5.91 ,0�'j Known 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 53 .777:477 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 31541,527- Total Known Revenues, FY 1994 and FY 1995 31777,477 Balance as of October 1, 1995 $ 382,1441 ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS ATTACHMENT 1 C2 J of .Fart Worth, Tc �;as Mayor and Council Communication DATE REFERENCE SUBJECT: Capital Projects Financing Policy PAGE NUMBER 5/8/79 C-4167 1 or 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 rather 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 ! 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 cf* land coats 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 suejEeT: Capital Projects Fit-racing Polic PAGE NUMBER 5/8/79 G-4167 _ 2 2 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 ($5,000,000), gifts ($448,348) , and grants from the Federal government ($5,945,917). 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 .atld 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 ($3,855,000 as of April 30, 1979); 3. Next additional proceeds repay General Fund advances ($10,535,382 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 SUBMITTED FOR THE CITY MANAGER'S DISPOSITION BY COUNCIL: PROCEfSED BY OFFICE BY: �. ❑ APPROVED ORIGINATING ❑ OTHER (DESCRIBE) DEPARTMENT HEAD: Matson CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT: David Ivory, Ext. 8505 DATE