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HomeMy WebLinkAboutIR 8151 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. Al 51 c�'T�Eo � r To the Mayor and Members of the City Council August 25, 1998 'I� Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 6 (PARK GLEN) The following information is provided to assist the City Council in their consideration of a petition to establish Public Improvement District No. 6. An analysis of certain sections of the petition is included and significant issues identified by City staff have been highlighted. BACKGROUND: At the July 14, 1998 City Council meeting, the City Council adopted M&C G-12273, which officially accepted petitions requesting establishment of Public Improvement District No. 6 and directed the City Manager and the City Attorney to review the petitions to determine whether the petitions included the necessary signatures and met the other requirements of Chapter 372, Subchapter A, Section 372.005 of the Local Government Code (The Public Improvement District Assessment Act). On August 18, 1998, it was determined that there were sufficient valid petitions to meet state law requirements for City Council to consider establishing the proposed public improvement district. Petitions in support of the district are on file in the Office of the City Secretary. STAFF ANALYSIS AND SUBMISSION FOR DOCUMENTS AND INFORMATION: 1. General Nature of the Proposed Improvements and/or Supplemental Services State law permits an improvement district to provide improvements and/or services which are supplemental to those provided by the City. District 6 proposes to provide supplemental services that are aesthetic in nature that enhance the lifestyle, security, enjoyment and property values within the district. These services include maintenance of landscaping and special fencing in and along boulevards, parks and open spaces and as well as those services currently performed by Fort Worth Public Improvement Districts 2 and 4. The proposed special supplemental services would be a supplement to the standard existing level of city improvements and/or services and would constitute an added increment to the services normally provided to the taxpayers generally. If the District is created, the City will continue to furnish or pay for the standard services in the District at the same level as they would be provided for the taxpayers generally. ISSUE: Public Improvement Districts (PID's) are created under state law through a process much like that for assessing property owners for the construction of a new street. PID's in Fort Worth are increasingly used for services, rather than improvements. This proposed district, if created, would create one assessment method for all the property in the proposed PID 6 boundary, form a contiguous area which would enjoy enhanced quality of life, property value increase and better ISSUED BY THE CITY MANAGER FORT WORTH, SAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No* I rV To the Mayor and Members of the City Council August 25, 1998 Page 2 of 4 X 0 Subject: Ian DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 6 (PARK GLEN) security. Creation of the District would provide a way for the Neighborhood Association to have all property owners assessed for their share of costs and the City would have the responsibility to collect the assessments. 2. The estimated cost of the supplemental services for the proposed District during the first year of operation, as specified in "Section 5" of the petition, will total approximately $645,800.00. This total includes payments for professional services of a management company to contract for supplemental services, city administration costs, reimbursements to the proposed district for expenses associated with establishing the District, and miscellaneous expenses. A detailed budget for the first year will be submitted for City Council approval. ISSUE: The PID policy adopted by the City Council in 1991 states that the City can elect to participate in the administrative cost of the project which provides general city benefits and exceeds the local benefit and could not be done without public participation. The existing PID's budgets also include city's administrative cost. Further, the proposed PID 6 encompasses the existing PID's 2 and 4 as well as additional non-PID areas. This expansion requires additional city staff effort and thus makes it reasonable to include the city's administrative costs in the PID 6 budget. 3. Boundaries The boundaries of the proposed District are shown on Exhibit "A" attached hereto. 4. Method of Assessment The assessments will be based on the property value shown on the TAD rolls. It is proposed not to exceed 210 per $100 valuation. Section 7 of the petition outlines the proposed method of assessment, as follows: A. The Service Plan will be approved and adopted by the City Council for a period of not less than five (5) years. The Service Plan will be reviewed and updated annually by the City Council to determine the annual budget for special supplemental services within the District. B. 'I'he cost of the special supplemental services will be assessed against real property within the District according to the value of the property, including the improvements, as determined annually by the City Council. The resolution authorizing establishment of the District shall contain a provision which states that during the initial two-year term of the District, annual assessments against real property in the District, including improvements, ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8151 To the Mayor and Members of the City Council August 25, 1998 Z Page 3 of 4 NX4 Subject: is" DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 6 (PARK GLEN) shall not exceed an amount equal to 210 per $100 of the value of such property as determined by the City Council. C. The amount of assessment for each property owner may be adjusted following the City Council's annual review of the Service Plan. 5. The Proposed Apportionment of Cost Between the District and the City as a Whole: It is as follows: A. The cost of the improvements and/or special supplemental services will be paid from special assessments levied against property within the District in accordance with the assessment methodology described above. B. The City Council will be authorized to establish by ordinance reasonable classifications and formulas for the apportionment of cost between the City and the property to be assessed and to establish the methods for assessing special benefits for various classes of improvements and/or special supplemental services, 6. Probable Maximum Benefits to be Conferred on Each Tract It is anticipated that the probable maximum benefits to be conferred on each tract in the District will be greater than the assessment against such tract and the owners thereof. 7. Proposed Management Structure The District will be managed by a private corporation under a professional services contract with the City. The term of the contract will be for one (1) year, subject to year-by-year renewals upon the approval of both parties. Management fees, if any, for each year will be in accordance with the District's annual plan of service and budget approved by the City Council. The manager will comply with the non-discrimination "Employment Practices" of the City, with the City's Minority and Women Business Enterprises participation policies, and with the competitive bidding procedures of the City's Parks and Community Services Department. The manager will carry liability insurance in amounts and covering risks approved by the City and will indemnify the City against losses resulting from acts or omissions of the manager and those for whom the manager is responsible. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8151 � To th e Mayor and Members of the City Council August 25, 1998 Page 4 of 4 Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 6 (PARK,GLEN) ISSUE: Should the District be established, the City would contract with a private professional management company which will contract with various entities to provide the proposed services. 8. Duration of the District This district will exist in perpetuity unless dissolved in accordance with the procedures set forth in Chapter 372 of the Texas Local Government Code. 9. Advisory Body An advisory body under the state law would not be established, but the Boards of Directors of all Neighborhood Associations whose boundaries are wholly within PID No. 6 would have the responsibility for developing and recommending the annual service plan and budget to the City Council. The proposed improvement district will be on the agenda of the August 25, 1998 Pre-Council Meeting. City staff and representatives of the Neighborhood Associations will be available to answer any questions. If City Council wishes to proceed, a public hearing would need to be held and notice given to all property owners. &�Ul'a . V'530_� Bob Terrell City Manager Attachments-Petition, Map, Calculations ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS V STATE OF TEXAS COUNTY OF TARRANT TO: The Mayor and City Council of the City of Fort Worth, Texas, 1000 Throckmorton, Fort Worth, Texas 76102 . PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT The undersigned petitioners hereby request that the City Council of the City of Fort Worth, Texas (the "City Council") , initiate and establish a public improvement district under the Public Improvement District Assessment Act, V.T.C.A. , Local Government Code § 372 . 001 et sea. (the "Act") , so that the powers granted under the Act may be exercised by the City of Fort Worth, Texas (the "City") . In support of this petition, the petitioners show the following: 1. NAME OF THE DISTRICT The proposed public improvement district will be known as the Fort Worth Improvement District No. 6 (the "District") . 2 . TERMINATION OF FORT WORTH PUBLIC IMPROVEMENT DISTRICTS NOS. 2 AND 4 If the City Council approves the formation of this Fort Worth Improvement District No. 6, the undersigned petitioners request that the City Council dissolve Improvement District No. 2 and Improvement District No. '4 and transfer all assets, responsibili- ties and obligations from those two Districts to the new Improve- ment District No. 6. If the City Council does not approve the formation of this Fort Worth Improvement District No. 6, it is the intent of this Petition that the present Improvement District No. 2 and Improve- ment District No. 4 continue their existence and operation. 3. AUTHORITY OF THE CITY The City will be authorized to utilize the District to undertake special supplemental services that confer a special benefit on a definable part of the City. The City Council will be authorized to levy and collect special assessments on property in the District, based on benefits conferred by the special supplemen- tal services, to pay all or part of the costs of such special supplemental services. PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT parkglen\pid.1 Page 1 4 . GENERAL NATURE OF THE PROPOSED IMPROVEMENTS AND/OR SPECIAL SUPPLEMENTAL SERVICES With the exception of a reasonable capital reserve for replacement (which will be included in each annual plan of service and budget) , the District will primarily provide services that are aesthetic in nature that enhance the lifestyle, security, enjoy- ment, and property values within the District, including mainte- nance of landscaping and special fencing in and along boulevards, parks, and open spaces and including those services currently performed by Fort Worth Public Improvement Districts Nos. 2 and 4 . The proposed improvements and/or services would be a supple- ment to the standard existing level of City improvements and/or services and would constitute an added increment to the services normally provided to the taxpayers generally. If the District is created, the City will continue to furnish or pay for standard improvements and/or services in the District at the same level as they would be provided to the taxpayers generally. S. ESTIMATED COSTS OF THE PROPOSED IMPROVEMENTS AND/OR SPECIAL SUPPLEMENTAL SERVICES The estimated costs of the improvements and/or special supplemental services for the proposed District durinq the first year of operation will total approximately $4q5,e00- '. once the total land value to be included in the District is determined, a detailed budget will be submitted to the City Council for approval . The cost of providing additional improvements and/or special supplemental services in subsequent years will be determined in the five-year service plan (the "Service Plan") to be adopted and amended from time to time by the City Council. 6. BOUNDARIES OF THE PROPOSED DISTRICT The boundaries of the proposed District are shown on Exhibit "All attached hereto. The proposed District encompasses the areas currently within Improvement District Nos. 2 and 4 plus additional adjacent properties. 7. PROPOSED METHOD OF ASSESSMENTS The proposed method of assessment is: (a) The Service Plan will be approved and adopted by the City Council for a period of not less than five years . The Service Plan will be reviewed and updated annually by the City Council to determine the annual budget for improvements and/or special supplemental services within the District. (b) The cost of improvements and/or special supplemental services will be assessed against real property within the District PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT parkgten\pid.1 Page 2 according to the value of the property, including improvements, as determined annually by the City Council . The City Council resolution authorizing establishment of the District shall contain a provision which states that during the initial two-year term of the District, annual assessments against property in the District, including improvements, shall not exceed an amount equal to $0. 21 per $100 of the value of such property and improvements as determined by the City Council. (c) Property, including improvements, owned by organiza- tions qualifying for tax-exempt status under S 11 . 18 of the Texas Property Tax Code will be assessed for the improvements and/or special supplemental services at a rate not to exceed 25% of the rate assessed against non-exempt property. (d) The City Council will be authorized to establish by ordinance reasonable classifications and formulas for the appor- tionment of costs between the City and the property to be assessed and to establish the methods for assessing special benefits for various classes of special supplemental services . (e) The amount of assessment for each property owner may be adjusted following the annual review of the Service Plan . 8. PROPOSED MANAGEMENT STRUCTURE The District will be managed by a private corporation under a professional services contract with the City. The term of the contract will be for one year, subject to year-by-year renewals upon the approval of both parties. Management fees, if any, for each year will be in accordance with the District' s annual plan of service and budget approved by the City Council . The manager will comply with the non-discrimination "Employment Practices" of the City, with the City' s Minority and Women Business Enterprises participation policies, and with the competitive bidding procedures of the City' s Park and Recreation Department. The manager will carry liability insurance in amounts and covering risks approved by the City and will indemnify the City against losses resulting from acts or omissions of the manager and those for whom the manager is responsible. 9. ESTABLISHMENT OF AN ADVISORY BODY In order to provide for efficient management of the District, the Fort Worth City Council, by acceptance of this petition and the establishment of the District, agrees to not establish an advisory body and agrees to assign to the Boards of Directors of all the Neighborhood Associations whose boundaries are wholly within Improvement District No. 6, the responsibility for developing and recommending a service plan, improvement plan and other responsi- bilities of an advisory body as provided in the Act. PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT parkgLen\pid.1 Page 3 10. SUFFICIENCY OF THE PETITION This petition is sufficient because it is signed by: (a) more than 50 percent of the owners of record of property liable for assessment under this proposal ; or (b) the record owners of property composing more than 50 percent of the area liable for assessment under this proposal; and (c) the record owners of taxable property representing more than 50 percent of the appraised value of the taxable real property, including the value of structures and other improvements within the proposed District, as determined by the current roll of the Tarrant Appraisal District. The names, telephone numbers, and the addresses of the requisite number of owners of record of property liable for assessment under this proposal and the legal descriptions, areas, and appraised values of each owner's property, including the value of structures and other improvements thereon as determined by the current roll of the Tarrant Appraisal District, are shown on the attached Exhibit "B" . The percentage of the total area which belongs to owners of property liable for assessment who have signed this petition, and the percentage of the appraised value of the total area which belongs to such owners is more particularly shown on Exhibit "C" attached hereto. 11. SOURCE OF PAYMENT FOR IMPROVEMENTS AND/OR SPECIAL SUPPLEMENTAL SERVICES The cost of the improvements and/or special supplemental services will be paid from special assessments levied against property within the District in accordance with the assessment methodology described above. 12 . REQUESTED ACTION OF THE CITY COUNCIL The petitioners hereby request that the City Council do the following: (a) Determine that this petition meets the requirements of the Act; (b) Cause this petition to be filed with the City Secretary; (c) Make findings by resolution as to the advisability of the nature of the proposed special supplemental services, the estimated cost, the boundaries of the proposed District, the method of assessment, and the apportionment of costs between the proposed District and city as a whole; PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT parkg(en\pid.1 Page 4 (d) Give proper notice and hold a public hearing on the advisability of establishing the District and providing the proposed special supplemental services; (e) At any time within six months after final adjourn- ment of the hearing, adopt a resolution authorizing establishment of the District in accordance with its findings as to the advis- ability of the special supplemental services; (f) Cause the resolution authorizing the District to be duly published; (g) Prepare an assessment roll stating the assessment against each parcel of land within the District as determined by the method of assessment approved by the city Council and cause such assessment roll to be filed with the City Secretary; (h) Give proper notice and hold a public hearing to consider the proposed assessments; , (i) Levy by ordinance the assessments as special assessments on the property within the District, specify the method of payment, and prepare and send to property owners tax bills for such special assessments; (j ) Take any and all other steps .necessary to establish the District and impose the special assessments on the property within the District; and (k) Upon the creation of Fort Worth Improvement District No. 6, to dissolve Fort Worth Improvement District Nos. 2 and 4 . 13 . NO RESTRICTION ON AUTHORITY OF THE CITY The creation of the District pursuant to the Act is an alternative to other methods by which the city may finance public improvements by assessing property owners. Nothing contained in this petition is intended to restrict the City's use of such other methods or to restrict the City's issuance of general obligation or revenue bonds. 14 . CONCURRENCE WITH ESTABLISHMENT OF THE DISTRICT AND DISSOLUTION OF CURRENT DISTRICT The persons signing this petition request and concur with the establishment of the District and the dissolution of District No. 2 or No. 4 , whichever District encompasses petitioners' property. lr� PETITION REQUESTING ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT parkgLen\pid.1 Page 5 Respectfully submitted this day of , 1997 . Owner (please print) Signature ' Signature Property Description or Address 1 PETITION REQUESTING ESTABLISHMENT Of PUBLIC IMPROVEMENT DISTRICT ParkgIen\ptd.1 Pege 6 „ I I rG y � i� PID #6 1 �t t r•—,r t t I � �a ,�,"�*”'�` � t� d � �' ! •`� may",�,,�a �, �;mi ! yg F ro� y � 50@ I6fp ESN GiMFIC VUr WlilGi � m w q ? � V E l Park Glen Neighborhood Association roll THE VILLAGES OF Park*" Glen, A P.. IJ Cw—"..... P.I.L . EXHIBIT , I Property Description of Public Improvement District Number 6. The proposed PID#6 is compromised of the existing PID#2 area and PID#4 area and 4 additional properties( Parkway Addition, Farrar property, Hillwood Development Corporation's Non-PID tract, and the Park Place/Park Bend/Summerbrook area bounded by Prewett road, North Beach Street, and PID#2 and PID#4). These properties are further defined below. Existing PID#2 area includes: Park Glen Addition Phase 1, Phase 2, Phase 3, Phase 4, and Phase 5. It also Includes the Multi-family tract owned by Hillwood Development that is located just west of Union Pacific Railroad and south of Basswood Blvd. It also includes the retail tracts located at the intersection of Park Vista Blvd. and Basswood Blvd. Existing PID#4 area includes Park Glen Addition Phase 6, Phase 7, Phase 8, Phase 9, Phase 10, Phase 11, and Phase 12. It also includes the Multi-family tract owned by Hillwood Development that is located just East of Teal Drive and South of Basswood Blvd. It also includes the Continental Homes(Sheffield Development) addition on the South end of Teal Drive. PID#4 includes a majority of the existing Arcadia Park system. Additional properties 1) Parkway Addition as being developed by 360 Parkway Ltd. (Tim Fleet et a]) and is located to the North East of the Park Glen Neighborhood. All residential tracts and the proposed park tract. A detailed description of the residential tracts is provided and attached to this document. 2) Farrar property is located just west of the North end of Park Vista Blvd and South of the North Tarrant Parkway. (TAD Acctno. 06933998) The legal description is as follows: 501 Ray White RD. Shiivcr, Eli W Survey A 1455 Tract 3A02 3) Hillwood Development Corporation's Non-PID tract is located just East of North Beach Street and South of North Tan-ant Parkway. The legal description(TAD Acctno. 03894045) is as follows: 8200 North Beach St. Green, Phillip Survey A566 Tract 1 4) The Park Place/Park Bend/ Summerbrook area is a rectangular section of land that is bounded by North Beach Street on the West, Prewett Road on the South, and PID #2 and PID#4 on the South, East and North borders. The area includes: Park Place Addition Park Bend Addition Surrimerbrook Addition Deakins Residence and Commercial Tract North of Prewett Rd. and East of North Beach St. roll A nearly complete listing of all properties in this area is provided in an excel spreadsheet that indicates which properties have signed a PID #6 Petition. PROPOSED PID 6 PETITION FINDINGS Texas Local Government Code, Section 372.005 Petition states: (b) The petition is sufficient if signed by: (1) owners of taxable real property representing more than 50 percent of the appraised value of taxable real property liable for assessment under the proposal, as determined by the current roll of the appraisal district in which the property is located; and (2) record owners of real property liable for assessment under the proposal who: (A)constitute more than 50 percent of all record owners of property that is liable for assessment under the proposal; or (B) own taxable real property that constitutes more than 50 percent of the area of all taxable real property that is liable for assessment under the proposal. Herein are the statistics: Total appraised value of property within the district $ 253,863,462 Total appraised value of property liable for assessment $ 252,641,957 Appraised value of property belonging to records owners who signed petition $ 156,908,161 Percentage of appraised value of property liable for assessment whose record owners have signed the petition 62.11 % The above satisfies the requirements under Section 372.005(b)(1) Total number of properties in the proposed district 3,041 Total number of petitions submitted 1,719 Total number of petitions whose ownership matched the TAD roll 1,627 Percentage of valid petitions within the proposed district 53.50 % The above satisfies the requirements under Section 372-005(b)(2)(A) In conclusion, staff finds the petitions submitted by the PID 6 petitioners have met the requirements under Section 372.005(b)of the Texas Local Government Code.