HomeMy WebLinkAboutIR 8376 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
j� Date: 12/1$101
* To the Mayor and Members of the City Council
Pagel of 6
$ SUBJECT: Update on the Lease Lot Sales Plan and Installation
of Utilities at Lake.Worth
PURPOSE
The purpose of this informal report is to update the City Council on the status of the sale of lease lots .
and the installation of water and sewer utilities to serve the properties around Lake Worth.
HISTORY
In November of 1995, the City Council adopted guidelines for the development of Lake Worth and the
sale of City-Owned lease property (M&C G-11300). The purpose of these guidelines was to establish a
management strategy that addresses the needs of the citizens around Lake Worth and provides the
most efficient and viable development of the Lake Worth area while maintaining water quality that will
be suitable for domestic consumption and recreational activities.
The adopted development guidelines provided the following Council direction to staff;
WATER AND SANITARY SEWER SERVICE
• The water and sanitary sewer system improvements should be constructed when: affordable
technology is available, demand justifies the construction costs, a sufficient number of
Lessees/Owners commit to connect to the utility and/or when the health and welfare of the
residents living around the lake is endangered.
STREETS
• The streets should remain rural in nature.
• Seal coating,of the existing roads, clearing of culverts and reconstruction of ditches to improve
drainage should continue to occur.
• When lots are platted, an easement for future street improvements should be identified.
LAND USE
• Land usage is anticipated to include parks, natural areas, flood easements, residential living and
mixed use.
• The impact on the quality of the water must be considered before future development activity is
approved.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
x Date: 12/18/01
To the Mayor and Members of the City Council
Page 2 of 6
SUBJECT: Update on the Lease Lot Sales Plan and Installation
of Utilities at Lake Worth
SALE OF LEASE LOTS
• Lots must be platted prior to sales.
• Water and/or sewer service must be available to serve lots prior to sales.
• `fhe purchaser must commit to connect to the utilities if and when provided in the future.
• The City Council shall approval all sales.
In May of 2000 the City Council established a water/ sewer Infrastructure Improvement Fund to provide
a source of revenue for the installation of utilities around Lake Worth (M&C G-12916). The Financial
Management Policy Statement of the City was amended to read: "Proceeds from the sale of Lake
Worth leases shall be escrowed and designated for water and wastewater improvements within the
area of the City of Fort Worth surrounding and adjoining Lake Worth." Since May of 2000, $1,950,000
has been collected as revenue from the sale of lease properties and $1,321,000 has been expended for
water projects. The current balance in the Infrastructure Fund is $629,000.
Since 1997 the City has sold 210 lots around Lake Worth through a sealed bid sale process. A total of
$3,181,942 has been generated by those sales.
PROPOSED SALES PLAN
RESIDENTIAL PROPERTIES
The recent passage of Texas House Bill 1490 has provided a catalyst for the direct sale of leased
property to the current lessees at fair market value. Under HB 1490, the City will no longer be required
to publicly advertise and receive sealed bids for the City-owned lease properties around Lake Worth.
The following residential lot sales plan is recommended utilizing the previously adopted Council
guidelines and HB 1490 as a managed sales tool:
Year Block# # Lots Estimated Revenues
2002 6, 25, 26, 27, 91 $2,302,000
10
2003 11, 13, 29, 7 69 621,000
2004 30, 31, 9 53 890,400
2005+ 20, 14, 15 55 924,000
Total 268 $4,737,400
lr It is proposed that the above sales plan be implemented in January of 2002.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
i
Date: 12/18/81
To the Mayor and Members of the City Council
Page 3 of 6
* SUBJECT: Update on the Lease Lot Sales Plan and Installation
of Utilities at Lake Worth
COMMERCIAL/ AGRICULTURAL PROPERTIES
In addition to the residential lots previously identified, the City owns 17 parcels of land of various sizes
around Lake Worth that are zoned commercial or agricultural. It is proposed that the City engage the
services of an independent fee appraiser to perform individual parcel appraisals and that these parcels
be sold for fair market value. The properties will be reviewed for zoning consistency and a specific
sales strategy will be developed and provided to the Council for the sale of these properties.
PROPERTIES WITH PLATTING CHALLENGES
Approximately 50 City-owned parcels have significant platting challenges directly affecting their fixture
sales. These challenges include:
• Limited or absence of public roadway access;
« Right of Way design issues;
• Properties may not be suitable to be platted;
Staff will develop specific sales / retention strategies for these properties and will outline those
strategies in a position paper for the City Council.
NFRASTRUCTURE IMPROVEMENT PLAN
Table 1 lists City of Fort Worth construction projects that have been completed or begun since 1996 to
serve residents along the Lake Worth shoreline.
Table 1. Summary of Past Five Years Infrastructure Improvements
Year Project Cost of Approximate
Construction Number of Lots
Served
Water Sewer
1996 Castle Circle Water $ 812,384 32
1997 Cahoba Drive East Water $ 57,278 3
1998 Cahoba Drive Sewer $1,600,000 98
1999 Indian Cove Water $ 144,510 15
2000 Castle Water Extension $ 53,355 1
2000 Cahoba Drive Water $ 969,896 98
.2000 Woodvale Water $ 391,251 54
' 2001 Heron Drive West Water $ 786,580 53
TOTALS $4,815,254 256 98
Note 1 - Project currently under construction.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
�e Date: 12/18/01
�� To the Mayor and Members of the City Council
Page 4 of 6
SUBJECT: Update on the Lease Lot Sales Plan and Installation
of Utilities at Lake Worth
In addition to the services provided directly by the City of Fort Worth, adjoining municipalities also
provide services to some areas in the Lake Worth vicinity. Service by adjoining municipalities will be
even more important in the future, as the cost to extend water and sewer infrastructure to a relatively
small number of residents is significant and will require a period of time to construct the long extensions.
Currently, including the service provided by adjoining municipalities:
• Water service is available to 353 lots or 63 % of the Lake Worth lease properties; and
• Sewer service is available to 128 lots or 23 % of the Lake Worth lease properties.
The Water Department is positioned to meet the land sale objectives as previously outlined for years
2002 — 2004, with either existing service (Blocks 6, 7, 9, 10, 11, 13) or projects currently in design
(Blocks 29, 30, 31) or under construction (Blocks 25, 26, 27). Blocks 14, 15 and 20 are adjacent to the
cities of Lake Worth and Lakeside. Providing water and /or sanitary sewer service to these areas will
kely require agreements with these adjoining municipalities and may affect the sales goals for year
1005. Listed in Table 2 are projects proposed by the Water Department for construction in the next Five
years.
Table 2. Proposed Projects
Year Project Estimated Cost
of Construction
2002 Castle Circle Lift Station $1,323,578
2002 South Shore Sewer Improvements $ 600,000
Phase I
2002 South Shore Water Improvements $1,400,000
r 2004 Blocks 29 —32
South Shore Sewer Improvements $1,000,000
Phase II
hrou h White Settlement Woodvale Sewer $ 600,000
(Through Lake Worth
2005 Blocks 14 -15 $ 450,000
Throe h Lake Worth or Lakeside
2006 Block 20 $ 375,000
(Through Lakeside
$5,748,578
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
Date: 12/18/01
To the Mayor and Members of the City Council
Page 5 of 6
SUBJECT: Update on the Lease Lot Sales Plan and Installation
'falls of Utilities at Lake Worth
The costs to serve the existing Lake Worth perimeter are only a portion of the overall costs to improve
the water and sanitary sewer system network in the area. Tabulated below are estimated costs for
serving the lake perimeter, for constructing a service area system and the costs for completing the
infrastructure network:
Water Sewer
I. Lake Perimeter $ 6,229,300 $ 6,490,400 _
II. Area System $10,157,000 $ 3,393,740
III. Complete Network $14,000,000 $28,788,760
Totals $30,386,300 $38,672,900
WATER AND SEWER CONNECTION POLICY
The elimination of septic systems at Lake Worth has been identified as a goal of the long range Lease
.ot Sales Plan. However, the typical lease lot sizes at Lake Worth are smaller than the state criteria for
an-site septic systems. Currently, the land sales guidelines state that if water and / or sanitary sewer are
available, a property is eligible for sale. It also requires that the purchaser shall commit to connect to the
utilities if and when they are provided in the future.
During the past five years a small diameter, low-pressure force main-grinder pump demonstration
project was constructed on Cahoba Drive that continues to serve the area well. This project achieved
one of the goals set by the November 1995 Guidelines. The small diameter low pressure force main
grinder pump system is in use on several Texas Lakes, therefore the Water Department has confidence
that this technology will likely be the most economical way to provide future sewer service to other
areas of the Lake Worth shore.
This type of sewer system will require that the residents install private improvements such as a grinder
pumps and electrical improvements as well as abandon their existing septic systems at an estimated
cost of $10,000 per lot. These costs are comparable to the installation of a new septic system,
assuming the lot size meets the state criteria. In addition to the costs of connecting to the City sanitary
sewer system, the- homeowners may encounter costs associated with bringing their private plumbing
and/or electrical systems up to code in their residences.
Staff is recommending that a mandatory connection clause be included in all future sales contracts that
will require future connection to the water and sewer utilities if and when provided by the City. The
City's current sewer ordinance states that if a sewer main is within 100 feet of an existing residence, the
residence must be connected to the main (Section 35-135 of the City Code).
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8376
j Date: 12/18/01
To the Mayor and Members of the City Council
Page 6 of 6
SUBJECT: Update on the Lease Lot Sales Plan and Installation
of Utilities at Lake Worth
It is proposed that the City's Water Department staff will work with citizens around the Lake to develop a
policy for payment of the private improvement costs, options for installation packages and
communication of the intent to enforce connection to the City sewer when it is provided.
SUMMARY
Unless further directed, Staff proposes to implement the above Lease Lot Sales and Infrastructure
Improvement Plan beginning in January 2002. Should you have any questions 1 would be happy to
respond at your convenience.
da W �ks n
vity anager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS