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HomeMy WebLinkAbout062419-A2 - General - Contract - Child Care AssociatesCity Secretary Contract No CSO EC D NA V 2 ' 25_ PH3.1 SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 62419 • This second amendment (the "Second Amendment") is made and entered into by and between the City of Fort Worth (hereafter "City"), a Texas municipal corporation, and Child Care Associates, a Texas nonprofit corporation (hereafter "Developer"). City and Developer may be referred to individually as a "Party" and jointly as "the Parties". RECITALS WHEREAS, the City entered into an agreement with Developer to utilize resources received by City from the United States Department of the Treasury through the Coronavirus State and Local Fiscal Recovery Funds Program, a part of the American Rescue Plan Act ("ARPA"), more specifically described in City Secretary Contract No. 62419 (the "Agreement"); WHEREAS, the City and Developer executed a First Amendment (City Secretary Contract No. 62419-A1) to the Agreement ("First Amendment"), effective April 1, 2025, for the purpose of adding the development budget details contemplated by Exhibit "B-1" to the Agreement; WHEREAS, subsequent to the First Amendment, the Developer identified increased site work, infrastructure, and modular building costs necessary for completion of the Child Care Associates Early Learning Facility (the "Child Development Facility") located in the Stop Six Neighborhood (the "Project"), creating an additional financing need; WHEREAS, on August 26, 2025, the City Council authorized the reallocation of $629,070.00 in ARPA State and Local Fiscal Recovery Funds to support unforeseen but necessary Project development and construction costs, as set forth in Mayor and Council Communication (M&C) 25-0780; WHEREAS, on September 16, 2025, the City Council further authorized the use of Fiscal Year 2025 interest earnings in the amount of $870,930.00 to help cover a shortfall in the development of the Child Development Facility, as set forth in M&C 25-0812; WHEREAS, together these actions provide a total increase of $1,500,000.00 in funding for the Project, to go toward completion of site work and the purchase and installation of the modular facility, as further detailed in the updated Exhibits attached hereto; WHEREAS, the Parties now desire to amend the Agreement again to update the (1) Budget (Exhibit "B"), (2) Development Budget (Exhibit "B-1"), and (3) Construction and Reimbursement Schedule (Exhibit "C") to reflect the additional funding and the adjusted timing of disbursements. NOW THEREFORE, City and Developer do hereby agree to the following: I. Amendment to the Agreement NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: A. Exhibit "B" (Budget) is hereby deleted in its entirety and replaced with the one - page document attached hereto as Exhibit "B" (Budget). B. Exhibit "B-1" (Development Budget) is hereby deleted in its entirety and replaced with the one -page document attached hereto as Exhibit "B-1" (Development Budget). C. Exhibit "C" (Construction and Reimbursement Schedule) is hereby deleted in its entirety and replaced with the one -page document attached hereto as Exhibit "C" (Construction and Reimbursement Schedule), which reflects the addition of $1,500,000.00 in City funding and adjustments to the timing of payments to Developer. II. Effective Date This Amendment is effective as of October 31, 2025, regardless of the date of execution. III. Terms Not Amended Are Unchanged All terms and conditions of the Agreement not amended herein remain unaffected and in full force and effect, are binding on the Parties and are hereby ratified by the Parties. Capitalized terms not defined herein shall have the meanings assigned to them in the Agreement. [Signatures Follow on Next Page] Second Amendment to CSC No. 62419 ARPA CONSTRUCTION CONTRACT Child Care Associates Stop Six Project ACCEPTED AND AGREED: DEVELOPER By: Kar. addell, Chief Executive Officer ATTEST: 44.Ana� ' 10° Fol#P00 040° o�f.� 13 By: \ oy� Ja ette Goodall, Ci $fir o°.Z' d C: 21-0814; 25- S0.aicli081 °o' ° a 1295 Certification No. � Air 4 4ati�a44a RECOMMENDED: By: — -w.• Kacey Thomas, Neighborhood Services Director DAV CITY OF FORT WORTH: By: Dana Burgh APPROVE LEGALIT CONTRACT COMPLIANCE ADMINISTRATOR: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements ua Hezlep, Neighborho . ► evelopment Coordinator Second Amendment to CSC No. 62419 ARPA CONSTRUCTION CONTRACT 1 Child Care Associates Stop Six Project e ie L. Senior Assistant City Attorney tant City Manager FORM AND 01 Ai,. RECORD ::J.. t1ETARY ►RTh, TX IN WITNESS WHEREOF, Lender has executed this First Amendment to Promissory Note as of the date set forth above. LENDER: CITY OF FORT WORTH Dana Burghc�(jff, As' .tant City Manager FIRST AMENDMENT TO PROMISSORY NOTE — ARPA FUNDS Child Care Associates Child Development Facility in Stop Six Page 3 EXHIBIT "B" - BUDGET Account Grant Budget Increase B Total SUPPLIES AND SERVICES Office/Program Supplies 2001 $600.00 Management Fees 2002 $41,592.00 Planning and Coodination 2003 $167,708.00 Design Plans, Generated Renderings & Scope of Work 2004 $90,000.00 CONSTRUCTION Modular Building 4001 $3,851,100.00 GC 4002 $475,000.00 $157,740.00 Equipment Furnishings, FFE 4004 $100,000.00 Playground (plumbing, dirt work, equipment) 4005 $174,000.00 Parking lot 4006 $100,000.00 Civil Soil Work 4007 $1,342,260.00 BUDGET TOTAL $5,000,000.00 $1,500,000.00 $0.00 $6,500,000.00 Page 1 rI 11:1 F�1 Child Care Studio at Stop Six - Project Budget U V Resources/ 0 0 0 0 r-+ c L.() 0 c-1 CO d' 0 LC) CO O) O 0) N O o o co tfr rn ci c0 42o- 0 p o 0 co co N CO co st M co c-I 0 0 O O O 10 c-i a cc CO CD N 0 CD I ((CD 0 LO o co c-1 O c-i O) O O O 0) N cco o r 0 CD o LOf) Op p .�-1 N p CO c-1 O c-I p p i'' ' ' d O) c-1 O OO 6 O c-I N M N It .N-I N N n) O O O O O u? 0 LG f0 h0- o o i o ( s 0) Cf' c-i O O O L() 0 0 0 0 0 0 0 LO c-1 M In MIt N o W 0 0 d' O o COO 10 (OD 0)) d' O O) O O O ui O O 4 cv O N M co d- cN-i CO CO 0 (-I M .-1 ff} fA f e 69- <fl {f} {f} ' 4 b4 fPr c-1 O O M N to N N c0 a) c Budget Line item N N O U Land Purchase N M M 69- 69- N N U U c . 2 c c O E E o r-I 2-4 0 w Iv 0. Q 0 o. U Cr) a) 06 U OD O C m • a) i a) a uq C a) C N CC O U '+_, CO C 0_ u m (0 a "O o. O O C CO cam.) a) C a) o U m O 19 0 -O = m C N C O. c C CtS etS bO Q. o 0 C V) m C C 0 o ( bA iii (E = a a. O m SUBTOTAL - Planning and Coordination Stop Six Construction Assessment/ Procurement and Contracting Modular Building Engineeered Slab Foundation GC Pronghorn Flats Huckabee Architect Fees JRJ CIVIL SOIL WORK Playground allowance Building Signage (interior and exterior) >, 0 OD bA c 0 U FFE/ Equipment Classroom Supplies & Furniture Kitchen, MISC Rooms, Other IT Security Alarm & Equipment &Installation a3 0 O 0 O O 0 O O 1n f» 2) u- LL CC CO EXHIBIT "C" CONSTRUCTION AND REIMBURSEMENT SCHEDULE CHILD CARE ASSOCIATES Activity ARPA Funds Total Costs for Stop Six Child Development Facility $6,500,000.00 PHASE I COMPLETED by: February 28, 2025 • Contract signed • Procurement for Architectural & Engineering* • Architectural & Engineering Fees *Contractor/subcontractor/vendor searches under the Federal System for Award Management (www.sam.gov) must be submitted prior to any $500,000.00* reimbursement under the Phase. PHASE II COMPLETED BY: August 30, 2025 Construction/Rehabilitation of the Child Development Facility: • Procurement for Construction Contractor* • Construction Costs • 25% Completion of Project *Contractor/subcontractor/vendor searches under the Federal System for Award Management (www.sam.cov) must be submitted prior to any $500,000.00* reimbursement under the Phase. PHASE III COMPLETED BY: December 31, 2025 Mobilization of Funds for Soil Work and Modular Building $1,500,000.00 PHASE IV COMPLETED BY: February 28, 2026 Construction / Rehabilitation of the Child Development Facility: • Construction Costs • 75% Completion of Project *Contractor/subcontractor/vendor searches under the Federal System for Award Management (www.sam.gov) must be submitted prior to any $1,500,000.00* reimbursement under the Phase. ARPA CONSTRUCTION CONTRACT — EXHIBIT-C Child Care Associates Stop Six Project PHASE V COMPLETED BY: June 30, 2026 Construction/Rehabilitation of the Child Development Facility: • Construction Costs • 85% Completion of Project *Contractor/subcontractor/vendor searches under the Federal System for Award Management (www.sam.gov) must be submitted prior to any $2,000,000.00* reimbursement under the Phase. PHASE VI FINAL PAYMENT COMPLETED BY: October 31, 2026 Completion/Close Out of the Child Development Facility: • Construction Costs • 100% Complete of Project • Punch List/Final Inspections by Neighborhood Services Department Inspectors • Rehabilitation Completed • Final Reimbursement Forms to include Section 3 Report per CBDG contract Section 10 and 14.11.3 $500,000.00* TOTAL ARPA FUNDS $6,500,000.00 *Developer will only be reimbursed for eligible expenses. The amounts and activities are estimates and are subject to change. ARPA CONSTRUCTION CONTRACT — EXHIBIT-C Child Care Associates Stop Six Project CERTIFICATE OF INTERESTED PARTIES FORM 1295 1of1 Complete Nos, 1 - 4 and 6 if there are interested parties, Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties, OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2021-807064 Date Filed: 09/28/2021 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Child Care Associates Fort Worth, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form Is being filed. City of Fort Worth 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. American Rescue Plan Act (ARPA 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. El 6 UNSWORN DECLARATION My name is l a! kL4.Q pi..itkOt. I N , and my date of birth is My address is , (street) (city) (state) (zip code) (country) I declare under penalty of perjury that the foregoing is true and correct. C - L J n Executed in l l.11NT .}�'y County, State of ) AS , on Ilia clay of pr 7�20 /0'. ` (month) (year) gnature o uthorized agent o ntracting business entity (Doclar� orms provided by Texas Ethics Commission www.ethics.state,tx,us Version V1.1.191b5cdc 11/6/24, 8:04AM M&C Review CITY COUNCIL AGENDA Create New From This M&C DATE: 10/19/2021 REFERENCE NO.: 19ARPAALLOCATIONS TO M&C 21-0814 LOG NAME: HOUSING AND HUMAN SERVICES PROJECTS CODE: C TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: (CD 5, CD 8, and CD 9) Authorize Allocation of Funds from the American Rescue Plan Act in the Aggregate Amount of $10,100,000.00 to Child Care Associates for the Expansion of Early Childhood Learning Centers in the Stop Six Choice Neighborhood Initiative Hub and Gwendolyn C. Gragg Child Development Center, to the Housing Authority for the City of Fort Worth, Texas Doing Business as Fort Worth Housing Solutions for the Design and Construction of Underground Power Lines and the Removal of Power Poles in Connection with Four Phases of the Cavile Place/Historic Stop Six Choice Neighborhood Initiative Redevelopment, and to Fort Worth Area Habitat for Humanity, Inc., Doing Business as Trinity Habitat for Humanity for the Purchase, Replat, Design, and Development of Fourteen Single -Family Lots in the Vicinity of John Peter Smith Hospital, Authorize Execution of Related Contract Documents, and Find that the Expenditures Serve Public Purposes and that Adequate Controls are in Place RECOMMENDATION: It is recommended that the City Council: 1. Authorize allocation of $10,100,000.00 of American Rescue Plan Act Funds, Subtitle M (Coronavirus State and Local Fiscal Recovery Funds) to the agencies listed in Tables 1 and 2 below; 2. Authorize the City Manager, or his designee, to execute contracts with the agencies listed in Tables 1 and 2 below; 3. Authorize the City Manager, or his designee, to amend contract as necessary for completion of the project provided any amendment is within the scope of the project and complies with City policies and all applicable laws and regulations governing the use of federal grant funds; and 4. Find that the expenditures serve the listed public purposes and that the contracts provide adequate controls to ensure the public purposes are fulfilled. DISCUSSION: In March 2021, President Biden signed the American Rescue Plan Act (ARPA), providing aid and relief to various sectors of the national economy. The City of Fort Worth will receive a total allocation of ARPA funds in an amount exceeding $173.7 million, to be disbursed in two batches or "tranches." The first tranche was received May 19, 2021, and the second tranche is expected to be received on or after May 19, 2022. Subsequently, on June 22, 2021, the City Council approved Mayor and Council Communication (M&C) 21-0445, establishing a general framework for the use of ARPA funds. Funding must be obligated by December 31, 2024 and fully expended by December 31, 2026. Allocation of ARPA Subtitle M Funding Responding to the negative economic impact of the coronavirus pandemic is a specifically identified use of ARPA dollars under Section 603(c)(1)(A) of Title VI of the Social Security Act (added by ARPA). Treasury Department guidance specifically notes that these Fiscal Recovery Funds can be deployed for a broad range of uses to address "the disproportionate....economic impacts of the crisis on the hardest -hit communities, populations, and households" and to provide services and additional investments in Qualified Census Tracts, such as the ones in which the identified projects are located. Therefore, it has been determined that paying for the listed activities in order to improve access to quality, affordable housing and child care services are eligible uses of funds as a response to negative economic impact and an investment in housing and neighborhoods in a Qualified Census Tract. Several local agencies submitted proposals for affordable housing and human services projects totaling $31.4 million. City staff has reviewed these proposals with respect to financial feasibility, community need, and eligibility under ARPA Section 9901, Subsections 603(c)(1)(A) and 603(c)(1)(C), providing funding to aid disproportionately impacted communities and to support governmental services adversely impacted by the pandemic. As a result, City staff recommends that we allocate funding to seven projects as follows. TABLE 1: First Tranche of ARPA Funding Agency Child Care Associates Funding Amount ARPA Funding Address Category Non- 2400 E. 1st St., $2,000,000.00 Revenue 76111 Recovery Council Funding Use District Renovation for Early Learning ;Center in Riverside: Gwendolyn C. 1Gragg Child Development Center; 8 'renovation project to include three ,additional classrooms (total of 8 ;classrooms) and expanded services for ;infants and toddlers Offic'al site of the Cty of Fort Wo.ti , FORT WORTI I apps.cfwnet.org/council_packet/mc review.asp?ID=29362&councildate=l0/19/2021 1/3 11/6/24, 8:04AM M&C Review Fort Worth Housing Solutions $400,000.00 Fort Worth Non - Area Habitat $1,500,000.00 Revenue for Humanity Recovery TOTAL Agency Child Care Associates $3,900,000.00' Funding Amount Cowan Place: 5400/5420 E. Rosedale St., 76105 Neighborhood surrounding JPS Hospital !Infrastructure expenses related to ;neighborhood redevelopment for the ,Stop Six Choice Neighborhood 5 ,Implementation Program; design and construction work associated with underground power lines and the !elimination of power poles Purchase of fourteen (14) detached platted lots for the development of 126 or more affordable townhomes south of John Peter Smith Hospital and within NEZ Six (properties are 1701 St. !Louis, 1720 Galveston, 1719 ;Galveston, 1716 Galveston, 1715 !Galveston, 1709 Galveston, 1703 (Galveston, 1724 S. Main, 1720 S. !Main) 9 TABLE 2: Second Tranche of ARPA Funding ARPA il ! Funding Address Co Category District Non- 5100 Block of $5,000,000.00 Revenue Avenue G, Recovery , 76105 $400,000.00 Fort Worth Housing $400,000.00 Revenue Phase 3: Not Solutions Recovery Yet Named Revenue Recovery Revenue Phase 4: Not 1 $400,000.00 Recovery Yet Named TOTAL $6,200,000.00 Funding Use Building a new Early Learning Center at the future/proposed Stop Six Hub to expand access to infant, toddler and three- s year old services in Stop Six; the ARPA investment would draw $9.2M in quality early learning services from Child Care Associates at no charge to low-income families in Stop Six over ten (10) years ;Infrastructure expenses related to Hughes ;neighborhood redevelopment for the Stop House Six Choice Neighborhood Implementation 4830/4908 E. 5 'Program Hughes House; design and Rosedale St., ;construction work associated with 76105 !underground power lines and the elimination Iof power poles Infrastructure expenses related to neighborhood redevelopment for the Stop Six Choice Neighborhood Implementation Program Phae 3; design and construction work associated with underground power lines and the elimination of power poles Infrastructure expenses related to neighborhood redevelopment for the Stop Six Choice Neighborhood Implementation Program Phase 4; design and construction work associated with underground power lines and the elimination of power poles 5 5 By approval of this M&C, the City Council finds that the expenditure of the funds on the listed projects serve vital public purposes for residents of Fort Worth and that the contracts executed between the parties will provide adequate controls to ensure the public purposes are fulfilled. Specifically, funds provided to Fort Worth Housing Solutions and Trinity Habitat for Humanity serve the public purpose of supporting the provision of quality, affordable housing in the City that meets all required zoning, codes, and infrastructure requirements. Additionally, the funds provided to Child Care Associates will provide needed child care services and programming to residents in need of such critical services. Approval of this M&C will allocate $10,100,000.00 in the American Rescue Plan Act project in the Grants Operating Federal Fund budget. Necessary reporting and documentation requirements will be followed to ensure the City can comply with all reporting requirements of the ARPA legislation. The following chart reflects the current status for allocation of the City's ARPA funding under Subtitle M and incorporates each ARPA M&C on the October 19, 2021 Council Agenda: ALLOCATION OF ARPA SUBTITLE M FUNDING Description Amount M&Cs Total CFW ARPA Subtitle M Funding $173,745, 090,.00'',21-0445 apps.cfwnet.org/council_packet/mc_review.asp?ID=29362&councildate=10/19/2021 2/3 11/6/24, 8:04 AM Allocations Approved To -Date Pending Allocation Pending Allocation M&C Review $6,000,000.00 25ARPA-VFW-TDG $300,000.00 25ARPA-WRMC MURAL PLAQUES $1,000,000.00 13ARPA-ADMINISTRATION Pending Allocation Pending Allocation Pending Allocation Pending Allocation $3,000,000.00 $4,245,533.42 $2,400,000.00 $10,100,000.00 17ARPAALLOCATION CDFI FRIENDLY AMERICA 17ARPAALLOCATIONS EVANS & ROSEDALE REDEVELOPMENT 17ARPAALLOCATIONS UNTHSC TECHSTARS 19ARPA ALLOCATIONS TO HOUSING AND HUMAN SERVICES PROJECTS (This M&C) Remaining Unallocated $146,699,556.58 Balance Fort Worth Housing Solutions does not require a Form 1295 because it is a governmental entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. This is an advance grant. The Neighborhood Services Department shall be responsible for ensuring that only expenditures allowable under the American Recovery Act, with appropriate documentation, are charged to this funding source. TO Fund FROM Fund Department ID Account Department Account ID 1 Project ID Project ID Submitted for City Managers Office by: Originating Department Head: Additional Information Contact: Program Activity Budget Year Reference # [Amount (Chartfield 2) Program 1 Activity Budget Year Reference # (Chartfield 2) Fernando Costa (6122) Victor Turner (8187) Amy Connolly (7556) Sharon Burkley (5785) Amount ATTACHMENTS Form 1295 Certificate City of Fort Worth Child Care Associates ARPA Stop Six Hub 10.4.2021.pdf (CFW Internal) Form 1295 ARPA Child Care Associates.pdf (CFW Internal) Form 1295 ARPA Habitat.pdf (CFW Internal) apps.cfwnet.org/council_packet/mc_review.asp?ID=29362&councildate=10/19/2021 3/3 10/29/25, 9:55 AM CITY COUNCIL Create New From This AGENDA M&C DATE: 8/26/2025 REFERENCE NO.: CODE: C TYPE: SUBJECT: **M&C 25- 0780 M&C Review LOG NAME: u1f1,:i4 . ,2 Ali chi 19CHILD CARE ASSOCIATES ARPA ALLOCATION PUBLIC CONSENT HEARING: NO (CD 5) Authorize Reallocation of American Rescue Plan Act State and Local Fiscal Recovery Funds Up to $629,070.00 to Support Construction of Child Care Associate's Early Childhood Learning Facility in the Stop Six Neighborhood r,,,t ��Thruh, FORT II RECOMMENDATION: It is recommended that City Council authorize reallocation of American Rescue Plan Act Funds, Subtitle M (Coronavirus State and Local Fiscal Recovery Funds) in an amount Up to $629,070.00 to support development and construction of Child Care Associate's Early Childhood Learning Facility in the Stop Six neighborhood. DISCUSSION: This Mayor and Council Communication (M&C) is to authorize reallocation of $629,070.00 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) funds to support unforeseen but necessary development and construction costs creating a financing gap for the Child Care Associate (CCA) Early Childhood Learning Facility in the Stop Six Neighborhood (the "Project"). The City of Fort Worth received ARPA SLFRF in an amount exceeding $173.7 million, consisting of $87,024,408.00 to be spent in the areas of Public Health and Negative Economic Impacts (Non - Revenue Recovery), and $86,720,682.00 to assist the City of Fort Worth (City) with the provision of governmental services (Revenue Recovery). Per U.S. Treasury requirements, the full amount was allocated to ARPA eligible initiatives established in M&C 21-0445 on June 22, 2021, and contracts were executed to obligate funds by the established deadline of December 31, 2024. Current Treasury guidelines allow identified ARPA residual revenue to be reallocated to established ARPA projects to cover shortfalls in funding as a result of unforeseen but necessary expenditures. Originally planned as part of the community center "hub," this Project was initially allocated $5,000,000.00 in Non -Revenue RecoveryARPAfunding on October 19, 2021, by M&C 21-0814 as a way of improving access to quality affordable child care services in a qualified census tract, which was identified as a means of responding to the negative economic impact of the coronavirus pandemic (Section 603(c)(1)(A) of Title VI of the Social Security Act (added by ARPA) and Treasury Department guidance). Due to space limitations and competing demands at the hub, a stand-alone facility was pursued, an option supported by then -Councilwoman Bivens. Fort Worth Housing Solutions (FWHS) identified two parcels in the vicinity as a possible site for the Project. While FWHS initially expected to provide the land at a minimal cost, CCA ultimately had to pay over $450,000.00 for the lots. Although the site lacks utilities and infrastructure, the CCA Foundation Board authorized the land purchase at an increased price to keep the Project on track. Zoning and City Council approvals are complete, and the Project is scheduled for completion by December 2026. CCA received infrastructure bids totaling approximately $1,900,000.00, much higher than anticipated, due to soil preparation and water retention requirements. These costs now account for nearly a third of the project budget and have created a projected shortfall of $1,500,000.00. The Financial Management Services Department (FMS), in coordination with department project managers, has identified residual ARPA Non -Revenue Recovery funds in the following completed or apps.cfwnet.org/council_packet/mc_review.asp?I D=33640&councildate=8/26/2025 1/6 10/29/25, 9:55 AM M&C Review substantially completed ARPA projects: Project M&C Amount ARPA Administration 21-0805 $ 75,000.00 Highland Hills Park Improvements 23-0517 500,000.00 Gragg Child Development Facility 21-0814 53,778.00 MMA Streetlights 22-0789 292.00 Total Available for Reallocation $ 629,070.00 In addition to the proposed reallocated ARPA funding, a separate M&C on today's agenda seeks authorization to use $870,930.00 in Fiscal Year 2025 interest earnings for this learning facility, for a total additional funding amount of $1,500,000.00 Summary of ARPA Allocations To -Date The following chart reflects the current status for allocation of the City's ARPA funding under Subtitle M and incorporates each ARPA M&C on the August 26, 2025, Council Agenda: STATUS AMOUNT M&C Total CFW j $173,745,090.00 21-0445 362021 AMERICAN RESCUE PLAN ARPA Subtitle M Funding Allocations Approved To -Date Allocations' Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved To -Date 6,000,000.00 21-0794 25ARPA-VFW-TDG 1,000,000.001 21-0805 13ARPA-ADMINISTRATION 4,245,533.00 21-0810 17ARPAALLOCATIONS EVANS & ROSEDALE REDEVELOPMENT 2,400,000.001 21-0811 17ARPAALLOCATIONS UNTHSC TECHSTARS 10,100,000.001 21-0814 19ARPAALLOCATIONS TO HOUSING AND HUMAN SERVICES PROJECTS 3,000,000.001 21-0809 19ARPAALLOCATION CDFI FRIENDLY AMERICA 300,000.00 21-0820 25ARPA-WRMC MURAL PLAQUES 6,400,000.00'21-0935 21ARPA-PEG FUNDING -FUTURE CITY HALL apps.cfwnet.org/council_packet/mc_review.asp?ID=33640&councildate=8/26/2025 2/6 10/29/25, 9:55 AM Allocations I Approved To -Date Allocations Approved j To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved ! To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations !, Approved To -Date Allocations Approved To -Date Allocations Approved I To -Date I Allocations Approved To -Date Allocations Approved To -Date Allocations; Approved To -Date Allocations Approved To -Date Allocations I Approved To -Date M&C Review 8,000,000.00 21-0908 23ARPA-VACCINATIONS AND TESTING 4,560,000.00 21-0913 25ARPA- P E D\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\_CAPITAL\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\_R E STO R E 52,000,000.00 I 21-0934 21ARPA-FWCC EXPANSION FUNDING & PROJECT ;MANAGEMENT 3,000,000.00 22-0268 17ARPA CENTER FOR TRANSFORMING LIVES 5,000,000.00 122-0270 19ARPAALLOCATION FOR PERMANENT SUPPORTIVE HOUSING 7,091,047.00 ; 22-0368 04ARPANEIGHBORHOOD WIFI CARES RATIFICATION/ARPA ALLOCATION 3,595,000.00 22-0366 04ARPA INFRASTRUCTURE PROGRAM 3,675,000.00 ! 22-0367 04ARPA CYBERSECURITY PROGRAM 16,000,000.00 122-0789 MMA INFRASTRUCTURE — STREETLIGHTS & PEDESTRIAN SAFETY 2,500,000.00 22-0789 MMA INFRASTRUCTURE — COBB & HIGHLAND HILLS PARKS 3,200,000.00 122-0789 TARRANT AREA FOOD BANK FACILITY 2,000,000.00 j 22-0789 POLICE AND FIRE COVID WORKER'S COMPENSATION CLAIMS 1,458,372.00 22-0789 POLICE COVID HEALTH EXPENDITURES 750,000.00 22-0789 VISIT FORT WORTH SPECIAL EVENT FUNDING 4,411,080.00 22-0789 UNITED WAY ONE SECOND COLLABORATIVE apps.cfwnet.org/council_packet/mc_review.asp?ID=33640&councildate=8/26/2025 3/6 10/29/25, 9:55 AM Allocations; Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations! Approved To -Date Allocations ; Approved To -Date Allocations' Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Reclaimed Allocations Allocations , Approved I To -Date Allocations Approved To -Date Allocations I Approved To -Date Reclaimed Allocations; Allocations Approved To -Date Allocations Approved To -Date Allocations i Approved To -Date 8,000,000.00 M&C Review 22-0789 DEEPLY AFFORDABLE HOUSING INFRASTRUCTURE & DRAINAGE 1,500,000.00 22-0789 FORT WORTH ZOO ROAD REPAIR, EROSION CONTROL, BROADBAND 200,00-0.00 22-0789 TX WESLEYAN ON -CAMPUS PUBLIC UTILITY RELOCATION 1,925,000.00 22-0789 WILL ROGERS MC AIR HANDLER REPLACEMENT 5,950,000.00 22-0789 WILL ROGERS MC CONCOURSE, LOBBY AND RESTROOM UPDATES 2,000,000.00 ! 23-0284 ARPA FWTC INNOVATION PARTNERSHIP $50,000.00 23-0518 6OWSTAMUS ILA $100,000.00 i 23-0609 ARPA\\\\\\\_CENTRAL\\\\\\\_MULTIMODAL\\\\\\\MOBILITY\\\\\\\HUB -4,216,902.00 23-0609 ARPA\\\\\\\_CENTRAL\\\\\\\_MULTIMODAL\\\\\\\_MOBILITY\\\\\\\_HUB 4,500,000.00 23-0925 RFP 22-0146 BROADBAND ENHANCEMENTS CH CITY 596,275.00 24-0180 WSTAMUS-MCO 515,000.00 24-0458 2020INT IMPROV N. BEACH ST/WESTERN CENTER BLVD APPROPRIATION -5,207,163.00 I 24-0459 13UPDATE AMERICAN RESCUE PLAN ALLOCATIONS 2,020,500.00 24-0496 21MEADOWBROOK GOLF COURSE MAINTENANCE FACILITY 1,000,000.00 24-0567 20INTERMODAL PKWY CONSTRUCTION CONTRACT 2,307,939.00 24-0781 20ARPA NON -REV TRANSPORTATION ALLOCATIONS apps.cfwnet.org/council_packet/mc_review.asp?ID=33640&councildate=8/26/2025 4/6 10/29/25, 9:55 AM Reclaimed Allocations Allocations Approved To -Date Allocations Approved To -Date Allocations Approved To -Date Allocations Approved i To -Date Reclaimed Allocations Reclaimed Allocations M&C Review -1,288,733.00 24-0807 13ARPA COBB PARK RECLAIM AND IMPACT FEE ALLOCATIONS 1,504,959.00 24-0896 2020ARPA NON -REV TRANSPORTATION ALLOCATIONS 567,000.00 24-0920 04ARPA\\\_NEIGHBORHOOD\\\_WIFI\\\_AND\\\_INFRASTRUCTURE 1,035,000.00 183.00 0.00 24-1142 80SECURITY LIGHTING IMP AT 21 PARK SITES 24-1036 04ARPA\_INFRASTRUCTURE\_AMEND 04ARPA ITS INFRASTRUCTURE PROGRAM -WINDOWS 0.00 19CHILD CARE ASSOCIATES ARPA ALLOCATION (This M&C) $0.00 Unallocated Balance FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the American Rescue Plan Act project within the Grants Operating Federal Fund and the ARPA HH Park Rd/Prking Improv project within the Grants Cap Projects Federal Fund, and upon approval of the above recommendation, funds will be available in the Grants Operating Federal Fund for the Child Care Associate's Early Childhood Learning Facility. Prior to any expenditures being incurred, the Neighborhood Services Department shall be responsible for ensuring funds are available and that only expenditures allowable under the American Rescue Plan Act are charged to the ARPA funding source. TO Fund FROM Department Account ID Fund Department Account ID Project Program ID Project Program ID Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Activity Activity Budget Year Reference # ChartfieId 2) Amount Budget Reference # Amount Year (Chartfield 2) Dana Burghdoff (8018) Kacey Thomas (8187) Joshua Hezlep (2635) Chad LaRoque (2661) apps.cfwnet.org/council_packet/mc_review.asp?ID=33640&councildate=8/26/2025 5/6 10/29/25, 9:55 AM M&C Review ATTACHMENTS CCA reallocation funding.pdf (CFW Internal) FORM 1295 ARPA CHILD CARE ASSOCIATES (1).pdf (CFW Internal) Funding Availablility Stop Six Reallocation.docx (CFW Internal) Stop Six Reallocation FID Table.xlsx (CFW Internal) apps.cfwnet.org/council_packet/mc_review.asp?ID=33640&councildate=8/26/2025 6/6 9/30/25, 9:27 AM M&C Review CITY COUNCIL AGENDA Create New From This M&C DATE: 9/16/2025 REFERENCE NO.: CODE: G SUBJECT: LOG NAME: PUBLIC HEARING: (ALL) Amend Mayor and Council Communication 25-0003 to Correct the Source of Appropriations for the Risk Financing Fund, Enact Budget Adjustments to Recognize Unrestricted Interest Income in the General Fund Rather than Debt Service, Approve Transfers to the Grants Operating Federal Fund, Group Health Fund, and General Capital Projects Fund in Fiscal Year 2025, and Adopt Appropriation Ordinances FORTWORTH 03INTEREST EARNINGS APPROPRIATION TYPE: RECOMMENDATION: It is recommended that the City Council: **M&C 25- 0812 CONSENT NO 1. Amend Mayor and Council Communication 25-0003 to correct the source of the $5,000,000.00 appropriation in the Risk Financing Fund as being Fiscal Year 2024 assigned fund balance rather than interest earnings; 2. Authorize the use of Interest Earnings from Fiscal Year 2025 in the amount of $27,623,122.00 for immediate and potential future appropriation as follows: a. $870,930.00 for the Childcare Associates Early Learning Center; b. $6,500,000.00 for a contribution to the Cowgirl Hall of Fame; c. $3,100,000.00 for the Health Fund; d. $3,129,070.00 to Panther Island Project; e. $14,023,122.00 to fund balance 4. Adopt the attached appropriation ordinance adjusting the General Fund by recognizing and utilizing $27,623,122.00 in receipts from unrestricted interest earnings to increase appropriations by $13,600,000.00 for transfers funding one-time special projects and other capital needs and to reduce the use of fund balance by $14,023,122.00, thereby contributing to unassigned fund balance; 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the amount of $870,930.00, transferred from General Fund interest earnings, for the purpose of funding Healthy Childhood: Child Care project (City Project No. 103165); 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Group Health Fund in the amount of $3,100,000.00, transferred from General Fund interest earnings, for the purpose of satisfying reserve requirements in the Group Health Fund; 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Capital Projects Fund in the amount of $3,129,070.00, transferred from General Fund, interest earnings for the purpose of funding Panther Island Bridges Phase 1 project (City Project No. 106351); 8. Designate $14,023,122.00 as Fiscal Year 2025 fund balance from Fiscal Year 2025 interest earnings in the General Fund; and 9. Amend the Fiscal Year 2025 Operating Budget. DISCUSSION: apps.cfwnet.org/council_packet/mc_review.asp?ID=33672&councildate=9/16/2025 1/4 9/30/25, 9:27 AM M&C Review The purpose of this Mayor and Council Communication (M&C) is to amend M&C 25-0003 to correct the source of the $5,000,000.00 appropriations appropriation in the Risk Financing Fund (Recommendation 5) s as being Fiscal Year 2024 assigned fund balance rather than interest earnings and to enact budget adjustments to reallocate resources and appropriate unrestricted interest earnings to provide funding for one-time special projects and other capital needs. Allocation of Unrestricted Interest - Department Additional Appropriations This M&C proposes utilizing $27,623,122.00 in unrestricted interest earnings for a variety of projects and uses as detailed below. GENERAL FUND Cowgirl Hall of Fame contribution: $6,500,000.00 Reason: City Council previously adopted a resolution to support the Cowgirl Museum's expansion project to preserve and promote the City's diverse history and culture through the City's high -quality museums. Contribution to Fund Balance: $14,023,122.00 Reason: To the extent the unrestricted interest earnings are not specifically allocated and appropriated elsewhere in this M&C, staff recommends those dollars (estimated to be $14,023,122.00) be allocated to reduce budgeted use of fund balance in the General Fund, thereby increasing the unassigned fund balance. This action supports ongoing efforts to maintain structurally sound reserves and ensure fund balance growth remains proportionate to anticipated expenditure growth in the proposed FY2026 budget. The allocation also supports the City's financial resiliency and strengthens its position with credit rating agencies. OTHER FUNDS Group Health Fund: $3,100,00.00 Reason: Staff recommends allocating $3.1 million of current -year interest earnings to support the Health Fund's financial restoration plan. This contribution is aligned with the goal of restoring the fund to compliance with its minimum reserve requirements. The allocation provides targeted, near -term relief to strengthen the fund's long-term sustainability and ensure continued financial stability for the City's self -insured health plan. General Capital Projects- General Panther Island Bridges Phase 1 (Project 106351): $3,129,070.00 Reason: Funds will be used toward professional services, project management, inspection, material testing, and local participation direct costs of bridge projects that will serve as crossings for the Tarrant Regional Water District (TRWD) phased construction of the Panther Island canals. The local participation represents the City of Fort Worth's match to the contributions from multiple regional partners, such as the North Central Texas Council of Governments (NCTCOG) and the Texas Department of Transportation (TxDOT), to this initiative. Grants Operating Federal- Childcare Associates Early Learning Center: $870,930.00 Reason: Funds will be used to help cover a shortfall in the development of a new Early Learning Center to expand access to infant, toddler, and three -year -old services in the Stop Six neighborhood. M&C 25-0780, which passed on 8/26, reallocated approximately $690,000.00 of additional funds for this Childcare Associates project in the Stop Six neighborhood, for a total additional allocation of $1.5 million. Description Childcare Associates Early Learning Center funded by FY2025 interest earnings Cowgirl Hall of Fame funded by FY2025 interest earnings Health Fund funded by FY2025 interest earnings Panther Island funded by FY2025 interest earnings $870,930.00 $6,500,000.00 $3,100,000.00 $3,129,070.00 apps.cfwnet.org/council_packet/mc_review.asp?ID=33672&councildate=9/16/2025 2/4 9/30/25, 9:27 AM Fund balance contribution/Reduction of Use of Fund Balance Total M&C Review $14,023,122.00 $27,623,122.00 1 Recognition of Interest Earnings The City generates investment income by prudently investing idle cash from operations, "pay as you go" capital funds, and bond funds in compliance with state law and City policy. The existing practice, in compliance with the current Revenue Policy, is to allocate investment income from governmental funds, derived from resources other than bond or debt proceeds, either in the City's General Debt Service Fund or in the General Fund (to one-time capital projects or contributing to unassigned fund balance )as recommended by the City Manager. The latest FY 2025 analysis has identified $27,623,122.00 of urnestricted and unpledged surplus interest and investment income. Staff recommends for City Council to authorize the recognition of this unpledged and unencumbered investment income in the General Fund rather than the Debt Service Fund in FY 2025, so that such funds can be used to fund one-time initiatives and/or capital projects as detailed herein. Recommendation 2 of this M&C assigns this amount for such one-time projects. Going forward, staff will monitor collection of investment income from general government operations to identify any surplus that can be used for other lawful purposes. Given the variable nature of investment income, any surplus will generally be prioritized to fund one-time initiatives, capital projects, or to accumulate cash which can be used to pay off debt prior to maturity to achieve debt service savings. This action does not encompass income derived from the investment of debt proceeds, which continues to be allocated to the appropriate Debt Service Fund in accordance with legal and policy requirements. Nor does it include investment earnings attributable to purpose -restricted funds such as Water & Sewer, Stormwater, Crime Control Prevention District, etc. or to funds that are subject to other legal or policy constraints. Those funds will continue to receive their appropriate allocation of investment income. Current Fiscal Year Interest Earnings Budget GENERAL FUND Purpose FY2025 Adopted Budget Budget Increase FY2025 Revised Budget Employees Supporting Debt $500,000.00 $0.00 $500,000.00 Cowgirl HOF $0.00 $6,500,000.00 $6,500,000.00 CCA $0.00 $870,930.00 $870,930.00 Health Fund $0.00 $3,100,000.00 $3,100,000.00 Panther Island $0.00 $3,129,070.00 $3,129,070.00 Fund Balance $0.00 $14,023,122.00 $14,023,122.00 Total $500,000.00 $27,623,122.00 $28,123,122.00 Approval of this M&C will amend the Fiscal Year 2025 Adopted Budget, as approved with Ordinance 27107-09-2024. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and the adoption of the attached appropriation ordinances, funds will be available in the FY2025 operating and capital budgets as appropriated. Prior to any expenditure being incurred, the participating departments have the responsibility to validate the availability of funds. apps.cfwnet.org/council_packet/mc_review.asp?ID=33672&councildate=9/16/2025 3/4 9/30/25, 9:27 AM M&C Review TO [Fund Department ID Account Project ID Program Activity Budget I Reference # Year (Chartfield 2) Amount FROM Fund Department ID Account Project ID Program Activity Budget Year Reference # (Chartfield 2) Amount Submitted for City Manager's Office by_ Dianna Giordano (7783) Originating Department Head: Christianne Simmons (6222) Additional Information Contact: ATTACHMENTS 03INTEREST EARNINGS APPROPRIATION funds availability.pdf (CFW Internal) 03INTERESTEARNINGSAPPROPRIATION FID .xlsx (CFW Internal) ORD.APP 03INTEREST EARNINGS APPROPRIATION 10100 A025(R3).docx (Public) ORD.APP 03INTEREST EARNINGS APPROPRIATION 21001 A025(4).docx (Public) ORD.APP 03INTEREST EARNINGS APPROPRIATION 30100 A025(R6).docx (Public) ORD.APP 03INTEREST EARNINGS APPROPRIATION 60109 A025(R5).docx (Public) apps.cfwnet.org/council_packet/mc_review.asp?ID=33672&councildate=9/16/2025 4/4 FORT WORTH® City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Child Care Associates Subject of the Agreement: Second Amendment to City Secretary Contract No. 62419 M&C Approved by the Council? * Yes 8 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes 8 No ❑ 62419 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes 8 No D If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No ® If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: 10/31/2025 Expiration Date: 12/31/2026 If different from the approval date. If applicable. Is a 1295 Form required? * Yes ® No 0 *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 8 No 0 Contracts need to be routed for CSO processing in the following order: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.