HomeMy WebLinkAboutOrdinance 16052ORDINANCE NO ~ `~' `° ~`'
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE CAPITAL PROJECTS RESERVE FUND IN THE AMOUNT OF $590 000
FROM AVAILABLE FUNDS CONTINGENT UPON A FAILURE TO ACHIEVE
EITHER THE TRANSFER OF THE TITLE OF THE PROPERTY AT THE
FEDERAL DEPOT SITE TO THE LOCAL GOVERNMENT CORPORATION OR
THE ISSUANCE OF BONDS FOR THE PURPOSE OF FUNDING DESIGN WORK
ON THE FEDERAL DEPOT SERVICE CENTER; PROVIDING FOR A
SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT
HEREWITH AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH
TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2003-04 in the Budget
of the City Manager there shall also be increased estimated receipts and appropriations in the
Capital Projects Reserve Fund in the amount of $590 000 from available funds, contingent upon a failure to
achieve either the transfer of the title of the property at the Federal Depot site to the Local Government
Corporation or the issuance of bonds for the purpose of funding design work on the Federal Depot Service Center
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid inoperative or void for
any reason by a court of competent jurisdiction such decision, opinion or judgment shall in no way impair the
remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and
remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No. 15636 and all other ordinances and appropriations
amending the same except in those instances where the provisions of this ordinance are in direct conflict with
such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances
and appropriations are hereby expressly repealed
SECTION 4
This ordinance shall take effect upon adoption
APPROVED AS TO FORM AND LEGALITY
Assistant Ci ttorney
ADOPTED AND EFFECTIVE. ~~~
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved As Amended on 7/27/2004 Ordinance No 16052 and 16053
DATE Tuesday July 27 2004
LOG NAME 20MOU REFERENCE NO C-20171
SUBJECT
Appropriation Ordinance and Amendment to the Memorandum of Understanding with Concho
Development LLC to Authorize Architectural/Engineering Design Work on the Federal Depot Service
Center Project
.~..
RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$590 000 in the Capital Projects Reserve Fund from available funds, contingent upon a failure to achieve
either the transfer of title of the property at the Federal Depot site to the Local Government Corporation
(LGC) from the USPS developer-agent (Concho Development, L.L.C) or the issuance of bonds to finance
the Federal Depot Service Center project; and
2. Authorize the transfer of $590 000 from the Capital Projects Reserve Fund to the Specially Funded
Capital Projects Fund contingent upon a failure to achieve either the transfer of title of property or the
issuance of bonds, and
3 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$590 000 in the Specially Funded Capital Projects Fund from available funds contingent upon a failure to
achieve either the transfer of title of property or the issuance of bonds and
4 Authorize the City Manager to execute an amendment to the Memorandum of Understanding (MOU)
with Concho Development LLC contingent upon receiving an acceptable letter of agreement from the
General Services Administration related to any unexpected site conditions at the Federal Depot site.
DISCUSSION
M&C C-19766 (Sept 23 2003) authorized the execution of an MOU with the USPS to cause a $70 000
schematic design effort, and the development of a firm price quote to relocate the Harley Service Center to
the Federal Depot site M&C C-20026 (April 13 2004) authorized the amendment to the MOU for an
additional $20 000 of schematic design work to allow the relocation of the Downtown Service Center to be
included in the project at a total estimated project cost of $21 100 000 to $21 400 000 As reported to
Council via Informal Report 8603 (June 02 2004) staff has been negotiating the terms of a $21 400 000
agreement between the Local Government Corporation created for this project and the USPS developer
agent (Concho Development, LLC)
To protect the interests of the City and the LGC the agreement document states that the deal is ultimately
contingent upon both the transfer of title to the property to the LGC and- the sale or issuance of the bonds
needed to finance the project. It will take 45 to 60 days to close on the property and complete the issuance
of bonds.
Logname 20MOU Page 1 of 2
To ensure that the construction contractor and design consultants will honor the price quotes used to set
the project cost it is necessary to begin and complete all geotechnical and civil engineering design and
approximately 30% of the architectural and mechanical/engineering/plumbing design prior to closing on the
property and the issuance of bonds. The cost for this design work is $500 000
Provided that the transfer of title to the property and the issuance of bonds takes place as planned then the
design costs addressed in this M&C as well as all other project costs will be financed via lease-revenue
bonds issued by the LGC The LGC will make debt service payments from the proceeds of the lease
between the City and the LGC If property transfer or bond issuance fails for some reason the City will pay
the USPS $500 000 from the Capital Projects Reserve Fund for all the design work addressed by this M&C
as well as $90 000 for the schematic design work already accomplished under the MOU as currently
amended In this event, the product of the design effort will become the property of the City
The original MOU and the first amendment were between the City and the USPS Since that time the
USPS Lee D Cornell and David F Godfrey have formed the limited liability corporation Concho
Development, LLC to perform the work.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance funds will be available in the Specially Funded Capital Projects Fund
contingent upon a failure to achieve either transfer of title of property or the issuance of bonds The cash
balance of the Capital Projects Reserve Fund after this transfer will be $ 1 903 862 The fiscal year end
fund balance at this time is projected to be $ $1 748 922
TO Fund/AccountlCenters
(1) GC10 488332 013010001000 $590.000.00
(1) GC10 538070 013010001000 $590.000.00
(2&3) GC35 472010 020020004000 $590.000.00
(3) GC35 531200 020020004000 $590.000.00
FROM Fund/AccountlCenters
(2) GC10 538070 013010001000
(4) GC35 531200 020020004000
$590,000.00
$590.000.00
Submitted for City Manager's Office by' Marc Ott (8476)
Originating Department Head Robert Goode (7801)
Additional Information Contact: Greg Simmons (7862)
Logname:20MOU
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