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HomeMy WebLinkAboutOrdinance 14158Ordinance No. I c/ AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER OPERATING FUND IN THE AMOUNT OF $584,697.32 FROM AVAILABLE FUNDS FOR THE PURPOSE OF FUNDING AN ESCROW ACCOUNT TO BE MAINTAINED PENDING RESOLUTION OF CLAIM FOR REIMBURSEMENT BY GARY J BAKER, DEBORRA L. BAKER AND THE ESTATES OF EAGLE MOUNTAIN, LTD., MAKING THIS ORDINANCE CITMULATiVE 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 the Fiscal Year 1999-00 and in the Budget of the City Manager, there shall also be increased estunated receipts and appropriations in the Water and Sewer Operating Fund ui the amount of $584,697.32 from available funds for the purpose of funding an escrow account to be maintained pending resolution of a claim for reimbursement by Gary J Baker, Deborra L. Baker and The Estates of Eagle Mountain, Ltd. for expenses incurred for the installation of water, sewer, and drainage facilities in the Eagle Mountain Municipal Utility District. SECTION 2. 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. 13886 and all other ordinances and appropriations amending the same except m those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropnations, in which instance said conflicting provisions of 'said pnor ordinances and appropnations are hereby expressly repealed. SECTION 4 This ordinance shall take effect and be in full force after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY As is ant City Attorney Date ~-~-0~ Adopted t ~: Effective City of Fort Worth, Texas ~11~A~or And aunc~l antnlun~cAt~an C C DATE REFERENCE NUMBER LOG NAME PAGE 4/4/00 G-12880 12BAKE 1 of 3 SUBJECT ADOPT THE SUPPLEMENTAL APPROPRIATION ORDINANCE AND AUTHORIZE THE CITY MANAGER TO PAY GARY J BAKER, DEBORRA L. BAKER AND THE ESTATES OF EAGLE MOUNTAIN, LTD FOR EXPENSES INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE MOUNTAIN MUNICIPAL UTILITY DISTRICT AND TO RESOLVE A CLAIM FOR PAYMENT OF AN ADDITIONAL SUM RECOMMENDATION It is recommended that the City Council Authorize the City Manager to use appropriated funds in the Commercial Paper Sewer and Water Fund to make a previously authorized contractual payment of $1,500,000 00 to Gary J Baker, Deborra L Baker and The Estates of Eagle Mountain, Ltd ,and 2 Adopt the attached supplemental appropriation ordinance increasing appropriations by $584,697 32 and decreasing the unreserved, undesignated retained earnings in the Water and Sewer Operating Fund by the same amount; and 3 Authorize the City Manager to take actions necessary to resolve the claim by Gary J Baker, Deborra L Baker and The Estates of Eagle Mountain, Ltd for additional reimbursement in the amount of $584,697 32 DISCUSSION Background On January 4, 2000, the City of Fort Worth annexed all the land within the boundaries of the Tarrant County Municipal Utility District No 1, consisting of approximately 1,559 acres of land The Eagle Mountain Municipal Utility District (Eagle Mountain MUD), consisting of approximately 457 acres of land, is located entirely within the Tarrant County Municipal Utility District No 1 Accordingly, all land in the Eagle Mountain MUD was annexed by the City on January 4, 2000 The Eagle Mountain MUD was created in March, 1999, by order of the Texas Natural Resource Conservation Commission (TNRCC) The petition for creation of the Eagle Mountain MUD was submitted by Gary J Baker, Deborra L. Baker and The Estates of Eagle Mountain, Ltd (collectively, Baker), who are the owners or developers of all of the real property located within the district. Baker sought creation of the Eagle Mountain MUD to alllow the MUD to issue bonds to finance the water, sanitary sewer and drainage facilities necessary to serve Baker's development projects within the MUD On March 16, 1999, the Eagle Mountain MUD and Baker entered into a Facilities and Operating Costs Reimbursement Agreement The agreement provided that Baker would fund construction of water, sanitary sewer and drainage facilities required to serve Baker's development within the MUD and that the MUD would reimburse Baker with the proceeds of bonds to be issued by the MUD and an ad valorem tax to be levied by the MUD City of Fort Worth, Texas ~~a~~or un~ (~ounc~l Com~rtun~cAt~on 1 DATE REFERENCE NUMBER LOG NAME PAGE 4/4100 G_~ 2880 126AKE 2 of 3 su~.~ECT ADOPT THE SUPPLEMENTAL APPROPRIATION ORDINANCE AND AUTHORIZE THE CITY MANAGER TO PAY GARY J BAKER, DEBORRA L. BAKER AND THE ESTATES OF EAGLE MOUNTAIN, LTD FOR EXPENSES INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE MOUNTAIN MUNICIPAL UTILITY DISTRICT AND TO RESOLVE A CLAIM FOR PAYMENT OF AN ADDITIONAL SUM Ors 81~ay 1, 1999, an election was held in the Eagle Mountain MUD to authorize the MUD to issue bonds in the max'smum amount of $28,700,000 00 for the purchase or construction of water, sanitary sewer an~f ~Irainage facilities and to levy an annual ad valorem tax and an annual maintenance tax. As ~f January 4, 2000, when the Eagle Mountain MUD was annexed by the City, Baker had expended fure~s for the construction of water, sanitary sewer and/or drainage facilities, but no bonds had been issued and no taxes had been assessed by the Eagle Mountain MUD to reimburse Baker AP~ta~iicable Law As a result of the annexation, the Eagle Mountain MUD will be abolished by operation of law on April 4, 20QB Section 43 0715 of the Texas Local Government Code provides that a developer is entitled to reirbursement for certain water, sewer and drainage costs by a municipality that annexes a municipa~ ufrlt~r district if the annexation precludes the ability of the district to issue bonds The municipality mus pay in cash to the developer alll expenses incurred by the developer in connection with the district that the district has, in writing, agreed to pay and that would otherwise have been eligible for reimbursement frorra bond proceeds under the rules and requirements of the TNRCC in effect on the annexation date AF~~lition ofi the Eagle Mountain MUD will preclude the MUD's ability to issue bonds to fund reimbursement of Baker for development costs Accordingly, the City is obligated to reimburse Baker for amounts that otherwise would have been eligible for reimbursement under TNRCC rules and rega~lations in effect on January 4, 2000 Ac+~nowrledgement of $'1,500,000 00 Claim and Extension of Reimbursement Deadline BaiC~er and the City contractually extended the due date for the reimbursement to February 15, 2000, by agreement dated January 4, 2000 (City Secretary Contract No 25518), in order to allow the parties to exg~lore financial incentives to Baker in lieu of reimbursement of expenses Baker seeks reimbursement in e amount of $2,084,697 32. Baker and the City acknowledged that the reimbursement amount is between $1,500,000 00 and $2,084,697 32. The parties agreed that if no agreement on alternative financial arrangements were reached by February 15, 2000, the City would pay no less than $1 s500,000 00 to Baker on that date and either party could elect to litigate, arbitrate or mediate any congested amounts, up to a total of $2,084,697 32. The deadline was extended to March 15, 2000, and again to April 4, 2000 The extension agreements incorporated the provisions of the January 4, 2000, agreement concerning resolution of conteste ar~x~unts exceeding $1,500,000 00 No agreement for financial incentives to Baker in lieu o~ rei-rrabursement of developer expenses as outlined above has been reached Copies of the January 4, 20efl0. agreement and the extension agreements are attached City of Fort Worth, Texas ~~A~ar And ~runc;l an~n~un~cAt~an C C DATE REFERENCE NUMBER LOG NAME PAGE 4/4/00 G-12880 12BAKE 3 of 3 SUBJECT ADOPT THE SUPPLEMENTAL APPROPRIATION ORDINANCE AND AUTHORIZE THE CITY MANAGER TO PAY GARY J BAKER, DEBORRA L. BAKER AND THE ESTATES OF EAGLE MOUNTAIN, LTD FOR EXPENSES INCURRED FOR CONSTRUCTION OF INFRASTRUCTURE IN THE EAGLE MOUNTAIN MUNICIPAL UTILITY DISTRICT AND TO RESOLVE A CLAIM FOR PAYMENT OF AN ADDITIONAL SUM Accordingly, it is requested that the City Council authorize the City Manager to pay $1,500,000 00 to +Gary J Baker, Deborra L Baker and The Estates of Eagle Mountain, Ltd ,from the Commercial Paper Sewer and Water Fund, adopt the attached appropriation ordinance to increase appropriations in the amount of $584,697 32 in order to fund an escrow account to set aside the additional amount claimed by Baker, and authorize the City Manager to take whatever actions are necessary to resolve Baker's claim for additional reimbursement. No payment of any additional amount will be made to Baker ~trithout City Council approval ;FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon approval of the above recommendations and adoption of the supplemental appropriation ordinance, funds will be available in the current capital and operating :budgets, as appropriated, of the Commercial Paper Sewer and Water Fund and the Water and Sewer Operating Fund The unrestricted cash balance of the Water and Sewer Operating Fund will be '$2,999,465 84 MG j Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY 2) PE45 538040 0609020 $327,430.50 ~ ~ Mike Groomer 6140 2) PE45 538040 0709020 $257,266.82 A OV ~ originating Department Head CITY COUNCIL . Dale Fisseler 8207 (from) hQR d 200Q 1) PS46 541200 070460136350 $840,000.00 dditionalInfor¢nationContact: 1)PW77 541200 060770156870 $660,000.00 ~~ ~~ ~) ~.1~"t•,~-.~./ 3) PE45 538040 0609020 $327,430.50 City Secretary of the Date Fisseler 8207 3) PE45 538040 0709020 $257,266.82 City of Fort Worth,l~exae. Adoptt?d Ordinance IYo. '~~