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HomeMy WebLinkAboutItem 07 - Grapevine Main Station MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER -- MEETING DATE: NOVEMBER 21, 2017 SUBJECT: CONSIDER A REIMBURSEMENT RESOLUTION AND AN ORDINANCE APPROPRIATING FUNDS TO THE CAPITAL PROJECTS GENERAL FACILITY FUND RECOMMENDATION: City Council to consider: 1. Adopting a resolution to reimburse for costs associated with the design and construction of the Grapevine Main Station and garage from proceeds of obligations to be issued subsequent to the date hereof estimated at $38,045,000. 2. Adopting an appropriation ordinance to: Appropriate $12,000,000 from the undesignated CVB Fund balance and transfer funds to the Capital Projects General Facility Fund; Appropriate $10,000,000 from the undesignated Economic Development Capital Fund balance and transfer funds to the Capital Projects General Facility Fund. The FY17 adopted budget included $7,000,000 for the project; Increase estimated receipts in the Capital Projects General Facility Fund in the amount of $15,000,000 from TexRail for its $20,000,000 contractual funding obligation; Increase estimated receipts in the amount of $33,045,000 from the reimbursement resolution; and Appropriate $77,045,000 in the Capital Projects General Facility Fund for the purpose of funding the Grapevine Main Station and garage. FUNDING: Upon approval of the attached appropriation ordinance, funds will be available in the Capital Projects General Facility Fund in the amount of $77,045,000. BACKGROUND: In 2006, the citizens of Grapevine overwhelmingly voted to approve the creation of an Economic Development 4B fund for the primary purpose of providing passenger rail service. Since that time, the City has worked closely with TexRail to achieve this goal. The future station, located at the corner of Dallas Road and Main Street, will consist of an observation tower, public plaza, parking garage, public meeting spaces, market hall, and retail spaces. Approval of this memo will provide for full project funding. Contract authorization to begin construction on the parking facility and begin site-work will be on the December 5, 2017 agenda. Staff will return at a later date for contract approval for the remainder of the project development including the station, observation tower, public plaza, and public meeting spaces. The parking structure will be completed by the end of December 2018, and it is anticipated the remainder of the project will be completed by summer 2019. Staff recommends approval. GJ/JB RESOLUTION NO. 2017-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the"City") is a political subdivision of the State of Texas authorized to finance its activities by issuing obligations; and WHEREAS, the City has awarded a contract to Coury Hospitality for the design and construction of the Grapevine Main Station; and WHEREAS, the City has concluded that it does not currently desire to issue obligations to finance the costs associated with the contract; and WHEREAS, the City desires to reimburse itself for the costs associated with the contract from the proceeds of obligations to be issued subsequently to the date hereof; and WHEREAS, the City reasonably expects to issue obligations to reimburse itself for the costs associated with the contracts; and WHEREAS, all constitutional and statutory prerequisites for the approval of this resolution have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this resolution to be in the best interests of the health, safety, and welfare of the public. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City reasonably expects to reimburse itself for the costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with the design and construction of the Grapevine Main Station from the proceeds of obligations to be issued subsequent to the date hereof. Section 3. That the City reasonably expects that the maximum principal amount of obligations, issuance costs and the costs incurred to reimburse the City for contracts is estimated to be $38,045,000.00. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 21st day of November, 2017. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Ordinance No. 2017-091 2 ORDINANCE NO. 2017-079 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS;APPROPRIATING$12,000,000 IN THE CVB FUND AND TRANSFERING FUNDS TO THE 177 CAPITAL PROJECTS GENERAL FACILITY FUND; APPROPRIATING $10,000,000 IN THE ECONOMIC DEVELOMENT CAPITAL FUND AND TRANSFERING FUNDS TO THE 177 CAPITAL PROJECTS GENERAL FACILITY FUND; APPROPRAITING$77,045,000 IN THE 177 CAPITAL PROJECTS GENERAL FACILITY FUND FOR THE GRAPEVINE MAIN STATION DESIGN AND CONSTRUCTION; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Grapevine desires to design and construct the Grapevine Main Station; and WHEREAS, funding of$12,000,000 is available in the CVB Fund undesignated fund balance; and WHEREAS, funding of $10,000,000 is available in the Economic Development Capital Fund undesignated fund balance; and WHEREAS, funding of$7,000,000 was appropriated in the FY17 Adopted Budget for the purpose of funding the Grapevine Main Station; and WHEREAS, TEXRaiI has committed to contributing $20,000,000 to the project; and WHEREAS, the City intends to issue $33,045,000 in obligations to provide project financing; and WHEREAS, constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this ordinance is in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City Council hereby appropriates $12,000,000 in the CVB Fund and transfers the amount from the CVB Fund to the Capital Projects General Facility Fund. Section 3. That the City Council hereby appropriates $10,000,000 in the Economic Development Capital Fund and transfers the amount from the Economic Development Capital Fund to the Capital Projects General Facility Fund. Section 4. That the City Council hereby appropriates $77,045,000 in the 177 Capital Projects General Facility Fund. Section 5. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection,word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 6. That the fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an emergency for the immediate preservation of the public business, property, health, safety, and general welfare which requires that this ordinance shall take effect immediately from and after its passage and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 21st day of November 2017. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Ordinance No. 2017-079 2