The URL can be used to link to this page

Home My WebLink AboutCity Council-Agenda Packets-8/10/2010r.V~~, o, City of Colleyville 100 Main Street ~~; `~_ ,~~~ ~ Colleyville, Texas 76034 ~'"`S t~~ Agenda 817. 503.1000 33,.•,,,., vwvw.colleyville.com City Council Worksession Tuesday, August 10, 2010 5:30 PM Executive Conference Room, Third Floor 1. CALL TO ORDER 2. PRESENTATION AND DISCUSSION 2a Discussion of SH26/Colleyville Boulevard reconstruction project 3. ADJOURNMENT I hereby certify the above agenda was posted on the bulletin boards at City Hall on Friday, August 6, 2010, by 5:0 Cynthia Singleton, TRMC, CMC City Secretary Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise the City Secretary at least 48 hours in advance at 817.503.1133, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 Printed on 8/6/2010 SH26 Pass-Through Financing Option City Council Worksession August 10, 2010 Current Status of SH26 Reconstruction • Northern segment from Brumlow Avenue/Pool Road through the Hall-Johnson intersection funded ($21 million: $12 million NCTCOG, $4 million TxDOT, $5.1 million Colleyville TIF District) • Design 90% complete in 2005; ROW acquisition in progress; utility relocation to follow • TxDOT contract let date March 2012; however northern segment not included in 2011-2014 regional Transportation Improvement Plan (TIP) as of June 2010 • Segment south of Hall-Johnson not currently funded ~.__..__._ _w.~_ .~ ll~'c•c~t~titl~ttc•tic~~~ .~-t~it~i~ lc~~~ C.'c~ll~~~~t~illt~ 1'~l~~cl;~' .~;I-I `~'(} ~~.-- Options for SH26 Reconstruction • Pass-Through Financing • TIF restructuring to complete reconstruction of a portion of SH26 south of Hall-Johnson (no state participation) • TIF restructuring, possibly to include other TIF partners • Allow TxDOT/RTC to complete reconstruction as funding is available in the future Why Colleyville Considered Pass- Through Financing • State highway funds are decreasing, without any new revenue sources earmarked • The remaining unfunded segment of SH26 will likely not be reconstructed without additional local or regional funds or change in federal and state transportation funding mechanisms • Other regional projects are a higher priority for federal and state funds • SH26 is the primary economic corridor in Colleyville; without reconstruction existing and future economic development may be impacted Other Considerations of Pass-Through Financing for SH26 • Would be largest single capital project in Colleyville's history • Colleyville would fund a substantial portion of total project costs of a state highway • Debt must be issued to finance entire remaining project; assumes new debt obligation in current climate • If pass-through reimbursement is not authorized by the state at any fiscal biennium, Colleyville must fund entire debt obligation • Northern segment not included in 2011-2014 regional Transportation Improvement Plan (TIP) as of June 2010 • Revised project plan needed and TIF extension for City increment • Citizen aversion to risk versus opportunity Pass-Through Projects Statewide • Fort Bend County • Bexar County • Sulphur River RMA • Brazoria County • City of Bulverde • City of Killeen • City of Pearland • City of Austin • Hood County • City of Hudson Oaks • Bowie County • City of Midlothian • City of Victoria/Victoria County/Victoria MPO • City of Weatherford • Montgomery County Recent Pass-Through Financing Project Examples Entity Project Total Reimbursement Minimum Maximum Reimbursement Rate (per vehicle) Reimbursement Reimbursement Amount per Year Amount per Year Brazoria SH36 $29,406,000 $0.055 $1,470,300 $2,940,600 County City of IH20 $7,954,000 $0.25 $397,700 $795,400 Hudson Oaks Hood US 377 $31,000,000 $0.055 $1,550,000 $3,100,000 County City of US 190 $20,150,000 $0.03 $1,007,500 $2,015,000 Killeen TxDOT Pass-Through Financing- What We Know To Date • SH26 reconstruction from Hall-Johnson to Cheek- Sparger selected by Texas Transportation Commission for funding June 24, 2010 ($19.1 million) • Through staff discussions with TxDOT, TxDOT has agreed to finalize ROW acquisition, design finalization, non-municipal utility relocation • TxDOT proposes to reduce $19.1 million reimbursement by project contingency and 20 percent for TxDOT investment in project to date • As of August 6, 2010: Final reimbursement amount to be $14.4 million, TxDOT's 20 percent reduction plus elimination of the original contingency amount TxDOT Pass-Through Financing- What We Know To Date • Major points of contract must be agreed to by Colleyville and TxDOT by August 17 • Colleyville would fund construction up front through TIF debt issuance and would act as contract administrator, managing all aspects of project • Contractual agreement with TxDOT would dictate how project expenses would be reimbursed annually to Colleyville over 10-20 years TxDOT Pass-Through Financing- Mechanics for Colleyville • Colleyville may issue $18,250,000 in TIF debt • 20 year Certificates of Obligation (COs) with 10 year call provision and limited principal payments for first three years • Debt service on bonds issued for construction costs could be structured to align with the schedule for TxDOT's annual minimum reimbursement plus City's TIF increment (est. $800,775) • As of August 6, annual TxDOT reimbursement would be based on a per vehicle rate of $0.045, including guaranteed minimums and not to exceed maximums (est. $720,000 - $1.4 million annually) TxDOT Pass-Through Financing- Mechanics for Colleyville • TxDOT annual reimbursement would begin after construction is complete; estimated to be 2016 under Pass-Through timeline • Remaining portion of construction costs could be funded by amending the TIF project plan and potentially extending the 2019 ending date of TIF District by 13 years • All or a portion of $3 million in unallocated TIF funds from Village agreement could be utilized to reduce debt issuance - For purposes of illustration, financing model presented here includes $1 million of these unallocated funds Estimated Project Costs Hall-Johnson to Cheek-Sparger: • $28,025,000-includes design completion, remaining ROW acquisition, utility relocation - TxDOT to finalize plans, specifications and engineering (PSEs) _ $685,000 - TxDOT to complete remaining ROW acquisition = $3.38 million - $1.246 million in contingency removed from cost estimate; 10 percent bid overrun contemplated in contract - TxDOT to complete non-municipal utility relocation - Colleyville to complete estimated $4 million water and sewer relocation Project Funding TxDOT reimburses 80 percent of construction costs: • $14.4 million • Reimbursed over 10-20 years based on $0.045 per vehicle mile formula • $720,000 annual minimum reimbursement; $1.4 annual maximum reimbursement • Debt service could be structured accordingly Project Funding Colleyville funds all costs associated with construction and project management up front • TIF debt issuance of $18,250,000 • 20 year Certificates of Obligation (COs) with 10 year call provision and limited principal payments for first three years • $3 million in available TIF funds • Planned $4 million (est.) Colleyville water and sewer relocation to be funded by future utility bond issue Project Cost Detail Original project cost estimate Future utility bond issue* Remaining ROW acquisitigon _(TxDOT funded) .. ;~ ,~ t... ., ~ Finalization of P~Es`~(TxC~OT funded) Project contingency Revised project cost estimate Less use of TI F unallocated funds Net amount to finance through bond issuance Debt issuance costs $28,025,000 ($4,000,000) ($3,380,000) ($685,000) ($1,246,000) $18,714,000 ($1,000,000) $17,714,000 $536,000 Potential total TIF debt issue $18,250,000 Reimbursement from TxDOT (over 10-20 years) ($14,400,000) Interest costs (over 20 year period) $12,008,250 Final TIF debt funded project expense $15,858,250 Net Project Cost to City Detail Utility Fund Future utility bond issue* Utility bond issuance and interest costs* TIF Unallocated funds ($3M available) Difference of debt issuance over reimbursement (over 20 year period) Total potential costs to the city $4, 000, 000 $1, 785, 875 $1, 000, 000 $15, 858, 250 $22, 644,125 *Planned Utility Relocation • Project estimate $4,000,000 • Entire length of SH26 • Estimated annual debt payment: $386,525 • Water rate increase: $0.15 per 1,000 gallons • Sewer rate increase: $0.10 per 1,000 gallons • Average customer impact: $3.65/mo. • Debt issuance and interest costs over 15 years: $1,785,875 TIF Extension/Project Plan Expansion • Estimates based on less than current TIF value of $225 million • Assumes a $18,250,000 issuance for 20 years • Extends TIF for 13 years beyond current collapse date of 2019 • Project plan amendment necessary to include project and to utilize up to $3 million unallocated TIF funds from Village agreement • Any increase in property values will increase City's TIF increment above estimated annual revenue of $800,775 Potential TIF Debt Service Schedule TOTAL DEBT ISSUANCE (INCLUDES 3% COST OF ISSUANCE) $18,250,000 FISCAL YEAR LESS COLLEYVILLE INTEREST TIF INCREMENT RATE REVENUE 5.0% $800,775 ANNUAL DEBT LESS TIF SERVICE INCREMENT TOTAL PASS- THROUGH NEEDED PROJECTED PASS THROUGH - 4.5CENTS PER VEHICLE MILE TXDOT TRAFFIC COUNTS POSITIVE CASH FLOW (REIMBURSEMENT VS. AMOUNT NEEDED) 2013 $912,500 $800,775 $111,725 $0 -$111,725 2014 $912,500 $800,775 $111,725 $0 -$111,725 2015 $912,500 $800,775 $111,725 $0 -$111,725 2016 $1,617,500 $800,775 $816,725 $1,109,673 $292,948 2017 $1,617,250 $800,775 $816,475 $1,131,354 $314,879 2018 $1,620,250 $800,775 $819,475 $1,153,035 $333,560 2019 $1,616,250 $800,775 $815,475 $1,174,716 $359,241 2020 $1,620,500 $800,775 $819,725 $1,196,397 $376,672 2021 $1,617,500 $800,775 $816,725 $1,218,078 $401,353 2022 $1,617,500 $800,775 $816,725 $1,239,759 $423,034 2023 $1,620,250 $800,775 $819,475 $1,261,440 $441,965 2024 $1,620,500 $800,775 $819,725 $1,283,121 $463,396 2025 $1,618,250 $800,775 $817,475 $1,304,802 $487,327 2026 $1,618,500 $800,775 $817,725 $1,326,877 $509,152 2027 $1,621,000 $800,775 $820,225 $1,000,747 $180,522 2028 $1,620,500 $800,775 $819,725 -$819,725 2029 $1,617,000 $800,775 $816,225 -$816,225 2030 $1,620,500 $800,775 $819,725 -$819,725 2031 $1,620,500 $800,775 $819,725 -$819,725 2032 $1,617,000 $800,775 $816,225 -$816,225 TOTAL $30,258,250 $16,015,500 $14,242,750 $14,400,000 $157,250 W (3 .; C? f f~ ~~ ~'~. .?,'7 p:~:rt tzn 0 z ~: u: l 4' -i 1 :~ 1 ]~~~1,.~ ~~~~ f, F{N!. -.a;,,%t f-~.a ~,~ v ~~`~ fF=l7f`)IdD 1.1) j li " F^t FA.SfiI`.T Filth RIj SRAMSFG'~Rt) Fit.} [t 4J (~ '4 Ca ~f J: w ~ .±~ ~'` f ~<, J .i i .,~ y 1 Advantages • Begins addressing SH26/Colleyville Blvd. issue, which citizens indicate is a high priority based on recent citizen survey • This segment of Colleyville Blvd. encompasses the city's "Central Business District" • Redesign of current project could consider future use of adjacent properties for maximization of economic development • TIF could be restructured to fund upfront costs • Other TIF partners could be invited to participate, thus sharing the costs among other taxing entities Disadvantages • Debt must be issued to finance construction and project management costs; assumes debt obligation in current climate • Colleyville funds a substantial portion of total reconstruction project • Colleyville takes on responsibility for all project management and construction • Cost increases during construction would be Colleyville's responsibility • Each project milestone requires FHWA and TxDOT approval and authorization to proceed • Reimbursement commitment not guaranteed beyond current fiscal biennium • Construction on northern segment undetermined; could impact traffic patterns, and therefore reimbursement • Economic return on investment may not materialize Cost Summaries Future utility bond issue, $4,000,000 19°f ~. -" Utility bond issuance and ~o . interest costs, $1,785,875 Summary of ~- Project Costs by City of Colleyville 21% Difference of project costs versus reimbursements $4, 314,000 Summary of Project Costs by-- TxDOT Remaining ROW Finalization of acquisition, PSEs , $685,000 $3,380,000 ~ - 4% ~~~%° ~~~~ TxDOT Construction ,-- Reimbursement, " . _,__, ,~ $14,400,000 Cost Summaries Continued Total Project Costs - TxDOT vs. Colleyville ~. Total TxDOT Cysts, $~.8,465t000 C Other considerations: Refinement of design? l i` ,f ~~ ~~ ~' 4,"' ;~4' ~,` f ' y~..• ,`~ ,, ~__ .~ ~ ~ ,, ~~~~ - r~, E ~{ ;' `I* ~~ 1 ~~ a ~.~ Y1' 1 + R it ~M l~~l R r ,!r ~p ~,~. ~ `~ . ri ' -r ~ .~~ r-., ii ~. ;: ~ L ..:~' ~ ~ tat f r~ ~ r: 11 f .f d 1 d:~p~ " ,Ff p't ~ a~~ i~ ~ s ~~ ' ~`x ~ ~ . ~ . y ~ ~ »~ ._~~~ ~ ~~. f . ^`' '~ 4 ^r "*~'P. w~ r*, ~~'' .W... ~. ~i ~{{,~7 ou _~ Padre Boulevard Before ITxDOT Park Rd. 100 ~ f . ~ ~l ~ j ###~ ~ ~ ! '~ ; t 1 ~ a,, ~~ .: --- ~~ ~. ~ • z ~ 1 ~ ~' 7y. M++ 1 e F '-~ ` ~~'~ ~~ ,~ ~,ar..•~ ~~{. ". + , -~.„ ~~~,.yr ,.. Ada, .. fe rwr .r, .,, ~ - ; 4 ~,~ _ ~_~ y ~~ y,. .. _ 1 ~r.. ,. ~,{ ti ~ i r ~ ~- i. ti ~~ .. ~. ~~. ~. a f. $F ~ Y Padre Boulevard After (TxDOT Park Rd. 100) ir+'"""~'~+ ~~..~ `~ M ~' ~• ~.. '~..+.....T~4~T b'~ _...... __y. ~=. +` ... 3' ~ ~. ` ~ ; " t`~, ~ ~~: , . ~, ~~ ` ~ 3 ~ ~ 1~ 1,....:,... I ~ ~ "3~) ~,f 1 ~~ ! ~,,,,~ _° i. ~ ~~~ ... t '. ~ e ~ h`_ ay)r r ~ ~,.t i ~~ ~.,{ . f' ~ ~ ]. a ., ._._ ~,.:-- ,,I ~-..' .:*€5< ~. ..~,~ 'pF~ Proposed Street Cross-Section on Park Road 100 Colleyville Boulevard TxDOT Plans C: _ r ~': ~ I -~ ~ ._.._..... I f _ n ~ r , ~.. ~ ' ~ r f Colleyville Boulevard Planning Level Cross-Sections P i~ ~i C. ,~ -,-_ ~~ -; ,: -~-~ :., ;. ~'', I~~tul-i L,;r~r E~t~t:I=a~r~1 ~~~~itF.~:~r~-l ~I Parkin~- .. ' ~` ° ,,, .:. ~:~~ ~w.~ ~ 1 ~ ~~ t i .r' 1 ~~' e' . ' 1 ti' ~~' :` 1 ' ' 11 ' ' r~` .~~ 11 ' 11 ' e' . 1 ~~' ~#` rs' 1 C~' ' ;` ~7 - ~;1~1.i Lari~~G~~~sl_u~i~.I ~~,,.I~ ;'~n~:l_~_1 F'~;I.. r,~_~ ,:"'.. -. . ~i ; .~ ~ .. T s ~.. i ,r 1'. 1:' I;j - r ~:. .1I' F;' .f' '11' 11' S' l~;i' ~r I:°:' . ` I'~ ' R finement O tion 3 Col le vi I le Blvd. e Y p ~' i " q ~ ~ _r~ ,a~"reVS~'~?sT~s ,y~ i~ 8 ~ ~,~t~ ,~ s~2 a {} ~"r i ~~, { ~ ` '!t ~ ~ s .~ ; .y~ r _ n ~. ;~..~ ,r ~ Tom- ~, 4 ~ ~ ~~ Y V t ~ _ ~ .i ~ ~. ~ ~ W ~ ~" ~ ~ ~~~ •, l i~ .. Y ~ i r .s ~ + 3rd ,' Y o =~~ - .,. ^~ _ a . , (,.. M • ~ 4 f Jff f M' • BJ it '' #, T ~~ ~ W ~~~. ~~ ,~; f .f-" T .~ ~" ~ ^~ K r, ~ ~~'` -~ ~~ ~~~'° .,er". _ ~ M ~,lf .'~ ~}~ ~' ,i _ ~; ~`• ! Y' , f P~~' ._v.' ~ , 't , ~r ,+ Economic Impact Estimates Incremental Tax Revenue Projections for Existing SH26 Corridor at Build out Projected Additional Annual Ad Projected Additional Annual Valorem Tax Revenue by 2026 Sales Tax Revenue by 2026 Northern Section of SH 26 (north of Hall-Johnson) $773,102.00 Southern Section of SH 26 $900,000 (south of Hall-Johnson) $393,708.52 TOTAL $1,166,810.52 $900,000 Total Estimated Additional Annual Tax Revenue by Build-Out $2,066,810.52 • Multipliers based on development patterns from 2000 to 2010 Based on build out of all remaining vacant properties, all properties containing buildings over 20 years old by 2026. • Increment represents the projected increase in tax revenues over the base year of 2010 at build-out. Incremental Tax Revenue Projections for Reconstructed SH26 Corridor at Build out Projected Additional Annual Ad Projected Additional Annual Valorem Tax Revenue by 2026 Sales Tax Revenue by 2026 Northern Section of SH 26 (north of Hall-Johnson) $953,591.87 Southern Section of SH 26 $1,500,000 (south of Hall-Johnson) $691,692.81 TOTAL $1,645,284.68 $1,500,000 Total Estimated Additional Annual Tax Revenue by Build-Out $3,145,284.68 • Scenario assumes 1/3 of target properties will develop with maximum utilization, including additional retail space • Based on build out of all remaining vacant properties, all properties containing buildings over 20 years old by 2026. • Increment represents the projected increase in tax revenues over the base year of 2010 at build-out. Incremental Tax Revenue Projections for Redesigned and Reconstructed SH26 Corridor at Build out Projected Additional Annual Ad Projected Additional Annual Valorem Tax Revenue by 2026 Sales Tax Revenue by 2026 Northern Section of SH 26 (north of Hall-Johnson) $1,689,062.00 Southern Section of SH 26 $2,592,000.00 (south of Hall-Johnson) $1,237,084.00 TOTAL $2,926,146.00 $2,592,000.00 Total Estimated Additional Annual Tax Revenue by Build-Out $5,518,146.00 • Based on build out of all remaining vacant properties, all properties containing buildings over 20 years old by 2026 assuming all new buildings are built to mixed use principles. • Increment represents the projected increase in tax revenues over the base year of 2010. Next Steps • Determine City agreement to TxDOT Pass-Through Agreement parameters • If affirmed, work toward late October contract execution • Determine if alternative design schematics/cross- sections for SH26 are desired - If affirmed, seek grant or other funding sources • Identify TIF restructuring requirements; invite other TIF partners to join TIF extension/project plan amendment