HomeMy WebLinkAboutResolution 4558-12-2015 Resolution
NO. 4558-12-2015
STATEMENT EXPRESSING OFFICIAL INTENT TO
REIMBURSE EXPENDITURES WITH PROCEEDS OF
FUTURE DEBT FOR THE NORTH BEACH STREET FROM
FOSSIL CREEK BOULEVARD TO NE LOOP 820 PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the North Beach Street from Fossil Creek
Boulevard to NE Loop 820 project as shown on the attached map (the "Project") prior to
the issuance of obligations by the City in connection with the financing of the Project from
available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and, as
such, chooses to declare its intention, in accordance with the provisions of
Section 1.150-2 of the Treasury Regulations, to reimburse itself for such
payments at such time as it issues obligations to finance the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $250,000.00 for the purpose of paying the aggregate
costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the date
the expenditures are paid or (2) the date on which the property, with respect to
which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any expenditure
which is to be reimbursed is paid. txq
Adopted this 15th day c� December, 2015. *V ,0�1_yc°°°°° lt
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Copyright 2015 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. CITY PROJECT# 02238
This product is for informational purposes and may not have been prepared for or be suitable for legal,engineering,or surveying
purposes. it does not represent an on-the-ground survey and represents only the approximate relative location of property boundaries.
The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12115/2015 - Ordinance No. 22016-12-2015 & Resolution
No. 4558-12-2015
DATE: Tuesday, December 15, 2015 REFERENCE NO.: C-27574
LOG NAME: 20N BEACH CONSTRUCTION-02238
SUBJECT:
Authorize Execution of a Contract with JLB Contracting, LLC, in the Amount of$5,846,846.00 for the
Construction of North Beach Street from Fossil Creek Boulevard to NE Loop 820 and Provide for
Additional Project Management, Inspections, Testing and Survey Costs and Contingencies in the
Amount of$1,053,154.00 for a Total Project Construction Phase Cost of$6,900,000.00, Adopt
Reimbursement Resolution and Adopt Appropriation Ordinance (2014 BOND PROGRAM) (COUNCIL
DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a contract with JLB Contracting, LLC, in the amount of$5,846,846.00
for the construction of North Beach Street from Fossil Creek Boulevard to NE Loop 820, CPN 02238;
2. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds
of future debt for the construction of the North Beach Street from Fossil Creek Boulevard to NE Loop
820 Project; and
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in
the Water/Sewer Direct Purchase Note Fund in the amount of$183,551.00.
DISCUSSION:
This project provides for the reconstruction of North Beach Street as a six-lane divided arterial street as
provided for in the 2014 Bond Program. Existing 6-inch and 12-inch water mains and a 15-inch sanitary
sewer main will also be replaced as a part of this project. The project was advertised on July 16, 2015
and July 23, 2015 in the Fort Worth Star-Telegram requesting competitive sealed proposals. Two
proposals were received on August 20, 2015. The proposals were evaluated based on a pre-established
criteria provided in the solicitation. JLB Contracting, LLC, submitted the highest ranking proposal.
_ - F Total Points
Bid Amount Calendar Price Time MBE
Contractor Days I (0-75) I (0-15) (0-10) Total
JLB Contracting, LLC $5,846,845.93 465 75.0 15.0 6.0 96.0 _
(Jackson Construction, Inc. $6,421,347.50 540 10.0 0.0 _6.0 16.0
The budget for the reconstruction of North Beach Street (Fossil Creek Boulevard to NE Loop 820) consists
Logname: 20N BEACH CONSTRUCTION-02238 Page 1 of 4
of the following:
PROJECT BUDGET _AMOUNT
Design Contract Budget $1,200,000.00
City Project Management, Design $ 50,000.00
Coordination _
Total Design $1,250,000.00
�cquisition ght-of-Way and Easement
",000.00
Coordination
Utility Relocations and Tree Removal [$ 50,000.00 _
_
Total ROW, Utilities, Tree $ 250,000.00
Removal
Construction Costs (as Bid) _$5,846,846.00
City Project Management,
Inspections, Quality $ 738,549.78
Control/Assurance and Coordination _
Construction Project Contingencies_ 498,154.00
Total Construction $7,083,549.78
TOTAL PROJECT BUDGET $8,583,549.78
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer
Fund. Available cash within the Water and Sewer portfolio and the City's portfolio along with the
appropriation authority authorized under the Direct Purchase Note Program will be used to provide interim
financing for this project until debt is issued. To the extent resources other than the Water and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the Direct Purchase Note Program or earlier issuance of Water and Sewer revenue bonds than is
currently planned. Once debt associated with this project is sold, bond proceeds will be used to reimburse
the Water and Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement
Resolution.
In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. The Financial Management Services Department is currently working with all departments to
ensure that multi-year capital improvements plans are in place. Newly developed and already existing
plans, such as the Water Department's current multi-year capital improvement plan, will be presented to
City Council for review and adoption. If the City Council-adopted plan does not include issuance of debt
for this specific project, the project will be funded other financing sources. If the City Council-adopted plan
calls for debt issuance, that debt must be issued within approximately three years to provide
reimbursement for these expenses. If that does not occur, the costs will no longer be reimbursable by
issuing tax-exempt debt and the funding source will have to be made whole through other budgetary
methods. Adoption of this resolution does not obligate the City to sell bonds, but preserves the ability to
Logname: 20N BEACH CONSTRUCTION-02238 Page 2 of 4
reimburse the City from tax-exempt bond proceeds. Funding for the North Beach Street project is as
depicted in the following tables.
This capital project will result in the demand for additional operation and maintenance resources within
City departments due to the construction of new public infrastructure assets. The estimated average
annual cost for these additional operation and maintenance resources is summarized in the following
table:
ITEMS ESTIMATED DEPARTMENT/DIVISION
INSTALLED WITH ANNUAL
THIS PROJECT OPERATING
IMPACT
16 Streetlights $33,200.00 PW/Traffic Management
($200.00/streetlight)
3 Traffic Signals
($10,000.00/signal)
8 Inlets ($60.00 per $4 08 00 PW/Storm Water
Inlet)
_
4.1 Lane Miles of $15,744.00 PW/Streets Division
11 Inch Concrete
Pavement
($3,840.00 per
Lane Mile)
This construction contract will be funded through the 2014 Bond Program. Available resources within the
General Fund will be used to provide interim financing for these expenses until debt is issued. Once debt
associated with this project is sold, bond proceeds will reimburse the General Fund in accordance with the
statement expressing official Intent to Reimburse that was adopted as part of the ordinance canvassing
the bond election (Ordinance No. 21241-05-2014).
Funding sources for this project are as follows:
Project Name 2014 Bond Water Direct Purchase Total Project
Program Note Funding
North Beach
Street $8,400,000.00 $183,549.78 $8,583,549.78
Construction is anticipated to commence in January 2016 and be substantially completed by May 2017.
Contract time for substantial completion is 465 calendar days.
MIWBE OFFICE —JLB Contracting, LLC, is in compliance with the City's BDE Ordinance by committing to
22 percent MBE participation on this project. The City's MBE goal on this project is 16 percent.
The Project is located in COUNCIL DISTRICT 4.
Logname: 20N BEACH CONSTRUCTION-02238 Page 3 of 4
The Financial Management Services Director certifies that funds are included in the approved budget
to date of the 2014 Bond Program and funds are available in the General Fund to pay expenses
which will be incurred on this contract until reimbursement can occur from the issuance of public
securities and certifies that funds are available as directed by M&C G-18375 in the 2017 Water and
Sewer Revenue Bonds Capital Project Fund for transfer from unspecified funding to the North Beach
Street Project. After transfer of$183,549.78 to this project, the amount of$92,112,722.40 in
available revenue will remain in the 2017 Water and Sewer Revenue Bonds.
[Funding ppropriations Pending Remaining
ource to Date Expenditures/ Balance
Encumbrances
2014 e
Bond $8,857,000.00 $6,974,158.13 1$1,882,841.87
Program
Water _ ----- - —
Direct
Purchase$ 0.00 $ 0.00 $ 183,549.78
Note
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accouni Project ProgramActivity Budget Reference # Amount
ID ID Year Chartfield 2
560051 0600430 4956010 CO2238 C00170 2016 $95,336.00
560051 0700430 4956010 CO2238 C00170 2016 $88,215.00
FROM
Fund Department Accouni Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
34014 0200431 5740010 CO2238 CO2380 2016 14010199 $5,663,296.22
—156005 0700430 5740010 CO2238 C00170 2016 $88,214.26
560051 0600430 1 57400101 2238 1 1 C00170 2016 $95,335.52
CERTIFICATIONS:
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head: Douglas Wiersig (6157)
Additional Information Contact: Mike Weiss (8485)
Logname: 20N BEACH CONSTRUCTION-02238 Page 4 of 4