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Home My WebLink AboutResolution 4600-02-2016 A Resolution NO. 4600-02-2016 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WATER AND SANITARY SEWER MAIN RELOCATIONS FOR THE TRINITY RIVER VISION - CENTRAL CITY 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 Water and Sanitary Sewer Main Relocations for the Trinity River Vision - Central City Project and the Trinity Uptown Service Area - Phase 4, 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 $1,750,000.00 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. Q WORT 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. Adopted this 16th day of Fcbruary, 2016. ATTEST: °°°°00000°o°°o �o °t �� O 0, QV°o °ZO BY: 0� °o 00* Jy °0000°o°° ,cr Mary J. ser, Ci Secretary �4zt'q X. ORT WORT 3Atl N39't LLJ uj LU LLJ LU x 1 • E<4' ; �, ,� '-�� -yam ti�. __� � . oe r t 1 4 3 7 J CO CO ! , ,:,.✓.,..tin ?� �+ � - Y6, ,'�' p®il 1 9�.� . �NUj301S213A121 3AtltlINtlAIAS �. •``e {-'� '—i.'�'t i��.� t krt ;��+ r V1, \ � �•1r,, ' IS GG"Ill City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 211612016 - Ordinance No. 22096-02-2016, 22097-02-2016' & Resolution No. 4600-02-2016 DATE: Tuesday, February 16, 2016 REFERENCE NO.: C-27628 LOG NAME: 60WSTRAVA4-KHA SUBJECT: Authorize Execution of Amendment No. 4 to City Secretary Contract No. 37013 with Kimley-Horn and Associates, Inc., in the Amount of$1,596,900.00 for Water and Sanitary Sewer Main Relocations for the Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4, Provide for Project Costs for a Project Total in the Amount of$9,342,813.00 and Adopt Appropriaton Ordinances and Reimbursement Resolution (TRV- RELATED EXPENSES ELIGIBLE FOR REIMBURSEMENT FROM THE TRWD) (COUNCIL DISTRICTS 2 and 9) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached Appropriation Ordinances increasing estimated receipts and appropriations in the Water Capital Projects Fund in the amount of$283,796.00 and the Sewer Capital Projects Fund in the amount of$147,535.00; 2. Authorize the execution of Amendment No. 4 to City Secretary Contract No. 37013 with Kimley-Horn and Associates, Inc. in the amount of$1,596,900.00 for Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4; and 3. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4. DISCUSSION: On April 15, 2008, (Mayor and Council Communication (M&C) C-22765) the City Council authorized an Engineering Agreement in the amount of$2,533,113.00 for water and sanitary sewer main relocations for the Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4. The Engineering Agreement was subsequently revised by Amendment No. 1 (M&C C-25303, November 15, 2011) in the amount of$1,580,000.00 to provide for Phase 2A, Amendment No. 2 (M&C C-26276, May 21, 2013) in the amount of$1,896,000.00 to provide for Phase 2B and Amendment No. 3 (M&C C- 26838, June 10, 2014) in the amount of$1,736,800.00 to provide for Phase 3. This Amendment No. 4 allows Kimley-Horn and Associates, Inc., to commence with the necessary design work for Phase 4. The proposed scope of services for Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4 includes the following: Logname: 60WSTRAVA4-KHA Page 1 of 4 • Design for the relocation of conflicting water and/or sanitary sewer mains for Gateway/Oxbow Valley Storage Site E Channel Segments A, B, C and D; • Construction phase services; • Permit acquisition; • Coordination meetings with TRV Management Team, TRV partners and Staff; • Subsurface utility engineering; • Geotechnical investigations; • Design Program Management; • Holly Water Systems Analysis; • Ham Branch Sanitary Sewer Study; and • Panther Island Sanitary Sewer Master Plan Kimley-Horn and Associates, Inc., proposes to provide the necessary additional services for a lump sum fee of$1,596,900.00. Staff considers the fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $431,331.00 (water: $283,796.00 and sewer: $147,535.00) is required for program management, real property acquisitions, material testing and inspection. This project will have no impact on the Water Department's operating budget. Upon approval of this amendment, the total of these water, sanitary sewer and major storm drain appropriations for the Trinity River Vision - Central City Project and the Trinity Uptown Service Area Phase 4 Project will be $39,885,975.00. 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 (DPN) 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 DPN 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. The City Council adopted the Water Department's Fiscal Year 2016 - 2020 Five-Year Capital Improvement Plan on February 2, 2016 (M&C G-18662). This City Council-adopted plan includes this specific project, with funding identified through the DPN program to be reimbursed with future revenue bonds. 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. This 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 reimburse the City from tax- exempt bond proceeds. Logname: 60WSTRAVA4-KHA Page 2 of 4 Appropriations for the Trinity River Vision - Central City and the Trinity Uptown Service Area Phase 4 Project will Conoiat of the following: Future rDescription Appropriations Appropriations 1 F Appropriation Project Management, Real Property Acquisitions, Inspection,Testing and Contingencies $3,674,740.00 $431,331.00 $ 344,175.00 $ 4,450,246.00 JProject Total $39,454,644.00 $431,331.00 $5,585,709.00 $45,471,684.00 ° Numbers rounded for presentation purposes. Appropriations for the Trinity River Vision - Central City and the Trinity Uptown Service Area Phase 4 Project will consist of the following by fund: [S—Pecially Funded Projects Fund 39007 $10,715,680.00 Water and—Sewer Bond 201M—M6-007 ---[—$6,167,422.00 ater Capital Fund 59601 $14,404,709.00 ISewer Capital Fund-Legacy—59607 $7,328,473.00 F Project Total $45,471,684.00 ° Numbers rounded for presentation purposes. Of the $1,596,900.00 cost of this amendment, the amount of$1,368,784.00 is necessitated by the Trinity River Vision /TRV\ Project while tha remaining amount of$228.110.00 is non-TRVre|ated. Having met its $2O.0 million commitment to the TRV Project, theQtyxviUberuimburaadtheomountof$1.388.784.0Uby the Tarrant Regional Water District (TRVVO) upon contract completion, in accordance with the provisions of the executed Interlocal Agreement between the City and the TRWD (City Secretary Contract No. 43425). Staff will record a receivable every month for reimbursable expenses and the TRV Program Manager in the Planning and Development Department will be responsible for collecting the full reimbursement from TRVV[) upon project oomp|eUun. Available resources in the 2O17 Water and Sewer Revenue Bonds Capital Project Fundvxi|} beuaedtoprovideinterimfinancingunti/ roimbunaemontocouna. Once reimbursement is received, the revenue will be receipted to the 2017 Water and Sewer Revenue Capital Project Fund. K8/VVBE OFFICE: Kinn|ey - Horn and Associates, Inc., in in compliance with the City's M/VVBE {}ndinenua by committing to 25 percent M/WBE participation on this Amendment No. 4. The City's goal onthis amendment ie35percent. This project io /ocatadinCOUNC|LO|GTR|CT82and9. K8opoco82UandO2V. CERTIFICATION:FISCAL INFORMATION / The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the Water Capital Projects Fundandthe Sewer{}opito| Projects Fund. After the appropriations for this project are comp|atad, the balance in the Water Capital Projects Fundvvi|| ba $11.510.5O8.00andthaba|encainthe8evverCapito/ Projects Fund will be $14.S21.522.OD. In addition, funds are available as directed by M&C G-18375 in the 2017 Water [ogouuze: 60WSTR4VA4-KHA Page 3of4 and Sewer Revenue Bonds Capital Project Fund for funding the Trinity River Vision-Central City Project and the Trinity Uptown Service Area Phase 4 Project to pay expenses which will be incurred on this contract until reimbursement is received from the TRWD, as depicted in the following table: It-Xi-s-tin-g- dditional Fund Appropriations rA4ppropriations Future Appropriations Project Total* F ecially Funded Projects nd 39007 __ $ 5,129,971.00 I 0.00 $5,585,709.00 ,$10,715,680.00 6005 Sewer DPN Fund F$ 6,855,400.00 �$ 0.00 ($ O.00i ,855,400.00 Water&Sewer Bond 2015A 56007 $ 663 167 422.00 $ 0.00 1$ 0.00 $ 6,167,422.00 (Water Capital Fund 59601 $14,120,912.00 �, 283,796.00 �$ 0.00 a $14,404,708.00 Sewer Legacy 5 Capital Fund- Fs7,180,938.00 j$147,535.00 $ 0.00 f$ 7,328,473.00 Project Total v 39,454,643.00 $431,331.00 1$5,585,709.00 $45,471,683.00 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department Accouni Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) 59601 0600430 4905420 C00969 2016 $283,796.00 59607 0700430 4905420 C00969 2016 $147,535.00 59601 0600430 5110101 C00969 C01780 2016 $283,769.00.00 59607 0700430 5110101 C00969 C01780 2016 $147,535 FROM Fund Department Accouni Project Program Activity Budget Reference # Amount ID ID Year Chartfield 2 59601 0600430 5110101 C00969 C01780 2016 $283,769.00 59607 0700430 5110101 C00969 C01780 2016 $147,535.00 56005 0600430 5330500 C00969 C01733 2016 $291,368.00 56005 0700430 5330500 C00969 C01733 2016 $1,3051532.00 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (6122) Originating Department Head: John Carman (8246) Additional Information Contact: Liam Conlon (6824) Logname: 60WSTRAVA4-KHA Page 4 of 4