HomeMy WebLinkAboutResolution 4601-03-2016 A Resolution
NO. 4601-03-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE DEERFIELD
ADDITION WATER MAIN IMPROVEMENTS 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 Deerfield Addition Water Main
Improvements 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 $200,000.00 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. a
Adopted this 1St day of Mar 2016. 101 �000000000*
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MAYOR AND COUNCIL COMMUNICATION MAP
M&C Log Name: 21 PYMD DEERFIELD ADDITION 02534
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CPN 02534 KROGEB oRIVE _ - Fee
Deerfield Addition DETAIL OF PROJECT LOCATION
City Council District 4
City of Fort worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/1/2016 -!Resolution No. 4601-03-2016
DATE: Tuesday, March 01, 2016 REFERENCE NO.: **L-15871
LOG NAME: 21 PMD DEERFIELD ADDITION 02534
SUBJECT:
Authorize Acquisition of One Permanent Water Facility Easement in 0.441 Acres of Land, One Temporary
Construction Easement in 1.32 Acres of Land from Kroger Texas L.P., One Permanent Water Facility
Easement in 0.203 Acres of Land and One Permanent Water and Sanitary Sewer Facilities Easement in
0.533 Acres of Land from All Storage WPK GP, Inc., in the Amount of$129,760.00 and Pay Estimated
Closing Costs Up to $5,000.00 for a Total Cost of$134,760.00 for Deerfield Addition Water Main
Improvements Project No. 02534 and Adopt Reimbursement Resolution (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the acquisition of one permanent water facility easement in 0.441 acres of land, one
temporary construction easement in 1.32 acres of land from Kroger Texas L.P., one permanent water
facility easement in 0.203 acres of land and one permanent water and sanitary sewer facilities easement
in 0.533 acres of land from All Storage WPK GP, Inc., located south of Wall-Price-Keller Road and west of
US Highway 377 in Fort Worth, Texas;
2. Find that the total purchase price in the amount of$129,760.00 is just compensation;
3. Authorize the City Manager or his designee to accept the conveyances, pay just compensation, record
the appropriate instruments and pay estimated closing costs up to $5,000.00; and
4. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for the Deerfield Addition Water Main Improvements Project.
DISCUSSION:
On August 19, 2014, (M&C PZ-3064) the City Council instituted and adopted the annexation of Deerfield
Addition located south of Wall-Price-Keller Road and west of US Highway 377. On May 19, 2015, (M&C
C-27298) the City Council authorized the execution of an Engineering Agreement with Freese and
Nichols, Inc., and provided for additional staff project costs in the amount of$175,066.00. The proposed
project includes the following:
• 3,950 feet of 12-inch water line along Wall Price Keller Road;
• 1,900 feet of 12-inch water line along the west side of the Union Pacific Railroad between Wall-
Price-Keller Road and Kroger Drive;
• Connect the existing 6-inch water line on Prairie Court to the existing 16-inch water line on Ray
White Road; and
• The replacement of the existing gate values and fire hydrant inside Deerfield subdivision to match
current City standards.
Logname: 21PMD DEERFIELD ADDITION 02534 Page 1 of 3
The land rights in the subject properties are needed for installation of proposed 12-inch water main along
Wall-Price-Keller Road and along Union Pacific Railroad between Wall-Price-Keller Road and Kroger
Drive.
An independent appraisal was performed on the properties and the total estimated appraised value was
$124,800.00. Including contingency for land costs, the revised total estimate is $129,760.00. The City will
pay closing costs up to $5,000.00.
Parcel No. ( Property Owner _ ( Legal Description Type of Acquisition FA
Kroger Texas L.P. LL Block 1, Distribution T 1.32
Center _ Easement I
F-1 Block 1, Distribution Permanent Water Facility_ Center Easement
3 All Storage WPK GP, Inc. (John Edmonds Survey, Permanent Water Sewer 0.533
_._.__ I Abstract 457 _ Facility Easement __�
(� 4 �( All Storage WPK GP, Inc. John Edmonds Survey, Permanent Water Facility 0.203
_ I r _Abstract 457 1 Easement
Appropriations for Deerfield Addition Water Main Improvements Project will consist of the following:
F Description Existing Additional Future
Appropriations �OAppropriations Appropriations Project Total*
Engineering _[ $ 144,066.00 _ ( i $0.00 _ (� $ 0.00 (— $ 144,066.00
Construction $1,102,200.00 _ $0.00 $200,000.00 ( $1,302,200.00
Project Management, --�-- _ ----
Real Property
!Acquisitions, $ 231,000.00 $0.00 $ 0.00 $ 231,000.00
Inspection, Testing
and Contingencies_
Project Total (— $1,477,266.00 - $0.00 _ $200,000.00 r $1,677,266.00
*Amounts rounded for presentation.
Appropriations for Deerfield Addition Water Main Improvements Project will consist of the following by
fund:
_ Appropriations*
ater/Sewer DPN Fund 56005_ (— $1,502,200.00 _
ater& Sewer Bond 2015A 56007 ( — $ 175,066.00
(Project Total --' ` ( —^ $1,677,266.00 --
*Amounts rounded for presentation. _
This project will have no impact to the Water Departments operating budget.
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
Logname: 21PMD DEERFIELD ADDITION 02534 Page 2 of 3
Resolution.
The City Council adopted the Water Department's FY2016-2020 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.
Form 1295 is not required for this M&C because this M&C does not request approval of a contract with a
business entity.
The project is located in COUNCIL DISTRICT 4, Mapsco 22V and 23S.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that appropriations are available as directed by M&C G-18375 in the
2017 Water and Sewer Revenue Bonds Capital Project Fund for Deerfield Addition Water Main
Improvements Project for this project.
I FUND Existing Additional
_ Appropriations Appropriations I Future F Project Total
Water/Sewer ---
DPN Fund $1,302,200.00 [$200,000.00 [$1,502,200.00
56005
Water& Sewer
Bond 2015A $175,066.00, $175,066.00
56007
Project Total F $1,477,266.00
( $1,677,266.00
FUND IDENTIFIERS (FIDs): a ��
TO
Fund Department Accoun Project Program ctivity Budget Reference # moun
ID ID Yea r Chartfield 2
FROM
Fund =06on&,4n nt ccount Project Program ctivity Budget Reference # Amount
ID Year Chartfield 2
56005 — 5710010 C 02534 2016 $134,760.00
CERTIFICATIONS: ^�
Submitted for City Manager's Office by• Jay Chapa (5804)
Steve Cooke (5134)
Originating Department Head: John Carman (8246)
Andrew Virdell (5469)
Additional Information Contact: Laura Morales (2311)
Logname: 21PMD DEERFIELD ADDITION 02534
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