HomeMy WebLinkAboutResolution 4615-04-2016 A Resolution
NO. 4615-04-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SUN
COUNTRY ELEVATED STORAGE TANK REHABILITATION 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 Sun Country Tank Rehabilitation 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 $1,600,000.00 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.
Adopted this 5th day of April, 2016. + o ¢a¢ '' ;
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Elevated StorageTank
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City of Fort worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/5/2016 Resolution No 4615-04-2016 & Ordinance No.
22158-04-2016
DATE: Tuesday, April 05, 2016 REFERENCE NO.: C-27657(Revised)
LOG NAME: 60SUN COUNTRY TANK REHAB-CPC (REVISED)
SUBJECT:
Authorize Execution of a Contract in the Amount of$1,134,950.00 with Classic Protective Coatings, Inc.,
for the Sun Country Elevated Storage Tank Rehabilitation Project, Located at 5800 W. Stewart Feltz Road,
Adopt Reimbursement Resolution and Adopt Appropriation Ordinance Decreasing Appropriations in the
2015-2016 Water and Wastewater Capital Improvement Plan by $400,000.00 for the Sun Country Elevated
Tank Rehabilitation Project (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a contract in the amount of$1,134,950.00 with Classic Protective Coatings, Inc.,
for the Sun Country Elevated Storage Tank Rehabilitation Project, located at 5800 W. Stewart Feltz
Road;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for costs related to the Sun Country Elevated Storage Tank Rehabilitation Project; and
3. Adopt the attached appropriation ordinance amending Ordinance No. 22004-12-2015 by reducing
estimated receipts and appropriations approved in the 2015-2016 Water and Wastewater Capital
Improvement Plan by $400,000.00 for the Sun Country Elevated Tank Rehabilitation Project.
DISCUSSION:
The Sun Country Elevated Storage Tank was constructed in 1990. It is a two million gallon, all steel
hydro-pillar elevated tank which has never been repainted. This elevated tank provides potable water
storage and fire protection for areas in south Fort Worth. The existing coating system is in need of
replacement as required to protect the structural steel from corrosion.
On February 12, 2015, a Request for Proposals was issued for several Water Department projects,
including the Sun Country Elevated Storage Tank Rehabilitation Project. On March 13, 2015, a total of
five proposals were received from engineering consultants for the Sun Country Project. A City staff
consultant selection committee recommended Tank Industry Consultants, Inc., for the Sun Country
Elevated Storage Tank Rehabilitation Project. On August 25, 2015 (Mayor and Council Communication
(M&C) C-27432), the City Council authorized execution of an Engineering Agreement with Tank Industry
Consultants, Inc., for the design and preparation of contract documents for the recoating and structural
repairs of the Sun Country Elevated Storage Tank. The bids came in lower than the estimated
$1,600,000.00 for this project, allowing for reduction of the appropriations by $400,000.00. The schedule
for project delivery remains the same, with construction starting in August of 2016 and being completed by
January of 2017.
Logname: 60SUN COUNTRY TANK REHAB-CPC (Revised) Page 1 of 3
The project vvaoadvertinedonDeoember1O. 2O15ondDecmmbar17. 2O15intha
C)n January 14. 2O10. the following seven bids were received:
BIDDER---- AMOUNT FCONTRACT_
lassic Protective Coatings, Inc. Ip 1,134,950.00 0 Calendar Days
Blastco Texas, Inc. [$1,308,650.00
[A-&—m—Construction and Utilities, Inc. $1,332,500.00
TMI Coatings, Inc. $1,516,400.00
Appropriations for the Sun Country Elevated Storage Tank will consist of the following:
Description A Existing --Add--it-io-n-al- FPro-j-'ect Total*
ppropriations Appropriati rAppropriations
Project
Real Property
Testing and
Contingencies
° Numbers rounded for presentation.
Appropriations for the Sun Country Elevated Storage Tank will consist of the following by fund:
Fund
Water/Sewer DPN Fund - 56005
1water & Sewer Bond 2015A Fund - 56007[ $ 150,600.00
[Project Total
° Numbers rounded for presentation.
This project iaonticjpetedtobeino|udedinafutunerevenuebondiaoueforthaVVaterandGevver
Fund. Available 000h 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 unti( debtieisouad. The unused authority will be reprogrammed tu
another project byafutureK8ayorandCounoi/ Cnmmunioobon. To the extent resources other than the
]Logoome: 60SlJN COUNTRY TANK REHAB-CPC (Rcvioc6) Page 2of3
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.
M/WBE OFFICE: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the
Water Department and approved by the M/WBE Office, in accordance with the M/WBE or BDE Ordinance,
because the purchase of goods or services from source(s) where sub-contracting or supplier opportunities
are negligible.
This project will have no impact to future Water Department operating budgets and is located in COUNCIL
DISTRICT 6, Mapsco 430.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available, as appropriated, in the 2017 Water and Sewer
Revenue Bond Capital Project Fund, Sun Country Elevated Storage Tank Rehabilitation Project, for the
execution of the contract and that excess appropriation will be reduced by the specified amount.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccount Project Program ctivity Budget Reference # Amount
ID ID Year (Chartfield 2
13)560051 0600430 14905420 1 CO2422 1 1 2016 1 1$400,000.00
FROM
Fund Department Accoun Project Program ctivit Budget Reference # Amount
ID ID Year (Chartfield 2)
11)560051 0600430 15740010 1 CO2659 I I C018801 2016 1 $1,134,950.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (6122)
Originating Department Head: John Carman (8246)
Additional Information Contact: Chris Harder (8293)
Logname: 60SUN COUNTRY TANK REHAB-CPC (Revised) Page 3 of 3