HomeMy WebLinkAboutResolution 4637-06-2016 A Resolution
NO. 4637-06-2016
STATEMENT EXPRESSING OFFICIAL INTENT TO
REIMBURSEEXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR
OVERSIZING WATER AND SEWER FACILITIES TO SERVE THE SCENIC
VILLAGE DEVELOPMENT PROJECT AND SURROUNDING AREA
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 oversizing water and sewer facilities to serve
the Scenic Village Development project and surrounding area 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 $300,000.00 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.
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6/15/2016
COPYRIGHT 2010 CITY OF FORT WORTH FORT WORTH
lI.:�ITI I,I;f III,II1F. II"Ili.1.IS A VIOLATION OF APPLICABLE LAWS Scenic Village
THIS DATA IS TO BE USED FOR A GRAPHICAL REPRESENTATION ONLY
THE DATA IS NOT TO BETAKEN I USED AS DATA PRODUCED FOR
ENGINEERING PURPOSES OR BYA REGISTERED PROFESSIONAL LAND WATIM
SURVEYOR THE CITYOF FORT WORTH ASSUMES NO RESPONSIBILITY 0 0.1 0.2 0.4 0.8 0.8
FOR THE ACCURACY OF SAID DATA
Miles
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/21/2016 - Resolution No. 4637-06-2016
DATE: Tuesday, June 21, 2016 REFERENCE NO.: **C-27773
LOG NAME: 06BIRD ST CFA CITY WATER PARTICIPATION (PROJECT 100386)
SUBJECT:
Authorize Execution of a Community Facilities Agreement with FW Bluff Apartments, LP, and Authorize
City Participation in the Amount of$256,110.00 for Oversizing of Water and Sewer Lines in Bird Street and
Bluebonnet Drive to Serve the Scenic Village Development and Surrounding Areas and Adopt
Reimbursement Resolution (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a Community Facilities Agreement with FW Bluff Apartments, LP, with City
participation in the amount of$256,110.00 for costs related to oversizing water and sewer lines in Bird
Street and along Bluebonnet Drive to serve the Scenic Village development and surrounding areas; and
2. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for the Scenic Village Development's surrounding area project
DISCUSSION:
On April 9, 2016, FW Bluff Apartments, LP, executed a Community Facilities Agreement (CFA) (City
Secretary Contract (CSC) No. 47701) to install the public infrastructure necessary to serve their
development, Scenic Village, located northeast of downtown Fort Worth. The project includes the
installation of water and sewer lines, storm drains, street lights, street signs and paving. There are
existing six-inch water and sewer mains in Bird Street and an existing six-inch water main in Bluebonnet
Drive. City staff has determined that the existing water and sewer mains require oversizing. The Water
Department is participating in the Developer's project to replace and upsize those facilities to eight-inch
water and sewer lines to serve anticipated future growth in the area. The City's cost participation to
replace and upsize the lines is estimated to be $256,110.00 as shown on the table below, of that amount,
$28,000.00 is for engineering services. The developer's existing CFA (CSC No. 47701), provides for the
reconstruction and surface improvements on Bird Street and Bluebonnet Drive.
Item Developer Cost F— City Cost I Total Project Cost
Water Construction $ 25,928.00 (— $107,804.00 _ $133,732.00
Sewer Construction $ 20,394.00 $ 67,665.00 $8 8,059.00
Paving Construction (— $142,608.00 $ 0.00 $142,608.00
Storm Drain Construction $ 36,366.00 $ 0.00 $ 36,366.00
Street Lights Construction $ 23,385.00 $ 0.00 $ 23,385.00
Construction Subtotal $248,681.00 $175,469.00 $424,150.00
ontingency(25%) $ 0.00 {— $ 43,867.00 $ 43,867.00
onstruction Subtotal $248,681.00 $219,336.00 $468,017.00
Inspection Fee $ 17,359.00 F$ 4,387.00 $ 21,746.00
Material Testing Fee $ 4,506.00 [$ 4,387.00 —F--$ 8,893.00
Logname: 06BIRD ST CFA CITY WATER PARTICIPATION (PROJECT 100386) Page 1 of 3
;Construction Fees Subtotal $ 21,865.00
$ 8,774 00 i $ 30,639.00
.
Engineering Cost $ 0.00 i $ 28,000.00 $ 28,000.00
Total Project Cost
The City's participation, excluding inspection and material testing fees, is not a lump-sum amount and may
be less than the stated amount depending upon the actual quantities and unit prices from the Notice of
Final Completion Package, commonly referred to as the green sheet package.
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 Funds 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 and 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 the
attached resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City
from tax-exempt bond proceeds.
This development is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available as appropriated in the Fiscal Year 2016 Water
and Wastewater Capital Improvement Plan. The adopted Water and Wastewater Capital Improvement
Plan includes an appropriation of$9,400,000.00 for programmable Community Facility Agreement
Projects. Of the original appropriation, $8,198,150.00 is available to fund future individual projects.
FUND IDENTIFIERS (FIDs):
TO
Fund Department cc6un Project Program Budget Reference # moun
ID I ID Year (Chartfield 2)
FROM
I I I I I
Logname: 06BIRD ST CFA CITY WATER PARTICIPATION (PROJECT 100386) Page 2 of 3
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
R 56005 0600430 5310101 100386 001580 2016 148,753.74
56005 0700430 5310101 100386 001380 2016 $98,581.24
CERTIFICATIONS:
Jesus Chapa (5804)
Submitted for City Manager's Office by: Fernando Costa (6122)
John Carman (8246)
Originating Department Head: Randle Harwood (6101)
Julie Westerman (2677)
Additional Information Contact: Wendy Chi-Babulal (8242)
Logname: 06BIRD ST CFA CITY WATER PARTICIPATION (PROJECT 100386) Page 3 of 3