HomeMy WebLinkAboutResolution 4638-06-2016 A Resolution
NO. 4638-06-2016
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE REPAINTING
OF 5 MILLION GALLON CAYLOR GROUND STORAGE TANK 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 Repainting of 5 Million Gallon Caylor
Ground Storage Tank 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.
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Adopted this 21" day of June, 2016. 4Aa FORT 40
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of Fort Worth, Texas
Mayor � ��� Council Communication N��N���� ��rN ��NN��
couNcii_Acnow Approved on 6121/2016 - Resolution No. 4638-06-2016
DATE: Tuesday, June 21. 2O10 REFERENCE NO.: °°C-27782
LOG NAME: OOREPA|NT|NGOF5MG CAYLOR GST
SUBJECT':
Authorize Execution of an Engineering Agreement with C>uDha[O Engineering, Inc., in the Amount of
$110,000.00 for Engineering Services for the Repair and Repainting of the Five Million Gallon Caylor
Ground Storage Tank and Adopt Reimbursement Resolution (COUNCIL DISTRICT 7)
RECOMMENDATION:
hio recommended that the City Council:
1. Authorize execution of an Engineering Agreement with C)uDhanl Engineering, Inc., in the amount of
$110,000.00 for Engineering Services for repair and repainting of the Five Million Gallon Caylor Ground
Storage Tank; and
2. Adopt the attached raoo|uUOO expressing official Intent to Reimburse expenditures with pRJcaado of
future debt for the repainting of the Five Million Gallon Caylor Ground Storage Tank.
DISCUSSION:
The Cay|D[GPDUDd Storage Tank, located at 1300 North Cay|orRoad. was built in 1988 by Tank Builders,
Inc., and was last repainted in 1996.
|n December 2D15. a Request for Qualifications (F{FC>) was issued for several Water Department Projects
including the potable water Storage Tank Rehabilitation Project. |n January 2O10a total of six proposals
were received from engineering consultants for the tank rehabilitation project. /\staff selection committee
recommended Dunham Engineering. Inc., for the Five Million Gallon (MG) Cay|o[Ground Storage Tank
Repaint and Rehabilitation Project.
This project ioantioipatedtobeinc|udediD@futUFerevenueboDdissuefmrtheVVate[andSexve[
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 UDti! debtioiaoued. Tn 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 8eVVe[ revenue bonds than i8 currently
planned. Once debt associated with this project is ou|d, 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 oD February 2. 2016 (K8&CG-18882). This City Council adopted plan includes this specific project,
|Logoauze: 80ltBPAINTlDJ(} Dlr 5M(} CAYLODlGS7 Page l of
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.
The Engineering Agreement being approved is only a portion of the project that includes project
management, inspection, contingencies and construction cost with an overall budget for this project of
$1,175,000.00.
Engineering services are anticipated to commence in June 2016 and estimated to be complete by October
2016, with construction starting in December of 2016 to be complete by the end of April 2017.
In addition to the Engineering Agreement funding, $65,000.00 is needed for inspection, project
management and project contingencies. This project will have no impact on the Water Department's
operating budget when complete.
M/WBE OFFICE— Dunham Engineering, Inc., is in compliance with the City's BIDE Ordinance
by committing to 12 percent SBE participation. The City's goal on this project is 12 percent.
This project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that the appropriation is available as directed by M&C G-18375 in the
Water/Sewer DPN Fund for the Repainting of the Five MG Caylor Ground Storage Project.
Appropriations for the Repainting of the Five MG Caylor Ground Storage by fund will consist of the
following:
FUND Existing Additional Future Project
Appropriations Appropriations i Appropriations Total*
Water/Sewer
DPN Fund $175,000.00 $0.00 $ 0.00 $ 175,000.00
56005
Future
Revenue $ 0.00 $0.00 Fs ,000,000.00 $1,000,000.00
Bond
Project $175,000.00
Total $0.00 $1,000,000.00 $1,175,000.00
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID 1A ID Year Chartfield 2
FROM
Logname: 60REPAINTING OF 5MG CAYLOR GST Page 2 of 3
Fund Department ccount Project Program ctivity Budget Reference # Amount
ID ID Year Chartfield 2
E560051 0600430 15330500 1 100071 1 001830 J 2016 110,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60REPAINTING OF 5MG CAYLOR GST Page 3 of 3