HomeMy WebLinkAboutResolution 4639-06-2016 A Resolution
NO. 4639-06-2016
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE V
ELEVATED STORAGE TANK AND WATER MAIN 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 Westside V Elevated Storage Tank and
Water Main 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 $1,200,000.00 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.
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Adopted this 21" day of June 2016. ���oFoORTAa�00 goo d�
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of Fort Worth, Texas
Mayor an d Council Communication
COUNCIL ACTION: Approved on 612112016 - Resolution No. 4639-06-2016
DATE: Tuesday, June 21' 2O10 REFERENCE NO': °°C-27784
LOG NAME: 00VVEST|DE V EST 0K8LEY HORN
.
Authorize Execution of an Engineering Agreement with Kinn|ey-Horn and Associates, Inc., in the Amount of
$843,1OO.00 for the VVeGtoideV Elevated Storage Tank and Water Main Project, LocatodinVVeotFort
Worth and the City's Extra Territorial Jurisdiction and Adopt Reimbursement Resolution, Provide for Project
Costs and Contingencies for a Project Tota| iRtheA00uOtof$893.1OO.00 (C(]UK]C|LO|GTR|CT3)
.
|tio recommended that the City Council:
1. Authorize the execution of an Engineering Agreement with Kim|oy-Horn and A0000iotao. Inc., in the
g0oUOt of$843.10U.00 for the VVeotoideV Elevated Storage Tank and Water Main project, located in west
Fort Worth and the City's Extra Territorial Jurisdiction; and
2. Adopt the attached resolution expressing official Intent tnReimburse expenditures with proceeds of
future debt for the VVestside V Elevated Storage Tank and Water Main Project.
DISCUSSION:
Growth within west Fort Worth and its Extra TeOibJha| Jurisdiction /ETJ\ requires the installation of pump
Gt8boDS, water storage facilities and transmission mains in order to provide reliable water service to
existing and proposed developments and as required for compliance with state regulatory requirements
related to public water system design and operations. [)n November 17. 2O15. the City Council approved
the construction of@ booster pump station toprovide service to portions of the Walsh Ranch and
Morningstar developments. The Water Department desires to connect this pump station tm the proposed
elevated storage for improved levels of service.
On November 12. 2015. a request for proposals was issued for several Water Department projects,
including the VVeetoideVElevated Storage Tank and Water Main Project. On December 18. 2015. atoto|
of five proposals were received from engineering consultants. /\ city staff consultant selection committee
recommended Kirn!ey-Horn and/\0000iatao. Inc., (Kimn|ey-Horn and /\oeooiatao) for the \&estside \/
Elevated Storage Tank and Water Main Project.
As part of the work, Kirn|ey-Horn and Associates will perform site feasibility studies, field ourveys, property
appraisals and platting for both an elevated storage tank and ground storage tank site, located in west
Fort Worth and its ETJ. Upon acquisition of the properties, Kim|ey-Horn and Associates will prepare
engineering plans and specifications for aO elevated storage tank and water transmission main. The
transmission main will connect the proposed elevated storage tank tm the booster pump station and the
water infrastructure installed as part of the Morningstar Development. Kirn|ey-Horn and Associates will
also provide construction management services aepart of this Engineering Agreement.
This project ioonticipatedtobeiOdudediOGfutUFerevenuebondioouefortha \8/ate[aOdGexver
I.oguome: 60WB87JZ)II \/EST K]ML]2YHORN Page lof3
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 (Mayor and Council Communication (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.
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
$7,743,100.00.
In addition to the Engineering Agreement, $50,000.00 is required for project management and real estate
services. It is anticipated that the design and property acquisition process will commence in July/August
2016 and be completed by June of 2017. It is anticipated construction will start October 2017 (Fiscal Year
2018 Capital Budget) and be completed by February 2019.
M/WBE OFFICE: Kimley-Horn and Associates is in compliance with the City's BDE Ordinance by
committing to 20 percent SBE participation. The City's goal on this project is 15 percent.
The project is located in COUNCIL DISTRICT 3 and the City's ETJ.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that the appropriation is available in the Programmable Project No.
P00005 as directed by M&C G-18375 in the 2017 Water and Sewer Revenue Bonds Capital Project Fund
for the Westside V Elevated Storage Tank and Water Main Project.
Appropriations for the Repainting of the Westside V Elevated Storage Tank and Water Main Project by
fund will consist of the following:
Existing Additional Future
FUND Appropriations Appropriations Appropriations__ Project Total*
Water/Sewer DPN Fund 56005 $893,100.00 $0.00 F$ — 0.00 F$ 893,100.00
[Future Revenue Bond $ 0.00 $0.00 $6,850,000.00 $6,850,000.00
Project Total F $893,100.00 $0.00 $6,850,000.00 $7,743,100.00
* Numbers rounded for presentation purposes.
Logname: 60WESTIDE V EST KIMLEY HORN Page 2 of 3
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # lAmoun
ID ID Year Chartfield 2
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
56005 0600430 5330500 100378 001830 2016 $843,100.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Chris Harder (8293)
Logname: 60WESTIDE V EST KIMLEY HORN Page 3 of 3