HomeMy WebLinkAboutResolution 4641-06-2016 A Resolution
NO. 4641-06-2016
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 $1,750,000.00 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. oaQ�FORTn a
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Adopted this 21St day of June, 2016. p, °°°O�Q
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6121/2016 - Ordinance No. 22286-06-20165-22287-06-2016
&Resolution No. 4641-06-2016
DATE: Tuesday, June 21, 2016 REFERENCE NO.: C-27790
LOG NAME: 60DEERFIELDWATER-ATKINS
SUBJECT:
Authorize Execution of a Contract with Atkins Bros. Equipment Co., Inc., in the Amount of$1,568,471.00
for the Deerfield Addition Water Main Improvements and Provide for Project Contingencies and Other
Costs for a Total Project Amount of$1,862,522.00, Adopt a Resolution Expressing Official Intent to
Reimburse Expenditure with Proceeds of Future Debt and Adopt Appropriation Ordinances (COUNCIL
DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for the Deerfield Addition Water Main Improvements Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
amount of$125,360.00 in the Deerfield Addition Water Main Improvement Project of the Street
Rehabilitation Fund and reduce fund balance by the same amount;
3. Authorize the transfer of$259,896.00 from the North Tarrant Express Segment 3A Project to
supplement the funding of the Deerfield Addition Water Main Improvements Project; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
amount of$259,896.00 in the Deerfield Addition Water Main Improvement Project of the Water/Sewer DPN
Fund and reduce fund appropriation in the North Tarrant Express Segment 3A Project by the same
amount; and
5. Authorize the execution of a contract with Atkins Bros. Equipment Co., Inc., in the amount of
$1,568,471.00 for the Deerfield Addition Water Main Improvements.
DISCUSSION:
On August 19, 2014 (Mayor and Council Communication (M&C) PZ -3064), the City Council instituted and
adopted the annexation of Deerfield Addition, located south of Wall Price Keller Road and west of U.S.
Highway 377.
On May 19, 2015 (M&C C-27298), the City Council Authorized an Engineering Agreement with Freese &
Nichols Inc., to prepare the plans and specifications for Deerfield Addition Water Main Improvement.
This M&C is to authorize a contract for construction of the following improvements to improve the level of
water service to residents of the Deerfield Addition:
Logname: 60DEERFIELDWATER-ATKINS Page I of 3
• The installation of 3,950 feet of 12-inch water line along Wall Price Road.
• The installation of 1,900 feet of 12-inch water line along the west side of Union Pacific Railroad
between Wall Price Keller Road and Kroger Drive.
• Connecting the existing 6-inch water line on Prairie Court to the existing 16-inch water line on Ray
White Road.
• The replacement of the existing gate valves and fire hydrant inside the Deerfield Subdivision to
match current City standards.
The project was advertised for bid on March 24, 2016 and March 31, 2016 in the Fort Worth Star-
Telegram. On April 21, 2016, the following bids were received:
BIDDER AMOUNT IME OF COMPLETION
Atkins Bros. Equipment Co., Inc. _F$_I,_5_68,471.001 180 Calendar Days
North Texas Contracting, Inc. $1,986,250.00 -
William J. Schultz, Inc. d/b/a Circle"C"Construction Co.$2,267,210.00
[Jackson Construction, Ltd $2,597,008.00
In addition to the contract cost $146,300.00 (water: $135,300.00; TPW: $11,000.00) is required for project
management, material testing and inspection and $57,280.00 (water: $47,100.00; TPW: $10,180.00) is
required for project contingencies.
This project requires additional funding in the amount of$259,896.00 for pavement rehabilitation as well as
related project management, easement cost (M&C L-15871 adopted March 1, 2016) and contingency
costs. Staff recommends these additional funds be transferred from the Water/Sewer Direct Purchase
Note (DPN) Funding for betterments for the North Tarrant Express Segment 3A Project. The project scope
and schedule for the water main betterments for the North Tarrant Express Segment 3A Project (CO2011)
have resulted in costs less than what was originally anticipated. Both projects are included in the Fiscal
Year 2016-2020 Five-Year Capital Improvement Plan, adopted February 2, 2016 (M&C G-18662).
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 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 (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.
Construction of the Deerfield Water Main Improvements Project is one component of the overall project
that includes engineering, project management, easements, material testing, inspection and
Logname: 60DEERFIELDWATER-ATKINS Page 2 of 3
contingencies. The overall project budget is $1,862,522.00.
Construction is anticipated to commence in July 2016, with a contract time of 180 calendar days, the
project is estimated to be complete by March 2017.
This project will have no impact on the Water Department's Operating Budget when complete.
M/WBE OFFICE: Atkins Bros. Equipment Co., Inc., is in compliance with City's BDE Ordinance by
committing to 11 percent MBE participation. The City's MBE goal on this project is 11 percent.
The project is located in COUNCIL DISTRICT 4, Mapsco 22V and 23S.
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 Deerfield Addition Water Main Improvement Project and upon approval of
the above recommendations and adoption of the attached appropriation ordinances, funds will be available
in the current capital budget as appropriated, of the Water Capital Projects Fund and the Street
Rehabilitation Fund, as depicted in the table below.
Existing Additional
FUND Appropriations Appropriations [Future Appropriations I Project Total*
Street Rehabilitation Fund 39408 $ 0.00 $125,360000 1 $0.00 $ 125,360.00
Water/Sewer DPN Fund 56005 1 $1,302,200.00 $259,896.00 $0.00 $1,562,096.00
Ka—ter&Sewer Bond 2015A r $ 175,066.00 $ 0.00 $0.00 F $ 175,066.00
Project Total $1,477,266.00 $385,256.00 $0.00 $1,862,522.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project ProgramActivity Budget Reference # Amount
ID ID Year Chartfield 2
39408 0200431 5310350 CO2534 2016 $125,360.00
2 39408 0200431 CO2534 2016 $125,360.00
3&4)156005, 0600430 5740010 CO2534 C01783 2016 $259,896.001
FROM
Fund Department Accouni Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
5 56005 0600430 5740010 CO2534 C01783 2016 $1,453,291.00
39408 0200431 5740010 UNSPEC C06283 2016 $125,360.00
3 56005 0600430 5900015 CO2011 2016 $259,896.00
5)1394081 0200431 5740010 CO2534 C06283 2016 1 $115,180.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: John Kasavich (8480)
Logname: 60DEERFIELDWATER-ATKINS Page 3 of 3