HomeMy WebLinkAboutResolution 4645-06-2016 A Resolution
NO. 4645-06-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
BRIDGES PHASE 2 AND SURROUNDING AREA 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 Bridges Phase 2 and Surrounding Area
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 $30,000.00 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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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION': Approved on 6/28/2016 - Resolution No. 4645-06-2016
DATE: Tuesday, June 28, 2016 REFERENCE NO.: **C-27796
LOG NAME: 06BRIDGES PHASE 2 CITY SEWER PARTICIPATION
SUBJECT:
Authorize an Expenditure in the Amount of$22,206.00 from the Water& Wastewater DPN Fund for
Programmable Community Facility Agreement Projects for Upsizing Sewer Line to Serve the Bridges
Phase 2 and the Surrounding Area and Adopt Reimbursement Resolution (EXTRATERRITORIAL
JURISDICTION)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an expenditure in the amount of$22,206.00 from the Water& Wastewater DPN Fund for
Programmable Community Facility Agreement Projects for costs related to upsizing a sewer main from 8-
inches to 15-inches within the limits of the Bridges Phase 2 to serve that development and anticipated
growth in the surrounding area; and
2. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for the Bridges Phase 2.
DISCUSSION:
LGI Crowley Land Partners, LLC, the developer of The Bridges Phase 2 (Developer), is executing a
Community Facilities Agreement (CFA) for construction of public infrastructure, including water, sewer,
paving, storm drain and street light improvements, to serve that development located in Fort Worth's
Extraterritorial Jurisdiction (ETJ).
City staff has determined that the water line requires upsizing to serve future development in the
area. The Water Department is participating in the Developer's project to upsize the water line from an 8-
inch line to a 15-inch line to serve the anticipated future growth. The City's cost participation to upsize the
water line is estimated to be in the amount of$22,206.00, as shown on the table below.
--------- —
Cost Item I Developer Cost City Cos I Total Cost
Water �($ 235,841.00 ($ 235,841.00
Sewer $ 699,593.00 $18,567.00 $ 718,160.00
Paving $ 247,963.00 $ 247,963.00
Storm Drain ($ 783,884.00 _ F$ 783,884.00
FStreet Lights F 101,496.00 F� 101,496.00
Contingency [-1$ 2,785.00 F$ 2,785.00
Construction Subtotal $2,068,777.00 $21,352.00 $2,090,129.00
l onstruction Fees
Material Testing $ 39,346.00 ($ 427.00 $ 39,773.00
Logname: 06BRIDGES PHASE 2 CITY SEWER PARTICIPATION Page 1 of 3
(Inspection_ _ $ 64,042.00 1$ 427.00 ($ 64,469.00
Construction Fees Subtotal V1 854.00 $ 104,242.00
[T_ctal Project Cost $2,172,165.00 $22,206.00 $2,194,371.00
The costs stated herein may be based upon construction estimates rather than actual cost. The
reimbursement of the participation, excluding inspection and material testing fees, is not a lump-sum
amount and may be less than stated above depending upon actual quantities 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 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.
The project is located in Extraterritorial Jurisdiction, Mapsco 117 U and 117Y.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that budget is available and that this project is included in the Fiscal Year
2016 Water& Wastewater Capital Improvement Plan, as appropriated in Project P00001. The adopted
Water&Wastewater Capital Improvement Plan includes an appropriation of$9,400,000.00 for
programmable Community Facility Agreement Projects. Of the original appropriation, $8,155,207.00 is
available to fund individual projects.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID 1A ID Year Chartfield 2
FROM
Fund Department Accoun Project Program I Activity Budget Reference # Amount
Logname: 06BRIDGES PHASE 2 CITY SEWER PARTICIPATION Page 2 of 3
ID ID Year Chartfield 2
56005 0700430 5310101 CO2427 C01380 2016 $21,352.00
56005 0700430 5330500 CO2427 C01384 2016 $427.00
56005 0700430 5310350 CO2427 C01385 2016 $427.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Julie Westerman (2677)
Additional Information Contact: Evelyn Roberts (2025)
Logname: 06BRIDGES PHASE 2 CITY SEWER PARTICIPATION Page 3 of 3