HomeMy WebLinkAboutResolution 4646-06-2016 A Resolution
NO. 4646-06-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LANG
OLEANDER DEVELOPMENT 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 Lang Oleander Development 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
$30,000.00 for the purpose of paying the aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No
obligations will be issued by the City in furtherance of this Statement after a date which is later
than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which
the property, with respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this
Statement more than three years after the date any expenditure which is to be reimbursed is
paid.
Adopted this 28`x' day of June, 2016.
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COPY RIGHT 2016 CITY OF FORT WORTH FORT ORTH
UNAUTHORIZED RLPRODU CTION ISA VIOLATION OF APPLICA13LE LAMS Lang Oleander
TI IIS DATA IS TO PE USED FOR A GRAPHICAL REPRESENTATION CHL1'
THE ACCURACY IS NOT TO RE TAHEN I USED AS DATA PRODUCED FOR
EllGIIJEERIPIG PURPOSES OR F3YA REGISTERED PROFESSIOIIAL LAfID WATCH
SURVEYOR THE CITY OF FORT WORTH ASSUMES NO RESPONSIBILITY 0 0.1250.25 0.$ 0.7$ '
FOR THE ACGURACV OF SAID DATA
Miles
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/28/2016 -,;Resolution No. 4646-06-2016
DATE: Tuesday, June 28, 2016 REFERENCE NO.: **C-27797
LOG NAME: 06LANG OLEANDER CITY WATER PARTICIPATION
SUBJECT:
Authorize an Expenditure in the Amount of$20,737.00 from the Water and Wastewater DPN Fund For
Programmable Community Facility Agreement Projects for Upsizing the Water Line to Serve the Lang
Oleander Development and the Surrounding Area and Adopt Reimbursement Resolution (COUNCIL
DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an expenditure in the amount of$20,737.00 from the Water& Wastewater DPN Fund for
Programmable Community Facility Agreement Projects for upsizing the waterline from four-inches to
eight-inches within the limits of the Lang Oleander Project to serve that development and the surrounding
area; and
2. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for the Lang Oleander Project.
DISCUSSION:
Oleander Investments, LLC - c/o Lang Partners, LLC, has executed a Community Facilities Agreement
(CFA) (City Secretary Contract No. 47712) for construction of public infrastructure, including water, sewer,
paving, storm drain and street light improvements, to serve the Lang Oleander development with a total
construction cost of$654,834.77.
The CFA with Oleander Investments, LLC, must be amended to add the construction of an off-site water
line to the project and City participation in the amount of$20,737.00 for upsizing the water line from a four-
inch line to an eight-inch line to serve anticipated future growth in the area, as shown on the table below.
Construction Developer &o—stF qfty Cost Total Cost
Water $5,972.00 $15,95100 $21,923.00
pConting>ncy (25
ercent $1,493.00 $ 3,988.00 $ 5,481.00
Construction Subtotal $7,465.00 1 $19,939.00 F $27,404.00
Construction Fees
Material Testing (2
p0 $ 399.00 $ 548.00
Inspection (2 percent) $ 149.00 $ 399.00 $ 548.00
(Construction Fees
Subtotal 298.00 F $F _1,096.00
Logname: 06LANG OLEANDER CITY WATER PARTICIPATION Page I of 3
Total Project Cost 1 $7,763.00 1 $20,737.00 1 $28,500.00
The City's participation, including 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 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 COUNCIL DISTRICT 9, Mapsco 76L.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that appropriations are available to cover the cost of the City portion of
this CFA and that this project is included in the Fiscal Year 2016 Water& Wastewater Capital
Improvement Plan, as appropriated. The adopted Water&Wastewater Capital Improvement Plan
includes an appropriation of$9,400,000.00 for programmable Community Facility Agreement Project
P0001. Of the original appropriation, the amount of$8,177,413.00 is available to fund individual projects.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department Accoun Project ProgramActivity Budget Reference # Amount
Logname: 06LANG OLEANDER CITY WATER PARTICIPATION Page 2 of 3
ID ID Year Chartfield 2
1 56005 0600430 5310101 CO2698 C01580 2016 $19,939.00
1 56005 0600430 533050 CO2698 C01584 2016 $399.00
1 56005 0600430 533050 CO2698 C01585 2016 $399.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Julie Westerman (2677)
Logname: 06LANG OLEANDER CITY WATER PARTICIPATION Page 3 of 3