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HomeMy WebLinkAboutResolution 4653-06-2016 A Resolution NO. 4653-06-2016 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE MUNICIPAL VEHICLE MAINTENANCE FACILITY 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 Municipal Vehicle Maintenance Facility 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 $7,100,000.00 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. fo Adopted this 28`x' day of June 2016. 0 00 �a ATTEST; ��o °0�.�� Ova $=d (� ° o d al� J. a 1 qty ciretary Qaa 00000000 K tiixQ ORT WORT MUNICIPAL VEHICLE MAINTENANCE FACILITY AT THE HOLLY WATER TREATMENT PLANT COMPOUND ;e CALDER 4- J Q w 4 z J K MUSEUM MUSE UM -\ O Q 2 1 1 T H M I R O J h LANCASTER LANCASTER O LANCASTER � Q- r 1-` LANCASTER yI �QP COTjONW000 f A, TRINITY PARK � w 1 eFO 441 O R I V E R PROPOSED CONSTRUCTION SITE x D�A�GGETT x x S4, S � EXISTING �'T Q� VEHICLE MAINT = FACILITY WENNECA WENNECA = w+ Y PETERSMITH PETERSMI., ''••� a i .:.•F �S'C S� N S QPP o vJ�st FW WEST ��P P � Ng LL O\� j� \ M PENNSYLVANIA O�l� S. 1 PRUIITT 5 CANNON s C A N N O N J tp�' C O O PER C O O P E R v � O Purl Wurlh kviftwi F_ORT%VOR'I'H 660 330 0 660 Feet City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/28/2016 - Ordinance No. 22313-06-2016, 22314-06-2016 & Resolution No. 4653-06-2016 DATE: Tuesday, June 28, 2016 REFERENCE NO.: C-27820 LOG NAME: 21 MUNICIPAL VEHICLE MAINTENANCE FACILITY SUBJECT: Authorize Execution of a Construction Contract with Imperial Construction, Inc., in the Amount of $6,530,625.00, Including an Owner's Construction Contingency Allowance of$455,625.00, 7.5 Percent, for the Construction of a New Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound, Provide for Administrative Costs in the Amount of$532,304.00 and Authorize Execution of a Contract with Kleinfelder, Inc., in the Amount of$69,889.00 for Materials Testing, for a Total Anticipated Construction Cost of$7,132,818.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinances (2014 BOND PROGRAM) (COUNCIL DISTRICT 9) 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 Municipal Vehicle Maintenance Facility; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Equipment Services Fund in the amount of$70,000.00 and decreasing the unassigned net position by the same amount; 3. Authorize the transfer of$400,000.00 from the Sun Country Tank Project to supplement the funding to the Municipal Vehicle Maintenance Facility Project; 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of$400,000.00 in the Municipal Vehicle Maintenance Facility Project of the Water/Sewer DPN Fund; 5. Authorize execution of a construction contract with Imperial Construction, Inc., in the amount of $6,530,630.00 including an Owner's Construction Contingency allowance of$455,625.00, (7.5 percent of the base bid), for the construction of a new Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound; and 6. Authorize execution of a contract with Kleinfelder, Inc., in the amount of$69,889.00 for materials testing associated with the construction of a new Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound. DISCUSSION: A new Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound was recommended by three different fleet consultants over the past 15 years (2002 Transportation Logname: 21MUNICIPAL VEHICLE MAINTENANCE FACILITY Page I of 4 Consultants, Inc., 2006 Scoping Study and 2010 Mercury Associates). These studies noted that 14-16 large heavy duty bays were needed to meet the maintenance needs of the existing Water Department fleet of 750+ vehicles. The current facility has 11 small bays. Design was funded by the 2014 Bond Program (Mayor and Council Communication (M&C) C-27081) and construction is being funded using the Water/ Sewer DPN Fund and the Equipment Services Fund. The City of Fort Worth issued a Request for Proposals (RFP) and received (11) proposals on January 28, 2016 for construction of the new Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound. Five of these firms provided the Post Proposal—Pre Award Submittals. These firms were: • Cooper General Contractors • Haydon Building Corp • Imperial Construction, Inc. • Muckleroy & Falls • Thos. S. Byrnes, Ltd. On February 19, 2016, these five complete proposals were reviewed by members of the Water Department, Property Management Department and the M/WBE Office. They were evaluated for best value based on the selection criteria set forth in the Request for Proposals. The selection team recommends that the City enter into negotiations for the construction of this new facility with Imperial Construction, Inc. Mucklero & Thos. S. Selection Criteria Imperial Cooper Falls y Byrne Haydon Proposed Price 55 60 55 53 53 M/WBE 1 5.5 2.05.5 5.0 2.0 Proposed Schedule 10 10 1 10 F 10 F 0 Reputation/Experience F 9 7 v 1 8 F 8 F 8 Past Relationship with City of 10 5 6 10 I 5 Fort Worth - _ TOTAL F89.5 84.0 1 84.5 F 86.0 F68.o The overall project costs are expected to be as described in table below: Municipal Vehicle Maintenance Facility r Totals Architectural & Engineering Design $ 704,800.00 Project Management, Survey, Geotechnical, Bid Advertisement, etc. $$ 775,200.00 Design Phase Total $ 780,000.00 Construction Contract (Imperial Construction, Inc. including 7.5% of $6,530 625.00 the Base Bid as an Owner's Construction Contingency Allowance) ' Materials Testing (Kleinfelder, Inc.) 169,889.00 Project Administration Cost: Site Utilities, IT, Security, Project $ 532,304.00 Management, Contingency, FFE, Etc. Construction Phase Total $7,132,818.00 Logname: 21MUNICIPAL VEHICLE MAINTENANCE FACILITY Page 2 of 4 Project Total 1$7,912,818.001 In accordance with the Chapter 7, Article III, Section 7-47, Section 109.2.1 of the City Code, Building Permit Fees are waived for this project. 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 the attached Reimbursement Resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds FUNDING SOURCES - Project Funding is coming from multiple sources. The design was paid for through the 2014 Bond Program. The construction will be funded through the Water/Sewer DPN Fund and the Equipment Services Fund. M/WBE OFFICE - Imperial Construction, Inc., is in compliance with the City's Business Diversity Enterprise (BDE) Ordinance by committing to 16 percent MBE participation on the base bid. The City's MBE goal on the base bid contract is 11 percent. The new Municipal Vehicle Maintenance Facility at the Holly Water Treatment Plant Compound is located in COUNCIL DISTRICT 9. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that the appropriation for this project is available as directed by M&C G- 18375 in the Water/Sewer DPN Fund Programmable Project No. P00004 for the Municipal Vehicle Maintenance Facility Project. Upon approval of the above recommendations and adoption of the attached reimbursement resolution and appropriation ordinances, funds will be available in the current capital budgets as appropriated, of the Water/Sewer DPN Fund and Equipment Services Fund. Logname: 21 MUNICIPAL VEHICLE MAINTENANCE FACILITY Page 3 of 4 FUND IDENTIFIERS (FIDs): TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year Chartfield 2 q&�4A 56005 0600430 4905420 CO2422 C00780 2016 $200,000.00 56005 0600430 5740010 CO2422 C00780 2016 $200,000.00 3&4)56005 070043 4905420 CO2422 C00780 2016 $200,000.00 56005 0700430 5740010 CO2422 C00780 2016 $200,000.00 60101 0212030 5900011 $70,000.00 60201 0210420 4960101 CO2422 C00780 2016 $70,000.00 1602011 0210420 1 1 CO2422 I I C00780 2016 $70,000.00 FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) 3 56005 0600430 5740010 CO2659 C01880 2016 $400,000.00 5 56005 0600430 5740010 CO2422 C00780 2016 $3,265,312.50 5 56005 0700430 5740010 CO2422 C00780 2016 3,265,312.50 56005 0600430 5330102 CO2422 C00780 2016 $34,944.00 56005 0700430 5330102 CO2422-T- 02422 C00780 2016 $34,945.00 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Steve Cooke (5118) Additional Information Contact: Brian Glass (8088) Logname: 21MUNICIPAL VEHICLE MAINTENANCE FACILITY Page 4 of 4