HomeMy WebLinkAboutResolution 4655-06-2016 A Resolution
NO. 4655-06-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
NORTHSIDE II 48-INCH WATER MAIN, PHASE II 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 from available funds in connection
with the design, planning, acquisition and construction for the Northside I1 48-Inch Water
Main, Phase II 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; 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, THAT:
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
$40,000,000.00 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`1' day of June 016. "!.Ita
i0' 0000000
ATTEST: - d��a°°° °%0���
_ Lo oA
l�Iary J. K� r, ity secretary O��f°0 °°°*0
`(A 0°00000000° 'C
Kanna�oa 4�aa
ORT WORT
_- LI •� _ - ,� , ` GOLDEN I1(VN�VLGIGL i � �'
NSH 48-INCH PHASE 2 WATER I:INE
r
i
4�'�:
BAILEY 60SWELL RD
.f-
r i r • � ,,41� � T _ I
� 19+'1.7.•
w
h' MCLEROY BLVD
-����- �•�lk +.N���V� `�' X79 ? L�8•
FORTWORTH
WATER
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/28/2016 - Ordinance No. 22317-06-2016 & Resolution
No. 4655-06-2016
DATE: Tuesday, June 28, 2016 REFERENCE NO.: C-27822
LOG NAME: 60NS1148WPH2P2-SJLOUIS
SUBJECT:
Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd., in the Amount of
$14,220,423.00 for the Northside II 48-Inch Water Main Phase II, Part 2, from Wagley Robertson Road to
Parkview Hills Lane, Provide for Project Administration, Inspection, Materials Testing and Contingencies for
a Total Project Amount of$15,855,823.00, Adopt Resolution Expressing Official Intent to Reimburse
Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 7)
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 entire the Northside II 48-inch Water Main, Phase II Improvement Project;
2. Authorize an amendment to the Fiscal Year 2016 Water Capital Improvement Plan to add additional
funding to the Northside II 48-inch Water Main Project in the amount of$5,463,911.00;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Northside II 48-Inch Water Main, Phase II, Part 2 Project of the 2016 Water Capital Projects Improvement
Plan in the amount of$5,463,911.00 from available funds; and
4. Authorize the execution of a contract with S.J. Louis Construction of Texas, Ltd., in the amount of
$14,220,423.00 for the Northside II 48-inch Water Main Phase II, Part 2 from Wagley Robertson Road to
Parkview Hills Lane.
DISCUSSION:
On December 9, 2014 (Mayor and Council Communication (M&C) C-27124), the City Council authorized
an Engineering Agreement with Freese & Nichols, Inc., for the preparation of plans and specifications for
Northside II 48-inch Water Main Phase II, from Heritage Trace Parkway to Longhorn Road. The proposed
water main will increase water delivery and reliability to the Northside II pressure plane.
In order to expedite construction, the Phase II project was divided into the following three parts:
• Part 1, 48-inch water main from Heritage Trace Parkway to Wagley Robertson Road.
• Part 2, 48-inch water main from Wagley Robertson Road to Parkview Hills Lane (this project).
• Part 3, 48-inch water main from Parkview Hills Lane to Longhorn Road.
Phase 11, Part 2, consists of the following:
Logname: 60NSII48WPH2P2-SJL0UIS Page I of 4
• Installation of a 48-inch water main beginning from Wagley Robertson Road to Parkview Hills Lane
• Construction of the north bound half of Old Decatur Road from Bailey Boswell Road to Parkview
Hills Lane in accordance with an Inter-Local Agreement between the City of Fort Worth and the City
of Saginaw (City Secretary Contract No. 47705).
This project was advertised for bids on March 10, 2016 and March 17, 2016 in the Fort Worth Star-
Telegram. On March 31, 2016 the following bids were received:
Bidder Amount �Time of
ompletion
S.J. Louis Construction of Texas, Ltd. F$14,220,423.001540 Calendar Days
William J. Shultz, Inc. d/b/a Circle "C" Construction 1$14,456,642.50
Company
Oscar Renda Contracting, Inc. $14,560,900.00
Thalle Construction Company, Inc. $16,390,059.30
Jackson Construction, Ltd. 1$18,635,112.50
Atkins Bros. Equipment Company, Inc. $26,274,050.00
In addition to the contract cost, $1,208,700.00 is required for project management, material testing and
inspection and $426,700.00 is provided for project management
This project requires additional funding in the amount of$5,463,911.00 for increased construction cost as
well as related easements, inspection, contingency and project management cost as depicted by the table
below. Staff recommends these additional funds come from funds in the Water/Sewer DPN fund.
M&C number or log name DPN Funding
required
0 &C L-15915 adopted $ 581,000.00
/14/2016
20MARINE CREEK PARKWAY 1 $ 3,428,295.00
60NSII48PH2A1-FNI F $ 243,593.00
60NSH48WPH2P2-SJLOUIS F $15,855,823.00
Sub Total $20,108,711.00
Funding allotted M&C G-18625 r $14,644,800.00
Funding shortage F -$ 5,463,911.00
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
Logname: 60NSII48WPH2P2-SJL0UIS Page 2 of 4
Resolution, which encompasses the entirety of Phase II.
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). 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 Statement, 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 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 is anticipated to commence in August 2016 with a contract time of 540 calendar days, the
project is estimated to be complete by the end of December 2017.
This project will have no impact on the Water Department Operating Budget when complete.
M/WBE OFFICE: S.J. Louis Construction of Texas, Ltd., is in compliance with City's BDE Ordinance by
committing to nine percent MBE participation. The City's MBE goal on this project is nine percent.
The project is located in COUNCIL DISTRICT 7, Mapsco 3E, 4E, 5E, 6E, 7E and 8E.
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 Northside II 48-inch Water Main, Phase II, Part 2 Improvement Project
and that upon approval of the above recommendation and adoption of the attached appropriation
ordinance, funds will be available in the current capital budget as appropriated, of the Water/Sewer DPN
Fund, as depicted in the table below by fund.
FFUND I Existing Additional Appropriations' Future project Total*
Appropriations Appropriations
Water/Sewer
DPN Fund $14,644,800.00 $5,463,911.00 $16,524,000.00 $36,632,711.00
56005
Water&
Sewer Bond $ 1,680,500.00 $ 0.00 $ 0.00 $ 1,680,500.00
2015A
56007
Water
Capital Fund $ 21,605.00 $ 0.00 $ 0.00 $ 21,605.00
59601**
Project Total $16,346,905.00 1 $5,463,911.00 $16,524,000.00 $38,334,816.00
* Numbers rounded for presentation purposes.
** includes funding from M&C L-15915
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accouni Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
56005 0600430 5740010 CO2304 C01783 2016 5,463,911.00
Logname: 60NSII48WPH2P2-SJL0UIS Page 3 of 4
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Robert C. Sauceda (2387)
Logname: 60NSII48WPH2P2-SJLOUIS Page 4 of 4