HomeMy WebLinkAboutResolution 4665-08-2016 A Resolution
NO. 4665-08-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NEAR
SOUTHSIDE MEDICAL DISTRICT WATER AND SANITARY SEWER 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 Near Southside Medical District Water and
Sanitary Sewer Mains 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
$1,500,000.00 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 23`d day of August, 2016. �4,•afti 4
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FY 2014-15 LILAC
0 250 500 1,000
Filet PROJECT: 2375,2445
REF:X-23397,K-2443
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/23/2016 - Ordinance No. 22365-08-2016, 22366-08-2016,
22367-08-2016 & Resolution No. 4665-08-2016
DATE: Tuesday, August 23, 2016 REFERENCE NO.: C-27883
LOG NAME: 20FW SOUTH PAVEMENT RELACEMENT (FY15-CD9)
SUBJECT:
Authorize Execution of a Contract with McClendon Construction Company, Inc., in the Amount of
$3,079,663.55 for Round 1 of the Council District 9 Street Repair and Reconstruction Program and Near
Southside Medical District Water and Sanitary Sewer Main Improvements, Provide for Additional Project
Costs and Contingencies for a Project Construction Cost of$3,434,853.55, Adopt Appropriation
Ordinances and Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future
Debt (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official intent to reimburse with proceeds of future debt for the
Near Southside Medical District Water and Sanitary Sewer Main Improvements Project;
2. Authorize the transfer of$147,600.00 from the Sanitary Sewer Main 503 and Main 257, Part 1 project to
supplement the funding of the Near Southside Medical District Water and Sanitary Sewer Mains
Improvements project;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
amount of$147,600.00 in the Near Southside Medical District Water and Sanitary Sewer Mains
Improvement Project of the Water/Sewer DPN Fund and reduce fund appropriation in the Sanitary Sewer
Main 503 and Main 257, Part 1 project by the same amount;
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Sewer Capital Projects Fund in the amount of$2,000.00 from available funds for the purpose of funding
Near Southside Medical District Water and Sanitary Sewer Mains Improvements;
5. Authorize an amendment to the Fiscal Year 2016 Stormwater Capital Improvement Plan to increase
appropriations in the amount of$25,000.00 for drainage improvements in the Council District 9 Street
Repair and Reconstruction Program by decreasing appropriations for Victoria Emerywood/North Riverside
project (C-02272) in the same amount;
6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
amount of$25,000 in the Council District 9 street repair and reconstruction program for drainage
improvements and decrease estimated receipts and appropriations in the Victoria Emerywood/North
Riverside project by the same amount within the Stormwater Capital Project— Bond Fund; and
7. Authorize the execution of a contract with McClendon Construction Company, Inc., in the amount of
$3,079,663.55 for Round 1 of the Council District 9 Street Repair and Reconstruction Program and Near
Southside Medical District Water and Sanitary Sewer Main Improvements Project.
Logname: 20FW SOUTH PAVEMENT RELACEMENT (FY15-CD9) Page 1 of 5
DISCUSSION:
On August 5, 2014, (M&C C-26906) the City Council Authorized a Resolution executing a funding
agreement with Fort Worth South, Inc., in the amount of$10,000,000.00 for Council District 9 Street
Repair and Reconstruction Program. The Program leveraged funding in an amount up to $5,000,000.00
from the Tax Increment Reinvestment Zone No. 4 (Southside TIF) over four years. The City of Fort Worth
matched the funds in an amount up to $1,000,000.00 using 2014 Bond Program-Street Improvements
Funds and 2014 Bond Program-Grant Matches Funds in an amount up to $4,000,000.00.
On March 3, 2016 and March 10, 2016 the combined Council District 9 Street Repair and Reconstruction
Program Round 1 and Near Southside Medical District Water and Sanitary Sewer Main Improvements
project was advertised for bids in the Fort Worth Star-Telegram.am. On April 31, 2016, bids were received as
shown in table below.
Bidders mount
iMcClendon Construction Co., Inc. $3,079,663.55
;Jackson Construction Ltd. $31401,154.47
Project management, inspection, material testing and contingency amounts for Water Department
management, inspection and material testing amount up to $129,900.00 (water: $108,600.00; sewer:
$21,300.00) and contingency amount up to $43,800.00 (water: $35,500.00; sewer: $8,300.00). TPW
project management, inspection, material testing and contingency amount up to $181,490.00.
This project requires additional funding for Water and Sanitary Sewer, in the amount of$147,500.00 for
cost overruns as well related project management and contingency costs. Staff recommends these
additional funds be transferred from the Revenue Bond Funds for the Construction of Junction Structures
on Sanitary Sewer Main 503 and Sanitary Sewer Main 257, Part 1. The project scope and schedule for the
construction phase will change based on the results of the ongoing flow study investigations in the Village
Creek basin. Both projects are included in the Fiscal Year 2016-2020 Five-Year Capital Improvement
Plan, adopted February 2, 2016 (M&C G-18662). Additional $2,000.00 is required for Staff charges in the
Sewer Capital Projects Fund.
Construction of the Council District 9 Street Repair and Reconstruction Program and Near Southside
Medical District Water and Sanitary Sewer Main Improvements is one component of the overall project
that includes Engineering, Project Management, Real Property Acquisitions, material testing, Inspection,
and contingencies. Total overall project budget is $3,837,878.55.
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 is 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
Logname: 20FW SOUTH PAVEMENT RELACEMENT (FY15-CD9) Page 2 of 5
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). The 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.
The City Council adopted the 2016 Stormwater Capital Improvement Plan on December 15, 2015 (M&C
G-18625). The adopted plan authorized funding of$1,100,000.00 for Roadway Crossings and Channel
Improvements for project C-02272 for drainage improvements at Victoria Emerywood/North Riverside.
Based on updated cost estimates, the North Riverside project budget can be reduced by $25,000.00 and
made available for funding drainage improvements for Council District 9 street repair and reconstruction in
the amount of$25,000.00, under project C-02375.
A portion of this project will include 2014 Bond Funds. Available resources within the General Fund will be
used to provide interim financing for these expenses until debt is issued. Once debt associated with this
project is sold, bond proceeds will reimburse the General Fund in accordance with the statement
expressing official intent to reimburse, that was adopted as part of the ordinance canvassing the bond
election (Ordinance No. 21241-05-2014) and the subsequent ordinance authorizing debt in 2016
(Ordinance No. 22216-05-2016).
Construction is anticipated to commence in September 2016, with a contract time of 280 calendar days,
the construction is estimated to be complete by the end of July 2017.
Upon completion of this capital project, it is anticipated that there will be no impact on Transportation and
Public Works annual operation budget and no impact to the Water Departments operating budget.
M/WBE OFFICE: McClendon Construction Co., Inc., is in compliance with the City's BDE Ordinance by
committing to four percent MBE participation and documenting good faith effort. McClendon Construction
Co., Inc. identified several areas subcontracting and supplier opportunities. However, the MBE's contacted
in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this
project is 12 percent.
The project is located in COUNCIL DISTRICT 9, Mapsco 76H, 76M, 77E and 77J.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that 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 2014 Bond Program Fund, the Specially Funded Projects Fund, the Stormwater Capital Projects Fund,
and the Water Capital Projects Fund and the Sewer Capital Projects Fund. The Fiscal Year 2016 Water
and Sewer Operating Budget includes appropriations of$26,300,046.00 for the purpose of providing Pay-
As-You-Go funding for Sewer Capital Projects. After this the transfer for Fiscal Year 2016, the balance will
be $7,292,741.00 The Director of Finance also certifies that the appropriation is available as directed by
(M&C G-18375) in the 2017 Water and Sewer Revenue Bonds Capital Project Fund for the Fort Worth
South Pavement Replacement and Near Southside Medical District Water and Sanitary Sewer Main
Logname: 20FW SOUTH PAVEMENT RELACEMENT (FY15-CD9) Page 3 of 5
Improvements Project.
Additional
Existing Proposed
Description Appropriations AppropM&Cns Per [Appropriation
CD9 Street Repair Street $191,100.00 $0.00 $191,000.00
Rehab Fund 34014
CD9 Street Repair Fund 1,500,000.00 $0.00 $150,000.00
39007 F—$
CD9 Street Repair Fund $0.00 $25,000.00 $25,000.00
59651
Near Southside Medical 1,291,000.00 $147,600.00 $1,438,600.00
District 56005 i
Near Southside Medical F $106,692.00 $0.00 $106,692.00
District 59601
Near Southside Medical $ 17,473.00 $2,000.00 $19,473.00
District 59607
-F CD9 Street Repair Grant $1,000,000.00 $0.00 $1,000,000.00
Match Fund 34014
Project Total $106,265.00 F— $174,600.00 F $4,280,865.00
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
2&3)560051 0600430 4956010 CO2445 C01780 2016 $147,600.00
&3 560051 0600430 5740010 CO2445 C01780 2016 $147,600.00
596071 0700430 4956001 CO2445 C01730 2016 $2,000.00
59607 0700430 5110101 CO2445 CO2445 2016 $2,000.00
59651 0200431 4905420 CO2375 002880 2016 $25,000.0
59651 0200431 CO2375 002880 2016 $25,000.00
FROM
Fund Department Accouni Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
56005 0600430 5740010 CO2445 C01780 2016 1,182,564.06
56005 0700430 5740010 CO2445 C01780 2016 $82,200.0
34014 0200431 5740010 CO2375 CO2480 2016 14010199 $191,100.00
7 34014 0200431 5740010 CO2375 CO2180 2016 14010211 $744,984.74
56005 0700430 5900015 C01226 C01780 2016 $147,600.00
59651 0200431 4905420 CO2272 002880 2016 $25,000.00
59651 0200431 5330500 CO2272 002880 2016 $25,000.00
59651 0200431 5740010 CO2375 002880 1 2016 $25,000.00
39007 0200431 57400101 CO2375 I CO21801 2016 1 $853,814.75
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Logname: 20FW SOUTH PAVEMENT RELACEMENT(FY15-CD9) Page 4 of 5
Originating Department Head: Douglas Wiersig (7801)
Additional Information Contact: Najib Fares (7802)
Logname: 20FW SOUTH PAVEMENT RELACEMENT(FY15-CD9) Page 5 of 5