HomeMy WebLinkAboutResolution 4680-09-2016 A Resolution
NO. 4680-09-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CULTURAL
DISTRICT / WILL ROGERS AREA WATER AND SANITARY SEWER
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 Cultural District / Will Rogers Area
Water and Sanitary Sewer 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 $800,000.00 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. 4aoo��1UT4,4tt
Adopted this 20 day of September, 2016.
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FID table for M&C: 60CDWRA3-KHA
Fund identifiers (FIDs)
TO
Department Project Budget Reference#
Fund ID Account ID Pro ram Activity Year Chartfield Amount
— — 2
2)59601 0600430 4956001 1 C01468 2016 $13,100.00
2)59601 0600430 5110101 C01468 2016 $13,100.00
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield Q
3)56005 0600430 5330500 C01468 C01731 2016 $151,734.00
3)56005 0600430 5330500 C01468 C01732 2016 $303,468.00
3))56005 0600430 5330500 C01468 C01733 2016 $50,578.00
3)56005 0700430 5330500 C01468 C01731 2016 $19,296.00
3)56005 0700430 5330500 C01468 C01732 2016 $38,592.00
3)56005 70700430 5330500 C01468 C01733 2016 $6,432.00
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/20/2016 - Ordinance No. 22430-09-2016 & Resolution
No. 4680-09-2016
DATE: Tuesday, September 20, 2016 REFERENCE NO.: **C-27934
LOG NAME: 60CDWRA3-KHA
SUBJECT:
Authorize Execution of Amendment No. 3 to City Secretary Contract No. 39975, an Engineering Agreement
with Kimley-Horn and Associates, Inc., in the Amount of$570,100.00 for a Revised Contract Amount of
$1,950,415.00 for the Cultural District/Will Rogers Area Water and Sanitary Sewer Improvement Project,
Provide for Additional Project Management and Inspection Costs, Adopt Resolution Expressing Official
Intent to Reimburse Expenditures with Proceeds of the 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 the Cultural District/Will Rogers Area Water and Sanitary Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water Capital Fund in the amount of$13,100.00 from available funds; and
3. Authorize execution of Amendment No. 3 to City Secretary Contract No. 39975, an Engineering
Agreement with Kimley-Horn and Associates, Inc., in the amount of$570,100.00 for a revised contract in
the amount of$1,950,415.00 for the Cultural District/Will Rogers Area Water and Sanitary Sewer
Improvements project.
DISCUSSION:
On February 9, 2010, Mayor and Council Communication (M&C C-24094) City Council authorized an
Engineering Agreement with Kimley-Horn and Associates, Inc., in the amount of$1,072,250.00 for the
Cultural District/Will Rogers Area Water and Sanitary Sewer Improvements. The Agreement was
subsequently revised by two amendments totaling $308,065.00 as follows: Amendment No. 1 in the
amount of$46,995.00 administratively authorized on March 17, 2014 and Amendment No. 2 in the
amount of$261,070.00 authorized August 5, 2014 (M&C C-26903).
Amendment No. 3 will provide additional engineering services for the replacement of water and sanitary
sewer lines in the vicinity of the Will Rogers Memorial Coliseum and Cultural District Areas. These
improvements are necessary to accommodate the increased water and sanitary sewer demands from
various building expansions. This amendment also includes design of water and sanitary sewer
improvements for the existing Will Rogers facilities, as well as replacing and upsizing water mains with
maintenance problems on Montgomery Street (Harley Avenue to I1-1-30), Margaret Street (Linden Avenue
to Collinwood Avenue) and Crestline Road (South University Drive to Forest Park Boulevard).
The proposed scope of services consists of the following:
Logname: 60CDWRA3-KHA Page 1 of 3
• Preparation of plans and specifications
• Survey services
• Geotechnical engineering
• Cathodic protection
• Permitting
• ROW/Easement services
• Construction Phase services.
M/WBE OFFICE: Kimley-Horn and Associates, Inc., is in compliance with City's M/WBE Ordinance by
committing to an additional three percent M/WBE participation on this Amendment No. 3.
In addition to the contract cost, $124,900.00 (Water: $71,800.00; Sewer $40,000.00, TPW: $13,100.00) is
required for project management and inspection.
Engineering for the Cultural District/Will Rogers Area Water and Sanitary Sewer Improvements is one
component of the overall project that includes project management, utility coordination, construction,
material testing, inspection, and contingencies. The overall project budget is $12,042,580.00.
This project will have no impact on the Water Department's operating budget when complete.
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 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 Direct
Purchase Note 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 7, Mapsco 75H, 75M, 76E and 76F.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current capital budget, as appropriated, of
the Water Capital Fund. The Fiscal Year 2016 Water Operating budget includes appropriations of
$26,068,353.00 for the purpose of providing Pay-As-You-Go funding for Water Capital Projects. After
Logname: 60CDWRA3-KHA Page 2 of 3
this transfer for Fiscal Year 2016, the balance will be $5,919,202.00. In addition the Director of Finance
certifies that the appropriation is available as directed by M&C G-18375 in the Water/Sewer Bond 2016
Fund for the Cultural District/Will Rogers Area Water and Sanitary Sewer Improvement Project and that
upon approval of the above recommendation, funds are as depicted in the table below by fund:
FUND Current Proposed Total*
i I Appropriations (Appropriations
Water Capital Fund $6,351,411.001 $13,100.00 $6,364,511.00
59601
F ewer Capital Fund $3,210,652.00 $0.00 $3,210,652.00
9607
Water and Sewer Bond $1,772,417.00 $0.00 $1,772,417.00
2015A 56007
Water/Sewer Bond 2016 $695,000.00 $0.00 $695,000.00
Fund
Project Total $12,029,480.00 $13,100.00 $12,042,580.00
*Amounts rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
r7l�partment ccoun Project Program ctivity Budget Reference # Arn
ID ID Year t (Chartfield 2)
FROM _
Fund Department Account: Project ProgramActivity Budget FReference # moun
ID ID Year Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: John Kasavich (8480)
Logname: 60CDWRA3-KHA Page 3 of 3