HomeMy WebLinkAboutResolution 4719-12-2016 A Resolution
NO. 4719-12-2016
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
NORTHSIDE IV 24-INCH WATER TRANSMISSION MAIN ALONG BOWMAN
ROBERTS ROAD FROM SANTA GERTRUDIS STREET TO HALTOM BAILY
BOSWELL ROAD 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 Northside IV 24-Inch Water
Transmission Main along Bowman Roberts Road from Santa Gertrudis Street to
Haltom Baily Boswell Road 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 $600,000.00 for the purpose of paying the
aggregate costs of the Project.
FORTWORTH
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 13th day of December, 2016.
IFORP
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ATTEST:
v ego
By:
Mary J. ser, ity Secretary
ORT WO T
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/13/2016 - Ordinance No. 22548-12-2016, 22549-12-2016
& Resolution No. 4719-12-2016
DATE: Tuesday, December 13, 2016 REFERENCE NO.: **C-28046
LOG NAME: 60NSIV24INWM - FNI
SUBJECT:
Authorize Acceptance of Funds in the Amount of$110,745.00 from Centex Homes for its Share of Design
Costs Related to the Northside IV 24-inch Water Transmission Main Along Bowman Roberts Road from
Santa Gertrudis Street to Haltom Bailey Boswell Road, Authorize Execution of an Engineering Agreement
with Freese and Nichols, Inc., in the Amount of$386,311.00 for Engineering and Design Services and
Provide for Staff Costs, Property Acquisition, Utility Coordination and Material Testing for a Design Phase
Amount of$589,000, Adopt a Resolution Expressing Official Intent to Reimburse Expenditures with
Proceeds of Future Debt for the Northside IV 24-Inch Water Transmission Main Along Bowman Roberts
Road from Santa Gertrudis Street to Haltom Bailey Boswell Road Project and Adopt Appropriation
Ordinances (COUNCIL DISTRICTS 2 and 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer Community Facilities Agreement Fund in the amount of$110,745.00 from available
funds;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of$478,255.00 from available funds;
3. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of
future debt for costs related to the Northside IV 24-Inch Water Transmission Main along Bowman Roberts
Road from Santa Gertrudis Street to Haltom Bailey Boswell Road Project; and
4. Authorize execution of an Engineering Agreement with Freese & Nichols, Inc., in the amount of
$386,311.00 for Northside IV 24-inch Water Transmission Main along Bowman Roberts Road from Santa
Gertrudis Street to Haltom Bailey Boswell Road.
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize the preparation of plans and specifications
for a 24-inch Water Transmission Main from the Eagle Mountain Water Treatment Plant along Bowman
Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road. The proposed water main is
the first phase of a 24-inch water Transmission main from the treatment plant to serve points in the
northern growth areas of the City.
The proposed scope of services includes design for the following:
- Hydro-pneumatic tank;
Logname: 60NSIV24INWM-FNI Pagel of 3
• Meter installation at the treatment plant;
• Transfer valve station with motorized valve and SCADA controls;
• Geotechnical investigation; and
• Traffic control.
Freese and Nichols, Inc., proposes to provide the necessary design services for a lump sum fee of
$386,311.00. Staff considers the proposed fee to be fair and reasonable for the scope of services
proposed.
In addition to the contract amount, $202,689.00 is required for project management, utility coordination,
property acquisition and material testing.
Engineering for the Northside IV 24-inch Water Transmission Main along Bowman Roberts Road Project
is one component of the overall project that includes project management, easement acquisition, utility
coordination, material testing, inspection, construction and contingencies. The overall project budget is
$4,500,000.00. Design is expected to start in January 2017 and be completed by June
2017. Construction is anticipated to commence in August 2017 and be completed by October 2018.
In accordance with the Developer Funding Agreement for Northside IV 24-inch Water Main Extension
Bowman-Roberts Road (City Secretary Contract No. 48320) between CENTEX HOMES and the City,
CENTEX HOMES will contribute $110,745.00 towards the engineering cost 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 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.
This project will have no impact on the Water Department's operating budget.
M/WBE OFFICE: Freese and Nichols, Inc., is in compliance with City's BDE Ordinance by committing to
15 percent SBE participation. The City's SBE goal on this project is 12 percent.
The project is located in COUNCIL DISTRICTS 2 and 7, Mapsco 32L, 32Q, 32U, 32V, 32Y and 32Z.
FISCAL INFORMATION / CERTIFICATION:
Logname: 60NSIV24INWM - FNI Page 2 of 3
attached appropriation ordinances, funds will be available in the current capital budget, as appropriated, of
the Water and Sewer Community Facilities Agreement Fund and the Water and Sewer DPN Fund.
Appropriations for Northside IV 24-inch Water Transmission Main along Bowman Roberts Road Project by
Fund will consist of the following:
Additional
FUND FExisting Appropriations Appropriations Project Total*
Water&Sewer Community Facilities
Agreement Fund 56008 $0.00 '$110,745.00 $110,745.00
Water&Sewer
DPN Fund 56011 $0.00 $478,255.00 $478,255.00
Project Total $0.00 $589,000.00 $589,000.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chart field 2
FROM _
Fund Department ccoun Project Program ctivity Budget Reference # ,Amoun
ID ID Year (Chartfiet 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Roberto C. Sauceda (2387)
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