HomeMy WebLinkAboutResolution 4741-02-2017 A Resolution
NO. 4741-02-2017
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 II 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 7`h day of February. 2017.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/7/2017 - Ordinance No. 22595-02-2017, 22597-02-2017 &
Resolution No. 4741-02-2017
DATE: Tuesday, February 7, 2017 REFERENCE NO.: C-28106
LOG NAME: 60NSIl48WPH2P1-SJLOUIS
SUBJECT:
Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd., in the Amount of
$9,882,130.00 for Northside II Forty-Eight Inch Water Main Phase II, Part 1 from Heritage Trace
Parkway/Harmon Road Intersection to Wagley Robertson Road, Provide for Project Costs, Testing and
Contingencies for Part 1 for a Total Project Amount of$10,958,030.00, Adopt Resolution Expressing
Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation
Ordinances (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, Part 1 Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of$10,948,030.00;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water Capital Fund in the amount of$10,000.00; and
4. Authorize the execution of a contract with S.J. Louis Construction of Texas, Ltd., in the amount of
$9,882,130.00 for the Northside II 48-inch Water Main Phase II, Part 1.
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/Harmon Road Intersection to Wagley
Robertson Road. This project will also allow for the installation of a 36-inch water main on Darnell
Street form Van Cliburn Way to North University Drive and eight-inch sanitary sewer main along
Keller Hicks from 3230 Keller Hicks Road west 900 feet.
• Part 2, 48-inch water main from Wagley Robertson Road to Parkview Hills
Lane. (Under Construction)
• Part 3, 48-inch water main from Parkview Hills Lane to Longhorn Road. (Under Construction)
T *..�ma• QnwC114RWPH2P1-SJLOUIS Page 1 of 4
This project, Part 1, was advertised for bids on November 17, 2016 and November 24, 2016 in the Fort
Worth Star-Telegram. On December 15, 2016 the following bids were received:
Bidder F Amount Time of
FCompletion
S.J. Louis Construction of Texas, Ltd. $9,882,130.00 620 Calendar
Days
Thalle Construction Company, Inc. $9,939,936.53
William J. Shultz, Inc. d/b/a Circle C $9,982,016.00
Construction Company
KAJACS Construction, Inc. $10,454,175.00
Oscar Renda Contracting, Inc. $11,412,480.00
Jackson Construction, Ltd. $14,361,702.00
In addition to the contract cost, $556,700.00 (Water: $452,000; Sewer: $104,700.00) is required for project
management, material testing and inspection and $519,200.00 (Water: $474,900; Sewer: $44,300.00) is
provided for project contingency.
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, Mayor and Council Communication (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 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 April 2017 with a contract time of 620 calendar days, the
project is estimated to be complete by the end of December 2018. The total amount for the Northside II
48-Inch Water Main Phase II project is $32,758,846.00
This project will have no impact on the Water Department's Operating Budget when complete.
M/ BE 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.
Logname: 60NSII48WPH2P1-SJL0UIS Page 2 of 4
The project is located in COUNCIL DISTRICT 7, Mapsco 20X, 20Z, 21W, 22J, 22K, 33D, 3413, 34E and
76A.
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 Water/Sewer DPN Fund and the Water
Capital Fund for the Northside II 48-inch Water Main, Phase 11, and Part I Improvement Project. The Fiscal
Year 2017 water Operating Fund budget includes appropriations of$21,060,000.00 for the purpose of
providing Pay-As-You-Go funding for water capital projects. After this transfer for Fiscal Year 2017, the
balance will be $15,912,232.00.
Appropriations for the Northside 1148-inch Water Main, Phase 11 Improvement Project are as depicted in
the table below
Fund Existing Additional project Total*
Appropriations Appropriations
Water &
Sewer Bond $1,680,500.00 $0.00 $1,680,500.00
2015A Fund
- 56007
Water & i
Sewer DPN $20,108,711.00 $10,948,030.00 $31,056,741.00.
Fund -
56011
s
Water
Capital $21,605.00 $10,000.00 $31,605.00
Fund 59601
Project $21,810,816.00 ' $10,958,030.00 $32,768,846.00
Total
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDsj:
TO
Fund Department ccountl Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program yJ Budget Reference # 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: Roberto Sauceda (2387)
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