HomeMy WebLinkAboutResolution 4743-02-2017 A Resolution
NO. 4743-02-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
CAYLOR GROUND STORAGE TANK REHABILITATION AND REPAINT
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 Caylor Ground Storage Tank
Rehabilitation and Repaint 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 $1,150,000.00 for the purpose of paying the
aggregate costs of the Project.
ORTWO T
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 14th day of February, 2017.
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For general purpose only.Contact City of Fort Worth Transportation and Public Works at 817-392-8426 to get plan information for design or construction
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Date:8/1/2014 User Name:ccarter
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/14/2017 - Ordinance No. 22601-02-2017 & Resolution
No. 4743-02-2017
DATE: Tuesday, February 14, 2017 REFERENCE NO.: **C-28109
LOG NAME: 60CAYLOR GST REHAB AND REPAINT
SUBJECT:
Authorize Execution of a Contract with Utility Service Co., Inc., in the Amount of$852,435.00 for the Caylor
Ground Storage Tank Rehabilitation and Repaint Project, Provide for Project Management, Staff Time and
Contingencies for a Total Project Amount of$952,435.00, Adopt Reimbursement 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 the entire Caylor Ground Storage Tank Rehabilitation and Repaint Project; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer Direct Purchase Note Fund in the amount of$952,435.00; and
3. Authorize the execution of a contract with Utility Service Co., Inc., in the amount of$852,435.00 for the
Caylor Ground Storage Tank Rehabilitation and Repaint Project.
DISCUSSION:
The Caylor Five Million Gallon ground storage tank was built in 1988 and is located at 1300 North Caylor
Road. The tank provides potable water storage for customers in North Fort Worth. After 19 years of
service, the existing coating system is in need of replacement in order to protect the structural steel tank
from corrosion.
In December 2015, a Request for Qualifications was issued for several Water Department Projects
including the potable water Storage Tank Rehabilitation Project. In January 2016, a total of six proposals
were received from engineering consultants for the tank rehabilitation project. A staff selection committee
recommended Dunham Engineering, Inc., for the Caylor Ground Storage Tank Repaint and Rehabilitation
Project.
The project was advertised on November 10, 2016 and November 17, 2016, in the Fort Worth Star-
Telegram. On December 15, 2016, the following bids were received:
Logname: 60CAYLOR GST REHAB AND REPAINT Pagel of 3
BIDDER 113113 AMOUNT ICONTRACT
Utility Service Co., Inc. $ 852,435.00 150 calendar days
N.G. Painting, L.P. $ 871,200.00
A&M Construction Utilities, Inc. $ 875,300.00
Maguire Ir $ 894,450.00
J R Stelzer Company $ 924,750.00
L.C. United Painting Co., Inc. $1,106,715.00
TMI Coatings, Inc. $1,275,500.00
Classic Protective Coatings, Inc. $1,296,400.00
Central Tank Coating. $1,497,000.00
In addition to the contract cost, $50,000.00 is required for staff project management and $50,000.00 is
provided for project contingencies.
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 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. The total cost for this project
is estimated to be $1,127.435.00.
Construction is anticipated to commence in March 2017. With contract time of 150 Calendar days, the
Logname: 60CAYLOR GST REHAB AND REPAINT Page 2 of 3
construction is estimated to be completed by the end of August 2017.
MMJBE Office - Utility Service Co., Inc., is in compliance with the City's BIDE Ordinance by committing to
seven percent MBE participation. The City's MBE goal on this project is six percent.
The project is located within the City Limits COUNCIL DISTICT 7, Mapsco 23461.
FISCAL I114IFORMA T ION /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 for the Como GST
Rehabilitation and Repainting project, as depicted in the table below.
Fund Existing Additional Project
J Appropriations Appropriations
Water/Sewer Total*
Bond 2016 Fund $175,000.00 $0.00 $175,000.00
56005 'Numbers rounded for
Water & Sewer presentation purposes.
DPN Fund weer $0.00 $952,435.00 $952,435.00
Project Total F— $175,000.00 $952,435.00 $1,127,435.00
FUND IDENTIFIERS (FIDsl:
TO
F.
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity 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: Seiavash Mir (8404)
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