HomeMy WebLinkAboutResolution 4744-02-2017 A Resolution
NO. 4744-02-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
SANITARY SEWER MAIN 257 AND 325 MIDDLE AND UPPER VILLAGE CREEK
PARALLEL RELIEF ALIGNMENT STUDY AND DESIGN 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 Sanitary Sewer Main 257 and
325 Middle and Upper Village Creek Parallel Relief Alignment Study and Design
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 $2,500,000.00 for the purpose of paying the
ORT W ORT
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 141h day of February, 2017.
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Mary J. ay r, City Secretary aaQ n° q�a
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/14/2017 - Ordinance No. 22602-02-2017& Resolution
No. 4744-02-2017 `
DATE: Tuesday, February 14, 2017 REFERENCE NO.: **C-28110
LOG NAME: 60M325A5-DEC
SUBJECT:
Authorize Execution of Amendment No. 5 to City Secretary Contract No. 28006, an Engineering Agreement
with Dannenbaum Engineering Corporation, in the Amount of$149,012.00, for Sanitary Sewer Main 257
and 325 Middle and Upper Village Creek Parallel Relief Alignment Study and Design from Hemphill Street
to West Rendon Crowley Road Project and Provide for Property Acquisition and Project Management
Costs for a Revised Contract Amount of$1,469,778.28, and Adopt a Reimbursement Resolution
Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinance (COUNCIL DISTRICTS 6 AND 8)
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 Sanitary Sewer Main 257 and 325 Middle and Upper Village Creek Parallel Relief
Alignment Study and Design from Hemphill Street to West Rendon Crowley Road Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of$2,275,012.00 from available funds for the purpose of
property acquisitions and Staff project management costs; and
3. Authorize execution of Amendment No. 5 to City Secretary Contract No. 28006 with Dannenbaum
Engineering Corporation, in the amount of$149,012.00 for a total revised contract in the amount of
$1,469,778.28 for additional design and engineering services for the Sanitary Sewer Main 257 and 325
Middle and Upper Village Creek Parallel Relief Alignment Study and Design from Hemphill Street to West
Rendon Crowley Road Project (City Project No. C01333).
DISCUSSION:
On July 30, 2002, Mayor and Council Communication (M&C C-19172) the City Council authorized an
Engineering Agreement with Dannenbaum Engineering Corporation, in the amount of$721,899.76 for the
Sanitary Sewer Main 257 and 325 Middle and Upper Village Creek Parallel Relief Alignment Study and
Design from Hemphill Street to West Rendon Crowley Road.
The Agreement was revised by four previous amendments totaling $598,866.52, as follows:
Amendment No. 1 in the amount of$111,800.52 authorized January 20, 2004 (M&C C-19936)
Amendment No. 2 in the amount of$329,406.00 authorized November 27, 2007 (M&C C-22535)
Logname: 60M325A5-DEC Page 1 of 4
Amendment No. 3 in the amount of$96,825.00 authorized June 9, 2009 (M&C C-23578); and
Amendment No. 4 in the amount of$60,835.00 authorized March 22, 2011 (M&C C-24794).
Amendment No. 5 will provide additional engineering services for the design of a portion of Main 325
crossing Oncor property and TXDOT ROW in IH-35W to conform with their standards for utility crossings.
The proposed scope of services consists of: Plan preparation, design survey, geotechnical engineering,
environmental assessment, permitting and ROW/easement services.
In addition to the amendment amount, $2,126,000.00 is required for project management, and real
property acquisitions.
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.
Engineering for the Sanitary Sewer Main 257 and 325 Middle and Upper Village Creek Parallel Relief
Alignment Study and Design 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 $12,500,000.00. Design is expected to be completed by August
2017. Construction is anticipated to commence in January 2018 with construction of all phases to be
completed by December 2019.
This project will have no impact on the Water Department's operating budget when complete.
M/WBE OFFICE: Dannenbaum Engineering Corporation agrees to maintain its initial M/WBE commitment
of 28 percent that it made on the original agreement and extend and maintain that same M/WBE
commitment of 28 percent to all prior amendments up to and inclusive of this Amendment No. 5.
Therefore, Dannenbaum Engineering Corporation remains in compliance with the City's M/WBE
Ordinance and attests to its commitment by its signature on the Acceptance of Previous M/WBE
Commitment form executed by an authorized representative of its company.
The project is located in COUNCIL DISTRICTS 6 and 8, Mapsco 119E, and 119F.
Logname: 60M325A5-DEC Page 2 of 4
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 for the Sanitary
Sewer Main 257 and 325 Middle and Upper Village Creek Parallel Relief Project, from Hemphill Street to
West Rendon Crowley Road. Appropriations are as depicted in the table below by fund:
Fund Existing Additional Appropriations Project
Appropriations Total*
Water &
Sewer $2,275,012.00 $2,275,012.00
DPN Fund $0.00
56011
Sewer _
Capital
Fund - $1,179,107.00
Legacy $0.00 $1,179,107.00
59607 -
B14103
Clean
Water SRF i $60,835.00
Fund - $0.00 $60,835.00
59602
Sewer
Capital
Fund - $197,500.00 $0.00 $197,500.00
Legacy
59607 -
C01 333
Project $1,437,442.00 $2,275,012.00 $3,712,454.00
Total
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # Amoun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID IA ID Year Chartfield 2
CERTIFICATIONS:
Logname: 60M325A5-DEC Page 3 of 4
Jay Chapa (5804)
Qdgkiating Department Head: John Carman (8246)
Additional Information Contact: John Kasavich (8480)
Logname: 60M325A5-DEC Page 4 of 4