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HomeMy WebLinkAboutResolution 4748-02-2017 A Resolution NO.4748-02-2017 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ROLLING HILLS WATER TREATMENT PLANT HIGH SERVICE PUMP STATION SWITCHGEAR REPLACEMENT 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 Rolling Hills Water Treatment Plant High Service Pump station Switchgear Replacement 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 $500,000.00 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 21" day of February, 2017. �,�a IFORr X44 0009 aoo©d�I �h ATTEST: 04 o° o��F�Y�¢y 0 0�Y' 0 e o0 �d By: � % oQ oa t' .4y Mary . ayser, City Secretary ORTWO RUT HIJ Foy wow Rolling Hills WTP High Service Pump Station(HSPS) Switch Gear Replacement "''M City Project# 02315 - OK few , 4 , High Service Pump Station �I F " (HSPS) 1 �, r � (HS # d " A x • gip. �•- R ue' r �' .. — V- 1 Rolling HiM Wate k l m � EA . � Rolling Hills Treatment r _ '- Plant Location . r z` , O J5 0,3 0.6 ` t4AD-1983 StateRane_Texas_[4orth_Centml_FiPS_4<�. :hch Squads 500 feet t..% Miles -- City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 2/21/2017 - Ordinance No. 22615-02-2017 & Resolution No. 4748-02-2017 DATE: Tuesday, February 21, 2017 REFERENCE NO.: ""C-28122 LOG NAME: 60RHWTP HSPS ONCOR AGMT SUBSTATION UPGRADE SUBJECT: Authorize Execution of a Service Agreement with Oncor Electric Delivery Company LLC, in an Amount Not to Exceed $268,639.00 for the Upgrade of Oncor Substation at Rolling Hills Water Treatment Plant and Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of the Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future Water/Sewer debt for the Rolling Hills Water Treatment Plant High Service Pump Station Switchgear Replacement Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of$268,639.00 from available funds; and 3. Authorize the execution of a Service Agreement with Oncor Electric Delivery Company LLC, in an amount not to exceed $268,639.00 for the upgrade of Oncor Substation at Rolling Hills Water Treatment Plant (RHWTP). DISCUSSION: On December 2, 2014, Mayor and Council Communication (M&C C-27097), the City Council authorized an Engineering Agreement in the amount of$426,460.00 with CP&Y, Inc., to prepare plans and specifications for the Rolling Hills Water Treatment Plant (RHWTP) High Service Pump Station (HSPS) Switchgear Replacement and Electrical Improvements Project. On June 14, 2016, (M&C C-27766), the City Council authorized additional funding in the amount of$99,000.00 for additional staff time and engineering contingencies. On August 2, 2016, (M&C C-27848) the City Council authorized a construction contract with Texsun Electrical Contractors, Inc., in the amount $5,500,600.00 for this project. During the RHWTP HSPS design, the Engineer determined that the on-site Oncor Electrical Substation needed to be upgraded. A Service Agreement with Oncor Electric Delivery Company, LLC, is necessary to make the necessary upgrade/addition to the existing Oncor Substation at RHWTP. The Oncor upgrade facilities include, but not limited to, the following: Two 4.16 kV outdoor metering cubicles; two structural mounted outdoor revenue metering enclosures; one structural mounted telemetry enclosure; one outdoor demarcation junction box; all complete with associated conduits, cables and related ancillaries. Oncor will also test and commission the Upgraded Facilities. Logname: 60RHWTP HSPS ONCOR AGMT SUBSTATION UPGRADE Page I of 3 This Project is scheduled for completion around April 2018. Overall, this project will not increase the operational and maintenance budget for the RHWTP associated with this HSPS switchgear or Oncor substation. 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. M/WBE OFFICE: A waiver for the goal for MBE/SBE subcontracting requirements was requested by the Water Department and approved by the M/WBE Office in accordance with the M/WBE or BDE Ordinance, because the purchase of goods or services is from source(s)where subcontracting or supplier opportunities are negligible. This project serves many Districts and is located in COUNCIL DISTRICT 8, Mapsco 92S. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that funds are available in the current capital budget, as appropriated, of the Water Fund and that prior to an expenditure being made, the Water Department has the responsibility to validate the availability of funds. FUND Existing Additional Future Project Appropriations;Appropriations IjAppropriationsTotal* Water- ICapital $528,960.001 $0.00 $0.00 $528,960.00 Projects (Fund 59601 Water/Sewer! Bond 2016 j $0.00 $0.00{$6,000,000.00 {Fund 56005 $6,000,000.00 i ! i Water and $0.00 $268,639.001 $0.00 $268,639.00 Sewer DPN i F Logname: 60RHWTP HSPS ONCOR AGMT SUBSTATION UPGRADE Page 2 of 3 JFund 56011 Project_____ Total 1$6,528,960.00 $268,639.001 $0.00 $6,797,599.00 FUND IDENTIFIERS (FIDs): TO 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: Farida Goderya (8214) Logname: 60RHWTP HSPS ONCOR AGMT SUBSTATION UPGRADE Page 3 of 3