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HomeMy WebLinkAboutResolution 4775-05-2017 A Resolution NO. 4775-05-2017 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK WATER RECLAMATION FACILITY SERVICE WATERLINE SYSTEM IMPROVEMENTS 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 Village Creek Water Reclamation Facility Service Waterline System Improvements (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 $900,000.00 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 2"d day of May, 2017. �,.. R#� � } o�aoaacvao,�i,ZI��1 ATTEST: G aicys a°o�•i{�I�' Q~ ,+U $ By —__— _ lf"�pTom'0O 000 a J. K y er, i Secretary �? aaooa0b ,y � 4a oRTWORTFH a , 'r J z�► _ CGRJQ�'G� m � !Ats L = O I— LL w N w E- :' s a UJ � 4 W Q �' z �l i+ ul -' Vcn E LTJ o - I!!{N� a LL w J N gd W N a u m 3 u8i !S U � �1 Vw rig cy U lima ._�C? I w � ��� � • �� ci /p t, �, i f9 c 7.1 �1 M rOZ 0 9 L, ALDal eF5 t Na' i o• it 'Q ©® .. QT7G0. w �� �:;OL ' ��• m '• o f 8 A 8 2,3: E . 41, vE _ :7 aelmma F p ..oz 4r�+. ;r V36' ~. t + 3r _ ^ASA+ r b City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/2/2017 - Resolution No. 4775-05-2017 DATE: Tuesday, May 2, 2017 REFERENCE NO.: **C-28214 LOG NAME: 60VCWRF WATERLINE IMP - CONSTRUCTION SUBJECT: Authorize Execution of a Construction Contract with Felix Construction Company in the Amount of $562,201.00 for the Village Creek Water Reclamation Facility Service Waterline System Improvements and Provide for Project Costs and Contingencies for a Total Amount of$612,201.00 and Adopt Reimbursement Resolution (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a contract in the amount of$562,201.00 with Felix Construction Company for the Village Creek Water Reclamation Facility Service Waterline System Improvements; and 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Project. DISCUSSION: On July 22, 2014, Mayor and Council Communication (M&C C-26875), the City Council authorized the execution of a General Engineering Support Services Contract with JQ Infrastructure, LLC, in the amount of$500,000.00 for General Engineering Services on Water and Wastewater projects with two renewal options (City Secretary No. 45845). On March 14, 2016, a Task Order 012 - Design of Service Waterline Improvements at Village Creek Water Reclamation Facility was issued under this support contract. On October 25, 2016, (M&C G-18866)was approved to appropriate initial funding for this project. The project was advertised for bids on February 16, 2017 and February 23, 2017, in the Fort Worth Star- Telegram. On March 16, 2017 the following bids were received: BIDDER BID AMOUNT CONTRACT Felix Construction Company $562,201.00 90 Calendar Days BSK USA $569,247.00 FWCC - Ft Worth Civil Constructors, LLC $609,851.00 North Texas Contracting $795,710.00 Mountain Cascade of Texas $935,613.00 In addition to the contract cost, the amount of$40,000.00 is provided for project contingencies and $10,000.00 is provided for inspection, testing, project management and Staff time. This project will have no impact on the Water Department's operating budget when complete. Logname: 60VCWRF WATERLINE IMP - CONSTRUCTION Page I of 3 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 2017-2021 Five Year Capital Improvement Plan on January 24, 2017, (M&C G-18927). 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. The construction is anticipated to commence in June 2017 and is estimated to be complete in six months. The total cost of this project is estimated to be $784,201.00. M/WBE OFFICE - Felix Construction Company is in compliance with the City's BIDE Ordinance by committing to19 percent MBE participation. The City's MBE goal on this project is six percent. The Village Creek Water Reclamation Facility serves the entire City and is located in COUNCIL DISTRICT 5, Mapsco 90J, 90Q, and 90S. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that the Water& Wastewater Capital Improvement Plan includes an appropriation of$1,750,000.00 for programmable WW Treatment Plants Project P00007. Of the original appropriation, the amount of$1,315,799.00 is available to fund individual projects in the Water& Sewer DPN Fund. Additional Existing Programmable [Fund Appropriations (Appropriations Project Total* ater & Sewer DPN Fund 56011 w $350,000.00 $434,201.00 $784,201.00 Project Total $350,000.00 $434,2-0-1--.0-01 $784,201.00 *Numbers are rounded for presentation purposes. Logname: 60VCWRF WATERLINE IMP - CONSTRUCTION Page 2 of 3 FUND IDENTIFIERS (FIDs): TO _ Fund De artment p Ac coun Project Program ctivity Budget Reference # Amoun ID ID Year Chartfeld 2 FROM r7dl Department ccoun Project Program ctivity Budget Reference # mown Year _ (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (6122) Originating Department Head: John Carman (8246) Additional Information Contact: Farida Goderya (8214) Logname: 60VCWRF WATERLINE IMP - CONSTRUCTION Page 3 of 3