HomeMy WebLinkAboutResolution 4773-05-2017 A Resolution
NO. 4773-05-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
WASTEWATER DIVERSION FROM EAST OF EAGLE MOUNTAIN LAKE DRAINAGE
BASIN TO BIG FOSSIL CREEK DRAINAGE BASIN AND LOW PRESSURE SEWER
SYSTEM TO SERVE THE SOUTH SHORE OF LAKE WORTH 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 Wastewater Diversion from East of Eagle
Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin and Low Pressure Sewer
System to Serve the South Shore of Lake Worth (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
$1,250,000.00 for the purpose of paying the aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No
obligations will be issued by the City in furtherance of this Statement after a date which is later
than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which
the property, with respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this
Statement more than three years after the date any expenditure which is to be reimbursed is
paid.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/2/2017 - Ordinance No. 22695-05-2017-$ Resolution No.
4773-05-2017
DATE: Tuesday, May 2, 2017 REFERENCE NO.: **C-28210
LOG NAME: 60DIVERLOWPA9 -APAI
SUBJECT:
Authorize Execution of Amendment No. 9 to City Secretary Contract No. 27615, an Engineering Agreement
with Alan Plummer Associates, Inc., in the Amount of$400,155.00, for Wastewater Diversion from East of
Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin and Low Pressure Sewer System
to Serve the South Shore of Lake Worth and provide for Project Management and Real Property
Acquisition Costs for a Revised Contract Amount of$1,999,419.16, Adopt a Reimbursement Resolution
Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinance (COUNCIL DISTRICTS 2 and 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 Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil
Creek Drainage Basin and Low Pressure Sewer System to Serve the South Shore of Lake Worth Project;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water/Sewer DPN Fund in the amount of $1,133,155.00 from available funds for the purpose of property
acquisitions and staff project management costs; and
3. Authorize execution of Amendment No. 9 to City Secretary Contract No. 27615 with Alan Plummer
Associates, Inc., in the amount of$400,155.00 for a total revised contract in the amount of$1,999,419.16
for additional design and engineering services for the Wastewater Diversion from East of Eagle Mountain
Lake Drainage Basin to Big Fossil Creek Drainage Basin and Low Pressure Sewer System to Serve the
South Shore of Lake Worth (City Project No. 01309).
DISCUSSION:
On March 26, 2002, Mayor and Council Communication (M&C C-19022) the City Council authorized an
Engineering Agreement with Alan Plummer Associates, Inc., in the amount of$958,152.00 for the
Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage
Basin and Low Pressure Sewer System to Serve the South Shore of Lake Worth project.
The Agreement was subsequently revised by eight previous amendments totaling $641,112.16, as
follows:
. Amendment No. 1 in the amount of$12,161.85 administratively authorized March 3, 2003.
. Amendment No. 2 in the amount of$23,411.00 administratively authorized July 17, 2003.
. Amendment No. 3 in the amount of$17,982.31 administratively authorized September 30, 2003.
Logname: 60DIVERLOWPA9 -APAI Page 1 of 3
• Amendment No. 4 in the amount of$7,700.00 administratively authorized January 26, 2004.
• Amendment No. 5 in the amount of$154,549.00 authorized November 2, 2004 (M&C C-20377).
• Amendment No. 6 in the amount of$286,777.00 authorized October 25, 2005 (M&C C-21106).
• Amendment No. 7 in the amount of$75,019.00 authorized January 9, 2007 (M&C C-21928).
• Amendment No. 8 in the amount of$63,512.00 authorized March 01, 2011 (M&C C-24751).
At the time the original agreement was executed, extensive proposed development east of the Eagle
Mountain Lake Area warranted the installation of the sewer force and gravity mains from the Dosier Creek
Sewer Lift Station to the existing Big Fossil Creek collector. However, the slowdown of the economy in
2008/2009 curtailed all proposed development in the identified area which led to staff placing the project
on hold and utilizing the construction funding on other projects. Recent on—going and pending
development in the area now necessitate the construction of the project to handle projected sewage flows.
Amendment No. 9 will allow for the project plans and specifications to be modified and updated to reflect
current city standards, current field conditions along with utility conflicts and current property ownerships.
The scope of services include easement preparation, alignment revisions, traffic control plans, design
survey, subsurface utility engineering and environment assessment.
Staff considers the amendment amount to be fair and reasonable for the scope of services proposed.
In addition to the amendment amount, $733,000.00 is required for project management, real property
acquisition and utility coordination.
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 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 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 Wastewater Diversion 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 $9,840,170.00. Design is expected to be completed by
December 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: Alan Plummer Associates, Inc., is in compliance with the City's M/WBE Ordinance by
Logname: 60DIVERLOWPA9 - APAI Page 2 of 3
committing to an additional 21 percent M/WBE participation on this Amendment No. 9. The City's M/WBE
goal on this Amendment 20 percent.
The project is located in COUNCIL DISTRICTS 2 and 7, Mapsco 32E, 32L, 32M, 33D, 33G, 33J,33K, 33L,
34A and 34B.
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 Wastewater
Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin and Low
Pressure Sewer System Project to Serve the South Shore of Lake Worth.
Appropriations are as depicted in the table below by fund:
Existing �-- Additional Project
Fund Appropriations Appropriations Total*
Water & Sewer. . __.._.. .
DPN Fund - $0.00
$1,133,155.00 $1,133,155.00
56011
Water Capital $5,206.85' $0.00� $5,206.85
Fund - 59601
Sewer Capital
Fund - Legacy - $232,000.00 $0.00 $232,000.00
59607
'Project Total $237,206.85[— $1,133,155.00 $1,370,361.85
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project �Programctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fundl 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: Walter Norwood (5026)
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