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Home My WebLink AboutResolution 4784-05-2017 A Resolution NO. 4784-05-2017 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE II 48-INCH WATER MAIN TRENCH BACKFILL REPLACEMENT AND PAVEMENT REPAIR 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 Northside II 48-Inch Water Main Trench Backfill Replacement and Pavement Repair Project (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 $1,750,000.00 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. 4be`vu�:q Adopted this 16`h day 01 Ivia" 2017. ��*0 �9,,°000.0 p.�s 0ATTWMa OYBY: ¢ o� Qp r4j— y er, City Secretary ¢Q °00000aa4 ,Ay ORT WORT A A r • MIN 1� O'>if! �111iAge+lYYYi Q� #�;�liYY�lYIraY�Y■}�r�1IWYNM��• �,['�� IN E1A� .� tom' • - - Ai Mki IM tlwv Nut PION I WWI 40"m LAW mown hay Wric +•1st �� daf�� Iw.ac �il'-��`�� s ��e�� d * � � e - , , axe •.�,!' �� fall r _ ZA u � LIAO WU :.s %IWO tbwe '—Ih.rl .:: d dp RTWOfoRTH City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/16/2017 - Ordinance No. 22730-05-2017 $ Resolution No. 4784-05-2017 DATE: Tuesday, May 16, 2017 REFERENCE NO.: C-28248 LOG NAME: 60NSI 148TRPAVREPAI R-SJ LOUIS SUBJECT: Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd., in the Amount of $1,366,498.00 for Northside 1148- Inch Water Main Trench Backfill Replacement and Pavement Repair Located on High School Drive from Timberland Boulevard to North of Ridgeview Circle, Provide for Project Costs, Testing and Contingencies for a Total Project Amount of$1,533,498.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 7) RECOMMENDATION: 1. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of future debt for entire the Northside II 48-inch Water Main Phase I, Part 1 Project; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of$1,533,498.00; 3. Authorize execution of a contract with S.J. Louis Construction of Texas, Ltd., in the amount of $1,366,498.00 for the Northside II 48-inch Water Main Trench Backfill Replacement and Pavement Repair. (City Project No.100840) DISCUSSION: This project provides for the removal and replacement of the existing native material backfill for the installed 48-inch diameter water main located on High School Drive from Timberland Boulevard to north of Ridgeview Circle. Subsequent to installation of the 48-inch water main on High School Drive in late 2015, it was determined that ground water from the two ponds located east and west of High school Drive, had leaked into the trench for the 48-inch water main and saturated the backfill material and the pavement sub-base to the extent that the repaired concrete pavement has developed significant cracks. It is necessary to remove and replace the existing backfill with a non-permeable material (with cementatious flowable fill) and reconstruct the pavement in order to restore the affected concrete pavement segment back to the condition that existed prior to installation of the 48-inch water main. This project was advertised for bids on April 6, 2017 and April 13, 2017 in the Fort Worth Star-Telegram. On April 27, 2017 the following bids were received: Bidder [Amount Time of Completion Logname: 60NSII48TRPAVREPAIR-SJLOUIS Page I of 3 S_J. Louis Construction of ($1,366,498.00 90 Calendar Texas, Ltd. Days _ Thalle Construction $1,944,342.00 Company, Inc. In addition to the contract cost, $122,000.00 is required for project management, material testing and inspection and $45,000.00 is provided for project contingency. 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 2016-2020 Five Year Capital Improvement Plan on February 2, 2016, Mayor and Council Communication (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 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. Construction is anticipated to commence in July 2017 with a contract time of 60 calendar days, the project is estimated to be complete by the end of August 2017. This project will have no impact on the Water Department's Operating Budget when complete. M/WBE OFFICE - S.J. Louis Construction of Texas, Ltd., is in compliance with City's BDE Ordinance by committing to eight percent MBE participation. The City's MBE goal on this project is six percent. The project is located in COUNCIL DISTRICT 7, Mapsco 22 B and 22F. 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 Northside II 48-inch Water Main, Trench Backfill Replacement and Pavement Repair Project as depicted in the table below. Fund Existing Additional Project Total* Appropriations Appropriations Water & Sewer DPN Logname: 60NSII48TRPAVREPAIR-SJLOUIS Page 2 of 3 Fund ( $0.00 I $1,533,498.00 1$1,533,498.00 156011 Froject Total $0.00 $1,533,498.00 $1,533,498.00 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Programs 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: Roberto C. Sauceda (2387) Logname: 60NSII48TRPAVREPAIR-SJLOUIS Page 3 of 3