HomeMy WebLinkAboutResolution 4807-08-2017 A Resolution
NO. 4807-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE REPAIR
AND REPAINTING OF THE ONE MILLION GALLON CALMONT ELEVATED
STORAGE TANK 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 Repair and Repainting of the
One Million Gallon Calmont Elevated Storage Tank 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 $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
ORT WO T
Resolution 4807-08-2017
reimbursed is paid.
Adopted this 1St day of August, 2017.
ATTEST:
By: / `7''1
Ronald P. Gonzales, Assistan City Secretary
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COPYRUS T2MICRYOFFORTWORTH FORT WORTH
UHAUTHORQED REPRODUCTION ISA PHI ALRE RESENIOAON LAVds C a I m o nt Elevated Tank
THIS DATA IS TO HE USED FOR AGRAPHICAL S DATA PRODUCE FOR
THE ACCURACY ISHOTTO BE TAKE{!/REGISTERED
DATA PRODUCED FOR WATER
SURVEYOR
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5/23/2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: ,Approved on 8/1/2017 - Ordinance No. 22806-08-2017 & Resolution No.!..
4807-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: **C-28304
LOG NAME: 60REPAINTING OF 1 MG CALMONT EST
SUBJECT:
Authorize Execution of an Engineering Agreement with Kleinfelder, Inc., in the Amount of$150,840.00 for
Engineering Services for the Repair and Repainting of the One Million Gallon Calmont Elevated Storage
Tank, Adopt Approriation Ordinance and Reimbursement Resolution (COUNCIL DISTRICT 3)
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 the repainting of the Repair and Repainting of the one million gallon Calmont Elevated
Storage Tank;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of$225,840.00; and
3. Authorize execution of an Engineering Agreement with Kleinfelder, Inc., in Amount of$150,840.00, for
Engineering Services Required for Repair and Repainting of one million gallon Calmont Elevated Storage
Tank.
DISCUSSION:
The Calmont Elevated Tank, located at 6600 Calmont Avenue, was built in 1948 and last repainted in
1999. The existing coating system has reached the end of its useful life and needs to be removed and
replaced.
In February 2017, a Request for Qualifications (RFQ) was issued for several Water Department Projects
including the Potable Water Storage Tank Rehabilitation Project. In March 2017 a total of six proposals
were received from engineering consultants for the tank rehabilitation project. A Staff selection committee
recommended Kleinfelder, Inc., for the Repair and Repainting of the one million gallon Calmont
Elevated Storage Tank Repaint and Rehabilitation Project.
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
Logname: 60REPAINTING OF I MG CALMONT EST Page I of 3
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 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.
The Engineering Agreement being approved is only a portion of the project that includes project
management, inspection, contingencies and construction cost with an overall budget for this project of
$1,225,840.00.
Engineering services is anticipated to commence in August 2017 and be complete by January 2018, with
construction starting in March 2018 to be complete by June 2018.
In addition to the Engineering Agreement funding, $75,000.00 is needed for inspection, project
management and project contingencies. This project will have no impact on the Water Department's
operating budget when complete.
M/WBE OFFICE — Kleinfelder, Inc., is in compliance with the City's BDE Ordinance by committing to nine
percent SBE participation. The City's goal on this project is nine percent.
This project is located in COUNCIL DISTRICT 3.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and adoption of the
attached appropriation ordinance, funds will be available in the Water/Sewer DPN funds for
the Repainting of the one million gallon Calmont Elevated Storage Tank project as depicted below:
FUND Existing Additional Project
Appropriations Appropriations Total*
Water/Sewer DPN Fund $0.00 $225,840.00 $225,840.00
56011
Project Total $0.00 $225,840.00 $225,840.00
* Numbers rounded for presentation purposes.
Logname: 60REPAINTING OF I MG CALMONT EST Page 2 of 3
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: Kara Shuror (8819)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60REPAINTING OF I MG CALMONT EST Page 3 of 3