HomeMy WebLinkAboutResolution 4808-08-2017 A Resolution
NO. 4808-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
REPAINTING OF THE SEMINARY HILL ELEVATED STORAGE TANK AND
THE WILLOW SPRINGS 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 Repainting of the Seminary
Hill Elevated Storage Tank (EST) and the Willow Springs EST 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 $350,000.00 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
ORTWO T
Resolution 4808-08-2017
reimbursed is paid.
Adopted this 1St day of August, 2017.
ATTEST:
1
By: ------ — --------
Ronald P. Gonzales, Assistant City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/1/2017 Ordinance No. 22807-08-2017 & Resolution No
4808-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: **C-28305
LOG NAME: 60SHESANDWSCETREHAB-DUNHAME
SUBJECT:
Authorize Execution of an Engineering Agreement with Dunham Engineering, Inc., in the Amount of
$200,000.00 for Engineering Services for the Repair and Repainting of the Seminary Hill Elevated Storage
Tank and Interior Coating Replacement of the Willow Springs Elevated Storage Tank, Provide for
Additional Project Costs, Adopt Reimbursement Resolution Expressing Official Intent to Reimburse
Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 4
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 repair and repainting of the Seminary Hill Elevated Storage Tank and interior coating
replacement of the Willow Springs 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$280,000.00; and
3. Authorize execution of an engineering Agreement with Dunham Engineering, Inc., in the amount of
$200,000.00 for engineering services for repair and repainting of the Seminary Hill Elevated Storage
Tank and interior coating replacement of the Willow Springs Elevated Storage Tank. (City Project
No. 100886)
DISCUSSION:
The Seminary Hill 2 Million Gallon (2 MG) Elevated Storage Tank, located at 2700 W. Gambrell Street,
was built in 1947 and last rehabilitated in 1999. The Willow Springs Composite 2 MG Elevated Tank,
located at 2200 Avondale Haslet Road, was built in 2010. Both tanks provide potable water storage and
fire protection for areas in South and far North West Fort Worth respectively. The existing coating system
for both tanks is in need of replacement as required to protect the structural steel from erosion.
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 Dunham Engineering, Inc., to provide the necessary design services for the Seminary Hill
Elevated Storage Tank - Repair and Repainting. When a partial coating system failure occurred on the
interior of the Willow Springs Composite Elevated Storage Tank, this work was added to the 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
Logname: 60SHESANDWSCETREHAB-DUNHAME Page 1 of 3
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 Fund or any fund providing temporary cash to fund the project.
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.
This engineering Agreement is a portion of the overall project that includes project management,
inspection, contingencies and construction cost with an overall budget of$2,280,000.00.
Design is anticipated to begin in September 2017 and be complete by February 2018. Construction is
anticipated to begin in June 2018 and be complete by March 2019.
In addition to the engineering fee, $80,000.00 is needed for inspection, project management and project
contingencies. This project will have no impact on the Water Department's operating budget when
complete.
MMBE OFFICE— Dunham Engineering, Inc., is in compliance with the City's BDE Ordinance by
committing to 12 percent SBE participation. The City's goal on this project is 12 percent.
This project is located in COUNCIL DISTRICTS 4 and 7
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 and Sewer DPN Fund for the
Seminary Hill Elevated Storage Tank and the Willow Springs Composite Elevated tank Project as depicted
below:
Fund [ Existing FAdditional Project
Appropriations Appropriations Total*
Water & Sewer DPN $0.00 $280,000.00 $280,000.00
Fund 56011
Project Total $0.00 $280,000.00 1$280,000.00
* Numbers rounded for presentation purposes
Logname: 60SHESANDWSCETREHAB-DL NHAME 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 # mount
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: Dena Johnson (7866)
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