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HomeMy WebLinkAboutResolution 4825-08-2017 A Resolution NO. 4825-08-2017 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE IV 24 INCH WATER TRANSMISSION MAIN ALONG BOWMAN ROBERTS ROAD 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 IV 24 inch Water Transmission Main along Bowman Roberts Road 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 $5,250,000.00 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 ORTWO T Resolution 4825-08-2017 reimbursed is paid. Adopted this Is' day of August, 2017. ATTEST: ----------------7=By: ------------ OF FpR� Ronald P. Gonzales, Assist t City Secretary �-� • �y �XAS ORT WORT MAYOR AND COUNCIL COMMUNICATION MAP 60NSIV24INWM-FNI ' i - •'��_ - THRESHINGDR DECKHOUSE RD PROPOSED NS4 TO pFANTAIL DR�,tj`7 . NS3 TRANSFER VALVE ' iCLIPPER LN � '•�� \ _ W,HALTOM"BAILEY,BOSWELL' gJi - � N :[u W:'OR EAGLE MT' - � �SAGINAW ISD �. _ m �it: � . - � BUSH.BUCK RUN, Q .._. ' =1 CA '''WJ,BOAZ RD - �__ 1 WJ BO Z RD - - — - - - -" -71 'ANG jw° —fir C'US-DR In ROBERTSONRDLu O ]BRA p ~gym ---, _ Z • � �<�i�, �1t�> jm { EAGLE MT. WATERw j TREATMENTca PLANT co SANT. ,GERTRUD_ISs � I FORTWORTH - ll(.ICfITI� ��l'� = PROPOSED METER - �trr�T11- i City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/1/2017 - Ordinance Nos. 22815-08-2017 and22816-08- 2017 & Resolution No. 4825-08-2017 DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28316 LOG NAME: 60NSIV24INWM CONDIE SUBJECT: Authorize Acceptance of Funds from CENTEX Homes, Inc., in the Amount of$738,300.00 to Provide Construction Costs for Northside IV 24-Inch Water Transmission Main Along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road, Authorize Execution of a Contract with Condie Construction Company, Inc., in the Amount of$4,859,595.00 for Northside IV 24-Inch Water Transmission Main Along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road, Provide for Project Costs, Testing and Contingencies for a Total Project Amount of$5,383,395.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinances (COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the acceptance of funds from CENTEX Homes, Inc., in the amount of$738,300.00; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer Community Facility Agreement Fund in the amount of$738,300.00; 3. Adopt the attached Resolution expressing official Intent to reimburse expenditures with proceeds of future debt for entire the Northside IV 24-inch Water Transmission Main Project; 4. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of$4,645,095.00; and 5. Authorize execution of a contract with Condie Construction Company, Inc., in the amount of $4,859,595.00 for the Northside IV 24-inch Water Transmission Main Along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road (City Project No.100277) DISCUSSION: This project provides for the 24-inch water transmission main from the Eagle Mountain Water Treatment Plant along Bowman Roberts Road from Santa Gertrudis Street to Haltom Bailey Boswell Road. The proposed water main is the first phase of a 24-inch water transmission main from the treatment plant to serve points in the northern growth areas of the City. The project also includes the installation of hydro- pneumatic tank, meter installation at the treatment plant and transfer value station with motorized valve and SCADA controls. In accordance with City Secretary Contact No. 48320 a Developer Funding Agreement between CENTEX Homes and the City of Fort Worth for Northside IV 24-inch water main extension Bowman-Roberts Road, CENTEX Homes is providing $738,300.00 for its share of the construction cost of this project. Logname: 60NSIV24INWM CONDIE Page 1 of 3 This project was advertised for bids on April 6, 2017 and April 13, 2017 in the Fort Worth Star-Telegram. On June 1, 2017 the following bids were received: Bidder mount ITime of Completion Condie Construction Company, Inc. $4,859,595.00 320 Calendar Days S.J. Louis Construction of Texas, Ltd. $5,145,815.00 Thalle Construction Company, Inc. $6,253,959.00 In addition to the contract cost, $280,800.00 is required for project management, material testing and inspection, $243,000.00 is provided for project contingency and $34,592.00 is provided to cover costs for Amendment No. 2 to allow for inspection of the hydro-pneumatic tank and the transfer valve station by the project design consultant: Freese and Nichols, Inc., Mayor and Council Communication (M&C C-28046) awarded the engineering/design of this project to Freese and Nichols, Inc., while also accepting funds from Centex Homes for its share of the design costs. 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, (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 September 2017 and be completed by July 2018. The overall project budget is estimated to be $5,973,000.00. This project will have no impact on the Water Department's Operating Budget when complete. M/WBE OFFICE—Condie Construction Company, Inc., is in compliance with City' s BDE Ordinance by committing to nine percent MBE participation. The City's MBE goal on this project is eight percent. The project is located in COUNCIL DISTRICT 7. FISCAL INFORMATION /CERTIFICATION: Logname: 60NSIV24INWM CONDIE Page 2 of 3 The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the Water and Sewer Community Facilities Agreement Fund and the Water& Sewer DPN Fund for the Northside IV 24-Inch Water Transmission Main Project as depicted in the table below. Existing Additional FUND Appropriations Appropriations Project Total* W&S Community Facilities $110,745.00 $738,300.00 _ $849,045.00 Agmt Fund 56008 0ater & Sewer DPN Fund $478,255.00 $4,645,095.00 $5,123,350.00 011 _ Project Total $589,000.00 $5,383,395.00 1$5,972,395.00 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): 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: Roberto C. Sauceda (8819) Logname: 60NSIV24INWM CONDIE Page 3 of 3 I 11`SECRETARY ACT Rte. .� DEVELOPER FUNDING AGREEMENT O"l?8 FOR �'JIyQ `u'h NORTHSIDE IV 24-INCH WATER MAIN EXTENSION BOWMAN-ROBERTS ROAD THIS AGREEMENT is by and between CENTEX HOMES, a Nevada general partnership, hereinafter referred to as "Developer", and the City of Fort Worth, hereinafter referred to as "City". WHEREAS, Developer, is the owner of land to be developed as a phase of a residential community commonly known as LakePointe, an Addition To The City Of Fort Worth, Tarrant County Texas, more fully described in Exhibit A attached hereto (the "Property"); and WHEREAS, in order to serve the Property, Developer is required to extend a 12-inch water line to the Property; and WHEREAS, City is planning to construct in phases the NS IV 24-inch water main from Eagle Mountain Water Treatment Plant to serve points in the City's northern growth areas. WHEREAS, in lieu of Developer constructing its 12-inch water main pursuant to a Community Facilities Agreement with City participation, City will instead construct Phase 1 of the Northside IV 24-inch Water Main Extension from the Eagle Mountain Water Treatment Plant at Bowman Roberts Road and Santa Gertrudis to Bailey Boswell Road, including a hydropneumatic tank, a pressure plane valve and related facilities and a stub out to provide water service to the Property (the "Facility") as a CIP project, with Developer to contribute funds equivalent to its proportionate share of the water main toward the City's construction of the Facility; and WHEREAS, as more fully set forth below, Developer will make a total contribution to the City of $849,045 for its share of the Facility and to expedite service to Developer's Property (the "Contribution") in the amounts of $110,745 for engineering costs (the "Engineering Cost Contribution") and $738,300 for construction costs (the "Construction Cost Contribution"); and WHEREAS, the estimated cost for the Facility is $400,000 for design and $5,240,000 for construction (See Opinion of Probable Construction Costs in Ex. B) inclusive of Facility features which are not the Developer's responsibility; NOW THEREFORE, in consideration of the above recitals, City and Developer, acting herein by and through their duly authorized representatives, do hereby agree as follows: 1. City, at City's cost (including Developer's Contribution), agrees to design and construct the Facility. The scope of the Facility is shown on Exhibit "B" attached hereto and incorporated herein. OFFICIAL RECORD CITY SECRETARY Dev Funding Agreement NS IV 24-Inch Water Main FT.NORTH,TSS_ Page 1 of 9 2. City shall design (or cause to be designed) the Facility upon receipt of Developer's Engineering Cost Contribution. Developer shall deliver its Engineering Cost Contribution to the City within 10 days after Developer receives from the City a fully-executed copy of this Agreement. If the City Council for the City fails to authorize the award of a contract for design of the Facility within 90 days after the effective date of this Agreement, City will immediately return the Engineering Cost Contribution to Developer. Failure by Developer to remit the Engineering Cost Contribution will delay award of the design contract. 3. Developer will pay the Construction Cost Contribution to the City within 10 days after the City notifies Developer in writing that the City has finalized and approved the construction plans for the Facility and the City has advertised for bids from contractors for the construction of the Facility. If within 180 days after receipt of Developer's Construction Cost Contribution the City Council for the City has not authorized the award of a contract for the construction of the Facility, the City will immediately return all of the Contribution to Developer. The City shall construct the Facility as soon as is reasonably practical after the design is completed. Failure by Developer to timely remit the Construction Cost Contribution will delay-award of the construction contract. 4. City agrees to design and construct the Facility in accordance with the following schedule. City will use its best reasonable efforts to comply with this schedule: Completion Deadline Task Six months after execution of the agreement. Design Completion Estimated April 1, 2017 One month after design completes. Advertisement Estimated May 1, 2017 Three months after bid Construction Award/Signing of General opening date. Estimated Contract August 1, 2017 Dev Funding Agreement NS IV 24-Inch Water Main Page 2 of 9 One month after Council Award for construction Construction Commencement contract. Estimated September 1, 2017 13 months after construction Facility Completion commencement. Estimated October 2, 2018 It is acknowledged and agreed by the parties that time is of the essence in the performance of this Agreement. From and after the execution of this Agreement and until completion of the Facility, City shall provide Developer with monthly progress reports. 5. Developer's Contribution to the City shall be the entire amount of Developer's obligation for its costs related to the Facility, such Improvements being necessitated in part by the additional water demands that the development of the Property will be placing upon on the Northside IV pressure plane. The Contribution fairly represents the Developer's proportional share of the cost of the Facility and shall not be refunded for any reason after award of the construction contract by the City. By accepting the Developer's Contribution pursuant to this Agreement, City agrees that the Developer and any successor owner of all or part of the Property will have no obligation whatsoever to pay any amounts in addition to the Developer's Contribution or take any further action with regard to the design or construction of the Facility even if(a) the actual costs to construct the Facility exceed the costs expected by the City as of the date of this Agreement, (b) the specifications, composition, or other characteristics of the Facility hereafter change for any reason, (c) a mistake has been made (mutual or unilateral) in computing the costs of the Facility or otherwise, or (d) the costs or scope of the Facility change for any reason. 6. The City will timely proceed with processing a Community Facilities Agreement and related engineering plan review for the development of the Property when submitted by Developer ("Property CFA"). As part of the Property CFA, City will allow the on-site subdivision paving, water, sewer and other public improvements ("Infrastructure") to proceed to construction while the Facility is being constructed. The City will issue acceptance of completed Infrastructure constructed, inspected and accepted in accordance with the Property CFA even though the construction of the Facility may not then be complete. City will issue building permits for subdivision lots within the Property with a finished floor elevation below 830' even though construction of the Facility may not then be complete and Developer Dev Funding Agreement NS IV 24-Inch Water Main Page 3 of 9 agrees it will not close the sale of any completed homes to a third party until the Facility is complete and accepted per City and TCEQ rules and regulations. 7. Developer shall be entitled to a refund of a portion of its Contribution pursuant to City Code Chapter 35, Article III, Division 4 et seq. 8. The City will use its best reasonable efforts to construct the Facility without undue delay, but City's performance of construction will be subject to delays caused by events of force majeure. 9. This Agreement shall be binding upon and inure to the benefit of the City and Developer and their respective successors and assigns. This Agreement, together with any exhibits attached hereto, constitutes the entire agreement between the parties hereto, and may not be amended except by a writing signed by all parties and dated subsequent to the date hereof. If Developer or any subsequent owner transfers the Property or any portion thereof prior to the performance of all obligations of the Developer hereunder, Developer or such transferring owner shall obtain an agreement from the transferee assuming the obligations of the transferring owner under this Agreement performable from and after the date of transfer. From and after the date of such transfer, the transferee shall be solely obligated under this Agreement, and the transferring owner shall have no further obligations under this Agreement, with respect to the Property or portion thereof transferred. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK Dev Funding Agreement NS IV 24-Inch Water Main Page 4 of 9 Executed by each party's duly designated and authorized representative, effective as of the date subscribed by the City's designated signatory. Developer: CENTEX HOMES, a Nevada general CITY OF FORT WORTH partnership, by Centex Real Estate Corporation, its managing general partner �— By: By; f Jesus J. Chapa Name: Assistant City Manager Title: vP QF 1 ANn nFVFI nPMFNT Date: Date: /O' Recommended By: Joh' arman 9irector, Water Department APPROVED AS TO FORM ATTEST- Am 41L Douglas W Black ary J. K y er Sr. Assistant City Attorney City Secretary OFFICIAL RECORD CITY SECRETARY Ft WORTH,TX Dev Funding Agreement NS IV 24-Inch Water Main Page 5 of 9 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Jesus J. Chapa, Assistant City Manager for the City of Fort Worth, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and that he executed the same as the act of said City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2016. W v,�. ml otary Public, State of Texas My Commission expires: LINDA M. HIRRIINGER Notary PubliC,State of Texas Comm.Expires 02-02-20)8 Notary ID 12414474.6 Dev Funding Agreement NS IV 24-Inch Water Main Page 6 of 9 STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, onthis day personally appeared ( ,�Ini �1yu-fit �J21� ltd QhIOCIPYYlAtof Centex Real Estate Corporation, a Nevada corporation, on behalf of said corporatio�, in its capacity as managing general partner of Centex Homes, a Nevada general partnership, on behalf of said general partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this �' j~j day of 2016. JESSICA HERNANDE2 No ry Pubic, Stat "Tes NotaryPublic,state of Texas My Commission Expires April 18, 2018 Commission expires: Dev Funding Agreement NS IV 24-Inch Water Main Page 7 of 9 Exhibit A The Property [Description of Centex's Property to be served to be inserted] Dev Funding Agreement NS IV 24-Inch Water Main Page 8 of 9 6tPaJ .ap F �O u Z� LLJ W Q C I o Y� ZW I O Z u ¢ N ° J Mw OS S E Lu ere a= r l\ = �^ c •C E /tel •� / '�/�A•• /, �.. K< i • oma/ p N /• �' \ � i 00 40 :1 U 6n Pip• .o r • , � ♦ ♦ \ ® • Exhibit B The f=acility [Description/diagram of Facility to be inserted, including showing plans and location for service to Centex's Property] Dev Funding Agreement NS IV 24-Inch Water Main Page 9 of 9 EXHIBIT B OPINION OF PROBABLE CONSTRUCTION COST Route Study Northside 4 24-Inch Water Main CITY OF FORT WORTH,TEXAS • • CHECKED BY DATE— FT1N14497 1 OLK pGS March 24 2018 ITEM r t DESCRIPTION QUANTITY UNIT UNITPRICE TOTALE 24-Inch Water Main $ 3,838,860.00 1 244n Waterline by Oen Cut 10,820 LP $ 140.00 $ 1,614,800:00 2 24-in Waterline Inside Casing 180 LF $ 180.00 $ 32,400.00 3 36-in Steel Casing by Other Than Open Cut 180 LF $ 720.00 $ 129,600.00 4 244n Gate Valve and Vault 10 EA $ 30,000.00 $ 300,000.00 5 2-In Combination Air Valve Assembly 6 EA $ 20,000.00 $ 120,000.00 6 84n Blow Off Assembly 61 EA $ 25,000.00 $ 150.000.00 7 Connection to Water Treatment Plant i EA $ 20 000.00 $ 20,000.00 8 Trench Safet 10,820 LF $ 2,00 $ 21,640.00 9 H dromulch 60,120 SY $ 1.00 $ 60,120,00 i 10 Storm Water Pollution Prevention Plan 1 LS $ 25,000,00 $ 25,000.00 11 Cathodic Protection 1 LS $ 140,000.00 $ 140,000.00 12 Traffic Control 6 MO 3,000,00 $ 18,000.00 I 13 Ashet t Pavement Repair 10,000 LF $ 65.00 $ 650,000.00 Surface Mill 26,700 SY $ 4,00 $ 108 800.00 i 15 V As halt Pvmt Type D 26,700 SY $ 15.00 $ 400,600.00 16 Pavement Sirlping 10,000 LF $ 5.00 $ 60,000,00 17 Misc.UllityAdjustments 1 LS $ 100,000.00 $ 100,000.00 f Flow Meter at EMWTP $ 40,000.00 16 Flow Meter 1 EA $ 20,000,00 $ 20,000.00 17 Piping for flow meter 1 LS $ 10,000.00 S 10,000,00 18 Electical E upment for flow meter 1 LS $ 10,000.00 $ 10,000.00 i Hydro-Pneumatic Tank $ 300 000.00 I 19 Hydro-Pneumatic Tank 1 LS $ 250,000.00 S 250,000.00 { 20 jElectical Equpment for Hydro-Pneumatic Tank 1 LS $ 50,000.00 $ 50,000.00 Pressure Plan Flow Transfer Station $ 188,200.00 21 Flow control valve 1 EA $ 30,000.00 $ $0,000.00 i 22 Flow Meter 1 EA $ 8,000.00 $ 8,000.00 23 12"Gate Valve 2 EA $ 3,500.00 $ 7,000.00 24 Connection to existing 36-inch NSIiI Water Line 1 EA $ 25,000.00 $ 26,000.00 25 12"Ductile Iron Pie 40 LF $ $0.00 $ 3,200.00 26 Valut f I EA $ 20,000.00 $ 20,000.00 27 Electical Power to site 1 LS $ 50 000.00 1$ 50,000,00 28 Electical E u ment for Flow Transfer Station 1 LS $ 25,000.00 $ 25,000.00 29 SCADA Antenna 1 LS S 20,000.00 $ 20,000.00 ,SUBI• • .00 CONTINGENCY MIS 873,500.00 TOTAL,OPCC5,241,000.00 Notes, 1.Easements may be required where Right-Of-Way for existing roads have not been dedicated. f C-IId 0y Freese end k-,,hoN,Inc. Job 10-FT%VI4497 Laa4-KWIPES_PUI,WSMbrki�gVlS4 ProJecl6`(Allach�nI E}115d R0�I06L�iy(6.Sxf l(m<d dated:Frida Se lember 16101617:25.23 NA ATTACHMENT E CITY OF FORT WORTH I. NORTHSIDE 4 Proposed NS4 to NS3 �',� .• 24-INCH WATER MAIN Transfer Valve (PROJECT 6N4) LEGEND Proposed Proposed Hydropneumatic Tank — 24"Water Line r ": -�a� .� •- Proposed Meter Water _., , � �• i,_'7���s'�?i� J -1 .� ' .��I � Treatment Plant iT Proposed Valve FORT WORTH,, t•f PI� �i, FREESE 1 tl :.•, ;(r -�y-► ,_ �' 91MINICHOLS '�• •lt . 1 411 I t J F }s a' '° xF i Proposed Northside IV - : .. 24" Water Line F. - 1 'f y i • � Water Treatment Plant - Proposed H dro neumatic Tank ' Proposed Meter y p 1 +,0 1000 connection to ''- ;SCALE IN FEET ti30" Water Line <° . Exisng