HomeMy WebLinkAboutResolution 4822-08-2017 A Resolution
NO. 4822-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE 2014 CIP
YEAR 3 CONTRACT 6 IMPROVEMENTS 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 2014 CIP Year 3 Contract 6
Improvements (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 $2,750,000.00 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.
ORTWO T
Resolution 4822-08-2017
Adopted this 1St day of August, 2017.
ATTEST:
Ronald P. Gonzales, Assistant City Secretary
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MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/1/2017 - Resolution No. 4822-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28312
LOG NAME: 202014 CIP YEAR 3 CONTRACT 6 ARK CONSTRUCTION SERVICES LLC
SUBJECT:
Authorize Execution of a Contract with ARK Contracting Services, LLC, in the Amount of$3,550,091.00 for
2014 Capital Improvement Project Year 3 Contract No. 6, Combined Street Paving Improvements and
Water and Sanitary Sewer Main Replacements With a Total Project Amount of$4,213,404.00 and Adopt
Reimbursement Resolution (2014 BOND PROGRAM) (COUNCIL DISTRICTS 5 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 water and sewer debt for the 2014 CIP Year 3, Contract No. 6 Project; and
2. Authorize the execution of a contract with ARK Construction Services, LLC, in the amount of
$3,550,091.00 for 2014 CIP Year 3 Contract No. 6, Combined Street Paving Improvements and
Water and Sanitary Sewer Main Replacement (City Project No. 02695).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize a construction contract for water, sanitary
sewer and paving improvements on approximately 3.89 lane miles, located in the Handley and Crestline
Area Neighborhoods, on the streets listed below:
Street JFrorn To
Hunter_Street Lancaster Avenue Church Street
Lumber StreetLancaster Avenue JChurch Street
McGee Street Craig Street N. Dead End
Routt Street _ Forest Avenue JMirns Street
Dexter Avenue Crestline Road JEldridge Street
Dexter Avenue ISanguinet Street Hulen Street
Pentecost Street JLaFayette Avenue Bryce Avenue
Kenley Street JIDexter Avenue JCarnp Bowie Boulevard
Pavement Improvements on Hunter Street, Lumber Street, McGee Street and Routt Street are part of the
2014 Bond Program.
The Transportation and Public Works Department and the Water Department will share the cost of
pavement rehabilitation conducted on Dexter Avenue, Pentecost Street and Kenley Street.
Logname: 202014 CIP YEAR 3 CONTRACT 6 ARK CONSTRUCTION SERVICES LLC Page I of 3
Transportation and Public Works Department's share of these project costs will be $1,717,373.00 which is
available in the General Capital Projects, 2008 Bond Program Residuals and Street Improvement COs
Residuals Funds of the 2014 CIP Year 3, Contract No. 6 Project (CO2695). The Water Department's
share of this contract will be $2,496,031.00 which is available in the Water and Sewer Direct Purchase
Note (DPN) Fund of the project (CO2695).
The project was advertised for bid on April 6, 2017 and April 13, 2017 in the Fort Worth Star-Telegram.
On May 11, 2017, the following bids were received:
Bidder JAmount Time of Completion
ARK Construction Services, LLC F$3,550,091.001300 Calendar Days
Stabile & Winn, Inc. 1$3,604,800.00[
McClendon Construction Company, Inc. $3,806,104.00
In addition to the contract amount, $485,809.00 (Water: $175,395.00; Sewer: $111,760.00; TPW Bond:
$163,740.00; TPW Maint: $34,914.00) is required for project management, material testing and inspection
and $177,504.00 (Water: $64,247.00; Sewer: $40,937.00; TPW Bond: $55,694.00; TPW Maint:
$16,626.00) is provided for project contingencies.
Construction is expected to start in September 2017 and be completed by September 2018. The sanitary
sewer component of this project is part of the Water Department's Sanitary Sewer Overflow Initiative
Program.
The water and sewer portion of 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 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 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 project will have no impact on the Transportation and Public Works annual operation budget nor on
the Water Department's operating budget when completed.
M/WBE OFFICE: Ark Contracting Services, LLC, is in compliance with the City's BDE Ordinance by
committing to one percent MBE participation and documenting good faith effort. Ark Contracting Services,
LLC, identified several subcontracting and supplier opportunities. However, the MBE's contacted in the
Logname: 202014 CIP YEAR 3 CONTRACT 6 ARK CONSTRUCTION SERVICES LLC Page 2 of 3
areas identified did not respond or did not submit the lowest bids. The City' s MBE goal on this project is
12 percent.
The project is located in COUNCIL DISTRICTS 5 & 7, Mapsco 75F, 80E, 80J and 80K.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that funds are available in the current capital budget as appropriated of
the General Capital Projects, 2008 Bond Program Residuals, Street Improvement COs Residuals and
Water and Sewer DPN Funds. The Water& Wastewater Capital Improvement Plan includes an
appropriation of$5,991,100.00 for programmable Street Maintenance Related Projects (P00006). After
the funding of this M&C, the amount of$3,495,069.00 of the original appropriation will be available to fund
future individual projects.
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: Douglas Wiersig (7801)
Additional Information Contact: Mary Hanna (5565)
Logname: 202014 CIP YEAR 3 CONTRACT 6 ARK CONSTRUCTION SERVICES LLC Page 3 of 3