HomeMy WebLinkAboutResolution 4823-08-2017 A Resolution
NO. 4823-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR 2014 CIP
YEAR 3 CONTRACT 3, COMBINED STREET PAVING IMPROVEMENTS,
WATER AND SEWER MAIN REPLACEMENT 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 3
Combined Street Improvement, Water and Sewer Main Replacement 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 $1,500,000.00 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
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Resolution 4823-08-2017
reimbursed is paid.
Adopted this 1St day of August, 2017.
ATTEST:
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Rona d 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 - Resolution No.-4823-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28313
LOG NAME: 202014 CIP YEAR 3 CONTRACT 3-STABILE & WINN INC.
SUBJECT:
Authorize Execution of a Contract with Stabile and Winn, Inc. in the Amount of$2,835,968.90 for 2014
Capital Improvement Project Year 3 Contract No. 3, Combined Street Paving Improvements and Water and
Sanitary Sewer Main Replacements with a Total Project Amount of$3,382,871.00 and Adopt
Reimbursement Resolution (2014 BOND PROGRAM) (COUNCIL DISTRICT 2)
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. 3 Project; and
2. Authorize the execution of a contract with Stabile and Winn, Inc. in the amount of$2,835,968.90 for
2014 CIP Year 3 Contract No. 3, Combined Street Paving Improvements and Water and Sanitary
Sewer Main Replacement (City Project No. 02694).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize a construction contract for water, sanitary
sewer and paving improvements on approximately 2.58 lane miles on the streets listed below:
Street From ITo
Northeast Parkway JGreat Southwest Rondo Drive
Urban Drive Northeast Parkway N.E. Loop 820
The Transportation and Public Works Department's share on these improvements will be $2,051,165.00
which is available in the Street Improvement COs Residuals Fund of the 2014 CIP Year 3, Contract No. 3
Project (CO2694). The Water Department's share on this contract will be $1,331,706.00 is available in the
Water and Sewer DPN Fund of the project (CO2694).
The project was advertised for bid on April 20, 2017 and April 27, 2017 in the Fort Worth
Star-Telegram. On May 18, 2017, the following bids were received:
Bidder mount Time of Completion
Stabile & Winn, Inc. $2,835,968.90 300 Calendar Days
Logname: 202014 CIP YEAR 3 CONTRACT 3-STABILE WINN INC. Page 1 of 3
JLB Contracting, LLC 1 $2,915,828.721
McClendon Construction Company, Inc. $2,920,662.001
Jackson Construction Ltd. ($3,719,876.00
In addition to the contract amount, $405,104.10 (Water: $93,489.00; Sewer: $59,717.00; TPW:
$251,898.10) is required for project management, material testing and inspection and $141,798.00
(Water: $34,245.00; Sewer: $21,874.00; TPW: $85,679.00) is provided for project contingencies.
Construction is expected to start in September 2017 and be completed by July 2018. The sanitary sewer
component of this project is part of the Water Department's Sanitary Sewer Overflow Initiative Program.
A portion of the expenses associated with this project are 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 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: Stabile and Winn, Inc., is in compliance with the City's BDE Ordinance by committing to
three percent MBE participation and documenting good faith effort. Stabile and Winn, Inc. identified
several subcontracting and supplier opportunities. However, the MBE's contacted in the areas identified
did not submit the lowest bids. The City's MBE goal on this project is nine percent.
The project is located in COUNCIL DISTRICT 2, Mapsco 49K.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current capital budget as appropriated of
the 2014 Bond Program, 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
Logname: 202014 CIP YEAR 3 CONTRACT 3-STABILE VJNN INC. Page 2 of 3
programmable Street Maintenance Related Projects - P00006. After the funding of this M&C, the amount
of$167,244.00 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 3-STABILE WINN INC. Page 3 of 3