HomeMy WebLinkAboutResolution 4824-08-2017 A Resolution
NO. 4824-08-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR 2014 CIP
YEAR 3 CONTRACT 8, 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 8
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 $2,250,000.00 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 4824-08-2017
reimbursed is paid.
Adopted this 1St day of August, 2017.
ATTES :
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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 - Resolution No. 4824-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28314
LOG NAME: 202014 CIP YEAR 3 CONTRACT 8-WOODY CONTRACTORS
SUBJECT:
Authorize Execution of a Contract with Woody Contractors, Inc. in the Amount of$2,441,080.95 for 2014
CIP Year 3 Contract No. 8, Combined Street Paving Improvements and Water and Sanitary Sewer Main
Replacements with a Total Project Amount of$2,904,310.00 and Adopt Reimbursement Resolution (2014
BOND PROGRAM) (COUNCIL DISTRICTS 4 and 8)
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 8 Project; and
2. Authorize the execution of a contract with Woody Contractors, Inc. in the amount of$2,441,080.95 for
2014 CIP Year 3 Contract No. 8, Combined, Street Paving Improvements and Water and Sanitary
Sewer Main Replacement (City Project No. 02696).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize a construction contract for water, sanitary
sewer and paving improvements on approximately 1.41 lane miles, located west of the United Riverside
Neighborhood, on the streets listed below:
Street (-—From_ To Scope of Work
Galvez Avenue IDenair Street 113randies Street_Water, Paving
Galvez Avenue Brandies_Street_JGross Street_ _Water, ewer, Paving
E 4th Street Covelo Avenue IDenair Street Water, Paving
Transportation and Public Works Department's share on these improvements will be $908,191.00, which
is available in 2008 Bond Program Residuals and Street Improvement COs Residuals Funds of the 2014
CIP Year 3, Contract No. 8 Project (CO2696). The Water Department's share on this contract will be
$1,996,119.00, which is available in the Water& Sewer DPN Fund of the project (CO2696).
As part of the construction project for the CIP streets above, sanitary sewer replacement will be conducted
on the following alleys and easements with the Water Department being responsible for cost of
replacements:
Street From To—
I y between Chenault Covelo Avenue Brandies Street
�
Logname: 202014 CIP YEAR 3 CONTRACT 8-WOODY CONTRACTORS Page I of 3
Street and E. 411 Street I _I
Alley between E. 4th Covelo Avenue DeCosta Street
Street and Galvez Avenue
�Iley between Galvez r
air Street Brandies Street
venue and Lawnwood
Street _
Easement between E. 1St 270 Feet West of S. Harper Street
Street and Chenault Brandies Street
Street_ _
Easement between 200 Feet North of E. 1St Northerly 1,000 feet to
Cottonwood Street and N. Street TRE Right-of-Way
DeCosta Street _
Easement 100 feet_east of N. DeCosta Street Easterly 400 feet
E. 1 st Street
Easement West of N. E. 1 St Street Northerly 1,100 feet then
DeCosta Street Easterly 350 feet
The project was advertised for bid on April 27, 2017 and May 04, 2017 in the Fort Worth
Star—Telegram. On May 25, 2017, the following bids were received:
Bidder Amount ime of Completion
300 Calendar Days
oody Contractors, Inc. $2,441,080.95
r4RK Construction Services, LLC 2,812,403.00
FNH Construction, LLC 3,519,978.50 F
In addition to the contract amount, $341,175.00 (Water: $63,913.00; Sewer: $165,730.00; TPW:
$111,532.00) is required for project management, material testing and inspection and $122,054.00
(Water: $23,411.00; Sewer: $60,707.00; TPW: $37,936.00) 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
Logname: 202014 CIP YEAR 3 CONTRACT 8-WOODY CONTRACTORS Page 2 of 3
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: Woody Contractors, Inc., is in compliance with the City's BDE Ordinance by committing
to five percent MBE participation and documenting good faith effort. Woody Contractors, Inc. identified
several subcontracting and supplier opportunities. However, the MBE's contacted in the areas identified
did not respond or did not submit the lowest bids. The City's MBE goal on this project is eight percent.
The project is located in COUNCIL DISTRICTS 4 and 8, Mapsco 64S and 65Y.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current capital budget as appropriated of
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 award of the contract in this
M&C, the amount of$1,498,950.00 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 1D Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Douglas Wiersig (7801)
Additional Information Contact: Douglas Wiersig (7801)
Logname: 202014 CIP YEAR 3 CONTRACT 8-WOODY CONTRACTORS Page 3 of 3