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Home My WebLink AboutResolution 4852-09-2017 A Resolution NO. 4852-09-2017 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR SANITARY SEWER MAIN 257 UPPER AND MIDDLE VILLAGE CREEK PARALLEL RELIEF MAIN 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 Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main 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 $9,250,000.00 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. ORT WO T 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. Adopted this 26th day of September, 2017. ATTEST: OF F0/? By -- �; Mary J. Kayser, y ecretary * T •�S � ORT WO T MAYOR AND COUNCIL COMMUNICATION MAP 60M257P1 -SJLOUIS LON'STEPHENSON RDS toe �' ♦.t r�N it •ti 'A. _ .' � • _ _ 4 1 k • F}alai -} y TAA;n�Y _ t♦-_ f * - ,yet ' �DE�-,W DppLE RD _ EVERMAN KEN�ZIRN6LD DRN h dam_ .P� e� } ./ r .. , . BLUEBELL :, G1R'lr` DR f, a <. .w d r E ENO N RD a --- ., 4 im '- ..'fro• ,.aR°` `,: SHELBY RD ot y f 4 . ' T WP ! 0. � t � • 0 " � �, T ,t '� 4,t, :WILSON RD FORTWORTH �. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/26/2017 - Ordinance No. 22946-09-2017 7 Resolution No 4852-09-2017 DATE: Tuesday, September 26, 2017 REFERENCE NO.: C-28412 LOG NAME: 60M257P1-SJLOUIS SUBJECT: Authorize Execution of a Contract with S.J. Louis Construction of Texas Ltd., in the Amount of $8,125,899.00 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1, Provide for Project Costs, Materials Testing and Contingencies for a Total Project Amount of $8,870,607.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT.8) 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 the Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1 Project; 2. Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and Sewer DPN Fund in the amount of$8,870,607.00; and 3. Authorize execution of a contract with S.J. Louis Construction of Texas Ltd., Inc., in the amount of $8,125,899.00 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1. (City Project No. 01226) DISCUSSION: Due to growth in the southeast part of Fort Worth and the wholesale customer cities of Burleson and Crowley, additional wastewater capacity is required to meet the anticipated demand. The proposed sanitary sewer main will begin north of Everman-Kennedale-Burleson Road and east of Anglin Drive and end South of Shelby Road. The alignment generally follows Village Creek for approximately 11,300 linear feet. This project was advertised for bids on June 8, 2017 and June 15, 2017 in the Fort Worth Star-Telegram. On July 27, 2017 the following bids were received: Bidder JArnount Time of Completion S.J. Louis Construction of Texas, Ltd. $8,125,899.00 450 Calendar Days Thalle Construction Company $8,491,950.40 Oscar Renda Contracting, Inc. $9,198,289.50 Circle C Construction Company $9,281,410.00 Logname: 60M257PI-SJLOUIS Page 1 of 3 !Mountain Cascade of Texas, LLC 1$9,299,192.00 JArk Construction Services $9,976,343.00 Bar Constructors, Inc. $10,406,353.60 In addition to the contract amount, $582,190.00 is required for project management, material testing and inspection and $162,518.00 is provided for project contingency. 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 2017-2021 Five Year Capital Improvement Plan on January 24, 2017, Mayor and Council Communication (M&C G-18927). 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. 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. Construction is anticipated to commence in November 2017 and be completed by February 2019. The overall project budget is estimated to be $12,103,166.00. This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will have no impact on the Water Department's Operating Budget when complete. M/WBE OFFICE— S.J. Louis Construction of Texas, Ltd., is in compliance with City's BDE Ordinance by committing to five percent MBE participation. The City's MBE goal on this project is five percent. The project is located in COUNCIL DISTRICT 8. 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& Sewer DPN Fund for this project. The Water& Sewer DPN Fund includes authority of$100,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $91,129,393.00. Funding for the Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1 Project as depicted in the table below. Logname: 60M257P1-SJL0UIS Page 2 of 3 Fund F Existing Additional project Total* Appropriations Appropriations j 2016 Water and Sewer Bond Fund $1,1681700.00 $0.00 $1,168,700.00 56005 Clean Water SRF $442,172.00 $0.00 $442,172.00 Fund 59602 t wer Capital Fund - $1,621,687.00 $0.00 $1,621,687.00 gacy 59607 Water & Sewer DPN $0.00 $8,870,607.00 $8,870,607.00 Fund 56014 Project Total $3,232,559.00 $8,870,607.00 $12,103,166.00 * 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: John Kasavich (8480) Logname: 60M257PI-SJLOUIS Page 3 of 3