HomeMy WebLinkAboutResolution 4854-10-2017 A Resolution
NO. 4854-10-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR VILLAGE
CREEK DRAINAGE BASIN MAIN 325 PARALLEL RELIEF SEWER 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 Village Creek Drainage Basin
Main 325 Parallel Relief Sewer 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 $1,650,000.00 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.
FoRTWORTH
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 17th day of October, 2017.
ATTEST. SOF FORT
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SRonald P. Gonzales, Assistant City Secretary l
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/17/2017 Ordinance No. 22970-10-2,0.17 &A,90
No. 4854-10-2017'
DATE: Tuesday, October 17, 2017 REFERENCE NO.: C-28441
LOG NAME: 60M325P1-MOUNTAINCASCADE
SUBJECT:
Authorize Execution of a Contract with Mountain Cascade of Texas, LLC, in the Amount of$1,215,510.00
for Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 1, Provide for Project Costs,
Materials Testing and Contingencies for a Total Project Amount of$1,431,441.00, 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 Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 1 Project;
2. Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and
Sewer DPN Fund in the amount of$1,431,441.00; and
3. Authorize execution of a contract with Mountain Cascade of Texas, LLC, in the amount of
$1,215,510.00 for Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 1. City Project No.
01333.
DISCUSSION:
This project provides for the installation of a 48-inch sanitary sewer main beginning from a point on Oak
Grove South located 1600 feet North of the Rendon-Crowley Road E./Oak Grove Road S. intersection,
then north easterly 3,100 feet. The proposed sewer main is necessary for additional wastewater
conveyance capacity to meet current demands and future growth in the southeast part of Fort Worth and
the wholesale customer cities of Burleson and Crowley.
This project was advertised for bids on June 15, 2017 and June 22, 2017 in the Fort Worth Star-Telegram.
On August 3, 2017 the following bids were received:
Bidder Amount Time of
Completion
Mountain Cascade of Texas, LLC $1,215,510.00 170 Calendar Days
S.J. Louis Construction of Texas, $1,367,533.00
Ltd. 1$
Condie Construction Company $1,399,816.00
Logname: 60M325Pl-MOLTNTAINCASCADE Page I of 3
Circle C Construction Company $1,452,077.00 1
Ark Contracting Services $1,885,898.00
[Thalle Construction Company $1,905,506.22
In addition to the contract amount, $155,155.00 is required for project management, material testing and
inspection and $60,776.00 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 2018-2022 Five Year Capital Improvement
Plan on September 26, 2017. 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 November 2017 and be completed by May 2018. The overall
project budget is estimated to be $12,500,000.00. 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— Mountain Cascade of Texas, LLC, is in compliance with City's BDE Ordinance by
committing to seven percent MBE participation. The City's MBE goal on this project is five percent.
The project is located in COUNCIL DISTRICT 8, Mapsco 120E and 120F.
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 and Sanitary Sewer DPN Funds includes authority of$100,000,000.00 for the purpose of
providing interim funding for Water and Sewer Funding for Capital Projects. After this transfer, the balance
will be $89,697,952.00. Funding for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer
Project as depicted in the table below:
Logname: 60M325P1-M0UNTAINCASCADE Page 2 of 3
FUND Existing Additional Project
Appropriations Appropriations Total*
2017A Water and
Sewer Bond Fund $2,275,012.00 $0.00 $2,275,012.00
56011
Water and Sewer $0.00 $1,431,441.00 $1,431,441.00
DPN Fund 56014
Clean Water SRF $60,835.00 $0.00 $60,835.00
Fund 59602
Sewer Capital Fund - $197,500.00 $0.00 $197,500.00
Legacy 59607
Project Total $2,533,347.00 $1,431,441.00 3,964,788.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # �mountl
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID i Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Orininating Department Head: Kara Shuror (8819)
Additional Information Contact: John R. Kasavich (8480)
Logname: 60M325P1-MOLTNTAINCASCADE Page 3 of 3