HomeMy WebLinkAboutResolution 4858-11-2017A Resolution
NO. 4858-11-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT MAIN 199 C-R
SANITARY SEWER MAIN PARALLEL INTERCEPTOR 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 Main 199 C-R Sanitary Sewer
Main Parallel Interceptor 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 l. The City reasonably expects debt, as one ol more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $1,000,000.00 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 t•han 18 months aftez the latex 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,
pursuant to this Statement more than three
expenditure which is to be reimbursed is paid.
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no obligation will be issued
years after the date any
Resolution No. 4858-11-2017
Adopted this 7th day of November, 2017.
ATTEST:
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Mary Kayser, Qity Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, November 7, 2017 REFERENCE NO.: **C-28461
�OG NAME: 6060M199CRPIWF6 - RJN
SUBJECT:
Authorize Execution of Engineering Agreement with RJN Group, Inc., in the Amount of $525,000.00 for M-
199 C-R Sanitary Sewer Main Parallel Interceptor, Provide for Staff Costs, Property Acquisition and Utility
Coordination for a Total Project Amount of $600,000.00, Adopt Resolution Expressing Officiai Intent to
Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 7)
RECOMMENDATION:
1. Adopt the attached resolution expressing official Intent to reimburse expenditures with proceeds of
future debt for the M-199 C-R Sanitary Sewer Main Parallel Interceptor Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of $600,000.00; and
3. Authorize execution an Engineering Agreement with RJN Group, Inc., in the amount of $525,000.00 for
the M-199 C-R Sanitary Sewer Main Parallel Interceptor Project (City Project No.100836).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize the preparation of plans and specifications
for the installation of M-199 C-R Sanitary Sewer Main Parallel Interceptor Project. Sanitary Sewer Main
199 C-R services the West Fork Basin. As part of the City's Wastewater System Master Plan, the need for
a 30-inch parallel relief line to M-199 C-R was identified.
RJN Group, Inc. proposes to provide the necessary design services for a fee of $525,000.00. Staff
considers the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $75,000.00 is required for project management, utility coordination, real
property acquisition and material testing.
Engineering for the M-199 C-R Sanitary Sewer Main Parallel Interceptor is one component of the overall
project that includes project management, easement acquisition, utility coordination, material testing,
inspection, construction and contingencies. The overall project budget is $4,600,000.00. Design is
expected to start in December 2017 and be completed by June 2019. Construction is anticipated to
commence in November 2019 and be completed by October 2021. This project is part of the Water
Department's Sanitary Sewer Overflow Initiative Program.
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
Logname: 6060M199CRPIWFB - RJN Page 1 of 3
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 annuaily). 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.
This project will have no impact on the Water Department operating budget.
M/WBE OFFICE - RJN Group, Inc., is in compliance with City's BDE Ordinance by committing to 31
percent SBE participation. The City's SBE goal on this project is 16 percent.
The project is located in COUNCI� DISTRICT 7 and Westworth Village.
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 the M-199 C-R
Sanitary Sewer Main Parallel Interceptor 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 $86,370,529.00. Funding for this project is depicted in the table below.
Fund Existing
Appropriations
- ----- __--- --
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- ---- -- ---- --------
Water & Sewer DPN
Fund 56014
Project Total
Additional
Appropriations
�� _
� Project
� Total*
$0.001 $600,00O.00j $600,000.00
__ _ . __ . _ __ . ____
_
$0.00 $600,000.00 $600,000.00
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*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs�:
TO
Fund Department ccoun Project Program ctivity�Bud et Reference # moun�'
g
ID ID Year (Chartfield 2 �
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CERTIFICATIONS:
Submitted for City Manager's Office by;,
Originatinq Department Head:
Additional Information Contact:
Jay Chapa (5804)
Kara Shuror (8819)
Waiter Norwood (5026)
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