HomeMy WebLinkAboutResolution 4894-01-2018 A Resolution
NO. 4894-01-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT IMPROVEMENTS
OF THE PRIMARY AREA MISCELLANEOUS SWITCHGEAR AT THE VILLAGE
CREEK WATER RECLAMATION FACILITY 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 Improvements of the Primary Area
Miscellaneous Switchgear at the Village Creek Reclamation Facility 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 $11,750,000.00 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
O TWo;ru
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 9th day of January, 2018.
FRT
ATTEST:
`'0
By:
Mary J. Kays , City Secretary S
V
. N
N
o3
Village Creek Water Reclamation Facility
(VCWRF)
N
L �
f
a,low
1 ir�y � rmw-_ ..
;q I' Primary Area
do A
u �r�
°ms s 01"'r
r�I�_ �}
U
Switchgear Improvement Locations _
,
-jai
- 71 El
Switchgear Improvement Location
0 300 600
we 3 _. i.
FORT WO RTCOPYRIGHT 1015 CITY OF FORT WORTH
Village Creek Water Reclamation Facility (VCWRF) "'AUTHORIZED REPRODUCTION IS A VIOLATION OF APPLICABLE IAM
THIS DATA IS TO BE USED FOR A GRAPHICAL REPRESENTATION ONLY.
THE ACCURACY IS NOT TO BE TAKEN/USEDAS DATA PRODUCED FOR
Switchgear Improvements-Ph.1 Primary Area ENGINEERING PURPOSES OR BYAREGISTEREDPROFESSIONALIAND
SURVEYOR THE
WA•1,� FDR OF FOR
OF SAID DATA.O RESPONSIBILITY
f' 77 77777w
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on..1/9/2918 -Ordinanap"No. 23073-0.1-2018 $z;>:R�esolut�on
48.94-0172x18
DATE: Tuesday, January 9, 2018 REFERENCE NO.: C-28536
LOG NAME: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION
SUBJECT:
Authorize Execution of a Contract with Texsun Electrical Contractors, Inc., in the Amount of
$10,765,692.31 for the Village Creek Water Reclamation Facility Primary Area Switchgear Improvements,
Provide for Project Costs and Contingencies for a Total Construction Cost in the Amount of
$11,200,000.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of
Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5)
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 Water Reclamation Facility Primary Area Switchgear Improvements
Project;
2. Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and
Sewer CP Fund in the amount of$11,200,000.00 and reducing the overall CP appropriation authority; and
3. Authorize execution of a contract with Texsun Electrical Contractors, Inc., in the Amount of
$10,765,692.31 for the Village Creek Water Reclamation Facility Primary Area Switchgear Improvements.
DISCUSSION:
This construction contract will replace and/or rehabilitate critical electrical infrastructure that is corroded,
obsolete, difficult to maintain, or unsafe to operate at the primary effluent pump stations, primary sludge
pump stations, the bar screen buildings, and the generator distribution station. On May 17, 2016 (M&C C-
27720), the City Council awarded an Engineering Agreement with Gupta and Associates, Inc., for the
Design of the Replacement, Removal and/or Modification of the Primary Area Switchgear at the Village
Creek Water Reclamation Facility (VCWRF) which was amended one time providing additional funding for
surveying, geotechnical investigation, and structural and electrical design.
The project was advertised for bid on September 21, 2017 and September 28, 2017 in the Fort Worth
Star-Telegram. On November 09, 2017 the following bids were received:
Bidder 113ase Bid lContract Time
Texsun Electrical F$1 ,765 692.31 548 Calendar
Contractors Days
ACME Electric $1 1,227,382.31
Company
Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION Page 1 of 3
Facility Solutions
Group $11,435,192.31
In addition to the contract cost, the amount of$300,000.00 is required for project contingencies and
$134,307.69 is provided for inspection, testing, project management and Staff time. Construction is
anticipated to commence in February 2018, with a contract time of 548 calendar days, the project is
estimated to be complete by Fall 2019. This project will have no impact on the Water Department's
operating budget when complete.
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 Commercial Paper (CP) 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 CP
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 CP 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.
M/WBE OFFICE: Texsun Electrical Contractors, Inc., is in compliance with City's BDE Ordinance by
committing to seven percent MBE participation. The City's MBE goal on this project is seven percent.
The project is located in COUNCIL DISTRICT 5.
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 and Sewer CP Fund for this project.
The Water and Sewer CP Fund includes authority of$150,000,000.00 for the purpose of providing interim
funding for Water and Sewer Capital Projects. After this transfer, the balance will be $114,825,529.00.
Funding for this project is depicted in the table below:
Fund Existing Future project Total*
Appropriations[Appropriations
2016 Water
and Sewer $612,800.00 $0.00 $612,800.00
Bond Fund
156005
lWater/Sewerl
Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION Page 2 of 3
4CP Fund $275,000.00 y$11,200,000.00 $11,475,000.00
156014
Project $887,800.00 $11,200,000.00 1$12 087 800.00
Total
*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: Farida Goderya (8214)
Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION Page 3 of 3