HomeMy WebLinkAboutResolution 4892-01-2018 A Resolution
NO. 4892-01-2018
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 $350,000.00 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
ORTwr
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.
ATTEST: �oF.FORT
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Mary J. Ka ity Lcretary "♦
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FORTWORTCOPYRIGHT 2015 CITY OF FORT W ORTH
Village Creek Water Reclamation Facility (VCWRF) UNAUTHOR ZED REPRODUCTION IS AVIOLATION OF APPLICABLE LAM
THIS DATA IS TO BE USED FOR A GRAPHICAL REPRESENTATION ONLY.
TME ACCURACY IS NOT TO BETAKEN/USED AS DATA PRODUCED FOR
Switchgear Improvements-Ph.1 Primary Area ENGINE ERING PURPOSES OR BYAREGLSTERED PROFESSIONAL LAND
WAl) SURVEYOR THECITYOFFORT WORTHASSUMES NORESPONSIBILITY
FOR THE ACCURACY OF SAID DATA.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/9/2018 - Ordinance No. 23062-01-2018 & Resolution No...
4892-01-2018
DATE: Tuesday, January 9, 2018 REFERENCE NO.: **C-28531
LOG NAME: 60VCWRF PH1 PRIMARY AREA SWITCHGEAR - GUPTA AMENDMENT NO2
SUBJECT:
Authorize Execution of Amendment No. 2 to the City Secretary Contract No. 47875, an Engineering
Agreement with Gupta and Associates, Inc., in the Amount of$195,000.00 for Engineering Services During
Construction for the Improvements of the Primary Area Miscellaneous Switchgear at the Village Creek
Water Reclamation Facility, Increasing the Total Contract Cost to $795,725.00, 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 Improvements of Primary Area Miscellaneous Switchgear at Village Creek Water
Reclamation Facility;
2. Adopt the attached appropriation ordinance increasing estimated appropriations in the Water/Sewer
CP Fund in the amount of$275,000.00 and reducing the overall CP authority; and
3. Authorize execution of Amendment No. 2 to City Secretary Contract No 47875, an Engineering
Agreement with Gupta and Associates, Inc., in the amount of$195,000.00, for Engineering Services
during Construction for the Improvements of Primary Area Miscellaneous Switchgear at the Village Creek
Water Reclamation Facility;
DISCUSSION:
On May 17, 2016, (M&C C-27720) the City Council awarded the execution of an Engineering Agreement
with Gupta and Associates, Inc., in the amount of$517,782.00 (City Secretary Contract No. 47875), for
the Design of the Replacement, Removal and/or Modification of the Primary Area Switchgear at the
Village Creek Water Reclamation Facility (VCWRF). Subsequently, an administrative Amendment No. 1
(City Secretary Contract No. 47875-A1) was executed, for the amount of$82,943.00.
This Amendment No. 2 will provide for the engineering services during construction. These services will
include project administration and coordination; maintenance of electronic filing systems; pre-construction
conference; monthly progress meetings and site visits; coordination with City, contractor and Inspector as
necessary; review of shop drawings, pay estimates, record data, operational and maintenance manuals
and other submittals; project closeout and completion activities; and preparation of Record Drawings from
Redlines markups.
Gupta and Associates, Inc., are proposing to provide the necessary services for a fee in the amount of
Logname: 60VCWRF PHI PRIMARY AREA SWITCHGEAR- GUPTA AMENDMENT NO2 Page 1 of 3
$195,000.00. The Staff considers this fee to be fair and reasonable for the additional scope of services as
proposed.
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 (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 Statements, 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 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.
These engineering services are anticipated to commence in January 2018, with a contract time of 24
months, it is estimated to be completed by December 2019.
M/WBE OFFICE: Gupta and Associates is in compliance with the City's BDE Ordinance by committing to
25 percent SBE participation on this Amendment No. 2. The City's goal on this Amendment is 18
percent. Additionally, Gupta and Associates is a certified M/WBE firm.
In addition to the contract amount, $50,000.00 is required for project contingency allowance and
$30,000.00 is required for project management and associated Staff time for the Water Department.
This project serves the entire City and 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/Sewer CP Fund for the
Improvements of Primary Area Miscellaneous Switchgear at Village Creek Water Reclamation Facility
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
$76,025,529.00.
Logname: 60VCWRF PHI PRIMARY AREA SWITCHGEAR- GUPTA AMENDMENT NO2 Page 2 of 3
Funding for this project is depicted in the table below.
Fund Existing Additional Project
Appropriations Appropriations Total*
2016 Water
and Sewer $612,800.00 $0 $612,800.00
Bond Fund
56005
Water and
F$275,000.00Sewer CP $0 $275,000.00
Fund 56014
CProject Total 1 $612,800.00 $275,000.00 1$887,800.00
* 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 # �mtl
ID ID Year ChartFeld 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 PHI PRIMARY AREA SWITCHGEAR- GUPTA AMENDMENT NO2 Page 3 of 3