HomeMy WebLinkAboutResolution 4898-01-2018 A Resolution
NO. 4898-01-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CLEAR
FORK LIFT STATION AND FORCE 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 Clear Fork Lift Station and
Force 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 $4,000,000.00 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 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.
ORTWO
Resolution No.4898-01-2018
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 23rd day of January, 2018.
ATTEST:
By: - ----
Mary, J. Kaya, City Secretary
ORT WO
MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/23/2018 - Ordinance No. 23089.01-2018 & Resolution
No. 4898-01-2018
DATE: Tuesday, January 23, 2018 REFERENCE NO.: C-28545
LOG NAME: 60CFLSFM-KHA
SUBJECT:
Authorize Execution of Engineering Agreement with Kimley-Horn and Associates, in the Amount of
$1,795,070.00 for Clear Fork Lift Station and Force Main, Provide for Staff Costs, Property Acquisition and
Utility Coordination for a Total Project Amount of$3,591,570.00, Adopt Resolution Expressing Official
Intent to Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance
(COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of
future enterprise fund debt for the Clear Fork Lift Station and Force Main Project;
2. Adopt the attached appropriation ordinance reducing unallocated appropriations and increasing
appropriations for the Clear Fork Lift Station and Force Main Project in the Water and Sewer Commercial
Paper Fund in the amount of$3,591,570.00; and
3. Authorize execution of an Engineering Agreement with Kimley-Horn and Associates, in the amount of
$1,795,070.00 for the Clear Fork Lift Station and Force Main Project (City Project No. 100996).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize the preparation of plans and specifications
for the Clear Fork Lift Station and Force Main Project. Additional wastewater conveyance is needed in
order to eliminate repeated sanitary sewer overflows over the years near the intersection of University
Drive and Rosedale Street. Flow projections indicate that the existing collection system is undersized in
the Clear Fork corridor from the University Drive/I.H. 30 intersection to 7th Street. There are two existing
collector mains (M-272 and M-439) conveying sewage flows, that parallel the Clear Fork of the Trinity
River from University Drive, downstream through Trinity Park, and ultimately connecting to the downtown
deep tunnel sewers. These two collector mains vary in size from 48-inch to 54-inch in diameter. The Fort
Worth Wastewater Master Plan recommends two projects (Nos. 6 and 8) to increase the capacity of the
Clear Fork collector sanitary sewer system by replacing M-272 with a gravity sewer main that is 66-inch to
84-inch in diameter.
Due to the cost involved with installing a deep tunnel large diameter gravity main in this congested corridor
which includes Trinity Park, staff is recommending the installation of a 10 —20 million gallon per day lift
station and a 14,000 linear feet, 30-inch diameter, sanitary sewer force main (in lieu of a gravity main) that
would operate under both normal and peak flow conditions. The proposed lift station and force main could
also be utilized to perform bypass pumping operations during rehabilitation work on the existing two sewer
trunk mains, which would save significant rehabilitation costs in the future.
Logname: 60CFLSFM-KHA Page 1 of 3
Kimley-Horn and Associates proposes to provide all the necessary design services for the Lift Station and
Force Main for a fee of$1,795,070.00. Staff considers the proposed fee to be fair and reasonable for the
scope of services proposed.
In addition to the contract amount, $1,796,500.00 is required for project management, utility coordination
and real property acquisition.
Engineering for the Clear Fork Lift Station and Force Main project is one component of the overall project
that includes project management, real property/easement acquisition, utility coordination, material testing,
inspection, construction and contingencies. The overall project budget is $22,591,570.00. Design is
expected to start in February 2018 and be completed by April 2019. Construction is anticipated to
commence in August 2019 and be completed by December 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 Callable Commercial Paper Program (CP) 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 2018-2022 Five Year Capital Improvement
Plan on December 12, 2017, Mayor and Council Communication (M&C G-19187). 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.
This project will have no impact on the Water Department operating budget.
M/WBE OFFICE: Kimley-Horn and Associates, is in compliance with City's BDE Ordinance by committing
to 24 percent SBE participation. The City's SBE goal on this project is 13 percent.
The project is located in COUNCIL DISTRICT 9.
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 Commercial Paper Fund
for the Clear Fork Lift Station and Force Main Project. The Water and Sewer Commercial Paper 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 $111,233,959.00. Funding for this project is
depicted in the table below.
Logname: 60CFLSFM-KHA Page 2 of 3
FUND Existing Additional Project
Appropriations Appropriations Total*
Water and Sewer
Commercial Paper $0.00 $3,951,570.00 $3,951,570.00
56014
Project Total $0.00 F$3,951,570.00 $3,951,570.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Departmentccoun Project Program ctivity Budget Reference # �mountl
ID 1A 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: Kenneth Morgan (8246)
Additional Information Contact: John Kasavich (8480)
Logname: 60CFLSFM-KHA Page 3 of 3