HomeMy WebLinkAboutResolution 4902-01-2018 A Resolution
NO. 4902-01-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LAKE
ARLINGTON 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 Lake Arlington 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 $9,500,000.00 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
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
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Adopted this 30th day of January, 2018.
ATTEST:
By: —A�mj\/ — ---------
Mary J. Kayser, it A
ecretary
0 TWO
MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
COUNM ACTION: Approved on 113012018 - Ordinance No. 23101-01-2018 & Resolution
No. 4902-01-2018
DATE: Tuesday, January 30, 2018 REFERENCE NO.: C-28566
LOG NAME: 60LALSFM-FNI
SUBJECT:
Authorize Execution of an Engineering Agreement with Freese and Nichols, Inc., in the Amount of
$3,099,361.00 for Design of the Lake Arlington Lift Station and Force Main, Located in the Carver Heights
East and Enchanted Bay Neighborhoods, Provide for Staff Costs, Property Acquisition and Utility
Coordination for a Total Project Amount of$8,729,361.00, Adopt Resolution Expressing Official Intent to
Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 5 and CITY OF KENNEDALE)
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 Lake Arlington Lift Station and Force Main Project;
2. Adopt the attached appropriation ordinance reducing unallocated appropriations and increasing
appropriations for the Lake Arlington Lift Station and Force Main Project in the Water and Sewer
Commercial Paper Fund in the amount of$8,729,361.00; and
3. Authorize execution of an Engineering Agreement with Freese and Nichols, Inc., in the amount of
$3,099,361.00 for the Lake Arlington Lift Station and Force Main Project (City Project No. 100995).
DISCUSSION:
This Mayor and Council Communication is to authorize the preparation of plans and specifications for the
Lake Arlington Lift Station and Force Main Project. Portions of the existing wastewater collection system
serving the Village Creek Wastewater basin are at capacity, with some areas experiencing wet weather
overflows.
Increased conveyance capacity is necessary to handle projected growth within the Village Creek
Wastewater Basin which also includes the wholesale customer cities of Burleson and Crowley. In addition,
it is anticipated that proposed development to the west of Crowley will lift wastewater into the Village
Creek Basin starting in 2019. There are currently four projects in various stages of design and
construction to increase capacity in the upper reaches of the Village Creek Wastewater Collection System.
The Fort Worth Wastewater Master Plan recommends the installation of a lift station and force main (No.
13) within the lower reaches of the Village Creek Basin. The proposed lift station with an ultimate capacity
of 80 million gallons per day (MGD), will be placed upstream of Lake Arlington and the force main (42-inch
diameter, 37,000 linear feet approximate), will extend from the lift station, around Lake Arlington and
discharge into the existing Village Creek collection system north of Lake Arlington, near the intersection of
U.S. 180 (Lancaster Avenue).
Logname: 60LALSFM-FNI Page I of 3
The proposed scope of services include design for a 44 MGD lift station and related appurtenances (44
MGD initial with ability to add peak-shaving storage and parallel structure to increase capacity of 80
MGD), design for 42-inch force main, geotechnical investigation, environmental permitting, easement
preparation, subsurface utility engineering, coordination with various agencies and assistance during
construction.
Freese and Nichols, Inc., proposes to provide all the necessary design services for the Lift Station and
Force Main for a fee of$3,099,361.00. Staff considers the proposed fee to be fair and reasonable for the
scope of services proposed.
In addition to the contract amount, $5,630,000.00 is required for project management, utility coordination
and real property acquisition.
Engineering for the Lake Arlington 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 $46,630,000.00. Design
is expected to start in March 2018 and be completed by July 2019. Construction is anticipated to
commence in November 2019 and be completed by March 2022. 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-18187). 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's operating budget.
M/WBE OFFICE: Freese and Nichols, Inc., is in compliance with City's BDE Ordinance by committing to
20 percent SBE participation. The City's SBE goal on this project is 10 percent.
The project is located in COUNCIL DISTRICT 5 and CITY OF KENNEDALE.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
Logname: 60LALSFM-FNI Page 2 of 3
attached appropriation ordinance, funds will be available in the Water/Sewer Commercial Paper Fund for
the Lake Arlington Lift Station and Force Main Project. The Water& 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 $102,504,598.00 for future capital projects.
Funding for the Lake Arlington Lift Station and Force Main project is depicted in the table below.
[--Existing Project
I Fund [Appropriations Additional Appropriations Total*
Water and
Sewer
lCommercial $0.00 $8,729,361.00 $8,729,361.00
Paper Fund
56014
Project $0.00 $8,729,361.00 [$8,729,361.00
Total
* Numbers rounded for presentation
FUND IDENTIFIERS (FIDs):
TO
Fund Departmentccoun Project Program ctivity Budget Reference # moun
ID 1A ID Year Chartfield 2
FROM
Fund Departmentccoun Project Program ctivity Budget Reference # moun
ID 1A ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Kenneth Morgan (8246)
Additional Information Contact: Robert Sauceda (2387)
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