HomeMy WebLinkAboutResolution 4912-03-2018 A Resolution
NO. 4912-03-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE REPAIR
AND REPAINTING OF ONE MILLION GALLON CALMONT ELEVATED
STORAGE TANK 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 Repair and Repainting of One Million
Gallon Calmont Elevated Storage Tank 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 $900,000.00 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
ORT WORT
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 6th day of March, 2018.
ATTEST: VORT�
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By:
Mary J. Kayser, City Secretary ........
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COPYRIGHT]Oti CITY OF FORT WORTH FORT WORTH
UNAUTHORIZED REPRODUCTIONGAVIOIALRERESENATIONLAWS CaImont Elevated Tank
THIS DATA IS TD BE USED FOR A GRAPHICAL S DATA ENTATCE ONLY.
THE ACCURACY IS NOT TO BETAKEN/USED AS DATA PRODUCED FOR WATER
ENGINEERING PURPOSES OR BY A REGISTERED ASSUMES NO RE S ONSI LAND 1�
SURVEYOR.THE CITY OF FORT WORT OFAID DA.RESPONSIBILITY �Y
FOR THE ACCURACY OF SAID DATA. 0 100
Feel
5/23/2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/6/2018 -Ordinance No. 23128-03-2018 & Resolution No.
4912-03-2018
DATE: Tuesday, March 6, 2018 REFERENCE NO.: **C-28611
LOG NAME: 60CALMONT REHAB AND REPAINT
SUBJECT:
Authorize Execution of a Contract with A&M Construction & Utilities, Inc., in the Amount of$699,000.00 for
Repair and Repainting of the One Million Gallon Calmont Elevated Storage Tank, Provide for Staff Costs
and Contingencies for a Total Project Amount of$799,000.00, Adopt Resolution Expressing Official Intent
to Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 3)
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 repair and repainting of the one million gallon Calmont Elevated Storage
Tank;
2. Adopt the attached appropriation ordinance reducing unallocated appropriations and increasing
appropriations for the repair and repainting of one million gallon Calmont Elevated Storage Tank in the
Water and Sewer Commercial Paper Fund in the amount of$799,000.00; and
3. Authorize the execution of a contract with A&M Construction & Utilities, Inc., in amount of$699,000.00
for the repair and repainting of the one million gallon Calmont Elevated Storage Tank (City Project No.
100885).
DISCUSSION:
The Calmont one million gallon elevated storage tank was built in 1948 and last repainted in 1999. The
existing coating has reached the end of useful life and needs to be removed and replaced in order to
protect the structural steel from corrosion.
On August 1, 2017, Mayor and Council Communication (M&C C-28304), the City Council authorized an
Engineering Agreement with a scope of work that included the preparation of plans and specifications for
the Calmont Elevated Storage Tank Repair and Repainting Project.
The project was advertised on November 16, 2017 and November 23, 2017, in the Fort Worth Star-
Telegram. On December 21, 2017, the following bids were received:
Logname: 60CALMONT REHAB AND REPAINT Page 1 of 3
BIDDER BID AMOUNT CONTRACT
'A&M Construction Utilities, Inc. $699,000.00 1135 calendar days
N.G. Painting, L.P. $860,850.00
Blastco Texas $1,228,378.38
�TIVII Coatings, Inc. $1,230,000.00
F- __._ ___..... _..._._.. __.__d___.
F-------
American Suncraft $1,261,400.00
In addition to the contract cost, $50,000.00 is required for staff project management and $50,000.00 is
provided for project contingencies.
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 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.
This project will have no impact on the Water Department's operating budget. The total cost for this project
is estimated to be $1,100,000.00.
Construction is anticipated to commence in March 2018. With contract time of 135 Calendar days, the
construction is estimated to be completed by the end of August 2018.
Logname: 60CALMONT REHAB AND REPAINT Page 2 of 3
M/WBE OFFICE - A&M Construction & Utilities, Inc., is in compliance with the City's BDE Ordinance by
committing to five percent MBE participation. The City's MBE goal on this project is five
percent. Additionally, A&M Construction & Utilities, Inc., is a certified M/WBE firm.
The project is located within the City Limits COUNCIL DISTICT 3.
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 Commercial Paper Fund for
the One Million Gallon Calmont Elevated Storage Tank Repaint and Rehabilitation 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 $101,730,598.00.
Funding for this project is depicted in the table below:
Fund Existing Additional (Project
Appropriations Appropriations: Total*
2017A Water and
Sewer Bond Fund $225,840.00 $0.00 $225,840.00
56011
�W&S Commercial $0.00 $799,000.00 $799,000.00
Paper Fund 56014
^
Project Total � 1 $225,840.001 $799,000.00 $1,024,840.00
* 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 1Prograrnty
iBudget Reference # moun
ID ID l Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Kenneth Morgan (8246)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60CALMONT REHAB AND REPAINT Page 3 of 3