HomeMy WebLinkAboutResolution 4915-03-2018 A Resolution
NO. 4915-03-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LAKE
ARLINGTON LIFT STATION UPSTREAM AND DOWNSTREAM PARALLEL
RELIEF SANITARY SEWER GRAVITY MAINS 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 Upstream
and Downstream Parallel Relief Sanitary Sewer Gravity Mains 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 $1,800,000.00 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
FoRTWOItTH
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 20th day of March, 2018.
ATTEST: 0V: FO/....
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By' — — — — — ------ —'E — :2
Mary J. Kayser, it Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/20/2018 -Ordinance_No..23142-03 2018,45 Re of o
No. 4$15-03-2018 a
DATE: Tuesday, March 20, 2018 REFERENCE NO.: **C-28631
LOG NAME: 60LALSGMS-DEOTTE
SUBJECT:
Authorize Execution of Engineering Agreement with James DeOtte Engineering Inc., in the Amount of
$469,270.00 for Lake Arlington Lift Station Upstream and Downstream Parallel Relief Sanitary Sewer
Gravity Mains, Provide for Staff Costs, Property Acquisition and Utility Coordination for a Total Project
Amount of$1,574,270.00, 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 enterprise fund debt for the Lake Arlington Lift Station Upstream and Downstream Parallel Relief
Sanitary Sewer Gravity Mains Project;
2. Adopt the attached appropriation ordinance reducing unallocated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the amount of$1,574,270.00, for the Lake Arlington Lift
Station Upstream and Downstream Parallel Relief Sanitary Sewer Gravity Mains Project; and
3. Authorize execution of an Engineering Agreement with James DeOtte Engineering Inc., in the amount
of$469,270.00 for the Lake Arlington Lift Station Upstream and Downstream Parallel Relief Sanitary
Sewer Gravity Mains Project. (City Project No. 101311)
DISCUSSION:
This Mayor and Council Communication is to authorize the preparation of plans and specifications for the
Lake Arlington Lift Station Upstream and Downstream Parallel Relief Sanitary Sewer Gravity Mains
Project located in the Carver Heights East Neighborhood. 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 (including M-257, Part 2) 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 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
Logname: 60LALSGMS-DEOTTE Page 1 of 3
discharge into the existing Village Creek collection system north of Lake Arlington near the intersection of
Lancaster Avenue (U.S. 180).
The proposed scope of services for the upstream and downstream parallel relief sanitary sewer gravity
mains include design for a 5,000 foot, 78-inch sanitary sewer main from an upstream connection point on
M-257, Part 2 to a junction box at the proposed lift station; design for a 3,000 foot, 60-inch sanitary sewer
main from the downstream connection point of the force main to the existing 60-inch sanitary sewer main
located near the intersection of Cook's Lane and Lancaster Avenue; geotechnical investigation;
environmental permitting; easement preparation; subsurface utility engineering; coordination with various
agencies and assistance during construction.
James DeOtte Engineering Inc., proposes to provide all the necessary design services for the upstream
and downstream parallel relief sanitary sewer gravity mains for a fee of$469,270.00. Staff considers the
proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $1,105,000.00 is required for project management, utility coordination
and real property acquisition.
Engineering for the Lake Arlington Lift Station Upstream and Downstream Parallel Relief Sanitary Sewer
Gravity Mains 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 $9,000,000.00. Design is expected to start in April 2018 and
be completed by July 2019. Construction is anticipated to commence in November 2019 and be
completed by March 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's operating budget.
M/WBE OFFICE —James DeOtte Engineering Inc., is in compliance with City's BDE Ordinance by
committing to 12 percent SBE participation. The City's SBE goal on this project is five percent.
Logname: 60LALSGMS-DEOTTE Page 2 of 3
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/Sewer Commercial Paper Fund for
the Lake Arlington 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 $98,493,570.00 for future capital projects.
Funding for the Lake Arlington Lift Station Upstream and Downstream Parallel Relief Sanitary Sewer
Gravity Mains Project is depicted in the table below.
Ii Fund Existing Additional
[r-o
jectiAppropriations Appropriations otal*
W&S Commercial Paper $0.00 $1,574,270.00 $1,574,270.00
Fund - 56014
Project Total $0.00 $1,574,270.00 $1,574,270.00
* Numbers rounded for presentation.
FUND IDENTIFIERS (FIDs):
TO
Fundl Department ccoun Project JProgram ctivity Budget I 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: Kenneth Morgan (8246)
Additional Information Contact: Robert Sauceda (2387)
Logname: 60LALSGMS-DEOTTE Page 3 of 3