HomeMy WebLinkAboutResolution 4922-03-2018 A Resolution
NO. 4922-03-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WALSH
RANCH SANITARY SEWER MAIN EXTENSION PHASE IVA 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, on March 27, 2018 the City Council approved M&C C-28648,
expressing its intention to adopt this Resolution of official intent to reimburse
expenditures with proceeds of future debt for the Walsh Ranch Sanitary Sewer Main
Extension Phase IV A Project; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the Walsh Ranch Sanitary Sewer Main
Extension, Phase IVA 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 $4,000,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the
date the expenditures are paid or (2) the date on which the property, with
['r F
ORT WO T
respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 3rd day of April, 2018.
ATTEST: OF FOf?T�
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By:
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Mary J. Kayser, City Secretary
CAS.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on .3/27/201$ -Ordinance No. 23158-03-20.18 and ResolIivn.
t
No.4922703-2018
DATE: Tuesday, March 27, 2018 REFERENCE NO.: C-28648
LOG NAME: 60WRANCHPIVA-JACKSON
SUBJECT:
Authorize Execution of a Contract with Jackson Construction, Ltd., in the Amount of$2,824,611.00 for
Walsh Ranch Sanitary Sewer Main Extension, Phase IVA, Provide for Staff Costs and Contingencies for a
Total Amount of$3,283,017.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures
with 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 Walsh Ranch Sanitary Sewer Main Extension, Phase IVA;
2. Adopt the attached appropriation ordinance reducing unallocated appropriations and increasing
appropriations for the Walsh Ranch Sanitary Sewer Main Extension, Phase IVA Project in the Water and
Sewer Commercial Paper Fund in the amount of$3,283,017.00; and
3. Authorize the execution of a contract with Jackson Construction, Ltd., in the amount of$2,824,611.00
for Walsh Ranch Sanitary Sewer Main Extension, Phase IVA Project. (City Project No. 100924)
DISCUSSION:
This Mayor and Council Communication is to authorize a construction contract for Walsh Ranch Sanitary
Sewer Main Extension, Phase IVA which consists of the installation of a 30-inch sanitary sewer main
beginning from 120 feet north of the Lost Creek Boulevard/River View Way intersection, northwesterly
5,350 feet.
The project was advertised on December 21, 2017 and December 28, 2017, in the Fort Worth Star-
Telegram. On February 8, 2018, the following bids were received:
BIDDER BID AMOUNT F—CONTRACT
lWildstone Construction LLC** $2,479,500.00
Jackson Construction, Ltd. $2,824,611.00 270 calendar days
Conatser Construction TX, LP $3,333,456.85
S.J. Louis Construction Co, Inc. $
F- 3,353,989.61
(—.
Logname: 60WRANCHPIVA-JACKSON Page I of 3
Acadia Services, LLC 1$3,455,221.00
Excel Aircraft dba Excel Trenching _ $3,471,547.50
[Venus Construction Co. _ x$3,483,718.30
"* Wildstone Construction LLC, has been disqualified due to the fact that it is not prequalified to install
sanitary sewer mains greater than 12-inches.
In addition to the contract cost, $373,668.00 is required for staff project management, material testing and
inspection and $84,738.00 is provided for project contingencies.
Construction for the Walsh Ranch Sanitary Sewer Main Extension, Phase IVA project is one component of
the overall project that includes design, project management, material and contingencies. The overall
project budget is $4,000,000.00. Construction is expected to start in May 2018 and be completed by
February 2019.
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 - Jackson Construction, Ltd, is in compliance with the City's BDE Ordinance by
committing to three percent MBE participation and documenting good faith effort. Jackson Construction,
Ltd., identified several subcontracting and supplier opportunities. However, the MBE's contacted in the
areas identified did not submit the lowest bids. The City's MBE goal on this project is eight percent.
The project is located within the City Limits COUNCIL DISTICT 3.
FISCAL INFORMATION / CERTIFICATION:
Logname: 60WRANCHPIVA-JACKSON Page 2 of 3
attached appropriation ordinance, funds will be available in the Water and Sewer Commercial Paper Fund
for the Walsh Ranch Sanitary Sewer Main Extension, Phase IVA 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 $94,610,553.00 for
future capital projects.
Funding for the Walsh Ranch Sanitary Sewer Main Extension, Phase IVA project is depicted in the table
below.
FUND Existing Additional Project
Appropriations Appropriations Total*
Water Capital Projects $78,900.00 $0.00 $78,900.00
Fund 56002
W&S Commercial Paper
Fund - 56014 $0.00 $3,283,017.00 $3,283,017.00
Project Total $78,900.00 $3,283,017.00 [$3,361,917.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JProgram ctivity Budget 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: Liam Conlon (6824)
Logname: 60WRANCHPIVA-JACKSON Page 3 of 3
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