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Home My WebLink AboutResolution 4943-06-2018 A Resolution NO. 4943-06-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SYCAMORE CREEK DRAINAGE BASIN PARALLEL INTERCEPTOR IMPROVEMENTS 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 Sycamore Creek Drainage Basin Parallel Interceptor Improvements 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 $400,000.00 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 RTWO T Resolution No.4943-06-2018 pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 5th day of June, 2018. ATTEST: OF F�RT� O� 2 By: Mary J. Kayse ty Secretary �XAS. FoRTWORTH MAYOR AND COUNCIL COMMUNICATION MAP 60SCM275VARA3 - LAN Sycamore Creek --�_ West Fork Trinity River r Or 30 Lu fXt7- 7 ui _OR SCOTT AVE'.NCAST AVE' QMARAV Lien onw � � �4 i cc w ?r�. VALKus ST Lu SYCAMORE. -REEF( _j fi GOLF'Cf UKSE �; E= H A-M E ST ---a - T Lu -.f ° r E LEIJ - i „I-I. w x L J � FORTWORTH SYCAMORE PARK City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/5/2018 - Ordinance No. 23236-06-2018 &.Resolution,No. 4943-06-2018 DATE: Tuesday, June 5, 2018 REFERENCE NO.: **C-28712 LOG NAME: 60SCM275VARA3 - LAN SUBJECT: Authorize Execution of Amendment No. 3 to City Secretary Contract No. 45280, an Engineering Agreement with Lockwood, Andrews & Newnam, Inc., in the Amount of$215,030.00 for a Revised Contract Amount of $1,798,884.00 for Sycamore Creek Drainage Basin Parallel Interceptor Improvements at Various Locations within the Sycamore Creek Drainage Basin, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Enterprise Fund Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8) 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 Sycamore Creek Drainage Basin Parallel Interceptor Improvements Project; 2. Adopt the attached Appropriation Ordinance reducing unallocated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of$255,030.00, for the Sycamore Creek Drainage Basin Parallel Interceptor Improvements Project; and 3. Authorize execution of Amendment No. 3, in the amount of$215,030.00, to City Secretary Contract No. 45280, an Engineering Agreement with Lockwood, Andrews & Newnam, Inc., for Sycamore Creek Drainage Basin Parallel Interceptor Improvements at various locations thereby increasing the contract amount to $1,798,884.00. (City Project No. 02200) DISCUSSION: On November 19, 2013, (M&C C-26567) City Council authorized an Engineering Agreement with Lockwood, Andrews & Newnam Inc., in the amount of$575,828.00 for the Sycamore Creek Drainage Basin Parallel Interceptor Improvements at various locations within the Sycamore Creek Drainage Basin. The Agreement was subsequently revised by Amendment No.1 (M&C C-26964) September 9, 2014 in the amount of$168,311.00 and Amendment No. 2 (M&C C-27884) August 23, 2016 in the amount of $839,715.00. Amendment No. 3 will provide for the following: Redesign of the portion of the sewer main across Sycamore Golf Course as requested by the Park and Recreation Department. . Design of a sanitary sewer interceptor to cross Vickery Boulevard and into Sycamore Park. . Park conversions for Sycamore Golf Course and Sycamore Park. . Design survey. Logname: 60SCM275VARA3 - LAN Pagel of 3 . Subsurface utility engineering. . Assistance during construction. Lockwood, Andrews & Newnam, Inc., proposes to perform the necessary additional work for a lump sum fee of$215,030.00. Staff considers this fee to be fair and reasonable for the scope of services proposed. In addition to the contract cost, $40,000.00 is required for project management. In order to expedite construction, the project was divided into two phases: Phase 1 from Gateway Park southwards to Union Pacific Railroad Right-of-way has been advertised for bid; Phase 2 from Union Pacific Railroad Right-of-way will be revised via this amendment. 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 when complete. Design for the Phase 2 project is expected to be complete by May 2019 with construction starting in September 2019 and completion by June 2021. M/WBE OFFICE: Lockwood, Andrews & Newnam, Inc. is in compliance with the City's BDE Ordinance by committing to 12 percent SBE participation on this Amendment No. 3. The City's goal on this Amendment is 8 percent. The project is located n COUNCIL DISTRICT 8. 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 Water& Sewer Commercial Paper Fund for the Sycamore Creek Drainage Basin Parallel Interceptor Improvements 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 $139,589,970.00 for Logname: 60SCM275VARA3 - LAN Page 2 of 3 future capital projects. Funding for the Sycamore Creek Drainage Basin Parallel Interceptor Improvements project is as depicted below: FUND Existing Additional Project Total* Appropriations Appropriations Water & Sewer Commercial $0.00 $255,030.00 [$255,030.00 Paper Fund 56016 Sewer Capital Fund - Legacy $1,818,139.00 $0.00 1$1,818,139.00 59607 Project Total 1$1,818,139.00 F$2515,030.00 F$2,073,169.00 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccouniq ProjectProgram ctivity Budget Reference # moun j I ID ID Year Chartfield 2 FROM Fund Department ccoun Project JProgram ctivity Budget Reference # moun ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Liam Conlon (6824) Logname: 60SCM275VARA3 - LAN Page 3 of 3