HomeMy WebLinkAboutResolution 4955-06-2018 A Resolution
NO. 4955-06-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SYCAMORE
CREEK INTERCEPTOR IMPROVEMENTS, PHASE 1 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 Interceptor Improvements,
Phase 1 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 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 26`h day of June, 2018. OF F0�4
ATTEST: Q`-1 T�
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Ronald P. Gonzales, Assi ant City Secretary S
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MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Wortih, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/26/2018- - Resolution No. 4955-06*2018 & Ordinance No.
23288-06-2618
DATE: Tuesday, June 26, 2018 REFERENCE NO.: **C-28754
LOG NAME: 60SCREEKIlPl-MOUNTAINCASCADE
SUBJECT:
Authorize Execution of a Contract with Mountain Cascade of Texas, LLC, in the Amount of$2,883,880.00
for Sycamore Creek Interceptor Improvements, Phase 1, Provide for Project Costs, Materials Testing and
Contingencies for a Total Project Amount of$3,415,695.00, Adopt Resolution Expressing Official Intent to
Reimburse Expenditures with Proceeds of Future 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 debt for the Sycamore Creek Interceptor Improvements, Phase 1 Project;
2. Adopt the attached appropriation ordinance reducing unallocated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the amount of$3,415,695.00; and
3. Authorize execution of a contract with Mountain Cascade of Texas, LLC, in the amount of
$2,883,880.00 for Sycamore Creek Interceptor Improvements, Phase 1 (City Project No. 02200).
DISCUSSION:
This project will provide additional wastewater capacity to the Sycamore Creek drainage basin by the
construction of a 66-inch relief sewer main, extending from an existing 72-inch sewer line located in
Gateway Park and proceeding southerly 1,900 feet to the Union Pacific Railroad right-of-way. This project
is recommended in the Wastewater Master Plan.
This project was advertised for bids on April 19, 2018 and April 26, 2018 in the Fort Worth Star-Telegram.
On May 17, 2018, the following bids were received:
Bidder [Amount Time of
Completion
F
untain Cascade of Texas, LLC $2,883,880.00 270 Calendar
Days
S.J. Louis Construction of Texas, Ltd. [$3,332,773.84
Ark Contracting Services [$3,464,120.00
Logname: 60SCREEKIIPI-MOLTNTAINCASCADE Page I of 3
William J. Schultz, Inc. dba Circle C Construction $3,570,250.00
Company
Thalle Construction Company $3,793,341.84
Jackson Construction Ltd $4,674,251.00
In addition to the contract amount, $380,571.00 is required for project management, material testing and
inspection and $151,244.00 is provided for project contingency.
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 September 26, 2017. This City Council adopted plan includes this specific project, with funding
identified through the DPN 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.
Construction for Phase 1 is anticipated to commence in September 2018 and be completed by June 2019.
This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will
have no,impact on the Water Department's Operating Budget when complete.
M/WBE OFFICE — Mountain Cascade of Texas, LLC, is in compliance with City's BDE Ordinance by
committing to 25 percent MBE participation. The City's MBE goal on this project is 25 percent.
The project is located in COUNCIL DISTRICT 8, Mapsco 120E and 120F.
FISCAL INFORMATION I 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 Interceptor Improvements, Phase 1 Project. The Water and Sewer Commercial
Paper Fund includes authority of$150,000,000 for the purpose of providing interim funding for Water and
Sewer Capital Projects. After this transfer, the balance will be $134,171,935 for future capital projects.
Funding for the Sycamore Creek Interceptor Improvements, Phase 1 project is as depicted below:
Logname: 60SCREEKIIPI-MOUNTAINCASCADE Page 2 of 3
FUND ExistingAdditional Project
Appropriations Appropriations Total*
Water & Sewer Commercial $255,030.00 $3,415,695.00 $3,670,725.00
Paper Fund 56016
Sewer Capital Fund - $1,818,139.00 $0.00 $1,818,139.00
Legacy 59607
Project Total $2,073,169.00 $3,415,695.00 [$5,488,864.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDS):
TO _
Fund Departmenccoun Project �Progra-mTceivity—&u—
t
dget Reference # �moun
ID ID Year Chartfield 2
FROM
Fund Department ccounj 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: Chris Harder (5020)
Additional Information Contact: Liam Conlon (6824)
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