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Home My WebLink AboutResolution 4973-09-2018 A Resolution NO. 4973-09-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ENCLOSURE OF THE GASEOUS CHLORINE AND SULFUR DIOXIDE STORAGE FACILITIES 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 Enclosure of the Gaseous Chlorine and Sulfur Dioxide Storage Facilities 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 $10,400,000.00 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 ORT WORTH pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 11th day of September, 2018. ATTEST: .•,,OF.F�RT� U: 2 By: Mary J. Kay Cit Secretary �XAS ORT WORT A • ' 0 M • • • - 1 . M Ko, • • ' • Enclosureof erus Chlorineu Improvement r Aw OWN .P for Mal V P-' igq in �r�fR! ��. a � � � ��'� .�. + , ;�,�'•�`�'" �� . City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/11/2018 - Ordinance No. 23368-09-2018 & Resolution No. 4973-09-2018 DATE: Tuesday, September 11, 2018 REFERENCE NO.: **C-28837 LOG NAME: 60CHLORINE AND SULFUR DIOXIDE SUBJECT: Authorize Execution of a Construction Contract with Crescent Constructors, Inc., in the Amount of $8,573,000.00, Authorize Execution of Amendment No. 2 to City Secretary Contract No. 45595, in the Amount of$780,000.00, an Engineering Agreement with Carollo Engineers, Inc., for Additional Construction Services and Management each for the Construction of the Enclosure of the Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, Provide for Project Staff Costs and Contingencies and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attach Resolution expressing Official Intent to Reimburse expenditures with proceeds from future debt for the construction of the Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project; 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Commercial Paper Fund in amount of$9,870,000.00 for construction of the Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project; 3. Authorize the execution of a construction contract with Crescent Constructors, Inc., in the amount of $8,573,000.00 for Construction of the Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project and provide for project staff costs and contingencies; 4. Authorize Amendment No. 2 to City Secretary Contract No. 45595, in the Amount of$780,000.00, an Engineering Agreement with Carollo Engineers, Inc., for additional construction services and construction management for the construction of Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project (City Project No. 02273). DISCUSSION: The Village Creek Water Reclamation Facility uses gaseous chlorine and sulfur dioxide in the chlorination and dechlorination treatment process. The aging equipment associated with this treatment process is in need of replacement and upgrades and the facilities need to be updated and improved to reduce the risk of leaks, increase the functionality and reliability of the systems and reduce maintenance costs. This Project consists of modifications, additions, and/or replacements of the chlorine and sulfur dioxide storage tanks in order to improve safety and reduce risk. On April 22, 2014 (M&C C-26779), the City Council authorized an engineering agreement with Carollo Logname: 60CHLORINE AND SULFUR DIOXIDE Page I of 4 Engineers, Inc., to evaluate options to reduce risk and replace aging equipment at the chlorine and sulfur dioxide facilities. On April 4, 2017 (M&C C-28171), the City Council authorized Amendment No. 1 to the engineering agreement for the preparation of plans and specifications to make the recommended modifications to the chlorine and sulfur dioxide storage facilities. As part of Amendment No. 2, the Engineer will perform construction phase services, including project and construction management, shop drawing reviews, and special inspections. This Project was advertised on May 24, 2018 and May 31, 2018 in the Fort Worth Star-Telegram. On June 28, 2018, the following bids were received. ..------.....---------- BIDDER BID AMOUNT Contract Crescent Constructors, Inc. 1$8,573,000.00 480 Calendar Days o JArcher Western Construction $8,638,000.00 Felix Construction Company $8,812,798.00 Garacon Construction, Inc. $9,336,389.00 In addition to the contract cost $260,000.00 is required for staff project management and inspection and $257,000.00 for project change orders and contingency for a total construction cost of$9,090,000.00. 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 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. Construction is anticipated to commence in November 2018, with a contract time of 480 calendar days. The construction is estimated to be completed by end of April 2020. M/WBE OFFICE: Crescent Constructors, Inc., is in compliance with the City's DBE Ordinance by Logname: 60CHLORINE AND SULFUR DIOXIDE Page 2 of 4 committing to seven percent MBE participation and documenting good faith effort. Crescent Constructors, Inc. identified several subcontracting and supplier opportunities. However, the firms contacted in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 25 percent. MWBE OFFICE: Carollo Engineers, Inc. is in compliance with the City's BDE Ordinance by committing to 43 percent SBE participation on this Amendment No. 2. The City's goal on this Amendment is 19 percent. Additionally, Carollo Engineers is a certified M/WBE firm. This project will have no impact on the Water Department's annual operating budget when completed. This project is located in COUNCIL DISTRICT 5, the Village Creek Water Reclamation Facility serves ALL COUNCIL DISTRICTS, Mapsco 68. 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 of Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities 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 Project. After this transfer, the balance will be $116,890,765.00 for future capital projects. Funding will be as depicted in the table below for the Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project. [FUNDExisting Additional [Project Total* Appropriations JAppropriations _ 2017A Water & Sewer Bond Fund $795,000.00 $0.00 $795,000.00 56011 Water & Sewer _ Commercial Paper $0.00 $9,870 000.00 $9,870,000.00 Fund 56016 Sewer Capital Fund- Legacy $212,000.00 $0.00 $212,000.00 59607 Project Total $1,007,000.00 $9,870,000.00 $10,877,000.00 *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 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) Logname: 60CHLORINE AND SULFUR DIOXIDE Page 3 of 4 Additional Information Contact: Seiavash Mir (8404) Logname: 60CHLORINE AND SULFUR DIOXIDE Page 4 of 4