HomeMy WebLinkAboutResolution 4986-09-2018 A Resolution
NO. 4986-09-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
SANITARY SEWER EMERGENCY RESPONSE 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 Sanitary Sewer Emergency Response
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 $1,700,000.00 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 25th day of September, 2018.
ATThE
By:
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Mary Kayser, y ecretaryQ�
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ORT WORT
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/25/2018 - Resolution No. 4986-09-2018 and Ordinance
No. 23423-09-2018
DATE: Tuesday, September 25, 2018 REFERENCE NO.: **C-28869
LOG NAME: 60SSEMERCONR2-CIRCLEC
SUBJECT:
Authorize Execution of the Second and Final Renewal of City Secretary Contract No. 49088 with William J.
Schultz, Inc. d/b/a Circle C Construction Company in the Amount of$1,250,000.00 for 2017 Sanitary
Sewer Emergency Response, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with
Proceeds of Future Debt and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS)
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 Sanitary Sewer Emergency Response Contract Project;
2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer
Commercial Paper Fund in the amount of$1,500,000.00 and reducing the remaining authority under
the Commercial Paper Program by the same amount; and
3. Authorize the Second and Final Renewal of City Secretary Contract No. 49088 with William J.
Schultz, Inc. d/b/a Circle C Construction Company in the amount of$1,250,000.00 for the 2017
Sanitary Sewer Emergency Response Contract (City Project No. 100775).
DISCUSSION:
On May 2, 2017, Mayor and Council Communication (M&C C-28212) the City Council authorized the City
Manager to execute a contract in the amount of$1,250,000.00, with the option of two renewals, with
William J. Schultz, Inc. d/b/a Circle C Construction Company for 2017 Sanitary Sewer Emergency
Response Contract.
On February 20, 2018, Mayor and Council Communication (M&C C-28590) the City Council authorized
the City Manager to execute the first of two optional contract renewals in the amount of$1,250,000.00,
with William J. Schultz, Inc. d/b/a Circle C Construction Company for the 2017 Sanitary Sewer Emergency
Response Contract.
The City and the Contractor desire to exercise the second and final renewal of the contract in the amount
of$1,250,000.00 and with the same terms and conditions. This renewal increases the total project amount
to $3,750,000.00
The work to be performed under this contract consists of replacing and/or relocating large diameter
sanitary sewer mains and other pertinent construction required in response to emergency sanitary sewer
incidents.
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In addition to the contract amount, $250,000.00 is required for design, survey, project management,
material testing and inspection.
This project will have no impact on the Water Department's operating budget when completed.
Construction is expected to start October 2018 and be completed by October 2019 or when the contract
amount is exhausted.
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 FY2018-2022 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 Statements, 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 other 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 is located in ALL COUNCIL DISTRICTS.
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 current capital budget, as appropriated, of
the Water and Sewer Commercial Paper Fund. The Water and Sewer Commercial Paper Fund includes
the authority of the $150,000,000.00 for the purpose of providing interim funding for Water and Sewer
Capital Projects. After this transfer, the balance will be $111,228,591.00.
Appropriations for Sanitary Sewer Emergency Response:
FUND Existing 1 Additional Project Total*
Appropriations JAppropriations
I Water &
} Sewer
Commercial $0.00 $1,500,000.00 $1,500,000.00
Paper Fund
56016
Water &
Sewer $3,000,000.00 $0.00 $3,000,000.00
Capital
Projects
Logname: 60SSEMERCONR2-CIRCLEC Page 2 of 3
Fund —
56002 1
Project
$3,000,000.00 $1,500,000.00 $4,500,000.00
Tota I
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project ProgramActivity
Budget Reference # moun
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Fund Department ccoun Project Program ctivity Budget Reference # mount]
ID ID Year (Chartfield��� ___T�
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Chris Harder (5020)
Additional Information Contact: J. Chris Underwood (2629)
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