HomeMy WebLinkAboutResolution 4985-09-2018 A Resolution
NO. 4985-09-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH
TARRANT EXPRESS SEGMENT 4 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 North Tarrant Express Segment 4 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 $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,,S eptember, 2018. pRT.VVO
ATTEST:
By: r'
Mary ayser, Ci } �cetary
ORT WORT
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 912512018 - Resolution No. 4985-09-2018 and Ordinance
No. 23422-09-2018
DATE: Tuesday, September 25, 2018 REFERENCE NO.: **C-28868
LOG NAME: 60NTESEG4A2-KHA
SUBJECT:
Authorize Execution of Amendment No. 2 in the Amount of$280,000.00 to City Secretary Contract No.
49256, an Engineering Agreement with Kimley-Horn and Associates, Inc., for a Revised Contract Amount
of$838,500.00 on North Tarrant Express Segment 4, IH-820 from Randol Mill Road to North of
Interchange with SH121/SH183, Adopt Resolution Expressing Official Intent to Reimburse Expenditures
with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 2, 8, and 9)
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 North Tarrant Express Segment 4 Project;
2. Adopt the attached Appropriation Ordinance in the Water and Sewer Commercial Paper Fund in the
amount of$540,000.00 and reduce the unallocated balance; and
3. Authorize the execution of Amendment No. 2 in the amount of$280,000.00 to City Secretary
Contract No. 49256 for increased construction services and inspection costs on North Tarrant
Express Segment 4, IH-820 from Randol Mill Road to North of Interchange with SH121/SH183 (City
Project No. 100987).
DISCUSSION:
On June 20, 2017 (M&C-28285), the City Council authorized an Engineering Agreement in the amount of
$541,500.00 with Kimley-Horn and Associates, Inc., for North Tarrant Express Segment 4, IH-820 from
Randol Mill Road to North of Interchange with SH 121/SH 183. The IH-820 corridor has been organized
into segments. This segment 4, is being designed and constructed by TXDOT under the traditional design,
bid, build method. The agreement was subsequently revised by Amendment No. 1 in the amount of
$17,000.00 administratively authorized on January 10, 2018.
Amendment No. 2 will provide construction services for a not to exceed fee of$280,000.00. Construction
support services includes attending preconstruction meetings, on-site observations, construction progress
meetings, and shop drawing reviews. Staff considers the proposed fee to be fair and reasonable for the
scope of services proposed.
In addition to the contract amount, $260,000.00 ($130,000.00 water, $130,000.000 sewer) is required for
project management and inspection.
Engineering for North Tarrant Express Segment 4, IH-820 from Randol Mill Road to North of Interchange
Logname: 60NTESEG4A2-KHA Page 1 of 3
with SH121/SH183 is one component of the overall project that includes project management, easement
acquisition, material testing, inspection, construction and contingencies. The overall project budget is
$4,940,300.00. Construction is anticipated to be completed by January 2023.
This project will have no impact on the Water Department's operating budget when complete.
MWBE OFFICE: Kimley-Horn and Associates, Inc. agrees to maintain its initial SBE commitment of 15
percent that it made on the original Agreement and extend and maintain that same SBE commitment of 15
percent to all prior amendments up to and inclusive of the Amendment No. 2. Therefore, Kimley-Horn and
Associates, Inc., remains in compliance with the City's BDE Ordinance and attests to its commitment by its
signature on the Acceptance of Previous SBE Commitment Form executed by an authorized
representative of its company.
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 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 COUNCIL DISTRICTS 2, 8 and 9.
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 Water& Sewer Commercial Paper Fund
for Construction Services on North Tarrant Express Segment 4, IH-820 Project. 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 $114,505,010.00.
Funding for this project is depicted in the table below:
Fund Existing Additional Project Total*
Appropriations Appropriations
Water &
Sewer
2017A $1,091,500.00 $0.00 $1,091,500.00
Bond Fundi i
Logname: 60NTESEG4A2-KHA Page 2 of 3
(56011)
Water &�_�
Sewer °
Commercial $0.00 $540,000.00 1$540,000.00
Paper j
(56016) i
Project Total 1$ 1,091,500.001$540,000-.00 €€$1,631,500.00
*Amounts rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
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Fund Department ccoun Pr�� � �yearramctiviudget�Chartf_eId
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CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Chris Harder (5020)
Additional Information Contact: John Kasavich (8480)
Logname: 60NTESEG4A2-KHA Page 3 of 3