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Home My WebLink AboutResolution 4991-10-2018 A Resolution NO. 4991-10-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE UPPER BIG FOSSIL 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 Upper Big Fossil Creek Drainage 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 $600,000.00 for the purpose of paying the aggregate costs of the Project. Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No obligations will be issued by the City in furtherance of this Statement after a date which is later than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which the property, with respect to which such expenditures were made, is placed in service. Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 16th day of October, 2018. �OF ... W ATTES B Mary J. 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X II �� _ '�:..i�`r��` :,. y�$r�t:iit e''�l+�M► =� ;� � �#� � s�: �Jil+t:�ic �� 3�, • y '^� `w y+�;� °'�,'t�t' y � hit I �'} ,� �S$ i 1 t saM. � 4rtirrl6•'` t+rovirrlirlirw ZINK FORTWORT too - ��• w�tF�tY ..vac ;;: Rii��`•�'' v t , , } City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/1612016 Qrdinance No 23442.1.04018& 12oot�t� ns, No. 4991-10 DATE: Tuesday, October 16, 2018 REFERENCE NO.: **C-28897 LOG NAME: 60UBFM347BCVARA2TNPFUNDING SUBJECT: Adopt Reimbursement Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance in the Amount of$487,085.00 for Increased Costs for Project Management and Real Property Acquisition for Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements within the Upper Big Fossil Creek Drainage Basin (COUNCIL DISTRICT 4) 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 Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements within the Upper Big Fossil Creek Drainage Basin Project; and 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of$487,085.00 and reducing the remaining balance of available funds by the same amount (City Project No. CO2515) DISCUSSION: On September 29, 2015, Mayor and Council Communication (M&C C-27488) the City Council authorized an engineering agreement with Teague, Nall and Perkins, Inc., in the amount of$449,945.00 for the Upper Big Fossil Creek Drainage Basin Parallel Interceptor. The agreement was subsequently revised by Amendment No. 1 in the amount of$9,355.00 administratively authorized August 22, 2017. This Agreement requires additional funding for project management, real property acquisitions and to cover costs associated with Amendment No. 2, in the amount of$52,085.00, that provides for additional engineering services on the project. In addition to the amendment amount, $435,000.00 is required for project management and real property acquisitions. This project will have no impact on the Transportation and Public Works nor the Water Department's operating budgets when completed. Design is expected to be completed by November 2018. Construction is expected to start in August 2019 and be completed by May 2021. The total cost for the Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements is estimated to be $10,110,000.00. 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 Logname: 60UBFM347BCVARA2TNPFUND1NG Page 1 of 3 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. The project is located in COUNCIL DISTRICT 4. This M&C does not request approval of a contract with a business entity. 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 $150,000,000.0 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $107,278,049.00. Funding for the Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements within the Upper Big Fossil Creek Drainage Basin Project as depicted below: FUND Existing Additional Project Appropriations Appropriations Total* Water & Sewer Bond $464,945.00 $0.00 $464,945.00 2015A Fund 56007 Water & Sewer Capital $214,355.00 $0.00 $214,355.00 Projects Fund 56002 Water and Sewer Commercial Paper Fund $0.00 $487,085.00 $487,085.00 56016 Logname: 60UBFM347BCVARA2TNPFUNDING Page 2 of 3 (Project Total 1$679,300.00 1$487,085.00 1$1,166,385.00 *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) Additional Information Contact: Walter Norwood (5026) Logname: 60UBFM347BCVARA2TNPFUNDING Page 3 of 3