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Home My WebLink AboutResolution 5009-12-2018A Resolution NO. 5009-12-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NEAR SOUTHSIDE MEDICAL DISTRICT WATER AND SEWER 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 Near Southside Medical District Water and Sewer 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 $4,600,000.00 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 11th day of December 2018. of F•®f�T ATTEST: _ U O B y• Mary J. Kayser, City retary *XAS ORT WO Tamil T MAYOR AND COUNCIL COMMUNICATION MAP City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/11/2018 Ordinance No. 23521-12 2018 8< ResoI*, on No. 5049-12-201.8' DATE: Tuesday, December 11, 2018 REFERENCE NO.: C-28981 LOG NAME: 20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD. SUBJECT: Authorize Execution of Contract with Jackson Construction Ltd, in the Amount of $6,171,356.00 for FY 16 Round 2 of the Council District 9 Street Repair and Reconstruction Program and Near Southside Medical District Water and Sanitary Sewer Main Improvements on Various Streets, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 8 and 9) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached Resolution Expressing Official Intent to Reimburse with Proceeds of Future Debt for the Near Southside Medical District Water and Sanitary Sewer Main Improvements Project; 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water & Sewer Commercial Paper Fund in the amount of $4,188,572.00; and 3. Authorize the execution of a contract with Jackson Construction Ltd, in the amount of $6,171,356.00 for Round 2 of the Council District 9 Street Repair and Reconstruction Program and Near Southside Medical District Water and Sanitary Sewer Main Improvements Project on various streets (City Project No's 02387 and 02445). DISCUSSION: On August 5, 2014, (M&C C-26906) the City Council authorized a Resolution executing a funding agreement with Fort Worth South, Inc., in the amount of $10,000,000.00 for Council District 9 Street Repair and Reconstruction Program. The Program leveraged funding in an amount up to $5,000,000.00 from the Tax Increment Reinvestment Zone No. 4 (Southside TIF) over four years. The City of Fort Worth matched the funds in an amount up to $1,000,000.00 using 2014 Bond Program -Street Improvements Funds and 2014 Bond Program -Grant Matches Funds in an amount up to $4,000,000.00. Construction of Round 1 of the project has been completed. This Mayor and Council Communication is to authorize a construction contract for Round 2 of the Council District 9 Street Repair and Reconstruction Program and Near Southside Medical District Water and Sanitary Sewer Main Improvements on the following streets: Street �— From To Avenue . Vickery Boulevard E. Broadwav Avenue Logname: 20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD. Page 1 of 3 �E.Tucker Street (Bryan Avenue E, Dashwood Street 8 Main Street 1W. Daggett Avenue S. Jennings Avenue_ Calhoun Street IE. Vickery Boulevard E. Peter Smith Street $. Main Street Calhoun Street �E Peter Smith Street Amie"Crawford Street awford Street _ 1E. Peter Smith Street `S. Calhoun Street Crawford Street F Main Street __ - FE. Broadway Avenue rBryan Avenue S. C! it -de -sac S. Calhoun Street E. Hattie Street n Avenue iE. Rosedale Street (E. Terrell Avenue ckery Boulevard iS. Main Street I.H. 35 W_*' CDs8 and 9 The Transportation and Public Works Department's share on this contract is $2,618,148.25 which is available in the 2014 Bond Program Fund and the Specially Funded Projects Fund of the project (City Project No. CO2387). The Water Department's share on this contract of $3,553,207.75 will be available in the Water and Sewer Commercial Paper Fund of the project (City Project No. CO2445). The project was advertised for bids August 30, 2018 and September 6, 2018 in the Fort Worth Star - Telegram. On October 18, 2018, the following bids were received: Bidders ,Jackson Construction Ltd cClendon Construction Company, nc. Amount iTime of Com $6,171,356.00 430 Calendar _ $6,557,958.75 rk Contracting Services, LLC $6,729,261.50 Labile and Winn, Inc. ($7,120,870.80 In addition to the contract cost $821,954.00 (Water: $399,437.00; Sewer: $58,267.00; TPW $364,250.00) is required for project management, inspection and material testing and $308,567.00 (Water: $156,522.00; Sewer: $21,138.00; TPW: $130,907.00) 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 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 Logname: 20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD. Page 2 of 3 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. Upon completion of this capital project, it is anticipated that there will be no impact on Transportation and Public Works annual operation budget and no impact to the Water Department's operating budget. Construction is expected to start in February 2019 and be completed by April 2020. M/WBE OFFICE: Jackson Construction Ltd, is in compliance with the City's BDE Ordinance by committing to 0% MBE participation and documenting good faith effort. Jackson Construction, Ltd. 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%. The project is located in COUNCIL DISTRICTS 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 current capital budget, as appropriated, of the 2014 Bond Program Fund, the Specially Funded Projects Fund, and the Water and Sewer Commercial Paper Fund. 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 Projects. After this transfer, the balance will be $101,233,960.00. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project ctivity Budget Reference # moun ID ID JProgram I Year Chartfield 2 FROM Fund Department ccoun Project ctivity Budget Reference # moun ID ID JProgram I Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Susan Alanis (8180) Steve Cooke (5134) Mary Hanna (5565) Logname: 20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD. Page 3 of 3