HomeMy WebLinkAboutResolution 5029-01-2019A Resolution
NO. 5029-01-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE MARINE
CREEK INTERCEPTOR MAIN — 279A AND MAIN - 365 IMPROVEMENTS PHASE
II 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 Marine Creek Interceptor Main — 279A and
Main — 365 Improvements Phase II 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 $3,800,000.00 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 d expenditure which is to be
reimbursed is paid.
Adopted this 15th day o;
ATTES
By' — — —
Mary J. Kayser,Wty ISe
nua-ry 2019.
ary -T
ORT WORT '
840 M. =MARINE -_CREEki-RESEF�)��QIF�
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/15/2019 - Ordinance No. 23525-01-2019 & Reso!U#n
No. 5029-01-2019
DATE: Tuesday, January 15, 2019 REFERENCE NO.: **C-28990
LOG NAME: 60MARINECREEKPIIP1-VENUS
SUBJECT:
Authorize Execution of a Contract with Venus Construction Company, Inc., in the Amount of $2,897,370.00
for Marine Creek Interceptor M -279A & M-365 Improvements, Phase II, Part 1, Provide for Project Costs,
Materials Testing and Contingencies for a Total Amount of $3,375,830.00, Adopt Resolution Expressing
Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance
(COUNCIL DISTRICT 2)
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 Marine Creek Interceptor M -279A & M-365 Improvements Phase II, Project;
and
2. Adopt the attached Appropriation Ordinance increasing appropriations in the Marine Creek
Interceptor M -279A & M-365 Improvements Phase II Project in Water and Sewer Commercial Paper
Fund in the amount of $3,375,830.00; and
3. Authorize execution of a contract with Venus Construction Company, Inc., in the amount of
$2,897,370.00 for Marine Creek Interceptor M -279A & M365 Improvements Phase II, Part 1 (City
Project No. 100274).
DISCUSSION:
This Mayor and Council Communication provides for the construction of a 42 -inch & 36 -inch sewer main,
extending from Ten Mile Bridge Road and proceeding northerly 5,190 feet. The project will provide
additional wastewater capacity to the Marine Creek drainage basin.
On April 18, 2017 (M&C C-28194), the City Council authorized an engineering agreement in the amount of
$291,579.00 with Halff Associates, Inc., for design of Marine Creek Interceptor M -279A & M-365
Improvements, Phase II. The agreement was subsequently revised by Amendment No. 1 in the amount of
$133,294.00 authorized January 9, 2018 (M&C C-28528).
The Agreement requires additional funding to cover costs associated with Amendment No. 2 in the
amount of $70,000.00, that provides for inspection assistance on the project.
Construction of the project was advertised for bid on August 9, 2018 and August 16, 2018 in the Fort
Worth Star -Telegram. On September 6, 2018, the following bids were received:
Logname: 60MARINECREEKPIIP 1 -VENUS Page 1 of 3
Bidder
Amount (Time of
Completion
Venus Construction Company, Inc. 1$2,897,370.00
William J. Schultz, Inc., dba Circle C Construction F$2,915,310.00
Company
S.J. Louis Construction of Texas, Ltd. $3,047,961.50
Ark Contracting Services, LLC $3,137,505.00
Condie Construction Company, Inc. $3,600,216.00
Mountain Cascade of Texas, LLC $4,144,242.00
Thalle Construction Company $4,493,139.50
270 Calendar
Days
In addition to the contract amount, $333,591.00 is required for project management, material testing and
city inspection and $144,869.00 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
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 for Phase II, Part 1 is anticipated to commence in March 2019 and be completed by
December 2019. This project is part of the Water Department's Sanitary Sewer Overflow Initiative
Program. This project will have no impact on the Water Department's Operating Budget when complete.
MIWBE OFFICE — Venus Construction Company, Inc., is in compliance with the City's BDE Ordinance by
committing to eight percent MBE participation and documenting good faith effort. Venus
Construction Company, 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.
The project is located in COUNCIL DISTRICT 2.
Logname: 60MARINECREEKPIIPI-VENUS Page 2 of 3
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 Marine Creek Interceptor M -279A & M-365 Improvements, Phase II Project. The Water and Sewer
Commercial Paper Fund includes authority of $150,000,000 for the purpose of providing interim funding
for Water and Sewer Capital Projects. After this transfer, the balance will be $97,858,130.00 for future
capital projects. Funding for the Marine Creek Interceptor M -279A & M365 Improvements, Phase II project
is as depicted below:
FUND
Existing
Appropriations
Additional
Appropriations
Project Total*
Water & Sewer Capital
Projects Fund 56002
Water & Sewer Commercial
Paper Fund 56016
$604,873.00
$0.00
$604,873.00
$3,375,830.00
$0.00
$3,375,830.00
[Project Total
F$604,873.00
$3,375,830.00
$3,980,703.00
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
und! Department
ID
Project Program ctivity Budget Reference #
ID I I Year I (Chartfield 2
mou
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID I ID I I Year I (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Jay Chapa (5804)
Chris Harder (5020)
Walter Norwood (5026)
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