HomeMy WebLinkAboutResolution 5034-01-2019A Resolution
NO. 5034-01-2019
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CULTURAL
DISTRICT / WILL ROGERS WATER AND SANITARY 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 Culture District / Will Rogers Water and
Sanitary 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 $2,800,000.00 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 date any expenditure which is to be
reimbursed is paid.
Adopted this 29th day of January 2019.
OFFORT
ATTEST -
2
Mary J. Kayser, C' ecretary
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FORTWO
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MAYOR AND COUNCIL COMMUNICATION MAP
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FORTWORTH
:
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/29/2019 - Ordinance No. 23542-01-2019 & Resolution
No. 5034-01-2019
DATE: Tuesday, January 29, 2019 REFERENCE NO.: **C-29011
LOG NAME: 60CDWRWSSP6-CIRCLEC
SUBJECT:
Authorize Execution of Amendment No. 5 in the Amount of $244,300.00 to City Secretary Contract No.
48102, an Engineering Agreement with Kimley-Horn and Associates, Inc. for a Revised Contract Amount of
$1,316,550.00, Authorize Execution of a Contract with William J. Schultz, Inc. dba Circle C Construction
Company, in the Amount of $1,924,665.00 for Cultural District/W11 Rogers Water and Sanitary Sewer
Improvements, Part 6 — Crestline Road and River Drive, Provide for Project Costs for a Total Project Total
in the Amount of $14,965,078.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures
with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 7 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 Cultural District/Will Rogers Water and Sanitary Sewer Improvements Project,
Part 6 — Crestline Road and River Drive;
2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer
Commercial Paper Fund in the amount of $2,492,498.00; and
3. Authorize the execution of a contract with William J. Schultz, Inc. dba Circle C Construction
Company, in the amount of $1,924,665.00 for Cultural District/Will Rogers Water and Sanitary
Sewer Improvements Project, Part 6 — Crestline Road and River Drive (City Project No. 01468); and
4. Authorize the execution of Amendment No. 5 in the amount of $244,300.00 to City Secretary
Contract No. 39975, for additional engineering services and construction assistance on Cultural
District/Will Rogers Area Water and Sanitary Sewer Improvements Project. (City Project No. 01468).
DISCUSSION:
On February 9, 2010, Mayor and Council Communication (M&C C-24094) the City Council authorized an
Engineering Agreement with Kimley-Horn and Associates, Inc., in the amount of $1,072,250.00 for the
Cultural District/Will Rogers Area Water and Sanitary Sewer Improvements Project. The Agreement was
subsequently revised by four amendments totaling $1,122,465.00 as follows: Amendment No. 1 in the
amount of $46,995.00 administratively authorized on March 17, 2014, Amendment No. 2 in the amount of
$261,070.00 authorized August 5, 2014 (M&C C-26903), Amendment No. 3 in the amount of $570,100.00
authorized September 20, 2016 (M&C C-27934) and Amendment No. 4 in the amount of $269,000.00
authorized August 15, 2017 (M&C C-28331).
This Amendment No. 5 will provide for additional engineering services and assistance during construction
Logname: 60CDWRWSSP6-CIRCLEC Page I of 4
of Part 6 of the Project.
This Mayor and Council Communication also provides for the construction of the Cultural District/Will
Rogers Water and Sanitary Sewer Improvements, Part 6 — Crestline Road and River Drive. This project
will allow for the replacement of the existing deteriorated 20 -inch cast-iron pipe with a 24 -inch ductile iron
pipe to provide additional capacity and reliability of water supply as a direct feed to the Dickies Arena. This
project also includes approximately 870 linear feet of replacement of the trench backfill and paving repair
over an existing sanitary sewer main that was previously replaced. No additional sewer main replacement
is needed for this location.
The project was advertised for bid on October 18, 2018 and October 25, 2018 in the Fort Worth Star -
Telegram. On November 15, 2018 the following bids were received:
William J. Schultz dba Circle C Construction
Company
ackson Construction, Ltd.
Contracting Services, LLC
AMOUNT ITIME OF
COMPETION
!$1,924,665.00;425 Calendar Days
$2,173,808.00 Is 0.00
!$2,371,265.001$ 0.00
In addition to the contract cost, $227,300.00 (Water: $169,711.00, Sewer: $57,589.00) is required for
project management, inspection and material testing and $96,233.00 (Water: $71,736.00, Sewer:
$24,497.00) 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 ash 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 pFesenting 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 Part 6, is anticipated to commence in February, 2019 and be completed by May, 2020.
This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will
Logname: 60CDWRWSSP6-CIRCLEC Page 2 of 4
have no impact on the Water Department's Operating Budget when complete.
M/WBE Office — William J. Schultz, Inc., dba Circle C Construction Company, is in compliance with the
City's BDE Ordinance by committing to zero percent MBE participation on this project. William J. Schultz,
Inc., dba Circle C Construction Company identified several subcontracting and supplier opportunities.
However, the firms contacted in the areas identified did not respond or submit the lowest bids. The City's
MBE goal on this project is 10 percent.
The project is located in COUNCIL DISTRICTS 7 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 the Cultural District/Will Rogers Water and Sanitary Sewer Improvements Project, Part 6 — Crestline
Road and River Drive Project. 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 $95,365,632.00 for future capital projects. Funding for the Cultural
District/Will Rogers Water and Sanitary Sewer Improvements, Crestline Road and River Drive, project is
as depicted below:
FUND
Water Capital Fund 59601
Sewer Capital Fund - Legacy
59607
EI xisting Additional
(Appropriations Appropriations Project Total*
[$-6,794,511.00 $0 .00 $6,794,511.00
r—
,210,652.00 x$0.00
1210,652.00
Water & Sewer 2015A Bond
Fund 56007 $1,772,417.00 $0.00 $11772,417.00
1 wer 2017A Bond $695,000.00 $0.00 $695,000.00
Water & Se
Fund 5601
(Vater & Sewer Commercial
Paper Fund 56016
$0.00
F$2,492,498.00
$2,492,498.00
Project Total _ $12,472,580.00
* Numbers rounded for presentation.
FUND IDENTIFIERS (FIDs):
TO
$2,492,498.00 F$14,665,678.00
Fund
Department
ccoun
Project
Program
ctivity
Budget Reference #
mount
ID
ID
I Year I (Chartfield 2)
Fund Department ccoun Project JProgram ctivity Budget IReference # moun
ID ID I Year I (Chartfield 2)
Logname: 60CDWRWSSP6-CIRCLEC Page 3 of 4
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Jay Chapa (5804)
Chris Harder (5020)
John Kasavich (8480)
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