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Home My WebLink AboutResolution 5035-01-2019A Resolution NO. 5035-01-2019 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE V PART 2 16/24 -INCH WATER MAIN 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 Westside V Part 2 16/24 -Inch Water Main 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 date any expenditure which is to be reimbursed is paid. Adopted this 291h day of January 2019. h OF FOf?T� ATTEST;. Mary J. Ka_ysei-!City Secretary ORyAbITT 11M MAYOR AND COUNCIL COMMUNICATION MAP 60WSIDEVP2WMAIN-MOUNTAINC City of Fort Worth, Texas. Mayor and Council Communication COUNCIL ACTION: Approved on 1/29/2019 - Ordinance No. 23544-01-2019 & Resolution No. 5035-01-2019 DATE: Tuesday, January 29, 2019 REFERENCE NO.: **C-29014 LOG NAME: 60WSIDEVP2WMAIN-MOUNTAINC SUBJECT: Authorize Execution of a Contract with Mountain Cascade of Texas, LLC, in the Amount of $2,972,194.00 for Westside V Part 2, 16/24 -inch Water Main Project, Provide for Project Costs for a Project Total in the Amount of $5,177,292.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 3) 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 Westside V Part 2, 16/24 -inch Water Main Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water & Sewer Commercial Paper Fund in the amount of $3,428,082.00; and 3. Authorize the execution of a contract with Mountain Cascade of Texas, LLC, in the amount of $2,972,194.00 for the Westside V Part 2, 16/24 -inch Water Main Project, located in west Fort Worth and the City's Extra Territorial Jurisdiction (City Project No. 100378) DISCUSSION: Growth within west Fort Worth and its Extra Territorial Jurisdiction (ETJ) requires the installation of pump stations, water storage facilities and transmission mains in order to provide reliable water service to existing and proposed developments and as required for compliance with state regulatory requirements related to public water system design and operations. On November 17, 2015, the City Council approved the construction of a booster pump station to provide service to portions of the Walsh Ranch and Morningstar developments. This Mayor and Council Communication provides for the construction of a 16/24 -inch water transmission main to connect the pump station to a proposed elevated storage tank for improved levels of service. Construction of the project was advertised for bid on November 15, 2018 and November 22, 2018 in the Fort Worth Star -Telegram. On December 13, 2018 the following bids were received: IDDER Mountain Cascade of Texas, LLC MOUNT [TIME 9F COMPLETION $2,972,194.00 F365 Calendar Days Logname: 60WSIDEVP2WMAIN-M0UNTAINC Page 1 of 3 ;Jackson Construction, Ltd 4$3,296,623.25 3Condie Construction Company $3,352,198.70 Venus Construction Company $3,398,593.60 IArk Construction Services _ r $3,672,721.00 In addition to the contract cost, $307,278.00 is required for Project Management, inspection and material testing and $148,610.00 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 is anticipated to commence in March, 2019 and be completed by March, 2020. This project will have no impact on the Water Department's Operating Budget when complete. M/WBE OFFICE: Mountain Cascade of Texas, LLC, is in compliance with the City's BDE Ordinance by committing to seven percent MBE participation on this project. The City's MBE goal on this project is five percent. The project is located in COUNCIL DISTRICT 3 and the City's Extra Territorial Jurisdiction. 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 Westside V Part 2, 16/24 -inch Water Main 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 $83,996,680.00 for future capital projects. Funding for the Westside V Part 2, 16/24 -inch Water Main project is as depicted below: Existing Additional 1 Logname: 60WSIDEVP2WMAIN-M0UNTAINC Page 2 of 3 4FUND Water/Sewer Bond 2016 Fund - 56005 Appropriations ,110.00 1$0.00 Water & Sewer Bond 2017A Fund -5601 1 $893,100.00 $0.00 r0W& Capital Proj 2018 Fund - $600,000.00 $0.00 14 Water & Sewer Commercial $0.00 $3,428,082.00 Paper Fund 56016 Project Total $1,749,210.00 $3,428,082.00 * Numbers rounded for presentation. FUND IDENTIFIERS (FIDs): TO F Project Total* $256,110.00 $893,100.00 $600,000.00 $3,428,082.00 $5,177,292.00 Fund Department Accoun Project Program ctivity Budget Reference # moun (_ ID ( ID Year (Chartfield 21 and Department ccoun Project Program ctivityl Budget I Reference # ID ID I Year Chartfield 2; CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Rakesh Chaubey (6051) Logname: 60WSIDEVP2WN4AIN-MOUNTAINC Page 3 of 3