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Home My WebLink AboutResolution 5036-01-2019A Resolution NO. 5036-01-2019 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE V PART 1 ONE MILLION GALLON ELEVATED WATER STORAGE TANK 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 One Million Gallon Elevated Water Storage Tank 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 $3,400,000.00 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. 0 FO T � ATTEST - By: C_` ' -� Mary J. Kayser,UXyary ORT WONT k1AN m r 0 z C7 O ww r MAYOR AND COUNCIL COMMUNICATION MAP 60WSI DEVPI ESTAN K-LSTRUCTU RES1 STORAGE TANK SITE FORTWORTH, PROPOSED 24" & 16" WATER MAIN (VIAANOTHER CONTRACT) 1 1 OLD WEATIIE=RFORD RD of . w 1 EXISTING WATEf? MAIN �a LL 1 E 20 `' s 7 1 E 30 W30 Tw EXISTING PUMP STATLTANK] & GROUND STORAGE Esri, Q'igitalGlotie ;w- .-.<,- Oeographics, USES, Aer GRID, !;:r. >„-i,1 llG'S User Ccimmunity,P” z L1 R W 0 WHITE SETTLEMENT RD O J J LlJ C7 J PROPOSED ELEVATED STORAGE TANK SITE FORTWORTH, PROPOSED 24" & 16" WATER MAIN (VIAANOTHER CONTRACT) 1 1 OLD WEATIIE=RFORD RD of . w 1 EXISTING WATEf? MAIN �a LL 1 E 20 `' s 7 1 E 30 W30 Tw EXISTING PUMP STATLTANK] & GROUND STORAGE Esri, Q'igitalGlotie ;w- .-.<,- Oeographics, USES, Aer GRID, !;:r. >„-i,1 llG'S User Ccimmunity,P” City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1129120119 - Ordinance No. 23545-01-2019 & Resolution No. 5036-01-2019 DATE: Tuesday, January 29, 2019 REFERENCE NO.: **C-29015 LOG NAME: 60WSIDEVPIESTANK-LSTRUCTURES 1 SUBJECT: Authorize Execution of Contract with Landmark Structures I, L.P., in the Amount of $2,752,000.00 for Westside V Part 1 One Million Gallon Elevated Water Storage Tank and Water Main Project, Provide for Project Costs for a Total Project Total in the Amount of $8,206,184.00, 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 1 One Million Gallon Elevated Water Storage Tank and Water Main Project; 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer Commercial Paper Fund in amount of $3,028,892.00; and 3. Authorize the execution of a contract with Landmark Structures I, L.P., in the amount of $2,752,000.00 for the Westside V Part 1 One Million Gallon Elevated Water Storage Tank 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 one million gallon elevated water storage tank which will be connected to the existing pump station 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 20, 2018 the following bids were received: BIDDER AMOUNT ITIME OF COMPLETION Landmark Structures1 LP 1$2,752,000.00 465 Calendar Days _ Logname: 60WSIDEVPIESTANK-LSTRUCTURES1 Page 1 of 3 Phoenix Fabricators and Erectors, Inc. 1$2,933,560.00 Caldwell Tanks, Inc. 1$3,247,000.00 In addition to the contract cost, $194,332.00 is required for Project Management, inspection and material testing and $82,560.00 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 April, 2019 and be completed by April, 2020. This project will have no impact on the Water Department's Operating Budget when complete. MIWBE OFFICE: Landmark Structures I, L.P., is in compliance with the Cit,y's BDE Ordinance by committing to five 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 I 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 1 One Million Gallon Elevated Water Storage Tank 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 $80,967,788.00 for future capital projects. Funding for the Westside V Part 1 One Million Gallon Elevated Water Storage Tank and Water Main Project is as depicted below: �ppropriations xisting Additional FUND Appropriations Project Total* Water/Sewer Bond 2016 Fund - $256,110.00 $0.00 $256,110.00 56005 Logname: 60WSIDEVPIESTANK-LSTRUCTURESI Page 2 of 3 Water & Sewer Bond 2017A Fund - 56011 F& S Capital Project 2018 und - 56014 Water & Sewer Commercial ;Paper Fund 56016 Project Total * Numbers rounded for presentation. FUND IDENTIFIERS (FIDs): TO $893,100.00 ($0.00 I $893,100.00 0 1428,082.00 1177,292.00 ($0.00 F$3,028,892.00 $3,028,892.00 $600,000.00 $6,456,974.00 $8,206,184.00 Fund Department ccoun Project Program Activity Budget Reference # ID ID I I Year (Chartfield 2) �mount FROM Fund Department ccoun Project ID _ _. _ ID..__ CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ram ctivity Budget Reference # Year (Chartfield 2 Jay Chapa (5804) Chris Harder (5020) Rakesh Chaubey (6051) Logname: 60WSIDEVPIESTANK-LSTRUCTURESI Page 3 of 3