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Home My WebLink AboutResolution 5047-02-2019A Resolution NO. 5047-02-2019 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE UPPER CLEAR FORK DRAINAGE BASIN PARALLEL INTERCEPTOR 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 Upper Clear Fork Drainage Basin Parallel Interceptor 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. ORT WOR�TI 'T Resolution No. 5047-02-2019 Adopted this 12" day of February 2019. ATTEST: By: --------- Mary J. Kayser, Ci y Secretary W�Wom ir MAYOR AND COUNCIL COMMUNICATION MAP 60UCFN272BCVAR-PMCONST -iii-'yf'o-a"•'i jj*�j i 1 w„ .9 " v •,v ..,q d /J� �,�p�t t ? * �` t ei` l � '^ � ,� `,. � � ✓1'+��' 9�i ' <� i �s� k, � WOTT ImF�{D _....+. --•. j''`�� r.' '�,` i � ' ,1� .> �,, m pF I!! INV - WHITE SETTLEMENT�RDtn i �"' W max' yr ♦ w .s �( - � �. / � d �*., .r .�.qz .... x} �✓+dr y 'y ti�. +,.•"4.w'J�'� t-� .�.'�'vi 4�tpr��,.{� � �� s` ,i y , r, a 1> - w�.w +-}� :.,. � ��' �` "i y t � 'f ��,��♦ At,.+ r , t.,a�ww� �;• �, = SEGMENT 1ad - �.02•t 7TH ST. As `yk FF '��171 .: �+l+F '7 Yyh. �►i �uw �SY{� .'w !i' t /i N ) 'tP LANCASTEWAVE �-Al,'�'+_®,�..,n,. SEGMENT 2 r M" E RD;" Z EDr,. Q."'••:s'•"r'.t---�`'' .l a, 4- oll 5.,, ' t., r��;,w'.q>'"_-`` :+'.^t;'.•', ``�;�ij''_1'�fGR /" _f__'�p"-wFtk"'. .� sm 143µ r-471- : SEG MENT 3 �P��, <<°`+-F- • SEGMENT 8 '"� �,., w��4�;��i �� ..,, ry;�-7. � -ry-,'' �.'1�;}4'Ij•1wtP„ C'� � - s.. .1'� i .. uxa�z. 30 rs�evar 30 r �.. WEST;FWY `"gip r ,,� tROSEDAL'E STsFT .yN,Nac'r�� 'i, '�..."'�:;�-F��. r. ",""'_'�•',�;i w � s' t4"it�}. y� t rr n }: Lu m �'i`�" SEGMENT 5 & 6 ; t ; #, _ (�r h;i;';�' 1 ELLESLEY A fdr. {; Lu 'ti• ,. '" it . W J SEGMENT 7 o:. r _ `.R co f' SEGMENT 4 , 06 ,A Q1�i �f '� � � PARK'HIL'L DR m 1 lox WIN �z I rl i FORTWORTH BELL D wp ' W,BERRY,ST f -� j City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 2/12/2019 - Ordinance No. 23572.02-2019 & Resolution;,. No. 5047-02-2019 DATE: Tuesday, February 12, 2019 REFERENCE NO.: "`C-29038 LOG NAME: 60UCFM272272BCVA-PMCONST SUBJECT: Authorize Execution of a Contract with PM Construction & Rehab, LLC, in the Amount of $3,637,206.04 for Upper Clear Fork Drainage Basin Parallel Interceptor Improvements at Various Locations within the Upper Clear Fork Drainage Basin, Provide for Project Costs for a Total Project Cost in the Amount of $4,165,783.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 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 Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the Upper Clear Fork Drainage Basin Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water & Sewer Commercial Paper Fund in the amount of $4,165,783.00; and 3. Authorize the execution of a contract with PM Construction & Rehab, LLC, in the amount of $3,637,206.04 for Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the Upper Clear Fork Drainage Basin (City Project No. CO2448). DISCUSSION: This Mayor and Council Communication provides for the rehabilitation (via trenchless cured -in -place -pipe method) of the City's Sanitary Sewer Main System at eight severely deteriorated locations within the Upper Clear Fork Drainage Basin. Construction of the project was advertised for bid on October 26, 2018 and November 1, 2018 in the Fort Worth Star -Telegram. On December 6, 2018 the following bids were received: BIDDER MOUNT TIME OF ;COMPLETION LLC Construction & Rehab, PM $3,637,206.04 [365 Calendar Days Ark Contracting Services, LLC $3,663,585.50 Granite Construction Company $4,153,221.25 In addition to the contract cost, $346,716.00 is required for Project Management, inspection and material Logname: 60UCFM272272BCVA-PMCONST Page 1 of 3 testing and $181,860.00 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 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 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. M/WBE OFFICE: PM Construction & Rehab, LLC, is in compliance with the City's BDE Ordinance by committing to two percent MBE participation and documenting good faith effort. PM Construction & Rehab, LLC, 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 five percent. The project is located in COUNCIL DISTRICT 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 Water & Sewer Commercial Paper Fund for the Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the Upper Clear Fork Drainage Basin 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 $87,424,762.00 for future capital projects. Funding for the Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the Upper Clear Fork Drainage Basin project is as depicted below: Additional Existing FUND Appropriations Appropriations Project Total* Water & Sewer Capital Projects $230,000.00 $0.00 $230,000.00 Fund 56002 Sewer Capital Fund - Legacy $718,702.00F $0.00 $718,702.00 59607 Logname: 60UCFM272272BCVA-PMCONST Page 2 of 3 Water & Sewer Commercial Paper Fund 56016 Project Total * Numbers rounded for presentation. FUND IDENTIFIERS (FIDS): TO E,�M $948,702.00 $4,165,783.00 1$4,165,783.00 $4,165,783.001$5,114,485—.00 Fundl Department ccoun Project Program ctivity Budget Reference # moun ID ID Year I (Chartfield 2) Fund" Department ccoun Project JProgram ctivity Budget Reference # ID ID Year I (Chartfield 2' CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Liam Conlon (6824) Logname: 60UCFM272272BCVA-PMCONST Page 3 of 3