HomeMy WebLinkAboutResolution 5063-03-2019Adopted this 5th day of March,2019.
ATTEST:
r
By. , ,
ti
Mary Kayser, Cit,y]Sc4et ` y
no obligation will be issued
years after the date any
STATEMENT EXPRESSING
OFFICIAL , REIMBURSE
EXPENDITURESr. OF FUTURE DEBT FOR THE
WASTEWATER
A. DIVERSION
,.., FROM
,.. EAST ,,; EAGLE MOUNTAIN
L. LAKE
DRAINAGE DRAINAGE 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 Wastewater Diversion From East Of Eagle
Mountain Lake Drainage Basin To Big Fossil Creels Drainage Basin 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,
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 $10,800,000.00 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,
pursuant to this Statement more than three
expenditure which is to be reimbursed is paid.
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DATE: Tuesday, March 5, 2019
LOG NAME: 60WWDIVERSION-MOUNTAINC
SUBJECT:
REFERENCE NO.: **C-29052
Authorize Execution of a Contract with Mountain Cascade of Texas, LLC, in the Amount of $7,497,947.00
for the Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek
Drainage Basin Project, Provide for Project Costs for a Project Total in the Amount of $9,774,000.00, Adopt
Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinance (COUNCIL DISTRICTS 2 and 7)
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 Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil
Creek Drainage Basin Project; and
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the amount of $8,403,638.00 for the Wastewater Diversion
from East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin Project; and
3. Authorize the execution of a contract with Mountain Cascade of Texas, LLC, in the amount of
$7,497,947.00 for Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil
Creek Drainage Basin (City Project No. C01309).
DISCUSSION:
This Mayor and Council Communication provides for the construction of the Wastewater Diversion from
East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin project.
The project was advertised for bid on December 20, 2018 and December 27, 2018 in the Fort Worth Star -
Telegram. On January 24, 2019 the following bids were received:
BIDDER
Mountain Cascade of Texas, LLC
IS. J. Louis Construction of Texas, Ltd.
113ar Constructors Inc.
[Condie Construction Company
IThalle Construction Co., LLC
AMOUNT
$7,497,947.00
�8, 396, 040.60
1$8,498,903.00
$8,506,369.00
$8,993,415.50
ITIME OF COMPETION
280 Calendar Days
Logname: 60 W WDIVERSION-MOUNTAINC
Page 1 of 3
JJackson Construction, Ltd. J$9,856,695.00
Ark Contracting Services, LLC 1$10,108,260.00
In addition to the contract cost, $680,753.00 is required for project management, inspection and material
testing and $224,938.00 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 of the project is anticipated to commence in March, 2019 and be completed by February,
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 — Mountain Cascade of Texas is in compliance with the City's BDE Ordinance by
committing to 8% MBE participation on this project. The City's MBE goal on this project is 7%.
The project is located in COUNCIL DISTRICTS 2 and 7.
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 Wastewater Diversion from East of Eagle Mountain Lake Drainage Basin to Big Fossil Creek Drainage
Basin. 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 $67,212,191.00 for future capital projects. Funding for the Wastewater Diversion from East of Eagle
Mountain Lake Drainage Basin to Big Fossil Creek Drainage Basin project is as depicted below:
79MIZ 7
Water & Sewer Bond 2017A -
Fund 56011
Existing Additional
Appropriations Appropriations
$1,133,155.00
Project Total*
$0.00 1$1,133,155.00
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Water Capital - Fund 59601 1 $5,207.00 1 $0.00 j $5,207.00
Sewer Capital Legacy - Fund I 59607 $232,000.00 $0.00 $232,000.00
j
W&S Commercial Paper - =
Fund 56016 $0.00 $8,403,638.00 €$8,403,638.00
JProject Total $1,370,362.001 $8,403,638.001$9,774,000.00
* Numbers rounded for presentation.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accoun Project Program ctivity Budget Reference # moun
ID ( I (Chartfield 2) 1
FROM
Fund Department Accoun Project ctivity Budget Reference #
ID I ID JProgram I Year I (Chartfield 2)
CERTIFICATIONS:
Submitted for Citv Manager's Office bv:
Originatinq Department Head:
Additional Information Contact:
Jay Chapa (5804)
Chris Harder (5020)
Lawrence Hamilton (2626)
�Amounj
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