HomeMy WebLinkAboutResolution 5064-03-2019STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CROWLEY
RELIEF INTERCEPTOR M-325 VILLAGE CREEK BASIN 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 Crowley Relief Interceptor M-325 Village
Creek 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, 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 $5,625,000.00 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 '.
Adopted this 5th day of March,Z019
ATTEST: V
_
Mary Kayser, CitS retary
AND COUNCIL COMMUNICATION MAI
E
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City of Fort Worth, Texas
DATE: Tuesday, March 5, 2019
LOG NAME: 60CROWLEYSSP1-JACKSON
SUBJECT:
REFERENCE NO.: **C-29051
Authorize Execution of a Contract with Jackson Construction, Ltd., in the Amount of $4,587,826.00 for
Crowley Relief Interceptor M-325 for Village Creek Basin, Part 1, Provide for Project Costs for a Project
Total in the Amount of $16,295,053.00, Adopt Resolution Expressing Official Intent to Reimburse
Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 6)
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 Crowley Relief Interceptor M-325 for Village Creek Basin, Part 1 Project;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the amount of $5,106,498.00 for the Crowley Relief
Interceptor M-325 for Village Creek Basin, Part 1 Project; and
3. Authorize the execution of a contract with Jackson Construction, Ltd., in the amount of
$4,587,826.00 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 1 (City Project No.
100276).
DISCUSSION:
This Mayor and Council Communication provides for the construction of the Crowley Relief Interceptor M-
325 for Village Creek Basin, Part 1, a segment of a three part project that will provide additional capacity
to convey anticipated flows from proposed development within the Upper Village Creek and Clear Fork
Drainage Basins.
The project was advertised for bid on December 13, 2018 and December 20, 2018 in the Fort Worth Star -
Telegram. On January 17, 2019 the following bids were received:
C MM 9
Jackson Construction, Ltd.
William J. Schultz dba Circle C Construction
Company
IS. J. Louis Construction of Texas, Ltd.
Venus Construction Co.
AMOUNT TIME OF
COMPETION
1$4,587,826.00 365 Calendar Days
$4,883,749.00
1$5, 041,167.83
1$5,143,525.00
Logname: 60CRO WLEYS SP 1-JACKS ON
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tArk Contracting Services, LLC P,348,075.00
,Thalle Construction Co., LLC ($5,426 791.23
Mountain Cascade of Texas, LLC$5,792,850.00
Belt Construction, Inc. 0,054,889.50
In addition to the contract cost, $381,037.00 is required for project management, inspection and material
testing and $137,635.00 is provided for project contingency.
In accordance with the terms of the amendment of the Agreement between the Cities of Crowley and Fort
Worth, Crowley will reimburse Fort Worth for its share of the total project cost upon completion of the
entire project.
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 for Part 1, 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 — Jackson Construction Ltd., is in compliance with the City's BDE Ordinance by committing
to 0.00 percent MBE participation and documenting good faith effort. Jackson Construction Ltd., 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 12%.
The project is located in COUNCIL DISTRICT 6 and within Tarrant County and the City of Crowley.
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 Crowley Relief Interceptor M-325 for Village Creek Basin, Part 1 Project. The Water and Sewer
Logname: 60CROWLEYSSPI-JACKSON Page 2 of 3
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 $75,615,829.00 for
future capital projects. Funding for the Crowley Relief Interceptor M-325 for Village Creek Basin project is
as depicted below:
FUND
W& S Commercial Paper -
Fund 56016
Existing
Appropriations
$9,094,061.00
Additional
Appropriations
$5,106,498.00
Project Total*
$14,200,559.00
Sewer Capital Legacy - Fund $2,094,494.00 $0.00 $2,094,494.00
59607
--- --- ----------
Project Total �$11,188,555.00 $5,106,498.00 $16,295,053.00
Numbers rounded for presentation.
FUND IDENTIFIERS (FIDs):
TO
(Fund) Department ccounj Project �Programl ctivity Budget Reference # mounl
ID ID I Year (Chartfield 2)
FROM
Fund Department ccounj Project �Programl ctivity Budget Reference # moul
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for Citv Manager's Office bv:
Originating Department Head:
Additional Information Contact:
Jay Chapa (5804)
Chris Harder (5020)
Rakesh Chaubey (6051)
Logname: 60CROWLEYSSP1-JACKS ON
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