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Home My WebLink AboutResolution 5073-04-2019A Resolution NO. 5073-04-2019 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH HOLLY WATER TREATMENT PLANT SEDIMENTATION BASIN SLUDGE REMOVAL SYSTEM REPLACEMENT PROJECT WHEREAS, the City of Fort Worth, Texas (the y") 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 North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement 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 $9,200,000.00 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 9t" day of April 2019. ATTEST: By: cretary �y o NHV/A0TVS18SRSKm /1AARCOO N\ �!Lrm -- lip �IIps ! ` pi P 7 ir kill - a. 1.- e.`. s -K h hr _ y r �Pip pp pip kapip ? 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LU aim A SEDIMENTATION "ill" � i ! ; it NORTH BASIN ®; �__ I . r . �p HOLLY h�;I 'W13TH STT L+ Il;LML _ :i"-. - —- — -- — d -.b III lit a W GA ER VE lift ° r J �ITA FORT WORTH 'p-KAT 4; ilF r C pip f'' F W,EL' PASO.S'T City of Fort Worth, Texas Mayor and Council C DATE: Tuesday, April 9, 2019 LOG NAME: 60NHWTPSBSR-BARCON �TuTii unication REFERENCE NO.: **C-29090 SUBJECT: Authorize Execution of Amendment No. 3 in the Amount of $393,152.00 to City Secretary Contract No. 50006 an Engineering Agreement with Alan Plummer Associates, Inc., to Provide for Inspection Services, for a Revised Contract Amount of $1,151,233.00, Authorize Execution of a Contract with Bar Constructors, Inc., in the Amount of $7,528,000.00 for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement, Provide for Project Costs for a Project Total in the Amount of $9,093,069.00, 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 North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water &Sewer Commercial Paper Fund in the amount of $8,307,069.00 for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement; 3. Authorize the execution of Amendment No. 3 in the amount of $393,152.00 to City Secretary Contract No. 50006 to provide for inspection services for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement (City Project No. CO2328); and 4. Authorize the execution of a contract with Bar Constructors, Inc., in the amount of $7,528,000.00 for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement (City Project No. CO2328). DISCUSSION: This Mayor and Council Communication provides for the construction of the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project. On November 7, 2017, (M&C C-28464), the City Council authorized an engineering agreement in the amount of $688,037.00 with Alan Plummer Associates, Inc., for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement. The agreement was subsequently revised by Amendment No. 1 in the amount of $16,005.00 administratively authorized July 31, 2018 and Amendment No. 2 in the amount of $54,039.00 administratively authorized November 19, 2018. Amendment No. 3 will allow Alan Plummer Associates, Inc., (APAI) to provide inspection services during Logname: 60NHWTPSBSR-BARCON Page 1 of 3 construction of the project. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. Construction of the project was advertised for bid on January 3, 2019 and January 10, 2019 in the Fort Worth Star -Telegram. On February 14, 2019 the following bids were received: Bar Constructors, Inc. Felix Construction Company AMOUNT I TIME OF COMPLETION $7,528,000.00 $9,675,297.00 365 Calendar Days In addition to the contract cost, $160,077.00 is required for Project Management, City inspection and material testing and $225,840.00 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 May, 2019 and be completed by May, 2020. M/UVBE OFFICE: Bar Constructors, Inc., is in compliance with the City's BDE Ordinance by committing to 6 percent MBE participation on this project. The City's MBE goal on this project is 5 percent. Additionally, Bar Constructors, Inc., is a certified M/UVBE firm. APAI: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the MWBE Office, in accordance with the MWBE or BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. The project is located in COUNCIL DISTRICT 9. Logname: 60NHWTPSBSR-BARCON Page 2 of 3 The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the Water &Sewer Commercial Paper Fund for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement 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 $39,942,578.00 for future capital projects. Funding for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project is as depicted below: FUND W&S Capital Project 2018 - Fund 56014 W&S Commercial Paper - Fund 56016 Project Total * Numbers rounded for presentation. FUND IDENTIFIERS �FIDs1: Existing Appropriations $786,000.00 $0.00 i Additional � Appropriations $0.00 Project Total* $786,000.00 $8,307,069.00 1$8,307,069.00 F -- $786,000 00 $8,307,069.00 ($9,093,069.00 FROM Fund Department ccoun Project Program ctivity Budget Reference # � n ID ID Year �Chartfield_2�__ CERTIFICATIONS: Submitted for City Manager's Office b� Originating Department Head: Additional Information Contact: Jay Chapa (5804) Chris Harder (5020) Dena Johnson (7866) Logname: 60NHWTPSBSR-BARCON Page 3 of 3