HomeMy WebLinkAboutResolution 5078-04-2019A Resolution
NO. 5078-04-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
SANITARY SEWER MAIN 257 UPPER AND MIDDLE VILLAGE CREEK
PARALLEL RELIEF MAIN PART 2 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 Sanitary Sewer Main 257
Upper And Middle Village Creek Parallel Relief Main Part 2 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 $14,000,000.00 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 161h day of ApriL.?,019.
ATTEST:
By:
Kayser,
City of Fort Worth, Texas
• • • • •
DATE: Tuesday, April 16, 2019
LOG NAME: 60M257P2A-THALLE
SUBJECT:
REFERENCE NO.: C-29096
Authorize Execution of Amendment No. 4 in the Amount of $261,005.00 to City Secretary Contract No.
38536 an Engineering Agreement with Alan Plummer Associates, Inc., for a Revised Contract Amount of
$1,729,630.00, Authorize Execution of a Contract with Thalle Construction Co., Inc., in the Amount of
$11,073,509.70 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 2A,
Provide for Project Costs for a Project Total in the Amount of $16,663,234.00, Adopt Resolution Expressing
Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance
(COUNCIL DISTRICT 8)
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 Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief
Main, Part 2;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water &Sewer Commercial Paper Fund in the amount of $12,108,144.00 for Sanitary Sewer Main
257 Upper and Middle Village Creek Parallel Relief Main, Part 2;
3. Authorize the execution of Amendment No. 4 in the amount of $261,005.00 to City Secretary
Contract No. 38536, an Engineering Agreement with Alan Plummer Associates, Inc., for inspection
services for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 2
(City Project No. C01227); and
4. Authorize the execution of a contract with Thalle Construction Co., Inc., in the amount of
$11,073,509.70 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main,
Part 2A (City Project No. C01227).
DISCUSSION:
This Mayor and Council Communication provides for the construction of the Sanitary Sewer Main 257
Upper and Middle Village Creek Parallel Relief Main, Part 2A project.
On March 31, 2009, (M&C C-23421), the City authorized an engineering agreement in the amount of
$889,676.00 with Alan Plummer Associates, Inc., for Sanitary Sewer Main 257 Upper and Middle Village
Creek Parallel Relief Main, Part 2A to expedite design and construction, the agreement was divided into
Parts 2A and 26. The agreement was subsequently revised by Amendment No. 1 in the amount of
$79,414.00 administratively authorized December 7, 2010, Amendment No. 2 in the amount of
$408,795.00 authorized April 18, 2017 and Amendment No. 3 in the amount of $90,740.00
Logname: 60M257P2A-THALLE Page 1 of 3
administratively authorized March 20, 2018.
Amendment No. 4 will allow Alan Plummer Associates, Inc., (APAI) to provide inspection services during
construction of the Parts 2A and 2B 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 17, 2019 and January 24, 2019 in the Fort
Worth Star-Telearam. On February 28, 2019 the following bids were received:
': ��__:
Thalle Construction Company
_____ __-_ _.__ �-.-_.___a_
S. J. Louis Construction of Texas, Ltd.
Oscar Renda Contracting, Inc.
,� __ -_-, _ _ i_ ___ _ �� e_. _ _ _-._._
AMOUNT � TIME OF COMPLETION
--_ _ --
$11,073,509.70 � 540 Calendar Days
$13,973,788.20
$16,455,110.00
In addition to the contract cost, $552,159.00 is required for Project Management, inspection and material
testing and $221,470.00 is provided for project contingency.
In accordance with the terms of the Agreements between the Cities of Crowley, Burleson, and Fort Worth,
Crowley and Burleson will reimburse Fort Worth for their 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 is anticipated to commence in June, 2019 and be completed by December, 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: Thalle Construction Co., Inc., is in compliance with the City's BDE Ordinance by
committing to six percent MBE participation on this project. The City's MBE goal on this project is six
percent.
Logname: 60M257P2A-THALLE Page 2 of 3
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 Ordinance, because the MWBE Waiver
is based on the sole source information provided to the MWBE Office by the managing department's
project manager.
The project is located in COUNCIL DISTRICT 8.
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 the Water &Sewer Commercial Paper Fund
for the Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 2A 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
$27,834,434.00 for future capital projects. Funding for the Sanitary Sewer Main 257 Upper and Middle
Village Creek Parallel Relief Main, Part 2 project is as depicted below:
^-� Existing __�
FUND Appropriations
_. _. �_ _T
W&S Capital Projects -
Fund 56002 $303,000.00
__ .-�—_ �
___. � _
Clean Water SRF -
Fund 59602 $969,090.00
GSewer Capital Legacy - � $3,283,000.00
!Fund 59607
' Additional
Appropriations
. __ _ -_
$0.00
W&S Commercial Paper $0.00 j
Fund 56016 I
Project Total � $4,555,090.00 �
* Numbers rounded for presentation
$0.00
Project Total*
$303,000.00
$969,090.00
$0 00� $3,283,000.00
$12,108,144.00 �$12,108,144.00
$12,108,144.00 �$16,663,234.00
FUND IDENTIFIERS (FIDsI:
TO
....
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID � ID _ I � � Year � (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # ►moun
ID � � ID � � ( Year � (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
Jay Chapa (5804)
Chris Harder (5020)
John Kasavich (8480)
Logname: 60M257P2A-THALLE Page 3 of 3