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HomeMy WebLinkAboutIR 10269 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10269 May 7, 2019 To the Mayor and Members of the City Council Page 1 of 1 SUBJECT: UPDATE TO SERIES 2019 TAX NOTE ISSUANCE This Informal Report provides updated information regarding the Series 2019 Tax Note issuance scheduled for July, 2019. Staff presented the 2019 Debt Plan to Mayor and Council at the Pre-Council Workshop on April 9, 2019. The presentation identified $8.72 million to be issue for Fire Department apparatus replacements. Subsequent to the presentation, staff identified two additional pieces of equipment for the Transportation and Public Works Department that were approved to be included in the debt issuance during budget discussions, but were not included in the Debt Plan as presented. The two pieces of equipment identified were: Haul Truck and Trailer - 70,000 lb., 48 foot long lowboy equipment trailer with combination 73,800 lb. gross vehicle weight haul tractor. This equipment will be utilized to transport heavy equipment to and from three major service centers to project locations throughout the City for the Streets and Stormwater Operations. Currently, the Division is utilizing contract services to augment the transportation of heavy equipment such as asphalt pavers, wheeled loaders, backhoes, tracked excavators, gradual excavators, bulldozers, motor graders, chip spreaders, compactors, wheel and steel rollers, milling machines and batwing mowers. Limitation of rental equipment availability causes delays on project timelines. Estimated cost of this equipment is $250,000. Milling Machine - 22 foot long, 5 foot wide drum cold tracked milling head, with 22 foot automatic material loading conveyers which will be utilized to excavate, wedge mill and plane mill asphalt roadways in preparation of new pavement. The Milling Machine will ensure crews are wedge milling, plane milling and installing butt joints when preparing asphalt paving projects. This method ensures smooth asphalt transitions improving pavement surface and protects against the loss of street drainage capacity based on curb line elevations. This unit will be partnered with the current asphalt paving unit to mill, pave and repair City streets in compliance with the updated Utility Construction Policy. Estimated cost of this equipment is $590,000. The Series 2019 Tax Note issuance has been increased to $9,725,000 to incorporate the equipment purchase, potential cost increases over estimates, delivery costs, and any increase to cost of issuance. The parameters ordinance for this issuance is on the May 7, 2019 agenda for consideration. Staff will continue to evaluate the appropriateness of financing large equipment acquisitions as a cost-effective strategy to update the fleet and improve staff efficiency. Please contact Kevin Gunn, Interim Chief Financial Officer at 817.392.2015 with any questions. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS