HomeMy WebLinkAboutResolution 5107-06-2019 A Resolution
NO. 5107-06-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
ENGINEERING DESIGN FOR REPLACING PUBLIC SANITARY SEWER MAIN
M-295 AND M-329 VILLAGE CREEK BASIN AND HANNA RANCH 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 Engineering Design for Replacing
Public Sanitary Sewer Main M-295 and M-329 Village Creek Basin and Hanna Ranch
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 $535,000.00 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
ORT WORT
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 251h day of June 2019.
ATTEST: FOi�r�
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Mary J. Kayser, i Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/25/2019 Resolution No. 5107-06-2019 & Ordinance No.
23712-06-2019
DATE: Tuesday, June 25, 2019 REFERENCE NO.: **C-29177
LOG NAME: 60HANNA RANCH DESIGN PROCUREMENT AGREEMENT
SUBJECT:
Authorize Execution of Design Procurement Agreement with Legends of Hanna Ranch, Ltd., with City
Participation in the Amount of$458,771.30, for Engineering Design for Replacing Public Sanitary Sewer
Mains M-295 and M-329, Located in Village Creek Basin; 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. Authorize the execution of a Design Procurement Agreement with Legends of Hanna Ranch, Ltd.,
with City Participation in the amount of$458,771.30, for the Engineering Design for replacing public
sanitary sewer mains M-295 and M-329 located in the Village Creek basin;
2. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds
of Future Debt; and
3. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the amount of$483,775.00.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is for the City to participate with Legends of
Hanna Ranch, Ltd (Developer), in the engineering design cost for replacing and upsizing public sanitary
sewers M-295 and M-329, which provide service to the City of Fort Worth as well as the City of
Everman in the Village Creek basin. The City Council adopted Capital Improvement Plan includes the
replacement and upsizing of these sewer mains ("Project"), with funding identified through the Callable
Commercial Paper ("CP") program to be reimbursed with future revenue bonds. The Project will replace a
fifty year old sanitary sewer main and provide additional capacity for future growth within the basin.
The developer is designing and constructing the Hanna Ranch Development ("Development") located
southeast of 1-35W and E. Altamesa Blvd. The Development requires 0.69 MGD sewer capcity, which will
be provided as part of the sewer main replacements in the Project. The Developer has agreed to design
and construct the Project as part of the Development. The Developer has selected Huitt Zollars, Inc., as
the engineering consultant to perform the design of the Project. The estimated fee for the City's portion of
the engineering design, topographic survey, easement document preparation, construction documents
and public bidding is $458,771.30.
The engineering design will be reviewed through the City's Infrastructure Plan Review process. The City
Logname: 60HANNA RANCH DESIGN PROCUREMENT AGREEMENT Page 1 of 3
will manage the easements aquisitions related to the City Participation portions of the Project. Staff
concurs that the fees charged by Huitt Zollars, Inc., are fair and reasonable for the work to be performed.
Cost Sharing Breakdown
Legends of Hanna Ranch, Ltd Participation $27,988.70
Y p L $458,771.30
City of Fort Worth Participation
Total Engineering Design Cost $486,760.00
In addition to the amount of$458,771.30 needed for the design Project, $25,003.70 is required for project
management and real property staff cost for a total cost of$483,775.00.
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 FY2018-2022 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 Statements, 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 other 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.
Upon completion of the design, the construction of the Project will be publicly bid. Staff will present an
M&C to the City Council seeking approval for the City to enter into a Community Facility Agreement with
City Particiation for the construction of the Project.
This project is located in COUNCIL DISTRICT 8, Mapsco 106F-G-K-L-M.
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 Engineering Design of public infastructure improvements including replacing public sanitary sewer
main M-295 and M329 located in Village Creek basin for the future growth in Southeast Fort Worth and
Hanna Ranch Development Project. The Water and Sewer Commercial Paper Fund includes the 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 $24,578,542.00 for future Capital Projects. Funding for the
engineering design of public infrastructure improvements including replacing public sanitary sewer main
M-295 and M-329 located in Village Creek Basin project is as depicted below:
Logname: 60HANNA RANCH DESIGN PROCUREMENT AGREEMENT Page 2 of 3
[FUND FExxisting—Additional Project
propriations Appropriations Total*
W&S
Commercial $0.00 $483,775.00 $483,775.00
Paper- Fund
56016
Project Total -- ^- - $0.00( — $483,775.00 $483,775.00
*Amounts rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID 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 by: Jay Chapa (5804)
Originating Department Head: Chris Harder (5020)
Soon Wong (8369)
Additional Information Contact: Yogesh Patel (7814)
Logname: 60HANNA RANCH DESIGN PROCUREMENT AGREEMENT Page 3 of 3