HomeMy WebLinkAboutResolution 5131-09-2019 A Resolution
NO. 5131-09-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CHURCHILL
ROAD WATER AND SANITARY SEWER IMPROVEMENTS
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 Churchill Road Water and Sanitary
Sewer Improvements 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, THAT:
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 $11,000,000.00 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 24th day of September 2019.
ATTEST: 0RT�
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By:
Mary Kayser, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/24/19 M&C FILE NUMBER: M&C 19-0197
LOG NAME: 60CHURCHILLROAD-FLOWLINE
SUBJECT
Authorize Execution of a Contract with Flow-Line Construction,Inc.,in the Amount of$8,136,955.00 for Churchill Road Water and Sanitary Sewer
Improvements,Provide for Project Costs and Contingencies for a Project Total in the Amount of$8,903,938.00,Adopt Resolution Expressing
Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICT 2 AND WITHIN
THE CITY OF RIVER OAKS)
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 Churchill Road
Water and Sanitary Sewer Improvements;and
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water&Sewer Commercial Paper
Fund in the amount of$8,903,938.00 for Churchill Road Water and Sanitary Sewer Improvements;and
3. Authorize the execution of a contract with Flow-Line Construction,Inc.,in the amount of$8,136,955.00 for Churchill Road Water and Sanitary
Sewer Improvements(City Project No. 100888).
DISCUSSION:
This Mayor and Council Communication provides for the construction of a Churchill Road Water and Sanitary Sewer Improvements from White
Settlement Road to River Oaks Boulevard.The project provides for the replacement of the existing 12-inch water main in the roadway with a 24-
inch water main along with the replacement of deteriorated sanitary sewer mains.
The project was advertised for bid on May 30,2019 and June 6,2019 in the Fort Worth Star-Telegram.On August 15,2019 the following bids
were received:
BIDDER AMOUNT TIME OF COMPLETION
Flow-LineConstruction, Inc. $8,136,955.00 720 Calendar Days
Woody Contractors, Inc. $8,339,970.00
Jackson Construction, Ltd. $9,020,020.00
Thalle Construction Co.,Inc. $11,078,275.09
In addition to the contract cost,$588,102.00(Water:$452,091.00;Sewer:$136,011.00)is required for Project Management, inspection and
material testing and$178,881.00(Water:$130,455.00;Sewer:$48,426.00)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 2019-2023 Five Year Capital Improvement Plan on September 18,2018.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 November,2019 and be completed by November,2021.This project will have no impact on the Water
Department's Operating Budget when complete.The sewer component of the project is part of the Water Department's Sanitary Sewer Overflow
Initiative Program.
MM/BE OFFICE:Flow-Line Construction,Inc., is in compliance with the City's BDE Ordinance by committing to four percent MBE participation
and documenting good faith effort.Flow-Line Construction,Inc.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 six percent.
The project is located in COUNCIL DISTRICT 2 AND WITHIN THE CITY OF RIVER OAKS.
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 Churchill Road Water and Sanitary Sewer Improvements 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$113,280,068.00 for future capital projects.Funding for the Churchill Road Water and
Sanitary Sewer Improvements project is as depicted below:
FUND Existing Additional Project Total*
Appropriations Appropriations _
Water&Sewer Bond $653,804.00 $0.00 $653,804.00
2017A-Fund 56011
W&S Commercial $0.00 $8,903,938.00 $8,903,938.00
Paper-Fund 56017
Project Total $653,804.00 $8,903,938.00 $9,557,742.00
*Numbers rounded for presentation purposes.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Lawrence Hamilton 2626