HomeMy WebLinkAboutResolution 5144-11-2019 A Resolution
NO. 5144-11-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
EVERMAN PAKWAY 16-INCH WATER TRANSMISSION MAIN
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 Everman Parkway 16-inch Water
Transmission Main 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 $325,000.00 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.
ORTWO
Adopted this 12th day of November 2019.
ATTEST:
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Mary J. Kayser, y Sec etary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/12/19 M&C FILE NUMBER: M&C 19-0301
LOG NAME: 60EVERMAN16IN-TNP
SUBJECT
Authorize Execution of an Engineering Agreement with Teague Nall and Perkins, Inc.in the Amount of$177,630.00 for Design of Everman
Parkway 16-inch Water Transmission Main from Future Extension of Hemphill Street to Cameron Hill Point at W.Everman Parkway, Provide for
Staff Costs, Property Acquisition and Utility Coordination for a Total Project Amount of$268,655.00,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 Everman Parkway
16-inch Water Transmission Main Project;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the amount of$268,655.00 for
the Everman Parkway 16-inch Water Transmission Main Project in the Water and Sewer Commercial Paper Fund;and
3. Authorize execution of an Engineering Agreement with Teague Nall and Perkins, Inc.,in the amount of$177,630.00 for Design of Everman
Parkway 16-inch Water Transmission Main Project(City Project No.102071).
DISCUSSION:
This Mayor and Council Communication is to authorize the preparation of plans and specifications for the Everman Parkway 16-inch Water
Transmission Main Project from future Hemphill Street to Cameron Hill Point.The proposed project will allow for the connection of the existing 16-
inch water main from east to west on future Everman Parkway and provide for increased water delivery in the distribution system.
Teague Nall&Perkins, Inc.,proposes to provide all the necessary design services for the Everman Parkway 16-inch Water Transmission Main
project for a fee of$177,630.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $91,025.00 is required for project management, utility coordination and real property acquisition.
Engineering for the Everman Parkway 16-inch Water Transmission Main project is one component of the overall project that includes project
management,real property/easement acquisition, utility coordination, material testing, inspection,construction and contingencies. Design is
expected to start in October 2019 and be completed by October 2020.Construction is anticipated to commence in December 2020 and be
completed by December 2021.
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.
The Water&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$123,457,335.00 for future capital projects. Funding for the Everman Parkway 16-
inch Water Transmission Main project is depicted in the table below:
FUND Existing Additional Project
Appropriations Appropriations Total*
W&S Commercial Paper-Fund $0.00 $268,655.00 $ 668,655.00
P ��
56017
Project Total $0.00 $268,655.00 $268,655.00
Numbers rounded for presentation
This project will have no impact on the Water Department's operating budget.
M/WBE OFFICE:Teague Nall and Perkins, Inc., is in compliance with City's BDE Ordinance by committing to 12 percent SBE participation on this
project.The City's SBE goal on this project is 10 percent.
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 Everman Parkway 16-inch Water Transmission Main Project. Prior to any
expenditure being incurred,the Water Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating_Business Unit Head: Chris Harder 5020
Additional Information Contact: Rakesh Chaubey 6051