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Home My WebLink AboutResolution 5211-04-2020 A Resolution NO. 5211-04-2020 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH TARRANT EXPESS SEGMENT 3A, IH-35W FROM IH-820 TO IH-30 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 North Tarrant Express Segment 3A, IH-35 from IH-820 to IH-30 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 7th day of April 2020. ATTEST: ®ti FOR T By: U= ==y Mary J. Kayser, �TS&retary * �` .,TEXAS MAYOR AND COUNCIL COMMUNICATION MAP 60NTESEG3AA5-KHA - — to ~ ICE 820 o-a MARK IV 1 IMPROVEMENTS NORTH TARRANT 1 1 EXPRESS SEGMENT 3A - + E MEACHAM SLVD 17 1 1 2 } TERMINAL RD � 1 t— � uj uj Z _ � 1 1 C LONG AVErn } 1 I 1 ..__ 1 28TH ST � W F 1 } � iuj 28TH ST. ` z c ' IMPROVEMENTS f y 1 Z i 3 J, Loh C' 1 1 4 1 1 1 4.1 ifs � Lu �0 �FORTWORTH : , ' . ,� � City of Fort Worth, Texas Mayor and Council Communication DATE: 04/07/20 M&C FILE NUMBER: M&C 20-0165 LOG NAME: 60NTESEG3AA5-KHA SUBJECT Authorize Execution of Amendment No.5 in the Amount of$279,600.00 to an Engineering Agreement with Kimley-Horn and Associates, Inc.,for Design Oversight and Project Management Services on North Tarrant Express Segment 3A, IH-35W from IH-820 to IH-30 Project,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICTS 2,8 and 9) 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 Design Oversight and Project Management Services on North Tarrant Express Segment 3A,IH-35W from IH-820 to IH-30 Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water&Sewer Commercial Paper Fund in the amount of$349,600.00 for Design Oversight and Project Management Services on North Tarrant Express Segment 3A, IH-35W from IH-820 to IH-30 Project;and 3. Authorize execution of Amendment No.5 in the amount of$279,600.00 to City Secretary Contract No.43959,an Engineering Agreement with Kimley-Horn and Associates, Inc.,for Design Oversight and Project Management Services on North Tarrant Express Segment 3A,IH- 35W from IH-820 to IH-30,for a Total Revised Contract in the Amount of$1,828,000.00 (City Project No.CO2011). DISCUSSION: Amendment No.5 will provide additional engineering services to oversee and manage the protection and/or relocation of city water and wastewater facilities within the IH-35 corridor. In 2019,TxDOT expanded its contract with NTEMP to include improvements to the Mark IV Parkway and NE Loop 820 Intersection. The proposed scope of services consists of: • Project management • Plan reviews of drawings provided by the contractor or other engineers. • Design for water main replacement on NW 28th Street. • Design for water and sewer main replacement on Mark IV Parkway. • Construction support services including attend preconstruction meetings,on-site observations,construction progress meetings,and shop drawing reviews • Project meetings with the City,stakeholders,contractors,other consultants,and citizens On June 23,2009,Texas Department of Transportation(TxDOT)entered into a 10-year Agreement with North Tarrant Express Mobility Partners (NTEMP)to identify and construct highway improvements in the northeastern part of Tarrant County including portions of the 1-35W, 1-20,and SH- 183 corridors within the City.On October 23,2012(M&C C-25942)the City Council authorized an Engineering Agreement with Kimley-Horn and Associates, Inc.,in the amount of$698,700.00 for design oversight and project management services on North Tarrant Express Segment 3A on IH-35W from IH-820 to IH-30.The Agreement was subsequently revised by Amentment No. 1 for a revised scope at no additional cost, administratively authorized September 18,2013,Amendment No.2 in the amount of$49,700.00 administratively authorized on July 28,2014, Amendment No.3 in the amount of$400,000.00 authorized September 29,2015(M&C C-27487)and Amendment No.4 in the amount of $400,000.00 authorized September 20,2016(M&C C-27935). In addition to the amendment cost, $70,000.00(Water:$40,000.00;Sewer:$30,000.00)is required for Project Management and inspection. 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 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$31,861,475.00 for future capital projects.Funding for the Design Oversight and Project Management Services on North Tarrant Express Segment 3A,IH-35W from IH-820 to IH-30 project is as depicted below: FUND Existing Additional Project Total* _ Appropriations Appropriations Water Capital Fund $2125,855.00 $0.00 $2,125,855.00 59601 Sewer Capital Legacy-Fund $602,249.00 $0.00 $602,249.00.00 59607 Water and Sewer $400,000.00 $0.00 $400,000.00 Bond 2015A 56007 Water and Sewer $1655,208.00 $0.00 $1,655,208.00 Bond 2016 56005 W&S Commercial $0.00 $349,600.00 $349,600.00 Paper-Fund 56017 Project Total V4,783,312.001 $349,600.00 $5,132,912.00 *Numbers rounded for presentation MA BE OFFICE:Kimley-Hom and Associates,Inc.,is in compliance with the City's BDE Ordinance by committing to five percent SBE participation on this Amendment No.5.The City's MBE goal on this Amendment is five percent. The project is located in COUNCIL DISTRICTS 2,8 and 9. FISCAL INFORMATION I 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 design oversight and project management services in the North Tarrant Express Segment 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: John Kasavich 8480