The URL can be used to link to this page

Home My WebLink AboutResolution 5212-04-2020 A Resolution NO. 5212-04-2020 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CULTURAL DISTRICT / WILL ROGERS WATER AND SANITARY SEWER IMPROVEMENTS 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 Cultural District/ Will Rogers 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 $160,000.00 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: .... B Mary J. Kayser, Ci y ecretary TEX MAYOR AND COUNCIL COMMUNICATION MAP 60CDWRWSSP6C01 -CIRCLEC MORTON 3T.� lei Ali LL — W AN Tr AVE ,. ! I 1 i. RE TLINE RDt, � `' _ ;dw .U. .ate i* 4 y IF 00 .14 : p { FORTWORTH - YY City of Fort Worth, Texas Mayor and Council Communication DATE: 04/07/20 M&C FILE NUMBER: M&C 20-0173 LOG NAME: 60CDWRWSSP6CO1-CIRCLEC SUBJECT Authorize Execution of Change Order No. 1 in the Amount of$131,075.00 with William J.Schultz, Inc.dba Circle C Construction Company,for Cultural District-Will Rogers Water and Sanitary Sewer Improvements, Part 6—Crestline Road and River Drive for a Revised Contract Cost of $2,055,740.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICTS 7 and 9) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of Change Order No. 1 to City Secretary Contract No.51918 in the amount of$131,075.00 with William J.Schultz, Inc.dba Circle C Construction Company,or Cultural District-Will Rogers Water and Sanitary Sewer Improvements Project, Part 6-Crestline Road and River Drive for a revised contract cost of$2,055,740.00(City Project No.C01468); 2. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt for the Cultural District- Will Rogers Water and Sanitary Sewer Improvements Project, Part 6-Crestline Road and River Drive;and 3. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of $131,075.00,from available funds,to fund the Cultural District-Will Rogers Water and Sanitary Sewer Improvements Project, Part 6- Crestline Road and River Drive. DISCUSSION: On January 29,2019, Mayor and Council Communication(M&C C-29011)the City Council authorized a Contract with William J.Schultz, Inc.dba Circle C Construction Company,in the amount of$1,924,665.00 for the Cultural District-Will Rogers Water and Sanitary Sewer Improvements Project, Part 6—Crestline Road and River Drive. Change Order No. 1 will provide for the following increased and additional pay item quantities that are necessary on the project: • 24-inch water trenchless installation across Crestline Road to minimize disruption to traffic. • Median demolition and restoration at Crestline Road to provide access to the project site. • Traffic control at Trinity Park Drive. • Pavement milling and asphalt overlay. 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 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 2.3 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 approved the Water Department's Fiscal Year 2020-2024 Five Year Capital Improvement Plan on September 17,2019.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. Funding for the Cultural District/Wll Rogers Area Water and Sanitary Sewer Improvements as depicted in the table below: Fund Existing Additional project Total* Appropriations Appropriations _1 Water Capital Fund $6,794,511.00E� $0.00 $6,794,511.00 59601 __ Sewer Capital Fund $3,210,652.00 $0.00$3,210,652.00 —59607 Water&Sewer 2015A Bond Fund $1,772,417.00 $0.00 $1,772,417.00 56007 Water&Sewer 2017A Bond Fund $695,000.00 $0.00 $695,000.00 56011 WS Capital Project $2 492,498.00 $0.00 $2,492,498.00 2019 Fund 56016 Water&Sewer Commercial Paper $253,865.00 $131,075.00 $384,940.00 Fund 56017 Project Total 7� 11$15,218,943.00 $15,350 018.00 $131,075.00 ' *Numbers rounded for presentation purposes. M/WBE Office—A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the OBD,in accordance with the BDE Ordinance,because the purchase of good or services is from sources where subcontracting or supplier opportunities are negligible. The project is located in COUNCIL DISTRICTS 7 AND 9. 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(W&S Commercial Paper)for Cultural District/Mll Rogers Water and Sanitary Sewer Improvements 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