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HomeMy WebLinkAboutOrdinance 24218-05-2020 Ordinance No.24218-05-2020 AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER & SEWER COMMERCIAL PAPER FUND IN THE AMOUNT OF $5,911,959.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE CFA-TRADITION OFFSITE WATER LINE NS 3 PROJECT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2019-2020 in the Budget of the City Manager,there shall also be increasing appropriations in the Water&Sewer Commercial Paper Fund in the amount of $5,911,959.00, from available funds, for the purpose of funding the CFA- Tradition Offsite Water Line NS 3 Project. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance,which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 23835-09-2019 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY Richard 7,2020 16:08 CDT' Assistant City Attorney Mary J. Kayser ADOPTED AND EFFECTIVE: May 19, 2020 OF FORT, �XAS. NS-M WATER ER ILA HT SEQ/N24,NS 11 SMN IrN8411 END 908'Mill!WATER UNE WATER UNE WATER LINE PSOM FRDU 24 L SH 114 W END iR'AI"I WATER LINE END2�t°NS41! WATER LlAGE Sr NS-11 WATER UNE PSIZDPR01�424 o� 0 N 0 � 3 �1Yyf G J L u `c 3 � 0 BEQlNSrNS4#WATERu PSL MD FROMM � s SCAL& 1"=2M' 0 I SENDM4 CL RANCH PRMAUD BY., PREPARED FM- 8 GUUDYMI HM Il`UF.M TS,LP 230DU slAY@itl4SM4WV OWL ENONEW—PLANNEM-KNWEYDNB 0 7(� a" MWO407)�Tema 74M Ad®MMER 2019 W City of Fort Worth,Texas Mayor and Council Communication DATE: 05/19/20 M&C FILE NUMBER: M&C 20-0345 LOG NAME: 60TRADITION OFFSITE NS3 WATERLINE SUBJECT Authorize Execution of a Community Facilities Agreement with HT HWY 114 Development LP with City Participation in an Amount Not to Exceed $5,911,959.00 for Oversizing Water Mains in the Vicinity West of FM 156 and Highway 114 to Serve Tradition Central Development and Anticipated Future Growth in North Fort Worth,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Appropriation Ordinance(COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a Community Facilities Agreement with HT HWY 114 Development LP with City Participation in an amount not to exceed$5,911,959.00,for oversizing water mains in the vicinity west of FM 156 and SH 114 to serve Tradition Central Development and anticipated future growth in north Fort Worth(City Project Number 102240); 2. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt for CFA-Tradition Offsite Water Line NS3 project;and 3. Adopt the attached Appropriation Ordinance increasing appropriations in the Water&Sewer Capital Project 2020A Fund in the amount of $5,911,959.00 from available funds,to fund the CFA-Tradition Offsite Water Line NS 3 project. DISCUSSION: HT HWY 114 Development LP(Developer)is constructing the Tradition Central Development(Development)located north of Highway 114 and west of Interstate 35W on FM 156. The Water Department would like to cost participate in the construction to:oversize a proposed 30-inch water main to a 36-inch water main approximately 9545 linear feet;oversize a proposed 24-inch water main to a 36-inch water main approximately 10,430 linear feet to SH 114;and to oversize a 12-inch water main to a 16-inch water main approximately 2,070 linear feet.Additional,to these oversizing of water main,the City will also cost participate for the pressure plane valve at 100%,which is requested by City for transfer water between pressure planes and not related to oversizing.The oversized water mains will serve the Tradition Central Development and anticipated future growth in north Fort Worth. Tradition Offsite Water line NS3 project assigned City Project No. 102240 Accela System Record IPRC19-0164. Construction of the water mains will be publicly bid.Public Bid opens on May 1411,2020.The City's cost participation in the construction and oversizing of the water mains is estimated to be in an amount not to exceed$5,911,959.00 as shown in the table below: A.Water Line Developer City Cost Total Cost Construction Cost 1.Water $5,745,174.00 $4,925,695.00$10,670,869.00 2.Sewer $0 $0 $0 Contingency20% $1,149,035.00 $985,139.00 $2,134,174.00 Construction Fees JIB. Inspection Fee $85,015.00 $980.00 1$85,995.00 C.Material Testing Fee F$16,4790.00 $145.00 �$16,635.00 Total Project Cost' $6,995,714.00 $5,911,959.00 $12,907.673.00 The reimbursement of the participation,excluding inspection and material testing fees,is not a lump-sum amount and may be less than the stated amount depending upon the actual quantities and unit prices from the Notice of Final Completion package,commonly referred to as the Green Sheet package. 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. This development is located in Council District 7. 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 and Sewer Capital Project 2020A(WS Capital Project 2020A)Fund Tradition NS3 Offsite 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 bv: Dana Burghdoff 8018 Originating_Business Unit Head: Chris Harder 5020 Additional Information Contact: Soon Wong 8369