HomeMy WebLinkAboutResolution 5240-06-2020 A Resolution
No. 5240-06-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CFA BUCKET
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 CFA Bucket 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 $640,000.00 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 16th day of June 2019.
OF FART
ATTEST:
By: --- ----------
Mary J. Kayser, City Secretary js
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/16/20 M&C FILE NUMBER: M&C 20-0435
LOG NAME: 60TRADITION WINDING MEADOW DR SEWER OVERSIZING
SUBJECT
Authorize Execution of an Amendment to City Secretary Contract Number 53652,a Community Facilities Agreement with HT HWY 114
Development LP with City Participation in an Amount Not to Exceed$492,204,00 for Oversizing Sewer 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 Revenue Bond Issuance for the Water and Sewer Fund for City Participation and Adopt
Appropriation Ordinance(COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of an amendment to City Secretary Contract Number 53652,a Community Facilities Agreement with HT HWY 114
Development LP with city participation in an amount not to exceed$492,204.00 for oversizing sewer 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 102307);
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt to include funding for CFA-
Winding Meadows Drive project;and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water&Sewer Commercial Paper Fund by decreasing
appropriations in the UNSPEC project(City Project No. UNSPEC)in the amount of$492,204.00 and increasing appropriations in the CFA
bucket(City Project No.P00001)by the same amount to fund the CFA-Winding Meadows Drive 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 Developer executed a Community Facilities Agreement(CFA)with the City for the construction of public
infrastructure for Winding Meadows Drive phase of the project(City Secretary Contract Number 53652). After execution of the CFA,the
Developer requested to increase the size of the sewer mains in the CFA and the Water Department would like to cost participate to oversize a
proposed 18-inch sewer main to a 24-inch sewer main and to oversize a 15-inch sewer main to a 24-inch sewer main.The oversized sewer mains
will serve the Tradition Central Development and anticipated future growth in north Fort Worth.Tradition-Winding Meadows Drive Project assigned
City Project No. 102307 Accela System Record IPRC19-0207.The City will not participate in cost of inspection and material testing fees.
In accordance with Chapter 212,Subchapter C of the Texas Local Government Code,the City's participation in the contract is exempt from
competitive bidding requirements because the contract is for oversizing public improvements being constructed by the developer,the developer
will execute a performance bond to cover the total project cost,including all of the City's cost participation,and the City's cost participation will be
determined in accordance with the City's CFA Unit Price Ordinance.
The City's cost participation in the construction and oversizing of the sewer mains is estimated to be in an amount not to exceed$492,204.00 as
shown in the table below:
A.Construction Developer Cost City Cost Total Cost
1.Water $3,133,610.00 $0.00 $3,133,610.00
2.Sewer $661,888.00 $410,170.00 $1,072,058.00
Contingency $759,100.00 $82,034.00 $841,134.00
20%
B.TPW
Construction
1.Street $3,264,236.50 $0.00 $3,264,236.50
2.Storm Drain $1,176,421.00 $0.00 $1,176,421.00
3.Street Lights
Installed by $337,362.00 $0.00 $337,362.00
Developer
4.Signals $0.00 $0.00 $0.00
C.Inspection $67,375.00 $0.00 $67,375.00
Fees
D.Administrative $33,369.00 $0.00 $33,369.00
Material Testing
E.Water Testing $1 740.00 $0.00 $1,740.00
Lab Fee
Total Project $14,213,121.00 $492,204.00 $14,705,325.00
Fees
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 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 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 approved 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&Sewer Commercial Paper Fund(56019)CFA Bucket project which in turn will fund the CFA-Winding Meadows
Drive 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: Soon Wong 8369