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Home My WebLink AboutResolution 5250-06-2020 A Resolution NO. 5250-06-2020 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LAKE ARLINGTON LIFT STATION AND FORCE 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 Lake Arlington Lift Station and Force 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, 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 $14,400,000.00 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 1S 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 231d day of June 2020. ATTEST: r. By -_------------------ e N .r Mary J. Kayser, City Secretary MAYOR AND COUNCIL COMMUNICATION MAP 60LALS-BARCANDFNI ROB F. 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FORT NORTH City of Fort Worth,Texas Mayor and Council Communication DATE: 06/23/20 M&C FILE NUMBER: M&C 20-0460 LOG NAME: 60LALS-BARCANDFNI SUBJECT Authorize Execution of Amendment No.4 in the Amount of$392,668.00 to an Engineering Agreement with Freese and Nichols, Inc.for the Lake Arlington Lift Station and Force Main Project,Authorize Execution of a Contract with Bar Constructors, Inc. in the Amount of$10,077,693.00 for the Lake Arlington Force Main Project and Provide for Project Costs for a Project Total in the Amount of$20,371,235.00,Adopt a Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Appropriation Ordinance(COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Amendment No.4 to City Secretary Contract No.50312,an Engineering Agreement with Freese and Nichols, Inc.in the amount of$392,668,00,for construction support services for the Lake Arlington Lift Station and Force Main project for a revised contract amount of$20,371,235.00(City Project No. 100995); 2. Authorize execution of a contract with Bar Constructors, Inc.,in the amount of$10,077,693.00,for the Lake Arlington Force Main project; 3. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds from Future Debt for Lake Arlington Lift Station and Force Main project;and 4. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water&Sewer Commercial Paper(W&S Commercial Paper) Fund by decreasing appropriations in the UNSPEC project(City Project No. UNSPEC)in the amount of$11,064,526.00 and increasing appropriations in the Lake Arlington Lift Station and Force Main project by the same amount. DISCUSSION: On January 30,2018 Mayor and Council Communication (M&C C-28566)the City Council authorized the execution of an engineering agreement with Freese and Nichols, Inc., in the amount of$3,099,361.00 for the preparation of plans and specifications for the Lake Arlington Lift Station and Force Main Project. The agreement was subsequently revised by Amendment No. 1 in the amount of$229,755.00 authorized March 19,2019(M&C C-29067), Amendment No.2 in the amount of$366,044.00 authorized June 25,2019(M&C C-29178)and Amendment No.3 in the amount of$211,344.00 authorized March 3,2020(M&C 20-0137). Amendment No.4 will provide construction support phase services including inspection, project submittal reviews,change order review, record drawings,and lift station start up. Construction of the project was advertised for bid on April 9,2020 and April 16,2020 in the Fort Worth Star-Telegram.On May 14,2020 the following bids were received: Bidder Base Bid Contract Time Bar Constructors,Inc. $10,077,693. 1487 Calendar Days Crescent Constructors, Inc. $10,573,000.00 Felix Construction Company $10,764,021.00 F ^= Gracon Construction, Inc. $11,763,810.00 In addition to the contract cost,$392,611.00 is required for project management and inspections, and$201,554.00 is provided for project contingency. Construction is anticipated to commence in August 2020 and be completed by December 2021.This project will have no impact on the Water Department's operating budget when complete.This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. Funding for the Lake Arlington Lift Station and Force Main project is depicted in the table below. Fund Existing Additional Project Total* Appropriations Appropriations W&S Capital Project $9 306,709.00 $9,306,709.00 2018-Fund 56014 WS Capital Project I I $11,064,526.00 $11,064,526.00 2020A-Fund 56019 u Project Total $9,306,709.00 $11,064,526.00 $20,371,235.00 *Numbers rounded for presentation purposes. This project is anticipated to be included in a future revenue bond issue for the Water&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 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 Statements, 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 other 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. M/WBE OFFICE: Bar Constructors, Inc. is in compliance with the City's BIDE Ordinance by committing to nine percent MBE participation on this project.The City's MBE goal on this project is six percent.Additionally, Bar Constructors, Inc. is a certified M/WBE firm. MWBE OFFICE: Freese and Nichols, Inc.-A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the OBD, in accordance with the MWBE or DBE ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. The project is located in COUNCIL DISTRICT 5 and CITY OF KENNEDALE. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the Water& Sewer Commercial Paper(W&S Commercial Paper) Fund for the Lake Arlington Lift Station and Force Main (Lake Arlington,FM, LS and SS)project to support the approval of the above recommendation and execution of the amendment to the engineering agreement and construction contract. Prior to an expenditure being incurred,the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating_Business Unit Head: Chris Harder 5020 Additional Information Contact: Pratima Poudyal 6149