HomeMy WebLinkAboutResolution 5284-10-2020 A Resolution No. 5284-10-2020
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
FM156 WATER LINE RELOCATION
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 FM156 Water Line Relocation 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 $3,300,000.00 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 20th day of October 2020.
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By.'for Ronald P.Gonzales(Oct 23,202010:11 CDT)
Mary Kayser, City Secretary * `
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/20/20 M&C FILE NUMBER: M&C 20-0767
LOG NAME: 60FM156-CIRCLEC-KHA
SUBJECT
(CD 2 and CD 7)Authorize Execution of Amendment No. 1 in the Amount of$90,000.00 to an Engineering Agreement with Kimley-Horn and
Associates, Inc.for Farm to Market Road 156 from United States Route 81/287 to Watauga Road Water Improvements,Authorize Execution of a
Contract with William J.Schultz, Inc.dba Circle C Construction Company,in the Amount of$2,746,775.00 for the Farm to Market Road 156 from
United States Route 81/287 to Watauga Road Water Improvements,Provide for Project Costs for a Project Total in the Amount of$3,266,525.00,
Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of Amendment No. 1 to City Secretary Contract No.51434,an engineering agreement with Kimley-Hom and
Associates, Inc.,in the amount of$90,000.00 for construction support services for the Farm to Market Road 156 from United States
Route 81/287 to Watauga Road Water Improvements project for a revised contract amount of$490,000.00;
2. Authorize the execution of a contract with William J.Schultz, Inc.dba Circle C Construction Company,in the amount of$2,746,775.00 for the
Farm to Market Road 156 from United States Route 81/287 to Watauga Road Water Improvements project;
3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Farm to Market Road
156 from US 81/287 to Watauga Road Water Improvements project;and
4. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the amount of$3,266,525.00 in the Farm to Market Road 156 from United States Route 81/287 Water
Improvements project(City Project No. 101682)and decreasing appropriations in the Unspecified project(City Project No.UNSPEC)by the
same amount.
DISCUSSION:
On September 11,2018 Mayor and Council Communication(M&C C-28838),the City Council authorized an engineering agreement with Kimley-
Horn and Associates, Inc.(City Secretary Contract No.51434),in the amount of$400,000.00 for the design of Farm to Market Road(FM)156 from
United States Route(US)81/287 to Watauga Road Water Improvements project.
As part of Amendment No. 1,the engineer will perform construction support services including shop drawings and submittal reviews,change order
review and site inspections.
The Texas Department of Transportation(TXDOT)proposes to reconstruct and widen FM 156(Blue Mound Road)from US 81/287 to Watauga
Road.This project has also been identified and specifically listed in Mobility 2040:Metropolitan Transportation Plan for North Central Texas,
developed by North Central Texas Council of Governments(NCTCOG).Due to conflicts with the proposed roadway and drainage construction,
water main relocations or vault/structure adjustments necessary along the FM 156 corridor at the following crossings:Heritage Trace
Parkway,Copper Crossing Drive,Harmon Road,and E.Bailey Boswell Road,Basswood Boulevard and Western Center Boulevard.
Construction of the project was advertised for bid on July 30,2020 and August 6,2020 in the Fort Worth Star-Telegram.On September 3,2020
the following bids were received.
BIDDER AMOUNT TIME OF COMPLETION
William J.Schultz Inc.dba Circle C Construction Company $2,746,775.00 280 Calendar Days
M-Co Construction $2,850,393.00
Mountain Cascade of Texas,LLC $2,867,969.00
Wilson Contractor Services,LLC $3,099,570.60
Jackson Construction,LLC $3,789,555.00
In addition to the contract cost,$292,411.00 is required for project management,inspection and material testing and$137,339.00 is provided for
project contingency.
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&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 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.
Appropriations for the FM 156 from US 81/287 to Watauga Road Water Improvements are as depicted below.
Fund Esisting Additional Project Total*
Appropriations Appropriations
WS Capital Project 2019— $810,000.00 $0.00 $810,000.00
Fund 56016
W&S Commercial Paper— $0.00 $3,266,525.00$3,266,525.00
Fund 56019
Project Total $810,000.00 $3,266,525.00$4,076,525.00
*Numbers rounded for presentation.
This project will have no impact on the Water Department's operating budget when completed.
M/WBE OFFICE:William J.Schultz, Inc.dba Circle C Construction Company is in compliance with the City's BDE Ordinance by committing to
zero percent MBE participation and documenting good faith effort. William J.Schultz, Inc.dba Circle C Construction Company identified several
subcontracting and supplier opportunities.However,the firms contacted in the areas identified did not respond or did not submit the lowest bids.
The City's MBE goal on this project is seven percent.
M/WBE OFFICE:Kimley-Horn Associates—A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department
and approved by the OBD,in accordance with the M/WBE or BDE Ordinance, because the purchase of goods or services is from sources where
subcontracting or supplier opportunities are negligible.
The project is located in COUNCIL DISTRICTS 2 and 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 W&S Commercial Paper Fund for the FM156 WL Relocation project.Prior to any 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: John Kasavich 8480