HomeMy WebLinkAboutResolution 5380-04-2021A Resolution
NO. 5380-04-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE COMMUNITY
FACILITIES AGREEMENT-SANITARY SEWER MAINS M-295 AND M-329
REHABILITAION
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 Community Facilities Agreement -
Sanitary Sewer Mains M-295 and M-329 rehabilitation 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 $15,000,000.00 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 13th day of April 2021.
ATTEST:
By:~9~
Mary J. Kayser, City Secretary
Hanna Ranch
M-295 M329
Sewer Replacement
Unit 1
94.25% City
4.75%
Developer
Cost Share
fORTWORTH ---...,..--
WAl'ER
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/13/21 M&C FILE NUMBER: M&C 21-0286
LOG NAME: 60SS M-295 M-329 HANNA RANCH REPLACEMENT
SUBJECT
(CD 8) Authorize Execution of a Community Facilities Agreement with Legends of Hanna Ranch , Ltd., with City Participation in the Amount Not to
Exceed $7,574,786.00, for Replacing Public Sanitary Sewer Mains M-295 and M-329 , Located in Village Creek Basin, Adopt Attached
Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds from Future Debt and Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a community facilities agreement with Legends of Hanna Ranch, Ltd ., with City participation in the amount not to
exceed $7 ,574,786 .00, for replacing public sanitary sewer mains M-295 and M-329;
2 . Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Community Facilities
Agreement -Sanitary Sewer Mains M-295 and M-329 project; and
3 . Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the amount of $8,711 ,004.00 in the Community Facilities Agreement Bucket programmable project (City Project
No.P00001 ), and decreasing appropriations in the Unspecified project (City Project No. UNSPEC) by the same amount for the purpose of
funding the Community Facilities Agreement -Sanitary Sewer Mains M-295 and M-329 project (City Project No . 102152).
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is for the City to participate with Legends of Hanna Ranch , Ltd (Developer), for
replacing and oversizing public sanitary sewers M-295 and M-329 , which provide service to the City of Fort Worth as well as the City of Everman in
the Village Creek basin. The project will replace a fifty year-old sanitary sewer main and provide additional capacity for future growth within the
basin . This project is included in the Sanitary Sewer Overflow Agreement with the Texas Commission on Environmental Quality (TCEQ).
The Developer is constructing the Hanna Ranch Development (Development) located southeast of Interstate Highway (IH) 35W and E. Altamesa
Blvd. The Development requires 0.69 millions of gallons per day (MGD) sewer capacity , which will be provided as part of the sewer main
replacements in the project. The Developer has agreed to construct the project as part of the Development. The City will cost participate in the
construction at 94.25% and the Developer will be responsible for 5.75%. In addition , the City has identified another portion of sanitary sewer main
M-329 in need of replacing, this will be covered by the City at 100%. The overall project is assigned IPRC20-0005, Unit 1 is the portion that has
94.25% City cost participation , and Unit 2 is covered 100% by the City. The Developer will reimburse the City for 5.75% of the cost of all
easements necessary for the project prior to being entitled to receive a notice to proceed to construction from the City for the project.
This sewer project will be publicly bid. The City participation in the construction cost of the replacement of these sewer mains is estimated to be in
an amount not to exceed $7 ,574 ,786 .00 as shown in the table below . Payments to the Developer are estimated to be $7 ,236,489.66 for
construction cost and $144 ,728 .80 for material testing. The remain ing City participation in the estimated amount of $193 ,616 .77 will cover the
City's portion of inspection fees and administrative material testing fees .
Unit 1
94.25% City I 5.75% Developer City Cost Total Cost Dev Cost
Construction Costs $363,559.34 $5,959 ,211 .81 $6,322,771 .15
Construction Fees:
A . Construction Inspection Fee $8,593 .37 $140,856 .63 $149,450 .00
B. Admin Material Testing Fee $943 .86 $15,471.14 $16,415 .00
Estimated Material Testing $119,184.24 Cost $7,271 .19 $126 ,455.43
Total Cost Unit 1 $380,367 .76 $6 ,234 ,723 .82 $6 ,615 ,091 .58
Unit 2
100% City Developer City Cost Total Cost Cost
Construction Costs $0 .00 $1,277 ,227 .85 $1 ,277,227 .85
Construction Fees:
A. Construction Inspection Fee $0 .00 $34 ,300 .00 $34,300 .00
B. Admin Material Testing Fee $0 .00 $2,989 .00 $2,989 .00
Estimated Material Testing $25,544 .56 Cost $0.00 $25 ,544 .56
Total Cost Unit 1 $0.00 $1 ,340 ,061.41 $1,340,061.41
Total
Developer City Cost Total Cost Cost
Total Cost Unit 1 $380,367 .76 $6 ,234 ,723 .82 $6,615,091 .58
Total Cost Unit 2 $0 .00 $1 ,340,061.41 $1 ,340 ,061.41
Contingency (15%) $0.00 $1 ,136,217.78 $1 ,136,217.78
*Total Project Cost $380,367.76 $8,711,003.01 $9,091,370.77
*Numbers will be rounded up for accounting purposes .
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 & 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 the debt is issued . 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 . Under federal law, the
debt must be issued within approximately three years in order for these expenses to be reimbursable. Adoption of the attached resolution does not
obligate the City to sell bonds but preserves the ability of the City to reimburse itself from tax-exempt bond proceeds .
Funding for the CFA-SS Mains M-295 and M-329 as depicted in the table below:
Fund Existing Additional Project Total * Appropriations Appropriations
1 $929 .602.0011 $0.00 1 $929.602.00
$0.00 $8 ,711 ,004 .00 $8 ,711,004.00
40,606.00
*Numbers rounded for presentation purposes .
Business Equity: Offerers are strongly encouraged to comply with the intent of the City's Business Diversity Enterprise Ordinance to utilized
Minority Business Enterprises or Small Business Enterprises on the City-funded portion of the Community Facility Agreement.
Th is project is located in COUNCIL DISTRICT 8 .
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Unspecified -All Funds project within the W&S Commercial Paper Fund
and upon approval of the above recommendations and adoption of the attached resolution and appropriation ordinance , funds will be available in
the W&S Commercial Paper Fund for the CFA Bucket programmable project to fund the CFA-S.S . Mains M-295 and M-329 project and support
the approval of the above recommendations and execution of the community facilities agreement. 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: Soon Wong 8369
Expedited