HomeMy WebLinkAboutResolution 5387-04-2021A Resolution
NO. 5387-04-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR SYCAMORE CREEK
SEWER -PHASE 3
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 Sycamore Creek Sewer -Phase 3
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 $14,000,000.00 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 20th day of April 2021.
ATTEST:
Mary J . Kayser , City Secretary
MAYOR AND COUNCIL COMMUNICATION MAP
60SCREEKIIP3-THALLELAN
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/20/21 M&C FILE NUMBER: M&C 21-0292
LOG NAME: 60SCREEKIIP3-THALLELAN
SUBJECT
(CD 8) Authorize Execution of Amendment No . 2 in the Amount of $194 ,250 .00 to an Engineering Agreement with Lockwood , Andrews &
Newnam , Inc. for Sycamore Creek Interceptor Improvements , Phase 3 , Authorize Execution of a Contract with Thalle Construction Company, Inc .,
in the Amount of $9 ,687 ,177.00 for the Sycamore Creek Interceptor Improvements , Phase 3 Adopt Attached Resolution Expressing Official Intent
to Reimburse Expenditures with Proceeds of Future Debt and Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council :
1. Authorize execution of Amendment No. 2 to City Secretary Contract No. 52430 , an engineering agreement with Lockwood , Andrews &
Newnam , Inc ., in the amount of $194,250.00 for construction support services for the Sycamore Creek Interceptor Improvements , Phase 3
project for a revised contract amount of $1 ,177,319 .00 ;
2. Authorize execution of a contract with Thalle Construction Company, Inc., in the amount of $9 ,687 ,177.00 for the Sycamore Creek Interceptor
Improvements , Phase 3 project;
3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Sycamore Creek
Interceptor Improvements , Phase 3 project; and
4. Adopt the attached appropriation ord inance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the amount of $10,860 ,444.00 in the Sycamore Creek Interceptor Improvements , Phase 3 project (City Project No .
102069) and decreasing appropriations in the Unspecified project (City Project No . UNSPEC) by the same amount.
DISCUSSION:
On June 4 , 2019 Mayor and Council Communication (M&C C-29143), the City Council authorized an eng ineering agreement with Lockwood,
Andrews & Newnam , Inc . (City Secretary Contract No. 52430), in the amount of $897,816 .00 for the design of Sycamore Creek Interceptor
Improvements , Phase 3 from Vickery Boulevard to Cobb Park Drive . In addition , the water system at Duval Street will be connected on both
ends of the street at the United States (U .S .) Highway 287 to eliminate a dead end water main.
The agreement was subsequently revised by Amendment No. 1 in the amount of $85 ,253 .00 administratively authorized on May 18 , 2020 .
As part of Amendment No. 2 , the engineer will perform construction support services including shop drawings and submittal reviews , change order
review and site inspections. The proposed project will provide additional capacity and help alleviate wet weather overflows in the Sycamore
Creek Drainage Basin. Construction of the project was advertised for bid on January 14 , 2021 and January 21 , 2021 in the Fort Worth Star-
Telegram. On March 4, 2021 the following bids were received .
Total 2
Total 1
BIDDER (Base bid+ TIME OF
(Base bid Polymer COMPLETION
Standard concrete
concrete manhole)
manhole)
Thalle Construction $9 ,544,473.00 $9,687, 177.00* 540 Calendar
Company, Inc Days
S.J. Louis
Construction of $10 ,397 ,580 .75 $10,466,042.07
Texas , Ltd .
Bar Constructors , $10 ,995 ,649.07 $11,133,869.07 Inc.
Mountain Cascade $11 ,683 ,041 .00 $11,836,630 .00 ofTexas, LLC
Jackson $11 ,743 ,303.75 $11 ,917 ,593 .75 Construction , Ltd .
$12 ,327,564.50 $11 ,966,379.50
$13,496,645 .00 $13,633,495.00
*Staff recommends the approval of the low bid received for Total 2 due to the longer life span and reduced maintenance polymer concrete
manholes .
In addition to the contract cost , $578 ,636 .00 (Water: $41,804.00 ; Sewer: $536,832 .00) is required for project management, inspection and
material testing and $261 ,181 .00 (Water: $25 ,335.00; Sewer: $235 ,846 .00) is provided for project contingency . Furthermore , $139,200.00 is
required for tree mitigation and will be transferred to the Parks Department as applicable at the end of the project.
The project is part of the Water Department's Sanitary Sewer Overflow Initiative Program .
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. Once debt associated with this project is sold , bond proceeds will be used to
re imburse the Water and Sewer portfolio and the City's portfolio in accordance with the attached reimbursement resolution . Under federal law,
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 .
Appropriations for the Sycamore Creek Interceptor Improvements , Phase 3 are as depicted below.
Fund Existing Additional
Appropriations Appropriations Project Total*
WS Capital Project
2019-Fund 56016 $1 •510 •016·00 $0 .00 $1,510 ,016 .00
W&S Commercial
Paper -Fund 56019 $10 ,860,444 .00 $10 ,860,444 .00
Water and Sewer
Projects -Fund
56002
$1 ,595 ,2
*Numbers rounded for presentation.
$0.00 $85 ,253.00
55,713.00
This project will have no impact on the Water Department's operating budget when completed . The project is part of the Water Department's
Sanitary Sewer Overflow Initiative Program.
DVIN: Thalle Construction Company, Inc. is in compliance with the City's M/WBE Ordinance by committing to seven percent participation on this
project. The City's goal on this project is seven percent.
Lockwood, Andrews & Newnam, Inc. DVIN - A waiver of the goal for Business Equity subcontracting requirements was requested and approved
by the DVIN , in accordance with the applicable 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 8.
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Unspecified -All Funds project w ithin the W&S Commercial Paper Fund
and upon approval of the above recommendations and adoption of the attached appropriation ordinance , funds will be available in the W&S
Commercial Paper Fund fo r the Sycamore Creek Sewer -Phase 3 project to support the approval of the above recommendations and execution
of the 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: Liam Conlon 6824