HomeMy WebLinkAboutResolution 5432-08-2021 A Resolution
NO. 5432-08-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE II
WATER MAIN ALONG STATE HIGHWAY 170
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 Northside II Water Main Along State Highway
170 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 $7,000,000.00 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 3`d day of August 2021.
FA.
O/�TGL
ATTEST: V `�
By:
Ronald P. Gonzales, Acting City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/03/21 M&C FILE NUMBER: M&C 21-0537
LOG NAME: 60NSIISH17030INWLP3-CPY&MOUNTAINC
SUBJECT
(CD 7)Authorize Execution of Amendment No.5 in the Amount of$178,980.00 to an Engineering Agreement with CP&Y,Inc.for the Northside II
Water Main Along State Highway 170 Project,Authorize Execution of a Contract with Mountain Cascade of Texas LLC,in the Amount of
$4,788,432.00 for the Northside II Water Main Along State Highway 170,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.5 to City Secretary Contract No.48423,and engineering agreement with CP&Y,Inc.in the amount of
$178,980.00 for the Northside II Water Main Along State Highway 170 project for a revised contract amount of$964,483.36;
2. Authorize execution of a contract with Mountain Cascade of Texas LLC,in the amount of$4,788,432.00 for Northeast Northside II 30-inch
Water Transmission Main Along State Highway 170-Part 3;
3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Northside II Water
Main Along State Highway 10 project;and
4. Adopt attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund in the amount of
$5,398,659.00 by increasing appropriations in the Northside II Water Main Along State Highway 170-Part 3 project(City Project No.
100261),and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount.
DISCUSSION:
On November 8,2016,Mayor and Council Communication(M&C C-27985),the City Council authorized the execution of an Engineering
Agreement with CP&Y,Inc.,(City Secretary No.48423)in the amount of$456,340.00 for the preparation of plans and specifications for the
Northeast Northside II 30-inch Water Transmission Main.The agreement was subsequently revised by Amendment No. 1 in the amount of
$13,098.36 administratively authorized July 3,2017 that provided for additional design on the project.On April 7,2020,Mayor and Council
Communication(M&C 20-0168),the City Council adopted an appropriation ordinance in the Water and Sewer Capital Projects Fund for the
amount$2,264,435.00 and authorized the execution of Amendment No.2 in the amount of$168,985.00 for the Northeast Northside II Water Main
along SH 170 from 0.5 miles east of IH 35W to Trophy Club Lake Drive to accommodate the Texas Department of Transportation's construction of
the SH 170 four mai lanes and associated improvements which require relocation of four water mains at Beach Street,Alta Vista Road,Westport
Parkway and Independence Parkway.Amendment No.3 in the amount of$99,815.00 was administratively authorized November 13,2020
and provided additional design services for the necessary relocations at the four conflict locations and Amendment No.4 in the amount of
$47,265.00,authorized by M&C 21-0375 provided for additional construction services for Part 2 of the project and additional easement.
In accordance with the terms of a Utility Agreement between TXDOT and the City,TXDOT will reimburse the City of all costs incurred with the
relocation of the Beach Street crossing because the water main was installed in an easement.The relocation of the water main conflict at Beach
Street is currently underway(CSC 54748).Amendment No.5 provides for additional services for the relocation of the conflicts at the SH 170 and
Alta Vista Road,Westport Parkway and Independence Parkway intersections.
Construction of the project was advertised for bid on February 25,2021 and March 4,2021 in the Fort Worth Star-Telegram.On April 8,2021 the
following bids were received:
Bidder Amount Time of
Completion
250
Mountain Cascade of Texas LLC $4,788,432.00 Calendar
Days
SJ Louis Construction of Texas,Ltd. $5,100,771.22
William J.Schultz Inc.dba Circle C ff$5,207,380.00
Construction Company
In addition to the contract cost,$287,594.00 is required for project management,inspection and material testing and$143,653.00 is provided for
project contingency.
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 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
reimburse 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 Northeast Northside II 30-inch Water Transmission Main Along SH170 from North Beach Street to US 377 project are as
depicted below:
Fund Existing Additional Project Total*
Appropriations Appropriations
W&S Capital
Projects-Fund $2,887,171.00 $0.00 $2,887,171.00
56002
W&S Commercial
Paper-Fund $0.00 $5,398,659.00 $5,398,659.00
56020
W Fund 59601ater Capital- $7,455,480.00 $0.00 $7,455,480.00
Project Total $10,342,651.00 $5,398,659.00$15,741,310.00
*Numbers rounded for presentation.
This project will have no impact on the Water Department's operating budget when completed.
Business Equity:Mountain Cascade of Texas,is in compliance with the City's Business Equity Ordinance by committing to two percent Business
Equity participation and documenting good faith effort.Mountain Cascade of Texas identified several subcontracting and supplier opportunities.
However,the firms contacted in the areas identified did not respond.The City's Business Equity goal on this project is 19 percent.
Business Equity:CP&Y,Inc,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 service is from sources where subcontracting or supplier
opportunities are negligible.
The project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the UNSPEC project within 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 for the NSII Water Main Along SH170 project to support the approval of the above recommendation and execution of the amendment
to agreement and 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: Scott Taylor 7240