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HomeMy WebLinkAboutResolution 5497-11-2021A Resolution NO. 5497-11-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE TRINITY BLVD — 820-SALADO PH1 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 Trinity Blvd. — 820-Salado Ph1 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 $6,800,000.00 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 9th day of November 2021. ATTEST: By: Ronald P. Gonzales, Acting City Secretary tp1.l...a I•nriy F}h1LI 1 CDR 1ulure SI: I lore x Neer HED tianacru ■r } %<haol New' rim!' i nimbi! Church I'1he 'L'rakla t itnpual • il 4 ♦ 1+Lao lAt: it}- AREA. . . • j `—w..�;.- II ilii4JilwrMillitlrrblde , 1 1 r ram ,li % r —• \,,,,,It II Legend Trinity Bonk -rod - Phaar 1 Trinity Boulevard - Phase 2 Anoint Line Road Trinity Trail — Trinity Trail Station t.annocnont Wm. -drain Enhamemern / Connechow. Tnnfy Blot Inn ly Station. 1.620 Roadway C+nnectlm TR1- 0 Trinity Sinnott THE Nlaesl-Vv Area MOM Adinlnnal Re.rdentul Area City of Fort Worth, Texas Mayor and Council Communication DATE: 11/09/21 M&C FILE NUMBER: M&C 21-0878 LOG NAME: 20TRINITY BLVD PHASE 1 CONSTRUCTION SUBJECT (CD 5) Reject Bid of Texas Sterling Construction, Co.; Authorize Execution of a Construction Contract with S.J. Louis Construction of Texas, Ltd. in the Amount of $22,010,616.02 for Street Reconstruction of Trinity Boulevard Phase 1 from Interstate Highway 820 to Salado Trail; Authorize Execution of a Developer Funding Agreement in the Amount of $260,000.00; Adopt Attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Attached Appropriation Ordinances RECOMMENDATION: It is recommended that the City Council: 1. Reject the bid submitted by Texas Sterling Construction, Co.; 2. Authorize execution of a contract with S.J. Louis Construction of Texas, Ltd. in the amount of $22,010,616.02 for Street Reconstruction of Trinity Boulevard Phase 1 from Interstate Highway 820 to Salado Trail; 3. Authorize execution of a Developer Funding Agreement in the amount of $260,000.00 with Trinity Lakes Partners, LLC for relocation of overhead utilities and the installation of underground utilities along Trinity Boulevard from Interstate Highway 820 to Riverlakes Drive; 4. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Trinity Boulevard Phase I, from Interstate Highway 820 to Salado Trail project; 5. Adopt attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Trinity Boulevard Phase I, from Interstate Highway 820 to Salado Trail project (City Project No. 102101) in the amount of $5,725,458.00, and decreasing appropriations in the Unspecified project (City Project No. UNSPEC) by the same amount; and 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Developer Contribution Fund, in the amount of $260,000.00, from available funds, for the purpose of funding the Trinity Boulevard Phase I, from Interstate Highway 820 to Salado Trail (City Project No. 102101). DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to, by authority of the City Charter, reject the bid of Texas Sterling Construction Co. and authorize execution of a contractwith S.J. Louis Construction of Texas, Ltd. in the amount of $22,010,616.02 for Street Reconstruction of Trinity Boulevard from Interstate Highway(IH) 820 to Salado Trail. Trinity Boulevard is a major corridor with proposed mixed use and commercial development which will provide access to the proposed Trinity Metro rail station. The project includes the reconstruction of the existing asphalt 4- lane road to concrete with curb and gutter, underground drainage, landscaped medians, street lights and shared use paths. This M&C will also authorize a developer funding agreement in the amount of $260,000.00 with Trinity Lakes Partners, LLC for the relocation of overhead utilities and the installation of underground utilities along Trinity Boulevard from IH 820 to Riverlakes Drive. (M&C 21-0671) (City Project No. 102101) On January 31, 2013, the Board of Tax Increment Reinvestment Zone Number Fourteen (Trinity Lakes TIF) adopted a project and financing plan for the Trinity Lakes TIF, which was approved by the City Council by Ordinance No. 20606-02-2013 and in accordance with Section 311.011 of the Texas Tax Code. Included in the project and financing plan were certain proposed infrastructure improvements to Trinity Boulevard intended to mitigate flooding, enhance walkability, and support the development of surrounding properties. (M&C 20-0939) The following table demonstrates the funding history for the project Fund General Capital Projects - Fund 30100 TIRZ — General Capital — Fund 30286 Trinity Lakes CO 2021 — Fund 34025 W&S Rev Bonds Series 2021 — Fund 56019 Water & Sewer Commercial Paper - Fund 56020 Developer Contribution - Fund 30104 Existing Appropriations $290,000.001 $1, 000, 000.00 $18,500,000.00 $381,755.00 $0.00 $0.00 Additional Appropriations Project Total $0.001 $290,000.00 $0.00 $1,000,000.00 $0.00 $0.00 $5,725,458.00 $260,000.00 $18,500,000.00 $381,755.001 $5,725,458.00` $260,000.00 Project Total $20,171,755.00 $5,985,458.00 $26,157,213.00 The project was advertised for bid on September 15, 2021 and September 23, 2021 in the Fort Worth Star -Telegram. On September 30, 2021, the following bids were received: Bidders Texas Sterling Construction, Co. SJ Louis Construction of Texas, Ltd. Mario Sinacola & Sons Excavating, Inc. Ragle, Inc. Brasfield & Gorrie, LLC Amount $20,311,012.65 $22,010,616.02 a$23,165, 055.55 L 023,680,615.77 $23,949,467.32 The Transportation & Public Works Department's share on this contract is $16,947,512.80. The Water Department's share on this contract is $5,063,103.22. The funds will be available in the Water & Sewer Commercial Paper Fund for the project (City Project No. 102101). In addition to the contract amount, $2,281,098.00 (Water: $510,461.00, Paving: $1,770,637.00) is required for project management, material testing and inspection and $661,128.00 (Water: $151,893.00; Paving: $509,235.00) is provided for project contingencies. This project will have no impact on the Transportation & Public Works' or on the Water Department's operating budgets when completed. 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 the 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. Construction of Trinity Boulevard is anticipated to begin in Spring 2022. Funding for this project is being provided from Tax Increment Reinvestment Zone Number 14, Trinity Lakes TIF Program. S.J. Louis Construction of Texas, Ltd has agreed to comply with the City's Business Equity Ordinance. The City's goal on this project is 22%. The Project is located in COUNCIL DISTRICT 5. FISCAL INFORMATION t 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 appropriation ordinances, funds will be available in the W&S Commercial Paper Fund and the Developer Contribution Fund for the Trinity Blvd. - 820-Salado Ph1 project to support the approval of the above recommendation and execution of the contract. Prior to an expenditure being incurred, Transportation & Public Works and Water Departments have the responsibility of verifying the availability of funds. Submitted for City Manaaer's Office bv: Dana Burghdoff 8018 Oriainatina Business Unit Head: Additional Information Contact: Expedited William Johnson 7801 William Johnson 7801