HomeMy WebLinkAboutIR 0685INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0685
To the Mayor and Members of the City Council
April 18, 2023
Page 1 of 4
SUBJECT: FORT WORTH CENTRAL CITY STORMWATER AND WATER
PROJECT COSTS AND REIMBURSEMENT PLAN
This report is provided to update City Council on the Fort Worth Central City (FWCC) Stormwater
and Water Relocation projects, the cost escalation seen with the recent bids, staff's plan to fund
these projects, and the agreement with Tarrant Regional Water District (TRWD) for
reimbursement of eligible costs. In accordance with the inter -agency agreement for
programmatic funding that was memorialized in an Interlocal Cooperation Agreement in 2013, the
Transportation and Public Works Department, Stormwater Division, and Water Department are
advancing the relocation of existing drainage and water infrastructure that are necessary
precursors to the U.S. Army Corps of Engineer's (USACE) Fort Worth Central City Flood Control
Project, and are currently on the USACE's critical path schedule. These relocations are required
to be complete before the future Trinity River bypass channel construction can commence.
Since 2003, the City has been a partner with Tarrant County, TRWD, the USACE and other
parties in the planning and implementation of the Central City Flood Control Project. This
includes the letting and managing of the relocation of existing City infrastructure that is in conflict
with components of the future flood control project. Those required relocations include the
following remaining Stormwater and Water/Sewer projects:
Stormwater
o Grand Avenue
o Main Street Outfall
o Cemetery Outfall and Houston Street
o Bazaar Outfall
o Viola Outfall
o Greenleaf Outfall
o University
TRWD Reimbursement
Water
o Part 5 Beach Street
o Part 10 and 11 Bypass Channel Segment
A
o Part 13 Bypass Channel Segment D
o Part 14 Bypass Channel Segment C
o Part 23 Bypass Channel Segment D
o Part 24 University Drive
o Part 25 Clear Fork Isolation Gate
The above -described relocation projects are eligible for Trinity River Vision Tax Increment
Financing District #9 (TIF) funding pursuant to the Trinity River Vision TIF project plan. As the
TIF does not currently generate sufficient funding to advance these precursor local projects on
schedule, TRWD agreed through the 2013 Interlocal Cooperation Agreement to provide certain
interim funding to the City for these local expenses. Before now, those funds have been provided
as reimbursement of eligible project costs at completion of individual contracts.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0685
To the Mayor and Members of the City Council
April 18, 2023
Page 2 of 4
SUBJECT: FORT WORTH CENTRAL CITY STORMWATER AND WATER
PROJECT COSTS AND REIMBURSEMENT PLAN
TRWD has recently agreed to reimburse the City for FWCC-necessitated expenses on an annual
basis, rather than at contract completion, including for contracts already underway. Annual
reimbursements will provide the City with more timely replenishment of funds, minimizing impacts
to other planned capital projects. In accordance with the Interlocal Cooperation Agreement,
TRWD intends to continue fully reimbursing all eligible local project expenses. In addition, for the
purpose of ensuring a common understanding regarding reimbursement expectations, TRWD
and the City exchange a signed letter describing eligible/ineligible expenses, expected
reimbursement amount, and timing for each FWCC-related contract issued by the City.
Grand Avenue Storm Drain Relocation Project
The Grand Avenue Storm Drain Relocation Project received bids on March 23rd, 2023, with the
low bid coming in at $22.8M. The initial estimate for this project was around $10M. This is the
second time staff bid this project, with both times resulting in comparable bids. Anticipating that
bids may continue to come in over budget, the Stormwater Division and Water Department have
developed a strategy, in coordination with TRWD, to fund these current and future projected
construction costs.
Stormwater Funding Strategy
With the USACE's receipt of $403M in 2022, and another $20M just last month, the design and
construction of the Fort Worth Central City project is upon us. In its commitment to support this
important project and partnership, the City has prioritized relocating necessary utilities on the
USACE's critical path schedule, understanding there will be impacts to other capital projects. The
reimbursement and funding strategy is intended to minimize those impacts to the extent possible.
To fund Grand Avenue and future FWCC Stormwater relocation projects, staff has developed the
following strategy:
When presenting to the Mobility Infrastructure Transportation Committee on March 21,
2023, the bond delivery goals presented were based on $10M of our FY23 Stormwater
revenue bond going toward FWCC drainage projects. However, based on the recent
Grand Avenue bid, we are now estimating that approximately $15.6M of the $40.25M
revenue bond will need to go toward the FWCC drainage projects.
The initial total estimated budget we developed for the above FWCC drainage projects
was $22.9M as of May 2022.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0685
To the Mayor and Members of the City Council
April 18, 2023
Page 3 of 4
SUBJECT: FORT WORTH CENTRAL CITY STORMWATER AND WATER
PROJECT COSTS AND REIMBURSEMENT PLAN
On April 6, 2023, the USACE approved moving the Cemetery Outfall Structure out the
above list of FWCC drainage projects and placed it into the bypass channel scope. This
reduced the scope of one of the City's projects significantly.
Based on updated estimates for the remaining drainage projects to be constructed by the
City and considering the recent Grand Avenue bid, we are estimating an updated total
Stormwater FWCC cost between $53.8M and $60.5M.
Due to the need to fund the Grand Avenue construction project in April 2023 to maintain
the USACE's critical path schedule, Staff has identified Stormwater projects from which
funding can be harvested since the FY23 revenue bond funding will not be available until
June 15, 2023. Some of the funding will come from residuals of completed projects, and
not need to return to the projects. Additional funding will be harvested from projects that
will need the funding returned to them so they can be advertised for construction.
To keep the FWCC Grand Avenue project moving forward, funding will be taken from the
following projects:
o Shore View and Bomber HROM by $200,000.00 (City Project No. 103051),
o Westcliff Drainage project by $488,000.00 (City Project No. C01669),
o Fairmount at Morphy project by $1,015,065.00(City Project No. 103058),
o Quail Road HROM project by $198,106.00 (City Project No. 103053),
o Cunningham Rd HROM project by $546,503.00 (City Project No. 104018),
o SW Hazardous Rd Overtopping project by $4,622,710.77 (City Project No. P00120),
o Haltom Rd HROM project $350,826.25 (City Project No 103887),
o Total Channel Restoration Bond project $1,233,313.33 (City Project No P00136);
o FWCC University project by $1,384,000.00 (City Project No. 103263),
o Central Arlington Heights (CAH) Voluntary Acq project $2,250,000.00 (City Project
No 101262),
o FWCC Viola project $1,830,000.00 (City Project No 103264);
The Main Street Outfall FWCC drainage project will also need to be awarded before the
FY23 revenue bond funding is available so approximately $10.9M will also need to be
harvested from Stormwater projects to meet the USACE's critical path schedule.
Once the FY23 revenue bond funding is received, the remainder of funding not going
toward FWCC drainage projects, $24.65M, will be used to advance the highest priority
stormwater projects until the City receives reimbursement from TRWD. This includes
allocating $3M toward developing several large-scale flood mitigation projects to mitigate
flooding problems to homes and businesses. This will give Stormwater the ability to apply
for construction funding sources where fleshed out, developed projects are needed for
application
Once received from TRWD, the reimbursement funding will be reallocated to projects
intended to be delivered as a part of the 5-year Stormwater revenue bond program.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0685
To the Mayor and Members of the City Council
April 18, 2023
Page 4 of 4
SUBJECT: FORT WORTH CENTRAL CITY STORMWATER AND WATER
PROJECT COSTS AND REIMBURSEMENT PLAN
Water Department Funding Strategy
The Water Utility uses its Callable Commercial Paper (CP) program to provide appropriation
authority for capital projects identified in its Capital Improvement Program. This authority enables
the utility to award capital contracts that ultimately will be financed by longer term revenue bonds.
Once revenue bonds are issued, the CP authority is restored, to be used for new projects. On
February 14, 2023 (M&C 23-0105) the City Council approved an increase in the CP authority
from $150 million to $225 million. This increase will provide additional authority that the utility will
use to award its FWCC contracts; however, rather than issuing revenue bonds each year, the
TRWD will provide annual reimbursements of actual costs prior to fiscal year-end, at the City's
request, to restore the authority. This process allows the FWCC projects to move forward without
issuing debt and provides the best value to the utility's ratepayers.
Next Steps
The Stormwater Division is moving forward with the April 25, 2023, M&C for the FWCC Grand
Avenue Storm Drain Relocation Project due to the USACE's critical path schedule. We are also
working with the Finance Department and the City's Financial Advisors to explore alternative
funding mechanisms including the creation of a new Commercial Paper Program for the
Stormwater Fund. Similar to the Water and Sewer Commercial Paper Program, this financing tool
could provide additional appropriation authority and necessary liquidity to facilitate Fort Worth
Central City Projects while reducing project delays to Stormwater projects. The process to
establish a new commercial paper program would take approximately two months.
Questions about this Informal Report can be directed to Jennifer Dyke, TPW Assistant Director of
Stormwater Management at 817-392-2714 and Jan Hale, Water Deputy Director, at 817-392-
8438.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS