HomeMy WebLinkAboutResolution 5784-08-2023A Resolution
NO. 5784-08-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE FWCC
GREENLEAF SUMP STORM DRAIN PROJECT,
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 and the Tarrant Regional Water District ("TRWD") are
coordinating on the Army Corps of Engineers' Central City Flood Control Project, with
the City advancing costs for certain ancillary subprojects such as the certain
stormwater/drainage infrastructure and issuing short-term commercial paper and with
TRWD reimbursing such costs in annual installments correlating to costs of work within
that year; and
WHEREAS, the City wishes to retain the ability to debt -finance the costs of these
subprojects to the extent such costs are debt -eligible both in the short-term via issuance
of commercial paper and via longer term debt to the extent costs are not otherwise
reimbursed by TRWD; and
WHEREAS, the City expects to pay expenditures from available funds in
connection with the design, planning, acquisition and construction for the FWCC-related
projects (the "Project") prior to the issuance of obligations by the City that may finance
some or all of the costs of the Project; and
WHEREAS, the City finds, considers, and declares that the reimbursement of the
City from proceeds of obligation 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 $8,000,000.00 for the purpose of paying eligible costs, including some or all of 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 22°d day of August 2023.
ATTEST:
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/22/23 M&C FILE NUMBER: M&C 23-0693
LOG NAME: 20SWM GREENLEAF SUMP STORM DRAIN CONST
SUBJECT
(CD 9) Authorize Execution of a Contract with S.J, Louis Construction of Texas LTD, in the Amount of $6,050,404.00, for Construction of the Fort
Worth Central City Greenleaf Sump Storm Drain Project, Adopt Resolution Expressing Official Intent for City to Reimburse Expenditures with
Proceeds of Future Reimbursement from the TRWD, Adopt Appropriation Ordinances, and Amend the Fiscal Years 2023-2027 Capital
Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a contract with S.J. Louis Construction of Texas LTD, in the amount of $6,050,404.00, for construction of the Fort
Worth Central City (FWCC) Greenleaf Sump Storm Drain project (City Project No. 103260),-
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt and/or annual payments
from the Tarrant Regional Water District for the Fort Worth Central City Greenleaf Sump Storm Drain project;
3. Adopt the attached appropriation ordinance adjusting appropriations in the Stormwater Commercial Paper Fund by increasing
appropriations in the amount of $7,237,351.00 in the FWCC Greenleaf Sump Storm Drain project (City Project No. 103260) and decreasing
appropriations in the Stormwater Commercial Paper project (City Project No. UCMLPR) by the same amount; and
4. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Stormwater Capital Projects Fund by
increasing estimated receipts and appropriations in the FWCC Greenleaf Sump Storm Drain project (City Project No. 103260) in the
amount of $100,000.00 by decreasing estimated receipts and appropriations in FWCC Grand Ave Ph 2 Pt 2 (City Project No. 103664) by
the same amount; and
5. Amend the TPW Fiscal Years 2023-2027 Capital Improvement Program.
DISCUSSION:
The construction contract recommended by this Mayor and Council Communication (M&C) will provide for construction services related to the Fort
Worth Central City (FWCC) Greenleaf Sump Storm Drain project. The Transportation and Public Works (TPW) Department Stormwater Program
is advancing the funding for FWCC Greenleaf Sump Storm Drain project and will be reimbursed by the Tarrant Regional Water District (TRWD).
This project will involve the installation of a new storm drain line and replacement of 8 inlets as indicated at the locations below, in preparation for
the South Bypass Channel planned by the United States Army Corps of Engineers (USACE). The project will begin at the intersection of Kansas
Street and Greenleaf Street and outfall into the future South Bypass Channel, approximately'/4 mile northeast of this intersection. The below table
outlines the project limits and the scope of work.
Location
From
To
Scope of work
Storm Drain and replacement of 8 inlets
Greenleaf St
I
Greenleaf/ Kansas St Intersection
935 ft N
2000 White Settlement Road (TRWD Property)
Greenleaf St and White Settlement bridge 1310
ft NE,
I
Storm Drain
i
2000 White Settlement Road (TRWD Property)
Greenleaf St and White Settlement bridge
120 ft NE
Storm Drain and Outfall structure
The project was advertised for bids on May 18th, 2023 and May 25th, 2023 in the Fort Worth Star -Telegram. On June 15th, 2023, the following
bids were received:
i
Bidder Base Bid
J Louis Construction of Texas LTD 46,050,404.00
1$7,547,760.00
C Construction
Municipal Construction of Texas IjBid Withdrawn
On June 16th, 2023, Western Municipal Construction of Texas, LLC gave notice of a substantial bid error in their supplied bid and requested the
bid not be considered.
This project is anticipated to be included in future commercial paper draws and repaid from a series of annual reimbursements from the Tarrant
Regional Water District (TRWD) as part of the FWCC Greenleaf Sump Storm Drain project. In the event any bond -eligible costs are not fully
reimbursed by TRWD, those costs would be anticipated to be included in a future revenue bond issue for the Drainage (Stormwater) Utility.
Available cash within the Stormwater portfolio and the City's portfolio along with the appropriation authority authorized under the Commercial
Paper Program (CP) will be used to provide interim financing, which would be initially reimbursed by issued CP and subsequently repaid by the
annual payments from TRWD and/or issued debt. 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 debt but preserves the ability of the City to
reimburse itself from tax-exempt debt proceeds. Once reimbursement associated with this project is received or debt issued, those funds will be
used to reimburse the Stormwater portfolio and the City's portfolio in accordance with the attached reimbursement resolution.
Funding for the FWCC Greenleaf Sump Storm Drain project is depicted below:
I
1 Fund ( Existing Appropriations
Additional Appropriations =AdjustmentsProject
Total
52009 — Stormwater Commercial Paper $0.00 `
$7,237,351.00
$7,237,351.00
1
52002 — Stormwater Capital Projects $1,261.00
i
$100,000.00 i
$101,261.00
I
Total --'
j�
���
$7,338,612.00
The actions of this M&C change the funding source from 2023 Revenue Bonds to Commercial Paper.
Fund Name
and 52009 — Stormwater
ommercial Paper
Name
103260 — FWCC Greenleaf
FY2023 CIP
$0.00
udget Change
ncrease/Decrease)
$7,237,351.00
Revised FY2023
Budget
$7,237,351.00
Fund 52002 Stormwater Capital
103260 FWCC Greenleaf
f
—
—
$1,261.00
Fi
$100,000.00 !
$101,261.00
Projects
Sump
i
$7,338,612.
Due to TRWD water quality regulations associated with the outfall locations of these storm drain improvements, this project will install specialized
water quality treatment inlet devices in multiple inlets which will require a higher level of maintenance than the existing system's inlets. This
additional maintenance is expected to cost Stormwater field operations an additional $2,400.00/year to maintain. Construction is expected to start
in August 2023 and be completed by August 2024.
The $6,050,404.00 amount of this contract, the $75,000.00 material testing fee (to be performed by a geotechnical testing firm), and the
$120,000.00 inspection fee (to be performed by an inspection firm) are considered FWCC-related work, which are eligible for funding from Tax
Increment Reinvestment Zone No. 9 (Trinity River Vision TIF) pursuant to the Trinity River Vision Authority (TRVA) Project Plan, Having met its
$26.6 million commitment to the TRVA Project, the TRWD will reimburse the City's yearly expenses at the end of each fiscal year, up to the total
amount of $6,245,404.00 at project completion, in accordance with the provisions of the executed Interlocal Agreement between the City and the
TRWD (City Secretary Contract No. 43425), Staff will record a receivable every month for reimbursable expenses, and the FWCC Program
Manager in the FW Lab Department will be responsible for collecting the full reimbursement from TRWD at the end of each fiscal year. An
additional $302,520.00 in construction contingencies have been added into the project, which may be used if additional proceeds are needed for
FWCC-related work. Also, $100,000.00 in city staff time for project oversight and contract management will be added, which is non -reimbursable
by TRWD.
In addition to this, the commercial paper funding will be used to replace currently allocated funds (per M&C's 21-0328 & 21-0508) for design
phase related expenses, in the total amount of $451,740.00. Additional project management and construction administration expenses for both
TranSystems and Shield Engineering are anticipated to be $237,687.00. Reimbursement for these expenses will be covered on separate M&C's.
` 'City of Fort 'Anticipated
Anticipated Final
Worth Upfront
j
TRWD
City of Fort Worth
Funding
Reimbursement
Cost
Construction 11 $6,050,404.00
$6,050,404.00J$0.00
Contingency $302,520.001
$302,520.00,�
$0.00` :
VMaterg I i $75,0 0
jesting
$75,000.00'
$0.00
Inspection J11 $120,00 0
$120,000.0
[ $0.00
City Staff TimeL $100,000.00
$0.00
$100,000.00_
Design Phase $451,740.06
$451,740.00
�$237,687.00
$0.001,
Administration' $237,687.00
$0.00
Total j $7,337,351.0q
$7,237,351.00''
$100,000.00
Business Equity — S.J. Louis Construction of Texas LTD is in compliance with the City's Business Equity Ordinance by committing to 9% Business
Equity participation on this project. The City's Business Equity goal on this project is 7%.
This project is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Commercial Paper project within the Stormwater Commercial Paper Fund
and in the FWCC Grand Ave Ph2 Pt2 project within the Stormwater Capital Projects Fund and upon approval of the above recommendations and
adoption of the attached appropriation ordinances, funds will be available in the Stormwater Commercial Paper Fund for the FWCC 5th Street
Greenleaf Sump project to support the above recommendations and execution of the contract. Prior to any expenditure being incurred, the
Transportation & Public Works Department has the responsibility to validate the availability of funds.
Submitted for City Managers Office by: William Johnson 5806
Originating Business Unit Head: Lauren Prieur 6035
Additional Information Contact: Linda Young 2485