HomeMy WebLinkAboutResolution 4384-12-2014 A Resolution
NO. 4384-12-2014
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
NEW NORTHSIDE II 48-INCH WATER MAIN, PHASE II
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 New Northside II 48-inch
Water Main, Phase II project as shown on the attached map (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:
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 $1,700,000.00 for the purpose of paying the aggregate costs of the
Proj ect.
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.
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Resolution No.4384-12-2014
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 December, 2014.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1219/2014 - Resolution No. 4384-12-2014
DATE: Tuesday, December 09, 2014 REFERENCE NO.: **C-27124
LOG NAME: 60NS1148WPH2-F&N
SUBJECT:
Adopt Resolution Expressing the City's Official Intent to Reimburse Expenditures with Proceeds of Future
Debt for the New Northside II 48-Inch Water Main, Phase 11, Authorize Execution of an Engineering
Agreement with Freese & Nichols, Inc., in the Amount of$1,650,000.00 for the New Northside II 48-Inch
Water Main, Phase II from Heritage Trace Parkway to Longhorn Road and Provide for Additional Project
Costs for a Project Total in the Amount of$1,680,500.00 (COUNCIL DISTRICTS 2 and 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached Resolution expressing its official intent to reimburse expenditures with proceeds of
future debt for the New Northside II 48-inch Water Main, Phase II project; and
2. Authorize the execution of a contract with Freese & Nichols, Inc., in the amount of$1,650,000.00 for
the Northside II 48-inch Water Main, Phase II from Heritage Trace Parkway to Longhorn Road.
DISCUSSION:
In order to satisfy projected future water demands in the Northside II Pressure Plane Area, it is necessary
to install a 48-inch water main from Heritage Trace Parkway to Longhorn Road. The proposed water main
will connect the existing 48-inch water main on Heritage Trace Parkway to the existing 48-inch water main
on Longhorn Road and will deliver increased water supply to the Caylor Ground Storage Tank which
services the Northside If Pressure Plane.
The proposed scope of services includes preparation of plans and specifications, geotechnical
investigation, soil corrosivity evaluation, easement preparation and utility coordination.
Freese & Nichols, Inc., proposes to perform the necessary design work for a lump sum fee of
$1,650,000.00. Staff considers this fee to be fair and reasonable for the scope of services proposed.
This project is proposed to be included in a future revenue bond issue for the Water and Sewer
Fund. Available cash within the Water and Sewer fund's portfolio and the City's portfolio along with the
appropriation authority authorized under the Direct Purchase Note program 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 fund's portfolio and the City's portfolio in accordance with
the attached Reimbursement Resolution.
In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. If the debt is not issued within approximately three years to provide reimbursement for these
Logname: 60NSII48VWPH2-FN Page I of 2
expenses, the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will
have to be made whole through other budgetary methods. Adoption of this resolution does not obligate the
City to sell bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds.
The issuance of public securities in the form of a revenue bond is anticipated to occur in Fiscal Year 2017,
with the timing dependent upon the funding and cash flow needs identified in the Water and Sewer Capital
Improvement program. The long-term strategy of the Water and Sewer capital plan continues to call for
both debt financed and pay as you go funding for infrastructure investment.
M/WBE Office - Freese & Nichols, Inc., is in compliance with the City's BDE Ordinance by committing to
17 percent SBE participation on this project. The City's SBE goal on this project is 12 percent.
In addition to the contract amount, $30,500.00 is required for project management, real property
acquisition and utility coordination.
The project is located in COUNCIL DISTRICTS 2 and 7.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current capital
budget, as appropriated, of the 2017 Water and Sewer Revenue Bonds Capital Project Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
P266 531200 602140230431 $408,952.50
P266 531200 602140230432 $817,905.00
P266 531200 602140230433 $136,317.50
P266 531200 602140230451 $286,825.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Andrew T. Cronberg (5020)
Additional Information Contact: Roberto C. Sauceda (2387)
Logname: 60NSII48WPH2-FN Page 2 of 2
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