HomeMy WebLinkAboutResolution 4433-04-2015 A Resolution
NO. 4433-04-2015
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
NORTHSIDE II 48-INCH WATER MAIN, PHASE 1, PART 2
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 48-inch Water
Main, Phase 1, Part 2 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 $11,000,000.00 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.
ORT WO T
Resolution No. 4433-04-2015
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 7th day of April, 2015.
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Search Term : Oscar* Renda* Contracting.* Inc.*
Record Status: Active
ENTITY JOSCAR RENDA CONTRACTING, INC. Status:Active
DUNS: 060149218 +4: CAGE Code: 49GM3 DoDAAC:
Expiration Date: Jun 4, 2015 Has Active Exclusion?: No Delinquent Federal Debt?: Yes
Address: 522 BENSON LANE
City: ROANOKE State/Province: TEXAS
ZIP Code: 76262-6606 Country: UNITED STATES
January 15,2015 4:11 PM Page 1 of 1
MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/7/2015 - Resolution No. 4433-04-2015
DATE: Tuesday, April 07, 2015 REFERENCE NO.: C-27255
LOG NAME: 60NSH48WPH1 P2-OSCAR
SUBJECT:
Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt for
the Northside II 48-Inch Water Main, Phase 1, Part 2 Project and Authorize Execution of a Contract with
Oscar Renda Contracting Inc., in the Amount of$10,446,210.00 for the Northside II 48-Inch Water Main,
Phase I, Part 2, from Keller Hicks Road to Heritage Trace Parkway and Provide for Additional Project
Costs for an Appropriated Project Total in the Amount of$10,901,330.00 (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for the Northside II 48-inch Water Main, Phase I, Part 2 project; and
2. Authorize the execution of a contract with Oscar Renda Contracting, Inc., in the amount of
$10,446,210.00 for the Northside II 48-inch Water Main, Phase I, Part 2 from Keller Hicks Road to
Heritage Trace Parkway.
DISCUSSION:
On March 5, 2013, (M&C C-26144) the City Council authorized an Engineering Agreement with Brown &
Gay Engineers, Inc., for the preparation of plans and specifications for Northside II 48-inch Water Main
Phase I. The proposed water main will increase delivery and reliability to the Northside II pressure plane.
In order to expedite construction, the Phase I project was divided into two parts:
Part 1, 48-inch water main from Old Denton Road to Alta Vista Road (under construction) (M&C C-26784).
Part 2, 48-inch water main from Keller- Hicks Road to Heritage Trace Parkway (this project).
Phase I, Part 2, consists of the following:
• 48-inch water main beginning from the Keller Hicks Road/Old Denton Road intersection, south of
Old Denton Road, then west on Golden Triangle Boulevard, then south on Harmon Road to
Heritage Trace Parkway/Harman Road intersection;
• Installation of small diameter sanitary sewer main along Keller Hicks Road.
This project was advertised for bids on November 20, 2014 and November 27, 2014 in the Fort Worth
Star-Telegram. On December 18, 2014 the following bids were received:
Logname: 60NSH48WPH1P2-0SCAR. Page 1 of 4
Bidder Amount ITime of completion
Oscar Renda Contracting, Inc. $10,446,210.00 260 Calendar Days
S.J. Louis Construction of Texas, Ltd. $10,790,980.00 =
Jackson Construction, Ltd. $11,903,925.00
William J. Shultz, Inc. d/b/a Circle "C" Construction Company $12,482,410.00
Upon approval of this Mayor and Council Communication, appropriations for the Northside II 48-Inch
Water Supply Main to Caylor Water Tank project will consist of the following:
Brown & Gay Engineers, Inc. Engineering Contract $1,636,031.00
S.J. Louis Construction of Texas, LTD Construction Contract $8,525,144.45
Oscar Renda Contracting, Inc. Construction Contract $10,446,210.00
Construction Staking, Project Management Inspection Material Testing and $1,340.929.55
Contingencies
Project Appropriations $21,948,315.00
This section of the 48-inch water main has cost participation from the City of Southlake (21 percent), the
City of Keller(5.8 percent), Trophy Club Municipal District No. 1 (four percent) and the Town of Westlake
(14.2 percent), which was approved by the Fort Worth City Council on December 2, 2014. (M&C C-
27101). These cost participations will be reimbursed to the City of Fort Worth at the completion of this
project. This project was initially anticipated to be completed prior to summer of 2015. It is critical to
ensure this project is completed by fall of 2015 to ensure the delivery of water to meet the demands
generated from developments on the northside of Fort Worth and other wholesale customers.
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 appropriate
authority authorized under the Direct Purchase Note program will be used to provide interim financing for
this project until debt is issued. To the extent resources other than the Water and Sewer portfolio are
used to provide interim financing, the Water and Sewer Fund will be charged interest that is equivalent to
the overall rate of return being earned by the City portfolio (currently approximately one-percent annually).
Should the City' s portfolio not support the liquidity needed to provide an interim short-term financing
source, another funding source will be required, which could mean issuance of securities under the Direct
Purchase Note program or earlier issuance of Water and Sewer revenue bonds than is currently planned.
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.
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. The Financial Management Services Department is currently working with all departments to
ensure that multi-year capital improvements plans are in place. Newly developed and already existing
plans, such as the Water Department' s current multi-year capital improvement plan, will be presented to
City Council for review and adoption. If the City Council-adopted plan does not include issuance of debt
for this specific project, the project will be funded utilizing pay-as-you go financing sources. If the Council-
adopted plan calls for debt issuance, that debt must be issued within approximately three years to provide
reimbursement for these expenses. If that does not occur, 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.
Logname: 60NSH48WPH1P2-0SCAR Page 2 of
M/WBE Office - Oscar Renda Contracting Inc., is in compliance with the City' s BDE Ordinance by
committing to 15 percent MBE participation on this project. The City' s MBE goal on this project is 15
percent.
In addition to the contract amount, $135,000.00 (water: $115,000.00; sewer: $20,000.00) is required for
construction staking, project management, inspection and material testing and $320,120.00 (water:
$303,300.00; sewer: $16,820.00) is provided for contingencies.
Current funding for the Northside 48 Inch Water Supply Main to Caylor Water Tank project consists of the
following:
FUND APPROPRIATIONS ENCUMBRANCES EXPENDITURES BALANCE
Water Capital Projects Fund $10,120,788.40 $1,717,092.75 $8,276,374.86 $127,320.79
Sewer Capital Project Fund $926,196.60 $241,096.00 $608,677.36 $76,423.24
PROJECT TOTAL $11,046,985.00 $1,958,188.75 $8,885,052.22 $203,744.03
Subject to Mayor and Council Communication approval andappropriation of existing revenue to the
project, including contingencies, funding for the Northside 48 Inch Water Supply Main to Caylor Water
Tank project will be:
FUND APPROPRIATIONS ENCUMBRANCES PROJECTED PROJECTED
EXPENDITURES BALANCE
Water Capital Projects Fund $10,120,788.40 $1,717,092.75 $8,276,374.86 $127,320.79
Sewer Capital Project Fund 926,196.60 241,096.00 608,677.36 76,423.24
2017 Water and Sewer Revenue 10,901.330.00 0.00 10.581.210.00 320.120.00
Bonds Capital Project Fund
PROJECT TOTAL $21,617,315.00 $1,958,188.75 $19,466,262.22 $523,864.03
The project is located in COUNCIL DISTRICT 7, Mapsco 21 L, 21 K, 21 N and 21 S.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that revenue is available in the 2017 Water and
Sewer Revenue Bonds Capital Project Fund for this contract. Currently available revenue in the 2017
Water and Sewer Revenue Bonds Capital Project Fund is $84,793,593.06. Upon approval of the
recommendation, revenue will be appropriated for use in the project, as follows:
Fund Available Projected Balance
Appropriation Expenditures
Amount
2017 Water and Sewer Revenue $10,910,330.00 $10,581,210.00 $320,120.00
Bonds Capital Project Fund
After appropriation of the $10,910,330.00 to the project, $73,883,263.06 in available revenue will remain in
the 2017 Water and Sewer Revenue Bonds Capital Project Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
P266 541200 602140208283 $10.109.900.00
P266 541200 702140208283 $336,310.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Logname: 60NSH48WPH1P2-0SCAR Page 3 of
Originating Department Head: Andrew T. Cronberg (5020)
Additional Information Contact: Robert Sauceda (2387)
Logname: 60NSH48WPHIP2-OSCAR Page 4 of 4