HomeMy WebLinkAboutResolution 4441-04-2015 A Resolution
NO. 4441-04-2015
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
COMO GROUND STORAGE TANK REHABILITATION AND REPAINT
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 expects to pay expenditures in connection with the
design, planning, acquisition and construction for the Como Ground Storage Tank
Rehabilitation and Repaint 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 $2,000,000.00 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.4441-04-2015
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 21" day of April, 2015.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/21/2015 - Resolution No. 4441-04-2015
DATE: Tuesday, April 21, 2015 REFERENCE NO.: C-27273
LOG NAME: 6000MO GST REHAB & REPAINT CONSTRUCTION
SUBJECT:
Authorize Execution of a Contract with Blastco Texas Inc., in the Amount of$1,488,675.00 for the Como
Ground Storage Tank Rehabilitation and Repaint Project, Provide for Project Management and
Contingencies for a Total Project Amount of$1,732,510.00 and Adopt Reimbursement Resolution
(COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a contract with Blastco Texas Inc., in the amount of$1,488,675.00 for the
Como Ground Storage Tank Rehabilitation and Repaint Project; and
2. Adopt the attached resolution expressing its official intent to reimburse expenditures with proceeds of
future debt for the Como Ground Storage Tank Rehabilitation and Repaint Project.
DISCUSSION:
The Como 6.0 million gallon (MG) Ground Storage Tank (GST) provides potable water storage for the
Holly Pressure Plane area within the Central Fort Worth area. This GST was built in 1959 and was last
repainted and repaired in 1996. After 19 years of service, the existing coating system is in need of
replacement to protect the structural steel tank from corrosion.
On March 6, 2014, a Request for Qualifications (RFQ) was issued for several Water Department projects
including potable GST rehabilitation projects. On April 9, 2014, a total of six proposals were received from
engineering consultants for the tank rehabilitation projects. A Staff selection committee recommended
Kleinfelder Central Inc., for the Como GST rehabilitation project. On July 22, 2014, (M&C C-26874) the
City Council authorized execution of an Engineering Agreement with Kleinfelder Central, Inc., for the
design and preparation of contract documents for the recoating and structural repairs of the Como GST.
The project was advertised on January 22, 2015 and January 29, 2015, in the Fort Worth Star-
Telegram. On February 19, 2015, the following bids were received:
Logname: 6000MO GST REHAB REPAINT CONSTRUCTION Page I of 4
BIDDER BID AMOUNT ]CONTRACT
Blastco Texas Inc. $1, 488,675.00 1150 calendar days
N. --
G. Painting, L.P. $1,666,300.00
A&M Construction Utilities, Inc. $1,686,425.00 —
IJ R Stelzer Company 1$2,350,635.00
L.C. United Painting Co., Inc. _ ($2,796,350.00
Classic Protective Coatings, Inc. $2,956,950.00
ITMI Coatings, Inc. F$2,744,600.00
In addition to the contract cost, $35,000.00 is required for Staff project management and $45,000.00 is
provided for project contingencies.
Upon approval of this Mayor and Council Communication, appropriations for the Como Ground Storage
Tank Rehabilitation and Repaint Project will consist of the following:
Kleinfelder Central Inc
$153,835.00
Contract
Blasto Texas, Inc. $1,488,675.00
Construction Staking, Project
Management, Inspection, $80,000.00
Material Testing, and
Contingencies
Existing budgetary shortfall $10,000.00
;Project Appropriations $1,732,510.00
Fund Existing Additional Revised andcumbrances Remaining
Appropriations Appropriations Appropriations Expenditures Balance
2017 Water —���-
and Sewer
Revenue
Bonds $0.00 $1,568,675.00 $1,568,675.00 $0.00 $1,568,675.00
Capital
Project
Fund
Water Capital $153,835.00 $10,000.00 163 835.00 $160,197.49 $3,637.82
Projects i
Logname: 6000MO GST REHAB REPAINT CONSTRUCTION Page 2 of 4
(Fund (P265) I
PROJECT _.l,____ i
TOTAL $153,835.00[ $1,578,675.00; $1,732,510.00 $160,197.491$1,572,312.82p
i
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 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.
Construction is anticipated to commence in June 2015. With contract time of 150 Calendar days, the
construction is estimated to be completed by the end of October 2015.
M/WBE Office - Blastco Texas, Inc., is in compliance with the City's BDE Ordinance by committing to three
percent MBE participation on this project. The City's MBE goal on this project is three percent.
The project is located within the City Limit COUNCIL DISTICT 3, Mapsco 362-05.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that appropriations are available as directed by
(M&C G-18375) in the 2017 Water and Sewer Revenue Bonds Capital Project Fund and the Water Capital
Projects Fund for transfer from Unspecified funding to the Como GST Rehabilitation and Repainting
project, as depicted in the table below.
_— ----__— .___ _ — — ------- !Remaining -----
Available (,Available
Fund Appropriation Transfer
Appropriation
Amount i m
Amount
r Water and Sewer �nue Bonds Capital
Logname: 6000MO GST REHAB REPAINT CONSTRUCTION Page 3 of 4
Project ($86,474,093.06 $1,568,675.00'$84,905,418.06
Fund
Water Capital Projects F$49,715,254.34 $10 000.00 $49,705 254.34
Fund ' '
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
P265 511010 603180231430 $10.000.00 P265 485111 601159990100 $10.000.00
P266 511010 603180231480 $35,000.00 P266 485114 601159990100 $1,568.675.00
P266 541200 603180231480 $1.533.675.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Andy Cronberg (5020)
Additional Information Contact: Farida Goderya (8214)
Logname: 6000MO GST REHAB REPAINT CONSTRUCTION Page 4 of 4