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Home My WebLink AboutResolution 4470-06-2015 A Resolution NO. 4470-06-2015 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE Village Creek Parallel Interceptor Improvements, Part 1 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 Village Creek Parallel Interceptor Improvements, Part 1 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 $5,000,000.00 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. r r ORT ORT I. Resolution No.4470-06-2015 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 91h day of June, 2015. Op 141: 1*0000000c, qY 0 ATTEST: �;,� � �o o� ® 0040 j d 0 o o � B _ r ----------— 0�o00 00 c � Mary Kays°er, City Secretary I ORT WO jrt r/ MAYOR AND COUNCIL COMMUNICATION MAP RCUP L BUTTE N Ij / ! RUTH ST a rr y, a ' 'lirii I ,il Illlit "�M""" u ! rl� S rri er rl fhl�'f� ,�� 9 I „ Idea �,(li "o. TWORTH WATM � r t „ � r i �r �� TALLIE RD � RAMEY AVE ILL MAYOR AND COUNCIL COMMUNICATION MAP FITZGH COWL E Y�a `17Y 7 r ELIZABETH DOWDELL" RD RTWORTH WATM f ym L �m MAYOR AND COUNCIL COMMUNICATION MAP BEATY� ST, BEATY W a � CRAIG ST Ai. r CHURCH ST w � s , ri b XIAp �q Pa I � / a i� a � w �w�Vr� �✓�o�uu' � frr ANSAS+LN ARK � t C„ vAuJma w FORTWORTH WATM i r I //fr✓/yip /0 r/fie I / NJJ�'�� .� �I".� k J City of Fort Worth, Texas Mayor and Council Communication ✓v / ei,r„.,a✓,/ ,,,.,.,..r rU..,/,a,e.;r�ae/,„IicJrr/ur,�.rmieJ/:/J/m/i Jieal,>rIrnin/aiu.,,, .rrr✓'i, /ci,:r, / ,,,,. r ,.,r,,,c, ,„✓a i/,n/,.,ry // //rm,Jn/ ,ir/,,/ir.r Jr/ rno.�,,.'I✓./,,.i„r,.ruJnrlrntcnv a,JU.n COUNCIL ACTION: Approved on 6/9/2015 - Resolution No. 4470-06-2015 Gf//1//l//J//J/J//J/P///J.//fi%JIl,.%//Jll /IJI../1...////,III/J/0...,,//II,J//////J/%J//l/J/II IJOJ/%J///P%J/%IJJPlriJ/J//%l/J/D////JJ//!/Jl/Ile///J/Il i/.eJ//JJ J%J///I'aJ//flJ/JJ//i,//Pl/J////J/////l//!f//%J//J/I//Ill//,,.I//JI,;,/// /JJJ//...LJ/f/J illJ//J////1//I.,,,,,J//';,iJ/J//L//I//.i.,J l✓J///l/%J/J//l.//////YJ//%J/P///%J ll/J%/lJ/L//JlJ/J;.//.//i////b///IJ/J/Jl'./Jl/l////lJn.?/JN(%J//I,/J/11///,///i/f/F,i..'i II DATE: Tuesday, June 09, 2015 REFERENCE NO.: C-27329 LOG NAME: 60VCPIP1-NTC SUBJECT: Authorize Execution of a Contract with North Texas Contracting, Inc., in the Amount of$4,248,197.00 for Village Creek Parallel Interceptor Improvements, Part 1, at Various Locations Within the Village Creek Drainage Basin on Quail Road, Dowdell Road, State Highway 303, Handley Drive and One Easement, Provide for Project Costs and Contingencies for a Project Total in the Amount of$4,459,197.00 and Adopt Reimbursement Resolution (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council 1. Authorize the execution of a contract with North Texas Contracting, Inc., in the amount of $4,248,197.00 for Village Creek Parallel Interceptor Improvements, Part 1, Project; and 2. Adopt the attached resolution expressing its official Intent to Reimburse expenditures with proceeds of future debt for the Village Creek Parallel Interceptor Improvements, Part 1, Project. DISCUSSION: On October 16, 2012, (M&C C-25924) the City Council authorized execution of an Engineering Agreement with RJN Group, Inc. (RJN), for Village Creek Parallel Interceptor Improvements at various locations within the Village Creek drainage basin. The City Council also approved Amendment No. 1 to the RJN contract on May 5, 2015 in M&C C-27283. This Mayor and Council Communication (M&C) is to authorize a construction contract for the replacement of sanitary sewer and water mains as indicated on the following streets: Street From To Scope of C Work Quail Road Dowdell Road Elizabeth Road Isewer Dowdell Road Quail Road 1500 fee- eet west sewer Handley Drive Craig Street E. Rosedale Street water South side of E. Halbert Street 350 feet west water Rosedale Street South side of E. 300 feet east then Halbert Street water I Rosedale Street 100 feet north t Easement north of 6101 W. 6101 W. Pioneer 1,000 feet west (sewer Pioneer Parkway Parkway n Logname: 60VCPIPI-NTC Page I of 4 The project was advertised for bid on October 30, 2014 and November 6, 2014 in the Fort Worth Star- Telegram. On December 4, 2014, the following bids were received: Bidder Amount Time of Completion n North Texas Contracting, $4,248,197.00 Da Y s alendar William J. Schultz, Inc. d/b/a Circle "C" $4,329,161.00 Construction, Company SJ Louis , Texas, Ltd. $4,671,985.95 Construction Ark Contracting $4,866,646.00 Mountain Cascade f$4,923,596.00 Jackson Construction C$5,024,588.50 In addition to the contract cost, the amount of $82,000.00 (water: $25,000.00; sewer: $57,000.00) is required for construction staking, project management, material testing and inspection, and the amount of $129,000.00 (water: $34,000.00; sewer: $95,000.00) is provided for project contingencies. Upon approval of this M&C appropriations for the Village Creek Parallel Interceptor Improvements, Part 1, Project will consist of the following: �RJN Group, Inc., Engineering Contract $ 443,835.35 North Texas Contracting, Inc., $4,248,197.00 Construction Contract Construction Staking, Project Management, Inspection, Material $ 309,000.00 Testing, and Contingencies Project Appropriations $5,001,032.35 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 I` P i Logname: 60VCPIPI-NTC Page 2 of 4 presenting revenue-supported debt issuances to the City Council for consideration within the next three years. The Financial Management Services Director 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 City 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 2015. With contract time of 220 calendar days, the construction is estimated to be completed by the end of January 2016. North Texas Contracting, Inc., is in compliance with the City's BIDE Ordinance by committing to 18 percent MBE participation on this project. The City's MBE goal on this project is 17 percent. This project is located in COUNCIL DISTRICT 5, Mapsco 90J, 90Q and 90S. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that funds are available in the 2017 Water and Sewer Revenue Bonds Capital Project Fund for transfer from Unspecified funding to the Village Creek Interceptor Improvements, Part 1, Project for this contract, as depicted in the table below: Available Fund Remaining Fund Amount Transfer Available Fund Amount 2017 Water and Sewer Revenue Bonds Capital $69,095,423.06 $4,459,197.00 $64,636,226.06 Project Fund Subject to M&C approval, transfer from Unspecified and appropriation to the Village Creek Interceptor Improvements, Part 1, Project, the proposed funding for the revised project will consist of the following: Encumbranbrances Fund Existing Additional Revised Remaining Appropriation Appropriations�Appropriations and Expenditures Balance _. ._ ........_ . Water Capital Projects $175,827.00 $0.00 $175,827.00 $139,348.39 $36,478.61 Fund (P265) Sewer Capital Project $366,008.35 $0.00 $366,008.35 $239,635.75 $126,372.60 Fundi (P275) Logname: 60VCPIPI-NTC Page 3 of 4 2017 Water and Sewer Revenue Bonds $0.00 $4,459,197.00 $4,459,197.00 $0.00 $4,459,197.00 Capital Project Fund (P266) Tota Project $541,835.35 $4,459,197.00 5,001,032.35$378,984.14$4,622,048.21 FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers P266 531350 605170196152 $6,000.00 P266 511010 605170196180 $3,000.00 P266 541200 605170196183 $1,141,033.00 P266 531350 605170196184 $1,000.00 P266 531200 605170196184 $5,000.00 P266 511010 605170196185 $10,000.00 P266 531350 705170196152 $10,000.00 P266 511010 605170196185 $5,000.00 P266 541200 705170196183 $3,236,164.00 P266 531350 705170196184 $2,000.00 f P266 531200 705170196184 $10,000.00 P266 511010 705170196185 $30,000.00 CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) r Originating Department Head: Andy Cronberg (5020) Additional Information Contact: Roberto C. Sauceda (2787) I` ff l Logname: 60VCPIPI-NTC Page 4 of 4 i