HomeMy WebLinkAboutResolution 4502-08-2015 A Resolution
NO. 4502-08-2015
STATEMENT EXPRESSING
OFFICIAL INTENT REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
SUN COUNTRY ELEVATED STORAGE TANK REHABILITATION PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule municipality
and political subdivision oft State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the Sun Country Elevated Tank Rehabilitation
project as shown on the attached map (the "Project,") for t o t he issuance of obligations
by the City in connection with the financing o f t he 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 o f t he City and, a s s uch, chooses to declare its intention, in accordance
with the provisions of Section 1.150-2 o f t he 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®
"Se"ct-ion- I. 'rhe 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
$200,000000 for the purpose of payiIng 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. 'rhe foregoing nol with stand i r�g, no obligation will be issued pursuant to this
Statement more than three years after the date any expenditure which is to be reimbursed is
1-.)a i d.
pted this 25"' day of Au t st....- 2015��do
TTEST: "0090 00
OVA*
By: ........... ......................
Mary Jo l ay, :-r, (: it:y ecretary
x3f
&qF W
FORT WORTH
60SUN COUNTRY EST REHAB.
Wmm t
NOW, IN
afm
per
�7
M,
0
A
cn
W
Sun Country
2 MG Elevated
EPT
Storage Tank
5800 W. Stewart Feltz
P
NO?,
"go"
Op j
ay
og//
�2
PJ,TF//7/, J,
/,/,/,/,/,/,/,/,/,/,/,/,/,/,/,/,/............."I'll',
Z M,
lb/
.........
/p,171141111il
/h
E
ON ,
"00F,
XMI-1
ip/g/m/m,
/I
/A/M
A/z,"m
71
m OR
"W40",
'41
FF,
IFF/I
L
City f Fort Worth, Texas
Mayor and Council Communication
IIIIIIIIIOOOOOOIIOIINIOIIIIIIIIIIIOIIIIIIIIIIIIIIIIIIIIIIIIIOOIIOOOOWW IIIIWIIIppppppll0 11 0 111111WW11 IIIIIIIIIIIIIIIIIIIII011 IlppppNMpIIIWWWWWiWeW�'AIIIIIIIWWWWWIWWWWW�,WWIIIIIIIIIIIIIIpllppppllllllplW1111111100011111 IW', IIIIIIIIIIIIIIIIIIW
COUNCIL ACTION: Approved on 8/25/2015 - Resolution No. 4502-08-2015
WmW�WWm�WIIIIIWWWm �W�uWWW mWWOOOOOOOUI IIIWW �m Wm00000000u WWW wWn�wuwn ommWm l000000 uu muuuuWU WWIIWWWWWWIIWIIWWUWWWIIIIIIWIIIIWWWIIIIIIIIIIIWWWWWWWWIIIIIIIIIIIWWWWWWWWWWWWWWWWmWIIIIIIIWWIIIIWWUWUWWUWWWW!oouwu.W.WWWW.oW.W.u.�WWIIIIIWWWWIIIIIIIIIIIIIIIIIWWWWWUUWWWWWWwWWWWIIIIIIImWWOWIIiIIIUWWUUUUwWUW�milillllilloiWWWOOIIUImuuWWWWWWWWIIIIIIIIIIIIIWWIIWWWII�o�ooWWllilloilliilllllllllWUWWllllllllllllli
DATE: Tuesday, August 25, 2015 REFERENCE NO.: **C-27432
LOG NAME: 60SUN COUNTRY EST REHAB
SUBJECT:
Authorize c ti Engineering Agreement wit Tank Industry ns It nts, Inc., in un of
$150,600.00 for the Sun Country levate Storage Tank eha ili ion Project Located 5800 W. Stewart
Feltz o Adopt Reimbursement Resolution (COUNCIL IST ICT )
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an Engineering Agreement wi Tank Industry Consultants, Inc., in the amount
of$150,600.00 for the un Country Elevated Storage Tank Rehabilitation Project located .
Stewart Feltz Road; an
attached 2. Adopt the resolution expressing its official Intent to Reimburse expenditures with proceeds of
future Country Elevated Storage Tank Rehabilitation Project.
DISCUSSION:
The Sun Country storage tank s constructed in 1990. It is a two million gallon, all steel hydro-pillar
elevated tank which has never been re-painted, This elevated tank provides potable water storage and
fire protection for areas in south Fort Worth. The existing coating system is in replacement as
required to protect the structural steel from corrosion.
On February 12, 2015, a Request for Proposals was issued for several Water Department projects
including n Country Elevated Storage Tank Rehabilitation Project. On March 13, 2015, total of
five proposals were received from engineering consultants. A Staff consultant selection committee
recommended Tank Industry Consultants, Inc., for the Sun Country Elevated for eha ili in
Project.
As part of the work, Tank Industry Consultants, Inc., will test the existing coatings for heavy metals and
perform a structural inspection of the tank. A preliminary design report eco n in existing coating
removal i l methods, structural repairs and proposed coating system ill be prepared. on
approval of this design report, the engineer will prepare plans, specifications n cost estimates; provide
bidding ssist nc and erfor the construction management and on-site inspection for the rehabilitation
project.
It is anticipated that esi n and preparation of bidding documents will be completed in late Fall 2015 with
bidding, r n construction to occur in 2016.
This project will have o impact on the Water Department's operating u e .
Upon approval of this appropriations for the Sun Country levate d Storage Tank Rehabilitation
Logue e: 60SUN COLJNTRY EST REHAB Pagel of°3
Project will consist of the ollo in
.... ......_...._. ...__ ...._..._._ _..._._.._.__ _......_. _ .. _..... __
Existing Additional 'Nevi Encurnberances
sed and Remaining n Appropriations Appropriations A pro riations Balance
Expenditures
2017 Wa t e r an d .._.....�.. ... ........____.
Sewer Revenue
Bonds Capital $0.00 $150,600.00 $150,600.00 $0.00 $1
Project Fund
256)
Project
o f . _._._1 _ _........... _.__. $0.00,$150,600.00
_..__.m ....... __ . w._...
This project is anticipated to be included in a future revenue bon 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 fort this project until debt is issued. o the extent resources other than the tr and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent overall rate of return being earned by the City portfolio (currently approximately one-
percent annually), Should the i s portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, is could a issuance of securities
under the Direct Purchase Note Program or earlier issuance of aer and Sewer revenue bonds than is
currently planned. Once associated it this project is sole bond proceeds will be used to reimburse
the Water and Sewer portfolio and the City's portfolio in accordance with the attached i urs
'solution.
In accordance with 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 II departments to
ensure multi-year capital improvements plans are in place. Newly developed and already existing
plans, such r Department's current multi-year capital improvement plan will be presented to
City Council for review o i . If the City Council-ado Council-adopted plan include issuance of debt
forthis 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 iin approximately three years to
provide rei urs' en 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 r
budgetary o ds. Adoption of this resolution does not obligate i II bonds, but preserves the
ability to reimburse the Ci from tax-exempt on cee s.
OFFICE an Industry Consultants, Inc., is in compliance with the City's BDE Ordinance
committing to 12 percent SBE participation. The City's goal on this project is 12 percent.
The project is located in COUNCIL DISTRICT .
FISCAL INFORMATI0114 /CERTIFICATION:
The Financial Management Services Director certifies th t appropriations are available as directed by
8& -18375 in 1 ter and Sewer Revenue Bonds Capital Project Fund for this contract as
depicted in the table below:
T,o n co 60SLJN COUNTRY EST REHAB Page 2 of
... .. ...........
Available Remaining
Fund Appropriation Transfer Available
Amount Appropriation
Amount
2017 Water and Sewer vn
Bonds Capital Project Fund $48,118,523.95 $150,600.00 $48,967,923.95
(P266)
d Pro j ect Total _ 48,11 ,.523.95 50,600.00 48,967,923.95
..� _ 48,967,923._9....n5...w_
FUND CENTERS:
TO Fund/Account/Centers O Fund/Account/Centers
P266 531200 606160265930 $1504600,00
CERTIFICATIONS:
Submitted for Citv Manager's Office by: Fernando Costa (8122)
Originating Department Head: John Carman (82 46)
Additional Information Contact: Cris Harder ( )
Log name: 60SLTN COUNTRY TRY EST REHAB Page 3 of 3