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HomeMy WebLinkAboutResolution 4513-09-2015 A Resolution NO.4513-09-2015 STATE ME NT EXPRESSING OFFICIAL INTENT TO REIMBIJRSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE OVERSIZING OF A SEWER MAIN AND TWO SIPHONS TO SERVE MORNINGSTAR DEVELOPMENT PROJECT WHEREAS, the City ofFort Worth, 'rexas (tile "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 Oversizing of a Sewer Main and Two Siphons to serve Morningstar Development project as shown on the attached map (the "Pro"ject") prior to the issuance of obligations by the City in corinection with the financing of the Project from available funds; and WHEREAS, th.e City finds, con.siders, and declares that the rei.mbursement of the City for the payment of such expenditures will be appropriate and consistent with t1i.e lawful objectives of the City and., as such, chooses to declare As intention, in accordance with the provisions of Section 1,150 2 of' the Treasury Regulations, to :reimburse :itself :for such paryments at such tinae as A issues obligations to finance the Project; NOW, TtIEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Secti.on. 1, The City reasonably expects debt, as one or more series of obligations, may be issued or incurred by the City with an agg:regate maximum principal amount :not to exceed $3,000,000.00 for tine purpose of paying the aggregate costs of the Project. .8e eti on-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 t1i.e late.r- of (1) the date the expenditu:res are paid or (2) the date on which the property, with respect to which such. expendituxes were made, is placed in service. Section—3 The foregoing notwithstanding, no ob.]Ligatior.i. 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 1.5th day of S epal mber, 2015. ATTEST: 19tv 00000000 0- 0 0 16 0 0— a 0 0 00 0 13 J. *.�BY' 0 *00000000 Mary, P)K s'er, it "'ecretary 4�1 q- A ()— S-e-zr, �c i t /s,-cc &F RT Y!VOW qW ...........................—..............................—__................... ..............--.................... .................... ...............-.................................................—............................................................................... FORITWORITH C01:1 I'RIG I 11 201,C')I y 01 1 OR I VIVO I U1 N Morning Star Sewer I m NO S I q 7 A 1 ON P, !A"",l�,NO 10 1 11: MV I N I J M I-)A:�',DA T",I HC)C9 CED NO 1111 1::::FH I I:59 I I fl:'CX�FS 0 1�1::','A RFG IS 9 FRF0::�I:Wr I SSIO I WAWR UIKvI:1'0R IHECITYM ........... P CJ F2 f I.ACWJRAI.,Y OF S/1M DATA m crs OSW9L4D- 3 U�SSJ Lu ck < FLOjENC Q MCLERAES*k� T. ICE OLC 7.1 15- 7Y.O;R Ti- N, _jGH N 6T p 71X 0 %EA C1tFE*Rak#MW�f*gR'1 . ..... �SL, EA C HT 21 TPRMINAL q Pon Lu a 0 0 v 3 xx f 0 c OP CREEK Y- cUr-FORD T 0 aka m MORNINGST aka LILO PARK) N I �LA 3 m 00 0 WES'm Rps qty _CZ) JA BOWIE C, c-C 0 X I� L, B - " 0, A?E TZ c �2 sou WIT, I=u I LL S ;1 c a 500 k AV, DI S Lu Ic msvCA46R,E Al ................— RISINGEO' C c c a,c MOR NGSTAR(akaCAVA OPARK) E 4MENDON COO Legend All Sewer Mains STYPE U :)R F11GSTAR(."k.CAVAf0P9 2, —)b.—Gravity C: 0 —0—Low Pressure —)o--Form, a CFWGIS,SDE,CAD DEV PRELIM SUBS m ux 0 I I............ ................ 0 3,508,0 ,500,000 NAD� M3 SinteRaine..T�Dxss mNorth,r.�CoiiitralFOIPS.,A202m Feet 11 Inch mquals 7(M feet Feet City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/15/2015 - Resolution No. 4513-09-2015 DATE: Tuesday, September 1 , 2015 REFERENCE NO.: -27459 LOG NAME: 06MORNINGSTAR OFFSITE SEWER IMPROVEMENTS SUBJECT: Authorize Execution of a Community Facilities Agreement with FG Aleo Development, , in the Amount of$5,176,135.89, with City Participation in the $2,794,031.96, for the Construction and Oversizing of a Sewer Main and Two Siphons to Serve the Morningstar Development and Accommodate Future Growth in the Surrounding Areas Located st of FM 3325 and Along Old Weatherford Road in Fort Worth's Extraterritorial Jurisdiction and Adopt Reimbursement Resolution ( TJ ADJACENT to COUNCIL (STRICT ) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a Community Facilities Agreement with FG Aleo Development, LL C, in the amount of$5,176,135.89, with City participation in the amount of$2,794,031.96, for the construction and oversizi of a 1 -inch to 0-inch sewer main and 8-inch to 15-inch and 1 -inch to 21-inch siphons to serve the Morningstar Development and to accommodate future growth in the surrounding areas located East of FM 3325 and along Old Weatherford Road in the City's Extraterritorial Jurisdiction; and . Adopt the attached resolution expressing official intent to reimburse iturs with proceeds of future debt for the cost of riin a 15-inch to 30-inch sewer main and 8-inch to 15-inch and 1 -inch to 21-inch siphons to accommodate future growth in the areas located East of FM 3325 and along Old Weatherford Road in Fort Worth's Extraterritorial Jurisdiction. DISCUSSION: Morningstar Development (Morningstar) i located in Fort Worth's TJ (see attached Map). Morningstar is located within Municipal Utility Districts No. 1 and No. 2 of Parker County which were established on December 4, 2007 per M&C C-22562. As part of Morningstar's community facility infrastructure, Morningstar needs only a 15" sewer main and related i on to serve its site. The City of Fort Worth desires the oversizing of the sewer main and siphons in r r to serve regional growth needs and agrees to cost participate in the construction of these facilities. The estimated City cost participation is the amount of 2,794,031..96. The construction costs are subject to construction inspection and material testing fees. The summary of costs associated with Morningstar and the City of Fort Worth are as follows: ..... _ ...... .......... _------- ......_. Morningstar ........ _ _._.......... .... ...... ........ Cost City Cost Total . Sewer Construction ...... _a ..-...........__www.__. _.._ ....._. . __.w..._._...... _.....__,........ . ._ ._._.._ 1. Construction Cost mr _ 1„0329387.64 ....7 C.. 2,,149,25~5 36(, $3,9$1,643 00 With 5% Contingency _ 90,40. 55 $2,686,569.20["" 2,6 569 20[ $4,977,053 75 g _ �_ _ w .... 2, D, Construction Fees �. _ __..._. _f ............... Loge e: 06MORNINGSTAR OFFSITE SEWER IMPROVEMENTS Pagel of 3 1. Inspection,Fe_(2 m percent) $45, 09,69A, $53,731.36, $99,541.071 __ ...... ( r _ . .. ...._ .... ..... _.. ..... .._. percent) $45 2. Material sin e..._.._ 9 $53,731 38 $99,541.07 Construction tl 1 1 ... 3.... _. $1079462 7"""' f $199082.14 1 ..... _ _ _.. ........ ... ...._.. ...__ COtl Water and r r ' c �2 7 31 96�...._ ....ost.. .._.. .. ......_..._.__ __.... _ , ... .r..1.._._3 9 '......._ ......... $5,176,135.89 I.The costs stated above are based on the engineer's estimate. This project will be publicly bid. The final reimbursement of the cost participation (excluding inspection and material testing fees) is not a lump sum amount and may be less than stated above depending upon the public bid prices and the actual quantities from otic Final Completion ac a e (green sheet). This project is anticipated included in a future revenue issue for the Water and Sewer Fund. Available cash within the Water and Sewer portfolio and the City's olio along with the appropriation auri on r the Direct Purchase of r r 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 rovi interim financing, the t r and Sewer Fund will be charged interest that is equivalent to the v r II rate of e being earned by the City portfolio (currently approximately one- percent nnu ll ). Should the City's portfolio not support the liquidity needed to provide an interim short- term r financing source, another funding source will be required, which could issuance of securities under the it ect Purchase Note Program or earlier issuance of r and Sewer revenue is currently planned. Once associated it this project is sold, o roc will be used reimburse e Water and Sewer portfolio and the City's portfolio in accordance with c Reimbursement Resolution. In accordance with the provisions of Financial Management Policy Statements, Staff anticipates presenting revenue-supported debt issuances the City Council for consideration within the next three years. The Financial Management Services Department is currently working with II departments ensure that ulti- r Capital Improvements Plans are in lace, Newly developed already i i Ins, such as the r Department's current multi-year Capital Improvement la , will be presented to City Council for review o do . If the City Council-adopted pIan does not include issu debt for this specific project, the roject will be funded with other financing sources. I ou cil- o to plan calls for debt issuance, that debt must issued within approximately thr r to provide reimbursement for these expenses. If that does not occur, the costs will no longer be reimbursable issuing - debt and the funding source will have to be made whole r other budgetary methods. Adoption of this resolution do not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-exempt rocee s. This project is located in in ort 's Extraterritorial Jurisdiction ( TJ Adjacent to COUNCIL DISTRICT 3), Mapsco 71 OU, 71 OV, 71 OY, 71 OZ, 7115, 711 , 760C, 7 n . FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that funds are available as irect C G- 18375 in the 2017 Water and Sewer Revenue Bonds Capital Project Fund for transfer from unspecified funding for the oversizing of a 15-inch to 30-inch sewer main and an -inc 1 -inch and 12-inch to 21- inch siphons cc omodate future growth in rs located East of and along Old Weatherford Road in Fort Worth's Extraterritorial Jurisdiction s depicted in the following table: .....und Available Projected _ ..._... ..... l4ala......_ F glance Appropriation Expenditures L,ogriame: 06MORNINGSTAR OFFSITE IMPROVEMENTS Page 2 of 3 mount } 2017. r 7 ,, ...... 7....... ..... 1. . ..... .. _..........._......._ _......M.. 2 ...m. tl T 9 T Revenue and After appropriation of the $2,794,031.96 to the roject, the amount of ,7 6. 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. i°'266 539120 703140259163 $ 6,569.20 2LP266 531200 TQ14025914 $53,731.36 2 F 266 531350 703140259118 53.731.36 CERTIFICATIONS: Jesus J. Chapa ( ) Submitted for City Manager's Office b Fernando Costa (6122) John Carman (82 46) Originating Department Head: Randle Harwood (61 1) Wendy hi® ulal ( 2) Additional Information Contact: Julie Westerman (2677) 1_,o n e: 06MORNINGSTAR OFFSITE SEWER IMPROVEMENTS Page a of 3