HomeMy WebLinkAboutResolution 4514-09-2015 A Resolution
NO.4514-09-2015
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE OVERSIZING OF THE
WESTSIDE V WATER MAIN TO SERVE FUTURE GROWTH AREAS AROUND WALSH RANCH
AND THE MORNINGSTAR DEVELOPMENT PROJECT
WHEREAS, the City of Fort Worth, Texas (01.e "City") is a home :rule municipality and
political subdivision of the State of Texas; and
WHEREA.S, the City expects to pay expenditures in connection with the design, planning,
acquisition and construction for the Oversizing of the Westside V Water Main to serve future grc:)wtfi,
areas around Walsh Ranch and the Morningstar Development 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 suell, chooses to declare its intention., in accordance
with the provisions of Section 1.1.50 2 of the Treasury Regulations, to :reimburse itself :for
such payments at such time as it issues obhgatior.i.s to finance the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OFT CITY OF
FORT WORT H, TEXAS:
8 e c t i om ]., The City reasuin.ably expects debt, as one or more series of obligationsl,
may be issued or incurred by the City with. an. aggregate maximum principal amount not to
exceed $2,200,000.00 for the purpose of paying glue aggregate costs of the Project.
Section 2. All costs to be reim.bursed. pursuant hereto will. be capital expenditures.
No obligations will be issued by tb.e City in furthe:rance of tll.is Statement after a date which
is later than 18 months after the later of (1) tile date the expenditures are paid or (2) the
date on which the property, with :respect to which sucll expenditures were made, :is placed in
service.
Sec ction 3. The :foregoing notwithstanding, no obligation will be issued pursuant to
this Statement more than three years after the (late any expenditure which is to be
reirribursed is paid.
Adopted this 151h day of SeX92ibe-r.,2015, 4>4 44
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City ort Worth,, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 9/15/2015 - Resolution No. 4514-09-2015 & Ordinance No
21888-09-2015°
DATE: Tuesday, September 15, 2015 REFERENCE NO.: -27460
LOG NAME: 06MORNINGSTAR OFFSITE WATER IMPROVEMENTS -WESTSIDE.
SUBJECT:
Authorize Execution of Community Facilities Agreement with FG Aledo Development, LLC.a and Walsh
Ranches Limited Partnership in the Amount of ,593,725.52, with City Participation in the Amount of
$2,046,776.45 for the Oversizing and Construction of Westside V Water Main to Serve the Morningstar
Development, Walsh Ranch and Surrounding Areas Located East of in Fort`Forth's
Extraterritorial Jurisdiction and adopt Reimbursement Resolution and Adopt Appropriation Ordinance ( T
ADJACENT to COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Councils
1. Authorize the acceptance of funds in the amount of 1„07 . from Walsh Ranches Limited
Partnership for oversizing the water capacity in the Westside V 24-inch/30-inch/36-inch water main to
serve Walsh Ranch;
. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water Capital Projects Funds in the amount of 31,074.23$
. Authorize the execution of a Community Facilities Agreement with FG Aledo Development LC., in the
amount ,4„593,725.52$ which includes City participation in the amount of ,776.43 and Walsh
Ranches Limited Partnership financial participation in the amount of$431,075.28 for the installation of a
24-inch/30-inch/36-inch water main to serve the Morningstar Development, Walsh Ranch and to
accommodate future growth in the surroundings areas located East of FM 3325; and
. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for the cost of oversizing the Westside V 24-inch/30-inch/36-inch water main to serve Walsh
Ranch and construction of 24-Inch/36-inch water main to serve Morningstar and surrounding areas
located East of FM 3325 in Fort Worth's Extraterritorial Jurisdiction.
DISCUSSION:
Morningstar, a development located in Fort Worth's Extraterriitoriall Jurisdiction (ET )W is located within the
Municipal Utility Districts No. 1 and No. 2 of Parker County (Districts), which were established on
December 4, 2007 per M&C C-22562.. Aspart of their off.-site water infrastructure, Morningstar needs only
a 16 inch Westside V water main to serve its site. Walsh Ranches Limited Partnership agreed to cost
participate in the estimated amount of 31,074.23 in this proposed off-site water main for the r
capacity needed to serve the Walsh Ranch Development, which is adjacent to Morningstar. The City of
Fort Worth is cost participating in the oversizing of the off-site Westside V 24-inch/30-inch/36--inch water
main to serve anticipated future growth in the surrounding area. The City of o Worth's cost participation
I..,ognwn,e: 06MORN'INGST'AR OFT SITE, ATER tMPRtJV ;MEN'” "l - WESTSIDE 5 Page 1 of 3
in the construction of said water main is estimated in the amount of$2,048,776.48,. The estimated
construction cost for this water main is subject to construction inspections and material testing fees.
FG Aledo Development, LLC,, agrees to pay for additional inspection fees that would be above the
standard 2 percent if the City deerns the need to require additional inspections.
The summary of costs associated with Morningstar, Walsh Ranches and the City of Fort Worth is as
follows:
Morningstar Walsh
Cost City Cost Ranches C ost Total Cost
A. Water
Construction,
.. .............
1 Water $1, 59
626,057.50 $1,57 , 81,,66� $331 595.60 $3,5,33,635.00
.......... .............................
ith 25%
Contingency $2,032,571..88]$1,969,977.38 $414,494.50 $4,417,043.76
. ....... ..............
...............
B. Construction
Fees-
9,39 5
[1........Inspection (2%) $40 6 5' 1..........4 4"�...... 39,399 $8,289.89 $88,340.88
.............. .............
$39,399.19 ��8,289.89 $88,340.88
Material Testing $40,651.44 5
Fees (2%)
. .......... .....................
Construction Fees $81,302.88' $78,799�10 $16,579.78 $176,681.761
-Tbtal
TO Water $2,113,874.76 2,048,776A 1 8 11-11-1$431,074.28 X4,593,725.52 1 1
Pro iect Cost
.................
The costs stated above are based on an engineer's estimate, This piroject will be publicly bid. The
reimbursement oft e participation (excluding inspection and material testing fees) is not a lump sum
amount and may be less than stated above dependiing upon actual quantities from the Notice of Final
Completion package (green sheet),
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 of Program will be used to provide interirn 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 of 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 Counci:l 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
Lognanie: 06MORNINGSTAR OFTSITE ,.rER IMPROVI.,"MFINT , W1,STSIDL!', 5 Page 2 of'3
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 with other 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 and proceeds,
This project is located in Fort Worth's Extraterritorial Jurisdiction (ETJ ADJACENT to COUNCIL DISTRICT
3), Mapsco 710U, 71 OV, 710Y, 7102, 71 1S, 71 1W, 760C, 760D and 761A.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds are available as directed by M&C G-
18375 in the 2017 Water and Sewer Revenue Bonds Capital Project and for transfer from unspecified
funding to the Westside V 24-inch/30-inch/36-inch water main project as depicted in the following table:
Fund Available Projected Balance
Appropriation Expenditures
Amount
017 Water and $49,508,594A6 $2,048,776.48 $47,459,817,,98
Sewer Revenue
Bonds Capital
Project Fund
After appropriation of the amount of$2,048,776.48 tote project, an amount of$47,459,817.98 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
2 P26 48 100 600140260683 1414_494.50 2)_E266 Q91.40 600140260683 V_969 97738
21 P265 488500 600140260684 $Q.289.89 3Lt�2M............5.3.1.,200 600140260684 X39 3L99.55
2 P265 466100 609149269685 $ :LL 89 3).P266 531350 600140260685
$1129-955r
2 _E26 9140 600140260683 $414 494.50 3) x'265 54J Q01402606X414,494,50
299,& 83
2) P265 531200 6..00140260684 3 26 531200 e 600140260684 9.8R
K28—
QP265 531350 600140260685 X F2.§L. 531350 600140260685 $a_289 89
. .............................
CERTIFICATIONS:
Jesus J,, Chapa (5804)
Submitted for Clily Managegrr'!s Qffic by: Fernando Costa (6122)
John Carman (8246)
Originating ®e artment Head® Randle Harwood (6101)
Wendy Chi-Babulal (8242)
Additional Information Contact: Julie Westerman (2677)
1,0gD.W.11C: 06MORN.FNGSTAR OFFSITE WATER IMPROVEMENT'S - WE.S'I'SIDE 5 1'age 3 of 3