HomeMy WebLinkAboutResolution 4518-09-2015 A Resolution
NO.4518-09-2015
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE UPPER BIG FOSSIL
CREEK DRAINAGE BASIN PARALLEL INTERCEPTOR IMPROVEMENTS 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 Upper Big Fossil Creek Drainage Basin Parallel Interceptor
Improvements 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 $600,000.00 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.
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 29th day of September, 2015. "r
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ATTEST:
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Mary f / s r, Cit"q Secretary EA
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MAYOR AND COUNCIL COMMUNICATION MAP
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000/01 f,,,,,, SANITARY SEWER
IMPROVEMENTS
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/29/2015 - Resolution No, 4518-09-2015
DATE: Tuesday, September 29, 2015 REFERENCE NO.: **C-27488
LOG NAME: 60UBFM347BCVAR-TNP
SUBJECT:
Authorize Execution of an Engineering Agreement with Teague, Nall and Perkins, Inc., in the Amount of
$449,945.00 for Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements Within the
Upper Big Fossil Creek Drainage Basin, Provide for Project Management, Real Property Acquisition and
Utility Coordination Costs for a Project Total in the Amount of$464,945.00 and Adopt Reimbursement
Resolution (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that City Council:
1. Authorize the execution of an Engineering Agreement with Teague, Nall and Perkins, Inc., in the
amount of$449,945.00 for Upper Big Fossil Creek Drainage Basin Parallel Interceptor improvements at
various locations within the Upper Big Fossil Creek Drainage Basin; and
2. Adopt the attached resolution expressing the official intent to reimburse expenditures with proceeds of
future debt for the Upper Big Fossil Creek Drainage Basin Parallel Interceptor improvements at various
locations within the Upper Big Fossil Creek Drainage Basin Parallel Interceptor.
DISCUSSION:
This project consists of the preparation of plans and specifications for the replacement of the severely
deteriorated portions of the City's Sanitary Sewer Main within the Upper Big Fossil Creek Drainage Basin.
The project will also provide for route analysis and design for the Upper Big Fossil Creek Drainage Basin
Parallel Interceptor.
Teague, Nall and Perkins, Inc., proposes to perform the design work for a lump sum fee of$449,945.00.
Staff considers this fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $15,000.00 is required for project management, real property
acquisition, utility coordination and material testing.
Upon approval of this M&C, appropriations for the Upper Big Fossil Creek Drainage Basin Parallel
Interceptor Improvements Project will consist of the following:
Teague, Nall and Perkins, Inc. Engineering Agreement ($449,945.00
`Project Management, Utility Coordination and Material Testing ($ 15,000.00
[iotalAppropriations _ 1$464,945.00
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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 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 by 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 bond proceeds.
M/WBE OFFICE - Teague, Nall and Perkins, Inc., is in compliance with the City's BDE Ordinance by
committing to 13 percent SBE participation. The City' s SBE goal on this project is 10 percent.
The project is located in COUNCIL DISTRICT 4, Mapsco 35Y, 35Z, 36W and 50A.
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 Fund for transfer from unspecified
funding to the Upper Big Fossil Creek Drainage Basin Parallel Interceptor Improvements Project for this
contract as depicted in the following tables:
Available Projected
[Fund Appropriation Expenditures Balance
Amount
2017 Water and
Sewer Revenue $44,320,486.02 $464,945.00 $43,855,541.02
Bonds Capital
Project Fund
After appropriation of the $464,945.00 to the project, $43,855,541.02 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
P266 531200 0704170251530 $449,945.00
Logname: 60UBFM347BCVAR-TNP Page 2 of 3
P266 531350 0704170251573 $2,000.00
P266 511010 0704170251580 $8,000.00
P266 531200 0704170251584 $5,000.00
CERTIFICATIONS:
Submitted for City Manager's Office bV: Jay Chapa (6122)
Originating Department Head: John Carman (8246)
Additional Information Contact: Walter Norwood (5026)
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