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HomeMy WebLinkAboutResolution 4519-09-2015 A Resolution NO. 4519-09-2015 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CONSTRUCTION AND OVERSIZING OF THE VILLAGE CREEK CHLORINE CONTRACT BASIN 21/22 CATWALKS 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 Chlorine Contact Basin 21/22 Catwalks 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 $220,000.00 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. tt� September, 201 RT Adopted this 29 day of °�°° � ATTEST: ,0Qd B y: �kro Mar /'ys,Cr, 64'ty Secretary °`'�'�""���� O WORT i Village Creek a I � Water Reclamation Facility asi I� l L _v. I L 1� �"� v,ll,�• i I { � i q i �u I 1P �, 1° a p � h III 11� III pp t i cI y X11 i , n, ✓A r � � �� � r�� iaypj �,i� n _, l%//%llu ✓/. ,��o:, ,7M � """ru or/�, � �." .. .,J.;i/ � �y�t� y <,� I IP;I U�ll ���. iii ,/ l � ,,,, ,i/�.//,i i//yll/i ai,��r.,r,/D//c�i,,,,,i i,...o�///�. i�� ©�yj, r�i1 ��, I ✓ 1'�Gi�e (�� s i /, tr 8/18/2015 T C IT COPYRIGH TICFT 13A OF FOR AT LOT OF TN Chlorine WORTH IN UiHOR12Eb REP RODUCTIDI SA VIOLATIOIOF PLICAHIF I.F4'JG ✓ ((( Tf 15 DATA 0 TO BE AGED FOR A,RAPHICA.L.RFf RF FPTAT-IOIIIY. THEACGURATY I-NOTTCI BE TAKEN I-FDA"DAA )DU FL OR SURVIEYORrITHE°CITY OF ORTGORTHA FBTFS 0RETP`T I',;IFI�� Catwalks FOR THEAGGIIRAC'Y-SAID DATA. 0 155 310 620 Feel City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/29/2015 Resolution No. 4519-09-2015 DATE: Tuesday, September 29, 2015 REFERENCE NO.: **C-27489 LOG NAME: 60VC CHLORINE BASIN CATWALKS SUBJECT: Authorize Execution of a Construction Contract with Ark Contracting Services, LLC, in the Amount of $174,000.00 for the Village Creek Chlorine Contact Basin 21/22 Catwalks Project, Provide for Contingencies, Project Management and Other Costs in the Amount of$20,700.00 for a Total Project Cost of$194,700.00 and Adopt Reimbursement Resolution (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize a Construction Contract with Ark Contracting Services, LLC, in the amount of$174,000.00 for the Village Creek Chlorine Contact Basin 21/22 Catwalks Project; and 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Village Creek Chlorine Contact Basin 21/22 Catwalks Project. DISCUSSION: CDM Smith, Inc., was issued a task order under City Secretary Contract Number 41638-R2 to design a solution to a life-safety and maintenance concern related to the removal of pumps at Village Creek Water Reclamation Facility chorine contact basins 21/22. The chlorine contact basins are 23 feet deep and the pumps are located in a pit in the bottom of the basin floor. The two pumps are connected to an integrated hoist/winch system used to bring them to the operating surface at ground level for maintenance. Once raised, Staff must reach over the edge of the basin in order to disengage the pumps from the hoist system. From there, the pumps must be moved across an elevated platform where they can be retrieved by a crane for final removal. The proposed project will install a catwalk system with a handrail over the basin and around the hoist/winch system, eliminating the need for Staff to reach out over the edge of the basin. This project was advertised in the Fort Worth Star Telegram on June 4 and June 11, 2015. On July 16, 2015, the following bids were received: Contractor` _ (Bid AmountrContract Time ARK Contracting Services, LLC 1$174,000.00 150 Calendar Days Felix Construction 1$227,000.00 Gracon Construction, Inc. $234,000.00 This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Logname: 60VC CHLORINE BASIN CATWALKS Page I of 3 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 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 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—ARK Contracting Services, LLC, is in compliance with the City's BDE Ordinance by committing to one percent MBE participation and documenting good faith effort. ARK Contracting Services, LLC, identified several subcontracting and supplier opportunities. However, the MBE's contacted in the areas identified did not submit the lowest bids. The City's MBE goal on this project is five percent. Construction is anticipated to commence in October 2015. With a contract time of 150 calendar days, the construction is estimated to be complete by the end of May 2016. In addition to the contract cost, $12,000.00 is requested for Staff salaries and $8,700.00 for contingencies. This project is not anticipated to affect the Water Department's operating budget. This project is located in COUNCIL DISTRICT 5 and serves ALL DISTRICTS. 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 Village Creek Chlorine Contact Basin 21/22 Catwalks Project as depicted in the table below: Available Projected [Fu nd Appropriation Expenditures Balance Amount 2017 Water and Sewer Revenue Bonds $44,515,186.02 $194,700.00 $44,320,486.02 Capital Project Fund Logname: 60VC CHLORINE BASIN CATWALKS Page 2 of 3 After appropriation ofthe $1S4.7UO.00totheproexct, $44.32O.4O0.U2in available revenue will remain in the 2O17 Water and Sewer Revenue Bonds Capital Project Fund. CENTERS:FUND TO Fund/Account/Centers FROM Fund/Account/Centers P266 511010 701300263780 $12,000.00 P266 541200 701300263780 L182,700.00 P266 485114 601159990100 $194,700.00 Submifted for City Manamer's Office by: JayChopa (8122) Originatinq Department Head: John Carman /8246\ Additional Information Contact: Made|eneRofa/ko 08216\ Logoumo: 60VC CHLORINE BASIN CATWALKS Page 3of3 �