It is recommended that the City Council:

1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Marine Creek Parkway Project of the Transportation Impact Fee Capital Projects Legacy Fund in the amount of $1,700,000.00 and reduce the fund balance in the reserves of Service Area G Fund by the same amount;  

2. Authorize the execution of a contract with Jackson Construction, Ltd., in an amount up to $11,531,299.00, including potential incentives in an amount up to $105,000.00, for the construction of improvements to Marine Creek Parkway/Old Decatur Road from South of McLeroy Boulevard to North of Grayson Road, Cromwell Marine Creek Road from Old Decatur Road to Marine Creek Parkway and Longhorn Road from Old Decatur Road to Marine Creek Parkway and Construction of Northside II 48-inch Water Transmission Main Phase 2, Part 3; and

3. Authorize the execution of an Agreement with Kimley Horn and Associates, Inc., in an amount not to exceed $206,800.00 additional design, project management and construction services during the construction of Marine Creek Parkway/Old Decatur Road from South of McLeroy Boulevard to North of Grayson Road, Cromwell Marine Creek Road from Old Decatur Road to Marine Creek Parkway and Longhorn Road from Old Decatur Road to Marine Creek Parkway, with expenditures to be reimbursed from future debt.

This project provides for the construction of Improvements to Marine Creek Parkway/Old Decatur Road from South of McLeroy Boulevard to North of Grayson Road, Cromwell Marine Creek Road from Old Decatur Road to Marine Creek Parkway and Longhorn Road from Old Decatur Road to Marine Creek Parkway and the Construction of Northside II 48-inch Water Transmission Main Phase 2, Part 3. The project was advertised on March 10, 2016 and March 17, 2016 in the Fort Worth Star-Telegram using the low bid plus incentives method. Jackson Construction Ltd., submitted the lowest bid. On April 21, 2016, the following bids were received:  

Bid Results
Contractor	Bid
Jackson Construction, Ltd	$11,426,299.00
Oscar Renda Contracting, Inc.	$11,497,539.15
Tiseo Paving Co.	$12,608,404.59

Construction of the Marine Creek Parkway improvements is one component of the overall project that includes design, project management, easements, right-of-way acquisition and contingencies. The overall project budget is $14,909,250.00.

There are potential incentives of $3,000.00 per day, up to a maximum $105,000.00, built into the construction contract if the contractor delivers the project prior to a specified milestone. Failure to deliver the project by the specified substantial completion date will subject the contractor to liquidated damages of $3,000.00 per day until substantial completion is achieved.

Kimley Horn and Associates, Inc., will perform additional project design, and will perform construction services to oversee the project.

This project will have no impact on the Water Department's operating budget when complete.

Construction is anticipated to commence in July 2016 and be complete in 480 calendar days.

A portion of the costs for this project are included in the 2014 Bond Program. Available resources within the General Fund will be used to provide interim financing for these expenses until debt is issued. Once debt associated with this project is sold, bond proceeds will reimburse the General Fund, in accordance with the statement expressing official Intent to Reimburse that was adopted as part of the ordinance canvassing the bond election (Ordinance No. 21241-05-2014).

A portion of this project is anticipated to be funded through inclusion 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 Reimbursement Resolution for the entire Northside II 48-inch Water Main, Phase II Improvement Project that is also on today's agenda.

The City Council adopted the Water Department's Fiscal Year 2016-2020 Five-Year Capital Improvement Plan on February 2, 2016 (M&C G-18662). This City Council adopted plan includes this specific project, with funding identified through the DPN program to be reimbursed with future revenue bonds. 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. This 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. The adopted 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:  Jackson Construction, Ltd., is in compliance with the City's BDE Ordinance by committing to one percent  MBE participation and documenting good faith effort. Jackson Construction, Ltd., identified several subcontracting and supplier opportunities. However, the MBE's contacted in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 22 percent.

Kimley-Horn Associates, Inc., is in compliance with the City's BDE Ordinance by committing to 10 percent SBE participation. The City's SBE goal on this project is 10 percent.

This project is located in COUNCIL DISTRICT 2.