Authorize an Expenditure in the Amount of $22,206.00 from the Water & Wastewater DPN Fund for Programmable Community Facility Agreement Projects for Upsizing Sewer Line to Serve the Bridges Phase 2 and the Surrounding Area and Adopt Reimbursement Resolution (EXTRATERRITORIAL JURISDICTION)  

It is recommended that the City Council:

1.  Authorize an expenditure in the amount of $22,206.00 from the Water & Wastewater DPN Fund for Programmable Community Facility Agreement Projects for costs related to upsizing a sewer main from 8-inches to 15-inches within the limits of the Bridges Phase 2 to serve that development and anticipated growth in the surrounding area; and

2.  Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of future debt for the Bridges Phase 2.

LGI Crowley Land Partners, LLC, the developer of The Bridges Phase 2 (Developer), is executing a Community Facilities Agreement (CFA) for construction of public infrastructure, including water, sewer, paving, storm drain and street light improvements, to serve that development located in Fort Worth's Extraterritorial Jurisdiction (ETJ).

City staff has determined that the water line requires upsizing to serve future development in the area.  The Water Department is participating in the Developer's project to upsize the water line from an 8-inch line to a 15-inch line to serve the anticipated future growth.  The City's cost participation to upsize the water line is estimated to be in the amount of $22,206.00, as shown on the table below.
  

Cost Item	Developer Cost	City Cost	Total Cost
Water	$   235,841.00		$   235,841.00
Sewer	$   699,593.00	$18,567.00	$   718,160.00
Paving	$   247,963.00		$   247,963.00
Storm Drain	$   783,884.00		$   783,884.00
Street Lights	$   101,496.00		$   101,496.00
Contingency		$  2,785.00	$       2,785.00
Construction Subtotal	$2,068,777.00	$21,352.00	$2,090,129.00
Construction Fees
Material Testing	$     39,346.00	$     427.00	$     39,773.00
Inspection	$     64,042.00	$     427.00	$     64,469.00
Construction Fees Subtotal	$   103,388.00	$     854.00	$   104,242.00
Total Project Cost	$2,172,165.00	$22,206.00	$2,194,371.00

The costs stated herein may be based upon construction estimates rather than actual cost.  The reimbursement of the participation, excluding inspection and material testing fees, is not a lump-sum amount and may be less than stated above depending upon actual quantities from the Notice of Final Completion Package, commonly referred to as the Green Sheet Package.

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 (DPN) 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 DPN 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.

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.  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.

The project is located in Extraterritorial Jurisdiction, Mapsco 117 U and 117Y.

This M&C does not request approval of a contract with a business entity.