On July 22, 2014 (Mayor and Council Communication (M&C) C-26875), the City Council authorized the execution of a General Engineering Support Services Contract with JQ Infrastructure, LLC in the amount of $500,000.00 for General Engineering Services on Water and Wastewater projects with two renewal options (City Secretary No. 45845). On March 14, 2016, a Task Order 012 - Design of Reclaimed/Recycle Service Waterline Improvements at Village Creek Water Reclamation Facility (VCWRF) was issued under this support contract.
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.
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.
This VCWRF Service Waterline Improvements Project is currently under design and expected to start construction March 2017, the anticipated duration for construction is six months. Upon completion of the VCWRF Service Waterline Improvements Project, it is anticipated that there will be no impact to the Water Department's Operating Budget.
The award of the construction contract will be presented to council on a future M&C.
This VCWRF serves ALL COUNCIL DISTRICTS and is located in COUNCIL DISTRICT 5.
This M&C does not request approval of a contract with a business entity. |
