On June 23, 2009, Texas Department of Transportation (TXDOT) entered into a 10-year Agreement with North Tarrant Express Mobility Partners (NTEMP) to identify and construct highway improvements in the northeastern part of Tarrant County including portions of the I-35W, I-820 and SH-183 corridors within the City. The IH-820 corridor has been organized into segments. Segment 4 is being designed and constructed by TXDOT under the traditional design, bid and build method. Design of the water relocations for Segment 4 on IH-820 and SH121 will be included in TXDOT's plans.
Kimley-Horn and Associates, Inc., proposes to provide the necessary design, project management and construction services for a lump sum fee of $541,500.00. Construction support services includes attend preconstruction meetings, on-site observations, construction progress meetings and shop drawing reviews. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $550,000.00 is required for project management, real property acquisition, land costs and inspection.
Engineering for North Tarrant Express Segment 4, IH-820 from Randol Mill Road to North of Interchange with SH121/SH183 is one component of the overall project that includes project management, easement acquisition, material testing, inspection, construction and contingencies. The overall project budget is $4,940,300.00. Design is expected to start in June 2017 and be completed by December 2017. Construction is anticipated to commence in January 2018 and be completed by January 2023.
This project will have no impact on the Water Department's operating budget when complete.
This project is anticipated to be included in a future revenue bond issued 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 (DPN) 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, Mayor and Council Communication (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.
M/WBE OFFICE: Kimley-Horn and Associates, Inc., is in compliance with the City's BDE Ordinance by committing to 27 percent SBE participation. The City's SBE goal on this project is 15 percent.
This project is located in COUNCIL DISTRICTS 4 and 8, Mapsco 66A, 66E, 66F, 66J and 66K. |
