It is recommended that the City Council:

1. Adopt the attached resolution expressing official intent to Reimburse Expenditures with proceeds of future debt for the Marine Creek Interceptor Improvements Project;  
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of $1,922,700.00; and
3. Authorize execution of a contract with William J. Schultz, Inc., d/b/a Circle "C" Construction Company, Inc., in the amount of $1,634,700.00 for Marine Creek Interceptor Improvements Phase I, Part 1. (City Project No.02223)
   

This project provides for trenchless pipe enlargement to upgrade and replace an existing deteriorated sanitary sewer main located within the Marine Creek Basin beginning from Bowman Roberts Road/Cromwell Marine Creek Road intersection southerly 5,500 feet.

This project was advertised for bids on April 13, 2017 and April 20, 2017 in the Fort Worth Star-Telegram. On June 8, 2017 the following bids were received:

Bidder	Amount	Time of Completion
William J. Schultz, Inc. d/b/a Circle "C" Construction Company, Inc.	$1,634,700.00	320 Calendar Days
PM Construction, Inc.	$1,999,365.00
ARK Construction Company, Inc.	$2,500,400.00

In addition to the contract cost, $206,200.00 is required for project management, material testing and inspection and $81,800.00 is provided for project contingency.

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 2017-2021 Five Year Capital Improvement Plan on January 24, 2017, Mayor and Council Communication (M&C G-18927). 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 Statement, 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 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.

Construction is anticipated to commence in November 2017 and be completed by October 2018. The overall project budget is estimated to be $1,922,700.00. This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will have no impact on the Water Department's Operating Budget when complete.

M/WBE OFFICE – William J. Schultz, Inc., d/b/a Circle "C" Construction Company, is in compliance with City' s BDE Ordinance by documenting good faith effort.  The City's MBE goal on this project is six percent.

The project is located in COUNCIL DISTRICT 2.