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 Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 1 Project;

2.  Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and Sewer DPN Fund in the amount of $1,431,441.00; and

3.  Authorize execution of a contract with Mountain Cascade of Texas, LLC, in the amount of $1,215,510.00 for Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 1. City Project No. 01333.

This project provides for the installation of a 48-inch sanitary sewer main beginning from a point on Oak Grove South located 1600 feet North of the Rendon-Crowley Road E./Oak Grove Road S. intersection, then north easterly 3,100 feet. The proposed sewer main is necessary for additional wastewater conveyance capacity to meet current demands and future growth in the southeast part of Fort Worth and the wholesale customer cities of Burleson and Crowley.

This project was advertised for bids on June 15, 2017 and June 22, 2017 in the Fort Worth Star-Telegram. On August 3, 2017 the following bids were received:

Bidder	Amount	Time of Completion
Mountain Cascade of Texas, LLC	$1,215,510.00	170 Calendar Days
S.J. Louis Construction of Texas, Ltd.	$1,367,533.00
Condie Construction Company	$1,399,816.00
Circle C Construction Company	$1,452,077.00
Ark Contracting Services	$1,885,898.00
Thalle Construction Company	$1,905,506.22

In addition to the contract amount, $155,155.00 is required for project management, material testing and inspection and $60,776.00 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 2018-2022 Five Year Capital Improvement Plan on September 26, 2017.  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 May 2018. The overall project budget is estimated to be $12,500,000.00. 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 – Mountain Cascade of Texas, LLC, is in compliance with City's BDE Ordinance by committing to seven percent MBE participation. The City's MBE goal on this project is five percent.

The project is located in COUNCIL DISTRICT 8, Mapsco 120E and 120F.