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 Sycamore Creek Interceptor Improvements, Phase 1 Project;

2. Adopt the attached appropriation ordinance reducing unallocated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of $3,415,695.00; and

3. Authorize execution of a contract with Mountain Cascade of Texas, LLC, in the amount of $2,883,880.00 for Sycamore Creek Interceptor Improvements, Phase 1 (City Project No. 02200).

This project will provide additional wastewater capacity to the Sycamore Creek drainage basin by the construction of a 66-inch relief sewer main, extending from an existing 72-inch sewer line located in Gateway Park and proceeding southerly 1,900 feet to the Union Pacific Railroad right-of-way. This project is recommended in the Wastewater Master Plan.

This project was advertised for bids on April 19, 2018 and April 26, 2018 in the Fort Worth Star-Telegram. On May 17, 2018, the following bids were received:

Bidder	Amount	Time of Completion
Mountain Cascade of Texas, LLC	$2,883,880.00	270 Calendar Days
S.J. Louis Construction of Texas, Ltd.	$3,332,773.84
Ark Contracting Services	$3,464,120.00
William J. Schultz, Inc. dba Circle C Construction Company	$3,570,250.00
Thalle Construction Company	$3,793,341.84
Jackson Construction Ltd.	$4,674,251.00

In addition to the contract amount, $380,571.00 is required for project management, material testing and inspection and $151,244.00 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 Callable Commercial Paper Program (CP) 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 CP 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 for Phase 1 is anticipated to commence in September 2018 and be completed by June 2019. 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 25 percent MBE participation. The City's MBE goal on this project is 25 percent.

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