M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 - Ordinance No. 23369-09-2018 & Resolution No. 4974-09-2018

DATE: 9/11/2018 REFERENCE NO.: **C-28838 LOG NAME: 60FM156-KHA
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of an Engineering Agreement with Kimley-Horn and Associates, Inc., in the Amount of $400,000.00 for Design and Project Management Services on FM 156 from US 81/287 to Watauga Road Water Improvements, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, Provide for Project Costs and Adopt Reimbursement Ordinance (COUNCIL DISTRICTS 2 and 7)

RECOMMENDATION:

It is recommended that the City Council:

  1. Adopt the attached Resolution expressing Official Intent to Reimburse expenditures with proceed of future debt for the FM 156 from US 81/287 to Watauga Road Water Improvements Project;

  2. Adopt the attached appropriation ordinance reducing unallocated appropriations and increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of $810,000.00 from available funds for the purpose of funding FM 156 Water Improvements Project from US 81/287 to Watauga Road; and

  3. Authorize the execution of an engineering agreement with Kimley-Horn and Associates, Inc. in the amount of $400,000.00 for design and project management services on FM 156 from US81/287 to Watauga Road Water Improvements and provide for project costs (City Project No. 101682).
 
DISCUSSION:

The Texas Department of Transportation (TXDOT) proposes to reconstruct and widen Farm-to-Market (FM) 156 (Blue Mound Road) from US 81/US287 to Watauga Road. This project has also been identified and specifically listed in Mobility 2040: The Metropolitan Transportation Plan for North Central Texas, developed by NCTCOG. Due to conflicts with the proposed roadway and drainage construction, water main relocations are necessary along the FM 156 corridor.

Kimley-Horn and Associates, Inc., proposes to provide the necessary design, project management, and construction services for a not to exceed fee of $400,000.00. Construction support services include: 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, $410,000.00 is required for project management and real property acquisition.

Engineering for FM 156 from US 81/287 to Watauga Road Water Improvements is one component of the overall project that includes project management, easement acquisition, material testing, inspection, construction and contingencies. The overall project budget is $5,751,400.00. Design is expected to start in October 2018 and be completed by September 2019. Construction is anticipated to commence January 2020 and be completed by March 2021.

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 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 CP 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.

M/WBE OFFICE: Kimley-Horn and Associates, Inc., is in compliance with the City's BDE Ordinance by committing to 29 percent SBE participation on this project. The City's SBE goal on this project is 10 percent.

This project is located in COUNCIL DISTRICTS 2 and 7.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the Water and Sewer Commercial Paper Fund for the FM 156 from US 81/287 to Watauga Road Water Improvements Project. The Water and Sewer Commercial Paper Fund includes authority of the $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $116,080,765.00. Funding for this project is depicted in the table below.

FundExisting AppropriationsAdditional AppropriationsProject Total*
Water and Sewer Commercial Paper (56014)

$0.00

$810,000.00

$810,000.00
Project Total

$0.00

$810,000.00

$810,000.00
* Numbers rounded for presentation purposes.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Chris Harder (5020)
Additional Information Contact:
John Kasavich (8480)

 
 
ATTACHMENTS
  07312018__Form 1295 Certificate 100400713.pdf
  60FM156-KHA - REIMB RESOLUTION.docx
  60FM156-KHA _56016_AO18Rev.docx
  Map - 60FM156-KHA.pdf