On June 20, 2017 (M&C-28285), the City Council authorized an Engineering Agreement in the amount of $541,500.00 with Kimley-Horn and Associates, Inc., for North Tarrant Express Segment 4, IH-820 from Randol Mill Road to North of Interchange with SH 121/SH 183. The IH-820 corridor has been organized into segments. This segment 4, is being designed and constructed by TXDOT under the traditional design, bid, build method. The agreement was subsequently revised by Amendment No. 1 in the amount of $17,000.00 administratively authorized on January 10, 2018. Amendment No. 2 will provide construction services for a not to exceed fee of $280,000.00. Construction support services includes attending 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, $260,000.00 ($130,000.00 water, $130,000.000 sewer) is required for project management 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. Construction is anticipated to be completed by January 2023. This project will have no impact on the Water Department's operating budget when complete. MWBE OFFICE: Kimley-Horn and Associates, Inc. agrees to maintain its initial SBE commitment of 15 percent that it made on the original Agreement and extend and maintain that same SBE commitment of 15 percent to all prior amendments up to and inclusive of the Amendment No. 2. Therefore, Kimley-Horn and Associates, Inc., remains in compliance with the City's BDE Ordinance and attests to its commitment by its signature on the Acceptance of Previous SBE Commitment Form executed by an authorized representative of its company. 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 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 FY2018-2022 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 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.
This project is located in COUNCIL DISTRICTS 2, 8 and 9.
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