This Mayor and Council Communication (M&C) is to authorize a construction contract for water, sanitary sewer and paving improvements on approximately 3.88 lane miles on the following streets:
Casa Loma Terrace
S. Cravens Road
E. Lancaster Ave.
Casa Loma Terrace
N. Dead End
S. Dead End
The Transportation and Public Works Department's share on these contract improvements will be $1,609,695.00 which is available in the Street Improvements Supplement Fund (City Project Nos. 100739, 100740, 100741 and 100743). The Water Department's share on this contract, $1,538,024.50 is available in the Water and Sewer Capital Fund of the project (City Project No. 100830).
The project was advertised for bid on July 5, 2018 and July 12, 2018 in the Fort Worth Star−Telegram. On August 16, 2018, the following bids were received:
Time of Completion
|Woody Contractors, Inc.|
365 Calendar Days
|Ark Contracting Services|
|Jackson Construction, Ltd.|
In addition to the contract amount, $547,819.00 (Water: $89,346.00; Sewer: $72,146.00; TPW: $386,327.00) is required for project management, material testing and inspection and $157,387.00 (Water: $42,546.00; Sewer: $34,356.00; TPW: $80,485.00) is provided for project contingencies.
This project will have no impact on the Transportation and Public Works annual operation budget nor on the Water Department's operating budget when completed. Construction is expected to start in November 2018.
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 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.
M/WBE OFFICE – Woody Contractors, Inc. is in compliance with the City's BDE Ordinance by committing to 2% MBE participation and documenting good faith effort. Woody Contractors, Inc. identified several subcontracting opportunities. However, the firms contracted in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 25%.
The project is located in COUNCIL DISTRICT 5.