|Official site of the City of Fort Worth, Texas|
|City Council Agenda|
|COUNCIL ACTION: Approved on 12/11/2018 - Ordinance No. 23521-12-2018 & Resolution No. 5009-12-2018|
|DATE:||12/11/2018||REFERENCE NO.:||C-28981||LOG NAME:||20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD.|
|SUBJECT:||Authorize Execution of Contract with Jackson Construction Ltd, in the Amount of $6,171,356.00 for FY 16 Round 2 of the Council District 9 Street Repair and Reconstruction Program and Near Southside Medical District Water and Sanitary Sewer Main Improvements on Various Streets, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 8 and 9)|
It is recommended that the City Council:
On August 5, 2014, (M&C C-26906) the City Council authorized a Resolution executing a funding agreement with Fort Worth South, Inc., in the amount of $10,000,000.00 for Council District 9 Street Repair and Reconstruction Program. The Program leveraged funding in an amount up to $5,000,000.00 from the Tax Increment Reinvestment Zone No. 4 (Southside TIF) over four years. The City of Fort Worth matched the funds in an amount up to $1,000,000.00 using 2014 Bond Program-Street Improvements Funds and 2014 Bond Program-Grant Matches Funds in an amount up to $4,000,000.00. Construction of Round 1 of the project has been completed.
This Mayor and Council Communication is to authorize a construction contract for Round 2 of the Council District 9 Street Repair and Reconstruction Program and Near Southside Medical District Water and Sanitary Sewer Main Improvements on the following streets:
The Transportation and Public Works Department's share on this contract is $2,618,148.25 which is available in the 2014 Bond Program Fund and the Specially Funded Projects Fund of the project (City Project No. C02387). The Water Department's share on this contract of $3,553,207.75 will be available in the Water and Sewer Commercial Paper Fund of the project (City Project No. C02445).
The project was advertised for bids August 30, 2018 and September 6, 2018 in the Fort Worth Star-Telegram. On October 18, 2018, the following bids were received:
In addition to the contract cost $821,954.00 (Water: $399,437.00; Sewer: $58,267.00; TPW $364,250.00) is required for project management, inspection and material testing and $308,567.00 (Water: $156,522.00; Sewer: $21,138.00; TPW: $130,907.00) 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 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.
Upon completion of this capital project, it is anticipated that there will be no impact on Transportation and Public Works annual operation budget and no impact to the Water Department's operating budget. Construction is expected to start in February 2019 and be completed by April 2020.
M/WBE OFFICE: Jackson Construction Ltd, is in compliance with the City's BDE Ordinance by committing to 0% MBE participation and documenting good faith effort. Jackson Construction, Ltd. identified several subcontracting and supplier opportunities. However, the firms contacted 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 DISTRICTS 8 and 9.
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 current capital budget, as appropriated, of the 2014 Bond Program Fund, the Specially Funded Projects Fund, and the Water and Sewer Commercial Paper Fund. The Water and Sewer Commercial Paper Fund includes authority of $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $101,233,960.00.
|Submitted for City Manager's Office by:||
|Originating Department Head:||
|Additional Information Contact:||
|20FORT WORTH SOUTH FY16-CD9 JACKSON CONSTRUCTION LTD_56016_AO19r.docx|
|20FORTWORTHSOUTHFY16-CD9-JACKSON- REIMB RESOLUTION.docx|
|Form 1295 Jackson Const. FY 16-CD9 2018-424919_Redacted.pdf|
|Map FW South FY16-CD9 .pdf|