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 Jenkin Heights and Meadow Lakes Sanitary Sewer Improvements Project; and
   
   
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of $4,623,068.00 for the Jenkin Heights and Meadow Lakes Sanitary Sewer Improvements Project; and
   
   
3. Authorize the execution of a contract with Mountain Cascade of Texas, LLC, in the amount of $3,996,075.00 for the Jenkin Heights and Meadow Lakes Sanitary Sewer Improvements Project (City Project No. C01829).
   

This Mayor and Council Communication provides for the construction of the sanitary sewer gravity main from Jenkin Heights Lift Station to Meadow Lakes Lift Station, the sanitary sewer force main from Meadow Lakes Lift Station to east of Boat Club Road and the decommissioning of the Jenkin Heights Lift Station.

The project was advertised for bid on December 20, 2018 and December 27, 2018 in the Fort Worth Star-Telegram. On February 7, 2019 the following bids were received:

BIDDER	AMOUNT	TIME OF COMPETION
Mountain Cascade of Texas, LLC	$3,996,075.00	365 Calendar Days
Fort Worth Civil Constructors, LLC	$5,576,410.00

In addition to the contract cost, $467,150.00 is required for project management, inspection and material testing and $159,843.00 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.

Construction of the project is anticipated to commence in May, 2019 and be completed by May, 2020. 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 the City's BDE Ordinance by committing to 14 percent MBE participation on this project. The City's MBE goal on this project is 14 percent.

The project is located in COUNCIL DISTRICT 7.