HomeMy WebLinkAboutResolution 3767-07-2009A Resolution
NO 3767-07 2009
STATEMENT EXPRESSING OFFICIAL INTENT
TO REIMBURSE COSTS OF NEW FIRE EQUIPMENT
WHEREAS, the City of Fort Worth, Texas (the `City") is a home-rule mumcipalrty and political
subdivision of the State of Texas, and
WHEREAS, the City desires to purchase four new General Safety Pump Truck Fire Apparatus
(the `Project") and
WHEREAS, the City expects to pay from available funds expenditures incurred m connection
with the purchase of equipment that compnses the Project pnor to the issuance of obhgahons by the
City for the financing of the Project; and
WHEREAS, the City finds, considers and declares that the reimbursement of the City for such
expenditures will be appropnate and consistent with the lawful objectives of the City and, as such,
chooses to declare its intention, m accordance with the provisions of Section 1 150-2 of the Treasury
Regulations, to reimburse itself for such payments at such time as it issues obligations to finance the
Project:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT
Section 1
The City reasonably expects rt will incur debt, as one or more senes of obligations, for the purpose of
paying the aggregate costs of the Project.
Section 2.
All costs to be reimbursed pursuant hereto are expected to be capital expenditures. No tax-exempt
obligations will be issued by the City m .furtherance of this Statement after the date of which are later
than 18 months after the later of• 1) the date the expenditures are paid, or 2) the date on which the
property with respect to which such expenditures were made, is placed m service.
Section 3
The foregoing notwithstanding, no tax-exempt obligation will be issued pursuant to the Statement more
than three years after the date any expenditure which is to be reimbursed is paid.
ORT WORT
T
RESOLUTION NO 3767 07 2009
Adopted this 21st day of July 2009
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APPfi~VED
CITY COUNCIL
JUL 2 1 2009
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City Secretary of the
City of Fort Worth, Texas
fi
pity of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: 'Approved on 7/21/2009 -Res. No. 3767-07-2009 & Ord. No. '18722-07-
2009:.......
DATE Tuesday July 21 2009 REFERENCE NO P 11008
LOG NAME 13P09-0051A
SUBJECT
Authorize the Purchase of Four New Rosenbauer General Safety Pump Truck Fire Apparatus for the Fire
Department from Emergency Vehicles of Texas Using a Cooperative Contract through Houston-Galveston
Area Council for a Total Cost of $2 399 696 00 and Adopt Appropriation Ordinance and Resolution
RECOMMENDATION
It is recommended that the City Council
1 Authorize anon-interest bearing inter-fund loan from the General Fund to the New Equipment Purchase
Fund in the amount of $2 399 696 00 for interim financing of the purchase of fire apparatus pending
issuance of debt;
2. Adopt attached supplemental appropriation ordinance increasing estimated receipts and appropriations
in the New Equipment Purchase Fund by $2 399 696 00
3 Authorize the purchase of four new Rosenbauer General Safety pump truck fire apparatus for the Fire
Department from Emergency Vehicles of Texas using a cooperative contract through Houston-Galveston
Area Council for a total cost of $2 399 696 00 with payments due 30 days after receipt of invoices and
4 Adopt the attached reimbursement resolution declaring the City's intent to use debt financing in order to
subsequently reimburse itself from the proceeds of that borrowing
DISCUSSION
The requested apparatus will be used by firefighters to transport personnel and equipment to fires
hazardous incidents and other emergency situations The Fire and Equipment Services Departments have
reviewed the pricing and find it to be competitive
This purchase cannot be delayed because the cost for repairs and maintenance of the four units to be
replaced would increase the department's maintenance budget resulting in higher operating costs. If the
purchase of the requested units does not move forward at this time a delay resulting in higher cost or
cancellation of important future replacement acquisitions may result. Reliance on any outdated apparatus
that have reached the limits of their projected operational life expectancy can cause more frequent down
time which may increase the response time to emergency calls.
Apparatus are the backbone of the Fire Department's protection delivery system There are no other
means to reduce costs based on the current mission expectations at each station in which these
apparatus will be located
State law provides that a local government purchasing an item under a cooperative purchasing agreement
Logname 13P09-0051A Page 1 of 2
satisfies state laws requiring that the local government seek competitive bids for purchase of the item
HGAC contracts have been competitively bid to increase and simplify the purchasing power of local
government entities across the State of Texas
An inter-fund loan from the General Fund to the New Equipment Purchase Fund will be used as interim
financing to purchase the fire apparatus The loan will be repaid to the General Fund from debt proceeds
issued in the summer of 2009
U S Treasury regulations and guidelines require that a governmental entity declare its intent to use debt
financing in order to subsequently reimburse itself from the proceeds of that borrowing In accordance
with this requirement, the City must adopt a resolution declaring its intent to reimburse itself from the
proceeds of the issuance of debt for the fire apparatus expenditures incurred prior to the financing
In accordance with Internal Revenue Service requirements for the issuance of debt, the attached
resolution declares the City's intent to reimburse itself for fire apparatus expenditures from the sale of
bonds
M/WBE A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing
Division and approved by the M/WBE Office because the purchase of goods is from sources where
subcontracting or supplier opportunities are negligible
FISCAL INFORMATION / CERTIFICATfON
The Financial Management Services Director certifies that upon approval of the above recommendation
and adoption of the attached supplemental appropriation ordinance funds will be available in the current
operating budget, as appropriated of the New Equipment Purchase Fund Expenditures incurred for the
purchase of fire apparatus will be reimbursed from the issuance of debt.
BQN\09-0051 A\KDK
FUND CENTERS
TO Fund/Account/Centers
G193 220001 000193036090
G193 485200 036193036090
G192 541320 036193036090
CERTIFICATIONS
FROM .Fund/Account/Centers
$2,399,696.00 GG01 136193 0000000
$2,399.696.00 G193 541320 036193036090
$2.399, 696.00
Submitted for City Manager's.Office by:
Originating Department Head.
Additional Information Contact:
Karen Montgomery (6222)
Lena Ellis (8517)
Jack Dale (8357)
Kevin Karle (8356)
$2,399,696.00
$2, 399, 696.00
Logname• 13P09-OOS1A Page 2 of 2