HomeMy WebLinkAboutResolution 5186-02-2020 A Resolution
NO. 5186-02-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR WESTSIDE TANK
AND TRANS MAIN
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the Westside Tank and Trans Main Project
(the "Project") prior to the issuance of obligations by the City in connection with the
financing of the Project from available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and,
as such, chooses to declare its intention, in 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 debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $1,000,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is 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 in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
F FORT
Adopted this 18th day of February 2020. O.
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Mary J. Kayser, Cify Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/18/20 M&C FILE NUMBER: M&C 20-0101
LOG NAME: 60WSTLEACQU
SUBJECT
Approve Settlement of Lawsuit Entitled City of Fort Worth v.The George Beggs Trust,J.E. Beggs,Trustee et al.,Cause No.CIVA8-0577 for
$1,250,000.00 and Adopt Appropriation Ordinance in the Amount of$700,000.00 for the Westside V Elevated Storage Tank and Water Main
Project(ETJ NEAR COUNCIL DISTRICT 3)
RECOMMENDATION:
Is is recommended that the City Council:
1. Approve the settlement of all claims arising from the eminent domain lawsuit the City filed to acquire property interest for the Westside V
Eelevated Storage Tank and Water Main Project(City Project No. 100378)under cause number CIVA8-0577;
2. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with proceeds of Future Debt for the Westside V
Elevated Storage Tank and Water Transmission Main;and
3. Authorize the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Commercial
Paper Fund in the amount of$700,000.00,from available funds,for the Westside V Elevated Storage Tank and Water Transmission Main
Project.
DISCUSSION:
On June 21,2016(M&C C-27784)the City Council authorized an engineering agreement for the Westside V Elevated Storage Tank and Water
Transmission Main Project.This elevated tank and transmission main will provide water service to the Westside V pressure plane,which includes
the Morningstar and Walsh Ranch developments.Acquisition of land for the elevated storage tank and water transmission mains is necessary prior
to going to construction.
On June 26,2018(M&C L-16128),City Council authorized the condemnation for a tank site,a permanent water line easement,permanent access
easement,and temporary construction easements necessary to install and maintain a 1 million gallon elevated storage tank and water
transmission line.The condemnation hearing for this project occurred on October 24,2018.Pursuant to the award of the Special Commissioners,
the City deposited$255,032.00 into the registry of the Court.A writ of possession was issued on December 17,2018,which allowed the City to
move forward with the construction of the elevated tank and water transmission main.The property owner challenged the award of the Special
Commissioners.On January 17,2020,after negotiation and mediation,the parties agreed to settle the lawsuit for payment by the City of an
additional$994,032.00,with each party paying its own court costs and attorney's fees.
On January 29,2019(M&C C-29014 and C-29015)the City Council authorized construction contracts for the water transmission main and
elevated tank,respectively.
M&C G-19238,adopted by City Council on March 6,2018,appropriated$600,000.00 for the fee simple and easement acquisitions for the
construction of the Westside V Elevated Storage Tank and Transmission Main.This M&C requests an additional$650,000.00 in appropriations
for the land and easement purchase,as well as$50,000.00 to fund project land acquisition services.
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 2020-2024 Five Year Capital Improvement Plan on September 17,2019.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.
Funding for the Westside V Elevated Storage Tank and Water Transmission Main is as depicted in the table below:
Fund Existing IlAdditiongl Project Total*
�AppropriationsJLAppropnations
Water&Sewer
Bond2017A Fund- $893,100.00 $0.00 $893,100.00
56011
W&S Capital Project $600,000.00 $0.00 $600,000.00
2018 Fund-56014
Water&Sewer
Commercial Paper $6,456,974.00 $0.00 $6,456,974.00
Fund 56016
Water&Sewer
Commercial Paper $0.00 $700,000.00 $700,000.00
56017
Project Total $7,950,074.00 $700,000.00 $8,650,074.00
*Numbers rounded for presentation purposes.
The project is located in COUNCIL DISTRICT 3 and City's Extra Territorial Jurisdiction.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
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 Water&Sewer Commercial Paper Fund(W&S Commercial Paper)for Westside V Elevated Storage Tank and Water
Transmission Main Project.Prior to any expenditure being incurred,the Water Department has the responsibility to validate the availability of
funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Rakesh Chaubey 6051