HomeMy WebLinkAboutResolution 5285-10-2020 A RESOLUTION NO. 5285-10-2020
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE III
16" WATER 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 III 16" Water 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 $2,500,000.00 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.
Adopted this 20TH day of October 2020.
ATTEST: OF FOIQr�
By:)for Ronald P.Gonzales(Oct 23,202010:11 CDT)
Mary J. Kayser, City Secretary
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FORTWORTH
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/20/20 M&C FILE NUMBER: M&C 20-0772
LOG NAME: 60WS11124INWATERM-TNP
SUBJECT
(CD 3)Authorize Execution of an Engineering Agreement in the Amount of$485,286.00 with Teague Nall and Perkins,Inc.,for Design of the
Westside III 24-Inch Water Transmission Main Project,Provide for Project Costs for a Total Project Amount of$1,892,373.00,Adopt Resolution
Expressing Official Intent to Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an engineering agreement with Teague Nall and Perkins,Inc.,in the amount of$485,286.00 for the Westside III 24-
Inch Water Transmission Main Project;
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Westside III 24-Inch
Water Transmission Main Project;and
3. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water and Sewer Commercial Paper fund by increasing
appropriations in the amount of$1,892,373.00 for the Westside III 24-Inch Water Transmission Main project(City Project No. 102689)and
decreasing appropriations in the Unspecified Project(City Project No. UNSPEC)by the same amount.
DISCUSSION:
This Mayor and Council Communication is to authorize the preparation of plans and specifications for the construction of the Westside III 24-Inch
Water Transmission Main Project from the intersection of Chapin School Road and I.H.20 westerly 11,000 feet to a water ground storage tank site.
The proposed scope of services include design for the transmission main,design survey,environmental permitting,easement preparation,
subsurface utility engineering,coordination with various agencies and cathodic protection design.
Teague Nall and Perkins, Inc.,proposes to provide all the necessary design services for the transmission main for a fee of$485,286.00.Staff
considers the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount,$1,407,087.00 is required for project management,real property acquisition,public outreach and material
testing.
This project will have no impact on the Water Department operating budget when complete.
Funding for Westside III 24-inch Water Transmission Main is depicted below:
Existing Additional
Fund7 Appropriations Appropriations Project Total
W&S Commercial $0.00 $1,892,373.00 $1,892,373.00
Paper-Fund 56019
Project Total $0.00 �$1,892,373.00 $1,892,373.00
'Numbers rounded for presentation purposes.
This project is anticipated to be included in a future revenue bond issue for the Water&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&Sewer fund will be charged interest that is equivalent to the overall rate of return being earned by the City
portfolio(currently approximately 2.3 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 approved the Water Department's Fiscal Year 2020-2024 Five-Year Capital Improvement Plan on September 17,2019.This City
Council approved 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:Teague Nall and Perkins, Inc.,is in compliance with City's BDE Ordinance by committing to 13 percent SBE participation.The
City's SBE goal on this project is 12 percent.
The project is located in COUNCIL DISTRICT 3.
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 W&S Commercial Paper Fund for the Westside III 24-inch Water Transmission Main Project.Prior to any expenditure being
incurred,the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Leon Wilson 2387