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Home My WebLink AboutResolution 5286-10-2020 A RESOLUTION NO. 5286-10-2020 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE III 30 INCH WATER TRANSMISSION 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 30 Inch Water Transmission 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 $3,700,000.00 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 20rh day of October 2020. ATTEST: FORT TD`�OrIGtLUI r. l�(//1�r��J Q :........ By;for Ronald P.Gonzales(Oct 23,202010:11 CDT) •.0 Mary J. Kayser, City Secretary U _ �`XAS • � • Z t Iylpgq)tr Ni!4q MI rnrr��iiq uul�iri'l-f7 G_�^ - nul- - \ wr�4��?v Illrlleiti({t4 • � -• .-�r. ,rf nilriir liurl'1;,, {'RptU\lift rl � 111lKlIlUlftl!IIIE� rM� Il'y � �� '�r ti T ltlih y;=~r hr Itxr Ilul irr{. } i r� trninlnmsx _ )�i��C;=:�Mr"'1i1f111If11{Iil p z 11/� tlllltli31R4,�,ihleiriiirlll _ ■■ ��t�w �'11r1r)��iiliirlrllr{It.i a 511 IUHullr i Cab n n 01.11, MENT .. _ :r .T� luu•nag_ ..'Kitt z-- y .. 'q\\ -� Willi Iltliiilr�•T�\ii i�:. � ` 1 1 11 ii�rrll Rre�' �. \\\\\t �Irlilir�rif llrril5rif^-�-'Ml3 �' +J51y �7yj i M. T!,'.kI Imp PROPOSED WATER In iw • �,ri�+ltw�ii=r-"i !irM»rsi � �„'t!. xd�l g. 7I •O',,.+,��;�r�t rr,Ks..rJr,e fir`� i 7 ��A�'�Y�M tom♦ �iJ UMYM\1tM.r ��" / � i�y� s ira�+.i► r ►sn��.0 r.ri*1 r / • STORAGE SITE tk IY.c wr � avowFORTWORTH TIM 'HALTER DR IRA sou E o . . . .. City of Fort Worth, Texas Mayor and Council Communication DATE: 10/20/20 M&C FILE NUMBER: M&C 20-0773 LOG NAME: 60WSI[136INWATERM-KHA SUBJECT (CD 3)Authorize Execution of an Engineering Agreement in the Amount of$1,129,280.00 with Kimley-Horn and Associates, Inc.,for Design of the Westside III 36-Inch Water Transmission Main Project, Provide for Project Costs for a Total Project Amount of$2,845,105.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance RECOMMENDATION: Ir is recommended that the City Council: 1. Authorize execution of an engineering agreement with Kimley-Horn and Associates, Inc.,in the amount of$1,129,280.00 for the Westside III 36-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 36-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$2,845,105.00 for the Westside III 36-Inch Water Transmission Main project(City Project No. 102688)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount. DISCUSSION: This Mayor and Council Communication(M&C)is to authorize the preparation of plans and specifications for the construction of Westside III 36- Inch Water Transmission Main project from the Westside Water Treatment Plant to the water ground storage tank site located near Farm to Market (FM) 1187 south of Interstate Highway(IH)20. The proposed scope of services include design for the transmission main,design survey,environmental permitting,easement preparation, subsurface utility engineering,geotechnical investigation,coordination with various agencies and cathodic protection design. Kimley-Horn and Associates, Inc.,proposes to provide all the necessary design services for the transmission main for a fee of$1,129,280.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount,$1,715,825.00 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 36-Inch Water Transmission Main is depicted below: Existing Additional Fund Project Total* Appropriations Appropriations W&S Commercial Paper-Fund 56019 __$0.-- $2,845,105.00$2,845,105�00 Project Total $0.00 $2,845 105 00 $2,845,105.C! *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: Kimley-Horn and Associates, Inc., is in compliance with City's BDE Ordinance by committing to 15 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 WS Treatment Plant III 30"WTM 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: Walter Norwood 5026