HomeMy WebLinkAboutResolution 5317-12-2020 A Resolution
NO. 5317-12-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE
IV 24-INCH WATER TRANSMISSION MAIN, PHASE 1B
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 Northside IV 24-Inch Water
Transmission Main, Phase 1B 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 $2,600,000.00 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 15th day of December 2020.
ATTEST: O�FORT by0
t or Ronald Y GOnZal'Os U
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B y: for Ronald P.Gonzales(Dec 18,_20201030 CST)--_—'—
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Mary J. Kayser, City Secretary ` cam
MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 12/15/20 M&C FILE NUMBER: M&C 20-0983
LOG NAME: 60NSIV24INWATERMP1 B-HALFF
SUBJECT
(CD 7)Authorize Execution of an Engineering Agreement in the Amount of$530,314.00 with Halff Associates,Inc.,for Design of the Northside IV
24-inch Water Transmission Main, Phase 1 B Project, Provide for Project Costs for a Total Project Amount of$1,965,799.00,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 Halff Associates,Inc.,in the amount of$530,314.00 for the Northside IV 24-inch Water
Transmission Main,Phase 1 B project;
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Northside IV 24-inch
Water Transmission Main,Phase 1 B 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$1,965,799.00 for the Northside IV 24-inch Water Transmission Main,Phase 1 B project(City Project No.
102687)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 Northside IV 24-
inch Water Transmission Main, Phase 1 B project from the Business US 287/Heritage Trace Parkway intersection to a location near the Business
US 287/Bonds Ranch Road intersection.
The proposed scope of services include design for the transmission main,design survey,geotechnical investigation,easement preparation,
coordination with various agencies,and cathodic protection design.
Halff Associates,Inc., proposes to provide all the necessary design services for the transmission main for a fee of$530,314.00.Staff considers
the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount,$1,435,485.00 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 Northside IV 24-inch Water Transmission Main,Phase 1 B is depicted below:
Existing Additional
Fund Project Total`
Appropriations Appropriations
W&S Commercial $0.00 $1,965,799.00$1,965,799.00
Paper-Fund 56019
Project Total $0.00 $1,965,799.00$1,965,799.00
"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.079 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.
This project includes funding identified through the CP program to be reimbursed with future revenue bonds.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 the attached resolution does not obligate the City to
sell bonds,but preserves the ability to reimburse the City from tax-exempt bond proceeds.
MM/BE OFFICE:Halff Associates, Inc.,is in compliance with the City's BDE Ordinance by committing to thirty seven percent SBE participation.
The City's SBE goal on this project is twelve percent.
The project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Unspecified-ALL FUNDS project within the W&S Commercial Paper
Fund and 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 NS IV 24"Water Main PH 1A/1 B project to support the approval of the above recommendations and execution of
the agreement. Prior to an 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: Suzy Abbe 8209