HomeMy WebLinkAboutResolution 5316-12-2020 A Resolution
NO. 5316-12-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH
HOLLY WATER TREATMENT PLANT SEDIMENTATION BASIN SLUDGE
REMOVAL SYSTEM REPLACEMENT
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 North Holly Water Treatment Plant
Sedimentation Basin Sludge Removal System Replacement 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 $212,000.00 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:
for Ronald P. Gonzales
B Y. for Ronald P.Gonzales(Dec 18,202010:28 CST) •'.O_
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Mary J. Kayser, City Secretary U? ?2
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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 20-0982
LOG NAME: 60NHWTPSBSRC03-BARCON
SUBJECT
(CD 9)Authorize Execution of Change Order No.3 in the Amount of$162,698.57 and the Addition of 150 Calendar Days to the Contract with Bar
Constructors,Inc.,for North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement for a Revised Contract
Amount of$7,712,290.86,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of Change Order No.3 in the amount of$162,698.57 and the addition of 150 calendar days to City Secretary No.52222
with Bar Constructors, Inc.,for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project for
a revised contract amount of$7,712,290.86.(City Project No.CO2328);
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the North Holly Water
Treatment Plant Sedimentation Basin Sludge Removal System Replacement 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$162,699.00 for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System
Replacement project(City Project No.CO2328)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)
DISCUSSION:
On April 9,2019(M&C C-29090),the City Council authorized a contract in the amount of$7,528,000.00 with Bar Constructors, Inc.,for the North
Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project.The contract was subsequently revised by
Change Order No. 1 in the amount of$10,762.50 administratively authorized February 14,2020 that provided revised mechanical drawings to
reflect actual field measurements of the sedimentation basins and Change Order No.2 in the amount of$10,829.79 administratively authorized
March 19,2020 that provided for six plug valves in the sludge valve vault.
Change Order No.3 will provide for the replacement of the six existing deteriorated gate valves located in sedimentation basins 5,6 and 7 at the
plant.Staff considers the proposed fee to be fair and reasonable for the scope of services proposed.
Funding for the North Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project as depicted below:
Existing Additional
Fund Appropriations Appropriations Project Total*
W&S Capital Project $786,000.00 $0.00 $786,000.00
2018-Fund 56014
W&S Bond 2020A- $8,307,069.00 $0.00$8,307,069.00
Fund 56017
W&S Commercial $0.00 $162,699.00 $162,699.00
Paper-Fund 56019 11
Project Total $9,093,069.00 $162,699.00$9,255,768.00
*Numbers rounded for presentation.
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 0.79 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 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 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.
A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the OBD,in accordance with
the MWBE or BDE Ordinance,because the purchase of goods or services is from sources where subcontracting or supplier opportunities are
negligible.
The project is located in COUNCIL DISTRICT 9.
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 North Holly Sedimentation Basi 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: Dena Johnson 7866