HomeMy WebLinkAboutResolution 5315-12-2020 A Resolution
NO. 5315-12-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH
HOLLY WATER TREATMENT PLAN FILTER MODICIFACTION
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 Plan
Filter Modification 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 $181,000.00 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.
OF�FOR),
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ATTEST: •,O
for-Ronald P. Gonzales _
B y• for Ronald P.Gonzales(Dec 18,202010:28 CST) •�, .�'1
Mary J. Kayser, City Secretary 1f
MAYOR AND COUNCIL COMMUNICATION MAP
60NHWTP Filter Modifications Project
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Copyright 2020 City of Fort Worth.Unauthorized reproduction is a violation of applicable laws.
This product is for information purposes and may not have been prepared for or be suitable for legal,
engineering,or surveying purposes. It does not represent an on-the-ground survey and represents CITY PROJECT # 103049
only the approximate relative location of property boundaries. The City of Fort Worth assumes no
responsibility for the accuracy of said data.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/15/20 MSC FILE NUMBER: M&C 20-0981
LOG NAME: 60NHWTP FILTER MODIFICATIONS
SUBJECT
(CD 9)Authorize Execution of an Engineering Agreement with Freese and Nichols,Inc.in the Amount of$138,999.00 to Provide the Necessary
Design, Bid and Construction Services for the North Holly Water Treatment Plant Filters Modifications Project,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 the execution of an engineering agreement with Freese and Nichols, Inc.in the amount of$138,999.00 to provide the necessary
design,bid and construction services for the North Holly Water Treatment Plant Filters Modifications project;
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the North Holly Water
Treatment Plant Filters Modifications 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$138,999.00 for the North Holly Water Treatment Plant Filters Modifications project(City Project No. 103049)
and decreasing appropriations in the Unspecified project(City Project No.UNSPEC)by the same amount.
DISCUSSION:
The North Holly Water Treatment Plant is a conventional sedimentation/filtration facility with a design treatment capacity of 80 million gallons per
day(MGD).The granular filters were installed in 2001 as part of a plant expansion,and are a critical treatment component of the plant process.As
part of this work,the Engineer will evaluate the performance of the filters,make recommendations on performance improvements,which will be
incorporated into engineering plans and specifications in order to be constructed.
Appropriations for project funded as depicted below:
Existing Additional
FUND Project Total
_7Appropriations Appropriations
W&S Commercial $0.00 $138,999.00$138,999.00
Paper-Fund 56019
Project Total I $0.00il $138,999.00$138,999.00
'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 2021-2025 Five-Year Capital Improvement Program on September 22,2020.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/ BE OFFICE- 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.
This project is located in CITY COUNCIL DISTRICT 9.
FISCAL INFORMATION I 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 NHWTP Filter Modification 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: Samuel Loubriel 5935