HomeMy WebLinkAboutResolution 5345-02-2021 A Resolution
NO. 5345-02-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LITTLE
FOSSIL CREEK INTERCEPTOR (M-292) IMPROVEMENTS PART 2A,
LOCATION 2
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 Little Fossil Creek Interceptor (M-292)
Improvements Part 2A, Location 2 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 $2,400,000.00 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 23`d day of February 2021.
ATTEST:
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/16/21 M&C FILE NUMBER: M&C 21-0130
LOG NAME: 60LFSIIM292P2AL2-MOUNTAINC
SUBJECT
(Haltom City Adjacent to CD 4)Authorize Execution of a Contract with Mountain Cascade of Texas,LLC,in the Amount of$1,559,450.00 for the
Little Fossil Creek Interceptor(M-292)Improvements Part 2A,Location 2,Provide for Project Costs for a Project Total in the Amount of
$1,837,913.00,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 the execution of a contract with Mountain Cascade of Texas,LLC,in the amount of$1,559,450.00 for the Little Fossil Creek
Interceptor(M-292)Improvements Part 2A,Location 2 project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Little Fossil Creek
Interceptor(M-292)Improvements Part 2A, Location 2 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$1,837,913.00 in the Little Fossil Creek Interceptor(M-292)Improvements Part 2A,Location 2 project(City
Project No.C01960)and decreasing appropriations in the Unspecified project(City Project No.UNSPEC)by the same amount.
DISCUSSION:
This project provides for the replacement of a segment of the existing Fort Worth Sanitary Sewer Main-292 beginning from a point in Haltom City
adjacent to Council District 4 located 310 feet west and 730 feet north of the Fossil Creek/Field Street intersection,then southerly 730 feet to
Fossil Drive and then easterly 1,500 feet to Kerry Lane.
The project was advertised for bid on November 12,2020,and November 19,2020,in the Fort Worth Star-Telegram.On December 10,2020,the
following bids were received.
Bidder Amount Time of
Completion
Mountain Cascade of Texas,LLC �$1,559,450.00 18 s Calendar
Y
William J.Schultz Inc.dba Circle C $1,585,660.00�
Construction
S.J.Louis Construction of Texas,Ltd $1,800,363.00
Jackson Construction, LLC $1,825,791.00�
In addition to the contract cost,$200,490.00 is required for project management, inspection,and material testing and$77,973.00 is provided for
project contingency.
This project is anticipated to be included in a future revenue bond issue for the Water&Sewer Fund.Available cash within the Water&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 the 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 for FY2020).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.
Appropriations for the Little Fossil Creek Interceptor(M-292)Improvements Part 2A,Location 2 are as depicted below.
Existing Additional
Fund Appropriations Appropriationd
Project Total'
W&S Capital Projects $145,919.00 $0.00 $145,919.00
-Fund 56002
Water Capital-Fund $14,200.00 $0.00 $14,200.00
�59601
Sewer Capital $3,874,193.00 $0.00$3,874,193.00
Legacy-Fund 59607 L�
W&S Commercial $0.00 $1,837,913.00 $1,837,913.00
Paper-Fund 56019
Project Total $4,034,312.00 $1,837,913.00$5,872,225.00
'Numbers rounded for presentation.
This project will have no impact on the Water Department's operating budget when completed.
M/WBE OFFICE:Mountain Cascade of Texas is in compliance with the City's BDE Ordinance by committing to 25 percent MBE participation on
this project.The City's MBE goal on this project is 16 percent.
This project is part of the Water Department's Sewer Overflow Initiative Program.
The project is located in HALTOM CITY ADJACENT TO COUNCIL DISTRICT 4.
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 Little Fossil Creek Intercepto 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