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HomeMy WebLinkAboutResolution 5364-03-2021A Resolution NO. 5364-03-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE TRINITY BOULEVARD 36-INCH WATER MAIN RELOCATION PHASES 1 AND 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 Trinity Boulevard 36-Inch Water Main Relocation Phases l and 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 $500,000.00 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 23rd day of March 202 l. ATTEST: Mary J. Kayser, City Secretary MAYOR AND COUNCIL COMMUNICATION MAP 60T361NWLP1 P2-KHA N + City of Fort Worth, Texas Mayor and Council Communication DATE: 03/23/21 LOG NAME: 60T361NWLP1 P2-KHA SUBJECT M&C FILE NUMBER: M&C 21-0218 (CD 5) Authorize Execution of an Engineering Agreement in the Amount of $262 ,380.00 with Kimley-Horn and Associates, Inc., for Design of the Trinity Boulevard 36-lnch Water Main Relocation , Phases 1 and 2 Project, Provide for Project Costs for a Total Project Amount of $381 ,755.00 , 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 Kimley-Horn and Associates, Inc ., in the amount of $262 ,380 .00 for the Trinity Boulevard 36-inch Water Main Relocation Phases 1 and 2 project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Trinity Boulevard 36- inch Water Main Relocation Phases 1 and 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 $381 ,755 .00 for the Trinity Boulevard 36-inch Water Main Relocation Phases 1 and 2 project (City Project No. 102101) and decreasing appropriations in the Unspecified project (City Project No. UN SPEC) 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 Trinity Boulevard 36-inch Water Main Relocation Phases 1 and 2 project from Interstate Highway {IH) 820 to Salado Trail and from Salado Trail to Thomas Trail to facilitate the reconstruction of Trin ity Boulevard within the identified limits to a four-lane divided concrete thoroughfare. The proposed scope of services include design for the transmission main , subsurface utility engineering, geotechnical investigation and cathodic protection design . Kimley-Horn and Associates , Inc., proposes to provide all the necessary des ign services for the transmission main for a fee of $262,380.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $119 ,375 .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 Trinity Boulevard 36-inch Water Main Relocation Phases 1 and 2 is depicted below: Fund General Capital Projects -Fund 30100 W&S Commercial Paper -Fund 56019 !Project Total I Existing ~ppropriations 1 $290 .000 .001 I $0.00/1 II $290,000 .00II Additional Appropriations $0.00 $290,000 .00 $381,755 .00 ,$381 ,755 .00 $381,755 .oo ll$671.755.oo l *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. 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. Under federal law, debt must be issued within approximately three years in order for these expenses to be reimbursable . Adoption of the attached resolution does not obligate the City to sell bonds , but preserves the ability of the City to reimburse itself from tax-exempt bond proceeds . M/WBE OFFICE : Kimley-Horn and Associates, Inc., is in compliance with City's BOE Ordinance by committing to eight percent business equity participation on this project. The C ity's business goal on this project is eight percent. The project is located in COUNCIL DISTRICT 5. FISCAL INFORMATION/ CERTIFICATION: The Director of Finance certifies that funds are currently available in the UNSPEC project within the W&S Commercial Paper Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinan ce , funds will be available in the W&S Commercial Pape r Fund for the Trinity Blvd. -820 -Salado Ph1 project to support the approval of the above recommendations and execution of the engineering 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: Suby Varughese 7803 Expedited