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HomeMy WebLinkAboutResolution 5418-06-2021 A Resolution NO. 5418-06-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE IV ELEVATED STORAGE TANK AND WATER TRANSMISSION MAIN 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 Westside IV Elevated Storage Tank and Water Transmission Main 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 22°d day of June 2021. ATTEST: O� By: 19� Mary J. Kayser, City Secretary . PEAS MAYOR AND COUNCIL COMMUNICATION MAP 60WSIV EST AND TRANSMISSION MAIN-KHA r._ JFi-20 PROPOSED MARKUM RANCH PUMP STATION (BY OTHERS) r 4Lbp D x - ° 0 I f I ' PROPOSED WATER TRANSMISSION MAIN tow PROPOSED WS IV ELEVATED STORAGE TANK FORT WORT, City of Fort Worth, Texas Mayor and Council Communication DATE: 06/22/21 M&C FILE NUMBER: M&C 21-0482 LOG NAME: 60WSIV EST AND TRANSMISSION MAIN-KHA SUBJECT (CD 3)Authorize Execution of an Engineering Agreement with Kimley-Horn and Associates, Inc. in the Amount of$1,370,265.00 for Design of the Westside IV Elevated Storage Tank and 36-inch Water Transmission Main,Provide for Project Costs for a Total Project Amount of$1,831,291.00, Adopt Attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Attached 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$1,370,265.00 for the Westside IV Elevated Storage Tank and Water Transmission Main; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside IV Elevated Storage Tank and Water Transmission Main;and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the amount of$1,831,291.00 in the Westside IV Elevated Storage Tank and Water Transmission Main project(City Project No. 103292)and decreasing appropriations in the Unspecified project(City Project No.UNSPEC)by the same amount. DISCUSSION: This Mayor and Council Communication is to authorize the preparation of plans and specifications and appropriate additional funding for the construction of Westside IV Elevated Storage Tank(EST)and 36-inch Water Transmission Main. Growth within west Fort Worth and its Extra Territorial Jurisdiction requires continuous improvements to the water distribution system in order to provide and maintain reliable water service to existing and proposed developments within the Westside pressure planes.This EST will provide additional storage capacity in the Westside IV Pressure Plane while 36-inch Water Transmission will pump/provide the needed water to the tank. The proposed scope of services include site selection and feasibility studies,field surveys,property appraisals and platting for EST site,design for the transmission main,design survey,environmental permitting,easement preparation,subsurface utility engineering,geotechnical investigation,coordination and permitting with various agencies. Kimley-Horn and Associates, Inc.proposes to provide all the necessary design and construction administration services for a fee of$1,370,265.00.Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount,$461,026.00 is required for project management, real property acquisitions and utility coordination.This project will have no impact on the Water Department Operating budget when complete. Appropriations for the Westside IV Elevated Storage Tank and 36-inch Water Transmission Main project are as depicted below: Fund Existing Additional Project Total* Appropriations Appropriations W&S Commercial $0.00 $1,831,291.00$1,831,291.00 Paper Fund 56020 Project Total $0.00 $1,831,291.00$1,831,291.00 *Numbers rounded for presentation. 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 to reimburse itself from tax-exempt bond proceeds. Business Equity: Kimley-Horn and Associates, Inc. is in compliance with the City's Business Equity Ordinance by committing to 10 percent Business Equity participation on this project.The City's Business Equity goal on this project is 10 percent. The project is located in COUNCIL DISTRICT 3. 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 ordinance,funds will be available in the W&S Commercial Paper Fund for the WSIV Elevated WST&Trans Main 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: Farida Goderya 8214 Expedited