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Home My WebLink AboutResolution 5486-10-2021A Resolution NO. 5486-10-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NS IV 24" WATER MAIN PH 1A 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 NS IV 24" Water Main PH 1A 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 $5,800,000.00 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 19th day of October 2021. ATTEST: By: Ronald P. Gonzales, Acting City Secretary MAYOR AND COUNCIL COMMUNICATION MAP 60NP24INWM-KHAFUNDING-SJLOUIS III a 4lnll IIII !;IVIII ImI iPi',1'1111 1 I °I tilllll1 IIIN� VO IpVI A, Y p��1\i I,oa' id w IIIII 1'1//1 Iu 1 Ili Immo,m ow I IIII„ yh IIu a 1 �III�� I , mtllll I. 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Authorize execution of a contract with SJ Louis Construction of Texas, Ltd. in the amount of $3,940,000.43 for the Northpointe 24-inch Water Transmission Main (N4-1A) project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Northpointe 24-inch Water Transmission Main project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of $4,501,025.00 in the Northpointe 24-inch Water Transmission Main (N4-1A) project (City Project No. 103505) and decreasing appropriations in the Unspecified project (City Project No. UNSPEC) by the same amount. DISCUSSION: This Mayor and Council Communication (M&C) is to authorize a construction contract and appropriate funding for the Northpointe 24-inch Water Transmission Main (N4-1A) project. Construction of the project was advertised for bid on August 19, 2021 and August 26, 2021 in the Fort Worth Star -Telegram. On September 9, 2021, the following bids were received: Bidder I. Base Bid Contract Time Canary Construction, Inc.* �$3,467,536.00 . SJ Louis Construction of Texas, Ltd $3,940,000.431270 Days Calendar . —__..—._....__._....__ _._._-__.__....__..__......_ .__......_._ ___ .___ Circle C Construction Co. $4,707,036.00 Reyes Group Ltd._ __..__..___.._...__L$5,043,858.75 Western Municipal Construction of Texas, LLC $7,526,145.301 *Subsequent to receipt of bids, Canary Construction, Inc. contacted the City and requested to withdraw its bid due to subsequently discovered unit cost bid errors. Funding in the amount of $99,250.00 is also provided for a professional services agreement with Kimley-Hom & Associates, Inc. for construction phase services for the Northpointe 24-inch Water Transmission Main (N4-1A) project. In addition to the contract costs, $304,174.00 is required for project management, utility coordination, and material testing and $157,600.57 is provided for project contingencies. 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. Appropriations for the Northpointe 24" Water Transmission Main (N4-1A) project are as depicted below: Fund —_..._,... _._._.._ Existing Appropriations . _.__....._.__.. _._..._.._ Additional Appropriations .. Project Total* Water & Sewer Commercial Paper $0.00 $4,501,025.00 $4,501,025.00 Fund -56028 ��—T0t; *Numbers rounded for presentation purposes. This project will have no impact on the Water Department's operating budget when completed. Business Equity: GJLouis Construction ofTexas Ltd. is in compliance with City's Business Equity Ordinance by committing to 17 percent MVV8E participation on this project. The City's MWBE goal on this project is 17 percent. The project iolocated inCOUNCIL DISTRICT 7and FVVETJ. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are currently available in the UNSPEC project within the V&SCommercial Paper Fund and upon approval ofthmabovereoommondadonoandadoptionnf0`oattaxhadappruphationmd}nanoo.fundswiUbaavailabieinMheVV&GCmnmercia| Paper Fund for the NGK/24^Water Main PH1A(«orthpo(nte)project to support the approval ofthe above recommendations and execution ofthe contract. Prior to an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds. Submitted for Cdv Manoger'eOffice bv: Dana Burghdoff 8018 Ohnino1noBusiness Unit Head: Additional Information Contact: Chris Harder 5020 Suzanne Abbe 8209