HomeMy WebLinkAboutResolution 5495-11-2021A Resolution
NO. 5495-11-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTH
HOLLY WATER TREATMENT PLANT FILTER MODIFICATION
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 Plant
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 $2,100,000.00 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 9th day of November 2021.
ATTEST:
Ronald P. Gonzales, Acting City Secretary
MAYOR AND COUNCIL COMMUNICATION MAP
60NHWTPFILTER-BAR
LANCASTER'AVE
FORT WORTH
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/09/21
LOG NAME: 60NHWTPFILTER-BAR
SUBJECT
M&C FILE NUMBER: M&C 21-0869
(CD 9) Authorize Execution of a Contract with BAR Constructors, Inc. in the Amount of $1,404,150.00 for the North Holly Water Treatment Plant
Filters Modification Project, Provide for Project Costs for a Project Total in the Amount of $1,610,736.00, 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 a contract with BAR Constructors, Inc., in the amount of $1,404,150.00, for the North Holly Water Treatment Plant
Filters Modification project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for North Holly Water
Treatment Plant Filters Modification project; and
3. Adopt the attached appropriation ordinance adjusting receipts and appropriations in the Water & Sewer Commercial Paper Fund by
increasing appropriations in the amount of $1,610,736.00 for North Holly Water Treatment Plant Filters Modification project (City Project
No.103049) 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 with BAR Constructors, Inc. and appropriate funding for
North Holly Water Treatment Plant Filters Modification project.
The project was advertised for bid on July 29, 2021 and August 6, 2021 in the Fort Worth Star -Telegram, On August 26, 2021 the following bids
were received:
Bidder
BAR Constructors, Inc.
Archer Western Construction, LLC
Base Bid I
$1,404,150.001
$1, 724,000.00!
Contract Time
200 Calendar Days
In addition to the contract cost, $136,378.00 is required for project management and inspections and $70,208.00 is provided for project
contingency.
Funding for the North Holly Water Treatment Plant Filters Modification project are as depicted below.
Fund
Existing
Appropriations
Existing
Appropriations
Project Total*
W&S Commercial
Paper - Fund 56019
W&S Commercial !�
$138,999.00
$0.00,
$138,999.00
Paper - Fund 56020
$0.00
$138,999.00
$1,610,736.00
$1,610,736.00'$1,749,735.00
$1,610,736.00
Project Total
*Numbers rounded for presentation purposes.
This project is anticipated to be included in a future revenue bond issue for the Water and 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.
Business Equity: BAR Constructors, Inc. a certified Business Equity Firm, is in compliance with the City's Business Equity Ordinance by counting
62 percent of its self -performance services towards meeting the Business Equity goal on this project. The City's Business Equity goal on this
project is five percent.
The project is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Unspecified -All Funds 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 NHWTP Filter Modification project to support the approval of the above recommendation and execution of the
agreement. Prior to any expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for Citv Manaaer's Office bv: Dana Burghdoff 8018
Oriainatina Business Unit Head:
Chris Harder 5020
Additional Information Contact: Dena Johnson 7866