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Home My WebLink AboutResolution 5535-02-2022 A Resolution NO. 5535-02-2022 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE III GROUND STORAGE TANK AND WESTSIDE IV AND V PUMP STATIONS 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 III Ground Storage Tank and Westside IV and V Pump Stations 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 $26,500,000.00 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 22"d day of February 2022. �44vn�n�� .dpt FORT "�a .O `00041 o oo p° ATTEST: p °a °o0�d ° P~° �7G1l1!'12��2 cS GDOGj�LG o. ° _a By: Jannette S.Goodall(Feb 23,202214:33 CST) �a� °oO0000000° *1 �atl ex Jannette Jannette S. Goodall, City Secretary ■ Ii��/IIII/INgiili�i.111 s !�111 IIIIII%1111/11 i1111-v 1111 11111: ��chi i � � , 1 = 5_��nnminnm►��y f ____ .nnmmnuml i!�� eunnumi ' _:nnnnnm numm�o i • ■ 1 • ■ ■ 'lllllllllllllllllllllllll lllllllllllllllll►l�,:1�11�111111111011111l1 � J I ' - �nnm_ ■ eAnn -M all o ■CIIi=_ JIM -pgP 1- =Il In-- � -►II/I ■CCU ' =■ == -�/I=1111111111111111\�_ - -��1111111111111 1 _ ��e.11lllllllllll- =im ��:��11111111111111- = 1111 \I1111111\�`�11111111111111 - ■ =,�I I�I I ii11111111111111� =�j�� ®I11■��I111111111111= _��\IIIIIIIIII= a•'•- _ ___ _.\\11111=_ III■IIIIIIIIIIII 1 ■�1'' =■Ili� - _-____�---11■111111111 ..inmm�- IIIIII Es ga: Omn� ?nnnnnm mnn°u�711111 pnn j�/I♦�♦G��♦�- =___® •11, Alili IIIIIP®Ir nnnmllllll=i P�=o= � :,gip: �nnnmm�.►I/1�-- S �p�� o mnmm�nl►+.�756 I �„Q�O�� =1111111111111111►��Q�j 111111111111=___=.e ♦ ME ■111.milli 1..= m m■ ■ MEN ■-� ■gip�i■ ■ ■i • fin:■■ ■ •- � ' �C�= :■ill.�i ■ ♦♦ • C■i ��i ;Apr j1�■■■ � � ♦♦an► . ninn VIA ..•6 :: p �i 1ir�� I • • 1 1 ■ ■ ' �• ��,111�'ili�■ 1�11 r � � � �� ■ill■ 00- -. ■ o s / 1 0 - ■ �. �i q City of Fort Worth, Texas Mayor and Council Communication DATE: 02/22/22 M&C FILE NUMBER: M&C 22-0130 LOG NAME: 60WSIIIGST&WSIVWSVPS-CRESCENT&KHA SUBJECT (CD 3)Authorize Execution of Amendment No. 1 in the Amount of$297,400.00 to an Engineering Agreement with Kimley-Horn Associates, Inc., for Westside III Ground Storage Tank and West IV and V Pump Station(Markum Ranch Pump Station and Ground Storage Tank),Authorize Execution of a Contract with Crescent Constructors, Inc. in the Amount of$20,993,000.00 for Westside III Ground Storage Tank and West IV and V Pump Station (Markum Ranch Pump Station and Ground Storage Tank), Provide for Project Costs for Total Project Costs in the Amount of $22,097,691.00,Appropriate this Funding as a Portion of Water's Contribution to the Fiscal Years 2022-2026 Capital Improvement Program, 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 the execution of Amendment No. 1 to City Secretary Contract No.55295 in the amount of$297,400.00, an Engineering Agreement with Kimley-Horn Associates, Inc.,for construction support services for Westside III Ground Storage Tank and West IV and V Pump Station (Markum Ranch Pump Station and Ground Storage Tank)project for a revised contract amount of$1,540,204.00; 2. Authorize execution of a contract with Crescent Constructors, Inc. in the amount of$20,993,000.00 for the Westside III Ground Storage Tank and West IV and V Pump Station(Markum Ranch Pump Station and Ground Storage Tank)project; 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside III Ground Storage Tank and West IV and V Pump Station (Markum Ranch Pump Station and Ground Storage Tank)project; 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer commercial Paper Fund by increasing appropriations in the amount of$22,097,691.00 in the Westside III Ground Storage Tank and West IV and V Pump Station(Markum Ranch Pump Station and Ground Storage Tank) project(City Project No. 103010)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount;and 5. Appropriate this Project as a Portion of Water's Contribution to the Fiscal Years 2022-2026 Capital Improvement Program. DISCUSSION: On January 12,2021 Mayor and Council Communication(M&C)21-0058,the City Council authorized an engineering agreement with Kimley-Horn Associates, Inc., (City Secretary Contract No.55295), in the amount of$1,242,804.00 to evaluate and design the Westside III Ground Storage Tank and West IV and V Pump Station(Markum Ranch Pump Station and Ground Storage Tank). As part of Amendment No. 1,the Engineer will perform construction inspection, observation and necessary support services for construction of Markum Ranch Pump Station and Ground Storage Tank project that includes site and contractor work observation, pay application review and recommendation, City and Contractor coordination, and punch list walk through. Construction of the project was advertised for bid on December 9 and 16,2021, in the Fort Worth Star-Telegram.On January 13,2022,the following bids were received: Bidder Base Bid 11 Contract Time Crescent Constructors, Inc. $20,993,000.00 64 Ys Calendar IDaEagle Contracting, LP 11$22,386,000.00 Archer Western Construction, $22,658,975.00 LLC Bar Contractors, Inc. 11$22,804,500.0011 Felix Construction11$23,070,000.0011 Gracon Construction, Inc. $26,698,000.00 In addition to the contract cost,$387,431.00 is required for project management and inspection and$419,860.00 is provided for project contingency. This project will have no impact on the Water Department's operating budget when complete. 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. It is the practice of the Water Department to appropriate its CIP plan throughout the fiscal year as projects commence,additional funding needs are identified,and to comply with bond covenants. LaN pital FY2022 CIP Budget Change Revised und Project Name Appropriations Authority Increase/Decrease) FY2022 Budget me 56020- 103010-WS III GST W&S &WS IV/V Pump $ - This m&c $22,097,691.00 $22,097,691.00 Commercial Sta Paper Funding for the WS III GST&WS IV/V Pump Station project is depicted below: Existing Additional FUND Project Total'` Appropriations Appropriations Water Impact Fee- 1,556,929.00 $0.00 $1,556,929.00 Fund 56003 W&S Commercial Paper Fund $0.00 $22,097,691.00 $22,097,691.00 56020 Project Total $1,556,929.00 $22,097,691.00 $23,654,620.00 *Numbers rounded for presentation purposes. Business Equity-Crescent Constructors, Inc. is in compliance with City's Business Equity Ordinance by committing to eight percent Business Equity participation on this project. The City's Business Equity goal on this project is seven percent. Business Equity-Kimley-Horn Associates, Inc.submitted a Prime Waiver form and will"self-perform"the work and will be accountable for performing 100 percent of the work and cannot sub any of the work described in this amendment. 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 WS III GST&WS IV/V Pump Sta project to support the execution of the amendment to the engineering contract and the construction contract. 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