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HomeMy WebLinkAboutResolution 5534-02-2022 A Resolution NO. 5534-02-2022 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE V 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 V 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 $9,632,000.00 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 22nd day of February 2022. ATTEST: �oF Von), °0 �7G1l1!'IG��2 cS, GDOG��LG v u o o= By: Jannette S.Goodall(Feb 23,202214:33 CST) 0, 0 J o °oF2,000 000 000° p Jannette S. Goodall, City Secretary ��tt�E 1 = $ R a L 2t� _ 1 i `C i - • t lnmil AQ rs zz '© FUTURE WATEFUTURE �'_ JPP44ff ■ • 1TER ION MAIN, .t:, F r� Lbw..,. '-- -- s... , • tv j 4 f City of Fort Worth, Texas Mayor and Council Communication DATE: 02/22/22 M&C FILE NUMBER: M&C 22-0128 LOG NAME: 60SWSEST-HALFF-LANDMARKS SUBJECT (CD 3)Authorize Execution of Amendment No. 1 to an Engineering Agreement with Halff Associates, Inc., in the Amount of$163,497.00,for South Westside V Elevated Storage Tank and Water Transmission Main,Authorize Execution of a Contract with Landmark Structures I, L.P., in the Amount of$7,360,000.00 for South Westside V Elevated Storage Tank, Provide for Project Costs for a Project Total in the Amount of $8,026,786.00,to Appropriate this Project as a Portion of Water's Contribution to the Fiscal Years 2022-2026 Capital Improvement Program, Adopt 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 Amendment No. 1, in the amount of$163,497.00,to City Secretary Contract No.56094, an engineering agreement with Halff Associates, Inc.for construction support services for South Westside V Elevated Storage Tank and Water Transmission Main project for a revised contract amount of$1,455,335.00; 2. Authorize the execution of a contract with Landmark Structures I, L.P., in the amount of$7,360,000.00 for the South Westside V Part 1-1.5 Million Gallon Elevated Water Storage Tank Project; 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for South Westside V Part 1-1.5 Million Gallon Elevated Water Storage Tank project; 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water&Sewer Commercial Paper Fund by increasing appropriations in the amount of$8,026,786.00 for South Westside V Part 1- 1.5 Million Gallon Elevated Water Storage Tank(City Project No.103428)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 June 22, 2021, Mayor and Council Communication(M&C)21-0474 authorized an engineering agreement with Halff Associates, Inc., (City Secretary Contract No. 56094), in the amount of$1,291,838.00 for design of the South Westside V Elevated Storage Tank and Water Transmission Main.As part of Amendment No. 1,the engineer will perform construction support services for construction of the lift station that includes shop drawings and submittals reviews, change order review, record drawings, update plant operational manual, prepare and submit floodplain letter of map revision, prepare and submit levee certification report. This M&C will also authorize a construction contract with Landmark Structures I, L.P.and appropriate funding for the South Westside V Part 1-1.5 Million Gallon Elevated Water Storage Tank. Growth within west Fort Worth and its Extra Territorial Jurisdiction (ETJ)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.The elevated storage tank will be served by a future water transmission main that will be connected to a future pump station. The project was advertised for bid on November 4, 2021 and November 11, 2021 in the Fort Worth Star-Telegram. On December 2, 2021 the following bid was received: BIDDER AMOUNT 11 TIME OF COMPLETION Landmark Structures I, L.P. $7,360,000.00 11420 Calendar Days In addition to the contract cost,$282,489.00 is required for Project Management, inspection and material testing and$220,800.00 is provided for project contingency. 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. Capital Project FA 022 CIPFuthodt]yBudget ChangeFFY2 evised Fund Name opriations (Increase/Decrease) 22 Budget Name 56020- 103428-WS I �� W&S V EST and $ _ This m&c $8,026,786.00 $8,026,786.00 Commercial TransmissionIL Paper Main Funding for the South Westside V Elevated Storage Tank and Water Transmission Main are as depicted below: Fund Existing Additional project Total* Appropriations Appropriations W&S Commercial $1 698,798.00 $8,026,786.00 $9,725,584.00 Paper Fund 56020 Project Total $1,698,798.00 $8,026,786.00 $9,725,584.00 *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 to reimburse itself from tax-exempt bond proceeds. Business Equity: Halff Associates, Inc. agrees to maintain its initial M/WBE commitment of 10 percent that it made on the original agreement and extend and maintain that same MM/BE commitment of 10 percent to its first amendment.Therefore Halff Associates, Inc. remains in compliance with City's M/WBE Ordinance and attests to its commitment by its signature on the Acceptance of Previous M/WBE Commitment form executed by an authorized representative of its company. Business Equity: Landmark Structures I, L.P., is in compliance with the City's Business Equity Ordinance by committing to 20.90 percent Business Equity participation on this project.The City's Business Equity goal on this project is 20 percent. The project is located in COUNCIL DISTRICT 3 and the City's Extra-Territorial Jurisdiction. 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 WS V EST and Transmission Main project to support the approval of the above recommendations and execution of the amendment to agreement and 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: Russell Redder 4970 Expedited