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Home My WebLink AboutResolution 5636-09-2022 A Resolution NO. 5636-09-2022 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CLEAR FORK LIFT STATION AND FORCE 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 Clear Fork Lift Station and Force Main Plan 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 $37,250,000.00 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 27th day of September 2022. ATTEST: `t; M) .j b. • -, � ;;,,:fib �' By: Jannette S.Goodall(Sep 30,202214:30 CDT) Jannette S. Goodall, City Secretary A • ' A • • • . 1 A • RaiiG lftr� i■1 ill IIIP.1�- a=1• ./1 $rEgeay r i��.9l Billllli ■■ilti 1117i1>i< FI" Z(I`i�� sb °l, aeT.+ � _ ■ ilo ilo � lil ClilF:ili �Nll�t.`. _ S9lh �. � ' :;,, ^"e,s,;• ! r Pli19>tlid. ill I■ll>; r�:r .x ¢ - .6� �^air " g''f`, �if�iiuoi�uiii. l lf�ll!` ��•`. 11 �ih II �/1�/ -'`� \1 n =IIKIIIIiY[il IU.liifstl: - 111.SS5� � �AN{I'i ['// - i �{.� i G i.;,, —If{.•i 6t�i i�61,,_ W[ilri�i! ■��'iFGf.0�i4�1i[1�➢� �_ $ [Illi :�16lllwlt lil!'.kt11R IIH lull '_- • Itil k1. �IIIIl1 1'.[ii In iY4 -41 k I [I iill1€0 Illlie I.kll ii i f 1 iife 1"rlV.T!.- GI■ �I*f$i 1 'L'11om iil{irE FORCE i �" 11 �IBI ■ �N4r ��!=-a�� MAN ® 0101111111 MAIN was WF- � n I LPL 1 • .uuai-/_ . u .iliiiii il< • - IBliff_ 1 •+ . i Iltllll I 111{{ii � it i itaif4li:� � d t � pgpp j:.kaS' .21111 e.iy! • - - i� !� 1 AID d CIS►1� f` ■ of _- lk=i�� „�� c serf:a{If{s '' +r' •,' • i �;,.: '�Pi1! Ili illllti , FORCE 3 '1 , All 0 �. s e/ a/■i _ _ - CJllitlllli eel . 111["� �l 0g 1 J} '^L�llalilldi� liiiiit111 • sx � y �� :iliilliltli lltltdl !�f �y S a f�ue�l ■i y ; ■■ ■ .. _ �� - tj �j�:� i4i1[1fliP.1 I1SftiliU 1 ii■ �li lTlesr'i_�:f i -� = P r ,. 1� ,• �1.�'. . �1 ��_' k�4tliilri iltiil �!"J��r A��i,�0!��' �� w pitT II a f7C1�G no rii L if Sjff;lif�ilt� •+ 1i@ 7lilii! iL.li ril�nF '® '� •" Erg 4g:' ...,:>�' .. iQ�lliil ililiil,i 111a•e �= ^`, ��;�� - � . r1711tiR 9t [IE !l+R�ie! �aw H c.^� -- �:wr li�iilllt�iBl ' !iB{il►� : � -='ED �•�ti tag n up, i31i1�� 5; � �' `.''1} • �l ' ,� �ew �iB11M16iL ildi/V aid! r � �' �®r.,a�G 'v f� '� t, �i`�t31 °�� R�A,�IiF�+i915iatledi��. •_ �� `� ' +•� f,�� m dR��il�' 11,E.i� •a •_ � ,�, [� �= ;;; • , as 31; •11 I�iii• n►- iilii a 1 City of Fort Worth, Texas Mayor and Council Communication DATE: 09/27/22 M&C FILE NUMBER: M&C 22-0785 LOG NAME: 60CFFMAIN-SJLOUIS SUBJECT (CD 9) Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd. in the Amount of$29,829,815.71 for the Clear Fork Wastewater Force Main Project,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinance to Effect a Portion of Water's Contribution to the Fiscal Years 2022-2026 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a contract with S.J. Louis Construction of Texas, Ltd. in the amount of$29,829,815.71 for the Clear Fork Force Main project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Clear Fork Force Main project;and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the amount of$31,034,957.00 in the Clear Fork Force Main project (City Project No. 100996) and decreasing appropriations in the Unspecified project(City Project No. UCMLPR) by the same amount to effect a portion of Water's Contribution to the Fiscal Years 2022-2026 Capital Improvement Program. DISCUSSION: This Mayor and Council Communication(M&C)is to authorize a construction contract with S.J. Louis Construction of Texas, Ltd. and appropriate funding for the Clear Fork Force Main project. This project is the second part of a two part project that is known as the Clear Fork Lift Station and Clear Fork Force Main project.The City received bids for the first part of the project;the Clear Fork Lift Station on April 21,2022,that was awarded to Eagle Contracting, LLC on June 14, 2022 (M&C 22-0414). The Lift Station and Force Main projects will provide additional wastewater conveyance to eliminate repeated sanitary sewer overflows that have occurred over the years in the lower reaches of the Clear Fork Drainage Basin. In addition,flow projections have indicated that the existing collection system is undersized in the Clear Fork corridor from the University/Interstate Highway 30 intersection to West 7th Street. When completed the new lift station and force main can also be utilized to perform bypass pumping operations during rehabilitation work on the existing two sewer trunk mains providing significant future construction cost savings.The Force Main project will extend from the Clear Fork Lift Station northerly to 5th Street as shown on the Mayor and Council Communication Map. Construction of the project was advertised for bid on June 23,2022 and June 30,2022, in the Fort Worth Star-Telegram.On July 28,2022,the following bids were received: Bidder Base Bid Contract Time S.J.Louis Construction of Texas, $29,829,815.71 400 Calendar Ltd. Days McKee Utility Constructors, Inc. $35,295,920.00 Mountain Cascade of Texas,LLC $38,035,845.00 Oscar Renda Contracting, Inc. $39,399,757.00I In addition to the contract cost, $906,843.29 is required for project management and inspection and $298,298.00 is provided for project contingency. This project will have no impact on the Water Department's operating budget when complete.This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. 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,instead of within the annual budget ordinance, as projects commence, additional funding needs are identified, and to comply with bond covenants.The actions in the M&C will amend the City of Fort Worth's Fiscal Year 2022-2026 Capital Improvement Program as follows: 60CFFMAIN-SJLOUIS Capital Fund Project FY2022 CIP Budget Change Revised Name Name Authority FY2022 Appropriations (Increase/Decrease) Budget 56020—Water& 100996— Sewer Revenue Clear Fork M&C 22- Bonds Series Lift Station $0.00 0414 $13,917,999.00 $13,917,999.00 2022 Fund and Force Main 56021 -W&S Clear Fork Commercial Lift Station $0.00 This M&C $31,034,957.00 $31,034,957.00 Paper and Force Main Funding for the Clear Fork Lift Station and Force Main project is depicted below: FUNDExisting Additional [Project Total* Appropriations Appropriations W&S Capital Proj 2018—Fund $3,591,570.00 $0.00 $3,591,570.00 56014 W&S Revenue Series 2022-Fund $13.917,999.00 $0.00$13,917,999.00 56020 W&S Commercial Paper Fund 56021 $0.00 $31,034,957.00 $31,034,957.00 Project Total J$17,509,569.00 $31,034,957.00$48,544,526.00 Business Equity- S.J. Louis Construction of Texas, Ltd. is in compliance with City's Business Equity Ordinance by committing to 13 percent Business Equity participation on this project.The City's Business Equity goal on this project is 13 percent. The project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: i The Director of Finance certifies that funds are currently available in the W&S Commerical Paper 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 Clear Fork LS and FM project to support the execution of the 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 W. Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Liam Conlon 6824 Expedited