HomeMy WebLinkAboutResolution 5647-11-2022 A Resolution
NO. 5647-11-2022
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WATER &
SANITARY SEWER MAIN EXTENSION BUDHARATANARAM
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 Water & Sanitary Sewer Main
Extension Budharatanaram 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 8th day of November 2022. OF FAR
ATTEST: O
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By: Jannette S.Goodall(Nov 10,2022 07:19 CST) ;
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/08/22 M&C FILE NUMBER: M&C 22-0884
LOG NAME: 60WSSWAT13COMMUNITY-WOODY
SUBJECT
(CD 7)Authorize Execution of a Contract with Woody Contractors, Inc., in the Amount of$4,199,690.00 for the Water and Sanitary Sewer Main
Extension Buddharatanaram Community 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 2023-2027 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a contract with Woody Contractors, Inc., in the amount of$4,199,690.00 for the Water and Sanitary Sewer Main
Extension Buddharatanaram Community project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Water and Sanitary
Sewer Main Extension Buddharatanaram 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$4,841,414.00 in the Water and Sanitary Sewer Main Extension Buddharatanaram project(City Project No.
102994)and decreasing appropriations in the Water&Sewer Commercial Paper project(City Project No. UCMLPR) by the same amount
to effect a portion of Water's Contribution to the Fiscal Years 2023-2027 Capital Improvement Program.
DISCUSSION:
This Mayor and Council Communication (M&C)is to authorize a construction contract with Woody Contractors, Inc.for the water and sanitary
sewer main extension to serve Wat Buddharatanaram Community on Wat Road(SE-HA-PAYAK)which begins and ends on Keller Haslet Road as
shown on the attached Mayor and Council Communication Map.
The project was advertised for bids on September 1,2022, and September 8,2022, in the Fort Worth Star-Telegram. On September 29,2022,
the following bids were received:
Bidder Amount Time of Completion j
Woody Contractors, Inc. $4,199,690.00111 310 Calendar Days
Jackson Construction, Ltd. $4,551,659.00 j
Reyes Group $4,688,888.90
In addition to the contract amount,$431,739.00(Water:$229,395.00; Sewer:$202,344.00) is necessary for project management, inspection and
material testing and$209,985.00(Water: $110,650.00;Sewer:$99,335.00) is provided for project contingencies.
This project will have no impact on the Water Department's operating budgets when completed.
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 2023-2027 Capital Improvement Program as follows:
60WSSWATBCOMMUNITY-WOODY
I Budget
Capital Revised
FY2023 CIP Change
Fund Project Name Authority FY2023
Name (Appropriations (Increase/ Budget
Decrease) g
W&S1 102994—W&SS i
Commercial'Main $0.00 This M&C'$4,841,414.00'$4,841,414.00
Paper Fund;
Ext.Buddharatanaram'
Funding is currently budgeted in the W&S Commercial Paper project within the Water&Sewer Commercial Paper Fund for the purpose of funding
the W&SS Main Ext. Buddharatanaram project.
Appropriations for the W&SS Main Ext. Buddharatanaram project are as depicted below:
Existing Additional �
EFund , Project Total'
Appropriations Appropriations j
W&S Capital
Projects-Fund $614,348.0Q $0.00 $614,348.00
56002
W&S Commercial
Paper—Fund $0.00 $4,841,414.00$4,841,414.00
56021
Project Total $4,841,41 0$5,455,762.001
*Numbers rounded for presentation purposes.
Business Equity: Woody Contractors, Inc.,is in compliance with the City's Business Equity Ordinance by committing to eight percent Business
Equity participation and documenting good faith effort.Woody Contractors, Inc.identified several subcontracting and supplier opportunities.
However,the firms contacted in the areas identified did not respond or did not submit the lowest bids.The City's Business Equity goal on this
project is 20 percent.
The project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the W&S Commercial 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 W&SS Main Ext. Buddharatanaram project to support the above recommendations and 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 by-. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Brenda Oropeza 8271
Expedited