HomeMy WebLinkAboutResolution 5648-11-2022 A Resolution
NO. 5648-11-2022
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE IV
ELEVATED WATER 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 IV Elevated Water 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 $1,720,000.00 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 81h day of November 2022.
ATTEST:
By: Jannette S.Goodall(N(3v 10,2022 07:19 CST) M
Jannette S. Goodall, City Secretary
AS
MAYOR AND COUNCIL COMMUNICATION MAP
60WESTSIDE III/IV/V WATERMAINSP2-KHA&MCKEE
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FLIRT WORTH
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/08/22 M&C FILE NUMBER: M&C 22-0886
LOG NAME: 60WESTSIDE III/IV/V WATERMAINSP2-KHA&MCKEE
SUBJECT
(CD 3)Authorize Execution of Amendment No. 1 in the Amount of$307,885.00 to an Engineering Agreement with Kimley-Horn Associates, Inc.,
for Westside IV Elevated Water Storage Tank and Transmission Main Project,Authorize Execution of a Contract with McKee Utility Contractors,
Inc.in the Amount of$8,081,011.00 for Westside IV Elevated Water Storage Tank and Transmission Main Project, Provide for Total Project
Costs in the Amount of$11,009,481.00,Authorize Acceptance of Funds from Walsh Ranches Limited Partnership in the Amount of
$324,256.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation
Ordinances 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 Amendment No. 1 to City Secretary Contract No.55971 in the amount of$307,885.00,an Engineering Agreement
with Kimley-Horn Associates, Inc.,for construction support services for Westside IV Elevated Water Storage Tank and Transmission
Main project(City Project No. 103292) for a revised contract amount of$1,678,150.00;
2. Authorize execution of a contract with McKee Utility Contractors, Inc.in the amount of$8,081,011.00 for the Westside IV Elevated Water
Storage Tank and Transmission Main project(City Project No. 103292);
3. Authorize the acceptance of funds from Walsh Ranches Limited Partnership in the amount of$324,256.00(CSC 58178);
4. Adopt attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund in
the amount of$324,256.00, received from Walsh Ranches Limited Partnership,for the purpose of providing funding for the Westside IV
Elevated Water Storage Tank and Transmission Main project(City Project No. 103292);
5. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside IV
Elevated Water Storage Tank and Transmission Main project;and
6. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Westside IV Elevated Water Storage Tank and Transmission Main project(City Project No. 103292)in the amount of$8,853,934.00 and
decreasing appropriations in the W&S 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:
On June 22,2021, Mayor and Council Communication (M&C)21-0482,the City Council authorized an engineering agreement with Kimley-Horn
Associates, Inc., (City Secretary Contract No. 55971), in the amount of$1,370,265.00 to prepare plans and specifications for the construction
of Westside IV Elevated Water Storage Tank and 36 inch Water Transmission Main.
The purpose of this M&C is to authorize execution of Amendment No. 1 to City Secretary Contract No.55971 in the amount of$307,885.00,an
Engineering Agreement with Kimley-Hom Associates, Inc.,for construction support services for Westside IV Elevated Water Storage Tank
and Transmission Main project(City Project No. 103292)for a revised contract amount of$1,678,150.00 and execution of a contract with McKee
Utility Contractors, Inc.in the amount of$8,081,011.00 for the Westside IV Elevated Water Storage Tank and Transmission Main project(City
Project No. 103292).
As part of Amendment No. 1,the Engineer will provide construction phase services,additional pipeline design,additional survey services, surge
analysis for the Westside IV and V water transmission mains and dividing the project into two parts to accelerate completion of the project.
The project was advertised for bid on August 18 and 25,2022, in the Fort Worth Star-Telegram. On September 15,2022,the following bids were
received:
I
Bidder Base Bid (Additive Alternate Total Bid Contract
Bid Time
McKee
325
utility
Contractors, $7,756,755.00 $324,256.00 $8,081,011.00 Calendar
(Days
[Inc. IF7 1�
Mountain 'F
(Cascade of $9,056,478.00 $331,321.00 $9,387,799.00
Texas, LLC
S.J. Louis
Construction $9,769,061.41 $313,974.5111$10,083,035.92'
of Texas, Ltd.
Harper
Brothers 1$10,927,114.72 $351,758.131$11,278,872.85
Construction,
LLC
Reyes Group,$11 199,114.00 $647,774.00 $11,846,888.00
Ltd. 1
Walsh Ranches Limited Partnership(WRLP), pursuant to a previously executed Developer Fundign Agreement(CSC 58178), has contributed the
amount of$324,256.00 to pay for the cost of the Additive Alternate Bid which consists of two 16-inch and one 24-inch stub out as requested by
WRLP during the design of this project.
In addition to the contract cost, $517,808.00 is required for project management and inspection and $271,486.00 is provided for project
contingency. M&C 21-0482 authorized $461,026.00 for project management, real property acquisitions, and utility coordination in relation to
Kimley-Horn and Associates, Inc's original engineering contract.
This project will have no impact on the Water Department's operating budget when complete.
Funding is budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Westside IV
Elevated Water Storage Tank and Transmission Main project project.
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:
60WESTSIDE III/IVN WATERMAINSP2-KHA&MCKEE
Capital Revised
Project FY2023 CIP Budget Change
Fund Authority FY2023
Name Name Appropriations' (Increase/Decrease); Bud et
9
103292
56021- -WSIV
ComW&S Elevated
Commercial WST& 7$000This M&C $8,853,934.00 $8,853,934.001
Paper Trans
Main
56002- 103292
Water& -WSIV
Sewer Elevated Capital WST& $0.00 This M&C $324,256.00 $324,256.001
Projects Trans
Fun d Main
Funding for the WS IV Elevated WST&Trans Main project is depicted below:
Existing Additional ,
FUND Project Total
Appropriations Appropriations
W&S Rev Bonds Series 20221j
Fund 56020
$1,831,291.00 $0.00 $1,831,291.00
W&S Commercial Paper 1
Fund 56021 $0.00 $8,853,934.00) $8,853,93400
W&S Capital Projects Fund I
56002 I $0.00 $324,256.00I $324,256.00
i
Project Total I $1,831,291.00I $9,178,190.00 $11,009,481.001
I �
*Numbers rounded for presentation purposes.
Business Equity-McKee Utility Contractors, Inc. is in compliance with City's Business Equity Ordinance by committing to five percent Business
Equity participation on this project. The City's Business Equity goal on this project is five percent.
Business Equity-Kimley-Horn Associates, Inc. (KHA)agrees to maintain its initial MNVBE commitment of 10 percent that it made on the original
agreement and extend and maintain that same MMBE commitment of 10 percent to this first amendment.Therefore Kimley-Horn Associates, Inc.
(KHA) remains in compliance with the City's Business Equity 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.
The project is located in COUNCIL DISTRICT 3.
FISCAL INFORMATION I 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 ordinances,funds will be available in the W&S
Commercial Paper Fund and the W&S Capital Projects Funds for the WSIV Elevated WST&Trans Main project to support the approval of the
above recommendations and execution of the amendment to the engineering contract and the construction contract. The Water Department(and
Financial Management Services)is responsible for the collection and deposit of funds due to the City. 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