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Home My WebLink AboutResolution 5654-11-2022 A Resolution NO. 5654-11-2022 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE MARINE CREEK PARALLEL PHASE II 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 Marine Creek Parallel Phase 11 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 $6,300,000.00 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 29th day of November 2022. ATTEST: By: Jpoette S.Goodall(Nov 29,202216 CST) r Jannette S. Goodall, City Secretary ` XAS • ' A 1 • • A 0 . . DETAF.A114- 101 A&I a A w rw IVA NORTHWESTTCC- - ,n s ps 4M, sjr • • �I+t�liiiitii� ��.•� a � „�y� - go Ak � wit ii�i ��„"•� ��k >' _ _ yr l�1Fhi it air ± t�•' �"' w ! r F ir.xr �� i •• fiY # 9 .�� / ��+,J` �• `�!tea.[, _�i FoRTWORTH 1poo� F w' City of Fort Worth, Texas Mayor and Council Communication DATE: 11/29/22 M&C FILE NUMBER: M&C 22-0951 LOG NAME: 60MARINECREEK PHASE II PART II-MCKEE SUBJECT (CD 2)Authorize Execution of a Contract with McKee Utility Contractors, Inc., in the Amount of$4,650,000.00 for Marine Creek Parallel Phase II Sanitary Sewer Improvement 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 McKee Utility Contractors, Inc., in the amount of$4,650,000.00 for Marine Creek Parallel Phase II project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Marine Creek Parallel Phase II (City Project No. 100274)project;and 3. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in the Marine Creek Parallel Phase II project(City Project No. 100274) in the amount of$5,266,568.00 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: This Mayor and Council Communication(M&C)provides for the construction of a 42-inch, 30-inch and 16-inch sewer main, extending from Ten Mile Bridge Road and proceeding southwesterly and southerly 2,800 feet.The project will provide additional wastewater capacity to the Marine Creek drainage basin. The project was advertised for bid on September 15,2022 and September 22,2022 in the Fort Worth Star-Telegram. On October 13, 2022 the following bids were received: Amount .Total A(Base Bid *Total B(Base Contracts Bidder I &Concrete Bid&Polymer Time j Manhole) I Manhole) Amount Amount McKee Utility 360 � Contractors, Inc. $4,650,000.00 $4,950,000.00 Calendar! Days jS.J. Louis Construction of $5,081,159.40j $5,342,553.40 Texas,Ltd. William J Schultz, Inc.dba Circle C $0.00 $5,880,040.00 Construction Company j !Mountain Cascade $11,267,317.00 $1�,560817.00L — of Texas, LLCi 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. In addition to the contract amount, $407,318.00 is required for project management, material testing and inspection and$209,250.00 is provided for project contingencies. 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: 60MARINECREEK PHASE 11 PART II-MCKEE Capital Project FY2023 CIP Budget Change ': Revised Fund Authority FY2023 Name Name Appropriations I(Increase/Decrease) 9 Bud et 56021 - 100274— W&S Marine Creek $0.00 This M&C $5,266,568.00 $5,266,568.00! Commercial Parallel Phase, Paper 11 Funding for the Marine Creek Interceptor M-279A&M-365 Improvements Phase II project is depicted below: Existing Fund Additional Appropriations Project Total Appropriationsi W&S Capital Projects— $754,873.00 $0.00I $754,873.00 Fund 56002 WS Capital Project $3,375,830.00 $0.00 $3,375,830.00 2019— Fund 56016 ,W&S Commercial $0.00 $5,266,568.00'$5,266,568.00 Paper Fund '56021 Prroae ct L$4,130,703.00 E:::::�$5�,266,568.0�F, 97,271.00 Tot *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 of the City to reimburse itself from tax-exempt bond proceeds. Business Equity- McKee Utility Contractors, Inc. is in compliance with City's Business Equity Ordinance by committing to 22 percent Business Equity participation on this project.The City's Business Equity goal on this project is 21 percent. The project is located in COUNCIL DISTRICT 2. 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 Marine Creek Parallel Phase II project to support the above recommendation and the execution of 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 b . Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Walter Norwood 5026 Expedited