HomeMy WebLinkAboutResolution 5666-12-2022 A Resolution
NO. 5666-12-2022
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
WASTEWATER MASTER PLAN UPDATE
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 Wastewater Master Plan Update
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 $2,700,000.00 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 the 131h day of December 2022. OF rR� r
ATTEST:
✓�nnei'ie S. UoaA�lil C3: � o.� t
B y: Jannette S.Goodall{Dec 15,262214:51 CST4
Jannette S. Goodall, City Secretary
XA%�4
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/13/22 M&C FILE NUMBER: M&C 22-1052
LOG NAME: 60WWCMPU-FNI
SUBJECT
(ALL)Authorize Execution of an Engineering Agreement with Freese and Nichols, Inc., in the Amount of$2,250,000.00,for the Wastewater Master
Plan Update,Adopt a 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 an Agreement with Freese and Nichols, Inc., in the amount of$2,250,000.00 to update the City of Fort Worth's
Wastewater Master Plan Update Project(City Project No. 104126);
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Wastewater Master
Plan Update project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Wastewater Master Plan Update project(City Project No. 104126)in the amount of$2,250,000.00 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 August 26,2008, Mayor and Council Communication(M&C C-22997),the City Council authorized the execution of an Engineering Agreement
with Freese and Nichols, Inc.,to prepare the Wastewater Collection System Master Plan to evaluate the capability of the collection system to meet
growth projections through 2030. This evaluation included an updated Wastewater Collection System Capital Improvements Plan with cost
estimates and implementation schedule,identified additional wastewater treatment capacity requirements, interceptors,and lift stations.
Since the previous Wastewater Collection System Master Plan,the City and its wholesale customers within Fort Worth's wastewater service area
have experienced significant growth and will require additional wastewater infrastructure in the near future. Reassessment of the existing available
treatment capacity to serve these areas of the Fort Worth collection system and other future Capital Improvements Program(CIP)considerations
are required. In addition, the existing collection system lacks the conveyance and pumping capacities to meet long-term demands in the
wastewater service area.
Freese and Nichols, Inc.,will identify future population and wastewater flows for each of the sewer basins,conduct wastewater collection system
modeling and capacity assessment for various scenarios, evaluate needed infrastructure improvements, and recommend an updated
wastewater CIP,which will include triggers for implementation of projects and budgetary planning level costs.
The proposed wastewater master plan update is scheduled to be completed by the end of June 2024, while the related water master plan is
expected to be completed by July 2023.
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.
60WWCMPU-FNI
Budget
Capital j Project FY 2023 CIP Change Revised FY
Fund Name Name Appropriations'Authority) (Increasel 2023 Budget
Decrease)
�56021 — 104126—
W&S WW Master $0.00 This M&C $2,250,000.00 $2,250,000.00
Commercial j Plan
Paper Update j
Funding for the Wastewater Collection Master Plan Update project is depicted below:
Existing Additional
LFund Project Total*
Appropriations' Appropriations
W&S Commeraal
I �
Papery Fund 56021� $0.00 $2,250,000AO;$2,250,000 00
Project Total $0.0 $2,250,000.00'$2,250,000.00
*Numbers rounded for presentation.
Funding is currently available in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the WW
Master Plan Update project.
Business Equity: Freese and Nichols, Inc., is in compliance with the City's Business Equity Ordinance by committing to 11 percent Business
Equity participation on this project.The City's Business Equity goal on this project is 10 percent.
The project is located in ALL COUNCIL DISTRICTS.
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 ordinance, funds will be available in the W&S
Commercial Paper Fund for the WW Master Plan Update project to support the approval of 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: Matt Kusnir 8219