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Home My WebLink AboutResolution 5691-02-2023 A Resolution NO. 5691-02-2023 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WALNUT CREEK SANITARY SEWER EXTENSION 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 Walnut Creek Sanitary Sewer Extension 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 $13,400,000.00 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 14"' day of February 2023. ATTEST: ,1,' ( F0000*_�O-P. &� 0o~� z ° By: ° Aa�' �� *Jannette S. Goodall City Secretary ° °O°°°°°° d ,o a�nEXa soap' MAYOR AND COUNCIL COMMUNICATION MAP 60WCREEKSSEP1 -SJLOUIS zY •� °+� R I, ^ l(��a"��M", � � t�l`�- ': j,�` .. ; I' _ � �°; is �,. ' ,,.....!•- .M`...,.._.._.,,.�' F i° '--�}�,r a f�.1 - � SILVER SADDLERD _ - - cco f CORP04,....RAT�IONPKWY EB'EXIBLu `` Lul ul y 0� C9O _ Q' A� i r"Z � IWESTR GERD 5r7 w' ov ` oo V UNION PACIFIC RR _ Kvv Lu y a- P �y CO INAD eROL�ILIN'T G H LL¢SDR qA�/�r - p;�,1DE ` C R�pGEID y0O REGENTROW TR�AI RIB D ED TRAIL a �r ��. E cKSLEYD GI ",� GOL'FVIEWWAYti KWY 'JERRY:DUNNP NRpy � RPNG FoRTWORTH8,.,,D 3'�a r City of Fort Worth,Texas Mayor and Council Communication DATE: 02/14/23 M&C FILE NUMBER: M&C 23-0129 LOG NAME: 60WCREEKSSEPI-SJLOUIS SUBJECT (CD 3/Future CD 3)Authorize Execution of a Contract with S.J. Louis Construction of Texas,Ltd.in the Amount of$10,424,212.97 for Phase 1 of the Walnut Creek Sanitary Sewer Extension,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 S.J. Louis Construction of Texas, Ltd. in the amount of$10,424,212.97 for phase 1 of the Walnut Creek Sanitary Sewer Extension project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for phase 1 of the Walnut Creek Sanitary Sewer Extension project;and 3. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in the Walnut Creek Sanitary Sewer Extension project(City Project No.103414)in the amount of$11,169,635.00 and decreasing appropriations in the W&S Commercial Paper Fund 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 S.J. Louis Construction of Texas, Ltd, and appropriate funding for phase 1 of the Walnut Creek Sanitary Sewer Extension,from Chapin School Road to Markum Ranch Road. The project was advertised for bid on October 27, 2022 and November 3, 2022 in the Fort Worth Star-Telegram. On December 1, 2022 the following bids were received: Bidder Bid Amount Calendar Days S.J.Louis Construction of Texas, $10684 360 Calendar Ltd. , ,818.00 Days j McKee Utility Constructors, Inc. $13,951,068.00 In addition to the contract cost, $484,817.00 is required for project management and inspection and$260,605.00 is provided for project contingency. This project will have no impact on the Water Department's operating budget when complete. 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: 60WCREEKSSEPI-SJLOUIS Capital Revised Project FY2023 CIP Budget Change Fund Authority FY2023 Name Name Appropriations (Increase/Decrease) 9 Bud et 103414-1 56021 - Walnut W&S Creek $0.00Lis M&C' $11,169,635.00 $11,169,635.00 Commercial Sanitary Paper Sewer Extension � Funding is currently available in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Walnut Creek Sanitary Sewer Extension. Funding for the Walnut Creek Sanitary Sewer Extension project is depicted below: Existing ( Additional FUND L ( Project Total* Appropriations Appropriations; i W&S Rev Bonds j Series 2022- $2,154,511.00! $0.00 $2,154,511.00' Fund 56020 7= W&S Commercial IL $0.001 $11,169,635.00;$11,169,635.00 Paper Fund 56021 Project Total $2,154,511.00 $11,169,635.00 $13,324,146.00 I i � *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- S.J. Louis Construction of Texas, Ltd. is in compliance with City's Business Equity Ordinance by committing to 17 percent Business Equity participation on this project.The City's Business Equity goal on this project is 17 percent. The project is located in COUNCIL DISTRICT 3/FUTURE COUNCIL DISTRICT 3. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that funds are currently available in the W&S Commercial Paper UCMLPR 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 Walnut Creek SS Extension project to support 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 by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Preeti KC 5467 Expedited