HomeMy WebLinkAboutResolution 5700-02-2023 A Resolution
NO. 5700-02-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE V
ELEVATED STORAGE TANK AND 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 V Elevated Storage Tank and
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 $14,200,000.00 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 14th day of February 2023.
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MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/14/23 M&C FILE NUMBER: M&C 23-0125
LOG NAME: 60SWESTSIDE V WATERMAIN-MCKEE
SUBJECT
(CD 3/FUTURE CD 3)Authorize Execution of a Contract with McKee Utility Contractors, Inc. in the Amount of$11,395,255.00 for Westside V
Elevated Storage Tank and Transmission Main Project, Provide for Total Project Costs in the Amount of$12,142,419.00,Authorize Acceptance of
Funds from Walsh Ranches Limited Partnership in the Amount of$290,000.00,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 a contract with McKee Utility Contractors, Inc. in the amount of$11,395,255.00 for the Westside V Elevated Storage
Tank and Transmission Main project(City Project No. 103428);
2. Authorize the acceptance of funds from Walsh Ranches Limited Partnership in the amount of$290,000.00(City Secretary Contract
No.58730);
3. Adopt attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund in
the amount of$290,000.00,from Walsh Ranches Limited Partnership,for the purpose of providing funding for the Westside V Elevated
Storage Tank and Transmission Main project(City Project No.103428);
4. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside V
Elevated Storage Tank and Transmission Main project;and
5. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Westside V Elevated Storage Tank and Transmission Main project(City Project No. 103428) in the amount of$11,852,419.00 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:
The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a contract with McKee Utility Contractors, Inc. in the
amount of$11,395,255.00 for the Westside V Elevated Storage Tank and Transmission Main project(City Project No. 103428).
The project was advertised for bid on October 13 and 20,2022,in the Fort Worth Star-Telegram.On November 17,2022,the following bids were
received:
Bidder Unit 1 Bid ] Unit Total Bid Contract'
Time
McKee
365
Utility
Contractors, $11,105,255.00 $290,000.00$11,395,255.00 Calendar'
Inc. Days
Reyes Group,.$11,249,348.25 �,650.75 $11,599,999.00
u
=Thalle $11,820,078.00 $263,OOO.00i$12,083,078.00
[ac=kson $12,168,688.00 $330,000.00 $12,498,688.00
Walsh Ranches Limited Partnership(WRLP),pursuant to a Developer Funding Agreement(City Secretary Contract No.58730),will contribute the
amount of$290,000.00 to pay for the cost of the Unit 2 Bid which consists of 24-inch stub outs as requested by WRLP during the design of this
project.
In addition to the contract cost, $525,059.00 is required for project management and inspection and $222,105.00 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.
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:
60SWESTSIDE V WATERMAINP2-MCKEE
Capital Project FY2023 CIP Budget Change Revised
Fund Name Name Appropriations Authority (Increase/Decrease) FY2023
Budget
Fund 56021- 103428—
W&S WS V EST
Commercial and $0.00 This M&C $11,852,419.00$11,852,419.00
Paper Transmission
Main
Fund 103428—
56002-W&S WS V EST
Capital and $0.00 This M&C $290,000.00 $290,000.00
Projects Transmission
Main
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.
Funding is budgeted in the W&S Commercial Paper Fund for the purpose of funding the WS V EST and Transmission Main project,as
appropriated.
Funding for the WS V EST and Transmission Main project is depicted below:
Existing Additional
FUND Appropriationd Appropriations Project Total*
W&S Rev Bonds
Series 2022- $9,725,584.00 $0.00 $9,725,584.00
Fund 56020
W&S Commercial
Paper- Fund $0.00 $11,852,419.00 $11,852,419.00
56021
W&S Capital
Projects-Fund $0.00 $290,000.00 $290,000.00
56002
Project Total $9,725,584.00 $12,142,419.00IL$21,868,003.0011
*Numbers rounded for presentation purposes.
Business Equity-McKee Utility Contractors, Inc.is in compliance with City's Business Equity Ordinance by committing to seven percent Business
Equity participation on this project. The City's Business Equity goal on this project is seven percent.
The project is located in COUNCIL DISTRICT 3/FUTURE DISTRICT 3.
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 ordinances,funds will be available in the W&S
Commercial Paper Fund and the W&S Capital Projects Fund for the WS V EST and Transmission Main project to support the approval of the
above recommendations and execution of 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