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Home My WebLink AboutResolution 5715-02-2023 A Resolution NO. 5715-02-2023 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE TREATMENT PLANT III 30" 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 Water Treatment Plant 111 30" 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 $25,350,000.00 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 281'' day of February, 2023. 4-00000000k 44��' ad ATTEST: ��o° °00�� duo ° 0 pv° 0 0 ° ° % 0 dd By: �a 0 o Jannette S. Goodall, City Secretary d�a4 nLEX A5g4p�r A A 1 • • A . Miry//!1 JIWu/+lHn ai.■1 It/tllllllH/MltlllAtillt =_•�.:i.. rilll. C��r� � ■ �'� if�lilli•�f IIIIi� _ __ _M�tillixllll{11 f . .•auunuua.u► '� it 1.IIt1111•\\� NI.I.NItI ixl � nuuunmu•=t 1 bl\ft 11 -QLDWEATHE • - • - • 111!HUIIIII@III# t11444 IFJI WEZTSIDE WATER `SNN{'/N/nrN111 xuum -nnnunu e 5_ �' t irr1111t1111 1 - 7 -Mow- i •Ixl •'�� r,Illlltlll Ix� V/!I(Ir`I�II•��"�•I�ixlllillil� HAPIN r , S�,i•• ia,rH iiiiliiillillllff J tI11111� �11 1 1 1 111 1► 1999 rD`�3�rr =_ � =•nx1` I- +��1 Illllilillilllll f�yillxx. 'fir ��Iilx{i11111i Mtl{..�-- � � �iaaii`\ih\liii It11111x1111111i1S1a�/�!\l a.. uaurtuNNl{Innl.�i��l raroiiox: � jl% 15•IIIts tc H■lii PROPOSED WATER TRANSMISSION MAIN ER ■red�1:=�Y:\.n. a : +:� � 4 �s�r.t�Gjs ff 91r+tt7ttr► 'r � 't err • i. fiu■Ir�roE wwre • GROUND Ft SITERAGE TANK FORT 1 WORTH : D DI - o • • - -..o 1 1 City of Fort Worth,Texas Mayor and Council Communication DATE: 02/28/23 M&C FILE NUMBER: M&C 23-0184 LOG NAME: 60WESTSIDE III WATERMAINPI-THALLE KHA SUBJECT (CD 3/Future CD 3) Authorize Execution of a Contract with Thalle Construction Company, Inc.in the Amount of$19,873,823.75 for Westside Treatment Plant III 30"Water Transmission Main Project,Authorize Execution of Amendment No. 1 in the Amount of$303,590.00 to an Engineering Agreement with Kimley-Hom Associates,Inc.,for Westside Treatment Plant III 30"Water Transmission Main Project, Provide for Total Project Costs in the Amount of$21,125,743.00,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 Thalle Construction Company, Inc.in the amount of$19,873,823.75 for the Westside Treatment Plant III 30"Water Transmission Main project(City Project No. 102688); 2. Authorize execution of Amendment No. 1 to City Secretary Contract No.54767 in the amount of$303,590.00, an Engineering Agreement with Kimley-Horn Associates, Inc.,for construction support services for Westside Treatment Plant III 30"Water Transmission Main project (City Project No. 102688)for a revised contract amount of$1,432,870.00: 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside Treatment Plant III 30" Water Transmission Main project;and 4. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in the Westside Treatment Plant III 30"Water Transmission Main project(City Project No. 102688)in the amount of$21,125,743.00 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 Thalle Construction Company,Inc.in the amount of$19,873,823.75 for the Westside Treatment Plant III 30"Water Transmission Mainproject(City Project No. 102688)and the execution of Amendment No. 1 to City Secretary Contract No.54767 in the amount of$303,590.00,an Engineering Agreement with Kimley-Horn Associates, Inc.,for construction support services for Westside Treatment Plant III 30"Water Transmission Main project(City Project No. 102688) for a revised contract amount of$1,432,870.00. On October 20,2020, M&C 20-0773,the City Council authorized an engineering agreement with Kimley-Horn Associates, Inc., (City Secretary Contract No.54767), in the amount of$1,129,280.00 to prepare plans and specifications for the construction of Westside Treatment Plant III 30" Water Transmission Mainproject. As part of Amendment No. 1,the Engineerwill provide construction phase services,additional pipeline design, additional survey services,surge analysis for the Westside III water transmission mains and dividing the project into two parts to accelerate completion of the project. The funding for this M&C is contingent upon an M&C being submitted by Financial Management Services on the 02/14/2023 council agenda.That M&C will increase the Water Department's authorized Callable Commercial Paper Program from$150,000,000.00 to$225,000,000.00. The project was advertised for bid on November 10 and 17,2022,in the Fort Worth Star-Telegram.On December 15,2022,the following bids were received: Bidders IF Total Bid Contract Time J Thalle Construction Company, 550 Calendar Inc. $19,873,823.75'' Days Reyes Group, Ltd. $20,999,999.001 McKee Utility Contractors,Inc. $23,475,000.0011 Mountain Cascade of Texas, LLC $23,645,987.00 S.J.Louis Construction of Texas, $25,935,531.70j Ltd. In addition to the contract cost,$600,537.25 is required for project management and inspection and$347,792.00 is provided for project contingency. M&C 20-0773 authorized$1,715,825.00 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 Treatment Plant III 30" Water Transmission Main 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 the 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,the 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 WATERMAINP1- THALLE&KHA Capital Revised Project FY2023 CIP Budget Change Fund Authority FY2023 Name Name Appropriations (Increase/Decrease)I 9 Bud et 56021- 102688— W&S WS Commercial Treatment $0.00 This M&C $21,125,743.00$21,125,743.00 Paper Plant III 30"WTM Funding for the WS Treatment Plant III 30"WTM project is depicted below: Existing Additional Fund Appropriations; Appropriations Project Total I W&S Commercial Paper-Fund $0.00 $21,125,743.00$21,125,743.00 56021 W&S Rev Bonds Series 2021 - $2,845,105.00 $0.00 $2,845,105.00 Fund 56019 Project Total j $2,845,105.00 $21,125,743.00 $23,970,848.00 *Numbers rounded for presentation purposes. Business Equity:Thalle Construction Company, Inc.is in compliance with City's Business Equity Ordinance by committing to 10% Business Equity participation on this project.The City's Business Equity goal on this project is 10%. Business Equity: Kimley-Horn and Associates, Inc. is in compliance with the City's BDE Ordinance by committing to 5%SBE participation on this project.The City's SBE goal on this project is 5%. The project is located in COUNCIL DISTRICT 3/FUTURE CD 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 ordinance,funds will be available in the W&S Commercial Paper Fund for the WS Treatment Plant III 30"WTM project to support the approval of the above recommendations and execution of the amendment to the engineering contract and 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 P Norwood 5026 Expedited