HomeMy WebLinkAboutResolution 5748-06-2023A Resolution
NO.5748-06-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE FM-156 AT
CANTRELL-SANSOM WATER
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 FM-156 at Cantrell-Sansom Water
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 $435,000.00 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 ] 3t" day of June 2023.
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Jannette S. Goodall, City Secretary P� $
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MAYOR AND COUNCIL COMMUNICATION MAP
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LEGEND
O PROPOSED VAULT/STRUCTURE ADJUSTMENT
PROPOSED WATER LINE RELOCATION
FM 156 RECONSTRUCTION AND WIDENING LIMITS
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WATER
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/13/23 M&C FILE NUMBER: M&C 23-0492
LOG NAME: 60FM156CANTRELLSANSOM-KHA
SUBJECT
(CD 2) Authorize Execution of an Engineering Agreement with Kimley-Horn and Associates Inc., in the Amount of $282,600.00 for the Farm to
Market 156 at Cantrell-Sansom Road Water Main Relocation 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:
Authorize execution of an engineering agreement with Kimley-Hom and Associates, Inc. in the amount of $282,600.00 for the Farm to
Market 156 at Cantrell-Sansom Road Water Main Relocation project,
Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Farm to Market 156
at Cantrell-Sansom Road Water Main Relocation project; and
Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the FMA 56 at Cantrell-Sansom Road Water Main Relocation project (City Project No. 104515) in the amount of $362,600.00 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 September 14, 2021, (Mayor and Council Communication (M&C) 21-0669) the City of Fort Worth executed an Interlocal Agreement with the
City of Saginaw for intersection improvements at Cantrell Sansom Road and Farm to Market 156 (FM 156). The proposed roadway improvements
are in conflict with existing City water main crossing FM 156 and water vault structures on E. Industrial Avenue / Cantrell Sansom Road that must
be relocated and adjusted, respectively.
The proposed scope of services consists of design, coordination with and review of with Texas Department of Transportation and its contractor's
plans, shop drawing reviews, permit applications and project meetings with all stake holders. Kimley-Horn and Associates, Inc. proposes to
provide the necessary services for a fee not to exceed $282,600.00. Staff considers the proposed fee to be fair and reasonable for the scope of
services proposed.
In addition to the contract amount, $80,000.00 is required for project management, material testing and inspection. This project will have no
impact on the Water Department operating budget when complete.
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.
It is the practice of the Water Department to appropriate its Capital Improvement Program (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 appropriate funds in support of the Water's portion of the City of Fort Worth's Fiscal Years 2023-2027 Capital Improvement Program,
as follows:
Capital
Fund
Project]
FY2023 CIP
Authority.
Budget
Change
Revised
FY2023
Name
Name ;Appropriations
(Increase/
Budget j
^�
Decrease)
104515
j
Fund 56022
— FM-
156 at
'
Commercial jSansom
Cantrell-i
$0.00!
This M&C'
$362,600.00�
$362,600.00
Paper
Water
Project
Funding for the FM-156 at Cantrell-Sansom Road Water Main Relocation Project is depicted below:
Fund
Existing
Additional
Project Total*
Appropriations
Appropriations
W&S Commercial
Paper —Fund
$0.00
$362,600.00
$362,600.00
56022
Project Total
1 $0.001
$362,600.00
$362,600.00
*Numbers rounded for presentation purposes.
Funding is available in Water Department's W&S Commercial Paper project within the W&S Commerical Paper Fund for the purpose of funding
the Cantrell-Sansom Road Water Relocation project.
Business Equity: Kimley-Hom and Associates, Inc., is in compliance with the City's Business Equity Ordinance by committing 16 percent
Business Equity participation on this project. The City's Business Equity goal on this project is 10 percent.
This project is located in COUNCIL DISTRICT 2 and FUTURE COUNCIL DISCTRICT 2.
FISCAL INFORMATION ! CERTIFICATION:
The Director of Finance certifies that funds will be available after the sale of Water and Sewer bonds 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 FMA 56 at Canrell-Sansom Water project to support the approval of the above
recommendations. Prior to an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Managers Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: John Kasavich 8480