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Home My WebLink AboutResolution 5749-06-2023A Resolution NO.5749-06-2023 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE IV ELEVATED WATER STORAGE TANK & 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 IV Elevated Water Storage Tank & 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 $15,000,000.00 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 13th day of June 2023. ATTEST: Jannette S. Goodall, City Secretary a :�0Fopp� 0 00000 y'� Ab o %00 c e d d .. o o Z' A MAYOR AND COUNCIL COMMUNICATION MAP 60WSIV TRANSMISSION MAIN - MCKEE City of wort worth, Mayor and Texas Council Communication DATE: 06/13/23 M&C FILE NUMBER: M&C 23-0499 LOG NAME: 60WS IV TRANSMISSION MAIN - MCKEE SUBJECT (CD 3) Authorize Execution of a Contract with McKee Utility Contractors, Inc., in the Amount of $11,624,937.00 for Westside IV 36-Inch Water Transmission Main Provide for Project Costs for an Additional Project Total in the Amount of $12,429,931.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: Authorize execution of a contract with McKee Utility Contractors, Inc. in the amount of $11,624,937.00 for the Westside IV 36-Inch Transmission Main from Aledo Road to Westside IV Elevated Storage Tank project; Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the WSIV Elevated WST & Trans Main project; and Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the WSIV Elevated WST & Trans Main project (City Project No. 103292) in the amount of $12,429,931.00 and decreasing appropriations in the W&S Commercial Paper project (City Project No. UCMLPR) by the same amount. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a contract with McKee Utility Contactors, Inc., in the amount of $11,624,937.00 for Westside IV 36-Inch Transmission Main from Aledo Road to Westside IV Elevated Storage Tank project. The project was advertised for bid on March 16 and 23, 2023, in the Fort Worth Star -Telegram. On April 20, 2023, the following bids were received: Bidder Base Bid Contract Time McKee Utility Contractors, Inc. $11,624,937.00 1325 DaCalendarY s S J Louis Construction of Texas, 1$12,562,003.58 Ltd Reyes Group, Ltd $12,733,555.00 Mountain Cascade of Texas, LLC I $13,200,418.00j Harper Brothers Construction,t7t,'� $15, 011.406.74' LLC In addition to the contract cost, $514,370.00 is required for project management and inspection and $290,624.00 is provided for project contingency. 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 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: 60WS IV TRANSMISSION MAIN - MCKEE Capital Revised Fund Project Name (Appropriations FY2023 CIP Authority' Budget Change (Increase/Decrease) ! FY2023 Name I i Budget 9 -- 103292 56022 - II- WSIV $0.001IThis M&CIJ $12,429,931.0011$12,429,931 Paper Funding for the WSIV Elevated WST& Trans Main project is depicted below: Fund Existing Additional Project Total* Appropriations Appropriations W&S Commercial Paper -Fund $1,831,291.00 $0.00 [$=1,831,291.00i 56020 W&S Commercial Paper -Fund 56021 $8,853,934.00 $0.00 $8,853,934.00 W&S Commercial Paper -Fund $0.00 $12,429,931.00 $12,429,931.00 56022 W&S Capital Projects Fund $324,256.00 $0.00 $324,256.00 56002 Project Total $11,009,481.00 $12,429,931.00 $23,439,412.00 *Numbers rounded for presentation purposes. Business Equity — McKee Utility Contractors, Inc. is in compliance with City's Business Equity Ordinance by committing to eight percent MWBE participation on this project. The City's MWBE goal on this project is six percent. The project is located in COUNCIL DISTRICT 3. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds will be available after the sale of the 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 WSIV Elevated WST & Trans Main 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 by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Farida Goderya 8214