HomeMy WebLinkAboutResolution 5758-06-2023A Resolution
NO. 5758-06-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE IV
ELEVTED 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 $7,500,000.00 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 271h day of June, 2023.
ATTEST:
By:------------------
Jannette S. Goodall, City Secretary
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MAYOR AND COUNCIL COMMUNICATION MAP
60 Westside IV Elevated Storage Tank — Landmark
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 06/27/23 M&C FILE NUMBER: M&C 23-0520
LOG NAME: 60WESTSIDE IV ELEVATED STORAGE TANK— LANDMARK
SUBJECT
(CD 3) Authorize Execution of a Contract with Landmark Structures I, LP, in the Amount of $5,670,000.00 for Construction of Westside IV Elevated
Storage Tank, Provide for Project Costs, for a Project Total in the Amount of $6,242,147.00, 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:
1. Authorize execution of a contract with Landmark Structures I, LP, in the amount of $5,670,000.00 for the Westside IV Elevated Storage Tank
project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside IV
Elevated Storage Tank and Transmission Mains project (City Project No. 103292); and
3. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the amount of $6,242,147.00 in the Westside IV Elevated Storage Tank and Transmission Mains project (City Project No. 103292) 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 Landmark Structures I, LP in the amount
of $5,670,000.00 for the Westside IV Elevated Storage Tank project.
The project was advertised for bid on March 23 and 30, 2023, in the Fort Worth Star -Telegram. On April 20, 2023, the following bids were
received:
Base Bid +
Base Bid +
Bidder
Base Bid
Alternate 1
(Polyurethane
Alternate 2 !
(Epoxy Interior
Contract!
Time
Interior Coatinnl
Coatin
Landmark
480
Structures I,
LP
$5,262,000.00
j
$5,670,000.00
$5,660,000.001Calendar
(Days
Phoenix
Fabricators and
$6,661,000.00
$6,744,000.00';
$6,746,000.00
j
Erectors, LLP
*Staff recommends award of contract for the base bid & Alternate 1 option.
In addition to the contract cost, $402,047.00 is required for project management and inspection and $170,100.00 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 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:
60Westside IV Elevated Storage Tank and Transmission Main — Landmark
Capital
Fund
Project
Name
FY2023 CIP
Appropriations
Authority
Budget Change
(Increase/Decrease)
Revised
FY2023
Name
Bud et
9
103292
56022 -
- WSIV
W&S
Elevated
$0.00
This M&C
$6,242,147.00
$6,242,147.00
Commercial
WST&
Paper
Trans
Main
Funding for the Westside IV Elevated Storage Tank and Transmission Main project is depicted below:
Fund
Existing
Appropriations
Additional
Appropriations
Project Total*
W&S Rev Bonds Series 2022
- Fund 56020
$1 831,291.00
$0.00
$1,831,291.00
W&S Rev Bonds Series 2023
- Fund 56021
$8 853,934.00
$0.00
$8,853,934.00
W&S Commercial Paper-
Fund 56022
$0.00
$6,242,147.00
$6,242,147.00
W&S Capital Projects - Fund
56002
$324,256.00
$0.00
$324,256.00
Project Total
$11,009,481.00
$6,242,147.00
$17,251,628.00
*Numbers rounded for presentation purposes.
Funding is budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Westside IV
Elevated Storage Tank and Transmission Main project.
Business Equity — Landmark Structures I, LP is in compliance with City's Business Equity Ordinance by committing to six percent
MWBE participation on this project. The City's MWBE goal on this project is five percent.
The project is located in COUNCIL 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 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