HomeMy WebLinkAboutResolution 5760-06-2023A Resolution
NO. 5760-06-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE
IV ELEVATED STORAGE TANK
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 Northside IV Elevated Storage Tank
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 $820,000.00 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 27th day of June 2023.
ATTEST:
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Jannette S. Goodall, City Secretary
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MAYOR AND COUNCIL COMMUNICATION MAP
60NSIVEST-NEELS
City of Fort Worth,
Mayor and
DATE: 06/27/23
Texas
Council Communication
LOG NAME: 60NSIVEST-NEELS
SUBJECT
M&C FILE NUMBER: M&C 23-0534
(CD 10) Authorize Execution of an Engineering Agreement with Neel -Schaffer, Inc. in the Amount of $500,701.00 for the Northside IV Elevated
Storage Tank 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 Fiscal Years 2023-2027 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
Authorize execution of an engineering agreement with Neel -Schaffer, Inc. in the amount of $500,701.00 for the Northside IV Elevated
Storage Tank;
Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Northside IV Elevated
Storage Tank Project; and
Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the Northside IV Elevated Storage Tank Project (City Project No. 104291) in the amount of $680,876.00 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:
This Mayor and Council Communication is to authorize the preparation of plans and specifications for the construction of Northside IV Elevated
Storage Tank.
Due to increased development in the Northside IV service area, it is necessary to install an elevated storage tank to provide increased capacity
and delivery reliability to future customers.
Neel -Schaffer, Inc. proposes to provide all the necessary design and construction administration services for a fee of $500,701.00. Staff considers
the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $180,175.00 is required for project management, real property acquisitions, and utility coordination. 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:
60NSIVEST-NEELS
BudgetRevised
Capital
Project
FY2023 CIP
Change
Fund
Name
Appropriations)
Authority
I
(Increase/
FY2023
Name
Decrease)
Budget
Fund 560221104291
CommerciahNorthside
i
Paper
—
IV EST
$0.00
This M&C
[$68:.00
$680,876.00I
I
Funding for the Northside IV Elevated Storage Tank Project is depicted below:
FUND Existing Additional AppropriationsiProjectTotal"
Appropriations��
Paper- 1 $O.0011I $680,876.00) $680,876.00
Fund 560221
Project 11 $0.001$680,876 001 $680,876.00
'Numbers rounded for presentation purposes.
Funding is available in Water Department's W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding
the Northside IV Elevated Storage Tank project.
Business Equity: Neel -Schaffer, Inc. is in compliance with City's Business Equity Ordinance by committing to 10 percent MWBE participation on
this project. The City's MWBE goal on this project is nine percent.
The project is located in COUNCIL DISTRICT 10.
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 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 Northside IV EST project to support the above recommendations and execution of the contract. Prior to any
expenditure being incurred, the Water Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Scott Taylor 7240
Expedited