HomeMy WebLinkAboutResolution 5773-06-2023A Resolution
NO. 5773-06-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE FWCC
WATER 7 SEWER RELOCATIONS
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 and the Tarrant Regional Water District ("TRWD") are
coordinating on the Army Corps of Engineers' Central City Flood Control Project, with
the City advancing costs for certain ancillary subprojects such as the relocation of existing
water and sewer infrastructure and TRWD reimbursing such costs in annual installments
correlating to costs of work within that year; and
WHEREAS, the City wishes to retain the ability debt -finance costs of these
subprojects to the extent they are debt -eligible and not otherwise reimbursed by TRWD;
and
WHEREAS, expects to pay expenditures from available funds in connection with
the design, planning, acquisition and construction for the FWCC Water & Sewer
Relocations Project (the "Project") prior to the issuance of obligations by the City that
may finance some or all of the costs of the Project; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City from proceeds of obligation 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 $43,000,000.00 for the purpose of paying eligible
costs, including some or all of 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 June 2023.
ATTEST:
Jannette S. Goodall, City Secretary
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City of Fort Worth,
Mayor and
DATE: 06/27/23
Texas
Council Communication
M&C FILE NUMBER: M&C 23-0542
LOG NAME: 60FWCCP14SSR-SJLOUIS
SUBJECT
(CD 2) Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd. in the Amount of $34,824,041.30 for the Fort Worth Central
City Part 14 — Channel Segment C, Sanitary Sewer Relocations Project, Provide for Project Costs in the Amount of $35,830,946.00, Adopt
Resolution Expressing Official Intent for City to Reimburse Itself, 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 S.J. Louis Construction of Texas, Ltd. in the amount of $34,824,041.30 for the Fort Worth Central City
Part 14 — Channel Segment C, Sanitary Sewer Relocations project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt and/or annual payments
from the Tarrant Regional Water District for the Fort Worth Central City Water & Sewer Relocations project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the Fort Worth Central City Water & Sewer Relocations project (City Project No. 104484) in the amount of $35,830,946.00
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 S.J. Louis Construction of Texas, Ltd. in
the amount of $34,824,041.30 for the Fort Worth Central City Part 14 — Channel Segment C, Sanitary Sewer Relocations.
This project Part 14, provides for sanitary sewer relocations and abandonments as identified on the attached Mayor and Council Communication
Location Map to accommodate future Bypass Channel C by the United States, Army Corps of Engineering for the Fort Worth Central City project.
The project was advertised for bid on April 13 and 20, 2023, in the Fort Worth Star -Telegram. On June 1, 2023, the following bids were received:
Bidders i
Total Bid
Contract Time
S.J. Louis Construction of Texas,
Ltd.
$34824041
,,.30
500 Calendar
Days
Southland Holdings, LLC
$37,606,669.75
In addition to the contract amount $589,016.70 is required for project management, material testing and inspection and $417,888.00 is provided
for project contingencies.
This project will have no impact on the Water Department's operating budget when complete.
This project is anticipated to be repaid from a series of annual reimbursements from the Tarrant Regional Water District (TRWD) as part of the Fort
Worth Central City Water & Sewer Relocations project. In the event any bond -eligible costs are not fully reimbursed by TRWD, those costs would
be 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 payment is received from TRWD and/or debt associated with the unreimbursed
portions of this project is sold, those funds 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:
60FWCCP14SSR-SJLOUIS
Budget
i
Capital
Fund
Project
FY2023 CIP
Authority
Change
Revised
FY2023
Name
Name
Appropriations
(Increase
I
Budget
/ Decrease)
104484 —
56022 -
�FWCC
W&S
Commercial10�
I
Water &
Sewer
$0.0
This M&C!
$35,830,946.00
$35,830,946.00
Paper
Relocations,
Funding for the Fort Worth Central City Part 14 — Channel Segment C, Sanitary Sewer Relocations project is depicted below:
Fund
Existing
Appropriations I
Additional
Appropriations
Project Total*
W&S Commercial
Paper - Fund
56022
$0.00
$35,830,946.00
$35,830,946.00
Project Total
$0.00;
$35,830,946.00i$35,830,946.00i
The sanitary sewer $34,824,041.30 amount of this contract and the sanitary sewer $186,782.00 amount of material testing fees (to be performed
by a geotechnical testing firm) are considered Trinity River Vision (TRV)-related work, which are eligible for funding from Tax Increment
Reinvestment Zone No. 9 (TRVA TIF) pursuant to the TRVA Project Plan. Having met its $26.6 million commitment to the TRV Project, the City will
be reimbursed the sanitary sewer amount of $35,010,823.30 by the TRWD, in accordance with the provisions of the executed Interlocal
Agreement between the City and the TRWD (City Secretary Contract No. 43425, as amended). TRWD has agreed to reimburse for TRVA
completed work on an annual basis, which will provide the City with more timely replenishment of funds. Staff will record a receivable every month
for reimbursable expenses, and the Water Department will be responsible for collecting the full reimbursement from TRWD annually.
*Numbers rounded for presentation purposes.
Business Equity: S.J. Louis Construction of Texas, Ltd, is in compliance with the City's Business Equity Ordinance by committing to 17
percent MWBE participation on this project. The City's MWBE goal on this project is 16 percent.
The project is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently availabe 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 FWCC Water and Sewer Relocations project to support the above recommendations and execution of the
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 bv: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Liam Conlon 6824
Expedited