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Home My WebLink AboutResolution 5852-11-2023 A Resolution NO. 5852-11-2023 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE WATER TREATMENT PLANT GENERATORS & EMERGENCY PREPARATION PLAN 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 Water Treatment Plant Generators & Emergency Preparation Plan 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; i 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 $18,150,000.00 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 28`'' day of November 2023. ATTEST: a� yb�i 60p 00000°��" �� r� " O 0k_0C 0BJ ------------------------------ Yas�p0 ao0* Jannette S. Goodall, City Secretary � o0 000000n Q, MAYOR AND COUNCIL COMMUNICATION MAP 60WSGEN&EMERPLAN GENP3-MCDONALD ELECTRIC LLI y '� '� — ♦ -- e .. �.: � i �'' �•. ',fir{ '-: ?,I , . a'° ;,` � � ��. •t I tj"• � i� .. , W;7TH ra W 7TH.ST LLJ t li° Z NORTH HOLLY WATER WATER TREATMENT PLANT i i I� l ism ii CASTER AVE • • ' — lljmm,vv LANCASTER'AVE SOUTH HOLLY WATER f WATER TREATMENT PLANT 1-0 r `/ ,W,DAGGET AVE % W _ / C WENNECA AVE � f� j F—. ;� Lu wro FORT WORT - •r City of Fort Worth, Texas Mayor and Council Communication DATE: 11/28/23 M&C FILE NUMBER: M&C 23-1026 LOG NAME: 60WSGEN&EMERPLAN GENP3-MCDONALD ELECTRIC SUBJECT (CD 9) Authorize Execution of a Contract with C.F. McDonald Electric, Inc.in the Amount of$19,373,469.00 for Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants Project,Adopt Resolution Expressing Official Intent to Reimburse Expenditures and Proceeds of Future Debt Project and Adopt Appropriation Ordinances to Effect a Portion of Water's Contribution to the Fiscal Years 2024-2028 Capital Improvement Program RECOMMENDATION, It is recommended that the City Council: 1. Authorize execution of a contract with C.F.McDonald Electric, Inc.in the amount of$19,373,469.00 for the Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants, Part 3 project(City Project No. 103410); 2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants project; 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water& Sewer Commercial Paper Fund by increasing appropriations in the Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants project(City Project No. 103410)in the amount of$15,126,762.00 and decreasing appropriations in the W&S Commercial Paper project(City Project No. UCMLPR)by the same amount;and 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water&Sewer Gas Lease Capital Project Fund in the amount of$4,850,000.00,from available funds,for the Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants project(City Project No. 103410),to effect a portion of Waters contribution to the Fiscal Years 2024-2028 Capital Improvement Program. DISCUSSION: The February 2021 Deep Freeze caused power failures to Eagle Mountain Water Treatment Plant(EMWTP),the Westside Water Treatment Plant (WSWTP)and affected the North and South Holly Water Treatment Plants,along with power supply and freezing issues at some pump stations. In response to the power outages,the Water Department implemented a series of projects to minimize the effects of future power failures and/or freezing temperatures on Water Facilities. In addition, during the 2021 legislative session,the State of Texas enacted a law, Senate Bill 3(SB3), requiring the submittal of an Emergency Preparedness Plan by March 1,2022. The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a contract with C.F. McDonald Electric, Inc. in the amount of$19,373,469.00 for the Westside Water Treatment Plant Generators and Emergency Preparation Plan for Power Generation at the North and South Holly Water Treatment Plants project(City Project No. 103410).This project, Part 3, provides for the installation of emergency back-up power consisting of generators and electrical switchgear at the North and South Holly Water Treatment Plants. The project was advertised for bid on July 27 and August 3,2023,in the Fort Worth Star-Telegram.On October 19,2023,the following bids were received: Bidder Total Alternate Total Alternate Bid A* Bid B Contract Time C.F McDonald 1,090 Electric,Inc. $19,373,469.00 $19,373,469.00 Calendar _ Days Alterman Group,Inc. $20,460,844.00$20,294,744.00�� Facility Solutions $21,432,480.00$21,342,480.00 Group ACME Electric $24,523,067.79 $24,523,067.79 --- --- L---ji Company *Staff recommends award of contract for Total Alternate Bid A which includes all project components in one cost. In addition to the contract cost, $312,691.00 is required for project management and inspection and $290,602.00 is provided for project contingency. 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 2024-2028 Capital Improvement Program as follows: 60WSGEN&EMERPLAN GENP3-MCDONALD ELECTRIC Budget Revised Capital Project FY2024 CIP Change Authority FY2024 Fund Name Name Appropriations (Increase/ Budget Decrease) 103410 Fund 56022-—WS W&S Gen& $0.00 This M&C $15,126,762.00 $15,126,762.00 Commercial Emer Paper Prep Plan Fund 53004 1 WS10 Water/Sewer Gen& $0.00 This M&C $4,850,000.00 $4,850,000.00 Gas Lease Emer Cap ProI Prep Plan Funding is budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund and currently available in the Unspecified— Gas Lease Rev and Unspecified—All Funds projects within the Water/Sewer Gas Lease Cap Project Fund for the purpose of funding the WS Gen &Emer Prep Plan Project. Funding for the project is depicted below: Fund Existing Additional Project Total* AppropriationsEAppropriations- Fund 56022— W&S Commercial $0.00 $15,126,762.00 $15,126,762.00 Paper Fund 53004— Water/Sewer Gas $0.00 $4,850,000.00 $4,850,000.00 Lease Cap Proj W&S Capital Project Fund $12,814,614.00 $0.00 $12,814,614.00 56002 W&S Rev Bonds Series 2022- $3,792,978.00 $0.00 $3,792,978.00 Fund 56020 W&S Rev Bonds Series 2023- $25,949,327.00 $0.00 $25,949,327.00 Fund 56021 Project Total $42,556,919.00 $19,976,762.00 $62,533,681.00 *Numbers rounded for presentation purposes. Business Equity: C.F.McDonald Electric, Inc.is in compliance with City's Business Equity Ordinance by committing to five percent MWBE participation on this project.The City's MWBE goal on this project is five percent. The project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the W&S Commercial Paper project within the W&S Commercial Paper Fund and in the Unspecified—Gas Lease Rev and Unspecified—All Funds projects within the Water/Sewer Gas Lease Cap Project Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds will be available in the W&S Commercial Paper Fund and the Water/Sewer Gas Lease Cap Project Fund for the WS Gen&Emer Prep Plan project to support the above recommendations and execution of the agreement. Prior to any expenditure being incurred,the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office byj Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: David Townsend 8430