HomeMy WebLinkAboutResolution 5884-01-2024 (2)A Resolution
NO. 5884-01-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE IV 24
INCH WATER TRANSMISSION MAIN PHASE 1C
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 24 Inch Water Transmission Main Phase IC
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
$2,300,000.00 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 30th day of January 2024.
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Jannette S. Goodall, City Secretary ° °°
A
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/30/24 M&C FILE NUMBER: M&C 24-0100
LOG NAME: 60NSIV24INWTMP1C-TNP
SUBJECT
(CD 10 and ETJ) Authorize Execution of an Engineering Agreement with Teague Nall & Perkins, Inc. in the Amount of $1,142,215.00 for the
Design of the Northside IV 24-inch Water Transmission Main, Phase 1 C, Adopt Resolution Expressing Official Intent to Reimburse Expenditures
and Proceeds of Future Debt and Adopt Appropriation Ordinance 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:
Authorize execution of an Engineering Agreement with Teague Nall & Perkins, Inc. in the amount of $1,142,215.00 for the Design of
Northside IV 24-inch Water Transmission Main, Phase 1 C (City Project No. 105114);
Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Design of the
Northside IV 24-inch Water Transmission Main, Phase 1 C project; and
Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in Design of Northside IV 24-inch Water Transmission Main, Phase 1 C (City Project No. 105114) in the amount
of $1,918,750.00 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 2024-2028 Capital Improvement Program.
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize engineering services for the Design of Northside IV 24-inch Water Transmission
Main, Phase 1 C project. The proposed water transmission main will provide connection between Bonds Ranch Road and the Northside IV
Elevated Storage Tank located near the intersection of US 287 and BUS 287 south of Avondale -Haslet Road. The proposed water transmission
main will provide increased reliability for increasing and future growth and demand in the far North area of Fort Worth.
The scope of services to be provided consists of a route study, hydraulic analysis, the preparation of design plans and specification for the
selected alignment, design survey, geotechnical investigations, and easement document preparation.
Teague Nall & Perkins, Inc., proposes to provide the necessary services for a fee not to exceed $1,142,215.00. Staff considers the proposed fee
to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $776,535.00 is required for project management, real property acquisitions and material testing.
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 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 2024-2028 Capital Improvement Program.
Funding for the Design of Northside IV 24-inch Water Transmission Main, Phase 1 C project is depicted below:
60NSIV36INWTMPl C-TNP
Budget
Capital Fund
Project
FY2024 CIP
Authority
Change
Revised
FY2024
Name
Name
Appropriations
(Increase/
Budget
Decrease)
56022 —
W&S Commercial
Paper Fund
105114 -
NSIV24WTM
P 1 C
$0.00
This M&C
$1,918,750.00
$1,918,750.00
Funding is budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Northside IV
24-irich Water Transmission Main, Phase 1 C project.
Funding for the Design of Northside IV 24-inch Water Transmission Main, Phase 1 C project is depicted below:
Existing
ro riations
pp p �FProjectTota]1-
W&S Commercial
Paper —Fund
56022
$0.00
$1,918,750.00
$1,918,750.00
Project Total
$0.00
:�: $1,918,750.00
$1,918,750.00
*Numbers rounded for presentation purposes.
This project will have no impact on the Water Department's operating budget when complete.
Business Equity: Teague Nall & Perkins, Inc., is in compliance with City's Business Equity Ordinance by committing to 12 percent MWBE
participation on this project. The City's MWBE goal on this project is 12 percent.
The project is located in COUNCIL DISTRICT 10 and ETJ.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the 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 NS IV 24 WTM P1 C 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 W. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Preeti KC 5467