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Home My WebLink AboutResolution 5921-03-2024A Resolution NO.5921-03-2024 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 $3,800,000.00 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 2601day of March 2024. ATTEST: IN Jannette S. Goodall, City Secretary Sao �aa. "dX Q MAYOR AND COUNCIL COMMUNICATION MAP 60FWCCWSSR-KHA W� Sm `rr Zy COUNCIL DISTRICT 2 PROPOSED fib -IN & 12-IN ,��\0 . _ �` r ■°\ `� SANITARY SEWER AND ? ■ ■ '�'� o 12-IN WATER LINE Ri LOCANORTH BYPASS TION M Gsznr3o aVF. CHANNEL VimSST v0�y W R .• . +:. LISACECENTRAL o t sF(AMF10CK AVEti6�, ♦ CITY PROJECT 'r PROPOSED 24-IN WATER LINE CULLEu ST, PROPOSED 66154-IN Spy _ RELOCATION SANITARY SEWER �F2 ST CALVERT ST O �p TILLAR ST---- S �iF' ■ ; 0 WHIILSLTILUAENTrRD w u- 00 WHITMORE ST �°j M EIF@ L U i� �l q - �, WIIVGATE gT - ti s ci( f 4TH ST _._.. SOUTH BYPASS � - —' -- PROPOSED CHANNEL SANITARY SEWER N y 6TH WT. - W 7TH S H $ �_ - - T COUNr T DISTRICT 7r i'` r 10TH ST-MI `off\E � ,� � � >:.•.„ ,, ��, � 1 COUNCIL, GQ.CTQ,•, y Ti��;Qiy�.�rs.�.,�1-Yf «"`=-.i„ ,; � �5 S )�. `t „ �—~- Y: w_, -�,.�„ 'trDI5TKICT�9� cTW LAtJCASTE R AV E . }ti" K ry LANCASTER AVE Zfj ice, , `' �� 'f ►.; „�.a, � �� {I 4 p l R ,arm i7 Q 5 z O Otte Gar FoRT Wo t (7J COOPERST City of Fort Worth, Mayor and DATE: 03/26/24 Texas Council Communication LOG NAME: 60FWCCWSSR-KHA SUBJECT M&C FILE NUMBER: M&C 24-0256 (CD 2 and CD 9) Authorize Execution of an Engineering Agreement with Kimley-born Associates, Inc., in the Amount of $2,448,100.00 for Fort Worth Central City Water and Sanitary Sewer Relocations, 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: 1. Authorize execution of an engineering agreement with Kimley-Hom Associates, Inc., in the amount of $2,448.100.00 for the Fort Worth Central City Water and Sanitary Sewer Relocations (City Project No. 104484); 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 & Sewer Commercial Paper Fund by increasing appropriations in Fort Worth Central City Water and Sanitary Sewer Relocations, (City Project No. 104484) in the amount of $3,181,450.00 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: With the receipt of Federal funding, the United States Army Corps of Engineers (USAGE) is in the process of finalizing plans for the construction of the north and south bypass channels for the Fort Worth Central City flood control project. It is necessary to relocate the conflicting existing public water and/or sanitary sewer mains as indicated on the following streets or easements: STREET FROM TO SCOPE OF WORK COUNCIL DISTRICT White N. University Drive Settlement Jacksboro Highway Water/Sewer CD 21CD 9 Road Easement north of West Jacksboro Fort Worth Western Fork Trinity Highway Railroad right -of- Sewer CD 2 River way Easement North Bank Southeasterly 1,700 east of West feet, then easterly of Henderson Fort Trinity 850 feet, then Sewer CD 9 Street River Southeasterly 1,125 feet Easement Southwesterly 2,650 south of south 350 feet feet then Westerly bank of Clear north of Henderson 250 feet then Water/Sewer CD 9 Fork Trinity Street Southwesterly 1325 River feet The proposed scope of services consists of final design and advertise Part 13 Bypass Channel Segment D; Conceptual, preliminary, University Drive, bid phase services for Part 5; 13, construction phase services for Part 14 Bypass Channel Segment C; right-of-wayl easement services, design survey, subsurface utility exploration, permitting and program management for the Panther Island Development. Staff will request City Council approval for additional phases via future amendments to this agreement as work progress on the Fort Worth Central City Water and Sanitary Sewer Relocations project. Kimley-Hom and Associates, Inc., proposes to provide the negotiated services for a fee in the amount of $2,448,100.00. Staff considers the fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount $733,350.00 (Water: $175,830.00; Sewer: $557,520.00) is required for project management, utility coordination, real property acquisition and material testing. 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 forthese 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 2024-2028 Capital Improvement Program, as follows: Funding for the Fort Worth Central City Water and Sanitary Sewer Relocations is depicted below: 60FWCCWSSR - KHA Capital Fund Project Name FY2024 CIP Appropriations Authority Budget Change (Increaseffiecrease) Revised FY2024 [:Budget Name W&S 104484 - Commercial FWCC Paper-- Water& $0.00 This M&C $3,181,450.00 $3,181,450.00 Fund 56022 Sewer Relocations Funding forthe FWCC Water & Sewer Relocations Project is depicted below: Fund Existing �Approprlatlonsl Additional Appropriations Project Total* W&S Commercial Paper— Fund 56022 $35,830,946.00 $3,181,450.00 $39,012,396.00 Project Total $35,830,946.00 $3,181,450.00 $39,012,396.00 *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 Fort Worth Central City Water and Sanitary Sewer Relocations project. Out of the $2,448,100.00 amount, $2,029,780.00 (Water: $407,945.00; Sewer $1,621,835.00) is considered Trinity River Vision (TRV)-related work, which is eligible forfunding 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 amount of $2,029,780.00 by the Tarrant Regional Water District (TRWD), in accordance with the provisions of the executed Interlocal Agreement between the City and the TRWD (City Secretary Contract No. 43425, as amended). Staff will record a receivable every month for reimbursable expenses and the FWCC Program Manager in the FW Lab Department will be responsible for collecting the full reimbursement from TRWD at the end of each fiscal year. Business Equity: Kimley-Horn and Associates, Inc., is in compliance with the City's M/WBE Ordinance by committing to 10 percent M/WBE participation on this project. The City's M/WBE goal on this project is 10 percent. This project is located in COUNCIL DISTRICTS 2 and 9 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 FWCC Water & Sewer Relocations project. Prior to an expenditure being incurred, the Water Department have the responsibility of verifying the availability of funds. Submitted for City Manager's Office by. Femando Costa 6122 Ori ina i Business Unit H Chris Harder 5020 Additional Information Contact: Liam Conlon 6824