HomeMy WebLinkAboutResolution 5974-06-2024A Resolution
NO.5974-0d-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SANITARY
SEWER MAINS M-295 AND M-329
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 Sanitary Sewer Mains M-295 and M-
329 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
$11,900,000.00 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 25a' day of June, 2024.
ATTEST:
By; A
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION
60SSM295M329Ul 23-CIRCLEC
City of Fort Worth,
Mayor and
DATE: 06/25/24
Texas
Council Communication
LOG NAME: 60SSM295M329U'I23-CIRCLEC
M&C FILE NUMBER: M&C 24-0608
SUBJECT
(CD 8) Authorize Execution of a Contract with William J. Schultz, Inc. dba Circle C Construction Company, in the Amount of $14,438,269.50 for
Sanitary Sewer Interceptor Improvements M-295 and M-�329, Adopt Attached Resolution Expressing Official Intent to Reimburse Expenditures with
Proceeds of Future Debt, and Adopt Attached 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 a contract with William J. Schultz, Inc, dba Circle C Construction Company, in the amount of $14,438,269.50 for CFA
Sanitary Sewer Interceptor Improvements M-295 and M-329 (City project No. 102152);
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Sanitary Sewer
Interceptor Improvements M-295 and M-329 Units 1, 2 and 3; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the CFA Bucket project (City Project No. P00001) in the amount of $9,932,489.00 and decreasing appropriations in the
Water & Sewer Commercial Paper (City Project No. UCMLPR) by the same amount for the purpose of funding CFA-S.S. Mains M 295 and
M-329 project (City Project No. 102152) and to affect a portion of Water's Contribution to the Fiscal Years 2024-2028 Capital Improvement
Program.
DISCUSSION -
This project was initially being constructed pursuant to a community facilities agreement between the City and Legends of Hanna Ranch, Ltd.
(Developer), City Secretary Contract Number 55841. The contractor abandoned the project and the surety refused to perform pursuant to the
performance bond. The City and Developer have sued the original contractor and the surety. The project was rebid and will be completed as a
capital project. The City will fund the costs for completion of the project and seek reimbursement from the Developer and/or the surety for the
Developer's share of the project costs pursuant to an amendment to the Community Facilities Agreement. The amount of $5,407,718.88
remains appropriated for the projects construction and will be utilized to partially fund this contract.
The project was advertised for bid on April 24, 2024 and May 2, 2024, in the Fort Worth Star -Telegram. On May 23, 2024, the following bids were
received:
contra
Bidder
` __�
d
Total ....
Jimect
400
William J. Schultz, Inc. dba Circle C
$14,438,269.50
Calendar
Construction Company
Days
In addition to the contract cost, $613,172.50 is required for staff costs including project management material testing and inspection
and $288,765.00 is provided for project contingency.
This project will have no impact on the Water Departments 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 (FY), 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 Mayor & Council
Communication will amend the City of Fort Worth's Fiscal Year 2024-2028 Capital Improvement Program as follows:
60SSM295M329U 123-CIRCLEC
Name
Project
Name
FY2024 CIP
Appropriations
Authority
Budget Change
(Increase/Decrease)
Revised
FY2023
Budget
102152
i
56023 -
CFA-
W&S
S.S.
Commercial
Mains
$0.00
This M&C
$9,932,489.00
$9,932,489.00
Paper
M-295
and M-
329
Funding will be budgeted in the UCMLPR project within the Commercial Paper Fund for the purpose of funding the CFA S.S. Mains M-295 and M-
329 project, after the sale of Water and Sewer Bands.
Funding for the CFA S.S. Mains M-295 and M-329 project is depicted below:
Existing
Additional
FUND ��Approprlations
Appropriations �l
Project Total"
Gvt Community
Facilities Agmt—
$14,000.00
$0.00
$14,000.00
Fund 30111
CFA Developer—
Fund 30114
$69,537.23
F
$0.00
$69,537.23
Water/Sewer Bond
2016 — Fund
$167,341.00
$0.00
$167,341.00
56005
W&S Community
Facilities Agmt—
$16,502.34
$0.00
$16,502.34
Fund 56008
Water & Sewer
Bond 2020A—
$1,329.602.00
$0.00
$1,329,602.00
Fund 56017
W&S Rev Bonds
Series 2022—
$8,711,004.00
$0.00
$8,711,004.00
Fund 56020
W&S Commercial
Paper -Fund
$0.00
$9,932,489.00
$9,932,489.00
56023
Project Total 11
$10,307,986.57
$9,932,489.00
$20,240,475.57
*Numbers rounded for presentation purposes.
Business Equity — The Business Equity Division placed a 22% business equity goal on this solicitation/ contract. William J. Schultz, Inc. DBA
Circle C Construction Company, has agreed/ committed to utilize 22% business equity sub -consultant participation for the scope of work, meeting
the City's Ordinance. Any changes in subcontractors will be reviewed by the Business Equity Division.
The project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION CERTIFICATION:
The Director of Finance certifies that funds will be available after the sale of Water and Sewer Bonds in the UCMLPR 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 CFA-S.S. Mains M-295 and M-329 project to support the execution of the amendment to the
engineering contract and the construction contract. Prior to an expenditure being incurred, the Water Department has the responsibility of verifying
the availability of funds. The Water Department (and Financial Management Services) is responsible for the collection and deposit of funds due to
the City.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating_ Business Unit Head: Chris Harder 5020
Additional Information Contact: Walter Norwood 5026