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Home My WebLink AboutResolution 6010-10-2024A Resolution NO. 6010-10-2024 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE IV ELEVATED STORAGE TANK 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 Elevated Storage Tank 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 $7,180,000.00 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 151h day of October 2024. ATTEST: R Jannette S. Goodall, City Secretary MAYOR AND COUNCIL COMMUNICATION MAP 60NSIVEST-LANDMSI _ -E STATE HIGHWAY 114 - --. ��----^`E STATE HIGHWAY.114.____��_-- W cl ; c� t Q w O {SO Ou .> '[A IN PRIVATE ROAD 4907 — Iq.Mhrwrf PRIVATE ROAD 4906 tvywfh i'F'i.� i•Fc .r. I ..— J .��il a• f __ __ 5r'. PRIVATE ROAD 4909 f h L COUNTY ROAD 4840 co C4 ` - 67 d Q O Lli a' (J1 sco +� G � OOG Z Z I , O �y W rUKI QRT � 1 PROPOSED NORTHSIDE IV ELEVATED STORAGE TANK City of Fort worth, Mayor and DATE: 10/15/24 Texas Council Communication LOG NAME: 60NSIVEST-LANDMSI SUBJECT M&C FILE NUMBER: M&C 24-0865 (CD 10) Authorize Execution of a Contract with Landmark Structures I, LP in the Amount of $5,371,000.00 for Northside IV Elevated Storage Tank Project, Provide for Project Costs for a Project Total in the Amount of $5,990,228.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinance to Effect a Portion of Water's Contribution to the Fiscal Years 2025-2029 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a contract with Landmark Structures I, LP in the amount of $5,371,000.00 for the Northside IV Elevated Storage Tank project; 2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Northside IV Elevated Storage Tank project; and 3. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in Northside Elevated Storage Tank project (City Project No. 104291) in the amount of $5,990,228.00 and decreasing i 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 2025-2029 Capital Improvement Program. DISCUSSION: This project provides for the construction of an elevated water storage tank to provide capacity and delivery reliability to customers in the Northside IV Service area. Construction of the project was advertised for bid on July 18 and July 25, 2024 in the Fort Worth Star -Telegram. On August 15, 2024 the following bids were received: Bidder 7ota1 Alternate 1 Total Alternate 2 Contract Time Phoenix Fabricators & Erectors, LLC* $5,284 000.00 ' $5,418,000.00 L11 Landmark Structures I, LP $5,286,000.00 $5,371,000.00L!a1end]]aa 4 *The bid submitted by Phoenix Fabricators & Erectors, LLC has been determined to be non -responsive due to failure to submit the required MA BE documentation within the required time period after bid submittal. The project was advertised with two alternates with the City reserving the right to award contracts to the respective low bidder of either Total Alternate 1 or Total Alternate 2. Staff recommends the award of the combined project to Landmark Structures 1, LP in the amount of $5,371,000.00. In addition to the contract cost, $404,388.00 is required for project management, material testing, inspection, and $214,840.00 is provided for project contingency. This project will have no impact on the Water Department operating budget when complete. Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority authorized under 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 Capital Improvement Program (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 Department's portion of the City of Fort Worth's Fiscal Year 2025-2029 Capital Improvement Program. 60NSIVEST-LANDMSI Capital Fund Project[Appropriations Name FY2025 CIP Authority Budget Change (IncreaselDecrease) Revised FY2025 Name Budget W&S$0.00 L This M&C $5,990,228.00 $5,990,228.00 Funding is budgeted in the Commercial Paper Project within the W&S Commercial Paper Fund for the purpose of funding the Northside IV Elevated Storage Tank project. Funding for the Northside IV Elevated Storage Tank project is depicted below: Fund Existing Appropriationsll Additional Appropriations project Total' Fund 56022- $680,876.00 $0.00 $680,876.00 Commercial Paper W&S Commercial Paper Fund 56023 $0.00 $5,990,228.00 $5,990,228.00 Project Total 11 $680,876.00 $5,990,228.00 $6,671,104.00 *Numbers rounded for presentation purposes. Business Equity: The Business Equity Division placed a 6,65 percent business equity goal on this solicitation/contract. Landmark Structures I, LP., has agreed/committed to utilize 6.86 percent business equity subcontractor participation for the scope of work, meeting the City's Business Equity Ordinance. Any changes in subcontractors will be reviewed by the Business Equity Division. The project is located in COUNCIL DISTRICT 10. FISCAL INFORMATION I CERTIFICATION The Director of Finance certifies that funds will be 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 North side IV EST project to support the above recommendations and execution of the construction contract Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office byC Fernando Costa 6122 Originating Business_ Unit_ Head: Chris Harder 5020 Additional Information Contact Scott Taylor 7240