HomeMy WebLinkAboutResolution 6021-11-2024A Resolution
NO.6021-11-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE TRINITY
RIVER VISION, PHASEI
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, the City expects to pay expenditures from available funds in
connection with the design, planning, acquisition and construction for the Trinity River
Vision, Phase 1 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
$3,200,000.00 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 12' day of November2024. �
I Pi
ATTEST:
By: U
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/12/24 M&C FILE NUMBER: M&C 24-1005
LOG NAME: 60WSSRFWCCS1P10001-CIRCLEC
SUBJECT
(CD 2) Authorize Execution of Change Order No. 1 in the Amount of $465,263.00 to the Contract with William J. Schultz, Inc. dba Circle C
Construction Company for the Fort Worth Central City Project Water & Sanitary Sewer Main Relocations for the Fort Worth Central City Project,
Section 1: Part 10 — Water & Sanitary Sewer Relocations - City Project Trinity River Vision Phase 1, Adopt Resolution Expressing Official Intent to
Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinances to Effect a Portion of Water's Contribution to the Fiscal
Years 202&2029 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council
1. Authorize execution of Change Order No. 1 in the amount of $465,26&00 to City Secretary Contract Number 59387 a contract with William J.
Schultz, Inc. dba Circle C Construction Company for the Fart Worth Central City Project Water & Sanitary Sewer Main Relocations for the Fort
Worth Central City Project, Section 1: Part 10 — Water & Sanitary Sewer Relocations - City Project Trinity River Vision Phase 1 for a revised
contract amount of $5,459,865.00;
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;
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by decreasing
appropriations in the Commercial Paper project (City Project No. UCMLPR) in the amount of $2,698,901.65 and increasing appropriations in
Trinity River Vision, Phase 1 project (City Project No. C00969) by the same amount;
4. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Sewer Capital Legacy Fund by decreasing
estimated receipts and appropriations in the Trinity River Vision, Phase 1 (City Project No. C00969) in the amount of $31,608.79, and
increasing estimated receipts and appropriations in the Unspecified All -Funds project (City Project No. UNSPEC) by the same amount for the
purpose of substituting funding sources and to make funds available for other eligible Water and Sewer projects;
5. Adopt the attached appropriation ordinance decreasing estimated receipts and appropriations in the Trinity River Vision, Phase 1 (City Project
No. C00969) within the Water & Sewer Capital Projects Fund, in the amount of $22,629.00, for the purpose of substituting of funding sources
and to make funds available for other eligible Water and Sewer projects;
6. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water/Sewer Bond 2016 Fund, by
decreasing estimated receipts and appropriations in the Trinity River Vision, Phase 1 (City Project No. C00969) in the amount of $245,930.86,
and increasing estimated receipts and appropriations in the Unspecified All -Funds project (City Project No. UNSPEC) by the same amount for
the purpose of substituting funding sources to make funds available for other eligible Water and Sewer projects;
7. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water & Sewer Bond 2015A Fund by
decreasing estimated receipts and appropriations in the Trinity River Vision, Phase 1 (City Project No. C00969) in the amount of
$1,083,136.00, and increasing estimated receipts and appropriations in the Unspecified All -Funds project (City Project No. UNSPEC) by the
same amount far the purpose of substituting funding sources and to make debt proceeds available for other eligible Water and Sewer projects;
8. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water & Sewer Revenue Bonds Series
2021 Fund by decreasing estimated receipts and appropriations in the Trinity River Visions, Phase 1 (City Project No. C00969) in the amount
of $443,312.00, and increasing estimated receipts and appropriations in the Unspecified All -Funds project (City Project No. UNSPEC) by the
same amount for the purpose of substituting funding sources to make debt proceeds available for other eligible Water and Sewer projects; and
9. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water & Sewer Revenue Bonds Series
2022 Fund by decreasing estimated receipts and.appropriafions in the Trinity River Vision, Phase 1 (City Project No. C00969) in the amount of
$407,022.00, and increasing estimated receipts and appropriations in the Unspecified All -Funds project (City Project No. UNSPEC) by the
same amount for the purpose of substituting funding sources and to make debt proceeds available for other eligible Water and Sewer projects
and to effect a portion of Water's contribution to the Fiscal Years 2025-2029 Capital Improvement Program.
DISCUSSION:
On April 11th, 2023, by Mayor and Council Communication (M&C) 23-0239 the City Council authorized a construction contract with William J. Schultz,
Inc. dba Circle C Construction Company in the amount of $4,994,602,00 for Fort Worth Central City Project Water & Sanitary Sewer Main
Relocations for the Fort Worth Central City Project, Section 1: Part 10 -- Water & Sanitary Sewer Relocations - City Project Trinity River Vision Phase
1.
Change Order No. 1 in the amount of $465,263.00 (Water $55,575.00, Sewer $409,688.00) will provide pay items quantities for the following that are
necessary on the project: the installation of a 411 foot segment of a project sewer main by hand tunneling in lieu of open cut due to unstable soil
material that was encountered during construction on N. Main Street and NE 11 th Street; the reconstruction of a pavement segment with 8-inch
reinforced concrete base and 6-inch asphalt with 11-inch pulverization and 3-inch due to extremely poor condition of the existing pavement; the
removal and replacement of existing storm drain structures and curb and gutter that are in direct conflict in with the project sewer main and the
replacement of a segment of concrete pavement on Main Street that broke apart during sewer main installation. Staff concurs with the contractor's
request for an additional 260 calendar days on the project.
This M&C will fund the part of the contract that is being reimbursed by the Tarrant Regional Water District and decrease appropriations in various
Funds accordingly. The original contract amount is $4,994,602.00 and change order #1 is for $465,263.00 for a total revised amount of
$5,459,865.00. M&C 60Water FY2023 and FY2024 FWCC Reimbursement, in the 10/29/2024 Council Agenda, has reimbursed a total of
$1,587,899.35 for Sewer charges ($571,599.21 from Fund 59607 and $1,016,300.14 from Fund 56005). The City is responsible for $1,173,064.00
of the total Water costs. For a remaining reimbursable amount of $2,698,901.65, which is being appropriated in this M&C out of Commercial Paper.
This project is anticipated to be repaid from a series of annual reimbursements from the Tarrant Regional Water District (TRWD) as part of the Fort
Worth Central City Water & Sewer Relocations project. In the event any bond -eligible costs are not fully reimbursed by TRWD, those costs would be
anticipated to be included in a future revenue bond issue for the Water & Sewer Fund. Available cash within the Water and Sewer portfolio and the
City's portfolio along with the appropriation authority authorized under the Callable Commercial Paper Program (CP) will be used to provide interim
financing for this project until the debt is issued. Once payment is received from TRWD and/or debt associated with the unreimbursed portions of this
project is sold, those funds will be used to reimburse the Water and Sewer portfolio and the City's portfolio in accordance with the attached
reimbursement resolution. Under federal law, debt must be issued within approximately three years in order for these expenses to be reimbursable.
Adoption of the attached resolution does not obligate the City to sell bonds but preserves the ability of the City to reimburse itself from tax-exempt
bond proceeds.
It is the practice of the Water Department to appropriate its CIP plan throughout the Fiscal Year (FY), instead of Wthin the annual budget ordinance, as
projects commence, additional funding needs are identified, and to comply with bond covenants. The actions in the M&C will appropriate funds in
support of the Water's portion of the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program, as follows:
60WSSRFWCCS1 P10C01-CIRCLEC
Current Approp
60WATER FY2023
AND FY2024
FWCC REIMB
60WSSRFWCC
SIP1000I-CIRCLEC
60SWM FWCC
GRAND AVE
CONSTRUCTION
CO2WATER-SJL
Total Approp
56002 W&S Capital Projects
r$ 2,457,887.001
$ 8,466,851.96
$ (22,629.00)11
$ 10,902,109.96
56005 Water/Sewer Bond 2016 11
$ 6,855,400.00
$ (4,745,941.62)
$ (245,930. 66)
$ 1,863,527.52
56007 Water & Sewer Bond 2015A J
56019 W&S Rev Bonds Series 2021 11$
56020 W&S Rev Bonds Series 2022 11
$ 6,167,422.45
443,312.00
$ 407,022.00
$ (2,249,571.96)
$ (1,083,136.00)
$ (443,312.00)
$ 2,834,714.49
$ -
56023 W&S Commercial Paper 11
$ 1,518,400.00
$ (777,632.61)
$ 2,698,901.65
$ 253,192.00
$ 3,692,861.04
39007 Specially Funded Projects
$ 9,852,657.94
$ 5,852,657.94
59601 Water Capital
$ 14,404,708.40
$ (7,750.00)
$ 14,396,958.4011
59607 Sewer Capital Legacy
$ 7,769,673.12
$ (608873.21)11$
(31,608.79)
$ 7,129,191,12
$ 45,876,482.9111
$ 77,082.56
$ 465,263.00
$ 263,192.00
$ 46,672,020.47
Funding is budgeted in the Trinity River Vision, Phase 1 project within various Funds and in the Commercial Paper project with in the Water & Sewer
Commercial Paper Fund for the purpose of funding the Trinity River Vision, Phase 1.
Funding for Trinity River Visions, Phase 1 are depicted below.
Budget
Budget
Budget Change
Change
Change
(Inc/Dec)
Capital
Project
FY2025 CIP
(Inc/Dec)
60SWM FWCC
Revised
Fund Name
Name
Appropriations
Authority
60WATER
60WSSRFWCC
GRAND AVE
FY2025
FY2023 AND
S1910001-
CONSTRUCTION CO2
Budget
FW2024
FWCC REIMB
CIRCLE C
WATERSJL
56002-
C00969
Water &
—Trinity
M&C 60WATER FY2023
Sewer
Capital
River
Vision,
$0.00
AND FY2024 FWCC REIMB
$8,466,851.96
$8,466,851.96
Projects
Phase
Recom #3
Fund Ill
M&C 60
WSSRFWCCSI P10001-
($22,629.00)
($22,629.00)
CIRCLE C
C00969
56005 —
—Trinity
M&C 60WATER FY2023
Water/Sewer
River
Vision,
$0.00
AND FY2024 FWCC REIMB
($880,824.03)
($880,824.03)
Bond 2016
Phase
Recom 95
1
M&C 60WATER FY2023
$0.00
AND FY2024 FWCC REIMB
L($3.865.117.59)
($3,865,117.59)
Recom #5
M&C 60
WSSRFWCCS1 P10001-
($245,930.86)
($245,930.86)
CIRCLE C
C00969
56007 --
--Trinity
M&C 60WATER FY2023
Water &
River
$0.00
AND FY2024 FWCC REIMB
($2,249,571.96)
($2,249,571.96)
Sewer Bond
Vision,
Recom #6
2015A
Phase
1
M&C 60
WSSRFWCCSI P10001-
($1,083,136.00)
($1,083,136.00)
CIRCLE C
56019 -
M&C 60
W&S Rev
WSSRFWCCS1P10001-
($443,312.00)
($443,312.00)
Bonds
CIRCLE C
Series 2021
020-W&S
M&C 60
v Bonds
WSSRFWCCS7 P10001-
($407,022.00)
($407,022.00)
Series 2022
CIRCLE C
C00969
56023 —
Trinity
M&C 60WATER FY2023
Commercial
River
Vision,
$0.00
AND FY2024 FWCC REIMB
($777,632.61)
($777,632.61)
Paper
Phase
Reco m #4
1
M&C 60
WSSRFWCCS1 P10001-
CIRCLE C
$2,698,901.65
$2,698,901.65
60SWM FWCC GRAND AVE
CONSTRUCTIONCO2WATER-
$253,192.00
$253,192.00
SJL
C00969
IM&C
59601—
Trinity
River
60WATER FY2023
Water
Vision,
$0,00
AND FY2024 FWCC REIMB
($7,750.00)
($7,750.00)
Capital
Phase
Recom #7
1
C00969
59607 —
Trinity
M&C 60WATER FY2023
Sewer
River
$0.00
AND FY2024 FWCC REIMB
($37,274.00)
($37,274.00)
Capital
Vision,
Recom #8
Legacy
Phase
1
M&C 60WATER FY2023
AND FY2024 FWCC REIMB
($571,599.21)
($571,599.21)
Reoom #8
M&C 60
WSSRFWCCSI P10001-
($31,608.79)
($31,608.79)
CIRCLE C
$77,082.ql
$465,263,nnL—$253,192-001
$795,537.56
A portion of the water line in the amount of $55,575.00 of this Change Order is considered Trinity River Vision (TRV)-relocated work. The sanitary
sewer $409,688.00 amount of this Change Order is considered (TRV)-related work, are eligible for funding 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
water line amount of $81,175.00 and the sanitary sewer amount of $4,205,626.00 by Tarrant Regional Water District (TRWD) on an annual basis, in
accordance with provisions of the executed Interiocal Agreement between the City and the TRWD (City Secretary Contract No. 43425 as amended).
The TRV Program Manager in the FW Lab Department will be responsible for collecting the full reimbursement from TRWD at the end of each Fiscal
Year.
*Numbers rounded for presentation purposes.
Business Equity -- William J. Schultz, Inc. dba Circle C Construction Company, has agreed/committed to maintain its initial Business Equity
participation commitment of 12.13 percent that was made on the original agreement. William J. Schultz, Inc, dba Circle C Construction Company, has
also agreed to commit to all prior change orderls up to and inclusive of this Change Order No. Therefore, William J. Schultz, Inc. dba Circle C
Construction Company, remains in compliance with the City's Business Equity Ordinance and attests to its commitment by its signature on the
Acceptance of Previous MNIBE Commitment form executed by an authorized representative of its company.
This project is located in COUNCIL DISTRICT 2.
FISCAL LNFORMATION_!_CERTIFICATION:
The Director of Finance certifies that funds are available in the Commercial Paper project within the W&S Commercial Paper Fund and in the Trinity
River Vision, Phase 1 project within W&S Capital Projects, Water/Sewer Bond 2016, Water & Sewer Bond 2015A, W&S Rev Bonds Series 2021,
W&S Rev Bonds Series 2022 and Sewer Capital Legacy Funds, 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, for the Trinity River Vision, Phase 1 project to support the
above recommendations and execution of the change order. Prior to any expenditures being incurred, the Water Department has the responsibility of
verifying the availability of funds.
Submitted for City Manager's Office by: William Johnson 5806
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Liam Conlon 6824