HomeMy WebLinkAboutResolution 6019-11-2024A Resolution
NO. 6019-11-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NEW SENDERA
RANCH GROUND 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 Ito pay expenditures in connection with the design,
planning, acquisition and construction for the New Sendera Ground 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
$1,000,000.00 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.
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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 12th day of November 2024.
ATTEST:
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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 24-0998
LOG NAME: 60SENDRARGST-KHA
SUBJECT
(CD 10) Authorize Execution of an Engineering Agreement with Kimley-Ham and Associates, Inc. in the Amount of $679,146.00 for the New
Sendera Ranch Ground Storage Tank Project, Adopt Resolution Expressing Official Intent to Reimburse Expenditures from Proceeds of Future
Debt Project and Adopt Appropriation Ordinance to Effect a Portion of Water's Contribution to Fiscal Years 2025-2029 Capital Improvement
Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an engineering agreement with Kimley-Hom and Associates, Inc. in the amount of $679,146.00 for New Sendera
Ranch Ground Storage Tank project;
2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the New
Sendera Ranch Ground Storage Tank project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the New Sendera Ranch Ground Storage Tank project (City Project No. 105781) in the amount of $809,721.00 and
decreasing appropriations in the 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 Mayor and Council Communication (M&C) is to authorize a contract with Kmley-Hom and Associates, Inc. in the amount of $679,146.00 for
the preparation of plans and specifications for New Sendera Ranch Ground Storage Tank to allow for construction of a five -million gallon ground
storage watertank to meet increasing demands in North Fort Worth.
In addition to the contract amount, $130,575.00 is required for project management, real property acquisitions, utility coordination, and material
testing. This project will have no impact on the Water Department's operating budget when completed.
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, 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 2025-2029 Capital Improvement Program, as follows:
60SENDERARGST-KHA
Capital Fund project Name
Name
Fund 56023 105781-New
W&S Sendera Ranch
Commercial
FY2026 CIP
$0.001
Revised
Authority
Budget Change
FY2025
(increase/Decrease)
Budget
This M&C
$809,721.00
$809,721.00
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the New Sendera
Ranch Ground Storage Tank project.
Funding for the New Sendera Ranch Ground Storage Tank project depicted below:
Fund
Existing
Additional
Project
Appropriations
Appropriations
Total*
Fund 56023 - W&S Commercial
Paper
$0.00
$809,721.00
$809,721.00
Project Total $O.OD $809,721.00 $809,721.00
*Numbers rounded for presentation purposes.
BUSINESS EQUITY OFFICE: The Business Equity Division placed a 12.64 percent business equity goal on this solicitation/ contract. Kimley-
Hom and Associates, Inc., will be exceeding the goal at 16.87 percent, 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 are 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 New Sendera Ranch GST project to support the above recommendations and execution of the agreement. Prior to any
expenditure being incurred, the Water Department has the responsibility to validate the availability of funds.
Submitted for City Managor's Office W. William Johnson 5806
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Dena Johnson 7866