HomeMy WebLinkAboutResolution 6029-12-2024A Resolution
NO. 6029-12-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE III
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 III 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 $11,600,000.00
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 10"day of December2024.
ATTEST:
By:
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION
60NSIIIEST-LANDMSI
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PROPOSED NORTHSIDE 1111
ELEVATED STORAGE TANK
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/10/24 M&C FILE NUMBER: M&C 24-1131
LOG NAME: 60NSIIIEST-LANDMSI
SUBJECT
(CD 10) Authorize Execution of a Contract with Landmark Structures I, LP in the Amount of $8,968,000.00 for Northside I II Elevated Storage Tank
Project, Provide for Project Costs for a Project Total in the Amount of $9,687,036.00, Adopt Resolution Expressing Official Intent to Reimburse
Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinance to Effect a Portion of Watees 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 $8,968,000.00 for the Northside [II Elevated Storage Tank
project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Northside III
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 III Elevated Storage Tank project (City Project No. 104290) in the amount of $9,687,036.00 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 2025-2029 Capital Improvement Program.
DISCUSSION:
This project provides forthe construction of an elevated waterstorage tank to provide capacity and delivery reliability to customers in the Northside
III Service area.
Construction of the project was advertised for bid on August 29, 2024 and September 3, 2024 in the Fort Worth Star -Telegram. On October 10,
2024, the following bid was received:
Bidder Amount contract Time
Landmark Structures I, LP-71 $8,968,000.0:0]1 540 Calendar Days
In addition to the contract cost, $449,996.00 is required for project management, material testing, inspection, and $269,040.00 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 Mayor and Council Communication 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.
60NSIIIEST-LANDMSI
Capital
Fund
Name
Project
Name
FY2025 CIP
Appropriations
Authority
Budget Change
(IncreaselQecrease)
Revised
FY2025
Budget
E56023-
W&S14290-
Northside
$0.00
This M&C
$9687,036.00
Ill EST
Funding is budgeted in the Commercial Paper Project within the W&S Commercial Paper Fund for the purpose of funding the Northside III
Elevated Storage Tank project.
Funding for the Northside III Elevated Storage Tank project is depicted below.
Fund
Existing
Additional
Project Total*
Appropriations'
Appropriations
Water Impact Fee
— Fund 56003
$502,410.00
$0.00
$502,410.00
W&S Commercial
Paper Fund 56023
$0.00
$9,687,036.00Fs9,687.036,
Project Total 11
$502,410.OK
$9,687,036.00
$10,189,448.00
*Numbers rounded for presentation purposes.
The Business Equity Division placed a 6.65 percent business equity goal on this solicitation/contract. Landmark Structures I, L.P., has
agreed/committed to utilize 7.37 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 1 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 Northside III 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 by: William Johnson 5806
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Scott Taylor 7240