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HomeMy WebLinkAboutResolution 6064-02-2025A Resolution NO.6064-02-2025 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE MARY'S CREEK & WALNUT CREEK LIFT STATION 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 Mary's Creek and Walnut Creek Lift Station 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 $5,600,000.00 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 2 5 th day of February, 2025. ATTEST: By: Jannette S. Goodall, City Secretary MAYOR AND COUNCIL COMMUNICATION N Mary's Creek Water Reclamation Facility Is _I �l k 60MCCLSANDWCLS-CDM } � I 1 �� � U pp O/Alp 041✓ O OLD WEATHERFORD RD o r -I J 7 I!► a- p r 0. S = w u' U U U L'N V y :p7 / f ',tip ` 1k,ti�WWSlJ1J Q Cr a L o w CLIFFp�D�%� o S 7 ST fsa t z VvHiTE ., SETTLEMENT RD3. ;' r �I ! , o �I� -- W 1 w' D 00 a �.. 4 r. (n �,Y �'. Q d s LLi 1 0 "-g ca.. -- v - .- ,,,,0o lANDAL�rsT - CALMONT AVE w I CHAPIN RD t Mary's Creeks t Confluence Lift Station J�1� a L — c r x _ z �\ 11 4MRq/yOf�R� II o Walnut Creek I- . W IH 24 k Lift Station r � �j S W LOOP IH 820 rb i I I 824 - I' �• K�l:h. ALEpO Rp t MERCFpES ST o° ,., ' o FORT WORTH w--'.`� ��� I I CASTi E AVE S City of Fort Worth, Texas Mayor and Council Communication DATE: 02/25/25 M&C FILE NUMBER: M&C 25-0155 LOG NAME: 60MCCLSANDWCLS-CDM SUBJECT (CD 3 and City of Benbrook) Authorize Execution of an Engineering -Agreement with CDM Smith, Inc. in the Amount of $3,745,826.00 for the Mary's Creek Confluence Lift Station and Walnut Creek Lift Station Design 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 CDM Smith, Inc. in the amount of $3,745,826.00 for the Mary's Creek Confluence Lift Station and Walnut Creek Lift Station Design project; 2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the Mary's Creek & Walnut Creek LS project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the Mary's Creek & Walnut Creek Lift Station Design project (City Project No. 104944) in the amount of $4,717,426.00 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 CDM Smith, Inc. in the amount of $3,745,826.00 for the preparation of plans and specifications far Walnut Creek and Mary's Creek Confluence Lift Stations to allow conveyance of wastewater to the proposed Mary's Creek Water Reclamation Facility on the westside of Fort Worth. In addition to the contract amount, $971,600.00 is required for project management, real property acquisitions, utility coordination, and material testing. This project will have no impact on the Water Departments 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 it support of the Water's portion of the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program, as follows: 60MCCLSANDWCLS-CDM Capital Revised Fund Praject FY2025 CIP Authority Budget Change FY2025 Name Name A ppropriations {IncreaselDecrease) Bud et 9 104944 Fund 56023 —Mary's - W&S Creek & $0.00 This M&C $4,717,426.00 $4,717,426.00 Commercial Walnut Paper Creek LS Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Mary's Creek & Walnut Creek LS project. Funding for the Mary's Creek & Walnut Creek LS project is depicted below: Fund Existing Additional Project Total* Appropriations Appropriations Fund 56023 - W&S $0.00� $4,717,�426.00 $4,7171426.00 Commercial Paper Project Total I $0.00 $4,717,426.00 $4,717,426.00 "Numbers rounded for presentation purposes. BUSINESS EQUITY OFFICE: The Business Equity Division placed an 8 percent business equity goal on this solicitation/ contract. CDM Smith, Inc., will be exceeding the goal at 23 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 3 and the City of Benbrook. FISCAL INFORMATION 1 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 Mary's Creek & Walnut Creek LS 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 Managers Office b . William Johnson 5806 Originating Business Unit Head: Chris Harder 5020 Additional_Information_Contact: Suzanne Abbe 8209