HomeMy WebLinkAboutResolution 6065-02-2025A Resolution
NO.6065-02-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE EASTSIDE
TRASMISSION MAIN IN BEACH STREET
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 Eastside Transmission Main in Beach
Street 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
$2,000,000.00 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.
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 25th day of February, 2025.
ATTEST:
Y
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION MAP
60 EASTSWTM B EAC H ST-PAP E DAWSO N
N
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 02/25/25 M&C FILE NUMBER: M&C 25-0161
LOG NAME: 60EASTSVVTMBEACHST-PAPEDAWSON
SUBJECT
(CD 2, CD 4 and Haltom City) Authorize Execution of an Engineering Agreement with Pape -Dawson Engineers, LLC in the Amount of
$1,214,684.00,forthe Eastside Transmission Main in Beach Street 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 Pape -Dawson Engineers, LLC in the amount of $1,214,684.00 for Eastside
Transmission Main in Beach Street project;
2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the
Eastside Transmission Main in Beach Street project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the Eastside Transmission Main in Beach Street project (City Project No. 105720) in the amount of $1,648,764.00 and
decreasing appropriations in the Commercial Paper project (City Project No. UCMLPR) by the some 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 Pape -Dawson Engineers, LLC in the amount of $1,214,684.00 for
the preparation of plans and specifications for Eastside Transmission Main in Beach Street project. Due to high water demand in North Fort Worth
and our northern wholesale customers, it is necessary to construct the proposed Water main as part of the Holly Pressure to Eastside Pressure
Transfer to meet expected water demands. The water main will extend from the proposed Holly to Eastside II Pump Station which will be located in
the vicinity of Meacham Boulevard 1 North Beach Street intersection to the North Beach Street 1 Western Center Boulevard intersection.' In addition
to design for the new water transmission main, the proposed agreement will also provide design for replacement of approximately 5,125 linear
feet of deteriorated sanitary sewer mains located on North Beach Street and Western Center Boulevard.
In addition to the contract amount, $434,080.00 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 (FY), 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:
60EASTSWTMBEACHST-PAPEDAWSON
Capital
Fund
Name
Project[Appropriations
Name
FY2025 CIP
Authority
Budget Change
(Increase/Decrease)
Revised
FY2025
Budget
Fund 56023
105720-
- W&S
Eastside
Commercial
TM in
$0.00
This M&C
$1,648,764.00
$1,648,764.00
Paper
each
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Eastside
Transmission Main in Beach Street project.
Funding for the Eastside Transmission Main in Beach Street project depicted below:
Existing
Additional
Fund
Ap ropriationsll
Appropriations
project Total"
Fund 56023 - W&S
Commercial Paper
$0.00
$1,648,764.00$1,648,764.00
Project Total
$D.DD
$1,648,764.00
$1,648,764.OD
`Numbers rounded for presentation purposes.
BUSINESS EQUITY OFFICE: The Business Equity Division placed a 12.60 percent business equity goal on this solicitation/contract. Pape -
Dawson Consulting Engineers, LLC, will be exceeding the goal at 24.48 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 DISTRICTS 2, 4 and Haltom City.
FISCAL INFORMATION ! 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 Eastside TM in Beach St 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 Manager's
Office bv.
William Johnson
5806
Oricrtniting
Business Unit
Head:
Chris Harder
5020
Additional Information Contact: Liam Conlon 6824