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Home My WebLink AboutResolution 6072-03-2025A Resolution NO.6072-03-2025 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE FWCC WATER & SEWER RELOCATIONS 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, expects to pay expenditures from available funds in connection with the design, planning, acquisition and construction for the FWCC Water & Sewer Relocations 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 $293,000.00 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 Iater 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 25" day of March2025. ATTEST: Jannette S. Goodall, City Secretary MAYOR AND COUNCIL COMMUNICATION MAP 60FWCCP14SSRC01-SJLOUIS # 0 01 Uzi ca O ♦ �r,� ',� • ' 4 co 9 + ,.. ,� ,. a a O AN 14 4 y #. r00 3. Cf ~� �rm...r�tiEXISTING SANITARY MAIN ✓� ; •Y � ra ` r 1 r S EXISTING ANITARY r SEWER MAIN TO r �.• a BE ABANDONED Oslo rr�r� PROPOSED SEWER �'Q� �•, j EXISTING SANITARY MAIN RELOCATION Oo. SEWER MAIN + bn \ cl SHAMROCKAVE—� . Ab4* CLILLENST iTt i • Y � � -�i F-.r ? lyf-..3 i�r+�r.�■ U .CALVERTST a L�- EXISTING SANITARY y,F� - SEWER MAIN TO r TTIMAWS- �° BE ABANDONED f d. 0 F FoRTWORTH ,WHITE•SETTLEMENTRD 0- — J - _... .—.. Q - . r x _ rr rr rrlr E ` l i �1 w U I r x a 14r�r.lrrr cy L. rr : !1J r><r N ■ _I .�j;` 4• City of Fort Worth, Texas Mayor and Council Communication DATE: 03125/25 M&C FILE NUMBER: M&C 25-0268 LOG NAME: 60FWCCP14SSRC01-SJLOUIS SUBJECT (CD 2) Authorize Execution of Change Order No. 1 in the Amount of $244,271.03 to a Contract with S.J. Louis Construction of Texas, LTD, for the Fort Worth Central City Part 14- Channel Segment C, Sanitary Sewer Relocation, Adopt Resolution Expressing Official Intent for the City to Reimburse Itself with Proceeds of Future Debt and/or Payments from the Tarrant Regional Water District for the Fort Worth Central City Water & Sewer Relocations Project, and Adopt Appropriation Ordinance to Effect a Portion of Water's Contribution to the Fiscal Years 2025-2029 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Change Order No. 1 in the amount of $244,271.03 to City Secretary No. 59847 a contract with S.J. Louis Construction of Texas, LTD for the Fort Worth Central City Part 14- Channel Segment C, Sanitary Sewer Relocation for a revised contract amount of $35,068,312.33; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt andlor annual payments from the Tarrant Regional Water District for the Fort Worth Central City Water and Sewer Relocations project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by decreasing appropriations in the Commercial Paper fund (City Project No. UCMLPR) in the amount of $244,272.00 and increasing appropriations in the Fort Worth Central City Water and Sewer Relocations project (City Project No. 104484) by the same amount to effect a portion of Waters contribution to the Fiscal Years 2025-2029 Capital Improvement Program. [DISCUSSION: On June 27rh, 2023 by Mayor and Council Communication (M&C) 23-0542, the City Council authorized a construction contract with S.J. Louis Construction of Texas, LTD in the amount of $34,824,041.30 for Fort Worth Central City Part 14- Channel Segment C, Sanitary Sewer. Change Order No. 1 in the amount of $244,271.03 will provide for sanitary sewer main and manhole rim elevations between stations 1+00 and 7+00 to accommodate future Channel grading by the United States Army Corps of Engineers. The proposed future grades were unknown prior to advertising the project for bid. 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 (FWCC) 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 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. Appropriations for the Fort Worth Central City Part 14- Channel Segment C, Sanitary Sewer in the FWCC Water and Sewer Relocations project is depicted below: Capital Fund Project FY2025 CIP [Appropriation Budget Change Revised Name Name s Authority (Increase / FY2025 Decrease) Budget L602.3 - 104484 -- W&S FWCC Commercial Water & $0.00 This M&C $244,272.00 $244,272.00 Paper Sewer Relocations Funding for the Fort Worth Central City Part 14- Channel Segment C, Sanitary Sewer Relocations in the FWCC Water and Sewer Relocations Project is depicted below: Fund Existing Appropriations Additional Appropriations Project Total* W&S Commercial Paper- Fund $27,116,775.77 $244,272.00 $27,361,047.77 56023 W&S Capital Projects — Fund $11,895,620.23 $0.00 $11,895,620.23 56002 Project Total $39,012,391.00 $2",272.00 $39,256,668.o0 The sanitary sewer $244,271.03 amount of this Change Order is considered Trinity River Vision (TRV)-relocated work, which 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 sanitary sewer amount of $244,271,03 by Tarrant Regional Water District (TRWD) upon completion, in accordance with provisions of the executed Interlocal 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. Business Equity— S.J. Louis Construction of Texas, LTD agrees to maintain its initial MNVBE commitment of 17 percent that it made on the original contract and extend and maintain that same MMBE commitment of 17 percent to this first change order. Therefore S.J. Louis Construction of Texas, LTD remains in compliance with the City's MNVBE Ordinance and attests to its commitment by signature on the Acceptance of Previous MNVBE Commitment form executed by an authorized representative of its company. This project is located in COUNCIL DISTRICT 2. FISCAL, INFORMATION ! 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 FWCC Water & Sewer Relocations project to support the approval of the.above recommendations and execution of the change order. Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office b . Jesica McEachern 5804 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Liam Conlon 6824