HomeMy WebLinkAboutResolution 6075-04-2025A Resolution
NO.6075-04-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE
TREATMENT PLANT III 30 INCH WATER TRANSMISSION MAIN
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 Westside Treatment Plant III 30 Inch
Water Transmission Main 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
$9,300,000.00 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 8a` day of April 2025.
ATTEST:
By:
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION MAP
60WS11136INWATERMPHASE2-MOUNTAINC
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/08/25 M&C FILE NUMBER: M&C 25-0289
LOG NAME: 60WESTSIDE ]]I WATERMAINP2-MOUNTAINC
SUBJECT
(CD 3 and CD 7) Authorize Execution of a Contract with Mountain Cascade of Texas, LLC in the Amount of $7,086,991.00 for Westside Treatment
Plant III 30" Water Transmission Main Project Phase 2, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of
Future Debt, 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 a contract with Mountain Cascade of Texas, LLC in the amount of $7,086,991.00 for the Westside Treatment Plant II]
30" Water Transmission Main project (City Project No. 102688) Phase 2;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside Treatment
Plant III 30" Water Transmission Main project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by decreasing appropriations in
the W&S Commercial Paper project (City Project No. UCMLPR) in the amount of $7,787,217.00 and increasing appropriations in the
Westside Treatment Plant 11130" Water Transmission Main project (City Project No.102688) by the same amount to effect a portion of
Water's Contribution to the Fiscal Years 2025-2029 Capital Improvement Program.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a contract with Mountain Cascade of Texas, LLC in the
amount of $7,086,991.00 for the Westside Treatment Plant Ill 30" Water Transmission Main Phase 2.
The project was advertised for bid on November 20 and 27, 2024, in the Fort Worth Star -Telegram. On January 9, 2025, the following bids were
received:
Bidders
Total Bid
Contract
Time
430
Mountain Cascade of Texas, LLC
$7,086,991.00
Calendar
Days
S. J. Louis Construction of Texas, Ltd.
$7,741,213.00IF
Thalle Construction Company, Inc.
$8,194,942.00�
William J Schultz Inc. dba Circle C
Construction Company
$8,229,118.00'
1[
In addition to the contract cost, $416,746.00 is required for project management and inspection and $283,480.00 is provided for project
contingency.
This project will have no impact on the Water Department's operating budget when complete.
This project is 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 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, the
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 amend the City of
Fort Worth's Fiscal Year2025-2029 Capital Improvement Program as follows:
60WESTSIDE III WATERMAINP2- MOUNTAINC
Capital
Fund
Project
Name
FY2025 CIP
Appropriations
Authority
Budget Change
(lncreaselDecrease)
Revised
FY2025
Name
Budget
56023-
W&S
Commercial
102688 —
WS
Treatment
$0.00
This M&C
$7,787,217.00
$7,787,217.00
Paper
Plant III
30 WTM
- Funding for the WS Treatment Plant III 30" WTM project is depicted below:
Existing
Additional
Fund 11
Appropriations
Appropriations
Project Total`
W&S Commercial
Paper -Fund
$0.00
$7,787,217.00
$7,787,217.00
56023
W&S Rev Bonds
Series 2023- {
$21,125,743.00
$0.00$21,125,743.00
Fund 56021
W&S Rev Bonds
Series 2021 -
$2,845,105.00
$0.00
$2,845,105.00i
Fund 56019
Project Total
$23,970,848.00
$7,787,217.00
$31,758,065.00
*Numbers rounded for presentation purposes.
Funding is budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the
Westside Treatment Plant III 30" Water Transmission Main project.
Business Equity. Business Equity placed a 17.46 percent business equity goal on this project. Mountain Cascade of Texas, LLC, is committing
to 8.04 percent MWBE participation, and Good Faith Effort (GFE) with supporting documentation was submitted, which is in accordance with 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 7.
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that funds are currently available in the W&S Commercial Paper project within the W&S Commercial Paper Fund
and upon approval of the above recommendations and adoption of the appropriation ordinance, funds will be available in the W&S Commercial
Paper Fund for the WS Treatment Plant III 30 WTM project to support the approval of the above recommendations and execution of the
construction contract. Prior to an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office by: Jesica McEachem 5804
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Walter P Norwood 5026