HomeMy WebLinkAboutResolution 6088-05-2025A Resolution
NO. 6088-05-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CFA SANITARY
SEWER MAINS M-295 AND M-329
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 CFA Sanitary Sewer Mains M-295 and M-329 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 $760,000.00 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 131e day of May 2025.
ATTEST:
IM
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION
60SSM296M329U 123CO1-CIRCLEC
City of Fort worth,
Mayor and
Texas
Council Communication
DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0403
LOG NAME: 60SSM295M329U123C01-CIRLCEC
SUBJECT
(CD 8) Authorize Execution of Change Order No.1 in the Amount of $634,945.10 to a Contract with William J. Schultz, Inc. dba Circle C
Construction Company for the Sanitary Sewer Interceptor Improvements M-295 and M-329 Project; 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 Improvements Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of Change Order No. 1 in the amount of $634,945.10 to City Secretary No. 61758, a contract with William J. Schultz, Inc.
dba Circle C Construction Company for Sanitary Sewer Interceptor Improvements M- 295 and M-329 project for a revised contract amount of
$15,073,214.60;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Sanitary Sewer
Interceptor Improvements M-295 and M-329 Units 1,2, and 3; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the CFA Bucket project (City Project No. P00001) in the amount of $634,946.00 and decreasing appropriations in the
Water & Sewer Commercial Paper project (City Project No. UCMLPR) by the same amount for the purpose of funding the CFA-S.S. Mains
M-295 and M-329 project (City Project No. 102152) and to affect a portion of Water's Contribution to the Fiscal Years 2025-2029 Capital
Improvement Program.
DISCUSSION:
On June 25, 2024, by Mayor and Council Communication (M&C) 24-0608, the City Council authorized a construction contract with William J.
Schultz, Inc. dba Circle C Construction Company in the amount of $14,438,269.50 for the CFA-Sanitary Sewer Interceptor Improvements M- 295
and M-329 project.
Change Order No. 1, with a net total increase in the amount of $634,945.10 after deducts, will primarily provide for reconnection of previously
unknown sewer services that were encountered during construction of the new sewer main along with the necessary manholes to convey from
private property, removal of broken pieces of pipe that were left by the previous contractor, and installation of a segment of the project main by
other than open cut (ROTC) in order to maintain an uninterrupted pace of pipe laying and eliminate the need for substantial traffic control on Enon
Road, a major throughfare in the City of Everman. BOTC installation will also eliminate the need for by-pass pumping as the existing sewer main
will be utilized to convey sewage flow.
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 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 preserve the ability of the City to reimburse itself from tax-exempt bond proceeds.
r
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 Mayor & Council
Communication will amend the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program, as follows:
Capital Fund
Project Name
FY2025 CIP
Authority
Budget Change
Revised
FY2025
Name
Appropriations
(increase/Decrease)
Budget
56023 — W&S
Commercial
Paper
102152 -- CFA-
S.S. Mains M-295
and M- 329
$0.00
This M&C
$634,946.00
$634,946.00
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the CFA-S.S. Mains M-
295 and M-329 project.
Funding for the CFA-S.S. Mains M 295 and M-329 project is depicted below:
Fund
Gvt Community Facilities Agmt--
Fund 30111
Existing
Appropriations
$14,000.00
L.
Additional'
Appropriations
$0.00
project Total`
$14,000.00'
F
CFA Developer— Fund 30114
$69,537.23
$0.00
$69,537.23
Water/Sewer Bond 2016 — Fund
56005
F$167,341.00�1
$0.00
$167,341.00
&S Community Facilities Agmt —
Vund 56008
$16,502.34
$0.00
$16,502.34
Water& Sewer Bond 2020A—Fund
56017
$1,329,602.00
$0.00
$1,329,602.00
W&S Rev Bonds Series 2022 -- Fund �56020
$g 711,004.00
$0.001
$8,711,004.0Q
W&S Commercial Paper— Fund
56023 --]
$9,932,489.00
$639,946.00
$10,572,435.00
Project Total
$20,240,475.57
$639,946.00
$20,880,421.57
*Numbers rounded for presentation purposes.
Business Equity - William J. Schultz, Inc. dba Circle C Construction Co. agrees to maintain its initial M/VVBE commitment of 22 percent that it
made on the original contract and extend and maintain that same MMBE commitment of 22 percent to this first change order. Therefore William J.
Schultz, Inc, dba Circle C Construction Co. remains in compliance with the City's MIWBE Ordinance and attests to its commitment by its signature
on the Acceptance of Previous M/WBE Commitment form executed by an authorized representative of its company.
This project is located in COUNCIL DISTRICT 8.
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 CFA-S.S. Mains M-295 and M-329 project to support the above recommendations and execution of the change order. Prior to
an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office b . Jesica McEachem 5804
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Walter Norwood 5026
Expedited