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Home My WebLink AboutResolution 6091-05-2025 (2)A Resolution NO. 6091-05-2025 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE HOLLY TO EASTSIDE II BOOSTER PUMP STATION AND GROUND STORAGE TANK 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 Holly to Eastside II Booster Pump Station and Ground Storage -Tank 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 $2,660,000.00 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 13' day of May 2025. ATTEST: . � p 0�Qooa000aoQ%il0 p 0 °_.UO � Jannette S. Goodall, City Secretary ¢� o0 0 F c MAYOR AND COUNCIL COMMUNICATION MAP 60HOLLY TO EASTSIDEII PS AND GST-KHA HFMI.00K a ❑ ` QO THISTLEDOL' N DR 7 CHEST' ST v cO r WOODSIOCK rm I * 1 NUT S T LONGLEAF LN WESTERN CENTER BLVD ttiESTERN CENTER BLVD c c m _ FAIRWAY CROSSING DR (;OODNVC,IIT Clf; OR 1`7 LJ �N l7 VLJ��TJ CY.ILJ f F010 Id Uf I UR I SILVNO ER u� rr RANNIR L)R I'. T�`/��Fp`Iryf D _"��Y ,�„,�„ •- Q 7-1 BLACK C)f• -_ FSOIANO UIt WHITE t_I EF-; nF GLENEAGLES CIR p - Ey �t�p ASHLEY CR i 6E� I �" y DANAiLYNN I)1: BRIGHTFIELU RD FOSSIL TANGLEWOOD�DR yam` z CREtSTW t0D DR % LAKEFRONT DR w M Z I �? SANDSHELL DR w NORTHEAST LOQp 820 FWY ENDICOTT AVE � I w 1 4FANACROSS bR w a -"q:" z tiP VELA LN ° NORTHER CRp55 R F 3 �GLENV4EW DR 0 _C L AY3'�AV m 7 Fropo�d PUrp Stalfon z (round Storoge Tank Slte MEACHAM BLVD FORT WORTH, lit 91 Ill City of Fort Worth, Texas Mayor and Council Communication DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0413 LOG NAME: WHOLLY TO EASTSIDEII PS AND GST-KHA SUBJECT , (CD 2) Authorize Execution of an Engineering Agreement with Kimley-Horn and Associates, Inc. in the Amount of $1,702,260.00 for the Holly to Eastside Il Booster Pump Station and Ground Storage Tank 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: i . Authorize execution of an engineering agreement with Kimley-Hom and Associates, Inc. in the amount of $1,702,260.00 for Holly to Eastside It Booster Pump Station and Ground Storage Tank project; 2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the Holly to Eastside 11 Booster Pump Station and Ground Storage Tank project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the Holly to Eastside 11 Booster Pump Station and Ground Storage Tank project (City Project No. 105718) in the amount of $2,213,710.00 and decreasing appropriations in the Commercial Paper project (City Project No. UCMl-PR) 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 Klmley-Horn and Associates, Inc. in the amount of $1,702,260.00 for the preparation of plans and specifications for Holly to Eastside 11 Booster Pump Station and Ground Storage Tank project. The City and its wholesale customers within Fort Worth's Wafer Service area in North Tarrant County and South Denton County have experienced significant growth and will require additional water infrastructure in the near future to allow the available existing water treatment capacity at the Holly Water Treatment Plants to be transferred to the Eastside 11 Pressure Plane and Northside Pressure Planes. In addition to the contract amount, $511,450.00 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: , 60HOLLY TO EASTSIDEII PS AND GST-KHA Capital Fund project FY2026 CIP Authority Budget Change Revised FY2025 Name Name Appropriations (increase/Decrease) Bud et g 105718- Fund 56026 Holly to - W&S Commercial ES2 Booster $0.00 This M&C $2,213,710.00 $2,213,710.00 Paper PS & GS Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Holly to Eastside 11 Booster PS & GST project. Funding for the Holly to Eastside 11 Booster Pump Station and Ground Storage Tank project depicted below: Existing 11 Additional Fund Appropriations Appropriations Project Total* Fund 56026 - W&S Commercial Paper $0.00 $2,213,710.00 $2,213,710.00 Project Total $0.0qJ $2,213,740.00 $2,213,710.00 *Numbers rounded for presentation purposes. BUSINESS EQUITY OFFICE: The Business Equity Division placed a 12.53 percent business equity goal on this solicitationlcontract. Kimley- Horn and Associates, Inc., will be exceeding the goal at 23.70 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 2. 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 Holly to ES2 Booster PS & GT 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 b3L. Jesica McEachem 5804 OrIciinatina Business Unit Head: Chris Harder 5020 Additional Information Contact: Farida Goderya 8214 Expedited