HomeMy WebLinkAboutResolution 6089-05-2025A Resolution
NO.6089-05-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NEW SENDERA
RANCH 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 New Sendera Ranch 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 $16,295,000.00
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 131 day of May 2025.
ATTEST:
By:
7annette S. Goodall, City Secretary
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City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0404
LOG NAME: 60SENDERARGST-PRELOADANDKHA
SUBJECT
(CD 10) Authorize Execution of a Contract with Preload, LLC in the Amount of $11,937,000.00 for New Senders Ranch Ground Storage Tank
Project, Provide for Project Costs for a Project Total in the Amount of $12,769,462.00, 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
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a contract with Preload, LLC in the amount of $11,937,000,00 for the New Sendera Ranch Ground Storage Tank
project;
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the New Sendera
Ranch GST project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the New Sendera Ranch Ground Storage Tank project (City Project No. 105781) in the amount of $12,769,462.00 and
decreasing appropriations in the Commercial Paper project (City Project No. UCMLPR) by the same amount, to effect a portion of Water's
contribution to the Fiscal Years 2025-2029 Capital Improvement Program.
DISCUSSION:
On November 12, 2024, Mayor and Council Communication (M&C) 24-0998 authorized an engineering agreement with Kimley-Hom and
Associates, Inc. (City Secretary No. 62396) for the preparation of plans and specifications for the New Sendera Ranch Ground Storage Tank.
This Mayor and Council Communication (M&C) is to authorize a contract with Preload, LLC in the amount of $11,937,000.00 for construction of the
New Sendera Ranch Ground Storage Tank.
Construction of the project was advertised for bid on March 5, 2025 and March 12, 2025 in the Fort Worth Star -Telegram. On April 3, 2025 the
following bid was received:
Bidder
Amount
Contract Time
PreIaad, LLC
$11,937,000.00
400 Calendar Days
DNTanks, LLC
$11,955,955.00
In addition to the contract cost, $436,357.00 is required for project management, material testing and inspection and $298,425.00 is provided for
project contingency. The project appropriation includes $97,680.00 for Amendment No. 1 to City Secretary Contract No. 62396 with Kimley-Hom
and Associates, Inc. that will provide for construction phase services, additional design and easement services on the project.
This project will have no impact on the Water Department operating budget when completed.
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 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 Capital Improvement Program (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.
Funding for New Sendera Ranch GST is depicted below:
60S ENDERARGST-PRELOADANDKHA
Capital
Fund
Project
Name
FY2025 CIP
Appropriations
Authority
Budget Change
(Increase/Decrease)
Revised
FY2025
Budget
Name
56026-
105781
W&S
— New
Sendera
$0.00
This M&C
$12,769,462.00
00
$12,769,462.Ranc
Commercial
h
Paper Fund
GST
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding of the New Sendera
Ranch GST project.
Funding for the New Sendera Ranch Ground Storage Tank is depicted below:
Fund
Existing
Appropriations
Additional
Appropriations
Project Total*
56026 — W&S
Commercial
Paper
$809,721.00
$12,769,462.00
$13,579,183.00
Project Total
$809,721.00
$12,769,462.00
$13,579,783.00
DVIN: The Business Equity Division placed a 9.01 percent business equity goal on this solicitation/contract. Preload, LLC, will be exceeding the
goal at 10.52 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 10.
FISCAL INFORMATION 1 CERT MATZO
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 New Sendera Ranch GST project to support the above recommendations and execution of the contract and amendment. Prior
to an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for Cily Manager's Office by. Jesica McEachern 5804
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Dena Johnson 7866
Expedited