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Home My WebLink AboutResolution 6131-08-2025A Resolution NO. 6131-08-2025 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WATER AND SANITARY SEWER REPLACEMENT CONTRACT 2022 WSM-G 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 Water and Sanitary Sewer Replacement Contract 2022 WSM-G 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 $15,705,000.00 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 12th day of August 2025. ATTEST: By: Jannette S. Goodall, City Secretary 44d44Un� Qt ry O OT� r> >-o 0 Yc �o o F ��*��000000°y.� r . mlilo + - _ + � D - BOSS AVE ~•� v -� -x14w ' FA:.CON WAY W f�+ ROSS AVE ::. s } i 0 Dm� CLINTON AVE Z , D O v L ' 0 -7 CLINTON AVE _ �J t ' GULF STREAM;RD n Al or r � . ' NyHOUSTON'ST' j L n . 5 v ELLIS�AVEc `^ , _ FALCON WAY I-------------------- N MAIN ST - ` ZJt. rm Z %Ch I, L f - _ ,Z„ - *-ir r N COMMERCE ST + -- .. x t F aaYsNa"' m iS�S3NOf N City of Fort Worth, Texas Mayor and Council Communication DATE: 08/12/25 M&C FILE NUMBER: M&C 25-0728 LOG NAME: 60WSSC22WSMG-GRATEX SUBJECT (CD 2) Authorize Execution of a Contract with Gra-Tex Utilities, Inc., in the Amount of $12,078,669.00, for Water and Sanitary Sewer Replacement Contract 2022, WSM-G 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 Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a contract with Gra-Tex Utilities, Inc., in the amount of $12,078,669.00 for Water and Sanitary Sewer Replacement Contract 2022, WSM-G project; 2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Water and Sanitary Sewer Replacement Contact 2022 WSM-G project; and 3. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in Water and Sanitary Sewer Replacement Contact 2022 WSM-G project (City Project No. 104491) in the amount of $13,087,777.00 and decreasing appropriations in the Water & Sewer 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: This Mayor & Council Communication (M&C) is to authorize execution of a construction contract with Gra-Tex Utilities, Inc., in the amount of $12,078,669.00 for the replacement of cast iron water and/or deteriorated sanitary sewer mains as indicated on the following streets and easements: Street From 1 To i Calhoun Street !NE 34th Street I N. Commerce Street Alley between N. Commerce Street ,and N. Main Street N. Main Street Alley between N Main Street and Ellis Avenue NE 34th Street NE 36th Street NW 34th Street NE 35th Street NE 38th Street NE 37th Street NE 38th Street Scope of Work lWater ]Water Sewer Water 120 feet west and 350 1 feet south of N. Main NW 36th Sewer Street/35th Street Street Intersection NW 35th Street N. Main Street 1,510 Water feet west _ NW 37th Ellis Avenue NW 34th Street Water/Sewer Street Alley between Ellis 165 feet west and 350 �NW36th Avenue and N. feet south of NW 35th Sewer Houston Street Street/Ellis Avenue Street intersection N. Houston Street NW 34th Street NW 35th Water _ Street N. Houston Street NW 36th Street NW 38th Water (Street Alley between N. i to Houston Street and NW 35th Street NW 38 Sewer Clinton Avenue Street Alley between 180 feet east of the 35th 270 feet Clinton Avenue and Street/Clinton Ave south Sewer N. Houston Street intersection Clinton Avenue NW 34th Street _ NW 38th Water Street Alley between 1VW 37 th Clinton Avenue and NW 35th Street Sewer Ross Avenue Street Alley between Clinton Avenue and NW 38th Street 500 feet South Sewer Ross Avenue FNW 36th Street N. Houston Street Ross Water/Sewer Avenue NW 38th Street Clinton Avenue NW 34th Street i Ross Avenue/NW 34 Street Intersection Avenue NW 34th Street Meachem Water Airport 230 feet Water West NW 37th Water Street Additionally, asphalt pavement rehabilitation will be conducted on all the roadways curb to curb subsequent to the water and sanitary sewer main replacement. The project was advertised for bids on May 28, and June 4, 2025, in the Fort Worth Star -Telegram. On July 3, 2025, the following bids were received: � Bidder Amount Time of Completion) 750 Gra-Tex Utilities, Inc. $12,078,669.001 Calendar Days Venus Construction Company '1$13,424,190.00 Jackson Construction Ltd I$13,999,999.001 William J. Schultz, Inc. dba Circle C $14,185,974.00 I Construction Company Woody Contractors, Inc. $14,392,099.55 Western Municipal Construction of Texas, LLC II$14,526,600.70 In addition to the contract amount, $659,255.00 (Water: $514,448.00, Sewer: $144,807.00) is required for project management, material testing, and inspection. Project contingencies are provided in the amount of $349,853.00 (Water: $254,080.00; Sewer: $95,773.00). This project will have no impact on the Water Department's operating budget when completed. The sanitary sewer component of this project is part of the Sanitary Sewer Overflow Initiative Program of the Water Department. Approximately 14,880 linear feet of cast iron water and 6,675 linear feet of sanitary sewer pipe will be removed and replaced as part of this project. 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, 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 is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Water and Sanitary Sewer Replacement Contact 2022, WSM-G. Appropriations for the water, sanitary sewer, and paving improvements for the Water and Sanitary Sewer Replacement Contract 2022 WSM-G project by Fund will consist of the following: Fund Existing Additional Proje� ct Total* Appropriations Appropriations W&S Capital Projects - Fund $900,950.00 $0.00 $900,950. 56002 1 W&S Commercial $0.00 $13,087,777.00 $13,087,777. Paper Fund 56026 lProject Total $900,950.0011 $13,0£ *Numbers rounded for presentation purposes. The project is located in COUNCIL DISTRICT 2. 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 W/SS Repl Contract 2022 WSM-G project to support the above recommendations and execution of the construction contract. Prior to any expenditure being incurred, the Water Department has the responsibility of validate the availability of funds. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Chris Harder 5020 Additional Information Contact: Dena Johnson 7866 Expedited