HomeMy WebLinkAboutResolution 6149-08-2025A Resolution
NO.6149-08-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SILVER CREEK
LIFT STATION, FORCE MAIN, AND GRAVITY 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 Silver Creek Lift Station, Force Main, and
Gravity 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
$14,500,000.00 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 26th day of August 2025.
ATTEST:
By
Jannette S. Goodall, City Secretary
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MAYORAND COUNCIL COMMUNICATION MAP
60S I LVE RC RE E KLS-ARCAD IAAN D KHAA2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/26/25 M&C FILE NUMBER: M&C 25-0800
LOG NAME: 60SILVERCREEKLS-ACADIAANDKHAA2
SUBJECT
(CD 7) Authorize Execution of a Contract with Acadia Services, LLC in the Amount of $10,969,853.00 for Construction of the Silver Creek Lift
Station, Force Main and Gravity Main, Part 1, Authorize Execution of Amendment No. 2, in the Amount of $502,488.00, to an Engineering
Agreement with Kimley-Hom and Associates, Inc. for the Silver Creek Lift Station, Force Main and Gravity Main, Part 1 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 Acadia Services, LLC in the amount of $10,969,853.00 for construction of the Silver Creek Lift Station,
Force Main and Gravity Main, Part 1 project;
2. Authorize execution of Amendment No. 2 to City Secretary Contract No. 59809, an Engineering Agreement with Kimley-Horn and
Associates, Inc., in the amount of $502,488.00, for construction support services for the Silver Creek Lift Station, Force Main and Gravity
Main project for a revised contract amount of $2,467,088.00;
3. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Silver Creek Lift
Station, Force Main and Gravity Main project; and
4. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the Silver Creek Lift Station, Force Main and Gravity Main (City Project No. 104489) in the amount of $12,107,026.00 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:
On June 27, 2023, Mayor and Council Communication (M&C) 23-0529, the City Council authorized an engineering agreement in the amount of
$1,659,200.00 with Kimley-Hom and Associates, Inc., (City Secretary Contract No. 59809) for the Silver Creek Lift Station, Force Main, and
Gravity Main project. The agreement was subsequently revised by Amendment No. 1 in the amount of $ 305,400.00, authorized December 10,
2024 (M&C 24-1135) that primarily provided design for two inverted siphons that are necessary on the project and design for a 16-inch water main
that will connect a developer proposed water main on the north end of the water main to an existing City -owned 16-inch water main near the Silver
Creek/Heron Drive intersection and the preparation of a bid package to separate the original project into two parts for construction.
Amendment No. 2 provides for construction management, resident project representative, and construction support services including shop
drawings, submittal reviews, change order review, and record drawings.
Construction of the Silver Creek Lift Station project was advertised for bid on June 4, 2025, and June 11, 2025, in the Fort Worth Star -Telegram.
On July 10, 2025, the following bids were received:
Bidder Amount Contract Time
Acadia Services, LLC $10,969,853.00� 550 Calendar
Days
Fort Worth Civil Constructors, $11,043,182.00
LLC
In addition to the contract cost, $360,439.00 is required for project management, material testing and inspection and $274,246.00 is provided for
project contingency.
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 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, instead of within
the annual budget ordinance, as projects commence, additional funding needs are identified, and to comply with bond covenants.
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding of the Silver Creek
LS/FM/GM project.
Funding for the Silver Creek Lift Station, Force Main and Gravity Main are depicted below:
Existing Additional 1
Fund ( Project Total*
Appropriations Appropriations
56022 - W&S Rev-1I
Bonds Series $2,838,118.001 $0.00 $2,838,118.00I
2024 IIIIII
56026 — W&S
Commercial Paper $0.00 $12,107,026.00 $12,107,026.00
Project Total ( $2,838,118.00, $12,107,026_00,$14,945,144.00�
*Numbers rounded for presentation purposes.
The project is located in COUNCIL DISTRICT 7.
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 Silver Creek LS/FM/GM 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 Citv Manaaer's Office bv: Jesica McEachern 5804
Oriainatina Business Unit Head: Chris Harder 5020
Additional Information Contact: Bijay Upreti 8909