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Home My WebLink About6273-03-2026 - City Council - ResolutionA Resolution NO. 6273-03-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE LAKE ARLINGTON FORCE MAIN, LIFT STATION AND SANITARY SEWER MAINS PART 4 PROJECT 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 Lake Arlington Force Main, Lift Station, and Sanitary Sewer Mains Part 4 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: 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 $10,250,000.00 for the purpose of paying the aggregate costs of the Project. 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. 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. 4. This resolution shall be effective from and after its passage by the City Council. Adopted this 1 Oth day of March 2026. ATTEST: By: Jannette S. Goodall, City Secretary MAYOR AND 60 L. N E LANCASTER AVE PANOLA AVE FORT WMTH RAMEY AVE Y E BERRYsrW >Cb N co OA WILBARGER ST 4T O IL COMMUNICATION MAP EXISTING SEWER MAIN Q WBROOK DR o 619 Z4 L0jj r�•� CRAIG ST ..♦� ■ ■ F i_ANCASTER AVEt E ROSED, ■ co fl ♦ LA ♦" t ♦; J PROPOSED JUNCTION STRUCTURES 0 > � m Z O 1 L Z S v ♦ ^r1 w ffM287 D ■� m ♦I ARLINGTON Q 177 O PLEASANT RIDGE w O; ■ J I� ■ NN EXISTING FORCE M MAIN 9 f0s- -■ e/SeFF. 1 g 1-20 STD � ■ ■ FOREST HILL rI CALIFORNIA PKWY �• ♦ y I ♦ I I I IH 20 T'j LIFT 40 ICI ♦ L' — —1 STATION l UPSTREAM SEWER KENNEDALE GRAVITY MAIN L — i FORTWORTH, PROPOSED MANHOLE TO CONNECT I � I UPSTREAM SEWER TO V I I LIFT STATION ■ I 1-20 City of Fort Worth, Texas Mayor and Council Communication DATE: 03/10/26 M&C FILE NUMBER: M&C 26-0178 LOG NAME: 60LSFMSSP4-CIRCLECFNIA8 SUBJECT (CD 5) Authorize Execution of a Contract with William J. Schultz, Inc. dba Circle C Construction Company in the Amount of $7,594,571.50, Authorize Execution of Amendment No. 8 in the Amount of $250,000.00 to an Engineering Agreement with Freese and Nichols, Inc. for Lake Arlington Lift Station Force Main and Sanitary Sewer Mains Project Part 4 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 2026-2030 Capital Improvement Program :7Xd91iv, Intak 7_11flarkA It is recommended that the City Council: 1. Authorize execution of a contract with William J. Schultz, Inc. dba Circle C Construction Company in the amount of $7,594,571.50 for the Lake Arlington Lift Station Force Main and Sanitary Sewer Mains project; 2. Authorize execution of Amendment No. 8 to City Secretary Contract No. 50312, an Engineering Agreement with Freese & Nichols, Inc., in the amount of $250,000.00 for construction support services for the Lake Arlington Lift Station Force Main, and Sanitary Sewer Mains project for a revised contract amount of $6,484,254.00 (City Project No. 100995); 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Lake Arlington Lift Station Force Main and Sanitary Sewer Mains Part 4 project; and 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Lake Arlington Lift Station Force Main and Sanitary Sewer Mains Part 4 project (City Project No. 100995) in the amount of $8,536,843.00 and decreasing appropriations in the W&S Commercial Paper project (City Project No. UCMLPR) by the same amount to effect a portion of Water's Contribution to the Fiscal Years 2026-2030 Capital Improvement Program. DISCUSSION: This Mayor and Council Communication (M&C) is to authorize a construction contract with William J. Schultz, Inc. dba Circle C Construction Company, authorize an amendment to City Secretary Contract No. (CSC) 50312, an engineering agreement, with Freese & Nichols, and appropriate funding for Lake Arlington Lift Station Force Main and Sanitary Sewer Mains Part 4 project. On January 30, 2018, M&C C-28566 authorized an engineering agreement with Freese and Nichols, Inc., (CSC No. 50312) in the amount of $3,099,361.00 for the preparation of plans and specifications for the Lake Arlington Lift Station and Force Main project. The agreement was subsequently revised by: • Amendment No. 1 in the amount of $229,755.00 (M&C C-29067, March 19, 2019) that provided for the design of 1,000 linear foot aerial crossing of the force main across Lake Arlington and additional geotechnical investigations at 8 locations along the force main; • Amendment No. 2 in the amount of $366,004.00 (M&C C-29178, June 25, 2019) that provided for the preparation of plans and specifications for additional tunneling design, archeological survey, additional survey along Quail Road, lead testing along lift station access road and design for erosion improvements on Village Creek Tributary near Salt Road; • Amendment No. 3 in the amount of $211,344.00 (M&C 20-0137, March 3, 2020) that provided for preparation of additional temporary and permanent easement documents, urban forestry permit application, and additional subsurface utility engineering (SUE) services; • Amendment No. 4 in the amount of $392,668.00 (M&C 20-0460, June 23, 2020) that provided for Resident Project Representation (RPR) and start up assistance on Lake Arlington Lift Station; • Amendment No. 5 in the amount of $323,249.00 (M&C 22-0290, April 12, 2022) that provided for additional easement acquisition assistance, plan redesigns, aerial crossing design and additional resident project representation support; • Amendment No. 6 in the amount of $1,511,941.00 (M&C 24-0844, September 17, 2024) that provided construction management, resident project representative and construction support services during construction of the Lake Arlington Lift Station, Force Main and Sanitary Sewer (LALSFMSS) Parts 1 and 2 project; and • Amendment No. 7 in the amount of $99,932.00 administratively authorized June 4, 2025, that provided for additional archaeological survey additional control point staking and additional construction administration to support walk through for tunnel design additions. Amendment No. 8 provides for construction management, resident project representative, and construction support services including shop drawings, submittal reviews, change order review during construction of Lake Arlington Force Main, Lift Station and Sanitary Sewer Mains Part 4 project. The project was advertised for bid on December 17, 2025 and December 24, 2025 in the Fort Worth Star -Telegram. On January 26, 2026 the following bids were received: Bidder Amount Contract Time William J Schultz, Inc. dba Circle C Construction Company Mountain Cascade of Texas, LLC 11S. J. Louis Construction of Texas, Ltd. I113elt Construction of Texas, LLC 450 $7,594,571.50 Calendar Days $9,624,279.00 $9,719,837.00 $9,820,028.00 In addition to the contract cost, $426,461.00 is required for project management and inspection and $265,810.00 is provided for project contingency. SMALL BUSINESS: William J. Schultz dba Circle C Construction Company is in compliance with the Small Business Enterprise (SBE) Ordinance by committing to 30 percent SBE goal. This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. 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 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 Capital Improvement Plan (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 W&S Commercial Paper project within the W&S Commercial Paper Fund for the Water Department for the purpose of funding the Lake Arlington Lift Station and Force Main project. Funding for the Lake Arlington Lift Station and Force Main and Sanitary Sewer Mains project is depicted below: Fund Existing Additional Appropriations Project Total* Appropriations W&S Capital $34,608.40 $0.00 $34,608.40 Projects — Fund 56002 W&S Capital Project $9,629,958.00 $0.00 $9,629,958.00 2018 — Fund 56014 W&S Rev Bonds Series $11,064,526.00 $0.00 $11,064,526.00 2021 — Fund 56019 W&S Rev Bonds Series $63,066,715.00 $0.00 $63,066,715.00 2025 - Fund 56023 W&S Commercial $0.00 $8,536,843.00 $8,536,843.00 Paper — Fund 56026 Project $83,795,807.40 $8,536,843.00 $92,332,650.40 Total The project is located in COUNCIL DISTRICT 5. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are 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 Lake Arlington, FM, LS and SS project to support the construction contract and amendment to the engineering agreement. Prior to any expenditure being incurred, the Water Department has the responsibility to 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: Bijay Upreti 8909