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Home My WebLink About6274-03-2026 - City Council - ResolutionA Resolution 6274-03-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT AND/OR ANNUAL PAYMENTS FROM THE TARRANT REGIONAL WATER DISTRICT FOR THE FORT WORTH CENTRAL CITY WATER AND SEWER RELOCATIONS 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 and the Tarrant Regional Water District ("TRWD") are coordinating on the Army Corps of Engineers' Central City Flood Control Project, with the City advancing costs for certain ancillary subprojects such as the relocation of existing water and sewer infrastructure and TRWD reimbursing such costs in annual installments correlating to costs of work within that year; and WHEREAS, the City wishes to retain the ability to debt -finance costs of these subprojects to the extent the projects are debt -eligible and not otherwise reimbursed by TRWD; and WHEREAS, the City expects to pay expenditures from available funds in connection with the design, planning, acquisition and construction for the FWCC Water and Sewer Relocations Project (the "Project") prior to the issuance of obligations by the City that may finance some or all of the costs of the Project; and WHEREAS, the City finds, considers, and declares that the reimbursement of the City from proceeds of obligation 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 $4,250,000.00 for the purpose of paying eligible costs, including some or all of 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. 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. The resolution shall be effective from and after its passage by the City Council. Adopted this 10th day of March 2026. ATTEST: By: Jannette S. Goodall, City Secretary ORr x, 000 000 r� o 0O,A, 0 0 E•0 0 Vo 0 0 � �0 0 is y 0 00 �4rj t*X AS Z� MAYOR AND COUNCIL COMMUNICATION MAP 60FWCCP14SSRCO2-SJLOUIS MEN ■ EXISTING SANITARY GR-`,P ■ SEWER MAIN D � ■ 2 111 � � o j ------------- 10 JUNCTION STRUCTURE D .. • N� C� Se0y0 . N1?Y RNER EXISTING SANITARY �Y ■ i SEWER MAIN TO BE ■'- ■ i ago* , ABANDONED ■ EXISTING SANITARY SEWER MAIN STRUCTURE \ JUNCTION C-1 AND C-2 a " ,� STRUCTURE D aauNEW SEWER •� SHAMROCK AVE -- s ^ *k�*e , LINE ALIGNMENT C � i PROPOSED r - � ,� d SEWER MAIN / si �� -ly► r7, � '� RELOCATION �� . �^ H' a ► � FNpFRs 17 � _ CULLEN ST ` ► `� T ■ Ym ---e •�E F D o �.��' .• W s� 1 P' •f~ r SIPHON N, N Z �TILLAR-ST a• STRUCTURE B-1 ■ i a a Q■ Q�� 66" SEWER LINE ON � CONCRETE CRADLE ��• �� o 1 _ ' EXISTING SANITARY WHITE SE— • SEWER MAIN TO BE ✓r� G i ' SETTLEMENT RD" FORT WORTH, - �q. I Me r ' WHITMORE ST ' a City of Fort Worth, Texas Mayor and Council Communication DATE: 03/10/26 M&C FILE NUMBER: M&C 26-0180 LOG NAME: 60FWCCP14SSRCO2-SJLOUIS SUBJECT (CD 2 and CD 9) Authorize Execution of Change Order No. 2 in the Amount of $3,526,707.28 to a Contract with S.J. Louis Construction of Texas, Ltd., for the Fort Worth Central City Part 14 - Channel Segment C, Sanitary Sewer Relocation, Adopt a 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 RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Change Order No. 2 in the amount of $3,526,707.28 to City Secretary No. 59847 a contract with S.J. Louis Construction of Texas, Ltd. for the Fort Worth Central City Part 14 - Channel Segment C, Sanitary Sewer Relocation for a revised contract amount of $38,595,019.61; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt and/or annual payments from the Tarrant Regional Water District for the Fort Worth Central City Water and Sewer Relocations project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Fort Worth Central City Water and Sanitary Sewer Relocations project (City Project No. 104484) in the amount of $3,526,708.00 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: On June 27, 2023 by Mayor and Council Communication (M&C) 23-0542, the City Council authorized a construction contract with S.J. Louis Construction of Texas, Ltd. in the amount of $34,824,041.30 for Fort Worth Central City Part 14 - Channel Segment C, Sanitary Sewer project. The contract was subsequently revised by Change Order No. 1 in the amount of $244,271.03 authorized by the City Council on March 25, 2025 (M&C 25-0268) that provided for sanitary sewer main and manhole rim elevation adjustments between stations 1+00 and 7+00 to accommodate future Channel grading by the United States Army Corps of Engineers (USACE). Change Order No. 2 primarily provides for the following: Adjustments to the sanitary sewer pipe alignment on the downstream end of the project to mitigate potential future settlement (from any analysis conducted by the consultant USACE for additional fill area due to the USACE's revisions to its bypass channel design; A 164 foot 30-inch pipe cradle to support the sanitary sewer pipe and 30-inch pier for siphon structure B-1 due to the additional fill; Pier foundations for siphon structures C1 and C2 to accommodate unstable and unusable soil material that was encountered during excavation; Additional dewatering, site preparation and shoring for the installation of siphon structures C1 and C2 due to unstable and unusable soil material that was encountered during construction; Additional subgrade stabilization for junction structures A and D due to unstable and unusable soil material that was encountered during excavation; Flowable fill material to replace unstable material that is encountered during construction and installation and removal of the concrete sidewalk detour requested by the Cowtown Marathon. This project is anticipated to be repaid from a series of annual reimbursements from the Tarrant Regional Water District (TRWD) as part of the Fort Worth Central City (FWCC) Water & Sewer Relocations project. In the event any bond -eligible costs are not fully reimbursed by TRWD, those costs would be 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 the debt is issued. Once payment is received from TRWD and/or debt associated with the unreimbursed portions of this project is sold, those funds 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. Funding for the Fort Worth Central City Part 14 - Channel Segment C, Sanitary Sewer Relocations in the FWCC Water and Sewer Relocations Project is depicted below: Fund Existing Additional Project Total* Appropriations Appropriations W&S Commercial Paper — Fund $28,420,939.77 $3,526,708.00 $31,947,647.77 56026 W&S Capital Projects — Fund $28,017,620.49 $0.00 $28,017,620.49 56002 Project Total $56,438,560.26 $3,526,708.00 $59,965,268.26 Note: This table includes the actions considered in M&C 26-0112 on the February 10, 2026 City Council Agenda. The sanitary sewer $3,526,707.28 amount of this Change Order is considered Trinity River Vision Authority (TRVA)-relocated work, which are eligible for funding from Tax Increment Reinvestment Zone No. 9 pursuant to the TRVA Project Plan. Having met its $26.6 million commitment to the TRVA project, the City will be reimbursed the sanitary sewer amount of $3,526,707.28 by TRWD, in accordance with provisions of the executed Interlocal Agreement between the City and the TRWD (City Secretary Contract No. 43425 as amended). The TRVA Program Manager in the FW Lab Department will be responsible for collecting the full reimbursement from TRWD at the end of each fiscal year. Funding is available within the W&S Commercial Paper Fund for the Water Department for the purpose of funding the FWCC Water & Sewer Relocations project. This project is located in COUNCIL DISTRICTS 2 and 9. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are currently 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 FWCC Water & Sewer Relocations project to support execution of the change order. 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