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Home My WebLink About6283-03-2026 - City Council - ResolutionA Resolution NO. 6283-03-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE HOLLY TO EASTSIDE II BOOSTER PUMP STATION AND 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 Holly to Eastside II Booster Pump station and 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 $2,500,000.00 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. Section 4. This resolution shall be effective from and after its passage by the City Council. Adopted this 31st day of M arch 2026. ATTEST: By: Jannette S. Goodall, City Secretary Fund Name Project Name Existing Appropriations Authority Additional Appropriations Project Total W&S 105718 - City of Fort Worth, Texas Mayor and Council Communication DATE: 03/31/26 M&C FILE NUMBER: M&C 26-0238 LOG NAME: 21CPN105718 HOLLY TO ES2 BOOSTER PS & GT SUBJECT (CD 2) Authorize Fee Simple Acquisition of Approximately 3.23 Acres of Property Located at 3737 Northern Cross Boulevard, Fort Worth, Tarrant County, Texas 76137 from Mercantile Partners, L.P. in the Amount of $2,111,760.00; Authorize the Payment of Closing Costs in an Amount Up to $15,000.00 for a Total Cost of $2,126,760.00 for a Pump Station and Ground Storage Tank; Adopt Resolution Expressing Official Intent to Reimburse Expenditures from Proceeds of Future Debt; and Adopt Appropriation Ordinance to Effect a Portion of Water Department's Contribution to Fiscal Years 2026-2030 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Authorize the fee simple acquisition of approximately 3.23 acres of property known as Lot 3R, Block 9B, of Northern Crossing Addition, an addition to the City of Fort Worth, Tarrant County, Texas and located at 3737 Northern Cross Boulevard, Fort Worth, Texas 76137 from Mercantile Partners, L.P. for a Pump Station and Ground Storage Tank in the amount of $2,111,760.00; 2. Authorize the payment of estimated closing costs and appraisal fees in an amount up to $15,000.00; 3. Authorize the City Manager or his Designee to execute a contract of sale for the 3.23 acres and record the appropriate instruments; 4. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the Holly to Eastside II Booster Pump Station and Ground Storage Tank project; and 5. Adopt the attached appropriation ordinance adjusting estimated appropriations in the Water & Sewer Commercial Paper Fund, in the amount of $2,126,760.00, by increasing estimated appropriations in the Pump Station and Ground Storage Tank project (City Project No. 105718) and decreasing estimated appropriations in the Commercial Paper project (City Project No. UCMLPR) by the same amount for the fee simple acquisition of 3737 Northern Cross Boulevard, Fort Worth, Texas 76137 to effect a portion of the Water Department's contribution to the Fiscal Years 2026 - 2030 Capital Improvement Program. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize the fee simple acquisition of property located at 3737 Northern Cross Boulevard, Fort Worth, Texas 76137 (the Property) from Mercantile Partners, L.P. (Mercantile) for the purpose of a Pump Station and Ground Storage Tank location. An independent appraisal established the property's fair market value. Mercantile has agreed to sell the Property to the City of Fort Worth (City) for an amount of $2,111,760.00 as total compensation for the needed property interests. The real estate taxes will be pro-rated with Mercantile being responsible for taxes up to the closing date. The City will pay closing costs in an amount up to $15,000.00. The Water Department has agreed to construct a masonry fence to screen the Property from public view. Pump station improvements at the Property will be subject to architectural guidelines and restrictions detailed in the conveyance deed. Legal Description Purchase Price Closing Costs Total Northern Crossing Addition, Lot 3R Block 9B $2,111,760.00 $15,000.00 $2,126,760.00 It is the practice of the Water Department to appropriate its Capital Improvement Plan throughout the Fiscal Year instead of within the annual budget ordinance as projects commence, additional funding needs are identified, and/or to comply with bond covenants. The actions of this M&C will appropriate funds to support the Water Department's portion of the City of Fort Worth's Fiscal Years 2026 - 2030 Capital Improvement Program. 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. Funding for the Eastside II Booster Pump Station and Ground Storage Tank project depicted below: Fund Name Project Name Existing Appropriations Authority Additional Appropriations Project Total Commercial Paper - Fund 56026 1HOLLY TO ES2 BOOSTER PS & GT 2,213,710.00 This M&C Rec 5 $2,126,760.00 $4,340,470.00 Project Total 2,213,710.00 $2,126,760.00 $4,340,470.00 Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the Water Department for the purpose of funding the Holly to Eastside II Booster Pump Station and Ground Storage Tank project. This project is located in COUNCIL DISTRICT 2. 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 Pump Station and Ground Storage Tank project to support the acquisition of the property. Prior to an expenditure being incurred, the Property Management and Water Departments have the responsibility of verifying the availability of funds. Submitted for City Manager's Office by: Valerie Washington 6199 Originating Business Unit Head:Marilyn Marvin 7708 Additional Information Contact:Stuart Young 8379 Expedited