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HomeMy WebLinkAbout6286-03-2026 - City Council - ResolutionA Resolution NO. STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE – COMMUNITY FACILITIES AGREEMENT INDCO I-35 EAGLE 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 Community Facilities Agreement- INDCO I-35 Eagle 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 $1,100,000.00 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 day of MARCH, 2026. ATTEST: By: Jannette S. Goodall, City Secretary City of Fort Worth, Mayor and Texas Council Communication DATE: 03/31/26 M&C FILE NUMBER: M&C 26-0225 LOG NAME: 601NDC0 161NCH WATER LINE OVERSIZE SUBJECT (CD 10) Authorize Execution of a Community Facilities Agreement with City Participation in an Amount Up to $925,943.50 with GPFT HF Alliance 2026, LP for Oversizing a 16-Inch Water Main for Anticipated Future Growth in North Fort Worth, Adopt Resolution Expressing Official Intent to Reimburse Expenditures from 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: Authorize execution of a Community Facilities Agreement with Ciry participation in an amount up to $925,943.50 with GPFT HF Alliance 2026, LP for oversizing a 16-inch water main for anticipated future growth in North Fort Worth; Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the Community Facilities Agreement -INDCO I-35 Eagle project; and Adopt the attached appropriation ordinance adjusting estimated appropriations in the Water and Sewer Commercial Paper Fund by decreasing estimated appropriations in the Commercial Paper project (City Project No. UCMLPR ) in the amount of $998,568.00 and increasing estimated appropriations in the Community Facilities Agreement Bucket programmable project (City Project No. P00001) by the same amount for the purpose of funding the Community Facilities Agreement CFA-INDCO I-35 Eagle project (City Project No. 106547) and to effect a portion of Water's contribution to the Fiscal Years 2026-2030 Capital Improvements Program. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to: (1) authorize execution of a Community Facilities Agreement (CFA) with GPFT HF Alliance 2026, LP (Developer) with City Participation in an amount up to $925,943.50, (2) adopt a resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the CFA-INDCO I-35 Eagle project, and (3) adopt an appropriation ordinance to effect a portion of Water's Contribution to the Fiscal Years 2026-2030 Capital Improvement Program (CIP). Developer is constructing the Indco I-35 Eagle development project located south of Eagle Parkway and east of North Freeway. The Developer is required to extend water main to serve the proposed development. The Water Department is requesting to oversize approximately 3,976 linear feet of water main from 12-inch to 16-inch for anticipated future growth in the area. The INDCO I-35 Eagle water line project is assigned City Project No. 106547 and Accela System Record IPRC25-0170. This project has been publicly bid. The City's cost participation in the oversizing of the water main is estimated to be in an amount up to $925,943.50 as shown in the table below. Payments to the Developer are estimated to be: $907,797.76 for construction costs, $696.59 for Infrastructure Plan Review Center (IPRC) fees, and $11,800.00 for design services costs. The City's cost participation also includes $5,649.15 to cover the City's portion of construction inspection service fees, water lab fees, and administrative material testing fees. An additional $72,623.82 in contingency funds will cover the City's portion of any change orders. The following table shows the cost-sharing breakdown for the project between all parties: A. Construction 1. Water 2. Sewer Contingency Construction Fees: B. Construction Inspection Fee Developer Water Dept City Total Cost Cost Cost $915, $93,265. $907,797.76�$1,823,452.0 $0.00� $93,265.0 $0.00� $72,623.82� $72,623 $45,562.50� $5,062.50� $50,625.0 C. Admin Material Testing Fee $4,216.68 $468.52 $4,68520 D. Waterlab Fee $1,063.12 $118.13 $1,181.25 E. IPRC Fees $6,269.33 $696.59 $6,965.92 F. Design Services $106,200.00 $11,800.00 $118,000.00 TotalProjectCost $1,172,230.87 $998,567.32$2,170,798.19 The reimbursement of the City participation is not a lump sum amount and may be less than the stated amount depending upon the actual quantities and unit prices from the Notice of Final Completion package, commonly referred to as the Green Sheet package. It is the practice of the Water Department to appropriate its Capital Improvement Plan (CIP) 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. 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 2026-2030 CIP. 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 is available in the Commercial Paper project within the Water & Sewer Commercial Paper Fund for the purpose of funding the CFA- INDCO I-35 Eagle project. Funding for the CFA-INDCO I-35 Eagle water project is as depicted in the table below: Existing Additional Fund Appropriations Appropriations Project Total W&S Commercial Paper - Fund 56026 $0.00 $998,568.00 $998,568.00 Total $0.00 $998,568.00 $998,568.00 This project is in Council District 10. 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 W&S Commercial Paper Fund for the CFA-INDCO I-35 Eagle project to support the execution of the agreement. Prior to an expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office bk Jesica McEachern 5804 Originating Business Unit Head: Christopher Harder 5020 Additional Information Contact: Suby Varughese 8009 Elynn Ray 7856