HomeMy WebLinkAbout6275-03-2026 - City Council - Resolution (2)A Resolution
NO.6275-03-2026
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
BONDS RANCH LIFT STATION, FORCE MAIN AND GRAVITY MAIN
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 Bonds Ranch 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:
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
$17,475,000.00 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:
Janne a S. Goodall, City Secretary
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LA FRONTERA
LIFT STATION BY
OTHERS
FUTURE GRAVITY
SEWER MAIN
FUTURE FORCE
MAIN
PROPOSED
BONDS RANCH
LIFT STATION
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/10/26 M&C FILE NUMBER: M&C 26-0183
LOG NAME: 60BRLSFMGMP1-CLWWGANDFNIA2
SUBJECT
(CD 7 and ETJ) Authorize Execution of a Contract with CLW Water Group, LLC in the Amount of $12,992,000.00 for Construction of the Bonds
Ranch Lift Station, Force Main and Gravity Main Project Part 1, Authorize Execution of Amendment No. 2, in the Amount of $520,000.00, to an
Engineering Agreement with Freese and Nichols, Inc. for the Bonds Ranch Lift Station, Force Main and Gravity Main Project, Adopt Resolution
Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinances 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 a contract with CLW Water Group, LLC in the amount of $12,992,000.00 for construction of the Bonds Ranch Lift
Station, Force Main and Gravity Main project Part 1;
2. Authorize execution of Amendment No. 2 to City Secretary Contract No. 59868, an Engineering Agreement with Freese and Nichols, Inc., in
the amount of $520,000.00, for construction support services for the Bonds Ranch Lift Station, Force Main and Gravity Main project for a
revised contract amount of $2,672,892.00;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Sewer Impact Fee Fund in the amount
of $2,428,721.00, from available Wholesale and Retail Impact Fees, for the purpose of transferring funds from the Water/Wastewater
Wholesale Impact Fees and Water/Wastewater Retail Impact Fees projects (City Project Nos. B20004 and B20005) to the Bonds Ranch Lift
Station, Force Main and Gravity Main project (City Project No. 104490);
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Sewer Impact Fee Fund in the amount
of $2,428,721.00 transferred from the Water Impact Fee Fund to the Bonds Ranch Lift Station, Force Main and Gravity Main project (City
Project No. 104490);
5. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Bonds Ranch Lift
Station, Force Main and Gravity Main project; and
6. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the Bonds Ranch Lift Station, Force Main and Gravity Main project (City Project No. 104490) in the amount of
$11,769,632.00 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 CLW Water Group, LLC, authorize an amendment to an
Engineering Agreement with Freese and Nichols, Inc., adopt a resolution expressing official intent to reimburse expenditures from future debt, and
appropriate funding for Bonds Ranch Lift Station, Force Main and Gravity Main project.
On June 27, 2023, Mayor and Council Communication (M&C) 23-0544, the City Council authorized an engineering agreement in the amount of
$1,143,312.00 with Freese and Nichols, Inc., (City Secretary Contract No. 59868) for the Bonds Ranch Lift Station (Lift Station A), Force Main,
and Gravity Main project. The agreement was subsequently revised by Amendment No. 1 in the amount of $1,009,580.00, authorized September
16, 2025 (M&C 25-0891) that primarily provided design for a second lift station (Lift Station B) that, in conjunction with Lift Station A, will provide
sanitary sewer service to the area west of Morris Dido Newark Road and south of Peden Road.
Amendment No. 2 CSC 59868 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 Bonds Ranch Lift Station project was advertised for bid on December 10, 2025, and December 17, 2025, in the Fort Worth
Star-Telegram. On January 15, 2026, the following bids were received:
Bidder Amount Contract Time
CLW Water Group, LLC $12,992,000.00 912 Calendar Days
Keeley Construction $15,008,371.17
Thalle Construction Co, Inc.$15,885,046.00
Felix Construction Company $18,882,770.00
In addition to the contract cost, $361,553.00 is required for project management, material testing and inspection and $324,800.00 is provided for
project contingency.
Small Business (SB) Goal – The City waived the Small Business Program requirement for this project due to there being fewer than three certified
vendors available, in accordance with the City's Small Business Ordinance, Chapter 21 of the City Code.
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 and in the Water/Wastewater Wholesale Impact
Fees and Water/Wastewater Retail Impact Fees projects for the purpose of funding of the Bonds Ranch Lift Station, Force Main and Gravity Main
project.
Funding for the Bonds Ranch Lift Station (A), Force Main and Gravity Main project are depicted below:
Fund Existing
Appropriations
Additional
Appropriations Project Total*
56022 - W&S Rev
Bonds Series
2024
$3,149,655.00 $0.00 $3,149,655.00
57003 – Sewer
Impact Fee Fund $0.00 $2,428,721.00 $2,428,721.00
56026 – W&S
Commercial Paper $0.00 $11,769,632.00 $11,769,632.00
Project Total $3,149,655.00 $14,198,353.00 $17,348,008.00
*Numbers rounded for presentation purposes.
The project is located in COUNCIL DISTRICT 7 and the ETJ.
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 in the
W/WW Wholesale Impact Fees and W/W Retail Impact Fees projects within the Sewer Impact Fee 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
Bonds Ranch LS(A)/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 City Manager's Office by: Jesica McEachern 5804
Originating Business Unit Head:Chris Harder 5020
Additional Information Contact:Bijay Upreti 8909