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HomeMy WebLinkAbout6302-05-2026 - City Council - ResolutionA Resolution NO. 6302-05-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WATER CUSTOMER INFORMATION SYSTEM METER TO CASH PROGRAM 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 Water Customer Information System Meter to Cash Program 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 $2,065,000.00 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 12th day of May 2026. ATTEST: By: Jannette S. Goodall, City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 05/12/26 M&C FILE NUMBER: M&C 26-0350 LOG NAME: 60WATER CIS INTERNAL STAFFING SUPPORT SUBJECT (ALL) Adopt Appropriation Ordinances in the Amount of $1,808,500.00 for the Implementation of the Water Customer Information System Replacement, 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. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the Customer Information System Replacement; 2. Adopt the attached appropriation ordinance adjusting estimated appropriations in the Water & Sewer Commercial Paper Fund, in the amount of $1,718,500.00, by increasing estimated appropriations in the Water Customer Information System Meter to Cash Program project (City Project No. 104667) and decreasing estimated appropriations in the Commercial Paper project (City Project No. UCMLPR) by the same amount for the purpose of funding temporary staffing support to deliver the new Customer Information System project; and 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Project Fund in the amount of $90,000.00, transferred from available PayGo funds within the Water and Sewer Fund, for the purpose of funding the Water Customer Information System Meter to Cash Program (City Project No. 104667) to support the purchase of mobile tablet devices required to implement the Mobile Workforce Management module within the new Customer Information System and 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 internal staffing resources necessary to support implementation services for the Customer Information System (CIS) replacement initiative, ensuring the project has the capacity required to execute this complex, enterprise -level transition over a 21-month implementation period. It will also fund the purchase of mobile devices required to support the implementation of the Mobile Workforce Management module. The Fort Worth Water Utility currently manages billing and revenue collection for water, wastewater, stormwater, solid waste, and environmental services through a legacy billing system that is more than thirty years old. In Fiscal Year (FY) 25, the CIS billed more than $735 million in revenues for these services through 3.6 million transactions. This aging platform no longer aligns with modern operational or customer -service standards and requires extensive manual processes to support core business functions. The CIS replacement project is a large, complex, multi -year endeavor that will require additional staffing support to manage planning, analysis, configuration, data migration, testing, and change management. The scale and complexity of transitioning from multiple legacy systems to an integrated modern platform exceeds the capacity of existing staff, making supplemental resources essential to ensure a successful and timely rollout. As a part of this modernization effort, the Utility will deploy a robust Mobile Workforce Management module that will significantly enhance operational efficiency in field services and strengthen our ability to meet both customer expectations and system demands. Approval of this M&C will also appropriate funding for the purchase of 60 mobile tablet devices required to support the implementation of this new module in the CIS. Procuring mobile tablets is a foundational step in enabling this transformation and ensuring field staff are equipped to fully leverage the new technology, including technician routing, and creation and close-out of work orders in the field on a real-time basis. It is the practice of the Water Department to appropriate its Capital Improvement Program 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. 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. Federal regulations require the City to express its official intent to reimburse expenditures from the issuance of bonds. Funding is budgeted in the Transfer to Water/Sewer account of the Water and Sewer operating budget and in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Water CIS Meter to Cash Program project. FY2026 - Water PAYGO Appropriations per City Ordinance 27979-09-2025 FY2026 Amended PayGo YTD PayGo FY2026 FY2026 Original (includes any Approved This M&C Remaining Adopted PayGo council actions for/Moved to PayGo subsequent to Capital Projects Balance budget adoption) 1$101,090,082.00 1$101,090,082.00 1($54,227,439.00) ($90,000.00) J$46,772,643.00 Note: there may be other pending actions or recently approved actions that are not reflected in the table due to timing. Appropriations for Water CIS Meter to Cash Program project are as depicted below: Fund Existing Appropriations Additional Appropriations Project Total* W&S Capital Projects- Fund 56002 $1,612,000.00 $90,000.00 $1,702,000.00 W&S Commercial Paper- Fund 56026 $0.00 $1,718,500.00 $1,718,500.00 Project Total $1,612,000.00 $1,808,500.00 $3,420,500.00 There are two pending M&Cs that will appropriate additional funds to this project: 13PRFP25-0128 WATER CUSTOMER INFORMATION SYSTEM SOFTWARE WTR HO in the amount of $23,740,044.00 in Commercial Paper and M&C 60 WATER CIS PROFESSIONAL CONSULTING SERVICES in the amount of $1,084,285.00 in Commercial Paper. This project is located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the Water & Sewer Fund and 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 ordinances, funds will be available in the W&S Capital Projects Fund and in the W&S Commercial Paper Fund for the WATER CIS METER TO CASH PRGM project to support the Customer Information System Initiative. Prior to any expenses being incurred, the Water Department has the responsibility of verifying the availability of funds. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Chris Harder 5020 Additional Information Contact: Chris Harder 5020