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Home My WebLink About6303-05-2026 - City Council - ResolutionA Resolution NO. 6303-05-2026 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 $1,300,000.00 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 26-0349 LOG NAME: 60WATER CIS PROFESSIONAL CONSULTING SERVICES SUBJECT (ALL) Authorize Execution of Amendment No. 5 in the Amount Up to $1,829,797.00 for a Vendor Services Agreement with EMA, Inc. for Professional Consulting Services Related to the Implementation of a New Customer Information System for the Water Department, 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: 1. Authorize execution of Amendment No. 5 in an amount up to $1,829,797.00 to City Secretary Contract No. 61533, a vendor services agreement with EMA, Inc., for professional consulting services related to the implementation of the new Customer Information System for the Water Department for a revised contract amount of $2,284,285.00; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the Customer Information System Replacement; and 3. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water & Sewer Commercial Paper Fund by increasing estimated appropriations in the Water CIS Meter to Cash Program project (City Project No. 104667) in the amount of $1,084,285.00 and decreasing estimated appropriations in the 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: The purpose of this Mayor and Council Communication (M&C) is to formally authorize Amendment No. 5 for an additional amount up to $1,829,797.00, to City Secretary Contract (CSC) No. 61533, the vendor service agreement with EMA, Inc., for professional consulting services throughout implementation of the new system and related integrations for a revised contract amount of $2,284,285.00, and appropriate $1,084,285.00 of additional funding. The Fort Worth Water Utility currently manages billing and revenue collection for water, wastewater, stormwater, solid waste, and environmental protection services through a legacy Customer Information System (CIS) that is more than thirty years old. In Fiscal Year 25, the CIS system 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 utility engaged consultant services from EMA, Inc. to perform a comprehensive needs assessment and identify the new CIS software solution. As requirements were developed, staff determined that the CIS replacement should include closely integrated systems, including the Customer Relationship Management System, meter data management integration, payment processing, and a new mobile workforce management component for field services. • On November 14, 2023, M&C 23-0980 appropriated $500,000.00 for the hiring of a Water Utility Customer Information System Consultant. • On March 26, 2024, M&C 24-0235, approved the execution of a contract with EMA, Inc. in the amount of $1,200,000.00 and appropriated $700,000.00. • On June 7, 2024, the City entered into CSC No. 61533 with EMA, Inc. for Phase I services to provide a needs assessment and assistance in the development of the Request for Proposal specifications for the new CIS software solution in an amount up to $385,178.00. • On June 18, 2024, the City executed the First Amendment with EMA, Inc. to replace the Payment Schedule of the contract. • On June 12, 2025, the City executed the Second Amendment with EMA, Inc. to increase the spending authority of $385,178.00 for Phase by $69,310.00 for additional project management advisory assistance for a total spending authority of $454,488.00. • On July 25, 2025, the City executed the Third Amendment with EMA, Inc. to proceed with Phase II and incorporated a new pricing schedule of $745,351 for Phase II services through vendor selection but the amendment did not increase the spending authority for the contract. This spending authority will be added to Amendment No. 5. • On August 26, 2025, the City executed the Fourth Amendment with EMA, Inc. to update Phase II project schedule documents. Amendment No. 5 will add the $745,351.00 from Amendment No. 3 and provide for professional consulting services in the amount of $1,084,446.00 for assistance throughout the implementation of the new system and related integrations for a revised contract amount of $2,284,285.00. EMA, Inc. will actively serve as an independent advisor and quality assurance partner throughout the process. EMA, Inc.'s involvement will strengthen data governance structures, improve data integrity, reduce operational and revenue risk, elevate deliverable quality, and drive accountability to ensure a controlled go -live and stable long-term operations. It is the practice of the Water Department to appropriate its Capital Improvement Program 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. 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, as the bond issuer, to declare its intent to reimburse these portfolios with bond proceeds. Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Water Customer Information System Meter to Cash Program project. Appropriations for Water CIS METER TO CASH PGRM project are as depicted be Fund W&S Capital Projects - Funs 56002 W&S Commercial Paper - Fund 56026 (Project Total Existing Additional project Total* Appropriations Appropriations $1,612,000.00 $0.00 $1,612,000.00 $0.00 $1,084,285.00 $1,084,285.00 $1,612,000.00 $1,084,285.00 $2,696,285.00 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 60WATER CIS INTERNAL STAFFING SUPPORT in the amount of $1,718,500.00 in Commercial Paper and $90,000.00 in PayGo. This project is located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This contract will be with a publicly -traded business entity or a wholly -owned subsidiary of a publicly -traded business entity: EMA 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 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 WATER CIS METER TO CASH PRGM project. Prior to any expenses being incurred, the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Chris Harder 5020 Additional Information Contact: Chris Harder 5020