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Home My WebLink About6305-05-2026 - City Council - ResolutionA Resolution NO. 6305-05-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE MARY' S CREEK WATER RECLAMATION FACILITY 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 Mary's Creek Reclamation Facility 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 $2,100,000.00 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 12th day of May 2026. ATTEST: By: y Jannette S. Goodall, City Secretary o� FoRr�� . 0 0 15 0 ~0 0A�d ��0 0 0Zd 0 �� 00 000� Z I L 1 I o p0 +wr Ugyp - TTD ~z rn _- II j on >O Dm�I zo m, con II � m \\ Z D cm) TC DmD II ---I `z / cn I mr- _ I <o CHAPIN RD4.;; I ^ ME n9 uc _ Z I�I�a18111i# 111 — — — — — — — — — — —� /'1 LLr��I aq��adal► ♦ . 7a ii _ p t gi11111 00 m"i 00 _II Nj� y 43110dS WAKECREST�DR— City of Fort Worth, Texas Mayor and Council Communication DATE: 05/12/26 M&C FILE NUMBER: M&C 26-0356 LOG NAME: 60DISCRETIONARY SERVICEA ONCOR MCWRF SUBJECT (CD 3 and ETJ) Authorize Execution of a Discretionary Electrical Service Agreement with Oncor Electric Delivery Company LLC in the Amount of $1,870,059.14 for the Installation of Electrical Infrastructure, Transformers, and Metering Units to Provide Power to the Mary's Creek Water Reclamation Facility, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with 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 a Discretionary Electrical Service Agreement with Oncor Electric Delivery Company LLC in the amount of $1,870,059.14 for the installation of Electrical Infrastructure, Transformers, and Metering Units to provide power to the Mary's Creek Water Reclamation Facility; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Mary's Creek Water Reclamation Facility project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in Mary's Creek Water Reclamation Facility project (City Project No. C01239) in the amount of $1,870,060.00 and decreasing appropriations in the Water & Sewer 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 purpose of this agreement is to authorize execution of a discretionary electrical services agreement with Oncor Electric Delivery Company LLC for the installation of Electrical Infrastructure, Transformers, and Metering Units to provide power to the Mary's Creek Water Reclamation Facility. As part of this agreement, Oncor Electric Delivery Company LLC (Oncor) will extend distribution lines, install transformers and metering equipment for a dual feed electric service to the Mary's Creek Water Reclamation Facility. Oncor has calculated the costs to provide power to the facility based on the anticipated electrical load of 4,391 KW as well as the infrastructure extension and equipment costs. 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. 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 for the purpose of funding the Mary's Creek Water Reclamation Facility. Funding for the Mary's Creek Water Reclamation Facility project is depicted below: Fund Water & Sewer Bond 2017A — Fund 56011 W&S Rev Bonds Series 2023 — Fund 56021 W&S Rev Bonds Series 2024 — Fund 56022 W&S WIFIA Existing Additional Appropriations Appropriations Project Total* $857,415.00 $0.00 $857,415.00 $2,143,498.00 $0.00 $2,143,498.00 $20,473,700.00 $0.00 $20,473,700.00 Revenue Bond — $346,638,712.57 $0.00 $346,638,712.57 Fund 56027 Sewer Capital Legacy— Fund $6,691,576.09 $0.00 $6,691,576.09 59607 W&S Commercial $0.00 $1,870,060.00 $1,870,060.00 Paper Fund 56026 Project Total $376,804,901.66 $1,870,060.001$378,674,961.66 The project is located in the ETJ and COUNCIL DISTRICT 3. 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 Commercial Paper project within the W&S Commercial Paper Fund and upon approval of the above recommendations and adoption of the appropriation ordinance, funds will be available in the W&S Commercial Paper Fund for the Mary's Creek Reclam. Facility project to support the above recommendations and execution of the construction contract. Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Chris Harder 5020 Additional Information Contact: James McDonald 4982