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HomeMy WebLinkAbout6304-05-2026 - City Council - ResolutionA Resolution NO.6304-05-2026 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE 16 TO 36-INCH CAST IRON WATER MAIN REPLACEMENT AT HOLLY TO NORTHSIDE PUMP STATION 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 16 to 36-inch Cast Iron Water Main Replacement at Holly to Northside Pump Station 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 $25,200,000.00 for the purpose of paying the aggregate costs of the Project. 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No obligations will be issued by the City in furtherance of this Statement after a date which is later than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which the property, with respect to which such expenditures were made, is placed in service. 3. The foregoing notwithstanding, no obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. 4. This resolution shall be effective from and after its passage by the City Council. Adopted this 12TH day of May 2026. ATTEST: By: A _)&$c,--QJ Jannette S. Goodall, City Secretary 1S gONgININOO N 'Lm1SeNIVIN wri 3AV SS021 • •—• s C•1 ,OAV 3AV 11z1V3d , 3AV in NIS3Ho' '.311139 Os, sY 4b-d, _ , City of Fort Worth, Texas Mayor and Council Communication DATE: 05/12/26 M&C FILE NUMBER: M&C 26-0353 LOG NAME: 60NSIDE CASTIRON WMREPLACEPARTI-SYBANDFNI SUBJECT (CD 2) Authorize Execution of a Contract with S.Y.B. Construction Co., Inc. in the Amount of $19,608,045.85 for 16-36 Inch Cast Iron Water Main Replacement in Holly -North Side Pump Station, Part 1, Authorize Execution of Amendment No.1, in the Amount of $320,000.00, to an Engineering Agreement with Freese and Nichols, Inc. for the 16-36 Inch Cast Iron Water Main Replacement in Holly -North Side Pump Station Project Part 1 for a Revised Contract Amount of $1,754,070.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures from Proceeds of Future Debt Project, 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 contract with S.Y.B. Construction Co., Inc. in the amount of $19,608,045.85 for the 16-36 inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project Part 1; 2. Authorize execution of Amendment No.1, in the amount of $320,000.00, to City Secretary Contract No. 61078, an Engineering Agreement with Freese and Nichols, Inc., for construction support services for the 16-36 inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project Part 1 for a revised contract amount of $1,754,070.00; 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the 16-36- inch Cast Iron Water Main Replacement in Holly -North Side Pump Station Project Part 1; and 4. 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 $20,994,394.00 and increasing estimated appropriations in the 16-36 inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project (City Project No. 105068) by the same amount and 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 authorize execution of a construction contract in the amount of $19,608,045.85 with S.Y.B. Construction Co., Inc. and the execution of Amendment No. 1 in the amount of $320,000.00 to an engineering agreement with Freese and Nichols, Inc. for the 16-36 inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project, Part 1. On February 27, 2024, M&C 24-0174 authorized an engineering agreement with Freese and Nichols, Inc., (City Secretary Contract No. 61078) in the amount of $1,434,070.00 for the preparation of plans and specifications for the 16-36 inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project Part 1. Amendment No. 1 provides for construction management, resident project representative, and construction support services including shop drawings, submittal reviews, change order review, archeological monitoring tracking, and record drawings. The project provides for Water and/or sanitary sewer main replacements as indicated on the following streets and easement: Street From To Scope of Work NW 27th Street W Long Avenue Ephriham Avenue Water NW 28th Street Rosen Avenue Hanna Avenue Water Rosen Avenue Northside Pump Station NW 28th Street Water Rock Island Street NW 27th Street NW 28th Street Water NW 27th Street Roosevelt Avenue Pearl Avenue Water/Sewer Pearl Avenue NW 27th Street NW 22nd Street Water NW 23rd Street Loving Avenue N Calhoun Street Water NW 28th Street Robinson Street Macie Avenue Water N Commerce Street NE 21st Street NW 23rd Street Water NW 22nd Street N Main Street N Commerce Street Water Construction of the project was advertised for bid on January 28, 2026 and February 4, 2026 in the Fort Worth Star -Telegram. On March 19, 2026 the following bids were received: Bidder Amount Contract Time S.Y.B. Construction Co., Inc. $19,608,045.85 850 Calendar Days Jackson Construction Ltd. $25,387,362.00 William J. Schultz, Inc. dba Circle C Construction Company $30,838,141.25 S.J. Louis Construction of Texas, LTD $32,365,000.00I Small Business (SB) Goal - S.Y.B. Construction Co., Inc is in compliance with the small business goal. In addition to the contract amount, $659,420.15 (Water: $592,414.15; Sewer: $67,006.00) is required for project management and inspection and $406,928.00 (Water: $388,469.00; Sewer: $18,459.00) is provided for project contingency. The sanitary sewer component of this project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. Approximately 15,948 linear feet of cast iron water and 200 linear feet of deteriorated sanitary sewer pipe will be removed and replaced as part of this project. 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. 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 16-36-inch Cast Iron Water Main Replacement in Holly -North Side Pump Station project Part 1. Funding for the 16-36 inch Cast Iron Water Main Replacement Holly -North Side Pump Station, Part 1 project is depicted below: Fund Existing Appropriations Additional Appropriation) I Project Total* W&S Capital Projects- Fund 56002 $1,818,180.00 $0.00 $1,818,180.00 W&S Commercial Paper — Fund 56026 $0.00 $20,994,394.00 $20,994,394.00 Project Total $1,818,180.00 $20,994,394.00 $22,812,574.00 "Numbers rounded for presentation purposes. The project is located in COUNCIL DISTRICT 2. 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 the W&S Commercial Paper Fund for the 16-36in CI WM REPL HOLLY-NSPS project to support the execution of the construction contract and engineering agreement amendment. Prior to any expense 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