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Home My WebLink About26-6350 - City Council - ResolutionRESOLUTION 26-6350 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE BONDS RANCH LIFT STATION (A), 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 (A), 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 $133,000.00 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 August 11.2026. ATTEST: By: Jannette S. Goodall, City Secretary a� FORt��aa a. 6*L a 00 O O OOOOOOO° a� �ExA44�p Mayor & Council Map Estates at Eagle Mountain Council District ETJ Lift Station B 7,200LF 16 -inch Force Main 100% City Participation 1,200LF 30 -inch Gravity Sewer Main 80.6% City Participation FORT WORTH® overall City Weighted 'articipation 96.59% `moo • LiI1lLift Station A Data Source: Esn, CGIAR, USGS, Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, ® OpenStreetMap contributors, and the GIS User Community p COPYRIGHT 2025 CITY OF FORT WORTH 0 465 930 1 ,860 UNAUTHORIZED REPRODUCTION IS A VIOLATION OF APPLICABLE LAWS Feet N THIS DATA IS TO BE USED FOR A GRAPHICAL REPRESENTATION ONLY. Fort WOrtI THE ACCURACY IS NOT TO BETAKEN ! USED AS DATA PRODUCED FOR C ENGINEERING PURPOSES OR BY A REGISTERED PROFESSIONAL LAND SURVEYOR THE CITY OF FORT WORTH ASSUMES NO RESPONSIBILITY FOR THE ACCURACY OF SAID DATA FORT WORTH. MAYOR AND COUNCIL COMMUNICATION 7.5.17 MM BONDS 836, LLC DESIGN PROCUREMENT AGREEMENT FOR ESTATES AT EAGLE MOUNTAIN LAKE GRAVITY AND FORCE MAIN DATE: 08/11/26 M&C FILE M&C 26-0667 NUMBER: DEPARTMENT: WATER SUBJECT (ETJ) Authorize Execution of Design Procurement Agreement with MM Bonds 836, LLC with City Participation in an Amount Up to $110,885.32 for the Engineering Design of a Force Main and Gravity Sewer Main on Morris Dido Newark Road for Anticipated Future Growth in North Fort Worth, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with 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 the execution of a design procurement agreement with MM Bonds 836, LLC with City participation in an amount up to $110,885.32 for the engineering design of a force main and gravity sewer main on Morris Dido Newark Road for anticipated future growth in North Fort Worth; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future enterprise fund debt for the Bonds Ranch Lift Station (A), Force Main, and Gravity Main project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund in the amount of $110,886.00 by increasing appropriations in the Bonds Ranch Lift Station (A), Force Main, and Gravity Main project (City Project No. 104490) and decreasing 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 authorize execution of a Design Procurement Agreement (DPA) with MM Bonds 836, LLC (Developer) with city participation in an amount up to $110,885.32 for the engineering design of a force main and gravity sewer main along Morris Dido Newark Road. 1 of 4 FORT WORTH. The Developer intends to develop approximately 836 acres known as Estates at Eagle Mountain Lake as a mixed -use development, consisting of residential and commercial uses including open space, and other public and private amenities. As part of its development, the Developer is required to extend approximately 7,200 linear feet of an 8 -inch force main and 1,200 linear feet of 15 -inch gravity sewer main. The City desires to oversize the 7,200 linear feet of 8 -inch force main to 16 -inch and oversize the 1,200 linear feet of 15 -inch gravity sewer main to 30 -inch in order to provide additional capacity for future growth. The City's portion of the cost to design the force main will be 100% and gravity sewer main will be 80.6%, with an overall City participation of 96.59%. Developer's portion of the cost will be 3.41%. The estimated fee for the City's portion of the engineering design, easement document preparation, and surveying is $110,885.32. MM Bonds 836, LLC, has selected Westwood Professional Services, Inc., as the engineering consultant to perform the design of the project. Staff concurs that the fees charged by Westwood Professional Services, Inc, are fair and reasonable for the work to be performed. The engineering design will be reviewed through the City's Infrastructure Plan Review Center (IPRC) process. The table shows the cost sharing breakdown for engineering design cost between Developer and the City. Design Services Cost Sharing Breakdown MM Bonds 836, LLC $ 3,914.68 City of Fort Worth Participation $110,885.32 Total Engineering Design Cost $114,800.00 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. 2 of 4 FORT WORTH. It is the practice of the Water Department to appropriate its Capital Improvement Program (CIP) 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 for the Bonds Ranch Lift Station (A), Force Main, and Gravity Main project is depicted below: Fund Existing Additional Project Total* Appropriations Appropriations W&S Rev Bonds $3,149,655.00 $0.00 $3,149,655.00 Series 2024 - Fund 56022 W&S Rev Bonds $11,769,632.00 $0.00 $11,769,632.00 Series 2025 - Fund 56026 Sewer Impact Fee $2,428,721.00 $0.00 $2,428.721.00 - Fund 57003 Fund 56032 - W&S $0.00 $110,886.00 $110,886.00 Commercial Paper Project Total $17,348,008.00 $110,886.00 $17,458,894.00 Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the Water Department for the purpose of funding the Bonds Ranch Lift Station (A), Force Main, and Gravity Main project. This contract requires a Form 1295. 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 Bonds Ranch LS(A)/FM/GM project to support the execution of the agreement. Prior to an expense being incurred, the Water Department has the responsibility of verifying the availability of funds. 3 of 4 FORT WORTHfU SUBMITTED FOR CITY MANAGER'S OFFICE BY: ORIGINATING BUSINESS UNIT HEAD: ADDITIONAL INFORMATION CONTACT: Jesica L. McEachern, # 5804 Chris Harder, # 5020 Matt Kusnir, # 8219 Isabel Sierra, # 2887 ATTACHMENTS 1. Map - Estates at Eagle Mountain Lake Gravity and Force Main Design [7.5.17.1 - 1 page] 2. Resolution Reimburse (R2) - Estates at Eagle Mountain Lake Gravity and Force Main Design [7.5.17.2 - 2 pages] 3. Ordinance Approp (R3) - Estates at Eagle Mountain Lake Gravity and Force Main Design [7.5.17.4 - 1 page] 4 of 4