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Home My WebLink About26-6346 - City Council - ResolutionRESOLUTION 26-6346 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE SEWER MAIN M -244A REPLACEMENT - NORTH OF DIVISION 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 Sewer Main M -244A Replacement — North of Division 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 $2,500,000.00 for the purpose of paying the aggregate costs of the Proj ect. 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 Autust 11, 2026. ATTEST: y fill Jannette S. Goodall, City Secretary O O O O 1 O O OOOOOOOOO �aaa� rEX J d MAYOR AND COUNCIL COMMUNICATION MAP 60M-244ASSMR-FNI MC 1. R I ZDR NTF��j Y a JOHN T WHITE RD =O ��.�RUN� I J w � O w ce ,: _ C7 ERSOH BLVD a O< Li W INTERSTATE 30 FWY ASTF - N l = I ti^ - W IJ �I V o z EDERVILLE Rp` _ c � 1 BRENT�,W OD STAIR RD es.OOOD DR �� 3 Q O � JDIi1 MEADOWBROOK DR -n O� A, z O D PIN OAK LN w a WHITNEY LN �� 2 w o J � p WESLEY DR " 3 0 4 a}ii r µi1.S�•� JI SHEFFIELDp� �� - o ; z o Op p w J '' aI! WOODFORDQ O LL gym. FORTWORTHo r � FORT WORTH MAYOR AND COUNCIL COMMUNICATION 7.1.45 FREESE AND NICHOLS, INC ENGINEERING AGREEMENT FOR SEWER MAIN M -244A REPLACEMENT DATE: 08/11/26 M&C FILE NUMBER: M&C 26-0729 DEPARTMENT: WATER SUBJECT (CD 5 and City of Arlington) Authorize Execution of an Engineering Agreement with Freese and Nichols, Inc. in the Amount of $1,559,079.00 for the Sanitary Sewer Main M -244A Replacement from Division Street to Green Oaks Boulevard Project, 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 an engineering agreement with Freese and Nichols, Inc. in the amount of $1,559,079.00, for Sanitary Sewer Main M -244A Replacement from Division Street to Green Oaks Boulevard Project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for Sanitary Sewer Main M -244A Replacement from Division Street to Green Oaks Boulevard project; and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the Sanitary Sewer Main M -244A Replacement North of Division Street project (City Project No. 106896) in the amount of $2,123,919.00 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 The purpose of this Mayor and Council Communication (M&C) is to authorize execution of an engineering agreement with Freese and Nichols, Inc. in the amount of $1,559,079.00 for the Sanitary Sewer Main M -244A Replacement North of Division Street project for the preparation of plans and specifications for the replacement of Sanitary Sewer Main M -244A from Division Street to Green Oaks Boulevard as shown on the attached location map. 1 of 3 FORT WORTH In addition to the contract amount, $564,840.00 is required for project management, utility coordination, real property acquisition and material testing. 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 the debt is issued. Once debt of this project is sold, bonds 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 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 Sanitary Sewer Main M -244A Replacement from Division Street to Green Oaks Boulevard project. Appropriations for Sanitary Sewer Main M -244A Replacement from Division Street to Green Oaks Boulevard project are as depicted below: Fund W&S Commercial Paper — Fund 56032 Project Total Existing Appropriations $0.00 $ 0.00 *Numbers rounded for presentation purposes. Additional Appropriations $2,123,919.00 $2,123,919.00 The project is located in COUNCIL DISTRICT 5 and City of Arlington. This contract requires a Form 1295. FISCAL IN FORMATION/CERTIFICATION Project Total* $2,123,919.00 $ 2,123,919.00 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 WAS Commercial Paper Fund for the S M -244A Repl-N of Division project to support the execution of the engineering agreement. Prior to any expenditure being incurred, the Water Departments have the responsibility of verifying the availability of funds. 2 of 3 FORT WORTH SUBMITTED FOR CITY MANAGER'S OFFICE BY: ORIGINATING BUSINESS UNIT HEAD: ADDITIONAL INFORMATION CONTACT: ATTACHMENTS Jesica L. McEachern, # 5804 Chris Harder, # 5020 Parvathi S., # 7803 1. Map - Engineering for Sewer Main M -244A Replacement [7.1.45.1 - 1 page] 2. Resolution (R3) - Engineering for Sewer Main M -244A Replacement [7.1.45.3 - 1 page] 3. Ordinance Approp (R3) - Engineering for Sewer Main M -244A Replacement [7.1.45.4 - 1 page] 3 of 3