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Home My WebLink About26-6384 - City Council - ResolutionRESOLUTION 26-6384 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE US-287/HIGHWAY 81 HARMON ROAD WATER MAIN RELOCATIONS 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 US-287/HWY81 Harmon Road Water Main Relocations 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 $4,870,000.00 for the purpose of paying the aggregate costs of the Project; and 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; and 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 September 29, 2026. ATTEST: I`° a By: Jannette S. Goodall, City Secretary ° y ° MAYOR AND COUNCIL COMMUNICATION MAP 60US287HWY81 HARMON-TXDOTAFA AND KHAA2 ER rk � n P JUSTUS LN OLIVE HILL \4it ! N � r SONOMA CREEKILN r— % #' * iii y r r• jj PORTER CREEK_DR- --A N TARRANT PKWY L u1 W@u T L- t- A - r / JJ % HARMON FNTFR Hwy2 B�SB ZO k44A 48" WATER MAIN E HARMON RD FORT WORTH® RD :.�d�*, FORT WORTH„ MAYOR AND COUNCIL COMMUNICATION 7.1.3 TXDOT ADVANCE FUNDING AGREEMENT FOR US 287/HIGHWAY 81 AT HARMON ROAD WATER MAIN RELOCATIONS DATE: 09/29/26 M&C FILE NUMBER: M&C 26-0902 DEPARTMENT: WATER SUBJECT (CD 4, CD 7, and CD 10) Ratify Execution of Advance Funding Agreement with the Texas Department of Transportation in the Amount of $3,750,000.00, Authorize Execution of Amendment No. 2 with Kimley-Horn and Associates, Inc. in the Amount of $107,700.00 for the US 287/Highway 81 at Harmon Road Water Main Relocations 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 Fiscal Years 2026-2030 Capital Improvement Program RECOMMENDATION It is recommended that the City Council: 1. Ratify Execution of Advance Funding Agreement with the Texas Department of Transportation (CSJ# 0014-15-034) in the amount of $3,750,000.00 for the US 287/Highway 81 at Harmon Road Water Main Relocations project; 2. Authorize execution of Amendment No. 2 to City Secretary Contract No. 59974, an Engineering Services Agreement with Kimley-Horn and Associates, Inc., in the amount of $107,700.00 for the US 287/Highway 81 at Harmon Road Water Main Relocations project for a revised contract total of $522,800.00; 3. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the US 287/Highway 81 at Harmon Road Water Main Relocations project; and 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the US 287/Highway 81 at Harmon Road Water Main Relocations project (City Project No. 104514) in the amount of $4,057,700.00 and decreasing appropriations in the W&S 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 ratify execution of an Advance Funding Agreement with the Texas Department of Transportation (TXDOT) and 1 of 3 FORT WORTH. Amendment No. 2 to City Secretary Contract No. 59974 with Kimley-Horn and Associates, Inc. for the US 287/Highway 81 at Harmon Road Water Main Relocations project. The Advance Funding Agreement provides city funding for the construction of water main relocations in conjunction with TXDOT's reconstruction project on US 287. The estimated construction cost for the water main relocations for US 287 at Harmon Road is $3,750,000.00. In addition to the construction cost, $200,000.00 is required for additional project management, material testing, and inspection. On August 8, 2023, M&C 23-0661, the City Council authorized an engineering agreement in the amount of $320,300.00 with Kimley-Horn and Associates, Inc., (City Secretary Contract No. 59974) for the US 287/Highway 81 at Harmon Road Water Main Relocations Project. On June 11, 2024, M&C 24-0515, the City Council authorized funding for additional project management and material testing for US 287/Highway 81 at Harmon Road Water Relocations project in the amount of $144,800.00, which consisted of $94,800.00 for Amendment No. 1 with Kimley-Horn and Associates, Inc. for additional water main relocation and additional project management on the project. Amendment No. 2 to the Engineering Agreement will provide for additional construction phase services including attending preconstruction meetings, on -site observations, construction progress meetings, request for information reviews, shop drawing reviews, and record drawings. 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 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 currently available in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the US 287/Highway 81 at Harmon Road Water Relocations project. Fund Existing Additional Project Total* Appropriations Appropriations 2 of 3 FORT WORTH. W&S Rev Bonds Series 2024 -Fund 56022 W&S Commercial Paper - Fund 56032 Project Total $ 545,100.00 $ 0.00 $ 545,100.00 $0.00 $4,057,700.00 $4,057,700.00 $545,100.00 $4,057,700.00 $4,602,800.00 *Numbers rounded for presentation purposes. This project is located in COUNCIL DISTRICTS 4, 7, and 10. 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 US-287/HWY 81 Harmon Water Repl project to support the execution of the Advance Funding Agreement and the amendment to the engineering agreement. 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 L. McEachern, # 5804 ORIGINATING BUSINESS UNIT HEAD: Chris Harder, # 5020 ADDITIONAL INFORMATION CONTACT: John Kasavich, # 8480 ATTACHMENTS 1. Map - US 287/Highway 81 at Harmon Road Water Main Relocations [7.1.3.1 - 1 page] 2. Resolution (R3) - US 287/Highway 81 at Harmon Road Water Main Relocations [7.1.3.2 - 1 page] 3. Ordinance Approp (R4) - US 287/Highway 81 at Harmon Road Water Main Relocations [7.1.3.4 - 1 page] 3 of 3