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Home My WebLink About26-6398 - City Council - ResolutionRESOLUTION 26-6398 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WATER AND SANITARY SEWER CONTACT 2021 WSM-A 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 Water and Sanitary Sewer Contract 2021 WSM-A 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 $9,700,000.00 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 October 13, 2026. ATTEST: By: Jannette S. Goodall, City Secretary �OR p o °OOO Y 0 �o 0 O 0 O OO0 0 OOOOOOO d �4 nEXA5aA� )! VING AVE ,// I f J� 11uF fit �, 1F_�_H COLUMBUS � AVE � . �.; IITj ijflF�° CHESTNUT AVE ? �-- — lj ol9nj32f z r,c, �: q ,r 17�a50 ■ .:,j .ems wok 1�. _ _ n � SnOH NOS ELLIS AVE'. 1 ♦ I - CLINTON AVE N HOUSTON ST •1M v, �ELLIS AVE J1_�LJ NCOMMERCE-ST OO \ N C,)> (nZ 0 � 0 (Z N 0 3- -0 '3 m3 C -IZ =O z> 3- CZ Z D FORT WORTH„ MAYOR AND COUNCIL COMMUNICATION 7.1.6 WESTERN MUNICIPAL CONSTRUCTION OF TEXAS, LLC CONSTRUCTION CONTRACT AND GFT INFRASTRUCTURE, INC. AMENDMENT NO.2 FOR WATER AND SANITARY SEWER REPLACEMENT CONTRACT 2021 WSM-A PART 1 DATE: 10/13/26 M&C FILE NUMBER: M&C 26-1089 DEPARTMENT: WATER SUBJECT (CD 2) Authorize Execution of a Contract with Western Municipal Construction of Texas, LLC, in the Amount of $7,235,929.07 for Water and Sanitary Sewer Replacement Contract 2021 WSM-A, Part 1, Authorize Amendment No. 2 in the Amount of $183,560.00 to an Engineering Agreement with GFT Infrastructure, Inc. for the Water and Sanitary Sewer Replacement Contract 2021 WSM- A Project Part 1, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinances to Effect a Portion of Water's Contribution to the Fiscal Years 2027-2031 Capital Improvement Program RECOMMENDATION It is recommended that the City Council: 1. Authorize execution of a contract with Western Municipal Construction of Texas, LLC, in the amount of $7,235,929.07 for Water and Sanitary Sewer Replacement 2021 WSM-A project Part 1; 2. Authorize Amendment No. 2 to City Secretary Contract No. 59493, an engineering agreement with GFT Infrastructure, Inc. (f/k/a TranSystems Corporation dba TranSystems Corporation Consultants) in the amount of $183,560.00 for a revised contract amount of $824,437.00; 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Water and Sanitary Sewer Replacement 2021 WSM-A project; 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Water and Sanitary Sewer Replacement 2021 WSM-A project Part 1 (City Project No. 103498) in the amount of $8,080,868.00 and decreasing appropriations in the Water & Sewer Commercial Paper project (City Project No. UCMLPR) by the same amount; and 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund in the amount of $183,560.00, from available interest earned, for the purpose of funding the Water and Sanitary Sewer Replacement Contract 2021 WSM-A project (City Project No. 103498) Part 1 of 10 FORT WORTH. 1 and to effect a portion of Water's contribution to the Fiscal Years 2027-2031 Capital Improvement Program. DISCUSSION The purpose of this Mayor & Council Communication (M&C) is to authorize execution of a construction contract with Western Municipal Construction of Texas, LLC, in the amount of $7,235,929.07 and authorize execution of Amendment No. 2 in the amount of $183,560.00 to City Secretary Contract No. 59493 with TranSystems Corporation dba TranSystems Corporation Consultants n/k/a GFT Infrastructure, Inc. for the Water and Sanitary Sewer Replacement 2021 WSM-A project. On April 25, 2023, M&C 23-0341, the City Council authorized an engineering agreement with TranSystems Corporation dba TranSystems Corporation Consultants n/k/a GFT Infrastructure, Inc. (city Secretary Contract No. 59493) for the Water and Sanitary Sewer Contract 2021, WSM- A project. The agreement was subsequently revised by Amendment No. 1 in the amount of $56,045.00 administratively authorized November 11, 2024 that provided for the abandonment of additional water mains and the design of a pressure reducing valve and vault near the intersection of Long Avenue and Pearl Avenue. Amendment No. 2 will provide for dividing the project into two parts to allow for the Part 1 plans be created to provide for the expedited replacement of the water main on Long Avenue which has a history of frequent breaks. The amendment will also provide construction assistance services during construction of the project. The Part 1 provides for the replacement of cast iron water and/or deteriorated sanitary sewer mains as indicated below: Street Long Avenue Chestnut Avenue Pearl Avenue Lincoln Avenue From To 100 feet West of the Union Pacific Columbus Railroad Right-of- Avenue/Long Avenue way intersection South right-of-way line of Long Avenue South right-of-way line of Long Avenue South right-of-way line of Long Avenue North right-of-way line of Long Avenue North right-of-way line of Long Avenue North 61 feet Scope of Work Water/Sewer Water Water Water 2 of 10 FORT WORTH. Refugio Avenue South right-of-way North 61 feet Water line of Long Avenue Prospect Avenue South right-of-way North 61 feet Water line of Long Avenue Lee Avenue South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue Ross Avenue South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue Clinton Avenue South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue N. Houston Street South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue Ellis Avenue South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue N. Main Street South right-of-way North right-of-way Water/Sewer line of Long Avenue line of Long Avenue N. Commerce Street North right-of-way South 50 feet Water line of Long Avenue N. Calhoun Street South right-of-way North right-of-way Water line of Long Avenue line of Long Avenue N. Jones Street Long Avenue/N. North 110 feet Water Jones Street intersection Alley between N.W. 32nd Street Long Avenue Sewer Chestnut Avenue and Pearl Avenue Alley between Long Avenue South 73 feet Sewer Clinton Avenue and N. Houston Street 3 of 10 FORT WORTH. Alley between Ellie Avenue and Houston Street 200 feet West of the Long Avenue/Ellies Avenue intersection South 243 feet Sewer Additionally, asphalt pavement rehabilitation will be conducted curb to curb subsequent to the water and sanitary sewer main replacement. Part 1 of the Water and Sanitary Sewer Replacement 2021 WSM-A project was advertised for bids on July 8, and July 15, 2026, in the Fort Worth Star -Telegram. On August 20, 2026, the following bids were received: Bidder Western Municipal Construction of Texas, LLC Woody Contractors, Inc. Jackson Construction, Ltd. William J. Schultz, Inc. dba Circle C Construction Company Amount $7,235,929.07 $8,921,061.15 $ 9,237,059.27 $11,585,081.17 Time of Completion 425 Calendar Days SMALL BUSINESS (SB) GOAL — Western Municipal Construction of Texas, LLC is in compliance with the City's Small Business Ordinance, by committing to 37% SBE participation. In addition to the contract amount, $535,600.93 (Water: $434,053.93, Sewer: $101,547.00) is required for project management, material testing, and inspection. Project contingencies are provided in the amount of $309,338.00 (Water: $223,061.00; Sewer: $86,277.00). The sanitary sewer component of this project is part of the Sanitary Sewer Overflow Initiative Program of the Water Department. Approximately 6,564 linear feet of cast iron water pipe and 1,733 linear feet of sanitary sewer pipe will be removed and replaced as part of this project. 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. 4 of 10 FORT WORTH„ 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 and in the Interest Earnings account within the W&S Capital Projects Fund for the purpose of funding the W/SS Repl Contract 2021 WSM-A project Part 1. Appropriations for the W/SS Contract 2021 WSM-A project are as depicted below: Fund W&S Capital Projects - Fund 56002 W&S Commercial Paper - Fund 56032 Project Total Existing Appropriations $952,982.00 $ 0.00 $952,982.00 *Numbers rounded for presentation purposes. The project is located in COUNCIL DISTRICT 2. This contract requires a Form 1295. FISCAL INFORMATION/CERTIFICATION Additional Appropriations $183,560.00 $8,080,868.00 $8,264,428.00 Project Total* $1,136,542.00 $8,080,868.00 $ 9,217,410.00 The Director of Finance certifies that funds are currently available in the W&S Commercial Paper and the WAS Capital Projects Funds, and upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current capital project budget, as appropriated, in the W&S Commercial Paper and W&S Capital Projects Funds for the W/SS Contract 2021 WSM-A project to support the execution of the construction contract and the amendment of the engineering agreement. Prior to an expense being incurred, the Water Department has the responsibility of verifying the availability of funds. SUBMITTED FOR CITY MANAGER'S OFFICE BY: ORIGINATING BUSINESS UNIT HEAD: ADDITIONAL INFORMATION CONTACT: ATTACHMENTS Jesica L. McEachern, # 5804 Chris Harder, # 5020 Dena Johnson, # 8362 5 of 10 FORT WORTH„ 1. Map - Water and Sewer Replacement Contract 2021 WSM-A Part 1 [7.1.6.1 - 1 page] 2. Resolution (R3) - Water and Sewer Replacement Contract 2021 WSM-A Part 1 [7.1.6.2 - 1 page] 3. Ordinance Approp (R4) - Water and Sewer Replacement Contract 2021 WSM-A Part 1 [7.1.6.3 - 1 page] 4. Ordinance Approp (R5) - Water and Sewer Replacement Contract 2021 WSM-A Part 1 [7.1.6.4 - 1 page] 6 of 10