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Home My WebLink About26-6389 - City Council - OrdinanceRESOLUTION 26-6389 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE NORTHSIDE IV 24 INCH WATER TRANSMISSION MAIN PHASE 1C 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 Northside IV 24 -inch Water Transmission Main Phase 1 C 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 $6,900,000.00 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: By: Jannette S. Goodall, City Secretary 0�0000000004 0 °OOO*� 0 OOOOOOOO % SEX 41 � d MAYOR AND COUNCIL COMMUNICATION MAP 60NSIV24INWTMPICSEG2-DDMCC AND TN PA1 N ; Z FORT WORTH ETJ (Extra Territorial Jurisdiction) FORT WORTH® TINSLEY IN PRAIRIE RIDGE TRC Asa COMANCHE MOON DR J F - FORT WORTH Uj Council District - 10 O / J-.:pr7/ BLUE MOUND RD Proposed 24" Water Main 'I rjj)k P+EDEN RD -c AVONDALE SCHOO LiRI h FORT WORTH. MAYOR AND COUNCIL COMMUNICATION 7.5.2 D D M CONSTRUCTION CORPORATION CONSTRUCTION CONTRACT AND TEAGUE NALL & PERKINS, INC. DESIGN CONTRACT AMENDMENT NO.2 FOR NORTHSIDE IV 24 -INCH WATER TRANSMISSION MAIN PHASE 1C -SEGMENT 2 DATE: 09/29/26 M&C FILE NUMBER: M&C 26-0945 DEPARTMENT: WATER SUBJECT (Fort Worth ETJ) Authorize Execution of a Contract with D D M Construction Corporation in the Amount of $4,554,678.00 for Northside IV 24 -inch Water Transmission Main, Phase 1C - Segment 2, Authorize Execution of Amendment No. 2 in the Amount of $609,550.00 to an Engineering Agreement with Teague Nail & Perkins, Inc. for the Northside IV 24 -inch Water Transmission Main, Phase 1C 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 a contract with D D M Construction Corporation in the amount of $4,554,678.00 for the Northside IV 24 -inch Water Transmission Main, Phase 1C - Project Segment 2 (City Project No. 105114); 2. Authorize execution of Amendment No. 2 to City Secretary Contract No. 61005, an Engineering Agreement with Teague Nall & Perkins, Inc., in the amount of $609,550.00, for a revised contract amount of $1,751,765.00; 3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Northside IV 24 -Inch Water Transmission Main Phase 1C project; and 4. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the Northside IV 24 -Inch Water Transmission Main project (City Project No. 105114) in the amount of $5,772,365.00 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 a construction contract in the amount of $4,554,678.00 with D D M Construction Corporation for 1 of 4 FORT WORTH. the Northside IV 24 -inch Water Transmission Main Phase 1C - Segment 2 project and authorize execution of Amendment No. 2 in the amount of $609,550.00 to City Secretary Contract No. 61005 with Teague Nall & Perkins, Inc. for the same project. On January 30, 2024, M&C 24-0100, the City Council authorized an engineering agreement in the amount of $1,142,215.00 with Teague Nall & Perkins, Inc., (City Secretary Contract No. 61005) for the Northside IV 24 -inch Water Transmission Main Phase 1C project. The Engineering Agreement was subsequently revised by Amendment No. 1 in the amount of $22,785.00, administratively authorized on August 28, 2026. Amendment No. 1 consisted of the design of a 16 -inch water line extension in Bonds Ranch Road, required to connect the Lago Vista booster pump station to the 24 -inch water transmission mains being constructed to connect the Eagle Mountain Water Treatment Plant to the NS IV elevated storage tank. Amendment No. 2 provides for compensation for dividing the project into three separate construction packages, additional stakeholder coordination meetings, additional subsurface utility exploration and assistance during construction consisting of drawings, submittal reviews, change order review, and record drawings. The Northside IV 24 -inch Water Transmission Main, Phase 1C - Segment 2 construction project provides for the installation of a 24 -inch water main from Peden Road to Union Pacific Railroad right-of-way. The project was advertised for bid on April 29 and May 6, 2026, in the Fort Worth Star -Telegram. On June 4, 2026, the following bids were received: Bidder Amount Contract Time Blue Star Utilities, LLC* Blackrock Construction** $3,821,551.80 $4,364,782.00 D D M Construction Corporation $4,554,678.00 365 Calendar Days Western Municipal Construction of Texas, LLC Acadia Services, LLC Jackson Construction, Ltd. Mountain Cascade Burnsco Construction, Inc. $4,636,273.00 $4,646,071.00 $4,833,387.00 $5,360,692.00 $5,552,243.00 *Blue Star Utilities has been determined to be non -responsive to the contract documents due to failure to be pre -qualified at time of bid opening. ** Blackrock Construction has been determined to be non -responsive to the City's Small Business goal program. 2 of 4 FORT WORTH„ In addition to the contract cost, $425,950.00 is required for project management, material testing and inspection and $182,187.00 is provided for project contingency. 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. 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 of the Northside IV 24 -inch Water Transmission Main, Phase 1C project. Funding for the NS IV 24 WTM P1C project are depicted below: Existing Additional Fund Project Total* Appropriations Appropriations W&S Rev Bonds $1,918,750.00 $0.00 Series 2024 - Fund 56022 W&S Rev Bonds $ 5,400,000.00 $ 0.00 Series 2023 - Fund 56021 W&S Rev Bonds $1,606,687.00 $0.00 Series 2026B - Fund 56026 Commercial Paper - $0.00 $5,772,365.00 Fund 56032 Project Total $8,925,437.00 $5,772,365.00 The project is located in the Fort Worth Extra Territorial Jurisdiction. $1,918,750.00 $5,400,000.00 $1,606,687.00 $5,772,365.00 $14,697,802.00 Small Business (SB) Goal - In accordance with the City's Small Business Ordinance, the City has established a 30% Small Business goal for this solicitation/contract. D D M Construction Corporation has committed to achieving this goal by utilizing certified small businesses for 3 of 4 FORT WORTH. 32% of the total contract award. The contract will include language requiring the vendor to comply with the utilization plan submitted. 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 NS IV 24 WTM P1C project to support the execution of the contract and amendment. 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: Jesica L. McEachern, # 5804 ORIGINATING BUSINESS UNIT HEAD: Chris Harder, #5020 ADDITIONAL INFORMATION CONTACT: Preeti KC, #5467 ATTACHMENTS 1. Map - Northside IV 24 -inch Water Transmission Main Phase 1C -Segment 2 [7.5.2.1 - 1 page] 2. Resolution (R3) - Northside IV 24 -inch Water Transmission Main Phase 1C -Segment 2 [7.5.2.2 - 1 page] 3. Ordinance Approp (R4) - Northside IV 24 -inch Water Transmission Main Phase 1C - Segment 2 [7.5.2.3 - 1 page] 4 of 4