HomeMy WebLinkAboutResolution 4612-03-2016 A Resolution
NO. 4612-03-2016
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK WATER RECLAMATION FACILITY LIQUID BIO-SOLIDS STORAGE
TANKS 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 Village Creek Water
Reclamation Facility Liquid Bio-Solids Storage Tanks project as shown in the
attached map (the "Project") prior to 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:
Section 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 $2,750,000.00 for the purpose of
paying the aggregate costs of the Project.
Section 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.
�&RTWORTH
Section 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.
Adopted this 29th day of March, 2016.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/29/2016 - Resolution No. 4612-03-2016
DATE: Tuesday, March 29, 2016 REFERENCE NO.: C-27656
LOG NAME: 60LIQUID SLUDGE STORAGE TANKS AT VCWRF
SUBJECT:
Authorize Execution of an Engineering Agreement with MWH Americas, Inc., in the Amount of$989,477.00
for Engineering Services for the Liquid Bio-Solids Storage Tanks Project at the Village Creek Water
Reclamation Facility and Provide for Project Management and Staff Costs in the Amount of$75,000.00 for
a Total Amount of$1,064,477.00 and Adopt Reimbursement Resolution (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an Engineering Agreement with MWH Americas, Inc., in the amount of
$989,477.00 for Engineering Services for the Liquid Bio-Solids Storage Tanks Project at Village Creek
Water Reclamation Facility; and
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for the Liquid Bio-Solids Storage Tanks Project.
DISCUSSION:
The Village Creek Water Reclamation Facility (VCWRF) processes approximately 900,000 gallons of
anaerobically digested sludge daily at the Sludge Only Landfill (SOL). The sludge is pumped from the
VCWRF to the SOL into two storage tanks which provide approximately 1.3 million gallons of storage
capacity. The liquid sludge is pumped from the tanks to five belt presses where water is removed and
Class AB biosolids are created. The biosolids are loaded onto trucks at the SOL and transported to
Noticed Land Application Sites in seven counties around North Texas and then beneficially land applied.
In October 2014, the Texas Commission on Environmental Quality (TECQ) amended the existing
regulations governing the land application of biosolids. TCEQ also implemented new criteria for long term
storage of biosolids at land application sites. TCEQ prohibits the land application of biosolids during wet
weather events.
Several approaches to meet the new regulations have been considered, such as developing approved
storage pads on TCEQ Noticed Land Application Sites. However, it was determined that the most
reasonable solution was the construction of storage tanks at the SOL to contain the anaerobically digested
liquid sludge until conditions are again suitable for land application. Two 5 million gallon (MG) tanks are
needed to provide approximately 10 days of storage. During May 2015 there were about 20 days that
were unsuitable for land application of biosolids. The tanks can also be used for emergency storage of
liquid sludge in the event of power or equipment failure at the dewatering facility.
As part of this proposed contract, the engineer will evaluate the current biosolids processing system to
optimize the integration of the new tanks and piping system, review the Biosolids Master Plan for
consistency and consideration of future upgrades, determine the appropriate location of the two 5 MG
Logname: 60LIQUID SLUDGE STORAGE TANKS AT VCWRF Page I of 3
tanks, appurtenances and piping, evaluate odor control needs and alternatives and prepare plans and
specifications for the construction of the two new 5 MG tanks.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer
Fund. Available cash within the Water and Sewer portfolio and the City's portfolio along with the
appropriation authority authorized under the Direct Purchase Note Program will be used to provide interim
financing for this project until debt is issued. To the extent resources other than the Water and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the Direct Purchase Note Program or earlier issuance of Water and Sewer revenue bonds than is
currently planned. 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.
The City Council adopted the Water Department's Fiscal Year 2016-2020 Five-Year Capital Improvement
Plan on February 2, 2016 (M&C G-18662). This City Council-adopted plan includes this specific project,
with funding identified through the DPN program to be reimbursed with future revenue bonds. In
accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. This debt must be issued within approximately three years to provide reimbursement for these
expenses. If that does not occur, the costs will no longer be reimbursable by issuing tax-exempt debt and
the funding source will have to be made whole through other budgetary methods. Adoption of this
resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-
exempt bond proceeds. Funding for the Liquid Bio-Solids Storage Tank Project is depicted in the
following table:
Description Amount
F m 989,477.00�H Americas, Inc. $
Project Management Costs and Staff Salaries $ 75,000.00
Total Engineering Agreement Budget $1,064,477.00
Appropriations for the Liquid Bio-Solids Storage Tanks Project will consist of the following:
Existing Additional Future
Description Appropriations_ Appropriations ` Appropriations Project Total*
Engineering $1,000,000.00 $0.00 $ 0.00 $ 1,000,000.00
(Construction $ 935,000.00—[— $0.00 _ $11,000,000.00 $11,935,000.00
Project Management,Real Property
cquisitions, Inspection,Testing and
_Contingencies $ 5 75,000.00 $0.00 Fs 500,000.00 $F1,075,000.00
Project Total $2,510,000.00 1 $0.00 $11,500,000.00 ,14,010,000.00
* Rounded for presentation purposes.
Appropriations for the Liquid Bio-Solids Storage Tanks Project by fund will consist of the following:
Fund Appropriations*
Water/Sewer DPN Fund 56005 J$ 2,510,000.00
I j--- —
Logname: 60LIQUID SLUDGE STORAGE TANKS AT VCWRF Page 2 of 3
Future Revenue Bond _$11,500,000.00
Project Total $14,010,000.00
* Numbers rounded for presentation purposes.
Engineering service are anticipated to commence in March 2016, with a contract time of 270 calendar
days. The engineering services are estimated to be completed by January 2017 and the construction is
anticipated to start in November 2017 and completed by the end of December 2018.
M/WBE OFFICE: MWH Americas, Inc., is in compliance with the City's BDE Ordinance by committing to
25 percent SBE participation. The City's goal on this project is 15 percent.
This project is located in COUNCIL DISTRICT 5, but this facility serves all of the Fort Worth Area.
Operating impact starting in Fiscal Year 2018 is anticipated to be $42,000.00 per year.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available as directed by M&C G-18375 in the 2017 Water
and Sewer Revenue Bonds Capital Project Fund for transfer from unspecified funding to the Village Creek
Liquid Bio-Solid Storage Tanks Project as depicted in the table below:
Fund I Existing Additional Future project Total*
r ppropriations Appropriations Appropriations
Water/Sewer DPN Fund
56005 $0.00 $ 0.00$ 2,510,000.00
_ $2,510,000.00
Future Revenue Bond ( $ 0.00 1-$0.00--1$11,500,000.00 $11,500,000.00
Project Total _ $2,510,000.00 $0.00 $11,500,006.00 1$14,010,000.00
*Rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # Amount
ID ID Year Chartfield 2
560051 0700430 15330500 1 CO2669 C03030 2016 0989,4777bbi
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60LIQUID SLUDGE STORAGE TANKS AT VCWRF Page 3 of 3