HomeMy WebLinkAboutResolution 4766-04-2017 A Resolution
NO. 4766-04-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ENCLOSURE OF
THE GASEOUS CHLORINE AND SULFUR DIOXIDE STORAGE FACILITIES 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 Enclosure of Gaseous Chlorine and Sulfur
Dioxide Storage Facilities Project as shown on the attached map (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:
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
$900,000.00 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.
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 4" day of April, 2017.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/4/2017 - Ordinance No. 22653-04-2017 & Resolution No.
4766-04-2017
DATE: Tuesday, April 4, 2017 REFERENCE NO.: **C-28171
LOG NAME: 60ENCLOSURE OF CHLORINE AND SULFUR DIOXIDE
SUBJECT:
Authorize Execution of Amendment No. 1 to City Secretary No. 45595, an Engineering Agreement with
Carollo Engineers, Inc., in the Amount of$700,000.00 for Design Service of Enclosure of Gaseous
Chlorine and Sulfur Dioxide Storage Facilities Project at the Village Creek Water Reclamation Facility for a
Revised Contract Amount of$849,000.00, Adopt Reimbursement Resolution Expressing Official Intent to
Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the resolution expressing Official Intent to Reimburse expenditures with proceeds of future debt
for the entire Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer Direct Purchase Note Fund in the amount of$795,000.00; and
3. Authorize the execution of Amendment No. 1 to City Secretary Contract No. 45595, an Engineering
Agreement with Carollo Engineers, Inc., in the amount of$700,000.00 for additional engineering services
associated with the Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project at Village
Creek Water Reclamation Facility, thereby increasing the contract amount to $849,000.00. (City Project
No. CO2273)
DISCUSSION:
On April 22, 2014, Mayor and Council Communication M&C (C-26779) the City Council authorized the
execution of a an Engineering Agreement with Carollo Engineers, Inc. for Phase 1-Basis of Design for
Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities at Village Creek Water Reclamation
Facility to evaluate the possible alternatives for modifications, addition, or replacements of the chlorine
system in the Chlorine building as well as storage tank for chlorine and sulfur dioxide.
The Water Department currently uses bulk gaseous chlorine and sulfur dioxide at the Village Creek Water
Reclamation Facility. The tanks for these systems are currently located outside and exposed thereby
impacting the Risk Management Plan. Water treatment facilities have all their chlorination equipment and
storage tanks located inside buildings equipped with scrubbers to protect against any potential accidents
which may result in inadvertent leaks. The department is moving towards standardization of risk and
safety for all facilities.
This project consists of the design of modifications, additions, or replacements of the chlorine system in
the chlorine building, the chlorine storage tanks, and sulfur dioxide storage tanks to improve safety and
Lognarne: 60ENCLOSURE OF CHLORINE AND SULFUR DIOXIDE Pagel of 3
reduce risk. The Engineer will develop a concept plan based on the recommended and approved
alternative which will be the basis for the planned design phase.
In addition to the contract cost, $95,000.00 is required for Staff and project management .
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 (DPN) 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 DPN 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.
This project will have no impact on Water Department's operating budget. Design for this project is
estimated to be complete by February, 2018. Construction is scheduled to start by July, 2018 and be
completed by October, 2019. The total cost for this project is estimated to be $4,257,000.00.
M/WBE Office - Carollo Engineers, Inc., is in compliance with the City's BDE Ordinance by committing to
23 percent SBE participation. The City's SBE goal on this project is 23 percent.
This project is located in COUNCIL DISTRICT 5, the Village Creek Water Reclamation Facility serves ALL
COUNCIL DISTRICTS, Mapsco 68.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and adoption of the
attached appropriation ordinance funds will be available in the Water/Sewer DPN Funds for the Design of
Enclosure of Gaseous Chlorine and Sulfur Dioxide Storage Facilities Project, Funding will be as depicted
in the table below:
FUND Existing Additional Project
Appropriations!Appropriations ITotal*
FvAfater & Sewer
DPN Fund $0.00 $795,000.00 $795,000.00
56011 � I
�Sewer Capital Fund $212,000.00 F $0.00 [$212,000.00
- Legacy 59607
Logname: 60ENCLOSURE OF CHLORINE AND SULFUR DIOXIDE Page 2 of 3
lProject Total 1$1,007,000.00
$212,000.00 $795,000.00
Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDS):
TO
Fund Department ccounl Project Program ctivity Budget Reference # 'A-m-o u-n
ID ID Year I (Pharffield 2)
FROM
Fund Department ccounj Project �Program ctivity Budget Reference # moul
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: S. Mir (8404)
Logname: 60ENCLOSURE OF CHLORINE AND SULFUR DIOXIDE Page 3 of 3