HomeMy WebLinkAboutResolution 4774-05-2017 A Resolution
NO. 4774-05-2017
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE EXPENDITURES
WITH PROCEEDS OF FUTURE DEBT FOR THE GRIT REMOVAL FACILITY
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 Grit Removal Facility 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 $2,000,000.00 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. INP '4
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�fiilagc Creek Water Reclamation Facility (YCWRF) UNAUTNORIZfOREPROUCTIONISAVIOIATIONOFAPPLICABLELAWS
THIS DATA IS TO SE USED FOR A GRAPHICAL REPRESENTATION ONLY,
THE ACCURACY IS NOT TO BE TAKEN 1 USED AS DATA PRODUCED FOR
Grit Removal Process ENGINEERING PURPOSES OR BY A REGISTERED PROFESSIONAL LAND
SURVEYOR THE CRASAAORESPONSIBI 11
W. E FOR THE ACCURACY OFIDDDA
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/2/2017 - Ordinance No. 22698-05-2017 & Resolytion No.
4774-05-2017
DATE: Tuesday, May 2, 2017 REFERENCE NO.: **C-28213
LOG NAME: 60VCWRF GRIT REMOVAL PROCESS - ENG DESIGN
SUBJECT:
Authorize Engineering Agreement with CDM Smith, Inc., in the Amount of$1,570,965.00 for the Process
Evaluation and Engineering Design for the Grit Removal Facility for the Influent Flows at the Village Creek
Water Reclamation Facility, Provide for Additional Project Costs for a Total of$1,870,965.00 and Adopt
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 attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for entire Grit Removal Facility Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water/Sewer DPN Fund in the amount of$1,870,965.00 from available funds; and
3. Authorize the execution of an Engineering Agreement with CDM Smith, Inc., in the amount of
$1,570,965.00 for process evaluation and engineering design of Grit Removal Process at the Village
Creek Water Reclamation Facility.
DISCUSSION:
The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility (VCWRF), a 166
million gallons per day (MGD) plant, comprised of primary, secondary and tertiary treatment, chlorine
disinfection and de-chlorination. The two-hour peak flow is rated at 369 MGD. The VCWRF produces
anaerobically digested biosolids, which is further processed at the Biosolids Dewatering and Processing
Facility, located two miles north of VCWRF.
CDM Smith, Inc., has been selected as the consulting firm for the Grit removal process at the
VCWRF. This will include the preliminary evaluation and detailed design contract documents of
additional/improvement infrastructure needed for the grit removal of the influent flow. The scope for the
preliminary evaluation includes the following: total plant influent flow management and hydraulics for new
Grit Removal Facility; existing Bar Screen Building No. 3 (BS3) and screening improvements for south
flow; and grit removal system for total plant flow. The detailed design is for a grit removal facility, which
includes evaluation of Grit Removal technology options from both economic and noneconomic
perspectives, determination of optimum configuration within the plant site, developing an engineering plan,
followed by detailed design plans and specifications for bidding.
CDM Smith, Inc., is proposing to perform the necessary work as needed for the Grit Removal Process
Logname: 60VCWRF GRIT REMOVAL PROCESS - ENG DESIGN Page 1 of 3
evaluation and design improvements for a fee not to exceed $1,570,965.00.
In addition to the contract amount, $250,000.00 is required for contingency allowance and $50,000.00 is
required for project management and associated Water Department staff time.
Engineering Service is anticipated to commence in May 2017, with a contract time of 18 months, it is
estimated to be complete by December 2018. The construction is anticipated to start in April 2019, with
an estimated construction time of 24 months. The total estimated amount for the Grit Removal Facility
project is around $19,000,000.00.
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 2017-2021 Five-Year Capital Improvement
Plan on January 24, 2017, Mayor and Council Communication (M&C G-18927). The 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.
M/WBE OFFICE - CDM Smith, Inc., is in compliance with the City's BDE Ordinance by committing to an
18 percent SBE participation. The City's SBE goal on this project is 11 percent.
This project serves the entire City and is located in COUNCIL DISTRICT 5, Mapsco 90J, 90Q and 90S.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the Water/Sewer DPN Fund. Appropriations
for the Grit Removal Facility Project are as depicted in the table below:
—[—Existing Additional
Fund Appropriations Appropriations Project Total
Water 8 Sewer DPN Fund 7
1
56011 $0.00 $1,870,965.00 $1,870,965.00
Project Total $0..00 x$1,870,965.00 $1,870,965.00
* Numbers rounded for presentation purposes.
Logname: 60VCWRF GRIT REMOVAL PROCESS -ENG DESIGN Page 2 of 3
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department ccoun Proj7ciPr4ritctivit) Budget Reference # moun
ID IDYear Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Farida Goderya (8214)
Logname: 60VCWRF GRIT REMOVAL PROCESS -ENG DESIGN Page 3 of 3