HomeMy WebLinkAboutResolution 4826-08-2017 A Resolution
NO. 4826-08-2017
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK WATER RECLAMATION THICKENING 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 Village Creek Water Reclamation Thickening
Facility 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:
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
$2,250,000.00 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 1St day of August, 2017.
OF FO/�;,
ATT
B y: — G t[ --- �h:
AS
Ronald P. Gonzales, Assista''it City Secretary
ORT WORT HU
+ N x
Y� �I jY �1 H 4 � •
r Village Creek Water Reclamation Facility ': r
(VCWRF) 0
.4
A.
r:
IL
••• �, OLD
Waste Activated Sludge (WAS)
Storage Tank
X - M rt'' Thickening Building
I�- 9.r r I iii • -' -
.
Gravity Thickeners
_ Gravity Belt Thickeners (GBT)
Dissolved Air Flotation Thickeners (DAFT's) ,
- •v r �;`� f M�, +- , .i �Iry�?. .1R:y� •J..'..:. .,•
Feet
0 300 600
FORTWORTH COPYRGHT3D7]CA OFORT WORN
Village Creek Water Reclamation Facility (VCWRF) UNAUTHOR¢ED REPROWCTION ISA VIIATK)N OFAPPLICASLE Lh'41..
THIS DATA IS TO BE USED FORA GRAPHICAL REPRESENTATION DULY.
THE ACCURACY IS IIOT TO BE TAKEN/USEDAS DATA PRODUCED FOR
Thickener Process Improvements EH GINEERINGPURPOSES OR BY A REGISTERED PROFESSMAL LAND
CITYOFTWPIO
WA_ _ SURVEYOR THE FOR THE C RACY'OFSAIDDATA.RESPONSIBIL
TY
'F.I'^^A:1. _ -- eta. � Fir --tr .�,��_�� _1•'- - ��.,.f_ - - - I' __
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/1/2017 Ordinance No. 22817-08-2017 & Resolution No.
4826-08-2017
DATE: Tuesday, August 1, 2017 REFERENCE NO.: C-28317
LOG NAME: 60VCWRF THICKENING FACILITIES - ENG DESIGN
SUBJECT:
Authorize Engineering Agreement with Freese & Nichols Inc., in the Amount of$1,809,500.00 for the
Process Evaluation and Engineering Design of the Thickening Facilities at the Village Creek Water
Reclamation Facility, Provide for Additional Project Costs for a Total of$2,109,500.00, 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 Village Creek Water Reclamation Thickening Facility Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the Amount of$2,109,500.00 from available funds; and
3. Authorize the execution of an Engineering Agreement with Freese & Nichols Inc., in the Amount of
$1,809,500.00 for process evaluation and engineering design of Thickening Processes 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.
Freese & Nichols, Inc., has been selected as the consulting firm for the improvements of Thickening
Facilities at the VCWRF. This will include the finalization of the preliminary evaluation study and detailed
engineering design and contract documents of additional and improvement infrastructure needed for the
thickening of primary sludge and secondary Waste Activated Sludge (WAS). The scope for the
preliminary evaluation includes the following: updating of solids projections; developing an additional
optimum scenario for thickening both primary and WAS Sludge in the existing thickening building; review
and evaluation of pilot test results; and primary sludge screening evaluation. The detailed design is for
primary and WAS thickening facilities, which also includes a few improvements for existing Gravity Belt
Thickener (GBT) Facility, sludge thickening facility, gravity thickeners, WAS storage tanks, sludge blend
tank, Dissolved Air Floatation Tanks (DAFT) Facility, Backwash Solids Clarifier with necessary electrical
and automation modifications as well as optimum configuration within the plant site. The final products will
include engineering plans, as well as detailed design plans and specifications for bidding.
Logname: 60VCWRF THICKENING FACILITIES - ENG DESIGN Page I of 3
Freese & Nichols, Inc., is proposing to perform the necessary work as needed for the thickening process
evaluation and design improvements for a fee not to exceed $1,809,500.00.
In addition to the contract amount, $200,000.00 is required for contingency allowance and $100,000.00 is
required for project management and associated Water Department staff time.
Engineering services anticipated to commence in July 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 amount for the Thickening Facilities is estimated
around $17,000,000.00.
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 - Freese & Nichols, Inc., is in compliance with the City's BDE ordinance by committing to
a 14 percent SBE participation. The City's SBE goal on this project is 10 percent.
This project serves the entire City and is located in COUNCIL DISTRICT 5.
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 Thickening Facility Project are as depicted in the table below:
Fund Existing Additional Project
Appropriations Appropriations Total*
F -F
Water & Sewer Bond $315,113.00 $0.00 $315,113.00
2015A Fund 56007 F I
Water & Sewer DPN $0.00 $2,109,500.00 [$2,109,500.00
Fund 56011
Logname: 60VCWRF THICKENING FACILITIES - ENG DESIGN Page 2 of 3
Project Total I $315,113.00 $2,109,500.00 $2,424,613.001
* Numbers 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 # moun
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Kara Shuror (8819)
Additional Information Contact: Farida Goderya (8214)
Logname: 60VCWRF THICKENING FACILITIES - ENG DESIGN Page 3 of 3