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HomeMy WebLinkAboutOrdinance 22817-08-2017Ordinance No. 22817-08-2017 AN ORDINANCE INCREASING APPROPRIATIONS IN THE AMOUNT OF $2,109,500.00 IN THE WATER AND SEWER DPN FUND, FROM AVAILABLE FUNDS, FOR THE PROCESS EVALUATION AND ENGINEERING DESIGN OF THE THICKENING FACILITIES AT THE VILLAGE CREEK WATER RECLAMATION FACILITY; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1 That in addition to those amounts allocated to the various City departments for Fiscal Year 2016-2017 in the Budget of the City Manager, there shall also be increased appropriations in the amount of $2,109,500.00 in the Water and Sewer DPN Fund, from available funds, for the process evaluation and engineering design of the thickening facilities at the Village Creek Water Reclamation Facility. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competentjurisdiction, such decision, opinion orjudgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 22394-09-2016 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4 This ordinance shall take effect upon adoption. � APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY }'� ,J �C� �� �j �,��./ Douglas W Black ary J. 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City of Fort Worth, Texas Mayor and Council Communication DATE: Tuesday, August 1, 2017 LOG NAME: 60VCWRF THICKENING FACILITIES - ENG DESIGN REFERENCE NO.: C-28317 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 1 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* Water & Sewer Bond ( �315,113.00 � $0.00 � $315,113.00 2015A Fund 56007 Water & Sewer DPN ( $0.00 ( $2,109,500.00 Fund 56011 Logname: 60VCWRF THICKENING FACILITIES - ENG DESIGN $2,109,500.00 Page 2 of 3 Project Total ( $315,113.00 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDsj: TO Fund DeparDtment Acc un Project Prog ID Fund Department ccoun Project ID ID CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: $2,109,500.00 �$2,424,613.00 Budget Reference # moun Year (Chartfield 2) Budget Year Jay Chapa (5804) Kara Shuror (8819) Farida Goderya (8214) Reference # Chartfield 2' Logname: 60VCWRF THICKENING FACILITIES - ENG DESIGN Page 3 of 3